Spotlight on Hydrogen and Fuel Cells: National Energy Policy Act of 2005, Grants and R&D Funding
On August 8, 2005, President Bush signed the National Energy Policy Act of 2005, the first comprehensive national energy policy in a decade. The Act’s goals include encouraging energy efficiency and conservation, and promoting alternative and renewable energy sources.
The legislation authorizes more than $4 billion during FY 06-10 for hydrogen and fuel cell R&D, demonstration, grant, and procurement programs. The President had already proposed his FY 06 budget when the Act was signed and the new programs authorized. The President’s FY 07 budget request (due in February) will offer an early indicator of how Washington feels about funding these programs at or near their authorized funding levels. If eligible, start planning now for tapping these funding streams.
Overview of Hydrogen and Fuel Cell Programs: Unless otherwise stated, figures represent total authorized funding for FY 06-10 period.
Advanced Vehicles Demonstration Program: This competitive
grant program would fund up to 30 geographically dispersed
advanced vehicle demonstration projects. Grant recipients
will be limited to state and local government agencies, and
metropolitan transportation authorities. Applications must
include a registered participant in the Clean Cities initiative.
Projects are limited to $15 million with a 50 percent cost share.
Grant funds can pay for: alternative fuel vehicles (including
neighborhood electric vehicles); fuel cell vehicles; ultralow
sulfur diesel vehicles; acquiring and installing fueling
infrastructure; and operation and maintenance of vehicles,
infrastructure and equipment. Authorized at $200 million.
Fuel Cell Transit Bus Demonstration: This competitive grant
program would fund 5-year projects to demonstrate up to 25
fuel cell transit buses (with necessary infrastructure) in five
geographically dispersed locations. Authorized at $50 million.
 Clean School Bus Program: This competitive
grant program would
fund up to half the cost
of replacing older school
buses with alternative fuel
school buses or ultra-low
sulfur diesel fuel buses, or
retrofitting them to reduce
emissions. Eligible grant
recipients include state and local governments, contractors that
provide school bus service, and nonprofit school transportation
associations. Grant recipients must provide at least 15-20
percent of the funds for new buses. Funds may also be used
to acquire alternative fuel infrastructure. Authorized at $110
million for FY 06-07.
Fuel Cell School Buses:This program would enter into
cooperative agreements with private companies to develop
fuel cell school buses, and with two or more units of local
government currently using natural gas school buses to
demonstrate the fuel cell buses. The non-federal cost share
must be at least 20 percent for infrastructure and 50 percent for
vehicles. Authorized at $25 million for FY 06-09.
Government Procurement of Fuel Cell Vehicles and Hydrogen Energy Systems:To stimulate the market, technology
development, and government procurement, Federal agencies
with light- or heavy-duty vehicle fleets are directed to lease
or purchase fuel cell vehicles and hydrogen energy systems to
meet any applicable energy savings goals. Funds would go to
Federal agencies to pay the difference between the cost of fuel
cell vehicles and hydrogen energy systems, compared to other
vehicles and systems. The Energy Department is authorized
to provide similar incentives to state agencies. Authorized at
$105 million for FY 08-10.
Government Procurement of Stationary, Portable, and Micro Fuel Cells: To stimulate the market and technology
development, Federal agencies that use electrical power from
stationary, portable, or micro-portable devices are directed to
lease or purchase a stationary, portable, or micro fuel cell to
meet energy savings goals. Funds would go to Federal agencies
for these purchases. Authorized at $350 million.
 Hydrogen Supply and Fuel Cell R&D: Substantial funds are
authorized for R&D on technologies related to the production,
purification, distribution, storage, and use of hydrogen energy,
fuel cells, and related infrastructure. Research is to demonstrate
and commercialize the use of hydrogen for transportation,
utility, industrial, commercial, and residential applications.
The Energy Department would partner with universities to carry
out basic and applied research on hydrogen and fuel cells,
including research on materials, subsystems, manufacturability,
maintenance, and safety. Partnerships with the private sector
would focus on: hydrogen production from diverse energy
sources, use of hydrogen for electric power generation, safe
delivery and storage of hydrogen or hydrogen fuels, advanced
vehicle technologies, fuel cell development, and manufacturing
of hybrid vehicle technologies. Research may be carried out
using competitive, merit-based programs, or by funding
nationally recognized university research centers or Federal
laboratories. Hydrogen Supply R&D authorized at $1 billion,
and Fuel Cell Technologies R&D authorized at $850 million.
Demonstration Projects: The Energy Department is authorized
to fund demonstration projects that involve using hydrogen and
related products at existing facilities or installations such as
office buildings, military bases, vehicle fleet centers, transit bus
authorities, or units of the National Park System, with special
emphasis on use in national parks, remote island areas, and
on Indian tribal land. Demonstration projects should focus on
vehicle, portable, and stationary fuel cell and hydrogen-based
energy technologies in light- and heavy-duty vehicles, fleet
vehicles, industrial and farm vehicles, and commercial and
residential electric power generation. The program is authorized
to fund prototype, pilot fleet, and infrastructure for regional
hydrogen supply corridors along the U.S. interstate highway
system. Demonstrations may also explore the use of several
hydrogen-related fuels. In addition, funding is authorized
for system design concepts for advanced composite vehicles,
and for local distributed energy systems. The local distributed
energy systems are to incorporate renewable hydrogen products,
off-grid electricity production, and fleet applications in
industrial or commercial services, using stationary, portable,
micro, and mobile fuel cells in high-density commercial or
residential building complexes or agricultural communities.
Cost sharing may be required for these programs. Authorized at
$1.3 billion. |
