II 111th CONGRESS 1st Session S. 1091 IN THE SENATE OF THE UNITED STATES May 20, 2009 Mr. Wyden introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to provide for an energy investment credit for energy storage property connected to the grid, and for other purposes.

1.

Short title

This Act may be cited as the Storage Technology of Renewable and Green Energy Act of 2009 or the STORAGE Act of 2009.

2.

Energy investment credit for energy storage property connected to the grid

(a)

20 percent credit allowed

Subparagraph (A) of section 48(a)(2) of the Internal Revenue Code of 1986 is amended— (1)by striking and at the end of subclause (IV) of clause (i), (2)by striking clause (i) in clause (ii) and inserting clause (i) or (ii), (3)by redesignating clause (ii) as clause (iii), and (4)by inserting after clause (i) the following new clause: (ii)20 percent in the case of qualified energy storage property, and . (b)

Qualified energy storage property

Subsection (c) of section 48 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (5)

Qualified energy storage property

(A)

In general

The term qualified energy storage property means property— (i)which is directly connected to the electrical grid, and (ii)which is designed to receive electrical energy, to store such energy, and to convert such energy to electricity and deliver such electricity for sale. Such term may include hydroelectric pumped storage and compressed air energy storage, regenerative fuel cells, batteries, superconducting magnetic energy storage, flywheels, thermal, and hydrogen storage, or combination thereof.(B)

Minimum capacity

The term qualified energy storage property shall not include any property unless such property in aggregate— (i)has the ability to store at least 2 megawatt hours of energy, and (ii)has the ability to have an output of 500 kilowatts of electricity for a period of 4 hours. (C)

Electrical grid

The term electrical grid means the system of generators, transmission lines, and distribution facilities which— (i)are under the jurisdiction of the Federal Energy Regulatory Commission or State public utility commissions, or (ii)are owned by— (I)a State or any political subdivision of a State, (II)an electric cooperative that receives financing under the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.) or that sells less than 4,000,000 megawatt hours of electricity per year, or (III)any agency, authority, or instrumentality of any one or more of the entities described in subclause (I) or (II), or any corporation which is wholly owned, directly or indirectly, by any one or more of such entities. . (c)

Effective date

The amendments made by this section shall apply to periods after the date of the enactment of this Act, under rules similar to the rules of section 48(m) of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).

3.

Energy storage property connected to the grid eligible for new clean renewable energy bonds

(a)

In general

Paragraph (1) of section 54C(d) of the Internal Revenue Code of 1986 is amended to read as follows: (1)

Qualified renewable energy facility

The term qualified renewable energy facility means a facility which is— (A)(i)a qualified facility (as determined under section 45(d) without regard to paragraphs (8) and (10) thereof and to any placed in service date), or (ii)a qualified energy storage property (as defined in section 48(c)(5)), and (B)owned by a public power provider, a governmental body, or a cooperative electric company. . (b)

Effective date

The amendment made by this section shall apply to obligations issued after the date of the enactment of this Act.

4.

Energy investment credit for onsite energy storage

(a)

Credit allowed

Clause (i) of section 48(a)(2)(A) of the Internal Revenue Code of 1986, as amended by this Act, is amended— (1)by striking and at the end of subclause (III), (2)by inserting and at the end of subclause (IV), and (3)by adding at the end the following new subclause: (V)qualified onsite energy storage property, . (b)

Qualified onsite energy storage property

Subsection (c) of section 48 of the Internal Revenue Code of 1986, as amended by this Act, is amended by adding at the end the following new paragraph: (6)

Qualified onsite energy storage property

(A)

In general

The term qualified onsite energy storage property means property which— (i)provides supplemental energy to reduce peak energy requirements primarily on the same site where the storage is located, or (ii)is designed and used primarily to receive and store intermittent renewable energy generated onsite and to deliver such energy primarily for onsite consumption. Such term may include property used to charge plug-in and hybrid electric vehicles if such vehicles are equipped with smart grid services which control time-of-day charging and discharging of such vehicles. Such term shall not include any property for which any other credit is allowed under this chapter.(B)

Minimum capacity

The term qualified onsite energy storage property shall not include any property unless such property in aggregate— (i)has the ability to store the energy equivalent of at least 20 kilowatt hours of energy, and (ii)has the ability to have an output of the energy equivalent of 5 kilowatts of electricity for a period of 4 hours. . (c)

Effective date

The amendments made by this section shall apply to periods after the date of the enactment of this Act, under rules similar to the rules of section 48(m) of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).

5.

Credit for residential energy storage equipment

(a)

Credit allowed

Subsection (a) of section 25C of the Internal Revenue Code of 1986 is amended— (1)by striking and at the end of paragraph (1), (2)by redesignating paragraph (2) as paragraph (3), and (3)by inserting after paragraph (1) the following new paragraph: (2)30 percent of the amount paid or incurred by the taxpayer for qualified residential energy storage equipment installed during such taxable year, and . (b)

Qualified residential energy storage equipment

(1)

In general

Section 25C of the Internal Revenue Code of 1986 is amended— (A)by redesignating subsections (e), (f), and (g) as subsections (f), (g), and (h), respectively, and (B)by inserting after subsection (d) the following new subsection: (d)

Qualified residential energy storage equipment

For purposes of this section, the term qualified residential energy storage equipment means property— (1)which is installed in or on a dwelling unit located in the United States and owned and used by the taxpayer as the taxpayer's principal residence (within the meaning of section 121), or on property owned by the taxpayer on which such a dwelling unit is located, and (2)which— (A)provides supplemental energy to reduce peak energy requirements primarily on the same site where the storage is located, or (B)is designed and used primarily to receive and store intermittent renewable energy generated onsite and to deliver such energy primarily for onsite consumption. Such term may include property used to charge plug-in and hybrid electric vehicles if such vehicles are equipped with smart grid services which control time-of-day charging and discharging of such vehicles. Such term shall not include any property for which any other credit is allowed under this chapter.. (2)

Conforming amendment

Section 1016(a)(33) of such Code is amended by striking section 25C(f) and inserting section 25C(g). (c)

Effective date

The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.