II 

115TH CONGRESS 

1ST SESSION S. 1851 

To require the Secretary of Energy to establish an energy storage research 

program, demonstration and deployment program, and technical assistance and grant program, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 25, 2017 

Mr. FRANKEN (for himself and Mr. HEINRICH) introduced the following bill; 

which was read twice and referred to the Committee on Energy and Natural Resources 

A BILL 

To require the Secretary of Energy to establish an energy 

storage research program, demonstration and deployment 

program, and technical assistance and grant program, 

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 ‘‘Advancing Grid Stor5 age Act of 2017’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act: 


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1 (1) ENERGY STORAGE SYSTEM.—The term ‘‘en2 ergy storage system’’ means equipment or facilities 

3 capable of absorbing energy, storing the energy for 

4 a period of time, and dispatching the energy, that— 

5 (A) use mechanical, electrochemical, or 

6 thermal processes to store energy that was gen7 erated at an earlier time for use at a later time; 

8 (B) use mechanical, electrochemical, or 

9 thermal processes to store energy generated 

10 from mechanical processes that would otherwise 

11 be wasted for delivery at a later time; or 

12 (C) store thermal energy for direct use for 

13 heating or cooling at a later time in a manner 

14 that avoids the need to use electricity at that 

15 later time, as is offered by grid-enabled water 

16 heaters. 

17 (2) ISLANDING.—The term ‘‘islanding’’ means 

18 a distributed generator or energy storage device con19 tinuing to power a location in the absence of electric 

20 power from the primary source. 

21 (3) MICROGRID.—The term ‘‘microgrid’’ means 

22 an integrated energy system consisting of inter23 connected loads and distributed energy resources, in24 cluding generators and energy storage devices, with25 in clearly defined electrical boundaries that— 


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1 (A) acts as a single controllable entity with 

2 respect to the grid; and 

3 (B) can connect and disconnect from the 

4 grid to operate in both grid-connected mode 

5 and island mode. 

6 (4) RENEWABLE ENERGY SOURCE.—The term 

7 ‘‘renewable energy source’’ includes— 

8 (A) biomass; 

9 (B) geothermal energy; 

10 (C) hydropower; 

11 (D) landfill gas; 

12 (E) municipal solid waste; 

13 (F) ocean (including tidal, wave, current, 

14 and thermal) energy; 

15 (G) organic waste; 

16 (H) photosynthetic processes; 

17 (I) photovoltaic energy; 

18 (J) solar energy; and 

19 (K) wind. 

20 (5) SECRETARY.—The term ‘‘Secretary’’ means 

21 the Secretary of Energy. 

22 SEC. 3. ENERGY STORAGE RESEARCH PROGRAM. 

23 (a) IN GENERAL.—There is established within the 

24 Advanced Research Projects Agency—Energy established 

25 by section 5012(b) of the America COMPETES Act (42 


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1 U.S.C. 16538(b)) a program for the research of energy 

2 storage systems, components, and materials. 

3 (b) AUTHORIZATION OF APPROPRIATIONS.—There is 

4 authorized to be appropriated to carry out this section 

5 $50,000,000 for the period of fiscal years 2018 through 

6 2022. 

7 SEC. 4. TECHNICAL ASSISTANCE AND GRANT PROGRAM. 

8 (a) ESTABLISHMENT.— 

9 (1) IN GENERAL.—The Secretary, in consulta10 tion with the Assistant Secretary for Electricity De11 livery and Energy Reliability, shall establish a tech12 nical assistance and grant program (referred to in 

13 this section as the ‘‘program’’)— 

14 (A) to disseminate information and provide 

15 technical assistance directly to eligible entities 

16 so the eligible entities can identify, evaluate, 

17 plan, design, and develop processes to procure 

18 energy storage systems; and 

19 (B) to make grants to eligible entities so 

20 that the eligible entities may contract to obtain 

21 technical assistance to identify, evaluate, plan, 

22 design, and develop processes to procure energy 

23 storage systems. 

24 (2) TECHNICAL ASSISTANCE.— 


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1 (A) IN GENERAL.—The technical assist2 ance described in paragraph (1) shall include 

3 assistance with one or more of the following ac4 tivities relating to energy storage systems: 

5 (i) Identification of opportunities to 

6 use energy storage systems. 

7 (ii) Assessment of technical and eco8 nomic characteristics. 

9 (iii) Utility interconnection. 

10 (iv) Permitting and siting issues. 

11 (v) Business planning and financial 

12 analysis. 

13 (vi) Engineering design. 

14 (B) EXCLUSION.—The technical assistance 

15 described in paragraph (1) shall not include as16 sistance relating to modification of Federal, 

17 State, or local regulations or policies relating to 

18 energy storage systems. 

19 (3) INFORMATION DISSEMINATION.—The infor20 mation disseminated under paragraph (1)(A) shall 

21 include— 

22 (A) information relating to the topics de23 scribed in paragraph (2), including case studies 

24 of successful examples; 


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1 (B) computer software for assessment, de2 sign, and operation and maintenance of energy 

3 storage systems; and 

4 (C) public databases that track the oper5 ation and deployment of existing and planned 

6 energy storage systems. 

7 (b) ELIGIBILITY.—Any nonprofit or for-profit entity 

8 shall be eligible to receive technical assistance and grants 

9 under the program. 

10 (c) APPLICATIONS.— 

11 (1) IN GENERAL.—An eligible entity desiring 

12 technical assistance or grants under the program 

13 shall submit to the Secretary an application at such 

14 time, in such manner, and containing such informa15 tion as the Secretary may require. 

16 (2) APPLICATION PROCESS.—The Secretary 

17 shall seek applications for technical assistance and 

18 grants under the program— 

19 (A) on a competitive basis; and 

20 (B) on a periodic basis, but not less fre21 quently than once every 12 months. 

22 (3) PRIORITIES.—In selecting eligible entities 

23 for technical assistance and grants under the pro24 gram, the Secretary shall give priority to eligible enVerDate Sep 11 2014 20:50 Sep 26, 2017 Jkt 069200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S1851.IS S1851

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1 tities with projects that have the greatest potential 

2 for— 

3 (A) strengthening the reliability and resil4 iency of energy infrastructure to the impact of 

5 extreme weather events, power grid failures, 

6 and interruptions in supply of fossil fuels; 

7 (B) improving the feasibility of microgrids 

8 or islanding, particularly in rural areas, includ9 ing high energy cost rural areas; 

10 (C) facilitating the use of renewable energy 

11 resources; 

12 (D) minimizing environmental impact, in13 cluding regulated air pollutants and greenhouse 

14 gas emissions; and 

15 (E) maximizing local job creation. 

16 (d) GRANTS.—On application by an eligible entity, 

17 the Secretary may award grants to the eligible entity to 

18 provide funds to cover not more than— 

19 (1) 100 percent of the costs of the initial as20 sessment to identify system benefits of deploying en21 ergy storage systems; 

22 (2) 75 percent of the cost of guidance relating 

23 to methods to assess energy storage in long-term re24 source planning and resource procurement; 


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1 (3) 60 percent of the cost of studies to assess 

2 the cost-benefit ratio of energy storage systems; and 

3 (4) 50 percent of the cost of guidance on com4 plying with State and local regulatory technical 

5 standards, including siting and permitting stand6 ards. 

7 (e) RULES AND PROCEDURES.— 

8 (1) RULES.—Not later than 180 days after the 

9 date of enactment of this Act, the Secretary shall 

10 adopt rules and procedures for carrying out the pro11 gram. 

12 (2) GRANTS.—Not later than 120 days after 

13 the date of issuance of the rules and procedures for 

14 the program, the Secretary shall issue grants under 

15 this section. 

16 (f) REPORTS.—The Secretary shall submit to Con17 gress and make available to the public— 

18 (1) not less frequently than once every 2 years, 

19 a report describing the performance of the program 

20 under this section, including a synthesis and analysis 

21 of any information the Secretary requires grant re22 cipients to provide to the Secretary as a condition of 

23 receiving a grant; and 

24 (2) on termination of the program under this 

25 section, an assessment of the success of, and eduVerDate Sep 11 2014 20:50 Sep 26, 2017 Jkt 069200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S1851.IS S1851

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1 cation provided by, the measures carried out by eli2 gible entities under the program. 

3 (g) AUTHORIZATION OF APPROPRIATIONS.—There is 

4 authorized to be appropriated to carry out this section 

5 $100,000,000 for the period of fiscal years 2018 through 

6 2022, to remain available until expended. 

7 SEC. 5. ENERGY STORAGE SYSTEM DEMONSTRATION AND 

8 DEPLOYMENT PROGRAM. 

9 (a) ENERGY STORAGE GRANT PROGRAM.— 

10 (1) ESTABLISHMENT.—The Secretary shall es11 tablish a competitive grant program for pilot energy 

12 storage systems, as identified by the Secretary, that 

13 use either— 

14 (A) a single system; or 

15 (B) aggregations of multiple systems. 

16 (2) ELIGIBILITY.—Entities eligible to receive a 

17 grant under paragraph (1) include— 

18 (A) a State, territory, or possession of the 

19 United States; 

20 (B) a State energy office; 

21 (C) a tribal organization (as defined in sec22 tion 4 of the Indian Self-Determination and 

23 Education Assistance Act (25 U.S.C. 5304)); 


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1 (D) an institution of higher education (as 

2 defined in section 101 of the Higher Education 

3 Act of 1965 (20 U.S.C. 1001)); and 

4 (E) an electric utility, including— 

5 (i) a rural electric cooperative; 

6 (ii) a municipally owned electric util7 ity; and 

8 (iii) an investor-owned utility. 

9 (3) SELECTION REQUIREMENTS.—In selecting 

10 eligible entities to receive a grant under this section, 

11 the Secretary shall, to the maximum extent prac12 ticable— 

13 (A) ensure regional diversity among eligi14 ble entities that receive the grants, including 

15 participation by rural States and small States; 

16 (B) ensure that specific projects selected 

17 for grants— 

18 (i) expand on the existing technology 

19 demonstration and deployment programs 

20 of the Department of Energy; and 

21 (ii) are designed to achieve one or 

22 more of the objectives described in para23 graph (4); and 

24 (C) prioritize projects from eligible entities 

25 that do not have an energy storage system. 


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1 (4) OBJECTIVES.—Each demonstration and de2 ployment project selected for a grant under para3 graph (1) shall include one or more of the following 

4 objectives: 

5 (A) To improve the security of critical in6 frastructure and emergency response systems. 

7 (B) To improve the reliability of the trans8 mission and distribution system, particularly in 

9 rural areas, including high energy cost rural 

10 areas. 

11 (C) To optimize transmission or distribu12 tion system operation and power quality to 

13 defer or avoid costs of replacing or upgrading 

14 electric grid infrastructure, including trans15 formers and substations. 

16 (D) To supply energy at peak periods of 

17 demand on the electric grid or during periods of 

18 significant variation of electric grid supply. 

19 (E) To reduce peak loads of homes and 

20 businesses, particularly to defer or avoid invest21 ments in new electric grid capacity. 

22 (F) To advance power conversion systems 

23 to make the systems smarter, more efficient, 

24 able to communicate with other inverters, and 

25 able to control voltage. 


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1 (G) To provide ancillary services for grid 

2 stability and management. 

3 (H) To meet electricity demand during 

4 nonpeak generation periods to make better use 

5 of existing grid assets. 

6 (I) To integrate a renewable energy re7 source production source at the source or away 

8 from the source. 

9 (J) To increase the feasibility of 

10 microgrids or islanding. 

11 (5) RESTRICTION ON USE OF FUNDS.—Any eli12 gible entity that receives a grant under paragraph 

13 (1) may only use the grant to fund programs relat14 ing to the demonstration and deployment of energy 

15 storage systems in households, businesses, and com16 munities. 

17 (6) FUNDING LIMITATIONS.— 

18 (A) FEDERAL COST SHARE.—The Federal 

19 cost share of a project carried out with a grant 

20 under paragraph (1) shall be not more than 50 

21 percent of the total costs incurred in connection 

22 with the development, construction, acquisition 

23 of components for, or engineering of a dem24 onstration project. 


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1 (B) MAXIMUM GRANT.—The maximum 

2 amount of a grant awarded under paragraph 

3 (1) shall be $5,000,000. 

4 (7) NO OWNERSHIP INTEREST.—The United 

5 States shall hold no equity or other ownership inter6 est in an energy storage system for which a grant 

7 is provided under paragraph (1). 

8 (8) COMPARABLE WAGE RATES.—Each laborer 

9 and mechanic employed by a contractor or subcon10 tractor in performance of construction work fi11 nanced, in whole or in part, by the grant shall be 

12 paid wages at rates not less than the rates prevailing 

13 on similar construction in the locality as determined 

14 by the Secretary of Labor in accordance with sub15 chapter IV of chapter 31 of title 40, United States 

16 Code. 

17 (b) RULES AND PROCEDURES; AWARDING OF

18 GRANTS.— 

19 (1) RULES AND PROCEDURES.—Not later than 

20 180 days after the date of enactment of this Act, the 

21 Secretary shall adopt rules and procedures for car22 rying out the grant program under subsection (a). 

23 (2) AWARDING OF GRANTS.—Not later than 1 

24 year after the date on which the rules and proce25 dures under paragraph (1) are established, the SecVerDate Sep 11 2014 20:50 Sep 26, 2017 Jkt 069200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\S1851.IS S1851

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1 retary shall award the initial grants provided under 

2 this section. 

3 (c) REPORTS.—The Secretary shall submit to Con4 gress and make publicly available— 

5 (1) not less frequently than once every 2 years 

6 for the duration of the grant program under sub7 section (a), a report describing the performance of 

8 the grant program, including a synthesis and anal9 ysis of any information the Secretary requires grant 

10 recipients to provide to the Secretary as a condition 

11 of receiving a grant; and 

12 (2) on termination of the grant program under 

13 subsection (a), an assessment of the success of, and 

14 education provided by, the measures carried out by 

15 grant recipients under the grant program. 

16 (d) AUTHORIZATION OF APPROPRIATIONS.—There is 

17 authorized to be appropriated to carry out this section 

18 $150,000,000 for the period of fiscal years 2018 through 

19 2022, to remain available until expended. 

Æ 


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