,,ii #aahth ,,congress #ast ,session ,s4 #fdi ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,march #b1 #bjbc,mr4 ,cornyn 7for himself1 ,mr4 ,coons1 ,mr4 ,cassidy1 ,mr4 ,heinrich1 ,ms4 ,murkowski1 and ,mr4 ,lujn7 introduced the following bill2 which was read twice and referred to the ,committee on ,energy and ,natural ,resources ,a ,,bill ,to require the ,secretary of ,energy to establish a hydrogen infrastructure finance and innovation pilot program1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,hydrogen ,infrastructure ,finance and ,innovation ,act4 #b4 ,study ,not later than #ah months after the date of enactment of this ,act1 the ,secretary of ,energy1 in coordination with the ,administrator of the ,environmental ,protection ,agency1 the ,chair of the ,council on ,environmental ,quality1 the ,administrator of the ,energy ,information ,administration1 and the heads of other relevant ,federal agencies1 shall conduct a study subject to notice and public comment-- 7#a7 to fully assess and report the potential layout of pipeline corridors1 including existing and new infrastructure1 that-- 7,a7 are robust against a range of projected hydrogen demand futures2 and 7,b7 reflect the potential to site within1 or adjacent to1 existing pipeline or other linear infrastructure corridors2 7#b7 to assess the costs associated with each infrastructure scenario described in paragraph 7#a72 7#c7 to synthesize the results from research1 development1 and demonstration projects on materials and metallurgy for transporting and storing hydrogen and hydrogen-based fuels1 such as ammonia2 7#d7 to determine outstanding questions with regard to research1 development1 and demonstration of infrastructure for transporting and storing hydrogen and hydrogen-based fuels1 such as ammonia2 7#e7 to investigate the behavior and environmental impact of hydrogen leakage in pipelines and from geologic storage sites and nongeologic storage equipment2 7#f7 to determine best practices for the construction and maintenance of hydrogen pipelines2 7#g7 to determine the reduction in carbon intensity at various levels of hydrogen blending into the natural gas network2 and 7#h7 to establish a framework for the measurement1 reporting1 and management of hydrogen leaks4 #c4 ,supporting hydrogen infrastructure and regional development of hydrogen 7a7 ,definitions ,in this section3 7#a7 ,board-regulated rates ,the term ,board-regulated rates means rates regulated by the ,surface ,transportation ,board4 7#b7 ,commission-regulated rates ,the term ,commission-regulated rates means rates regulated by the ,federal ,energy ,regulatory ,commission4 7#c7 ,common carrier ,the term common carrier means a transportation infrastructure operator or owner that-- 7,a7 publishes a publicly available tariff containing the just and reasonable rates1 terms1 and conditions of nondiscriminatory service2 and 7,b7 holds itself out to provide transportation services to the public for a fee4 7#d7 ,eligible activity ,the term eligible activity means an activity described in subsection 7g77#b7 relating to1 or carried out in connection with1 an eligible project4 7#e7 ,eligible entity ,the term eligible entity means a corporation1 partnership1 joint venture1 trust1 non-,federal governmental entity1 agency1 or instrumentality1 or other entity4 7#f7 ,eligible project 7,a7 ,in general ,subject to subparagraph 7,b71 the term eligible project means an infrastructure project for hydrogen transportation1 storage1 or delivery1 including pipeline1 shipping1 rail1 refueling1 or other infrastructure1 or associated equipment1 as the ,secretary determines to be appropriate4 7,b7 ,inclusion of pipeline projects ,the term eligible project includes a pipeline project only if the project is for-- 7i7 the construction of #a or more new pipelines that are capable of handling pure hydrogen2 or 7ii7 the retrofitting of #a or more existing natural gas pipelines-- 7,i7 to transport a blend of hydrogen and natural gas2 and 7,,ii7 in a manner that will significantly increase the capacity of the pipelines to transport hydrogen1 as determined by the ,secretary4 7#g7 ,eligible project cost 7,a7 ,in general ,the term eligible project costs means-- 7i7 the costs of carrying out an eligible activity2 and 7ii7 any costs described in subparagraph 7,b7 relating to1 or incurred in connection with1 an eligible project4 7,b7 ,costs described ,the costs referred to in subparagraph 7,a77ii7 are-- 7i7 the costs of capitalized interest necessary to meet market requirements1 the costs of reasonably required reserve funds1 capital issuance expenses1 and any other carrying costs during construction of the applicable infrastructure2 and 7ii7 transaction costs associated with financing an eligible project1 including the cost of legal counsel and technical consultants4 7#h7 ,,hifia pilot program ,the term ,,hifia pilot program means the hydrogen infrastructure finance and innovation pilot program established under subsection 7b77#a74 7#i7 ,letter of interest ,the term letter of interest means a letter submitted by a potential applicant prior to an application for a grant or a loan under the ,,hifia pilot program that-- 7,a7 is in a format prescribed by the ,secretary on the website of the ,,hifia pilot program2 7,b7 describes the project and the location1 purpose1 and cost of the project2 7,c7 outlines the proposed financial plan1 including-- 7i7 the requested grant or loan assistance2 and 7ii7 the proposed obligor1 if applicable2 7,d7 provides a status of environmental review2 and 7,e7 provides information regarding satisfaction of other eligibility requirements of the ,,hifia pilot program4 7#aj7 ,low-income or disadvantaged community ,the term low-income or disadvantaged community means a community 7including a city1 a town1 a county1 and any reasonably isolated and divisible segment of a larger municipality7 with an annual median household income that is less than #ajj percent of the statewide annual median household income for the ,state in which the community is located1 according to the most recent decennial census4 7#aa7 ,obligor ,the term obligor means an eligible entity that is liable for payment of the principal of1 or interest on1 a loan under the ,,hifia pilot program4 7#ab7 ,secretary ,the term ,secretary means the ,secretary of ,energy4 7b7 ,establishment 7#a7 ,in general ,not later than #a year after the date of enactment of this ,act1 the ,secretary1 in consultation with the ,federal ,energy ,regulatory ,commission1 the ,surface ,transportation ,board1 and the ,administrator of the ,pipeline and ,hazardous ,materials ,safety ,administration1 shall establish a hydrogen infrastructure finance and innovation pilot program under which the ,secretary shall provide-- 7,a7 financial assistance to eligible entities for eligible projects through-- 7i7 grants2 or 7ii7 long-term1 low-cost supplemental loans2 and 7,b7 technical assistance in accordance with subsection 7l74 7#b7 ,coordination with hydrogen hubs 7,a7 ,in general ,to ensure that the ,,hifia pilot program is compatible with1 and complementary to1 any hydrogen hubs developed under any other law1 the ,secretary1 to the maximum extent practicable and subject to subparagraph 7,b71 shall coordinate the establishment of the ,,hifia pilot program with-- 7i7 any program to support the development of hydrogen hubs that is required to be established under any other law2 and 7ii7 the development of those hydrogen hubs4 7,b7 ,treatment ,coordination with a hydrogen hub under subparagraph 7,a7 shall not-- 7i7 be considered to be a priority criterion in determining whether to provide assistance for an eligible project under the ,,hifia pilot program2 or 7ii7 preclude the provision of assistance under the ,,hifia pilot program for another eligible project that-- 7,i7 meets the criteria described in subsections 7d7 and 7e72 and 7,,ii7 is an objectively superior project1 as determined by the ,secretary4 7c7 ,eligibility 7#a7 ,in general ,the ,secretary may provide financial assistance for an eligible project under the ,,hifia pilot program if-- 7,a7 the eligible entity proposing to carry out the project submits a letter of interest prior to submission of an application under paragraph 7#b7 with respect to the project2 and 7,b7 the eligible entity and the eligible project meet all applicable requirements of this section4 7#b7 ,applications 7,a7 ,in general ,to be eligible for a grant or a loan under the ,,hifia pilot program1 an eligible entity shall submit to the ,secretary an application at such time1 in such manner1 and containing such information as the ,secretary determines to be appropriate4 7,b7 ,election 7i7 ,in general ,an eligible entity may elect to apply for a grant1 a loan1 or both under the ,,hifia pilot program4 7ii7 ,decision ,the ,secretary shall have discretion to award any mix of grants and loans under the ,,hifia pilot program as the ,secretary determines to be appropriate1 including with respect to each eligible entity that applies for both a grant and a loan4 7,c7 ,application processing procedures 7i7 ,notice of complete application ,not later than #cj days after the date of receipt of an application under this paragraph1 the ,secretary shall provide to the applicant a written notice describing whether-- 7,i7 the application is complete2 or 7,,ii7 additional information or materials are needed to complete the application4 7ii7 ,approval or denial of application ,not later than #ij days after the date of issuance of a written notice under clause 7i71 the ,secretary shall provide to the applicant a written notice informing the applicant whether the ,secretary has approved or disapproved the application4 7d7 ,priority ,in selecting eligible projects to receive a grant or a loan under the ,,hifia pilot program1 the ,secretary shall give priority to eligible projects that-- 7#a7 will provide greater net impact in avoiding or reducing emissions of greenhouse gases2 and 7#b7 are sited in a manner that minimizes environmental disturbance and other siting concerns1 including by being sited within1 or adjacent to1 existing pipeline or other linear infrastructure corridors4 7e7 ,considerations ,in selecting eligible projects to receive a grant or a loan under the ,,hifia pilot program1 the ,secretary1 to the maximum extent practicable1 shall select projects that-- 7#a7 are large-capacity1 common carrier infrastructure2 7#b7 enable geographical diversity in associated projects and supply chains to produce1 use1 or store hydrogen1 with the goal of enabling projects in all major regions of the ,united ,states with current hydrogen demand and potential future hydrogen demand2 7#c7 aid in creating economies of scale for hydrogen uptake in applications requiring an affordable solution to reduce greenhouse gas emissions2 7#d7 will generate the greatest benefit to low-income or disadvantaged communities2 and 7#e7 will-- 7,a7 maximize creation or retention of jobs in the ,united ,states2 and 7,b7 provide the highest job quality4 7f7 ,loans 7#a7 ,in general ,in carrying out the ,,hifia pilot program1 the ,secretary shall make loans to eligible entities1 the proceeds of which shall be used to finance eligible projects4 7#b7 ,interest rate ,the interest rate of a loan under the ,,hifia pilot program shall be not less than the interest rate on ,united ,states ,treasury securities of a similar maturity to the maturity of the loan on the date of closing on the loan4 7#c7 ,maturity date ,the final maturity date of a loan provided under the ,,hifia pilot program shall be the date that is #cj years after the date of substantial completion of the applicable eligible project4 7#d7 ,repayment 7,a7 ,in general ,the ,secretary shall establish a repayment schedule for each loan provided under the ,,hifia pilot program4 7,b7 ,commencement ,repayment of a loan provided under the ,,hifia pilot program shall commence on the date of substantial completion of the applicable eligible project for which the loan was provided4 7,c7 ,deferral of repayment ,if1 at any time during the #e-year period beginning on the date of substantial completion of an eligible project1 the project is unable to generate sufficient revenues in excess of reasonable and necessary operating expenses to pay the scheduled loan repayments of principal and interest on the loan1 the ,secretary may allow the borrower to defer repayment of the loan until the end of that #e-year period4 7#e7 ,requirements 7,a7 ,creditworthiness 7i7 ,in general ,each obligor with respect to a loan provided for an eligible project under the ,,hifia pilot program shall be creditworthy1 such that there exists a reasonable prospect of repayment of the principal and interest on the loan1 as determined by the ,secretary under clause 7ii74 7ii7 ,reasonable prospect of repayment ,the ,secretary shall base a determination of whether there is a reasonable prospect of repayment under clause 7i7 on a comprehensive evaluation of whether the obligor has a reasonable prospect of repaying the loan for the eligible project1 including evaluation of-- 7,i7 the forecast of noncontractual cash flows supported by market projections from reputable sources1 as determined by the ,secretary1 and cash sweeps or other structural enhancements2 7,,ii7 the strength of the contractual terms of an eligible project 7if available for the applicable market segment72 7,,iii7 the projected financial strength of the obligor-- 7aa7 at the time of loan close2 and 7bb7 throughout the loan term1 including after the project is completed2 7,,iv7 the financial strength of the investors and strategic partners of the obligor1 if applicable2 and 7,v7 other financial metrics and analyses that are relied on by the private lending community and nationally recognized credit rating agencies1 as determined to be appropriate by the ,secretary4 7,b7 ,dedicated source of revenue ,an eligible project for which a loan is provided under the ,,hifia pilot program shall have a dedicated source of revenue separate from any financial assistance received under the ,,hifia pilot program4 7g7 ,use of financial assistance 7#a7 ,in general ,a grant or loan provided under the ,,hifia pilot program may be used for any eligible project costs4 7#b7 ,eligible activities ,a grant or loan provided under the ,,hifia pilot program may be used to carry out any of the following activities with respect to an eligible project3 7,a7 ,development phase activities1 including-- 7i7 planning2 7ii7 preliminary engineering2 7iii7 design2 7iv7 environmental review2 7v7 revenue forecasting2 and 7vi7 other preconstruction activities4 7,b7 ,construction1 reconstruction1 rehabilitation1 and replacement activities1 including the training of construction personnel in handling and safety4 7,c7 ,acquisition of-- 7i7 real property or an interest in real property2 or 7ii7 equipment4 7,d7 ,environmental mitigation activities4 7,e7 ,activities relating to construction contingencies4 7h7 ,federal requirements 7#a7 ,in general ,nothing in this section supersedes the applicability of any other requirement under ,federal law 7including regulations74 7#b7 ,,nepa ,federal assistance may only be provided under the ,,hifia pilot program for a project that has received an environmental categorical exclusion1 a finding of no significant impact1 or a record of decision under the ,national ,environmental ,policy ,act of #aifi 7#db ,u4,s4,c4 #dcba et seq474 7i7 ,leak detection ,each eligible entity that receives a loan or grant under the ,,hifia pilot program shall conduct-- 7#a7 a hydrogen leakage monitoring1 reporting1 and verification 7also known as ,,mrv7 program2 and 7#b7 a hydrogen leak detection and repair 7also known as ,,ldar7 program4 7j7 ,maximum ,federal involvement ,the maximum ,federal share of an eligible project for which a loan is provided under the ,,hifia pilot program shall not exceed #hj percent of the eligible costs of the project4 7k7 ,amendment ,section #agjc7;b77#c7 of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #afeac7;b77#c77 is amended by striking ,hydrogen fuel and inserting ,hydrogen technologies applicable to #a or more end-use sectors1 such as power generation1 transportation1 aviation1 storage1 industrial1 and chemicals1 including hydrogen fuel4 7l7 ,technical assistance 7#a7 ,in general ,the ,secretary and the ,national ,laboratories may provide technical assistance under the ,,hifia pilot program to assess the grading and readiness of existing infrastructure to transport1 store1 or deliver hydrogen with respect to informal ,state and regional planning for investments in that grading and readiness4 7#b7 ,priority ,in providing technical assistance under paragraph 7#a71 the ,secretary and the ,national ,laboratories shall prioritize-- 7,a7 preexisting infrastructure corridors2 7,b7 geologic storage potential for hydrogen2 and 7,c7 industrial clusters4 7m7 ,regulatory assessment ,to encourage hydrogen transportation infrastructure deployment ,not later than #bgj days after the date of enactment of this ,act1 each of the ,federal ,energy ,regulatory ,commission1 the ,surface ,transportation ,board1 and the ,administrator of the ,pipeline and ,hazardous ,materials ,safety ,administration1 in coordination with the ,secretary1 shall-- 7#a7 assess jurisdiction over the siting1 construction1 safety1 and regulation of hydrogen transportation infrastructure1 including1 at a minimum1 the blending of hydrogen in natural gas pipelines2 7#b7 if that assessment indicates that additional authority is needed to support the deployment of hydrogen transportation infrastructure1 submit to ,congress a report describing the needed authority2 and 7#c7 identify the eligibility of1 and process for1 hydrogen transportation infrastructure to receive cost recovery under the ,,hifia pilot program through ,commission-regulated rates1 ,board-regulated rates1 or other applicable regulated rates1 as appropriate1 for the transportation of hydrogen in interstate commerce4 7n7 ,authorization of appropriations ,there is authorized to be appropriated to the ,secretary to carry out the ,,hifia pilot program #ajj1jjj1jjj for each of fiscal years #bjbd through #bjbh4