This prize program is part of S. 280, a bill to address global warming. The high powered sponsors include Senators Lieberman, Carper, Clinton, Coleman, Collins, Durbin, Lincoln, McCain, Nelson, Obama and Snow.
This is a fairly significant prize program. It seems as though a single award can exceed $100 million, with the approval of the Secretary of Energy.
110th CONGRESS, 1st Session, S. 280
To provide for a program to accelerate the reduction of greenhouse gas emissions in the United States by establishing a market-driven system of greenhouse gas tradeable allowances, to support the deployment of new climate change-related technologies, and to ensure benefits to consumers from the trading in such allowances, and for other purposes.
SEC. 323. CLIMATE TECHNOLOGY CHALLENGE PROGRAM.
(a) IN GENERAL- The Secretary of Energy, in coordination with the Climate Change Credit Corporation, shall develop and carry out a program in fiscal years 2008 through 2011, to be known as the `Climate Technology Challenge Program’. The Secretary of Energy shall award funding through the program to stimulate innovation in development, demonstration, and deployment of technologies that have the greatest potential for reducing greenhouse gas emissions. The program shall be conducted as follows:
(1) The Secretary of Energy shall post a request for zero or low greenhouse gas energy services or products along with a suggested level of funding for each competition.
(2) The Secretary of Energy shall award the funding to the lowest bidder in each competition who meets all other qualifications in a form of a production incentive to supply–
(A) the requested services for a specified period of time; or
(B) the requested product within a specified period of time.
(b) Funding-
(1) SOURCE- Notwithstanding any other provision of law, or any other provision of this Act, authorizing or appropriating funds to carry out the provisions of this Act, no funds may be made available to carry out any activity under this subtitle except proceeds from the auction authorized by section 162(g) of this Act, subject to the limitation in section 162(g)(3).
(2) OPERATING FUNDS- Beginning with fiscal year 2010, the Climate Change Credit Corporation shall administer the Climate Technology Challenge Program using funds generated under section 202 of this Act.
(c) Program Requirements-
(1) COMPETITIVE PROCESS- Recipients of awards under the program shall be selected through competitions conducted by the Secretary of Energy.
(2) ADVERTISEMENT OF COMPETITIONS- The Secretary of Energy shall widely advertise any competitions conducted under the program.
(3) CATEGORIES OF COMPETITIONS- The Secretary of Energy shall conduct separate competitions in the following areas of energy and fuel production and services:
(A) Advanced coal (including integrated gasification combined cycle) with carbon capture and storage.
(B) Renewable electricity.
(C) Energy efficiency (including transportation).
(D) Advanced technology vehicles.
(E) Transportation fuels.
(F) Carbon sequestration and storage.
(G) Zero and low emissions technologies.
(H) Adaptation technologies.
(I) The Secretary of Energy may also conduct competition for a general category to stimulate additional, unanticipated advances in technology.
(4) Evaluations and criteria for competitions-
(A) PANEL OF EXPERTS- The Secretary of Energy shall establish a separate panel of experts to evaluate proposals submitted under each competition.
(B) COMPETITION CRITERIA- The Secretary of Energy, in consultation with other relevant Federal agency heads, shall set minimum criteria, including performance and safety criteria, for each competition. Proposals shall be evaluated on their ability to reduce, avoid, or sequester greenhouse gas emissions at a given price.
(C) FULL LIFE CYCLE- All proposals within a competition shall compete on full life cycle avoided greenhouse gas emissions (as weighted by global warming potential) per dollar of incentive.
(5) REPORT OF AWARDS- In 2011 and every 5 years thereafter the Secretary of Energy shall issue a report on the awards granted by the program, funding provided, and greenhouse gas emissions avoided or sequestered.
(6) PROGRAM EVALUATION- The Secretary of Energy, in coordination with the National Academies of Science, shall evaluate the continued necessity of the program and future funding needs after fiscal year 2011. The evaluation shall be submitted 3 months before the end of fiscal year 2011 to the Congress and the Climate Change Credit Corporation.
(7) REVIEW AND REVISION BY CORPORATION- The Climate Change Credit Corporation shall review and revise the awards program every 5 years starting in 2011, issuing new guidelines for the next 5 years of Climate Technology Challenge Program by the end of the fiscal year in which the evaluation in paragraph (6) is reported. The Climate Change Credit Corporation shall assess and adjust the categories of competitions as described in paragraph (3) to ensure new developing technologies that reduce, avoid, or sequester greenhouse gases and are in need of financial assistance for further development and deployment are the focus of the awards program.
(d) Budgeting and Awarding of Funds-
(1) AVAILABILITY OF FUNDS- Any funds appropriated to carry out this section shall remain available until expended, but for not more than 4 fiscal years.
(2) DEPOSIT AND WITHDRAWAL OF FUNDS- When an award is offered, the Secretary of Energy shall deposit the total amount of funding made available for that award in the Climate Technology Challenge Trust Fund. If funding expires before an award is granted, the Secretary of Energy shall deposit additional funds in the account to ensure the availability of funding for all awards. If an award competition expires before its goals are met, the Secretary of Energy may redesignate those funds for a new challenge, but any redesignated funds will be considered as newly deposited for the purposes of paragraph (3). All cash awards made under this section shall be paid from that account.
(3) MAXIMUM AWARD- No competition under the program may result in the award of more than $100,000,000 without the approval of the Secretary of Energy.
(4) POST-2012 FUNDING- Funding for the competitions after fiscal year 2012 shall be taken from the Climate Change Credit Corporation.
(e) Registration; Assumption of Risk-
(1) REGISTRATION- Each potential recipient of an award in a competition under the program under this section shall register for the competition.
(2) ASSUMPTION OF RISK- In registering for a competition under paragraph (1), a potential recipient of a prize shall assume any and all risks, and waive claims against the United States Government and its related entities (including contractors and subcontractors at any tier, suppliers, users, customers, cooperating parties, grantees, investigators, and detailees), for any injury, death, damage, or loss of property, revenue, or profits, whether direct, indirect, or consequential, arising from participation in the competition, whether such injury, death, damage, or loss arises through negligence or otherwise, except in the case of willful misconduct.
(f) RELATIONSHIP TO OTHER AUTHORITY- The Secretary of Energy may exercise the authority in this section in conjunction with or in addition to any other authority of the Secretary to acquire, support, or stimulate basic and applied research, technology development, or prototype demonstration projects that promote reduced greenhouse gas emissions.