[Congressional Record Volume 149, Number 31 (Wednesday, February 26, 2003)]
[Senate]
[Pages S2856-S2863]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DORGAN (for himself, Mr. Lieberman, Mrs. Clinton, Mr. 
        Kerry, Mr. Jeffords, Mr. Corzine, Mr. Conrad, and Mr. Akaka):
  S. 461. A bill to establish a program to promote hydrogen fuel cells, 
and for other purposes; to the Committee on Finance.
  Mr. DORGAN. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 461

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

     SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

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

Sec. 1. Short title and table of contents.
Sec. 2. Findings.
Sec. 3. Purposes.
Sec. 4. Definitions.

  TITLE I--HYDROGEN AND FUEL CELL TECHNOLOGY RESEARCH AND DEVELOPMENT

Sec. 101. Definitions.

[[Page S2857]]

Sec. 102. Hydrogen and fuel cell research and development.
Sec. 103. Coordination and consultation.
Sec. 104. Advisory committee.
Sec. 105. Report to Congress.
Sec. 106. National Academy of Sciences review.
Sec. 107. Authorization of appropriations for hydrogen production, 
              storage, and transport.
Sec. 108. Authorization of appropriations for fuel cell technologies.

                    TITLE II--DEMONSTRATION PROGRAMS

Sec. 201. Fuel cell vehicle demonstration program.
Sec. 202. Heavy duty fuel cell vehicle fleet demonstration program.
Sec. 203. Tribal stationary hybrid power demonstration.
Sec. 204. Stationary fuel cell grant demonstration program.

                  TITLE III--FEDERAL PURCHASE PROGRAM

Sec. 301. Procurement of fuel cell vehicles.
Sec. 302. Federal stationary fuel cell power purchase program.
Sec. 303. Establishment of an interagency task force.

                TITLE IV--REMOVAL OF REGULATORY BARRIERS

Sec. 401. Amendments to PURPA.
Sec. 402. Net metering.
Sec. 403. Department of Energy study.

       TITLE V--TAX INCENTIVES FOR HYDROGEN FUEL CELL TECHNOLOGY

Sec. 501. Hydrogen fuel cell motor vehicle credit.
Sec. 502. Credit for installation of hydrogen fuel cell motor vehicle 
              fueling stations.
Sec. 503. Credit for residential fuel cell property.
Sec. 504. Credit for business installation of qualified fuel cells.

                    TITLE VI--EDUCATION AND OUTREACH

Sec. 601. Education and outreach.

                   TITLE VII--TARGETS AND TIMETABLES

Sec. 701. Department of Energy strategy.

     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) The United States currently imports approximately 55 
     percent of the oil it consumes.
       (2) At present trends, reliance on foreign oil will 
     increase to 68 percent by 2025.
       (3) Nearly all of the cars and trucks run on gasoline, and 
     they are the main reason the United States imports so much 
     oil.
       (4) Two-thirds of the 20,000,000 barrels of oil Americans 
     use each day is used for transportation.
       (5) Hydrogen fuel cell vehicles offer the best hope of 
     dramatically reducing our dependence on foreign oil, 
     increasing our energy security, and enhancing our 
     environmental protection.
       (6) In the spirit of the Apollo project that put a man on 
     the moon, the United States must commit the necessary 
     resources to develop and commercialize hydrogen fuel cell 
     vehicles, in partnership with the private sector.
       (7) In developing hydrogen fuel cell vehicles, the United 
     States must also support the development and 
     commercialization of stationary fuel cells to power homes and 
     other buildings, so as to diversify energy sources, better 
     protect the environment, provide assured power, and 
     accelerate implementation of fuel cell technology generally.

     SEC. 3. PURPOSES.

       The purposes of this Act are--
       (1) to promote the comprehensive development, 
     demonstration, and commercialization of hydrogen-powered fuel 
     cells in partnership with industry;
       (2) to increase our Nation's energy independence, and 
     energy and national security in doing so;
       (3) to develop a sustainable national energy strategy;
       (4) to protect and strengthen the Nation's economy and 
     standard of living;
       (5) to reduce the environmental impacts of energy 
     production, distribution, transportation, and use; and
       (6) to leverage financial resources through the use of 
     public-private partnerships.

     SEC. 4. DEFINITIONS.

       As used in this Act--
       (1) the term ``critical technology'' means a technology 
     that, in the opinion of the Secretary, requires understanding 
     and development in order to take the next step needed in the 
     development of hydrogen as an economic fuel or storage medium 
     or in the development of fuel cell technologies as a 
     transportation mode;
       (2) the term ``fuel cell vehicle'' means a vehicle that 
     derives all, or a significant part, of its propulsion energy 
     from 1 or more fuel cells; and
       (3) the term ``Secretary'' means the Secretary of Energy.

  TITLE I--HYDROGEN AND FUEL CELL TECHNOLOGY RESEARCH AND DEVELOPMENT

     SEC. 101. DEFINITIONS.

       As used in this title--
       (1) the term ``advisory committee'' means the advisory 
     committee established under section 105; and
       (2) the term ``critical technical issue'' means an issue 
     that, in the opinion of the Secretary, requires understanding 
     and development in order to take the next step needed in the 
     development of hydrogen as an economic fuel or storage medium 
     or in the development of fuel cell technologies as a 
     transportation mode.

     SEC. 102. HYDROGEN AND FUEL CELL RESEARCH AND DEVELOPMENT.

       (a) Programs.--
       (1) Hydrogen energy research and development program.--The 
     Secretary shall, in consultation with the private sector, 
     conduct a research and development program relating to the 
     production, storage, distribution, and use of hydrogen 
     energy, including fueling infrastructure, with the goal of 
     enabling the private sector to demonstrate and commercialize 
     the use of hydrogen for transportation, industrial, 
     commercial, residential, and utility applications.
       (2) Fuel cell technology research and development 
     program.--The Secretary shall conduct fuel cell technology 
     research and development, with the goal of commercializing 
     fuel cell vehicles and stationary fuel cells. The program 
     shall include advanced materials, interfaces and electronics, 
     lower cost and advanced design, balance of plant, enhanced 
     manufacturing processes, reforming capability, and analysis 
     and integration of systems.
       (b) Elements.--In conducting the programs authorized by 
     this section, the Secretary shall--
       (1) initiate or accelerate research and development 
     concerning critical technical issues that will contribute to 
     the development of more economical and environmentally sound 
     fuel cell vehicles and hydrogen energy systems, including 
     critical technical issues with respect to--
       (A) production, with consideration of cost-effective and 
     market-efficient production from renewable energy sources;
       (B) transmission and distribution;
       (C) storage, including storage of hydrogen for surface 
     transportation applications; and
       (D) use, including use in--
       (i) surface transportation;
       (ii) fuel cells and components;
       (iii) fueling infrastructure;
       (iv) stationary applications; and
       (v) isolated villages, islands, and communities in which 
     other energy sources are not available or are very expensive;
       (2) give particular attention to resolving critical 
     technical issues preventing the introduction of hydrogen 
     energy and fuel cell vehicles into the marketplace; and
       (3) survey private sector hydrogen energy and fuel cell 
     research and development activities worldwide and take steps 
     to ensure that such activities under this section--
       (A) enhance rather than unnecessarily duplicate any 
     available research and development; and
       (B) complement rather than displace or compete with the 
     privately funded hydrogen energy or fuel cell research and 
     development activities of United States industry.
       (c) Federal Funding.--The Secretary shall carry out the 
     research and development activities authorized under this 
     section using a competitive merit review process.
       (d) Cost Sharing.--
       (1) In general.--The Secretary shall require a commitment 
     from non-Federal sources of at least 20 percent of the cost 
     of proposed research and development projects under this 
     section.
       (2) Reduction or elimination.--The Secretary may reduce or 
     eliminate the cost sharing requirement under subsection 
     (d)(1)--
       (A) if the Secretary determines that the research and 
     development is of a basic or fundamental nature; or
       (B) for technical analyses, outreach activities, and 
     educational programs that the Secretary does not expect to 
     result in a marketable product.

     SEC. 103. COORDINATION AND CONSULTATION.

       (a) Secretary's Responsibility.--The Secretary shall have 
     overall management responsibility for carrying out programs 
     under this Act. In carrying out such programs, the Secretary, 
     consistent with such overall management responsibility--
       (1) shall establish a central point for the coordination of 
     all hydrogen energy and fuel cell research, development, and 
     demonstration activities of the Department of Energy; and
       (2) may use the expertise of any other Federal agency in 
     accordance with subsection (b) in carrying out any activities 
     under this Act, to the extent that the Secretary determines 
     that any such agency has capabilities which would allow such 
     agency to contribute to the purposes of this Act.
       (b) Assistance.--The Secretary may, in accordance with 
     subsection (a), obtain the assistance of any Federal agency 
     upon written request, on a reimbursable basis or otherwise 
     and with the consent of such agency. Each such request shall 
     identify the assistance the Secretary considers necessary to 
     carry out any duty under this Act.
       (c) Consultation.--The Secretary shall consult with other 
     Federal agencies as appropriate, and the advisory committee, 
     in carrying out the Secretary's authorities pursuant to this 
     Act.

     SEC. 104. ADVISORY COMMITTEE.

       (a) Establishment.--There is hereby established a Technical 
     Advisory Committee to advise the Secretary on the programs 
     under this Act and under title II of the Hydrogen Future Act 
     of 1996, to remain in existence for the duration of such 
     programs.
       (b) Membership.--
       (1) In general.--The advisory committee shall be comprised 
     of not fewer than 9 nor

[[Page S2858]]

     more than 15 members appointed by the Secretary, and shall be 
     comprised of such representatives from domestic industry, 
     universities, professional societies, Government 
     laboratories, and financial, environmental, and other 
     organizations as the Secretary considers appropriate based on 
     the Secretary's assessment of the technical and other 
     qualifications of such representatives.
       (2) Terms.--
       (A) In general.--The term of a member of the advisory 
     committee shall not be more than 3 years.
       (B) Staggered terms.--The Secretary may appoint members of 
     the advisory committee 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 advisory 
     committee.
       (C) Reappointment.--A member of the advisory committee 
     whose term expires may be reappointed.
       (3) Chairperson.--The advisory committee shall have a 
     chairperson, who shall be elected by the members from among 
     their number.
       (c) Cooperation.--The heads of Federal agencies shall 
     cooperate with the advisory committee in carrying out the 
     requirements of this section and shall furnish to the 
     advisory committee such information as the advisory committee 
     considers necessary to carry out this section.
       (d) Review.--The advisory committee shall review and make 
     any necessary recommendations to the Secretary on--
       (1) the implementation and conduct of programs under this 
     title;
       (2) the economic, technological, and environmental 
     consequences of the deployment of technologies under this 
     title; and
       (3) means for removing barriers to implementing the 
     technologies and programs under this title.
       (e) Response to Recommendations.--The Secretary shall 
     consider, but need not adopt, any recommendations of the 
     advisory committee under subsection (d). The Secretary shall 
     either describe the implementation, or provide an explanation 
     of the reasons that any such recommendations will not be 
     implemented, in the report to Congress under section 103(b).
       (f) Support.--The Secretary shall provide such staff, 
     funds, and other support as may be necessary to enable the 
     advisory committee to carry out its functions.

     SEC. 105. REPORT TO CONGRESS.

       (a) Report.--
       (1) Requirement.--Not later than 1 year after the date of 
     enactment of this Act and biennially thereafter, the 
     Secretary shall transmit to Congress a detailed report on the 
     status and progress of the programs authorized under this 
     title.
       (2) Contents.--A report under paragraph (1) shall include, 
     in addition to any views and recommendations of the 
     Secretary--
       (A) an assessment of the effectiveness of the programs 
     authorized under this Act;
       (B) recommendations of the advisory committee for any 
     improvements in the program that are needed, including 
     recommendations for additional legislation; and
       (C) to the extent practicable, an analysis of Federal, 
     State, local, and private sector hydrogen- and fuel cell-
     related research, development, and demonstration activities 
     to identify productive areas for increased intergovernmental 
     and private-public sector collaboration.

     SEC. 106. NATIONAL ACADEMY OF SCIENCES REVIEW.

       Beginning 2 years after the date of enactment of this Act, 
     and every 4 years thereafter, the National Academy of 
     Sciences shall perform a review of the progress made through 
     the programs and activities authorized under this Act and 
     title II of the Hydrogen Future Act of 1996, and shall report 
     to Congress on the results of such reviews.

     SEC. 107. AUTHORIZATION OF APPROPRIATIONS FOR HYDROGEN 
                   PRODUCTION, STORAGE, AND TRANSPORT.

       There are authorized to be appropriated to carry out 
     hydrogen production, storage, and transport activities under 
     this title (in addition to any amounts made available for 
     such purposes under other Acts)--
       (1) $200,000,000 for fiscal year 2004;
       (2) $200,000,000 for fiscal year 2005;
       (3) $200,000,000 for fiscal year 2006;
       (4) $200,000,000 for fiscal year 2007;
       (5) $100,000,000 for fiscal year 2008;
       (6) $100,000,000 for fiscal year 2009;
       (7) $100,000,000 for fiscal year 2010;
       (8) $75,000,000 for fiscal year 2011;
       (9) $75,000,000 for fiscal year 2012; and
       (10) $50,000,000 for fiscal year 2013.

     SEC. 108. AUTHORIZATION OF APPROPRIATIONS FOR FUEL CELL 
                   TECHNOLOGIES.

       There are authorized to be appropriated to the Secretary 
     for fuel cell technology activities under this title--
       (1) $200,000,000 for fiscal year 2004;
       (2) $250,000,000 for fiscal year 2005;
       (3) $250,000,000 for fiscal year 2006;
       (4) $200,000,000 for fiscal year 2007;
       (5) $100,000,000 for fiscal year 2008;
       (6) $100,000,000 for fiscal year 2009;
       (7) $100,000,000 for fiscal year 2010;
       (8) $75,000,000 for fiscal year 2011;
       (9) $75,000,000 for fiscal year 2012; and
       (10) $50,000,000 for fiscal year 2013.

                    TITLE II--DEMONSTRATION PROGRAMS

     SEC. 201. FUEL CELL VEHICLE DEMONSTRATION PROGRAM.

       (a) Program.--The Secretary shall establish a cost shared 
     program to purchase, operate, and evaluate fuel cell vehicles 
     in integrated service in Federal, tribal, State, local, or 
     private fleets to demonstrate the viability of fuel cell 
     vehicles in commercial use in a range of climates, duty 
     cycles, and operating environments.
       (b) Cooperative Agreements.--In carrying out the program, 
     the Secretary may enter into cooperative agreements with 
     Federal, tribal, State, local agencies, or private entities 
     and manufacturers of fuel cell vehicles.
       (c) Components.--The program shall include the following 
     components:
       (1) Selection of pilot fleet sites.--
       (A) In general.--The Secretary shall--
       (i) consult with fleet managers to identify potential fleet 
     sites; and
       (ii) select 10 or more sites at which to carry out the 
     program.
       (B) Criteria.--The criteria for selecting fleet sites shall 
     include--
       (i) geographic diversity;
       (ii) a wide range of climates, duty cycles, and operating 
     environments;
       (iii) the interest and capability of the participating 
     agencies or entities;
       (iv) the appropriateness of a site for refueling 
     infrastructure and for maintaining the fuel cell vehicles; 
     and
       (v) such other criteria as the Secretary determines to be 
     necessary to the success of the program.
       (C) Federal sites.--At least 2 of the projects must be at 
     Federal sites.
       (2) Fueling infrastructure.--
       (A) In general.--The Secretary shall support the 
     installation of the necessary refueling infrastructure at the 
     fleet sites.
       (B) Co-production of hydrogen and electricity pilot 
     projects.--Priority shall be given to pilot projects that 
     integrate--
       (i) both vehicles and stationary electricity production; or
       (ii) hydrogen production, storage, and distribution systems 
     with end-use applications.
       (3) Purchase of fuel cell vehicles.--The Secretary, in 
     consultation with the participating agencies, tribal, State, 
     or local agency, academic institution, or private entity, 
     shall purchase fuel cell vehicles for the program by 
     competitive bid.
       (4) Operation and maintenance period.--The fuel cell 
     vehicles shall be operated and maintained by the 
     participating agencies or entities in regular duty cycles for 
     a period of not less than 12 months.
       (5) Data collection, analysis, and dissemination.--
       (A) Agreements.--The Secretary shall enter into agreements 
     with participating agencies, academic institutions, or 
     private sector entities providing for the collection of 
     proprietary and nonproprietary information with the program.
       (B) Public availability.--The Secretary shall make 
     available to all interested persons technical nonproprietary 
     information and analyses collected under an agreement under 
     subparagraph (A).
       (C) Proprietary information.--The Secretary shall not 
     disclose to the public any proprietary information or 
     analyses collected under an agreement under subparagraph (A).
       (6) Training and technical support.--The Secretary shall 
     provide such training and technical support as fleet managers 
     and fuel cell vehicle operators require to assure the success 
     of the program, including training and technical support in--
       (A) the installation, operation, and maintenance of fueling 
     infrastructure;
       (B) the operation and maintenance of fuel cell vehicles; 
     and
       (C) data collection.
       (d) Coordination.--The Secretary shall ensure coordination 
     of the program with other Federal 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 50 percent 
     financial commitment from participating private-sector 
     companies or other non-Federal sources for participation in 
     the program.
       (2) Commitments.--The Secretary may require a financial 
     commitment from participating agencies or entities based on 
     the avoided costs for purchase, operation, and maintenance of 
     traditional vehicles and refueling infrastructure.
       (f) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section--
       (1) $40,000,000 for fiscal year 2004;
       (2) $100,000,000 for fiscal year 2005;
       (3) $115,000,000 for fiscal year 2006;
       (4) $115,000,000 for fiscal year 2007;
       (5) $95,000,000 for fiscal year 2008;
       (6) $30,000,000 for fiscal year 2009; and
       (7) $15,000,000 for fiscal year 2010.

     SEC. 202. HEAVY DUTY FUEL CELL VEHICLE FLEET DEMONSTRATION 
                   PROGRAM.

       (a) Establishment of Program.--The Secretary, in 
     consultation with other Federal agencies, shall establish a 
     program for entering into cooperative agreements with the 
     private sector to demonstrate fuel cell-powered buses, trucks 
     and other heavy duty vehicles.
       (b) Cost Sharing.--The non-Federal contribution for 
     activities funded under this section shall be not less than--
       (1) 20 percent for fuel infrastructure development 
     activities; and
       (2) 50 percent for demonstration activities and for 
     development activities not described in paragraph (1).
       (c) Reports to Congress.--Not later than 2 years after the 
     date of the enactment of this Act, and not later than October 
     1, 2009, the Secretary, in consultation with other

[[Page S2859]]

     Federal agencies, shall transmit to the appropriate 
     congressional committees a report that--
       (1) evaluates the process of developing infrastructure to 
     accommodate fuel cell-powered buses, trucks, and heavy duty 
     vehicles; and
       (2) assesses the results of the demonstration program under 
     this section.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary for carrying out this 
     demonstration program, to remain available until expended--
       (1) $60,000,000 for fiscal year 2004;
       (2) $90,000,000 for fiscal year 2005;
       (3) $175,000,000 for fiscal year 2006;
       (4) $175,000,000 for fiscal year 2007;
       (5) $175,000,000 for fiscal year 2008;
       (6) $135,000,000 for fiscal year 2009; and
       (7) $40,000,000 for fiscal year 2010.

     SEC. 203. TRIBAL STATIONARY HYBRID POWER DEMONSTRATION.

       (a) In General.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary, in cooperation with 
     Tribes, shall develop and transmit to Congress a strategy for 
     a demonstration and commercial application program to develop 
     hybrid distributed power systems on tribal lands that 
     combine--
       (1) one renewable electric power generating technology of 2 
     megawatts or less located near the site of electric energy 
     use; and
       (2) fuel cell power generation suitable for use in 
     distributed power systems.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated for activities under this section--
       (1) $1,000,000 for fiscal year 2005;
       (2) $5,000,000 for fiscal year 2006;
       (3) $5,000,000 for fiscal year 2007;
       (4) $4,000,000 for fiscal year 2008;
       (5) $3,000,000 for fiscal year 2009; and
       (6) $2,000,000 for fiscal year 2010.

     SEC. 204. STATIONARY FUEL CELL GRANT DEMONSTRATION PROGRAM.

       (a) Solicitation of Proposals.--The Secretary shall solicit 
     proposals for projects demonstrating hydrogen technologies 
     needed to operate fuel cells in Federal, tribal, State, and 
     local government, and academic, and private stationary 
     applications.
       (b) Competitive Evaluation.--Each proposal submitted in 
     response to the solicitation under this section shall be 
     evaluated on a competitive basis using peer review. The 
     Secretary is not required to make an award under this section 
     in the absence of a meritorious proposal.
       (c) Preference.--The Secretary shall give preference, in 
     making an award under this section, to proposals that--
       (1) are submitted jointly from consortia including academic 
     institutions, industry, State or local governments, and 
     Federal laboratories; and
       (2) reflect proven experience and capability with 
     technologies relevant to the projects proposed.
       (d) Non-Federal Share.--
       (1) In general.--Except as provided in paragraph (2), 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.
       (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.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section--
       (1) $45,000,000 for fiscal year 2004;
       (2) $85,000,000 for fiscal year 2005;
       (3) $95,000,000 for fiscal year 2006;
       (4) $95,000,000 for fiscal year 2007;
       (5) $65,000,000 for fiscal year 2008;
       (6) $50,000,000 for fiscal year 2009; and
       (7) $15,000,000 for fiscal year 2010.

                  TITLE III--FEDERAL PURCHASE PROGRAM

     SEC. 301. PROCUREMENT OF FUEL CELL VEHICLES.

       (a) Transition Plan.--Each agency of the Federal Government 
     that maintains a fleet of motor vehicles shall develop a plan 
     for a transition of the fleet to vehicles powered by fuel 
     cell technology, including plans for necessary fueling 
     infrastructure, training, and maintenance and operation of 
     such vehicles. Each such plan shall include implementation 
     beginning no later than fiscal year 2008. Each plan shall 
     incorporate and build on the results of completed and ongoing 
     Federal demonstration programs, and shall include additional 
     demonstration programs and pilot programs as necessary to 
     test or investigate available technologies and transition 
     procedures.
       (b) Requirement.--The Secretary, in collaboration with the 
     General Services Administration and other Federal agencies, 
     shall purchase and place 20,000 hydrogen-powered fuel cell 
     vehicles by 2010 in Federal fleets and the requisite fueling 
     infrastructure.
       (c) Exceptions.--The head of an executive agency is not 
     required to procure a fuel cell vehicle under subsection (c) 
     if--
       (1) no fuel cell vehicle is available that meets the 
     requirements of the executive agency; or
       (2) it is not practicable to do so for a particular agency 
     or instance.
       (d) Procurement Planning.--The head of an executive agency 
     shall incorporate into the specifications for all designs and 
     procurements, and into the factors for the evaluation of 
     offers received for the procurement, criteria for fuel cell 
     vehicles that are consistent with vehicle purchasing 
     requirements.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section--
       (1) $10,000,000 for fiscal year 2005;
       (2) $15,000,000 for fiscal year 2006;
       (3) $50,000,000 for fiscal year 2007;
       (4) $150,000,000 for fiscal year 2008;
       (5) $175,000,000 for fiscal year 2009;
       (6) $170,000,000 for fiscal year 2010;
       (7) $110,000,000 for fiscal year 2011;
       (8) $65,000,000 for fiscal year 2012; and
       (9) $55,000,000 for fiscal year 2013.

     SEC. 302. FEDERAL STATIONARY FUEL CELL POWER PURCHASE 
                   PROGRAM.

       (a) Program.--The Secretary shall establish a program 
     within 1 year after the date of enactment of this Act for the 
     acquisition by Federal agencies of--
       (1) up to 200 megawatts of commercially available fuel cell 
     power plants;
       (2) up to 200 megawatts of power generated from 
     commercially available fuel cell power plants; or
       (3) a combination thereof, by 2006 and annually thereafter 
     for use at federally-owned or -operated facilities, Federal 
     residences, and Federal portable applications. The Secretary 
     shall provide funding for purchase, site engineering, 
     installation, startup, training, operation, and maintenance 
     costs associated with the acquisition of such power or power 
     plants, along with any other necessary assistance.
       (b) Domestic Assembly.--All fuel cell systems in power 
     plants acquired, or from which power is acquired, under 
     subsection (a) shall be assembled in the United States.
       (c) Site Selection.--In the selection of federally-owned or 
     -operated facilities as a site for the location of power 
     plants acquired under this section, or as a site to receive 
     power acquired under this section, priority shall be given to 
     sites with 1 or more of the following attributes:
       (1) Location (of the Federal facility or the generating 
     power plant) in an area classified as a nonattainment area 
     under title I of the Clean Air Act.
       (2) Computer or electronic operations that are sensitive to 
     power supply disruptions.
       (3) Need for a reliable, uninterrupted power supply.
       (4) Academic institution.
       (5) Rural or remote location, or other factors requiring 
     off-grid power generation.
       (6) Critical manufacturing or other activities that support 
     national security efforts.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section--
       (1) $5,000,000 for fiscal year 2004;
       (2) $10,000,000 for fiscal year 2005;
       (3) $15,000,000 for fiscal year 2006;
       (4) $50,000,000 for fiscal year 2007;
       (5) $75,000,000 for fiscal year 2008;
       (6) $85,000,000 for fiscal year 2009;
       (7) $75,000,000 for fiscal year 2010;
       (8) $50,000,000 for fiscal year 2011;
       (9) $25,000,000 for fiscal year 2012; and
       (10) $10,000,000 for fiscal year 2013.
       (e) Life Cycle Cost Benefit.--Any life cycle cost benefit 
     analysis undertaken by a Federal agency with respect to 
     investments in fuel cell products, services, construction, 
     and other projects shall include an analysis of 
     environmental, power reliability, and oil dependence factors.

     SEC. 303. ESTABLISHMENT OF AN INTERAGENCY TASK FORCE.

       (a) Establishment.--Not later than 120 days after the date 
     of enactment of this Act, the Secretary shall establish an 
     interagency task force led by the Secretary's designee and 
     comprised of representatives of--
       (1) the Office of Science and Technology Policy;
       (2) the Department of Transportation;
       (3) the Department of Defense;
       (4) the Department of Commerce (including the National 
     Institute of Standards and Technology);
       (5) the Environmental Protection Agency;
       (6) the National Aeronautics and Space Administration; and
       (7) other Federal agencies as appropriate.
       (b) Duties.--The task force shall develop a plan for 
     carrying out titles II and III.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as may be necessary to carry out 
     the requirements of this section.

                TITLE IV--REMOVAL OF REGULATORY BARRIERS

     SEC. 401. AMENDMENTS TO PURPA.

       (a) Adoption of Standards.--Section 113(b) of the Public 
     Utility Regulatory Policies Act of 1978 (16 U.S.C. 2623(b)) 
     is amended by adding at the end the following:
       ``(6) Distributed generation.--Each electric utility shall 
     provide distributed generation, combined heat and power, and 
     district heating and cooling systems competitive access to 
     the local distribution grid and competitive pricing of 
     service, and shall use simplified standard contracts for the 
     interconnection of generating facilities that have a power 
     production capacity of 250 kilowatts or less per unit.
       ``(7) Distribution interconnections.--No electric utility 
     may refuse to interconnect a generating facility with the 
     distribution facilities of the electric utility if the owner 
     or operator of the generating facility complies with 
     procedures adopted by the State regulatory authority and 
     agrees to pay the costs established by such State regulatory 
     authority.

[[Page S2860]]

       ``(8) Minimum fuel and technology diversity standard.--Each 
     electric utility shall develop a plan to minimize dependence 
     on 1 fuel source and to ensure that the electric energy it 
     sells to consumers is generated using a diverse range of 
     fuels and technologies, including renewable and high-
     efficiency technologies.
       ``(9) Prohibited rates and charges.--No electric utility 
     shall charge the owner or operator of an on-site generating 
     facility an additional standby, capacity, interconnection, or 
     other rate or charge.''.
       (b) Time for Adopting Standards.--Section 113 of the Public 
     Utility Regulatory Policies Act of 1978 (16 U.S.C. 2623) is 
     further amended by adding at the end the following:
       ``(d) Special Rule.--For purposes of implementing 
     paragraphs (6), (7), (8), and (9) of subsection (b), any 
     reference contained in this section to the date of enactment 
     of the Public Utility Regulatory Policies Act of 1978, shall 
     be deemed to be a reference to the date of enactment of this 
     subsection.''.

     SEC. 402. NET METERING.

       (a) Adoption of Standard.--Section 111(d) of the Public 
     Utility Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) 
     is amended by adding at the end the following:
       ``(11) Net metering.--(A) Each electric utility shall make 
     available upon request net metering service to any electric 
     consumer that the electric utility serves.
       ``(B) For purposes of implementing this paragraph, any 
     reference contained in this section to the date of enactment 
     of the Public Utility Regulatory Policies Act of 1978, shall 
     be deemed to be a reference to the date of enactment of this 
     paragraph.
       ``(C) The Commission shall implement the standards set out 
     in this section not later than 1 year after the date of 
     enactment of this paragraph. Notwithstanding subsections (b) 
     and (c) of section 112, a State may adopt alternative 
     standards or procedures regarding net metering as defined in 
     this section; provided that net metering service, pursuant to 
     standards and procedures adopted by the Commission, shall be 
     available to any electric consumer within any State 
     notwithstanding the adoption by any State of such alternative 
     standards or procedures.
       ``(D) Notwithstanding subsections (b) and (c) of section 
     112, each State regulatory authority shall consider and make 
     a determination concerning whether it is appropriate to 
     implement the standard set out in subparagraph (A) not later 
     than 1 year after the date of enactment of this paragraph.''.
       (b) Special Rules for Net Metering.--Section 115 of the 
     Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 
     2625) is amended by adding at the end the following:
       ``(i) Net Metering.--
       ``(1) Rates and charges.--An electric utility--
       ``(A) shall charge the owner or operator of an on-site 
     generating facility rates and charges that are identical to 
     those that would be charged other electric consumers of the 
     electric utility in the same rate class to which the owner or 
     operator would be assigned if there were no on-site 
     generating facility; and
       ``(B) shall not charge the owner or operator of an on-site 
     generating facility any additional standby, capacity, 
     interconnection, or other rate or charge.
       ``(2) Measurement.--An electric utility that sells electric 
     energy to the owner or operator of an on-site generating 
     facility shall measure the quantity of electric energy 
     produced by the on-site facility, using a single meter unless 
     the electric utility can establish to the State regulatory 
     authority that a single meter is not technically feasible, 
     and the quantity of electric energy consumed by the owner or 
     operator of an on-site generating facility during a billing 
     period is in accordance with normal metering practices.
       ``(3) Electric energy supplied exceeding electric energy 
     generated.--If the quantity of electric energy sold by the 
     electric utility to an on-site generating facility exceeds 
     the quantity of electric energy supplied by the on-site 
     generating facility to the electric utility during the 
     billing period, the electric utility may bill the owner or 
     operator for the net quantity of electric energy sold, in 
     accordance with normal metering practices.
       ``(4) Electric energy generated exceeding electric energy 
     supplied.--If the quantity of electric energy supplied by the 
     on-site generating facility to the electric utility exceeds 
     the quantity of electric energy sold by the electric utility 
     to the on-site generating facility during the billing 
     period--
       ``(A) the electric utility may bill the owner or operator 
     of the on-site generating facility for the appropriate 
     charges for the billing period in accordance with paragraph 
     (2); and
       ``(B) the owner or operator of the on-site generating 
     facility shall be credited for the excess kilowatt-hours 
     generated during the billing period, with the kilowatt-hour 
     credit appearing on the bill for the following billing 
     period.
       ``(5) Safety and performance standards.--An eligible on-
     site generating facility and net metering system used by an 
     electric consumer shall be interconnected provided the 
     facility meets all applicable safety, performance, 
     reliability, and interconnection standards established by the 
     National Electrical Code, the Institute of Electrical and 
     Electronics Engineers, and Underwriters Laboratories.
       ``(6) Additional control and testing requirements.--The 
     Commission, after consultation with State regulatory 
     authorities and nonregulated electric utilities and after 
     notice and opportunity for comment, may adopt, by rule, 
     additional control and testing requirements for on-site 
     generating facilities and net metering systems that the 
     Commission determines are necessary to protect public safety 
     and system reliability.
       ``(7) Definitions.--For purposes of this subsection--
       ``(A) the term `eligible on-site generating facility' 
     means--
       ``(i) a facility on the site of a residential electric 
     consumer with a maximum generating capacity of 10 kilowatts 
     or less per unit that is fueled by solar energy, wind energy, 
     or fuel cells; or
       ``(ii) a facility on the site of a commercial electric 
     consumer with a maximum generating capacity of 500 kilowatts 
     or less per unit that is fueled solely by a renewable energy 
     resource, landfill gas, or a high efficiency system;
       ``(B) the term `renewable energy resource' means solar, 
     wind, biomass, or geothermal energy;
       ``(C) the term `high efficiency system' means fuel cells or 
     combined heat and power; and
       ``(D) the term `net metering service' means service to an 
     electric consumer under which electric energy generated by 
     that electric consumer from an eligible on-site generating 
     facility and delivered to the local distribution facilities 
     may be used to offset electric energy provided by the 
     electric utility to the electric consumer during the 
     applicable billing period.''.

     SEC. 403. DEPARTMENT OF ENERGY STUDY.

       The Secretary, in consultation with other Federal agencies, 
     as appropriate, shall identify barriers to the introduction 
     of portable fuel cells, including regulatory barriers, and 
     take appropriate action to eliminate such barriers in a 
     timely fashion.

       TITLE V--TAX INCENTIVES FOR HYDROGEN FUEL CELL TECHNOLOGY

     SEC. 501. HYDROGEN FUEL CELL MOTOR VEHICLE CREDIT.

       (a) In General.--Subpart B of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 (relating to 
     foreign tax credit, etc.) is amended by adding at the end the 
     following new section:

     ``SEC. 30B. HYDROGEN FUEL CELL MOTOR VEHICLE CREDIT.

       ``(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 new qualified hydrogen 
     fuel cell motor vehicle credit determined under subsection 
     (b).
       ``(b) New Qualified Hydrogen Fuel Cell Motor Vehicle 
     Credit.--
       ``(1) In general.--For purposes of subsection (a), the new 
     qualified hydrogen fuel cell motor vehicle credit determined 
     under this subsection with respect to a new qualified 
     hydrogen 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 hydrogen 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 2000 model year city fuel 
     economy,
       ``(ii) $1,500, if such vehicle achieves at least 175 
     percent but less than 200 percent of the 2000 model year city 
     fuel economy,
       ``(iii) $2,000, if such vehicle achieves at least 200 
     percent but less than 225 percent of the 2000 model year city 
     fuel economy,
       ``(iv) $2,500, if such vehicle achieves at least 225 
     percent but less than 250 percent of the 2000 model year city 
     fuel economy,
       ``(v) $3,000, if such vehicle achieves at least 250 percent 
     but less than 275 percent of the 2000 model year city fuel 
     economy,
       ``(vi) $3,500, if such vehicle achieves at least 275 
     percent but less than 300 percent of the 2000 model year city 
     fuel economy, and
       ``(vii) $4,000, if such vehicle achieves at least 300 
     percent of the 2000 model year city fuel economy.
       ``(B) 2000 model year city fuel economy.--For purposes of 
     subparagraph (A), the 2000 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 2000 model
``If vehicle inertia                                     year city fuel
  weight class is:                                          economy 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 .

[[Page S2861]]

  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 to 8,500 lbs......................................11.1 mpg..

       ``(ii) In the case of a light truck:

                                                         The 2000 model
``If vehicle inertia                                     year city fuel
  weight class is:                                          economy 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 to 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 hydrogen fuel cell motor vehicle.--For 
     purposes of this subsection, the term `new qualified hydrogen 
     fuel cell motor vehicle' means a motor vehicle--
       ``(A) which is propelled by power derived from one 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 and may or may not require 
     reformation prior to use,
       ``(B) which, in the case of a passenger automobile or light 
     truck--
       ``(i) for 2003 model vehicles, has received a certificate 
     of conformity under the Clean Air Act and meets or exceeds 
     the equivalent qualifying California low emission vehicle 
     standard under section 243(e)(2) of the Clean Air Act for 
     that make and model year, and
       ``(ii) for 2004 and later model vehicles, has received a 
     certificate that such vehicle meets or exceeds the Bin 5 Tier 
     II emission level established in regulations prescribed by 
     the Administrator of the Environmental Protection Agency 
     under section 202(i) of the Clean Air Act for that make and 
     model year 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) 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.
       ``(d) 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) City fuel economy.--The city fuel economy with 
     respect to any vehicle shall be measured in a manner which is 
     substantially similar to the manner city fuel economy is 
     measured in accordance with procedures under part 600 of 
     subchapter Q of chapter I of title 40, Code of Federal 
     Regulations, as in effect on the date of the enactment of 
     this section.
       ``(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 
     (c)).
       ``(5) No double benefit.--The amount of any deduction or 
     other credit allowable under this chapter with respect to a 
     new qualified hydrogen fuel cell motor vehicle 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 new 
     qualified hydrogen fuel cell 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 at the time of any sale or lease the specific amount 
     of any credit otherwise allowable to the entity under this 
     section.
       ``(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 (c) for such taxable year (in 
     this paragraph referred to as the `unused credit year'), such 
     excess shall be allowed as a credit carryback for each of the 
     3 taxable years beginning after the date of the enactment of 
     this section which precede the unused credit year and a 
     credit carryforward for each of the 20 taxable years which 
     succeed the unused credit year.
       ``(B) Rules.--Rules similar to the rules of section 39 
     shall apply with respect to the credit carryback and 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.
       ``(e) 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.''.
       (b) Conforming Amendments.--
       (1) Section 1016(a) of the Internal Revenue Code of 1986 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(d)(4).''.
       (2) Section 55(c)(2) of such Code is amended by inserting 
     ``30B(c),'' after ``30(b)(3)''.
       (3) Section 6501(m) of such Code is amended by inserting 
     ``30B(d)(9),'' after ``30(d)(4),''.
       (4) The table of sections for subpart B of part IV of 
     subchapter A of chapter 1 of such Code is amended by 
     inserting after the item relating to section 30A the 
     following new item:

``Sec. 30B. Hydrogen fuel cell motor vehicle credit.''.

       (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. 502. CREDIT FOR INSTALLATION OF HYDROGEN FUEL CELL MOTOR 
                   VEHICLE FUELING STATIONS.

       (a) In General.--Subpart B of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 (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 CELL MOTOR 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 cell motor vehicle refueling 
     property.
       ``(b) Limitation.--The credit allowed under subsection 
     (a)--

[[Page S2862]]

       ``(1) with respect to any retail hydrogen fuel cell motor 
     vehicle refueling property, shall not exceed $30,000, and
       ``(2) with respect to any residential hydrogen fuel cell 
     motor vehicle refueling property, shall not exceed $1,500.
       ``(c) Year Credit Allowed.--The credit allowed under 
     subsection (a) shall be allowed in the taxable year in which 
     the qualified hydrogen fuel cell motor vehicle refueling 
     property is placed in service by the taxpayer.
       ``(d) Definitions.--For purposes of this section--
       ``(1) Qualified hydrogen fuel cell motor vehicle refueling 
     property.--The term `qualified hydrogen fuel cell motor 
     vehicle refueling property' means any property (not including 
     a building and its structural components) if--
       ``(A) such property is of a character subject to the 
     allowance for depreciation,
       ``(B) the original use of such property begins with the 
     taxpayer, and
       ``(C) such property is for the storage or dispensing of 
     hydrogen fuel into the fuel tank of a motor vehicle propelled 
     by such fuel, but only if the storage or dispensing of the 
     fuel is at the point where such fuel is delivered into the 
     fuel tank of the motor vehicle.
     In the case of hydrogen produced from another clean-burning 
     fuel (as defined in section 179A(c)(1)), subparagraph (C) 
     shall be applied by substituting `production, storage, or 
     dispensing' for `storage or dispensing' both places it 
     appears.
       ``(2) Residential hydrogen fuel cell motor vehicle 
     refueling property.--The term `residential hydrogen fuel cell 
     motor vehicle refueling property' means qualified hydrogen 
     fuel cell motor 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 cell motor vehicle refueling 
     property.--The term `retail hydrogen fuel cell motor vehicle 
     refueling property' means qualified hydrogen fuel cell motor 
     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 cell motor 
     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 
     cell motor 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.
       ``(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.''.
       (b) Incentive for Production of Hydrogen at Qualified 
     Clean-Fuel Vehicle Refueling Property.--Section 179A(d) of 
     the Internal Revenue Code of 1986 (defining qualified clean-
     fuel vehicle refueling property) is amended by adding at the 
     end the following new flush sentence:
     ``In the case of clean-burning fuel which is hydrogen 
     produced from another clean-burning fuel, paragraph (3)(A) 
     shall be applied by substituting `production, storage, or 
     dispensing' for `storage or dispensing' both places it 
     appears.''.
       (c) Modifications to Extension of Deduction for Hydrogen 
     Refueling Property.--
       (1) In general.--Section 179A(f) of the Internal Revenue 
     Code of 1986 (relating to termination) is amended by 
     inserting ``(other than property relating to hydrogen)'' 
     after ``property''.
       (2) Nonapplication of phaseout.--Section 179A(b)(1)(B) of 
     such Code (relating to phaseout) is amended by inserting 
     ``(other than property relating to hydrogen)'' after 
     ``property''.
       (d) Conforming Amendments.--
       (1) Section 1016(a) of the Internal Revenue Code of 1986, 
     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) of such Code, 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 of such Code, as amended by this 
     Act, is amended by inserting after the item relating to 
     section 30B the following new item:

``Sec. 30C. Hydrogen fuel cell motor vehicle refueling property 
              credit.''.

       (e) 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. 503. CREDIT FOR RESIDENTIAL FUEL CELL PROPERTY.

       (a) In General.--Subpart A of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 (relating to 
     nonrefundable personal credits) is amended by inserting after 
     section 25B the following new section:

     ``SEC. 25C. RESIDENTIAL FUEL CELL PROPERTY.

       ``(a) Allowance of Credit.--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 30 
     percent of the qualified fuel cell property expenditures made 
     by the taxpayer during such year.
       ``(b) Limitations.--
       ``(1) Maximum credit.--The credit allowed under subsection 
     (a) shall not exceed $1,000 for each kilowatt of capacity.
       ``(2) Safety certifications.--No credit shall be allowed 
     under this section for an item of property unless such 
     property meets appropriate fire and electric code 
     requirements.
       ``(c) Carryforward of Unused Credit.--If the credit 
     allowable under subsection (a) exceeds the limitation imposed 
     by section 26(a) for such taxable year reduced by the sum of 
     the credits allowable under this subpart (other than this 
     section), such excess shall be carried to the succeeding 
     taxable year and added to the credit allowable under 
     subsection (a) for such succeeding taxable year.
       ``(d) Definitions.--For purposes of this section--
       ``(1) Qualified fuel cell property expenditure.--The term 
     `qualified fuel cell property expenditure' means an 
     expenditure for qualified fuel cell property (as defined in 
     section 48(a)(4)) installed on or in connection with a 
     dwelling unit located in the United States and used as a 
     residence by the taxpayer, including all necessary 
     installation fees and charges.
       ``(2) Labor costs.--Expenditures for labor costs properly 
     allocable to the onsite preparation, assembly, or original 
     installation of such property and for piping or wiring to 
     interconnect such property to the dwelling unit shall be 
     taken into account for purposes of this section.
       ``(e) 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 the individual's 
     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.

[[Page S2863]]

       ``(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 expenditures made 
     by any individual with respect to any dwelling unit, there 
     shall not be taken in to account expenditures which are made 
     from subsidized energy financing (as defined in section 
     48(a)(5)(C)).
       ``(f) 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.''.
       (b) Credit Allowed Against Regular Tax and Alternative 
     Minimum Tax.--
       (1) In general.--Section 25C(b) of the Internal Revenue 
     Code of 1986, as added by subsection (a), is amended by 
     adding at the end the following new paragraph:
       ``(3) Limitation based on amount of tax.--The credit 
     allowed under subsection (a) for the taxable year shall not 
     exceed the excess of--
       ``(A) the sum of the regular tax liability (as defined in 
     section 26(b)) plus the tax imposed by section 55, over
       ``(B) the sum of the credits allowable under this subpart 
     (other than this section) and section 27 for the taxable 
     year.''.
       (2) Conforming amendments.--
       (A) Section 25C(c) of such Code, 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 inserting 
     ``subsection (b)(3)''.
       (B) Section 23(b)(4)(B) of such Code is amended by 
     inserting ``and section 25C'' after ``this section''.
       (C) Section 24(b)(3)(B) of such Code is amended by striking 
     ``23 and 25B'' and inserting ``23, 25B, and 25C''.
       (D) Section 25(e)(1)(C) of such Code is amended by 
     inserting ``25C,'' after ``25B,''.
       (E) Section 25B(g)(2) of such Code is amended by striking 
     ``section 23'' and inserting ``sections 23 and 25C''.
       (F) Section 26(a)(1) of such Code is amended by striking 
     ``and 25B'' and inserting ``25B, and 25C''.
       (G) Section 904(h) of such Code is amended by striking 
     ``and 25B'' and inserting ``25B, and 25C''.
       (H) Section 1400C(d) of such Code is amended by striking 
     ``and 25B'' and inserting ``25B, and 25C''.
       (c) Additional Conforming Amendments.--
       (1) Section 23(c) of the Internal Revenue Code of 1986, as 
     in effect for taxable years beginning before January 1, 2004, 
     is amended by striking ``section 1400C'' and inserting 
     ``sections 25C and 1400C''.
       (2) Section 25(e)(1)(C) of such Code, as in effect for 
     taxable years beginning before January 1, 2004, is amended by 
     inserting ``, 25C,'' after ``sections 23''.
       (3) Subsection (a) of section 1016 of such Code, 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.''.
       (4) Section 1400C(d) of such Code, as in effect for taxable 
     years beginning before January 1, 2004, is amended by 
     inserting ``and section 25C'' after ``this section''.
       (5) The table of sections for subpart A of part IV of 
     subchapter A of chapter 1 of such Code is amended by 
     inserting after the item relating to section 25B the 
     following new item:

``Sec. 25C. Residential fuel cell property.''.

       (d) Effective Dates.--
       (1) In general.--Except as provided by paragraph (2), the 
     amendments made by this section shall apply to expenditures 
     after the date of the enactment of this Act, in taxable years 
     ending after such date.
       (2) Subsection (b).--The amendments made by subsection (b) 
     shall apply to taxable years beginning after December 31, 
     2003.

     SEC. 504. CREDIT FOR BUSINESS INSTALLATION OF QUALIFIED FUEL 
                   CELLS.

       (a) In General.--Subparagraph (A) of section 48(a)(3) of 
     the Internal Revenue Code of 1986 (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) qualified fuel cell property,''.
       (b) Qualified Fuel Cell 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) Qualified fuel cell property.--For purposes of this 
     subsection--
       ``(A) In general.--The term `qualified fuel cell property' 
     means a fuel cell power plant that--
       ``(i) generates electricity using an electrochemical 
     process, and
       ``(ii) has an electricity-only generation efficiency 
     greater than 30 percent at rated power.
       ``(B) Limitation.--In the case of qualified fuel cell 
     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 of the basis of such property, including 
     all necessary installation fees and charges, or
       ``(ii) $1,000 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.''.
       (c) Limitation.--Section 48(a)(2)(A) of the Internal 
     Revenue Code of 1986 (relating to energy percentage) is 
     amended to read as follows:
       ``(A) In general.--The energy percentage is--
       ``(i) in the case of qualified fuel cell property, 30 
     percent, and
       ``(ii) in the case of any other energy property, 10 
     percent.''.
       (d) Conforming Amendment.--Section 29(b)(3)(A)(i)(III) of 
     the Internal Revenue Code of 1986 is amended by striking 
     ``section 48(a)(4)(C)'' and inserting ``section 
     48(a)(5)(C)''.
       (e) Effective Date.--The amendments made by this subsection 
     shall apply to property placed in service after the date of 
     the enactment of this Act, 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).

                    TITLE VI--EDUCATION AND OUTREACH

     SEC. 601. EDUCATION AND OUTREACH.

       (a) Requirements.--The Secretary shall work with other 
     Federal, State, and local agencies, and academic institutions 
     and organizations to develop a public outreach and awareness 
     program.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary to carry out this title 
     $7,000,000 for fiscal year 2004 and each fiscal year 
     thereafter through fiscal year 2013.

                   TITLE VII--TARGETS AND TIMETABLES

     SEC. 701. DEPARTMENT OF ENERGY STRATEGY.

       (a) Critical Technology Plan.--Not later than 1 year after 
     the date of enactment of this Act, the Secretary shall 
     publish and transmit to Congress a plan identifying critical 
     technologies, enabling strategies and applications, technical 
     targets, and associated timeframes that support the 
     commercialization of hydrogen-fueled fuel cell vehicles.
       (b) Contents.--The plan shall describe the activities of 
     the Department of Energy, including a research, development, 
     demonstration, and commercial application program for 
     developing technologies to support--
       (1) the production and deployment of 100,000 hydrogen-
     fueled fuel cell vehicles in the United States by 2010 and 
     2,500,000 of such vehicles by 2020 and annually thereafter; 
     and
       (2) the integration of hydrogen activities, with associated 
     technical targets and timetables for the development of 
     technologies to provide for the sale of hydrogen at fueling 
     stations in the United States by 2010 and 2020, respectively.
       (c) Progress Review.--The Secretary shall include in each 
     annual budget submission a review of the progress toward 
     meeting the numerical targets in subsection (b).
                                 ______