[House Report 110-171]
[From the U.S. Government Publishing Office]



110th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    110-171

======================================================================



 
                          H-PRIZE ACT OF 2007

                                _______
                                

  June 5, 2007.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

Mr. Gordon of Tennessee, from the Committee on Science and Technology, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 632]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Science and Technology, to whom was referred 
the bill (H.R. 632) to authorize the Secretary of Energy to 
establish monetary prizes for achievements in overcoming 
scientific and technical barriers associated with hydrogen 
energy, having considered the same, report favorably thereon 
with an amendment and recommend that the bill as amended do 
pass.

                                CONTENTS

                                                                   Page
   I. Amendment.......................................................1
  II. Purpose of the Bill.............................................5
 III. Background and Need for the Legislation.........................5
  IV. Hearing Summary.................................................6
   V. Committee Actions...............................................8
  VI. Summary of Major Provisions of the Bill, As Reported............8
 VII. Section-by-Section Analysis (by Title and Section), As Reported.9
VIII. Committee View.................................................11
  IX. Cost Estimate..................................................12
   X. Congressional Budget Office Cost Estimate......................12
   XI Compliance with Public Law 104-4...............................13
 XII. Committee Oversight Findings and Recommendations...............13
XIII. Statement on General Performance Goals and Objectives..........13
 XIV. Constitutional Authority Statement.............................14
  XV. Federal Advisory Committee Statement...........................14
 XVI. Congressional Accountability Act...............................14
 XVII Earmark Identification.........................................14
XVIII.Statement on Preemption of State, Local, or Tribal Law.........14

 XIX. Changes in Existing Law Made by the Bill, as Reported..........14
  XX. Committee Recommendations......................................14
 XXI. Proceedings of the Subcommittee Markup.........................15
XXII. Proceedings of the Full Committee Markup.......................41

                              I. AMENDMENT

    Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``H-Prize Act of 2007''.

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 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 by 
        individuals, universities (including historically Black 
        colleges and universities and other minority serving 
        institutions), and large and small businesses (including 
        businesses owned or controlled by socially and economically 
        disadvantaged persons).
          (2) Announcement through federal register notice.--The 
        Secretary shall announce each prize competition by publishing a 
        notice in the Federal Register. This notice shall include 
        essential elements of the competition such as the subject of 
        the competition, the duration of the competition, the 
        eligibility requirements for participation in the competition, 
        the process for participants to register for the competition, 
        the amount of the prize, and the criteria for awarding the 
        prize.
  (c) Administering the Competitions.--The Secretary shall enter into 
an agreement with a private, nonprofit entity to administer the prize 
competitions, subject to the provisions of this Act. The duties of the 
administering entity under the agreement shall include--
          (1) advertising prize competitions and their results;
          (2) raising funds from private entities and individuals to 
        pay for administrative costs and to contribute to cash prizes, 
        including funds provided in exchange for the right to name a 
        prize awarded under this section;
          (3) developing, in consultation with and subject to the final 
        approval of the Secretary, the criteria for selecting winners 
        in prize competitions, based on goals provided by the 
        Secretary;
          (4) determining, in consultation with the Secretary, the 
        appropriate amount and funding sources for each prize to be 
        awarded, subject to the final approval of the Secretary with 
        respect to Federal funding;
          (5) providing advice and consultation to the Secretary on the 
        selection of judges in accordance with section 4(d), using 
        criteria developed in consultation with and subject to the 
        final approval of the Secretary; and
          (6) protecting against the entity's unauthorized use or 
        disclosure of a registered participant's trade secrets and 
        confidential business information. Any information properly 
        identified as trade secrets or confidential business 
        information that is submitted by a participant as part of a 
        competitive program under this Act may be withheld from public 
        disclosure.
  (d) Funding Sources.--Prizes under this Act shall consist of Federal 
appropriated funds and any funds provided by the administering entity 
(including funds raised pursuant to subsection (c)(2)) for such cash 
prize programs. The Secretary may accept funds from other Federal 
agencies for such cash prizes and, notwithstanding section 3302(b) of 
title 31, United States Code, may use such funds for the cash prize 
program. Other than publication of the names of prize sponsors, the 
Secretary may not give any special consideration to any private sector 
entity or individual in return for a donation to the Secretary or 
administering entity.
  (e) Announcement of Prizes.--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. The Secretary may increase the 
amount of a prize after an initial announcement is made under 
subsection (b)(2) if--
          (1) notice of the increase is provided in the same manner as 
        the initial notice of the prize; and
          (2) the funds needed to pay out the announced amount of the 
        increase have been appropriated or committed in writing by the 
        administering entity.
  (f) Sunset.--The authority to announce prize competitions under this 
Act shall terminate on September 30, 2018.

SEC. 4. PRIZE CATEGORIES.

  (a) Categories.--The Secretary shall establish prizes for--
          (1) advancements in technologies, 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, which shall include minimal carbon 
        emissions and which may include cost criteria designed to 
        facilitate the eventual market success of a winning technology.
  (b) Awards.--
          (1) Advancements.--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 four 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. No one such prize may exceed 
        $1,000,000. If less than $4,000,000 is available for a prize 
        competition under subsection (a)(1), the Secretary may omit one 
        or more subcategories, reduce the amount of the prizes, or not 
        hold a prize competition.
          (2) Prototypes.--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). The Secretary is authorized to award up to 
        one prize in this category in each 2-year period. No such prize 
        may exceed $4,000,000. If no registered participants meet 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.--To the extent permitted 
        under section 3(e), the Secretary shall announce one prize 
        competition authorized under subsection (a)(3) as soon after 
        the date of enactment of this Act as is practicable. A prize 
        offered under this paragraph shall be not less than 
        $10,000,000, paid to the winner in a lump sum, and an 
        additional amount paid to the winner as a match for each dollar 
        of private funding raised by the winner for the hydrogen 
        technology beginning on the date the winner was named. The 
        match shall be provided for 3 years after the date the prize 
        winner is named or until the full amount of the prize has been 
        paid out, whichever occurs first. A prize winner may elect to 
        have the match amount paid to another entity that is continuing 
        the development of the winning technology. The Secretary shall 
        announce the rules for receiving the match in the notice 
        required by section 3(b)(2). 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). Not 
        more than $10,000,000 in Federal funds may be used for the 
        prize award under this paragraph. The administering entity 
        shall seek to raise $40,000,000 toward the matching award under 
        this paragraph.
  (c) Criteria.--In establishing the criteria required by this Act, the 
Secretary--
          (1) shall consult with the Department's Hydrogen Technical 
        and Fuel Cell Advisory Committee;
          (2) shall consult with other Federal agencies, including the 
        National Science Foundation; and
          (3) may consult with other experts such as private 
        organizations, including professional societies, industry 
        associations, and the National Academy of Sciences and the 
        National Academy of Engineering.
  (d) Judges.--For each prize competition, the Secretary in 
consultation with the administering entity shall assemble a panel of 
qualified judges to select the winner or winners on the basis of the 
criteria established under subsection (c). Judges for each prize 
competition shall include individuals from outside the Department, 
including from the private sector. A judge, spouse, minor children, and 
members of the judge's household may not--
          (1) have personal or financial interests in, or be an 
        employee, officer, director, or agent of, any entity that is a 
        registered participant in the prize competition for which he or 
        she will serve as a judge; or
          (2) have a familial or financial relationship with an 
        individual who is a registered participant in the prize 
        competition for which he or she 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, 
        and 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
          (3) shall not be a Federal entity, a Federal employee acting 
        within the scope of his employment, or an employee of a 
        national laboratory acting within the scope of his employment.

SEC. 6. INTELLECTUAL PROPERTY.

  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. 
This section shall not be construed to 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.--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 registered participants' participation in a competition under 
this Act. The Secretary shall give notice of any waiver required under 
this subsection in the notice required by section 3(b)(2). 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 registered participant's 
trade secrets or confidential business information.
  (b) Liability Insurance.--
          (1) Requirements.--Registered participants 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.--The Federal Government shall 
        be named as an additional insured under a registered 
        participant's insurance policy required under paragraph (1)(A), 
        and registered participants 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. REPORT TO CONGRESS.

  Not later than 60 days after the awarding of the first prize under 
this Act, and annually thereafter, the Secretary shall transmit to the 
Congress a report that--
          (1) identifies each award recipient;
          (2) describes the technologies developed by each award 
        recipient; and
          (3) specifies actions being taken toward commercial 
        application of all technologies with respect to which a prize 
        has been awarded under this Act.

SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

  (a) Authorization of Appropriations.--
          (1) Awards.--There are authorized to be appropriated to the 
        Secretary for the period encompassing fiscal years 2008 through 
        2017 for carrying out this Act--
                  (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 each of fiscal years 2008 and 2009 $2,000,000 for 
        the administrative costs of carrying out this Act.
  (b) Carryover of Funds.--Funds appropriated for prize awards under 
this Act shall remain available until expended, and 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. No provision in this Act permits obligation or 
payment of funds in violation of section 1341 of title 31 of the United 
States Code (commonly referred to as the Anti-Deficiency Act).

SEC. 10. NONSUBSTITUTION.

  The programs created under this Act shall not be considered a 
substitute for Federal research and development programs.

                              II. PURPOSE

    The purpose of the bill is to authorize the Secretary of 
Energy to establish monetary prizes for achievements in 
overcoming scientific and technical barriers associated with 
hydrogen energy.

              III. BACKGROUND AND NEED FOR THE LEGISLATION

    Hydrogen gas is considered by many experts to be a 
promising fuel, particularly in the transportation sector. When 
used as a fuel, its only combustion byproduct is water vapor. 
The widespread adoption of hydrogen as a transportation fuel 
has the potential to reduce or eliminate air pollution 
generated by cars and trucks.
    However, unlike coal or oil, the hydrogen gas used as a 
fuel is not a naturally occurring energy resource. Hydrogen 
must be produced from hydrogen-bearing compounds, like water or 
natural gas, and that requires energy--and, unlike gasoline or 
biofuels, more energy is always required to produce it than is 
recovered when hydrogen is burned in a fuel cell. Hydrogen has 
the potential to reduce America's dependence on foreign oil, 
but the degree to which hydrogen will displace foreign energy 
supplies depends on what energy source is used to generate 
hydrogen gas in the first place.
    If hydrogen can be produced economically from energy 
sources that do not release carbon dioxide into the 
atmosphere--from renewable sources such as wind power or solar 
power, from nuclear power, or possibly from coal with carbon 
sequestration, then the widespread use of hydrogen as a fuel 
could make a major contribution to reducing the emission of 
greenhouse gases.
    While the promise of hydrogen is great, so are the 
technical challenges. Experts suggest that major advances will 
be required across a wide range of technologies for hydrogen to 
be affordable, safe, cleanly produced, and readily distributed. 
The production, storage, and use of hydrogen all present 
significant technical challenges. While Department of Energy 
(DOE) research programs have produced promising advances, much 
work must still be done to meet the goal of developing 
economically viable hydrogen technologies.
    Prizes are one tool the Federal government can employ to 
stimulate efforts to overcome such technical hurdles. A 1999 
National Academy of Engineering (NAE) panel examining the use 
of prizes by federal agencies suggested the following design 
principles for prize programs:
      1. Treatment of intellectual property resulting from 
prize contests should be properly aligned with the objectives 
and incentive structure of the prize contest.
      2. Contest rules should be seen as transparent, simple, 
fair, and unbiased.
      3. Prizes should be commensurate with the effort required 
and goals sought.
    The Act establishes three types of prizes that are in 
keeping with the principles laid out by the NAE:
      1. Biennial prizes for advancements in each of hydrogen 
storage, hydrogen production, hydrogen use and hydrogen 
distribution;
      2. A goal-oriented, biennial contest for prototypes that 
meet objective contest criteria established in advance; and
      3. A prize of at least $10 million for a goal-oriented 
contest for the best invention that leads to transformational 
changes in the distribution or production of hydrogen. Winners 
of this prize could also receive matching funds for every 
dollar of private funding raised by the winner for 
commercialization of their winning technology.

                          IV. HEARING SUMMARY

    On February 7, 2002, the House Committee on Science held a 
hearing titled The Future of DOE's Automotive Research 
Programs. The hearing addressed the Administration's newly 
announced FreedomCAR program, and examined how it compared with 
the Partnership for a New Generation of Vehicles (PNGV) 
program. The Committee heard testimony from the Hon. David K. 
Garman, Assistant Secretary for Energy Efficiency and Renewable 
Energy, DOE; Dr. Vernon P. Roan, Vice Chair, National Research 
Council Panel on the Partnership for a New Generation of 
Vehicles and Professor and Director, Fuel Cell Laboratory, 
Mechanical Engineering Department, University of Florida at 
Gainesville; Dr. Daniel Sperling, Director, Institute of 
Transportation Studies and Professor of Civil & Environmental 
Engineering, University of California at Davis; and Mr. Ross 
Witschonke, Vice President of Electrics and Power Electronics, 
Ballard Power.
    On June 24, 2002, the Energy Subcommittee of the House 
Committee on Science held a hearing titled Fuel Cells: The Key 
to Energy Independence? The hearing focused on developments in 
hydrogen fuel cell R&D and in the fuel cell business, and 
provided a broad overview of fuel cells for all applications, 
not just transportation. The Subcommittee heard testimony from 
Dr. Hermann Grunder, Director, Argonne National Laboratory; Mr. 
Robert Culver, Executive Director, United States Council for 
Automotive Research; Mr. Stan Borys, Executive Vice President 
and Chief Operating Officer, Gas Technology Institute; Mr. Jeff 
Serfass, President, National Hydrogen Association; Mr. James 
Uihlein, Fuels Project Manager, BP; and Mr. Elias (Lee) Camara, 
Vice President, H2Fuels.
    On June 26, 2002, the Energy Subcommittee of the House 
Committee on Science held a hearing titled FreedomCAR: Getting 
New Technology into the Marketplace, which primarily solicited 
views on the best ways to proceed with automotive research and 
development (R&D) and how to integrate advanced technologies 
into production vehicles that can gain customer acceptance. One 
of the recurring questions was the `chicken and egg' problem 
with hydrogen fuel cells, i.e., how can you establish an 
effective hydrogen infrastructure before there are great 
numbers of fuel cell vehicles? The Subcommittee heard testimony 
from Mr. Amory B. Lovins, Chief Executive Officer, Rocky 
Mountain Institute; Dr. Byron McCormick, Executive Director, 
Fuel Cell Activities, General Motors Corporation; Mr. Doug 
Rothwell, President and Chief Executive Officer, the Michigan 
Economic Development Corporation; Mr. Roger Saillant, 
President, Plug Power, Inc.; Mr. Robert Templin, Member of the 
Board of Directors, PAICE Corporation.
    On March 5, 2003, the House Committee on Science held a 
hearing titled The Path to a Hydrogen Economy on the 
President's Hydrogen Initiative, which is intended to enable 
the transition to an economy powered by hydrogen. Witnesses 
testified that, if the widespread use of hydrogen is to become 
a reality, significant advances must be made, not only in 
vehicle technology, but also in hydrogen production and the 
infrastructure necessary to deliver it. The hearing focused on 
the barriers to a hydrogen economy, and how the President's 
initiative might address those barriers. The Committee heard 
testimony from the Hon. David K. Garman, Assistant Secretary 
for Energy Efficiency and Renewable Energy, DOE; Dr. Alan C. 
Lloyd, 2003 Chairman, California Fuel Cell Partnership; Dr. 
Joan Ogden, Research Scientist, Princeton Environmental 
Institute; Dr. Larry Burns, Vice President, Research, 
Development and Planning, General Motors Corporation; and Mr. 
Don Huberts, Chief Executive Officer, Shell Hydrogen.
    On March 3, 2004, the House Committee on Science held a 
hearing titled Reviewing the Hydrogen Fuels and FreedomCar 
Initiatives. Specifically, the hearing focused on two recent 
reports from the National Academy of Sciences (NAS) and the 
American Physical Society (APS) on DOE's hydrogen initiatives, 
and the Administration's response to the reports' 
recommendations for changes to the Administration's programs. 
The Committee heard testimony from the Hon. David K. Garman, 
Assistant Secretary for Energy Efficiency and Renewable Energy, 
DOE; Dr. Michael Ramage, Chair of the NAS Committee on 
Alternatives and Strategies for Future Hydrogen Production and 
Use; and Dr. Peter Eisenberger, Chair of the APS Panel on 
Public Affairs Energy Subcommittee.
    On July 20, 2005, the Energy and Research Subcommittees of 
the House Committee on Science held a joint hearing titled 
Funding the Future: On the Road to a Hydrogen Economy to 
examine the progress that had been made in hydrogen research 
since the launch of the President's Hydrogen Initiative and the 
next steps the Federal government should take to best advance a 
hydrogen economy. The Subcommittees heard testimony from Mr. 
Douglas Faulkner, Acting Assistant Secretary for Energy 
Efficiency and Renewable Energy, DOE; Dr. David Bodde, Director 
of Innovation and Public Policy, Clemson University 
International Center for Automotive Research; Mr. Mark 
Chernoby, Vice President for Advanced Vehicle Engineering, 
DaimlerChrysler Corporation; Dr. George Crabtree, Director, 
Materials Science Division, Argonne National Laboratory; and 
Dr. John Heywood, Director, Sloan Automotive Laboratory, 
Massachusetts Institute of Technology.
    On April 27, 2006, the House Committee on Science held a 
hearing titled H.R. 5143, the H-Prize Act of 2006. The 
Committee heard testimony from Mr. Phillip Baxley, President, 
Shell Hydrogen; Dr. David Bodde, Director of Innovation and 
Public Policy, Clemson University International Center for 
Automotive Research; Dr. Peter Diamandis, Chairman, X Prize 
Foundation, a non-profit organization dedicated to fostering 
innovation through the use of competitions; and Dr. David L. 
Greene, Corporate Fellow, Oak Ridge National Laboratory. All 
four witnesses expressed support for the creation of a hydrogen 
prize. Dr. Diamandis emphasized the ability of prizes to 
attract many times the value of the purse in private investment 
by generating excitement and publicity. He noted that it is 
important to formulate the goals and the size of each prize 
carefully, and that a prize needs to be properly sized to both 
attract attention and to efficiently employ the resources 
available. Dr. Bodde testified that the H-Prize program should 
operate with several principles in mind: the prizes must be 
offered reliably and for a period long enough to bring in new 
participants; funds must supplement rather than compete with 
the core hydrogen research funding; and administration of the 
prize program must carefully document its experience, learn 
from that experience, and adapt accordingly. Dr. Greene 
testified that creating the H-Prize cannot substitute for 
adequately funding research, development and demonstration. Mr. 
Baxley testified that prizes could bring additional 
participants into efforts to use hydrogen more widely and that 
finding the most efficient and marketable way to develop a 
prize is something the government is in the position to 
promote. Both Dr. Diamandis and Dr. Greene suggested that 
amendments to the bill could help clarify the division of 
duties between the Secretary and the private entity that would 
administer the prize. Several witnesses, in response to 
questions, also indicated that the prize program could be 
successful with a prize of less than $100 million.

                          V. COMMITTEE ACTIONS

    On January 23, 2007, Science and Technology Committee Vice 
Chairman Daniel Lipinski, for himself and Energy and 
Environment Subcommittee Ranking Member Robert Inglis, Research 
and Science Education Subcommittee Ranking Member Vernon 
Ehlers, Rep. Eddie Bernice Johnson, Rep. Michael McCaul, Rep. 
David Reichert and 20 other co-sponsors introduced H.R. 632, 
The H-Prize Act of 2007.
    The Energy and Environment Subcommittee met on Thursday, 
May 10, 2007, to consider the bill. Mr. Inglis moved that the 
Subcommittee favorably report the bill, H.R. 632, to the Full 
Committee. The motion was agreed to by a voice vote.
    The Full Committee on Science and Technology met on 
Wednesday, May 23, 2007 to consider the bill. An amendment in 
the nature of a substitute was offered by Ranking Member 
Inglis. The amendment clarified duties of the Secretary and the 
administering entity, required a report to Congress about award 
recipients and the technologies developed, and made other 
clarifying, minor, and technical changes to the bill. The 
amendment was agreed to by a voice vote.
    The motion to adopt the bill, as amended, was agreed to by 
a voice vote. Mr. Hall moved that the Full Committee favorably 
report the bill, H.R. 632, as amended, to the House with the 
recommendation that the bill, as amended, do pass, and that the 
staff be instructed to prepare the legislative report and make 
necessary technical and conforming changes, and that the 
Chairman take all necessary steps to bring the bill before the 
House for consideration. The motion was agreed to by a voice 
vote.

        VI. SUMMARY OF MAJOR PROVISIONS OF THE BILL, AS REPORTED

    Creates a prize program at DOE for advances in hydrogen 
technologies to be administered through a private, non-profit 
entity (``the administering entity''). DOE is to award three 
types of prizes (described below).
    Establishes prizes of not more than $1 million to be 
awarded every other year to the best technology advancements in 
components or systems related to each of hydrogen production, 
hydrogen storage, hydrogen distribution, and hydrogen 
utilization.
    Establishes a prize of not more than $4 million to be 
awarded for prototypes of hydrogen-powered vehicles or 
hydrogen-based products that best meet or exceed objective 
performance criteria. Awards for the prototype prize are to be 
given in alternate years from the technology advancement 
prizes.
    Establishes a prize of at least $10 million to be awarded 
for transformational changes in technologies for the production 
and distribution of hydrogen that meet or exceed far-reaching 
objective criteria. Limits the federal contribution to 
$10,000,000, and sets a private fundraising goal of 
$40,000,000. Prize money over $10,000,000 may be provided as 
matching funds for every dollar of private funding raised by 
the winner for the continued development and commercialization 
of their winning technology.
    Enumerates duties of the ``administering entity.'' These 
include broad advertising of the prizes and their results, 
fundraising for administrative costs and cash prizes (which may 
include the sale of naming rights to the prizes), working with 
the Secretary to develop prize criteria based on goals provided 
by the Secretary; working with the Secretary to determine the 
appropriate prize amounts to be awarded under the 
transformational changes prize category; and selecting judges 
using criteria developed in consultation with the Secretary. 
Prize criteria, Federal funding, and judge selection are 
subject to final approval by the Secretary.
    Requires a report to Congress identifying award recipients, 
the technologies developed by each award recipient, and actions 
being taken toward commercial application of these 
technologies.
    Authorizes $20 million for advancements in components, $20 
million for advancements in prototypes, and $10 million for 
transformational changes for the period encompassing fiscal 
years 2008 through 2017, with funds expiring 10 fiscal years 
after the fiscal year in which they were appropriated. Also 
authorizes $2 million for administrative costs for each of 
fiscal years 2008 and 2009.

                    VII. SECTION-BY-SECTION ANALYSIS

Section 1. Short title

    The H-Prize Act of 2007

Sec. 2. Definitions

    Defines Administering Entity, Department and Secretary.

Sec. 3. Prize authority

    Requires the Secretary of Energy to create a prize to 
advance the research, development, demonstration and commercial 
application of hydrogen energy technologies.
    Requires the Secretary to advertise the prize competitions 
widely to encourage broad participation, including outreach to 
historically black colleges and universities, other minority 
serving institutions, as well as large and small businesses, 
including minority and disadvantaged businesses. Includes a 
specific direction to announce the prize competitions through 
publication of a Federal Register notice.
    Requires the Secretary to enter into an agreement with a 
private, non-profit entity to administer the prize 
competitions. Enumerates the duties of the administering entity 
to include advertising the prizes and their results, 
fundraising for administrative costs and cash prizes (which may 
include the sale of naming rights to the prizes), working with 
the Secretary to develop prize criteria based upon goals 
provided by the Secretary, working with the Secretary to 
determine the appropriate amounts for prizes awarded under the 
transformational changes category described in section 4, 
selecting judges using criteria developed in consultation with 
the Secretary, and preventing the unauthorized use or 
disclosure of a registered participant's trade secrets and 
confidential business information. Clarifies that prize 
criteria, Federal funding, and judge selection are subject to 
final approval by the Secretary.
    Authorizes the Secretary to use funding directly 
appropriated for such purposes to the Department of Energy 
(DOE) or other agencies and to accept funds provided by private 
entities or individuals. Prohibits the announcement of any 
prize competition until sufficient funds are available. Sunsets 
the authority to award prizes in 2018.

Sec. 4. Prize categories

    Defines prize categories for:
    (i) Components or Systems. Establishes up to four $1 
million prizes awarded every other year to the best 
advancements in technologies, components, or systems related to 
hydrogen production, hydrogen storage, hydrogen distribution, 
and hydrogen utilization. Provides the Secretary the discretion 
to reduce the amount or number of prizes based upon the 
availability of funds.
    (ii) Prototypes. Establishes one $4 million prize for 
prototypes of hydrogen-powered vehicles or hydrogen-based 
products that best meet or exceed objective performance 
criteria. Awards prototype prizes in years alternate with the 
technology advancements prize. Prohibits the Secretary from 
awarding the prize if no entrant meets the objectively defined 
performance criteria.
    (iii) Transformational Changes. Establishes a minimum 
$10,000,000 lump sum prize award for transformational changes 
in technologies for the production and distribution of hydrogen 
that meet or exceed far-reaching objective criteria. Limits the 
federal contribution to $10,000,000, and sets a private 
fundraising goal of $40,000,000 for prize money provided as 
matching funds for every dollar of private funding raised by 
the winner for the continued development of their winning 
technology.
    Requires the Secretary to establish contest criteria 
through consultation with the Hydrogen Technical Advisory 
Committee and other federal agencies including the National 
Science Foundation. States that the Secretary also may consult 
with private organizations including the National Academy of 
Sciences and National Academy of Engineering. Requires the 
Secretary, in consultation with the administering entity, to 
appoint contest judges from the private sector and agencies 
outside DOE. Excludes judges, their spouses, minor children, or 
other members of their household who may have a personal or 
financial relationship with any contest participant.

Sec. 5. Eligibility

    Requires contestants to register through the process 
published in the Federal Register. Requires contestants be 
incorporated and maintain a primary place of business in the 
U.S. if a private entity, and must be a U.S. citizen if an 
individual. Excludes from participation any Federal entities or 
Federal or national laboratory employees while on duty.

Sec. 6. Intellectual property

    Waives claims by the Federal government to any intellectual 
property rights derived from participation in the prize 
competitions.

Sec. 7. Liability

    Requires contestants to waive claims against the Federal 
Government resulting from participation in prize competition 
activities. Requires contestants to have liability insurance 
against damages resulting from participation in any prize 
competition activity and to name the Federal Government as an 
additional insured entity.

Sec. 8. Report to Congress

    Requires the Secretary to submit a report to Congress, no 
later than 60 days after awarding the first prize, which 
identifies each award recipient, describes the technologies 
developed, and specifies actions taken toward commercial 
application of the technologies for which a prize has been 
awarded.

Sec. 9. Authorization of Appropriations

    Authorizes $20 million for advancements in components, $20 
million for advancements in prototypes, and $10 million for 
transformational changes for the period encompassing fiscal 
years 2008 through 2017, with funds expiring 10 fiscal years 
after the fiscal year in which they were appropriated. 
Authorizes $2 million for administrative costs for each of 
fiscal years 2008 and 2009.

Sec. 10. Nonsubstitution

    Expresses a sense of the Congress that the prize 
competitions shall not act as a substitute for any research and 
development programs.

                          VIII. COMMITTEE VIEW

Commercialization of awarding winning technologies

    While Section 6 of this Act prohibits the Department of 
Energy from requiring participants to surrender intellectual 
property rights as a condition of participating or winning an 
award in a competition, the Department has an interest in 
making sure that technologies that win awards are 
commercialized. Section 3(a) explains that the awards program 
shall advance commercial application of hydrogen energy 
technologies and in Section 3(b)(2) the Secretary has the duty 
to establish the eligibility requirements for participation in 
the contest including those that advance commercial 
application. These may include commercialization plans and 
attestations by contestants that if they win a prize they will 
take specific actions to assure their best efforts towards 
achieving the projected application of the award-winning 
technologies within a reasonable time. Furthermore, nothing in 
this Act precludes any agency of the Federal Government, which 
is otherwise so empowered, from furthering commercialization of 
hydrogen technologies, by negotiating for licenses for the use 
of intellectual property developed for a prize competition 
under this Act.

                           IX. COST ESTIMATE

    A cost estimate and comparison prepared by the Director of 
the Congressional Budget Office under section 402 of the 
Congressional Budget Act of 1974 has been timely submitted to 
the Committee on Science and Technology prior to the filing of 
this report and is included in Section X of this report 
pursuant to House Rule XIII, clause 3(c)(3).
    H.R. 632 does not contain new budget authority, credit 
authority, or changes in revenues or tax expenditures. Assuming 
that the sums authorized under the bill are appropriated, H.R. 
632 does authorize additional discretionary spending, as 
described in the Congressional Budget Office report on the 
bill, which is contained in Section X of this report.

              X. CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

H.R. 632--H-Prize Act of 2007

    Summary: H.R. 632 would authorize the appropriation of $54 
million over the 2008-2017 period to the Department of Energy 
(DOE) to award cash prizes to individuals, universities, and 
businesses that make significant advances in the field of 
hydrogen energy. Based on goals set forth by DOE, prizes would 
be awarded every two years for the most significant 
advancements in hydrogen production, storage, distribution, and 
utilization as well as the development of a prototype for a 
hydrogen-powered vehicle or hydrogen-based product. CBO 
estimates that implementing H.R. 632 would cost $30 million 
over the 2008-2012 period, assuming the appropriation of the 
necessary funds. An additional $24 million would be spent after 
2012. Enacting H.R. 632 would have no effect on direct spending 
or revenues.
    H.R. 632 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA); 
any costs to public institutions of higher education would be 
incurred voluntarily.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 632 is shown in the following table. 
The costs of this legislation fall within budget function 250 
(general science, space, and technology).

------------------------------------------------------------------------
                                      By fiscal year, in millions of
                                                 dollars--
                                 ---------------------------------------
                                   2008    2009    2010    2011    2012
------------------------------------------------------------------------
              CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Estimated Authorization Level...      16       6       4       4       4
Estimated Outlays...............       2      16       4       4       4
------------------------------------------------------------------------

    Basis of estimate: H.R. 632 would authorize the 
appropriation of $54 million over the 2008-2017 period for the 
Department of Energy (DOE) to award cash prizes for 
achievements in the development of hydrogen energy 
technologies. Such amounts include $50 million for cash prizes, 
and $4 million for DOE to enter into an agreement with a 
private, nonprofit entity to administer the program. For this 
estimate, CBO assumes that the bill will be enacted in fiscal 
year 2007 and that the amounts authorized by the bill will be 
appropriated over 10 years, beginning with fiscal year 2008.
    Under the bill, prize competitions would be held over the 
next 10 years to encourage hydrogen energy research and 
development. Individuals, private, nonprofit organizations, and 
businesses would be eligible to compete for separate prizes of 
up to $1 million for demonstrating a significant advancement in 
hydrogen production, storage, distribution, or utilization, or 
up to $4 million for developing a prototype of a hydrogen-
powered vehicle or hydrogen-based product. Competitions in 
these areas would be held every two years up until 2018, when 
the authority to make such awards would expire. A separate one-
time competition would be held to award $10 million for an 
innovation that transforms the distribution or production of 
hydrogen.
    For this estimate, CBO expects that prize announcements 
would be made in the year funds are appropriated and that final 
awards would be made in the following year. We expect that $2 
million in administrative costs would be incurred in each of 
fiscal years 2008 and 2009. This estimate also assumes that the 
$10 million prize will be awarded in 2009. CBO estimates that 
implementing H.R. 632 would cost $2 million in 2008 and $30 
million over the 2008-2012 period, assuming the appropriation 
of the necessary funds. An additional $24 million would be 
spent after 2012.
    Intergovernmental and private-sector impact: H.R. 632 
contains no intergovernmental or private-sector mandates as 
defined in UMRA. Funding authorized in the bill may benefit 
public institutions of higher education that compete for funds 
in connection with hydrogen research. Any costs to comply with 
the requirements of the competition, including obtaining 
liability insurance, would be incurred voluntarily.
    Estimate prepared by: Federal Costs: Daniel Hoople; Impact 
on State, Local, and Tribal Governments: Lisa Ramirez-Branum; 
Impact on the Private Sector: Amy Petz.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                  XI. COMPLIANCE WITH PUBLIC LAW 104-4

    H.R. 632 contains no unfunded mandates.

         XII. COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

    The oversight findings and recommendations of the Committee 
on Science and Technology are reflected in the body of this 
report.

      XIII. STATEMENT ON GENERAL PERFORMANCE GOALS AND OBJECTIVES

    Pursuant to clause (3)(c) of House rule XIII, the goals of 
H.R. 632 are to create a prize program at DOE that awards three 
types of prizes for advances in hydrogen technologies to be 
administered through a private, non-profit entity (``the 
administering entity'') and through the prize program to 
accelerate the movement within the United States towards the 
commercial availability of hydrogen-based fuel.

                XIV. CONSTITUTIONAL AUTHORITY STATEMENT

    Article I, section 8 of the Constitution of the United 
States grants Congress the authority to enact H.R. 632.

                XV. FEDERAL ADVISORY COMMITTEE STATEMENT

    H.R. 632 does not establish nor authorize the establishment 
of any advisory committee.

                 XVI. CONGRESSIONAL ACCOUNTABILITY ACT

    The Committee finds that H.R. 632 does not relate to the 
terms and conditions of employment or access to public services 
or accommodations within the meaning of section 102(b)(3) of 
the Congressional Accountability Act (Public Law 104-1).

                      XVII. EARMARK IDENTIFICATION

    H.R. 632 does not contain any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9(d), 9(e), or 9(f) of rule XXI.

     XVIII. STATEMENT ON PREEMPTION OF STATE, LOCAL, OR TRIBAL LAW

    This bill is not intended to preempt any state, local, or 
tribal law.

       XIX. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    The bill does not change existing law.

                     XX. COMMITTEE RECOMMENDATIONS

    On May 23, 2007, the Committee on Science and Technology 
favorably reported H.R. 632, as amended, by a voice vote and 
recommended its enactment.


   XXI. PROCEEDINGS OF THE MARKUP BY THE SUBCOMMITTEE ON ENERGY AND 
            ENVIRONMENT ON H.R. 632, THE H-PRIZE ACT OF 2007

                              ----------                              


                         THURSDAY, MAY 10, 2007

                  House of Representatives,
            Subcommittee on Energy and Environment,
                       Committee on Science and Technology,
                                                    Washington, DC.

    The Subcommittee met, pursuant to call, at 10:15 a.m., in 
Room 2318 of the Rayburn House Office Building, Hon. Nick 
Lampson [Chairman of the Subcommittee] presiding.
    Chairman Lampson. The Subcommittee on Energy and 
Environment will come to order. Pursuant to notice, the 
Subcommittee on Energy and Environment needs to consider the 
following measures: H.R. 364, To provide for the establishment 
of the Advanced Research Projects Agency-Energy, and H.R. 632, 
the H-Prize Act of 2007.
    We will now proceed with the markup beginning with opening 
statements and I will begin.
    Today we will consider two bills that represent another 
step of the Committee's effort to push the envelope of 
technological possibility and provide the American people a 
future with cheaper, cleaner and better energy options.
    For decades my district has been synonymous with oil and 
gas or energy generally. To a large extent it has been the 
economic foundation for that area, for the great State of Texas 
and even for the Nation. And the truth is that we should expect 
that oil, gas and other traditional sources of energy such as 
coal and nuclear will provide much of our nation's energy for 
decades to come.
    But the winds of change are indeed blowing. And the folks 
in my district know as well as anyone the predicament that we 
face in sky-high energy prices, the environmental impacts of 
our energy use and the critical need for maintaining jobs in 
the energy sector.
    In this respect, the Nation faces a challenge like none we 
have encountered before. Unlike the Apollo and Manhattan 
Projects which galvanized our nation's scientists to win a 
global race to put a man on the Moon or create a ``weapon to 
end all wars'' there is no finish line in this race. We are 
attempting to transform a national and to some extent global 
economy which is based on only a handful of unsustainable 
energy resources. Resources that we know will simply not last.
    Despite their remarkable technological advances, we cannot 
expect the energy industry and the current programs at the 
Department of Energy to tackle these problems on their own. 
Only through ground-breaking research and the development of 
truly transformational technologies can we begin to match up to 
the scale and the complexity of these challenges.
    Now this requires from us a rock solid commitment to 
innovative energy R&D and a leap of faith that somewhere on the 
shelves of our national labs or in the garages in our nation's 
inventors or in the halls of research universities there are 
discoveries and technologies waiting to be exploited by a new 
energy industry.
    The two bills that we are here to mark up today represent 
the kind of bold efforts that are needed in advancing energy 
research and ensuring that the United States maintains a lead 
in these emerging technology fields. Therefore, I urge their 
passage and look forward to getting them to the House Floor.
    [The prepared statement of Chairman Lampson follows:]
              Prepared Statement of Chairman Nick Lampson
    Today we will consider two bills that represent another step in 
this committee's efforts to push the envelope of technological 
possibility, and provide the American people a future with cheaper, 
cleaner, better energy options.
    For decades my district has been synonymous with oil and gas (or 
Energy, generally). To a large extent it has been the economic 
foundation for this area, for the great State of Texas, and even for 
the Nation.
    And the truth is that we should expect that oil, gas and other more 
traditional sources of energy, such as coal and nuclear, will provide 
much of our nation's energy for decades to come.
    But the winds of change are blowing, and the folks in my district 
know as well as anyone the predicament we face in sky-high energy 
prices, the environmental impacts of our energy use, and the critical 
need for maintaining jobs in the energy sector.
    In this respect, the Nation faces a challenge like none we have 
encountered before. Unlike the Apollo and Manhattan projects, which 
galvanized our nation's scientist to win a global race to put a man on 
the Moon, or create a ``weapon to end all wars,'' there is no finish 
line in this race.
    We are attempting to transform a national, and to some extent 
global, economy which is based on only a handful of unsustainable 
energy resources. Resources that we know will simply not last.
    Despite their remarkable technological advances, we can't expect 
the energy industry, and the current programs at the Department of 
Energy to tackle these problems on their own.
    Only through ground-breaking research, and the development of truly 
transformational technologies, can we begin to match up to the scale 
and complexity of these challenges.
    This requires from us a rock-solid commitment to innovative energy 
R&D, and a leap of faith that somewhere on the shelves of our national 
labs, in the garages of our nation's inventors, and in the halls of our 
research universities, there are discoveries and technologies waiting 
to be exploited by a new energy industry.
    The two bills that we are here to markup today represent the kind 
of bold efforts that are needed in advancing energy research, and 
ensuring the U.S. maintains a lead in these emerging technology fields.
    Therefore I urge their passage, and look forward to getting them to 
the House Floor.

    Chairman Lampson. I will now recognize Mr. Inglis to 
present his opening remarks.
    Mr. Inglis. And I thank the Chairman for yielding. First of 
all, we are very happy to have you back in the Chair, Mr. 
Lampson. It is----
    Chairman Lampson. Thank you very----
    Mr. Inglis.--great to----
    Chairman Lampson.--very much.
    Mr. Inglis.--have you back. You are looking great and----
    Chairman Lampson. Thank you.
    Mr. Inglis.--healthy and all of that, so we are--now you 
had some capable folks filling in for you, you understand. But 
we are----
    Chairman Lampson. I am very appreciative----
    Mr. Inglis.--but we are happy to have you back, so----
    Chairman Lampson. Thank you very much.
    Mr. Inglis.--and, you know, it is helpful to be here today 
talking about energy and two different bills that can help us 
achieve some of the objectives that we have got.
    Sometimes people wonder about those objectives. My wife was 
at a gathering a couple of months ago and a lady told her Bob 
has got to stop talking about energy so much. We are tired of 
hearing from him about energy. And I would note that as the 
price of gasoline is now above three dollars a gallon that 
probably Marianne would have a different message coming from 
that lady now and that it is good to focus a lot on energy. So 
it depends on what the price at the pump is as to whether we 
think it is a great thing to focus on.
    But the objective of these bills today is to look long-term 
and not to the gas prices that fluctuate up and down based on 
the month. I do hope that we take the message from those gas 
prices, that they are volatile. They will go up and down. But 
the long-term trajectory has to be up. And so therefore we are 
looking for energy sources besides those.
    And so today two bills that help us get to there--to that 
place of energy independence we hope one is, ARPA-E which is 
designed to create breakthrough technology opportunities and 
the other, the H-Prize Bill, which is even a little bit longer 
term proposition but something that can hopefully lead us to a 
new source of energy. So we are happy to be here marking up 
these bills, Mr. Chairman. And I have got the more complete 
opening statement that I would like to submit for the record.
    Chairman Lampson. With no--without objection.
    [The prepared statement of Mr. Inglis follows:]
            Prepared Statement of Representative Bob Inglis
    Thank you, Mr. Chairman, for holding this markup on the 
establishment of the H-Prize and ARPA-E. The bills we discuss today 
represent a common goal: harnessing American innovation to meet our 
need for energy and improve our energy security.
    One hundred years ago, the space travel concept was madness. Forty 
years ago, only a select group of elite astronauts could visit the 
Moon. Ten years ago, just a handful of visionaries thought that the 
highway to space would soon open to all travelers. Today, paying 
customers can pre-book flights to space, and in two years, from their 
seat on a space plane, they will take digital pictures of the Earth to 
share with their friends and family back home.
    Twelve short years mark the gap between science fiction and 
commercial space flight. Imagination and innovation bridged the gap. In 
1996, Peter Diamandis joined forces with the Ansari family of investors 
and created the X-Prize, offering $10 million to the first reusable 
sub-orbital space vehicle. Eight years later, Burt Rutan's SpaceshipOne 
won the prize, launching into sub-orbital space flight twice in two 
weeks. Shortly after, Richard Branson teamed up with Rutan, and Virgin 
Galactic will soon convert a space-age science project into a new 
tourist industry.
    The energy industry in 2007 looks a lot like the space flight 
sector did in 1996. We've seen important incremental gains, but overall 
innovation has slowed. We depend on volatile fossil fuels, scratch our 
head at how to deal with carbon emissions, and get more and more 
frustrated with each cent increase in the cost of gasoline. We know 
that there has to be a better way to do energy.
    Taking a prize approach to the energy problem allows our 
imagination to run with the prospects of coupling a pioneering vision 
with a hydrogen prize, or H-Prize, incentive for innovation in hydrogen 
energy. Our history tells us that what starts with an imaginative dream 
or vision typically finishes in a legacy of American innovation. 
There's a multi-billion, if not trillion, dollar industry that we can 
create from a hydrogen energy source free of emissions, renewable, 
cost-effective, and American-made.
    Imagine an inventor in Spartanburg, SC and an entrepreneur in 
Greenville teaming up to work on the challenge of hydrogen storage. The 
entrepreneur secures a license for metal hydride storage material from 
the Hydrogen Research Center at the Savannah River National Lab. The 
inventor is a retiree from the Oak Ridge National Lab, with a lifetime 
of experience in alternative fuels. They've heard about the H-Prize, 
and it's provided the spark to light the fuse of their imagination. The 
Discovery Channel has a new idea for a show on alternative fuels, and 
has agreed to follow their progress.
    They set to work improving the material to store more hydrogen at 
lower weight, and a year later they submit their work to the H-Prize 
judging panel for best incremental gain in storage technology. Their 
careful work wins the prize, and they've got $1 million to show for it. 
They use part of the money to pay their investors, but they convince 
their investors that they could win even bigger in the prototype 
competition. They assemble a small team and get to work.
    After a year of all-nighters and Ramen noodles, they have their 
prototype for a storage subsystem. The Discovery Channel has the 
beginnings of a new reality show (who knew scientists could be so 
caddy?). Their metal hydride dust could fill the frame of a car, safely 
providing the hydrogen fuel and eliminating the need for a fuel tank. 
BMW loves the idea and before their team even won the $4 million prize 
for best prototype, BMW is competing to license their technology for 
the next version of the Hydrogen 7 sedan.
    Now the team's investors are really buzzing. They've partnered with 
automotive engineering departments at several universities and are hard 
at work designing a new mass-producible vehicle at Clemson University's 
International Center for Automotive Research in Greenville. They've got 
their eyes on the grand prize for transformational technologies. Duke 
Power has become a partner to provide economical, carbon-free hydrogen 
from nuclear power. A local gasoline marketer has jumped in to help 
with distribution, offering modified fuel trucks running on biodiesel 
and pump space for hydrogen. Corporate investors from around the world 
are pitching in to get their logo--NASCARstyle--on the car, fueling 
station, and everything in between.
    The South Carolina team is only one of many around the country, but 
the Discovery Channel cameras testify that their hearts are in it to 
win. Over the course of five years, Team Palmetto assembles, jimmy-
rigs, and invents the technologies to take them to the top. The judges 
deem them the best, and they receive the $10 million cash prize for 
their hard work. Of course, at this point their investors see that more 
gains lie ahead, so the team easily raises $40 million in venture 
capital, which is matched by other private money for corporate 
sponsorship of the H-Prize. Within three years, their emission-free 
HyFlyer cars zipping along the East and West Coast Hydrogen Highways, 
in Europe, and even Japan and China.
    It's not so farfetched. The prize idea has worked in the past, from 
the Transcontinental Railroad, to Lindbergh and the Orteig Prize, to 
Burt Rutan and the X-Prize. Others see the prize working in the future: 
the Automotive X-Prize, Rep. Frank Wolf's NSF prize, Rep. Dan Lungren's 
Automotive Prize. H-Prize has the advantage of focusing on a far 
reaching technology where breakthroughs are needed and harnessing the 
American innovative and entrepreneurial spirit to tackle those 
challenges.
    Prize money is one seed from which energy technology and industry 
can grow. But it will not be the only source for energy breakthroughs. 
There is still a need for research and development funding for our 
nation's scientists, labs, and universities. The ARPA-E bill that we 
will markup today addresses a need to sponsor exploration in high-risk 
endeavors.
    ARPA-E research could offer a big payoff in the commercial energy 
market. At the same time, I already see real payoffs coming from 
existing DOE research, especially hydrogen, nuclear, wind, and solar 
programs. I'm concerned that the ARPA-E fund will divert funds away 
from these existing programs and jeopardize the advances we're already 
seeing in these areas. I hope that we can find a way to ensure this 
doesn't happen.
    Thank you again, Mr. Chairman, I look forward to working with you 
on these two bills.

    Mr. Inglis. Thank you. I look forward to the markup here.
    Chairman Lampson. Thank you very much, Ranking Member 
Inglis.
    We will now consider H.R. 632, the H-Prize Act of 2007.
    And I yield to Mr. Lipinski, five minutes, to describe this 
bill.
    Mr. Lipinski. Thank you, Mr. Chairman. We have to be here 
today for the markup of H.R. 632, the H-Prize Act of 2007, a 
bill that I introduced along with Ranking Member Inglis as one 
step in addressing global climate change and spurring national 
energy independence.
    This is the bill that we moved out of the Science Committee 
last year and we passed it on the House Floor by a vote of 416 
to six. It wound up being stalled in the other chamber last 
year, as many things are. This year we believe that this bill 
can be successfully steered through both chambers and sent to 
the President. So today we have the first step.
    It is obvious to all of us the damage being caused by our 
current energy economy. Gas prices have skyrocketed over the 
last few weeks. They continue to hit record highs, averaging 
over three dollars a gallon nationwide. But back home in my 
district it is around $3.50 a gallon. But then again, when I 
left last week, I was gone for three days and it went up about 
20 cents, so I am not sure where those prices are now. And the 
situation is inflicting pain on our constituents and our 
economy.
    But the cost of our addiction to oil not only affects our 
pocketbooks. It affects our environment and national security. 
We cannot continue to pollute our air and alter our climate 
with greenhouse gas emissions and we cannot continue to rely on 
energy sources from unstable parts of the world. We must find 
new solutions. And hydrogen has great potential to be a 
solution.
    Environmental promise is great. Using hydrogen as an energy 
source produces no emissions besides water. And hydrogen-fueled 
cars already exist. But the technical barriers and the economic 
barriers are significant. I believe the--one of the cars that I 
drove--hydrogen-fueled cars cost a couple million dollars, I 
think they said, to produce. Now what we have here in the H-
Prize Act, we are seeking to inspire researchers, entrepreneurs 
and the competitive spirit of others towards the surmount the 
barriers that we face right now and find specific solutions 
that will facilitate development and commercialization of 
hydrogen fuel. The H-Prize would help expand the possibility of 
hydrogen research, promoting people not normally involved in 
federal research and development, explore one of the greatest 
challenges facing us today.
    Specifically, this legislation would establish 
competitively awarded cash prizes to spur innovations that 
advance the use of hydrogen as a fuel for transportation. Every 
two years four one-million dollar prizes would be given for 
advances in production, storage, distribution, and utilization 
of hydrogen. And one four-million dollar prize would be awarded 
for advances in prototype hydrogen vehicles. And at the end of 
10 years, one grand prize of 10 million dollars would be given 
for a transformational advance in hydrogen energy technology.
    This prize will help us to take advantage of America's 
greatest resource: our ingenuity and creativity. We have some 
of the best and brightest minds in the world in the United 
States as well as an economy that supports and encourages 
entrepreneurship. And each prize will focus this inventiveness 
to address the greatest challenge that our country faces today.
    Energy independence is essential to national security. It 
is reducing the price at the pump. And investing in an 
alternative to fossil fuels such as hydrogen is a strong step 
in the right direction. I believe that the ARPA-E program which 
we just passed the bill on is also an important part of this. 
There is not one solution. There is not one bill that we are 
going to pass that we know is going to be the silver bullet. 
But there is much that we must do so that we can move ahead and 
move beyond the current energy economy that we have.
    And hydrogen, for one, holds enormous potential as a base 
of a future economy. And this is a potential that we should not 
ignore. Thank you, Mr. Chairman. And I yield back the balance 
of my time.
    [The prepared statement of Mr. Lipinski follows:]

          Prepared Statement of Representative Daniel Lipinski

    Thank you, Mr. Chairman; I am pleased to be here today for the 
markup of H.R. 632, the H-Prize Act of 2007, a bill I introduced--along 
with Ranking Member Inglis--as one step in addressing global climate 
change and spurring national energy independence.
    This is a bill that we moved out of the Science Committee last year 
and we passed on the House Floor by a vote of 416 to 6. Unfortunately 
the bill stalled in the other chamber last year. This year we believe 
that this bill can be successfully steered through both chambers and be 
sent to the President. Today we have the first step.
    It is obvious to all of us the damage being caused by our current 
energy situation. Gas prices have skyrocketed over the last few weeks 
and continue to hit record highs, averaging over $3 a gallon nationwide 
and in my district in the Chicago area around $3.50 per gallon. This 
situation is inflicting pain on our constituents and on our economy. 
But the costs of our addiction to oil not only affect our pocketbooks, 
they affect our environment and national security. We cannot continue 
to pollute our air and alter our climate with greenhouse gases 
emissions, and we cannot continue to rely on energy sources from 
unstable parts of the world. We must find new solutions and hydrogen 
has great potential to be a solution. The environmental promise is 
great. Using hydrogen as an energy source produces no emissions besides 
water. Zero polluting emissions. And hydrogen-fueled cars already 
exist. But the technical barriers and the economic barriers are 
significant.
    H.R. 632 seeks to inspire researchers, entrepreneurs, and others' 
competitive spirits to work to surmount these barriers and find 
specific solutions that will facilitate development and 
commercialization of hydrogen fuel. The H-Prize will help expand the 
possibilities of hydrogen research, promoting people not normally 
involved in federal research and development to explore one of the 
greatest challenges facing us today.
    Specifically, this legislation would establish competitively 
awarded cash prizes to spur innovations that advance the use of 
hydrogen as a fuel for transportation. Every two years, four $1 million 
prizes would be given for advances in the production, storage, 
distribution, and utilization of hydrogen, and one $4 million prize 
would be awarded for advances in prototype hydrogen vehicles. And at 
the end of ten years one grand prize of $10 million would be given for 
a transformational advance in hydrogen energy technology.
    This prize will help us take advantage of America's great 
resource--our ingenuity and creativity. We have some of the best and 
brightest minds in the world in the United States, as well as an 
economy that supports and encourages entrepreneurship, and the H-Prize 
will focus this inventiveness to address the greatest challenge that 
our country faces today.
    Energy independence is essential to national security and to 
reducing the price at the pump and investing in an alternative to 
fossil fuels such as hydrogen is a strong step in the right direction. 
Hydrogen holds enormous potential as the base of our future economy--a 
potential we cannot and must not ignore.
    Thank you, Mr. Chairman, and I encourage all of my colleagues to 
support the H-Prize Act.

    Chairman Lampson. Thank you very much. And I recognize Mr. 
Inglis for any remarks on this bill.
    Mr. Inglis. Thank you, Mr. Chairman. I would simply say 
this. We were able to get 416 votes for this bill in the last 
Congress. 416 to 6. And so hopefully we can do something like 
that again this Congress and it can pass the House and then get 
some action over in the Senate. I will anticipate some 
objections to it, that hydrogen is a ways away, perhaps. But as 
I think is clear, we did not get to the moon by waiting for it 
to come close. So we will not get to a hydrogen economy waiting 
for it to just sort of happen. We have to figure out ways to 
work toward it and employ the creative capacity of inventors 
and entrepreneurs out there similar to what we saw done in the 
X-Prize.
    And of course, the X-Prize is the foundation of the concept 
here. That is what--we borrowed heavily from them. And the last 
Congress had a very helpful hearing with Dr. Diamandis, of the 
X-Prize Foundation, who told us that what you have got to do is 
basically make sure that this does not become a middling U.S. 
Department of Energy kind of program. It must be a separate 
kind of prize that creates lift--media lift and attention and 
the opportunity to win a prize because the reality is we all 
work real hard to win prizes.
    United Way holds out, you know, a T-shirt and whoever can 
raise a certain amount gets this T-shirt--well, you could go 
buy the T-shirt for less than the money that you are going to 
spend trying to raise the money but you do it anyway because 
you want to win the prize. And that is what Diamandis told us. 
There is a real desire to win prizes and there is money and 
creative capacity that we unleashed out there, around the world 
really, in order to try to win the X-Prize. And hopefully we 
can do that with the H-Prize. So I am happy to be supportive of 
the bill. And I yield back.
    Chairman Lampson. Thank you very much. Who else seeks----
    Mr. Bartlett. Mr. Chairman?
    Chairman Lampson. Yes, Mr. Bartlett.
    Mr. Bartlett. I----
    Chairman Lampson. You are recognized for five minutes.
    Mr. Bartlett. Thank you. I strongly support this bill. Not 
because I think that hydrogen is going to play any big role in 
our energy future. Hydrogen, of course, is not an energy 
source. We have to make hydrogen from some other energy source 
and hydrogen will always contain less energy than the source 
that we made it from. It is either natural gas or electricity. 
And there may be other sources but those are two today.
    The attractiveness of hydrogen is that it does not pollute 
when you burn it. You just get water. After all, water is the 
oxide of hydrogen. But depending on how you made the hydrogen 
you may have polluted as much as you would pollute driving a 
gasoline car. So we have to be careful. But then it is all in 
one big place and you can control it better.
    The real attractiveness of hydrogen is it is a great 
candidate for a fuel cell if we ever get a fuel cell. But we 
are probably 20 years away from a fuel cell. Just burning 
hydrogen in a reciprocating engine does not make much sense. 
Because if you start out with electricity electroizing water 
you could have used the electricity to fill a battery and you 
could drive your car on the battery. As a matter of fact, in 
one of our Science Committee hearings three experts were there. 
And of the three ways that you might transport hydrogen--these 
are the lightest element in the universe that we know of. These 
molecules do not like their own company. They try to get as far 
apart as possible. So you have to really press real hard on 
them to get them close together. So if it is pressurized, it is 
really high pressure vessel to carry much hydrogen at all. The 
hydrogen airplane, by the way, would have the plane full of 
hydrogen and a couple of passengers hanging on the wings 
because the energy density is so low. But it is a great 
candidate for a fuel cell when we get a fuel cell.
    But the reason I am so strongly in support of this, I think 
this is a fantastic idea to give this award. And you know, the 
Romans would practice for how long to run in those races. And 
look at our people that go to the Olympics. I mean, it is a 
life goal. And what do they get from it? A silly little ribbon 
and a gold or silver or brass thing hanging around their neck. 
But look how they work for that. And I think the leverage of 
this is just incredible.
    If I added up the numbers right we are committing, what, 
$28 million to this or $18 million. $18 million. Four, four, 
four, four, four, and 10, right? 18 million dollars. I cannot 
imagine any better way to spend 18 million dollars. And I hope 
this is just the beginning of a lot of bills for prizes. There 
are a whole lot of things that we could give prizes for. And 
you pointed out very correctly, Mr. Inglis, that people work a 
heck of a lot harder for a prize than they will for their 
paycheck. So I think this is a great idea. And--not because I 
think hydrogen is going to be playing any meaningful role in 
our energy future. If we get fuel cells it will play a 
meaningful role in transportation.
    Oh, the three ways you can transport it. Push the molecules 
close together. Liquefy it. But then you have to have a big 
insulation that boils off at night. And the third way, which 
they said was going to be the way that if we ever had a 
hydrogen economy would work. And that is in solid state as a 
battery. And I see Counsel shaking his head in agreement. This 
is what they said. And I asked them is a hydrogen battery 
inherently more efficient than an electron battery and they did 
not know the answer. But I am still a big fan of this 
legislation because I think this is the kind of thing we need 
to be doing over and over again. Not just paying people to do 
something but challenge them to do something. This award will 
mean a whole lot more to them than a big paycheck would mean. 
So it is a great bill. Thank you very much.
    Chairman Lampson. Thank you, Mr. Bartlett. Who else seeks 
recognition? I have enjoyed the comments that everyone has 
made. And obviously it is critically important for us to be 
doing these kinds of things. Texas even was involved a little 
bit, trying to take a stand on--in a belief that a major facet 
of energy independence lies largely in hydrogen production. 
Hopefully we can find ways to do that.
    We recently had the National Hydrogen Convention in Texas 
and it was followed by a coalition sponsored by Ride and Drive 
of hydrogen powered vehicles. A lot of people doing different 
work. And the Canadians I think are more advanced with what 
they have been doing with--in comparison to the United States. 
I believe firmly that when we invest in these kinds of programs 
we get huge returns back.
    Who else seeks recognition? Anyone?
    Mr. Lipinski. I just want to quickly say I think I thank 
Dr. Bartlett for his support. I was not sure with all that he 
said and I have--I am certainly not going to argue with the 
good doctor here on--about the prospects for hydrogen. But I am 
a little more hopeful, maybe, but I thank you.
    Chairman Lampson. Anyone else seek recognition? I ask 
unanimous consent that the bill is considered as read and open 
to amendment at any point and that the Members proceed with the 
amendments in the order of the roster. Without objection, it is 
so ordered.
    Are there any amendments? Hearing none, the vote is on the 
bill, H.R. 632, the H-Prize Act of 2007. All those in favor say 
aye. All those opposed will say no.
    In the opinion of the Chair the ayes have it. I recognize 
Mr. Inglis to offer a motion.
    Mr. Inglis. Chairman, I move that the Subcommittee 
favorably report H.R. 632 as amended to the Full Committee. 
Furthermore, I move that the staff be instructed to prepare the 
Subcommittee legislative report and make necessary technical 
and conforming changes to the bill in accordance with the 
recommendations of the Subcommittee. And actually, there is no 
amendment to the bill so we are happy to have it as it was and 
present it.
    Chairman Lampson. Very good. I thank the Ranking Member. 
The question is on the motion to report the bill favorably. 
Those in favor of the motion will signify by saying aye. Those 
opposed no.
    The ayes have it. The bill is favorably reported. Without 
objection the motion to reconsider is laid upon the table. 
Subcommittee Members may submit additional and minority views 
on the measure. I would like to thank the Members for their 
attendance, everyone who stayed all the way through this thing. 
And this concludes our Subcommittee markup. We are adjourned. 
Thank you.
    [Whereupon, at 1:00 p.m., the Subcommittee was adjourned.]
                               Appendix:

                              ----------                              


                 H.R. 632, Section-by-Section Analysis






                Section-by-Section Analysis of H.R. 632,
                        the H-Prize Act of 2007

Section 1. Short Title.

    The H-Prize Act of 2007

Sec. 2. Definitions

    Defines Administering Entity, Department and Secretary.

Sec. 3. Prize Authority.

    Requires the Secretary of Energy to create a prize to advance the 
research, development, demonstration and commercial application of 
hydrogen energy technologies.
    Requires the Secretary to advertise the prize competitions widely 
to encourage broad participation, including outreach to historically 
black colleges and universities, other minority serving institutions, 
as well as large and small businesses, including minority and 
disadvantaged businesses. Includes a specific direction to announce the 
prize competitions through publication of a Federal Register notice.
    Requires the Secretary to enter into an agreement with a private, 
non-profit entity to administer the prize competitions. Enumerates the 
duties of the administering entity to include advertising the prizes 
and their results, fund-raising for administrative costs and cash 
prizes, working with the Secretary to develop prize criteria based upon 
goals provided by the Secretary, working with the Secretary to 
determine the appropriate amounts for prizes awarded under the 
transformational changes category described in section 4, selecting 
judges using criteria developed in consultation with the Secretary, and 
preventing the unauthorized use or disclosure of a registered 
participant's intellectual property, trade secrets, and confidential 
business information.
    Authorizes the Secretary to use funding directly appropriated for 
such purposes to the Department of Energy (DOE) or other agencies and 
to accept funds provided by private entities or individuals. Prohibits 
the announcement of any prize competition until sufficient funds are 
available. Sunsets the authority to award prizes in 2018.

Sec. 4. Prize Categories.

    Defines prize categories for:

          (i) Components or Systems. Establishes up to four $1 million 
        prizes awarded every other year to the best technology 
        advancements in components or systems related to hydrogen 
        production, hydrogen storage, hydrogen distribution, and 
        hydrogen utilization. Provides the Secretary the discretion to 
        reduce the amount or number of prizes based upon the 
        availability of funds.

         (ii) Prototypes. Establishes one $4 million prize for 
        prototypes of hydrogen-powered vehicles or hydrogen-based 
        products that best meet or exceed objective performance 
        criteria. Awards prototype prizes in years alternate with the 
        technology advancements prize. Prohibits the Secretary from 
        awarding the prize if no entrant meets the objectively defined 
        performance criteria.

        (iii) Transformational Changes. Establishes a minimum 
        $10,000,000 lump sum prize award for transformational changes 
        in technologies for the production and distribution of hydrogen 
        that meet or exceed far-reaching objective criteria. Limits the 
        federal contribution to $10,000,000, and sets a private fund-
        raising goal of $40,000,000 for prize money provided as 
        matching funds for every dollar of private funding raised by 
        the winner for the continued development of their winning 
        technology.

    Requires the Secretary to establish contest criteria through 
consultation with the Hydrogen Technical Advisory Committee, other 
federal agencies including the National Science Foundation, and private 
organizations including the National Academy of Sciences. Requires the 
Secretary to appoint contest judges from the private sector and 
agencies outside DOE. Excludes judges who may have a personal or 
financial relationship with any contest participant.

Sec. 5. Eligibility.

    Requires contestants to register through the process published in 
the Federal Register. Requires contestants be incorporated and maintain 
a primary place of business in the U.S. if a private entity, and must 
be a U.S. citizen if an individual. Excludes from participation any 
federal entities or Federal or national laboratory employees while on 
duty.

Sec. 6. Intellectual Property.

    Waives claims by the Federal Government to any intellectual 
property rights derived from participation in the prize competitions.

Sec. 7. Liability.

    Requires contestants to waive claims against the Federal Government 
resulting from participation in prize competition activities. Requires 
contestants to have liability insurance against damages resulting from 
participation in any prize competition activity and to name the Federal 
Government as an additional insured entity.

Sec. 8. Authorization of Appropriations.

    Authorizes $20 million for advancements in components, $20 million 
for advancements in prototypes, and $10 million for transformational 
changes for the period encompassing fiscal years 2008 through 2017, 
with funds expiring 10 fiscal years after the fiscal year in which they 
were appropriated. Authorizes $2 million for administrative costs for 
each of fiscal years 2008 through 2017.

Sec. 9. Non-substitution.

    Expresses a sense of the Congress that the prize competitions shall 
not act as a substitute for any research and development programs.


XXII. PROCEEDINGS OF THE FULL COMMITTEE MARKUP ON H.R. 632, THE H-PRIZE 
                              ACT OF 2007

                              ----------                              


                        WEDNESDAY, MAY 23, 2007

                  House of Representatives,
                       Committee on Science and Technology,
                                                    Washington, DC.

    The Committee met, pursuant to call, at 10:10 a.m., in Room 
2318 of the Rayburn House Office Building, Hon. Bart Gordon 
[Chairman of the Committee] presiding.
    Chairman Gordon. Good morning everyone. The Committee on 
Science and Technology will come to order. Pursuant to notice, 
the Committee meets to consider the following measures: H.R. 
364, To provide for the establishment of the Advanced Research 
Projects Agency-Energy; H.R. 1467, the 10,000 Trained by 2010 
Act; H.R. 1716, the Green Energy Education of 2007; and H.R. 
632, the H-Prize Act of 2007.
    Before we get started with this markup though, we have one 
quick piece of Committee business to attend to. The 
distinguished Member from California, Mr. Calvert, recently 
took a leave of absence from the Committee to serve on 
Appropriations. This left the Space and Aeronautics 
Subcommittee without a Ranking Member. Last week Mr. Hall 
announced that Representative Feeney would take over as Ranking 
Member of the Subcommittee, and I now ask unanimous consent 
that the Committee on Science and Technology ratify the 
selection of Mr. Feeney as Ranking Member of the Space and 
Aeronautics Subcommittee. Without objection----
    Mr. Hall. Mr. Chairman, do you have to be present to be 
proposed or----
    Chairman Gordon. Well, I am considering that no objection 
and--or may I say, I consider that a slight objection and it is 
so ordered. I want to congratulate Mr. Feeney.
    Let me also say that Ken Calvert--I was Ranking Member of 
this committee and Ken did much more than I did. He made an 
effort to go to every facility all across the country and 
became very knowledgeable and we hope that he will be a 
continuing asset and I am sure that Mr. Feeney will also do a 
good job, but Ken did a particularly good job and hopefully he 
will be there on Appropriations to understand these issues.
    We now begin with the markup and I will begin with a brief 
statement. Today the Committee is marking up four bills. The 
first bill we will consider is a bill that I introduced, H.R. 
364, which establishes the Advanced Research Project Agency for 
Energy, and in the Subcommittee hearing and in the markup we 
had a very healthy discussion that I believe pointed to the 
critical need for such an entity. We have worked hard with our 
friends from across the aisle, and while there are still a few 
differences, it has resulted in a better bill. It is my 
understanding that this discussion will continue today with a 
number of amendments, and I look forward to addressing those 
concerns.
    The next bill we will take up is H.R. 1467, the 10,000 
Trained by 2010 Act, introduced by Chairman Wu. This is a good 
bill which I support. There has been a lot of talking in 
Washington about the need to push health care IT forward. Our 
medical system is far behind other sectors in the use of 
information technology. However, it is common knowledge that 
information technology could significantly improve patient care 
and reduce health care costs, and let me just collaterally say 
that I have just introduced H.R. 2406. It is a health care IT 
bill that will be in the jurisdiction of this committee. As I 
think Mr. Gingerich can tell you, it is going to be wildly 
popular within the health care area, doctors, physicians, 
everyone. Health care IT or IT in the health care area is one 
of the few areas that hasn't really matured. It is so popular 
that Newt Gingerich and Hillary Clinton are supporting this 
concept and so I would suggest to all of you to take a look at 
it. Don't get involved if you don't want to but I think you 
will find that it will be something that is going to be a good 
bill and will be popular for you.
    And we also have H.R. 1716, the Green Energy Education Act 
of 2007. It was introduced by Mr. McCaul, and H.R. 1716 raises 
the profile of a very important issue, university research and 
education on clean energy including energy efficiency and green 
building design and technologies. It would bring together the 
Department of Energy, a emission agency, and the National 
Science Foundation, which has a long history with science and 
technological education, in a common goal to help educate the 
next generation of energy technology experts and green building 
professionals. This bill helps meet a very important need, and 
I thank Mr. McCaul for bringing it to the Committee, and who 
would have known he would have been such a greenie. But we 
thank you. This is a good bill.
    We also will consider Mr. Lipinski's and Mr. Inglis' H.R. 
362, the H-Prize Act of 2007. Hydrogen technology represents 
just the type of transformational possibilities that we are 
hoping to achieve with ARPA-E and may some day make an 
important piece of our energy puzzle, and I commend our 
colleagues, Mr. Inglis and Mr. Lipinski, for working together 
to make this a good bipartisan bill and I look forward to 
moving it through the Committee today.
    So these are the four good bills that we have before us and 
I now would like to recognize Mr. Hall to present his opening 
remarks.
    [The prepared statement of Chairman Gordon follows:]

               Prepared Statement of Chairman Bart Gordon

    Today the Committee is meeting to markup four bills.
    The first bill we will consider today is a bill that I introduced, 
H.R. 364, which establishes an Advanced Research Projects Agency for 
Energy. In the Subcommittee hearing and markup we had a very healthy 
discussion that, I believe, pointed to the critical need for such an 
entity.
    We have worked hard with our friends across the aisle. And, while 
there are still substantial differences, it has resulted in a better 
bill. It is my understanding that this discussion will continue today 
with a number of amendments, and I look forward to addressing your 
concerns.
    The next bill we will take up is H. R. 1467, the 10,000 Trained by 
2010 Act introduced by Chairman Wu. This is a good bill which I 
support.
    There has been a lot of talk in Washington about the need to push 
health care IT forward. Our medical system is far behind other sectors 
in the use of information technology. However, it is common knowledge 
that information technology could significantly improve patient care 
and reduce health care costs.
    While there has been a lot of discussion on the issue in Congress, 
not much has actually been done. In this case, Chairman Wu and other 
Members of the Committee have identified one component of the issue and 
how the Science and Technology Committee could make a real and positive 
contribution in this area.
    I strongly support this legislation and would urge everyone on the 
Committee to do so as well.
    H.R. 1716, the Green Energy Education Act of 2007, was reintroduced 
by Mr. McCaul this year after having passed the House as part of a 
broader bipartisan Science Committee Energy R&D bill at the end of the 
109th Congress.
    H.R. 1716 raises the profile of a very important issue--university 
research and education on clean energy, including energy efficiency and 
green building design and technologies. It would bring together the 
Department of Energy, a mission agency, and the National Science 
Foundation, which has a long history with science and technology 
education, in a common goal to help educate the next generation of 
energy technology experts and green building professionals.
    This bill helps meet a very important need and I thank Mr. McCaul 
for bringing it to the Committee.
    We will also consider by Mr. Lipinski, H.R. 632, the H-Prize Act of 
2007. Hydrogen technologies represent just the type of transformational 
possibilities that we are hoping to achieve with ARPA-E, and may some 
day make up an important piece of our energy puzzle.
    I commend my colleagues Mr. Inglis and Mr. Lipinski for working 
together and for working hard to make this a good, bipartisan bill. I 
look forward to moving it through Committee today.
    These are four good bills, and I strongly encourage my colleagues 
to support all of them.

    Mr. Hall. Mr. Chairman, you and I have been working 
together now for over 22 years and on the same side of the 
aisle for most of that time, and if it weren't for me switching 
parties you might not even be Chairman right now, and I have 
been talked to by 4/5 of you bunch asking me to switch back. A 
good group on both sides. I appreciate everybody on both sides 
of the Chairman here, and you can thank me later if you would 
like.
    When you work with someone as long as we have, not only on 
this committee but also on the Commerce Committee--we are on 
that Committee together--there are bound to be some times when 
we are going to disagree, and as much as I dislike going 
against my friend from Tennessee, sometimes it just happens. As 
it turns out, today is one of those days. While I commend you, 
Bart, for your efforts on behalf of boosting energy R&D, I 
disagree with the way H.R. 364 does it. I have to say that I 
have a problem with the idea of creating a new bureaucracy 
within the Department of Energy that will regardless of 
intention fight for money with existing and future programs at 
DOE. With the tight budget parameters we are working with, I am 
not comfortable authorizing the creation of ARPA-E based on a 
vague recommendation that was in the Gathering Storm report. 
The facts are that DOE currently has the authority to do ARPA-
type projects but DOE is woefully under-funded. I am concerned 
that we could be faced with the problem of having both the 
Office of Science and ARPA-E underfunded so that neither of 
them is operating at full potential if we go forward with the 
creation of this new agency, and before we go forward with any 
ARPA-type projects, I would like the Section 1821 study in 
EPAct to be completed that looks at the applicability of the 
DARPA management practices and the advisability of creating a 
DARPA-type agency within DOE before we move toward this 
legislation, and to that end, I will be introducing an 
amendment that without creating a new bureaucracy would require 
the Secretary of Energy to identify and accelerate advanced 
research projects at the DOE that will address our energy 
needs. I along with several of my colleagues have sent a letter 
to the Secretary urging him to complete the study as mandated 
by law so that we all might benefit from its recommendations.
    In addition to the letter, we also ask the Secretary to 
appoint a technology transfer coordinator and establish the 
technology transfer working group. As several of our witnesses 
testified to in our committee hearing, technology transfer 
plays a very integral part in the process from basic research 
to widespread commercialization. I don't think anyone would 
dispute that our country needs clean, affordable, reliable 
energy that is generated through research and development. This 
committee should continue to advance legislation that addresses 
our most critical energy needs in a fiscally responsible 
manner. To that end, I will be introducing legislation by the 
end of the week that will help accomplish these goals.
    In addition to the ARPA-E legislation, we will also be 
marking up H.R. 1467, H.R. 1716 and H.R. 632. I am an original 
co-sponsor of H.R. 1467, the 10,000 Trained by 2010 Act, and I 
am supportive of the primary goal it seeks to achieve. If 
implemented correctly and efficiently, health information 
technology can revolutionize our health care system but we have 
to have an educated workforce properly trained in health IT in 
order for it to be successful, and this is what H.R. 1467 is 
about. NSF is already doing work, yeoman's work in the IT arena 
but this measure will increase the focus on health IT. I 
encourage my colleagues to support it.
    I urge my colleagues to support H.R. 1716, the Green Energy 
Education Act of 2007, introduced by my fellow Texan, Mr. 
McCaul. This is a good piece of legislation. It was voted out 
of this committee in the last Congress. The fact that it has 
also been included in larger packages on both sides of the 
aisle in this Congress indicates its overwhelming support. 
Simply put, this measure encourages the Department of Energy to 
work with the National Science Foundation to help develop the 
next generation of engineers and architects to work effectively 
together to produce buildings that will incorporate the latest 
in energy-efficient technologies. I commend Mr. McCaul for his 
fine work on this bill.
    Finally, I urge my colleagues to support H.R. 632, the H-
Prize Act, sponsored by Inglis and Lipinski. This legislation 
was introduced in the last Congress and passed overwhelmingly 
by the House of Representatives. This bill directs the 
Secretary of Energy to award competitive cash prizes biannually 
to advance the research, development, demonstration and 
commercial applications of hydrogen energy technologies. 
Categories eligible for prizes include advancements in certain 
hydrogen components or systems, prototypes of hydrogen-powered 
vehicles and transformational changes in the technologies for 
hydrogen distribution or production. I commend Mr. Inglis and 
Mr. Lipinski for introducing this legislation and I encourage 
my colleagues to support it.
    Once again, Mr. Chairman, I am happy to be supportive of 
these three bipartisan pieces of legislation. I look forward to 
working with you to advance these bills.
    I yield back my time, sir.
    [The prepared statement of Mr. Hall follows:]

           Prepared Statement of Representative Ralph M. Hall

    Mr. Chairman, you and I have been working together for over 22 
years now--and on the same side of the aisle for most of that time. 
Why, if it weren't for me switching parties, you might not be the 
chairman right now! You can thank me later. . .. When you work with 
someone as long as we have, not only on this committee, but also on the 
Commerce Committee, there are bound to be times when we're going to 
disagree, and as much as I dislike going against my good friend from 
Tennessee, sometimes it just happens. As it turns out, today is one of 
those days. While I commend my friend for his efforts on behalf of 
boosting energy R&D, I disagree with the way H.R. 364 does it. I have 
to say that I have a problem with the idea of creating a new 
bureaucracy within the Department of Energy that will, regardless of 
intention, fight for money with existing and future programs at DOE. 
With the tight budget parameters we are working with, I am not 
comfortable authorizing the creation of ARPA-E based on a vague 
recommendation that was in the Gathering Storm report.
    The facts are that DOE currently has the authority to do ARPA-type 
projects, but DOE is woefully under funded. I am concerned that we 
could be faced with the problem of having both the Office of Science 
and ARPA-E under funded so that neither of them is operating at its 
full potential if we go forward with creating this new agency. Before 
we go forward with any ARPA-type projects, I would like the Section 
1821 study in EPACT to be completed that looks at the applicability of 
the DARPA management
    practices and the advisability of creating a DARPA-type agency 
within DOE before moving forward with legislation. To that end I will 
be introducing an amendment that, without creating a new bureaucracy, 
would require the Secretary of Energy to identify and accelerate 
advanced research projects at the DOE that will address our energy 
needs. I, along with several of my colleagues, have sent a letter to 
the Secretary urging him to complete the study as mandated by law so 
that we all may benefit from its recommendations. In addition, in the 
letter we also ask the Secretary to appoint the Technology Transfer 
Coordinator and establish the Technology Transfer Working Group. As 
several of our witnesses testified to in our Subcommittee hearing, 
technology transfer plays an integral part in the process from basic 
research to widespread commercialization.
    I don't think anyone would dispute that our country needs clean, 
affordable, reliable energy that is generated through research and 
development. This committee should continue to advance legislation that 
addresses our most critical energy needs in a fiscally responsible 
manner. To that end, I will be introducing legislation by the end of 
this week that will help accomplish these goals.
    In addition to the ARPA-E legislation we will also be marking up 
H.R. 1467, H.R. 1716, and H.R. 632. I am an original co-sponsor of H.R. 
1467, the 10,000 Trained by 2010 Act, and am supportive of the primary 
goal it seeks to achieve. If implemented correctly and efficiently, 
health information technology (IT) can revolutionize our health care 
system. But, we must have an educated workforce, properly trained in 
health IT, in order for it to be successful. This is what H.R. 1467 is 
about. NSF is already doing work yeoman's work in the IT arena, but 
this measure will increase the focus on health IT. I encourage my 
colleagues to support it.
    I urge my colleagues to support H.R. 1716, the Green Energy 
Education Act of 2007, introduced my fellow Texan, Mr. McCaul. This is 
a good piece of legislation that was voted out of this committee in the 
last Congress. The fact that it is also being included in larger energy 
packages on both sides of the aisle in this Congress indicates its 
overwhelming support. Simply put, this measure encourages the 
Department of Energy to work with the National Science Foundation to 
help develop the next generation of engineers and architects to work 
effectively together to produce buildings that incorporate the latest 
in energy efficient technologies. I commend Mr. McCaul for his fine 
work on this bill.
    Finally, I also urge my colleagues to support H.R. 632, the H-Prize 
Act sponsored by Inglis and Lipinski. This legislation was introduced 
in the last Congress and passed overwhelmingly by the House of 
Representatives. The bill directs the Secretary of Energy to award 
competitive cash prizes biennially to advance the research, 
development, demonstration, and commercial application of hydrogen 
energy technologies. Categories eligible for prizes include 
advancements in certain hydrogen components or systems, prototypes of 
hydrogen-powered vehicles, and transformational changes in technologies 
for hydrogen distribution or production. I commend Mr. Inglis and Mr. 
Lipinski for introducing this legislation, and I encourage my 
colleagues to support it.
    Once again, Mr. Chairman, I am happy to be supportive of these 
three bipartisan pieces of legislation and look forward to working with 
you to advance these bills. I yield back the balance of my time.

    Chairman Gordon. Thank you, Mr. Hall. As you have pointed 
out, we have had a good working relationship and I will point 
out that every bill that has come out of this committee has 
been unanimous and the only--one bill received 21 negative 
votes on the Floor. That is the worst we have done on the 
Floor. We are going to have I hope three unanimous bills today 
and I think the reason that we have been able to do this is, we 
have started with good bills. We have had extensive 
consultation and by making better bills. At the end of the day 
we are going to have our first disagreement but I think two 
things will happen: We are going to have amendments today that 
will make the bill even better and I think at the end of the 
day that it will be a bipartisan bill but it won't be a 
unanimous bill, and we will try to proceed without kicking or 
scratching and we will get this done. So without objection, 
Members may place statements in the record at this point.
    [The prepared statement of Mr. Mitchell follows:]

         Prepared Statement of Representative Harry E. Mitchell

    Thank you, Mr. Chairman.
    Today we are considering several bills to decrease our dependence 
on foreign oil and encourage renewable sources of energy.
    As the world leader in emissions of greenhouse gasses, it is 
imperative that we as a nation actively pursue the means to reduce 
those emissions. We have an obligation to lead the world toward a 
solution. One way to accomplish this is to invest in alternative energy 
sources.
    The bills before us today would put in place necessary components 
to take us where we need to be as a nation including education and 
training, monetary incentives, and fast acting, responsive research 
programs.
    The United States must lead by example and invest in clean, 
renewable energy sources.
    Today, we are considering several bills to address this issue and I 
look forward to working on them.
    Sustainable energy is an issue that affects our environment, our 
economy, and our national security, and we cannot leave this problem 
for future generations of Americans to solve.
    I yield back the balance of my time.

    Chairman Gordon. We will now consider H.R. 632, the H-Prize 
Act of 2007.
    I yield to the Vice Chairman of the Committee, Mr. Lipinski 
five minutes to describe his bill.
    Mr. Lipinski. I thank you, Mr. Chairman. We have been here 
quite awhile. I will move quickly through this.
    This is a bill that is one more step in addressing global 
climate change in spurring national energy independence. It is 
a bill I have worked on closely with Mr. Inglis. Many people 
are familiar with this bill last year. We passed to the Science 
Committee, passed on the Floor of the House by a vote of 416 to 
six. Unfortunately, it stalled in the Senate last year. This 
year we have made some minor changes. Mr. Inglis is going to 
offer an amendment in a few minutes, and I think that these 
changes are going to help us to successfully get this bill 
through the Senate and signed by the President.
    It is obvious now that with gasoline prices that are so 
high, everyone is asking us what are we going to do about this. 
It is not only the high cost of gasoline hitting in the 
pocketbooks, but the cost of our addiction to oil also affects 
our environment and National security.
    We need to find a solution, and ARPA-E, I believe is on big 
way towards a solution, but here is another way of looking at 
one particular possible solution in hydrogen. Hydrogen, when it 
is used as an energy source, produces no emissions besides 
water, and hydrogen-fueled cars already exist, but they are 
very expensive. We need to make some breakthroughs in order to 
be able to put a hydrogen car in every American's driveway.
    This legislation would establish prizes, specifically every 
two years, four $1 million prizes will be given for advances in 
production, storage, distribution, and utilization of hydrogen. 
One $4 million prize will be awarded for advances in prototype 
hydrogen vehicles. At the end of 10 years a grand prize of $10 
million will be given for transformational advance in hydrogen 
energy technology.
    The purpose of this is to go about it with the H-Prize is 
to really take advantage of America's greatest resource, her 
ingenuity and creativity. No one is being told exactly what to 
do. They are just being given the goal. They work on figuring 
out how to get there. It is just like the X prize did.
    We have some of the best and brightest minds in the U.S., 
as well as an economy that supports and encourages 
entrepreneurship. Each prize will help focus this inventiveness 
to address the greatest challenge that our country faces today; 
our addiction to oil and other fossil fuels. And we have to 
address global climate change and energy independence is 
essential to our national security and also to reducing the 
prices that we pay at the gas pump today. Investing in an 
alternative to fossil fuels such as hydrogen is a strong step 
in the right direction, holds tremendous potential.
    And I encourage all my colleagues to support the H-Prize 
Act.
    I yield back.
    [The prepared statement of Mr. Lipinski follows:]
          Prepared Statement of Representative Daniel Lipinski
    Thank you, Mr. Chairman; I am pleased to be here today for the 
markup of H.R. 632, the H-Prize Act of 2007, a bill I introduced--along 
with Ranking Member Inglis--as one step in addressing global climate 
change and spurring national energy independence.
    This is a bill that we moved out of the Science Committee last year 
and we passed on the House Floor by a vote of 416 to six. Unfortunately 
the bill stalled in the other chamber last year.
    This year, Mr. Inglis and I will be making some technical changes 
to the bill in the form of an amendment. We believe these changes will 
improve both the bill and its chances of passage in both chambers, with 
a final signature by the President. The Energy and Environment 
Subcommittee unanimously approved the bill earlier this month and we 
look forward to its swift passage in Full Committee today.
    It is obvious to all of us the damage being caused by our current 
energy situation. Gas prices have skyrocketed over the last few weeks 
and continue to hit record highs, averaging over $3 a gallon nationwide 
and in my district in the Chicago area around $3.50 per gallon. This 
situation is inflicting pain on our constituents and on our economy. 
But the costs of our addiction to oil not only affect our pocketbooks, 
they affect our environment and national security. We cannot continue 
to pollute our air and alter our climate with greenhouse gas emissions, 
and we cannot continue to rely on energy sources from unstable parts of 
the world. We must find new solutions and hydrogen has great potential 
to be a solution. The environmental promise is great. Using hydrogen as 
an energy source produces no emissions besides water. Zero polluting 
emissions. And hydrogen-fueled cars already exist. But the technical 
barriers and the economic barriers are significant.
    H.R. 632 seeks to inspire researchers, entrepreneurs, and others' 
competitive spirits to work to surmount these barriers and find 
specific solutions that will facilitate development and 
commercialization of hydrogen fuel. The H-Prize will help expand the 
possibilities of hydrogen research, promoting people not normally 
involved in federal research and development to explore one of the 
greatest challenges facing us today.
    Specifically, this legislation would establish competitively 
awarded cash prizes to spur innovations that advance the use of 
hydrogen as a fuel for transportation. Every two years, four $1 million 
prizes would be given for advances in the production, storage, 
distribution, and utilization of hydrogen, and one $4 million prize 
would be awarded for advances in prototype hydrogen vehicles. And at 
the end of ten years one grand prize of $10 million would be given for 
a transformational advance in hydrogen energy technology.
    This prize will help us take advantage of America's great 
resource--our ingenuity and creativity. The United States has some of 
the best and brightest minds in the world, as well as an economy that 
supports and encourages entrepreneurship, and the H-Prize will focus 
this inventiveness to address the greatest challenge that our country 
faces today.
    Energy independence is essential to national security and to 
reducing the price at the pump and investing in an alternative to 
fossil fuels such as hydrogen is a strong step in the right direction. 
Hydrogen holds enormous potential as the base of our future economy--a 
potential we cannot and must not ignore.
    Thank you, Mr. Chairman, and I encourage all of my colleagues to 
support the H-Prize Act. I yield back the balance of my time.

    Chairman Gordon. Mr. Hall is recognized.
    Mr. Hall. Mr. Chairman, I yield to Mr. Inglis my time.
    Mr. Inglis. I thank the gentleman for yielding. The bill 
comes well recommended at a 416 to six vote the last time 
through the House, so hopefully we can pass it through the 
House again and get it all the way to the Senate.
    The concept is patterned after the Ansari X Prize, which 
improvised space flight, entrepreneurial space flight. So this 
H-Prize is designed to do for hydrogen what the X Prize did for 
space flight, and that is to create an opportunity for 
entrepreneurs and inventors to come together and form teams 
that could help us break through to a hydrogen future.
    There are a number of technological challenges we face, and 
this is a non-bureaucratic, non-Governmental way of breaking 
through some of those barriers.
    So I am happy to be supporting it and urging its adoption 
here in the Committee.
    Chairman Gordon. Does anyone else wish to be recognized?
    I ask unanimous consent that the bill is considered as read 
and open to amendment at any point, and that the Members 
proceed with the amendments in the order of the roster. Without 
objection so ordered.
    The first amendment on the roster is the gentleman from 
South Carolina's amendment offered in the nature of a 
substitute. I ask unanimous consent that the amendment in the 
nature of a substitute be treated as original text for purposes 
of amendment under the five minute rule. Without objection, so 
ordered.
    Are you ready to proceed with your amendment?
    Mr. Inglis. Yes, Mr. Chairman.
    Chairman Gordon. The Clerk will report the amendment.
    The Clerk. Amendment in the nature of a substitute to H.R. 
632 offered by Mr. Inglis of South Carolina.
    Chairman Gordon. I ask unanimous consent to dispense with 
the reading. Without objection, so ordered.
    I recognize Mr. Inglis for five or less minutes to explain 
the substitute amendment.
    Mr. Inglis. Hopefully less, Mr. Chairman.
    This amendment incorporates several technical corrections 
as well as some suggestions from the Department of Energy 
general counsel and from Mr. Lipinski's office. Essentially the 
changes are these.
    Removes provision that required all future hydrogen prizes 
to be modeled after the H-Prize, clarifies the Secretary of 
Energy has the final say over prize criteria, federal funding, 
and judge selection, clarifies that the administering entity 
can sell naming rights to the prizes, changes the term, 
`intellectual property' to `trade secrets' or `confidential 
business information' to protect the Department of Energy from 
claims about violating patents and trademarks, allows the 
Secretary of Energy to withhold such proprietary information 
from public disclosure. It also provides accountability by 
requiring an annual report to Congress identifying each award 
recipient and their developed technologies.
    So these are, I think that Mr. Lipinski may want to add 
some description here.
    Chairman Gordon. Is there further discussion on the 
amendment?
    Mr. Lipinski. Chairman.
    Chairman Gordon. Mr. Lipinski is recognized.
    Mr. Lipinski. For this amendment, it contains some 
improvements to the bill. Special importance are it helps to 
insure accountability and promote commercialization of the 
prize, requires the Department of Energy to submit an annual 
report to Congress that identifies each award recipient and 
their technology, and also encourages commercialization by 
specifying the actions being taken by the recipients towards 
commercialization.
    So I fully support this amendment.
    [The prepared statement of Mr. Lipinski follows:]
          Prepared Statement of Representative Daniel Lipinski
    Thank you, Mr. Chairman. This amendment contains a few improvements 
to the underlying bill, and is offered both by Mr. Inglis and myself. 
Of special importance to me is that this amendment helps to ensure 
accountability and promote commercialization of the prize-winning new 
technologies, both of which are important for the goals of this bill.
    First, our amendment provides accountability by requiring the 
Department of Energy to submit an annual report to Congress that 
identifies each award recipient and their prize-winning technologies.
    Second, the amendment encourages commercialization of the new 
technologies by requiring the DOE, also in their report to Congress, to 
specify actions being taken by the recipients toward commercialization.
    This amendment was developed in cooperation with Committee staff, 
and I thank them for their help. I believe these changes improve the H-
Prize Act, and I encourage my colleagues to support this amendment.

    Chairman Gordon. Are there other amendments to the 
amendment in the nature of a substitute? If not, the vote 
occurs on the amendment in the nature of a substitute. All in 
favor say aye. Opposed, no. The ayes have it, and the amendment 
is agreed to.
    Now, is there any other amendment? Hearing none, the vote 
is on H.R. 632 as amended. All those in favor say aye. All 
those opposed will say no. In the opinion of the Chair the ayes 
have it.
    I recognize Mr. Hall to offer a motion.
    Mr. Hall. Mr. Chairman, I move that the Committee favorably 
report H.R. 632 as amended to the House with the recommendation 
that the bill do pass. Furthermore, I move that staff be 
instructed to make necessary technical and conforming changes 
and that the Chairman take all the necessary steps to bring the 
bill before the House for consideration.
    I yield back.
    Chairman Gordon. The question is on the motion to report 
the bill favorably. Those in favor of the motion will signify 
by saying aye. Opposed no. The ayes have it, and the bill is 
reported favorably.
    Without objection the motion to reconsider is laid upon the 
table. I move that Members have two subsequent calendar days in 
which to submit supplemental or minority views, and I move 
pursuant to Clause 1 of Rule 22 of the Rules of the House of 
Representatives that the Committee authorize the Chairman to 
offer such motions as may be necessary in the House to adopt 
and pass H.R. 632, the H-Prize Act of 2007, as amended.
    Without objection, so ordered.
    Many thanks to everyone, and I want to conclude this 
markup.
    [Whereupon, at 1:00 p.m., the Committee was adjourned.]


                               Appendix:

                              ----------                              


         Subcommittee Markup Report, H.R. 632, Amendment Roster

                  COMMITTEE ON SCIENCE AND TECHNOLOGY
                 SUBCOMMITTEE ON ENERGY AND ENVIRONMENT
                    REPORT FROM SUBCOMMITTEE MARKUP
                              MAY 10, 2007

                     H.R. 632, H-Prize Act of 2007

I. Purpose

    The purpose of the bill is to authorize the Secretary of Energy to 
establish monetary prizes for achievements in overcoming scientific and 
technical barriers associated with hydrogen energy.

II. Background and Need for Legislation

    Hydrogen gas is considered by many experts to be a promising fuel, 
particularly in the transportation sector. When used as a fuel, its 
only combustion byproduct is water vapor. The widespread adoption of 
hydrogen as a transportation fuel has the potential to reduce or 
eliminate air pollution generated by cars and trucks.
    However, unlike coal or oil, the hydrogen gas used as a fuel is not 
a naturally occurring energy resource. Hydrogen must be produced from 
hydrogen-bearing compounds, like water or natural gas, and that 
requires energy--and, unlike gasoline or biofuels, more energy is 
always required to produce it than is recovered when hydrogen is burned 
in a fuel cell. Hydrogen has the potential to reduce America's 
dependence on foreign oil, but the degree to which hydrogen will 
displace foreign energy supplies depends on what energy source is used 
to generate hydrogen gas in the first place.
    If hydrogen can be produced economically from energy sources that 
do not release carbon dioxide into the atmosphere--from renewable 
sources such as wind power or solar power, from nuclear power, or 
possibly from coal with carbon sequestration, then the widespread use 
of hydrogen as a fuel could make a major contribution to reducing the 
emission of greenhouse gases.
    While the promise of hydrogen is great, so are the technical 
challenges. Experts suggest that major advances will be required across 
a wide range of technologies for hydrogen to be affordable, safe, 
cleanly produced, and readily distributed. The production, storage, and 
use of hydrogen all present significant technical challenges. While 
Department of Energy (DOE) research programs have produced promising 
advances, much work must still be done to meet the goal of developing 
economically viable hydrogen technologies.
    Prizes are one tool the Federal Government can employ to stimulate 
efforts to overcome such technical hurdles. A 1999 National Academy of 
Engineering (NAE) panel examining the use of prizes by federal agencies 
suggested the following design principles for prize programs:

        1. Treatment of intellectual property resulting from prize 
        contests should be properly aligned with the objectives and 
        incentive structure of the prize contest.

        2. Contest rules should be seen as transparent, simple, fair, 
        and unbiased.

        3. Prizes should be commensurate with the effort required and 
        goals sought.

    The Act establishes three types of prizes that are in keeping with 
the principles laid out by the NAE:

        1. Biennial prizes for advancements in each of hydrogen 
        storage, hydrogen production, hydrogen use and hydrogen 
        distribution;

        2. A goal-oriented, biennial contest for prototypes that meet 
        objective contest criteria established in advance; and

        3. A prize of at least $10 million for a goal-oriented contest 
        for the best invention that leads to transformational changes 
        in the distribution or production of hydrogen. Winners of this 
        prize could also receive matching funds for every dollar of 
        private funding raised by the winner for commercialization of 
        their winning technology.

III. Subcommittee Actions

    On January 23, 2007, Science and Technology Committee Vice Chairman 
Daniel Lipinski, for himself and Energy and Environment Subcommittee 
Ranking Member Robert Inglis, Research and Science Education 
Subcommittee Ranking Member Vernon Ehlers, Rep. Eddie Bernice Johnson, 
Rep. Michael McCaul, Rep. David Reichert and 20 other co-sponsors 
introduced H.R. 632, the H-Prize Act of 2007.
    The Energy and Environment Subcommittee met on Thursday, May 10, 
2007, to consider the bill. Mr. Inglis moved that the Subcommittee 
favorably report the bill, H.R. 632, to the Full Committee. The motion 
was agreed to by a voice vote.

IV. Summary of Major Provisions of the Bill

    Creates a prize program at DOE for advances in hydrogen 
technologies to be administered through a private, non-profit entity 
(`the administering entity'). DOE is to award three types of prizes 
(described below).
    Establishes prizes of not more than $1 million to be awarded every 
other year to the best technology advancements in components or systems 
related to each of hydrogen production, hydrogen storage, hydrogen 
distribution, and hydrogen utilization.
    Establishes a prize of not more than $4 million to be awarded for 
prototypes of hydrogen-powered vehicles or hydrogen-based products that 
best meet or exceed objective performance criteria. Awards for the 
prototype prize are to be given in alternate years from the technology 
advancement prizes.
    Establishes a prize of at least $10 million to be awarded for 
transformational changes in technologies for the production and 
distribution of hydrogen that meet or exceed far-reaching objective 
criteria. Limits the federal contribution to $10,000,000, and sets a 
private fundraising goal of $40,000,000. Prize money over $10,000,000 
may be provided as matching funds for every dollar of private funding 
raised by the winner for the continued development and 
commercialization of their winning technology.
    Enumerates duties of the `administering entity.' These include 
broad advertising of the prizes and their results, fundraising for 
administrative costs and cash prizes, working with the Secretary to 
develop prize criteria based on goals provided by the Secretary; 
working with the Secretary to determine the appropriate prize amounts 
to be awarded under the transformational changes prize category; and 
selecting judges using criteria developed in consultation with the 
Secretary.
    Authorizes $11,000,000 for each of fiscal years 2007 through 2016, 
of which not more than $2,000,000 each year may be spent on 
administrative costs.

V. Section by Section Analysis of the Bill, as reported by the 
                    Subcommittee

Section 1. Short Title.

    The H-Prize Act of 2007

Sec. 2. Definitions

    Defines Administering Entity, Department and Secretary.

Sec. 3. Prize Authority.

    Requires the Secretary of Energy to create a prize to advance the 
research, development, demonstration and commercial application of 
hydrogen energy technologies.
    Requires the Secretary to advertise the prize competitions widely 
to encourage broad participation, including outreach to historically 
black colleges and universities, other minority serving institutions, 
as well as large and small businesses, including minority and 
disadvantaged businesses. Includes a specific direction to announce the 
prize competitions through publication of a Federal Register notice.
    Requires the Secretary to enter into an agreement with a private, 
non-profit entity to administer the prize competitions. Enumerates the 
duties of the administering entity to include advertising the prizes 
and their results, fundraising for administrative costs and cash 
prizes, working with the Secretary to develop prize criteria based upon 
goals provided by the Secretary, working with the Secretary to 
determine the appropriate amounts for prizes awarded under the 
transformational changes category described in section 4, selecting 
judges using criteria developed in consultation with the Secretary, and 
preventing the unauthorized use or disclosure of a registered 
participant's intellectual property, trade secrets, and confidential 
business information.
    Authorizes the Secretary to use funding directly appropriated for 
such purposes to the Department of Energy (DOE) or other agencies and 
to accept funds provided by private entities or individuals. Prohibits 
the announcement of any prize competition until sufficient funds are 
available. Sunsets the authority to award prizes in 2018.

Sec. 4. Prize Categories.

    Defines prize categories for:

          (i) Components or Systems. Establishes up to four $1 million 
        prizes awarded every other year to the best technology 
        advancements in components or systems related to hydrogen 
        production, hydrogen storage, hydrogen distribution, and 
        hydrogen utilization. Provides the Secretary the discretion to 
        reduce the amount or number of prizes based upon the 
        availability of funds.

         (ii) Prototypes. Establishes one $4 million prize for 
        prototypes of hydrogen-powered vehicles or hydrogen-based 
        products that best meet or exceed objective performance 
        criteria. Awards prototype prizes in years alternate with the 
        technology advancements prize. Prohibits the Secretary from 
        awarding the prize if no entrant meets the objectively defined 
        performance criteria.

        (iii) Transformational Changes. Establishes a minimum 
        $10,000,000 lump sum prize award for transformational changes 
        in technologies for the production and distribution of hydrogen 
        that meet or exceed far-reaching objective criteria. Limits the 
        federal contribution to $10,000,000, and sets a private 
        fundraising goal of $40,000,000 for prize money provided as 
        matching funds for every dollar of private funding raised by 
        the winner for the continued development of their winning 
        technology.

    Requires the Secretary to establish contest criteria through 
consultation with the Hydrogen Technical Advisory Committee, other 
federal agencies including the National Science Foundation, and private 
organizations including the National Academy of Sciences. Requires the 
Secretary to appoint contest judges from the private sector and 
agencies outside DOE. Excludes judges who may have a personal or 
financial relationship with any contest participant.

Sec. 5. Eligibility.

    Requires contestants to register through the process published in 
the Federal Register. Requires contestants be incorporated and maintain 
a primary place of business in the U.S. if a private entity, and must 
be a U.S. citizen if an individual. Excludes from participation any 
federal entities or federal or national laboratory employees while on 
duty.

Sec. 6. Intellectual Property.

    Waives claims by the Federal Government to any intellectual 
property rights derived from participation in the prize competitions.

Sec. 7. Liability.

    Requires contestants to waive claims against the Federal Government 
resulting from participation in prize competition activities. Requires 
contestants to have liability insurance against damages resulting from 
participation in any prize competition activity and to name the Federal 
Government as an additional insured entity.

Sec. 8. Authorization of Appropriations.

    Authorizes $20 million for advancements in components, $20 million 
for advancements in prototypes, and $10 million for transformational 
changes for the period encompassing fiscal years 2008 through 2017, 
with funds expiring 10 fiscal years after the fiscal year in which they 
were appropriated. Authorizes $2 million for administrative costs for 
each of fiscal years 2008 through 2017.

Sec. 9. Nonsubstitution.

    Expresses a sense of the Congress that the prize competitions shall 
not act as a substitute for any research and development programs.


