,i #aag? ,,congress #a/ ,session ,h4 ,r4 #eife ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,novemb] #ab1 #bjba,mr4 ,tonko 7= himself & ,mr4 ,mc,kinley7 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,en]gy & ,comm]ce ,a ,,bill ,to direct ! ,secret>y ( ,en]gy to e/abli% a pilot program to ent] into contracts = paym5t ( co/s associat$ ) us+ eligible hydrog51 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,clean ,hydrog5 ,deploym5t ,act ( #bjba4 #b4 ,clean hydrog5 contract = diff]5ces pilot program 7a7 ,e/abli%m5t ( pilot program ,! ,secret>y1 act+ ?r\gh ! ,assi/ant ,secret>y ( ! ,(fice ( ,fossil ,en]gy & ,c>bon ,managem5t & 9 consultation ) ! ,assi/ant ,secret>y ( ! ,(fice ( ,en]gy ,effici5cy & ,r5ewable ,en]gy & o!r relevant (fices )9 ! ,dep>tm5t ( ,en]gy1 %all e/abli% a pilot program to ent] into contracts1 on a competitive basis1 ) entities = paym5t ( co/s associat$ ) ! production or pur*ase ( eligible hydrog5 t is us$ 9 projects c>ri$ out by su* entities4 7b7 ,selection 7#a7 ,9 g5]al ,n lat] ?an #b ye>s aft] ! date ( enactm5t ( ?is ,act1 ! ,secret>y %all ent] into at lea/ #e contracts "u ! pilot program e/abli%$ "u subsection 7a71 ) ea* contract t]m = a p]iod ( no long] ?an #e ye>s4 7#b7 ,applications ,9 select+ entities to ent] into contracts ) "u ! pilot program e/abli%$ "u subsection 7a71 ! ,secret>y %all ensure-- 7,a7 at lea/ #a entity select$ w c>ry out a project t uses eligible hydrog5 z a fe$/ock 9 an indu/rial application1 su* z syn!sis ( ammonia1 fuels1 or *emicals2 7,b7 at lea/ #a entity select$ w c>ry out a project t uses eligible hydrog5 z a fuel 9 an indu/rial application2 7,c7 at lea/ #a entity select$ w c>ry out a project t uses eligible hydrog5 z a fuel 9 a transportation application1 includ+ use at a transportation hub1 su* z a port1 transit depot1 or di/ribution c5t]2 7,d7 at lea/ #a entity select$ w c>ry out a project t uses eligible hydrog5 z a fuel 9 a p[] application2 7,e7 n less ?an #b entities select$ w c>ry out a project t uses eligible hydrog5 produc$ us+ electricity1 or !rmal en]gy1 g5]at$ f z]o-emission en]gy s\rces2 & 7,f7 ea* entity select$ addresses any necess>y hydrog5 /orage & infra/ructure ne$s associat$ ) ! project1 includ+ by procur+ ^? s]vices f o!r entities4 7c7 ,contract = diff]5ces 7#a7 ,paym5t ,! ,secret>y %all provide at lea/ "o paym5t annually to an entity ) :i* ! ,secret>y has ent]$ into a contract "u ! pilot program e/abli%$ "u subsection 7a74 7#b7 ,am\nt ,except z o!rwise provid$ 9 ?is subsection1 ! am\nt ( a paym5t1 ) respect to eligible hydrog5 us$ by a project ov] a designat$ p]iod ( "t1 z det]m9$ by ! ,secret>y1 to an entity ) :i* ! ,secret>y has ent]$ into a contract "u ! pilot program e/abli%$ "u subsection 7a7 %all be-- 7,a7 ) respect to an entity c>ry+ out a project us+ eligible hydrog5 produc$ us+ electricity1 or !rmal en]gy1 g5]at$ f z]o-emission en]gy s\rces1 an am\nt equal to-- 7i7 ! co/ ( su* eligible hydrog5 t is produc$ or pur*as$1 & !n us$ by ! project2 m9us 7ii7 ! applicable fair m>ket value1 z det]m9$ by ! ,secret>y1 to produce or pur*ase an equal quantity ( conv5tional hydrog52 or 7,b7 ) respect to an entity c>ry+ out a project us+ any o!r type ( eligible hydrog51 an am\nt equal to-- 7i7 ! numb] t is equal to-- 7,i7 ! co/ ( su* eligible hydrog5 t is produc$ or pur*as$1 & !n us$ by ! project2 m9us 7,,ii7 ! applicable fair m>ket value1 z det]m9$ by ! ,secret>y1 to produce or pur*ase an equal quantity ( conv5tional hydrog52 multipli$ by 7ii7 ! numb] t is equal to-- 7,i7 #a2 m9us 7,,ii7 z det]m9$ by ! ,secret>y1 ! numb] t is equal to-- 7aa7 ! quantity ( ! gre5h\se gas emissions1 on a life-cycle basis1 associat$ ) su* eligible hydrog5 t is us$ by ! project2 divid$ by 7bb7 ! quantity ( gre5h\se gas emissions1 on a life-cycle basis1 associat$ ) an equal quantity ( conv5tional hydrog54 7#c7 ,alt]native am\nt calculation ,) respect to an entity ) :i* ! ,secret>y has ent]$ into a contract "u ! pilot program e/abli%$ "u subsection 7a7 t w c>ry out a project t uses eligible hydrog5 to displace a nonhydrog5 fuel or fe$/ock1 ! ,secret>y may det]m9e & apply a =mula t is diff]5t ?an ! o!rwise applicable =mula "u p>agraph 7#b7 = calculat+ paym5ts to su* entity1 tak+ into consid]ation ! diff]5ces betwe5 ! eligible hydrog5 to be us$ 9 ! project & ! nonhydrog5 fuel or fe$/ock be+ displac$ ) respect to-- 7,a7 co/2 7,b7 emissions2 & 7,c7 heat+ value1 z applicable4 7#d7 ,additional paym5t ,to ! ext5t appropriations are available1 & not)/&+ subsection 7d71 ! ,secret>y may provide a paym5t to an entity ) :i* ! ,secret>y has ent]$ into a contract "u ! pilot program e/abli%$ "u subsection 7a7 at ! beg9n+ ( su* contract-- 7,a7 t is additional to any o!r paym5t "u ?is subsection2 7,b7 t is n m ?an #ej p]c5t ( ! expect$ total paym5ts = ! fir/ ye> ( ! contract2 & 7,c7 = capital exp5ditures or procurem5t ( s]vices relat$ to ! project c>ri$ out by su* entity1 includ+ equipm5t & infra/ructure = /orage1 deliv]y1 & di/ribution ( eligible hydrog54 7#e7 ,applicable fair m>ket value ,be=e ent]+ into a contract ) an entity "u ! pilot program e/abli%$ "u subsection 7a71 ! ,secret>y %all communicate to su* entity ! expect$ doll> am\nt (1 & me?od = calculat+1 ! applicable fair m>ket value ( conv5tional hydrog5 or a relevant displac$ fuel t w apply = ! duration ( su* contract = ! purposes ( ?is subsection4 7d7 ,maximum paym5t p] ye> 7#a7 ,9 g5]al ,! am\nt ( paym5ts to an entity "u a contract ent]$ into "u ?is section 7o!r ?an a paym5t describ$ 9 subsection 7c77#d77 %all n exce$ #ej1jjj1jjj p] ye>4 7#b7 ,paym5t adju/m5t ,subject to ! availability ( appropriations1 ! ,secret>y may increase ! maximum am\nt ( paym5ts describ$ 9 p>agraph 7#a7 to an entity to up to #ajj1jjj1jjj p] ye>1 z det]m9$ appropriate by ! ,secret>y4 7e7 ,applications ,to be eligible to ent] into a contract "u ?is section1 an entity %all submit an application to ! ,secret>y t includes-- 7#a7 a description ( ! applicable project2 7#b7 ! location ( any facility includ$ 9 ! project2 7#c7 ! me?od ( production1 includ+ expect$ fe$/ocks1 & expect$ co/1 ( eligible hydrog5 to be us$ 9 ! project2 7#d7 a description ( any infra/ructure & equipm5t inve/m5ts1 includ+ modification1 conv]sion1 & retool+1 t w be done to support increas$ use ( eligible hydrog5 at any facility ( ! project2 7#e7 an e/imate ( annualiz$ expect$ gre5h\se gas emissions associat$ ) ! production ( ! eligible hydrog5 expect$ to be us$ 9 ! project1 calculat$ us+ me?ods & proc$ures det]m9$ appropriate by ! ,secret>y2 & 7#f7 any additional in=mation det]m9$ to be appropriate by ! ,secret>y4 7f7 ,priority ,9 select+ entities to ent] into contracts ) "u ?is section1 ! ,secret>y %all give priority to an entity bas$ on-- 7#a7 ) respect to ! project to be c>ri$ out by su* entity us+ eligible hydrog51 ! ext5t to :i* su* project w\ld-- 7,a7 use hydrog5 z a fuel or fe$/ock z a portion ( total fuels or fe$/ocks us$ at ! facility2 7,b7 use eligible hydrog5 z a portion ( total hydrog5 us$ at ! facility2 7,c7 support or enc\rage future use1 comm]cialization1 or co/ r$uction ( eligible hydrog5 & associat$ infra/ructure1 includ+ developm5t ( c5traliz$ hubs = hydrog5 production1 di/ribution1 deliv]y1 & /orage & use ( exi/+ infra/ructure2 7,d7 r$uce gre5h\se gas emissions2 7,e7 seek to mitigate emissions ( nitrog5 oxides f ! production & use ( eligible hydrog52 & 7,f7 seek to s\rce fuels & fe$/ocks us$ 9 ! production ( eligible hydrog5 t are associat$ ) few] gre5h\se gas emissions2 & 7#b7 ! ext5t to :i* su* entity commits to mak+ or contract+ = additional inve/m5ts to support ! production1 di/ribution1 deliv]y1 /orage1 & use ( eligible hydrog51 includ+ modify+1 in/all+1 & con/ruct+ equipm5t & infra/ructure4 7g7 ,assurances ,be=e ent]+ into a contract "u ?is section ) an entity t w produce or pur*ase1 & !n use eligible hydrog5 produc$ f fossil fuels :]e c>bon capture te*nologies are us$ dur+ ! production ( su* eligible hydrog51 ! ,secret>y %all secure a writt5 assurance f su* entity t su* entity %all seek to ensure-- 7#a7 ! r$uction ( up/ream fugitive gre5h\se gas emissions associat$ ) any fe$/ock us$ 9 ! production ( su* eligible hydrog52 & 7#b7 ) respect to ! c>bon dioxide captur$ f ! production ( su* eligible hydrog51 ! long-t]m /orage or utilization1 if su* utilization results 9 long-t]m /orage1 ( su* captur$ c>bon dioxide1 :]e su* captur$ c>bon dioxide is /or$ 9 a mann] t ! ,secret>y det]m9es is consi/5t ) exi/+ relevant regulations = long-t]m /orage ( c>bon dioxide & is o!rwise appropriate4 7h7 ,report to ,congress ,n lat] ?an #a ye> aft] all fund+ made available = ! pilot program e/abli%$ "u subsection 7a7 is exp5d$1 ! ,secret>y %all submit to ,congress & make available to ! public a report t describes-- 7#a7 any *all5ges or b5efits t entities "u su* pilot program report$ ) respect to ! integration or use ( eligible hydrog52 7#b7 an assessm5t ( ! national m>ket pot5tial = eligible hydrog52 7#c7 an assessm5t ( b>ri]s & opportunities = widespread use ( eligible hydrog52 7#d7 recomm5dations = h[ future ,f$]al1 ,/ate1 & local programs c be/ support ! adoption & widespread use ( eligible hydrog52 & 7#e7 any o!r data & analysis ! ,secret>y det]m9es to be necess>y to describe ! implem5tation1 outcomes1 or effectiv5ess ( su* pilot program4 7i7 ,def9itions ,9 ?is ,act3 7#a7 ,conv5tional hydrog5 ,! t]m conv5tional hydrog5 means hydrog5 produc$ f /eam me?ane re=m+ ( nonr5ewable fe$/ocks1 su* z natural gas1 :]e c>bon capture te*nology is n us$ dur+ su* production4 7#b7 ,eligible hydrog5 ,! t]m eligible hydrog5-- 7,a7 means hydrog51 ! production ( :i* releases at lea/ #hj p]c5t less gre5h\se gas emissions into ! atmosph]e p] kilogram ( hydrog5 z comp>$ to ! production ( conv5tional hydrog51 z det]m9$ by ! ,secret>y tak+ into consid]ation gre5h\se gas emissions releas$ f-- 7i7 ! applicable hydrog5 production facility2 7ii7 ! production ( electricity consum$ 9 ! applicable hydrog5 production process2 7iii7 conv5tional hydrog5 production facilities2 & 7iv7 ! production ( electricity consum$ 9 conv5tional hydrog5 production processes2 & 7,b7 includes hydrog5 produc$ us+ electricity1 or !rmal en]gy1 g5]at$ f z]o-emission en]gy s\rces4 7#c7 ,secret>y ,! t]m ,secret>y means ! ,secret>y ( ,en]gy4 7j7 ,au?orization ( appropriations ,!re is au?oriz$ to be appropriat$ to c>ry out ?is ,act-- 7#a7 #cge1jjj1jjj = fiscal ye> #bjbb2 & 7#b7 #bej1jjj1jjj = ea* ( fiscal ye>s #bjbc ?r\gh #bjbf4