[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 821 Introduced in Senate (IS)]






108th CONGRESS
  1st Session
                                 S. 821

  To accelerate the commercialization and widespread use of hydrogen 
       energy and fuel cell technologies, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 8, 2003

 Mr. Harkin introduced the following bill; which was read twice and 
        referred to the Committee on Energy and Natural ResourcesYYYYYY

_______________________________________________________________________

                                 A BILL


 
  To accelerate the commercialization and widespread use of hydrogen 
       energy and fuel cell technologies, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Hydrogen and Fuel 
Cell Energy Act of 2003''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents. 
       TITLE I--HYDROGEN RESEARCH, DEVELOPMENT, AND DEMONSTRATION

Sec. 101. Short title.
Sec. 102. Amendment of the Spark M. Matsunaga Hydrogen Research, 
                            Development, and Demonstration Act of 1990.
                      TITLE II--FEDERAL PURCHASES

Sec. 201. Stationary fuel cells in Federal buildings.
Sec. 202. Zero emission vehicles in Federal fleets.
                       TITLE III--TAX INCENTIVES

Sec. 301. Amendment of 1986 Code.
Sec. 302. Credit for fuel cell and hydrogen motor vehicles.
Sec. 303. Credit for installation of hydrogen fueling stations.
Sec. 304. Credit for retail sale of hydrogen fuel as motor vehicle 
                            fuel.
Sec. 305. Credit for stationary and portable fuel cells.

       TITLE I--HYDROGEN RESEARCH, DEVELOPMENT, AND DEMONSTRATION

SEC. 101. SHORT TITLE.

    This title may be cited as the ``George E. Brown, Jr. and Robert S. 
Walker Hydrogen Future Act of 2003''.

SEC. 102. AMENDMENT OF THE SPARK M. MATSUNAGA HYDROGEN RESEARCH, 
              DEVELOPMENT, AND DEMONSTRATION ACT OF 1990.

    The Spark M. Matsunaga Hydrogen Research, Development, and 
Demonstration Act of 1990 (42 U.S.C. 12401 et seq.) is amended to read 
as follows:

``SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    ``(a) Short Title.--This Act may be cited as the ``Spark M. 
Matsunaga Hydrogen Research, Development, and Demonstration Act of 
1990''.
    ``(b) Table of Contents.--The table of contents of this Act is as 
follows:

        ``Sec. 1. Short title; table of contents.
        ``Sec. 2. Finding.
        ``Sec. 3. Purposes.
        ``Sec. 4. Definitions.
        ``Sec. 5. Coordination and consultation.
        ``Sec. 6. Advisory panel.
        ``Sec. 7. Interagency task force and coordination plan.
        ``Sec. 8. Review by the National Academy of Sciences.
          ``TITLE I--HYDROGEN ENERGY AND FUEL CELL TECHNOLOGY

        ``Sec. 101. Research and development.
        ``Sec. 102. Demonstrations in conjunction with research and 
                            development.
        ``Sec. 103. Public education, training, and technology 
                            transfer.
        ``Sec. 104. Report.
        ``Sec. 105. Authorization of appropriations.
                       ``TITLE II--DEMONSTRATIONS

        ``Sec. 201. Federal fuel cell and hydrogen infrastructure pilot 
                            projects.
        ``Sec. 202. Hydrogen transportation corridor and regional pilot 
                            projects.
        ``Sec. 203. International demonstrations.
        ``Sec. 204. Demonstrations of renewable production of hydrogen.
        ``Sec. 205. Operation, cost sharing, and reporting.

``SEC. 2. FINDING.

    ``Congress finds that it is in the national interest to accelerate 
introduction of hydrogen energy and fuel cell technologies in order 
to--
            ``(1) increase energy efficiency and security; and
            ``(2) enable the use of clean, domestic, and renewable 
        energy sources.

``SEC. 3. PURPOSES.

    ``The purposes of this Act are--
            ``(1) to direct the Secretary to conduct a research, 
        development, demonstration, and commercial application program 
        on hydrogen production, delivery, storage, and use technologies 
        and fuel cell technologies;
            ``(2) to accelerate the commercialization and widespread 
        use of hydrogen energy and fuel cell technologies in 
        transportation, commercial, industrial, residential, and 
        utility applications, in order to--
                    ``(A) reduce the life cycle pollution and 
                greenhouse gas emissions from energy use;
                    ``(B) enable widespread use of renewable energy 
                sources by allowing clean, efficient, and flexible 
                storage, transportation, and use of the energy; and
                    ``(C) promote the energy security of the United 
                States through use of domestic energy sources and 
                distributed energy infrastructure;
            ``(3) to reduce the costs of fuel cell stacks and of 
        hydrogen fuel;
            ``(4) to improve hydrogen storage and other critical 
        technologies;
            ``(5) to enable the economical and environmentally sound 
        use of renewable resources for the production of hydrogen; and
            ``(6) to ensure the coordinated availability of hydrogen-
        powered vehicles and the necessary refueling infrastructure.

``SEC. 4. DEFINITIONS.

    ``In this Act:
            ``(1) Department.--The term `Department' means the 
        Department of Energy.
            ``(2) Panel.--The term `Panel' means the Hydrogen and Fuel 
        Cells Technical Advisory Panel established by section 107(a).
            ``(3) Secretary.--The term `Secretary' means the Secretary 
        of Energy.

``SEC. 5. COORDINATION AND CONSULTATION.

    ``(a) Responsibility of Secretary.--
            ``(1) In general.--The Secretary shall have overall 
        management responsibility for carrying out this Act.
            ``(2) Administrative actions.--In carrying out this Act--
                    ``(A) the Secretary shall establish a central point 
                for the coordination of all hydrogen energy and fuel 
                cell research, development, and demonstration 
                activities of the Department;
                    ``(B) the Secretary and the Panel may obtain 
                assistance from, any other Federal agency--
                            ``(i) on a reimbursable or nonreimbursable 
                        basis; and
                            ``(ii) with the consent of the Federal 
                        agency; and
                    ``(C) the Secretary shall consult with--
                            ``(i) other Federal agencies, as 
                        appropriate; and
                            ``(ii) the Panel.
    ``(b) Duplication.--The Secretary shall ensure, to the maximum 
extent practicable, that activities under this Act do not--
            ``(1) duplicate any available research and development 
        results; or
            ``(2) displace or compete with privately-funded hydrogen 
        and fuel cell energy activities.

``SEC. 6. ADVISORY PANEL.

    ``(a) Establishment.--There is established an advisory panel, to be 
known as the `Hydrogen and Fuel Cells Technical Advisory Panel', to 
advise the Secretary in carrying out this Act.
    ``(b) Membership.--
            ``(1) In general.--The Secretary shall appoint to the Panel 
        not fewer than 9 nor more than 15 members, based on technical 
        and other qualifications, from--
                    ``(A) domestic industry;
                    ``(B) universities;
                    ``(C) professional societies;
                    ``(D) Federal laboratories;
                    ``(E) financial institutions;
                    ``(F) environmental organizations; and
                    ``(G) such other organizations as the Secretary 
                determines to be appropriate.
            ``(2) Terms.--
                    ``(A) In general.--The term of a member of the 
                Panel shall not be more than 3 years.
                    ``(B) Staggered terms.--The Secretary may appoint 
                members of the Panel in a manner that allows the terms 
                of the members serving at any time to expire at spaced 
                intervals so as to ensure continuity in the functioning 
                of the Panel.
                    ``(C) Reappointment.--A member of the Panel whose 
                term expires may be reappointed.
            ``(3) Chairperson.--The Panel shall select a Chairperson 
        from among the members of the Panel.
    ``(c) Review and Recommendations.--
            ``(1) In general.--The Panel shall review and make any 
        necessary recommendations to the Secretary on--
                    ``(A) the implementation and conduct of programs 
                under this Act;
                    ``(B) the economic, technological, and 
                environmental consequences of the deployment of 
                hydrogen production, delivery, and use technologies and 
                fuel cell technologies; and
                    ``(C) the coordination plan prepared by the task 
                force under section 7(c).
            ``(2) Consideration by secretary.--
                    ``(A) In general.--The Secretary shall consider, 
                but shall not be required to adopt, any recommendation 
                of the Panel under paragraph (1).
                    ``(B) Report.--The Secretary shall include in the 
                report under section 104--
                            ``(i) for each recommendation of the Panel 
                        implemented by the Secretary, a description of 
                        the progress made in implementing the 
                        recommendation; and
                            ``(ii) for each recommendation of the Panel 
                        that is not implemented by the Secretary, an 
                        explanation of the reasons why the 
                        recommendation was not implemented.
    ``(d) Support.--The Secretary shall provide such staff, funds, and 
other assistance as are necessary to enable the Panel to carry out the 
responsibilities of the Panel.

``SEC. 7. INTERAGENCY TASK FORCE AND COORDINATION PLAN.

    ``(a) Establishment.--Not later than 120 days after the date of 
enactment of the Hydrogen and Fuel Cell Energy Act of 2003, the 
President shall establish an interagency task force to coordinate 
Federal hydrogen and fuel cell energy activities.
    ``(b) Membership.--The task force shall include--
            ``(1) the Director of the Office of Science and Technology 
        Policy, who shall act as chairperson; and
            ``(2) representatives of--
                    ``(A) the Department of Energy;
                    ``(B) the Department of Transportation;
                    ``(C) the Department of Defense;
                    ``(D) the Department of Commerce (including the 
                National Institute for Standards and Technology);
                    ``(E) the Environmental Protection Agency;
                    ``(F) the National Aeronautics and Space 
                Administration;
                    ``(G) the Department of State; and
                    ``(H) such other Federal agencies as the President 
                considers appropriate.
    ``(c) Coordination Plan.--The task force shall prepare a 
comprehensive coordination plan for Federal hydrogen and fuel cell 
energy activities, which shall include a summary of those activities.
    ``(d) Report.--Not later than 1 year after the date on which the 
President establishes the task force, the task force shall submit to 
Congress a report that includes--
            ``(1) the coordination plan under subsection (c); and
            ``(2) a description of actions taken to ensure interagency 
        coordination of Federal hydrogen and fuel cell energy 
        activities.

``SEC. 8. REVIEW BY THE NATIONAL ACADEMY OF SCIENCES.

    ``Not later than June 30, 2006, and at least every 4 years 
thereafter, the National Academy of Sciences shall--
            ``(1) complete a review of--
                    ``(A) the progress made through Federal hydrogen 
                and fuel cell energy programs and activities; and
                    ``(B) the need for modified or additional programs; 
                and
            ``(2) submit to Congress a report that describes the 
        results of the review.

          ``TITLE I--HYDROGEN ENERGY AND FUEL CELL TECHNOLOGY

``SEC. 101. RESEARCH AND DEVELOPMENT.

    ``(a) Program.--The Secretary shall carry out a research and 
development program relating to hydrogen production, delivery, storage, 
and use technologies and fuel cell technologies, the goal of which 
program shall be to enable the safe, economical, and environmentally 
sound use of hydrogen energy and fuel cells for industrial, commercial, 
residential, transportation, and utility applications.
    ``(b) Research and Development Areas.--In carrying out the program 
under subsection (a), the Secretary shall focus on critical technical 
issues, including--
            ``(1) the production of hydrogen, with emphasis on cost-
        effective production from renewable energy resources such as 
        biomass, wind, and solar energy;
            ``(2) the delivery of hydrogen (including the safe 
        distribution and fueling);
            ``(3) the storage of hydrogen, including storage in surface 
        transportation;
            ``(4) the fuel cell technologies for transportation, 
        stationary, and portable applications, with emphasis on cost-
        reduction of fuel cell stacks; and
            ``(5) the use of hydrogen energy and fuel cells in a 
        variety of applications, including--
                    ``(A) isolated villages, islands, and areas in 
                which other energy sources are not available or are 
                very expensive; and
                    ``(B) foreign markets, particularly markets in 
                which an energy infrastructure is not well-developed.
    ``(c) Codes and Standards.--The Secretary shall--
            ``(1) facilitate the development of domestic and 
        international codes and standards; and
            ``(2) seek to resolve other critical regulatory and 
        technical barriers preventing the introduction of hydrogen 
        energy and fuel cells into the marketplace.
    ``(d) Federal Funding.--The Secretary shall carry out the research 
and development activities authorized under this section through 
solicitations of proposals and evaluations using competitive merit 
review.
    ``(e) Cost Sharing.--
            ``(1) In general.--The Secretary shall require a commitment 
        from non-Federal sources of at least 20 percent of the cost of 
        a proposed research or development activity.
            ``(2) Reduction or elimination.--The Secretary may reduce 
        or eliminate the cost sharing requirement under paragraph (1)--
                    ``(A) if the Secretary determines that the research 
                and development is of a basic or fundamental nature; or
                    ``(B) for a technical analysis, outreach activity, 
                or educational program that the Secretary does not 
                expect to result in a marketable product.

``SEC. 102. DEMONSTRATIONS IN CONJUNCTION WITH RESEARCH AND 
              DEVELOPMENT.

    ``(a) Requirement.--In conjunction with activities conducted under 
section 102, the Secretary shall conduct small-scale demonstrations of 
hydrogen energy and fuel cell technologies at self-contained sites in 
order to evaluate--
            ``(1) the commercial potential of those technologies; and
            ``(2) the effectiveness of the technologies in typical use.
    ``(b) Federal Funding.--The Secretary shall carry out the 
demonstrations authorized under this section through solicitations of 
proposals and evaluations using competitive merit review.
    ``(c) Cost Sharing.--
            ``(1) In general.--The Secretary shall require a commitment 
        from non-Federal sources of at least 50 percent of the costs 
        directly relating to a demonstration project under this 
        section, as determined by the Secretary.
            ``(2) Reduction.--The Secretary may reduce the cost sharing 
        requirement under paragraph (1) if the Secretary determines 
        that the reduction is appropriate considering the technological 
        risks involved in the project.

``SEC. 103. PUBLIC EDUCATION, TRAINING, AND TECHNOLOGY TRANSFER.

    ``(a) Public Education.--The Secretary shall conduct a public 
education program designed to increase public interest in and 
acceptance of hydrogen energy and fuel cell technologies.
    ``(b) Training.--
            ``(1) In general.--The Secretary shall carry out a program 
        to promote university-based training in critical skills for 
        research in, production of, and use of hydrogen energy and fuel 
        cell technologies.
            ``(2) Components.--The program under this subsection may 
        include--
                    ``(A) the provision of research fellowships at 
                universities;
                    ``(B) the establishment of centers of excellence in 
                critical technologies;
                    ``(C) the provision of internships in industry; and
                    ``(D) the implementation of such other measures as 
                the Secretary deems appropriate.
    ``(c) Technology Transfer.--
            ``(1) In general.--The Secretary shall carry out a program 
        to transfer critical hydrogen energy and fuel cell technologies 
        to the private sector in order to promote--
                    ``(A) greater understanding of those technologies; 
                and
                    ``(B) more widespread use of the results of 
                research conducted under this Act.
            ``(2) Foreign countries.--The Secretary shall carry out a 
        program to accelerate wider application of hydrogen energy and 
        fuel cell technologies in foreign countries in order to--
                    ``(A) increase the global market for the 
                technologies; and
                    ``(B) foster global development without harmful 
                environmental effects.
            ``(3) Exchange of information and technology.--The 
        Secretary shall foster the exchange of generic, nonproprietary 
        information and technology developed in accordance with this 
        title among industry, academia, and Federal agencies.
            ``(4) Inventory and assessment.--In carrying out paragraphs 
        (1) and (2), the Secretary shall complete an inventory and 
        assessment of the technical and commercial viability of 
        hydrogen production, delivery, storage, and use technologies 
        and fuel cell technologies.

``SEC. 104. REPORT.

    ``(a) Requirement.--Not later than 1 year after the date of 
enactment of the Hydrogen and Fuel Cell Energy Act of 2003, and 
biennially thereafter, the Secretary shall submit to Congress a report 
on the status of and progress in implementing the programs under this 
title.
    ``(b) Contents.--A report under subsection (a) shall include, in 
addition to any opinions and recommendations of the Secretary--
            ``(1) an assessment of--
                    ``(A) the effectiveness of the programs under this 
                title; and
                    ``(B) the extent to which the programs are meeting 
                the purposes of this Act;
            ``(2) recommendations of the Panel for any improvements in 
        the programs that are needed, including recommendations for 
        additional legislation; and
            ``(3) to the maximum extent practicable, an analysis of 
        related Federal, State, local, and private sector research, 
        development, and demonstration activities to identify 
        productive areas for increased intergovernmental and private-
        public sector collaboration.

``SEC. 105. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Hydrogen Activities.--There are authorized to be appropriated 
to carry out activities under this title relating to hydrogen energy 
(in addition to any amounts made available for those purposes under 
other Acts of Congress)--
            ``(1) $100,000,000 for fiscal year 2004;
            ``(2) $125,000,000 for fiscal year 2005;
            ``(3) $150,000,000 for fiscal year 2006;
            ``(4) $160,000,000 for fiscal year 2007;
            ``(5) $170,000,000 for fiscal year 2008;
            ``(6) $180,000,000 for fiscal year 2009; and
            ``(7) $190,000,000 for fiscal year 2010.
    ``(b) Fuel Cell Activities.--There are authorized to be 
appropriated to carry out activities under this title relating to fuel 
cells (in addition to any amounts made available for those purposes 
under other Acts of Congress)--
            ``(1) $100,000,000 for fiscal year 2004;
            ``(2) $125,000,000 for fiscal year 2005;
            ``(3) $150,000,000 for fiscal year 2006;
            ``(4) $125,000,000 for fiscal year 2007;
            ``(5) $100,000,000 for fiscal year 2008;
            ``(6) $100,000,000 for fiscal year 2009; and
            ``(7) $100,000,000 for fiscal year 2010.

                       ``TITLE II--DEMONSTRATIONS

``SEC. 201. FEDERAL FUEL CELL AND HYDROGEN INFRASTRUCTURE PILOT 
              PROJECTS.

    ``(a) Program.--The Secretary shall carry out a program of pilot 
projects to demonstrate the viability of fuel cells and associated 
hydrogen fueling infrastructure in integrated service in a variety of 
applications, including--
            ``(1) fuel cell vehicles in light-duty vehicle fleets;
            ``(2) heavy-duty fuel cell on-road and off-road vehicles;
            ``(3) stationary fuel cells in residential and commercial 
        buildings; and
            ``(4) portable fuel cells, including auxiliary power units 
        in trucks.
    ``(b) Participants.--
            ``(1) Eligibility.--A Federal, State, tribal, or local 
        government agency, academic or other nonprofit organization, or 
        private entity shall be eligible to participate in a pilot 
        project under subsection (a).
            ``(2) Selection.--
                    ``(A) Federal.--The Secretary shall--
                            ``(i) consult with Federal agencies 
                        (including fleet and building managers) to 
                        identify potential pilot projects; and
                            ``(ii) select the projects that best meet 
                        the criteria described in subparagraph (C).
                    ``(B) Non-federal.--The Secretary shall--
                            ``(i) solicit proposals for projects from 
                        eligible non-Federal entities; and
                            ``(ii) evaluate the proposals using 
                        competitive merit review.
                    ``(C) Criteria.--The criteria for selecting pilot 
                projects shall include--
                            ``(i) potential to further the purposes of 
                        this Act;
                            ``(ii) interest and capability of the 
                        participating entities;
                            ``(iii) appropriateness of the site for 
                        fueling infrastructure and for fuel cells;
                            ``(iv) educational potential and visibility 
                        to the public;
                            ``(v) geographic diversity;
                            ``(vi) a wide range of climate and 
                        operating environments;
                            ``(vii) preference for using fueling 
                        infrastructure for both fuel cell vehicles and 
                        stationary fuel cells;
                            ``(viii) preference for making fueling 
                        infrastructure available for public use; and
                            ``(ix) such other criteria as the Secretary 
                        considers appropriate for the success of the 
                        projects.
            ``(3) Cost sharing.--The Secretary may require a commitment 
        from a participating Federal agency based on the costs that the 
        agency would incur for vehicles, power, or other services 
        provided by the pilot projects if the vehicles, power, or other 
        services were not so provided.
    ``(c) Authorization of Appropriations.--There are authorized and to 
be appropriated to carry out this section--
            ``(1) $40,000,000 for fiscal year 2004;
            ``(2) $200,000,000 for fiscal year 2005;
            ``(3) $250,000,000 for fiscal year 2006;
            ``(4) $250,000,000 for fiscal year 2007;
            ``(5) $160,000,000 for fiscal year 2008;
            ``(6) $120,000,000 for fiscal year 2009; and
            ``(7) $60,000,000 for fiscal year 2010.

``SEC. 202. HYDROGEN TRANSPORTATION CORRIDOR AND REGIONAL PILOT 
              PROJECTS.

    ``(a) Program.--
            ``(1) In general.--The Secretary shall carry out a program 
        of pilot projects to demonstrate the viability of hydrogen-
        powered vehicles and hydrogen fueling infrastructure along 
        major transportation routes or in entire regions.
            ``(2) Vehicles.--Hydrogen-powered vehicles eligible for the 
        pilot projects include--
                    ``(A) hybrid electric vehicles that burn hydrogen; 
                and
                    ``(B) fuel cell vehicles.
            ``(3) Fueling infrastructure.--A pilot project shall 
        include multiple hydrogen fueling stations so that vehicles may 
        refuel throughout the transportation route or region that the 
        pilot project is intended to cover.
    ``(b) Participants.--
            ``(1) Consortia.--The Secretary shall solicit proposals for 
        projects from consortia that include State or local 
        governments, vehicle manufacturers, manufacturers of hydrogen 
        fueling equipment, academic institutions or consulting 
        organizations, and other entities necessary for the success of 
        the projects.
            ``(2) Criteria.--The criteria for selecting pilot projects 
        shall include--
                    ``(A) interest and capability of the participating 
                entities;
                    ``(B) suitability of the location for vehicles that 
                can be refueled only at the stations provided in the 
                project;
                    ``(C) diversity of uses and users of the vehicles 
                in the project;
                    ``(D) educational potential and visibility to the 
                public;
                    ``(E) preference for using fueling infrastructure 
                for both fuel cell vehicles and stationary fuel cells;
                    ``(F) preference for making fueling infrastructure 
                available for public use; and
                    ``(G) such other criteria as the Secretary 
                considers appropriate for the success of the projects.
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
            ``(1) $10,000,000 for fiscal year 2004;
            ``(2) $30,000,000 for fiscal year 2005;
            ``(3) $50,000,000 for fiscal year 2006;
            ``(4) $75,000,000 for fiscal year 2007;
            ``(5) $85,000,000 for fiscal year 2008;
            ``(6) $85,000,000 for fiscal year 2009; and
            ``(7) $40,000,000 for fiscal year 2010.

``SEC. 203. INTERNATIONAL DEMONSTRATIONS.

    ``(a) Program.--
            ``(1) In general.--The Secretary, in consultation with the 
        Administrator of the Agency for International Development, 
        shall carry out a program of demonstrations of fuel cells and 
        associated hydrogen fueling infrastructure in foreign 
        countries.
            ``(2) Purposes.--The purposes of the demonstrations shall 
        be to--
                    ``(A) demonstrate the use of hydrogen energy and 
                fuel cells in places where a fossil fuel energy 
                infrastructure is not already well developed;
                    ``(B) increase the global market for fuel cell and 
                hydrogen energy technologies; and
                    ``(C) promote global development without harmful 
                environmental effects.
            ``(3) Eligible technologies.--The program may demonstrate--
                    ``(A) fuel cell vehicles in light-duty vehicle 
                fleets;
                    ``(B) heavy-duty fuel cell on-road and off-road 
                vehicles;
                    ``(C) stationary fuel cells in residential and 
                commercial buildings; and
                    ``(D) portable fuel cells, including auxiliary 
                power units in trucks.
    ``(b) Participants.--
            ``(1) Eligibility.--A foreign nation, nonprofit 
        organization, or private entity shall be eligible for a pilot 
        project under subsection (a).
            ``(2) Cooperation.--An eligible entity may perform a 
        project in cooperation with United States nonprofit 
        organizations and private entities.
            ``(3) Cost sharing.--The Secretary may reduce the 
        requirement under section 205(e) based on the expense of 
        foreign activities and the financial resources of participating 
        foreign entities.
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
            ``(1) $20,000,000 for fiscal year 2004;
            ``(2) $50,000,000 for fiscal year 2005; and
            ``(3) $70,000,000 for each of fiscal years 2006 through 
        2010.

``SEC. 204. DEMONSTRATIONS OF RENEWABLE PRODUCTION OF HYDROGEN.

    ``(a) Program.--The Secretary shall carry out a program of 
demonstration projects to test the technical and commercial viability 
of the production of hydrogen from renewable resources, including--
            ``(1) production of hydrogen and other commercial products 
        from biomass in biorefineries; and
            ``(2) production and use of hydrogen at a single farm 
        location in electrofarming, including--
                    ``(A) production from--
                            ``(i) cultivation and reforming of biomass;
                            ``(ii) farm waste; or
                            ``(iii) wind power; and
                    ``(B) use in--
                            ``(i) vehicles;
                            ``(ii) equipment; and
                            ``(iii) stationary and portable fuel cells.
    ``(b) Participants.--
            ``(1) In general.--The Secretary shall select the 
        demonstration projects through solicitation of proposals for 
        funding and evaluation using competitive merit review.
            (2) Criteria.--The criteria for selecting pilot projects 
        shall include--
                    ``(A) commercial potential for the technology;
                    ``(B) life cycle environmental benefits of the 
                technology;
                    ``(C) the potential of the technology to produce 
                suitable hydrogen gas for use in proton exchange 
                membrane fuel cells; and
                    ``(D) such other criteria as the Secretary 
                considers appropriate for the success of the projects.
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
            ``(1) $10,000,000 for fiscal year 2004;
            ``(2) $50,000,000 for fiscal year 2005;
            ``(3) $75,000,000 for fiscal year 2006;
            ``(4) $75,000,000 for fiscal year 2007;
            ``(5) $75,000,000 for fiscal year 2008;
            ``(6) $50,000,000 for fiscal year 2009; and
            ``(7) $50,000,000 for fiscal year 2010.

``SEC. 205. OPERATION, COST SHARING, AND REPORTING.

    ``(a) Operation.--The equipment used in projects under this title 
shall be operated by the participating entities in integrated service 
for a period of not less than 2 years.
    ``(b) Training and Technical Support.--The Secretary shall provide 
such training and technical support as participating entities require 
to ensure the success of the projects under this title.
    ``(c) Data Collection, Analysis, and Dissemination.--
            ``(1) Agreements.--The Secretary shall enter into 
        agreements with participating agencies and private sector 
        entities providing for the collection of proprietary and 
        nonproprietary information from projects under this title.
            ``(2) Public availability.--The Secretary shall make 
        available to all interested persons--
                    ``(A) technical nonproprietary information 
                collected under agreements under paragraph (1); and
                    ``(B) analyses of collected proprietary and 
                nonproprietary information.
            ``(3) Proprietary information.--The Secretary shall not 
        disclose to the public any proprietary information collected 
        under agreements under paragraph (1).
    ``(d) Coordination.--The Secretary shall ensure coordination of the 
programs under this title with each other and with other Federal 
hydrogen and fuel cell demonstration programs to improve efficiency, 
share infrastructure, and avoid duplication of effort.
    ``(e) Cost Sharing.--
            ``(1) In general.--The Secretary shall require a commitment 
        from non-Federal sources of at least 50 percent of the costs 
        relating directly to a demonstration project under this title.
            ``(2) Reduction.--The Secretary may reduce the non-Federal 
        requirement under paragraph (1) if the Secretary determines 
        that the reduction is appropriate considering the technological 
        risks involved in the project.
    ``(f) Reports.--Not later than 1 year after the date of enactment 
of the Hydrogen and Fuel Cell Energy Act of 2003, and annually 
thereafter, the Secretary shall submit to Congress a report that--
            ``(1) provides an update on the progress of selecting and 
        running the projects under this title;
            ``(2) provides a summary of data collected under subsection 
        (c) and associated analyses;
            ``(3) assesses the results of the programs; and
            ``(4) recommends any modifications in the programs that may 
        be necessary to achieve the purposes of this title.''.

                      TITLE II--FEDERAL PURCHASES

SEC. 201. STATIONARY FUEL CELLS IN FEDERAL BUILDINGS.

    Section 205 of the Energy Conservation and Production Act (42 
U.S.C. 6834) is amended by adding at the end the following:
    ``(e) Fuel Cells.--
            ``(1) Standards.--Not later than 180 days after the date of 
        enactment of this subsection, the Secretary of Energy shall 
        revise Federal building energy efficiency performance standards 
        to--
                    ``(A) require, to the maximum extent 
                technologically and economically feasible, that each 
                new Federal building use fuel cells as a primary power 
                source;
                    ``(B) encourage placement of fuel cells in Federal 
                buildings in existence as of the date of enactment of 
                this subsection; and
                    ``(C) encourage--
                            ``(i) the use of fuel cells to provide heat 
                        and power for Federal buildings;
                            ``(ii) the making available of extra 
                        hydrogen for use in transportation and portable 
                        fuel cells; and
                            ``(iii) the provision of extra power to the 
                        electric grid.
            ``(2) Study.--The Secretary of Energy, in consultation with 
        other Federal agencies as appropriate, shall conduct a study to 
        determine means by which to make effective use of fuel cells in 
        Federal buildings, including--
                    ``(A) the use of fuel cells for high-reliability 
                and uninterruptible power;
                    ``(B) the use of fuel cells to provide heat and 
                power for Federal buildings;
                    ``(C) the need for modifications in--
                            ``(i) building specifications and design;
                            ``(ii) building codes;
                            ``(iii) construction practices; and
                            ``(iv) building operations; and
                    ``(D) the identification of measures and incentives 
                that would increase use of fuel cells in Federal 
                buildings.
            ``(3) Report.--Not later than 18 months after the date of 
        enactment of this subsection, the Secretary of Energy shall 
        submit to Congress a report that describes--
                    ``(A) the progress made as of the date of 
                submission of the report in use of fuel cell power 
                under paragraph (1); and
                    ``(B) the results of the study under paragraph 
                (2).''.

SEC. 202. ZERO EMISSION VEHICLES IN FEDERAL FLEETS.

    Section 203(b) of the Energy Policy Act of 1992 (42 U.S.C. 
13212(b)) is amended by adding at the end the following:
            ``(4) Zero-emission vehicles.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), of the number of vehicles acquired by 
                a Federal fleet in a fiscal year, zero-emission 
                vehicles shall comprise--
                            ``(i) 10 percent in each of fiscal years 
                        2007 and 2008;
                            ``(ii) 25 percent in each of fiscal years 
                        2009 and 2010;
                            ``(iii) 50 percent in each of fiscal years 
                        2011 and 2012; and
                            ``(iv) 75 percent in fiscal year 2013 and 
                        each fiscal year thereafter.
                    ``(B) Partial credit.--The Secretary may count 2 
                alternative-fuel vehicles that meet Super Ultra Low 
                Emission Vehicle standards issued by the Environmental 
                Protection Agency as equivalent to 1 zero-emission 
                vehicle in meeting the deadlines specified in 
                subparagraph (A).
                    ``(C) Delay of deadlines.--If, for a fiscal year, 
                the Secretary determines that no suitable commercial 
                vehicle is available for acquisition under subparagraph 
                (A), the Secretary may delay the deadlines for that 
                year and for subsequent years specified in that 
                subparagraph by 1 year.
            ``(5) Overall federal purchases.--The Secretary may 
        promulgate regulations under which the requirements under 
        paragraph (4)(A) would be met with respect to overall Federal 
        purchases rather than by individual Federal fleets.''.

                       TITLE III--TAX INCENTIVES

SEC. 301. AMENDMENT OF 1986 CODE.

    Except as otherwise expressly provided, whenever in this title an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be considered to 
be made to a section or other provision of the Internal Revenue Code of 
1986.

SEC. 302. CREDIT FOR FUEL CELL AND HYDROGEN MOTOR VEHICLES.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
(relating to foreign tax credit, etc.) is amended by adding at the end 
the following new section:

``SEC. 30B. CREDIT FOR FUEL CELL AND HYDROGEN MOTOR VEHICLES.

    ``(a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by this chapter for the taxable year an amount 
equal to the sum of--
            ``(1) the new qualified fuel cell motor vehicle credit 
        determined under subsection (b), and
            ``(2) the new qualified hydrogen fuel motor vehicle credit 
        determined under subsection (c).
    ``(b) New Qualified Fuel Cell Motor Vehicle Credit.--
            ``(1) In general.--For purposes of subsection (a), the new 
        qualified fuel cell motor vehicle credit determined under this 
        subsection with respect to a new qualified fuel cell motor 
        vehicle placed in service by the taxpayer during the taxable 
        year is--
                    ``(A) $4,000, if such vehicle has a gross vehicle 
                weight rating of not more than 8,500 pounds,
                    ``(B) $10,000, if such vehicle has a gross vehicle 
                weight rating of more than 8,500 pounds but not more 
                than 14,000 pounds,
                    ``(C) $20,000, if such vehicle has a gross vehicle 
                weight rating of more than 14,000 pounds but not more 
                than 26,000 pounds, and
                    ``(D) $40,000, if such vehicle has a gross vehicle 
                weight rating of more than 26,000 pounds.
            ``(2) Increase for fuel efficiency.--
                    ``(A) In general.--The amount determined under 
                paragraph (1)(A) with respect to a new qualified fuel 
                cell motor vehicle which is a passenger automobile or 
                light truck shall be increased by--
                            ``(i) $1,000, if such vehicle achieves at 
                        least 150 percent but less than 175 percent of 
                        the 2002 model year city fuel economy,
                            ``(ii) $1,500, if such vehicle achieves at 
                        least 175 percent but less than 200 percent of 
                        the 2002 model year city fuel economy,
                            ``(iii) $2,000, if such vehicle achieves at 
                        least 200 percent but less than 225 percent of 
                        the 2002 model year city fuel economy,
                            ``(iv) $2,500, if such vehicle achieves at 
                        least 225 percent but less than 250 percent of 
                        the 2002 model year city fuel economy,
                            ``(v) $3,000, if such vehicle achieves at 
                        least 250 percent but less than 275 percent of 
                        the 2002 model year city fuel economy,
                            ``(vi) $3,500, if such vehicle achieves at 
                        least 275 percent but less than 300 percent of 
                        the 2002 model year city fuel economy, and
                            ``(vii) $4,000, if such vehicle achieves at 
                        least 300 percent of the 2002 model year city 
                        fuel economy.
                    ``(B) 2002 model year city fuel economy.--For 
                purposes of subparagraph (A), the 2002 model year city 
                fuel economy with respect to a vehicle shall be 
                determined in accordance with the following tables:
                            ``(i) In the case of a passenger 
                        automobile:
                                               The 2002 model year city
``If vehicle inertia weight class                      fuel economy is:
        is:
    1,500 or 1,750 lbs............................            43.7 mpg 
    2,000 lbs.....................................            38.3 mpg 
    2,250 lbs.....................................            34.1 mpg 
    2,500 lbs.....................................            30.7 mpg 
    2,750 lbs.....................................            27.9 mpg 
    3,000 lbs.....................................            25.6 mpg 
    3,500 lbs.....................................            22.0 mpg 
    4,000 lbs.....................................            19.3 mpg 
    4,500 lbs.....................................            17.2 mpg 
    5,000 lbs.....................................            15.5 mpg 
    5,500 lbs.....................................            14.1 mpg 
    6,000 lbs.....................................            12.9 mpg 
    6,500 lbs.....................................            11.9 mpg 
    7,000 or 8,500 lbs............................            11.1 mpg.
                            ``(ii) In the case of a light truck:

                                               The 2002 model year city
``If vehicle inertia weight class 
        is:
    1,500 or 1,750 lbs............................            37.6 mpg 
    2,000 lbs.....................................            33.7 mpg 
    2,250 lbs.....................................            30.6 mpg 
    2,500 lbs.....................................            28.0 mpg 
    2,750 lbs.....................................            25.9 mpg 
    3,000 lbs.....................................            24.1 mpg 
    3,500 lbs.....................................            21.3 mpg 
    4,000 lbs.....................................            19.0 mpg 
    4,500 lbs.....................................            17.3 mpg 
    5,000 lbs.....................................            15.8 mpg 
    5,500 lbs.....................................            14.6 mpg 
    6,000 lbs.....................................            13.6 mpg 
    6,500 lbs.....................................            12.8 mpg 
    7,000 or 8,500 lbs............................            12.0 mpg.
                    ``(C) Vehicle inertia weight class.--For purposes 
                of subparagraph (B), the term `vehicle inertia weight 
                class' has the same meaning as when defined in 
                regulations prescribed by the Administrator of the 
                Environmental Protection Agency for purposes of the 
                administration of title II of the Clean Air Act (42 
                U.S.C. 7521 et seq.).
            ``(3) New qualified fuel cell motor vehicle.--For purposes 
        of this subsection, the term `new qualified fuel cell motor 
        vehicle' means a motor vehicle--
                    ``(A) which is propelled by power derived from 1 or 
                more cells which convert chemical energy directly into 
                electricity by combining oxygen with hydrogen fuel 
                which is stored on board the vehicle in any form,
                    ``(B) which, in the case of a passenger automobile 
                or light truck has received a certificate of conformity 
                under the Clean Air Act and meets the zero emission 
                standard for certification under the Clean Air Act for 
                the make and model year of the vehicle,
                    ``(C) the original use of which commences with the 
                taxpayer,
                    ``(D) which is acquired for use or lease by the 
                taxpayer and not for resale, and
                    ``(E) which is made by a manufacturer.
    ``(c) New Qualified Hydrogen Fuel Motor Vehicle Credit.--
            ``(1) Allowance of credit.--The new qualified hydrogen fuel 
        motor vehicle credit determined under this subsection is an 
        amount equal to the applicable percentage of the incremental 
        cost of any new qualified hydrogen fuel motor vehicle placed in 
        service by the taxpayer during the taxable year.
            ``(2) Applicable percentage.--For purposes of paragraph 
        (1), the applicable percentage with respect to any new 
        qualified hydrogen fuel motor vehicle is--
                    ``(A) 50 percent, plus
                    ``(B) 30 percent, if such vehicle--
                            ``(i) has received a certificate of 
                        conformity under the Clean Air Act and meets or 
                        exceeds the most stringent standard available 
                        for certification under the Clean Air Act for 
                        that make and model year vehicle (other than a 
                        zero emission standard), or
                            ``(ii) has received an order from an 
                        applicable State certifying the vehicle for 
                        sale or lease in California and meets or 
                        exceeds the most stringent standard available 
                        for certification under the State laws of 
                        California (enacted in accordance with a waiver 
                        granted under section 209(b) of the Clean Air 
                        Act) for that make and model year vehicle 
                        (other than a zero emission standard).
            ``(3) Incremental cost.--For purposes of this subsection, 
        the incremental cost of any new qualified hydrogen fuel motor 
        vehicle is equal to the amount of the excess of the 
        manufacturer's suggested retail price for such vehicle over 
        such price for a gasoline or diesel fuel motor vehicle of the 
        same model, to the extent such amount does not exceed--
                    ``(A) $5,000, if such vehicle has a gross vehicle 
                weight rating of not more than 8,500 pounds,
                    ``(B) $10,000, if such vehicle has a gross vehicle 
                weight rating of more than 8,500 pounds but not more 
                than 14,000 pounds,
                    ``(C) $25,000, if such vehicle has a gross vehicle 
                weight rating of more than 14,000 pounds but not more 
                than 26,000 pounds, and
                    ``(D) $40,000, if such vehicle has a gross vehicle 
                weight rating of more than 26,000 pounds.
            ``(4) New qualified hydrogen fuel motor vehicle.--For 
        purposes of this subsection, the term `new qualified hydrogen 
        fuel motor vehicle' means any motor vehicle--
                    ``(A) which is only capable of operating on 
                hydrogen fuel,
                    ``(B) the original use of which commences with the 
                taxpayer,
                    ``(C) which is acquired by the taxpayer for use or 
                lease, but not for resale, and
                    ``(D) which is made by a manufacturer.
    ``(d) Application With Other Credits.--The credit allowed under 
subsection (a) for any taxable year shall not exceed the excess (if 
any) of--
            ``(1) the regular tax for the taxable year reduced by the 
        sum of the credits allowable under subpart A and sections 27, 
        29, and 30, over
            ``(2) the tentative minimum tax for the taxable year.
    ``(e) Other Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Motor vehicle.--The term `motor vehicle' has the 
        meaning given such term by section 30(c)(2).
            ``(2) 2002 model year city fuel economy.--The 2002 model 
        year city fuel economy with respect to any vehicle shall be 
        measured under rules similar to the rules under section 
        4064(c).
            ``(3) Other terms.--The terms `automobile', `passenger 
        automobile', `light truck', and `manufacturer' have the 
        meanings given such terms in regulations prescribed by the 
        Administrator of the Environmental Protection Agency for 
        purposes of the administration of title II of the Clean Air Act 
        (42 U.S.C. 7521 et seq.).
            ``(4)  Reduction in basis.--For purposes of this subtitle, 
        the basis of any property for which a credit is allowable under 
        subsection (a) shall be reduced by the amount of such credit so 
        allowed (determined without regard to subsection (d)).
            ``(5) No double benefit.--The amount of any deduction or 
        other credit allowable under this chapter--
                    ``(A) for any incremental cost taken into account 
                in computing the amount of the credit determined under 
                subsection (d) shall be reduced by the amount of such 
                credit attributable to such cost, and
                    ``(B) with respect to a vehicle described under 
                subsection (b) or (c), shall be reduced by the amount 
                of credit allowed under subsection (a) for such vehicle 
                for the taxable year.
            ``(6) Property used by tax-exempt entities.--In the case of 
        a credit amount which is allowable with respect to a motor 
        vehicle which is acquired by an entity exempt from tax under 
        this chapter, the person which sells or leases such vehicle to 
        the entity shall be treated as the taxpayer with respect to the 
        vehicle for purposes of this section and the credit shall be 
        allowed to such person, but only if the person clearly 
        discloses to the entity in any sale or lease document the 
        specific amount of any credit otherwise allowable to the entity 
        under this section and reduces the sale or lease price of such 
        vehicle by an equivalent amount of such credit.
            ``(7) Recapture.--The Secretary shall, by regulations, 
        provide for recapturing the benefit of any credit allowable 
        under subsection (a) with respect to any property which ceases 
        to be property eligible for such credit (including recapture in 
        the case of a lease period of less than the economic life of a 
        vehicle).
            ``(8) Property used outside united states, etc., not 
        qualified.--No credit shall be allowed under subsection (a) 
        with respect to any property referred to in section 50(b) or 
        with respect to the portion of the cost of any property taken 
        into account under section 179.
            ``(9) Election to not take credit.--No credit shall be 
        allowed under subsection (a) for any vehicle if the taxpayer 
        elects to not have this section apply to such vehicle.
            ``(10) Carryback and carryforward allowed.--
                    ``(A) In general.--If the credit amount allowable 
                under subsection (a) for a taxable year exceeds the 
                amount of the limitation under subsection (d) for such 
                taxable year (in this paragraph referred to as the 
                `unused credit year'), such excess shall be allowed as 
                a credit carryforward for each of the 20 taxable years 
                following the unused credit year.
                    ``(B) Rules.--Rules similar to the rules of section 
                39 shall apply with respect to the credit carryforward 
                under subparagraph (A).
            ``(11) Interaction with air quality and motor vehicle 
        safety standards.--Unless otherwise provided in this section, a 
        motor vehicle shall not be considered eligible for a credit 
        under this section unless such vehicle is in compliance with--
                    ``(A) the applicable provisions of the Clean Air 
                Act for the applicable make and model year of the 
                vehicle (or applicable air quality provisions of State 
                law in the case of a State which has adopted such 
                provision under a waiver under section 209(b) of the 
                Clean Air Act), and
                    ``(B) the motor vehicle safety provisions of 
                sections 30101 through 30169 of title 49, United States 
                Code.
    ``(f) Regulations.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Secretary shall promulgate such regulations as necessary to 
        carry out the provisions of this section.
            ``(2) Coordination in prescription of certain 
        regulations.--The Secretary of the Treasury, in coordination 
        with the Secretary of Transportation and the Administrator of 
        the Environmental Protection Agency, shall prescribe such 
        regulations as necessary to determine whether a motor vehicle 
        meets the requirements to be eligible for a credit under this 
        section.
    ``(g) Termination.--This section shall not apply to any property 
purchased after--
            ``(1) in the case of a new qualified fuel cell motor 
        vehicle (as described in subsection (b)), December 31, 2018, 
        and
            ``(2) in the case of a new qualified hydrogen fuel motor 
        vehicle, December 31, 2013.''.
    (b) Conforming Amendments.--
            (1) Section 1016(a) is amended by striking ``and'' at the 
        end of paragraph (27), by striking the period at the end of 
        paragraph (28) and inserting ``, and'', and by adding at the 
        end the following new paragraph:
            ``(29) to the extent provided in section 30B(e)(4).''.
            (2) Section 55(c)(2) is amended by inserting ``30B(d),'' 
        after ``30(b)(3)''.
            (3) Section 6501(m) is amended by inserting ``30B(e)(9),'' 
        after ``30(d)(4),''.
            (4) The table of sections for subpart B of part IV of 
        subchapter A of chapter 1 is amended by inserting after the 
        item relating to section 30A the following new item:

        ``Sec. 30B. Credit for fuel cell and hydrogen motor 
                            vehicles.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act, in taxable years ending after such date.

SEC. 303. CREDIT FOR INSTALLATION OF HYDROGEN FUELING STATIONS.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
(relating to foreign tax credit, etc.), as amended by this Act, is 
amended by adding at the end the following new section:

``SEC. 30C. HYDROGEN-FUEL VEHICLE REFUELING PROPERTY CREDIT.

    ``(a) Credit Allowed.--There shall be allowed as a credit against 
the tax imposed by this chapter for the taxable year an amount equal to 
50 percent of the amount paid or incurred by the taxpayer during the 
taxable year for the installation of qualified hydrogen-fuel vehicle 
refueling property.
    ``(b) Limitation.--The credit allowed under subsection (a)--
            ``(1) with respect to any retail hydrogen-fuel vehicle 
        refueling property, shall not exceed $100,000, and
            ``(2) with respect to any residential hydrogen-fuel vehicle 
        refueling property, shall not exceed $2,500.
    ``(c) Year Credit Allowed.--The credit allowed under subsection (a) 
shall be allowed in the taxable year in which the qualified hydrogen-
fuel vehicle refueling property is placed in service by the taxpayer.
    ``(d) Definitions.--For purposes of this section--
            ``(1) Qualified hydrogen-fuel vehicle refueling property.--
        The term `qualified hydrogen-fuel vehicle refueling property' 
        means a qualified clean-fuel vehicle refueling property (as 
        defined in section 179A(d)) relating to hydrogen fuel.
            ``(2) Residential hydrogen-fuel vehicle refueling 
        property.--The term `residential hydrogen-fuel vehicle 
        refueling property' means qualified hydrogen-fuel vehicle 
        refueling property which is installed on property which is used 
        as the principal residence (within the meaning of section 121) 
        of the taxpayer.
            ``(3) Retail hydrogen-fuel vehicle refueling property.--The 
        term `retail hydrogen-fuel vehicle refueling property' means 
        qualified hydrogen-fuel vehicle refueling property which is 
        installed on property (other than property described in 
        paragraph (2)) used in a trade or business of the taxpayer.
    ``(e) Application With Other Credits.--The credit allowed under 
subsection (a) for any taxable year shall not exceed the excess (if 
any) of--
            ``(1) the regular tax for the taxable year reduced by the 
        sum of the credits allowable under subpart A and sections 27, 
        29, 30, and 30B, over
            ``(2) the tentative minimum tax for the taxable year.
    ``(f) Basis Reduction.--For purposes of this title, the basis of 
any property shall be reduced by the portion of the cost of such 
property taken into account under subsection (a).
    ``(g) No Double Benefit.--No deduction shall be allowed under 
section 179A with respect to any property with respect to which a 
credit is allowed under subsection (a).
    ``(h) Refueling Property Installed for Tax-Exempt Entities.--In the 
case of qualified hydrogen-fuel vehicle refueling property installed on 
property owned or used by an entity exempt from tax under this chapter, 
the person which installs such refueling property for the entity shall 
be treated as the taxpayer with respect to the refueling property for 
purposes of this section (and such refueling property shall be treated 
as retail hydrogen-fuel vehicle refueling property) and the credit 
shall be allowed to such person, but only if the person clearly 
discloses to the entity in any installation contract the specific 
amount of the credit allowable under this section and modifies the 
price of such contract to take into account the amount of such credit.
    ``(i) Carryforward Allowed.--
            ``(1) In general.--If the credit amount allowable under 
        subsection (a) for a taxable year exceeds the amount of the 
        limitation under subsection (e) for such taxable year (referred 
        to as the `unused credit year' in this subsection), such excess 
        shall be allowed as a credit carryforward for each of the 20 
        taxable years following the unused credit year.
            ``(2) Rules.--Rules similar to the rules of section 39 
        shall apply with respect to the credit carryforward under 
        paragraph (1).
    ``(j) Special Rules.--Rules similar to the rules of paragraphs (4) 
and (5) of section 179A(e) shall apply.
    ``(k) Regulations.--The Secretary shall prescribe such regulations 
as necessary to carry out the provisions of this section.
    ``(l) Termination.--This section shall not apply to any property 
placed in service after December 31, 2018.''.
    (b) Incentive for Production of Hydrogen at Qualified Clean-Fuel 
Vehicle Refueling Property.--Section 179A(d) (defining qualified clean-
fuel vehicle refueling property) is amended by adding at the end the 
following new flush sentence:
``In the case of hydrogen, paragraph (3)(A) shall be applied by 
substituting `production, storage, or dispensing' for `storage or 
dispensing' both places it appears.''.
    (c) Conforming Amendments.--(1) Section 1016(a), as amended by this 
Act, is amended by striking ``and'' at the end of paragraph (28), by 
striking the period at the end of paragraph (29) and inserting ``, 
and'', and by adding at the end the following new paragraph:
            ``(30) to the extent provided in section 30C(f).''.
    (2) Section 55(c)(2), as amended by this Act, is amended by 
inserting ``30C(e),'' after ``30B(e)''.
    (3) The table of sections for subpart B of part IV of subchapter A 
of chapter 1, as amended by this Act, is amended by inserting after the 
item relating to section 30B the following new item:

        ``Sec. 30C. Hydrogen-fuel vehicle refueling property credit.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act, in taxable years ending after such date.

SEC. 304. CREDIT FOR RETAIL SALE OF HYDROGEN FUEL AS MOTOR VEHICLE 
              FUEL.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
(relating to business related credits) is amended by inserting after 
section 40 the following new section:

``SEC. 40A. CREDIT FOR RETAIL SALE OF HYDROGEN FUEL AS MOTOR VEHICLE 
              FUEL.

    ``(a) General Rule.--For purposes of section 38, the hydrogen fuel 
retail sales credit for any taxable year is the applicable amount for 
each gasoline gallon equivalent of hydrogen fuel sold at retail by the 
taxpayer during such year as a fuel to propel any qualified motor 
vehicle, but only if the taxpayer reduces the retail sales price of 
such fuel by an equivalent amount of such credit.
    ``(b) Definitions.--For purposes of this section--
            ``(1) Applicable amount.--The term `applicable amount' 
        means as follows:
                    ``(A) In general.--Except as provided in 
                subparagraph (B), 50 cents.
                    ``(B) Hydrogen fuel produced from renewable 
                sources.--
                            ``(i) In general.--In the case of hydrogen 
                        fuel which is produced from renewable sources 
                        or from electricity from such sources, $1.00.
                            ``(ii) Renewable sources.--For purposes of 
                        this subparagraph, the term `renewable sources' 
                        means solar, wind, biomass, and geothermal.
            ``(2) Gasoline gallon equivalent.--The term `gasoline 
        gallon equivalent' means, with respect to hydrogen fuel, the 
        amount (determined by the Secretary) of such fuel having a Btu 
        content of 114,000.
            ``(3) Qualified motor vehicle.--The term `qualified motor 
        vehicle' means any motor vehicle (as defined in section 
        30(c)(2)) which meets any applicable Federal or State emissions 
        standards with respect to hydrogen fuel.
            ``(4) Sold at retail.--
                    ``(A) In general.--The term `sold at retail' means 
                the sale, for a purpose other than resale, after 
                manufacture, production, or importation.
                    ``(B) Use treated as sale.--If any person uses 
                hydrogen fuel (including any use after importation) as 
                a fuel to propel any qualified hydrogen fuel motor 
                vehicle (as defined in section 30B(c)(4)) before such 
                fuel is sold at retail, then such use shall be treated 
                in the same manner as if such fuel were sold at retail 
                as a fuel to propel such a vehicle by such person.
    ``(c) No Double Benefit.--The amount of any deduction or other 
credit allowable under this chapter for hydrogen fuel taken into 
account in computing the amount of the credit determined under 
subsection (a) shall be reduced by the amount of such credit 
attributable to such fuel.
    ``(d) Pass-Thru in the Case of Estates and Trusts.--Under 
regulations prescribed by the Secretary, rules similar to the rules of 
subsection (d) of section 52 shall apply.
    ``(e) Termination.--This section shall not apply to any fuel sold 
at retail after December 31, 2018.''.
    (b) Credit Treated as Business Credit.--Section 38(b) (relating to 
current year business credit) is amended by striking ``plus'' at the 
end of paragraph (14), by striking the period at the end of paragraph 
(15) and inserting ``, plus'', and by adding at the end the following 
new paragraph:
            ``(16) the hydrogen fuel retail sales credit determined 
        under section 40A(a).''.
    (c) Transitional Rule.--Section 39(d) (relating to transitional 
rules) is amended by adding at the end the following new paragraph:
            ``(11) No carryback of section 40a credit before effective 
        date.--No portion of the unused business credit for any taxable 
        year which is attributable to the hydrogen fuel retail sales 
        credit determined under section 40A(a) may be carried back to a 
        taxable year ending before the date of the enactment of such 
        section.''.
    (d) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 is amended by inserting after the 
item relating to section 40 the following new item:

        ``Sec. 40A. Credit for retail sale of hydrogen fuel as motor 
                            vehicle fuel.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to fuel sold at retail after the date of the enactment of this 
Act, in taxable years ending after such date.

SEC. 305. CREDIT FOR STATIONARY AND PORTABLE FUEL CELLS.

    (a) Business Property.--
            (1) In general.--Subparagraph (A) of section 48(a)(3) 
        (defining energy property) is amended by striking ``or'' at the 
        end of clause (i), by adding ``or'' at the end of clause (ii), 
        and by inserting after clause (ii) the following new clause:
                            ``(iii) energy-efficient building 
                        property,''.
            (2) Energy-efficient building property.--Subsection (a) of 
        section 48 is amended by redesignating paragraphs (4) and (5) 
        as paragraphs (5) and (6), respectively, and by inserting after 
        paragraph (3) the following new paragraph:
            ``(4) Energy-efficient building property.--For purposes of 
        this subsection--
                    ``(A) In general.--The term `energy-efficient 
                building property' means a fuel cell power plant that--
                            ``(i) generates electricity using an 
                        electrochemical process,
                            ``(ii) has an electricity-only generation 
                        efficiency greater than 30 percent, and
                            ``(iii) generates at least 0.5 kilowatt of 
                        electricity using an electrochemical process.
                    ``(B) Limitation.--In the case of energy-efficient 
                building property placed in service during the taxable 
                year, the credit determined under paragraph (1) for 
                such year with respect to such property shall not 
                exceed an amount equal to the lesser of--
                            ``(i) 30 percent (10 percent in the case of 
                        taxable years beginning after 2008) of the 
                        basis of such property, including expenditures 
                        for labor costs properly allocable to the 
                        onsite preparation, assembly, or original 
                        installation of the property and for piping or 
                        wiring to interconnect such property, or
                            ``(ii) $1,000 ($100 for taxable years 
                        beginning after 2008) for each kilowatt of 
                        capacity of such property.
                    ``(C) Special rules.--For purposes of subparagraph 
                (A)(ii)--
                            ``(i) Electricity-only generation 
                        efficiency.--The electricity-only generation 
                        efficiency percentage of a fuel cell power 
                        plant is the fraction--
                                    ``(I) the numerator of which is the 
                                total useful electrical power produced 
                                by such plant at normal operating 
                                rates, and expected to be consumed in 
                                its normal application, and
                                    ``(II) the denominator of which is 
                                the lower heating value of the fuel 
                                source for such plant.
                            ``(ii) Determinations made on btu basis.--
                        The electricity-only generation efficiency 
                        percentage shall be determined on a Btu basis.
                    ``(D) Fuel cell power plant.--The term `fuel cell 
                power plant' means an integrated system comprised of a 
                fuel cell stack assembly and associated balance of 
                plant components that converts a fuel into electricity 
                using electrochemical means.
                    ``(E) Energy-efficient building property installed 
                for tax-exempt entities.--In the case of energy-
                efficient building property installed on property owned 
                or used by an entity exempt from tax under this 
                chapter, the person which installs such building 
                property for the entity shall be treated as the 
                taxpayer with respect to the building property for 
                purposes of this section and the credit shall be 
                allowed to such person, but only if the person clearly 
                discloses to the entity in any installation contract 
                the specific amount of the credit allowable under this 
                section and modifies the price of such contract to take 
                into account the amount of such credit.''.
            (3) Limitation.--Section 48(a)(2)(A) (relating to energy 
        percentage) is amended to read as follows:
                    ``(A) In general.--The energy percentage is--
                            ``(i) in the case of energy-efficient 
                        building property placed in service in taxable 
                        years beginning before January 1, 2009, 30 
                        percent, and
                            ``(ii) in the case of any other energy 
                        property, 10 percent.''.
            (4) Conforming amendments.--
                    (A) Section 29(b)(3)(A)(i)(III) is amended by 
                striking ``section 48(a)(4)(C)'' and inserting 
                ``section 48(a)(5)(C)''.
                    (B) Section 48(a)(1) is amended by inserting 
                ``except as provided in paragraph (4)(B),'' before 
                ``the energy''.
            (5) Effective date.--The amendments made by this subsection 
        shall apply to property placed in service after the date of the 
        enactment of this Act, in taxable years ending after such date, 
        under rules similar to the rules of section 48(m) of the 
        Internal Revenue Code of 1986 (as in effect on the day before 
        the date of the enactment of the Revenue Reconciliation Act of 
        1990).
    (b) Nonbusiness Property.--
            (1) In general.--Subpart A of part IV of subchapter A of 
        chapter 1 (relating to nonrefundable personal credits) is 
        amended by inserting after section 25B the following new 
        section:

``SEC. 25C. NONBUSINESS ENERGY-EFFICIENT BUILDING PROPERTY.

    ``(a) Credit Allowed.--
            ``(1) In general.--In the case of an individual, there 
        shall be allowed as a credit against the tax imposed by this 
        chapter for the taxable year an amount equal to the nonbusiness 
        energy-efficient building property expenditures which are paid 
        or incurred during such year.
            ``(2) Limitation.--The credit allowed under paragraph (1) 
        with respect to property placed in service by the taxpayer 
        during the taxable year shall not exceed an amount equal to the 
        lesser of--
                    ``(A) 30 percent (10 percent in the case of taxable 
                years beginning after 2008) of the basis of such 
                property, or
                    ``(B) $1,000 ($100 for taxable years beginning 
                after 2008) for each kilowatt of capacity of such 
                property.
    ``(b) Nonbusiness Energy-Efficient Building Property 
Expenditures.--For purposes of this section--
            ``(1) In general.--The term `nonbusiness energy-efficient 
        building property expenditures' means expenditures made by the 
        taxpayer for nonbusiness energy-efficient building property 
        installed on or in connection with a dwelling unit--
                    ``(A) which is located in the United States, and
                    ``(B) which is used by the taxpayer as a residence.
        Such term includes expenditures for labor costs properly 
        allocable to the onsite preparation, assembly, or original 
        installation of the property.
            ``(2) Nonbusiness energy-efficient building property.--The 
        term `nonbusiness energy-efficient building property' means 
        energy-efficient building property (as defined in section 
        48(a)(4)) if--
                    ``(A) the original use of such property commences 
                with the taxpayer, and
                    ``(B) such property meets the standards (if any) 
                applicable to such property under section 48(a)(4).
    ``(c) Special Rules.--For purposes of this section--
            ``(1) Dollar amounts in case of joint occupancy.--In the 
        case of any dwelling unit which is jointly occupied and used 
        during any calendar year as a residence by 2 or more 
        individuals the following shall apply:
                    ``(A) The amount of the credit allowable, under 
                subsection (a) by reason of expenditures (as the case 
                may be) made during such calendar year by any of such 
                individuals with respect to such dwelling unit shall be 
                determined by treating all of such individuals as 1 
                taxpayer whose taxable year is such calendar year.
                    ``(B) There shall be allowable, with respect to 
                such expenditures to each of such individuals, a credit 
                under subsection (a) for the taxable year in which such 
                calendar year ends in an amount which bears the same 
                ratio to the amount determined under subparagraph (A) 
                as the amount of such expenditures made by such 
                individual during such calendar year bears to the 
                aggregate of such expenditures made by all of such 
                individuals during such calendar year.
            ``(2) Tenant-stockholder in cooperative housing 
        corporation.--In the case of an individual who is a tenant-
        stockholder (as defined in section 216) in a cooperative 
        housing corporation (as defined in such section), such 
        individual shall be treated as having made his tenant-
        stockholder's proportionate share (as defined in section 
        216(b)(3)) of any expenditures of such corporation.
            ``(3) Condominiums.--
                    ``(A) In general.--In the case of an individual who 
                is a member of a condominium management association 
                with respect to a condominium which the individual 
                owns, such individual shall be treated as having made 
                his proportionate share of any expenditures of such 
                association.
                    ``(B) Condominium management association.--For 
                purposes of this paragraph, the term `condominium 
                management association' means an organization which 
                meets the requirements of paragraph (1) of section 
                528(c) (other than subparagraph (E) thereof) with 
                respect to a condominium project substantially all of 
                the units of which are used as residences.
            ``(4) Allocation in certain cases.--If less than 80 percent 
        of the use of an item is for nonbusiness purposes, only that 
        portion of the expenditures for such item which is properly 
        allocable to use for nonbusiness purposes shall be taken into 
        account.
            ``(5) When expenditure made; amount of expenditure.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), an expenditure with respect to an 
                item shall be treated as made when the original 
                installation of the item is completed.
                    ``(B) Expenditures part of building construction.--
                In the case of an expenditure in connection with the 
                construction or reconstruction of a structure, such 
                expenditure shall be treated as made when the original 
                use of the constructed or reconstructed structure by 
                the taxpayer begins.
                    ``(C) Amount.--The amount of any expenditure shall 
                be the cost thereof.
            ``(6) Property financed by subsidized energy financing.--
        For purposes of determining the amount of nonbusiness energy-
        efficient building property expenditures made by any individual 
        with respect to any dwelling unit, there shall not be taken 
        into account expenditures which are made from subsidized energy 
        financing (as defined in section 48(a)(5)(C)).
    ``(d) Basis Adjustments.--For purposes of this subtitle, if a 
credit is allowed under this section for any expenditure with respect 
to any property, the increase in the basis of such property which would 
(but for this subsection) result from such expenditure shall be reduced 
by the amount of the credit so allowed.''.
            (2) Conforming amendments.--
                    (A) Section 25C(c), as added by subsection (a), is 
                amended by striking ``section 26(a) for such taxable 
                year reduced by the sum of the credits allowable under 
                this subpart (other than this section and section 
                25D)'' and inserting ``subsection (b)(3)''.
                    (B) Section 23(b)(4)(B) is amended by inserting 
                ``and section 25C'' after ``this section''.
                    (C) Section 24(b)(3)(B) is amended by striking ``23 
                and 25B'' and inserting ``23, 25B, and 25C''.
                    (D) Section 25(e)(1)(C) is amended by inserting 
                ``25C,'' after ``25B,''.
                    (E) Section 25B(g)(2) is amended by striking 
                ``section 23'' and inserting ``sections 23 and 25C''.
                    (F) Section 26(a)(1) is amended by striking ``and 
                25B'' and inserting ``25B, and 25C''.
                    (G) Section 904(h) is amended by striking ``and 
                25B'' and inserting ``25B, and 25C''.
                    (H) Section 1400C(d) is amended by striking ``and 
                25B'' and inserting ``25B, and 25C''.
            (3) Additional conforming Amendments.--
                    (A) Section 23(c), as in effect for taxable years 
                beginning before January 1, 2004, is amended by 
                striking ``section 1400C'' and inserting ``sections 25C 
                and 1400C''.
                    (B) Section 25(e)(1)(C), as in effect for taxable 
                years beginning before January 1, 2004, is amended by 
                inserting ``, 25C,'' after ``sections 23''.
                    (C) Subsection (a) of section 1016, as amended by 
                this Act, is amended by striking ``and'' at the end of 
                paragraph (29), by striking the period at the end of 
                paragraph (30) and inserting ``, and'', and by adding 
                at the end the following new paragraph:
            ``(31) to the extent provided in section 25C(f), in the 
        case of amounts with respect to which a credit has been allowed 
        under section 25C.''.
                    (D) Section 1400C(d), as in effect for taxable 
                years beginning before January 1, 2004, is amended by 
                inserting ``and section 25C'' after ``this section''.
                    (E) The table of sections for subpart A of part IV 
                of subchapter A of chapter 1 is amended by inserting 
                after the item relating to section 25B the following 
                new item:

                              ``Sec. 25C. Nonbusiness energy-efficient 
                                        building property.''.
            (4) Effective dates.--
                    (A) In general.--Except as provided by subparagraph 
                (B), the amendments made by this subsection shall apply 
                to expenditures after the date of the enactment of this 
                Act, in taxable years ending after such date.
                    (B) Paragraph (2).--The amendments made by 
                paragraph (2) shall apply to taxable years beginning 
                after December 31, 2003.
                                 <all>