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                                                      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

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TITLE IX--DEPARTMENT OF ENERGY MANAGEMENT

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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.

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    (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.

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