[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 821 Introduced in Senate (IS)]
108th CONGRESS
1st Session
S. 821
To accelerate the commercialization and widespread use of hydrogen
energy and fuel cell technologies, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 8, 2003
Mr. Harkin introduced the following bill; which was read twice and
referred to the Committee on Energy and Natural ResourcesYYYYYY
_______________________________________________________________________
A BILL
To accelerate the commercialization and widespread use of hydrogen
energy and fuel cell technologies, 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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Hydrogen and Fuel
Cell Energy Act of 2003''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--HYDROGEN RESEARCH, DEVELOPMENT, AND DEMONSTRATION
Sec. 101. Short title.
Sec. 102. Amendment of the Spark M. Matsunaga Hydrogen Research,
Development, and Demonstration Act of 1990.
TITLE II--FEDERAL PURCHASES
Sec. 201. Stationary fuel cells in Federal buildings.
Sec. 202. Zero emission vehicles in Federal fleets.
TITLE III--TAX INCENTIVES
Sec. 301. Amendment of 1986 Code.
Sec. 302. Credit for fuel cell and hydrogen motor vehicles.
Sec. 303. Credit for installation of hydrogen fueling stations.
Sec. 304. Credit for retail sale of hydrogen fuel as motor vehicle
fuel.
Sec. 305. Credit for stationary and portable fuel cells.
TITLE I--HYDROGEN RESEARCH, DEVELOPMENT, AND DEMONSTRATION
SEC. 101. SHORT TITLE.
This title may be cited as the ``George E. Brown, Jr. and Robert S.
Walker Hydrogen Future Act of 2003''.
SEC. 102. AMENDMENT OF THE SPARK M. MATSUNAGA HYDROGEN RESEARCH,
DEVELOPMENT, AND DEMONSTRATION ACT OF 1990.
The Spark M. Matsunaga Hydrogen Research, Development, and
Demonstration Act of 1990 (42 U.S.C. 12401 et seq.) is amended to read
as follows:
``SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
``(a) Short Title.--This Act may be cited as the ``Spark M.
Matsunaga Hydrogen Research, Development, and Demonstration Act of
1990''.
``(b) Table of Contents.--The table of contents of this Act is as
follows:
``Sec. 1. Short title; table of contents.
``Sec. 2. Finding.
``Sec. 3. Purposes.
``Sec. 4. Definitions.
``Sec. 5. Coordination and consultation.
``Sec. 6. Advisory panel.
``Sec. 7. Interagency task force and coordination plan.
``Sec. 8. Review by the National Academy of Sciences.
``TITLE I--HYDROGEN ENERGY AND FUEL CELL TECHNOLOGY
``Sec. 101. Research and development.
``Sec. 102. Demonstrations in conjunction with research and
development.
``Sec. 103. Public education, training, and technology
transfer.
``Sec. 104. Report.
``Sec. 105. Authorization of appropriations.
``TITLE II--DEMONSTRATIONS
``Sec. 201. Federal fuel cell and hydrogen infrastructure pilot
projects.
``Sec. 202. Hydrogen transportation corridor and regional pilot
projects.
``Sec. 203. International demonstrations.
``Sec. 204. Demonstrations of renewable production of hydrogen.
``Sec. 205. Operation, cost sharing, and reporting.
``SEC. 2. FINDING.
``Congress finds that it is in the national interest to accelerate
introduction of hydrogen energy and fuel cell technologies in order
to--
``(1) increase energy efficiency and security; and
``(2) enable the use of clean, domestic, and renewable
energy sources.
``SEC. 3. PURPOSES.
``The purposes of this Act are--
``(1) to direct the Secretary to conduct a research,
development, demonstration, and commercial application program
on hydrogen production, delivery, storage, and use technologies
and fuel cell technologies;
``(2) to accelerate the commercialization and widespread
use of hydrogen energy and fuel cell technologies in
transportation, commercial, industrial, residential, and
utility applications, in order to--
``(A) reduce the life cycle pollution and
greenhouse gas emissions from energy use;
``(B) enable widespread use of renewable energy
sources by allowing clean, efficient, and flexible
storage, transportation, and use of the energy; and
``(C) promote the energy security of the United
States through use of domestic energy sources and
distributed energy infrastructure;
``(3) to reduce the costs of fuel cell stacks and of
hydrogen fuel;
``(4) to improve hydrogen storage and other critical
technologies;
``(5) to enable the economical and environmentally sound
use of renewable resources for the production of hydrogen; and
``(6) to ensure the coordinated availability of hydrogen-
powered vehicles and the necessary refueling infrastructure.
``SEC. 4. DEFINITIONS.
``In this Act:
``(1) Department.--The term `Department' means the
Department of Energy.
``(2) Panel.--The term `Panel' means the Hydrogen and Fuel
Cells Technical Advisory Panel established by section 107(a).
``(3) Secretary.--The term `Secretary' means the Secretary
of Energy.
``SEC. 5. COORDINATION AND CONSULTATION.
``(a) Responsibility of Secretary.--
``(1) In general.--The Secretary shall have overall
management responsibility for carrying out this Act.
``(2) Administrative actions.--In carrying out this Act--
``(A) the Secretary shall establish a central point
for the coordination of all hydrogen energy and fuel
cell research, development, and demonstration
activities of the Department;
``(B) the Secretary and the Panel may obtain
assistance from, any other Federal agency--
``(i) on a reimbursable or nonreimbursable
basis; and
``(ii) with the consent of the Federal
agency; and
``(C) the Secretary shall consult with--
``(i) other Federal agencies, as
appropriate; and
``(ii) the Panel.
``(b) Duplication.--The Secretary shall ensure, to the maximum
extent practicable, that activities under this Act do not--
``(1) duplicate any available research and development
results; or
``(2) displace or compete with privately-funded hydrogen
and fuel cell energy activities.
``SEC. 6. ADVISORY PANEL.
``(a) Establishment.--There is established an advisory panel, to be
known as the `Hydrogen and Fuel Cells Technical Advisory Panel', to
advise the Secretary in carrying out this Act.
``(b) Membership.--
``(1) In general.--The Secretary shall appoint to the Panel
not fewer than 9 nor more than 15 members, based on technical
and other qualifications, from--
``(A) domestic industry;
``(B) universities;
``(C) professional societies;
``(D) Federal laboratories;
``(E) financial institutions;
``(F) environmental organizations; and
``(G) such other organizations as the Secretary
determines to be appropriate.
``(2) Terms.--
``(A) In general.--The term of a member of the
Panel shall not be more than 3 years.
``(B) Staggered terms.--The Secretary may appoint
members of the Panel 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 Panel.
``(C) Reappointment.--A member of the Panel whose
term expires may be reappointed.
``(3) Chairperson.--The Panel shall select a Chairperson
from among the members of the Panel.
``(c) Review and Recommendations.--
``(1) In general.--The Panel shall review and make any
necessary recommendations to the Secretary on--
``(A) the implementation and conduct of programs
under this Act;
``(B) the economic, technological, and
environmental consequences of the deployment of
hydrogen production, delivery, and use technologies and
fuel cell technologies; and
``(C) the coordination plan prepared by the task
force under section 7(c).
``(2) Consideration by secretary.--
``(A) In general.--The Secretary shall consider,
but shall not be required to adopt, any recommendation
of the Panel under paragraph (1).
``(B) Report.--The Secretary shall include in the
report under section 104--
``(i) for each recommendation of the Panel
implemented by the Secretary, a description of
the progress made in implementing the
recommendation; and
``(ii) for each recommendation of the Panel
that is not implemented by the Secretary, an
explanation of the reasons why the
recommendation was not implemented.
``(d) Support.--The Secretary shall provide such staff, funds, and
other assistance as are necessary to enable the Panel to carry out the
responsibilities of the Panel.
``SEC. 7. INTERAGENCY TASK FORCE AND COORDINATION PLAN.
``(a) Establishment.--Not later than 120 days after the date of
enactment of the Hydrogen and Fuel Cell Energy Act of 2003, the
President shall establish an interagency task force to coordinate
Federal hydrogen and fuel cell energy activities.
``(b) Membership.--The task force shall include--
``(1) the Director of the Office of Science and Technology
Policy, who shall act as chairperson; and
``(2) representatives of--
``(A) the Department of Energy;
``(B) the Department of Transportation;
``(C) the Department of Defense;
``(D) the Department of Commerce (including the
National Institute for Standards and Technology);
``(E) the Environmental Protection Agency;
``(F) the National Aeronautics and Space
Administration;
``(G) the Department of State; and
``(H) such other Federal agencies as the President
considers appropriate.
``(c) Coordination Plan.--The task force shall prepare a
comprehensive coordination plan for Federal hydrogen and fuel cell
energy activities, which shall include a summary of those activities.
``(d) Report.--Not later than 1 year after the date on which the
President establishes the task force, the task force shall submit to
Congress a report that includes--
``(1) the coordination plan under subsection (c); and
``(2) a description of actions taken to ensure interagency
coordination of Federal hydrogen and fuel cell energy
activities.
``SEC. 8. REVIEW BY THE NATIONAL ACADEMY OF SCIENCES.
``Not later than June 30, 2006, and at least every 4 years
thereafter, the National Academy of Sciences shall--
``(1) complete a review of--
``(A) the progress made through Federal hydrogen
and fuel cell energy programs and activities; and
``(B) the need for modified or additional programs;
and
``(2) submit to Congress a report that describes the
results of the review.
``TITLE I--HYDROGEN ENERGY AND FUEL CELL TECHNOLOGY
``SEC. 101. RESEARCH AND DEVELOPMENT.
``(a) Program.--The Secretary shall carry out a research and
development program relating to hydrogen production, delivery, storage,
and use technologies and fuel cell technologies, the goal of which
program shall be to enable the safe, economical, and environmentally
sound use of hydrogen energy and fuel cells for industrial, commercial,
residential, transportation, and utility applications.
``(b) Research and Development Areas.--In carrying out the program
under subsection (a), the Secretary shall focus on critical technical
issues, including--
``(1) the production of hydrogen, with emphasis on cost-
effective production from renewable energy resources such as
biomass, wind, and solar energy;
``(2) the delivery of hydrogen (including the safe
distribution and fueling);
``(3) the storage of hydrogen, including storage in surface
transportation;
``(4) the fuel cell technologies for transportation,
stationary, and portable applications, with emphasis on cost-
reduction of fuel cell stacks; and
``(5) the use of hydrogen energy and fuel cells in a
variety of applications, including--
``(A) isolated villages, islands, and areas in
which other energy sources are not available or are
very expensive; and
``(B) foreign markets, particularly markets in
which an energy infrastructure is not well-developed.
``(c) Codes and Standards.--The Secretary shall--
``(1) facilitate the development of domestic and
international codes and standards; and
``(2) seek to resolve other critical regulatory and
technical barriers preventing the introduction of hydrogen
energy and fuel cells into the marketplace.
``(d) Federal Funding.--The Secretary shall carry out the research
and development activities authorized under this section through
solicitations of proposals and evaluations using competitive merit
review.
``(e) Cost Sharing.--
``(1) In general.--The Secretary shall require a commitment
from non-Federal sources of at least 20 percent of the cost of
a proposed research or development activity.
``(2) Reduction or elimination.--The Secretary may reduce
or eliminate the cost sharing requirement under paragraph (1)--
``(A) if the Secretary determines that the research
and development is of a basic or fundamental nature; or
``(B) for a technical analysis, outreach activity,
or educational program that the Secretary does not
expect to result in a marketable product.
``SEC. 102. DEMONSTRATIONS IN CONJUNCTION WITH RESEARCH AND
DEVELOPMENT.
``(a) Requirement.--In conjunction with activities conducted under
section 102, the Secretary shall conduct small-scale demonstrations of
hydrogen energy and fuel cell technologies at self-contained sites in
order to evaluate--
``(1) the commercial potential of those technologies; and
``(2) the effectiveness of the technologies in typical use.
``(b) Federal Funding.--The Secretary shall carry out the
demonstrations authorized under this section through solicitations of
proposals and evaluations using competitive merit review.
``(c) Cost Sharing.--
``(1) In general.--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, as determined by the Secretary.
``(2) Reduction.--The Secretary may reduce the cost sharing
requirement under paragraph (1) if the Secretary determines
that the reduction is appropriate considering the technological
risks involved in the project.
``SEC. 103. PUBLIC EDUCATION, TRAINING, AND TECHNOLOGY TRANSFER.
``(a) Public Education.--The Secretary shall conduct a public
education program designed to increase public interest in and
acceptance of hydrogen energy and fuel cell technologies.
``(b) Training.--
``(1) In general.--The Secretary shall carry out a program
to promote university-based training in critical skills for
research in, production of, and use of hydrogen energy and fuel
cell technologies.
``(2) Components.--The program under this subsection may
include--
``(A) the provision of research fellowships at
universities;
``(B) the establishment of centers of excellence in
critical technologies;
``(C) the provision of internships in industry; and
``(D) the implementation of such other measures as
the Secretary deems appropriate.
``(c) Technology Transfer.--
``(1) In general.--The Secretary shall carry out a program
to transfer critical hydrogen energy and fuel cell technologies
to the private sector in order to promote--
``(A) greater understanding of those technologies;
and
``(B) more widespread use of the results of
research conducted under this Act.
``(2) Foreign countries.--The Secretary shall carry out a
program to accelerate wider application of hydrogen energy and
fuel cell technologies in foreign countries in order to--
``(A) increase the global market for the
technologies; and
``(B) foster global development without harmful
environmental effects.
``(3) Exchange of information and technology.--The
Secretary shall foster the exchange of generic, nonproprietary
information and technology developed in accordance with this
title among industry, academia, and Federal agencies.
``(4) Inventory and assessment.--In carrying out paragraphs
(1) and (2), the Secretary shall complete an inventory and
assessment of the technical and commercial viability of
hydrogen production, delivery, storage, and use technologies
and fuel cell technologies.
``SEC. 104. REPORT.
``(a) Requirement.--Not later than 1 year after the date of
enactment of the Hydrogen and Fuel Cell Energy Act of 2003, and
biennially thereafter, the Secretary shall submit to Congress a report
on the status of and progress in implementing the programs under this
title.
``(b) Contents.--A report under subsection (a) shall include, in
addition to any opinions and recommendations of the Secretary--
``(1) an assessment of--
``(A) the effectiveness of the programs under this
title; and
``(B) the extent to which the programs are meeting
the purposes of this Act;
``(2) recommendations of the Panel for any improvements in
the programs that are needed, including recommendations for
additional legislation; and
``(3) to the maximum extent practicable, an analysis of
related Federal, State, local, and private sector research,
development, and demonstration activities to identify
productive areas for increased intergovernmental and private-
public sector collaboration.
``SEC. 105. AUTHORIZATION OF APPROPRIATIONS.
``(a) Hydrogen Activities.--There are authorized to be appropriated
to carry out activities under this title relating to hydrogen energy
(in addition to any amounts made available for those purposes under
other Acts of Congress)--
``(1) $100,000,000 for fiscal year 2004;
``(2) $125,000,000 for fiscal year 2005;
``(3) $150,000,000 for fiscal year 2006;
``(4) $160,000,000 for fiscal year 2007;
``(5) $170,000,000 for fiscal year 2008;
``(6) $180,000,000 for fiscal year 2009; and
``(7) $190,000,000 for fiscal year 2010.
``(b) Fuel Cell Activities.--There are authorized to be
appropriated to carry out activities under this title relating to fuel
cells (in addition to any amounts made available for those purposes
under other Acts of Congress)--
``(1) $100,000,000 for fiscal year 2004;
``(2) $125,000,000 for fiscal year 2005;
``(3) $150,000,000 for fiscal year 2006;
``(4) $125,000,000 for fiscal year 2007;
``(5) $100,000,000 for fiscal year 2008;
``(6) $100,000,000 for fiscal year 2009; and
``(7) $100,000,000 for fiscal year 2010.
``TITLE II--DEMONSTRATIONS
``SEC. 201. FEDERAL FUEL CELL AND HYDROGEN INFRASTRUCTURE PILOT
PROJECTS.
``(a) Program.--The Secretary shall carry out a program of pilot
projects to demonstrate the viability of fuel cells and associated
hydrogen fueling infrastructure in integrated service in a variety of
applications, including--
``(1) fuel cell vehicles in light-duty vehicle fleets;
``(2) heavy-duty fuel cell on-road and off-road vehicles;
``(3) stationary fuel cells in residential and commercial
buildings; and
``(4) portable fuel cells, including auxiliary power units
in trucks.
``(b) Participants.--
``(1) Eligibility.--A Federal, State, tribal, or local
government agency, academic or other nonprofit organization, or
private entity shall be eligible to participate in a pilot
project under subsection (a).
``(2) Selection.--
``(A) Federal.--The Secretary shall--
``(i) consult with Federal agencies
(including fleet and building managers) to
identify potential pilot projects; and
``(ii) select the projects that best meet
the criteria described in subparagraph (C).
``(B) Non-federal.--The Secretary shall--
``(i) solicit proposals for projects from
eligible non-Federal entities; and
``(ii) evaluate the proposals using
competitive merit review.
``(C) Criteria.--The criteria for selecting pilot
projects shall include--
``(i) potential to further the purposes of
this Act;
``(ii) interest and capability of the
participating entities;
``(iii) appropriateness of the site for
fueling infrastructure and for fuel cells;
``(iv) educational potential and visibility
to the public;
``(v) geographic diversity;
``(vi) a wide range of climate and
operating environments;
``(vii) preference for using fueling
infrastructure for both fuel cell vehicles and
stationary fuel cells;
``(viii) preference for making fueling
infrastructure available for public use; and
``(ix) such other criteria as the Secretary
considers appropriate for the success of the
projects.
``(3) Cost sharing.--The Secretary may require a commitment
from a participating Federal agency based on the costs that the
agency would incur for vehicles, power, or other services
provided by the pilot projects if the vehicles, power, or other
services were not so provided.
``(c) Authorization of Appropriations.--There are authorized and to
be appropriated to carry out this section--
``(1) $40,000,000 for fiscal year 2004;
``(2) $200,000,000 for fiscal year 2005;
``(3) $250,000,000 for fiscal year 2006;
``(4) $250,000,000 for fiscal year 2007;
``(5) $160,000,000 for fiscal year 2008;
``(6) $120,000,000 for fiscal year 2009; and
``(7) $60,000,000 for fiscal year 2010.
``SEC. 202. HYDROGEN TRANSPORTATION CORRIDOR AND REGIONAL PILOT
PROJECTS.
``(a) Program.--
``(1) In general.--The Secretary shall carry out a program
of pilot projects to demonstrate the viability of hydrogen-
powered vehicles and hydrogen fueling infrastructure along
major transportation routes or in entire regions.
``(2) Vehicles.--Hydrogen-powered vehicles eligible for the
pilot projects include--
``(A) hybrid electric vehicles that burn hydrogen;
and
``(B) fuel cell vehicles.
``(3) Fueling infrastructure.--A pilot project shall
include multiple hydrogen fueling stations so that vehicles may
refuel throughout the transportation route or region that the
pilot project is intended to cover.
``(b) Participants.--
``(1) Consortia.--The Secretary shall solicit proposals for
projects from consortia that include State or local
governments, vehicle manufacturers, manufacturers of hydrogen
fueling equipment, academic institutions or consulting
organizations, and other entities necessary for the success of
the projects.
``(2) Criteria.--The criteria for selecting pilot projects
shall include--
``(A) interest and capability of the participating
entities;
``(B) suitability of the location for vehicles that
can be refueled only at the stations provided in the
project;
``(C) diversity of uses and users of the vehicles
in the project;
``(D) educational potential and visibility to the
public;
``(E) preference for using fueling infrastructure
for both fuel cell vehicles and stationary fuel cells;
``(F) preference for making fueling infrastructure
available for public use; and
``(G) such other criteria as the Secretary
considers appropriate for the success of the projects.
``(c) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section--
``(1) $10,000,000 for fiscal year 2004;
``(2) $30,000,000 for fiscal year 2005;
``(3) $50,000,000 for fiscal year 2006;
``(4) $75,000,000 for fiscal year 2007;
``(5) $85,000,000 for fiscal year 2008;
``(6) $85,000,000 for fiscal year 2009; and
``(7) $40,000,000 for fiscal year 2010.
``SEC. 203. INTERNATIONAL DEMONSTRATIONS.
``(a) Program.--
``(1) In general.--The Secretary, in consultation with the
Administrator of the Agency for International Development,
shall carry out a program of demonstrations of fuel cells and
associated hydrogen fueling infrastructure in foreign
countries.
``(2) Purposes.--The purposes of the demonstrations shall
be to--
``(A) demonstrate the use of hydrogen energy and
fuel cells in places where a fossil fuel energy
infrastructure is not already well developed;
``(B) increase the global market for fuel cell and
hydrogen energy technologies; and
``(C) promote global development without harmful
environmental effects.
``(3) Eligible technologies.--The program may demonstrate--
``(A) fuel cell vehicles in light-duty vehicle
fleets;
``(B) heavy-duty fuel cell on-road and off-road
vehicles;
``(C) stationary fuel cells in residential and
commercial buildings; and
``(D) portable fuel cells, including auxiliary
power units in trucks.
``(b) Participants.--
``(1) Eligibility.--A foreign nation, nonprofit
organization, or private entity shall be eligible for a pilot
project under subsection (a).
``(2) Cooperation.--An eligible entity may perform a
project in cooperation with United States nonprofit
organizations and private entities.
``(3) Cost sharing.--The Secretary may reduce the
requirement under section 205(e) based on the expense of
foreign activities and the financial resources of participating
foreign entities.
``(c) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section--
``(1) $20,000,000 for fiscal year 2004;
``(2) $50,000,000 for fiscal year 2005; and
``(3) $70,000,000 for each of fiscal years 2006 through
2010.
``SEC. 204. DEMONSTRATIONS OF RENEWABLE PRODUCTION OF HYDROGEN.
``(a) Program.--The Secretary shall carry out a program of
demonstration projects to test the technical and commercial viability
of the production of hydrogen from renewable resources, including--
``(1) production of hydrogen and other commercial products
from biomass in biorefineries; and
``(2) production and use of hydrogen at a single farm
location in electrofarming, including--
``(A) production from--
``(i) cultivation and reforming of biomass;
``(ii) farm waste; or
``(iii) wind power; and
``(B) use in--
``(i) vehicles;
``(ii) equipment; and
``(iii) stationary and portable fuel cells.
``(b) Participants.--
``(1) In general.--The Secretary shall select the
demonstration projects through solicitation of proposals for
funding and evaluation using competitive merit review.
(2) Criteria.--The criteria for selecting pilot projects
shall include--
``(A) commercial potential for the technology;
``(B) life cycle environmental benefits of the
technology;
``(C) the potential of the technology to produce
suitable hydrogen gas for use in proton exchange
membrane fuel cells; and
``(D) such other criteria as the Secretary
considers appropriate for the success of the projects.
``(c) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section--
``(1) $10,000,000 for fiscal year 2004;
``(2) $50,000,000 for fiscal year 2005;
``(3) $75,000,000 for fiscal year 2006;
``(4) $75,000,000 for fiscal year 2007;
``(5) $75,000,000 for fiscal year 2008;
``(6) $50,000,000 for fiscal year 2009; and
``(7) $50,000,000 for fiscal year 2010.
``SEC. 205. OPERATION, COST SHARING, AND REPORTING.
``(a) Operation.--The equipment used in projects under this title
shall be operated by the participating entities in integrated service
for a period of not less than 2 years.
``(b) Training and Technical Support.--The Secretary shall provide
such training and technical support as participating entities require
to ensure the success of the projects under this title.
``(c) Data Collection, Analysis, and Dissemination.--
``(1) Agreements.--The Secretary shall enter into
agreements with participating agencies and private sector
entities providing for the collection of proprietary and
nonproprietary information from projects under this title.
``(2) Public availability.--The Secretary shall make
available to all interested persons--
``(A) technical nonproprietary information
collected under agreements under paragraph (1); and
``(B) analyses of collected proprietary and
nonproprietary information.
``(3) Proprietary information.--The Secretary shall not
disclose to the public any proprietary information collected
under agreements under paragraph (1).
``(d) Coordination.--The Secretary shall ensure coordination of the
programs under this title with each other and with other Federal
hydrogen and fuel cell demonstration programs to improve efficiency,
share infrastructure, and avoid duplication of effort.
``(e) Cost Sharing.--
``(1) In general.--The Secretary shall require a commitment
from non-Federal sources of at least 50 percent of the costs
relating directly to a demonstration project under this title.
``(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.
``(f) Reports.--Not later than 1 year after the date of enactment
of the Hydrogen and Fuel Cell Energy Act of 2003, and annually
thereafter, the Secretary shall submit to Congress a report that--
``(1) provides an update on the progress of selecting and
running the projects under this title;
``(2) provides a summary of data collected under subsection
(c) and associated analyses;
``(3) assesses the results of the programs; and
``(4) recommends any modifications in the programs that may
be necessary to achieve the purposes of this title.''.
TITLE II--FEDERAL PURCHASES
SEC. 201. STATIONARY FUEL CELLS IN FEDERAL BUILDINGS.
Section 205 of the Energy Conservation and Production Act (42
U.S.C. 6834) is amended by adding at the end the following:
``(e) Fuel Cells.--
``(1) Standards.--Not later than 180 days after the date of
enactment of this subsection, the Secretary of Energy shall
revise Federal building energy efficiency performance standards
to--
``(A) require, to the maximum extent
technologically and economically feasible, that each
new Federal building use fuel cells as a primary power
source;
``(B) encourage placement of fuel cells in Federal
buildings in existence as of the date of enactment of
this subsection; and
``(C) encourage--
``(i) the use of fuel cells to provide heat
and power for Federal buildings;
``(ii) the making available of extra
hydrogen for use in transportation and portable
fuel cells; and
``(iii) the provision of extra power to the
electric grid.
``(2) Study.--The Secretary of Energy, in consultation with
other Federal agencies as appropriate, shall conduct a study to
determine means by which to make effective use of fuel cells in
Federal buildings, including--
``(A) the use of fuel cells for high-reliability
and uninterruptible power;
``(B) the use of fuel cells to provide heat and
power for Federal buildings;
``(C) the need for modifications in--
``(i) building specifications and design;
``(ii) building codes;
``(iii) construction practices; and
``(iv) building operations; and
``(D) the identification of measures and incentives
that would increase use of fuel cells in Federal
buildings.
``(3) Report.--Not later than 18 months after the date of
enactment of this subsection, the Secretary of Energy shall
submit to Congress a report that describes--
``(A) the progress made as of the date of
submission of the report in use of fuel cell power
under paragraph (1); and
``(B) the results of the study under paragraph
(2).''.
SEC. 202. ZERO EMISSION VEHICLES IN FEDERAL FLEETS.
Section 203(b) of the Energy Policy Act of 1992 (42 U.S.C.
13212(b)) is amended by adding at the end the following:
``(4) Zero-emission vehicles.--
``(A) In general.--Except as provided in
subparagraph (B), of the number of vehicles acquired by
a Federal fleet in a fiscal year, zero-emission
vehicles shall comprise--
``(i) 10 percent in each of fiscal years
2007 and 2008;
``(ii) 25 percent in each of fiscal years
2009 and 2010;
``(iii) 50 percent in each of fiscal years
2011 and 2012; and
``(iv) 75 percent in fiscal year 2013 and
each fiscal year thereafter.
``(B) Partial credit.--The Secretary may count 2
alternative-fuel vehicles that meet Super Ultra Low
Emission Vehicle standards issued by the Environmental
Protection Agency as equivalent to 1 zero-emission
vehicle in meeting the deadlines specified in
subparagraph (A).
``(C) Delay of deadlines.--If, for a fiscal year,
the Secretary determines that no suitable commercial
vehicle is available for acquisition under subparagraph
(A), the Secretary may delay the deadlines for that
year and for subsequent years specified in that
subparagraph by 1 year.
``(5) Overall federal purchases.--The Secretary may
promulgate regulations under which the requirements under
paragraph (4)(A) would be met with respect to overall Federal
purchases rather than by individual Federal fleets.''.
TITLE III--TAX INCENTIVES
SEC. 301. AMENDMENT OF 1986 CODE.
Except as otherwise expressly provided, whenever in this title an
amendment or repeal is expressed in terms of an amendment to, or repeal
of, a section or other provision, the reference shall be considered to
be made to a section or other provision of the Internal Revenue Code of
1986.
SEC. 302. CREDIT FOR FUEL CELL AND HYDROGEN MOTOR VEHICLES.
(a) In General.--Subpart B of part IV of subchapter A of chapter 1
(relating to foreign tax credit, etc.) is amended by adding at the end
the following new section:
``SEC. 30B. CREDIT FOR FUEL CELL AND HYDROGEN MOTOR VEHICLES.
``(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 sum of--
``(1) the new qualified fuel cell motor vehicle credit
determined under subsection (b), and
``(2) the new qualified hydrogen fuel motor vehicle credit
determined under subsection (c).
``(b) New Qualified Fuel Cell Motor Vehicle Credit.--
``(1) In general.--For purposes of subsection (a), the new
qualified fuel cell motor vehicle credit determined under this
subsection with respect to a new qualified 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 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 2002 model year city fuel economy,
``(ii) $1,500, if such vehicle achieves at
least 175 percent but less than 200 percent of
the 2002 model year city fuel economy,
``(iii) $2,000, if such vehicle achieves at
least 200 percent but less than 225 percent of
the 2002 model year city fuel economy,
``(iv) $2,500, if such vehicle achieves at
least 225 percent but less than 250 percent of
the 2002 model year city fuel economy,
``(v) $3,000, if such vehicle achieves at
least 250 percent but less than 275 percent of
the 2002 model year city fuel economy,
``(vi) $3,500, if such vehicle achieves at
least 275 percent but less than 300 percent of
the 2002 model year city fuel economy, and
``(vii) $4,000, if such vehicle achieves at
least 300 percent of the 2002 model year city
fuel economy.
``(B) 2002 model year city fuel economy.--For
purposes of subparagraph (A), the 2002 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 2002 model year city
``If vehicle inertia weight class fuel economy is:
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 or 8,500 lbs............................ 11.1 mpg.
``(ii) In the case of a light truck:
The 2002 model year city
``If vehicle inertia weight class
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 or 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 fuel cell motor vehicle.--For purposes
of this subsection, the term `new qualified fuel cell motor
vehicle' means a motor vehicle--
``(A) which is propelled by power derived from 1 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,
``(B) which, in the case of a passenger automobile
or light truck has received a certificate of conformity
under the Clean Air Act and meets the zero emission
standard for certification under the Clean Air Act for
the make and model year of the 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) New Qualified Hydrogen Fuel Motor Vehicle Credit.--
``(1) Allowance of credit.--The new qualified hydrogen fuel
motor vehicle credit determined under this subsection is an
amount equal to the applicable percentage of the incremental
cost of any new qualified hydrogen fuel motor vehicle placed in
service by the taxpayer during the taxable year.
``(2) Applicable percentage.--For purposes of paragraph
(1), the applicable percentage with respect to any new
qualified hydrogen fuel motor vehicle is--
``(A) 50 percent, plus
``(B) 30 percent, if such vehicle--
``(i) has received a certificate of
conformity under the Clean Air Act and meets or
exceeds the most stringent standard available
for certification under the Clean Air Act for
that make and model year vehicle (other than a
zero emission standard), or
``(ii) has received an order from an
applicable State certifying the vehicle for
sale or lease in California and meets or
exceeds the most stringent standard available
for certification under the State laws of
California (enacted in accordance with a waiver
granted under section 209(b) of the Clean Air
Act) for that make and model year vehicle
(other than a zero emission standard).
``(3) Incremental cost.--For purposes of this subsection,
the incremental cost of any new qualified hydrogen fuel motor
vehicle is equal to the amount of the excess of the
manufacturer's suggested retail price for such vehicle over
such price for a gasoline or diesel fuel motor vehicle of the
same model, to the extent such amount does not exceed--
``(A) $5,000, 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) $25,000, 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.
``(4) New qualified hydrogen fuel motor vehicle.--For
purposes of this subsection, the term `new qualified hydrogen
fuel motor vehicle' means any motor vehicle--
``(A) which is only capable of operating on
hydrogen fuel,
``(B) the original use of which commences with the
taxpayer,
``(C) which is acquired by the taxpayer for use or
lease, but not for resale, and
``(D) which is made by a manufacturer.
``(d) 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.
``(e) 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) 2002 model year city fuel economy.--The 2002 model
year city fuel economy with respect to any vehicle shall be
measured under rules similar to the rules under section
4064(c).
``(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 (d)).
``(5) No double benefit.--The amount of any deduction or
other credit allowable under this chapter--
``(A) for any incremental cost taken into account
in computing the amount of the credit determined under
subsection (d) shall be reduced by the amount of such
credit attributable to such cost, and
``(B) with respect to a vehicle described under
subsection (b) or (c), 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 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 in any sale or lease document the
specific amount of any credit otherwise allowable to the entity
under this section and reduces the sale or lease price of such
vehicle by an equivalent amount of such credit.
``(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 (d) for such
taxable year (in this paragraph referred to as the
`unused credit year'), such excess shall be allowed as
a credit carryforward for each of the 20 taxable years
following the unused credit year.
``(B) Rules.--Rules similar to the rules of section
39 shall apply with respect to the 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.
``(f) Regulations.--
``(1) In general.--Except as provided in paragraph (2), the
Secretary shall promulgate such regulations as necessary to
carry out the provisions of this section.
``(2) Coordination in prescription of certain
regulations.--The Secretary of the Treasury, in coordination
with the Secretary of Transportation and the Administrator of
the Environmental Protection Agency, shall prescribe such
regulations as necessary to determine whether a motor vehicle
meets the requirements to be eligible for a credit under this
section.
``(g) Termination.--This section shall not apply to any property
purchased after--
``(1) in the case of a new qualified fuel cell motor
vehicle (as described in subsection (b)), December 31, 2018,
and
``(2) in the case of a new qualified hydrogen fuel motor
vehicle, December 31, 2013.''.
(b) Conforming Amendments.--
(1) Section 1016(a) 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(e)(4).''.
(2) Section 55(c)(2) is amended by inserting ``30B(d),''
after ``30(b)(3)''.
(3) Section 6501(m) is amended by inserting ``30B(e)(9),''
after ``30(d)(4),''.
(4) The table of sections for subpart B of part IV of
subchapter A of chapter 1 is amended by inserting after the
item relating to section 30A the following new item:
``Sec. 30B. Credit for fuel cell and hydrogen motor
vehicles.''.
(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. 303. CREDIT FOR INSTALLATION OF HYDROGEN FUELING STATIONS.
(a) In General.--Subpart B of part IV of subchapter A of chapter 1
(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 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 vehicle
refueling property.
``(b) Limitation.--The credit allowed under subsection (a)--
``(1) with respect to any retail hydrogen-fuel vehicle
refueling property, shall not exceed $100,000, and
``(2) with respect to any residential hydrogen-fuel vehicle
refueling property, shall not exceed $2,500.
``(c) Year Credit Allowed.--The credit allowed under subsection (a)
shall be allowed in the taxable year in which the qualified hydrogen-
fuel vehicle refueling property is placed in service by the taxpayer.
``(d) Definitions.--For purposes of this section--
``(1) Qualified hydrogen-fuel vehicle refueling property.--
The term `qualified hydrogen-fuel vehicle refueling property'
means a qualified clean-fuel vehicle refueling property (as
defined in section 179A(d)) relating to hydrogen fuel.
``(2) Residential hydrogen-fuel vehicle refueling
property.--The term `residential hydrogen-fuel vehicle
refueling property' means qualified hydrogen-fuel 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 vehicle refueling property.--The
term `retail hydrogen-fuel vehicle refueling property' means
qualified hydrogen-fuel 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 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 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 and modifies the
price of such contract to take into account the amount of such credit.
``(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.
``(l) Termination.--This section shall not apply to any property
placed in service after December 31, 2018.''.
(b) Incentive for Production of Hydrogen at Qualified Clean-Fuel
Vehicle Refueling Property.--Section 179A(d) (defining qualified clean-
fuel vehicle refueling property) is amended by adding at the end the
following new flush sentence:
``In the case of hydrogen, paragraph (3)(A) shall be applied by
substituting `production, storage, or dispensing' for `storage or
dispensing' both places it appears.''.
(c) Conforming Amendments.--(1) Section 1016(a), 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), 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, as amended by this Act, is amended by inserting after the
item relating to section 30B the following new item:
``Sec. 30C. Hydrogen-fuel vehicle refueling property credit.''.
(d) 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. 304. CREDIT FOR RETAIL SALE OF HYDROGEN FUEL AS MOTOR VEHICLE
FUEL.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
(relating to business related credits) is amended by inserting after
section 40 the following new section:
``SEC. 40A. CREDIT FOR RETAIL SALE OF HYDROGEN FUEL AS MOTOR VEHICLE
FUEL.
``(a) General Rule.--For purposes of section 38, the hydrogen fuel
retail sales credit for any taxable year is the applicable amount for
each gasoline gallon equivalent of hydrogen fuel sold at retail by the
taxpayer during such year as a fuel to propel any qualified motor
vehicle, but only if the taxpayer reduces the retail sales price of
such fuel by an equivalent amount of such credit.
``(b) Definitions.--For purposes of this section--
``(1) Applicable amount.--The term `applicable amount'
means as follows:
``(A) In general.--Except as provided in
subparagraph (B), 50 cents.
``(B) Hydrogen fuel produced from renewable
sources.--
``(i) In general.--In the case of hydrogen
fuel which is produced from renewable sources
or from electricity from such sources, $1.00.
``(ii) Renewable sources.--For purposes of
this subparagraph, the term `renewable sources'
means solar, wind, biomass, and geothermal.
``(2) Gasoline gallon equivalent.--The term `gasoline
gallon equivalent' means, with respect to hydrogen fuel, the
amount (determined by the Secretary) of such fuel having a Btu
content of 114,000.
``(3) Qualified motor vehicle.--The term `qualified motor
vehicle' means any motor vehicle (as defined in section
30(c)(2)) which meets any applicable Federal or State emissions
standards with respect to hydrogen fuel.
``(4) Sold at retail.--
``(A) In general.--The term `sold at retail' means
the sale, for a purpose other than resale, after
manufacture, production, or importation.
``(B) Use treated as sale.--If any person uses
hydrogen fuel (including any use after importation) as
a fuel to propel any qualified hydrogen fuel motor
vehicle (as defined in section 30B(c)(4)) before such
fuel is sold at retail, then such use shall be treated
in the same manner as if such fuel were sold at retail
as a fuel to propel such a vehicle by such person.
``(c) No Double Benefit.--The amount of any deduction or other
credit allowable under this chapter for hydrogen fuel taken into
account in computing the amount of the credit determined under
subsection (a) shall be reduced by the amount of such credit
attributable to such fuel.
``(d) Pass-Thru in the Case of Estates and Trusts.--Under
regulations prescribed by the Secretary, rules similar to the rules of
subsection (d) of section 52 shall apply.
``(e) Termination.--This section shall not apply to any fuel sold
at retail after December 31, 2018.''.
(b) Credit Treated as Business Credit.--Section 38(b) (relating to
current year business credit) is amended by striking ``plus'' at the
end of paragraph (14), by striking the period at the end of paragraph
(15) and inserting ``, plus'', and by adding at the end the following
new paragraph:
``(16) the hydrogen fuel retail sales credit determined
under section 40A(a).''.
(c) Transitional Rule.--Section 39(d) (relating to transitional
rules) is amended by adding at the end the following new paragraph:
``(11) No carryback of section 40a credit before effective
date.--No portion of the unused business credit for any taxable
year which is attributable to the hydrogen fuel retail sales
credit determined under section 40A(a) may be carried back to a
taxable year ending before the date of the enactment of such
section.''.
(d) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 is amended by inserting after the
item relating to section 40 the following new item:
``Sec. 40A. Credit for retail sale of hydrogen fuel as motor
vehicle fuel.''.
(e) Effective Date.--The amendments made by this section shall
apply to fuel sold at retail after the date of the enactment of this
Act, in taxable years ending after such date.
SEC. 305. CREDIT FOR STATIONARY AND PORTABLE FUEL CELLS.
(a) Business Property.--
(1) In general.--Subparagraph (A) of section 48(a)(3)
(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) energy-efficient building
property,''.
(2) Energy-efficient building 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) Energy-efficient building property.--For purposes of
this subsection--
``(A) In general.--The term `energy-efficient
building property' means a fuel cell power plant that--
``(i) generates electricity using an
electrochemical process,
``(ii) has an electricity-only generation
efficiency greater than 30 percent, and
``(iii) generates at least 0.5 kilowatt of
electricity using an electrochemical process.
``(B) Limitation.--In the case of energy-efficient
building 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 (10 percent in the case of
taxable years beginning after 2008) of the
basis of such property, including expenditures
for labor costs properly allocable to the
onsite preparation, assembly, or original
installation of the property and for piping or
wiring to interconnect such property, or
``(ii) $1,000 ($100 for taxable years
beginning after 2008) 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.
``(E) Energy-efficient building property installed
for tax-exempt entities.--In the case of energy-
efficient building property installed on property owned
or used by an entity exempt from tax under this
chapter, the person which installs such building
property for the entity shall be treated as the
taxpayer with respect to the building property for
purposes of this section 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 and modifies the price of such contract to take
into account the amount of such credit.''.
(3) Limitation.--Section 48(a)(2)(A) (relating to energy
percentage) is amended to read as follows:
``(A) In general.--The energy percentage is--
``(i) in the case of energy-efficient
building property placed in service in taxable
years beginning before January 1, 2009, 30
percent, and
``(ii) in the case of any other energy
property, 10 percent.''.
(4) Conforming amendments.--
(A) Section 29(b)(3)(A)(i)(III) is amended by
striking ``section 48(a)(4)(C)'' and inserting
``section 48(a)(5)(C)''.
(B) Section 48(a)(1) is amended by inserting
``except as provided in paragraph (4)(B),'' before
``the energy''.
(5) Effective date.--The amendments made by this subsection
shall apply to property placed in service after the date of the
enactment of this Act, in taxable years ending after such date,
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).
(b) Nonbusiness Property.--
(1) In general.--Subpart A of part IV of subchapter A of
chapter 1 (relating to nonrefundable personal credits) is
amended by inserting after section 25B the following new
section:
``SEC. 25C. NONBUSINESS ENERGY-EFFICIENT BUILDING PROPERTY.
``(a) Credit Allowed.--
``(1) In general.--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 the nonbusiness
energy-efficient building property expenditures which are paid
or incurred during such year.
``(2) Limitation.--The credit allowed under paragraph (1)
with respect to property placed in service by the taxpayer
during the taxable year shall not exceed an amount equal to the
lesser of--
``(A) 30 percent (10 percent in the case of taxable
years beginning after 2008) of the basis of such
property, or
``(B) $1,000 ($100 for taxable years beginning
after 2008) for each kilowatt of capacity of such
property.
``(b) Nonbusiness Energy-Efficient Building Property
Expenditures.--For purposes of this section--
``(1) In general.--The term `nonbusiness energy-efficient
building property expenditures' means expenditures made by the
taxpayer for nonbusiness energy-efficient building property
installed on or in connection with a dwelling unit--
``(A) which is located in the United States, and
``(B) which is used by the taxpayer as a residence.
Such term includes expenditures for labor costs properly
allocable to the onsite preparation, assembly, or original
installation of the property.
``(2) Nonbusiness energy-efficient building property.--The
term `nonbusiness energy-efficient building property' means
energy-efficient building property (as defined in section
48(a)(4)) if--
``(A) the original use of such property commences
with the taxpayer, and
``(B) such property meets the standards (if any)
applicable to such property under section 48(a)(4).
``(c) Special Rules.--For purposes of this section--
``(1) Dollar amounts in case of joint occupancy.--In the
case of any dwelling unit which is jointly occupied and used
during any calendar year as a residence by 2 or more
individuals the following shall apply:
``(A) The amount of the credit allowable, under
subsection (a) by reason of expenditures (as the case
may be) made during such calendar year by any of such
individuals with respect to such dwelling unit shall be
determined by treating all of such individuals as 1
taxpayer whose taxable year is such calendar year.
``(B) There shall be allowable, with respect to
such expenditures to each of such individuals, a credit
under subsection (a) for the taxable year in which such
calendar year ends in an amount which bears the same
ratio to the amount determined under subparagraph (A)
as the amount of such expenditures made by such
individual during such calendar year bears to the
aggregate of such expenditures made by all of such
individuals during such calendar year.
``(2) Tenant-stockholder in cooperative housing
corporation.--In the case of an individual who is a tenant-
stockholder (as defined in section 216) in a cooperative
housing corporation (as defined in such section), such
individual shall be treated as having made his tenant-
stockholder's proportionate share (as defined in section
216(b)(3)) of any expenditures of such corporation.
``(3) Condominiums.--
``(A) In general.--In the case of an individual who
is a member of a condominium management association
with respect to a condominium which the individual
owns, such individual shall be treated as having made
his 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 nonbusiness energy-
efficient building property expenditures made by any individual
with respect to any dwelling unit, there shall not be taken
into account expenditures which are made from subsidized energy
financing (as defined in section 48(a)(5)(C)).
``(d) 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.''.
(2) Conforming amendments.--
(A) Section 25C(c), 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 section
25D)'' and inserting ``subsection (b)(3)''.
(B) Section 23(b)(4)(B) is amended by inserting
``and section 25C'' after ``this section''.
(C) Section 24(b)(3)(B) is amended by striking ``23
and 25B'' and inserting ``23, 25B, and 25C''.
(D) Section 25(e)(1)(C) is amended by inserting
``25C,'' after ``25B,''.
(E) Section 25B(g)(2) is amended by striking
``section 23'' and inserting ``sections 23 and 25C''.
(F) Section 26(a)(1) is amended by striking ``and
25B'' and inserting ``25B, and 25C''.
(G) Section 904(h) is amended by striking ``and
25B'' and inserting ``25B, and 25C''.
(H) Section 1400C(d) is amended by striking ``and
25B'' and inserting ``25B, and 25C''.
(3) Additional conforming Amendments.--
(A) Section 23(c), as in effect for taxable years
beginning before January 1, 2004, is amended by
striking ``section 1400C'' and inserting ``sections 25C
and 1400C''.
(B) Section 25(e)(1)(C), as in effect for taxable
years beginning before January 1, 2004, is amended by
inserting ``, 25C,'' after ``sections 23''.
(C) Subsection (a) of section 1016, 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.''.
(D) Section 1400C(d), as in effect for taxable
years beginning before January 1, 2004, is amended by
inserting ``and section 25C'' after ``this section''.
(E) The table of sections for subpart A of part IV
of subchapter A of chapter 1 is amended by inserting
after the item relating to section 25B the following
new item:
``Sec. 25C. Nonbusiness energy-efficient
building property.''.
(4) Effective dates.--
(A) In general.--Except as provided by subparagraph
(B), the amendments made by this subsection shall apply
to expenditures after the date of the enactment of this
Act, in taxable years ending after such date.
(B) Paragraph (2).--The amendments made by
paragraph (2) shall apply to taxable years beginning
after December 31, 2003.
<all>