Introduction

Recent articles in the New York Times1 and elsewhere underscore the fact that the rising price of gasoline and heating fuels and the awareness of, and growing consensus about, the threats of global warming have reached a tipping point in terms of generating popular attention to, and interest in, alternative fuels and alternative energy systems well beyond the ranks of those who read scientific and engineering journals. This increasing popular attention includes a national and global curiosity about the potential development of a hydrogen economy, which scientists, politicians, authors and pundits have begun to address. With the recent passage of the Energy Policy Act of 2005 (EPA of 2005 or Act),2 which includes a title (Title VIII) devoted exclusively to hydrogen, this seems an appropriate time to better understand these recent legislative developments in the context of a brief historical overview about what some see as the fantasy of a hydrogen economy. The following is an overview of federal legislative initiatives, followed by a summary of the details of the recent hydrogen-related energy legislation.

At the outset, it is noteworthy that the role of hydrogen in the nation’s energy future has been and continues to be the subject of a rather robust debate as to whether or not it is a technological dead-end and whether it deserves to have significant resources dedicated to it.3 The debate has been on scientific, economic, political and even legal liability4 grounds.

Clearly, in some scientific and economic circles there are strong questions about the idea of the widespread usage of hydrogen as a fuel for transportation and other industrial, commercial and residential energy purposes, over and beyond its current predominant production and use in the manufacture of ammonia for fertilizer, in the refinement of oil into gasoline and in the manufacture of other chemicals.5 In these circles, a hydrogen economy is a fantasy.

If it is fantasy, however, a brief review of hydrogen-related legislation and political initiatives reveals that it is not a fantasy of new or recent origin. Moreover, for its proponents, hydrogen represents a potential solution to a looming future energy crisis, or it is seen as one answer (among many) in the quest for reliable, diverse and renewable future sources of energy to power the U.S. economy.

Indeed, the federal government has been involved in supporting hydrogen usage and fuel cell development for over 40 years, most notably in the form of the fuel and power (fuel cell) units in the nation’s Space program.6 Hydrogen-related legislative proposals began to make their appearance in the 1980s and hydrogen research also became a separate DOE budget request line item by Congressional mandate.7

In 1990, Congress passed the "Spark M. Matsunaga Hydrogen, Research, Development and Demonstration Act of 1990"8, which set forth for the first time a five-year management and implementation plan for hydrogen research and development in the United States, and created the Hydrogen Technical Advisory Panel, which was charged with assuring consultation and coordination regarding hydrogen research.

The Energy Policy Act of 1992 included a five-year research and development program on "Renewable Hydrogen Energy,"9 which was to be conducted in conjunction with the 1990 Act by supplementing ongoing activities of a similar nature at the Department of Energy with a renewable component.

In 1996, Congress passed the Hydrogen Future Act, which amended the 1990 Act and repealed the renewable hydrogen energy section of the 1992 Act.10 The impetus for this legislation was a perception that hydrogen R&D research was not receiving high enough priority by DOE. The 1996 law was intended to invest more resources in basic research by sharpening the purpose of the R&D and related demonstration projects into a program that would lead to the production, storage, transport and use of hydrogen for industrial, residential, transportation and utility applications with an emphasis on enabling the private sector to demonstrate technical feasibility.11

In May of 2001, President Bush introduced his administration’s energy policy initiatives, which included support for research into fuel cells, "a technology of tomorrow that can power a car with hydrogen, the most common element in the universe, and emit only steam as a waste product."12 Among other things, Mr. Bush’s national policy directed the exploration of the possibility of a hydrogen economy.

Later in 2001, work began on a National Hydrogen Vision, which focused on moving towards a more secure and cleaner energy future for America, and on President Bush’s national energy policy, which recognized that alternative energy technologies such as hydrogen show great promise. This work resulted in the 2002 publication of A National Vision of America’s Transition to a Hydrogen Economy – to 2030 and Beyond,13 demonstrating (by its very name) that the possibility of a hydrogen economy was a truly long term goal with many obstacles; but nevertheless a goal requiring both near-term and long-term commitments to basic research and technology development.

Again in 2002, the DOE announced a cooperative program with the research arm of the automotive industry called "FreedomCAR" to develop hydrogen fuel cells for petroleum-free cars and light trucks.14

In 2003, President Bush in his State-of-the-Union address announced a hydrogen fuel initiative aimed at developing commercially viable hydrogen-powered fuel cells so that the "first car driven by a child born in 2003 could be powered by hydrogen and pollution free."15

The Department of Energy began to implement the President’s announced program in 2004 by allocating funds to research and vehicle demonstration projects.16 Also in 2004, The National Academies’ National Research Council published The Hydrogen Economy: Opportunities, Costs, Barriers, and R&D Needs, concluding that for a viable hydrogen transportation system to emerge, four key challenges must be addressed:

  1. To develop and introduce cost-effective, durable, safe, and environmentally desirable fuel cell systems and hydrogen storage systems;

  2. To develop the infrastructure to provide hydrogen for the light-duty-vehicle user;

  3. To reduce sharply the costs of hydrogen production from renewable energy sources, over a time frame of decades; and

  4. To capture and store ("sequester") the carbon dioxide by-product of hydrogen production from coal.17

This abbreviated historical background emphasizes the point that the consideration of hydrogen as an element (no pun intended) of the nation’s energy future is not a new phenomena. Indeed, it also serves to highlight the fact that hydrogen has become, in relative terms, a topic of increasing interest and attention, although the reasons for this are arguably made up of a mix of political as well as technological and economic motivations. It also reinforces the notion, which is true for many aspects of the 2005 Policy Act, that all or many of the promises of hydrogen are by no means "immediate." Rather hydrogen energy is a part of a long-term vision, which, if to be realized at all, requires current and increasing strategic investment, focused research and near- mid- and long-term commercialization efforts.18 Indeed, the fundamentals of fuel cell price and durability continue to be among the key issues holding up the commercial introduction of fuel cells on a widespread basis and the initial realization of the hydrogen economy vision, dream or fantasy.19

This history would not be complete without reference to the additional (albeit debatable) current "drivers" for increasing the focus, attention and deployment of resources to hydrogen and fuel cell technologies. Among the most important are a recognition of the threat of global climate change associated with CO2 (and other greenhouse gas) emissions and the national security concern about foreign oil and gas dependence. The strength of these drivers is ratcheted upwards by the recent dramatic rises in oil and gasoline prices, and promises to make the consideration of hydrogen an increasingly serious and interesting prospect.20

Against this thumbnail historical backdrop, the following is a review of Title VIII of the Energy Policy Act of 2005, adopted August 2005. Title VIII—also referred to as the "Spark M. Matsunaga Hydrogen Act of 2005"—nominally acknowledges the history and continuity of Congressional efforts to foster a national hydrogen policy. In this regard and in many respects, Title VIII provides minor tweaks and additional funding to a history of congressional support for (i) the continuation of on-going research and development; (ii) administration initiatives; and (iii) demonstrations of viable hydrogen-related technologies and delivery systems.

Title VIII—Hydrogen21

The Hydrogen Act authorizes funding of approximately $3.7 billion (over five, years)22 for a hydrogen and fuel cell program to enable and promote hydrogen and fuel cell technologies23 (in partnership with industry) and to create a mature hydrogen economy in the transportation sector of the U.S. In the long-term, the Hydrogen Act seeks to decrease dependency on foreign oil, eliminate most transportation emissions, and enhance energy security through the use of hydrogen and fuel cell technologies (Sections 801 and 802). Competitive merit-based and cost-sharing processes will be used to award assistance grants and contracts.

Coordinated Plan. Within six months of enactment (by February 8, 2006), the Secretary of Energy must transmit a coordinated plan to Congress for the hydrogen and fuel cell programs, including a five-year agenda with milestones. The plan must also address the significant technical and non-technical hurdles that stand in the way of achieving the program’s goals (Section 804).

Research and Development Goals. The purpose of this research and development program — to be undertaken by the Department of Energy in consultation with other federal agencies and the private sector— is to demonstrate and commercialize the use of hydrogen for transportation, utility, industrial, commercial and residential applications, and to provide related public education and research. Two billion dollars is provided for this program (Section 805).

The Act seeks to enable automakers to commit to offering safe, affordable, hydrogen fuel cell vehicles in the mass consumer market by no later than 2015, and, by 2020, to produce and market a vehicle that will have substantially higher fuel economy, lower emissions and equivalent crash integrity and occupant protection as compared against 2005 model year light- duty vehicles. Also, the Act seeks industry commitments for hydrogen fuel production, availability and related infrastructure24 in a similar time frame (Section 805).

Although there is a strong emphasis on transportation, because of its linkage to the emissions problem and the issue of foreign oil dependence, there is clearly also an interest in research and development associated with utility, industrial, commercial and residential applications, which will have implications for utilities and generation suppliers. In this regard, it is important to note that the research and development program is intended to result in production, storage and distribution-related cost reductions, increased efficiency and reduced emissions. This is research that can solve critical problems and enhance the use of renewable fuels as sources of energy production and infrastructure.

Whether or not the EPA of 2005 research targets of enabling industry decision-makers to make commitments by no later than 2015 leading to vehicles on the road, and hydrogen production and related infrastructure in place by 2020, are realistic remains to be seen. Recent hybrid-related developments in the auto industry and the views expressed by the National Academies suggest the possibility that the legislative goals for hydrogen transportation deployment may be too aggressive by a decade or more.25 Furthermore, since the automakers are largely expending their own resources in connection with their fuel cell research and development efforts, it is likely that market forces and their own strategic plans will dictate the timing of deployment.

Demonstration Projects. A limited number of hydrogen and fuel cell-related demonstration projects will be funded by the Secretary of Energy, including the use of advanced composite vehicles and the design of a local distributed energy system (Section 808).

In this regard, Title VIII provides $1.3 billion dollars for demonstration projects, including projects that involve using hydrogen and related products at existing facilities or installations such as office buildings, military installations, vehicle fleet centers, transit bus authorities and in parts of the National Park System. The demonstration projects also include vehicle, portable and stationary26 demonstrations of fuel cell and hydrogen-based energy technologies The demonstration project funding will also be used to demonstrate systems such as composite vehicle systems that reduce drive energy requirements and the design of a local distributed hydrogen energy system.27

Codes and Standards. The Act provides support for the timely development of safety codes and standards for fuel cell vehicles, hydrogen energy systems and stationary, portable and micro fuel cells, as well as for educational efforts with respect to the same (Section 809). One hundred and thirty-eight million is allocated for Codes and Standards work.

Interagency Taskforce. An interagency task force is to be established by the President within four months of enactment (by December 8, 2005) to plan for safe, economical and environmentally sound hydrogen fuel infrastructure, fuel cell applications, distributed power generation, uniform codes and integrity and safety performance necessary to promote the goals of the hydrogen and fuel cell programs (Section 806).

This task force is a new development in legislative history, but in some respects it appears to make a creature of statute a body much (although not exactly) like the Hydrogen Research and Development (R&D) Task Force, which was established by executive order in early 2003 after the President's State-of-the-Union announcement of his Hydrogen Fuel Initiative. While it may well serve as a mere clearinghouse for information, its intended purpose suggests that it could provide a coordinated focus and attention on the policy of integrating hydrogen-usage (in the form of vehicles and stationary or portable fuel cells) throughout the wider fabric of the federal government. The implications of this may be worthy of consideration and analysis by current energy suppliers.

Advisory Committee. A Hydrogen Technical and Fuel Cell Advisory Committee is to be appointed from, among others, members of industry, academia and governmental agencies to advise the Secretary of Energy on programs and activities under the hydrogen and fuel cell programs (Section 807).

This panel is a continuation of the Hydrogen Technical Advisory Panel, which was created under the 1990 Act. It is noted that the Secretary is not required to accept and implement the recommendations of this group, but the Secretary is obligated to report to Congress about such recommendations and the DOE analysis and decision and rational about same.

Reports. Reports by the Secretary of Energy will be submitted to Congress regarding activities and progress under this Title; programs will also be subjected to periodic external reviews by the National Academy of Sciences (Section 811).

As indicated earlier, the process of reporting to Congress on progress and developments related to governmentally-supported, hydrogen-related research and development is not new. This provision continues the periodic reporting process, including specific direction for progress reports regarding the goal to produce not less than 100,000 hydrogen-fueled vehicles in the U.S. by 2010 and 2.5 million by 2020, and towards the goal of supplying hydrogen at a "sufficient number of fueling stations by 2010."28

Solar and Wind Technologies. The Act provides support for exploration and development of solar and wind technologies for the production of hydrogen through detailed roadmaps prepared by the Secretary of Energy and submitted to Congress within four months of enactment (by December 8, 2005), including through the establishment of demonstration projects (Section 812).

There will be five projects each to demonstrate the hydrogen production capabilities of solar and wind energy technologies. The importance of renewables to the hydrogen equation is in their potential to reduce (or even eliminate) the dependence on fossil fuels in the process of producing hydrogen, thereby eliminating the GHGs associated with such production, reducing overall emissions and also reducing or eliminating the use of fossil fuels or conserving the use of them for more efficient and valuable purposes.

Additional and Related Energy Policy Act of 2005 Provisions

In addition to Title VIII, Hydrogen, the Act also contains hydrogen and fuel cell-related provisions under other titles in connection with general research and development or in connection with specific technologies, some of which are highlighted below.

Hydrogen from Nuclear. Title VI—Nuclear Matters, Subtitle B—General Nuclear Matters fosters commercial production of hydrogen from existing nuclear power plants if it is determined to be cost-effective (Section 634). The Act also includes hydrogen production as an objective of the next generation of nuclear plants (Sections 642 and 643).

Fuel Cells. Many parts of the EPA of 2005 are targeted directly at promoting the development of fuel cells for stationary and transportation applications. Beginning in 2006, direct funding for fuel cells will be not less than $200 million through 2020, and in excess of $300 million in some years. Much of this funding is for market-stimulating purchases of fuel cells and for demonstration projects. Significant sums are also authorized for fuel cell-related projects, such as integration with coal gasification systems.

Title provisions for fuel cells include:

  • Title III—Oil and Gas. This Title allocates $55 million per year (2006-2015) for alternative and renewable energy technologies to generate electricity at remote sites. The power generation equipment under this Title can be fuel cells, wind turbines, photovoltaics, hydroelectric, wave or tidal energy (Section 356).
  • Title VII—Vehicle and Fuels, Subtitle B-Hybrid Vehicles, Advanced Vehicles, and Fuel Cell Buses and Part 2-Advanced Vehicles. Provides for the development of a grant pilot program, under the DOE’s Clean Cities Program, to fund up to 30 geographically dispersed project grants to state and local governments and municipal transportation authorities to buy fuel cell buses, delivery vehicles, ground support vehicles at public facilities, and hydrogen infrastructure equipment, and to pay operational costs for the vehicles (Sections 707 and 721).
  • Title VII—Subtitle B-Hybrid Vehicles, Advanced Vehicles, and Fuel Cell Buses, Part 3-Fuel Cell Buses. These provisions authorize funding of $10 million each year (2006-2010) for Department of Energy competitive, merit-based awards for five-year projects to demonstrate up to 25 fuel cell transit buses and their associated infrastructure in five geographically dispersed localities (Section 731).
  • Title VII-Subtitle C-Clean School Buses— Offers federal cost-sharing of $25 million per year (2006–2009) for fuel cell school bus demonstration programs using natural gas as the hydrogen source (Sections 741-743).
  • Title VII–Subtitle D—Miscellaneous. Includes authorizations of $50 million per year (2006–2010) for, among others, NASA-administered funding for the exploration of advanced aircraft engine concepts, including hybrid fuel cell powered systems (Section 758).
  • Title VII–Subtitle F— Federal and State Procurement. By 2010, any federal agency using a fleet of light- or heavy-duty vehicles will have to lease or purchase fuel cell vehicles and hydrogen energy systems to meet applicable energy savings goals pursuant to regulations promulgated by the Secretary of Energy no later than December 31, 2006. The DOE is authorized to provide funding for such cooperative arrangements at levels of $15 million in 2008, rising to $65 million in 2010, and then continuing through 2015. The Secretary may also establish cooperative programs with, and offer incentives to, state agencies in order to encourage the purchase of fuel cell vehicles by such agencies (Section 782).

    Stationary, Portable and Micro-Fuel Cells. Section 783 of Title VII authorizes $20 million in 2006 rising to $100 million in 2010 through 2015 for the purchase or lease of appropriately efficient and reliable stationary, portable or micro-fuel cells are to be purchased or leased beginning January 1, 2006 (if available) by any federal agency that uses electrical power from a stationary, portable or microportable device.
  • Title XIII—Energy Policy Tax Incentives. Provides a Section 25 D tax credit for purchase of a residential fuel cell of 30% of qualified expenditures up to a maximum of $500 per half kilowatt of capacity (Section 1335). A tax credit for business installations of qualified fuel cells of up to $500 per half kilowatt of capacity is also provided (Section 1336). Tax credits for such fuel cell installations end on December 31, 2007.

Concentrating Solar Energy. The Act promotes research and development regarding the feasibility of hydrogen production from water using only solar energy in order to evaluate the potential of concentrating solar power for hydrogen production (Sections 933 and 934. Title IX—Research and Development, Subtitle C—Renewable Energy).

Supporting Research and Development. The Act authorizes a program of fundamental research and development to support the Title VIII, Hydrogen programs. It also supports methods of generating hydrogen that do not use natural gas, including nuclear (Sections 952 and 974. Title IX—Research and Development, Subtitle G—Science).

Incentives for Innovative Technologies. The Act provides loan guarantees for hydrogen fuel cell technology for residential, industrial or transportation applications as part of the Act’s incentives for innovative technologies under Title XVII of the Act (Section 1703).

Conclusion

The hydrogen and fuel cell provisions of the Energy Policy Act of 2005 reflect a public policy with historical roots that is not yet willing to foreclose the future of hydrogen as a viable energy option, and the possibility for a future hydrogen economy. Hydrogen holds great promise in terms of its abundance, its ability to provide independence from foreign sources and its ability to reduce or eliminate greenhouse gas emissions. However, as an energy carrier and as a technology, hydrogen faces great obstacles to the full realization and implementation of its promise and/or potential.

In the Energy Policy Act, Congress recognized the prudence of supporting research and development that will lead to transitional technologies that can be deployed economically and creatively to lead the way to the next generation of breakthroughs necessary to realize the full promise of a hydrogen economy. Assuming appropriations consistent with the legislative authorizations, the Energy Policy Act target dates for demonstration and deployment of hydrogen vehicles, fuel cells and certain infrastructure will build on the past 15 years of congressional support for hydrogen research and development. Whether the amount and pace of national investment in promoting the assessment, testing and proving of hydrogen’s viability as an answer to current and future energy and climate problems is sufficient given the increasing weight of those problems remains to be seen.

Footnotes

1. See "Climate Study Warns of Warming and Losses of Arctic Tundra" by Andrew C. Revkin (dated November 2, 2005) reporting on a Stanford University-based study of global warming published on November 1, 2005 in The Journal of Climate finding that the current rate of atmospheric accumulation of heat-trapping emission gasses will result in significant global warming, including a "near total loss of Arctic tundra" and "Taking the Future for a Drive" by Danny Hakim (dated November 2, 2005) reporting on Honda’s isolated consumer testing of a Honda FCX, a hydrogen fuel cell-powered automobile. See also "At Tokyo Auto Show, a Focus on Fuel, Not Fenders" by James Brooke (dated November 4, 2005) reporting on the Tokyo Motor Show and the increasing focus by automakers on hybrids and alternative fuel vehicles, and quoting analysts as saying that "the surging auto demand from fast-developing countries like China, India and Brazil is forcing carmakers to look seriously beyond gasoline and diesel fuel, which are increasingly expensive and are big producers of the gases that contribute to global warming."

2. PL 109-58 enacted August 8, 2005.

3. This debate is recently evidenced in the work of advocates such as Amory Lovins of the Rocky Mountain Institute, who has authored numerous articles addressing the feasibility and economics of hydrogen development and use (see, for example, Twenty Hydrogen Myths, dated June 20, 2003 and updated as of February 17, 2005 at www.rmi.org), or in the publicized public exchanges between Dr. Daniel Sperling, who is a Professor of Civil Engineering and Environmental Science and Policy, and founding Director of the Institute of Transportation Studies at the University of California, Davis and Dr. Joseph Romm, who is a leading expert on clean energy technologies. Dr. Romm is the author of the report The Car and Fuel of the Future: A Technology and Policy Overview for the National Commission on Energy Policy (July 2004), and of The Hype About Hydrogen: Fact and Fiction in the Race to Save the Climate. Dr. Sperling recently wrote "The Hope for Hydrogen," an article appearing in Issues in Science and Technology, Spring 2004, and "Is There Hope for Hydrogen?" appearing in The Energy Bulletin, published October 11, 2004 by the American Chemical Society (www.energybulletin.net). See also point-counter-point Summer 2005 on-line debate between Drs. Sperling and Romm at http://www.pbs.org/wgbh/nova/sciencenow/3210/01-point.html. See, also, Jeremy Rifkin’s The Hydrogen Economy, Penguin Putnam Inc, 2002; ISBN 1-585421-93-6. Mr. Rifkin is an avid supporter of government funding for hydrogen-related research.

4. For instance, in 2003, the Energy Law Journal published "Tort Law Considerations for the Hydrogen Economy" by Russell Moy (24 Energy Law Journal 349), in which Mr. Moy argued that policymakers and technologists must not ignore the considerable legal liability issues and attendant considerable additional costs associated with the proposed hydrogen economy, based on his analysis under tort law theories of negligence, products liability and abnormally dangerous activities liability. In 2004, the Energy Law Journal published "Hydrogen and Tort Law: Liability Concerns Are Not a Bar to a Hydrogen Economy" by William Vincent (25 Energy Law Journal 385), in which Mr. Vincent counters Mr. Moy’s conclusions. According to Mr. Vincent’s analysis, the "research and experience with hydrogen … suggest" that the widespread use of hydrogen, even in consumer applications, should not give rise to unusually extensive liability. Mr. Vincent contends that the purpose of tort law is to allocate risk not to eliminate it, and in his view "hydrogen appears likely to create fewer liability issues than other fuels, provided the industry continues to develop safe technologies, codes and standards." Both articles provide a useful overview and sampling of the concerns and arguments about the use of hydrogen from a legal perspective. Of course, tort liability issues are not the only legal issues or concerns associated with the development and implementation of the hydrogen economy or even discrete hydrogen applications. They will or may include energy-related, environmental, intellectual property and securities legal issues.

5. Hydrogen is the most abundant element in the universe. However, pure hydrogen (H2) is not widely available because most of it is contained in water (H2O) or hydrocarbon fuels (such as natural gas).

6. According to a 2003 Report by the Progressive Policy Institute:

"[t]he federal government has played a small but important role in the development of hydrogen and fuel cells since the 1960s. Much of this effort has been confined to applications such as spacecraft or defense, where reliability is paramount and cost less crucial. The National Aeronautic and Space Administration (NASA) pioneered federal support of fuel cells as an efficient, reliable source of electric power onboard spacecraft. Because they are light, compact, produce little waste heat, and can produce electricity far from any stationary power source, the U.S. Department of Defense (DOD) has advanced fuel cell technology as a way to promote combat readiness, particularly in remote regions."

See www.ppionline.org/ppi_ci.cfm?knlgAreaID=144&subsecid=304&contentid=251177.

7. In a keynote address at The National Hydrogen Association’s 14th Annual U.S. Hydrogen Conference and Exhibition in Washington, D.C. on March 6, 2003, Hawaii’s Senator Daniel Akaka recounted the seminal legislative effort, which began in the 1980s:

"My predecessor, Senator Spark Matsunaga, created the first formal hydrogen research program in this country, [which was] designed to accelerate development of a domestic capability to produce an economically renewable energy source. He introduced the legislation in 1982, and his perseverance led to the Matsunaga Hydrogen Act, enacted in 1990 shortly after his death."

Spark M. Matsunaga was a Representative and a Senator from Hawaii. He graduated from the University of Hawaii at Honolulu in 1941 and Harvard Law School in 1951; he was a member of the Hawaiian statehood delegation to Congress in 1950 and 1954; a member of the Territorial legislature 1954-1959, serving as majority leader 1957-1959; author and poet; elected as a Democrat to the Eighty-eighth Congress in 1962; reelected to the six succeeding Congresses (January 3, 1963-January 3, 1977); elected to the United States Senate in 1976; reelected in 1982, and again in 1988, where he served until his death in Toronto, Canada on April 15, 1990.

8. 42 U.S.C. 12401 et seq.

9. Section 2026 of the Energy Policy Act of 1992 (42 U.S.C. 13436).

10. Repealed effective October 1, 1998.

11. See www.ch2bc.org/walker.htm discussing House Science Committee Chairman Robert S. Walker’s (R-PA) advocacy on the hydrogen issue, which culminated in the passage of the Hydrogen Future Act of 1996.

12. See, for example, Remarks by the President to Capital City Partnership at the River Centre Convention Center in St. Paul, Minnesota on May 17, 2001. www.whitehouse.gov/news/releases/2001/05/20010517-2.html.

13. This United States Department of Energy report can be accessed as:
www.eere.energy.gov/hydrogenandfuelcells/pdfs/vision_doc.pdf.

14. See January 9, 2002 press release, "USCAR Announces FreedomCAR Research Partnership with U.S. Department of Energy: Program Committed to Developing Technologies that will Preserve American Transportation Freedoms" at:
www.uscar.org/Media/releases/freedomcar.html.

15. See Hydrogen Fuel: A Clean and Secure Energy Future, from report of Today’s Presidential Action, dated January 30, 2003 on White House Web site at:
www.whitehouse.gov/news/releases/2003/01/20030130-20.html.

16. See, for example, April 27, 2004 DOE Press Release, " Energy Secretary Spencer Abraham Announces $350 Million In Hydrogen Research Projects" at:
http://www.energy.gov/engine/content.do?PUBLIC_ID=15725&BT_CODE=PR_PRESSRELEASES&TT_CODE=PRESSRELEASE

17. This report was issued by the National Research Council and National Academy of Engineering of the National Academies, Committee on Alternatives and Strategies for Future Hydrogen Production and Use, the Board on Energy and Environmental Systems, and the Division on Engineering and Physical Sciences. Published by The National Academies Press, Washington, D.C. www.nap.edu. In addition, other DOE Hydrogen-related policies, plans and reports can be located at: http://www.hydrogen.energy.gov/policies_plans.html.

18. The long-term nature of the prospects for hydrogen is underscored by an Associated Press article by Dee-Ann Durbin in the September 14, 2005 edition of The Washington Post, headlined: "Automakers Eye Hybrids As Gas Prices Rise." According to this article, "GM Vice Chairman Bob Lutz [commenting on the success of the Toyota Prius] said this kind of success has caused other automakers to take notice. In particular, he said, some companies that have been betting on pollution-free hydrogen fuel cell vehicles have decided to produce hybrids in the near-term, since hydrogen likely won't be a viable alternative for another decade. ‘I think what happened was the manifest success of the Prius caused a rethink on everybody's part,’ Lutz said. GM plans to debut a hybrid system on the Tahoe and Yukon trucks in 2007." Also, a September 15, 2005 article in the New York Times by Mark Landler entitled "At Frankfurt Auto Show, a Reluctant Embrace of Hybrids" states that "BMW is investing heavily in the development of hydrogen-powered cars, which Mr. Panke said he believed was the long-term answer to dependence on oil. He acknowledged that because of distribution and storage problems, hydrogen would not be a marketable fuel for 15 to 20 years. Still, BMW has pledged to make a version of its seven-series sedan that runs on hydrogen and gasoline in the next few years. It displayed a rocket like, hydrogen-propelled vehicle here that it said achieved a speed of more than 300 kilometers an hour (187 miles an hour)."

19. See " Hydrogen economy - an opportunity for chemical engineers?" by Rakesh Agrawal, Martin Offutt, and Michael P. Ramage in the American Institute of Chemical Engineers (AIChE) Journal; 2005, Volume 51, Issue 6, pages 1582-1589, in which the authors suggest that it could take "several decades" to develop inexpensive, hydrogen-powered fuel cells and that "success is not certain."

20. For example, the Department of Energy summarily describes the benefits of a hydrogen economy as follows:

"Widespread use of hydrogen as an energy source in this country could help address concerns about energy security, global climate change and air quality. Fuel cells are an important enabling technology for the Hydrogen Future and have the potential to revolutionize the way we power our nation, offering cleaner, more-efficient alternatives to the combustion of gasoline and other fossil fuels."

Regarding national security, the summary continues:

"Hydrogen and fuel cell technology have the potential to strengthen our national energy security by reducing our dependence on foreign oil. The U.S. uses about 20 million barrels of oil per day, at a cost of about $2 billion a week. Much of this is used to power highway vehicles. In fact, half of the oil used to produce the gasoline you put in your tank is imported. Hydrogen can be derived from a variety of domestically available primary sources, including fossil fuels, renewables and nuclear power. This flexibility would make us less dependent upon oil from foreign countries."

With respect to climate change, the summary states as follows:

"Greenhouse gases are thought to be responsible for changes in global climate. They trap excess heat from the sun's infrared radiation that would otherwise escape into space, much like a greenhouse is used to trap heat. When we drive our cars, and light, heat, and cool our homes, we generate greenhouse gases. But if we used hydrogen in very high efficiency fuel cells for our transportation and to generate power, we could significantly reduce the greenhouse gas (GHG) emissions—especially if the hydrogen is produced using renewable resources, nuclear power, or clean fossil technologies."

See http://www.eere.energy.gov/hydrogenandfuelcells/future/benefits.html. Of course, this discussion does not address the complexities and details of theses drivers, which include, among other things, some controversial economic "field leveling" proposals such as possible carbon cap and trade programs or other forms of carbon taxes.

21. The Senate Energy Committee posted a summary of the EPA of 2005. With respect to Title VIII, the Committee’s summary said that it:

  • Directs the Secretary to conduct a broad-based research program supporting private sector efforts in hydrogen and fuel cell development, including production, storage, distribution and use of hydrogen; and fuel cell applications for transportation and stationary uses.
  • Sets a goal of enabling the private sector to make a commercialization decision on fuel cell vehicle production hydrogen for transportation by 2015.
  • Requires enhanced public education and university research in fundamental sciences, application design and systems concepts, including materials, subsystems, manufacturability, maintenance and safety.
  • Directs the Secretary to transfer critical hydrogen and fuel cell technologies to the private sector and to foster the exchange of non-proprietary information.
  • Establishes demonstration programs for hydrogen technologies and fuel cell vehicles for light-duty and heavy-duty vehicles.
  • Supports the timely development of safety codes and standards related to fuel cell vehicles, hydrogen energy systems and stationary fuel cells.

See http://energy.senate.gov/public/_files/PostConferenceBillSummary.doc.

22. Of course, the authorization of funds must be distinguished from their appropriation. DOE funding, whether for peer-reviewed research or earmarked research, ultimately depends on Congressional appropriations, which may be less than the amounts authorized by EPA of 2005.

23. A fuel cell is defined in Title VIII as "a device that directly converts the chemical energy of a fuel, which is supplied from an external source, and an oxidant into electricity by electrochemical processes occurring at separate electrodes in the device." (Section 803. Definitions).

24. Infrastructure is defined in Title VIII as "the equipment, systems or facilities used to produce, distribute, deliver or store hydrogen (except for onboard storage)" (Section 803).

25. See The National Academies’ National Research Council 2004 report The Hydrogen Economy: Opportunities, Costs, Barriers, and R&D Needs referenced in footnotes 17 above. See also footnotes 18 and 19 above.

26. The terms "stationary" and "portable," when used in reference to a fuel cell, are defined to include "(A) continuous electric power; and (B) backup electric power" (Section 803).

27.The concept of local distributed energy systems was described in 2001 as follows:

"Hydrogen may enable much greater use of distributed energy systems, the small-scale, modular energy devices that can be located onsite or near the point of use. Currently, these systems include technologies such as fuel cells, micro-turbines, Stirling engines, photovoltaics, and energy storage devices such as batteries and flywheels. Distributed energy systems are being implemented across America in commercial development enterprises such as power parks and mini-grids. These are examples of multi-use facilities that use onsite power generation systems for meeting the total energy needs of local energy users including offices, factories and residential communities for power, heating, cooling and humidity control. In these and other applications, distributed energy systems provide users with onsite access, pinpoint control and the opportunity to have power available every minute of every day. This level of reliability is in demand from the high tech sector and other energy users. Reducing the barriers to distributed energy systems can help lay the foundation for hydrogen in the future."

July 1, 2001 Testimony of David K. Garman, Assistant Secretary, Energy Efficiency and Renewable Energy, Department of Energy on the "Robert S. Walker and George E. Brown, Jr. Hydrogen Future Act of 2001."

See http://www.eere.energy.gov/office_eere/congressional_test_070101.html.

This description compares favorably with Section 808(b)(1)(B) of Title VIII, which calls for grants on a cost-share basis for designing a local distributed energy system that (i) incorporates renewable hydrogen production, off-grid electricity production and fleet applications in industrial or commercial service; (ii) integrates energy or applications described in clause (i), such as stationary, portable, micro-, and mobile fuel cells, into a high-density commercial or residential building complex or agricultural community; and (iii) is managed in cooperation with industry, state, tribal, and local governments, agricultural organizations, and non-profit generators and distributors of electricity." This appears to present an opportunity for multi-interest collaboration in demonstrating such systems.

28. Section 811(a)(4) and (5).

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.