[Senate Report 116-199]
[From the U.S. Government Publishing Office]


                                                      Calendar No. 360
116th Congress     }                                    {       Report
                                 SENATE
 2d Session        }                                    {      116-199

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



 
                     INTEGRATED ENERGY SYSTEMS ACT

                                _______
                                

                January 7, 2020.--Ordered to be printed

                                _______
                                

        Ms. Murkowski, from the Committee on Energy and Natural 
                   Resources, submitted the following

                              R E P O R T

                         [To accompany S. 2702]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 2702) to require the Secretary of Energy 
to establish an integrated energy systems research, 
development, and demonstration program, and for other purposes, 
having considered the same, reports favorably thereon with an 
amendment in the nature of a substitute and recommends that the 
bill, as amended, do pass.

                               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 ``Integrated Energy Systems Act of 
2019''.

SEC. 2. INTEGRATED ENERGY SYSTEMS PROGRAM.

    (a) Definitions.--In this section:
          (1) Program.--The term ``program'' means the Integrated 
        Energy Systems Program established under subsection (b)(1).
          (2) Secretary.--The term ``Secretary'' means the Secretary of 
        Energy.
    (b) Establishment.--
          (1) In general.--The Secretary shall establish a program, to 
        be known as the ``Integrated Energy Systems Program''--
                  (A) to maximize energy production and efficiency;
                  (B) to develop energy systems involving the 
                integration of nuclear energy with renewable energy, 
                fossil energy, and energy storage; and
                  (C) to expand the use of emissions-reducing energy 
                technologies into nonelectric sectors to achieve 
                significant reductions in environmental emissions.
          (2) Program administration; partners.--The program shall be 
        carried out by the Undersecretary of Energy, in partnership 
        with--
                  (A) relevant offices within the Department of Energy;
                  (B) National Laboratories;
                  (C) institutions of higher education; and
                  (D) the private sector.
          (3) Goals and milestones.--The Secretary shall establish 
        quantitative goals and milestones for the program.
    (c) Research Areas.--Research areas under the program may include--
          (1) technology innovation to further the expansion of 
        emissions-reducing energy technologies to accommodate a modern, 
        resilient grid system by--
                  (A) effectively leveraging multiple energy sources;
                  (B) enhancing and streamlining engineering design;
                  (C) carrying out process demonstrations to optimize 
                performance; and
                  (D) streamlining regulatory review;
          (2) advanced power cycles, energy extraction, and processing 
        of complex hydrocarbons to produce high-value chemicals;
          (3) efficient use of emissions-reducing energy technologies 
        for hydrogen production to support transportation and 
        industrial needs;
          (4) enhancement and acceleration of domestic manufacturing 
        and desalinization technologies and processes by optimally 
        using clean energy sources;
          (5) more effective thermal energy use, transport, and 
        storage;
          (6) the demonstration of nuclear energy delivery for--
                  (A) the production of chemicals, metals, and fuels;
                  (B) the capture, use, and storage of carbon;
                  (C) renewable integration with an integrated energy 
                system; and
                  (D) conversion of carbon feedstock, such as coal, 
                biomass, natural gas, and refuse waste, to higher value 
                nonelectric commodities;
          (7) the development of new analysis capabilities to identify 
        the best ways--
                  (A) to leverage multiple energy sources in a given 
                region; and
                  (B) to quantify the benefits of integrated energy 
                systems; and
          (8) any other area that, as determined by the Secretary, 
        meets the purpose and goals of the program.
    (d) Grants.--The Secretary may award grants under the program to 
support the goals of the program.

SEC. 3. REPORT ON DUPLICATIVE PROGRAMS.

    Not later than 1 year after the date of enactment of this Act, and 
annually thereafter, the Secretary shall submit to Congress a report 
identifying any program that is duplicative of the program established 
under section 2(b)(1).

                                PURPOSE

    The purpose of S. 2702 is to require the Secretary of 
Energy (Secretary) to establish an integrated energy systems 
research, development, and demonstration program (Program).

                          BACKGROUND AND NEED

    Nuclear energy provides 19 percent of the electricity in 
the United States, and over half of the zero-emission 
electricity in the country. This electricity is provided by 96 
nuclear reactors, all of which were licensed to start 
construction over 40 years ago, and in many cases over 50 years 
ago. All were designed to produce baseload electricity. The 
electricity system has changed dramatically since their 
construction, with electricity prices now significantly lower 
and with an increasingly higher value placed on operational 
flexibility.
    Nine reactors have shut down since 2013, primarily because 
of economic competition from natural gas and renewable energy 
sources and maintenance challenges. There are now 96 commercial 
reactors operating in the U.S. with only two new units 
currently under construction and an additional eight units 
scheduled to be closed by 2025. The need to modernize the 
nuclear energy industry has led to a focus on nonelectric 
applications of nuclear energy, as well as ways to better 
integrate nuclear technologies with variable energy sources 
such as renewable energy.
    The Department of Energy (DOE) conducts a wide variety of 
research and development (R&D) into nuclear technologies 
through the Office of Nuclear Energy, including advanced 
reactors, fuel cycle development, and Nuclear Energy Enabling 
Technologies (NEET). Within NEET, DOE has supported a program 
on hybrid energy systems R&D in coordination with the Office of 
Energy Efficiency and Renewable Energy (EERE). That program 
focuses on the integration of nuclear energy with renewables, 
fossil energy, and energy storage, as well as industrial energy 
options.
    Two of the program's major focuses to date have been the 
Joint Use Modular Plant (JUMP) program, and the investigation 
of producing hydrogen from nuclear energy. The JUMP program is 
a plant to utilize one module at the NuScale small modular 
reactor facility for research into integrated energy systems 
and nonelectric applications of nuclear energy. The NuScale 
plant is expected to begin operations in 2026. The other 
hydrogen initiative has been focused on demonstrating 
production utilizing existing commercial nuclear power plants. 
So far this year there have been awards made from both the 
Offices of Nuclear Energy and EERE to support R&D at four 
nuclear plants.
    The Integrated Energy Systems Act would establish a 
dedicated Program within the DOE to accelerate the development 
of new integrated energy systems among the applied energy 
offices.

                          LEGISLATIVE HISTORY

    S. 2702 was introduced by Senators Risch and Manchin on 
October 24, 2019. The Subcommittee on Energy held a hearing on 
S. 2702 on November 6, 2019.
    The Senate Committee on Energy and Natural Resources met in 
open business session on November 19, 2019, and ordered S. 2702 
favorably reported, as amended.

                        COMMITTEE RECOMMENDATION

    The Senate Committee on Energy and Natural Resources, in 
open business session on November 19, 2019, by a majority voice 
vote of a quorum present, recommends that the Senate pass S. 
2702, if amended as described herein. Senator Lee asked to be 
recorded as voting no.

                          COMMITTEE AMENDMENTS

    During its consideration of S. 2702, the Committee adopted 
a substitute amendment as amended by an amendment offered by 
Senator Lee. The substitute amendment removes the Program from 
the Office of Nuclear Energy in section 2. The substitute 
amendment further modifies the Program's purposes in section 
2(b) to delete paragraphs (1)(B) and (1)(D) and add a new 
paragraph (1)(B) to include ``to develop energy systems 
involving the integration of nuclear energy with renewable 
energy, fossil energy, and energy storage'' as a purpose.
    The substitute amendment removes the enumerated list of DOE 
offices from section 2(b)(2) and changes the Program's 
leadership from the Office of Nuclear Energy to the 
Undersecretary of Energy. It also deletes the specified Program 
goals in section 2(b)(3) and replaces them with a general 
directive to the Secretary to ``establish quantitative goals 
and milestones'' for the Program.
    The substitute amendment renames the research goals in 
section 2(c) as research areas, and modifies those research 
areas. The substitute amendment further deletes section 2(e) 
which authorized appropriations and makes a number of technical 
and clarifying changes to the bill.
    The amendment offered by Senator Lee to the substitute 
amendment adds a new section 3 to require an annual report 
identifying programs at DOE that are duplicative of the 
Program.

                      SECTION-BY-SECTION ANALYSIS

Section 1. Short title

    Section 1 sets forth the bill's short title.

Section 2. Integrated Energy Systems Program

    Section 2(a) sets forth relevant definitions.
    Subsection (b) establishes an integrated energy systems 
program at DOE in order to meet several stated objectives. The 
subsection directs that the Program be carried out by the 
Undersecretary of Energy in partnership with other relevant DOE 
offices, national laboratories, institutions of higher 
education, and the private sector. The subsection further 
directs the Secretary to establish goals and milestones for the 
Program.
    Subsection (c) sets forth the Program's authorized research 
areas, including technology innovation to further the expansion 
of emissions-reducing energy technologies to accommodate a 
modern, resilient grid system, and more effective thermal 
energy use, transport, and storage.
    Subsection (d) authorizes the Secretary to make grants to 
support the Program's goals.

Section 3. Report on duplicative programs

    Section 3 directs the Secretary to submit an annual report 
to Congress identifying any program that is duplicative of the 
Program established in section 2(b)(1).

                   COST AND BUDGETARY CONSIDERATIONS

    The Congressional Budget Office estimate of the costs of 
this measure has been requested but was not received at the 
time the report was filed. When the Congressional Budget Office 
completes its cost estimate, it will be posted on the internet 
at www.cbo.gov.

                      REGULATORY IMPACT EVALUATION

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out S. 2702. The bill is not a regulatory measure in 
the sense of imposing Government-established standards or 
significant economic responsibilities on private individuals 
and businesses.
    No personal information would be collected in administering 
the program. Therefore, there would be no impact on personal 
privacy.
    Little, if any, additional paperwork would result from the 
enactment of S. 2702, as ordered reported.

                   CONGRESSIONALLY DIRECTED SPENDING

    S. 2702, as ordered reported, does not contain any 
congressionally directed spending items, limited tax benefits, 
or limited tariff benefits as defined in rule XLIV of the 
Standing Rules of the Senate.

                        EXECUTIVE COMMUNICATIONS

    The testimony provided by the Department of Energy at the 
November 6, 2019, hearing on S. 2702 follows:

   Testimony of Assistant Secretary Daniel Simmons, Office of Energy 
       Efficiency and Renewable Energy, U.S. Department of Energy


                              introduction


    Chairman Cassidy, Ranking Member Heinrich, and Members of 
the Energy Subcommittee of the Committee on Energy and Natural 
Resources, thank you for the opportunity to testify today on 
legislation pertinent to the Department of Energy now pending 
in the Senate. My name is Daniel Simmons, and I am the 
Assistant Secretary for the Office of Energy Efficiency and 
Renewable Energy (EERE).
    As the Assistant Secretary, I am responsible for overseeing 
a broad portfolio of energy efficiency and renewable energy 
programs. The technologies in my portfolio advance America's 
economic growth and energy security while enhancing the 
reliability and resilience of the U.S. energy system. The 
Department of Energy supports improving the energy efficiency 
and reducing energy costs, while at the same time ensuring 
important performance standards are met or exceeded. For 
instance, we want to ensure schools and other buildings are 
sufficiently bright to ensure safety, and that water flow from 
faucets is strong enough to clean dirty hands. Today, I would 
like to share what relevant work my office has done and is 
doing in the areas that these bills address.
    I have been asked to testify on eleven (11) bills today, 
addressing a range of important energy issues. The 
Administration continues to review all of these bills. I 
appreciate the ongoing bipartisan efforts to address our 
Nation's energy challenges and I look forward to working with 
the Committee.


                                 bills


S. 2702--Integrated Energy Systems Act
    S. 2702, the Integrated Energy Systems Act, requires the 
Secretary of Energy to establish an integrated energy systems 
research, development, and demonstration program between 
multiple Department offices, to be known as the Integrated 
Energy Systems Program. The intent of the program is to 
maximize energy production and efficiency; provide reliable, 
competitive, and environmentally sustainable electricity to the 
grid; expand the use of emissions-reducing technologies into 
nonelectric sectors to achieve dramatic reductions in 
environmental emissions; and enable the energy infrastructure 
of the United States to support the quantity, variability in 
type, and variability in size of generation devices and smart 
load devices.
    The Department has provided technical assistance on this 
bill and looks forward to working with Congress as the 
legislative process moves forward.


                               conclusion


    Thank you again for the opportunity to testify before the 
Subcommittee today. The Department appreciates the ongoing 
bipartisan efforts to address our Nation's energy challenges, 
and looks forward to working with the Committee on the 
legislation on today's agenda and any future legislation. I 
would be happy to answer your questions.

                        CHANGES IN EXISTING LAW

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, the Committee notes that no 
changes in existing law are made by S. 2702 as ordered 
reported.

                                  [all]