Advancing Grid Storage Act of 2021

I 117TH CONGRESS 1ST SESSION H. R. 2822 To require the Secretary of Energy to carry out an energy storage research program, loan program, and technical assistance and grant program, and for other purposes. IN THE HOUSE OF REPRESENTATIVES APRIL 22, 2021 Mr. TAKANO introduced the following bill; which was referred to the Com- mittee on Energy and Commerce, and in addition to the Committee on Science, Space, and Technology, for a period to be subsequently deter- mined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To require the Secretary of Energy to carry out an energy storage research program, loan program, and technical assistance and grant program, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Advancing Grid Stor- 4 age Act of 2021’’. 5 SEC. 2. DEFINITIONS. 6 In this Act: 7 VerDate Sep 11 2014 22:34 Jun 07, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2822.IH H2822 pamtmann on DSKBC07HB2PROD with BILLS 2 •HR 2822 IH (1) ENERGY STORAGE SYSTEM.—The term ‘‘en- 1 ergy storage system’’ means a system or strategy 2 that improves the ability to shift the dispatch of en- 3 ergy in time, across multiple timescales. 4 (2) ISLANDING.—The term ‘‘islanding’’ means 5 a distributed generator or energy storage device con- 6 tinuing to power a location in the absence of electric 7 power from the primary source. 8 (3) LOAN.—The term ‘‘loan’’ has the meaning 9 given the term ‘‘direct loan’’ in section 502 of the 10 Federal Credit Reform Act of 1990 (2 U.S.C. 661a). 11 (4) MICROGRID.—The term ‘‘microgrid’’ means 12 an integrated energy system consisting of inter- 13 connected loads and distributed energy resources, in- 14 cluding generators and energy storage devices, with- 15 in clearly defined electrical boundaries that— 16 (A) acts as a single controllable entity with 17 respect to the grid; and 18 (B) can connect and disconnect from the 19 grid to operate in both grid-connected mode 20 and islanding mode. 21 (5) RENEWABLE ENERGY SOURCE.—The term 22 ‘‘renewable energy source’’ includes— 23 (A) biomass; 24 (B) geothermal energy; 25 VerDate Sep 11 2014 22:34 Jun 07, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2822.IH H2822 pamtmann on DSKBC07HB2PROD with BILLS 3 •HR 2822 IH (C) hydropower; 1 (D) landfill gas; 2 (E) municipal solid waste; 3 (F) ocean (including tidal, wave, current, 4 and thermal) energy; 5 (G) organic waste; 6 (H) photosynthetic processes; 7 (I) photovoltaic energy; 8 (J) solar energy; and 9 (K) wind. 10 (6) SECRETARY.—The term ‘‘Secretary’’ means 11 the Secretary of Energy. 12 SEC. 3. ENERGY STORAGE RESEARCH PROGRAM. 13 (a) IN GENERAL.—The Secretary shall carry out, 14 within the Office of Electricity, a program for the research 15 of energy storage systems. 16 (b) AUTHORIZATION OF APPROPRIATIONS.—There is 17 authorized to be appropriated to carry out this section 18 $50,000,000. 19 SEC. 4. ENERGY STORAGE SYSTEM DEMONSTRATION AND 20 DEPLOYMENT LOAN PROGRAM. 21 (a) LOAN PROGRAM.— 22 (1) IN GENERAL.—Subject to the provisions of 23 this subsection and subsections (b) and (c), the Sec- 24 VerDate Sep 11 2014 22:34 Jun 07, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2822.IH H2822 pamtmann on DSKBC07HB2PROD with BILLS 4 •HR 2822 IH retary shall carry out a program to provide to eligi- 1 ble entities— 2 (A) loans for the demonstration and de- 3 ployment of energy storage systems in a specific 4 project; and 5 (B) loans to provide funding for programs 6 to finance the demonstration and deployment of 7 multiple energy storage systems through a re- 8 volving loan fund, credit enhancement program, 9 or other financial assistance program. 10 (2) ELIGIBILITY.—Entities eligible to receive a 11 loan under paragraph (1) include— 12 (A) a State, territory, or possession of the 13 United States; 14 (B) a State energy office; 15 (C) a tribal organization (as defined in sec- 16 tion 4 of the Indian Self-Determination and 17 Education Assistance Act (25 U.S.C. 5304)); 18 (D) an institution of higher education (as 19 defined in section 101 of the Higher Education 20 Act of 1965 (20 U.S.C. 1001)); and 21 (E) an electric utility, including— 22 (i) a rural electric cooperative; 23 (ii) a municipally owned electric util- 24 ity; and 25 VerDate Sep 11 2014 22:34 Jun 07, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2822.IH H2822 pamtmann on DSKBC07HB2PROD with BILLS 5 •HR 2822 IH (iii) an investor-owned utility. 1 (3) SELECTION REQUIREMENTS.—In selecting 2 eligible entities to receive a loan under this section, 3 the Secretary shall, to the maximum extent prac- 4 ticable, ensure— 5 (A) regional diversity among eligible enti- 6 ties that receive the loans, including participa- 7 tion by rural States and small States; and 8 (B) that specific projects and programs se- 9 lected for loans— 10 (i) expand on the existing technology 11 demonstration and deployment programs 12 of the Department of Energy; and 13 (ii) are designed to achieve 1 or more 14 of the objectives described in paragraph 15 (4). 16 (4) OBJECTIVES.—Each demonstration and de- 17 ployment project, and each program, selected for a 18 loan under paragraph (1) shall include 1 or more of 19 the following objectives: 20 (A) With respect to energy storage sys- 21 tems, the improvement of— 22 (i) the feasibility of microgrids or 23 islanding; or 24 VerDate Sep 11 2014 22:34 Jun 07, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H2822.IH H2822 pamtmann on DSKBC07HB2PROD with BILLS 6 •HR 2822 IH (ii) the transmission and distribution 1 capability to improve reliability in rural 2 areas, including high energy cost rural 3 areas. 4 (B) Use of energy storage systems to im- 5 prove the security of emergency response infra- 6 structure. 7 (C) Integration of energy storage systems 8 with a renewable energy source, at the source 9 or away from the source. 10 (D) Use of energy storage systems to pro- 11 vide ancillary services for grid management. 12 (E) Advancement of power conversion sys- 13 tems to make the systems smarter, more effi- 14 cient, able to communicate with other indenters, 15 and able to control voltage. 16 (F) Use of energy storage systems to opti- 17 mize transmission and distribution operation 18 and power quality to address overloaded lines 19 and maintenance of transformers and sub- 20 stations. 21 (G) Use of energy storage systems for 22 peak load management of homes, businesses, 23 and the grid, particularly to offset investments 24 in new grid capacity. 25 VerDate Sep 11 2014 22:34 Jun 07, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H2822.IH H2822 pamtmann on DSKBC07HB2PROD with BILLS 7 •HR 2822 IH (H) Use of energy storage system devices 1 to meet electricity demand during nonpeak gen- 2 eration periods to make better use of existing 3 grid assets. 4 (5) RESTRICTION ON USE OF FUNDS.—Any eli- 5 gible entity that receives a loan under paragraph (1) 6 may only use the loan to fund projects for, and pro- 7 grams relating to, the demonstration and deploy- 8 ment of energy storage systems in households, busi- 9 nesses, and communities. 10 (b) LOAN TERMS AND CONDITIONS.— 11 (1) TERMS AND CONDITIONS.—Notwithstanding 12 any other provision of law, in providing a loan under 13 this section, the Secretary shall provide the loan on 14 such terms and conditions as the Secretary deter- 15 mines, after consultation with the Secretary of the 16 Treasury, in accordance with this section. 17 (2) SPECIFIC APPROPRIATION.—No loan shall 18 be made under this section unless an appropriation 19 for the full amount of the loan has been specifically 20 provided for that purpose. 21 (3) REPAYMENT.—No loan shall be made under 22 this section unless the Secretary determines that 23 there is reasonable prospect of repayment of the 24 principal and interest by the borrower of the loan. 25 VerDate Sep 11 2014 22:34 Jun 07, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H2822.IH H2822 pamtmann on DSKBC07HB2PROD with BILLS 8 •HR 2822 IH (4) INTEREST RATE.—A loan provided under 1 this section shall bear interest at a fixed rate that 2 is equal or approximately equal, in the determination 3 of the Secretary, to the interest rate for Treasury 4 securities of comparable maturity. 5 (5) TERM.—The term of a loan provided under 6 this section shall require full repayment over a pe- 7 riod not to exceed the lesser of— 8 (A) 20 years; or 9 (B) 90 percent of the projected useful life 10 of the physical asset to be financed by the loan 11 (as determined by the Secretary). 12 (6) USE OF PAYMENTS.—Payments of principal 13 and interest on a loan provided under this section 14 shall— 15 (A) be retained by the Secretary to support 16 energy research and development activities; and 17 (B) remain available until expended, sub- 18 ject to such conditions as are contained in an- 19 nual appropriations Acts. 20 (7) NO PENALTY ON EARLY REPAYMENT.—The 21 Secretary may not assess any penalty for early re- 22 payment of a loan provided under this section. 23 (8) RETURN OF UNUSED PORTION.—In order to 24 receive a loan under this section, an eligible entity 25 VerDate Sep 11 2014 22:34 Jun 07, 2021 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H2822.IH H2822 pamtmann on DSKBC07HB2PROD with BILLS 9 •HR 2822 IH shall agree to return to the general fund of the 1 Treasury any portion of the loan amount that is un- 2 used by the eligible entity within a reasonable period 3 of time after the date of the disbursement of the 4 loan, as determined by the Secretary. 5 (9) COMPARABLE WAGE RATES.—Each laborer 6 and mechanic employed by a contractor or subcon- 7 tractor in performance of construction work fi- 8 nanced, in whole or in part, by a loan provided 9 under this section shall be paid wages at rates not 10 less than the rates prevailing on similar construction 11 in the locality as determined by the Secretary of 12 Labor in accordance with subchapter IV of chapter 13 31 of title 40, United States Code. 14 (c) RULES AND PROCEDURES; DISBURSEMENT OF 15 LOANS.— 16 (1) RULES AND PROCEDURES.—Not later than 17 180 days after the date of enactment of this Act, the 18 Secretary shall adopt rules and procedures for car- 19 rying out the loan program under subsection (a). 20 (2) DISBURSEMENT OF LOANS.—Not later than 21 1 year after the date on which the rules and proce- 22 dures under paragraph (1) are adopted, the Sec- 23 retary shall disburse the initial loans provided under 24 this section. 25 VerDate Sep 11 2014 22:34 Jun 07, 2021 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H2822.IH H2822 pamtmann on DSKBC07HB2PROD with BILLS 10 •HR 2822 IH (d) REPORTS.—Not later than 2 years after the date 1 of receipt of the loan and annually thereafter for the term 2 of the loan, an eligible entity that receives a loan under 3 this section shall submit to the Secretary a report describ- 4 ing the performance of each program and activity carried 5 out using the loan, including itemized loan performance 6 data. 7 (e) AUTHORIZATION OF APPROPRIATIONS.—There 8 are authorized to be appropriated to carry out this section 9 such sums as are necessary. 10 SEC. 5. TECHNICAL ASSISTANCE AND GRANT PROGRAM. 11 (a) PROGRAM.— 12 (1) IN GENERAL.—The Secretary, in consulta- 13 tion with the Assistant Secretary, Office of Elec- 14 tricity, shall carry out a technical assistance and 15 grant program (referred to in this section as the 16 ‘‘program’’)— 17 (A) to disseminate information and provide 18 technical assistance directly to eligible entities 19 so the eligible entities can identify, evaluate, 20 plan, and design energy storage systems; and 21 (B) to make grants to eligible entities so 22 that the eligible entities may contract to obtain 23 technical assistance to identify, evaluate, plan, 24 and design energy storage systems. 25 VerDate Sep 11 2014 22:34 Jun 07, 2021 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H2822.IH H2822 pamtmann on DSKBC07HB2PROD with BILLS 11 •HR 2822 IH (2) TECHNICAL ASSISTANCE.—The technical 1 assistance described in paragraph (1) shall include 2 assistance with 1 or more of the following activities 3 relating to energy storage systems: 4 (A) Identification of opportunities to use 5 energy storage systems. 6 (B) Assessment of technical and economic 7 characteristics. 8 (C) Utility interconnection. 9 (D) Permitting and siting issues. 10 (E) Business planning and financial anal- 11 ysis. 12 (F) Engineering design. 13 (3) INFORMATION DISSEMINATION.—The infor- 14 mation disseminated under paragraph (1)(A) shall 15 include— 16 (A) information relating to the topics de- 17 scribed in paragraph (2), including case studies 18 of successful examples; 19 (B) computer software for assessment, de- 20 sign, and operation and maintenance of energy 21 storage systems; and 22 (C) public databases that track the oper- 23 ation and deployment of existing and planned 24 energy storage systems. 25 VerDate Sep 11 2014 22:34 Jun 07, 2021 Jkt 019200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H2822.IH H2822 pamtmann on DSKBC07HB2PROD with BILLS 12 •HR 2822 IH (b) ELIGIBILITY.—Any nonprofit or for-profit entity 1 shall be eligible to receive technical assistance and grants 2 under the program. 3 (c) APPLICATIONS.— 4 (1) IN GENERAL.—An eligible entity desiring 5 technical assistance or grants under the program 6 shall submit to the Secretary an application at such 7 time, in such manner, and containing such informa- 8 tion as the Secretary may require. 9 (2) APPLICATION PROCESS.—The Secretary 10 shall seek applications for technical assistance and 11 grants under the program— 12 (A) on a competitive basis; and 13 (B) on a periodic basis, but not less fre- 14 quently than once every 12 months. 15 (3) PRIORITIES.—In selecting eligible entities 16 for technical assistance and grants under the pro- 17 gram, the Secretary shall give priority to eligible en- 18 tities with projects that have the greatest potential 19 for— 20 (A) facilitating the use of renewable energy 21 sources; 22 (B) strengthening the reliability and resil- 23 iency of energy infrastructure to the impact of 24 VerDate Sep 11 2014 22:34 Jun 07, 2021 Jkt 019200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H2822.IH H2822 pamtmann on DSKBC07HB2PROD with BILLS 13 •HR 2822 IH extreme weather events, power grid failures, 1 and interruptions in supply of fossil fuels; 2 (C) improving the feasibility of microgrids 3 or islanding, particularly in [Text truncated for display. 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