Hydrogen Research and Development

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37

This Act establishes a program to promote hydrogen as an energy resource.

Submitted as: Hawaii SB 1435 SD 1 Status: enacted into law as Act 283 in 2001.

Suggested Legislation

(Title, enacting clause, etc.)

Section 1. [Short Title.] This Act may be cited as “An Act to Establish a Private-Public Partnership to Promote and Support Hydrogen as an Energy Resource.”

Section 2. [Legislative Findings.] Scientists have recognized hydrogen as a potential source of fuel for many years. Currently, hydrogen is used in industrial processes, rocket fuel, and spacecraft propulsion. With further research and development, hydrogen could competitively serve as an alternative source of energy for fueling vehicles and generating electricity. Recognizing the potential of hydrogen fuel, the United States Department of Energy and the private sector have for several years funded hydrogen research and development programs. The federal government alone allocates an average of $18,000,000 annually for hydrogen research and development. Currently, the market capitalization of fuel cell companies that rely on hydrogen as its fuel source is in excess of $10,000,000,000. The [Legislature] finds that this state represents an excellent site to attract government and industry investment in hydrogen. Major advantages include: (1) The availability of indigenous renewable resources, including geothermal energy; (2) The excellent research capabilities at the [state university]; (3) This state’s location for trade opportunities; (4) This state’s high transportation fuel costs; and (5) Significant progress in hydrogen research and development in this state. In addition, the [Legislature] recognizes that large-scale hydrogen use for transportation can be competitive this decade that fleet and military transportation have the largest potential for hydrogen and fuel cell use. On the national level, advancements are taking place to develop technologies that will utilize hydrogen as a fuel source. Major companies are investing in the development of fuel cells for both stationary and mobile power. Automakers are projecting the commercial availability of fuel cell powered vehicles that could be fueled by hydrogen within this decade. Significant amounts of investments are being made to develop fuel cells and other distributed generation technologies. With its traditional high fuel costs and a wealth of renewable energy resources, this state could attract these advanced technology development companies for research and development, testing, and deployment. These factors can lead to the development of a hydrogen-based economy where this state produces more of its own environmentally clean fuels, thus reducing its dependence on fossil fuels, and resulting in job growth, reduced pollution, and a more robust state economy. Therefore, the [Legislature] finds that the state should do more to continue efforts to enhance hydrogen use in it.

Section 3. [Hydrogen Public/Private Partnership: Establishment] (a) There is established within the [department of business, economic development, and tourism],

38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 for administrative purposes only, the Hydrogen Public/Private Partnership to support and promote hydrogen use in this state. The [state university] shall provide assistance to the [department]. (b) The [department] shall invite the participation of, and representatives from, the following entities to the partnership: (1) The state, including the [state university] and any of its entities, as appropriate; (2) The counties; (3) The federal government, including the military; (4) The utilities; (5) The private sector; and (6) The environmental community. (c) The [department], with the assistance of the Partnership, shall: (1) Sponsor a stakeholder workshop with interested parties to review and critique the state’s hydrogen plan; (2) Evaluate and adopt policy options to promote industry investment in hydrogen infrastructure; (3) Initiate pilot projects to install multi-megawatt electrolyzers to produce hydrogen from indigenous resources in the state; (4) Conduct a comprehensive evaluation and market study for the production of hydrogen; (5) Conduct engineering assessments of biomass or wind energy pathways for hydrogen; (6) Initiate pilot projects that include distribution of hydrogen produced in the state; (7) Initiate discussion of tax incentives for investors; and (8) Conduct assessments of potential cost benefits to consumers and recommend ways to educate consumers about the benefits of hydrogen fuel. (d) The [department] shall submit annual reports regarding the partnership to the [Legislature] no later than [twenty (20)] days prior to the convening of each regular session. The reports shall include summaries of accomplishments, including expenditures, research projects funded, and external funding received.

Section 4. [Appropriations.] There is appropriated out of the general revenues of this state the sum of [insert amount] or so much thereof as may be necessary for fiscal year [insert date] to support hydrogen research and development efforts; provided that funds shall be made available under this Act on the basis of [one (1)] dollar of general revenues for every [insert amount] dollars from the federal government or the private sector. The sum appropriated shall be expended by the [department of business, economic development, and tourism] for the purposes of this Act.

Section 5. [Severability.] [Insert severability clause.]

Section 6. [Repealer.] [Insert repealer clause.]

Section 7. [Effective Date.] [Insert effective date.]