[House Report 110-402]
[From the U.S. Government Publishing Office]



110th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    110-402

======================================================================



 
           ENERGY STORAGE TECHNOLOGY ADVANCEMENT ACT OF 2007

                                _______
                                

October 22, 2007.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

Mr. Gordon of Tennessee, from the Committee on Science and Technology, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 3776]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Science and Technology, to whom was 
referred the bill (H.R. 3776) to provide for a research, 
development, and demonstration program by the Secretary of 
Energy to support the ability of the United States to remain 
globally competitive in energy storage systems for vehicles, 
stationary applications, and electricity transmission and 
distribution, having considered the same, report favorably 
thereon with amendments and recommend that the bill as amended 
do pass.

                                CONTENTS

                                                                   Page
   I. Amendment.......................................................2
  II. Purpose of the Bill.............................................4
 III. Background and Need for the Legislation.........................4
  IV. Hearing Summary.................................................6
   V. Committee Actions...............................................8
  VI. Summary of Major Provisions of the Bill, as Reported............8
 VII. Section-by-Section Analysis (by Title and Section), as Reported.9
VIII. Committee View..................................................9
  IX.  Cost Estimate.................................................12
   X. Congressional Budget Office Cost Estimate......................12
  XI. Compliance With Public Law 104-4...............................13
 XII. Committee Oversight Findings and Recommendations...............14
XIII. Statement on General Performance Goals and Objectives..........14
 XIV. Constitutional Authority Statement.............................14
  XV.  Federal Advisory Committee Statement..........................14
 XVI.  Congressional Accountability Act..............................14
XVII. Earmark Identification.........................................14
XVIII.Statement on Preemption of State, Local, or Tribal Law.........14

 XIX. Changes in Existing Law Made by the Bill, as Reported..........14
  XX. Committee Recommendations......................................14
 XXI. Proceedings of the Subcommittee Markup.........................15
XXII. Proceedings of the Full Committee Markup.......................29

                              I. AMENDMENT

  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 ``Energy Storage Technology Advancement 
Act of 2007''.

SEC. 2. DEFINITIONS.

  For purposes of this Act--
          (1) the term ``Department'' means the Department of Energy;
          (2) the term ``electric drive vehicle'' means--
                  (A) a vehicle that uses an electric motor for all or 
                part of its motive power, including battery electric, 
                hybrid electric, plug-in hybrid electric, fuel cell, 
                and plug-in fuel cell vehicles, and rail transportation 
                vehicles; or
                  (B) mobile equipment that uses an electric motor to 
                replace an internal combustion engine for all or part 
                of the work of the equipment;
          (3) 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;
          (4) the term ``microgrid'' means an integrated energy system 
        consisting of interconnected loads and distributed energy 
        resources, including generators and energy storage devices, 
        which as an integrated system can operate in parallel with the 
        utility grid or in an intentional islanding mode;
          (5) the term ``Secretary'' means the Secretary of Energy;
          (6) the term ``self-healing grid'' means a grid that is 
        capable of automatically anticipating and responding to power 
        system disturbances, including the isolation of failed sections 
        and components, while optimizing its own performance and 
        service to customers; and
          (7) the term ``spinning reserve services'' means an amount of 
        electric generating capacity in excess of the amount needed to 
        meet peak electric demand.

SEC. 3. BASIC RESEARCH PROGRAM.

  (a) In General.--The Secretary shall conduct a basic research program 
to support the development of energy storage systems for electric drive 
vehicles, stationary applications, and electricity transmission and 
distribution, including research on--
          (1) materials design;
          (2) materials synthesis and characterization;
          (3) electrolytes;
          (4) surface and interface dynamics;
          (5) modeling and simulation; and
          (6) thermal behavior and life degradation mechanisms.
  (b) Funding.--For activities carried out under this section, in 
addition to funding activities at National Laboratories, the Secretary 
shall award funds to, and coordinate activities with, a range of 
stakeholders including the public, private, and academic sectors.
  (c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary for carrying out this section $50,000,000 
for each of the fiscal years 2009 through 2014.

SEC. 4. APPLIED RESEARCH PROGRAM.

  (a) In General.--The Secretary shall conduct an applied research 
program on energy storage systems to support electric drive vehicle, 
stationary application, and electricity transmission and distribution 
technologies, including research on--
          (1) ultracapacitors;
          (2) flywheels;
          (3) batteries and battery systems (including flow batteries);
          (4) compressed air energy systems;
          (5) power conditioning electronics;
          (6) manufacturing technologies for energy storage systems;
          (7) thermal management systems; and
          (8) hydrogen as an energy storage medium.
  (b) Funding.--For activities carried out under this section, in 
addition to funding activities at National Laboratories, the Secretary 
shall award funds to, and coordinate activities with, a range of 
stakeholders including the public, private, and academic sectors.
  (c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary for carrying out this section $80,000,000 
for each of the fiscal years 2009 through 2014.

SEC. 5. ENERGY STORAGE SYSTEMS DEMONSTRATIONS.

  (a) In General.--The Secretary shall carry out a program of new 
demonstrations of advanced energy storage systems. These demonstrations 
shall be regionally diversified and shall expand on the Department's 
existing technology demonstration program. These demonstrations should 
include the participation of a range of stakeholders, such as rural 
electric cooperatives, investor owned utilities, municipally owned 
electric utilities, energy storage systems manufacturers, electric 
drive vehicle manufacturers, the renewable energy production industry, 
State or local energy offices, the fuel cell industry, and 
universities. Each of the demonstrations shall include one or more of 
the following objectives:
          (1) Energy storage to improve the feasibility of ``micro-
        grids'' or ``islanding'', or the transmission and distribution 
        capability to improve reliability in rural areas.
          (2) Integration of an energy storage system with a self-
        healing grid.
          (3) Use of energy storage to improve security to emergency 
        response infrastructure.
          (4) Integration with a renewable energy production source, 
        either at the source or away from the source.
          (5) Use of energy storage to provide ancillary services, such 
        as spinning reserve services, for grid management.
          (6) Advancement of power conversion systems to make them 
        smarter, more efficient, able to communicate with other 
        inverters, and able to control voltage.
          (7) Use of energy storage to optimize transmission and 
        distribution operation and power quality, which could address 
        overloaded lines and maintenance of transformers and 
        substations.
          (8) Use of advanced energy storage for peak load management 
        of homes, businesses, and the grid.
          (9) Use of energy storage devices to fill up nonpeak 
        generation periods for electricity demand to make better use of 
        existing grid assets.
  (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary for carrying out this section $30,000,000 
for each of the fiscal years 2009 through 2014.

SEC. 6. VEHICLE ENERGY STORAGE DEMONSTRATION.

  (a) In General.--The Secretary shall carry out a program of electric 
drive vehicle energy storage technology demonstrations. These 
technology demonstrations shall be conducted through consortia, which 
may include energy storage systems manufacturers and their suppliers, 
electric drive vehicle manufacturers, rural electric cooperatives, 
investor owned utilities, municipal and rural electric utilities, State 
and local governments, metropolitan transportation authorities, and 
universities. The program shall demonstrate one or more of the 
following:
          (1) Novel, high capacity, high efficiency energy storage, 
        charging, and control systems, along with the collection of 
        data on performance characteristics such as battery life, 
        energy storage capacity, and power delivery capacity.
          (2) Advanced onboard energy management systems, and highly 
        efficient battery cooling systems.
          (3) Integration of such systems on a prototype vehicular 
        platform, including with drivetrain systems for passenger, 
        commercial, and nonroad electric drive vehicles.
          (4) New technologies and processes that reduce manufacturing 
        costs.
          (5) Integration of advanced vehicle technologies with 
        electricity distribution system and smart metering technology.
  (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary for carrying out this section $30,000,000 
for each of the fiscal years 2009 through 2014.

SEC. 7. SECONDARY APPLICATIONS AND DISPOSAL OF ELECTRIC DRIVE VEHICLE 
                    BATTERIES.

  (a) In General.--The Secretary shall carry out a program of research, 
development, and demonstration of secondary applications of energy 
storage devices following service in electric drive vehicles, and of 
technologies and processes for final recycling and disposal of these 
devices.
  (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary for carrying out this section $5,000,000 
for each of the fiscal years 2009 through 2014.

SEC. 8. COORDINATION AND NONDUPLICATION.

   To the maximum extent practicable, the Secretary shall coordinate 
activities under this Act with other programs and laboratories of the 
Department and other Federal research programs.

SEC. 9. COST SHARING.

  The Secretary shall carry out the programs under sections 6 and 7 in 
compliance with section 988 (a) through (d) and section 989 of the 
Energy Policy Act of 2005 (42 U.S.C. 16352(a) through (d) and 16353).

  Amend the title so as to read:

    A bill to provide for research, development, and 
demonstration programs in advanced energy storage systems for 
electric drive vehicles, stationary applications, and 
electricity transmission and distribution applications, to 
support the ability of the United States to remain globally 
competitive in this field, and to promote the efficient 
delivery and use of energy.

                          II. PURPOSE OF BILL

    The purpose of H.R. 3776 is to provide for research, 
development, and demonstration programs to accelerate the 
development of advanced energy storage systems for vehicular, 
stationary, and electricity transmission and distribution 
applications, and support the ability of the United States to 
remain globally competitive in this field.

                III. BACKGROUND AND NEED FOR LEGISLATION

Stationary storage technologies

    Today, electricity is generated as it is used, with very 
little being stored for later use. Though this system has 
worked for decades, it is not an efficient means of managing 
the electric power supply. Demand for electric power varies 
greatly throughout the day and throughout the year. Therefore, 
the electricity supply system must be sized to generate and 
transmit enough electricity to meet the maximum anticipated 
demand, or peak demand. The inefficiency of this system becomes 
evident when considering that peak electricity demand for any 
given year could be for a very short period of time--a few days 
or even hours--leaving considerable excess generation capacity. 
Rather than maintain massive generation systems that are 
designed around a short-lived peak demand, energy storage 
technologies would provide a means to stockpile energy for 
later use, and consequently reduce the need to generate more 
power during times of peak electricity demand. Optimally, 
energy storage systems could be charged at night during off-
peak consumption hours, and then discharge the energy during 
times of peak demand. Using existing generation capacity at 
night time to store energy for use during the day is more 
efficient, cheaper, helps to equalize the demand load, and ease 
the strain on the electricity grid.
    The expanded use of energy storage would also help to avoid 
capital intensive upgrades of transmission and distribution 
facilities, as well as reduce the need to run certain 
generation plants that may have higher operating costs and/or 
have a poor emissions profile. Energy storage also can improve 
electricity reliability and energy security by providing an 
alternate source of power during an outage of the primary power 
source.
    Advances in energy storage technologies are often regarded 
as key to increasing the reliability and widespread use of many 
renewable energy technologies. Renewables such as wind and 
solar produce electricity only when wind speeds are high enough 
and sunlight is bright enough to generate power. Strategically 
distributed storage would permit electricity from these 
renewable sources to be stored and used during times of high 
demand or low resource availability.
    Smaller energy storage systems may also be deployed in 
distributed stationary applications, such as residences or 
neighborhoods, in order to supply back-up energy and level the 
load on the electric grid. Advances in smaller energy storage 
systems, specifically batteries, may also allow for entirely 
new vehicles such as plug-in hybrid vehicle technologies to 
enter the mass market.

Energy storage technologies for vehicles

    Concerns about energy independence and climate change have 
caused a renewed interest in enhancing the role of electricity 
in the transportation sector. The benefits of this have been 
seen to some degree in the rise in popularity of Hybrid 
Electric Vehicles (HEV) because of their high fuel efficiency 
and lower emissions. Switching vehicles' primary energy source 
from petroleum-based fuels to electric batteries reduces 
overall consumption of conventional liquid fuels. Additionally, 
several recent studies have shown that, regardless of its 
source, electricity used as a vehicle fuel reduces greenhouse 
gas emissions. However, greater electrification of the vehicles 
sector is constrained by the technological limits of energy 
storage technologies used in conventional hybrids, specifically 
the Nickel Metal Hydride (NiMH) batteries.
    Plug-In Hybrid Electric Vehicles (PHEVs) are seen by some 
as the next logical step towards greater electrification of the 
transportation sector, and the eventual move towards market 
acceptance of all-electric drive vehicles. PHEVs allow for 
electricity to be used as an additional or even primary source 
of power for a vehicle, with a secondary role for the gasoline 
engine as a back-up power system. Advocates claim that 100 
miles per gallon would be reasonable for PHEVs, approximately 
twice the gasoline mileage of today's hybrids. However, current 
NiMH batteries for conventional hybrids are not optimal for 
this application.
    While significant technological advances are still likely 
in NiMH, and even the ubiquitous Lead Acid batteries, many in 
the industry believe the future of PHEVs depends on 
breakthroughs in new battery technologies, such as the lithium 
ion (Li-Ion) batteries. To expand the use of electricity in the 
vehicles sector, batteries must be smaller, lighter, more 
powerful, higher energy and cheaper--all of which require 
considerable research and development. Achieving these needed 
breakthroughs will require meaningful federal support and 
public-private partnerships with a range of stakeholders.
    Enhanced federal research and development of advanced 
energy storage technologies offers a number of economic, 
environmental and security benefits including greater 
efficiency and reliability in the electricity delivery system, 
better integration of renewable energy supplies into the 
electric grid, and less reliance on conventional transportation 
fuels. However, significant challenges remain in developing 
these technologies and establishing a viable domestic supply 
chain. H.R. 3776 authorizes the Department of Energy to conduct 
research and development programs on energy storage 
technologies, and expands this research to the demonstration of 
promising storage technologies and the manufacturing methods to 
allow for their production in the U.S.

                          IV. HEARING SUMMARY

    The Energy and Environment Subcommittee held a hearing on 
Wednesday, October 3, 2007 to hear testimony on the discussion 
draft of the bill from the following witnesses:
    Panel One:
     Ms. Patricia Hoffman, Deputy Director, Research 
and Development, U.S. Department of Energy Office of 
Electricity Delivery and Energy Reliability
     Mr. Brad Roberts, Chairman, Electricity Storage 
Association
     Mr. Larry Dickerman, Director, Distribution 
Engineering Services for American Electric Power
     Mr. Tom Key, Technical Leader, Renewable and 
Distributed Generations, Electric Power Research Institute
    Panel Two:
     Ms. Lynda Ziegler, Sr. Vice President for Customer 
Services, Southern California Edison
     Ms. Denise Gray, Director, Hybrid Energy Storage 
Systems, General Motors
     Ms. Mary Ann Wright, Vice President and General 
Manager, Hybrid Systems for Johnson Controls, Director of 
Advanced Power Solutions, a Johnson Controls and Saft joint 
venture
    Witnesses at the hearing testified that the United States 
presently is not a leader in the development of energy storage 
technologies, and industry must look to overseas companies for 
component parts that were oftentimes invented here at home. It 
was pointed out that the success of these overseas companies is 
due in large part to intensive R&D and commercialization 
support from their respective governments, and that a similar 
effort is required in the U.S. The public-private partnerships 
stemming from the federal government's investment in research, 
development and demonstration programs will help to propel the 
United States into a globally competitive position. A robust 
domestic manufacturing base and supply chain for this advanced 
technology sector will also have the positive effect of 
creating high-wage manufacturing jobs in the U.S. By increasing 
the domestic capacity of this advanced technology sector, 
manufacturers will have greater access to necessary components 
for accelerating advanced storage technologies into the 
marketplace.
    The first panel focused on stationary energy storage 
systems and how these technologies can be successfully 
integrated into the electric grid or installed alone at a 
residential or commercial or industrial site to function as a 
separate power supply. The witnesses underscored the ability of 
storage systems to provide public benefits such as greater 
power reliability and security and better integration of 
renewable energy sources such as wind and solar into the 
electric grid, since energy from these sources is otherwise 
available only intermittently.
    Ms. Hoffman, Deputy Director of Research and Development 
and Acting Chief Operating Officer for the Office of 
Electricity Delivery and Energy Reliability at the U.S. 
Department of Energy (DOE) testified that energy storage 
technologies paired with an advanced electric grid would 
accelerate the integration of renewable sources of energy into 
the grid as well as foster demand response practices where 
customers' appliances respond to price signals provided by 
electric utilities facilitating better control of electricity 
costs by the end user. She further discussed the benefits of 
energy storage for improving power quality and reliability by 
reducing transmission congestion and providing ancillary 
services such as spinning reserve services needed to meet peak 
electric demand.
    However, Ms. Hoffman pointed out that approximately a mere 
2.5 percent of the total electric power currently delivered in 
the United States passes through energy storage systems and to 
date is largely limited to pumped hydroelectric storage. She 
also stated that the Department recognizes the need to continue 
basic research into energy storage materials and systems and 
during questions remarked that the demonstration programs in 
the bill complement the Department's activities in this area 
and do not duplicate its efforts.
    Ms. Hoffman offered that DOE acknowledges that energy 
storage technologies hold much promise for the transportation 
sector as well. She testified that plug-in hybrid electric 
vehicles will help to transition the nation away from exclusive 
dependence on oil for transportation fuel, and it is important 
to understand how such vehicles could impact the electric 
system.
    Mr. Roberts, Chairman of the Electricity Storage 
Association, underscored the benefits of energy storage 
technology by describing the usefulness of storage systems 
during power outages caused by natural and manmade disasters. 
He recommended expanding the scope of government funding for 
storage programs that interact with the grid and providing 
adequate resources for conducing demonstrations of energy 
storage technologies which enhance the electric grid.
    Mr. Dickerman, Director of Distribution Engineering 
Services at American Electric Power, agreed and emphasized the 
need for federal investment incentives to accelerate the 
widespread deployment of energy storage technologies. Mr. 
Dickerman also discussed his company's ongoing investment in 
deploying energy storage on its system using an advanced 
battery technology. He explained energy storage could be used 
to reduce peak load on equipment, provide backup energy to 
improve security and reliability, and enhance the use of wind 
generation at times of high demand.
    Mr. Key, Technical Leader for Renewables and Distributed 
Generation at the Electric Power Research Institute, 
underscored the ability of energy storage technologies to 
support renewable energy sources that avoid emissions of 
harmful pollutants and to involve customers in the management 
of their electricity use. He also acknowledged that these 
technologies are expensive and siting and permitting can be 
difficult. He closed by recognizing that energy storage 
technologies will be essential in meeting the growing demand 
for electricity from sources that address our environmental 
challenges.
    The second panel focused on energy storage technologies for 
vehicles. Ms. Zeigler, Senior Vice President for Customer 
Services, Southern California Edison testified that a study 
conducted by the Electric power Research Institute and the 
Natural Resources Defense Council found that widespread 
adoption of plug-in hybrids could reduce annual emissions of 
greenhouse gases by more than 450 million metric tons by 2050, 
or the equivalent of removing 82 million passenger cars from 
the road. Advances in electric car batteries would also help to 
reduce our dependence on foreign oil supplies and overall 
improve vehicle efficiencies. Electricity is the only 
alternative transportation fuel with a national infrastructure 
in place today. Consequently, plug-ins hybrids could also serve 
as a temporary energy power supply for homes and businesses, 
helping customers avoid high electricity costs during times of 
peak demand.
    Ms. Gray, Director of Hybrid Energy Storage Systems at 
General Motors Corporation, described the different types of 
battery technologies, additional research needed to develop 
vehicles that meet a range of consumer demands, and the 
difficulties of allocating limited company resources across a 
range of alternative technologies such as hydrogen fuel cells, 
advanced diesel, and flexible fuel vehicles. She traces much of 
the current success introducing hybrids in the U.S. auto market 
to public-private partnership between industry and the 
Department of Energy.
    Mrs. Wright, Vice President and General Manger for Hybrid 
Systems Power Solutions, Johnson Controls spoke to the 
environmental benefits of plug-in electric vehicles, but 
cautioned that continued federal investment in technology 
research and demonstrations is needed to overcome significant 
economic barriers. In addition, investment in a national 
manufacturing base and infrastructure would facilitate 
collaboration among the stakeholders to achieve widespread 
deployment of these technologies in the marketplace at a price 
consumers can afford. Ms. Wright's written testimony includes a 
list of commercialization barriers and key enabling 
countermeasures. Among those, direct federal collaborations 
between battery manufacturers and other lower tier suppliers is 
cited as key to overcoming a range of technical challenges.

                    V. SUMMARY OF COMMITTEE ACTIONS

    On October 9, 2007, Representative Bart Gordon introduced 
H.R. 3776, The Energy Storage Technology Advancement Act of 
2007.
    The Subcommittee on Energy and Environment met to consider 
H.R. 3776 on October 10, 2007, with no amendments to the bill.
    Mr. McNerney moved that the Subcommittee favorably report 
the bill, H.R. 3776, to the Full Committee on Science and 
Technology. The motion was agreed to by a voice vote.

              VI. SUMMARY OF MAJOR PROVISIONS OF THE BILL

    H.R. 3776 authorizes $130 million for basic and applied 
energy storage research programs at the Department of Energy 
for each fiscal year 2009 through 2014, and sets guidelines for 
activities of the programs. The basic research is authorized at 
$50 million for each fiscal year and the applied research is 
authorized at $80 million for each fiscal year. In addition, 
the bill authorizes the Secretary of Energy to carry out 6 
demonstrations of stationary storage technologies aimed at 
accomplishing goals such as improving security for emergency 
response infrastructure, addressing management of overloaded 
lines and improving reliability of the electricity supply in 
rural communities. The second demonstration program focuses on 
the application of energy storage technologies in the vehicles 
sector. Such demonstration efforts will seek to advance onboard 
energy management and cooling systems, reduce manufacturing 
costs and integrate transportation technologies with the 
electricity distribution system and smart metering technology. 
Finally, H.R. 3776 includes a 50/50 federal and non-federal 
cost share arrangement for both the stationary and vehicular 
demonstration programs.

       VII. SECTION-BY-SECTION ANALYSIS OF THE BILL, AS REPORTED

Section 1. Short title

    ``Energy Storage Technology Advancement Act of 2007''

Sec. 2. Definitions

Sec. 3. Energy storage system program

    Authorizes program for research, development and 
demonstration of energy storage systems to be carried out by 
the Secretary of Energy.

Sec. 4. Basic research program

    Authorizes basic research in areas such as materials, 
electrolytes, and thermal behavior. $50 million authorized for 
each of the fiscal years 2009-2014.

Sec. 5. Applied research program

    Authorizes applied research in areas such as batteries, 
other energy storage technologies, and new manufacturing 
technologies for these devices. $80 million authorized for each 
of the fiscal years 2009-2014.

Sec. 6. Energy storage systems demonstrations

    Authorizes 6 large scale demonstrations of electricity 
storage to meet specific goals such as integrating renewable 
energy technologies into electric power supply. Such sums 
authorized for each of the fiscal years 2009-2014.

Sec. 7. Transportation energy storage demonstrations

    Authorizes demonstrations in areas such as advanced vehicle 
battery technologies and related components, and new 
manufacturing technologies for these devices. Such sums 
authorized for each of the fiscal years 2009-2014.

Sec. 8. Cost sharing

    Requires cost sharing to be carried out in accordance with 
EPACT 2005 section 988.

                         VIII. COMMITTEE VIEWS

    It is the Committee view that advancing the field of energy 
storage technologies brings with it significant environmental, 
economic and security-related benefits, and it is critical that 
a robust energy storage technology industry is developed in the 
U.S. Advanced storage devices allow for better and more 
efficient management of our electricity delivery system, 
increased use of renewable energy sources, decreased emissions 
of carbon dioxide and other harmful pollutants, and less 
reliance on foreign imports to meet our transportation fuel 
needs. To ensure progress in this field, it is the Committee 
view that significant breakthroughs must be realized through a 
program of basic and applied research, development and 
demonstration, and that federal investment is necessary for the 
United States to become a world leader in developing and 
manufacturing these technologies.
    The basic research areas outlined in Section 3 are based 
primarily on recommendations resulting from an April 2007 
workshop conducted by the Department of Energy's Office of 
Science entitled ``Basic Research Needs for Electrical Energy 
Storage''. While the legislation specifically lists a number of 
areas of research in the area of energy storage, it is not the 
intent of the Committee to limit the Department's overall 
battery research program, especially in light of interest in 
areas such as research on ion-exchange materials and catalysts.
    Sections 3 and 4 both include language directing the 
Secretary of Energy to coordinate activities and award funds to 
a range of stakeholders in the public, private and academic 
sectors, in addition to work at the national laboratories. The 
Committee believes that funding for this research should not be 
done solely at the national laboratories. The university 
community and the private sector should also be funded to do 
this work.
    The Committee believes the success of these technologies 
ultimately depends upon their widespread adoption in the 
marketplace. A key step in that process is the conduct of 
demonstration projects. It is the Committee view that 
implementation of diverse demonstrations projects could provide 
valuable information about the potential efficiency gains and 
economic benefits of broad deployment of energy storage 
systems. Section 5 of the bill lays out a number of suggested 
objectives for the Department of Energy's demonstration of 
energy storage systems, but it is not the intent of the 
Committee to limit the accomplishments of the demonstration 
program. The Committee recognizes that more than one objective 
could be achieved through a single demonstration project.
    Generally, it is the Committee view that energy storage 
systems can help to transform the electric delivery system in 
the United States by increasing reliability, stability and 
resiliency of the grid. The Committee believes it is important 
to conduct some demonstrations of energy storage technologies 
designed to improve reliability of electricity supplies in 
rural parts of the country. The Committee also sees value in 
demonstrations of storage technologies in ensuring that our 
emergency response infrastructure, including water treatment 
plants and hospitals, can continue operations during natural 
disasters or manmade disruptions to the electric power supply.
    The Committee believes that deployment of energy storage 
technologies applied in load centers or areas with concentrated 
populations, would relieve congestion during peak demand 
periods, and would be essential to help address timing and need 
for infrastructure upgrades. The Committee also views energy 
storage systems as a key technology to provide ancillary 
services to the grid such as spinning reserve services and 
frequency regulation.
    As part of the effort to modernize our electric 
infrastructure, it is the Committee view that federal resources 
should be spent to demonstrate the integration of renewable 
energy onto the grid through energy storage systems. These 
systems would allow renewable energy sources such as wind and 
solar to provide a steadier and more reliable stream of energy 
as they would no longer be dependant on periods when the wind 
is blowing and the sun is shining in order to contribute energy 
to the electric grid. The Committee finds that energy storage 
systems will foster better performance of the electric utility 
infrastructure by optimizing electricity generation. Energy 
storage technologies would reduce the need to generate more 
power during times of peak electricity demand by using our 
generation capacity at night during nonpeak demand and storing 
energy for use during the day. This energy management practice 
could also prevent the need to run generation facilities with 
high operational costs or poor emissions profiles. This would 
be more efficient, less costly, and help to equalize the demand 
load while reducing emissions of greenhouse gases.
    The Committee believes the Department of Energy's work to 
advance energy storage technologies should take into 
consideration the challenges of ensuring that these 
technologies can be adopted by energy production operators and/
or deployed by other private and public parties. The Department 
should consider seeking solutions to reduce technical barriers 
that may prohibit the use of energy storage technologies. It is 
the Committee view that the Department's programmatic efforts 
should look to solve design hurdles when feasible so that the 
technologies successfully demonstrated could be deployed 
without significant delay.
    In regard to energy storage technologies for vehicular 
applications, the Committee recognizes that large-scale 
demonstrations utilizing government and utility vehicle fleets 
are useful in testing electric drive vehicles in a variety of 
conditions and use-patterns, and that these fleets provide 
added public visibility that eases commercialization. However, 
the program as described in the section is intended to focus on 
demonstration of the energy storage systems in particular, and 
their related components. It is the view of the Committee that, 
in addition to public-private partnerships with Original 
Equipment Manufacturers (OEMs), special attention should be 
paid to direct coordination with battery manufacturers and 
second tier suppliers.
    The Committee believes it is important to quickly develop 
means to handle electric drive vehicle batteries after their 
use in vehicles. The expansion of the hybrid vehicle market 
will result in a significant number of batteries that could be 
diverted to other uses, recycled, or otherwise disposed of. A 
very large majority of conventional lead-acid vehicle batteries 
are recycled or otherwise re-used, limiting the environmental 
impacts from their disposal. The Committee supports an R&D 
program that would characterize the potential environmental 
impact of these batteries, and develop technologies and 
processes for recycling and disposal of these devices. The 
Committee believes there may be a range of stationary 
applications for which a used vehicle battery is well-suited, 
and research and development of these options can lead to 
significant reductions in the cost to consumers. Section 7 
directs the Secretary to carry out a program of research, 
development and demonstration program for secondary 
applications and disposal of electric drive vehicle batteries.

                           IX. COST ESTIMATE

    A cost estimate and comparison prepared by the Director of 
the Congressional Budget Office under section 402 of the 
Congressional Budget Act of 1974 has been timely submitted to 
the Committee on Science and Technology prior to the filing of 
this report and is included in Section XI of this report 
pursuant to House Rule XIII, clause 3(c)(3).
    H.R. 3776 does not contain new budget authority, credit 
authority, or changes in revenues or tax expenditures. Assuming 
that the sums authorized under the bill are appropriated, H.R. 
3776 does authorize additional discretionary spending, as 
described in the Congressional Budget Office report on the 
bill, which is contained in Section X of this report.

              X. CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

                                                  October 19, 2007.
Hon. Bart Gordon,
Chairman, Committee on Science and Technology,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 3776, the Energy 
Storage Technology Advancement Act of 2007.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Leigh Angres.
            Sincerely,
                                                   Peter R. Orszag.
    Enclosure.

H.R. 3776--Energy Storage Technology Advancement Act of 2007

    Summary: H.R. 3776 would authorize the appropriation of 
$195 million a year over the 2009-2014 period for the 
Department of Energy's (DOE's) energy storage research 
activities. Assuming appropriation of the authorized amounts, 
CBO estimates that implementing H.R. 3776 would cost $638 
million over the 2008-2012 period and about $530 million after 
2012. Enacting H.R. 3776 would not affect direct spending or 
revenues.
    H.R. 3776 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on state, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 3776 is shown in the following table. 
The costs of this legislation fall within budget function 250 
(general science, space, and technology).

------------------------------------------------------------------------
                                      By fiscal year, in millions of
                                                 dollars--
                                 ---------------------------------------
                                   2008    2009    2010    2011    2012
------------------------------------------------------------------------
             CHANGES IN SPENDING SUBJECT TO APPROPRIATION\a\

Basic Research for Energy
 Storage Technology:
    Authorization Level.........       0      50      50      50      50
    Estimated Outlays...........       0      23      43      48      50
Applied Research for Energy
 Storage Technology:
    Authorization Level.........       0      80      80      80      80
    Estimated Outlays...........       0      36      68      76      80
Energy Storage Systems
 Demonstration Programs:
    Authorization Level.........       0      30      30      30      30
    Estimated Outlays...........       0      14      26      29      30
Vehicle Energy Storage
 Demonstration Programs:
    Authorization Level.........       0      30      30      30      30
    Estimated Outlays...........       0      14      26      29      30
Secondary Applications of
 Electric Drive Vehicle:
    Authorization Level.........       0       5       5       5       5
    Estimated Outlays...........       0       2       4       5       5
    Total Changes:
        Authorization Level.....       0     195     195     195     195
        Estimated Outlays.......       0      89     167     187    195
------------------------------------------------------------------------
\a\A full-year 2008 appropriation for the Department of Energy has not
  yet been provided.
Note: Under the bill, an additional $195 million a year would be
  authorized in 2013 and 2014.


    Basis of estimate: For this estimate, CBO assumes that H.R. 
3776 will be enacted during fiscal year 2008 and that the 
entire amounts authorized will be appropriated for each fiscal 
year.
    H.R. 3776 would authorize the appropriation of $195 million 
a year over the 2009-2014 period for DOE's energy storage 
research programs in such areas as electric drive vehicles and 
electricity transmission and distribution.
    The bill would specifically authorize the appropriation of 
$50 million a year through 2014 to award grants to the public, 
private, and academic sectors to support research in such areas 
as surface and interface dynamics and thermal behavior (i.e., 
how a system burns). Under the bill, another $80 million 
annually would be authorized to be appropriated for applied 
research on batteries, compressed air energy systems, and 
ultracapacitors.
    H.R. 3776 would also authorize the appropriation of $60 
million a year through 2014 for energy storage demonstration 
programs. Of that amount, $30 million a year would be 
authorized to be appropriated for electricity storage 
demonstration programs to research the integration of renewable 
energy sources into the electric power supply and the use of 
advanced energy storage for peak load management of homes and 
businesses. Another $30 million a year would be authorized to 
be appropriated for vehicle energy storage demonstration 
programs to advance the use of electricity in the 
transportation sector.
    Based on the historical spending patterns of DOE research 
and development programs, CBO estimates that implementing H.R. 
3776 would cost $638 million over the 2008-2012 period and 
about $530 million after 2012.
    Intergovernmental and private-sector impact: H.R. 3776 
contains no intergovernmental or private-sector mandates as 
defined in UMRA. The bill would authorize several new research 
and demonstration programs for electric energy storage that 
would benefit state and local governments. Any costs they might 
incur, including matching funds, would be incurred voluntarily.
    Estimate prepared by: Federal Costs: Leigh Angres; Impact 
on State, Local, and Tribal Governments: Neil Hood; Impact on 
the Private Sector: Amy Petz.
    Estimate approved by: Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

                  XI. COMPLIANCE WITH PUBLIC LAW 104-4

    H.R. 3776 contains no unfunded mandates.

         XII. COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

    The oversight findings and recommendations of the Committee 
on Science and Technology are reflected in the body of this 
report.

      XIII. STATEMENT ON GENERAL PERFORMANCE GOALS AND OBJECTIVES

    Pursuant to clause (3)(c) of House Rule XIII, the goal of 
H.R. 3776 is to provide for research, development, and 
demonstration programs to accelerate the development of 
advanced energy storage systems for vehicular, stationary, and 
electricity transmission and distribution applications, and 
support the ability of the United States to remain globally 
competitive in this field.

                XIV. CONSTITUTIONAL AUTHORITY STATEMENT

    Article I, section 8 of the Constitution of the United 
States grants Congress the authority to enact H.R. 3776.

                XV. FEDERAL ADVISORY COMMITTEE STATEMENT

    H.R. 3776 does not establish nor authorize the 
establishment of any advisory committee.

                 XVI. CONGRESSIONAL ACCOUNTABILITY ACT

    The Committee finds that H.R. 3776 does not relate to the 
terms and conditions of employment or access to public services 
or accommodations within the meaning of section 102(b)(3) of 
the Congressional Accountability Act (Public Law 104-1).

                      XVII. EARMARK IDENTIFICATION

    H.R. 3776 does not contain any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9(d), 9(e), or 9(f) of Rule XXI.

     XVIII. STATEMENT ON PREEMPTION OF STATE, LOCAL, OR TRIBAL LAW

    This bill is not intended to preempt any state, local, or 
tribal law.

       XIX. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    H.R. 3776, as reported, makes no changes in existing law.

                     XX. COMMITTEE RECOMMENDATIONS

    On June 27, 2007, the Committee on Science and Technology 
favorably reported H.R. 3776, as amended, by a voice vote and 
recommended its passage by the House of Representatives.



   XXI. PROCEEDINGS OF THE MARKUP BY THE SUBCOMMITTEE ON ENERGY AND 
ENVIRONMENT ON H.R. 3776, THE ENERGY STORAGE TECHNOLOGY ADVANCEMENT ACT 
                                OF 2007

                              ----------                              


                      WEDNESDAY, OCTOBER 10, 2007

                  House of Representatives,
            Subcommittee on Energy and Environment,
                       Committee on Science and Technology,
                                                    Washington, DC.

    The Subcommittee met, pursuant to call, at 2:06 p.m., in 
Room 2318 of the Rayburn House Office Building, Hon. Nick 
Lampson [Chairman of the Subcommittee] presiding.
    Chairman Lampson. Good afternoon. This Committee on Energy 
and Environment will come to order. Pursuant to notice, the 
Subcommittee on Energy and Environment meets to consider the 
following measures: H.R. 3776, the Energy Storage Technology 
Advancement Act of 2007; H.R. 3775, the Industrial Energy 
Efficiency Research and Development Act of 2007; and H.R. 1834, 
the National Ocean Exploration Program Act. We will now proceed 
with the markup, beginning with opening statements, and I will 
begin.
    Today the Subcommittee will consider three bills.
    The first is the Energy Storage Technology Advancement Act, 
introduced yesterday by Chairman Gordon. As we learned in the 
hearing last week, an aggressive research program to accelerate 
the development of batteries and other energy-storing 
technologies is essential to achieving greater energy 
efficiency and emission reduction in the utility and 
transportation sectors. Chairman Gordon's bill, which 
incorporates many features of an energy bill introduced earlier 
in the Congress by Ranking Member Hall, will ensure that we 
move these import technologies forwards and support a vigorous 
domestic industrial capability in this areas.
    The second bill is the Industrial Energy Efficiency 
Research and Development Act. I introduced this legislation 
yesterday after circulating a discussion draft of the bill at 
the end of September. If we want to maintain a competitive, 
domestic industrial economy, we must find ways to enable 
energy-intensive industries to become more energy efficient and 
to diversify the fuel and raw materials they use to manufacture 
their products. Competition for energy and material is 
increasing and driving up prices for these inputs. The 
Industrial Technology Program at the Department of Energy has 
been working in partnership with industries across the county 
to achieve these important goals, but we still must do more.
    And finally, we will consider H.R. 1834, introduced by our 
colleague on the Natural Resources Committee, Representative 
Saxton. The National Ocean Exploration and National Undersea 
Research Program Act will expand our knowledge of the oceans 
and provide basic information about the vast resources of the 
seas. The ocean and coastal areas of our nation support 
significant economic activity in a wide variety of area, but in 
many respects, the oceans remain a mystery with many areas 
unexplored. Representative Saxton's legislation provides the 
National Oceanic and Atmospheric Administration with the 
authorities and direction to support a vigorous ocean-
exploration program. We will continue to work with our 
colleagues on the Natural Resources Committee to move this 
legislation forward.
    I urge the Members of the Subcommittee to support all three 
of these bills, and I look forward to continue working with all 
of you as these will go forward.
    [The prepared statement of Chairman Lampson follows:]
              Prepared Statement of Chairman Nick Lampson
    Good afternoon.
    Today the Subcommittee will consider three bills. The first is the 
Energy Storage Technology Advancement Act introduced yesterday by 
Chairman Gordon. As we learned in the hearing last week, an aggressive 
research program to accelerate the development of batteries and other 
energy storing technologies is essential to achieving greater energy 
efficiency and emission reductions in the utility and transportation 
sectors.
    Chairman Gordon's bill, which incorporates many features of an 
energy bill introduced earlier in this Congress by Ranking Member Hall, 
will ensure that we move these important technologies forward and 
support a vigorous domestic industrial capability in this area.
    The second bill is the Industrial Energy Efficiency Research and 
Development Act. I introduced this legislation yesterday after 
circulating a discussion draft of the bill at the end of September.
    If we want to maintain a competitive, domestic industrial economy 
we must find ways to enable energy-intensive industries to become more 
energy efficient and to diversify the fuel and raw materials they use 
to manufacture their products. Competition for energy and materials is 
increasing and driving up prices for these inputs. The Industrial 
Technology Program at the Department of Energy has been working in 
partnership with industries across the country to achieve these 
important goals, but we must do more.
    Finally, we will consider H.R. 1834 introduced by our Colleague on 
the Natural Resources Committee, Rep. Saxton. The National Ocean 
Exploration and National Undersea Research Program Act will expand our 
knowledge of the oceans and provide basic information about the vast 
resources of the seas.
    The ocean and coastal areas of our nation support significant 
economic activity in a wide variety of areas. But in many respects, the 
oceans remain a mystery with many areas unexplored. Rep. Saxton's 
legislation provides the National Oceanic and Atmospheric 
Administration with the authorities and direction to support a vigorous 
ocean exploration program. We will continue to work with our colleagues 
on the Natural Resources Committee to move this legislation forward.
    I urge the Members of the Subcommittee to support all three of 
these bills, and I look forward to continue working with all of you as 
these bills go forward.

    Chairman Lampson. And I recognize Mr. Inglis to present his 
opening remarks.
    Mr. Inglis. Thank you, Mr. Chairman. I look forward to this 
markup, and today we will mark up two bills that address two 
vital needs in pursuit of our energy security: energy 
efficiency and energy storage.
    The Department of Energy's Industrial Technologies Program 
has a successful track record of helping U.S. manufactures 
translate research and development into efficient, cost-saving 
technologies. By reauthorizing this program, the Industrial 
Energy Efficiency Research and Development Act, H.R. 3775, will 
support our nation's industries in achieving energy efficiency 
while remaining economically competitive. It is very important 
that we direct this program to prioritize its efficiency 
efforts, targeting industry sectors, not individual businesses, 
where we can attain the best emissions reductions for our buck.
    While energy efficiency reduces our total consumption of 
foreign oil and gas, energy-storage progress will encourage 
development of clean, renewable energy sources. H.R. 3776, the 
Energy Storage Technology Advancement Act, can help promote 
consistent and stable energy supply from renewable sources. 
That is a big hurdle, but it is one we can't clear soon enough.
    Finally, we shall be marking up the bill H.R. 1834, the 
National Ocean Exploration Program Act. Marine scientists tell 
us that we haven't come close to tapping the resources 
available to us in and under our oceans. I hope that the bill 
we markup today steers research dollars to those fact-finding 
projects so that we might, one day, reap the benefits of our 
hidden oceanic resources.
    Thank you again, Mr. Chairman, and I look forward to 
working with you to advance this legislation.
    [The prepared statement of Mr. Inglis follows:]
            Prepared Statement of Representative Bob Inglis
    Thank you for holding this markup, Mr. Chairman.
    Today we'll mark up two bills that address two vital needs in our 
pursuit of energy security: energy efficiency and energy storage.
    The Department of Energy's Industrial Technologies Program (ITP) 
has a successful track record of helping U.S. manufacturers translate 
research and development into efficient, cost-saving technologies. By 
reauthorizing this program, the Industrial Energy Efficiency Research 
and Development Act (H.R. 3775) will support our nation's industries in 
achieving energy efficiency while remaining economically competitive. 
It is very important that we direct this program to prioritize its 
efficiency efforts, targeting industry sectors (not individual 
businesses) where we can attain the best emissions reductions for our 
buck
    While energy efficiency reduces our total consumption of foreign 
oil and gas, energy storage progress will encourage development of 
clean, renewable energy sources. H.R. 3776, the Energy Storage 
Technology Advancement Act can help promote consistent and stable 
energy supply from renewable sources. That's a big hurdle, but it's one 
we can't clear soon enough.
    Finally, we'll be marking up the H.R. 1834, the National Ocean 
Exploration Program Act. Marine scientists tell us that we haven't come 
close to tapping the resources available to us in and under our oceans. 
I hope that the bill we markup today steers research dollars to those 
``fact-finding'' projects, so that humanity might one day reap the 
benefits of our hidden oceanic resources.
    Thank you again, Mr. Chairman, and I look forward to working with 
you to advance this legislation.

    Chairman Lampson. Thank you, Mr. Inglis. Without objection, 
Members may place statements in the record at this point.
    We will now consider H.R. 3776, the Energy Storage 
Technology Advancement Act of 2007.
    I yield to the distinguished Chair of the Science and 
Technology Committee, Mr. Gordon, for five minutes to describe 
his bill.
    Chairman Gordon. Mr. Chairman, I think you did a good job 
earlier, and since you have a full agenda, I will waive that 
right, but I would like to say thank you, to you, to Ranking 
Member Inglis, to the Members of this committee and to your 
staff. I don't think there has been a more productive 
subcommittee in Congress. You have really knocked it out this 
year, and I know it has been a fast pace for all of you, and I 
thank you for that. The last two energy bills, in the midst of 
the final discussion with energy, will make us more relevant on 
those two subjects, and I also compliment you on reaching out 
to Mr. Saxton, not a Member of this committee, but a good idea 
is a good idea, and I am glad that you could include that.
    Chairman Lampson. Thank you, Mr. Chairman. I appreciate 
that very much, and I will recognize Mr. Inglis to present any 
remarks on the bill.
    Mr. Inglis. Mr. Chairman, just to make sure this clear on 
the record, it appears that the version in front of us today 
has a bill number added to it, which was not in the discussion 
draft circulated. I want to make sure that the version we are 
using is identical to the introduced version, in order to 
prevent any confusion moving forward. Is the October 4, 2007, 
2:05 p.m., version identical to the version that was 
introduced?
    Chairman Lampson. It is.
    Mr. Inglis. Thank you, Mr. Chairman.
    Chairman Lampson. Does anyone else wish to be recognized on 
this legislation? Ms. Biggert.
    Ms. Biggert. Thank you, Mr. Chairman, I move to strike the 
last word.
    Chairman Lampson. You are recognized for five minutes.
    Ms. Biggert. Thank you. I just wanted to offer a 
suggestion, and hopefully, this is something we can work on 
between now and the Full Committee markup. After reviewing an 
early draft of this bill, scientists at Argonne pointed out 
that hydrogen can be an energy-storage medium, just like 
compressed air or flywheels. Solar, wind, and renewable could 
be used to produce hydrogen through electrolysis, hydrogen that 
is later used by fuel cells to produce electricity, and that is 
why they recommended that we include hydrogen systems in the 
Applied Energy Storage Research Program created in Section 5 of 
this bill.
    I think this is a good suggestion that the Committee should 
consider, and it would appear to be consistent with other 
provisions in the bill. For instance, the fuel-cell industry is 
listed as one of the stakeholders eligible to participate in 
the energy-storage system demonstration, authorized by Section 
6 of the bill. It only makes sense that we include hydrogen as 
one of the energy-storage mediums that should be the focus of 
the applied energy-storage R&D program.
    I would ask if the Chairman would work with me between now 
and the Full Committee markup to figure out how best to include 
hydrogen systems in the research program created by the bill.
    Chairman Gordon. If the gentlelady will yield, this 
committee has been very interested in hydrogen. Ranking Member 
Inglis and Lipinski have an H-Prize bill, and we have 
encouraged that research at the Department of Energy, and they 
are doing a lot research there. Certainly, this is first 
impression, this discussion now, but we would like to hear your 
thoughts, and anything that can be productive. We would like to 
make a good bill, you know, a better bill, so we would love to 
hear your thoughts on it.
    Ms. Biggert. All right. I thank you, and I would----
    Chairman Gordon. If I could, I will say one more thing. I 
also want to thank Ranking Member Hall. A lot of what we are 
doing here is based on his good advice and suggestions from 
earlier, so he has played a large role in this bill, and I 
yield back.
    Ms. Biggert. Thank you. I appreciate your comments and 
would yield back the balance of my time.
    Chairman Lampson. Thank you, Ms. Biggert. Does anyone else 
wish to be recognized? Mr. McNerney.
    Mr. McNerney. Thank you, Mr. Chairman, I just want to put 
my strong support in for this bill. It has both basic research 
and applied research at the federal level, which is very 
important. Energy storage will make us more competitive, but it 
will also help us end our dependence on foreign oil by making 
broad use of renewable energy that is intermittent and will 
provide us the tools to deal with global warming. So I think it 
is a very important step in the right direction, and I strongly 
support it.
    Chairman Lampson. Thank you. I understand you are involved 
in some of that stuff, learning more about it.
    Anyone else wish to be recognized? If not, I ask unanimous 
consent that the bill is considered as read and open to 
amendment at any point, and that the Members proceed with the 
amendments in the order of the roster. Without objection, it is 
so ordered.
    No amendments? All right. Seeing how there are no--well, 
let me ask. Are there any amendments anyone has? Hearing none, 
the vote is on the bill H.R. 3776, Energy Storage Technology 
Advancement of 2007. All those in favor, say aye. Those 
opposed, no. In the opinion of the Chair, the ayes have it.
    I recognize Mr. McNerney to offer a motion.
    Mr. McNerney. Mr. Chairman, I move that the Committee 
favorably report H.R. 3776 to the Full Committee. Furthermore, 
I move that the staff be instructed to prepare the Subcommittee 
legislative report and make necessary technical and conforming 
changes to the bill, in accordance with the recommendations of 
the Subcommittee.
    Chairman Lampson. Now, the question is on the motion to 
report the bill favorably. Those in favor of the motion will 
signify by saying aye; those opposed, no. The ayes have it, and 
the bill is favorably reported.
    Without objection, the motion to reconsider is laid upon 
the table. Subcommittee Members may submit additional or 
Minority views on the measure.
    I want to thank the Members for their attendance. This 
concludes our Subcommittee markup. We are adjourned. Thank you.
    [Whereupon, at 2:25 p.m., the Subcommittee was adjourned.]
                                Appendix:

                              ----------                              


           H.R. 3776, Section-by-Section of Draft Legislation




              Section-by-Section of the Draft Legislation

           Energy Storage Technology Advancement Act of 2007

Section 1--Short Title

    ``Energy Storage Technology Advancement Act of 2007''

Section 2--Definitions

Section 3--Energy Storage System Program

    Authorizes program for research, development and demonstration of 
energy storage systems to be carried out by the Secretary of Energy.

Section 4--Basic Research Program

    Authorizes basic research in areas such as materials, electrolytes, 
and thermal behavior. $50 million authorized for each of the fiscal 
years 2009-2014.

Section 5--Applied Research Program

    Authorizes applied research in areas such as batteries, other 
energy storage technologies, and new manufacturing technologies for 
these devices. $80 million authorized for each of the fiscal years 
2009-2014.

Section 6--Energy Storage Systems Demonstrations

    Authorizes six large scale demonstrations of electricity storage to 
meet specific goals such as integrating renewable energy technologies 
into electric power supply. Such sums authorized for each of the fiscal 
years 2009-2014.

Section 7--Transportation Energy Storage Demonstrations

    Authorizes demonstrations in areas such as advanced vehicle battery 
technologies and related components, and new manufacturing technologies 
for these devices. Such sums authorized for each of the fiscal years 
2009-2014.

Section 8--Cost Sharing

    Requires cost sharing to be carried out in accordance with EPACT 
2005 section 988.



XXII. PROCEEDINGS OF THE FULL COMMITTEE MARKUP ON H.R. 3776, THE ENERGY 
               STORAGE TECHNOLOGY ADVANCEMENT ACT OF 2007

                              ----------                              


                       TUESDAY, OCTOBER 16, 2007

                          House of Representatives,
                       Committee on Science and Technology,
                                                    Washington, DC.

    The Committee met, pursuant to call, at 10:07 a.m., in Room 
2318 of the Rayburn House Office Building, Hon. Bart Gordon 
[Chairman of the Committee] presiding.
    Chairman Gordon. Good morning, everyone. Pursuant to notice 
the Committee on Science and Technology meets to consider the 
following measures; H.R. 3776, the Energy Storage Technology 
Advancement Act of 2007, and H.R. 3775, the Industrial Energy 
Efficiency Research and Development Act of 2007.
    We will put the Committee on notice. We originally also 
were going to deal with a bill from Mr. Sexton today, but 
apparently it is not ready, and we will be doing it next week. 
So I assume everybody is working, and we will get that ready to 
go.
    We will now proceed with the markup, and I will begin with 
a brief statement. Today the Science and Technology Committee 
will consider two bills. The first is the Energy Storage 
Technology Advancement Act, H.R. 3776, and I would like to 
thank my friend, Ranking Member Hall, for his interest in this 
important issue and the work he and his staff have put into the 
bill.
    H.R. 3776 includes provisions from a bill Mr. Hall 
introduced earlier this year, and I am glad we could 
incorporate that into it.
    I will offer a Manager's amendment to H.R. 3776, which 
makes some technical changes and other improvements to the 
bill, and I would like to thank Mr. Hall, Ms. Biggert, Mr. 
Inglis, and their staffs for working with us to develop the 
amendment.
    The second bill we will markup today is the Industrial 
Energy Efficiency Research and Development Act, H.R. 3775.
    H.R. 3775 was introduced by Energy and Environment 
Subcommittee Chairman Nick Lampson. I understand Chairman 
Lampson and Ranking Member Inglis have worked together on a 
Manager's amendment that will make several changes to the 
introduced legislation.
    And I am glad to see the Committee tackle such and 
important and under-served area as this, and I know Mr. Lampson 
has worked hard with the industry, universities, DOE, and the 
minority to make this a good bill.
    I now recognize Mr. Hall to present his opening remarks.
    [The prepared statement of Chairman Gordon follows:]
               Prepared Statement of Chairman Bart Gordon
    Today, the Science and Technology Committee will consider two 
bills.
    The first is the Energy Storage Technology Advancement Act, H.R. 
3776 which I introduced last week.
    I would like to thank my friend from Texas, Ranking Member Hall, 
for his interest in this important issue and the work he and his staff 
put into this bill. H.R. 3776 includes provisions from a bill Mr. Hall 
introduced earlier this year, and I am glad we could incorporate them.
    Advancing the field of energy storage technologies brings with it 
several environmental, economic and security-related benefits, and it 
is critical that the U.S. build up and maintain a competitive 
industrial capability in this sector.
    Establishing an aggressive research program to is vital to 
advancing the development and deployment of energy storage technologies 
for use in electric drive vehicles and stationary applications that 
improve operation of our electricity delivery system.
    I will offer a Manager's amendment to H.R. 3776 which makes some 
technical changes and other improvements to the bill. I would like to 
thank Mr. Hall, Mrs. Biggert, Mr. Inglis and their staffs for working 
with us to develop the amendment.
    The second bill we will markup today is the Industrial Energy 
Efficiency Research and Development Act, H.R. 3775.
    H.R. 3775 was introduced by Energy and Environment Subcommittee 
Chairman Nick Lampson. I understand Chairman Lampson and Ranking Member 
Inglis have worked together on a Manager's amendment that will make 
several changes to the introduced legislation.
    I am glad to see the Committee tackle such an important and under-
served area as this, and I know Mr. Lampson has worked hard with 
industry, universities, DOE, and the Minority to make this a good bill.

    Mr. Hall. Thank you, Mr. Chairman, and I would like to add 
my support to the two bills that we are marking up today. Both 
of them work towards efficiently using our country's energy 
resources.
    The Industrial Energy Efficiency Research and Development 
Act will reinforce the good work the Department of Energy is 
currently doing in the Industrial Technologies Program to help 
American companies lower their use of energy in the production 
of their products and in the running of their plants and their 
businesses, which is very important.
    The Energy Storage Technology Advancement Act will also 
help our country use energy more efficiently in that it 
establishes a program at the Department of Energy to develop 
energy storage devices for stationary and vehicular 
applications.
    This will allow our country to utilize renewable energy 
sources to the maximum extent possible and allow for 
traditional generation to become even more efficient as energy 
storage devices will reduce the need for inefficient and 
expensive power plants to be ramped up during times of high 
energy demand.
    The bill, Mr. Chairman, will also help pave the way toward 
the development of plug-in hybrid vehicles by furthering 
research on the storage system necessary to make the vehicles a 
viable, widespread transportation option.
    I introduced similar energy storage legislation earlier 
this year. Mr. Chairman, I really want to thank you for 
including a lot of my language in the version that is before us 
today.
    And I yield back my time.
    [The prepared statement of Mr. Hall follows:]
           Prepared Statement of Representative Ralph M. Hall
    Mr. Chairman, I would like to add my support to the two bills we 
are marking up today. Both of them work towards efficiently using our 
country's energy resources. The Industrial Energy Efficiency Research 
and Development Act will reinforce the good work the Department of 
Energy is currently doing in the Industrial Technologies Program to 
help American companies lower their use of energy in the production of 
their products and in the running of their plants and businesses.
    The Energy Storage Technology Advancement Act will also help our 
country use energy more efficiently in that it establishes a program at 
the Department of Energy to develop energy storage devices for 
stationary and vehicular applications. This will allow our country to 
utilize renewable energy sources to the maximum extent possible and 
allow for traditional generation to become even more efficient as 
energy storage devices will reduce the need for inefficient and 
expensive power plants to be ramped up during times of high energy 
demand. The bill will also help pave the way toward the development of 
plug-in hybrid vehicles by furthering research on the storage systems 
necessary to make the vehicles a viable, widespread transportation 
option.
    I introduced similar energy storage legislation earlier this year, 
and I would like to thank Chairman Gordon for including much of my 
language in this version before us today.
    I yield back the balance of my time.

    Chairman Gordon. Thank you, Mr. Hall, and now without 
objection Members may place statements in the record at this 
point.
    We will now consider H.R. 3776, Energy Storage Technology 
Advancement Act of 2007. I yield myself five minutes to 
describe the bill.
    As we learned at the Subcommittee hearing, advances in 
energy storage technologies offer a number of economic, 
environmental, and security benefits, including greater 
efficiency and reliability of the electricity delivery system, 
better integration of renewable energy supplies and less 
reliance on conventional transportation fuels.
    My bill authorizes basic and applied energy storage 
research programs of the Department of Energy which largely 
adopts language from a bill Mr. Hall introduced earlier this 
year. The basic research is authorized at $50 million for each 
fiscal year and applied research is authorized at $80 million 
for each fiscal year.
    In addition, the bill authorizes a program of 
demonstrations of stationary energy storage technologies, with 
goals such as improving security for emergency response 
infrastructure, addressing management of overloaded lines, and 
improving liability of energy supply in rural communities.
    The second demonstration program focuses on advancements in 
storage technologies for vehicles, with additional focus on on-
board energy management and cooling systems, ways to reduce 
manufacturing costs, and integration of vehicles with the 
electricity grid and smart metering technology.
    Finally H.R. 3776 includes a 50/50 federal, non-federal 
cost arrangement for both stationary and vehicular 
demonstration programs.
    I believe this is a good bill because it authorizes 
important research and development programs on energy storage 
technologies and expands on this research to demonstrate 
promising storage technologies which have potential to 
significantly change how we manage our energy consumption while 
diversifying our energy supplies. And I ask for your support on 
its passage.
    I now recognize Mr. Hall to present any remarks that he 
might have on the bill.
    Mr. Hall. I can't find what they have written for me to 
say.
    Chairman Gordon. Well, that was a very good summary.
    Does anyone else wish to be recognized?
    Mr. McNerney.
    Mr. McNerney. Thank you, Mr. Chairman. I just want to say 
that I see this as a very important part of our energy future. 
We need to do a couple of things here. We need to break our 
dependence on foreign oil, and we need to develop new sources 
of energy. We need to cut down greenhouse gas emissions, and 
this will help us in all three of those endeavors.
    So I give strong support for this bill, and I urge my 
colleagues to do the same.
    Chairman Gordon. Would anyone else like to be recognized?
    I will say for the ones of you that were not at the 
hearing, this really is great potential, and I am excited that 
we can be a part of this.
    Also, that we are getting this out early enough, and I know 
that we have pressed staff on both sides, but we are getting 
this out early enough that I think it could be part of an 
energy bill later on, and it will be a very good part of that.
    So I ask unanimous consent that the bill is considered as 
read and open to amendment at any point and that the Members 
proceed with the amendments in the order of the roster.
    Without objection, so ordered.
    The first amendment on the roster is the Chairman's 
amendment offered by the Chair. The Clerk will report the 
amendment.
    The Clerk. Amendment to H.R. 3776 offered by Mr. Gordon of 
Tennessee.
    Chairman Gordon. I ask unanimous consent to dispense with 
the reading.
    Without objection, so ordered.
    I recognize myself for five minutes to explain the 
amendment.
    My amendment makes a number of technical changes that 
includes some additional definitions to clarify the bill. For 
example, the amendment broadens the purpose section of the bill 
so that it more accurately reflects the full scope of the bill. 
In carrying out the research activities in the bill, the 
Department is instructed to fund work with industry and 
academia, in addition to work in the National labs.
    The amendment also strikes a specific number of 
demonstration projects in Section 6 as suggested by the 
Department of Energy, leaving the number of projects carried 
out at the discretion of the Secretary of Energy. In addition, 
the amendment creates a research program focused on secondary 
applications and disposal of used batteries from electric 
vehicles.
    The amendment also adds a new section to assure that the 
Secretary coordinates the Department's activities under this 
bill with other relevant Department and federal research 
programs. It requires a merit review process in accordance with 
the 2005 Energy Policy Act.
    Finally, the amendment specifically authorizes $30 million 
for both demonstration programs and again, I would like to 
thank Mr. Hall, Ms. Biggert, Mr. Inglis, and their staffs for 
work on this amendment, as I do believe passage makes H.R. 3776 
a better bill and urge my colleagues to support this amendment.
    Is there further discussion on the amendment?
    Mr. Hall. Mr. Chairman.
    Chairman Gordon. Yes. Mr. Hall is recognized.
    Mr. Hall. I certainly see the Manager's amendment strives 
to make improvements as you have pointed out, and we support 
these improvements.
    Chairman Gordon. Thank you, Mr. Hall. Let me once again say 
your earlier work was a great help in the base product here, 
and this, if anything, this clearly is a very much of a joint 
bipartisan bill, and I appreciate the way our staffs have 
worked together on it.
    Is there anyone else have any comments?
    If no, the vote occurs on the amendment. All in favor, say 
aye. Those opposed, no. The ayes have it. The amendment is 
agreed to.
    The second amendment on the roster is offered by the 
gentleman from South Carolina, Mr. Inglis. Are you prepared to 
proceed? Mr. Inglis is well represented, so Ms. Biggert, are 
you ready to proceed?
    The Clerk will report the amendment.
    The Clerk. Amendment to H.R. 3776 offered by Mr. Inglis of 
South Carolina and Ms. Biggert of Illinois.
    Chairman Gordon. I ask unanimous consent to dispense with 
the reading.
    Without objection, so ordered.
    The gentlelady is recognized for five minutes to explain 
her amendment.
    The staff will make a note of that. Larry, we need to get 
that fixed. Thanks.
    Ms. Biggert. Thank you, Mr. Chairman, and thank you for 
working with Mr. Inglis and me on this amendment.
    As I mentioned at the Subcommittee markup of this bill last 
week, I asked scientists at Argonne National Lab to review an 
early draft of this bill, and they pointed out that hydrogen 
can be an efficient energy storage medium just like compressed 
air or flywheels. Solar wind and renewables could be used to 
produce hydrogen through electrolysis, hydrogen that is later 
used by fuel cells to produce electricity.
    Based on their recommendation this amendment would enable 
the Department of Energy to support research related to the use 
of hydrogen as an energy storage medium through the Applied 
Energy Storage Research Program created in Section 5 of this 
bill.
    At the same time we have made sure this research is focused 
on hydrogen as an energy storage medium and doesn't duplicate 
work already underway as part of the Department's Hydrogen and 
Fuel Cell Programs. Hydrogen has so much potential to not only 
transform how we produce and use energy but also how we store 
energy.
    This amendment recognizes that potential and makes an 
investment in the research and development needed to realize 
that potential.
    If we can develop technologies to safely, efficiently, and 
economically store energy so much of our future energy demand 
could be met without expanding energy supplies or investing in 
new energy infrastructure, and I want, again, I want to thank 
the Chairman for supporting this amendment.
    I also want to commend Ranking Member Hall for the energy 
storage provisions in his Energy for America Bill, which served 
as a basis for many of the provisions in this bill before us 
today.
    And finally, the Ranking Member of the Energy and 
Environmental Subcommittee, Mr. Inglis, I am sorry that he is 
not here, because I know he would, he has a lot to say about 
hydrogen, and but we both share a strong interest in hydrogen 
and energy research, and I enjoyed working with him on this 
amendment.
    So I would yield back the balance of my time at this time.
    Chairman Gordon. Thank you. Is there further discussion on 
the amendment?
    If no, the vote occurs on the amendment. All in favor, say 
aye. Opposed, no. The ayes have it. The amendment is agreed to.
    Are there other amendments? If no, then the vote is on the 
bill, H.R. 3776, as amended. All those in favor, say aye. 
Opposed, no. In the opinion of the Chair the ayes have it.
    I now recognize Mr. Hall for a motion.
    Mr. Hall. I move that the Committee favorably report H.R. 
3776 as amended to the House with the recommendation the bill 
is amended. Furthermore, I move that the staff be instructed to 
prepare the legislative report, make necessary technical and 
conforming changes, and that the Chairman take all necessary 
steps to bring the bill before the House for consideration.
    Chairman Gordon. The question on the motion to report the 
bill favorably, those in favor of the motion will signify by 
saying aye. Opposed, no. The ayes have it, and the bill is 
favorably reported.
    Without objection the motion to reconsider is laid upon the 
table. The Members will have two subsequent calendar days in 
which to submit supplemental, Minority, or additional views on 
the measure ending Friday, October the 19th at 9:00 a.m.
    I move pursuant to Clause 1 of Rule 22 of the Rules of the 
House of Representatives that the Committee authorize the 
Chairman to offer such motions as may be necessary in the House 
to adopt and pass H.R. 3776, the Energy Storage Technology 
Advancement Act of 2007, as amended.
    Without objection, so ordered.
    Before we take up the next amendment, with that unanimous 
consent I would like to just take a moment, because since we 
have a good number of folks here, the first part of January we 
intend to have a fact-finding trip to the South Pole. I want to 
go ahead and give you notes because sometimes this stuff gets 
through the mail a little bit late.
    For those of you that haven't been there, it is really, I 
think, one of the most memorable experiences and important 
experiences for this committee. Because there have been a 
number of folks that have expressed interest, we are limited to 
only ten bunks, if you will, there at the South Pole. Spouses 
will be able to go, but they will have to stay in New Zealand 
at that time, and there will be some other reviews along the 
way there.
    And so because we are limited, we have decided to give 
first priority to those folks that have not been, and I feel 
like the Chairman should be a leader in that. I have been, 
although some time ago, as I told you. Those were, I guess, ten 
memorable days with Mr. Sensenbrenner.
    Mr. Hall. Mr. Chairman.
    Chairman Gordon. Yes, Mr. Hall.
    Mr. Hall. I always wanted to go but not much, and I yield 
my two bunks to Mr. Sensenbrenner.
    Chairman Gordon. Well, since I have been, then I am going 
to be on the wait list, and Mr. Costello will lead that 
delegation. We are trying to get coordinated with the January 
schedule, which I know we are all interested in.
    Well, I have some insight which doesn't mean that it is 
accurate, but it is likely that we are going to come back in, I 
think it is something like the 16th or something. I believe it 
is the 22nd, Tuesday is the State of the Union, the Monday 
before that is Martin Luther King Day, so you know, it puts us 
into that previous week. And so hopefully it will be the latter 
part of the week.
    With that said, we also have limitations on when they can 
take us down there. Our limitation puts us in that first week 
in January, which means that there will probably be a travel 
time over the New Year's Eve, just for you to know. We 
hopefully will get this out to you very specifically very soon, 
but I wanted to give you some heads up on that.
    Mr. Chandler is always a great resource in suggesting 
places for this Committee to go. Let me say to all of you that 
if you have any recommendations or suggestions, what we are, 
this will be a longer trip, and again, for your purposes, it 
takes, you know, 10 days to 12 or 13 days. We have been trying 
to look at those things where you can take long weekends after 
votes on Thursday, back, you know, on a Monday or Tuesday, 
which better allows us to get a plane where some of the other 
committees can take, you know, the August recess. And if you do 
that, you wait very long to find out whether you can go, and it 
is hard to make plans.
    And I guess Mr. Neugebauer, just to follow up, from what I 
know on scheduling as we all know we will probably be in 
session in December, but it looks like it is going to be a 
Tuesday night to Thursday afternoon, only trying to do 
conferences, reports, and appropriations.
    So that will be somewhat, and hopefully, you know, maybe 
two weeks. I don't know. That is a whole other matter. If you 
act right, maybe we can get out sooner.
    That is the information that I have. Does anyone have 
anything they want to relate since we are here in family before 
we move to the next bill?
    Mr. Lampson.
    Mr. Lampson. Mr. Chairman, you had also mentioned some time 
ago the possibility of a Science Committee trip to the global 
warming meeting that is going to be held in December. You want 
to say something about it and let people be thinking?
    Chairman Gordon. Yes. There will be a follow up to global 
warming hearing. It is going to be in Bali. I think Mr. 
Sensenbrenner is making plans to go. There, I think there is 
going to be a leadership plane or two, but we could make 
arrangements for individuals to go. But let me tell you, they 
are expecting 10,000 people. Now, I have never been to Bali, 
but it would seem to me that 10,000 people is a lot of folks 
over there, so that if you have an interest in this, you need 
to let us know, and your office has received at least one or 
two communications. You need to let us know pretty quickly, and 
again, we are somewhat hostage to how long we are going to be 
in session.
    Let us see. Can someone tell me when that first date is? 
Okay. The first week, Mr. Sensenbrenner says that it will be, I 
guess, the first and second week of December, the first week is 
just sort of the rigmarole, and the second week is when you 
really get into some of the substance. So it is a little bit 
awkward in terms of timing, but we will sort of work with 
anybody on that.
    Mr. Akin. Mr. Chairman.
    Chairman Gordon. Yes, Mr. Akin.
    Mr. Akin. Just as a little advertisement, on having been on 
a fair number of different codels, the very best one I was ever 
on was the South Pole trip. So if anybody has not done it, 
there is a bunch of other things to go along with just going to 
the South Pole and the overall package. If you have any 
interest in earth science or science at all, it is just a 
fantastic trip.
    Chairman Gordon. Yes. It really opens your eyes. I mean, it 
is, you will see things you have never seen, and they are very 
relevant to this committee's jurisdiction.
    Let me thank the Members for being here today. This is a 
good showing. These are two good bills, and they are really 
going to make us relevant in this, our Energy Bill, and I hope 
that all of you will go home and take credit for these, because 
these are well thought-out bipartisan bills. And now the 
Committee, unless there is, anyone else has any remarks, 
suggestions for today. If not, the Committee concludes.
    [Whereupon, at 10:35 a.m., the Committee was adjourned.]
                               Appendix:

                              ----------                              


              Subcommittee Markup Report, Amendment Roster





                 SUBCOMMITTEE ON ENERGY AND ENVIRONMENT
                    REPORT FROM SUBCOMMITTEE MARKUP
                            OCTOBER 10, 2007

    H.R. 3776, the Energy Storage Technology Advancement Act of 2007

I. Purpose

    The purpose of this bill is to provide for research, development, 
and demonstration programs to accelerate the development of advanced 
energy storage systems for vehicular, stationary, and electricity 
transmission and distribution applications, and support the ability of 
the United States to remain globally competitive in this field.

II. Background and Need for Legislation

Stationary Storage Technologies

    Today, electricity is generated as it is used, with very little 
being stored for later use. Though this system has worked for decades, 
it is not an efficient means of managing the electric power supply. 
Demand for electric power varies greatly throughout the day and 
throughout the year. Therefore, the electricity supply system must be 
sized to generate and transmit enough electricity to meet the maximum 
anticipated demand, or peak demand. The inefficiency of this system 
becomes evident when considering that peak electricity demand for any 
given year could be for a very short period of time--a few days or even 
hours--leaving considerable excess generation capacity. Rather than 
maintain massive generation systems that are designed around a short-
lived peak demand, energy storage technologies would provide a means to 
stockpile energy for later use, and consequently reduce the need to 
generate more power during times of peak electricity demand. Optimally, 
energy storage systems could be charged at night during off-peak 
consumption hours, and then discharge the energy during times of peak 
demand. Using existing generation capacity at night time to store 
energy for use during the day is more efficient, cheaper, helps to 
equalize the demand load, and ease the strain on the electricity grid.
    The expanded use of energy storage would also help to avoid capital 
intensive upgrades of transmission and distribution facilities, as well 
as reduce the need to run certain generation plants that may have 
higher operating costs and/or have a poor emissions profile. Energy 
storage also can improve electricity reliability and energy security by 
providing an alternate source of power during an outage of the primary 
power source.
    Advances in energy storage technologies are often regarded as key 
to increasing the reliability and widespread use of many renewable 
energy technologies. Renewables such as wind and solar produce 
electricity only when wind speeds are high enough and sunlight is 
bright enough to generate power. Strategically distributed storage 
would permit electricity from these renewable sources to be stored and 
used during times of high demand or low resource availability.
    Smaller energy storage systems may also be deployed in distributed 
stationary applications, such as residences or neighborhoods, in order 
to supply back-up energy and level the load on the electric grid. 
Advances in smaller energy storage systems, specifically batteries, may 
also allow for entirely new vehicles such as plug-in hybrid vehicle 
technologies to enter the mass market.

Energy Storage Technologies for Vehicles

    Concerns about energy independence and climate change have caused a 
renewed interest in enhancing the role of electricity in the 
transportation sector. The benefits of this have been seen to some 
degree in the rise in popularity of Hybrid Electric Vehicles (HEV) 
because of their high fuel efficiency and lower emissions. Switching 
vehicles' primary energy source from petroleum-based fuels to electric 
batteries reduces overall consumption of conventional liquid fuels. 
Additionally, several recent studies have shown that, regardless of its 
source, electricity used as a vehicle fuel reduces greenhouse gas 
emissions. However, greater electrification of the vehicles sector is 
constrained by the technological limits of energy storage technologies 
used in conventional hybrids, specifically the Nickel Metal Hydride 
(NiMH) batteries.
    Plug-In Hybrid Electric Vehicles (PHEV's) are seen by some as the 
next logical step towards greater electrification of the transportation 
sector, and the eventual move towards market acceptance of all-electric 
drive vehicles. PHEV's allow for electricity to be used as an 
additional or even primary source of power for a vehicle, with a 
secondary role for the gasoline engine as a back-up power system. 
Advocates claim that 100 miles per gallon would be reasonable for 
PHEV's, approximately twice the gasoline mileage of today's hybrids. 
However, current NiMH batteries for conventional hybrids are not 
optimal for this application.
    While significant technological advances are still likely in NiMH, 
and even the ubiquitous Lead Acid batteries, many in the industry 
believe the future of PHEV's depends on breakthroughs in new battery 
technologies, such as the lithium ion (Li-Ion) batteries. To expand the 
use of electricity in the vehicles sector batteries must be smaller, 
lighter, more powerful, higher energy and cheaper--all of which require 
considerable research and development. Achieving these needed 
breakthroughs will require meaningful federal support and public-
private partnerships with a range of stakeholders.
    Enhanced federal research and development of advanced energy 
storage technologies offers a number of economic, environmental and 
security benefits including greater efficiency and reliability in the 
electricity delivery system, better integration of renewable energy 
supplies into the electric grid, and less reliance on conventional 
transportation fuels. However, significant challenges remain in 
developing these technologies and establishing a viable domestic supply 
chain. H.R. 3776 authorizes the Department of Energy to conduct 
research and development programs on energy storage technologies, and 
expands this research to the demonstration of promising storage 
technologies and the manufacturing methods to allow for their 
production in the U.S.

III. Subcommittee Actions

    The Energy and Environment Subcommittee held a hearing on 
Wednesday, October 3, 2007 to hear testimony on the discussion draft of 
the bill from the following witnesses:

Panel One:

     Ms. Patricia Hoffman, Deputy Director, Research and 
            Development, U.S. Department of Energy Office of 
            Electricity Delivery and Energy Reliability

     Mr. Brad Roberts, Chairman, Electricity Storage 
            Association

     Mr. Larry Dickerman, Director, Distribution Engineering 
            Services for American Electric Power

     Mr. Tom Key, Technical Leader, Renewable and Distributed 
            Generations, Electric Power Research Institute

Panel Two:

     Ms. Lynda Ziegler, Sr. Vice President for Customer 
            Services, Southern California Edison

     Ms. Denise Gray, Director, Hybrid Energy Storage Systems, 
            General Motors

     Ms. Mary Ann Wright, Vice President and General Manager, 
            Hybrid Systems for Johnson Controls, Director of Advanced 
            Power Solutions, a Johnson Controls and Saft joint venture

    On October 9, 2007, Representative Bart Gordon introduced H.R. 
3776, the Energy Storage Technology Advancement Act of 2007.
    The Subcommittee on Energy and Environment met to consider H.R. 
3776 on October 10, 2007, with no amendments to the bill.
    Mr. McNerney moved that the Subcommittee favorably report the bill, 
H.R. 3776, to the Full Committee on Science and Technology. The motion 
was agreed to by a voice vote.

IV. Summary of Major Provisions of the Bill

    H.R. 3776 authorizes $130 million for basic and applied energy 
storage research programs at the Department of Energy for each fiscal 
year 2009 through 2014, and sets guidelines for activities of the 
programs. The basic research is authorized at $50 million for each 
fiscal year and the applied research is authorized at $80 million for 
each fiscal year. In addition, the bill authorizes the Secretary of 
Energy to carry out six demonstrations of stationary storage 
technologies aimed at accomplishing goals such as improving security 
for emergency response infrastructure, addressing management of 
overloaded lines and improving reliability of the electricity supply in 
rural communities. The second demonstration program focuses on the 
application of energy storage technologies in the vehicles sector. Such 
demonstration efforts will seek to advance on-board energy management 
and cooling systems, reduce manufacturing costs and integrate 
transportation technologies with the electricity distribution system 
and smart metering technology. Finally, H.R. 3776 includes a 50/50 
federal and non-federal cost share arrangement for both the stationary 
and vehicular demonstration programs.

V. Section-by-Section Analysis of the Bill, as reported by the 
                    Subcommittee

SECTION 1. SHORT TITLE

    ``Energy Storage Technology Advancement Act of 2007''

SEC. 2. DEFINITIONS

SEC. 3. ENERGY STORAGE SYSTEM PROGRAM

    Authorizes program for research, development and demonstration of 
energy storage systems to be carried out by the Secretary of Energy.

SEC. 4. BASIC RESEARCH PROGRAM

    Authorizes basic research in areas such as materials, electrolytes, 
and thermal behavior. $50 million authorized for each of the fiscal 
years 2009-2014.

SEC. 5. APPLIED RESEARCH PROGRAM

    Authorizes applied research in areas such as batteries, other 
energy storage technologies, and new manufacturing technologies for 
these devices. $80 million authorized for each of the fiscal years 
2009-2014.

SEC. 6. ENERGY STORAGE SYSTEMS DEMONSTRATIONS

    Authorizes six large scale demonstrations of electricity storage to 
meet specific goals such as integrating renewable energy technologies 
into electric power supply. Such sums authorized for each of the fiscal 
years 2009-2014.

SEC. 7. TRANSPORTATION ENERGY STORAGE DEMONSTRATIONS

    Authorizes demonstrations in areas such as advanced vehicle battery 
technologies and related components, and new manufacturing technologies 
for these devices. Such sums authorized for each of the fiscal years 
2009-2014.

SEC. 8. COST SHARING

    Requires cost sharing to be carried out in accordance with EPACT 
2005 section 988.


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