[House Report 116-472]
[From the U.S. Government Publishing Office]


116th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     116-472

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



 
                  BETTER ENERGY STORAGE TECHNOLOGY ACT

                                _______
                                

 August 7, 2020.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

    Ms. Johnson of Texas, from the Committee on Science, Space, and 
                  Technology, submitted the following

                              R E P O R T

                        [To accompany H.R. 2986]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Science, Space, and Technology, to whom 
was referred the bill (H.R.2986) to amend the United States 
Energy Storage Competitiveness Act of 2007 to establish a 
research, development, and demonstration program for grid-scale 
energy storage systems, and for other purposes, having 
considered the same, reports favorably thereon with an 
amendment and recommends that the bill as amended do pass.

                                CONTENTS

                                                                   Page
   I. Amendment.......................................................2
  II. Purpose of the Bill.............................................6
 III. Background and Need for the Legislation.........................7
  IV. Committee Hearings..............................................7
   V. Committee Consideration and Votes...............................8
  VI. Summary of Major Provisions of the Bill.........................8
 VII. Section-By-Section Analysis (By Title and Section)..............9
VIII. Committee Views.................................................9
  IX. Cost Estimate...................................................9
   X. Congressional Budget Office Cost Estimate......................10
  XI. Compliance with Public Law 104-4 (Unfunded Mandates)...........11
 XII. Committee Oversight Findings and Recommendations...............11
XIII. Statement on General Performance Goals and Objectives..........11
 XIV. Federal Advisory Committee Statement...........................12
  XV. Duplication of Federal Programs................................12
 XVI. Earmark Identification.........................................12
XVII. Applicability to the Legislative Branch........................12
XVIII.Statement on Preemption of State, Local, or Tribal Law.........12

 XIX. Changes in Existing Law Made by the Bill, As Reported..........12
  XX. Proceedings of Subcommittee Markup.............................25
 XXI. Proceedings of Full Committee Markup...........................63

                              I. Amendment

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Better Energy Storage Technology Act'' 
or the ``BEST Act''.

SEC. 2. ENERGY STORAGE.

  (a) In General.--The United States Energy Storage Competitiveness Act 
of 2007 (42 U.S.C. 17231) is amended--
          (1) by redesignating subsections (l) through (p) as 
        subsections (p) through (t), respectively; and
          (2) by inserting after subsection (k) the following:
  ``(l) Energy Storage Research and Development Program.--
          ``(1) In general.--Not later than 180 days after the date of 
        enactment of the Better Energy Storage Technology Act, the 
        Secretary shall establish a research and development program 
        for energy storage systems, components, and materials across 
        multiple program offices of the Department.
          ``(2) Requirements.--In carrying out the program under 
        paragraph (1), the Secretary shall--
                  ``(A) coordinate across all relevant program offices 
                throughout the Department, including the Office of 
                Electricity, the Office of Energy Efficiency and 
                Renewable Energy, the Advanced Research Projects Agency 
                - Energy, the Office of Science, and the Office of 
                Cybersecurity, Energy Security, and Emergency Response;
                  ``(B) adopt long-term cost, performance, and 
                demonstration targets for different types of energy 
                storage systems and for use in a variety of regions, 
                including rural areas;
                  ``(C) incorporate considerations of sustainability, 
                sourcing, recycling, reuse, and disposal of materials, 
                including critical elements, in the design of energy 
                storage systems;
                  ``(D) identify energy storage duration needs;
                  ``(E) analyze the need for various types of energy 
                storage to improve electric grid resilience and 
                reliability; and
                  ``(F) support research and development of advanced 
                manufacturing technologies that have the potential to 
                improve United States competitiveness in energy storage 
                manufacturing.
          ``(3) Strategic plan.--
                  ``(A) In general.--No later than 180 days after the 
                date of enactment of the Better Energy Storage 
                Technology Act, the Secretary shall develop a 5-year 
                strategic plan identifying research, development, 
                demonstration, and commercial application goals for the 
                program in accordance with this section. The Secretary 
                shall submit this plan to the Committee on Science, 
                Space, and Technology of the House of Representatives 
                and the Committee on Energy and Natural Resources of 
                the Senate.
                  ``(B) Contents.--The strategic plan submitted under 
                subparagraph (A) shall--
                          ``(i) identify programs at the Department 
                        related to energy storage systems that support 
                        the research and development activities 
                        described in paragraph (4), and the 
                        demonstration projects under subsection (m); 
                        and
                          ``(ii) include timelines for the 
                        accomplishment of goals developed under the 
                        plan.
                  ``(C) Updates to plan.--Not less frequently than once 
                every 3 years, the Secretary shall submit to the 
                Committee on Science, Space, and Technology of the 
                House of Representatives and the Committee on Energy 
                and Natural Resources of the Senate an updated version 
                of the plan under subparagraph (A).
          ``(4) Research and development.--In carrying out the program 
        established in paragraph (1), the Secretary shall focus on 
        developing--
                  ``(A) energy storage systems that can store energy 
                and deliver stored energy for a minimum of 6 hours in 
                duration to balance electricity needs over the course 
                of a single day;
                  ``(B) long-duration energy storage systems that can 
                store energy and deliver stored energy for 10 to 100 
                hours in duration; and
                  ``(C) energy storage systems that can store energy 
                and deliver stored energy over several months and 
                address seasonal scale variations in supply and demand.
          ``(5) Testing and validation.--The Secretary shall support 
        the standardized testing and validation of energy storage 
        systems under the program through collaboration with 1 or more 
        National Laboratories, including the development of 
        methodologies to independently validate energy storage 
        technologies by--
                  ``(A) performance of energy storage systems on the 
                electric grid, including--
                          ``(i) when appropriate, testing of 
                        application-driven charge and discharge 
                        protocols;
                          ``(ii) evaluation of power capacity and 
                        energy output;
                          ``(iii) degradation of the energy storage 
                        systems from cycling and aging;
                          ``(iv) safety; and
                          ``(v) reliability testing under grid duty 
                        cycles; and
                  ``(B) prediction of lifetime metrics.
          ``(6) Coordination.--In carrying out this subsection, the 
        Secretary shall coordinate with--
                  ``(A) programs and offices that aim to increase 
                domestic manufacturing and production of energy storage 
                systems, such as those within the Department and within 
                the National Institute of Standards and Technology;
                  ``(B) other Federal agencies that are carrying out 
                initiatives to increase energy reliability through the 
                development of energy storage systems, including the 
                Department of Defense; and
                  ``(C) other stakeholders working to advance the 
                development of commercially viable energy storage 
                systems.
          ``(7) Technical assistance program.--
                  ``(A) In general.--The Secretary shall provide 
                technical assistance for commercial application of 
                energy storage technologies to eligible entities.
                  ``(B) Technical assistance.--Technical assistance 
                provided under this paragraph--
                          ``(i) may include assistance with--
                                  ``(I) assessment of relevant 
                                technical and geographic 
                                characteristics;
                                  ``(II) interconnection of electricity 
                                storage systems with the electric grid; 
                                and
                                  ``(III) engineering design; and
                          ``(ii) may not include assistance relating to 
                        modification of Federal, State, or local 
                        regulations or policies with respect to energy 
                        storage systems.
                  ``(C) Applications.--
                          ``(i) In general.--The Secretary shall seek 
                        applications for technical assistance and 
                        grants under the program--
                                  ``(I) on a competitive basis; and
                                  ``(II) on a periodic basis, but not 
                                less frequently than once every 12 
                                months.
                          ``(ii) Priorities.--In selecting eligible 
                        entities for technical assistance for 
                        commercial applications, the Secretary shall 
                        give priority to eligible entities with 
                        projects that have the greatest potential for--
                                  ``(I) strengthening the reliability 
                                and resilience of the electric grid to 
                                the impact of extreme weather events, 
                                power grid failures, and interruptions 
                                in supply of electricity;
                                  ``(II) reducing the cost of energy 
                                storage systems; or
                                  ``(III) facilitating the use of net 
                                zero emission energy resources.
          ``(8) Program defined.--In this subsection, the term 
        `program' means the research and development program 
        established under paragraph (1).''.
  (b) Energy Storage Demonstration Program.--The United States Energy 
Storage Competitiveness Act of 2007 (42 U.S.C. 17231), as amended, is 
further amended by inserting after subsection (l), as added by 
subsection (a), the following:
  ``(m) Energy Storage Demonstration Program.--
          ``(1) Establishment.--The Secretary shall establish a 
        competitive grant program for the demonstration of energy 
        storage systems, as identified by the Secretary, that use 
        either--
                  ``(A) a single system; or
                  ``(B) aggregations of multiple systems.
          ``(2) Eligibility.--Entities eligible to receive a grant 
        under paragraph (1) include--
                  ``(A) a State, territory, or possession of the United 
                States;
                  ``(B) a State energy office;
                  ``(C) a tribal organization (as defined in section 
                3765 of title 38, United States Code);
                  ``(D) an institution of higher education (as defined 
                in section 101 of the Higher Education Act of 1965 (20 
                U.S.C. 1001));
                  ``(E) an electric utility, including--
                          ``(i) a rural electric cooperative;
                          ``(ii) a political subdivision of a State, 
                        such as a municipally owned electric utility, 
                        or any agency, authority, corporation, or 
                        instrumentality of one or more State political 
                        subdivisions; and
                          ``(iii) an investor-owned utility; and
                  ``(F) a private company, such as but not limited to 
                an energy storage company.
          ``(3) Selection requirements.--In selecting eligible entities 
        to receive a grant under this section, the Secretary shall, to 
        the maximum extent practicable--
                  ``(A) ensure regional diversity among eligible 
                entities that receive the grants, including 
                participation by rural States and small States;
                  ``(B) ensure that specific projects selected for 
                grants--
                          ``(i) expand on the existing technology 
                        demonstration programs of the Department of 
                        Energy; and
                          ``(ii) are designed to achieve one or more of 
                        the objectives described in paragraph (4);
                  ``(C) give consideration to proposals from eligible 
                entities for securing energy storage through 
                competitive procurement or contract for service; and
                  ``(D) prioritize projects that leverage matching 
                funds from non-Federal sources.
          ``(4) Objectives.--Each demonstration project selected for a 
        grant under paragraph (1) shall include one or more of the 
        following objectives:
                  ``(A) To improve the security of critical 
                infrastructure and emergency response systems.
                  ``(B) To improve the reliability of the transmission 
                and distribution system, particularly in rural areas, 
                including high energy cost rural areas.
                  ``(C) To optimize transmission or distribution system 
                operation and power quality to defer or avoid costs of 
                replacing or upgrading electric grid infrastructure, 
                including transformers and substations.
                  ``(D) To supply energy at peak periods of demand on 
                the electric grid or during periods of significant 
                variation of electric grid supply or demand.
                  ``(E) To reduce peak loads of homes and businesses, 
                particularly to defer or avoid investments in new 
                electric grid capacity.
                  ``(F) To advance power conversion systems to make the 
                systems smarter, more efficient, able to communicate 
                with other inverters, and able to control voltage.
                  ``(G) To provide ancillary services for grid 
                stability and management.
                  ``(H) To integrate one or more energy resources, 
                including renewable energy resources, at the source or 
                away from the source.
                  ``(I) To increase the feasibility of microgrids or 
                islanding.
                  ``(J) To enable the use of stored energy in forms 
                other than electricity to support the natural gas 
                system and other industrial processes.
          ``(5) Restriction on use of funds.--Any eligible entity that 
        receives a grant under paragraph (1) may only use the grant to 
        fund programs relating to the demonstration of energy storage 
        systems connected to the electric grid, or that provides bi-
        directional energy storage capable of providing back-up energy 
        in the event of grid outages, including energy storage systems 
        sited behind a customer revenue meter.
          ``(6) Cost sharing.--In carrying out this section, the 
        Secretary shall require cost sharing under this section in 
        accordance with section 988 of the Energy Policy Act of 2005 
        (42 U.S.C. 16352).
          ``(7) No project ownership interest.--The United States shall 
        hold no equity or other ownership interest in an energy storage 
        system for which a grant is provided under paragraph (1).
          ``(8) Rules and procedures; awarding of grants.--
                  ``(A) Rules and procedures.--Not later than 180 days 
                after the date of enactment of the Better Energy 
                Storage Technology Act, the Secretary shall adopt rules 
                and procedures for carrying out the grant program under 
                subsection (m).
                  ``(B) Awarding of grants.--Not later than 1 year 
                after the date on which the rules and procedures under 
                paragraph (A) are established, the Secretary shall 
                award the initial grants provided under this section.
          ``(9) Reports.--The Secretary shall submit to Congress and 
        make publicly available--
                  ``(A) not less frequently than once every 2 years for 
                the duration of the grant program under subsection (m), 
                a report describing the performance of the grant 
                program, including a synthesis and analysis of any 
                information the Secretary requires grant recipients to 
                provide to the Secretary as a condition of receiving a 
                grant; and
                  ``(B) on termination of the grant program under 
                subsection (m), an assessment of the success of, and 
                education provided by, the measures carried out by 
                grant recipients under the grant program.
          ``(10) Program defined.--In this subsection, the term 
        `program' means the demonstration program established under 
        paragraph (1).''.
  (c) Authorization of Appropriations.--The United States Energy 
Storage Competitiveness Act of 2007 (42 U.S.C. 17231) is amended, in 
subsection (t) (as redesignated by subsection (a)(1))--
          (1) in paragraph (5), by striking ``and'' at the end;
          (2) in paragraph (6), by striking the period at the end and 
        inserting ``;''; and
          (3) by adding at the end the following:
          ``(7) the research and development program for energy storage 
        systems under subsection (l)--
                  ``(A) $62,000,000 for fiscal year 2020;
                  ``(B) $ 65,100,000 for fiscal year 2021;
                  ``(C) $ 68,355,000 for fiscal year 2022;
                  ``(D) $ 71,773,000 for fiscal year 2023; and
                  ``(E) $ 75,362,000 for fiscal year 2024; and
          ``(8) the demonstration program for energy storage systems 
        under subsection (m), $50,000,000 for each of fiscal years 2020 
        through 2024.''.

SEC. 3. CRITICAL MINERAL RECYCLING AND REUSE RESEARCH, DEVELOPMENT, AND 
                    DEMONSTRATION PROGRAM.

  The United States Energy Storage Competitiveness Act of 2007 (42 
U.S.C. 17231) is amended by inserting after subsection (m), as added by 
section 2(b) of this Act, the following:
  ``(n) Critical Mineral Recycling and Reuse Research, Development, and 
Demonstration Program.--
          ``(1) Definitions.--In this subsection:
                  ``(A) Critical mineral.--The term `critical mineral' 
                means any of a class of chemical elements that have a 
                high risk of a supply disruption and are critical to 
                one or more new, energy-related technologies such that 
                a shortage of such element would significantly inhibit 
                large-scale deployment of technologies that store 
                energy.
                  ``(B) Recycling.--The term `recycling' means the 
                separation of critical minerals embedded within an 
                energy storage system through physical or chemical 
                means and reuse of those separated critical minerals in 
                other technologies.
          ``(2) Establishment.--Not later than 180 days after the date 
        of enactment of the BEST Act, the Secretary shall establish a 
        research, development, and demonstration program of recycling 
        of energy storage systems containing critical minerals.
          ``(3) Research, development, and demonstration.--In carrying 
        out the program, the Secretary may focus research, development, 
        and demonstration activities on--
                  ``(A) technologies, process improvements, and design 
                optimizations that facilitate and promote recycling, 
                including--
                          ``(i) improvement of efficiency and rates of 
                        collection of products and scrap containing 
                        critical minerals from consumer, industrial, 
                        and other waste streams;
                          ``(ii) separation and sorting of component 
                        materials in energy storage systems containing 
                        critical minerals, including improving the 
                        recyclability of such energy storage systems;
                          ``(iii) safe storage of energy storage 
                        systems, including reducing fire risk;
                          ``(iv) safe transportation of energy storage 
                        systems and components; and
                          ``(v) development of technologies to advance 
                        energy storage recycling facility 
                        infrastructure, including integrated recycling 
                        facilities that can process multiple materials;
                  ``(B) research and development of technologies that 
                mitigate emissions and environmental impacts that arise 
                from recycling, including disposal of toxic reagents 
                and byproducts related to recycling processes;
                  ``(C) research and development of technologies to 
                enable recycling of critical materials from batteries 
                in electric vehicles;
                  ``(D) research on and analysis of non-technical 
                barriers to improving the transportation of energy 
                storage systems containing critical minerals; and
                  ``(E) research on technologies and methods to enable 
                the safe disposal of energy storage systems containing 
                critical minerals, including waste materials and 
                components recovered during the recycling process.
          ``(4) Report to congress.--Not later than 2 years after the 
        date of enactment of the BEST Act, and every 3 years 
        thereafter, the Secretary shall submit to the Committee on 
        Science, Space, and Technology of the House of Representatives 
        and the Committee on Energy and Natural Resources of the Senate 
        a report summarizing the activities, findings, and progress of 
        the program.
  ``(o) Definitions.--For purposes of subsections (l), (m), and (n), 
the following definitions apply:
          ``(1) Energy storage system.--The term `energy storage 
        system' means a system, equipment, facility, or technology 
        relating to the electric grid that--
                  ``(A) is capable of absorbing energy, storing such 
                energy for a period of time, and dispatching such 
                energy after storage; and
                  ``(B) uses a mechanical, electrical, chemical, 
                electrochemical, or thermal process to store such 
                energy, or any other process that the Secretary 
                determines relevant.
          ``(2) Island.--The term `island' means one or more 
        distributed generators or energy storage systems that continues 
        to power a location in the absence of electricity from the 
        electric grid.
          ``(3) Microgrid.--The term `microgrid' means an integrated 
        energy system consisting of inter-connected loads and 
        distributed energy resources, including generators and energy 
        storage systems, within clearly defined electrical boundaries 
        that--
                  ``(A) acts as a single controllable entity with 
                respect to the grid;
                  ``(B) can connect and disconnect from the grid to 
                operate in either grid-connected mode or island-mode; 
                or
                  ``(C) can operate in the absence of the grid.
          ``(4) National laboratory.--The term `national laboratory' 
        has the meaning given the term in section 2 of the Energy 
        Policy Act of 2005 (42 U.S.C. 15801).''.

                        II. Purpose of the Bill

    The purpose of the Better Energy Storage Technology Act 
(H.R. 2986) is to amend the United States Energy Storage 
Competitiveness Act to authorize a cross-cutting, research, 
development, and demonstration program to further the 
development of a variety of energy storage technologies. H.R. 
2986 is sponsored by Mr. Foster and cos-sponsored by Mr. 
Casten, Ms. Herrera Beutler, Mr. Gonzalez, Mr. Fitzpatrick, Mr. 
Welch, Mr. Bacon, Mr. Grijalva, Mr. Crenshaw, Mr. Kennedy, Mr. 
Gallagher, Mr. Lipinski, Mr. Stivers, Ms. Fletcher, Mr. 
McHenry, Mr. Case, Mr. Calvert, Mr. Weber, Ms. Lee, Ms. 
Spanberger, Mr. Katko, Ms. Kuster, Mr. Kind, Mr. Quigley, Ms. 
Lofgren, Mr. Cox, Ms. Norton, Ms. Dingell, Mr. Hime, Ms. 
Haaland, Ms. Luria, Mr. Lewis, Mr. Bluemenauer, Mr. Larsen, Mr. 
Smith, Ms. Stefanik, Mr. Brindsi, Mr. Cohen, Mr. Connolly, Mr. 
Kim, Mr. Schneider, Ms. Beatty, Mr. Scott, Mr. Harder, Mr. 
Suozzi, Mr. Keating, Mr. Meeks, Ms. Napolitano, Chairwoman 
Eddie Bernice Johnson, Ms. Pingree, Mr. Price, Ms. Barragan, 
Mr. Cole, Mr. Fortenberry, Mr. Meuser, Mr. McAdams, Ms. 
Sherrill, Mr. Olson, Mr. DeFazio, Ms. Escobar, Mr. Steil, Mr. 
Soto, Ms. Chu, Mr. Cicilline, Miss Rice, Mr. Khanna, Mr. Pocan, 
Mr. Crist, Mr. Joyce, Mr. Aguilar, Ms. Brownley, Mr. Cooper, 
Mr. Castro, Ms. McMorris Rodgers, Mr. Phillips, Mr. San 
Nicolas, Ms. Bonamici, Mr. Thompson, Ms. Sanchez, Mr. Rose, Ms. 
Watson Coleman, Mr. Golden, Mr. Pappas, Mr. Langevin, Mr. 
Gallego, Ms. Eshoo, Ms. Houlahan, Mr. Doyle, Mr. Bera, Mr. 
Heck, Ms. Hayes, Mr. Amodei, Ms. Jayapal, Ms. Roybal-Allard, 
Mr. Lujan, Mr. Horsford, Mr. Sherman, Mr. Curtis, Ms. Titus, 
Mr. Trone, Mr. Peters, Ms. Craig, and Ms. Stevens.

              III. Background and Need for the Legislation

    The Department of Energy (DOE) supports research on a 
variety of energy storage systems including battery storage at 
the Office of Electricity,\1\ the Office of Science,\2\ and the 
Advanced Research Projects Agency--Energy (ARPA-E);\3\ pumped-
storage hydropower at the Water Power Technologies Office;\4\ 
and geothermal storage at the Geothermal Technologies 
Office,\5\ among others. Energy storage technologies offer a 
variety of benefits, including providing more stability for 
variable renewable energy generation sources and providing a 
variety of other grid services such as frequency regulation, 
voltage control, and load following. According to the 
Congressional Research Service, energy storage systems may be a 
key technology to enabling a future electric grid with low 
greenhouse gas emissions when paired with low-emissions energy 
generation sources.\6\
---------------------------------------------------------------------------
    \1\Energy Storage, Office of Electricity, U.S. Department of 
Energy, https://www.energy.gov/oe/activities/technology-development/
energy-storage.
    \2\Joint Center for Energy Storage Research, Office of Science, 
U.S. Department of Energy, https://www.jcesr.org/.
    \3\Storage, ARPA-E, U.S. Department of Energy, https://arpa-
e.energy.gov/?q=project-tech-areas/storage.
    \4\Pumped-Storage Hydropower, Water Power Technologies Office, U.S. 
Department of Energy, https://www.energy.gov/eere/water/pumped-storage-
hydropower.
    \5\GTO Announces Beyond Batteries Lab Call Selections, Geothermal 
Technologies Office, U.S. Department of Energy, August 28, 2018, 
https://www.energy.gov/eere/geothermal/articles/gto-announces-beyond-
batteries-lab-call-selections.
    \6\Electricity Storage: Applications, Issues, and Technologies, 
Congressional Research Service, Report No. R45980, https://www.crs.gov/
reports/pdf/R45980.
---------------------------------------------------------------------------
    In a 2017 report on electric grid resilience, the National 
Academies noted that energy storage systems could improve the 
resilience of the electric grid and recommended improved 
modeling to account for an electric grid system that includes 
significant storage capacity; consideration of storage 
resources in recovery strategies from power outages; and 
analyses of how electric vehicles might be used to provide 
emergency power for customers.\7\ Other reports have indicated 
the need for a cross-cutting, coordinated research effort at 
the Department to advance energy storage systems, and an 
increased focus on long-duration energy storage.8,9 
The Better Energy Storage Technology Act (H.R. 2986) 
incorporates many of these recommendations by authorizing a 
cross-cutting research, development, demonstration, and 
commercial application program to advance a variety of energy 
storage technologies for these purposes.
---------------------------------------------------------------------------
    \7\Enhancing the Resilience of the Nation's Electricity System, 
National Academies of Science, Engineering, and Medicine, https://
www.nap.edu/catalog/24836/enhancing-the-resilience-of-the-nations-
electricity-system.
    \8\Making ``Beyond Lithium'' a Reality: Fostering Innovation in 
Long-Duration Grid Storage, Information Technology & Innovation 
Foundation, https://itif.org/publications/2018/11/28/making-beyond-
lithium-reality-fostering-innovation-long-duration-grid.
    \9\Harnessing the Potential of Energy Storage, Edison Electric 
Institute, https://www.eei.org/issuesandpolicy/generation/Documents/
EEI_HarnessingStorage_Final.pdf.
---------------------------------------------------------------------------

                         IV. Committee Hearings

    Pursuant to Section 103(i) of H. Res. 6, the Committee 
designates the following hearings as having been used to 
develop or consider the legislation:
    On July 17, 2019 the Honorable Conor Lamb presiding, the 
Energy Subcommittee of the Committee on Science, Space, and 
Technology held a hearing to examine research needs to 
modernize and secure our nation's electricity grid, including 
energy storage. Witnesses and Members discussed the need for a 
more coordinated investment on research and development of 
energy storage technologies at the Department of Energy and the 
need for more energy storage demonstration projects.

                               WITNESSES

    The Honorable Karen Evans, Assistant Secretary, Office of 
Cybersecurity, Energy Security, and Emergency Response, U.S. 
Department of Energy
    Mr. Juan J. Torres, Associate Laboratory Director, Energy 
Systems Integration, National Renewable Energy Laboratory and 
Co-Chair, Grid Modernization Lab Consortium
    Ms. Kelly Speakes-Backman, CEO, Energy Storage Association
    Ms. Katherine Hamilton, Chair, 38 North Solutions and 
Executive Director, Advanced Energy Management Alliance

                  V. Committee Consideration and Votes

    The Energy Subcommittee of the Committee on Science, Space, 
and Technology met to consider H.R. 2986 on December 19, 2019 
and considered the following amendment to the bill:
    Mr. Foster offered an amendment in the nature of a 
substitute that would expand the activities authorized in the 
bill to include a technical assistance program to aid in the 
commercial application of energy storage technologies and an 
energy storage demonstration program. The amendment was agreed 
to by a voice vote.
    Mr. Lamb moved that the Committee favorably report the 
bill, H.R. 2986, as amended, to the Full Committee with the 
recommendation that the bill be approved. The motion was agreed 
to by a voice vote.
    The Committee on Science, Space, and Technology met to 
consider H.R. 2986 on February 12, 2020 and considered the 
following amendments to the bill:
    Mr. Foster offered a Manager's amendment that would make 
technical and conforming changes to the bill. The amendment was 
agreed to by a voice vote.
    Mr. Tonko offered an amendment that would add a critical 
mineral recycling and reuse research, development and 
demonstration program to the bill. The amendment was agreed to 
by a voice vote.
    Ms. Sherrill offered an amendment that would add support 
for research and development of advanced manufacturing 
technologies to improve U.S. energy storage manufacturing 
competitiveness. The amendment was agreed to by a voice vote.
    Chairwoman Johnson moved that the Committee favorably 
report the bill, H.R. 2986, as amended, to the House of 
Representatives with the recommendation that the bill be 
approved. The motion was agreed to by a voice vote.

              VI. Summary of Major Provisions of the Bill

    The Better Energy Storage Technology (BEST) Act (H.R. 2986) 
would authorize a cross-cutting, research, development, and 
demonstration program to further the development of a variety 
of energy storage systems, components, and materials. The bill 
also directs the Secretary of Energy to develop a strategic 
plan for energy storage research; to establish a technical 
assistance program for the commercial application of energy 
storage systems; and to establish a research, development, and 
demonstration program for recycling of energy storage systems 
containing critical minerals.

        VII. Section-by-Section Analysis (by Title and Section)


Sec. 1 Short title

    ``Better Energy Storage Technology Act''

Sec. 2 Energy storage

    This section authorizes a cross-cutting research and 
development program at the Department of Energy on energy 
storage, including instructing the Secretary to coordinate 
across relevant program offices in carrying out the program and 
to adopt long-term cost and performance targets for the 
program. Additionally, this section requires the Secretary to 
develop a 5-year strategic plan to identify goals and timelines 
for the research and development program. Furthermore, this 
section instructs the Secretary to develop testing and 
validation methodologies for a variety of energy storage 
technologies. This section also authorizes a technical 
assistance program to assist with interconnection of energy 
storage systems with the electric grid and assessment of 
technical and geographic characteristics in addition to an 
energy storage demonstration program. Lastly, this section 
authorizes the following amounts for appropriations: for 
research and development, $62 million in fiscal year 2020 with 
5% annual increases through fiscal year 2024 and for a 
demonstration program, $50 million for each of fiscal years 
2020 through 2024.

                         VIII. Committee Views

    As part of the report authorized in this legislation, the 
Committee intends that the Department shall study ways to 
standardize and streamline the process for approving 
interconnection of energy storage systems onto the electric 
grid.

                           IX. Cost Estimate

    Pursuant to clause 3(c)(2) of rule XIII of the Rules of the 
House of Representatives, the Committee adopts as its own the 
estimate of new budget authority, entitlement authority, or tax 
expenditures or revenues contained in the cost estimate 
prepared by the Director of the Congressional Budget Office 
pursuant to section 402 of the Congressional Budget Act of 
1974.

              X. Congressional Budget Office Cost Estimate

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, June 22, 2020.
Hon. Eddie Bernice Johnson,
Chairwoman, Committee on Science, Space, and Technology,
House of Representatives, Washington, DC.
    Dear Madam Chairwoman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2986, the BEST 
Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Aaron 
Krupkin.
            Sincerely,
                                         Phillip L. Swagel,
                                                          Director.
    Enclosure.

    
    

    H.R. 2986 would reauthorize and expand the Department of 
Energy's (DOE's) research and development (R&D) program for 
energy storage systems. Under the program, DOE would develop a 
strategic plan, conduct research, support testing and 
validation of energy storage systems, and provide technical 
assistance. The bill would authorize the appropriation of 
specific amounts for each year from 2020 through 2024 for those 
purposes. In 2020, the authorization would be $62 million. 
However, DOE's Office of Electricity has allocated $55 million 
in 2020 for research on energy storage technologies. As a 
result, CBO estimates that H.R. 2986 would increase 
authorizations in 2020 by $7 million, the difference between 
the amount authorized to be appropriated in the bill and the 
amount allocated for that year.
    The bill also would authorize the appropriation of $50 
million annually through 2024 for DOE to award grants for the 
demonstration of energy storage systems.
    Finally, H.R. 2986 would require DOE to conduct research, 
development, and demonstration activities to advance the 
recycling of energy storage systems that contain critical 
minerals (lithium, cobalt, nickel, graphite, etc.). Based on 
the cost of similar programs, CBO estimates the authorization 
in 2020 would be $25 million, with that amount increasing each 
year to account for anticipated inflation.
    For this estimate, CBO assumes that the bill will be 
enacted in fiscal year 2020. Under that assumption, DOE could 
incur some costs in 2020, but CBO expects that most of the 
costs would be incurred in 2021 and later. Based on historical 
spending patterns for similar programs, CBO estimates that 
implementing H.R. 2986 would cost $572 million over the 2020-
2025 period, assuming appropriation of the authorized and 
estimated amounts.
    The costs of the legislation, detailed in Table 1, would 
primarily fall within budget function 270 (energy).

               TABLE 1.--ESTIMATED INCREASES IN SPENDING SUBJECT TO APPROPRIATION UNDER H.R. 2986
----------------------------------------------------------------------------------------------------------------
                                                                    By fiscal year, millions of dollars--
                                                            ----------------------------------------------------
                                                              2020   2021   2022   2023   2024   2025  2020-2025
----------------------------------------------------------------------------------------------------------------
Energy Storage R&D:
    Authorization..........................................      7     65     68     72     75      0       288
    Estimated Outlays......................................      *     17     42     56     68     55       238
Demonstration Grants:
    Authorization..........................................     50     50     50     50     50      0       250
    Estimated Outlays......................................      *     23     48     50     54     40       215
Critical Mineral Recycling:
    Estimated Authorization................................     25     26     26     27     27     28       159
    Estimated Outlays......................................      *     12     25     26     28     28       119
    Total Changes:
        Estimated Authorization............................     82    141    144    149    152     28       697
        Estimated Outlays..................................      *     52    115    132    150    123       572
----------------------------------------------------------------------------------------------------------------
Components may not sum to totals because of rounding; R&D = research and development; * = between zero and
  $500,000.
aH.R. 2986 would authorize the appropriation of $62 million in 2020 for the Department of Energy (DOE) to
  conduct energy storage R&D. However, DOE has allocated $55 million in 2020 for those purposes. As a result,
  CBO estimates that H.R.2986 would increase authorizations in 2020 by $7 million, the difference between the
  amount authorized to be appropriated in the bill and the amount allocated for that year.

    On October 22, 2019, CBO transmitted a cost estimate for S. 
1602, the BEST Act, as ordered reported by the Senate Committee 
on Energy and Natural Resources on September 25, 2019. The two 
pieces of legislation are similar, but each has a different 
scope and would authorize the appropriation of different 
amounts. CBO's cost estimates reflect those differences.
    The CBO staff contact for this estimate is Aaron Krupkin. 
The estimate was reviewed by H. Samuel Papenfuss, Deputy 
Director of Budget Analysis.

                     XI. Federal Mandates Statement

    H.R. 2986 contains no unfunded mandates.

         XII. Committee Oversight Findings and Recommendations

    The Committee's oversight findings and recommendations 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 goals of 
H.R. 2986 are to direct Federal research on energy storage 
systems, components, and materials; establish a technical 
assistance program for energy storage systems; and direct a 
research, development, and demonstration program on recycling 
of energy storage systems containing critical minerals.

               XIV. Federal Advisory Committee Statement

    H.R. 2986 does not authorize any federal advisory 
committees.

                  XV. Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that no provision 
of H.R. 2986 establishes or reauthorizes a program of the 
federal government known to be duplicative of another federal 
program, including any program that was included in a report to 
Congress pursuant to section 21 of Public Law 111-139 or the 
most recent Catalog of Federal Domestic Assistance.

                      XVI. Earmark Identification

    Pursuant to clause 9(e), 9(f), and 9(g) of rule XXI, the 
Committee finds that H.R. 2986 contains no earmarks, limited 
tax benefits, or limited tariff benefits.

             XVII. Applicability to the Legislative Branch

    The Committee finds that H.R. 2986 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).

            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

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

        UNITED STATES ENERGY STORAGE COMPETITIVENESS ACT OF 2007




           *       *       *       *       *       *       *
TITLE VI--ACCELERATED RESEARCH AND DEVELOPMENT

           *       *       *       *       *       *       *


Subtitle D--Energy Storage for Transportation and Electric Power

           *       *       *       *       *       *       *


SEC. 641. ENERGY STORAGE COMPETITIVENESS.

  (a) Short Title.--This section may be cited as the ``United 
States Energy Storage Competitiveness Act of 2007''.
  (b) Definitions.--In this section:
          (1) Council.--The term ``Council'' means the Energy 
        Storage Advisory Council established under subsection 
        (e).
          (2) Compressed air energy storage.--The term 
        ``compressed air energy storage'' means, in the case of 
        an electricity grid application, the storage of energy 
        through the compression of air.
          (3) Electric drive vehicle.--The term ``electric 
        drive vehicle'' means--
                  (A) a vehicle that uses an electric motor for 
                all or part of the motive power of the vehicle, 
                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.
          (4) Islanding.--The term ``islanding'' means a 
        distributed generator or energy storage device 
        continuing to power a location in the absence of 
        electric power from the primary source.
          (5) Flywheel.--The term ``flywheel'' means, in the 
        case of an electricity grid application, a device used 
        to store rotational kinetic energy.
          (6) Microgrid.--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.
          (7) Self-healing grid.--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 the 
        performance and service of the grid to customers.
          (8) Spinning reserve services.--The term ``spinning 
        reserve services'' means a quantity of electric 
        generating capacity in excess of the quantity needed to 
        meet peak electric demand.
          (9) Ultracapacitor.--The term ``ultracapacitor'' 
        means an energy storage device that has a power density 
        comparable to a conventional capacitor but is capable 
        of exceeding the energy density of a conventional 
        capacitor by several orders of magnitude.
  (c) Program.--The Secretary shall carry out a research, 
development, and demonstration program to support the ability 
of the United States to remain globally competitive in energy 
storage systems for electric drive vehicles, stationary 
applications, and electricity transmission and distribution.
  (d) Coordination.--In carrying out the activities of this 
section, the Secretary shall coordinate relevant efforts with 
appropriate Federal agencies, including the Department of 
Transportation.
  (e) Energy Storage Advisory Council.--
          (1) Establishment.--Not later than 90 days after the 
        date of enactment of this Act, the Secretary shall 
        establish an Energy Storage Advisory Council.
          (2) Composition.--
                  (A) In general.--Subject to subparagraph (B), 
                the Council shall consist of not less than 15 
                individuals appointed by the Secretary, based 
                on recommendations of the National Academy of 
                Sciences.
                  (B) Energy storage industry.--The Council 
                shall consist primarily of representatives of 
                the energy storage industry of the United 
                States.
                  (C) Chairperson.--The Secretary shall select 
                a Chairperson for the Council from among the 
                members appointed under subparagraph (A).
          (3) Meetings.--
                  (A) In general.--The Council shall meet not 
                less than once a year.
                  (B) Federal advisory committee act.--The 
                Federal Advisory Committee Act (5 U.S.C. App.) 
                shall apply to a meeting of the Council.
          (4) Plans.--No later than 1 year after the date of 
        enactment of this Act and every 5 years thereafter, the 
        Council, in conjunction with the Secretary, shall 
        develop a 5-year plan for integrating basic and applied 
        research so that the United States retains a globally 
        competitive domestic energy storage industry for 
        electric drive vehicles, stationary applications, and 
        electricity transmission and distribution.
          (5) Review.--The Council shall--
                  (A) assess, every 2 years, the performance of 
                the Department in meeting the goals of the 
                plans developed under paragraph (4); and
                  (B) make specific recommendations to the 
                Secretary on programs or activities that should 
                be established or terminated to meet those 
                goals.
  (f) Basic Research Program.--
          (1) Basic research.--The Secretary shall conduct a 
        basic research program on energy storage systems to 
        support electric drive vehicles, stationary 
        applications, and electricity transmission and 
        distribution, including--
                  (A) materials design;
                  (B) materials synthesis and characterization;
                  (C) electrode-active materials, including 
                electrolytes and bioelectrolytes;
                  (D) surface and interface dynamics;
                  (E) modeling and simulation; and
                  (F) thermal behavior and life degradation 
                mechanisms.
          (2) Nanoscience centers.--The Secretary, in 
        cooperation with the Council, shall coordinate the 
        activities of the nanoscience centers of the Department 
        to help the energy storage research centers of the 
        Department maintain a globally competitive posture in 
        energy storage systems for electric drive vehicles, 
        stationary applications, and electricity transmission 
        and distribution.
          (3) Funding.--For activities carried out under this 
        subsection, 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.
  (g) Applied Research Program.--
          (1) In general.--The Secretary shall conduct an 
        applied research program on energy storage systems to 
        support electric drive vehicles, stationary 
        applications, and electricity transmission and 
        distribution technologies, including--
                  (A) ultracapacitors;
                  (B) flywheels;
                  (C) batteries and battery systems (including 
                flow batteries);
                  (D) compressed air energy systems;
                  (E) power conditioning electronics;
                  (F) manufacturing technologies for energy 
                storage systems;
                  (G) thermal management systems; and
                  (H) hydrogen as an energy storage medium.
          (2) Funding.--For activities carried out under this 
        subsection, in addition to funding activities at 
        National Laboratories, the Secretary shall provide 
        funds to, and coordinate activities with, a range of 
        stakeholders, including the public, private, and 
        academic sectors.
  (h) Energy Storage Research Centers.--
          (1) In general.--The Secretary shall establish, 
        through competitive bids, not more than 4 energy 
        storage research centers to translate basic research 
        into applied technologies to advance the capability of 
        the United States to maintain a globally competitive 
        posture in energy storage systems for electric drive 
        vehicles, stationary applications, and electricity 
        transmission and distribution.
          (2) Program management.--The centers shall be managed 
        by the Under Secretary for Science of the Department.
          (3) Participation agreements.--As a condition of 
        participating in a center, a participant shall enter 
        into a participation agreement with the center that 
        requires that activities conducted by the participant 
        for the center promote the goal of enabling the United 
        States to compete successfully in global energy storage 
        markets.
          (4) Plans.--A center shall conduct activities that 
        promote the achievement of the goals of the plans of 
        the Council under subsection (e)(4).
          (5) National laboratories.--A national laboratory (as 
        defined in section 2 of the Energy Policy Act of 2005 
        (42 U.S.C. 15801)) may participate in a center 
        established under this subsection, including a 
        cooperative research and development agreement (as 
        defined in section 12(d) of the Stevenson-Wydler 
        Technology Innovation Act of 1980 (15 U.S.C. 
        3710a(d))).
          (6) Disclosure.--Section 623 of the Energy Policy Act 
        of 1992 (42 U.S.C. 13293) may apply to any project 
        carried out through a grant, contract, or cooperative 
        agreement under this subsection.
          (7) Intellectual property.--In accordance with 
        section 202(a)(ii) of title 35, United States Code, 
        section 152 of the Atomic Energy Act of 1954 (42 U.S.C. 
        2182), and section 9 of the Federal Nonnuclear Energy 
        Research and Development Act of 1974 (42 U.S.C. 5908), 
        the Secretary may require, for any new invention 
        developed under this subsection, that--
                  (A) if an industrial participant is active in 
                a energy storage research center established 
                under this subsection relating to the 
                advancement of energy storage technologies 
                carried out, in whole or in part, with Federal 
                funding, the industrial participant be granted 
                the first option to negotiate with the 
                invention owner, at least in the field of 
                energy storage technologies, nonexclusive 
                licenses, and royalties on terms that are 
                reasonable, as determined by the Secretary;
                  (B) if 1 or more industry participants are 
                active in a center, during a 2-year period 
                beginning on the date on which an invention is 
                made--
                          (i) the patent holder shall not 
                        negotiate any license or royalty 
                        agreement with any entity that is not 
                        an industrial participant under this 
                        subsection; and
                          (ii) the patent holder shall 
                        negotiate nonexclusive licenses and 
                        royalties in good faith with any 
                        interested industrial participant under 
                        this subsection; and
                  (C) the new invention be developed under such 
                other terms as the Secretary determines to be 
                necessary to promote the accelerated 
                commercialization of inventions made under this 
                subsection to advance the capability of the 
                United States to successfully compete in global 
                energy storage markets.
  (i) Energy Storage Systems Demonstrations.--
          (1) In general.--The Secretary shall carry out a 
        program of new demonstrations of advanced energy 
        storage systems.
          (2) Scope.--The demonstrations shall--
                  (A) be regionally diversified; and
                  (B) expand on the existing technology 
                demonstration program of the Department.
          (3) Stakeholders.--In carrying out the 
        demonstrations, the Secretary shall, to the maximum 
        extent practicable, include the participation of a 
        range of stakeholders, including--
                  (A) rural electric cooperatives;
                  (B) investor owned utilities;
                  (C) municipally owned electric utilities;
                  (D) energy storage systems manufacturers;
                  (E) electric drive vehicle manufacturers;
                  (F) the renewable energy production industry;
                  (G) State or local energy offices;
                  (H) the fuel cell industry; and
                  (I) institutions of higher education.
          (4) Objectives.--Each of the demonstrations shall 
        include 1 or more of the following:
                  (A) Energy storage to improve the feasibility 
                of microgrids or islanding, or transmission and 
                distribution capability, to improve reliability 
                in rural areas.
                  (B) Integration of an energy storage system 
                with a self-healing grid.
                  (C) Use of energy storage to improve security 
                to emergency response infrastructure and ensure 
                availability of emergency backup power for 
                consumers.
                  (D) Integration with a renewable energy 
                production source, at the source or away from 
                the source.
                  (E) Use of energy storage to provide 
                ancillary services, such as spinning reserve 
                services, for grid management.
                  (F) Advancement of power conversion systems 
                to make the systems smarter, more efficient, 
                able to communicate with other inverters, and 
                able to control voltage.
                  (G) Use of energy storage to optimize 
                transmission and distribution operation and 
                power quality, which could address overloaded 
                lines and maintenance of transformers and 
                substations.
                  (H) Use of advanced energy storage for peak 
                load management of homes, businesses, and the 
                grid.
                  (I) Use of energy storage devices to store 
                energy during nonpeak generation periods to 
                make better use of existing grid assets.
  (j) Vehicle Energy Storage Demonstration.--
          (1) In general.--The Secretary shall carry out a 
        program of electric drive vehicle energy storage 
        technology demonstrations.
          (2) Consortia.--The technology demonstrations shall 
        be conducted through consortia, which may include--
                  (A) energy storage systems manufacturers and 
                suppliers of the manufacturers;
                  (B) electric drive vehicle manufacturers;
                  (C) rural electric cooperatives;
                  (D) investor owned utilities;
                  (E) municipal and rural electric utilities;
                  (F) State and local governments;
                  (G) metropolitan transportation authorities; 
                and
                  (H) institutions of higher education.
          (3) Objectives.--The program shall demonstrate 1 or 
        more of the following:
                  (A) 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.
                  (B) Advanced onboard energy management 
                systems and highly efficient battery cooling 
                systems.
                  (C) Integration of those systems on a 
                prototype vehicular platform, including with 
                drivetrain systems for passenger, commercial, 
                and nonroad electric drive vehicles.
                  (D) New technologies and processes that 
                reduce manufacturing costs.
                  (E) Integration of advanced vehicle 
                technologies with electricity distribution 
                system and smart metering technology.
                  (F) Control systems that minimize emissions 
                profiles in cases in which clean diesel engines 
                are part of a plug-in hybrid drive system.
  (k) Secondary Applications and Disposal of Electric Drive 
Vehicle Batteries.--The Secretary shall carry out a program of 
research, development, and demonstration of--
          (1) secondary applications of energy storage devices 
        following service in electric drive vehicles; and
          (2) technologies and processes for final recycling 
        and disposal of the devices.
  (l) Energy Storage Research and Development Program.--
          (1) In general.--Not later than 180 days after the 
        date of enactment of the Better Energy Storage 
        Technology Act, the Secretary shall establish a 
        research and development program for energy storage 
        systems, components, and materials across multiple 
        program offices of the Department.
          (2) Requirements.--In carrying out the program under 
        paragraph (1), the Secretary shall--
                  (A) coordinate across all relevant program 
                offices throughout the Department, including 
                the Office of Electricity, the Office of Energy 
                Efficiency and Renewable Energy, the Advanced 
                Research Projects Agency - Energy, the Office 
                of Science, and the Office of Cybersecurity, 
                Energy Security, and Emergency Response;
                  (B) adopt long-term cost, performance, and 
                demonstration targets for different types of 
                energy storage systems and for use in a variety 
                of regions, including rural areas;
                  (C) incorporate considerations of 
                sustainability, sourcing, recycling, reuse, and 
                disposal of materials, including critical 
                elements, in the design of energy storage 
                systems;
                  (D) identify energy storage duration needs;
                  (E) analyze the need for various types of 
                energy storage to improve electric grid 
                resilience and reliability; and
                  (F) support research and development of 
                advanced manufacturing technologies that have 
                the potential to improve United States 
                competitiveness in energy storage 
                manufacturing.
          (3) Strategic plan.--
                  (A) In general.--No later than 180 days after 
                the date of enactment of the Better Energy 
                Storage Technology Act, the Secretary shall 
                develop a 5-year strategic plan identifying 
                research, development, demonstration, and 
                commercial application goals for the program in 
                accordance with this section. The Secretary 
                shall submit this plan to the Committee on 
                Science, Space, and Technology of the House of 
                Representatives and the Committee on Energy and 
                Natural Resources of the Senate.
                  (B) Contents.--The strategic plan submitted 
                under subparagraph (A) shall--
                          (i) identify programs at the 
                        Department related to energy storage 
                        systems that support the research and 
                        development activities described in 
                        paragraph (4), and the demonstration 
                        projects under subsection (m); and
                          (ii) include timelines for the 
                        accomplishment of goals developed under 
                        the plan.
                  (C) Updates to plan.--Not less frequently 
                than once every 3 years, the Secretary shall 
                submit to the Committee on Science, Space, and 
                Technology of the House of Representatives and 
                the Committee on Energy and Natural Resources 
                of the Senate an updated version of the plan 
                under subparagraph (A).
          (4) Research and development.--In carrying out the 
        program established in paragraph (1), the Secretary 
        shall focus on developing--
                  (A) energy storage systems that can store 
                energy and deliver stored energy for a minimum 
                of 6 hours in duration to balance electricity 
                needs over the course of a single day;
                  (B) long-duration energy storage systems that 
                can store energy and deliver stored energy for 
                10 to 100 hours in duration; and
                  (C) energy storage systems that can store 
                energy and deliver stored energy over several 
                months and address seasonal scale variations in 
                supply and demand.
          (5) Testing and validation.--The Secretary shall 
        support the standardized testing and validation of 
        energy storage systems under the program through 
        collaboration with 1 or more National Laboratories, 
        including the development of methodologies to 
        independently validate energy storage technologies by--
                  (A) performance of energy storage systems on 
                the electric grid, including--
                          (i) when appropriate, testing of 
                        application-driven charge and discharge 
                        protocols;
                          (ii) evaluation of power capacity and 
                        energy output;
                          (iii) degradation of the energy 
                        storage systems from cycling and aging;
                          (iv) safety; and
                          (v) reliability testing under grid 
                        duty cycles; and
                  (B) prediction of lifetime metrics.
          (6) Coordination.--In carrying out this subsection, 
        the Secretary shall coordinate with--
                  (A) programs and offices that aim to increase 
                domestic manufacturing and production of energy 
                storage systems, such as those within the 
                Department and within the National Institute of 
                Standards and Technology;
                  (B) other Federal agencies that are carrying 
                out initiatives to increase energy reliability 
                through the development of energy storage 
                systems, including the Department of Defense; 
                and
                  (C) other stakeholders working to advance the 
                development of commercially viable energy 
                storage systems.
          (7) Technical assistance program.--
                  (A) In general.--The Secretary shall provide 
                technical assistance for commercial application 
                of energy storage technologies to eligible 
                entities.
                  (B) Technical assistance.--Technical 
                assistance provided under this paragraph--
                          (i) may include assistance with--
                                  (I) assessment of relevant 
                                technical and geographic 
                                characteristics;
                                  (II) interconnection of 
                                electricity storage systems 
                                with the electric grid; and
                                  (III) engineering design; and
                          (ii) may not include assistance 
                        relating to modification of Federal, 
                        State, or local regulations or policies 
                        with respect to energy storage systems.
                  (C) Applications.--
                          (i) In general.--The Secretary shall 
                        seek applications for technical 
                        assistance and grants under the 
                        program--
                                  (I) on a competitive basis; 
                                and
                                  (II) on a periodic basis, but 
                                not less frequently than once 
                                every 12 months.
                          (ii) Priorities.--In selecting 
                        eligible entities for technical 
                        assistance for commercial applications, 
                        the Secretary shall give priority to 
                        eligible entities with projects that 
                        have the greatest potential for--
                                  (I) strengthening the 
                                reliability and resilience of 
                                the electric grid to the impact 
                                of extreme weather events, 
                                power grid failures, and 
                                interruptions in supply of 
                                electricity;
                                  (II) reducing the cost of 
                                energy storage systems; or
                                  (III) facilitating the use of 
                                net zero emission energy 
                                resources.
          (8) Program defined.--In this subsection, the term 
        ``program'' means the research and development program 
        established under paragraph (1).
  (m) Energy Storage Demonstration Program.--
          (1) Establishment.--The Secretary shall establish a 
        competitive grant program for the demonstration of 
        energy storage systems, as identified by the Secretary, 
        that use either--
                  (A) a single system; or
                  (B) aggregations of multiple systems.
          (2) Eligibility.--Entities eligible to receive a 
        grant under paragraph (1) include--
                  (A) a State, territory, or possession of the 
                United States;
                  (B) a State energy office;
                  (C) a tribal organization (as defined in 
                section 3765 of title 38, United States Code);
                  (D) an institution of higher education (as 
                defined in section 101 of the Higher Education 
                Act of 1965 (20 U.S.C. 1001));
                  (E) an electric utility, including--
                          (i) a rural electric cooperative;
                          (ii) a political subdivision of a 
                        State, such as a municipally owned 
                        electric utility, or any agency, 
                        authority, corporation, or 
                        instrumentality of one or more State 
                        political subdivisions; and
                          (iii) an investor-owned utility; and
                  (F) a private company, such as but not 
                limited to an energy storage company.
          (3) Selection requirements.--In selecting eligible 
        entities to receive a grant under this section, the 
        Secretary shall, to the maximum extent practicable--
                  (A) ensure regional diversity among eligible 
                entities that receive the grants, including 
                participation by rural States and small States;
                  (B) ensure that specific projects selected 
                for grants--
                          (i) expand on the existing technology 
                        demonstration programs of the 
                        Department of Energy; and
                          (ii) are designed to achieve one or 
                        more of the objectives described in 
                        paragraph (4);
                  (C) give consideration to proposals from 
                eligible entities for securing energy storage 
                through competitive procurement or contract for 
                service; and
                  (D) prioritize projects that leverage 
                matching funds from non-Federal sources.
          (4) Objectives.--Each demonstration project selected 
        for a grant under paragraph (1) shall include one or 
        more of the following objectives:
                  (A) To improve the security of critical 
                infrastructure and emergency response systems.
                  (B) To improve the reliability of the 
                transmission and distribution system, 
                particularly in rural areas, including high 
                energy cost rural areas.
                  (C) To optimize transmission or distribution 
                system operation and power quality to defer or 
                avoid costs of replacing or upgrading electric 
                grid infrastructure, including transformers and 
                substations.
                  (D) To supply energy at peak periods of 
                demand on the electric grid or during periods 
                of significant variation of electric grid 
                supply or demand.
                  (E) To reduce peak loads of homes and 
                businesses, particularly to defer or avoid 
                investments in new electric grid capacity.
                  (F) To advance power conversion systems to 
                make the systems smarter, more efficient, able 
                to communicate with other inverters, and able 
                to control voltage.
                  (G) To provide ancillary services for grid 
                stability and management.
                  (H) To integrate one or more energy 
                resources, including renewable energy 
                resources, at the source or away from the 
                source.
                  (I) To increase the feasibility of microgrids 
                or islanding.
                  (J) To enable the use of stored energy in 
                forms other than electricity to support the 
                natural gas system and other industrial 
                processes.
          (5) Restriction on use of funds.--Any eligible entity 
        that receives a grant under paragraph (1) may only use 
        the grant to fund programs relating to the 
        demonstration of energy storage systems connected to 
        the electric grid, or that provides bi-directional 
        energy storage capable of providing back-up energy in 
        the event of grid outages, including energy storage 
        systems sited behind a customer revenue meter.
          (6) Cost sharing.--In carrying out this section, the 
        Secretary shall require cost sharing under this section 
        in accordance with section 988 of the Energy Policy Act 
        of 2005 (42 U.S.C. 16352).
          (7) No project ownership interest.--The United States 
        shall hold no equity or other ownership interest in an 
        energy storage system for which a grant is provided 
        under paragraph (1).
          (8) Rules and procedures; awarding of grants.--
                  (A) Rules and procedures.--Not later than 180 
                days after the date of enactment of the Better 
                Energy Storage Technology Act, the Secretary 
                shall adopt rules and procedures for carrying 
                out the grant program under subsection (m).
                  (B) Awarding of grants.--Not later than 1 
                year after the date on which the rules and 
                procedures under paragraph (A) are established, 
                the Secretary shall award the initial grants 
                provided under this section.
          (9) Reports.--The Secretary shall submit to Congress 
        and make publicly available--
                  (A) not less frequently than once every 2 
                years for the duration of the grant program 
                under subsection (m), a report describing the 
                performance of the grant program, including a 
                synthesis and analysis of any information the 
                Secretary requires grant recipients to provide 
                to the Secretary as a condition of receiving a 
                grant; and
                  (B) on termination of the grant program under 
                subsection (m), an assessment of the success 
                of, and education provided by, the measures 
                carried out by grant recipients under the grant 
                program.
          (10) Program defined.--In this subsection, the term 
        ``program'' means the demonstration program established 
        under paragraph (1).
  (n) Critical Mineral Recycling and Reuse Research, 
Development, and Demonstration Program.--
          (1) Definitions.--In this subsection:
                  (A) Critical mineral.--The term ``critical 
                mineral'' means any of a class of chemical 
                elements that have a high risk of a supply 
                disruption and are critical to one or more new, 
                energy-related technologies such that a 
                shortage of such element would significantly 
                inhibit large-scale deployment of technologies 
                that store energy.
                  (B) Recycling.--The term ``recycling'' means 
                the separation of critical minerals embedded 
                within an energy storage system through 
                physical or chemical means and reuse of those 
                separated critical minerals in other 
                technologies.
          (2) Establishment.--Not later than 180 days after the 
        date of enactment of the BEST Act, the Secretary shall 
        establish a research, development, and demonstration 
        program of recycling of energy storage systems 
        containing critical minerals.
          (3) Research, development, and demonstration.--In 
        carrying out the program, the Secretary may focus 
        research, development, and demonstration activities 
        on--
                  (A) technologies, process improvements, and 
                design optimizations that facilitate and 
                promote recycling, including--
                          (i) improvement of efficiency and 
                        rates of collection of products and 
                        scrap containing critical minerals from 
                        consumer, industrial, and other waste 
                        streams;
                          (ii) separation and sorting of 
                        component materials in energy storage 
                        systems containing critical minerals, 
                        including improving the recyclability 
                        of such energy storage systems;
                          (iii) safe storage of energy storage 
                        systems, including reducing fire risk;
                          (iv) safe transportation of energy 
                        storage systems and components; and
                          (v) development of technologies to 
                        advance energy storage recycling 
                        facility infrastructure, including 
                        integrated recycling facilities that 
                        can process multiple materials;
                  (B) research and development of technologies 
                that mitigate emissions and environmental 
                impacts that arise from recycling, including 
                disposal of toxic reagents and byproducts 
                related to recycling processes;
                  (C) research and development of technologies 
                to enable recycling of critical materials from 
                batteries in electric vehicles;
                  (D) research on and analysis of non-technical 
                barriers to improving the transportation of 
                energy storage systems containing critical 
                minerals; and
                  (E) research on technologies and methods to 
                enable the safe disposal of energy storage 
                systems containing critical minerals, including 
                waste materials and components recovered during 
                the recycling process.
          (4) Report to congress.--Not later than 2 years after 
        the date of enactment of the BEST Act, and every 3 
        years thereafter, the Secretary shall submit to the 
        Committee on Science, Space, and Technology of the 
        House of Representatives and the Committee on Energy 
        and Natural Resources of the Senate a report 
        summarizing the activities, findings, and progress of 
        the program.
  (o) Definitions.--For purposes of subsections (l), (m), and 
(n), the following definitions apply:
          (1) Energy storage system.--The term ``energy storage 
        system'' means a system, equipment, facility, or 
        technology relating to the electric grid that--
                  (A) is capable of absorbing energy, storing 
                such energy for a period of time, and 
                dispatching such energy after storage; and
                  (B) uses a mechanical, electrical, chemical, 
                electrochemical, or thermal process to store 
                such energy, or any other process that the 
                Secretary determines relevant.
          (2) Island.--The term ``island'' means one or more 
        distributed generators or energy storage systems that 
        continues to power a location in the absence of 
        electricity from the electric grid.
          (3) Microgrid.--The term ``microgrid'' means an 
        integrated energy system consisting of inter-connected 
        loads and distributed energy resources, including 
        generators and energy storage systems, within clearly 
        defined electrical boundaries that--
                  (A) acts as a single controllable entity with 
                respect to the grid;
                  (B) can connect and disconnect from the grid 
                to operate in either grid-connected mode or 
                island-mode; or
                  (C) can operate in the absence of the grid.
          (4) National laboratory.--The term ``national 
        laboratory'' has the meaning given the term in section 
        2 of the Energy Policy Act of 2005 (42 U.S.C. 15801).
  [(l)] (p) Cost Sharing.--The Secretary shall carry out the 
programs established under this section in accordance with 
section 988 of the Energy Policy Act of 2005 (42 U.S.C. 16352).
  [(m)] (q) Merit Review of Proposals.--The Secretary shall 
carry out the programs established under subsections (i), (j), 
and (k) in accordance with section 989 of the Energy Policy Act 
of 2005 (42 U.S.C. 16353).
  [(n)] (r) Coordination and Nonduplication.--To the maximum 
extent practicable, the Secretary shall coordinate activities 
under this section with other programs and laboratories of the 
Department and other Federal research programs.
  [(o)] (s) Review by National Academy of Sciences.--On the 
business day that is 5 years after the date of enactment of 
this Act, the Secretary shall offer to enter into an 
arrangement with the National Academy of Sciences to assess the 
performance of the Department in carrying out this section.
  [(p)] (t) Authorization of Appropriations.--There are 
authorized to be appropriated to carry out--
          (1) the basic research program under subsection (f) 
        $50,000,000 for each of fiscal years 2009 through 2018;
          (2) the applied research program under subsection (g) 
        $80,000,000 for each of fiscal years 2009 through 2018; 
        and;
          (3) the energy storage research center program under 
        subsection (h) $100,000,000 for each of fiscal years 
        2009 through 2018;
          (4) the energy storage systems demonstration program 
        under subsection (i) $30,000,000 for each of fiscal 
        years 2009 through 2018;
          (5) the vehicle energy storage demonstration program 
        under subsection (j) $30,000,000 for each of fiscal 
        years 2009 through 2018; [and]
          (6) the secondary applications and disposal of 
        electric drive vehicle batteries program under 
        subsection (k) $5,000,000 for each of fiscal years 2009 
        through 2018[.];
          (7) the research and development program for energy 
        storage systems under subsection (l)--
                  (A) $62,000,000 for fiscal year 2020;
                  (B) $ 65,100,000 for fiscal year 2021;
                  (C) $ 68,355,000 for fiscal year 2022;
                  (D) $ 71,773,000 for fiscal year 2023; and
                  (E) $ 75,362,000 for fiscal year 2024; and
          (8) the demonstration program for energy storage 
        systems under subsection (m), $50,000,000 for each of 
        fiscal years 2020 through 2024.

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