II 

114TH CONGRESS 

1ST SESSION S. 1256 

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

program, loan program, and technical assistance and grant program, 

and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MAY 7, 2015 

Mr. FRANKEN 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, loan 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 2015’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act: 

8 (1) ENERGY STORAGE SYSTEM.—The term ‘‘en9 ergy storage system’’ means a system or strategy 


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1 that improves the ability to shift the dispatch of en2 ergy in time, across multiple timescales. 

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

4 a distributed generator or energy storage device con5 tinuing to power a location in the absence of electric 

6 power from the primary source. 

7 (3) LOAN.—The term ‘‘loan’’ has the meaning 

8 given the term ‘‘direct loan’’ in section 502 of the 

9 Federal Credit Reform Act of 1990 (2 U.S.C. 661a). 

10 (4) MICROGRID.—The term ‘‘microgrid’’ means 

11 an integrated energy system consisting of inter12 connected loads and distributed energy resources, in13 cluding generators and energy storage devices, with14 in clearly defined electrical boundaries that— 

15 (A) acts as a single controllable entity with 

16 respect to the grid; and 

17 (B) can connect and disconnect from the 

18 grid to operate in both grid-connected mode 

19 and island mode. 

20 (5) RENEWABLE ENERGY SOURCE.—The term 

21 ‘‘renewable energy source’’ includes— 

22 (A) biomass; 

23 (B) geothermal energy; 

24 (C) hydropower; 

25 (D) landfill gas; 


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1 (E) municipal solid waste; 

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

3 and thermal) energy; 

4 (G) organic waste; 

5 (H) photosynthetic processes; 

6 (I) photovoltaic energy; 

7 (J) solar energy; and 

8 (K) wind. 

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

10 the Secretary of Energy. 

11 SEC. 3. ENERGY STORAGE RESEARCH PROGRAM. 

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

13 Advanced Research Projects Agency–Energy established 

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

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

16 storage systems. 

17 (b) AUTHORIZATION OF APPROPRIATIONS.—There is 

18 authorized to be appropriated to carry out this section 

19 $50,000,000. 

20 SEC. 4. ENERGY STORAGE SYSTEM DEMONSTRATION AND 

21 DEPLOYMENT LOAN PROGRAM. 

22 (a) LOAN PROGRAM.— 

23 (1) IN GENERAL.—Subject to the provisions of 

24 this subsection and subsections (b) and (c), the SecVerDate Sep 11 2014 06:22 May 14, 2015 Jkt 049200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1256.IS S1256

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1 retary shall establish a program to provide to eligible 

2 entities— 

3 (A) loans for the demonstration and de4 ployment of energy storage systems in a specific 

5 project; and 

6 (B) loans to provide funding for programs 

7 to finance the demonstration and deployment of 

8 multiple energy storage systems through a re9 volving loan fund, credit enhancement program, 

10 or other financial assistance program. 

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

12 loan under paragraph (1) include— 

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

14 United States; 

15 (B) a State energy office; 

16 (C) a tribal organization (as defined in sec17 tion 4 of the Indian Self-Determination and 

18 Education Assistance Act (25 U.S.C. 450b)); 

19 (D) an institution of higher education (as 

20 defined in section 101 of the Higher Education 

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

22 (E) an electric utility, including— 

23 (i) a rural electric cooperative; 

24 (ii) a municipally owned electric util25 ity; and 


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1 (iii) an investor-owned utility. 

2 (3) SELECTION REQUIREMENTS.—In selecting 

3 eligible entities to receive a loan under this section, 

4 the Secretary shall, to the maximum extent prac5 ticable, ensure— 

6 (A) regional diversity among eligible enti7 ties that receive the loans, including participa8 tion by rural States and small States; and 

9 (B) that specific projects selected for 

10 loans— 

11 (i) expand on the existing technology 

12 demonstration and deployment programs 

13 of the Department of Energy; and 

14 (ii) are designed to achieve 1 or more 

15 of the objectives described in paragraph 

16 (4). 

17 (4) OBJECTIVES.—Each demonstration and de18 ployment project selected for a loan under paragraph 

19 (1) shall include 1 or more of the following objec20 tives: 

21 (A) With respect to energy storage sys22 tems, the improvement of— 

23 (i) the feasibility of microgrids or 

24 islanding; or 


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1 (ii) the transmission and distribution 

2 capability to improve reliability in rural 

3 areas, including high energy cost rural 

4 areas. 

5 (B) Use of energy storage systems to im6 prove the security of emergency response infra7 structure. 

8 (C) Integration of energy storage systems 

9 with a renewable energy resource production 

10 source, at the source or away from the source. 

11 (D) Use of energy storage systems to pro12 vide ancillary services for grid management. 

13 (E) Advancement of power conversion sys14 tems to make the systems smarter, more effi15 cient, able to communicate with other inverters, 

16 and able to control voltage. 

17 (F) Use of energy storage systems to opti18 mize transmission and distribution operation 

19 and power quality to address overloaded lines 

20 and maintenance of transformers and sub21 stations. 

22 (G) Use of energy storage systems for 

23 peak load management of homes, businesses, 

24 and the grid, particularly to offset investments 

25 in new grid capacity. 


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1 (H) Use of energy storage system devices 

2 to meet electricity demand during nonpeak gen3 eration periods to make better use of existing 

4 grid assets. 

5 (5) RESTRICTION ON USE OF FUNDS.—Any eli6 gible entity that receives a loan under paragraph (1) 

7 may only use the loan to fund programs relating to 

8 the demonstration and deployment of energy storage 

9 systems in households, businesses, 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 deter15 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 unless an appropriation for the full amount 

19 of the loan has been specifically provided for that 

20 purpose. 

21 (3) REPAYMENT.—No loan shall be made un22 less the Secretary determines that there is reason23 able prospect of repayment of the principal and in24 terest by the borrower of the loan. 


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1 (4) INTEREST RATE.—A loan provided under 

2 this section shall bear interest at a fixed rate that 

3 is equal or approximately equal, in the determination 

4 of the Secretary, to the interest rate for Treasury 

5 securities of comparable maturity. 

6 (5) TERM.—The term of the loan shall require 

7 full repayment over a period not to exceed the lesser 

8 of— 

9 (A) 20 years; or 

10 (B) 90 percent of the projected useful life 

11 of the physical asset to be financed by the loan 

12 (as determined by the Secretary). 

13 (6) USE OF PAYMENTS.—Payments of principal 

14 and interest on the loan shall— 

15 (A) be retained by the Secretary to support 

16 energy research and development activities; and 

17 (B) remain available until expended, sub18 ject to such conditions as are contained in an19 nual appropriations Acts. 

20 (7) NO PENALTY ON EARLY REPAYMENT.—The 

21 Secretary may not assess any penalty for early re22 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 shall agree to return to the general fund of the 


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1 Treasury any portion of the loan amount that is un2 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 subcon7 tractor in performance of construction work fi8 nanced, in whole or in part, by the loan shall be paid 

9 wages at rates not less than the rates prevailing on 

10 similar construction in the locality as determined by 

11 the Secretary of Labor in accordance with sub12 chapter IV of chapter 31 of title 40, United States 

13 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 car19 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 proce22 dures under paragraph (1) are established, the Sec23 retary shall disburse the initial loans provided under 

24 this section. 


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1 (d) REPORTS.—Not later than 2 years after the date 

2 of receipt of the loan and annually thereafter for the term 

3 of the loan, an eligible entity that receives a loan under 

4 this section shall submit to the Secretary a report describ5 ing the performance of each program and activity carried 

6 out using the loan, including itemized loan performance 

7 data. 

8 (e) AUTHORIZATION OF APPROPRIATIONS.—There 

9 are authorized to be appropriated to carry out this section 

10 such sums as are necessary. 

11 SEC. 5. TECHNICAL ASSISTANCE AND GRANT PROGRAM. 

12 (a) ESTABLISHMENT.— 

13 (1) IN GENERAL.—The Secretary, in consulta14 tion with the Assistant Secretary for Electricity De15 livery and Energy Reliability, shall establish a tech16 nical assistance and grant program (referred to in 

17 this section as the ‘‘program’’)— 

18 (A) to disseminate information and provide 

19 technical assistance directly to eligible entities 

20 so the eligible entities can identify, evaluate, 

21 plan, and design energy storage systems; and 

22 (B) to make grants to eligible entities so 

23 that the eligible entities may contract to obtain 

24 technical assistance to identify, evaluate, plan, 

25 and design energy storage systems. 


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1 (2) TECHNICAL ASSISTANCE.—The technical 

2 assistance described in paragraph (1) shall include 

3 assistance with 1 or more of the following activities 

4 relating to energy storage systems: 

5 (A) Identification of opportunities to use 

6 energy storage systems. 

7 (B) Assessment of technical and economic 

8 characteristics. 

9 (C) Utility interconnection. 

10 (D) Permitting and siting issues. 

11 (E) Business planning and financial anal12 ysis. 

13 (F) Engineering design. 

14 (3) INFORMATION DISSEMINATION.—The infor15 mation disseminated under paragraph (1)(A) shall 

16 include— 

17 (A) information relating to the topics de18 scribed in paragraph (2), including case studies 

19 of successful examples; 

20 (B) computer software for assessment, de21 sign, and operation and maintenance of energy 

22 storage systems; and 

23 (C) public databases that track the oper24 ation and deployment of existing and planned 

25 energy storage systems. 


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

2 shall be eligible to receive technical assistance and grants 

3 under the program. 

4 (c) APPLICATIONS.— 

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

6 technical assistance or grants under the program 

7 shall submit to the Secretary an application at such 

8 time, in such manner, and containing such informa9 tion as the Secretary may require. 

10 (2) APPLICATION PROCESS.—The Secretary 

11 shall seek applications for technical assistance and 

12 grants under the program— 

13 (A) on a competitive basis; and 

14 (B) on a periodic basis, but not less fre15 quently than once every 12 months. 

16 (3) PRIORITIES.—In selecting eligible entities 

17 for technical assistance and grants under the pro18 gram, the Secretary shall give priority to eligible en19 tities with projects that have the greatest potential 

20 for— 

21 (A) facilitating the use of renewable energy 

22 resources; 

23 (B) strengthening the reliability and resil24 iency of energy infrastructure to the impact of 


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1 extreme weather events, power grid failures, 

2 and interruptions in supply of fossil fuels; 

3 (C) improving the feasibility of microgrids 

4 or islanding, particularly in rural areas, includ5 ing high energy cost rural areas; 

6 (D) minimizing environmental impact, in7 cluding regulated air pollutants and greenhouse 

8 gas emissions; and 

9 (E) maximizing local job creation. 

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

11 the Secretary may award grants to the eligible entity to 

12 provide funds to cover not more than— 

13 (1) 100 percent of the costs of the initial as14 sessment to identify energy storage system opportu15 nities; 

16 (2) 75 percent of the cost of feasibility studies 

17 to assess the potential for the implementation of en18 ergy storage systems; 

19 (3) 60 percent of the cost of guidance on over20 coming barriers to the implementation of energy 

21 storage systems, including financial, contracting, 

22 siting, and permitting issues; and 

23 (4) 45 percent of the cost of detailed engineer24 ing of energy storage systems. 

25 (e) RULES AND PROCEDURES.— 


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

2 date of enactment of this Act, the Secretary shall 

3 adopt rules and procedures for carrying out the pro4 gram. 

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

6 the date of issuance of the rules and procedures for 

7 the program, the Secretary shall issue grants under 

8 this section. 

9 (f) REPORTS.—The Secretary shall submit to Con10 gress and make available to the public— 

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

12 a report describing the performance of the program 

13 under this section, including a synthesis and analysis 

14 of the information provided in the reports submitted 

15 to the Secretary under section 3(c); and 

16 (2) on termination of the program under this 

17 section, an assessment of the success of, and edu18 cation provided by, the measures carried out by eli19 gible entities under the program. 

20 (g) AUTHORIZATION OF APPROPRIATIONS.—There is 

21 authorized to be appropriated to carry out this section 

22 $250,000,000 for the period of fiscal years 2016 through 

23 2020, to remain available until expended. 

Æ 


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