I 

114TH CONGRESS 

2D SESSION H. R. 4393 

To advance the integration of clean distributed energy into electric grids, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 25, 2016 

Ms. CASTOR of Florida (for herself and Mr. HANNA) introduced the following 

bill; which was referred to the Committee on Energy and Commerce, and 

in addition to the Committee on Science, Space, and Technology, for a 

period to be subsequently determined by the Speaker, in each case for 

consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To advance the integration of clean distributed energy into 

electric grids, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Clean Distributed En5 ergy Grid Integration Act’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds that— 


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1 (1) research by the Secretary of Energy and the 

2 Administrator of the Environmental Protection 

3 Agency has found that clean distributed energy tech4 nologies can create important values for both the 

5 host facility and the electric grid operator; 

6 (2) the values described in paragraph (1) can 

7 include, for the host facility— 

8 (A) energy bill savings; 

9 (B) additional revenue from offering ancil10 lary services to the electric grid operator; 

11 (C) increased electric reliability in the 

12 event of grid outages; and 

13 (D) improved electric power quality; 

14 (3) the values described in paragraph (1) can 

15 include, for the electric grid operator— 

16 (A) avoiding the need for transmission and 

17 distribution upgrade investments; 

18 (B) enhanced grid stability by providing 

19 reactive power; 

20 (C) voltage and frequency stabilization; 

21 and 

22 (D) more reliable and stable operation of 

23 the grid by providing dispatchable energy to the 

24 grid during periods of insufficient capacity or 

25 supply; and 


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1 (4) new advances in intelligent sensing and sim2 ulation and control technologies offer the potential 

3 to enhance the benefits of clean distributed genera4 tion to both the host facility and the electric grid op5 erator from dynamic, adaptive, and anticipatory re6 sponse to changing grid conditions. 

7 SEC. 3. DEFINITIONS. 

8 In this Act: 

9 (1) ANCILLARY SERVICE.—The term ‘‘ancillary 

10 service’’ means those services necessary to support 

11 the transmission of electric power from seller to pur12 chaser given the obligations of control areas and 

13 transmitting utilities within those control areas to 

14 maintain reliable operations of the interconnected 

15 transmission system. 

16 (2) CLEAN DISTRIBUTED ENERGY.—The term 

17 ‘‘clean distributed energy’’ means energy tech18 nologies that are located on the customer site oper19 ating on the customer side of the electric meter and 

20 are interconnected with the electric grid. 

21 (3) COMBINED HEAT AND POWER TECH22 NOLOGY.—The term ‘‘combined heat and power 

23 technology’’ means the generation of electric energy 

24 and heat in a single, integrated system that meets 

25 the efficiency criteria in clauses (ii) and (iii) of secVerDate Sep 11 2014 21:20 Jan 25, 2016 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H4393.IH H4393

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1 tion 48(c)(3)(A) of the Internal Revenue Code of 

2 1986, under which heat that is conventionally re3 jected is recovered and used to meet thermal energy 

4 requirements. 

5 (4) ENERGY STORAGE.—The term ‘‘energy 

6 storage’’ means technologies that store electric en7 ergy and are able to discharge on demand to meet 

8 customer or grid needs for electric energy. 

9 (5) FUEL CELL.—The term ‘‘fuel cell’’ means a 

10 device that produces electric energy directly from a 

11 chemical reaction. 

12 (6) GRID.—The term ‘‘grid’’ means the electric 

13 grid that is composed on both distribution and 

14 transmission lines, and associated facilities, includ15 ing substations, sensors, and operational controls. 

16 (7) INTELLIGENCE.—The term ‘‘intelligence’’ 

17 means any devices or technologies that manifest 

18 adaptive, anticipatory, and dynamic optimization be19 havior. 

20 (8) QUALIFIED WASTE HEAT RESOURCE.— 

21 (A) IN GENERAL.—The term ‘‘qualified 

22 waste heat resource’’ means— 

23 (i) exhaust heat or flared gas from 

24 any industrial process; 


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1 (ii) waste gas or industrial tail gas 

2 that would otherwise be flared, incinerated, 

3 or vented; 

4 (iii) a pressure drop in any gas for an 

5 industrial or commercial process; or 

6 (iv) any other form of waste heat re7 source, as determined by the Secretary. 

8 (B) EXCLUSION.—The term ‘‘qualified 

9 waste heat resource’’ does not include a heat re10 source from a process the primary purpose of 

11 which is the generation of electricity using a 

12 fossil fuel. 

13 (9) SECRETARY.—The term ‘‘Secretary’’ means 

14 the Secretary of Energy. 

15 (10) WASTE HEAT TO POWER TECHNOLOGY.— 

16 The term ‘‘waste heat to power technology’’ means 

17 a system that generates electricity through the re18 covery of a qualified waste heat resource. 

19 SEC. 4. RESEARCH AND DEPLOYMENT PLAN FOR EN20 HANCED INTEGRATION OF CLEAN DISTRIB21 UTED ENERGY WITH THE GRID. 

22 (a) IN GENERAL.—The Secretary shall carry out ef23 forts for advancing the integration of clean distributed en24 ergy into electric grids. 


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1 (b) STUDY AND REPORT ON THE STATUS OF GRID

2 INTEGRATION.— 

3 (1) IN GENERAL.—In carrying out the efforts 

4 under subsection (a) and not later than 180 days 

5 after the date of enactment of this Act, the Sec6 retary shall conduct a study on the status of integra7 tion of clean distributed energy into the grid, identi8 fying any issues that require additional research or 

9 regulatory development. 

10 (2) INCLUSIONS.—In conducting the study 

11 under paragraph (1), the Secretary shall— 

12 (A) identify and quantify the benefits to all 

13 stakeholders of expanded integration of clean 

14 distributed energy resources into the grid; 

15 (B) identify any technical issues that re16 quire research to identify solutions; and 

17 (C) identify any regulatory barriers that 

18 inhibit the expanded integration of clean dis19 tributed energy resources into the grid. 

20 (3) REPORT.—Not later than 1 year after the 

21 date of enactment of this Act, the Secretary shall 

22 submit to Congress a report describing the results of 

23 the study conducted under paragraph (1). 


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1 (4) FUNDING.—The Secretary shall use unobli2 gated funds of the Department of Energy to carry 

3 out this subsection. 

4 (c) RESEARCH INTO THE TECHNICAL BARRIERS TO

5 THE INTEGRATION OF CLEAN DISTRIBUTED ENERGY

6 WITH THE GRID.— 

7 (1) IN GENERAL.—Not later than 18 months 

8 after the date of enactment of this Act, the Sec9 retary shall— 

10 (A) issue a solicitation for research pro11 posals to address the technical barriers identi12 fied in the report submitted under subsection 

13 (b)(3); and 

14 (B) make grants to those applicants with 

15 research proposals selected by the Secretary in 

16 accordance with paragraph (2). 

17 (2) CRITERIA.—The Secretary shall select re18 search proposals to receive a grant under this sub19 section on the basis of merit, using criteria identified 

20 by the Secretary, including the likelihood that the 

21 research results will address critical barriers identi22 fied by the Secretary. 

23 (3) FUNDING.—Beginning in the first full fiscal 

24 year following the date of enactment of this Act, and 

25 annually thereafter for 2 years, the Secretary may 


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1 request funding as necessary to carry out this sub2 section, but in no case shall funding exceed 

3 $5,000,000 in any 1 fiscal year. 

4 (d) CREATION OF A STAKEHOLDER WORKING

5 GROUP.— 

6 (1) IN GENERAL.—Not later than 18 months 

7 after the date of enactment of this Act, the Sec8 retary shall convene a working group (referred to in 

9 this subsection as the ‘‘Group’’) to address regu10 latory barriers to deployment of intelligent grid inte11 gration of clean distributed energy technologies. 

12 (2) PURPOSE.—The purpose of the Group is to 

13 provide guidance on how to address the technical, 

14 regulatory and economic factors that limit wide15 spread integration of grid-level clean distributed en16 ergy use in order to advance the integration of clean 

17 distributed energy into electric grids. 

18 (3) MEMBERSHIP.— 

19 (A) IN GENERAL.—The Group shall be 

20 composed of representatives of all groups deter21 mined by the Secretary to have a material in22 terest in the development, implementation, 

23 siting, and integration of clean distributed en24 ergy technology or systems into the electric 

25 grid. 


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1 (B) CRITERIA.—Members shall be se2 lected— 

3 (i) from representatives that apply as 

4 a result of a public announcement from the 

5 Secretary; and 

6 (ii) by the Secretary based on quali7 fications and balance of interests rep8 resented by the selected individuals. 

9 (4) DUTIES.—The duties of the Group shall 

10 be— 

11 (A) to review the regulatory barriers iden12 tified in the report prepared by the Secretary 

13 under subsection (b)(3); 

14 (B) to identify any additional regulatory 

15 barriers that inhibit the installation of distrib16 uted energy; and 

17 (C) to recommend to the Secretary any ac18 tions that should be undertaken to remove these 

19 barriers. 

20 (5) REPORT.—Not later than 3 years after the 

21 date of enactment of this Act, the Secretary shall 

22 prepare and submit to Congress a report based on 

23 the recommendations of the Group under paragraph 

24 (4)(C), to be made publicly available. 


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1 (6) FUNDING.—The Secretary may request 

2 funding as necessary to carry out this subsection, 

3 but in no case shall funding exceed $2,000,000 in 

4 any 1 fiscal year. 

5 (e) DEMONSTRATIONS OF INTELLIGENT GRID INTE6 GRATION OF CLEAN DISTRIBUTED ENERGY SYSTEMS.— 

7 (1) IN GENERAL.—Based on the findings in the 

8 reports conducted under this section and not later 

9 than 3 years after the date of enactment of this Act, 

10 the Secretary shall issue a solicitation for dem11 onstration of integration of distributed energy re12 sources into the grid. 

13 (2) ELIGIBLE ENTITIES.—Any individual entity 

14 or group of entities may submit to the Secretary 

15 proposals for demonstration projects based on the 

16 solicitation described in paragraph (1), including— 

17 (A) State and local agencies; 

18 (B) public institutions; 

19 (C) private companies; 

20 (D) electric utilities; and 

21 (E) equipment manufacturers. 

22 (3) GRANTS AUTHORIZED.—The Secretary may 

23 make grants, in amounts not to exceed a total of 

24 $5,000,000, to eligible entities to carry out dem25 onstration projects, to be selected based on— 


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1 (A) the technical merits of the demonstra2 tion project; 

3 (B) the likelihood that the demonstration 

4 project will address critical barriers identified 

5 by the Secretary under this section; and 

6 (C) the share of non-Federal funds for the 

7 demonstration project. 

8 (4) FUNDING.—Beginning in the third full fis9 cal year following the date of enactment of this Act, 

10 and annually thereafter for 3 years, the Secretary 

11 may request funding as necessary to carry out this 

12 subsection, but in no case shall funding exceed 

13 $15,000,000 in any 1 fiscal year. 

14 (f) REPORT.—The Secretary annually shall submit to 

15 Congress a report that— 

16 (1) describes the progress made in carrying out 

17 this section; and 

18 (2) identifies any technical or regulatory issues 

19 that require legislative action. 

Æ 


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