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Federal Grants for Hydrogen Fuel

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					Working With the Feds on Hydrogen Fuel
    Cell & Renewable Technologies
                          John Herrick
                Chief Counsel, U.S. Dept. of Energy
                         Golden, Colorado
      Adjunct Prof. of Law, U of Denver - Sturm School of Law


                                                  January 18, 2006
                                                 ABA Teleconference
                                     Commercialization of Hydrogen
                                            Technologies
                                John Herrick                          1
           Chief Counsel, U.S. Department of Energy, Golden CO
Federal Commitment to the Development of
Hydrogen Technologies
• President Bush in 2003 announced the Hydrogen Fuel
  Initiative accelerating the R,D&D of H2 fuel cells and H2
  production, storage, distribution & infrastructure
  technologies.

•    When combined with the existing DOE FreedomCAR
    Program (hybrid vehicle R,D&D), the federal government
    plans to commit $1.7 billion over a five year period (FY’04-
    ’08) to help bring H2 fuel cell vehicles from the lab to the
    showroom.
                                    John Herrick                     2
               Chief Counsel, U.S. Department of Energy, Golden CO
 Federal Commitment to the Development of
 Hydrogen Technologies
• The purpose of this Initiative is to encourage federal
  partnerships with the private sector (collaborating academia,
  the auto manufacturing and the energy sectors) to overcome
  key economic and technical barriers to facilitate the mass
  production of H2 fueled fuel cell vehicles and H2
  infrastructure commercialization decision by industry in
  2015. These barriers are:
   –   H2 production
   –   H2 storage
   –   H2 delivery & infrastructure
   –   H2 fuel cell power system development
• If a positive decision is made in 2015, to lead to commercial
  market introduction of H2 fuel cell vehicles by 2020.
                                       John Herrick                     3
                  Chief Counsel, U.S. Department of Energy, Golden CO
Current Federal Funding Levels
• H2 Initiative is being conducted out of DOE’s Hydrogen,
  Fuel Cells & Infrastructure Technologies Program in the
  Office of Energy Efficiency & Renewable Energy
   – See, http://www.eere.energy.gov/hydrogenandfuelcells/mypp/
     for a description of the multi-year R,D,&D Program
• New FY ’06 funding for the H2 Initiative is approximately
  $157 million (less earmarks)
• Estimated FY 07 funding for the proposed Fuel Cell R&D
  Funding Opportunity Announcement is in the $50 - $100
  million dollar range
• Funding availability in future could be impacted by the
  volume of Congressional earmarks.
                                   John Herrick                     4
              Chief Counsel, U.S. Department of Energy, Golden CO
 H2 Fuel Cell Funding Opportunity
 Announcement
• FOA to be issued late January out of DOE’s Golden CO Office
   – DE-PS-06GO-96017
   – http://www.grants.gov/search/search.do?mode=AGENCYSEARCH&agency=DOE

• Goals of Funding Announcement:
   – Development of a durable, direct H2 fuel power system that:
       •   that reaches peak efficiency of 60%;
       •   has a power density of 650 W/L;
       •   a specific power of 650 W/kg;
       •   a cost of $45/kW by 2010
       •   A cost of $30/kw by 2015
                                     John Herrick                     5
                Chief Counsel, U.S. Department of Energy, Golden CO
H2 Fuel Cell Funding – Timetable

• Applications will be due late April 2006
• Awards could be announced by summer,
  2006
• Agreements to be executed in FY 07 (Oct-
  Nov ’06)
• Up to 15+ awards to be made

                               John Herrick                     6
          Chief Counsel, U.S. Department of Energy, Golden CO
How to Form Partnerships with DOE in
Renewable Energy Technology Development
• General Principles:
   – Must be willing to share risk through cost sharing.
   – Form consortiums with profit, non-profit, academia.
   – Look for opportunities to work with DOE’s National
     Laboratories in project
   – Be responsive and specific to DOE Funding
     Opportunity Announcements
   – Have concepts that can pass a high standard for Merit
     Review
   – Apply electronically through grants.gov
   – Accept peculiarities of federal IP laws
                                  John Herrick                     7
             Chief Counsel, U.S. Department of Energy, Golden CO
 Principles of Cost Sharing with DOE
• Cost sharing is mandated under the Energy Policy
  Act of 2005 (primarily §988) for most applied
  science projects which would deal with H2
   – Minimum 20% non federal cost share for research &
     development projects
   – Minimum 50% non-federal cost share for demonstration
     & commercial application projects

• DOE likes to use a sliding scale for cost sharing in
  weighing risk verses programmatic objectives.

                                  John Herrick                     8
             Chief Counsel, U.S. Department of Energy, Golden CO
Types of Relationships With DOE National
Laboratories
• Cooperative Research & Development
  Agreement (CRADA)
   – Private sector as a joint research partner with a DOE
     National Laboratory, (share joint IP)
• As a Subcontractor for a National Laboratory
   – Private Sector conducting research to assist a Laboratory
     R&D effort (IP under federal control)
• “Work for Others” Agreement
   – Private Sector using a National Laboratory to undertake
     research solely for its own commercial benefit (IP with
     private sector)
                                    John Herrick                     9
               Chief Counsel, U.S. Department of Energy, Golden CO
Types of Relationships With DOE to Develop/
Demonstrate Applied Technology for H2
• Grants
   – DOE as benign benefactor (10 C.F.R. Part 600)
• Cooperative Agreements
   – DOE as a research partner (10 C.F.R. Part 600)
• Contracts
   – Providing DOE with a needed technology service (48 C.F.R. Part 37)
• Technology Investment Agreements
   – Consortiums as partner with DOE in a new DARPA-like working
     model for commercial development (10 C.F.R. Part 603)
• Loan Guarantees
   – Title 17 of the 2005 Energy Policy Act
   – DOE as a friendly neighborhood lender
   – DOE on the debt side of traditional energy project financing
                                      John Herrick                     10
                 Chief Counsel, U.S. Department of Energy, Golden CO
Information on DOE Funding Opportunities in
Renewable Energy Technology Development
• DOE now provides its Funding Opportunity
  Announcements (FOAs) through grants.gov.
• Need to register in grants.gov in applying under
  DOE FOAs
• General information on DOE’s Hydrogen Programs
  can be found at:
  – http://www.hydrogen.energy.gov/
  – http://www.eere.energy.gov/hydrogenandfuelcells/
• Prof. Herrick’s law course on Renewable Energy &
  Project Finance can be found at:
  – http://www.law.du.edu/herrick/index.htm
                                John Herrick                     11
           Chief Counsel, U.S. Department of Energy, Golden CO

				
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