[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5121 Introduced in House (IH)]

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114th CONGRESS
  2d Session
                                H. R. 5121

   To require the Secretary of Energy to carry out an energy storage 
  research program, loan program, and technical assistance and grant 
                    program, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 28, 2016

   Mr. Takano (for himself, Mr. Honda, Mr. Grijalva, Mr. Takai, Ms. 
   Kaptur, and Mr. Fattah) introduced the following bill; which was 
 referred to the Committee on Energy and Commerce, and in addition to 
  the Committee on Science, Space, and Technology, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
   To require the Secretary of Energy to carry out an energy storage 
  research program, loan program, and technical assistance and grant 
                    program, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Advancing Grid Storage Act of 
2016''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Energy storage system.--The term ``energy storage 
        system'' means a system or strategy that improves the ability 
        to shift the dispatch of energy in time, across multiple 
        timescales.
            (2) Islanding.--The term ``islanding'' means a distributed 
        generator or energy storage device continuing to power a 
        location in the absence of electric power from the primary 
        source.
            (3) Loan.--The term ``loan'' has the meaning given the term 
        ``direct loan'' in section 502 of the Federal Credit Reform Act 
        of 1990 (2 U.S.C. 661a).
            (4) Microgrid.--The term ``microgrid'' means an integrated 
        energy system consisting of interconnected loads and 
        distributed energy resources, including generators and energy 
        storage devices, within clearly defined electrical boundaries 
        that--
                    (A) acts as a single controllable entity with 
                respect to the grid; and
                    (B) can connect and disconnect from the grid to 
                operate in both grid-connected mode and island mode.
            (5) Renewable energy source.--The term ``renewable energy 
        source'' includes--
                    (A) biomass;
                    (B) geothermal energy;
                    (C) hydropower;
                    (D) landfill gas;
                    (E) municipal solid waste;
                    (F) ocean (including tidal, wave, current, and 
                thermal) energy;
                    (G) organic waste;
                    (H) photosynthetic processes;
                    (I) photovoltaic energy;
                    (J) solar energy; and
                    (K) wind.
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.

SEC. 3. ENERGY STORAGE RESEARCH PROGRAM.

    (a) In General.--The Secretary shall carry out, within the Office 
of Electricity Delivery and Energy Reliability, a program for the 
research of energy storage systems.
    (b) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $50,000,000.

SEC. 4. ENERGY STORAGE SYSTEM DEMONSTRATION AND DEPLOYMENT LOAN 
              PROGRAM.

    (a) Loan Program.--
            (1) In general.--Subject to the provisions of this 
        subsection and subsections (b) and (c), the Secretary shall 
        carry out a program to provide to eligible entities--
                    (A) loans for the demonstration and deployment of 
                energy storage systems in a specific project; and
                    (B) loans to provide funding for programs to 
                finance the demonstration and deployment of multiple 
                energy storage systems through a revolving loan fund, 
                credit enhancement program, or other financial 
                assistance program.
            (2) Eligibility.--Entities eligible to receive a loan under 
        paragraph (1) include--
                    (A) a State, territory, or possession of the United 
                States;
                    (B) a State energy office;
                    (C) a tribal organization (as defined in section 4 
                of the Indian Self-Determination and Education 
                Assistance Act (25 U.S.C. 450b));
                    (D) an institution of higher education (as defined 
                in section 101 of the Higher Education Act of 1965 (20 
                U.S.C. 1001)); and
                    (E) an electric utility, including--
                            (i) a rural electric cooperative;
                            (ii) a municipally owned electric utility; 
                        and
                            (iii) an investor-owned utility.
            (3) Selection requirements.--In selecting eligible entities 
        to receive a loan under this section, the Secretary shall, to 
        the maximum extent practicable, ensure--
                    (A) regional diversity among eligible entities that 
                receive the loans, including participation by rural 
                States and small States; and
                    (B) that specific projects selected for loans--
                            (i) expand on the existing technology 
                        demonstration and deployment programs of the 
                        Department of Energy; and
                            (ii) are designed to achieve 1 or more of 
                        the objectives described in paragraph (4).
            (4) Objectives.--Each demonstration and deployment project 
        selected for a loan under paragraph (1) shall include 1 or more 
        of the following objectives:
                    (A) With respect to energy storage systems, the 
                improvement of--
                            (i) the feasibility of microgrids or 
                        islanding; or
                            (ii) the transmission and distribution 
                        capability to improve reliability in rural 
                        areas, including high energy cost rural areas.
                    (B) Use of energy storage systems to improve the 
                security of emergency response infrastructure.
                    (C) Integration of energy storage systems with a 
                renewable energy resource production source, at the 
                source or away from the source.
                    (D) Use of energy storage systems to provide 
                ancillary services for grid management.
                    (E) Advancement of power conversion systems to make 
                the systems smarter, more efficient, able to 
                communicate with other inverters, and able to control 
                voltage.
                    (F) Use of energy storage systems to optimize 
                transmission and distribution operation and power 
                quality to address overloaded lines and maintenance of 
                transformers and substations.
                    (G) Use of energy storage systems for peak load 
                management of homes, businesses, and the grid, 
                particularly to offset investments in new grid 
                capacity.
                    (H) Use of energy storage system devices to meet 
                electricity demand during nonpeak generation periods to 
                make better use of existing grid assets.
            (5) Restriction on use of funds.--Any eligible entity that 
        receives a loan under paragraph (1) may only use the loan to 
        fund programs relating to the demonstration and deployment of 
        energy storage systems in households, businesses, and 
        communities.
    (b) Loan Terms and Conditions.--
            (1) Terms and conditions.--Notwithstanding any other 
        provision of law, in providing a loan under this section, the 
        Secretary shall provide the loan on such terms and conditions 
        as the Secretary determines, after consultation with the 
        Secretary of the Treasury, in accordance with this section.
            (2) Specific appropriation.--No loan shall be made unless 
        an appropriation for the full amount of the loan has been 
        specifically provided for that purpose.
            (3) Repayment.--No loan shall be made unless the Secretary 
        determines that there is reasonable prospect of repayment of 
        the principal and interest by the borrower of the loan.
            (4) Interest rate.--A loan provided under this section 
        shall bear interest at a fixed rate that is equal or 
        approximately equal, in the determination of the Secretary, to 
        the interest rate for Treasury securities of comparable 
        maturity.
            (5) Term.--The term of the loan shall require full 
        repayment over a period not to exceed the lesser of--
                    (A) 20 years; or
                    (B) 90 percent of the projected useful life of the 
                physical asset to be financed by the loan (as 
                determined by the Secretary).
            (6) Use of payments.--Payments of principal and interest on 
        the loan shall--
                    (A) be retained by the Secretary to support energy 
                research and development activities; and
                    (B) remain available until expended, subject to 
                such conditions as are contained in annual 
                appropriations Acts.
            (7) No penalty on early repayment.--The Secretary may not 
        assess any penalty for early repayment of a loan provided under 
        this section.
            (8) Return of unused portion.--In order to receive a loan 
        under this section, an eligible entity shall agree to return to 
        the general fund of the Treasury any portion of the loan amount 
        that is unused by the eligible entity within a reasonable 
        period of time after the date of the disbursement of the loan, 
        as determined by the Secretary.
            (9) Comparable wage rates.--Each laborer and mechanic 
        employed by a contractor or subcontractor in performance of 
        construction work financed, in whole or in part, by the loan 
        shall be paid wages at rates not less than the rates prevailing 
        on similar construction in the locality as determined by the 
        Secretary of Labor in accordance with subchapter IV of chapter 
        31 of title 40, United States Code.
    (c) Rules and Procedures; Disbursement of Loans.--
            (1) Rules and procedures.--Not later than 180 days after 
        the date of enactment of this Act, the Secretary shall adopt 
        rules and procedures for carrying out the loan program under 
        subsection (a).
            (2) Disbursement of loans.--Not later than 1 year after the 
        date on which the rules and procedures under paragraph (1) are 
        established, the Secretary shall disburse the initial loans 
        provided under this section.
    (d) Reports.--Not later than 2 years after the date of receipt of 
the loan and annually thereafter for the term of the loan, an eligible 
entity that receives a loan under this section shall submit to the 
Secretary a report describing the performance of each program and 
activity carried out using the loan, including itemized loan 
performance data.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as are necessary.

SEC. 5. TECHNICAL ASSISTANCE AND GRANT PROGRAM.

    (a) Program.--
            (1) In general.--The Secretary, in consultation with the 
        Assistant Secretary for Electricity Delivery and Energy 
        Reliability, shall carry out a technical assistance and grant 
        program (referred to in this section as the ``program'')--
                    (A) to disseminate information and provide 
                technical assistance directly to eligible entities so 
                the eligible entities can identify, evaluate, plan, and 
                design energy storage systems; and
                    (B) to make grants to eligible entities so that the 
                eligible entities may contract to obtain technical 
                assistance to identify, evaluate, plan, and design 
                energy storage systems.
            (2) Technical assistance.--The technical assistance 
        described in paragraph (1) shall include assistance with 1 or 
        more of the following activities relating to energy storage 
        systems:
                    (A) Identification of opportunities to use energy 
                storage systems.
                    (B) Assessment of technical and economic 
                characteristics.
                    (C) Utility interconnection.
                    (D) Permitting and siting issues.
                    (E) Business planning and financial analysis.
                    (F) Engineering design.
            (3) Information dissemination.--The information 
        disseminated under paragraph (1)(A) shall include--
                    (A) information relating to the topics described in 
                paragraph (2), including case studies of successful 
                examples;
                    (B) computer software for assessment, design, and 
                operation and maintenance of energy storage systems; 
                and
                    (C) public databases that track the operation and 
                deployment of existing and planned energy storage 
                systems.
    (b) Eligibility.--Any nonprofit or for-profit entity shall be 
eligible to receive technical assistance and grants under the program.
    (c) Applications.--
            (1) In general.--An eligible entity desiring technical 
        assistance or grants under the program shall submit to the 
        Secretary an application at such time, in such manner, and 
        containing such information as the Secretary may require.
            (2) Application process.--The Secretary shall seek 
        applications for technical assistance and grants under the 
        program--
                    (A) on a competitive basis; and
                    (B) on a periodic basis, but not less frequently 
                than once every 12 months.
            (3) Priorities.--In selecting eligible entities for 
        technical assistance and grants under the program, the 
        Secretary shall give priority to eligible entities with 
        projects that have the greatest potential for--
                    (A) facilitating the use of renewable energy 
                resources;
                    (B) strengthening the reliability and resiliency of 
                energy infrastructure to the impact of extreme weather 
                events, power grid failures, and interruptions in 
                supply of fossil fuels;
                    (C) improving the feasibility of microgrids or 
                islanding, particularly in rural areas, including high 
                energy cost rural areas;
                    (D) minimizing environmental impact, including 
                regulated air pollutants and greenhouse gas emissions; 
                and
                    (E) maximizing local job creation.
    (d) Grants.--On application by an eligible entity, the Secretary 
may award grants to the eligible entity to provide funds to cover not 
more than--
            (1) 100 percent of the costs of the initial assessment to 
        identify energy storage system opportunities;
            (2) 75 percent of the cost of feasibility studies to assess 
        the potential for the implementation of energy storage systems;
            (3) 60 percent of the cost of guidance on overcoming 
        barriers to the implementation of energy storage systems, 
        including financial, contracting, siting, and permitting 
        issues; and
            (4) 45 percent of the cost of detailed engineering of 
        energy storage systems.
    (e) Rules and Procedures.--
            (1) Rules.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary shall adopt rules and 
        procedures for carrying out the program.
            (2) Grants.--Not later than 120 days after the date of 
        issuance of the rules and procedures for the program, the 
        Secretary shall issue grants under this section.
    (f) Reports.--The Secretary shall submit to Congress and make 
available to the public--
            (1) not less frequently than once every 2 years, a report 
        describing the performance of the program under this section, 
        including a synthesis and analysis of the information provided 
        in the reports submitted to the Secretary under section 3(c); 
        and
            (2) on termination of the program under this section, an 
        assessment of the success of, and education provided by, the 
        measures carried out by eligible entities under the program.
    (g) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $250,000,000 for the period of 
fiscal years 2017 through 2021, to remain available until expended.
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