- TXT
-
PDF
(PDF provides a complete and accurate display of this text.)
Tip
?
Calendar No. 255
116th Congress } { Report
SENATE
1st Session } { 116-135
======================================================================
BETTER ENERGY STORAGE TECHNOLOGY ACT
_______
October 22, 2019.--Ordered to be printed
_______
Ms. Murkowski, from the Committee on Energy and Natural
Resources, submitted the following
R E P O R T
[To accompany S. 1602]
[Including cost estimate of the Congressional Budget Office]
The Committee on Energy and Natural Resources, to which was
referred the bill (S. 1602) to amend the United States Energy
Storage Competitiveness Act of 2007 to establish a research,
development, and demonstration program for grid-scale energy
storage systems, and for other purposes, having considered the
same, reports favorably thereon with an amendment (in the
nature of a substitute) and an amendment to the title and
recommends that the bill, as amended, do pass.
Amendments
The amendments are as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Better Energy Storage Technology
Act'' or the ``BEST Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Department.--The term ``Department'' means the Department
of Energy.
(2) Energy storage system.--The term ``energy storage
system'' means any system, equipment, facility, or technology
that--
(A) is capable of absorbing or converting energy,
storing the energy for a period of time, and
dispatching the energy; and
(B)(i) uses mechanical, electrochemical, thermal,
electrolysis, or other processes to convert and store
electric energy that was generated at an earlier time
for use at a later time; or
(ii) stores energy in an electric, thermal, or
gaseous state for direct use for heating or cooling at
a later time in a manner that avoids the need to use
electricity or other fuel sources at that later time,
such as a grid-enabled water heater.
(3) National laboratory.--The term ``National Laboratory''
has the meaning given the term in section 2 of the Energy
Policy Act of 2005 (42 U.S.C. 15801).
(4) Secretary.--The term ``Secretary'' means the Secretary of
Energy, unless otherwise specified.
SEC. 3. ENERGY STORAGE SYSTEM RESEARCH, DEVELOPMENT, AND DEPLOYMENT
PROGRAM.
(a) Establishment.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall establish a program, to be
known as the ``Energy Storage System Research, Development, and
Deployment Program'' (referred to in this section as the ``program'').
(b) Initial Program Objectives.--The program shall focus on
research, development, and deployment of--
(1) energy storage systems designed to further the
development of technologies--
(A) for large-scale commercial deployment;
(B) for deployment at cost targets established by the
Secretary;
(C) for hourly and subhourly durations required to
provide reliability services to the grid;
(D) for daily durations, which have--
(i) the capacity to discharge energy for a
minimum of 6 hours; and
(ii) a system lifetime of at least 20 years
under regular operation;
(E) for weekly or monthly durations, which have--
(i) the capacity to discharge energy for 10
to 100 hours, at a minimum; and
(ii) a system lifetime of at least 20 years
under regular operation; and
(F) for seasonal durations, which have--
(i) the capability to address seasonal
variations in supply and demand; and
(ii) a system lifetime of at least 20 years
under regular operation;
(2) distributed energy storage technologies and applications,
including building-grid integration;
(3) transportation energy storage technologies and
applications, including vehicle-grid integration;
(4) cost-effective systems and methods for--
(A) the reclamation, recycling, and disposal of
energy storage materials, including lithium, cobalt,
nickel, and graphite; and
(B) the reuse and repurposing of energy storage
system technologies;
(5) advanced control methods for energy storage systems;
(6) pumped hydroelectric energy storage systems to advance--
(A) adoption of innovative technologies, including--
(i) adjustable-speed, ternary, and other new
pumping and generating equipment designs;
(ii) modular systems;
(iii) closed-loop systems, including mines
and quarries; and
(iv) other critical equipment and materials
for pumped hydroelectric energy storage, as
determined by the Secretary; and
(B) reductions of equipment costs, civil works costs,
and construction times for pumped hydroelectric energy
storage projects, with the goal of reducing those costs
by 50 percent;
(7) models and tools to demonstrate the benefits of energy
storage to--
(A) power and water supply systems;
(B) electric generation portfolio optimization; and
(C) expanded deployment of other renewable energy
technologies, including in hybrid energy storage
systems; and
(8) energy storage use cases from individual and combination
technology applications, including value from various-use cases
and energy storage services.
(c) Testing and Validation.--In coordination with 1 or more
National Laboratories, the Secretary shall accelerate the development,
standardized testing, and validation of energy storage systems under
the program by developing testing and evaluation methodologies for--
(1) storage technologies, controls, and power electronics for
energy storage systems under a variety of operating conditions;
(2) standardized and grid performance testing for energy
storage systems, materials, and technologies during each stage
of development, beginning with the research stage and ending
with the deployment stage;
(3) reliability, safety, and durability testing under
standard and evolving duty cycles; and
(4) accelerated life testing protocols to predict estimated
lifetime metrics with accuracy.
(d) Periodic Evaluation of Program Objectives.--Not less frequently
than once every calendar year, the Secretary shall evaluate and, if
necessary, update the program objectives to ensure that the program
continues to advance energy storage systems toward widespread
commercial deployment by lowering the costs and increasing the duration
of energy storage resources.
(e) Energy Storage Strategic Plan.--
(1) In general.--The Secretary shall develop a 10-year
strategic plan for the program, and update the plan, in
accordance with this subsection.
(2) Contents.--The strategic plan developed under paragraph
(1) shall--
(A) be coordinated with and integrated across other
relevant offices in the Department;
(B) to the extent practicable, include metrics that
can be used to evaluate storage technologies;
(C) identify Department programs that--
(i) support the research and development
activities described in subsection (b) and the
demonstration projects under section 4; and
(ii)(I) do not support the activities or
projects described in clause (i); but
(II) are important to the development of
energy storage systems and the mission of the
Department, as determined by the Secretary;
(D) include expected timelines for--
(i) the accomplishment of relevant objectives
under current programs of the Department
relating to energy storage systems; and
(ii) the commencement of any new initiatives
within the Department relating to energy
storage systems to accomplish those objectives;
and
(E) incorporate relevant activities described in the
Grid Modernization Initiative Multi-Year Program Plan.
(3) Submission to congress.--Not later than 180 days after
the date of enactment of this Act, the Secretary shall submit
to the Committee on Energy and Natural Resources of the Senate
and the Committees on Energy and Commerce and Science, Space,
and Technology of the House of Representatives the strategic
plan developed under paragraph (1).
(4) Updates to plan.--The Secretary--
(A) shall annually review the strategic plan
developed under paragraph (1); and
(B) may periodically revise the strategic plan as
appropriate.
(f) Leveraging of Resources.--The program may be led by a specific
office of the Department, but shall be cross-cutting in nature, so that
in carrying out activities under the program, the Secretary (or a
designee of the Secretary charged with leading the program) shall
leverage existing Federal resources, including, at a minimum, the
expertise and resources of--
(1) the Office of Electricity Delivery and Energy
Reliability;
(2) the Office of Energy Efficiency and Renewable Energy,
including the Water Power Technologies Office; and
(3) the Office of Science, including--
(A) the Basic Energy Sciences Program;
(B) the Advanced Scientific Computing Research
Program;
(C) the Biological and Environmental Research
Program; and
(4) the Electricity Storage Research Initiative established
under section 975 of the Energy Policy Act of 2005 (42 U.S.C.
16315).
(g) Protecting Privacy and Security.--In carrying out this section,
the Secretary shall identify, incorporate, and follow best practices
for protecting the privacy of individuals and businesses and the
respective sensitive data of the individuals and businesses, including
by managing privacy risk and implementing the Fair Information Practice
Principles of the Federal Trade Commission for the collection, use,
disclosure, and retention of individual electric consumer information
in accordance with the Office of Management and Budget Circular A-130
(or successor circulars).
SEC. 4. ENERGY STORAGE DEMONSTRATION PROJECTS; PILOT GRANT PROGRAM.
(a) Demonstration Projects.--Not later than September 30, 2023, the
Secretary shall, to the maximum extent practicable, enter into
agreements to carry out not fewer than 5 energy storage system
demonstration projects, including at least 1 energy storage system
demonstration project designed to further the development of
technologies described in subparagraph (E) or (F) of section 3(b)(1).
(b) Energy Storage Pilot Grant Program.--
(1) Definition of eligible entity.--In this subsection, the
term ``eligible entity'' means--
(A) a State energy office (as defined in section
124(a) of the Energy Policy Act of 2005 (42 U.S.C.
15821(a)));
(B) an Indian tribe (as defined in section 4 of the
Native American Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C. 4103);
(C) a tribal organization (as defined in section 3765
of title 38, United States Code);
(D) an institution of higher education (as defined in
section 101 of the Higher Education Act of 1965 (20
U.S.C. 1001));
(E) an electric utility, including--
(i) an electric cooperative;
(ii) a political subdivision of a State, such
as a municipally owned electric utility, or any
agency, authority, corporation, or
instrumentality of a State political
subdivision; and
(iii) an investor-owned utility; and
(F) a private energy storage company that is a small
business concern (within the meaning of section 3 of
the Small Business Act (15 U.S.C. 632)).
(2) Establishment.--The Secretary shall establish a
competitive grant program under which the Secretary shall award
grants to eligible entities to carry out demonstration projects
for pilot energy storage systems.
(3) Selection Requirements.--In selecting eligible entities
to receive a grant under paragraph (2), the Secretary shall, to
the maximum extent practicable--
(A) ensure regional diversity among eligible entities
awarded grants, including ensuring participation of
eligible entities that are rural States and States with
high energy costs;
(B) ensure that grants are awarded for demonstration
projects that--
(i) expand on the existing technology
demonstration programs of the Department;
(ii) are designed to achieve 1 or more of the
objectives described in paragraph (4); and
(iii) inject or withdraw energy from the bulk
power system, electric distribution system,
building energy system, or microgrid (grid-
connected or islanded mode) where the project
is located; and
(C) give consideration to proposals from eligible
entities for securing energy storage through
competitive procurement or contract for service.
(4) Objectives.--Each demonstration project carried out by a
grant awarded under paragraph (2) shall have 1 or more of the
following objectives:
(A) To improve the security of critical
infrastructure and emergency response systems.
(B) To improve the reliability of transmission and
distribution systems, particularly in rural areas,
including high-energy-cost rural areas.
(C) To optimize transmission or distribution system
operation and power quality to defer or avoid costs of
replacing or upgrading electric grid infrastructure,
including transformers and substations.
(D) To supply energy at peak periods of demand on the
electric grid or during periods of significant
variation of electric grid supply.
(E) To reduce peak loads of homes and businesses.
(F) To improve and advance power conversion systems.
(G) To provide ancillary services for grid stability
and management.
(H) To integrate renewable energy resource
production.
(I) To increase the feasibility of microgrids (grid-
connected or islanded mode).
(J) To enable the use of stored energy in forms other
than electricity to support the natural gas system and
other industrial processes.
(K) To integrate fast charging of electric vehicles.
(L) To improve energy efficiency.
(c) Reports.--Not less frequently than once every 2 years for the
duration of the programs under subsections (a) and (b), the Secretary
shall submit to Congress and make publicly available a report
describing the performance of those programs.
(d) No Project Ownership Interest.--The Federal Government shall
not hold any equity or other ownership interest in any energy storage
system that is part of a project under this section unless the holding
is agreed to by each participant of the project.
SEC. 5. LONG DURATION DEMONSTRATION INITIATIVE AND JOINT PROGRAM.
(a) Definitions.--In this section:
(1) Director of arpa-e.--The term ``Director of ARPA-E'' has
the meaning given the term in section 5012(a) of the America
COMPETES Act (42 U.S.C. 16538(a)).
(2) Director of estcp.--The term ``Director of ESTCP'' means
the Secretary of Defense, acting through the Director of the
Environmental Security Technology Certification Program of the
Department of Defense.
(3) Initiative.--The term ``Initiative'' means the
demonstration initiative established under subsection (b).
(4) Joint Program.--The term ``Joint Program'' means the
joint program established under subsection (d).
(5) Secretary.--The term ``Secretary'' means the Secretary of
Energy, acting through the Director of ARPA-E.
(b) Establishment of Initiative.--Not later than 180 days after the
date of enactment of this Act, the Secretary shall establish a
demonstration initiative composed of demonstration projects focused on
the development of long-duration energy storage technologies.
(c) Selection of Projects.--To the maximum extent practicable, in
selecting demonstration projects to participate in the Initiative, the
Secretary shall--
(1) ensure a range of technology types;
(2) ensure regional diversity among projects; and
(3) consider bulk power level, distribution power level,
behind-the-meter, microgrid (grid-connected or islanded mode),
and off-grid applications.
(d) Joint Program.--
(1) Establishment.--As part of the Initiative, the Secretary,
in consultation with the Director of ESTCP, shall establish
within the Department of Energy a joint program to carry out
projects--
(A) to demonstrate promising long-duration energy
storage technologies at different scales; and
(B) to help new, innovative long-duration energy
storage technologies become commercially viable.
(2) Memorandum of understanding.--Not later than 200 days
after the date of enactment of this Act, the Secretary shall
enter into a memorandum of understanding with the Director of
ESTCP to administer the Joint Program.
(3) Infrastructure.--In carrying out the Joint Program, the
Secretary and the Director of ESTCP shall--
(A) use existing test-bed infrastructure at--
(i) Department of Energy facilities; and
(ii) Department of Defense installations; and
(B) develop new infrastructure for identified
projects, if appropriate.
(4) Goals and metrics.--The Secretary and the Director of
ESTCP shall develop goals and metrics for technological
progress under the Joint Program consistent with energy
resilience and energy security policies.
(5) Selection of projects.--
(A) In general.--To the maximum extent practicable,
in selecting projects to participate in the Joint
Program, the Secretary and the Director of ESTCP
shall--
(i) ensure that projects are carried out
under conditions that represent a variety of
environments with different physical conditions
and market constraints; and
(ii) ensure an appropriate balance of--
(I) larger, higher-cost projects; and
(II) smaller, lower-cost projects.
(B) Priority.--In carrying out the Joint Program, the
Secretary and the Director of ESTCP shall give priority to
demonstration projects that--
(i) make available to the public project
information that will accelerate deployment of
long-duration energy storage technologies; and
(ii) will be carried out in the field.
SEC. 6. TECHNICAL AND PLANNING ASSISTANCE PROGRAM.
(a) Definitions.--In this section:
(1) Eligible entity.--The term ``eligible entity'' means--
(A) an electric cooperative;
(B) a political subdivision of a State, such as a
municipally owned electric utility, or any agency,
authority, corporation, or instrumentality of a State
political subdivision;
(C) a not-for-profit entity that is in a partnership
with not less than 6 entities described in subparagraph
(A) or (B); and
(D) an investor-owned utility.
(2) Program.--The term ``program'' means the technical and
planning assistance program established under subsection
(b)(1).
(b) Establishment.--
(1) In general.--The Secretary shall establish a technical
and planning assistance program to assist eligible entities in
identifying, evaluating, planning, designing, and developing
processes to procure energy storage systems.
(2) Assistance and grants.--Under the program, the Secretary
shall--
(A) provide technical and planning assistance,
including disseminating information, directly to
eligible entities; and
(B) award grants to eligible entities to contract to
obtain technical and planning assistance from outside
experts.
(3) Focus.--In carrying out the program, the Secretary shall
focus on energy storage system projects that have the greatest
potential for--
(A) strengthening the reliability and resiliency of
energy infrastructure;
(B) reducing the cost of energy storage systems;
(C) improving the feasibility of microgrids (grid-
connected or islanded mode), particularly in rural
areas, including high energy cost rural areas;
(D) reducing consumer electricity costs; or
(E) maximizing local job creation.
(c) Technical and Planning Assistance.--
(1) In general.--Technical and planning assistance provided
under the program 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) Feasibility studies to assess the potential for
development of new energy storage systems or
improvement of existing energy storage systems.
(C) Assessment of technical and economic
characteristics, including a cost-benefit analysis.
(D) Utility interconnection.
(E) Permitting and siting issues.
(F) Business planning and financial analysis.
(G) Engineering design.
(H) Resource adequacy planning.
(I) Resilience planning and valuation.
(2) Exclusion.--Technical and planning assistance provided
under the program shall not be used to pay any person for
influencing or attempting to influence an officer or employee
of any Federal, State, or local agency, a Member of Congress,
an employee of a Member of Congress, a State or local
legislative body, or an employee of a State or local
legislative body.
(d) Information Dissemination.--The information disseminated under
subsection (b)(2)(A) shall include--
(1) information relating to the topics described in
subsection (c)(1), including case studies of successful
examples;
(2) computational tools or software for assessment, design,
and operation and maintenance of energy storage systems;
(3) public databases that track existing and planned energy
storage systems;
(4) best practices for the utility and grid operator business
processes associated with the topics described in subsection
(c)(1); and
(5) relevant State policies or regulations associated with
the topics described in subsection (c)(1).
(e) Applications.--
(1) In general.--The Secretary shall seek applications for
the program--
(A) on a competitive, merit-reviewed basis; and
(B) on a periodic basis, but not less frequently than
once every 12 months.
(2) Application.--An eligible entity desiring to apply for
the program shall submit to the Secretary an application at
such time, in such manner, and containing such information as
the Secretary may require, including whether the eligible
entity is applying for--
(A) direct technical or planning assistance under
subsection (b)(2)(A); or
(B) a grant under subsection (b)(2)(B).
(3) Priorities.--In selecting eligible entities for technical
and planning assistance under the program, the Secretary shall
give priority to eligible entities described in subparagraphs
(A) and (B) of subsection (a)(1).
(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, including a
synthesis and analysis of any information the Secretary
requires grant recipients to provide to the Secretary as a
condition of receiving a grant; and
(2) on termination of the program, an assessment of the
success of, and education provided by, the measures carried out
by eligible entities under the program.
(g) Cost-Sharing.--Activities under this section shall be subject
to the cost-sharing requirements under section 988 of the Energy Policy
Act of 2005 (42 U.S.C. 16352).
SEC. 7. ENERGY STORAGE MATERIALS RECYCLING PRIZE COMPETITION.
Section 1008 of the Energy Policy Act of 2005 (42 U.S.C. 16396) is
amended by adding at the end the following:
``(g) Energy Storage Materials Recycling Prize Competition.--
``(1) Definition of critical energy storage materials.--In
this subsection, the term `critical energy storage materials'
includes--
``(A) lithium;
``(B) cobalt;
``(C) nickel;
``(D) graphite; and
``(E) any other material determined by the Secretary
to be critical to the continued growing supply of
energy storage resources.
``(2) Prize authority.--
``(A) In general.--As part of the program established
under subsection (a), the Secretary shall establish an
award program, to be known as the `Energy Storage
Materials Recycling Prize Competition' (referred to in
this subsection as the `program'), under which the
Secretary shall carry out prize competitions and make
awards to advance the recycling of critical energy
storage materials.
``(B) Frequency.--To the maximum extent practicable,
the Secretary shall carry out a competition under the
program not less frequently than once every calendar
year.
``(3) Eligibility.--
``(A) In general.--To be eligible to win a prize
under the program, an individual or entity--
``(i) shall have complied with the
requirements of the competition as described in
the announcement for that competition published
in the Federal Register by the Secretary under
paragraph (6);
``(ii) in the case of a private entity, shall
be incorporated in the United States and
maintain a primary place of business in the
United States;
``(iii) in the case of an individual, whether
participating singly or in a group, shall be a
citizen of, or an alien lawfully admitted for
permanent residence in, the United States.
``(B) Exclusions.--The following entities and
individuals shall not be eligible to win a prize under
the program:
``(i) A Federal entity.
``(ii) A Federal employee (including an
employee of a National Laboratory) acting
within the scope of employment.
``(4) Awards.--In carrying out the program, the Secretary
shall award cash prizes, in amounts to be determined by the
Secretary, to each individual or entity selected through a
competitive process to develop advanced methods or technologies
to recycle critical energy storage materials from energy
storage systems.
``(5) Criteria.--
``(A) In general.--The Secretary shall establish
objective, merit-based criteria for awarding the prizes
in each competition carried out under the program.
``(B) Requirements.--The criteria established under
subparagraph (A) shall prioritize advancements in
methods or technologies that present the greatest
potential for large-scale commercial deployment.
``(C) Consultation.--In establishing criteria under
subparagraph (A), the Secretary shall consult with
appropriate members of private industry involved in the
commercial deployment of energy storage systems.
``(6) Advertising and solicitation of competitors.--
``(A) In general.--The Secretary shall announce each
prize competition under the program by publishing a
notice in the Federal Register.
``(B) Requirements.--Each notice published under
subparagraph (A) shall describe the essential elements
of the competition, such as--
``(i) the subject of the competition;
``(ii) the duration of the competition;
``(iii) the eligibility requirements for
participation in the competition;
``(iv) the process for participants to
register for the competition;
``(v) the amount of the prize; and
``(vi) the criteria for awarding the prize.
``(7) Judges.--
``(A) In general.--For each prize competition under
the program, the Secretary shall assemble a panel of
qualified judges to select the winner or winners of the
competition on the basis of the criteria established
under paragraph (5).
``(B) Selection.--The judges for each competition
shall include appropriate members of private industry
involved in the commercial deployment of energy storage
systems.
``(C) Conflicts.--An individual may not serve as a
judge in a prize competition under the program if the
individual, the spouse of the individual, any child of
the individual, or any other member of the household of
the individual--
``(i) has a personal or financial interest
in, or is an employee, officer, director, or
agent of, any entity that is a registered
participant in the prize competition for which
the individual will serve as a judge; or
``(ii) has a familial or financial
relationship with a registered participant in
the prize competition for which the individual
will serve as a judge.
``(8) Report to congress.--Not later than 60 days after the
date on which the first prize is awarded under the program, and
annually thereafter, the Secretary shall submit to Congress a
report that--
``(A) identifies each award recipient;
``(B) describes the advanced methods or technologies
developed by each award recipient; and
``(C) specifies actions being taken by the Department
toward commercial application of all methods or
technologies with respect to which a prize has been
awarded under the program.
``(9) Anti-deficiency act.--The Secretary shall carry out the
program in accordance with section 1341 of title 31, United
States Code (commonly referred to as the `Anti-Deficiency
Act').
``(10) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $10,000,000 for
each of fiscal years 2020 through 2024, to remain available
until expended.''.
SEC. 8. REGULATORY ACTIONS TO ENCOURAGE ENERGY STORAGE DEPLOYMENT.
(a) Definitions.--In this section:
(1) Commission.--The term ``Commission'' means the Federal
Energy Regulatory Commission.
(2) Electric storage resource.--The term ``electric storage
resource'' means a resource capable of receiving electric
energy from the grid and storing that electric energy for later
injection back into the grid.
(b) Regulatory Action.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Commission shall issue a regulation
to identify the eligibility of, and process for, electric
storage resources--
(A) to receive cost recovery through Commission-
regulated rates for the transmission of electric energy
in interstate commerce; and
(B) that receive cost recovery under subparagraph (A)
to receive compensation for other services (such as the
sale of energy, capacity, or ancillary services)
without regard to whether those services are provided
concurrently with the transmission service described in
subparagraph (A).
(2) Prohibition of duplicate recovery.--Any regulation issued
under paragraph (1) shall preclude the receipt of unjust and
unreasonable double recovery for electric storage resources
providing services described in subparagraphs (A) and (B) of
that paragraph.
(c) Electric Storage Resources Technical Conference.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, the Commission shall convene a technical
conference on the potential for electric storage resources to
improve the operation of electric systems.
(2) Requirements.--The technical conference under paragraph
(1) shall--
(A) identify opportunities for further consideration
of electric storage resources in regional and
interregional transmission planning processes within
the jurisdiction of the Commission;
(B) identify all energy, capacity, and ancillary
service products, market designs, or rules that--
(i) are within the jurisdiction of the
Commission; and
(ii) enable and compensate for the use of
electric storage resources that improve the
operation of electric systems;
(C) examine additional products, market designs, or
rules that would enable and compensate for the use of
electric storage resources for improving the operation
of electric systems; and
(D) examine the functional value of electric storage
resources at the transmission and distribution system
interface for purposes of providing electric system
reliability.
SEC. 9. COORDINATION.
To the maximum extent practicable, the Secretary shall coordinate
the activities under this Act (including activities conducted pursuant
to the amendments made by this Act) among the offices and employees of
the Department, other Federal agencies, and other relevant entities--
(1) to ensure appropriate collaboration; and
(2) to avoid unnecessary duplication of those activities.
SEC. 10. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated--
(1) to carry out section 3, $100,000,000 for each of fiscal
years 2020 through 2024, to remain available until expended;
(2) to carry out section 4, $100,000,000 for each of fiscal
years 2020 through 2024, to remain available until expended;
(3) to carry out section 5, $50,000,000 for each of fiscal
years 2020 through 2024, to remain available until expended;
and
(4) to carry out section 6, $20,000,000 for each of fiscal
years 2020 through 2024, to remain available until expended.
Amend the title so as to read:
``A bill to support research, development, and demonstration
programs relating to energy storage systems, and for other purposes.''.
Purpose
The purpose of S. 1602, as ordered reported, is to support
research, development, and demonstration programs relating to
energy storage systems.
Background and Need
Energy storage technologies convert captured electricity
into another form of energy (such as kinetic or chemical) and
later convert that energy back into electricity. These
technologies can take many forms, but three of the most common
are pumped hydro, lithium-ion batteries, and flywheels. New
installations of battery energy storage, particularly lithium-
ion battery systems, have accelerated in recent years and show
increasing promise although technical and deployment challenges
persist.
Energy storage can offer multiple benefits to the electric
grid spanning power generation, transmission, and distribution,
including applications for frequency regulation, spinning
reserve, load leveling, peak shaving, power quality, and
capacity firming. Beyond benefits that directly affect the
traditional grid, energy storage can also provide flexibility
to hybrid energy microgrid systems.
Lithium ion batteries are one of the fastest growing energy
storage markets due to their high energy densities, high power,
near 100 percent efficiency, and low self-discharge. However,
the dominant energy storage technology deployed in the United
States for use in the electric power system remains pumped
hydropower, which comprised more than 94 percent of installed
energy storage capacity as of June 2018.
Recognizing the potential benefits and the increased pace
of deployment of energy storage systems, in February 2018, the
Federal Energy Regulatory Commission (FERC) issued Order No.
841, which requires the nation's energy markets to remove
barriers to market access for energy storage.
Pursuant to multiple laws, including the Energy Policy Act
of 2005 (Public Law 109-58) and the Energy Independence and
Security Act of 2007 (Public Law 110-140), the Department of
Energy (DOE or Department) is authorized to conduct research
and development activities on energy storage technologies. S.
1602, as amended, would encourage further development and
commercialization of energy storage technologies by (1)
establishing a research, development, and deployment program to
advance energy storage technologies; (2) directing the
Secretary of Energy (Secretary) to carry out at least five
demonstration projects as well as a competitive pilot project
grant program; (3) establishing a joint long-term demonstration
initiative with the Secretary of Defense; (4) carrying out a
technical and planning assistance program that prioritizes
rural electric cooperatives and municipal utilities; (5)
establishing an energy storage materials recycling prize
competition; and (6) directing FERC to issue a regulation on
energy storage cost recovery.
Legislative History
S. 1602 was introduced by Senators Collins, Heinrich,
Smith, Gardner, King, McSally, and Coons on May 22, 2019.
Senators Murkowski, Crapo, Stabenow, Hirono, Manchin,
Klobuchar, Hassan, Whitehouse, Reed, Cortez-Masto, Wyden, and
Duckworth are also cosponsors. The Subcommittee on Energy held
a hearing on the bill on July 9, 2019.
S. 1602, as amended, includes language from the following
four measures: S. 1183, the Expanding Access to Sustainable
Energy Act of 2019, which was introduced by Senators Klobuchar
and Moran on April 11, 2019, and cosponsored by Senators
Gardner, Collins, Stabenow and King; S. 1593, the Promoting
Grid Storage Act of 2019, which was introduced by Senators
Smith, Collins, Hirono, Duckworth, Cortez-Masto, Stabenow,
Heinrich, Gardner, and Hassan on May 22, 2019 and cosponsored
by Senator King; S. 1741, the Reducing the Cost of Energy
Storage Act of 2019, which was introduced by Senators Wyden,
Whitehouse, Coons, and Reed on June 5, 2019; and S. 2048, the
Joint Long-Term Storage Act of 2019, which was introduced by
Senators King and McSally on June 27, 2019, and cosponsored by
Senators Gardner and Heinrich. The Subcommittee on Energy held
a hearing on S. 1183, S. 1593, S. 1741, and S. 2048 on July 9,
2019.
During the 115th Congress, Senator Franken introduced
similar legislation to S. 1593, S. 1851, on September 25, 2017,
and the Senate Energy and Natural Resources Committee conducted
a hearing on S. 1851 on December 5, 2017.
Senator Wyden introduced similar legislation to S. 1741, S.
1876, on September 27, 2017. The Senate Energy and Natural
Resources Committee conducted a hearing on S. 1876 on December
5, 2017.
Senator Smith introduced similar legislation to S. 1593, S.
3376, on August 23, 2018, and the Senate Energy and Natural
Resources Committee conducted a hearing on S. 3376 on November
29, 2018.
During the 114th Congress, Senator Franken introduced
similar legislation to S. 1593, S. 1256, on May 22, 2015, and
the Senate Energy and Natural Resources Committee conducted a
hearing on S. 1256 on June 9, 2015.
The Senate Committee on Energy and Natural Resources met in
open business session on September 25, 2019, and ordered S.
1602 favorably reported, as amended.
Committee Recommendation
The Senate Committee on Energy and Natural Resources, in
open business session on September 25, 2019, by a majority
voice vote of a quorum present, recommends that the Senate pass
S. 1602, if amended as described herein. Senator Lee asked to
be recorded as voting no.
Committee Amendments
During its consideration of S. 1602, the Committee adopted
an amendment in the nature of a substitute and an amendment to
the title.
The amendment in the nature of a substitute is a
combination of S. 1602 and select language from four other
bills: S. 1183, the Expanding Access to Sustainable Energy Act
of 2019; S. 1593, the Promoting Grid Storage Act of 2019; S.
1741, the Reducing the Cost of Energy Storage Act of 2019; and
S. 2048, the Joint Long-Term Storage Act of 2019.
Specifically, the amendment expands the research and
development program in S. 1602 to include other energy storage
technologies, and requires that at least one of the five
demonstration projects provided in S. 1602 shall be a long-term
energy storage demonstration. The amendment also retains the
language on testing and validation and strategic planning
contained in S. 1602. In addition, section 4(b) of the
amendment includes the competitive grant pilot language from S.
1593, section 6 of the amendment combines the technical
assistance program language from S. 1593 and S. 1183, and
section 5 of the amendment includes the long-duration
demonstration language from S. 2048. With respect to S. 1741,
the amendment includes language on protecting the privacy of
individuals and businesses participating in the research and
development program authorized in section 3.
The amendment in the nature of a substitute also includes
new language on energy storage materials recycling and
regulatory actions. Specifically, section 7 of the amendment
amends the Energy Policy Act of 2005 to authorize the Secretary
to carry out prize competitions to advance the recycling of
critical energy storage materials. Section 8 of the amendment
directs FERC to issue a regulation to identify the eligibility
of, and process for, energy storage resources to receive cost
recovery for transmission and other services. Section 8 also
directs FERC to convene a technical conference to identify
opportunities for energy storage to be considered in
transmission planning and to be compensated for various market
services.
Section-by-Section Analysis
Section 1. Short title
Section 1 sets forth the short title of the bill.
Sec. 2. Definitions
Section 2 sets forth key definitions.
Sec. 3. Energy storage system research, development, and deployment
program
Section 3(a) directs the Secretary to establish the
``Energy Storage System Research, Development, and Deployment
Program.''
Subsection (b) states that the program shall focus on
energy storage systems designed to further the development of
technologies for the following purposes: large-scale commercial
deployment of energy storage; distributed energy storage;
transportation energy storage; the reclamation, recycling,
repurposing, and disposal energy storage materials; advanced
control methods; pumped hydroelectric energy storage systems;
models and tools to demonstrate the benefits of energy storage
technologies; and energy storage use cases.
Subsection (c) directs the Secretary to coordinate with at
least one National Laboratory to accelerate standardized
testing and validation of energy storage systems.
Subsection (d) directs the Secretary to review the program
objectives at least once annually and update as needed to
ensure the program continues to advance energy storage systems
toward widespread commercial deployment.
Subsection (e) requires the Secretary to develop a 10-year
strategic plan for the program to identify Department programs
that support the program activities and are important to the
development of energy storage systems. The strategic plan must
also include expected timelines for accomplishing program
objectives; be submitted to relevant Congressional committees
within 180 days of enactment; and be reviewed annually. The
Secretary is further authorized to periodically revise the
strategic plan.
Subsection (f) provides that the program shall be cross-
cutting and shall leverage the expertise and resources of
various offices of the Department.
Subsection (g) provides that, in carrying out the program,
the Secretary shall follow best practices for protecting the
privacy of individuals and businesses.
Sec. 4. Energy storage demonstration projects; pilot grant program
Section 4(a) directs the Secretary to enter into agreements
to carry out at least five energy storage system demonstration
projects by September 30, 2023. At least one of those projects
must be designed to further the development of long-term or
seasonal energy storage technologies.
Subsection (b)(1) defines key terms for this subsection.
Subsection (b)(2) directs the Secretary to establish a
competitive grant program for the pilot energy storage systems
demonstration projects. State energy offices, tribes,
institutions of higher education, electric utilities, and
private energy storage companies that are small business
concerns are eligible to participate in such program.
Subsection (b)(3) specifies the selection requirements the
Secretary must consider in awarding grants, including ensuring
regional diversity among awardees and that the grants are
provided to projects in diverse regions and the grants further
the objectives of the energy storage research, development, and
deployment program established in section 3.
Subsection(b)(4) requires each project carried out by a
grant to fulfill at least one of the specified objectives,
including improving grid reliability and security, supplying
peak power, integrating renewables, and improving the
feasibility of microgrids.
Subsection (c) requires the Secretary to submit to Congress
and make publicly available a report describing the performance
of the demonstration and pilot grant programs at least once
every two years.
Subsection (d) provides that the Federal government shall
not hold any ownership interest in any energy storage a system
that is a part of a demonstration or pilot project under this
section.
Sec. 5. Long-duration demonstration initiative and joint program
Section 5(a) defines key terms for this section. In this
section, the term ``Secretary'' means the Secretary of Energy,
acting through the Director of ARPA-E.
Subsection (b) requires the Secretary to establish a
demonstration initiative (Initiative) composed of demonstration
projects focused on the development of long-duration energy
storage technologies within 180 days of enactment.
Subsection (c) provides that, in selecting demonstration
projects under the Initiative, the Secretary shall ensure a
range of technology types, ensure regional diversity, and
consider a variety of storage applications.
Subsection (d)(1) requires the Secretary to consult with
the Director of the Environmental Security Technology
Certification Program (ESTCP) of the Department of Defense to
establish within the Department of Energy a joint program to
carry out projects to demonstrate long-duration energy storage
technologies and to help such technologies become commercially
viable.
Subsection (d)(2) directs to Secretary to enter into a
memorandum of understanding with the ESTCP Director to
administer the joint program within 200 days of enactment.
Subsection (d)(3) specifies that in carrying out the joint
program, the Secretary and the ESTCP Director shall use
existing test-bed infrastructure and, if appropriate, develop
new infrastructure.
Subsection (d)(4) directs the Secretary and the ESTCP
Director to develop goals and metrics for the joint program.
Subsection (d)(5) directs the Secretary and ESTCP Director,
in selecting projects for the joint program, to ensure projects
are carried out with a variety of environments and an
appropriate balance of larger, more expensive projects and
smaller, less expensive projects. This subsection further
specifies that priority is to be given to demonstration
projects that make public project information available that
will accelerate deployment of long-duration energy storage
technologies and will be carried out in the field.
Sec. 6. Technical and planning assistance program
Section 6 (a) defines key terms for this section.
Subsection (b) directs the Secretary to establish a
technical and planning assistance program to assist eligible
entities in identifying, evaluating, planning, designing, and
developing processes to procure energy storage systems. In
carrying out the program, the Secretary shall provide technical
and planning assistance directly to eligible entities and via
grant awards that allow eligible entities to contract for
technical and planning assistance. This subsection also request
the Secretary to focus such assistance on projects that have
the greatest potential for strengthening grid reliability,
reducing the cost of energy storage systems, and reducing
consumer electricity costs, among other goals.
Subsection (c) states that technical and planning
assistance under the program shall include assistance with
identifying opportunities for energy storage systems, assessing
technical and economic characteristics of energy storage
systems, permitting and sitting issues, and other activities.
This subsection further excludes the use of technical and
planning assistance to pay for Federal, State, or local
lobbying efforts.
Subsection (d) provides that information disseminated under
the program shall include case studies and successful examples
of energy storage projects, best practices, relevant state
policies and regulations, and other information.
Subsection (e) provides that applications for technical and
planning assistance shall be granted by the Secretary on a
competitive, merit-reviewed basis, and shall be sought at least
once every 12 months. The subsection also states the Secretary
shall give electric cooperatives and municipal utilities
priority for technical and planning assistance under the
program.
Subsection (f) requires the Secretary to submit to Congress
and make available to the public a report describing the
performance of the program at least once every two years.
Subsection (g) provides that activities under the program
shall be subject to the cost-sharing requirements under section
988 of the Energy Policy Act of 2005 (42 U.S.C. 16352).
Sec. 7. Energy storage materials recycling prize competition
Section 7 amends section 1008 of the Energy Policy Act of
2005 (42 U.S.C. 16396) to establish the Energy Storage
Materials Recycling Prize Competition as the new subsection
(g).
The new subsection (g)(1) defines critical energy storage
materials to include lithium, cobalt, nickel, graphite, and any
other material determined by the Secretary to be critical to
the continued growing supply of energy storage resources.
The new subsection (g)(2) directs the Secretary to
establish the Energy Storage Materials Recycling Prize
competition award program to carry out prize competitions and
make awards to advance the recycling of critical energy storage
materials at least once every calendar year.
The new subsection (g)(3) sets forth eligibility
requirements to receive prizes under the competition and
specifically excludes a Federal entity or a Federal employee
from being eligible.
The new subsection (g)(4) states that the Secretary shall
award cash prizes to each individual or entity selected through
a competitive process to develop advanced methods or
technologies to recycle critical energy storage materials from
energy storage systems.
The new subsection (g)(5) requires the Secretary to
establish merit-based criteria to award prizes under the
competitions, and the criteria must prioritize advancements in
methods or technologies that present the greatest potential for
large-scale commercial deployment.
The new subsection (g)(6) states that the Secretary shall
announce each prize competition by public notice in the Federal
Register, and such notice shall describe the essential elements
of the competitions.
The new subsection (g)(7) directs the Secretary to assemble
a panel of qualified judges to select the competition winners.
The panel of judges shall include appropriate members of
private industry involved in the commercial deployment of
energy storage systems. The subsection also states that no
individual may not serve as a judge if they have a personal
interest in any participant in the competitions.
The new subsection (g)(8) requires the Secretary to submit
an annual report to Congress identifying award recipients, the
technologies developed by such recipients, and other
information.
The new subsection (g)(9) requires the Secretary to comply
with the Anti-Deficiency Act (31 U.S.C. 1341) when carrying out
the program.
The new subsection (g)(10) authorizes to be appropriated
for the program $10,000,000 for each of fiscal years (FYs) 2020
through 2024, to remain available until expended.
Sec. 8. Regulatory actions to encourage energy storage development
Section 8 (a) defines key terms for this section.
Subsection (b) directs FERC to issue a regulation to
identify the eligibility of, and process for, electric storage
resources to receive cost recovery through FERC-regulated rates
for transmission service and the sale of energy, capacity, or
ancillary services. This subsection also prohibits duplicate
recovery for electric storage resources.
Subsection (c) directs FERC to convene a technical
conference within 180 days of enactment on the potential for
electric storage resources to improve the operation of electric
systems.
Sec. 9. Coordination
Section 9 directs the Secretary to coordinate the
activities under this Act among the offices and employees of
the Department, other Federal agencies, and other relevant
entities.
Sec. 10. Authorization of appropriations
Section 10 sets forth the authorization amounts under the
Act. Section 3 is authorized at $100 million for each of FYs
2020 through 2024. Section 4 is authorized at $100 million for
each of FYs 2020 through 2024. Section 5 is authorized at $50
million for each of FYs 2020 through 2024. Section 6 is
authorized at $20 million for each of FYs 2020 through 2024.
The total authorization for all programs and activities under
the Act is $1.4 billion over a five year period.
Cost and Budgetary Considerations
The following estimate of the costs of this measure has
been provided by the Congressional Budget Office:
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
S. 1602 would require the Department of Energy (DOE) to
establish a research, development, and deployment program for
energy storage systems. The bill would authorize the
appropriation of $280 million annually over the 2020-2024
period for those purposes.
Under S. 1602, DOE would:
Enter into agreements to carry out
demonstration projects for energy storage systems;
Establish a competitive grant program to
help state governments, tribal governments,
institutions of higher education, or utilities carry
out demonstration projects for energy storage systems;
Establish a joint program with the
Department of Defense aimed at improving the
performance of energy storage technologies designed for
extended operations;
Provide technical, financial, and planning
assistance to help certain electric cooperatives,
nonprofit organizations, and utilities procure energy
storage systems; and
Award competitive prizes for advancing the
recycling of critical energy storage materials such as
lithium, cobalt, nickel, and graphite.
Based on historical rates of spending for similar
activities, and assuming appropriation of the specified
amounts, CBO estimates that implementing S. 1602 would cost
$995 million over the 2020 2024 period and $405 million after
2024. The costs of the legislation (detailed in Table 1) fall
within budget function 270 (energy).
TABLE 1.--ESTIMATED INCREASES IN SPENDING SUBJECT TO APPROPRIATION UNDER S. 1602
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, millions of dollars--
-------------------------------------------------------------------------------------------
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2020-2024 2020-2029
--------------------------------------------------------------------------------------------------------------------------------------------------------
Authorization............................................... 280 280 280 280 280 0 0 0 0 0 1,400 1,400
Estimated Outlays........................................... 65 168 224 263 275 215 112 56 17 5 995 1,400
--------------------------------------------------------------------------------------------------------------------------------------------------------
In 2019, the Congress appropriated $46 million to DOE's
Office of Electricity for research on energy storage
technologies.
The CBO staff contact for this estimate is Aaron Krupkin.
The estimate was reviewed by H.Samuel Papenfuss, Deputy
Assistant Director for Budget Analysis.
Regulatory Impact Evaluation
In compliance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee makes the following
evaluation of the regulatory impact which would be incurred in
carrying out S. 1602. The bill is not a regulatory measure in
the sense of imposing Government-established standards or
significant economic responsibilities on private individuals
and businesses.
No personal information would be collected in administering
the program. Therefore, there would be no impact on personal
privacy.
Little, if any, additional paperwork would result from the
enactment of S. 1602, as ordered reported.
Congressionally Directed Spending
S. 1602, as ordered reported, does not contain any
congressionally directed spending items, limited tax benefits,
or limited tariff benefits as defined in rule XLIV of the
Standing Rules of the Senate.
Executive Communications
The testimony provided by the Department of the Energy at
the July 9, 2019, hearing on S. 1602, S. 1741, S. 1593, S.
1183, and S. 2048 follows:
Testimony of the Honorable Bruce J. Walker, Assistant Secretary, Office
of Electricity, U.S. Department of Energy
introduction
Chairman Cassidy, Ranking Member Heinrich, and Members of
the Subcommittee, it is an honor and a privilege to serve at
the Department of Energy (DOE or the Department), as Assistant
Secretary for the Office of Electricity. DOE is charged with,
among other important responsibilities, providing our Nation
with premier energy research and development (R&D) activities.
The work being conducted by DOE is setting the course for
various advancements in the energy field and beyond. Issues
like energy storage, improving energy efficiency, creating
breakthroughs in how we extract and utilize our Nation's fossil
fuels, and Artificial Intelligence are just some of the
important areas of DOE research. These are also the topics
being covered at today's hearing.
Thank you for the opportunity to testify today on behalf of
the Department regarding these various pieces of legislation.
The Administration continues to review all eleven of these
bills. Below are some highlights and perspectives regarding the
legislation being discussed today.
energy storage
DOE applauds Congress in recognizing that energy storage is
a technology of national interest and the backbone of a future
resilient energy system. With benefits extending to
transportation, the power grid, and throughout the economy, DOE
has been proactive in developing new tools and technologies to
accelerate energy storage development, such as through the Grid
Modernization Initiative (GMI), the Advanced Energy Storage
Initiative (AESI), and the Grid Storage Launchpad (GSL).
In May of this year, DOE issued its most recent Grid
Modernization Lab Call, with Energy Storage and System
Flexibility as one of the major topic areas. The lab call
placed a particular emphasis on developing the storage
functions that enhance system resilience and flexibility.
The proposed GSL will extend U.S. R&D leadership in energy
storage through validation, collaboration, and acceleration. By
validating new technologies at earlier maturity stages, the GSL
will lower the time and expense of storage chemistry
innovations. Through collaboration with universities and the
commercial sector, the GSL will augment the industry with
enhanced testing protocols and in-operando characterization
capabilities. Finally the GSL will accelerate and de-risk new
technologies by propagating rigorous grid performance
requirements to all stages of storage development, from
benchtop to systems.
DOE established the Mission Need for the GSL at Critical
Decision 0 (CD-0) in November of 2018. We anticipate finalizing
the preferred alternative facility and cost range as part of
CD-1 this summer. The FY 2020 Budget requested funds for design
and construction planning of the GSL.
The FY 2020 Budget also proposes an AESI led by DOE's
Offices of Electricity (OE) and Energy Efficiency and Renewable
Energy (EERE), in conjunction with the Offices of Fossil Energy
(FE) and Nuclear Energy (NE). AESI will provide a platform to
coordinate R&D activities across these programs--and existing
energy storage efforts in the Office of Science (SC) and the
Advanced Research Projects Agency (ARPA-E)--to establish
aggressive, achievable, and measurable goals for cost-
competitive energy storage technologies, services, and
applications. In FY 2020, AESI will establish application-
specific cost and performance metrics to align research
objectives and to coordinate the development of new energy
storage and flexibility technologies.
Finally, OE's Energy Storage Program continues to conduct
research and development to expand storage capabilities and
shared industry knowledge. From performance breakthroughs in
batteries based on earth-abundant materials to evaluation tools
and workshops for state regulators, OE is at the forefront in
helping communities realize the benefits of energy storage.
Last month, Chairman Murkowski visited one of our most
recent projects, a megawatt-scale battery designed for load
following and frequency regulation, located at Cordova
Electricity Co-operative in Alaska. In FY 2020 and beyond, OE
will continue work that lowers cell and system costs; reduces
critical element usage; increases performance; and elevates
safety of grid-connected energy storage systems. In general,
all of these bills would build on the successes underway with
energy storage technologies at DOE.
To focus any new program's efforts on the highest-impact
breakthrough technologies, we recommend replacing the term
``energy storage system'' with the term ``electrical energy
storage system'' to refer to bidirectional electrical energy
storage systems that have capability to both absorb electric
energy and inject the stored energy back into the grid and
introducing the term ``flexible energy resource'' for other
technologies that can shift energy demand in time and provide
other services to the grid.
S. 1602--Better Energy Storage Technology (BEST) Act
This bill requires the Secretary to establish a ``research,
development, and demonstration program of grid-scale energy
storage systems''' within OE.
The new R&D activities would be focused on cost-effective
energy storage systems with specific performance
characteristics that would be applicable to daily, weekly, or
seasonal cycling.
The bill would also direct the Secretary to establish
technology-neutral cost targets, taking into account
electricity market prices and the goal of being cost-
competitive in specific markets for electric grid products and
services.
Finally, the bill would direct the Secretary to
``accelerate the standardized testing and validation of grid-
scale energy storage systems''' in collaboration with our
National Laboratories.
DOE agrees with the bill in recognizing that energy storage
is a cross-cutting activity. Many of these activities, such as
establishing market-aware, cost-competitive, and technology-
neutral cost targets, are currently underway as part of the
AESI, which includes activities in OE and across multiple
programs in EERE. The Office of Science also supports extensive
battery R&D efforts specifically through the Joint Center for
Energy Storage Research. Providing resources and a formal
structure for these activities will help the Department
accelerate storage technology development and
commercialization.
S. 1741--Reducing the Cost of Energy Storage Act of 2019
This bill requires the Secretary of Energy (Secretary) to
``establish a cross-cutting national program within the
Department of Energy to advance energy storage deployment.''
The goals of the new program will include considerations of
lifecycle management, cost-competitiveness, innovation, use
cases, market barrier reductions, safety, deployment pathways,
analytical assistance, manufacturing leadership, and supply
chain risks.
The program would also establish technology cost targets
differentiated by technology class, such as electrochemical,
pumped hydro, mechanical, or thermal.
DOE agrees with the bill in recognizing that energy storage
is a cross-cutting activity.
The program should have the flexibility to establish cost
targets by application (i.e., seasonal storage or peak
shifting) rather than by technology. An application-centric
approach would help stakeholders evaluate storage benefits and
accelerate the path toward commercialization.
S. 1593--Promoting Grid Storage Act of 2019
This bill requires the Secretary to establish a ``cross-
cutting national program . . . for the research of energy
storage systems, components, and materials.'' The bill would
also require a ``technical assistance and grant program'' to
provide technical assistance and grants to facilitate energy
storage adoption.
DOE agrees with and recognizes the need to provide
analytical technical assistance, especially for state, local,
and other relevant stakeholders as they seek to understand the
benefits of energy storage systems.
S. 1183--Expanding Access to Sustainable Energy Act of 2019
DOE has provided support for state and local governments to
integrate renewable energy and utilize new applications such as
cybersecurity and smart grid technologies. The Expanding Access
to Sustainable Energy Act would establish an energy storage and
microgrid grant and technical assistance program within the
Department, focusing on rural electric cooperatives.
The Department continues to review the legislation and
looks forward to working with Congress as the legislative
process moves forward.
S. 2048 Joint Long Term Storage Act of 2019
The purposes of this legislation are to facilitate the
development of long-duration energy storage technologies,
increase commercial viability of long-duration energy storage
technologies, and increase the energy resilience, energy
security, and national security of the United States through
the use of long-duration energy storage technologies.
This legislation establishes a demonstration initiative to
pilot the potential benefits of long-duration energy storage,
increase commercial viability, recognize the range of grid
services, quantify the value of those services, identify a
range of technology types, and improve integration of energy
storage and the grid.
The bill requires ARPA-E and the Department of Defense's
Environmental Security Technology Certification Program to
establish a joint program to carry out demonstration projects
at scale and help technologies become commercially viable with
priority given to demonstration projects that will be carried
out in the field.
DOE appreciates Congress's attention to energy storage
issues, and continues to evaluate this legislation.
conclusion
Thank you again for the opportunity to testify today on
behalf of DOE. The Department appreciates the ongoing
bipartisan efforts to address our nation's energy challenges,
and looks forward to working with the Committee on the
legislation on today's agenda and any future legislation.
I would be happy to answer your questions.
Changes in Existing Law
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, the changes in existing law made
by S. 1602, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
ENERGY POLICY ACT OF 2005
Public Law 109 58, as Amended
* * * * * * *
TITLE IX--DEPARTMENT OF ENERGY MANAGEMENT
* * * * * * *
SEC. 1008. PRIZES FOR ACHIEVEMENT IN GRAND CHALLENGES OF SCIENCE AND
TECHNOLOGY.
(a) Authority.--The Secretary may carry out a program to
award cash prizes in recognition of breakthrough achievements
in research, development, demonstration, and commercial
application that have the potential for application to the
performance of the mission of the Department.
* * * * * * *
(g) Energy Storage Materials Recycling Prize Competition.--
(1) Definition of critical energy storage
materials.--In this subsection, the term ``critical
energy storage materials''' includes--
(A) lithium;
(B) cobalt;
(C) nickel;
(D) graphite; and
(E) any other material determined by the
Secretary to be critical to the continued
growing supply of energy storage resources.
(2) Prize authority.--
(A) In general.--As part of the program
established under subsection (a), the Secretary
shall establish an award program, to be known
as the ``Energy Storage Materials Recycling
Prize Competition'' (referred to in this
subsection as the ``program''), under which the
Secretary shall carry out prize competitions
and make awards to advance the recycling of
critical energy storage materials.
(B) Frequency.--To the maximum extent
practicable, the Secretary shall carry out a
competition under the program not less
frequently than once every calendar year.
(3) Eligibility.--
(A) In general.--To be eligible to win a
prize under the program, an individual or
entity--
(i) shall have complied with the
requirements of the competition as
described in the announcement for that
competition published in the Federal
Register by the Secretary under
paragraph (6);
(ii) in the case of a private entity,
shall be incorporated in the United
States and maintain a primary place of
business in the United States;
(iii) in the case of an individual,
whether participating singly or in a
group, shall be a citizen of, or an
alien lawfully admitted for permanent
residence in, the United States.
(B) Exclusions.--The following entities and
individuals shall not be eligible to win a
prize under the program:
(i) A Federal entity.
(ii) A Federal employee (including an
employee of a National Laboratory)
acting within the scope of employment.
(4) Awards.--In carrying out the program, the
Secretary shall award cash prizes, in amounts to be
determined by the Secretary, to each individual or
entity selected through a competitive process to
develop advanced methods or technologies to recycle
critical energy storage materials from energy storage
systems.
(5) Criteria.--
(A) In general.--The Secretary shall
establish objective, merit-based criteria for
awarding the prizes in each competition carried
out under the program.
(B) Requirements.--The criteria established
under subparagraph (A) shall prioritize
advancements in methods or technologies that
present the greatest potential for large-scale
commercial deployment.
(C) Consultation.--In establishing criteria
under subparagraph (A), the Secretary shall
consult with appropriate members of private
industry involved in the commercial deployment
of energy storage systems.
(6) Advertising and solicitation of competitors.--
(A) In general.--The Secretary shall announce
each prize competition under the program by
publishing a notice in the Federal Register.
(B) Requirements.--Each notice published
under subparagraph (A) shall describe the
essential elements of the competition, such
as--
(i) the subject of the competition;
(ii) the duration of the competition;
(iii) the eligibility requirements
for participation in the competition;
(iv) the process for participants to
register for the competition;
(v) the amount of the prize; and
(vi) the criteria for awarding the
prize.
(7) Judges.--
(A) In general.--For each prize competition
under the program, the Secretary shall assemble
a panel of qualified judges to select the
winner or winners of the competition on the
basis of the criteria established under
paragraph (5).
(B) Selection.--The judges for each
competition shall include appropriate members
of private industry involved in the commercial
deployment of energy storage systems.
(C) Conflicts.--An individual may not serve
as a judge in a prize competition under the
program if the individual, the spouse of the
individual, any child of the individual, or any
other member of the household of the
individual--
(i) has a personal or financial
interest in, or is an employee,
officer, director, or agent of, any
entity that is a registered participant
in the prize competition for which the
individual will serve as a judge; or
(ii) has a familial or financial
relationship with a registered
participant in the prize competition
for which the individual will serve as
a judge.
(8) Report to congress.--Not later than 60 days after
the date on which the first prize is awarded under the
program, and annually thereafter, the Secretary shall
submit to Congress a report that--
(A) identifies each award recipient;
(B) describes the advanced methods or
technologies developed by each award recipient;
and
(C) specifies actions being taken by the
Department toward commercial application of all
methods or technologies with respect to which a
prize has been awarded under the program.
(9) Anti-deficiency act.--The Secretary shall carry
out the program in accordance with section 1341 of
title 31, United States Code (commonly referred to as
the `Anti-Deficiency Act').
(10) Authorization of appropriations.--There is
authorized to be appropriated to carry out this
subsection $10,000,000 for each of fiscal years 2020
through 2024, to remain available until expended.
* * * * * * *
[all]
