[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5121 Introduced in House (IH)]
<DOC>
114th CONGRESS
2d Session
H. R. 5121
To require the Secretary of Energy to carry out an energy storage
research program, loan program, and technical assistance and grant
program, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 28, 2016
Mr. Takano (for himself, Mr. Honda, Mr. Grijalva, Mr. Takai, Ms.
Kaptur, and Mr. Fattah) introduced the following bill; which was
referred to the Committee on Energy and Commerce, and in addition to
the Committee on Science, Space, and Technology, for a period to be
subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee
concerned
_______________________________________________________________________
A BILL
To require the Secretary of Energy to carry out an energy storage
research program, loan program, and technical assistance and grant
program, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Advancing Grid Storage Act of
2016''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Energy storage system.--The term ``energy storage
system'' means a system or strategy that improves the ability
to shift the dispatch of energy in time, across multiple
timescales.
(2) Islanding.--The term ``islanding'' means a distributed
generator or energy storage device continuing to power a
location in the absence of electric power from the primary
source.
(3) Loan.--The term ``loan'' has the meaning given the term
``direct loan'' in section 502 of the Federal Credit Reform Act
of 1990 (2 U.S.C. 661a).
(4) Microgrid.--The term ``microgrid'' means an integrated
energy system consisting of interconnected loads and
distributed energy resources, including generators and energy
storage devices, within clearly defined electrical boundaries
that--
(A) acts as a single controllable entity with
respect to the grid; and
(B) can connect and disconnect from the grid to
operate in both grid-connected mode and island mode.
(5) Renewable energy source.--The term ``renewable energy
source'' includes--
(A) biomass;
(B) geothermal energy;
(C) hydropower;
(D) landfill gas;
(E) municipal solid waste;
(F) ocean (including tidal, wave, current, and
thermal) energy;
(G) organic waste;
(H) photosynthetic processes;
(I) photovoltaic energy;
(J) solar energy; and
(K) wind.
(6) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
SEC. 3. ENERGY STORAGE RESEARCH PROGRAM.
(a) In General.--The Secretary shall carry out, within the Office
of Electricity Delivery and Energy Reliability, a program for the
research of energy storage systems.
(b) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $50,000,000.
SEC. 4. ENERGY STORAGE SYSTEM DEMONSTRATION AND DEPLOYMENT LOAN
PROGRAM.
(a) Loan Program.--
(1) In general.--Subject to the provisions of this
subsection and subsections (b) and (c), the Secretary shall
carry out a program to provide to eligible entities--
(A) loans for the demonstration and deployment of
energy storage systems in a specific project; and
(B) loans to provide funding for programs to
finance the demonstration and deployment of multiple
energy storage systems through a revolving loan fund,
credit enhancement program, or other financial
assistance program.
(2) Eligibility.--Entities eligible to receive a loan under
paragraph (1) include--
(A) a State, territory, or possession of the United
States;
(B) a State energy office;
(C) a tribal organization (as defined in section 4
of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450b));
(D) an institution of higher education (as defined
in section 101 of the Higher Education Act of 1965 (20
U.S.C. 1001)); and
(E) an electric utility, including--
(i) a rural electric cooperative;
(ii) a municipally owned electric utility;
and
(iii) an investor-owned utility.
(3) Selection requirements.--In selecting eligible entities
to receive a loan under this section, the Secretary shall, to
the maximum extent practicable, ensure--
(A) regional diversity among eligible entities that
receive the loans, including participation by rural
States and small States; and
(B) that specific projects selected for loans--
(i) expand on the existing technology
demonstration and deployment programs of the
Department of Energy; and
(ii) are designed to achieve 1 or more of
the objectives described in paragraph (4).
(4) Objectives.--Each demonstration and deployment project
selected for a loan under paragraph (1) shall include 1 or more
of the following objectives:
(A) With respect to energy storage systems, the
improvement of--
(i) the feasibility of microgrids or
islanding; or
(ii) the transmission and distribution
capability to improve reliability in rural
areas, including high energy cost rural areas.
(B) Use of energy storage systems to improve the
security of emergency response infrastructure.
(C) Integration of energy storage systems with a
renewable energy resource production source, at the
source or away from the source.
(D) Use of energy storage systems to provide
ancillary services for grid management.
(E) Advancement of power conversion systems to make
the systems smarter, more efficient, able to
communicate with other inverters, and able to control
voltage.
(F) Use of energy storage systems to optimize
transmission and distribution operation and power
quality to address overloaded lines and maintenance of
transformers and substations.
(G) Use of energy storage systems for peak load
management of homes, businesses, and the grid,
particularly to offset investments in new grid
capacity.
(H) Use of energy storage system devices to meet
electricity demand during nonpeak generation periods to
make better use of existing grid assets.
(5) Restriction on use of funds.--Any eligible entity that
receives a loan under paragraph (1) may only use the loan to
fund programs relating to the demonstration and deployment of
energy storage systems in households, businesses, and
communities.
(b) Loan Terms and Conditions.--
(1) Terms and conditions.--Notwithstanding any other
provision of law, in providing a loan under this section, the
Secretary shall provide the loan on such terms and conditions
as the Secretary determines, after consultation with the
Secretary of the Treasury, in accordance with this section.
(2) Specific appropriation.--No loan shall be made unless
an appropriation for the full amount of the loan has been
specifically provided for that purpose.
(3) Repayment.--No loan shall be made unless the Secretary
determines that there is reasonable prospect of repayment of
the principal and interest by the borrower of the loan.
(4) Interest rate.--A loan provided under this section
shall bear interest at a fixed rate that is equal or
approximately equal, in the determination of the Secretary, to
the interest rate for Treasury securities of comparable
maturity.
(5) Term.--The term of the loan shall require full
repayment over a period not to exceed the lesser of--
(A) 20 years; or
(B) 90 percent of the projected useful life of the
physical asset to be financed by the loan (as
determined by the Secretary).
(6) Use of payments.--Payments of principal and interest on
the loan shall--
(A) be retained by the Secretary to support energy
research and development activities; and
(B) remain available until expended, subject to
such conditions as are contained in annual
appropriations Acts.
(7) No penalty on early repayment.--The Secretary may not
assess any penalty for early repayment of a loan provided under
this section.
(8) Return of unused portion.--In order to receive a loan
under this section, an eligible entity shall agree to return to
the general fund of the Treasury any portion of the loan amount
that is unused by the eligible entity within a reasonable
period of time after the date of the disbursement of the loan,
as determined by the Secretary.
(9) Comparable wage rates.--Each laborer and mechanic
employed by a contractor or subcontractor in performance of
construction work financed, in whole or in part, by the loan
shall be paid wages at rates not less than the rates prevailing
on similar construction in the locality as determined by the
Secretary of Labor in accordance with subchapter IV of chapter
31 of title 40, United States Code.
(c) Rules and Procedures; Disbursement of Loans.--
(1) Rules and procedures.--Not later than 180 days after
the date of enactment of this Act, the Secretary shall adopt
rules and procedures for carrying out the loan program under
subsection (a).
(2) Disbursement of loans.--Not later than 1 year after the
date on which the rules and procedures under paragraph (1) are
established, the Secretary shall disburse the initial loans
provided under this section.
(d) Reports.--Not later than 2 years after the date of receipt of
the loan and annually thereafter for the term of the loan, an eligible
entity that receives a loan under this section shall submit to the
Secretary a report describing the performance of each program and
activity carried out using the loan, including itemized loan
performance data.
(e) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section such sums as are necessary.
SEC. 5. TECHNICAL ASSISTANCE AND GRANT PROGRAM.
(a) Program.--
(1) In general.--The Secretary, in consultation with the
Assistant Secretary for Electricity Delivery and Energy
Reliability, shall carry out a technical assistance and grant
program (referred to in this section as the ``program'')--
(A) to disseminate information and provide
technical assistance directly to eligible entities so
the eligible entities can identify, evaluate, plan, and
design energy storage systems; and
(B) to make grants to eligible entities so that the
eligible entities may contract to obtain technical
assistance to identify, evaluate, plan, and design
energy storage systems.
(2) Technical assistance.--The technical assistance
described in paragraph (1) shall include assistance with 1 or
more of the following activities relating to energy storage
systems:
(A) Identification of opportunities to use energy
storage systems.
(B) Assessment of technical and economic
characteristics.
(C) Utility interconnection.
(D) Permitting and siting issues.
(E) Business planning and financial analysis.
(F) Engineering design.
(3) Information dissemination.--The information
disseminated under paragraph (1)(A) shall include--
(A) information relating to the topics described in
paragraph (2), including case studies of successful
examples;
(B) computer software for assessment, design, and
operation and maintenance of energy storage systems;
and
(C) public databases that track the operation and
deployment of existing and planned energy storage
systems.
(b) Eligibility.--Any nonprofit or for-profit entity shall be
eligible to receive technical assistance and grants under the program.
(c) Applications.--
(1) In general.--An eligible entity desiring technical
assistance or grants under the program shall submit to the
Secretary an application at such time, in such manner, and
containing such information as the Secretary may require.
(2) Application process.--The Secretary shall seek
applications for technical assistance and grants under the
program--
(A) on a competitive basis; and
(B) on a periodic basis, but not less frequently
than once every 12 months.
(3) Priorities.--In selecting eligible entities for
technical assistance and grants under the program, the
Secretary shall give priority to eligible entities with
projects that have the greatest potential for--
(A) facilitating the use of renewable energy
resources;
(B) strengthening the reliability and resiliency of
energy infrastructure to the impact of extreme weather
events, power grid failures, and interruptions in
supply of fossil fuels;
(C) improving the feasibility of microgrids or
islanding, particularly in rural areas, including high
energy cost rural areas;
(D) minimizing environmental impact, including
regulated air pollutants and greenhouse gas emissions;
and
(E) maximizing local job creation.
(d) Grants.--On application by an eligible entity, the Secretary
may award grants to the eligible entity to provide funds to cover not
more than--
(1) 100 percent of the costs of the initial assessment to
identify energy storage system opportunities;
(2) 75 percent of the cost of feasibility studies to assess
the potential for the implementation of energy storage systems;
(3) 60 percent of the cost of guidance on overcoming
barriers to the implementation of energy storage systems,
including financial, contracting, siting, and permitting
issues; and
(4) 45 percent of the cost of detailed engineering of
energy storage systems.
(e) Rules and Procedures.--
(1) Rules.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall adopt rules and
procedures for carrying out the program.
(2) Grants.--Not later than 120 days after the date of
issuance of the rules and procedures for the program, the
Secretary shall issue grants under this section.
(f) Reports.--The Secretary shall submit to Congress and make
available to the public--
(1) not less frequently than once every 2 years, a report
describing the performance of the program under this section,
including a synthesis and analysis of the information provided
in the reports submitted to the Secretary under section 3(c);
and
(2) on termination of the program under this section, an
assessment of the success of, and education provided by, the
measures carried out by eligible entities under the program.
(g) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $250,000,000 for the period of
fiscal years 2017 through 2021, to remain available until expended.
<all>