SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Storage Technology for Renewable and 
Green Energy Act of 2010'' or the ``STORAGE 2010 Act''.

SEC. 2. ENERGY INVESTMENT CREDIT FOR ENERGY STORAGE PROPERTY CONNECTED 
              TO THE GRID.

    (a) Up to 20 Percent Credit Allowed.--Subparagraph (A) of section 
48(a)(2) of the Internal Revenue Code of 1986 is amended--
            (1) by striking ``and'' at the end of subclause (IV) of 
        clause (i),
            (2) by striking ``clause (i)'' in clause (ii) and inserting 
        ``clause (i) or (ii)'',
            (3) by redesignating clause (ii) as clause (iii), and
            (4) by inserting after clause (i) the following new clause:
                            ``(ii) as provided in subsection (c)(5)(D), 
                        up to 20 percent in the case of qualified 
                        energy storage property, and''.
    (b) Qualified Energy Storage Property.--Subsection (c) of section 
48 of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new paragraph:
            ``(5) Qualified energy storage property.--
                    ``(A) In general.--The term `qualified energy 
                storage property' means property--
                            ``(i) which is directly connected to the 
                        electrical grid, and
                            ``(ii) which is designed to receive 
                        electrical energy, to store such energy, and--
                                    ``(I) to convert such energy to 
                                electricity and deliver such 
                                electricity for sale, or
                                    ``(II) to use such energy to 
                                provide improved reliability or 
                                economic benefits to the grid.
                Such term may include hydroelectric pumped storage and 
                compressed air energy storage, regenerative fuel cells, 
                batteries, superconducting magnetic energy storage, 
                flywheels, thermal energy storage systems, and hydrogen 
                storage, or combination thereof, or any other 
                technologies as the Secretary, in consultation with the 
                Secretary of Energy, shall determine.
                    ``(B) Minimum capacity.--The term `qualified energy 
                storage property' shall not include any property unless 
                such property in aggregate has the ability to sustain a 
                power rating of at least 1 megawatt for a minimum of 1 
                hour.
                    ``(C) Electrical grid.--The term `electrical grid' 
                means the system of generators, transmission lines, and 
                distribution facilities which--
                            ``(i) are under the jurisdiction of the 
                        Federal Energy Regulatory Commission or State 
                        public utility commissions, or
                            ``(ii) are owned by--
                                    ``(I) the Federal government,
                                    ``(II) a State or any political 
                                subdivision of a State,
                                    ``(III) an electric cooperative 
                                that receives financing under the Rural 
                                Electrification Act of 1936 (7 U.S.C. 
                                901 et seq.) or that sells less than 
                                4,000,000 megawatt hours of electricity 
                                per year, or
                                    ``(IV) any agency, authority, or 
                                instrumentality of any one or more of 
                                the entities described in subclause (I) 
                                or (II), or any corporation which is 
                                wholly owned, directly or indirectly, 
                                by any one or more of such entities.
                    ``(D) Allocation of credits.--
                            ``(i) In general.--In the case of qualified 
                        energy storage property placed in service 
                        during the taxable year, the credit otherwise 
                        determined under subsection (a) for such year 
                        with respect to such property shall not exceed 
                        the amount allocated to such project under 
                        clause (ii).
                            ``(ii) National limitation and 
                        allocation.--There is a qualified energy 
                        storage property investment credit limitation 
                        of $1,500,000,000. Such limitation shall be 
                        allocated by the Secretary among qualified 
                        energy storage property projects selected by 
                        the Secretary, in consultation with the 
                        Secretary of Energy, for taxable years 
                        beginning after the date of the enactment of 
                        the STORAGE 2010 Act, except that not more than 
                        $30,000,000 shall be allocated to any project 
                        for all such taxable years.
                            ``(iii) Selection criteria.--In making 
                        allocations under clause (ii), the Secretary, 
                        in consultation with the Secretary of Energy, 
                        shall select only those projects which have a 
                        reasonable expectation of commercial viability, 
                        select projects representing a variety of 
                        technologies, applications, and project sizes, 
                        and give priority to projects which--
                                    ``(I) provide the greatest increase 
                                in reliability or the greatest economic 
                                benefit,
                                    ``(II) enable the greatest 
                                improvement in integration of renewable 
                                resources into the grid, or
                                    ``(III) enable the greatest 
                                increase in efficiency in operation of 
                                the grid.
                            ``(iv) Deadlines.--
                                    ``(I) In general.--If a project 
                                which receives an allocation under 
                                clause (ii) is not placed in service 
                                within 2 years after the date of such 
                                allocation, such allocation shall be 
                                invalid.
                                    ``(II) Special rule for 
                                hydroelectric pumped storage.--
                                Notwithstanding subclause (I), in the 
                                case of a hydroelectric pumped storage 
                                project, if such project has not 
                                received such permits or licenses as 
                                are determined necessary by the 
                                Secretary, in consultation with the 
                                Secretary of Energy, within 3 years 
                                after the date of such allocation, 
                                begun construction within 5 years after 
                                the date of such allocation, and been 
                                placed in service within 8 years after 
                                the date of such allocation, such 
                                allocation shall be invalid.
                                    ``(III) Special rule for compressed 
                                air energy storage.--Notwithstanding 
                                subclause (I), in the case of a 
                                compressed air energy storage project, 
                                if such project has not begun 
                                construction within 3 years after the 
                                date of the allocation and been placed 
                                in service within 5 years after the 
                                date of such allocation, such 
                                allocation shall be invalid.
                                    ``(IV) Exceptions.--The Secretary 
                                may extend the 2-year period in 
                                subclause (I) or the periods described 
                                in subclauses (II) and (III) on a 
                                project-by-project basis if the 
                                Secretary, in consultation with the 
                                Secretary of Energy, determines that 
                                there has been a good faith effort to 
                                begin construction or to place the 
                                project in service, whichever is 
                                applicable, and that any delay is 
                                caused by factors not in the taxpayer's 
                                control.
                    ``(E) Review and redistribution.--
                            ``(i) Review.--Not later than 4 years after 
                        the date of the enactment of the STORAGE 2010 
                        Act, the Secretary shall review the credits 
                        allocated under subparagraph (D) as of the date 
                        of such review.
                            ``(ii) Redistribution.--Upon the review 
                        described in clause (i), the Secretary may 
                        reallocate credits allocated under subparagraph 
                        (D) if the Secretary determines that--
                                    ``(I) there is an insufficient 
                                quantity of qualifying applications for 
                                certification pending at the time of 
                                the review, or
                                    ``(II) any allocation made under 
                                subparagraph (D)(ii) has been revoked 
                                pursuant to subparagraph (D)(iv) 
                                because the project subject to such 
                                allocation has been delayed.
                    ``(F) Disclosure of allocations.--The Secretary 
                shall, upon making an allocation under subparagraph 
                (D)(ii), publicly disclose the identity of the 
                applicant, the location of the project, and the amount 
                of the credit with respect to such applicant.
                    ``(G) Termination.--No credit shall be allocated 
                under subparagraph (D) for any period ending after 
                December 31, 2020.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to periods after the date of the enactment of this Act, under 
rules similar to the rules of section 48(m) of the Internal Revenue 
Code of 1986 (as in effect on the day before the date of the enactment 
of the Revenue Reconciliation Act of 1990).

SEC. 3. ENERGY STORAGE PROPERTY CONNECTED TO THE GRID ELIGIBLE FOR NEW 
              CLEAN RENEWABLE ENERGY BONDS.

    (a) In General.--Paragraph (1) of section 54C(d) of the Internal 
Revenue Code of 1986 is amended to read as follows:
            ``(1) Qualified renewable energy facility.--The term 
        `qualified renewable energy facility' means a facility which 
        is--
                    ``(A)(i) a qualified facility (as determined under 
                section 45(d) without regard to paragraphs (8) and (10) 
                thereof and to any placed in service date), or
                    ``(ii) a qualified energy storage property (as 
                defined in section 48(c)(5)), and
                    ``(B) owned by a public power provider, a 
                governmental body, or a cooperative electric 
                company.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to obligations issued after the date of the enactment of this Act.

SEC. 4. ENERGY INVESTMENT CREDIT FOR ONSITE ENERGY STORAGE.

    (a) Credit Allowed.--Clause (i) of section 48(a)(2)(A) of the 
Internal Revenue Code of 1986, as amended by this Act, is amended--
            (1) by striking ``and'' at the end of subclause (III),
            (2) by inserting ``and'' at the end of subclause (IV), and
            (3) by adding at the end the following new subclause:
                                    ``(V) qualified onsite energy 
                                storage property,''.
    (b) Qualified Onsite Energy Storage Property.--Subsection (c) of 
section 48 of the Internal Revenue Code of 1986, as amended by this 
Act, is amended by adding at the end the following new paragraph:
            ``(6) Qualified onsite energy storage property.--
                    ``(A) In general.--The term `qualified onsite 
                energy storage property' means property which--
                            ``(i) provides supplemental energy to 
                        reduce peak energy requirements primarily on 
                        the same site where the storage is located, or
                            ``(ii) is designed and used primarily to 
                        receive and store intermittent renewable energy 
                        generated onsite and to deliver such energy 
                        primarily for onsite consumption.
                Such term may include thermal energy storage systems 
                and property used to charge plug-in and hybrid electric 
                vehicles if such property or vehicles are equipped with 
                smart grid services which control time-of-day charging 
                and discharging of such vehicles. Such term shall not 
                include any property for which any other credit is 
                allowed under this chapter.
                    ``(B) Minimum capacity.--The term `qualified onsite 
                energy storage property' shall not include any property 
                unless such property in aggregate--
                            ``(i) has the ability to store the energy 
                        equivalent of at least 20 kilowatt hours of 
                        energy,
                            ``(ii) has the ability to have an output of 
                        the energy equivalent of 5 kilowatts of 
                        electricity for a period of 4 hours, and
                            ``(iii) has a roundtrip energy storage 
                        efficiency of not less than 80 percent.
                    ``(C) Limitation.--In the case of qualified onsite 
                energy storage property placed in service during the 
                taxable year, the credit otherwise determined under 
                subsection (a) for such year with respect to such 
                property shall not exceed $1,000,000.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to periods after the date of the enactment of this Act, under 
rules similar to the rules of section 48(m) of the Internal Revenue 
Code of 1986 (as in effect on the day before the date of the enactment 
of the Revenue Reconciliation Act of 1990).

SEC. 5. CREDIT FOR RESIDENTIAL ENERGY STORAGE EQUIPMENT.

    (a) Credit Allowed.--Subsection (a) of section 25C of the Internal 
Revenue Code of 1986 is amended--
            (1) by striking ``and'' at the end of paragraph (1),
            (2) by redesignating paragraph (2) as paragraph (3), and
            (3) by inserting after paragraph (1) the following new 
        paragraph:
            ``(2) 30 percent of the amount paid or incurred by the 
        taxpayer for qualified residential energy storage equipment 
        installed during such taxable year, and''.
    (b) Qualified Residential Energy Storage Equipment.--
            (1) In general.--Section 25C of the Internal Revenue Code 
        of 1986 is amended--
                    (A) by redesignating subsections (e), (f), and (g) 
                as subsections (f), (g), and (h), respectively, and
                    (B) by inserting after subsection (d) the following 
                new subsection:
    ``(d) Qualified Residential Energy Storage Equipment.--For purposes 
of this section, the term `qualified residential energy storage 
equipment' means property--
            ``(1) which is installed in or on a dwelling unit located 
        in the United States and owned and used by the taxpayer as the 
        taxpayer's principal residence (within the meaning of section 
        121), or on property owned by the taxpayer on which such a 
        dwelling unit is located,
            ``(2) which--
                    ``(A) provides supplemental energy to reduce peak 
                energy requirements primarily on the same site where 
                the storage is located, or
                    ``(B) is designed and used primarily to receive and 
                store intermittent renewable energy generated onsite 
                and to deliver such energy primarily for onsite 
                consumption,
            ``(3) which has a roundtrip energy storage efficiency of 
        not less than 80 percent, and
            ``(4) which--
                    ``(A) has the ability to store the energy 
                equivalent of at least 2 kilowatt hours of energy, and
                    ``(B) has the ability to have an output of the 
                energy equivalent of 500 watts of electricity for a 
                period of 4 hours.
Such term may include thermal energy storage systems and property used 
to charge plug-in and hybrid electric vehicles if such property or 
vehicles are equipped with smart grid services which control time-of-
day charging and discharging of such vehicles. Such term shall not 
include any property for which any other credit is allowed under this 
chapter.''.
            (2) Conforming amendment.--Section 1016(a)(33) of such Code 
        is amended by striking ``section 25C(f)'' and inserting 
        ``section 25C(g)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act.
Storage Technology for Renewable and Green Energy Act of 2010 or the STORAGE 2010 Act - Amends the Internal Revenue Code to: (1) allow, through 2019, a 20% energy tax credit for investment in energy storage property that is directly connected to the electrical grid (i.e., a system of generators, transmission lines, and distribution facilities) and that is designed to receive. store, and convert energy to electricity, deliver it for sale, or use such energy to provide improved reliability or economic benefits to the grid; (2) make such property eligible for new clean renewable energy bond financing; (3) allow a 30% energy tax credit for investment in energy storage property used at the site of energy storage; and (4) allow a 30% nonbusiness energy property tax credit for the installation of energy storage equipment in a principal residence.
A bill to amend the Internal Revenue Code of 1986 to provide for an energy investment credit for energy storage property connected to the grid, and for other purposes.