[Congressional Record Volume 152, Number 58 (Friday, May 12, 2006)]
[Senate]
[Pages S4523-S4525]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. GRAHAM (for himself and Mr. Dorgan):
  S. 2796. A bill to authorize the Secretary of Energy to establish 
monetary prizes for achievements in overcoming scientific and technical 
barriers

[[Page S4524]]

assoicated with hydrogen energy; to the Committee on Energy and Natural 
Resources.
  Mr. GRAHAM. Mr. President, I ask unanimous consent that the text of 
the H-Prize Act be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2796

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``H-Prize Act of 2006''.

     SEC. 2. DEFINITIONS.

       In this Act:
       (1) Administering entity.--The term ``administering 
     entity'' means the entity with which the Secretary enters 
     into an agreement under section 3(c).
       (2) Department.--The term ``Department'' means the 
     Department of Energy.
       (3) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.

     SEC. 3. PRIZE AUTHORITY.

       (a) In General.--The Secretary shall carry out a program to 
     competitively award cash prizes only in conformity with this 
     Act to advance the research, development, demonstration, and 
     commercial application of hydrogen energy technologies.
       (b) Advertising and Solicitation of Competitors.--
       (1) Advertising.--The Secretary shall widely advertise 
     prize competitions to encourage broad participation, 
     including participation by--
       (A) individuals;
       (B) institutions of higher education, including 
     historically Black colleges and universities and other 
     institutions serving minorities; and
       (C) large and small businesses, including businesses owned 
     or controlled by socially and economically disadvantaged 
     persons.
       (2) Announcement through federal register notice.--
       (A) In general.--The Secretary shall announce each prize 
     competition by publishing a notice in the Federal Register.
       (B) Requirements.--The notice shall include a description 
     of--
       (i) the subject of the competition;
       (ii) the duration of the competition;
       (iii) the eligibility requirements for participation in the 
     competition;
       (iv) the process for participants to register for the 
     competition;
       (v) the amount of the prize; and
       (vi) the criteria for awarding the prize.
       (c) Administering the Competitions.--
       (1) In general.--The Secretary shall enter into an 
     agreement with a private, nonprofit entity to administer the 
     prize competitions, subject to this Act.
       (2) Duties.--The duties of the administering entity under 
     the agreement shall include--
       (A) advertising prize competitions and the results of the 
     prize competitions;
       (B) raising funds from private entities and individuals to 
     pay for administrative costs and contribute to cash prizes;
       (C) working with the Secretary to develop the criteria for 
     selecting winners in prize competitions, based on goals 
     provided by the Secretary;
       (D) determining, in consultation with the Secretary, the 
     appropriate amount for each prize to be awarded;
       (E) selecting judges in accordance with section 4(d), using 
     criteria developed in consultation with the Secretary; and
       (F) preventing the unauthorized use or disclosure of the 
     intellectual property, trade secrets, and confidential 
     business information of registered participants.
       (d) Funding Sources.--
       (1) In general.--Cash prizes under this Act shall consist 
     of funds appropriated under section 8 and any funds provided 
     by the administering entity for the cash prizes (including 
     funds raised pursuant to subsection (c)(2)(B)).
       (2) Other federal agencies.--The Secretary may accept funds 
     from other Federal agencies for the cash prizes.
       (3) No special consideration.--The Secretary may not give 
     any special consideration to any private sector entity or 
     individual in return for a donation to the administering 
     entity.
       (e) Announcement of Prizes.--
       (1) In general.--The Secretary may not issue a notice 
     required by subsection (b)(2) until all the funds needed to 
     pay out the announced amount of the prize have been 
     appropriated or committed in writing by the administering 
     entity.
       (2) Increase in amount of prize.--The Secretary may 
     increase the amount of a prize after an initial announcement 
     is made under subsection (b)(2) if--
       (A) notice of the increase is provided in the same manner 
     as the initial notice of the prize; and
       (B) the funds needed to pay out the announced amount of the 
     increase have been appropriated or committed in writing by 
     the administering entity.

     SEC. 4. PRIZE CATEGORIES.

       (a) Categories.--The Secretary shall establish prizes for--
       (1) advancements in components or systems related to--
       (A) hydrogen production;
       (B) hydrogen storage;
       (C) hydrogen distribution; and
       (D) hydrogen utilization;
       (2) prototypes of hydrogen-powered vehicles or other 
     hydrogen-based products that best meet or exceed objective 
     performance criteria, such as completion of a race over a 
     certain distance or terrain or generation of energy at 
     certain levels of efficiency; and
       (3) transformational changes in technologies for the 
     distribution or production of hydrogen that meet or exceed 
     far-reaching objective criteria that--
       (A) shall include minimal carbon emissions; and
       (B) may include cost criteria designed to facilitate the 
     eventual market success of a winning technology.
       (b) Awards.--
       (1) Advancements.--
       (A) In general.--To the extent permitted under section 
     3(e), the prizes authorized under subsection (a)(1) shall be 
     awarded biennially to the most significant advance made in 
     each of the 4 subcategories described in subparagraphs (A) 
     through (D) of subsection (a)(1) since the submission 
     deadline of the previous prize competition in the same 
     category under subsection (a)(1) or the date of enactment of 
     this Act, whichever is later, unless no such advance is 
     significant enough to merit an award.
       (B) Maximum amount for single prize.--No single prize 
     described in subparagraph (A) may exceed $1,000,000.
       (C) Insufficient total funds.--If less than $4,000,000 is 
     available for a prize competition under subsection (a)(1), 
     the Secretary may--
       (i) omit 1 or more subcategories;
       (ii) reduce the amount of the prizes; or
       (iii) not hold a prize competition.
       (2) Prototypes.--
       (A) In general.--To the extent permitted under section 
     3(e), prizes authorized under subsection (a)(2) shall be 
     awarded biennially in alternate years from the prizes 
     authorized under subsection (a)(1).
       (B) Total number of prizes.--The Secretary may award no 
     more than 1 prize under subsection (a)(1) in each 2-year 
     period.
       (C) Maximum amount for single prize.--No single prize under 
     this paragraph may exceed $4,000,000.
       (D) Insufficient qualified entries.--If no registered 
     participant meets the objective performance criteria 
     established pursuant to subsection (c) for a competition 
     under this paragraph, the Secretary shall not award a prize.
       (3) Transformational technologies.--
       (A) In general.--To the extent permitted under section 
     3(e), the Secretary shall announce 1 prize competition 
     authorized under subsection (a)(3) as soon as practicable 
     after the date of enactment of this Act.
       (B) Amount of prize.--A prize offered under this paragraph 
     shall--
       (i) be in an amount not less than $10,000,000;
       (ii) be paid to the winner in a lump sum; and
       (iii) include an additional amount paid to the winner as a 
     match for each dollar of non-Federal funding raised by the 
     winner for the hydrogen technology beginning on the date the 
     winner was named.
       (C) Matching.--
       (i) In general.--The match described in subparagraph 
     (B)(iii) shall be provided until the earlier of--

       (I) the date that is 3 years after the date the prize 
     winner is named; or
       (II) the date on which the full amount of the prize has 
     been paid out.

       (ii) Election.--A prize winner may elect to have the match 
     amount paid to another entity that is continuing the 
     development of the winning technology.
       (iii) Rules.--The Secretary shall announce the rules for 
     receiving the match in the notice required by section 
     3(b)(2).
       (D) Requirements.--The Secretary shall award a prize under 
     this paragraph only when a registered participant has met the 
     objective criteria established for the prize pursuant to 
     subsection (c) and announced pursuant to section 3(b)(2).
       (E) Total amount of funds.--
       (i) Federal funds.--Not more than $10,000,000 in Federal 
     funds may be used for the prize award under this paragraph.
       (ii) Matching funds.--As a condition of entering into an 
     agreement under section 3(c), the administering entity shall 
     seek to raise $40,000,000 in non-Federal funds toward the 
     matching award under this paragraph.
       (c) Criteria.--In establishing the criteria required by 
     this Act, the Secretary shall consult with--
       (1) the Hydrogen Technical and Fuel Cell Advisory Committee 
     of the Department;
       (2) other Federal agencies, including the National Science 
     Foundation; and
       (3) private organizations, including professional 
     societies, industry associations, the National Academy of 
     Sciences, and the National Academy of Engineering.
       (d) Judges.--
       (1) In general.--For each prize competition, the Secretary 
     shall assemble a panel of qualified judges to select the 1 or 
     more winners on the basis of the criteria established under 
     subsection (c).
       (2) Inclusions.--Judges for each prize competition shall 
     include individuals from outside the Department, including 
     from the private sector.
       (3) Prohibitions.--A judge may not--
       (A) have personal or financial interests in, or be an 
     employee, officer, director, or agent of, any entity that is 
     a registered participant

[[Page S4525]]

     in the prize competition for which the judge will serve as a 
     judge; or
       (B) have a familial or financial relationship with an 
     individual who is a registered participant in the prize 
     competition for which the judge will serve as a judge.

     SEC. 5. ELIGIBILITY.

       To be eligible to win a prize under this Act, an individual 
     or entity--
       (1) shall have complied with all the requirements in 
     accordance with the Federal Register notice required under 
     section 3(b)(2);
       (2) in the case of a private entity, shall be incorporated 
     in and maintain a primary place of business in the United 
     States;
       (3) in the case of an individual (whether participating 
     singly or in a group), shall be a citizen of, or an alien 
     lawfully admitted for permanent residence in, the United 
     States; and
       (4) shall not be a Federal entity, a Federal employee 
     acting within the scope of employment, or an employee of a 
     national laboratory acting within the scope of employment.

     SEC. 6. INTELLECTUAL PROPERTY.

       (a) In General.--Subject to subsection (b), the Federal 
     Government shall not, by virtue of offering or awarding a 
     prize under this Act, be entitled to any intellectual 
     property rights derived as a consequence of, or direct 
     relation to, the participation by a registered participant in 
     a competition authorized by this Act.
       (b) Negotiation of Licenses Permitted.--This section does 
     not prevent the Federal Government from negotiating a license 
     for the use of intellectual property developed for a prize 
     competition under this Act.

     SEC. 7. LIABILITY.

       (a) Waiver of Liability.--
       (1) In general.--As a condition of participation in a 
     competition under this Act, the Secretary may require 
     registered participants to waive claims against the Federal 
     Government and the administering entity (except claims for 
     willful misconduct) for any injury, death, damage, or loss of 
     property, revenue, or profits arising from the participation 
     of the registered participants in a competition under this 
     Act.
       (2) Notice required.--The Secretary shall provide notice of 
     any waiver required under this subsection in the notice 
     required by section 3(b)(2).
       (3) Prohibition.--The Secretary may not require a 
     registered participant to waive claims against the 
     administering entity arising out of the unauthorized use or 
     disclosure by the administering entity of the intellectual 
     property, trade secrets, or confidential business information 
     of the registered participant.
       (b) Liability Insurance.--
       (1) Requirements.--As a condition of participation in a 
     competition under this Act, a registered participant shall be 
     required to obtain liability insurance or demonstrate 
     financial responsibility, in amounts determined by the 
     Secretary, for claims by--
       (A) a third party for death, bodily injury, or property 
     damage or loss resulting from an activity carried out in 
     connection with participation in a competition under this 
     Act; and
       (B) the Federal Government for damage or loss to Government 
     property resulting from such an activity.
       (2) Federal government insured.--
       (A) In general.--The Federal Government shall be named as 
     an additional insured under the insurance policy of a 
     registered participant required under paragraph (1)(A).
       (B) Mandatory indemnification.--As a condition of 
     participation in a competition under this Act, a registered 
     participant shall be required to agree to indemnify the 
     Federal Government against third party claims for damages 
     arising from or related to competition activities.

     SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

       (a) Authorization of Appropriations.--
       (1) Awards.--There are authorized to be appropriated to the 
     Secretary to carry out this Act for the period of fiscal 
     years 2007 through 2016--
       (A) $20,000,000 for awards described in section 4(a)(1);
       (B) $20,000,000 for awards described in section 4(a)(2); 
     and
       (C) $10,000,000 for the award described in section 4(a)(3).
       (2) Administration.--In addition to the amounts authorized 
     in paragraph (1), there are authorized to be appropriated to 
     the Secretary for the administrative costs of carrying out 
     this Act $2,000,000 for each of fiscal years 2007 through 
     2016.
       (b) Carryover of Funds.--
       (1) In general.--Funds appropriated for prize awards under 
     this Act--
       (A) shall remain available until expended; and
       (B) may be transferred, reprogrammed, or expended for other 
     purposes only after the expiration of 10 fiscal years after 
     the fiscal year for which the funds were originally 
     appropriated.
       (2) Relation to other law.--No provision in this Act 
     permits obligation or payment of funds in violation of 
     section 1341 of title 31, United States Code (commonly known 
     as the ``Anti-Deficiency Act'').

     SEC. 9. MAINTENANCE OF EFFORT.

       The Secretary shall ensure that funds provided under this 
     Act will be used only to supplement, and not to supplant, 
     Federal research and development programs.

     SEC. 10. SUNSET.

       The authority provided by this Act shall terminate on 
     September 30, 2017.
                                 ______