The proposed legislation is aimed at getting the private sector involved in the already existing hydrogen energy infrastructure we have set up in our state.

This plan is centered around two things - developing a clean alternative fuel and creating jobs for our citizens, Speaker Harrell said. For this to happen, we need to encourage private sector involvement in this field. A small investment here could turn our State into a major leader in an industry that is expected to be over $2.6 trillion dollars in the next few decades. South Carolina has the resources and opportunity to be a major player in the world-wide hydrogen technology market, this legislation will help us get there.

South Carolina has long been working toward a hydrogen energy solution for our state, and for our nation. The combined work of Savannah River Site, the University of South Carolina and their fuel cell research center, and Clemson University and International Center for Automotive Research (ICAR) along with South Carolina State University have helped spearhead the movement.

Clemson University President Jim Barker said, Clemson University applauds Speaker Harrell's proposed legislation on hydrogen research.

Through CU-ICAR and other initiatives, Clemson will focus on integration of novel hydrogen technology into automobiles and in developing a hydrogen fueling infrastructure and workforce to support the hydrogen economy of the future.

The energy package includes incentives that will help encourage companies to come to South Carolina. Creates a fund for targeted, high profile investment that will lead to job creation. Encourages the continued collaborative efforts of the University of South Carolina, Clemson University, South Carolina State University, Savannah River Site and the Hydrogen and Fuel Cell Alliance.

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“SOUTH CAROLINA HYDROGEN INFRASTRUCTURE DEVELOPMENT ACT”

Hydrogen and Fuel Cell Technology - What It Is and What It Can Do

Hydrogen and fuel cell technology is a cutting-edge alternative means of generating electrical power.  It promises clean fuel that would benefit our citizens because of its renewable resources, nonpolluting characteristics, nonpetroleum basis, and its potential to limit the country's reliance on foreign sources of oil.  The legislation aims to nurture a hydrogen fuel cell cluster in South Carolina's economy, which has already begun with efforts by the state's research universities to develop our state's knowledge based economy through fuel cell technologies.

South Carolina Hydrogen Infrastructure Development Fund

This bill establishes within the State Treasurer's Office the South Carolina Hydrogen Infrastructure Development Fund.  Revenues of the fund must be distributed in the form of grants to the South Carolina Hydrogen and Fuel Cell Alliance and subgrantees to promote the development of fuel cell technology.  A total of fifteen million dollars in grants may be made from the Fund, and neither grants nor subgrants may be made after June 30, 2012.  The South Carolina Research Authority shall administer and distribute the subgrants; further, the Authority is required to submit an annual report to the Governor and General Assembly concerning the Fund. 

The Fund is authorized to receive donations, grants and any other funding as provided by law, and taxpayers may receive state income tax credits for contributions subject to certain limitations.  The legislation also authorizes the Fund to receive automatic appropriations from the General Fund: seven million dollars for fiscal year 2007-08; five million dollars for fiscal year 2008-09; and three million dollars for fiscal year 2009-10.  Revenues, regardless of source, remaining in the Fund after June 30, 2012, relapse to the General Fund.

Additional Incentives

The legislation requires state agencies to consider purchasing equipment and machinery operated by hydrogen fuel cells.  Additionally, the legislation provides for a sales tax exemption for equipment or machinery operated by or used to distribute hydrogen fuel cells and for equipment and machinery used predominately for research and development of hydrogen fuel cells.

The legislation also requires SCRA to collaborate with the University of South Carolina's Fuel Cell Center of Excellence, Clemson University's International Center of Automotive Excellence, South Carolina State's Clyburn Transportation Center, the Savannah River National Laboratory, the Center for Hydrogen Research, the Medical University of South Carolina, and the Columbia Innovation Center to establish guidelines for the application and approval of hydrogen subgrants.