[Congressional Record Volume 151, Number 33 (Thursday, March 17, 2005)]
[Senate]
[Pages S3032-S3037]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DORGAN (for himself, Mr. Graham, and Mr. Akaka):
  S. 665. A bil. to reauthorize and improve the Spark M. Matsunaga 
Hydrogen Research, Development, and Demonstration Act of 1990 to 
establish a program to commercialize hydrogen and fuel cell technology, 
and for other purposes; to the Committee on Energy and Natural 
Resources.

  Mr. DORGAN. Mr. President, I rise today to introduce a piece of 
legislation, along with Mr. Graham, that I believe is needed to solve 
our long-term energy need. It is imperative that our Nation implements 
a roadmap to achieving our goal of creating a hydrogen fuel-cell 
economy. I believe this measure is the best way to diversify our energy 
portfolio and protect our national security interests.
  This legislation would invest $7.9 billion over 10 years in hydrogen 
fuel cell research and deployment. Additionally, the measure would 
change the current direction of the hydrogen program, allowing each 
program related to developing hydrogen to build off of each other. 
Similar to what has been recommended by the National Academies, it 
realizes a more conscious systems approach to program design.
  You see, currently the hydrogen program is like a series of small 
block grants. We send money to the Department of Energy, DOE, and 
simply tell them to come up with a program. Under this scenario, with 
little accountability or direction, the program has not moved as 
swiftly as we would like.
  Changing the structure of the hydrogen program will ensure that the 
long-term goal is reached and the benefits are reaped. What this 
legislation does is compartmentalize each program at DoE related to 
hydrogen development. Instead of sending a chunk of money, the funds 
will now be targeted to programs that will be the foundation for 
building and commercializing a hydrogen fuel-cell economy.
  Additionally, this measure uses the successful ``learning 
demonstration'' technique of building institutional relationships among 
key industries and with the Government that has strong support from 
both the fuels industry and the auto sector, and applies this as a 
program design to all large scale systems demonstrations. These 
demonstrations are then linked to refining the R&D tasks again after 
the demonstrations complete their early phases, so that concrete 
learning is integrated directly into a final round of more focused R&D.
  This bill enables a more strategic approach to program planning in 
the formation of a hydrogen economy. It also includes more interaction 
between R&D and demonstrations--with emphasis on development--that is 
the key to accelerating commercialization and movement to market.
  This measure does not reinvent the wheel. Instead, it takes what we 
have learned thus far and focuses our efforts for the future. Providing 
developmental targets and accountability will also allow us to adjust 
our priorities appropriately.
  Introduction of this measure could not come at a more critical time. 
Today, oil prices are at an all time high of $57.00 a barrel. This 
increase has directly hit consumers where it hurts most--in their 
wallets. Today in the State of North Dakota, consumers will spend 
$330,000 more for gasoline than they did this time last year. This is 
nothing more than an additional tax on hard working families who have 
to drive around during the course of their daily lives. It is no longer 
a question of whether you can afford to sign your children up for extra 
curricular activities like baseball or ballet; it is now a question of 
whether you can afford to even take them to these activities.
  It shouldn't be this way, especially in America. However, we continue 
to be beholden to the same generational argument: Where can we dig and 
drill next? We need to jump over this debate and I believe this measure 
does that.
  Let me describe why I think we ought to do this and why focusing our 
attention and resources is important. I will harken back to the Apollo 
program. On May 25, 1961, President John F. Kennedy announced our 
Nation was establishing a goal of sending a man to the Moon and having 
a safe return by the end of the decade.
  The Apollo project was an enormous undertaking. The NASA annual 
budget increased from $500 million in 1960 to $5.2 billion in 1965. It 
represented 5.3 percent of the Federal budget in 1965. Think about 
that. In today's terms, that would be over $115 billion. NASA engaged 
private industry, university research, and academia in a massive way 
and contractor employees increased by a factor of 10, to 376,000 
people, in 1965.
  When President Kennedy said in 1961 it was his vision to have a man 
walk on the Moon by the end of the decade, there was no technological 
capability to do so at that moment and no guarantee it could even be 
done. During the height of the cold war, the Soviets had an advantage 
in space flight and that advantage was of great concern to us. They had 
put up a satellite called Sputnik and the technological barriers facing 
the U.S. in catching up were very significant. The expense and resolve 
were daunting, but yet, on July 20, 1969, Neil Armstrong and Buzz 
Aldrin stood on the surface of the Moon and pantomimed a golf game. In 
a single decade, the President and the country set and reached an 
unthinkable goal.
  Now let's talk about another goal, another big idea, one that we 
ought to establish now for this country and for its future. That is the 
goal of deciding, as President Bush has suggested, that we move toward 
a hydrogen economy and fuel-cells for our vehicles. I will describe why 
I think this is important.
  America's energy security is threatened by our dependence on foreign 
oil. Oil prices are at record highs and America now imports 62 percent 
of the oil it consumes. Our import level is expected to grow to 68 
percent by 2025. Nearly all of our cars and trucks run on gasoline, and 
they are the main reason America imports so much oil. Two-thirds of the 
oil Americans use each day is used for transportation; fuel-cell 
vehicles offer the best hope of dramatically reducing our long-term 
dependence on foreign oil and protecting our national security 
interests.
  The American economy is and will be held hostage by our ability to 
find and import oil from outside of our country's borders. Should this 
cause all of us great concern? Yes. This is a very serious problem. If 
we wake up tomorrow morning, God forbid, and terrorists have 
interrupted the supply of oil to this country--and, yes, that could 
happen--this country's economy will be flat on its back. It will be 
flat on its back because we rely on oil from sources outside this 
country, much of it from very troubled parts of the world. And our 
dependence is only expected to increase.
  Whenever we discuss oil, the debate centers around two issues--
drilling in ANWR and CAFE standards. If it is only those two issues, we 
lose. We need to move beyond these issues. Yes, we can address them, 
but it seems to me if these are our only options, every few years we 
will debate exactly the same issues: Where do we drill next? and, How 
much more efficient can we make a carburetor, through which we run 
gasoline?
  If our energy strategy for this country's future is simply digging 
and drilling, then it is a strategy I call `yesterday forever,' which 
means it doesn't really change very much. Every few years we can debate 
the issue of how dependent we are on oil imports and how dangerous it 
is for us. I think we should have a different debate, one that breaks 
our normal cycle.
  That does not mean we should not dig and drill. We will, we can, and 
we should. We will always use fossil fuels. But these resources must be 
used in a sustainable and efficient manner. We will continue to dig and 
drill, but that cannot be all we do. If it is, we really

[[Page S3033]]

have not moved the ball forward at all. So what else can we do? I 
believe we should chart a different course.
  First of all, using fuel-cells and hydrogen is twice as efficient in 
getting power to a wheel as using the internal combustion engine. 
Second, when we use hydrogen fuel-cells in automobiles or vehicles, we 
are sending water vapor out the tailpipe. What a wonderful thing for 
our environment and our economy. We double the efficiency of the energy 
source, while at the same time eliminating the pollution out of the 
tailpipe. That makes great sense to me.
  In the past I have introduced legislation saying let's move to a 
different kind of technology, a different kind of energy economy; let's 
move to a hydrogen economy using fuel-cells. This bill is different 
from my previous bills because it would not only authorize higher 
funding levels, but just as importantly, it would change the way the 
program works.
  My point is simple. We need accountability and targets and timetables 
in all the programs developing hydrogen. While this measure 
specifically states that we should set a target of 100,000 vehicles on 
the road by 2010 and 2.5 million by 2020, it also includes 
developmental milestones within each program, essentially giving us a 
roadmap of where we need to go and how to get there. If we do not set 
this out, we will not get there. If we do not have the same resolve 
towards establishing a hydrogen fuel-cell economy as President Kennedy 
had in putting a man on the Moon then we are not going to get there. 
Not without the focus and commitment needed.
  Are there issues that need to be resolved? Sure there are, but we 
will never resolve them unless we implement a plan to do so. That is 
why I feel this legislation is the best approach. We focus on what is 
needed, while building on what we have. Instead of having two or more 
projects moving in different directions, with no connection, we set out 
a more focused approach where we can see exactly the progress we are 
making.
  This commitment is what is needed and this direction is supported 
throughout the hydrogen industry. We cannot let this opportunity pass 
us by. If we sit and do nothing when the price of oil is at its 
highest, then I fear we will never do anything. This type of commitment 
and resolve is needed for our economic future, as well as to ensure our 
national security interests.
  If we start now, I have no doubt that hydrogen fueled vehicles will 
be to our grandchildren what gasoline was to our grandparents.
  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. 665

       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 Technology Act of 2005''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Hydrogen and fuel cell technology authorization.
Sec. 3. Public utilities.
Sec. 4. Tax incentives to build the hydrogen economy.

     SEC. 2. HYDROGEN AND FUEL CELL TECHNOLOGY AUTHORIZATION.

       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. Definitions.
``Sec. 3. Findings.
``Sec. 4. Purposes.

                   ``TITLE I--HYDROGEN AND FUEL CELLS

``Sec. 101. Hydrogen and fuel cell technology research and development.
``Sec. 102. Task Force.
``Sec. 103. Technology transfer.
``Sec. 104. Authorization of appropriations.

            ``TITLE II--HYDROGEN AND FUEL CELL DEMONSTRATION

``Sec. 201. Hydrogen supply and fuel cell demonstration program.
``Sec. 202. Authorization of appropriations.

                   ``TITLE III--TRANSITION TO MARKET

``Sec. 301. Federal procurement of fuel cell vehicles and hydrogen 
              energy systems.
``Sec. 302. Federal procurement of stationary and micro fuel cells.

                   ``TITLE IV--REGULATORY MANAGEMENT

``Sec. 401. Codes and standards.
``Sec. 402. Authorization of appropriations.

                           ``TITLE V--REPORTS

``Sec. 501. Deployment of hydrogen technology.
``Sec. 502. Authorization of appropriations.

                  ``TITLE VI--TERMINATION OF AUTHORITY

``Sec. 601. Termination of authority.

     ``SEC. 2. DEFINITIONS.

       ``In this Act:
       ``(1) Carbon footprint.--The term `carbon footprint' means 
     the sum of carbon equivalent emissions from all energy 
     conversion processes occurring from raw material through 
     hydrogen production, distribution, and use.
       ``(2) Department.--The term `Department' means the 
     Department of Energy.
       ``(3) Fuel cell.--The term `fuel cell' means a device that 
     directly converts the chemical energy of a fuel and an 
     oxidant into electricity by electrochemical processes 
     occurring at separate electrodes in the device.
       ``(4) Infrastructure.--The term `infrastructure' means the 
     equipment, systems, or facilities used to produce, 
     distribute, deliver, or store hydrogen (except for onboard 
     storage).
       ``(5) Secretary.--The term `Secretary' means the Secretary 
     of Energy.
       ``(6) Stationary; portable.--The terms `stationary' and 
     `portable', when used in reference to a fuel cell, include--
       ``(A) continuous electric power; and
       ``(B) backup electric power.
       ``(7) Task force.--The term `Task Force' means the Hydrogen 
     and Fuel Cell Technical Task Force established under section 
     102(a).
       ``(8) Technical advisory committee.--The term `Technical 
     Advisory Committee' means the independent Technical Advisory 
     Committee of the Task Force selected under section 102(d).

     ``SEC. 3. FINDINGS.

       ``Congress finds that--
       ``(1) the United States imports 60 percent of all the oil 
     and products that it consumes, most of it used in 
     transportation;
       ``(2) there is little fuel diversity in the transportation 
     sector of the United States, making it extremely sensitive to 
     volatile oil supplies;
       ``(3) rapidly rising energy prices have raised the imported 
     oil bill of the United States to nearly $250,000,000,000 in 
     2004, which is a direct offshore wealth transfer from the 
     U.S. that could otherwise be invested in a hydrogen economy 
     to create many new jobs;
       ``(4) although the United States has become a more 
     efficient and cleaner user of energy, total energy use 
     continues to grow as the economy expands, along with total 
     vehicle emissions;
       ``(5) without dramatic action, 68 percent of oil demand 
     will come from imports by 2025;
       ``(6) over the next 10 years, oil imports could cost nearly 
     $3,000,000,000,000, while protecting foreign supplies adds 
     even more to that cost;
       ``(7) hydrogen and fuel cells offer the best hope of 
     realizing more efficient, cleaner means of regaining control 
     of the energy security of the United States, and achieving 
     quality economic growth;
       ``(8) in the spirit of the Apollo project that put us on 
     the Moon, and the practical vision that built the United 
     States interstate highway system, the U.S. needs to commit 
     sufficient public investment to develop and commercialize 
     hydrogen and fuel cell technologies, in partnership with our 
     private sector; and
       ``(9) economies must grow to sustain their health, and 
     strong public investments in research and development will 
     harness the skills of our universities, national 
     laboratories, and innovative private industry to create the 
     hydrogen economy.

     ``SEC. 4. PURPOSES.

       ``The purposes of this Act are--
       ``(1) to enable and promote comprehensive development, 
     demonstration, and commercialization of hydrogen and fuel 
     cell technology in partnership with industry;
       ``(2) to make critical public investments in building 
     strong links to private industry, universities, national 
     laboratories, and research institutions to expand innovation 
     and industrial growth;
       ``(3) to build a mature hydrogen economy that creates fuel 
     diversity in the massive transportation sector of the United 
     States;
       ``(4) to sharply decrease the dependency of the United 
     States on imported oil, eliminate most emissions from the 
     transportation sector, and greatly enhance our energy 
     security; and
       ``(5) to create, strengthen, and protect a sustainable 
     national energy economy.

[[Page S3034]]

                   ``TITLE I--HYDROGEN AND FUEL CELLS

     ``SEC. 101. HYDROGEN AND FUEL CELL TECHNOLOGY RESEARCH AND 
                   DEVELOPMENT.

       ``(a) In General.--The Secretary, in consultation with 
     other Federal agencies and the private sector, shall conduct 
     a research and development program on technologies relating 
     to the production, purification, distribution, storage, and 
     use of hydrogen energy, fuel cells, and related 
     infrastructure.
       ``(b) Goal.--The goal of the program shall be to 
     demonstrate and commercialize the use of hydrogen for 
     transportation (in light and heavy vehicles), utility, 
     industrial, commercial, residential, and defense 
     applications.
       ``(c) Focus.--In carrying out activities under this 
     section, the Secretary shall focus on mutually supportive 
     developmental factors that are common to the development of 
     hydrogen infrastructure and the supply of vehicle and 
     electric power for critical consumer and commercial 
     applications, and that achieve continuous technical evolution 
     and cost reduction, particularly for hydrogen production, the 
     supply of hydrogen, storage of hydrogen, and end uses of 
     hydrogen that--
       ``(1) steadily increase production, distribution, and end 
     use efficiency and reduce carbon footprints;
       ``(2) resolve critical problems relating to catalysts, 
     membranes, storage, lightweight materials, electronic 
     controls, and other problems that emerge from research and 
     development;
       ``(3) enhance sources of renewable fuels and biofuels for 
     hydrogen production; and
       ``(4) enable widespread use of distributed electricity 
     generation and storage.
       ``(d) Public Education and Research.--In carrying out this 
     section, the Secretary shall support enhanced public 
     education and university research in fundamental sciences, 
     application design, and systems concepts (including education 
     and research relating to materials, subsystems, 
     manufacturability, maintenance, and safety) relating to 
     hydrogen and fuel cells.
       ``(e) Funding.--
       ``(1) In general.--The Secretary shall carry out the 
     activities under this section through a competitive, merit-
     based review process consistent with any generally applicable 
     Federal law (including regulations) that applies to an award 
     of financial assistance, a contract, or another agreement.
       ``(2) Research centers.--The Secretary may provide funds to 
     a university-based or Federal laboratory or research center 
     in accordance with paragraph (1) to carry out an activity 
     under this section.
       ``(f) Cost Sharing.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     Federal share of the cost of carrying out any project or 
     activity under this section shall be 80 percent.
       ``(2) Waiver of non-federal share.--The Secretary may waive 
     the non-Federal share of the cost of carrying out a project 
     or activity under this section if the non-Federal share would 
     otherwise be paid by a small business or an institution of 
     higher education (as defined in section 102 of the Higher 
     Education Act of 1965 (20 U.S.C. 1002)), as determined by the 
     Secretary.

     ``SEC. 102. TASK FORCE.

       ``(a) Establishment.--The Secretary, in cooperation with 
     the Secretary of Defense, the Secretary of Transportation, 
     and the Secretary of Commerce, shall establish an interagency 
     Task Force, to be known as the `Hydrogen and Fuel Cell 
     Technical Task Force' to advise the Secretary in carrying out 
     programs under this Act.
       ``(b) Membership.--
       ``(1) In general.--The Task Force shall be comprised of 
     such representatives of the Council on Environmental Quality, 
     the Office of Science and Technology Policy, the Council of 
     Economic Advisors, the Environmental Protection Agency, and 
     the National Security Council, and such other representatives 
     of Federal agencies, conferences of governors, and regional 
     organizations, as the Secretary, Secretary of Defense, 
     Secretary of Transportation, and Secretary of Commerce 
     determine to be appropriate.
       ``(2) Voting.--A member of the Task Force that does not 
     represent a Federal agency shall serve on the Task Force only 
     in a nonvoting, advisory capacity.
       ``(c) Duties.--The Task Force shall review and make any 
     necessary recommendations to the Secretary on implementation 
     and conduct of programs under this Act.
       ``(d) Technical Advisory Committee.--
       ``(1) In general.--The Secretary shall select such number 
     of members as the Secretary considers to be appropriate to 
     form an independent, nonpolitical Technical Advisory 
     Committee.
       ``(2) Membership.--
       ``(A) In general.--Each member of the Technical Advisory 
     Committee shall have scientific, technical, or industrial 
     expertise, as determined by the Secretary.
       ``(B) National laboratories.--At least 1 member of the 
     Technical Advisory Committee shall represent a national 
     laboratory.
       ``(3) Duties.--The Technical Advisory Committee shall 
     provide technical advice and assistance to the Task Force and 
     the Secretary.

     ``SEC. 103. TECHNOLOGY TRANSFER.

       ``In carrying out this Act, the Secretary shall carry out 
     programs that--
       ``(1) provide for the transfer of critical hydrogen and 
     fuel cell technologies to the private sector;
       ``(2) accelerate wider application of those technologies in 
     the global market;
       ``(3) foster the exchange of generic, nonproprietary 
     information; and
       ``(4) assess technical and commercial viability of 
     technologies relating to the production, distribution, 
     storage, and use of hydrogen energy and fuel cells.

     ``SEC. 104. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) Hydrogen Supply.--There are authorized to be 
     appropriated to carry out projects and activities relating to 
     hydrogen production, storage, distribution and dispensing, 
     transport, education and coordination, and technology 
     transfer under this title--
       ``(1) $200,000,000 for fiscal year 2006;
       ``(2) $210,000,000 for fiscal year 2007;
       ``(3) $220,000,000 for fiscal year 2008;
       ``(4) $230,000,000 for fiscal year 2009;
       ``(5) $250,000,000 for fiscal year 2010;
       ``(6) $240,000,000 for fiscal year 2011;
       ``(7) $230,000,000 for fiscal year 2012;
       ``(8) $220,000,000 for fiscal year 2013;
       ``(9) $180,000,000 for fiscal year 2014; and
       ``(10) $120,000,000 for fiscal year 2015.
       ``(b) Fuel Cell Technologies.--There are authorized to be 
     appropriated to carry out projects and activities relating to 
     fuel cell technologies under this title--
       ``(1) $160,000,000 for fiscal year 2006;
       ``(2) $170,000,000 for fiscal year 2007;
       ``(3) $180,000,000 for fiscal year 2008;
       ``(4) $200,000,000 for fiscal year 2009;
       ``(5) $210,000,000 for fiscal year 2010;
       ``(6) $200,000,000 for fiscal year 2011;
       ``(7) $190,000,000 for fiscal year 2012;
       ``(8) $170,000,000 for fiscal year 2013;
       ``(9) $150,000,000 for fiscal year 2014; and
       ``(10) $100,000,000 for fiscal year 2015.

            ``TITLE II--HYDROGEN AND FUEL CELL DEMONSTRATION

     ``SEC. 201. HYDROGEN SUPPLY AND FUEL CELL DEMONSTRATION 
                   PROGRAM.

       ``(a) In General.--The Secretary, in consultation with the 
     Task Force and the Technical Advisory Committee, shall carry 
     out a program to demonstrate developmental hydrogen and fuel 
     cell systems for mobile, portable, and stationary uses, using 
     improved versions of the learning demonstrations program 
     concept of the Department, including demonstrations 
     involving--
       ``(1) light duty vehicles;
       ``(2) fleet delivery vans;
       ``(3) heavier duty vehicles;
       ``(4) specialty industrial and farm vehicles; and
       ``(5) commercial and residential portable, continuous, and 
     backup electric power generation.
       ``(b) Other Demonstration Programs.--To develop widespread 
     hydrogen supply and use options, and assist evolution of 
     technology, the Secretary shall--
       ``(1) carry out demonstrations of evolving hydrogen and 
     fuel cell technologies in national parks, remote island 
     areas, and on Indian tribal land, as selected by the 
     Secretary;
       ``(2) in accordance with any code or standards developed in 
     a region, fund prototype, pilot fleet, and infrastructure 
     regional hydrogen supply corridors along the interstate 
     highway system in varied climates across the United States; 
     and
       ``(3) fund demonstration programs that explore the use of 
     hydrogen blends, hybrid hydrogen, and hydrogen reformed from 
     renewable agricultural fuels, including the use of hydrogen 
     in hybrid electric, heavier duty, and advanced internal 
     combustion-powered vehicles.
       ``(c) System Demonstrations.--
       ``(1) In general.--As a component of the demonstration 
     program under this section, the Secretary shall provide 
     grants, on a cost share basis as appropriate, to eligible 
     entities (as determined by the Secretary) for use in--
       ``(A) devising system design concepts that provide for the 
     use of advanced composite vehicles in programs under title 
     III that--
       ``(i) have as a primary goal the reduction of drive energy 
     requirements;
       ``(ii) after 2010, add another research and development 
     phase to the vehicle and infrastructure partnerships 
     developed under the learning demonstrations program concept 
     of the Department; and
       ``(iii) are managed through an enhanced FreedomCAR program 
     within the Department that encourages involvement in cost-
     shared projects by domestic and international manufacturers 
     and governments; and
       ``(B) designing a local distributed energy system that--
       ``(i) incorporates renewable hydrogen production, off-grid 
     electricity production, and fleet applications in industrial 
     or commercial service;
       ``(ii) integrates energy or applications described in 
     clause (i), such as stationary, portable, micro, and mobile 
     fuel cells, into a high-density commercial or residential 
     building complex or agricultural community; and
       ``(iii) is managed in cooperation with industry, State, 
     tribal, and local governments, agricultural organizations, 
     and nonprofit generators and distributors of electricity.
       ``(2) Cost sharing.--The Federal share of the cost of a 
     project or activity carried out using funds from a grant 
     under paragraph (1) shall not exceed 50% percent, as 
     determined by the Secretary.
       ``(d) Identification of New Research and Development 
     Requirements.--In carrying out the demonstrations under 
     subsection (a), the Secretary, in consultation with the Task 
     Force and the Technical Advisory Committee, shall--

[[Page S3035]]

       ``(1) after 2008 for stationary and portable applications, 
     and after 2010 for vehicles, identify new research and 
     development requirements that refine technological concepts, 
     planning, and applications; and
       ``(2) during the second phase of the learning 
     demonstrations under subsection (c)(1)(A)(ii), redesign 
     subsequent research and development to incorporate those 
     requirements.

     ``SEC. 202. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     title--
       ``(1) $185,000,000 for fiscal year 2006;
       ``(2) $200,000,000 for fiscal year 2007;
       ``(3) $300,000,000 for fiscal year 2008;
       ``(4) $350,000,000 for fiscal year 2009;
       ``(5) $425,000,000 for fiscal year 2010;
       ``(6) $335,000,000 for fiscal year 2011;
       ``(7) $310,000,000 for fiscal year 2012;
       ``(8) $270,000,000 for fiscal year 2013;
       ``(9) $200,000,000 for fiscal year 2014; and
       ``(10) $100,000,000 for fiscal year 2015.

                   ``TITLE III--TRANSITION TO MARKET

     ``SEC. 301. FEDERAL PROCUREMENT OF FUEL CELL VEHICLES AND 
                   HYDROGEN ENERGY SYSTEMS.

       ``(a) Purposes.--The purposes of this section are--
       ``(1) to stimulate acceptance by the market of fuel cell 
     vehicles and hydrogen energy systems;
       ``(2) to support development of technologies relating to 
     fuel cell vehicles, public refueling stations, and hydrogen 
     energy systems; and
       ``(3) to require the Federal government, which is the 
     largest single user of energy in the United States, to adopt 
     those technologies as soon as practicable after the 
     technologies are developed, in conjunction with private 
     industry partners.
       ``(b) Federal Leases and Purchases.--
       ``(1) Requirement.--
       ``(A) In general.--Not later than January 1, 2010, the head 
     of any Federal agency that uses a light-duty or heavy-duty 
     vehicle fleet shall lease or purchase fuel cell vehicles and 
     hydrogen energy systems to meet any applicable energy savings 
     goal described in subsection (c).
       ``(B) Learning demonstration vehicles.--The Secretary may 
     lease or purchase appropriate vehicles developed under the 
     learning demonstrations program concept of the Department 
     under title II to meet the requirement in subparagraph (A).
       ``(2) Costs of leases and purchases.--
       ``(A) In general.--The Secretary, in cooperation with the 
     Task Force and the Technical Advisory Committee, shall pay to 
     Federal agencies (or share the cost under interagency 
     agreements) the difference in cost between--
       ``(i) the cost to the agencies of leasing or purchasing 
     fuel cell vehicles and hydrogen energy systems under 
     paragraph (1); and
       ``(ii) the cost to the agencies of a feasible alternative 
     to leasing or purchasing fuel cell vehicles and hydrogen 
     energy systems, as determined by the Secretary.
       ``(B) Competitive costs and management structures.--In 
     carrying out subparagraph (A), the Secretary, in consultation 
     with the agency, may use the General Services Administration 
     or any commercial vendor to ensure--
       ``(i) a cost-effective purchase of a fuel cell vehicle or 
     hydrogen energy system; or
       ``(ii) a cost-effective management structure of the lease 
     of a fuel cell vehicle or hydrogen energy system.
       ``(3) Exception.--
       ``(A) In general.--If the Secretary determines that the 
     head of an agency described in paragraph (1) cannot find an 
     appropriately efficient and reliable fuel cell vehicle or 
     hydrogen energy system in accordance with paragraph (1), that 
     agency shall be excepted from compliance with paragraph (1).
       ``(B) Consideration.--In making a determination under 
     subparagraph (A), the Secretary shall consider--
       ``(i) the needs of the agency; and
       ``(ii) an evaluation performed by--

       ``(I) the Task Force; or
       ``(II) the Technical Advisory Committee.

       ``(c) Energy Savings Goals.--
       ``(1) In general.--
       ``(A) Regulations.--Not later than December 31, 2006, the 
     Secretary shall--
       ``(i) in cooperation with the Task Force, promulgate 
     regulations for the period of 2008 through 2010 that extend 
     and augment energy savings goals for each Federal agency, in 
     accordance with any Executive order issued after March 2000; 
     and
       ``(ii) promulgate regulations to expand the minimum Federal 
     fleet requirement and credit allowances for fuel cell vehicle 
     systems under section 303 of the Energy Policy Act of 1992 
     (42 U.S.C. 13212).
       ``(B) Review, evaluation, and new regulations.--Not later 
     than December 31, 2010, the Secretary shall--
       ``(i) review the regulations promulgated under subparagraph 
     (A);
       ``(ii) evaluate any progress made toward achieving energy 
     savings by Federal agencies; and
       ``(iii) promulgate new regulations for the period of 2011 
     through 2015 to achieve additional energy savings by Federal 
     agencies relating to technical and cost-performance 
     standards.
       ``(2) Offsetting energy savings goals.--An agency that 
     leases or purchases a fuel cell vehicle or hydrogen energy 
     system in accordance with subsection (b)(1) may use that 
     lease or purchase to count toward an energy savings goal of 
     the agency.
       ``(3) Use of energy savings performance contracts.--An 
     agency that leases or purchases a fuel cell vehicle or 
     hydrogen energy system in accordance with subsection (b)(1) 
     may use any energy savings performance contract under title 
     VIII of the National Energy Conservation Policy Act (42 
     U.S.C. 8287 et seq.) (including a pilot program for mobility 
     uses in an expanded energy savings performance contract) to 
     count toward an energy savings goal of the agency.
       ``(d) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section--
       ``(1) $10,000,000 for fiscal year 2008;
       ``(2) $15,000,000 for fiscal year 2009;
       ``(3) $50,000,000 for fiscal year 2010;
       ``(4) $100,000,000 for fiscal year 2011;
       ``(5) $150,000,000 for fiscal year 2012;
       ``(6) $165,000,000 for fiscal year 2013;
       ``(7) $195,000,000 for fiscal year 2014; and
       ``(8) $200,000,000 for fiscal year 2015.

     ``SEC. 302. FEDERAL PROCUREMENT OF STATIONARY, PORTABLE, AND 
                   MICRO FUEL CELLS.

       ``(a) Purposes.--The purposes of this section are--
       ``(1) to stimulate acceptance by the market of stationary, 
     portable, and micro fuel cells; and
       ``(2) to support development of technologies relating to 
     stationary, portable, and micro fuel cells.
       ``(b) Federal Leases and Purchases.--
       ``(1) In general.--Not later than January 1, 2006, the head 
     of any Federal agency that uses electrical power from 
     stationary, portable, or microportable devices shall lease or 
     purchase a stationary, portable, or micro fuel cell to meet 
     any applicable energy savings goal described in subsection 
     (c).
       ``(2) Costs of leases and purchases.--
       ``(A) In general.--The Secretary, in cooperation with the 
     Task Force and the Technical Advisory Committee, shall pay 
     the cost to Federal agencies (or share the cost under 
     interagency agreements) of leasing or purchasing stationary, 
     portable, and micro fuel cells under paragraph (1).
       ``(B) Competitive costs and management structures.--In 
     carrying out subparagraph (A), the Secretary, in consultation 
     with the agency, may use the General Services Administration 
     or any commercial vendor to ensure--
       ``(i) a cost-effective purchase of a stationary, portable, 
     or micro fuel cell; or
       ``(ii) a cost-effective management structure of the lease 
     of a stationary, portable, or micro fuel cell.
       ``(3) Exception.--
       ``(A) In general.--If the Secretary determines that the 
     head of an agency described in paragraph (1) cannot find an 
     appropriately efficient and reliable stationary, portable, or 
     micro fuel cell in accordance with paragraph (1), that agency 
     shall be excepted from compliance with paragraph (1).
       ``(B) Consideration.--In making a determination under 
     subparagraph (A), the Secretary shall consider--
       ``(i) the needs of the agency; and
       ``(ii) an evaluation performed by--

       ``(I) the Task Force; or
       ``(II) the Technical Advisory Committee of the Task Force.

       ``(c) Energy Savings Goals.--
       ``(1) Offsetting energy savings goals.--An agency that 
     leases or purchases a stationary, portable, or micro fuel 
     cell in accordance with subsection (b)(1) may use that lease 
     or purchase to count toward an energy savings goal described 
     in section 301(c)(1) that is applicable to the agency.
       ``(2) Use of energy savings performance contracts.--An 
     agency that leases or purchases a stationary, portable, or 
     micro fuel cell in accordance with subsection (b)(1) may use 
     any energy savings performance contract under title VIII of 
     the National Energy Conservation Policy Act (42 U.S.C. 8287 
     et seq.) (including a pilot program in an expanded energy 
     savings performance contract) to count toward an energy 
     savings goal of the agency.
       ``(d) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section--
       ``(1) $20,000,000 for fiscal year 2006;
       ``(2) $50,000,000 for fiscal year 2007;
       ``(3) $75,000,000 for fiscal year 2008;
       ``(4) $100,000,000 for fiscal year 2009;
       ``(5) $100,000,000 for fiscal year 2010;
       ``(6) $100,000,000 for fiscal year 2011;
       ``(7) $55,000,000 for fiscal year 2012;
       ``(8) $50,000,000 for fiscal year 2013;
       ``(9) $50,000,000 for fiscal year 2014; and
       ``(10) $25,000,000 for fiscal year 2015.

                   ``TITLE IV--REGULATORY MANAGEMENT

     ``SEC. 401. CODES AND STANDARDS.

       ``(a) In General.--The Secretary, in cooperation with the 
     Task Force, shall provide grants to, or offer to enter into 
     contracts with such professional organizations, public 
     service organizations, and government agencies as the 
     Secretary determines appropriate to support timely and 
     extensive development of safety codes and standards relating 
     to fuel cell vehicles, hydrogen energy systems, and 
     stationary, portable, and micro fuel cells.
       ``(b) Educational Efforts.--The Secretary shall support 
     educational efforts by organizations and agencies described 
     in subsection (a) to share information, including information 
     relating to best practices, among those organizations and 
     agencies.

     ``SEC. 402. AUTHORIZATION OF APPROPRIATIONS.

       ``There is authorized to be appropriated to carry out this 
     title--
       ``(1) $4,000,000 for fiscal year 2006;
       ``(2) $7,000,000 for fiscal year 2007;

[[Page S3036]]

       ``(3) $8,000,000 for fiscal year 2008;
       ``(4) $8,000,000 for fiscal year 2009;
       ``(5) $10,000,000 for fiscal year 2010;
       ``(6) $9,000,000 for fiscal year 2011; and
       ``(7) $9,000,000 for fiscal year 2012.

                           ``TITLE V--REPORTS

     ``SEC. 501. DEPLOYMENT OF HYDROGEN TECHNOLOGY.

       ``(a) Secretary.--Subject to subsection (c), not later than 
     2 years after the date of enactment of the Hydrogen and Fuel 
     Cell Technology Act of 2005, and biannually thereafter, the 
     Secretary shall submit to Congress--
       ``(1) a report describing--
       ``(A) any activity carried out by the Department of Energy 
     under this Act, including a research, development, 
     demonstration, and commercial application program for 
     hydrogen and fuel cell technology;
       ``(B) measures the Secretary has taken during the preceding 
     2 years to support the transition of primary industry (or a 
     related industry) to a fully-commercialized hydrogen economy;
       ``(C) any change made to a research, development, or 
     deployment strategy of the Secretary relating to hydrogen and 
     fuel cell technology to reflect the results of a learning 
     demonstration under title II;
       ``(D) progress, including progress in infrastructure, made 
     toward achieving the goal of producing and deploying not less 
     than--
       ``(i) 100,000 hydrogen-fueled vehicles in the United States 
     by 2010; and
       ``(ii) 2,500,000 hydrogen-fueled vehicles by 2020;
       ``(E) progress made toward achieving the goal of supplying 
     hydrogen at a sufficient number of fueling stations in the 
     United States by 2010 can be achieved by integrating--
       ``(i) hydrogen activities; and
       ``(ii) associated targets and timetables for the 
     development of hydrogen technologies;
       ``(F) any problem relating to the design, execution, or 
     funding of a program under this Act; and
       ``(G) progress made toward and goals achieved in carrying 
     out this Act and updates to the developmental roadmap, 
     including the results of the reviews conducted by the 
     National Academy of Sciences under subsection (d) for the 
     fiscal years covered by the report; and
       ``(2) a strategic plan describing--
       ``(A) a remedy for any problems described in paragraph 
     (1)(D); and
       ``(B) any approach by which the Secretary could achieve a 
     substantial decrease in the dependence on and consumption of 
     natural gas and imported oil by the Federal Government, 
     including by increasing the use of fuel cell vehicles, 
     stationary and portable fuel cells, and hydrogen energy 
     systems described in title III.
       ``(b) Task Force.--Subject to subsection (c), not later 
     than 3 years after the date of enactment of the Hydrogen and 
     Fuel Cell Technology Act of 2005, and triennially thereafter, 
     the Task Force shall submit to Congress a report describing--
       ``(1) the degree of success of each program under this Act; 
     and
       ``(2) the degree to which the success of programs under 
     this Act has led to evolution of a hydrogen economy and 
     improved potential for economic growth.
       ``(c) Combination of Reports.--
       ``(1) In general.--The Secretary may decide to combine the 
     reports under subsections (a) and (b) before the reports are 
     submitted to Congress, as the Secretary determines 
     appropriate.
       ``(2) Requirements.--If the Secretary decides to combine 
     the reports under paragraph (1), the Secretary shall--
       ``(A) not later than 2 years after the date of enactment of 
     the Hydrogen and Fuel Cell Technology Act of 2005, provide 
     notice of the decision to the Task Force; and
       ``(B) not later than 3 years after the date of enactment of 
     the Hydrogen and Fuel Cell Technology Act of 2005, and 
     triennially thereafter, submit the combined reports to 
     Congress.
       ``(3) Task force.--Not later than 180 days after receiving 
     notice from the Secretary under paragraph (2)(A), and 
     triennially thereafter, the Task Force shall submit to the 
     Secretary a report in accordance with subsection (b).
       ``(d) National Academy of Sciences.--
       ``(1) In general.--Not later than September 30, 2007, and 
     triennially thereafter, the National Academy of Sciences 
     shall conduct and submit to the Secretary--
       ``(A) the results of a review of the projects and 
     activities carried out under this Act; and
       ``(B) recommendations for any new authorities or resources 
     needed to achieve strategic goals.
       ``(2) Reauthorization.--The Secretary shall use the results 
     of reviews conducted under paragraph (1) in proposing to 
     Congress any legislative changes relating to reauthorization 
     of this Act.

     ``SEC. 502. AUTHORIZATION OF APPROPRIATIONS.

       ``There is authorized to be appropriated to carry out this 
     title $900,000 for each of fiscal years 2006 through 2015.

                  ``TITLE VI--TERMINATION OF AUTHORITY

     ``SEC. 601. TERMINATION OF AUTHORITY.

       ``This Act and the authority provided by this Act terminate 
     on September 30, 2015.''.

     SEC. 3. TAX INCENTIVES TO BUILD THE HYDROGEN ECONOMY.

       It is the sense of the Senate that Congress should provide 
     any necessary tax incentives to encourage investment in and 
     production and use of hydrogen and fuel cell systems during 
     critical stages of market growth, including--
       (1) a hydrogen fuel cell motor vehicle credit;
       (2) a credit for the installation of hydrogen fuel cell 
     motor vehicle fueling stations;
       (3) a credit for residential fuel cell property; and
       (4) a credit for business installation of qualified fuel 
     cells.


           the hydrogen and fuel cell technology act of 2005

  Mr. AKAKA. Mr. President, I rise today in support of the Hydrogen and 
Fuel Cell Technology Act of 2005, a bill to amend the Spark M. 
Matsunaga Hydrogen Research, Development, and Demonstration Act of 
1990. A reauthorization of the Matsunaga Act is badly needed. I have 
introduced bills in the 106th Congress, in the 107th Congress jointly 
with my friend Senator Harkin, and in the 108th Congress to reauthorize 
the essential hydrogen research and development programs in the 
Department of Energy. The core provisions of these bills were included 
in each of the omnibus energy bills, whether we were in the majority or 
in the minority, suggesting widespread, bipartisan agreement that we 
need a robust hydrogen program for the future.
  As a founding member of the Senate's Hydrogen and Fuel Cell Caucus, I 
have worked with my colleagues to draft this bill and am pleased to be 
an original cosponsor. The caucus has heard from a wide variety of 
interest groups, engineers, and scientists providing input on the 
potential for a ``hydrogen economy.'' The caucus, under the able 
coleadership of my colleagues Senator Dorgan and Senator Graham, has 
actively solicited input from fuel cell producers anti councils, 
automobile manufacturers, oil and gas companies, utilities, university 
research institutes, the Department of Energy, and national 
associations. The recommendations of the National Commission on Energy 
Policy and the National Academy of Sciences were instrumental in 
developing this bill.
  I am more convinced than ever that we need to move now to reauthorize 
the Matsunaga Act and to refine and enhance the Department of Energy's 
responsibilities while maintaining strong oversight over the progress 
of the activities. We cannot delay the move to a ``hydrogen economy.''
  This bill does several things that are important for the management 
of hydrogen programs in the Department of Energy and will help move the 
nation toward using hydrogen as an energy source in our daily lives. It 
provides greater focus for the hydrogen fuel cell technology research 
and development programs without losing the focus on renewable sources 
of hydrogen. It emphasizes factors that are critical to the development 
of hydrogen infrastructure and the supply of vehicles and electric 
power. It directs the Secretary to carry out activities to improve 
technology with the goal of cost reduction, particularly for hydrogen 
production, the supply of hydrogen, storage of hydrogen, and the end 
uses of hydrogen. The bill authorizes $200 million for hydrogen supply 
and $160 million for fuel cell technologies in fiscal year 2006. It 
emphasizes the importance of enhancing sources of renewable fuels and 
biofuels for hydrogen production, a factor that is critical to remote 
areas and island states such as Hawaii where we need local sources of 
energy.
  This bill is a realistic one, providing specific footpaths to the 
hydrogen economy domestically and internationally. The bill 
acknowledges that transportation and the availability of reasonably 
priced cars may be the first market break through for the hydrogen 
economy.
  Title II authorizes demonstration programs through the Department of 
Energy for fuel cell systems for mobile, portable, and stationary uses. 
Demonstrations are a critical component of moving a product to market. 
Title III of the bill, ``Transition to Market,'' succinctly states the 
goal of this section. Section 301 authorizes Federal procurement of 
fuel cell vehicles and hydrogen energy systems. This provision is 
intended to stimulate the market by requiring the Federal Government, 
the largest single user of energy in the United States, to adopt 
hydrogen technologies as soon as practicable. Energy savings are an 
important part of this title. The Department is required to collect 
data on energy savings as a result of this program and

[[Page S3037]]

to evaluate whether the program is achieving energy savings.
  Lastly, this bill provides important directions to the Secretary to 
address the development of safety codes and standards relating to fuel 
cell vehicles, hydrogen energy systems, and stationary, portable, and 
micro fuel cells. This provision recognizes the importance of public 
acceptance of hydrogen as a safe and secure energy source; and it 
recognizes the industry's needs for standards of safety codes and 
standards for hydrogen energy systems whether stationary, mobile, or 
portable. The bill does not require the standards to be developed ``in-
house'' within the Department of Energy, but importantly authorizes the 
Secretary of Energy to enter into cooperative agreements, grants, and 
contracts with industry groups and with the cooperation of the Federal 
interagency Hydrogen and Fuel Cell Technical Task Force.
  Mr. President, I urge my colleagues in the Senate to support this 
bill.
                                 ______