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Managing America: Energy

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Week Ending June 8, 2006

H.R.632 To authorize the Secretary of Energy to establish monetary prizes for achievements in overcoming scientific and technical barriers associated with hydrogen energy.

This bill aims to move forward the research and development, demonstration and commercial application of hydrogen energy technologies forward through prizes for advancement of components or systems relating to hydrogen production, storage, distribution and utilization. Prizes will also be awarded for hydrogen-powered vehicles or other hydrogen-based products that best meet performance criteria and technologies that transform the distribution of production of hydrogen that meet or exceed far-reaching criteria.

The prizes will be awarded competitively and will be advertised to ensure a broad range of participants including colleges and universities, small and large businesses include minority and handicapped-serving institutions and businesses.

A nonprofit organization will administer the prizes and handle advertising, fund raising, determining prize amounts and consideration of intellectual property rights. Funds may be appropriated or donated and the bill makes clear that “special consideration to any private sector entity or individual in return for a donation to the administering entity” is prohibited.

The bill gives as an example of Hydrogen-fueled vehicle performance a completion of a race over a certain distance or terrain or generation of energy at certain levels of efficiency. Other hydrogen-based technologies may include minimal carbon emissions and cost criteria compatible with marketability of the products.

Prizes for advancement of components or systems relating to hydrogen production, storage, distribution and utilization may not exceed $1 million if there is no more than $4 million in the prize fund. The Secretary of Energy may reduce the prize categories based on available prize funds.

Prizes for hydrogen-fueled vehicles may not exceed $4 million individually.

The prize for other hydrogen-related technologies “shall be not less than $10,000,000, paid to the winner in a lump sum, and an additional amount paid to the winner as a match for each dollar of private funding raised by the winner for the hydrogen technology beginning on the date the winner was named. The match shall be provided for 3 years after the date the prize winner is named or until the full amount of the prize has been paid out, whichever occurs first.” Not more than $10,000,000 in Federal funds may be used for this prize award. The nonprofit shall seek to raise $40,000,000 toward the matching funds award.

Judges may not have “personal or financial interests in, or be an employee, officer, director, or agent of, any entity that is a registered participant in the prize competition for which he or she will serve as a judge; and may not have “a familial or financial relationship with an individual who is a registered participant in the prize competition for which he or she will serve as a judge.”

Eligible participants that are corporations must have a primary business address in the US and individual participants must be US citizens or lawfully admitted for permanent residence.

Right to liability claims against the Federal government by participants may be waived by the Secretary thereby requiring participants carry liability insurance.

Authorized is $60 million through 2017. $2 million can be used for administrative overhead. The program ends September 30, 2018

Sponsor:  Rep. Daniel Lipinski (D-IL-3^rd)

Vote: Passed House 408 to 8 June 6, 2007 (RC 433 )

Cost to the taxpayers: $60 million through 2017.

Earmark Certification:   Not applicable to this bill.

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