108th CONGRESS
1st Session
S. 461
To establish a program to promote hydrogen fuel cells, and for other
purposes.
IN THE SENATE OF THE UNITED STATES
February 26, 2003
Mr. DORGAN (for himself, Mr. LIEBERMAN, Mrs. CLINTON, Mr. KERRY, Mr. JEFFORDS,
MR. Corzine, Mr. Conrad, and Mr. Akaka) introduced the following bill; which
was read twice and referred to the Committee on Finance
A BILL
To establish a program to promote hydrogen fuel cells, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) SHORT TITLE- This Act may be cited as the `Hydrogen Fuel Cell Act of 2003'.
(b) TABLE OF CONTENTS- The table of contents for this Act is as follows:
Sec. 1. Short title and table of contents.
TITLE I--HYDROGEN AND FUEL CELL TECHNOLOGY RESEARCH AND DEVELOPMENT
Sec. 102. Hydrogen and fuel cell research and development.
Sec. 103. Coordination and consultation.
Sec. 104. Advisory committee.
Sec. 105. Report to Congress.
Sec. 106. National Academy of Sciences review.
Sec. 107. Authorization of appropriations for hydrogen production, storage,
and transport.
Sec. 108. Authorization of appropriations for fuel cell technologies.
TITLE II--DEMONSTRATION PROGRAMS
Sec. 201. Fuel cell vehicle demonstration program.
Sec. 202. Heavy duty fuel cell vehicle fleet demonstration program.
Sec. 203. Tribal stationary hybrid power demonstration.
Sec. 204. Stationary fuel cell grant demonstration program.
TITLE III--FEDERAL PURCHASE PROGRAM
Sec. 301. Procurement of fuel cell vehicles.
Sec. 302. Federal stationary fuel cell power purchase program.
Sec. 303. Establishment of an interagency task force.
TITLE IV--REMOVAL OF REGULATORY BARRIERS
Sec. 401. Amendments to PURPA.
Sec. 403. Department of Energy study.
TITLE V--TAX INCENTIVES FOR HYDROGEN FUEL CELL TECHNOLOGY
Sec. 501. Hydrogen fuel cell motor vehicle credit.
Sec. 502. Credit for installation of hydrogen fuel cell motor vehicle fueling
stations.
Sec. 503. Credit for residential fuel cell property.
Sec. 504. Credit for business installation of qualified fuel cells.
TITLE VI--EDUCATION AND OUTREACH
Sec. 601. Education and outreach.
TITLE VII--TARGETS AND TIMETABLES
Sec. 701. Department of Energy strategy.
SEC. 2. FINDINGS.
Congress makes the following findings:
(1) The United States currently imports approximately 55 percent of the
oil it consumes.
(2) At present trends, reliance on foreign oil will increase to 68 percent
by 2025.
(3) Nearly all of the cars and trucks run on gasoline, and they are the
main reason the United States imports so much oil.
(4) Two-thirds of the 20,000,000 barrels of oil Americans use each day is
used for transportation.
(5) Hydrogen fuel cell vehicles offer the best hope of dramatically reducing
our dependence on foreign oil, increasing our energy security, and enhancing
our environmental protection.
(6) In the spirit of the Apollo project that put a man on the moon, the
United States must commit the necessary resources to develop and commercialize
hydrogen fuel cell vehicles, in partnership with the private sector.
(7) In developing hydrogen fuel cell vehicles, the United States must also
support the development and commercialization of stationary fuel cells to
power homes and other buildings, so as to diversify energy sources, better
protect the environment, provide assured power, and accelerate implementation
of fuel cell technology generally.
SEC. 3. PURPOSES.
The purposes of this Act are--
(1) to promote the comprehensive development, demonstration, and commercialization
of hydrogen-powered fuel cells in partnership with industry;
(2) to increase our Nation's energy independence, and energy and national
security in doing so;
(3) to develop a sustainable national energy strategy;
(4) to protect and strengthen the Nation's economy and standard of living;
(5) to reduce the environmental impacts of energy production, distribution,
transportation, and use; and
(6) to leverage financial resources through the use of public-private partnerships.
SEC. 4. DEFINITIONS.
(1) the term `critical technology' means a technology that, in the opinion
of the Secretary, requires understanding and development in order to take
the next step needed in the development of hydrogen as an economic fuel
or storage medium or in the development of fuel cell technologies as a transportation
mode;
(2) the term `fuel cell vehicle' means a vehicle that derives all, or a
significant part, of its propulsion energy from 1 or more fuel cells; and
(3) the term `Secretary' means the Secretary of Energy.
TITLE I--HYDROGEN AND FUEL CELL TECHNOLOGY RESEARCH AND DEVELOPMENT
SEC. 101. DEFINITIONS.
(1) the term `advisory committee' means the advisory committee established
under section 105; and
(2) the term `critical technical issue' means an issue that, in the opinion
of the Secretary, requires understanding and development in order to take
the next step needed in the development of hydrogen as an economic fuel
or storage medium or in the development of fuel cell technologies as a transportation
mode.
SEC. 102. HYDROGEN AND FUEL CELL RESEARCH AND DEVELOPMENT.
(1) HYDROGEN ENERGY RESEARCH AND DEVELOPMENT PROGRAM- The Secretary shall,
in consultation with the private sector, conduct a research and development
program relating to the production, storage, distribution, and use of hydrogen
energy, including fueling infrastructure, with the goal of enabling the
private sector to demonstrate and commercialize the use of hydrogen for
transportation, industrial, commercial, residential, and utility applications.
(2) FUEL CELL TECHNOLOGY RESEARCH AND DEVELOPMENT PROGRAM- The Secretary
shall conduct fuel cell technology research and development, with the goal
of commercializing fuel cell vehicles and stationary fuel cells. The program
shall include advanced materials, interfaces and electronics, lower cost
and advanced design, balance of plant, enhanced manufacturing processes,
reforming capability, and analysis and integration of systems.
(b) ELEMENTS- In conducting the programs authorized by this section, the Secretary
shall--
(1) initiate or accelerate research and development concerning critical
technical issues that will contribute to the development of more economical
and environmentally sound fuel cell vehicles and hydrogen energy systems,
including critical technical issues with respect to--
(A) production, with consideration of cost-effective and market-efficient
production from renewable energy sources;
(B) transmission and distribution;
(C) storage, including storage of hydrogen for surface transportation
applications; and
(D) use, including use in--
(i) surface transportation;
(ii) fuel cells and components;
(iii) fueling infrastructure;
(iv) stationary applications; and
(v) isolated villages, islands, and communities in which other energy
sources are not available or are very expensive;
(2) give particular attention to resolving critical technical issues preventing
the introduction of hydrogen energy and fuel cell vehicles into the marketplace;
and
(3) survey private sector hydrogen energy and fuel cell research and development
activities worldwide and take steps to ensure that such activities under
this section--
(A) enhance rather than unnecessarily duplicate any available research
and development; and
(B) complement rather than displace or compete with the privately funded
hydrogen energy or fuel cell research and development activities of United
States industry.
(c) FEDERAL FUNDING- The Secretary shall carry out the research and development
activities authorized under this section using a competitive merit review
process.
(1) IN GENERAL- The Secretary shall require a commitment from non-Federal
sources of at least 20 percent of the cost of proposed research and development
projects under this section.
(2) REDUCTION OR ELIMINATION- The Secretary may reduce or eliminate the
cost sharing requirement under subsection (d)(1)--
(A) if the Secretary determines that the research and development is of
a basic or fundamental nature; or
(B) for technical analyses, outreach activities, and educational programs
that the Secretary does not expect to result in a marketable product.
SEC. 103. COORDINATION AND CONSULTATION.
(a) SECRETARY'S RESPONSIBILITY- The Secretary shall have overall management
responsibility for carrying out programs under this Act. In carrying out such
programs, the Secretary, consistent with such overall management responsibility--
(1) shall establish a central point for the coordination of all hydrogen
energy and fuel cell research, development, and demonstration activities
of the Department of Energy; and
(2) may use the expertise of any other Federal agency in accordance with
subsection (b) in carrying out any activities under this Act, to the extent
that the Secretary determines that any such agency has capabilities which
would allow such agency to contribute to the purposes of this Act.
(b) ASSISTANCE- The Secretary may, in accordance with subsection (a), obtain
the assistance of any Federal agency upon written request, on a reimbursable
basis or otherwise and with the consent of such agency. Each such request
shall identify the assistance the Secretary considers necessary to carry out
any duty under this Act.
(c) CONSULTATION- The Secretary shall consult with other Federal agencies
as appropriate, and the advisory committee, in carrying out the Secretary's
authorities pursuant to this Act.
SEC. 104. ADVISORY COMMITTEE.
(a) ESTABLISHMENT- There is hereby established a Technical Advisory Committee
to advise the Secretary on the programs under this Act and under title II
of the Hydrogen Future Act of 1996, to remain in existence for the duration
of such programs.
(1) IN GENERAL- The advisory committee shall be comprised of not fewer than
9 nor more than 15 members appointed by the Secretary, and shall be comprised
of such representatives from domestic industry, universities, professional
societies, Government laboratories, and financial, environmental, and other
organizations as the Secretary considers appropriate based on the Secretary's
assessment of the technical and other qualifications of such representatives.
(A) IN GENERAL- The term of a member of the advisory committee shall not
be more than 3 years.
(B) STAGGERED TERMS- The Secretary may appoint members of the advisory
committee in a manner that allows the terms of the members serving at
any time to expire at spaced intervals so as to ensure continuity in the
functioning of the advisory committee.
(C) REAPPOINTMENT- A member of the advisory committee whose term expires
may be reappointed.
(3) CHAIRPERSON- The advisory committee shall have a chairperson, who shall
be elected by the members from among their number.
(c) COOPERATION- The heads of Federal agencies shall cooperate with the advisory
committee in carrying out the requirements of this section and shall furnish
to the advisory committee such information as the advisory committee considers
necessary to carry out this section.
(d) REVIEW- The advisory committee shall review and make any necessary recommendations
to the Secretary on--
(1) the implementation and conduct of programs under this title;
(2) the economic, technological, and environmental consequences of the deployment
of technologies under this title; and
(3) means for removing barriers to implementing the technologies and programs
under this title.
(e) RESPONSE TO RECOMMENDATIONS- The Secretary shall consider, but need not
adopt, any recommendations of the advisory committee under subsection (d).
The Secretary shall either describe the implementation, or provide an explanation
of the reasons that any such recommendations will not be implemented, in the
report to Congress under section 103(b).
(f) SUPPORT- The Secretary shall provide such staff, funds, and other support
as may be necessary to enable the advisory committee to carry out its functions.
SEC. 105. REPORT TO CONGRESS.
(1) REQUIREMENT- Not later than 1 year after the date of enactment of this
Act and biennially thereafter, the Secretary shall transmit to Congress
a detailed report on the status and progress of the programs authorized
under this title.
(2) CONTENTS- A report under paragraph (1) shall include, in addition to
any views and recommendations of the Secretary--
(A) an assessment of the effectiveness of the programs authorized under
this Act;
(B) recommendations of the advisory committee for any improvements in
the program that are needed, including recommendations for additional
legislation; and
(C) to the extent practicable, an analysis of Federal, State, local, and
private sector hydrogen- and fuel cell-related research, development,
and demonstration activities to identify productive areas for increased
intergovernmental and private-public sector collaboration.
SEC. 106. NATIONAL ACADEMY OF SCIENCES REVIEW.
Beginning 2 years after the date of enactment of this Act, and every 4 years
thereafter, the National Academy of Sciences shall perform a review of the
progress made through the programs and activities authorized under this Act
and title II of the Hydrogen Future Act of 1996, and shall report to Congress
on the results of such reviews.
SEC. 107. AUTHORIZATION OF APPROPRIATIONS FOR HYDROGEN PRODUCTION, STORAGE,
AND TRANSPORT.
There are authorized to be appropriated to carry out hydrogen production,
storage, and transport activities under this title (in addition to any amounts
made available for such purposes under other Acts)--
(1) $200,000,000 for fiscal year 2004;
(2) $200,000,000 for fiscal year 2005;
(3) $200,000,000 for fiscal year 2006;
(4) $200,000,000 for fiscal year 2007;
(5) $100,000,000 for fiscal year 2008;
(6) $100,000,000 for fiscal year 2009;
(7) $100,000,000 for fiscal year 2010;
(8) $75,000,000 for fiscal year 2011;
(9) $75,000,000 for fiscal year 2012; and
(10) $50,000,000 for fiscal year 2013.
SEC. 108. AUTHORIZATION OF APPROPRIATIONS FOR FUEL CELL TECHNOLOGIES.
There are authorized to be appropriated to the Secretary for fuel cell technology
activities under this title--
(1) $200,000,000 for fiscal year 2004;
(2) $250,000,000 for fiscal year 2005;
(3) $250,000,000 for fiscal year 2006;
(4) $200,000,000 for fiscal year 2007;
(5) $100,000,000 for fiscal year 2008;
(6) $100,000,000 for fiscal year 2009;
(7) $100,000,000 for fiscal year 2010;
(8) $75,000,000 for fiscal year 2011;
(9) $75,000,000 for fiscal year 2012; and
(10) $50,000,000 for fiscal year 2013.
TITLE II--DEMONSTRATION PROGRAMS
SEC. 201. FUEL CELL VEHICLE DEMONSTRATION PROGRAM.
(a) PROGRAM- The Secretary shall establish a cost shared program to purchase,
operate, and evaluate fuel cell vehicles in integrated service in Federal,
tribal, State, local, or private fleets to demonstrate the viability of fuel
cell vehicles in commercial use in a range of climates, duty cycles, and operating
environments.
(b) COOPERATIVE AGREEMENTS- In carrying out the program, the Secretary may
enter into cooperative agreements with Federal, tribal, State, local agencies,
or private entities and manufacturers of fuel cell vehicles.
(c) COMPONENTS- The program shall include the following components:
(1) SELECTION OF PILOT FLEET SITES-
(A) IN GENERAL- The Secretary shall--
(i) consult with fleet managers to identify potential fleet sites; and
(ii) select 10 or more sites at which to carry out the program.
(B) CRITERIA- The criteria for selecting fleet sites shall include--
(i) geographic diversity;
(ii) a wide range of climates, duty cycles, and operating environments;
(iii) the interest and capability of the participating agencies or entities;
(iv) the appropriateness of a site for refueling infrastructure and
for maintaining the fuel cell vehicles; and
(v) such other criteria as the Secretary determines to be necessary
to the success of the program.
(C) FEDERAL SITES- At least 2 of the projects must be at Federal sites.
(2) FUELING INFRASTRUCTURE-
(A) IN GENERAL- The Secretary shall support the installation of the necessary
refueling infrastructure at the fleet sites.
(B) CO-PRODUCTION OF HYDROGEN AND ELECTRICITY PILOT PROJECTS- Priority
shall be given to pilot projects that integrate--
(i) both vehicles and stationary electricity production; or
(ii) hydrogen production, storage, and distribution systems with end-use
applications.
(3) PURCHASE OF FUEL CELL VEHICLES- The Secretary, in consultation with
the participating agencies, tribal, State, or local agency, academic institution,
or private entity, shall purchase fuel cell vehicles for the program by
competitive bid.
(4) OPERATION AND MAINTENANCE PERIOD- The fuel cell vehicles shall be operated
and maintained by the participating agencies or entities in regular duty
cycles for a period of not less than 12 months.
(5) DATA COLLECTION, ANALYSIS, AND DISSEMINATION-
(A) AGREEMENTS- The Secretary shall enter into agreements with participating
agencies, academic institutions, or private sector entities providing
for the collection of proprietary and nonproprietary information with
the program.
(B) PUBLIC AVAILABILITY- The Secretary shall make available to all interested
persons technical nonproprietary information and analyses collected under
an agreement under subparagraph (A).
(C) PROPRIETARY INFORMATION- The Secretary shall not disclose to the public
any proprietary information or analyses collected under an agreement under
subparagraph (A).
(6) TRAINING AND TECHNICAL SUPPORT- The Secretary shall provide such training
and technical support as fleet managers and fuel cell vehicle operators
require to assure the success of the program, including training and technical
support in--
(A) the installation, operation, and maintenance of fueling infrastructure;
(B) the operation and maintenance of fuel cell vehicles; and
(d) COORDINATION- The Secretary shall ensure coordination of the program with
other Federal fuel cell demonstration programs to improve efficiency, share
infrastructure, and avoid duplication of effort.
(1) IN GENERAL- The Secretary shall require a 50 percent financial commitment
from participating private-sector companies or other non-Federal sources
for participation in the program.
(2) COMMITMENTS- The Secretary may require a financial commitment from participating
agencies or entities based on the avoided costs for purchase, operation,
and maintenance of traditional vehicles and refueling infrastructure.
(f) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated
to carry out this section--
(1) $40,000,000 for fiscal year 2004;
(2) $100,000,000 for fiscal year 2005;
(3) $115,000,000 for fiscal year 2006;
(4) $115,000,000 for fiscal year 2007;
(5) $95,000,000 for fiscal year 2008;
(6) $30,000,000 for fiscal year 2009; and
(7) $15,000,000 for fiscal year 2010.
SEC. 202. HEAVY DUTY FUEL CELL VEHICLE FLEET DEMONSTRATION PROGRAM.
(a) ESTABLISHMENT OF PROGRAM- The Secretary, in consultation with other Federal
agencies, shall establish a program for entering into cooperative agreements
with the private sector to demonstrate fuel cell-powered buses, trucks and
other heavy duty vehicles.
(b) COST SHARING- The non-Federal contribution for activities funded under
this section shall be not less than--
(1) 20 percent for fuel infrastructure development activities; and
(2) 50 percent for demonstration activities and for development activities
not described in paragraph (1).
(c) REPORTS TO CONGRESS- Not later than 2 years after the date of the enactment
of this Act, and not later than October 1, 2009, the Secretary, in consultation
with other Federal agencies, shall transmit to the appropriate congressional
committees a report that--
(1) evaluates the process of developing infrastructure to accommodate fuel
cell-powered buses, trucks, and heavy duty vehicles; and
(2) assesses the results of the demonstration program under this section.
(d) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated
to the Secretary for carrying out this demonstration program, to remain available
until expended--
(1) $60,000,000 for fiscal year 2004;
(2) $90,000,000 for fiscal year 2005;
(3) $175,000,000 for fiscal year 2006;
(4) $175,000,000 for fiscal year 2007;
(5) $175,000,000 for fiscal year 2008;
(6) $135,000,000 for fiscal year 2009; and
(7) $40,000,000 for fiscal year 2010.
SEC. 203. TRIBAL STATIONARY HYBRID POWER DEMONSTRATION.
(a) IN GENERAL- Not later than 1 year after the date of enactment of this
Act, the Secretary, in cooperation with Tribes, shall develop and transmit
to Congress a strategy for a demonstration and commercial application program
to develop hybrid distributed power systems on tribal lands that combine--
(1) one renewable electric power generating technology of 2 megawatts or
less located near the site of electric energy use; and
(2) fuel cell power generation suitable for use in distributed power systems.
(b) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated
for activities under this section--
(1) $1,000,000 for fiscal year 2005;
(2) $5,000,000 for fiscal year 2006;
(3) $5,000,000 for fiscal year 2007;
(4) $4,000,000 for fiscal year 2008;
(5) $3,000,000 for fiscal year 2009; and
(6) $2,000,000 for fiscal year 2010.
SEC. 204. STATIONARY FUEL CELL GRANT DEMONSTRATION PROGRAM.
(a) SOLICITATION OF PROPOSALS- The Secretary shall solicit proposals for projects
demonstrating hydrogen technologies needed to operate fuel cells in Federal,
tribal, State, and local government, and academic, and private stationary
applications.
(b) COMPETITIVE EVALUATION- Each proposal submitted in response to the solicitation
under this section shall be evaluated on a competitive basis using peer review.
The Secretary is not required to make an award under this section in the absence
of a meritorious proposal.
(c) PREFERENCE- The Secretary shall give preference, in making an award under
this section, to proposals that--
(1) are submitted jointly from consortia including academic institutions,
industry, State or local governments, and Federal laboratories; and
(2) reflect proven experience and capability with technologies relevant
to the projects proposed.
(1) IN GENERAL- Except as provided in paragraph (2), the Secretary shall
require a commitment from non-Federal sources of at least 50 percent of
the costs directly relating to a demonstration project under this section.
(2) REDUCTION- The Secretary may reduce the non-Federal requirement under
paragraph (1) if the Secretary determines that the reduction is appropriate
considering the technological risks involved in the project.
(e) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated
to carry out this section--
(1) $45,000,000 for fiscal year 2004;
(2) $85,000,000 for fiscal year 2005;
(3) $95,000,000 for fiscal year 2006;
(4) $95,000,000 for fiscal year 2007;
(5) $65,000,000 for fiscal year 2008;
(6) $50,000,000 for fiscal year 2009; and
(7) $15,000,000 for fiscal year 2010.
TITLE III--FEDERAL PURCHASE PROGRAM
SEC. 301. PROCUREMENT OF FUEL CELL VEHICLES.
(a) TRANSITION PLAN- Each agency of the Federal Government that maintains
a fleet of motor vehicles shall develop a plan for a transition of the fleet
to vehicles powered by fuel cell technology, including plans for necessary
fueling infrastructure, training, and maintenance and operation of such vehicles.
Each such plan shall include implementation beginning no later than fiscal
year 2008. Each plan shall incorporate and build on the results of completed
and ongoing Federal demonstration programs, and shall include additional demonstration
programs and pilot programs as necessary to test or investigate available
technologies and transition procedures.
(b) REQUIREMENT- The Secretary, in collaboration with the General Services
Administration and other Federal agencies, shall purchase and place 20,000
hydrogen-powered fuel cell vehicles by 2010 in Federal fleets and the requisite
fueling infrastructure.
(c) EXCEPTIONS- The head of an executive agency is not required to procure
a fuel cell vehicle under subsection (c) if--
(1) no fuel cell vehicle is available that meets the requirements of the
executive agency; or
(2) it is not practicable to do so for a particular agency or instance.
(d) PROCUREMENT PLANNING- The head of an executive agency shall incorporate
into the specifications for all designs and procurements, and into the factors
for the evaluation of offers received for the procurement, criteria for fuel
cell vehicles that are consistent with vehicle purchasing requirements.
(e) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated
to carry out this section--
(1) $10,000,000 for fiscal year 2005;
(2) $15,000,000 for fiscal year 2006;
(3) $50,000,000 for fiscal year 2007;
(4) $150,000,000 for fiscal year 2008;
(5) $175,000,000 for fiscal year 2009;
(6) $170,000,000 for fiscal year 2010;
(7) $110,000,000 for fiscal year 2011;
(8) $65,000,000 for fiscal year 2012; and
(9) $55,000,000 for fiscal year 2013.
SEC. 302. FEDERAL STATIONARY FUEL CELL POWER PURCHASE PROGRAM.
(a) PROGRAM- The Secretary shall establish a program within 1 year after the
date of enactment of this Act for the acquisition by Federal agencies of--
(1) up to 200 megawatts of commercially available fuel cell power plants;
(2) up to 200 megawatts of power generated from commercially available fuel
cell power plants; or
(3) a combination thereof, by 2006 and annually thereafter for use at federally-owned
or -operated facilities, Federal residences, and Federal portable applications.
The Secretary shall provide funding for purchase, site engineering, installation,
startup, training, operation, and maintenance costs associated with the
acquisition of such power or power plants, along with any other necessary
assistance.
(b) DOMESTIC ASSEMBLY- All fuel cell systems in power plants acquired, or
from which power is acquired, under subsection (a) shall be assembled in the
United States.
(c) SITE SELECTION- In the selection of federally-owned or -operated facilities
as a site for the location of power plants acquired under this section, or
as a site to receive power acquired under this section, priority shall be
given to sites with 1 or more of the following attributes:
(1) Location (of the Federal facility or the generating power plant) in
an area classified as a nonattainment area under title I of the Clean Air
Act.
(2) Computer or electronic operations that are sensitive to power supply
disruptions.
(3) Need for a reliable, uninterrupted power supply.
(4) Academic institution.
(5) Rural or remote location, or other factors requiring off-grid power
generation.
(6) Critical manufacturing or other activities that support national security
efforts.
(d) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated
to carry out this section--
(1) $5,000,000 for fiscal year 2004;
(2) $10,000,000 for fiscal year 2005;
(3) $15,000,000 for fiscal year 2006;
(4) $50,000,000 for fiscal year 2007;
(5) $75,000,000 for fiscal year 2008;
(6) $85,000,000 for fiscal year 2009;
(7) $75,000,000 for fiscal year 2010;
(8) $50,000,000 for fiscal year 2011;
(9) $25,000,000 for fiscal year 2012; and
(10) $10,000,000 for fiscal year 2013.
(e) LIFE CYCLE COST BENEFIT- Any life cycle cost benefit analysis undertaken
by a Federal agency with respect to investments in fuel cell products, services,
construction, and other projects shall include an analysis of environmental,
power reliability, and oil dependence factors.
SEC. 303. ESTABLISHMENT OF AN INTERAGENCY TASK FORCE.
(a) ESTABLISHMENT- Not later than 120 days after the date of enactment of
this Act, the Secretary shall establish an interagency task force led by the
Secretary's designee and comprised of representatives of--
(1) the Office of Science and Technology Policy;
(2) the Department of Transportation;
(3) the Department of Defense;
(4) the Department of Commerce (including the National Institute of Standards
and Technology);
(5) the Environmental Protection Agency;
(6) the National Aeronautics and Space Administration; and
(7) other Federal agencies as appropriate.
(b) DUTIES- The task force shall develop a plan for carrying out titles II
and III.
(c) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated
such sums as may be necessary to carry out the requirements of this section.
TITLE IV--REMOVAL OF REGULATORY BARRIERS
SEC. 401. AMENDMENTS TO PURPA.
(a) ADOPTION OF STANDARDS- Section 113(b) of the Public Utility Regulatory
Policies Act of 1978 (16 U.S.C. 2623(b)) is amended by adding at the end the
following:
`(6) DISTRIBUTED GENERATION- Each electric utility shall provide distributed
generation, combined heat and power, and district heating and cooling systems
competitive access to the local distribution grid and competitive pricing
of service, and shall use simplified standard contracts for the interconnection
of generating facilities that have a power production capacity of 250 kilowatts
or less per unit.
`(7) DISTRIBUTION INTERCONNECTIONS- No electric utility may refuse to interconnect
a generating facility with the distribution facilities of the electric utility
if the owner or operator of the generating facility complies with procedures
adopted by the State regulatory authority and agrees to pay the costs established
by such State regulatory authority.
`(8) MINIMUM FUEL AND TECHNOLOGY DIVERSITY STANDARD- Each electric utility
shall develop a plan to minimize dependence on 1 fuel source and to ensure
that the electric energy it sells to consumers is generated using a diverse
range of fuels and technologies, including renewable and high-efficiency
technologies.
`(9) PROHIBITED RATES AND CHARGES- No electric utility shall charge the
owner or operator of an on-site generating facility an additional standby,
capacity, interconnection, or other rate or charge.'.
(b) TIME FOR ADOPTING STANDARDS- Section 113 of the Public Utility Regulatory
Policies Act of 1978 (16 U.S.C. 2623) is further amended by adding at the
end the following:
`(d) SPECIAL RULE- For purposes of implementing paragraphs (6), (7), (8),
and (9) of subsection (b), any reference contained in this section to the
date of enactment of the Public Utility Regulatory Policies Act of 1978,
shall be deemed to be a reference to the date of enactment of this subsection.'.
SEC. 402. NET METERING.
(a) ADOPTION OF STANDARD- Section 111(d) of the Public Utility Regulatory
Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by adding at the end the
following:
`(11) NET METERING- (A) Each electric utility shall make available upon
request net metering service to any electric consumer that the electric
utility serves.
`(B) For purposes of implementing this paragraph, any reference contained
in this section to the date of enactment of the Public Utility Regulatory
Policies Act of 1978, shall be deemed to be a reference to the date of enactment
of this paragraph.
`(C) The Commission shall implement the standards set out in this section
not later than 1 year after the date of enactment of this paragraph. Notwithstanding
subsections (b) and (c) of section 112, a State may adopt alternative standards
or procedures regarding net metering as defined in this section; provided
that net metering service, pursuant to standards and procedures adopted
by the Commission, shall be available to any electric consumer within any
State notwithstanding the adoption by any State of such alternative standards
or procedures.
`(D) Notwithstanding subsections (b) and (c) of section 112, each State
regulatory authority shall consider and make a determination concerning
whether it is appropriate to implement the standard set out in subparagraph
(A) not later than 1 year after the date of enactment of this paragraph.'.
(b) SPECIAL RULES FOR NET METERING- Section 115 of the Public Utility Regulatory
Policies Act of 1978 (16 U.S.C. 2625) is amended by adding at the end the
following:
`(1) RATES AND CHARGES- An electric utility--
`(A) shall charge the owner or operator of an on-site generating facility
rates and charges that are identical to those that would be charged other
electric consumers of the electric utility in the same rate class to which
the owner or operator would be assigned if there were no on-site generating
facility; and
`(B) shall not charge the owner or operator of an on-site generating facility
any additional standby, capacity, interconnection, or other rate or charge.
`(2) MEASUREMENT- An electric utility that sells electric energy to the
owner or operator of an on-site generating facility shall measure the quantity
of electric energy produced by the on-site facility, using a single meter
unless the electric utility can establish to the State regulatory authority
that a single meter is not technically feasible, and the quantity of electric
energy consumed by the owner or operator of an on-site generating facility
during a billing period is in accordance with normal metering practices.
`(3) ELECTRIC ENERGY SUPPLIED EXCEEDING ELECTRIC ENERGY GENERATED- If the
quantity of electric energy sold by the electric utility to an on-site generating
facility exceeds the quantity of electric energy supplied by the on-site
generating facility to the electric utility during the billing period, the
electric utility may bill the owner or operator for the net quantity of
electric energy sold, in accordance with normal metering practices.
`(4) ELECTRIC ENERGY GENERATED EXCEEDING ELECTRIC ENERGY SUPPLIED- If the
quantity of electric energy supplied by the on-site generating facility
to the electric utility exceeds the quantity of electric energy sold by
the electric utility to the on-site generating facility during the billing
period--
`(A) the electric utility may bill the owner or operator of the on-site
generating facility for the appropriate charges for the billing period
in accordance with paragraph (2); and
`(B) the owner or operator of the on-site generating facility shall be
credited for the excess kilowatt-hours generated during the billing period,
with the kilowatt-hour credit appearing on the bill for the following
billing period.
`(5) SAFETY AND PERFORMANCE STANDARDS- An eligible on-site generating facility
and net metering system used by an electric consumer shall be interconnected
provided the facility meets all applicable safety, performance, reliability,
and interconnection standards established by the National Electrical Code,
the Institute of Electrical and Electronics Engineers, and Underwriters
Laboratories.
`(6) ADDITIONAL CONTROL AND TESTING REQUIREMENTS- The Commission, after
consultation with State regulatory authorities and nonregulated electric
utilities and after notice and opportunity for comment, may adopt, by rule,
additional control and testing requirements for on-site generating facilities
and net metering systems that the Commission determines are necessary to
protect public safety and system reliability.
`(7) DEFINITIONS- For purposes of this subsection--
`(A) the term `eligible on-site generating facility' means--
`(i) a facility on the site of a residential electric consumer with
a maximum generating capacity of 10 kilowatts or less per unit that
is fueled by solar energy, wind energy, or fuel cells; or
`(ii) a facility on the site of a commercial electric consumer with
a maximum generating capacity of 500 kilowatts or less per unit that
is fueled solely by a renewable energy resource, landfill gas, or a
high efficiency system;
`(B) the term `renewable energy resource' means solar, wind, biomass,
or geothermal energy;
`(C) the term `high efficiency system' means fuel cells or combined heat
and power; and
`(D) the term `net metering service' means service to an electric consumer
under which electric energy generated by that electric consumer from an
eligible on-site generating facility and delivered to the local distribution
facilities may be used to offset electric energy provided by the electric
utility to the electric consumer during the applicable billing period.'.
SEC. 403. DEPARTMENT OF ENERGY STUDY.
The Secretary, in consultation with other Federal agencies, as appropriate,
shall identify barriers to the introduction of portable fuel cells, including
regulatory barriers, and take appropriate action to eliminate such barriers
in a timely fashion.
TITLE V--TAX INCENTIVES FOR HYDROGEN FUEL CELL TECHNOLOGY
SEC. 501. HYDROGEN FUEL CELL MOTOR VEHICLE CREDIT.
(a) IN GENERAL- Subpart B of part IV of subchapter A of chapter 1 of the Internal
Revenue Code of 1986 (relating to foreign tax credit, etc.) is amended by
adding at the end the following new section:
`SEC. 30B. HYDROGEN FUEL CELL MOTOR VEHICLE CREDIT.
`(a) ALLOWANCE OF CREDIT- There shall be allowed as a credit against the tax
imposed by this chapter for the taxable year an amount equal to the new qualified
hydrogen fuel cell motor vehicle credit determined under subsection (b).
`(b) NEW QUALIFIED HYDROGEN FUEL CELL MOTOR VEHICLE CREDIT-
`(1) IN GENERAL- For purposes of subsection (a), the new qualified hydrogen
fuel cell motor vehicle credit determined under this subsection with respect
to a new qualified hydrogen fuel cell motor vehicle placed in service by
the taxpayer during the taxable year is--
`(A) $4,000, if such vehicle has a gross vehicle weight rating of not
more than 8,500 pounds,
`(B) $10,000, if such vehicle has a gross vehicle weight rating of more
than 8,500 pounds but not more than 14,000 pounds,
`(C) $20,000, if such vehicle has a gross vehicle weight rating of more
than 14,000 pounds but not more than 26,000 pounds, and
`(D) $40,000, if such vehicle has a gross vehicle weight rating of more
than 26,000 pounds.
`(2) INCREASE FOR FUEL EFFICIENCY-
`(A) IN GENERAL- The amount determined under paragraph (1)(A) with respect
to a new qualified hydrogen fuel cell motor vehicle which is a passenger
automobile or light truck shall be increased by--
`(i) $1,000, if such vehicle achieves at least 150 percent but less
than 175 percent of the 2000 model year city fuel economy,
`(ii) $1,500, if such vehicle achieves at least 175 percent but less
than 200 percent of the 2000 model year city fuel economy,
`(iii) $2,000, if such vehicle achieves at least 200 percent but less
than 225 percent of the 2000 model year city fuel economy,
`(iv) $2,500, if such vehicle achieves at least 225 percent but less
than 250 percent of the 2000 model year city fuel economy,
`(v) $3,000, if such vehicle achieves at least 250 percent but less
than 275 percent of the 2000 model year city fuel economy,
`(vi) $3,500, if such vehicle achieves at least 275 percent but less
than 300 percent of the 2000 model year city fuel economy, and
`(vii) $4,000, if such vehicle achieves at least 300 percent of the
2000 model year city fuel economy.
`(B) 2000 MODEL YEAR CITY FUEL ECONOMY- For purposes of subparagraph (A),
the 2000 model year city fuel economy with respect to a vehicle shall
be determined in accordance with the following tables:
`(i) In the case of a passenger automobile:
The 2000 model year city
`If vehicle inertia weight class is:
fuel economy is:
1,500 or 1,750 lbs
43.7 mpg
2,000 lbs
38.3 mpg
2,250 lbs
34.1 mpg
2,500 lbs
30.7 mpg
2,750 lbs
27.9 mpg
3,000 lbs
25.6 mpg
3,500 lbs
22.0 mpg
4,000 lbs
19.3 mpg
4,500 lbs
17.2 mpg
5,000 lbs
15.5 mpg
5,500 lbs
14.1 mpg
6,000 lbs
12.9 mpg
6,500 lbs
11.9 mpg
7,000 to 8,500 lbs
11.1 mpg.
`(ii) In the case of a light truck:
The 2000 model year city
`If vehicle inertia weight class is:
fuel economy is:
1,500 or 1,750 lbs
37.6 mpg
2,000 lbs
33.7 mpg
2,250 lbs
30.6 mpg
2,500 lbs
28.0 mpg
2,750 lbs
25.9 mpg
3,000 lbs
24.1 mpg
3,500 lbs
21.3 mpg
4,000 lbs
19.0 mpg
4,500 lbs
17.3 mpg
5,000 lbs
15.8 mpg
5,500 lbs
14.6 mpg
6,000 lbs
13.6 mpg
6,500 lbs
12.8 mpg
7,000 to 8,500 lbs
12.0 mpg.
`(C) VEHICLE INERTIA WEIGHT CLASS- For purposes of subparagraph (B), the
term `vehicle inertia weight class' has the same meaning as when defined
in regulations prescribed by the Administrator of the Environmental Protection
Agency for purposes of the administration of title II of the Clean Air
Act (42 U.S.C. 7521 et seq.).
`(3) NEW QUALIFIED HYDROGEN FUEL CELL MOTOR VEHICLE- For purposes of this
subsection, the term `new qualified hydrogen fuel cell motor vehicle' means
a motor vehicle--
`(A) which is propelled by power derived from one or more cells which
convert chemical energy directly into electricity by combining oxygen
with hydrogen fuel which is stored on
board the vehicle in any form and may or may not require reformation prior
to use,
`(B) which, in the case of a passenger automobile or light truck--
`(i) for 2003 model vehicles, has received a certificate of conformity
under the Clean Air Act and meets or exceeds the equivalent qualifying
California low emission vehicle standard under section 243(e)(2) of
the Clean Air Act for that make and model year, and
`(ii) for 2004 and later model vehicles, has received a certificate
that such vehicle meets or exceeds the Bin 5 Tier II emission level
established in regulations prescribed by the Administrator of the Environmental
Protection Agency under section 202(i) of the Clean Air Act for that
make and model year vehicle,
`(C) the original use of which commences with the taxpayer,
`(D) which is acquired for use or lease by the taxpayer and not for resale,
and
`(E) which is made by a manufacturer.
`(c) APPLICATION WITH OTHER CREDITS- The credit allowed under subsection (a)
for any taxable year shall not exceed the excess (if any) of--
`(1) the regular tax for the taxable year reduced by the sum of the credits
allowable under subpart A and sections 27, 29, and 30, over
`(2) the tentative minimum tax for the taxable year.
`(d) OTHER DEFINITIONS AND SPECIAL RULES- For purposes of this section--
`(1) MOTOR VEHICLE- The term `motor vehicle' has the meaning given such
term by section 30(c)(2).
`(2) CITY FUEL ECONOMY- The city fuel economy with respect to any vehicle
shall be measured in a manner which is substantially similar to the manner
city fuel economy is measured in accordance with procedures under part 600
of subchapter Q of chapter I of title 40, Code of Federal Regulations, as
in effect on the date of the enactment of this section.
`(3) OTHER TERMS- The terms `automobile', `passenger automobile', `light
truck', and `manufacturer' have the meanings given such terms in regulations
prescribed by the Administrator of the Environmental Protection Agency for
purposes of the administration of title II of the Clean Air Act (42 U.S.C.
7521 et seq.).
`(4) REDUCTION IN BASIS- For purposes of this subtitle, the basis of any
property for which a credit is allowable under subsection (a) shall be reduced
by the amount of such credit so allowed (determined without regard to subsection
(c)).
`(5) NO DOUBLE BENEFIT- The amount of any deduction or other credit allowable
under this chapter with respect to a new qualified hydrogen fuel cell motor
vehicle shall be reduced by the amount of credit allowed under subsection
(a) for such vehicle for the taxable year.
`(6) PROPERTY USED BY TAX-EXEMPT ENTITIES- In the case of a credit amount
which is allowable with respect to a new qualified hydrogen fuel cell motor
vehicle which is acquired by an entity exempt from tax under this chapter,
the person which sells or leases such vehicle to the entity shall be treated
as the taxpayer with respect to the vehicle for purposes of this section
and the credit shall be allowed to such person, but only if the person clearly
discloses to the entity at the time of any sale or lease the specific amount
of any credit otherwise allowable to the entity under this section.
`(7) RECAPTURE- The Secretary shall, by regulations, provide for recapturing
the benefit of any credit allowable under subsection (a) with respect to
any property which ceases to be property eligible for such credit (including
recapture in the case of a lease period of less than the economic life of
a vehicle).
`(8) PROPERTY USED OUTSIDE UNITED STATES, ETC., NOT QUALIFIED- No credit
shall be allowed under subsection (a) with respect to any property referred
to in section 50(b) or with respect to the portion of the cost of any property
taken into account under section 179.
`(9) ELECTION TO NOT TAKE CREDIT- No credit shall be allowed under subsection
(a) for any vehicle if the taxpayer elects to not have this section apply
to such vehicle.
`(10) CARRYBACK AND CARRYFORWARD ALLOWED-
`(A) IN GENERAL- If the credit amount allowable under subsection (a) for
a taxable year exceeds the amount of the limitation under subsection (c)
for such taxable year (in this paragraph referred to as the `unused credit
year'), such excess shall be allowed as a credit carryback for each of
the 3 taxable years beginning after the date of the enactment of this
section which precede the unused credit year and a credit carryforward
for each of the 20 taxable years which succeed the unused credit year.
`(B) RULES- Rules similar to the rules of section 39 shall apply with
respect to the credit carryback and credit carryforward under subparagraph
(A).
`(11) INTERACTION WITH AIR QUALITY AND MOTOR VEHICLE SAFETY STANDARDS- Unless
otherwise provided in this section, a motor vehicle shall not be considered
eligible for a credit under this section unless such vehicle is in compliance
with--
`(A) the applicable provisions of the Clean Air Act for the applicable
make and model year of the vehicle (or applicable air quality provisions
of State law in the case of a State which has adopted such provision under
a waiver under section 209(b) of the Clean Air Act), and
`(B) the motor vehicle safety provisions of sections 30101 through 30169
of title 49, United States Code.
`(1) IN GENERAL- Except as provided in paragraph (2), the Secretary shall
promulgate such regulations as necessary to carry out the provisions of
this section.
`(2) COORDINATION IN PRESCRIPTION OF CERTAIN REGULATIONS- The Secretary
of the Treasury, in coordination with the Secretary of Transportation and
the Administrator of the Environmental Protection Agency, shall prescribe
such regulations as necessary to determine whether a motor vehicle meets
the requirements to be eligible for a credit under this section.'.
(b) CONFORMING AMENDMENTS-
(1) Section 1016(a) of the Internal Revenue Code of 1986 is amended by striking
`and' at the end of paragraph (27), by striking the period at the end of
paragraph (28) and inserting `, and', and by adding at the end the following
new paragraph:
`(29) to the extent provided in section 30B(d)(4).'.
(2) Section 55(c)(2) of such Code is amended by inserting `30B(c),' after
`30(b)(3)'.
(3) Section 6501(m) of such Code is amended by inserting `30B(d)(9),' after
`30(d)(4),'.
(4) The table of sections for subpart B of part IV of subchapter A of chapter
1 of such Code is amended by inserting after the item relating to section
30A the following new item:
`Sec. 30B. Hydrogen fuel cell motor vehicle credit.'.
(c) EFFECTIVE DATE- The amendments made by this section shall apply to property
placed in service after the date of the enactment of this Act, in taxable
years ending after such date.
SEC. 502. CREDIT FOR INSTALLATION OF HYDROGEN FUEL CELL MOTOR VEHICLE FUELING
STATIONS.
(a) IN GENERAL- Subpart B of part IV of subchapter A of chapter 1 of the Internal
Revenue Code of 1986 (relating to foreign tax credit, etc.), as amended by
this Act, is amended by adding at the end the following new section:
`SEC. 30C. HYDROGEN FUEL CELL MOTOR VEHICLE REFUELING PROPERTY CREDIT.
`(a) CREDIT ALLOWED- There shall be allowed as a credit against the tax imposed
by this chapter for the taxable year an amount equal to 50 percent of the
amount paid or incurred by the taxpayer during the taxable year for the installation
of qualified hydrogen fuel cell motor vehicle refueling property.
`(b) LIMITATION- The credit allowed under subsection (a)--
`(1) with respect to any retail hydrogen fuel cell motor vehicle refueling
property, shall not exceed $30,000, and
`(2) with respect to any residential hydrogen fuel cell motor vehicle refueling
property, shall not exceed $1,500.
`(c) YEAR CREDIT ALLOWED- The credit allowed under subsection (a) shall be
allowed in the taxable year in which the qualified hydrogen fuel cell motor
vehicle refueling property is placed in service by the taxpayer.
`(d) DEFINITIONS- For purposes of this section--
`(1) QUALIFIED HYDROGEN FUEL CELL MOTOR VEHICLE REFUELING PROPERTY- The
term `qualified hydrogen fuel cell motor vehicle refueling property' means
any property (not including a building and its structural components) if--
`(A) such property is of a character subject to the allowance for depreciation,
`(B) the original use of such property begins with the taxpayer, and
`(C) such property is for the storage or dispensing of hydrogen fuel into
the fuel tank of a motor vehicle propelled by such fuel, but only if the
storage or dispensing of the fuel is at the point where such fuel is delivered
into the fuel tank of the motor vehicle.
In the case of hydrogen produced from another clean-burning fuel (as defined
in section 179A(c)(1)), subparagraph (C) shall be applied by substituting
`production, storage, or dispensing' for `storage or dispensing' both places
it appears.
`(2) RESIDENTIAL HYDROGEN FUEL CELL MOTOR VEHICLE REFUELING PROPERTY- The
term `residential hydrogen fuel cell motor vehicle refueling property' means
qualified hydrogen fuel cell motor vehicle refueling property which is installed
on property which is used as the principal residence (within the meaning
of section 121) of the taxpayer.
`(3) RETAIL HYDROGEN FUEL CELL MOTOR VEHICLE REFUELING PROPERTY- The term
`retail hydrogen fuel cell motor vehicle refueling property' means qualified
hydrogen fuel cell motor vehicle refueling property which is installed on
property (other than property described in paragraph (2)) used in a trade
or business of the taxpayer.
`(e) APPLICATION WITH OTHER CREDITS- The credit allowed under subsection (a)
for any taxable year shall not exceed the excess (if any) of--
`(1) the regular tax for the taxable year reduced by the sum of the credits
allowable under subpart A and sections 27, 29, 30, and 30B, over
`(2) the tentative minimum tax for the taxable year.
`(f) BASIS REDUCTION- For purposes of this title, the basis of any property
shall be reduced by the portion of the cost of such property taken into account
under subsection (a).
`(g) NO DOUBLE BENEFIT- No deduction shall be allowed under section 179A with
respect to any property with respect to which a credit is allowed under subsection
(a).
`(h) REFUELING PROPERTY INSTALLED FOR TAX-EXEMPT ENTITIES- In the case of
qualified hydrogen fuel cell motor vehicle refueling property installed on
property owned or used by an entity exempt from tax under this chapter, the
person which installs such refueling property for the entity shall be treated
as the taxpayer with respect to the refueling property for purposes of this
section (and such refueling property shall be treated as retail hydrogen fuel
cell motor vehicle refueling property) and the credit shall be allowed to
such person, but only if the person clearly discloses to the entity in any
installation
contract the specific amount of the credit allowable under this section.
`(i) CARRYFORWARD ALLOWED-
`(1) IN GENERAL- If the credit amount allowable under subsection (a) for
a taxable year exceeds the amount of the limitation under subsection (e)
for such taxable year (referred to as the `unused credit year' in this subsection),
such excess shall be allowed as a credit carryforward for each of the 20
taxable years following the unused credit year.
`(2) RULES- Rules similar to the rules of section 39 shall apply with respect
to the credit carryforward under paragraph (1).
`(j) SPECIAL RULES- Rules similar to the rules of paragraphs (4) and (5) of
section 179A(e) shall apply.
`(k) REGULATIONS- The Secretary shall prescribe such regulations as necessary
to carry out the provisions of this section.'.
(b) INCENTIVE FOR PRODUCTION OF HYDROGEN AT QUALIFIED CLEAN-FUEL VEHICLE REFUELING
PROPERTY- Section 179A(d) of the Internal Revenue Code of 1986 (defining qualified
clean-fuel vehicle refueling property) is amended by adding at the end the
following new flush sentence:
`In the case of clean-burning fuel which is hydrogen produced from another
clean-burning fuel, paragraph (3)(A) shall be applied by substituting `production,
storage, or dispensing' for `storage or dispensing' both places it appears.'.
(c) MODIFICATIONS TO EXTENSION OF DEDUCTION FOR HYDROGEN REFUELING PROPERTY-
(1) IN GENERAL- Section 179A(f) of the Internal Revenue Code of 1986 (relating
to termination) is amended by inserting `(other than property relating to
hydrogen)' after `property'.
(2) NONAPPLICATION OF PHASEOUT- Section 179A(b)(1)(B) of such Code (relating
to phaseout) is amended by inserting `(other than property relating to hydrogen)'
after `property'.
(d) CONFORMING AMENDMENTS-
(1) Section 1016(a) of the Internal Revenue Code of 1986, as amended by
this Act, is amended by striking `and' at the end of paragraph (28), by
striking the period at the end of paragraph (29) and inserting `, and',
and by adding at the end the following new paragraph:
`(30) to the extent provided in section 30C(f).'.
(2) Section 55(c)(2) of such Code, as amended by this Act, is amended by
inserting `30C(e),' after `30B(e)'.
(3) The table of sections for subpart B of part IV of subchapter A of chapter
1 of such Code, as amended by this Act, is amended by inserting after the
item relating to section 30B the following new item:
`Sec. 30C. Hydrogen fuel cell motor vehicle refueling property credit.'.
(e) EFFECTIVE DATE- The amendments made by this section shall apply to property
placed in service after the date of the enactment of this Act, in taxable
years ending after such date.
SEC. 503. CREDIT FOR RESIDENTIAL FUEL CELL PROPERTY.
(a) IN GENERAL- Subpart A of part IV of subchapter A of chapter 1 of the Internal
Revenue Code of 1986 (relating to nonrefundable personal credits) is amended
by inserting after section 25B the following new section:
`SEC. 25C. RESIDENTIAL FUEL CELL PROPERTY.
`(a) ALLOWANCE OF CREDIT- In the case of an individual, there shall be allowed
as a credit against the tax imposed by this chapter for the taxable year an
amount equal to 30 percent of the qualified fuel cell property expenditures
made by the taxpayer during such year.
`(1) MAXIMUM CREDIT- The credit allowed under subsection (a) shall not exceed
$1,000 for each kilowatt of capacity.
`(2) SAFETY CERTIFICATIONS- No credit shall be allowed under this section
for an item of property unless such property meets appropriate fire and
electric code requirements.
`(c) CARRYFORWARD OF UNUSED CREDIT- If the credit allowable under subsection
(a) exceeds the limitation imposed by section 26(a) for such taxable year
reduced by the sum of the credits allowable under this subpart (other than
this section), such excess shall be carried to the succeeding taxable year
and added to the credit allowable under subsection (a) for such succeeding
taxable year.
`(d) DEFINITIONS- For purposes of this section--
`(1) QUALIFIED FUEL CELL PROPERTY EXPENDITURE- The term `qualified fuel
cell property expenditure' means an expenditure for qualified fuel cell
property (as defined in section 48(a)(4)) installed on or in connection
with a dwelling unit located in the United States and used as a residence
by the taxpayer, including all necessary installation fees and charges.
`(2) LABOR COSTS- Expenditures for labor costs properly allocable to the
onsite preparation, assembly, or original installation of such property
and for piping or wiring to interconnect such property to the dwelling unit
shall be taken into account for purposes of this section.
`(e) SPECIAL RULES- For purposes of this section--
`(1) DOLLAR AMOUNTS IN CASE OF JOINT OCCUPANCY- In the case of any dwelling
unit which is jointly occupied and used during any calendar year as a residence
by 2 or more individuals the following shall apply:
`(A) The amount of the credit allowable, under subsection (a) by reason
of expenditures (as the case may be) made during such calendar year by
any of such individuals with respect to such dwelling unit shall be determined
by treating all of such individuals as 1 taxpayer whose taxable year is
such calendar year.
`(B) There shall be allowable, with respect to such expenditures to each
of such individuals, a credit under subsection (a) for the taxable year
in which such calendar year ends in an amount which bears the same ratio
to the
amount determined under subparagraph (A) as the amount of such expenditures
made by such individual during such calendar year bears to the aggregate of
such expenditures made by all of such individuals during such calendar year.
`(2) TENANT-STOCKHOLDER IN COOPERATIVE HOUSING CORPORATION- In the case
of an individual who is a tenant-stockholder (as defined in section 216)
in a cooperative housing corporation (as defined in such section), such
individual shall be treated as having made his tenant-stockholder's proportionate
share (as defined in section 216(b)(3)) of any expenditures of such corporation.
`(A) IN GENERAL- In the case of an individual who is a member of a condominium
management association with respect to a condominium which the individual
owns, such individual shall be treated as having made the individual's
proportionate share of any expenditures of such association.
`(B) CONDOMINIUM MANAGEMENT ASSOCIATION- For purposes of this paragraph,
the term `condominium management association' means an organization which
meets the requirements of paragraph (1) of section 528(c) (other than
subparagraph (E) thereof) with respect to a condominium project substantially
all of the units of which are used as residences.
`(4) ALLOCATION IN CERTAIN CASES- If less than 80 percent of the use of
an item is for nonbusiness purposes, only that portion of the expenditures
for such item which is properly allocable to use for nonbusiness purposes
shall be taken into account.
`(5) WHEN EXPENDITURE MADE; AMOUNT OF EXPENDITURE-
`(A) IN GENERAL- Except as provided in subparagraph (B), an expenditure
with respect to an item shall be treated as made when the original installation
of the item is completed.
`(B) EXPENDITURES PART OF BUILDING CONSTRUCTION- In the case of an expenditure
in connection with the construction or reconstruction of a structure,
such expenditure shall be treated as made when the original use of the
constructed or reconstructed structure by the taxpayer begins.
`(C) AMOUNT- The amount of any expenditure shall be the cost thereof.
`(6) PROPERTY FINANCED BY SUBSIDIZED ENERGY FINANCING- For purposes of determining
the amount of expenditures made by any individual with respect to any dwelling
unit, there shall not be taken in to account expenditures which are made
from subsidized energy financing (as defined in section 48(a)(5)(C)).
`(f) BASIS ADJUSTMENTS- For purposes of this subtitle, if a credit is allowed
under this section for any expenditure with respect to any property, the increase
in the basis of such property which would (but for this subsection) result
from such expenditure shall be reduced by the amount of the credit so allowed.'.
(b) CREDIT ALLOWED AGAINST REGULAR TAX AND ALTERNATIVE MINIMUM TAX-
(1) IN GENERAL- Section 25C(b) of the Internal Revenue Code of 1986, as
added by subsection (a), is amended by adding at the end the following new
paragraph:
`(3) LIMITATION BASED ON AMOUNT OF TAX- The credit allowed under subsection
(a) for the taxable year shall not exceed the excess of--
`(A) the sum of the regular tax liability (as defined in section 26(b))
plus the tax imposed by section 55, over
`(B) the sum of the credits allowable under this subpart (other than this
section) and section 27 for the taxable year.'.
(2) CONFORMING AMENDMENTS-
(A) Section 25C(c) of such Code, as added by subsection (a), is amended
by striking `section 26(a) for such taxable year reduced by the sum of
the credits allowable under this subpart (other than this section)' and
inserting `subsection (b)(3)'.
(B) Section 23(b)(4)(B) of such Code is amended by inserting `and section
25C' after `this section'.
(C) Section 24(b)(3)(B) of such Code is amended by striking `23 and 25B'
and inserting `23, 25B, and 25C'.
(D) Section 25(e)(1)(C) of such Code is amended by inserting `25C,' after
`25B,'.
(E) Section 25B(g)(2) of such Code is amended by striking `section 23'
and inserting `sections 23 and 25C'.
(F) Section 26(a)(1) of such Code is amended by striking `and 25B' and
inserting `25B, and 25C'.
(G) Section 904(h) of such Code is amended by striking `and 25B' and inserting
`25B, and 25C'.
(H) Section 1400C(d) of such Code is amended by striking `and 25B' and
inserting `25B, and 25C'.
(c) ADDITIONAL CONFORMING AMENDMENTS-
(1) Section 23(c) of the Internal Revenue Code of 1986, as in effect for
taxable years beginning before January 1, 2004, is amended by striking `section
1400C' and inserting `sections 25C and 1400C'.
(2) Section 25(e)(1)(C) of such Code, as in effect for taxable years beginning
before January 1, 2004, is amended by inserting `, 25C,' after `sections
23'.
(3) Subsection (a) of section 1016 of such Code, as amended by this Act,
is amended by striking `and' at the end of paragraph (29), by striking the
period at the end of paragraph (30) and inserting `, and', and by adding
at the end the following new paragraph:
`(31) to the extent provided in section 25C(f), in the case of amounts with
respect to which a credit has been allowed under section 25C.'.
(4) Section 1400C(d) of such Code, as in effect for taxable years beginning
before January 1, 2004, is amended by inserting `and section 25C' after
`this section'.
(5) The table of sections for subpart A of part IV of subchapter A of chapter
1 of such Code is amended by inserting after the item relating to section
25B the following new item:
`Sec. 25C. Residential fuel cell property.'.
(1) IN GENERAL- Except as provided by paragraph (2), the amendments made
by this section shall apply to expenditures after the date of the enactment
of this Act, in taxable years ending after such date.
(2) SUBSECTION (b)- The amendments made by subsection (b) shall apply to
taxable years beginning after December 31, 2003.
SEC. 504. CREDIT FOR BUSINESS INSTALLATION OF QUALIFIED FUEL CELLS.
(a) IN GENERAL- Subparagraph (A) of section 48(a)(3) of the Internal Revenue
Code of 1986 (defining energy property) is amended by striking `or' at the
end of clause (i), by adding `or' at the end of clause (ii), and by inserting
after clause (ii) the following new clause:
`(iii) qualified fuel cell property,'.
(b) QUALIFIED FUEL CELL PROPERTY- Subsection (a) of section 48 is amended
by redesignating paragraphs (4) and (5) as paragraphs (5) and (6), respectively,
and by inserting after paragraph (3) the following new paragraph:
`(4) QUALIFIED FUEL CELL PROPERTY- For purposes of this subsection--
`(A) IN GENERAL- The term `qualified fuel cell property' means a fuel
cell power plant that--
`(i) generates electricity using an electrochemical process, and
`(ii) has an electricity-only generation efficiency greater than 30
percent at rated power.
`(B) LIMITATION- In the case of qualified fuel cell property placed in
service during the taxable year, the credit determined under paragraph
(1) for such year with respect to such property shall not exceed an amount
equal to the lesser of--
`(i) 30 percent of the basis of such property, including all necessary
installation fees and charges, or
`(ii) $1,000 for each kilowatt of capacity of such property.
`(C) SPECIAL RULES- For purposes of subparagraph (A)(ii)--
`(i) ELECTRICITY-ONLY GENERATION EFFICIENCY- The electricity-only generation
efficiency percentage of a fuel cell power plant is the fraction--
`(I) the numerator of which is the total useful electrical power produced
by such plant at normal operating rates, and expected to be consumed
in its normal application, and
`(II) the denominator of which is the lower heating value of the fuel
source for such plant.
`(ii) DETERMINATIONS MADE ON BTU BASIS- The electricity-only generation
efficiency percentage shall be determined on a Btu basis.
`(D) FUEL CELL POWER PLANT- The term `fuel cell power plant' means an
integrated system comprised of a fuel cell stack assembly and associated
balance of plant components that converts a fuel into electricity using
electrochemical means.'.
(c) LIMITATION- Section 48(a)(2)(A) of the Internal Revenue Code of 1986 (relating
to energy percentage) is amended to read as follows:
`(A) IN GENERAL- The energy percentage is--
`(i) in the case of qualified fuel cell property, 30 percent, and
`(ii) in the case of any other energy property, 10 percent.'.
(d) CONFORMING AMENDMENT- Section 29(b)(3)(A)(i)(III) of the Internal Revenue
Code of 1986 is amended by striking `section 48(a)(4)(C)' and inserting `section
48(a)(5)(C)'.
(e) EFFECTIVE DATE- The amendments made by this subsection shall apply to
property placed in service after the date of the enactment of this Act, under
rules similar to the rules of section 48(m) of the Internal Revenue Code of
1986 (as in effect on the day before the date of the enactment of the Revenue
Reconciliation Act of 1990).
TITLE VI--EDUCATION AND OUTREACH
SEC. 601. EDUCATION AND OUTREACH.
(a) REQUIREMENTS- The Secretary shall work with other Federal, State, and
local agencies, and academic institutions and organizations to develop a public
outreach and awareness program.
(b) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated
to the Secretary to carry out this title $7,000,000 for fiscal year 2004 and
each fiscal year thereafter through fiscal year 2013.
TITLE VII--TARGETS AND TIMETABLES
SEC. 701. DEPARTMENT OF ENERGY STRATEGY.
(a) CRITICAL TECHNOLOGY PLAN- Not later than 1 year after the date of enactment
of this Act, the Secretary shall publish and transmit to Congress a plan identifying
critical technologies, enabling strategies and applications, technical targets,
and associated timeframes that support the commercialization of hydrogen-fueled
fuel cell vehicles.
(b) CONTENTS- The plan shall describe the activities of the Department of
Energy, including a research, development, demonstration, and commercial application
program for developing technologies to support--
(1) the production and deployment of 100,000 hydrogen-fueled fuel cell vehicles
in the United States by 2010 and 2,500,000 of such vehicles by 2020 and
annually thereafter; and
(2) the integration of hydrogen activities, with associated technical targets
and timetables for the development of technologies to provide for the sale
of hydrogen at fueling stations in the United States by 2010 and 2020, respectively.
(c) PROGRESS REVIEW- The Secretary shall include in each annual budget submission
a review of the progress toward meeting the numerical targets in subsection
(b).
END
