[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 1602 Reported in Senate (RS)]
<DOC>
Calendar No. 255
116th CONGRESS
1st Session
S. 1602
[Report No. 116-135]
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.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 22, 2019
Ms. Collins (for herself, Mr. Heinrich, Ms. Smith, Mr. Gardner, Mr.
Coons, Ms. McSally, Mr. King, Mr. Crapo, Ms. Stabenow, Ms. Hirono, Mr.
Manchin, Ms. Klobuchar, Ms. Hassan, Mr. Whitehouse, Mr. Reed, Ms.
Cortez Masto, Mr. Wyden, Ms. Duckworth, and Ms. Murkowski) introduced
the following bill; which was read twice and referred to the Committee
on Energy and Natural Resources
October 22, 2019
Reported by Ms. Murkowski, with an amendment and an amendment to the
title
[Strike out all after the enacting clause and insert the part printed
in italic]
_______________________________________________________________________
A BILL
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
<DELETED>SECTION 1. SHORT TITLE.</DELETED>
<DELETED> This Act may be cited as the ``Better Energy Storage
Technology Act'' or the ``BEST Act''.</DELETED>
<DELETED>SEC. 2. GRID-SCALE ENERGY STORAGE SYSTEM RESEARCH,
DEVELOPMENT, AND DEMONSTRATION PROGRAM.</DELETED>
<DELETED> (a) In General.--The United States Energy Storage
Competitiveness Act of 2007 (42 U.S.C. 17231) is amended--</DELETED>
<DELETED> (1) by redesignating subsections (l) through (p)
as subsections (m) through (q), respectively; and</DELETED>
<DELETED> (2) by inserting after subsection (k) the
following:</DELETED>
<DELETED> ``(l) Grid-Scale Energy Storage System Research,
Development, and Demonstration Program.--</DELETED>
<DELETED> ``(1) Definitions.--In this subsection:</DELETED>
<DELETED> ``(A) Energy storage system.--The term
`energy storage system' means a system, equipment,
facility, or technology that--</DELETED>
<DELETED> ``(i) is capable of absorbing
energy, storing that energy for a period of
time, and dispatching the stored energy;
and</DELETED>
<DELETED> ``(ii)(I) uses a mechanical,
electrical, chemical, electrochemical, or
thermal process to store energy that--
</DELETED>
<DELETED> ``(aa) was generated at an
earlier time for use at a later time;
or</DELETED>
<DELETED> ``(bb) was generated from
a mechanical process, and would
otherwise be wasted, for delivery at a
later time; or</DELETED>
<DELETED> ``(II) stores thermal energy for
direct use for heating or cooling at a later
time in a manner that avoids the need to use
electricity at that later time, in the same
manner as the storage and use offered by a
grid-enabled water heater.</DELETED>
<DELETED> ``(B) Program.--The term `program' means
the research, development, and demonstration program
established under paragraph (2)(A).</DELETED>
<DELETED> ``(2) Establishment.--</DELETED>
<DELETED> ``(A) In general.--Not later than 180 days
after the date of enactment of the BEST Act, the
Secretary shall establish within the Office of
Electricity of the Department of Energy a research,
development, and demonstration program of grid-scale
energy storage systems, in accordance with this
subsection.</DELETED>
<DELETED> ``(B) Goals, priorities, cost targets.--
The Secretary shall develop goals, priorities, and cost
targets for the program.</DELETED>
<DELETED> ``(3) Strategic plan.--</DELETED>
<DELETED> ``(A) In general.--Not later than 180 days
after the date of enactment of the BEST Act, the
Secretary shall submit to the Committee on Energy and
Natural Resources of the Senate and the Committee on
Science, Space, and Technology of the House of
Representatives a 10-year strategic plan for the
program.</DELETED>
<DELETED> ``(B) Contents.--The strategic plan
submitted under subparagraph (A) shall--</DELETED>
<DELETED> ``(i) identify Department of
Energy programs that--</DELETED>
<DELETED> ``(I) support the research
and development activities described in
paragraph (4) and the demonstration
projects under paragraph (6);
and</DELETED>
<DELETED> ``(II)(aa) do not support
the activities or projects described in
subclause (I); but</DELETED>
<DELETED> ``(bb) are important to
the development of grid-scale energy
storage systems and the mission of the
Office of Electricity of the Department
of Energy, as determined by the
Secretary; and</DELETED>
<DELETED> ``(ii) include expected timelines
for--</DELETED>
<DELETED> ``(I) the accomplishment
of relevant objectives under current
programs of the Department of Energy
relating to grid-scale energy storage
systems; and</DELETED>
<DELETED> ``(II) the commencement of
any new initiatives within the
Department of Energy relating to grid-
scale energy storage systems to
accomplish those objectives.</DELETED>
<DELETED> ``(C) Updates to plan.--Not less
frequently than once every 2 years, the Secretary shall
submit to the Committee on Energy and Natural Resources
of the Senate and the Committee on Science, Space, and
Technology of the House of Representatives an updated
10-year strategic plan, which shall identify, and
provide a justification for, any major deviation from a
previous strategic plan submitted under this
paragraph.</DELETED>
<DELETED> ``(4) Research and development.--In carrying out
the program, the Secretary shall focus research and development
activities on developing cost-effective energy storage systems
that--</DELETED>
<DELETED> ``(A)(i) to balance day-scale needs, are
capable of highly flexible power output for not less
than 6 hours; and</DELETED>
<DELETED> ``(ii) have a lifetime of--</DELETED>
<DELETED> ``(I) not less than 8,000 cycles
of discharge at full output; and</DELETED>
<DELETED> ``(II) 20 years of
operation;</DELETED>
<DELETED> ``(B)(i) can provide power to the electric
grid for durations of approximately 10 to 100 hours;
and</DELETED>
<DELETED> ``(ii) have a lifetime of--</DELETED>
<DELETED> ``(I) not less than 1,500 cycles
of discharge at full output; and</DELETED>
<DELETED> ``(II) 20 years of operation;
and</DELETED>
<DELETED> ``(C) can store energy over several months
and address seasonal scale variations in supply and
demand.</DELETED>
<DELETED> ``(5) Cost targets.--</DELETED>
<DELETED> ``(A) In general.--Cost targets developed
by the Secretary under paragraph (2)(B) shall--
</DELETED>
<DELETED> ``(i) be for energy storage costs
across all types of energy storage technology;
and</DELETED>
<DELETED> ``(ii) include technology costs,
installation costs, balance of services costs,
and soft costs.</DELETED>
<DELETED> ``(B) Target updates; subtargets.--Not
less frequently than once every 5 years during the 10-
year period beginning on the date of enactment of the
BEST Act, the Secretary shall--</DELETED>
<DELETED> ``(i) revise the cost targets
developed under paragraph (2)(B) to be more
stringent, based on--</DELETED>
<DELETED> ``(I) a technology-neutral
approach that considers all types of
energy storage deployment scenarios,
including individual technologies,
technology combination use profiles,
and integrated control system
applications;</DELETED>
<DELETED> ``(II) input from a
variety of stakeholders, including the
stakeholders described in subsection
(i)(3);</DELETED>
<DELETED> ``(III) the inclusion and
use of existing infrastructure;
and</DELETED>
<DELETED> ``(IV) the ability to
optimize the integration of
intermittent renewable energy
generation technology and distributed
energy resources; and</DELETED>
<DELETED> ``(ii) establish cost subtargets
for technologies and applications relating to
the energy storage systems described in
paragraph (4), taking into consideration--
</DELETED>
<DELETED> ``(I) electricity market
prices; and</DELETED>
<DELETED> ``(II) the goal of being
cost-competitive in specific markets
for electric grid products and
services.</DELETED>
<DELETED> ``(6) Demonstration projects.--</DELETED>
<DELETED> ``(A) In general.--Not later than
September 30, 2023, under the program, the Secretary
shall, to the maximum extent practicable, enter into
agreements to carry out not more than 5 grid-scale
energy storage system demonstration projects.</DELETED>
<DELETED> ``(B) Objectives.--Each demonstration
project carried out under subparagraph (A) shall be
designed to further the development of the energy
storage systems described in paragraph (4).</DELETED>
<DELETED> ``(C) No project ownership interest.--The
Federal Government shall not hold any equity or other
ownership interest in any grid-scale energy storage
system that is part of a demonstration project under
this paragraph.</DELETED>
<DELETED> ``(7) Testing and validation.--The Secretary shall
accelerate the standardized testing and validation of grid-
scale energy storage systems under the program through
collaboration with one or more National Laboratories (as
defined in section 2 of the Energy Policy Act of 2005 (42
U.S.C. 15801)), including by developing testing and evaluation
methodologies for--</DELETED>
<DELETED> ``(A) standardized 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, including performance testing with
charge and discharge protocols to evaluate power
capability, energy output, and degradation during
cycling and calendar aging on earliest stage
commercially viable prototypes (commonly less than 100
kilowatts); and</DELETED>
<DELETED> ``(B) accelerated life testing protocols
to predict estimated lifetime metrics with
accuracy.</DELETED>
<DELETED> ``(8) Coordination.--To accelerate the development
of grid-scale energy storage systems under the program, and
pursuant to subsection (n), the Secretary shall coordinate
with--</DELETED>
<DELETED> ``(A) offices within the Department of
Energy conducting energy storage research, such as the
Advanced Research Projects Agency-Energy, the Office of
Science, and the Office of Energy Efficiency and
Renewable Energy;</DELETED>
<DELETED> ``(B) Federal agencies that are carrying
out initiatives to increase energy security or
reliability, such as the Department of Defense, the
National Science Foundation, the Federal Energy
Regulatory Commission, and the Department of Homeland
Security;</DELETED>
<DELETED> ``(C) program offices that aim to increase
domestic manufacturing and production, such as the
Office of Advanced Manufacturing in the Department of
Energy and the National Institute of Standards and
Technology in the Department of Commerce; and</DELETED>
<DELETED> ``(D) members of private industry to
advance the development of commercially viable grid-
scale energy storage systems.''.</DELETED>
<DELETED> (b) Authorization of Appropriations.--The United States
Energy Storage Competitiveness Act of 2007 (42 U.S.C. 17231) is
amended, in subsection (q) (as redesignated by subsection (a)(1))--
</DELETED>
<DELETED> (1) in paragraph (5), by striking ``and'' at the
end;</DELETED>
<DELETED> (2) in paragraph (6), by striking the period at
the end and inserting ``; and''; and</DELETED>
<DELETED> (3) by adding at the end the following:</DELETED>
<DELETED> ``(7) the research, development, and demonstration
program of grid-scale energy storage systems under subsection
(l) $60,000,000 for each of fiscal years 2020 through
2024.''.</DELETED>
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.''.
Calendar No. 255
116th CONGRESS
1st Session
S. 1602
[Report No. 116-135]
_______________________________________________________________________
A BILL
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.
_______________________________________________________________________
October 22, 2019
Reported with an amendment and an amendment to the title