What This Bill Does
This bill requires the Secretary of Energy to establish a hydrogen infrastructure finance and innovation pilot program that provides grants and loans to help build and improve hydrogen transportation, storage, and delivery infrastructure. The bill also directs the Secretary to coordinate a study examining pipeline corridors, infrastructure costs, hydrogen safety concerns, and best practices for hydrogen infrastructure development.
Who It Affects
Corporations, partnerships, joint ventures, and other entities building hydrogen infrastructure projects receive grants and loans. Federal agencies including the Department of Energy, Environmental Protection Agency, Federal Energy Regulatory Commission, Surface Transportation Board, and Pipeline and Hazardous Materials Safety Administration must conduct studies and establish regulatory frameworks. Communities across the United States may benefit from hydrogen infrastructure projects, particularly low-income and disadvantaged communities.
Key Provisions
* The Secretary of Energy must establish the hydrogen infrastructure finance and innovation pilot program within one year of enactment and provide financial assistance through grants or long-term, low-cost supplemental loans to eligible entities for eligible projects (Sec. 3(b)).
* The Secretary must conduct a study within 18 months assessing potential pipeline corridors for hydrogen, infrastructure costs, hydrogen transportation and storage research, environmental impacts of hydrogen leakage, construction and maintenance best practices, and a framework for measuring and managing hydrogen leaks (Sec. 2).
* Projects receive priority if they provide greater net impact in avoiding or reducing greenhouse gas emissions and are sited within or adjacent to existing pipeline or linear infrastructure corridors (Sec. 3(d)).
* Loans shall have an interest rate not less than United States Treasury securities of similar maturity, a final maturity date 30 years after substantial completion of the project, and shall commence repayment upon substantial completion of the project (Sec. 3(f)).
* The maximum federal share of an eligible project may not exceed 80 percent of the eligible costs (Sec. 3(j)).
* Each entity receiving a grant or loan must conduct a hydrogen leakage monitoring, reporting, and verification program and a hydrogen leak detection and repair program (Sec. 3(i)).
* The Secretary and National Laboratories shall provide technical assistance to assess the readiness of existing infrastructure to transport, store, or deliver hydrogen, prioritizing preexisting infrastructure corridors, geologic storage potential, and industrial clusters (Sec. 3(l)).
* Federal Energy Regulatory Commission, Surface Transportation Board, and the Pipeline and Hazardous Materials Safety Administration must assess their jurisdiction over hydrogen transportation infrastructure and submit a report to Congress within 270 days describing any needed additional authority (Sec. 3(m)).
What Changes
If this becomes law, federal funding becomes available to finance hydrogen infrastructure projects through grants and loans. The government will conduct comprehensive research on hydrogen pipeline corridors, costs, and environmental impacts. Federal agencies will clarify their regulatory authority over hydrogen transportation infrastructure. Projects focused on avoiding greenhouse gas emissions and using existing corridors will receive priority consideration. Entities receiving federal assistance must implement programs to monitor and detect hydrogen leaks.
Important Definitions
The bill defines the following key terms explicitly:
* "Common carrier" means a transportation infrastructure operator or owner that publishes publicly available rates, terms, and conditions of nondiscriminatory service and offers transportation services to the public for a fee.
* "Eligible entity" means a corporation, partnership, joint venture, trust, non-federal governmental entity, agency, or instrumentality, or other entity.
* "Eligible project" means an infrastructure project for hydrogen transportation, storage, or delivery, including pipeline, shipping, rail, refueling, or other infrastructure. Pipeline projects qualify only if they construct new pure hydrogen pipelines or retrofit existing natural gas pipelines to transport hydrogen blends while significantly increasing hydrogen capacity.
* "Low-income or disadvantaged community" means a community with an annual median household income less than 100 percent of the statewide annual median household income according to the most recent decennial census.
* "HIFIA pilot program" means the hydrogen infrastructure finance and innovation pilot program established under the bill.
* "Letter of interest" means a letter submitted prior to formal application describing the project, location, purpose, cost, financial plan, environmental review status, and eligibility information in a Secretary-prescribed format.
Effective Date
Not specified in bill text
II
118TH CONGRESS
1ST SESSION
S. 649
To require the Secretary of Energy to establish a hydrogen infrastructure
finance and innovation pilot program, and for other purposes.
IN THE SENATE OF THE UNITED STATES
MARCH 2, 2023
Mr. CORNYN (for himself, Mr. COONS, Mr. CASSIDY, Mr. HEINRICH, Ms.
MURKOWSKI, and Mr. LUJA´N) introduced the following bill; which was
read twice and referred to the Committee on Energy and Natural Re-
sources
A BILL
To require the Secretary of Energy to establish a hydrogen
infrastructure finance and innovation pilot program, and
for other purposes.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘Hydrogen Infrastruc-
4
ture Finance and Innovation Act’’.
5
SEC. 2. STUDY.
6
Not later than 18 months after the date of enactment
7
of this Act, the Secretary of Energy, in coordination with
8
the Administrator of the Environmental Protection Agen-
9
VerDate Sep 11 2014
05:20 Mar 15, 2023
Jkt 039200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\S649.IS
S649
kjohnson on DSK79L0C42PROD with BILLS
2
•S 649 IS
cy, the Chair of the Council on Environmental Quality,
1
the Administrator of the Energy Information Administra-
2
tion, and the heads of other relevant Federal agencies,
3
shall conduct a study subject to notice and public com-
4
ment—
5
(1) to fully assess and report the potential lay-
6
out of pipeline corridors, including existing and new
7
infrastructure, that—
8
(A) are robust against a range of projected
9
hydrogen demand futures; and
10
(B) reflect the potential to site within, or
11
adjacent to, existing pipeline or other linear in-
12
frastructure corridors;
13
(2) to assess the costs associated with each in-
14
frastructure scenario described in paragraph (1);
15
(3) to synthesize the results from research, de-
16
velopment, and demonstration projects on materials
17
and metallurgy for transporting and storing hydro-
18
gen and hydrogen-based fuels, such as ammonia;
19
(4) to determine outstanding questions with re-
20
gard to research, development, and demonstration of
21
infrastructure for transporting and storing hydrogen
22
and hydrogen-based fuels, such as ammonia;
23
(5) to investigate the behavior and environ-
24
mental impact of hydrogen leakage in pipelines and
25
VerDate Sep 11 2014
05:20 Mar 15, 2023
Jkt 039200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\S649.IS
S649
kjohnson on DSK79L0C42PROD with BILLS
3
•S 649 IS
from geologic storage sites and nongeologic storage
1
equipment;
2
(6) to determine best practices for the construc-
3
tion and maintenance of hydrogen pipelines;
4
(7) to determine the reduction in carbon inten-
5
sity at various levels of hydrogen blending into the
6
natural gas network; and
7
(8) to establish a framework for the measure-
8
ment, reporting, and management of hydrogen leaks.
9
SEC. 3. SUPPORTING HYDROGEN INFRASTRUCTURE AND
10
REGIONAL DEVELOPMENT OF HYDROGEN.
11
(a) DEFINITIONS.—In this section:
12
(1) BOARD-REGULATED
RATES.—The term
13
‘‘Board-regulated rates’’ means rates regulated by
14
the Surface Transportation Board.
15
(2)
COMMISSION-REGULATED
RATES.—The
16
term ‘‘Commission-regulated rates’’ means rates reg-
17
ulated by the Federal Energy Regulatory Commis-
18
sion.
19
(3) COMMON
CARRIER.—The term ‘‘common
20
carrier’’ means a transportation infrastructure oper-
21
ator or owner that—
22
(A) publishes a publicly available tariff
23
containing the just and reasonable rates, terms,
24
VerDate Sep 11 2014
05:20 Mar 15, 2023
Jkt 039200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\S649.IS
S649
kjohnson on DSK79L0C42PROD with BILLS
4
•S 649 IS
and conditions of nondiscriminatory service;
1
and
2
(B) holds itself out to provide transpor-
3
tation services to the public for a fee.
4
(4) ELIGIBLE
ACTIVITY.—The term ‘‘eligible
5
activity’’ means an activity described in subsection
6
(g)(2) relating to, or carried out in connection with,
7
an eligible project.
8
(5) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
9
ty’’ means a corporation, partnership, joint venture,
10
trust, non-Federal governmental entity, agency, or
11
instrumentality, or other entity.
12
(6) ELIGIBLE PROJECT.—
13
(A) IN
GENERAL.—Subject to subpara-
14
graph (B), the term ‘‘eligible project’’ means an
15
infrastructure project for hydrogen transpor-
16
tation, storage, or delivery, including pipeline,
17
shipping, rail, refueling, or other infrastructure,
18
or associated equipment, as the Secretary deter-
19
mines to be appropriate.
20
(B) INCLUSION OF PIPELINE PROJECTS.—
21
The term ‘‘eligible project’’ includes a pipeline
22
project only if the project is for—
23
VerDate Sep 11 2014
05:20 Mar 15, 2023
Jkt 039200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\S649.IS
S649
kjohnson on DSK79L0C42PROD with BILLS
5
•S 649 IS
(i) the construction of 1 or more new
1
pipelines that are capable of handling pure
2
hydrogen; or
3
(ii) the retrofitting of 1 or more exist-
4
ing natural gas pipelines—
5
(I) to transport a blend of hydro-
6
gen and natural gas; and
7
(II) in a manner that will signifi-
8
cantly increase the capacity of the
9
pipelines to transport hydrogen, as de-
10
termined by the Secretary.
11
(7) ELIGIBLE PROJECT COST.—
12
(A) IN
GENERAL.—The term ‘‘eligible
13
project costs’’ means—
14
(i) the costs of carrying out an eligible
15
activity; and
16
(ii) any costs described in subpara-
17
graph (B) relating to, or incurred in con-
18
nection with, an eligible project.
19
(B) COSTS
DESCRIBED.—The costs re-
20
ferred to in subparagraph (A)(ii) are—
21
(i) the costs of capitalized interest
22
necessary to meet market requirements,
23
the costs of reasonably required reserve
24
funds, capital issuance expenses, and any
25
VerDate Sep 11 2014
05:20 Mar 15, 2023
Jkt 039200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\S649.IS
S649
kjohnson on DSK79L0C42PROD with BILLS
6
•S 649 IS
other carrying costs during construction of
1
the applicable infrastructure; and
2
(ii) transaction costs associated with
3
financing an eligible project, including the
4
cost of legal counsel and technical consult-
5
ants.
6
(8)
HIFIA
PILOT
PROGRAM.—The
term
7
‘‘HIFIA pilot program’’ means the hydrogen infra-
8
structure finance and innovation pilot program es-
9
tablished under subsection (b)(1).
10
(9) LETTER OF INTEREST.—The term ‘‘letter
11
of interest’’ means a letter submitted by a potential
12
applicant prior to an application for a grant or a
13
loan under the HIFIA pilot program that—
14
(A) is in a format prescribed by the Sec-
15
retary on the website of the HIFIA pilot pro-
16
gram;
17
(B) describes the project and the location,
18
purpose, and cost of the project;
19
(C) outlines the proposed financial plan,
20
including—
21
(i) the requested grant or loan assist-
22
ance; and
23
(ii) the proposed obligor, if applicable;
24
VerDate Sep 11 2014
05:20 Mar 15, 2023
Jkt 039200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\S649.IS
S649
kjohnson on DSK79L0C42PROD with BILLS
7
•S 649 IS
(D) provides a status of environmental re-
1
view; and
2
(E) provides information regarding satis-
3
faction of other eligibility requirements of the
4
HIFIA pilot program.
5
(10) LOW-INCOME OR DISADVANTAGED COMMU-
6
NITY.—The term ‘‘low-income or disadvantaged
7
community’’ means a community (including a city, a
8
town, a county, and any reasonably isolated and di-
9
visible segment of a larger municipality) with an an-
10
nual median household income that is less than 100
11
percent of the statewide annual median household
12
income for the State in which the community is lo-
13
cated, according to the most recent decennial census.
14
(11) OBLIGOR.—The term ‘‘obligor’’ means an
15
eligible entity that is liable for payment of the prin-
16
cipal of, or interest on, a loan under the HIFIA pilot
17
program.
18
(12)
SECRETARY.—The
term
‘‘Secretary’’
19
means the Secretary of Energy.
20
(b) ESTABLISHMENT.—
21
(1) IN GENERAL.—Not later than 1 year after
22
the date of enactment of this Act, the Secretary, in
23
consultation with the Federal Energy Regulatory
24
Commission, the Surface Transportation Board, and
25
VerDate Sep 11 2014
05:20 Mar 15, 2023
Jkt 039200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\S649.IS
S649
kjohnson on DSK79L0C42PROD with BILLS
8
•S 649 IS
the Administrator of the Pipeline and Hazardous
1
Materials Safety Administration, shall establish a
2
hydrogen infrastructure finance and innovation pilot
3
program under which the Secretary shall provide—
4
(A) financial assistance to eligible entities
5
for eligible projects through—
6
(i) grants; or
7
(ii) long-term, low-cost supplemental
8
loans; and
9
(B) technical assistance in accordance with
10
subsection (l).
11
(2) COORDINATION WITH HYDROGEN HUBS.—
12
(A) IN
GENERAL.—To ensure that the
13
HIFIA pilot program is compatible with, and
14
complementary to, any hydrogen hubs developed
15
under any other law, the Secretary, to the max-
16
imum extent practicable and subject to sub-
17
paragraph (B), shall coordinate the establish-
18
ment of the HIFIA pilot program with—
19
(i) any program to support the devel-
20
opment of hydrogen hubs that is required
21
to be established under any other law; and
22
(ii) the development of those hydrogen
23
hubs.
24
VerDate Sep 11 2014
05:20 Mar 15, 2023
Jkt 039200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\S649.IS
S649
kjohnson on DSK79L0C42PROD with BILLS
9
•S 649 IS
(B) TREATMENT.—Coordination with a
1
hydrogen hub under subparagraph (A) shall
2
not—
3
(i) be considered to be a priority cri-
4
terion in determining whether to provide
5
assistance for an eligible project under the
6
HIFIA pilot program; or
7
(ii) preclude the provision of assist-
8
ance under the HIFIA pilot program for
9
another eligible project that—
10
(I) meets the criteria described in
11
subsections (d) and (e); and
12
(II) is an objectively superior
13
project, as determined by the Sec-
14
retary.
15
(c) ELIGIBILITY.—
16
(1) IN GENERAL.—The Secretary may provide
17
financial assistance for an eligible project under the
18
HIFIA pilot program if—
19
(A) the eligible entity proposing to carry
20
out the project submits a letter of interest prior
21
to submission of an application under para-
22
graph (2) with respect to the project; and
23
VerDate Sep 11 2014
05:20 Mar 15, 2023
Jkt 039200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\S649.IS
S649
kjohnson on DSK79L0C42PROD with BILLS
10
•S 649 IS
(B) the eligible entity and the eligible
1
project meet all applicable requirements of this
2
section.
3
(2) APPLICATIONS.—
4
(A) IN
GENERAL.—To be eligible for a
5
grant or a loan under the HIFIA pilot pro-
6
gram, an eligible entity shall submit to the Sec-
7
retary an application at such time, in such
8
manner, and containing such information as the
9
Secretary determines to be appropriate.
10
(B) ELECTION.—
11
(i) IN
GENERAL.—An eligible entity
12
may elect to apply for a grant, a loan, or
13
both under the HIFIA pilot program.
14
(ii) DECISION.—The Secretary shall
15
have discretion to award any mix of grants
16
and loans under the HIFIA pilot program
17
as the Secretary determines to be appro-
18
priate, including with respect to each eligi-
19
ble entity that applies for both a grant and
20
a loan.
21
(C) APPLICATION
PROCESSING
PROCE-
22
DURES.—
23
(i) NOTICE
OF
COMPLETE
APPLICA-
24
TION.—Not later than 30 days after the
25
VerDate Sep 11 2014
05:20 Mar 15, 2023
Jkt 039200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\S649.IS
S649
kjohnson on DSK79L0C42PROD with BILLS
11
•S 649 IS
date of receipt of an application under this
1
paragraph, the Secretary shall provide to
2
the applicant a written notice describing
3
whether—
4
(I) the application is complete; or
5
(II) additional information or
6
materials are needed to complete the
7
application.
8
(ii) APPROVAL OR DENIAL OF APPLI-
9
CATION.—Not later than 90 days after the
10
date of issuance of a written notice under
11
clause (i), the Secretary shall provide to
12
the applicant a written notice informing
13
the applicant whether the Secretary has
14
approved or disapproved the application.
15
(d) PRIORITY.—In selecting eligible projects to re-
16
ceive a grant or a loan under the HIFIA pilot program,
17
the Secretary shall give priority to eligible projects that—
18
(1) will provide greater net impact in avoiding
19
or reducing emissions of greenhouse gases; and
20
(2) are sited in a manner that minimizes envi-
21
ronmental disturbance and other siting concerns, in-
22
cluding by being sited within, or adjacent to, existing
23
pipeline or other linear infrastructure corridors.
24
VerDate Sep 11 2014
05:20 Mar 15, 2023
Jkt 039200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\S649.IS
S649
kjohnson on DSK79L0C42PROD with BILLS
12
•S 649 IS
(e) CONSIDERATIONS.—In selecting eligible projects
1
to receive a grant or a loan under the HIFIA pilot pro-
2
gram, the Secretary, to the maximum extent practicable,
3
shall select projects that—
4
(1) are large-capacity, common carrier infra-
5
structure;
6
(2) enable geographical diversity in associated
7
projects and supply chains to produce, use, or store
8
hydrogen, with the goal of enabling projects in all
9
major regions of the United States with current hy-
10
drogen demand and potential future hydrogen de-
11
mand;
12
(3) aid in creating economies of scale for hydro-
13
gen uptake in applications requiring an affordable
14
solution to reduce greenhouse gas emissions;
15
(4) will generate the greatest benefit to low-in-
16
come or disadvantaged communities; and
17
(5) will—
18
(A) maximize creation or retention of jobs
19
in the United States; and
20
(B) provide the highest job quality.
21
(f) LOANS.—
22
(1) IN GENERAL.—In carrying out the HIFIA
23
pilot program, the Secretary shall make loans to eli-
24
VerDate Sep 11 2014
05:20 Mar 15, 2023
Jkt 039200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\S649.IS
S649
kjohnson on DSK79L0C42PROD with BILLS
13
•S 649 IS
gible entities, the proceeds of which shall be used to
1
finance eligible projects.
2
(2) INTEREST RATE.—The interest rate of a
3
loan under the HIFIA pilot program shall be not
4
less than the interest rate on United States Treas-
5
ury securities of a similar maturity to the maturity
6
of the loan on the date of closing on the loan.
7
(3) MATURITY DATE.—The final maturity date
8
of a loan provided under the HIFIA pilot program
9
shall be the date that is 30 years after the date of
10
substantial completion of the applicable eligible
11
project.
12
(4) REPAYMENT.—
13
(A) IN GENERAL.—The Secretary shall es-
14
tablish a repayment schedule for each loan pro-
15
vided under the HIFIA pilot pro
[Text truncated for display. Full text available on Congress.gov.]