Hydrogen for Industry Act of 2021

“969E. Hydrogen technologies for heavy industry grant program

“(a) Definition of low-Income or disadvantaged community—The term low-income or disadvantaged community means a community (including a city, town, county, or reasonably isolated and divisible segment of a larger municipality) with an annual median household income that is less than 100 percent of the statewide annual median household income for the State in which the community is located, according to the most recent decennial census.

“(b) Program—Not later than 180 days after the date of enactment of the Hydrogen for Industry Act of 2021, the Secretary shall establish a program, to be known as the “Hydrogen Technologies for Heavy Industry Grant Program” (referred to in this section as the “Program”), under which the Secretary shall award grants to demonstrate industrial end-use applications of hydrogen for—

“(1) iron, steel, and metals manufacturing;

“(2) cement manufacturing;

“(3) glass manufacturing;

“(4) ammonia and fertilizer production;

“(5) industrial food processes;

“(6) production of synthetic fuels from hydrogen, including with carbon oxides;

“(7) fuel refining, including biorefining;

“(8) chemical synthesis, including synthesis of methanol and ethylene;

“(9) process heaters, including hydrogen combustion with environmental controls; and

“(10) any other use of hydrogen for heavy industry, as determined by the Secretary.

“(c) Purpose—The purpose of the Program is to support the adoption of hydrogen as an emissions reduction technology for heavy industry, including in applications where hydrogen is blended with other fuels or feedstocks.

“(d) Demonstration projects and other authorized projects

“(1) In general—The Secretary shall provide grants to commercial-scale demonstration projects for end-use applications of hydrogen and other authorized projects, as described in paragraph (5).

“(2) Amount of grant—The amount of a grant provided under this subsection shall be not more than $400,000,000.

“(3) Application—An entity seeking a grant to conduct a demonstration project or other authorized project under this subsection shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require, including a description of the manner in which the project—

“(A) will contribute to the reduction of carbon emissions at the applicable facility; and

“(B) in the case of a project for industrial end-use application that already uses hydrogen at scale, will reduce or avoid emissions of greenhouse gases.

“(4) Selection

“(A) Limitations—The Secretary shall only provide a grant under this subsection after reviewing each applicant and application under paragraph (3) with respect to—

“(i) the financial strength of the applicant;

“(ii) the proposed construction schedule;

“(iii) the market risk of the technology that the applicant seeks to demonstrate, as applicable; and

“(iv) the contractor history of the applicant.

“(B) Priority—In providing grants under this subsection, the Secretary shall give priority to projects that will provide greater net impact in avoiding or reducing emissions of greenhouse gases.

“(C) Other considerations—In providing grants under this subsection, the Secretary shall, to the maximum extent practicable, award grants for projects that—

“(i) represent a variety of end uses of hydrogen;

“(ii) will use at least 50 percent hydrogen blends;

“(iii) will generate the greatest benefit to low-income or disadvantaged communities; and

“(iv) will maximize creation or retention of domestic jobs and provide the highest job quality.

“(5) Authorized projects—Grant amounts provided under this subsection may be used—

“(A) to carry out demonstration projects for end uses of hydrogen;

“(B) to construct a new commercial-scale facility that will use hydrogen as a fuel or feedstock; or

“(C) to retool, retrofit, or expand an existing facility determined to be qualified by the Secretary to enable use of hydrogen as a fuel or feedstock in industrial end-use applications of hydrogen, including at multiple points within a larger facility.

“(6) Requirements—A demonstration project receiving a grant under this subsection shall—

“(A) use technologies that have completed pilot-scale testing or the equivalent, as determined by the Secretary;

“(B) on completion, demonstrate hydrogen technologies used by heavy industry; and

“(C) conduct hydrogen leakage monitoring, reporting, and verification programs and leak detection and repair programs.

“(7) Cost sharing—The non-Federal share of the cost of a demonstration project carried out using a grant under this subsection shall be not less than 20 percent.

“(8) Engineering and design studies—The Secretary may fund front-end engineering and design studies in addition to, or in advance of, providing a grant for a demonstration project or other authorized project under this subsection.

“(e) Applicability—No technology, or level of emission reduction, shall be treated as adequately demonstrated for purposes of section 111 of the Clean Air Act (42 U.S.C. 7411), achievable for purposes of best available control technologies (as defined in section 169 of that Act (42 U.S.C. 7479)), or achievable in practice for purposes of the terms defined in section 171 of that Act (42 U.S.C. 7501) solely by reason of the identification of that technology or level of emission reduction in programs established under this Act.

“(f) Authorization of appropriations—There is authorized to be appropriated to the Secretary to carry out the Program $1,200,000,000 for the period of fiscal years 2022 through 2026.”