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[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 1602 Reported in Senate (RS)]

<DOC>

                                                       Calendar No. 255
116th CONGRESS
  1st Session
                                S. 1602

                          [Report No. 116-135]

 To amend the United States Energy Storage Competitiveness Act of 2007 
  to establish a research, development, and demonstration program for 
       grid-scale energy storage systems, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                              May 22, 2019

  Ms. Collins (for herself, Mr. Heinrich, Ms. Smith, Mr. Gardner, Mr. 
Coons, Ms. McSally, Mr. King, Mr. Crapo, Ms. Stabenow, Ms. Hirono, Mr. 
   Manchin, Ms. Klobuchar, Ms. Hassan, Mr. Whitehouse, Mr. Reed, Ms. 
 Cortez Masto, Mr. Wyden, Ms. Duckworth, and Ms. Murkowski) introduced 
the following bill; which was read twice and referred to the Committee 
                    on Energy and Natural Resources

                            October 22, 2019

 Reported by Ms. Murkowski, with an amendment and an amendment to the 
                                 title
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL

 
 To amend the United States Energy Storage Competitiveness Act of 2007 
  to establish a research, development, and demonstration program for 
       grid-scale energy storage systems, and for other purposes.

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

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Better Energy Storage 
Technology Act'' or the ``BEST Act''.</DELETED>

<DELETED>SEC. 2. GRID-SCALE ENERGY STORAGE SYSTEM RESEARCH, 
              DEVELOPMENT, AND DEMONSTRATION PROGRAM.</DELETED>

<DELETED>    (a) In General.--The United States Energy Storage 
Competitiveness Act of 2007 (42 U.S.C. 17231) is amended--</DELETED>
        <DELETED>    (1) by redesignating subsections (l) through (p) 
        as subsections (m) through (q), respectively; and</DELETED>
        <DELETED>    (2) by inserting after subsection (k) the 
        following:</DELETED>
<DELETED>    ``(l) Grid-Scale Energy Storage System Research, 
Development, and Demonstration Program.--</DELETED>
        <DELETED>    ``(1) Definitions.--In this subsection:</DELETED>
                <DELETED>    ``(A) Energy storage system.--The term 
                `energy storage system' means a system, equipment, 
                facility, or technology that--</DELETED>
                        <DELETED>    ``(i) is capable of absorbing 
                        energy, storing that energy for a period of 
                        time, and dispatching the stored energy; 
                        and</DELETED>
                        <DELETED>    ``(ii)(I) uses a mechanical, 
                        electrical, chemical, electrochemical, or 
                        thermal process to store energy that--
                        </DELETED>
                                <DELETED>    ``(aa) was generated at an 
                                earlier time for use at a later time; 
                                or</DELETED>
                                <DELETED>    ``(bb) was generated from 
                                a mechanical process, and would 
                                otherwise be wasted, for delivery at a 
                                later time; or</DELETED>
                        <DELETED>    ``(II) stores thermal energy for 
                        direct use for heating or cooling at a later 
                        time in a manner that avoids the need to use 
                        electricity at that later time, in the same 
                        manner as the storage and use offered by a 
                        grid-enabled water heater.</DELETED>
                <DELETED>    ``(B) Program.--The term `program' means 
                the research, development, and demonstration program 
                established under paragraph (2)(A).</DELETED>
        <DELETED>    ``(2) Establishment.--</DELETED>
                <DELETED>    ``(A) In general.--Not later than 180 days 
                after the date of enactment of the BEST Act, the 
                Secretary shall establish within the Office of 
                Electricity of the Department of Energy a research, 
                development, and demonstration program of grid-scale 
                energy storage systems, in accordance with this 
                subsection.</DELETED>
                <DELETED>    ``(B) Goals, priorities, cost targets.--
                The Secretary shall develop goals, priorities, and cost 
                targets for the program.</DELETED>
        <DELETED>    ``(3) Strategic plan.--</DELETED>
                <DELETED>    ``(A) In general.--Not later than 180 days 
                after the date of enactment of the BEST Act, the 
                Secretary shall submit to the Committee on Energy and 
                Natural Resources of the Senate and the Committee on 
                Science, Space, and Technology of the House of 
                Representatives a 10-year strategic plan for the 
                program.</DELETED>
                <DELETED>    ``(B) Contents.--The strategic plan 
                submitted under subparagraph (A) shall--</DELETED>
                        <DELETED>    ``(i) identify Department of 
                        Energy programs that--</DELETED>
                                <DELETED>    ``(I) support the research 
                                and development activities described in 
                                paragraph (4) and the demonstration 
                                projects under paragraph (6); 
                                and</DELETED>
                                <DELETED>    ``(II)(aa) do not support 
                                the activities or projects described in 
                                subclause (I); but</DELETED>
                                <DELETED>    ``(bb) are important to 
                                the development of grid-scale energy 
                                storage systems and the mission of the 
                                Office of Electricity of the Department 
                                of Energy, as determined by the 
                                Secretary; and</DELETED>
                        <DELETED>    ``(ii) include expected timelines 
                        for--</DELETED>
                                <DELETED>    ``(I) the accomplishment 
                                of relevant objectives under current 
                                programs of the Department of Energy 
                                relating to grid-scale energy storage 
                                systems; and</DELETED>
                                <DELETED>    ``(II) the commencement of 
                                any new initiatives within the 
                                Department of Energy relating to grid-
                                scale energy storage systems to 
                                accomplish those objectives.</DELETED>
                <DELETED>    ``(C) Updates to plan.--Not less 
                frequently than once every 2 years, the Secretary shall 
                submit to the Committee on Energy and Natural Resources 
                of the Senate and the Committee on Science, Space, and 
                Technology of the House of Representatives an updated 
                10-year strategic plan, which shall identify, and 
                provide a justification for, any major deviation from a 
                previous strategic plan submitted under this 
                paragraph.</DELETED>
        <DELETED>    ``(4) Research and development.--In carrying out 
        the program, the Secretary shall focus research and development 
        activities on developing cost-effective energy storage systems 
        that--</DELETED>
                <DELETED>    ``(A)(i) to balance day-scale needs, are 
                capable of highly flexible power output for not less 
                than 6 hours; and</DELETED>
                <DELETED>    ``(ii) have a lifetime of--</DELETED>
                        <DELETED>    ``(I) not less than 8,000 cycles 
                        of discharge at full output; and</DELETED>
                        <DELETED>    ``(II) 20 years of 
                        operation;</DELETED>
                <DELETED>    ``(B)(i) can provide power to the electric 
                grid for durations of approximately 10 to 100 hours; 
                and</DELETED>
                <DELETED>    ``(ii) have a lifetime of--</DELETED>
                        <DELETED>    ``(I) not less than 1,500 cycles 
                        of discharge at full output; and</DELETED>
                        <DELETED>    ``(II) 20 years of operation; 
                        and</DELETED>
                <DELETED>    ``(C) can store energy over several months 
                and address seasonal scale variations in supply and 
                demand.</DELETED>
        <DELETED>    ``(5) Cost targets.--</DELETED>
                <DELETED>    ``(A) In general.--Cost targets developed 
                by the Secretary under paragraph (2)(B) shall--
                </DELETED>
                        <DELETED>    ``(i) be for energy storage costs 
                        across all types of energy storage technology; 
                        and</DELETED>
                        <DELETED>    ``(ii) include technology costs, 
                        installation costs, balance of services costs, 
                        and soft costs.</DELETED>
                <DELETED>    ``(B) Target updates; subtargets.--Not 
                less frequently than once every 5 years during the 10-
                year period beginning on the date of enactment of the 
                BEST Act, the Secretary shall--</DELETED>
                        <DELETED>    ``(i) revise the cost targets 
                        developed under paragraph (2)(B) to be more 
                        stringent, based on--</DELETED>
                                <DELETED>    ``(I) a technology-neutral 
                                approach that considers all types of 
                                energy storage deployment scenarios, 
                                including individual technologies, 
                                technology combination use profiles, 
                                and integrated control system 
                                applications;</DELETED>
                                <DELETED>    ``(II) input from a 
                                variety of stakeholders, including the 
                                stakeholders described in subsection 
                                (i)(3);</DELETED>
                                <DELETED>    ``(III) the inclusion and 
                                use of existing infrastructure; 
                                and</DELETED>
                                <DELETED>    ``(IV) the ability to 
                                optimize the integration of 
                                intermittent renewable energy 
                                generation technology and distributed 
                                energy resources; and</DELETED>
                        <DELETED>    ``(ii) establish cost subtargets 
                        for technologies and applications relating to 
                        the energy storage systems described in 
                        paragraph (4), taking into consideration--
                        </DELETED>
                                <DELETED>    ``(I) electricity market 
                                prices; and</DELETED>
                                <DELETED>    ``(II) the goal of being 
                                cost-competitive in specific markets 
                                for electric grid products and 
                                services.</DELETED>
        <DELETED>    ``(6) Demonstration projects.--</DELETED>
                <DELETED>    ``(A) In general.--Not later than 
                September 30, 2023, under the program, the Secretary 
                shall, to the maximum extent practicable, enter into 
                agreements to carry out not more than 5 grid-scale 
                energy storage system demonstration projects.</DELETED>
                <DELETED>    ``(B) Objectives.--Each demonstration 
                project carried out under subparagraph (A) shall be 
                designed to further the development of the energy 
                storage systems described in paragraph (4).</DELETED>
                <DELETED>    ``(C) No project ownership interest.--The 
                Federal Government shall not hold any equity or other 
                ownership interest in any grid-scale energy storage 
                system that is part of a demonstration project under 
                this paragraph.</DELETED>
        <DELETED>    ``(7) Testing and validation.--The Secretary shall 
        accelerate the standardized testing and validation of grid-
        scale energy storage systems under the program through 
        collaboration with one or more National Laboratories (as 
        defined in section 2 of the Energy Policy Act of 2005 (42 
        U.S.C. 15801)), including by developing testing and evaluation 
        methodologies for--</DELETED>
                <DELETED>    ``(A) standardized grid performance 
                testing for energy storage systems, materials, and 
                technologies during each stage of development, 
                beginning with the research stage and ending with the 
                deployment stage, including performance testing with 
                charge and discharge protocols to evaluate power 
                capability, energy output, and degradation during 
                cycling and calendar aging on earliest stage 
                commercially viable prototypes (commonly less than 100 
                kilowatts); and</DELETED>
                <DELETED>    ``(B) accelerated life testing protocols 
                to predict estimated lifetime metrics with 
                accuracy.</DELETED>
        <DELETED>    ``(8) Coordination.--To accelerate the development 
        of grid-scale energy storage systems under the program, and 
        pursuant to subsection (n), the Secretary shall coordinate 
        with--</DELETED>
                <DELETED>    ``(A) offices within the Department of 
                Energy conducting energy storage research, such as the 
                Advanced Research Projects Agency-Energy, the Office of 
                Science, and the Office of Energy Efficiency and 
                Renewable Energy;</DELETED>
                <DELETED>    ``(B) Federal agencies that are carrying 
                out initiatives to increase energy security or 
                reliability, such as the Department of Defense, the 
                National Science Foundation, the Federal Energy 
                Regulatory Commission, and the Department of Homeland 
                Security;</DELETED>
                <DELETED>    ``(C) program offices that aim to increase 
                domestic manufacturing and production, such as the 
                Office of Advanced Manufacturing in the Department of 
                Energy and the National Institute of Standards and 
                Technology in the Department of Commerce; and</DELETED>
                <DELETED>    ``(D) members of private industry to 
                advance the development of commercially viable grid-
                scale energy storage systems.''.</DELETED>
<DELETED>    (b) Authorization of Appropriations.--The United States 
Energy Storage Competitiveness Act of 2007 (42 U.S.C. 17231) is 
amended, in subsection (q) (as redesignated by subsection (a)(1))--
</DELETED>
        <DELETED>    (1) in paragraph (5), by striking ``and'' at the 
        end;</DELETED>
        <DELETED>    (2) in paragraph (6), by striking the period at 
        the end and inserting ``; and''; and</DELETED>
        <DELETED>    (3) by adding at the end the following:</DELETED>
        <DELETED>    ``(7) the research, development, and demonstration 
        program of grid-scale energy storage systems under subsection 
        (l) $60,000,000 for each of fiscal years 2020 through 
        2024.''.</DELETED>

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Better Energy Storage Technology 
Act'' or the ``BEST Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Department.--The term ``Department'' means the 
        Department of Energy.
            (2) Energy storage system.--The term ``energy storage 
        system'' means any system, equipment, facility, or technology 
        that--
                    (A) is capable of absorbing or converting energy, 
                storing the energy for a period of time, and 
                dispatching the energy; and
                    (B)(i) uses mechanical, electrochemical, thermal, 
                electrolysis, or other processes to convert and store 
                electric energy that was generated at an earlier time 
                for use at a later time; or
                    (ii) stores energy in an electric, thermal, or 
                gaseous state for direct use for heating or cooling at 
                a later time in a manner that avoids the need to use 
                electricity or other fuel sources at that later time, 
                such as a grid-enabled water heater.
            (3) National laboratory.--The term ``National Laboratory'' 
        has the meaning given the term in section 2 of the Energy 
        Policy Act of 2005 (42 U.S.C. 15801).
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy, unless otherwise specified.

SEC. 3. ENERGY STORAGE SYSTEM RESEARCH, DEVELOPMENT, AND DEPLOYMENT 
              PROGRAM.

    (a) Establishment.--Not later than 180 days after the date of 
enactment of this Act, the Secretary shall establish a program, to be 
known as the ``Energy Storage System Research, Development, and 
Deployment Program'' (referred to in this section as the ``program'').
    (b) Initial Program Objectives.--The program shall focus on 
research, development, and deployment of--
            (1) energy storage systems designed to further the 
        development of technologies--
                    (A) for large-scale commercial deployment;
                    (B) for deployment at cost targets established by 
                the Secretary;
                    (C) for hourly and subhourly durations required to 
                provide reliability services to the grid;
                    (D) for daily durations, which have--
                            (i) the capacity to discharge energy for a 
                        minimum of 6 hours; and
                            (ii) a system lifetime of at least 20 years 
                        under regular operation;
                    (E) for weekly or monthly durations, which have--
                            (i) the capacity to discharge energy for 10 
                        to 100 hours, at a minimum; and
                            (ii) a system lifetime of at least 20 years 
                        under regular operation; and
                    (F) for seasonal durations, which have--
                            (i) the capability to address seasonal 
                        variations in supply and demand; and
                            (ii) a system lifetime of at least 20 years 
                        under regular operation;
            (2) distributed energy storage technologies and 
        applications, including building-grid integration;
            (3) transportation energy storage technologies and 
        applications, including vehicle-grid integration;
            (4) cost-effective systems and methods for--
                    (A) the reclamation, recycling, and disposal of 
                energy storage materials, including lithium, cobalt, 
                nickel, and graphite; and
                    (B) the reuse and repurposing of energy storage 
                system technologies;
            (5) advanced control methods for energy storage systems;
            (6) pumped hydroelectric energy storage systems to 
        advance--
                    (A) adoption of innovative technologies, 
                including--
                            (i) adjustable-speed, ternary, and other 
                        new pumping and generating equipment designs;
                            (ii) modular systems;
                            (iii) closed-loop systems, including mines 
                        and quarries; and
                            (iv) other critical equipment and materials 
                        for pumped hydroelectric energy storage, as 
                        determined by the Secretary; and
                    (B) reductions of equipment costs, civil works 
                costs, and construction times for pumped hydroelectric 
                energy storage projects, with the goal of reducing 
                those costs by 50 percent;
            (7) models and tools to demonstrate the benefits of energy 
        storage to--
                    (A) power and water supply systems;
                    (B) electric generation portfolio optimization; and
                    (C) expanded deployment of other renewable energy 
                technologies, including in hybrid energy storage 
                systems; and
            (8) energy storage use cases from individual and 
        combination technology applications, including value from 
        various-use cases and energy storage services.
    (c) Testing and Validation.--In coordination with 1 or more 
National Laboratories, the Secretary shall accelerate the development, 
standardized testing, and validation of energy storage systems under 
the program by developing testing and evaluation methodologies for--
            (1) storage technologies, controls, and power electronics 
        for energy storage systems under a variety of operating 
        conditions;
            (2) standardized and grid performance testing for energy 
        storage systems, materials, and technologies during each stage 
        of development, beginning with the research stage and ending 
        with the deployment stage;
            (3) reliability, safety, and durability testing under 
        standard and evolving duty cycles; and
            (4) accelerated life testing protocols to predict estimated 
        lifetime metrics with accuracy.
    (d) Periodic Evaluation of Program Objectives.--Not less frequently 
than once every calendar year, the Secretary shall evaluate and, if 
necessary, update the program objectives to ensure that the program 
continues to advance energy storage systems toward widespread 
commercial deployment by lowering the costs and increasing the duration 
of energy storage resources.
    (e) Energy Storage Strategic Plan.--
            (1) In general.--The Secretary shall develop a 10-year 
        strategic plan for the program, and update the plan, in 
        accordance with this subsection.
            (2) Contents.--The strategic plan developed under paragraph 
        (1) shall--
                    (A) be coordinated with and integrated across other 
                relevant offices in the Department;
                    (B) to the extent practicable, include metrics that 
                can be used to evaluate storage technologies;
                    (C) identify Department programs that--
                            (i) support the research and development 
                        activities described in subsection (b) and the 
                        demonstration projects under section 4; and
                            (ii)(I) do not support the activities or 
                        projects described in clause (i); but
                            (II) are important to the development of 
                        energy storage systems and the mission of the 
                        Department, as determined by the Secretary;
                    (D) include expected timelines for--
                            (i) the accomplishment of relevant 
                        objectives under current programs of the 
                        Department relating to energy storage systems; 
                        and
                            (ii) the commencement of any new 
                        initiatives within the Department relating to 
                        energy storage systems to accomplish those 
                        objectives; and
                    (E) incorporate relevant activities described in 
                the Grid Modernization Initiative Multi-Year Program 
                Plan.
            (3) Submission to congress.--Not later than 180 days after 
        the date of enactment of this Act, the Secretary shall submit 
        to the Committee on Energy and Natural Resources of the Senate 
        and the Committees on Energy and Commerce and Science, Space, 
        and Technology of the House of Representatives the strategic 
        plan developed under paragraph (1).
            (4) Updates to plan.--The Secretary--
                    (A) shall annually review the strategic plan 
                developed under paragraph (1); and
                    (B) may periodically revise the strategic plan as 
                appropriate.
    (f) Leveraging of Resources.--The program may be led by a specific 
office of the Department, but shall be cross-cutting in nature, so that 
in carrying out activities under the program, the Secretary (or a 
designee of the Secretary charged with leading the program) shall 
leverage existing Federal resources, including, at a minimum, the 
expertise and resources of--
            (1) the Office of Electricity Delivery and Energy 
        Reliability;
            (2) the Office of Energy Efficiency and Renewable Energy, 
        including the Water Power Technologies Office; and
            (3) the Office of Science, including--
                    (A) the Basic Energy Sciences Program;
                    (B) the Advanced Scientific Computing Research 
                Program;
                    (C) the Biological and Environmental Research 
                Program; and
            (4) the Electricity Storage Research Initiative established 
        under section 975 of the Energy Policy Act of 2005 (42 U.S.C. 
        16315).
    (g) Protecting Privacy and Security.--In carrying out this section, 
the Secretary shall identify, incorporate, and follow best practices 
for protecting the privacy of individuals and businesses and the 
respective sensitive data of the individuals and businesses, including 
by managing privacy risk and implementing the Fair Information Practice 
Principles of the Federal Trade Commission for the collection, use, 
disclosure, and retention of individual electric consumer information 
in accordance with the Office of Management and Budget Circular A-130 
(or successor circulars).

SEC. 4. ENERGY STORAGE DEMONSTRATION PROJECTS; PILOT GRANT PROGRAM.

    (a) Demonstration Projects.--Not later than September 30, 2023, the 
Secretary shall, to the maximum extent practicable, enter into 
agreements to carry out not fewer than 5 energy storage system 
demonstration projects, including at least 1 energy storage system 
demonstration project designed to further the development of 
technologies described in subparagraph (E) or (F) of section 3(b)(1).
    (b) Energy Storage Pilot Grant Program.--
            (1) Definition of eligible entity.--In this subsection, the 
        term ``eligible entity'' means--
                    (A) a State energy office (as defined in section 
                124(a) of the Energy Policy Act of 2005 (42 U.S.C. 
                15821(a)));
                    (B) an Indian tribe (as defined in section 4 of the 
                Native American Housing Assistance and Self-
                Determination Act of 1996 (25 U.S.C. 4103);
                    (C) a tribal organization (as defined in section 
                3765 of title 38, United States Code);
                    (D) an institution of higher education (as defined 
                in section 101 of the Higher Education Act of 1965 (20 
                U.S.C. 1001));
                    (E) an electric utility, including--
                            (i) an electric cooperative;
                            (ii) a political subdivision of a State, 
                        such as a municipally owned electric utility, 
                        or any agency, authority, corporation, or 
                        instrumentality of a State political 
                        subdivision; and
                            (iii) an investor-owned utility; and
                    (F) a private energy storage company that is a 
                small business concern (within the meaning of section 3 
                of the Small Business Act (15 U.S.C. 632)).
            (2) Establishment.--The Secretary shall establish a 
        competitive grant program under which the Secretary shall award 
        grants to eligible entities to carry out demonstration projects 
        for pilot energy storage systems.
            (3) Selection requirements.--In selecting eligible entities 
        to receive a grant under paragraph (2), the Secretary shall, to 
        the maximum extent practicable--
                    (A) ensure regional diversity among eligible 
                entities awarded grants, including ensuring 
                participation of eligible entities that are rural 
                States and States with high energy costs;
                    (B) ensure that grants are awarded for 
                demonstration projects that--
                            (i) expand on the existing technology 
                        demonstration programs of the Department;
                            (ii) are designed to achieve 1 or more of 
                        the objectives described in paragraph (4); and
                            (iii) inject or withdraw energy from the 
                        bulk power system, electric distribution 
                        system, building energy system, or microgrid 
                        (grid-connected or islanded mode) where the 
                        project is located; and
                    (C) give consideration to proposals from eligible 
                entities for securing energy storage through 
                competitive procurement or contract for service.
            (4) Objectives.--Each demonstration project carried out by 
        a grant awarded under paragraph (2) shall have 1 or more of the 
        following objectives:
                    (A) To improve the security of critical 
                infrastructure and emergency response systems.
                    (B) To improve the reliability of transmission and 
                distribution systems, particularly in rural areas, 
                including high-energy-cost rural areas.
                    (C) To optimize transmission or distribution system 
                operation and power quality to defer or avoid costs of 
                replacing or upgrading electric grid infrastructure, 
                including transformers and substations.
                    (D) To supply energy at peak periods of demand on 
                the electric grid or during periods of significant 
                variation of electric grid supply.
                    (E) To reduce peak loads of homes and businesses.
                    (F) To improve and advance power conversion 
                systems.
                    (G) To provide ancillary services for grid 
                stability and management.
                    (H) To integrate renewable energy resource 
                production.
                    (I) To increase the feasibility of microgrids 
                (grid-connected or islanded mode).
                    (J) To enable the use of stored energy in forms 
                other than electricity to support the natural gas 
                system and other industrial processes.
                    (K) To integrate fast charging of electric 
                vehicles.
                    (L) To improve energy efficiency.
    (c) Reports.--Not less frequently than once every 2 years for the 
duration of the programs under subsections (a) and (b), the Secretary 
shall submit to Congress and make publicly available a report 
describing the performance of those programs.
    (d) No Project Ownership Interest.--The Federal Government shall 
not hold any equity or other ownership interest in any energy storage 
system that is part of a project under this section unless the holding 
is agreed to by each participant of the project.

SEC. 5. LONG-DURATION DEMONSTRATION INITIATIVE AND JOINT PROGRAM.

    (a) Definitions.--In this section:
            (1) Director of arpa-e.--The term ``Director of ARPA-E'' 
        has the meaning given the term in section 5012(a) of the 
        America COMPETES Act (42 U.S.C. 16538(a)).
            (2) Director of estcp.--The term ``Director of ESTCP'' 
        means the Secretary of Defense, acting through the Director of 
        the Environmental Security Technology Certification Program of 
        the Department of Defense.
            (3) Initiative.--The term ``Initiative'' means the 
        demonstration initiative established under subsection (b).
            (4) Joint Program.--The term ``Joint Program'' means the 
        joint program established under subsection (d).
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy, acting through the Director of ARPA-E.
    (b) Establishment of Initiative.--Not later than 180 days after the 
date of enactment of this Act, the Secretary shall establish a 
demonstration initiative composed of demonstration projects focused on 
the development of long-duration energy storage technologies.
    (c) Selection of Projects.--To the maximum extent practicable, in 
selecting demonstration projects to participate in the Initiative, the 
Secretary shall--
            (1) ensure a range of technology types;
            (2) ensure regional diversity among projects; and
            (3) consider bulk power level, distribution power level, 
        behind-the-meter, microgrid (grid-connected or islanded mode), 
        and off-grid applications.
    (d) Joint Program.--
            (1) Establishment.--As part of the Initiative, the 
        Secretary, in consultation with the Director of ESTCP, shall 
        establish within the Department of Energy a joint program to 
        carry out projects--
                    (A) to demonstrate promising long-duration energy 
                storage technologies at different scales; and
                    (B) to help new, innovative long-duration energy 
                storage technologies become commercially viable.
            (2) Memorandum of understanding.--Not later than 200 days 
        after the date of enactment of this Act, the Secretary shall 
        enter into a memorandum of understanding with the Director of 
        ESTCP to administer the Joint Program.
            (3) Infrastructure.--In carrying out the Joint Program, the 
        Secretary and the Director of ESTCP shall--
                    (A) use existing test-bed infrastructure at--
                            (i) Department of Energy facilities; and
                            (ii) Department of Defense installations; 
                        and
                    (B) develop new infrastructure for identified 
                projects, if appropriate.
            (4) Goals and metrics.--The Secretary and the Director of 
        ESTCP shall develop goals and metrics for technological 
        progress under the Joint Program consistent with energy 
        resilience and energy security policies.
            (5) Selection of projects.--
                    (A) In general.--To the maximum extent practicable, 
                in selecting projects to participate in the Joint 
                Program, the Secretary and the Director of ESTCP 
                shall--
                            (i) ensure that projects are carried out 
                        under conditions that represent a variety of 
                        environments with different physical conditions 
                        and market constraints; and
                            (ii) ensure an appropriate balance of--
                                    (I) larger, higher-cost projects; 
                                and
                                    (II) smaller, lower-cost projects.
                    (B) Priority.--In carrying out the Joint Program, 
                the Secretary and the Director of ESTCP shall give 
                priority to demonstration projects that--
                            (i) make available to the public project 
                        information that will accelerate deployment of 
                        long-duration energy storage technologies; and
                            (ii) will be carried out in the field.

SEC. 6. TECHNICAL AND PLANNING ASSISTANCE PROGRAM.

    (a) Definitions.--In this section:
            (1) Eligible entity.--The term ``eligible entity'' means--
                    (A) an electric cooperative;
                    (B) a political subdivision of a State, such as a 
                municipally owned electric utility, or any agency, 
                authority, corporation, or instrumentality of a State 
                political subdivision;
                    (C) a not-for-profit entity that is in a 
                partnership with not less than 6 entities described in 
                subparagraph (A) or (B); and
                    (D) an investor-owned utility.
            (2) Program.--The term ``program'' means the technical and 
        planning assistance program established under subsection 
        (b)(1).
    (b) Establishment.--
            (1) In general.--The Secretary shall establish a technical 
        and planning assistance program to assist eligible entities in 
        identifying, evaluating, planning, designing, and developing 
        processes to procure energy storage systems.
            (2) Assistance and grants.--Under the program, the 
        Secretary shall--
                    (A) provide technical and planning assistance, 
                including disseminating information, directly to 
                eligible entities; and
                    (B) award grants to eligible entities to contract 
                to obtain technical and planning assistance from 
                outside experts.
            (3) Focus.--In carrying out the program, the Secretary 
        shall focus on energy storage system projects that have the 
        greatest potential for--
                    (A) strengthening the reliability and resiliency of 
                energy infrastructure;
                    (B) reducing the cost of energy storage systems;
                    (C) improving the feasibility of microgrids (grid-
                connected or islanded mode), particularly in rural 
                areas, including high energy cost rural areas;
                    (D) reducing consumer electricity costs; or
                    (E) maximizing local job creation.
    (c) Technical and Planning Assistance.--
            (1) In general.--Technical and planning assistance provided 
        under the program shall include assistance with 1 or more of 
        the following activities relating to energy storage systems:
                    (A) Identification of opportunities to use energy 
                storage systems.
                    (B) Feasibility studies to assess the potential for 
                development of new energy storage systems or 
                improvement of existing energy storage systems.
                    (C) Assessment of technical and economic 
                characteristics, including a cost-benefit analysis.
                    (D) Utility interconnection.
                    (E) Permitting and siting issues.
                    (F) Business planning and financial analysis.
                    (G) Engineering design.
                    (H) Resource adequacy planning.
                    (I) Resilience planning and valuation.
            (2) Exclusion.--Technical and planning assistance provided 
        under the program shall not be used to pay any person for 
        influencing or attempting to influence an officer or employee 
        of any Federal, State, or local agency, a Member of Congress, 
        an employee of a Member of Congress, a State or local 
        legislative body, or an employee of a State or local 
        legislative body.
    (d) Information Dissemination.--The information disseminated under 
subsection (b)(2)(A) shall include--
            (1) information relating to the topics described in 
        subsection (c)(1), including case studies of successful 
        examples;
            (2) computational tools or software for assessment, design, 
        and operation and maintenance of energy storage systems;
            (3) public databases that track existing and planned energy 
        storage systems;
            (4) best practices for the utility and grid operator 
        business processes associated with the topics described in 
        subsection (c)(1); and
            (5) relevant State policies or regulations associated with 
        the topics described in subsection (c)(1).
    (e) Applications.--
            (1) In general.--The Secretary shall seek applications for 
        the program--
                    (A) on a competitive, merit-reviewed basis; and
                    (B) on a periodic basis, but not less frequently 
                than once every 12 months.
            (2) Application.--An eligible entity desiring to apply for 
        the program shall submit to the Secretary an application at 
        such time, in such manner, and containing such information as 
        the Secretary may require, including whether the eligible 
        entity is applying for--
                    (A) direct technical or planning assistance under 
                subsection (b)(2)(A); or
                    (B) a grant under subsection (b)(2)(B).
            (3) Priorities.--In selecting eligible entities for 
        technical and planning assistance under the program, the 
        Secretary shall give priority to eligible entities described in 
        subparagraphs (A) and (B) of subsection (a)(1).
    (f) Reports.--The Secretary shall submit to Congress and make 
available to the public--
            (1) not less frequently than once every 2 years, a report 
        describing the performance of the program, including a 
        synthesis and analysis of any information the Secretary 
        requires grant recipients to provide to the Secretary as a 
        condition of receiving a grant; and
            (2) on termination of the program, an assessment of the 
        success of, and education provided by, the measures carried out 
        by eligible entities under the program.
    (g) Cost-sharing.--Activities under this section shall be subject 
to the cost-sharing requirements under section 988 of the Energy Policy 
Act of 2005 (42 U.S.C. 16352).

SEC. 7. ENERGY STORAGE MATERIALS RECYCLING PRIZE COMPETITION.

    Section 1008 of the Energy Policy Act of 2005 (42 U.S.C. 16396) is 
amended by adding at the end the following:
    ``(g) Energy Storage Materials Recycling Prize Competition.--
            ``(1) Definition of critical energy storage materials.--In 
        this subsection, the term `critical energy storage materials' 
        includes--
                    ``(A) lithium;
                    ``(B) cobalt;
                    ``(C) nickel;
                    ``(D) graphite; and
                    ``(E) any other material determined by the 
                Secretary to be critical to the continued growing 
                supply of energy storage resources.
            ``(2) Prize authority.--
                    ``(A) In general.--As part of the program 
                established under subsection (a), the Secretary shall 
                establish an award program, to be known as the `Energy 
                Storage Materials Recycling Prize Competition' 
                (referred to in this subsection as the `program'), 
                under which the Secretary shall carry out prize 
                competitions and make awards to advance the recycling 
                of critical energy storage materials.
                    ``(B) Frequency.--To the maximum extent 
                practicable, the Secretary shall carry out a 
                competition under the program not less frequently than 
                once every calendar year.
            ``(3) Eligibility.--
                    ``(A) In general.--To be eligible to win a prize 
                under the program, an individual or entity--
                            ``(i) shall have complied with the 
                        requirements of the competition as described in 
                        the announcement for that competition published 
                        in the Federal Register by the Secretary under 
                        paragraph (6);
                            ``(ii) in the case of a private entity, 
                        shall be incorporated in the United States and 
                        maintain a primary place of business in the 
                        United States;
                            ``(iii) in the case of an individual, 
                        whether participating singly or in a group, 
                        shall be a citizen of, or an alien lawfully 
                        admitted for permanent residence in, the United 
                        States.
                    ``(B) Exclusions.--The following entities and 
                individuals shall not be eligible to win a prize under 
                the program:
                            ``(i) A Federal entity.
                            ``(ii) A Federal employee (including an 
                        employee of a National Laboratory) acting 
                        within the scope of employment.
            ``(4) Awards.--In carrying out the program, the Secretary 
        shall award cash prizes, in amounts to be determined by the 
        Secretary, to each individual or entity selected through a 
        competitive process to develop advanced methods or technologies 
        to recycle critical energy storage materials from energy 
        storage systems.
            ``(5) Criteria.--
                    ``(A) In general.--The Secretary shall establish 
                objective, merit-based criteria for awarding the prizes 
                in each competition carried out under the program.
                    ``(B) Requirements.--The criteria established under 
                subparagraph (A) shall prioritize advancements in 
                methods or technologies that present the greatest 
                potential for large-scale commercial deployment.
                    ``(C) Consultation.--In establishing criteria under 
                subparagraph (A), the Secretary shall consult with 
                appropriate members of private industry involved in the 
                commercial deployment of energy storage systems.
            ``(6) Advertising and solicitation of competitors.--
                    ``(A) In general.--The Secretary shall announce 
                each prize competition under the program by publishing 
                a notice in the Federal Register.
                    ``(B) Requirements.--Each notice published under 
                subparagraph (A) shall describe the essential elements 
                of the competition, such as--
                            ``(i) the subject of the competition;
                            ``(ii) the duration of the competition;
                            ``(iii) the eligibility requirements for 
                        participation in the competition;
                            ``(iv) the process for participants to 
                        register for the competition;
                            ``(v) the amount of the prize; and
                            ``(vi) the criteria for awarding the prize.
            ``(7) Judges.--
                    ``(A) In general.--For each prize competition under 
                the program, the Secretary shall assemble a panel of 
                qualified judges to select the winner or winners of the 
                competition on the basis of the criteria established 
                under paragraph (5).
                    ``(B) Selection.--The judges for each competition 
                shall include appropriate members of private industry 
                involved in the commercial deployment of energy storage 
                systems.
                    ``(C) Conflicts.--An individual may not serve as a 
                judge in a prize competition under the program if the 
                individual, the spouse of the individual, any child of 
                the individual, or any other member of the household of 
                the individual--
                            ``(i) has a personal or financial interest 
                        in, or is an employee, officer, director, or 
                        agent of, any entity that is a registered 
                        participant in the prize competition for which 
                        the individual will serve as a judge; or
                            ``(ii) has a familial or financial 
                        relationship with a registered participant in 
                        the prize competition for which the individual 
                        will serve as a judge.
            ``(8) Report to congress.--Not later than 60 days after the 
        date on which the first prize is awarded under the program, and 
        annually thereafter, the Secretary shall submit to Congress a 
        report that--
                    ``(A) identifies each award recipient;
                    ``(B) describes the advanced methods or 
                technologies developed by each award recipient; and
                    ``(C) specifies actions being taken by the 
                Department toward commercial application of all methods 
                or technologies with respect to which a prize has been 
                awarded under the program.
            ``(9) Anti-deficiency act.--The Secretary shall carry out 
        the program in accordance with section 1341 of title 31, United 
        States Code (commonly referred to as the `Anti-Deficiency 
        Act').
            ``(10) Authorization of appropriations.--There is 
        authorized to be appropriated to carry out this subsection 
        $10,000,000 for each of fiscal years 2020 through 2024, to 
        remain available until expended.''.

SEC. 8. REGULATORY ACTIONS TO ENCOURAGE ENERGY STORAGE DEPLOYMENT.

    (a) Definitions.--In this section:
            (1) Commission.--The term ``Commission'' means the Federal 
        Energy Regulatory Commission.
            (2) Electric storage resource.--The term ``electric storage 
        resource'' means a resource capable of receiving electric 
        energy from the grid and storing that electric energy for later 
        injection back into the grid.
    (b) Regulatory Action.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the Commission shall issue a regulation 
        to identify the eligibility of, and process for, electric 
        storage resources--
                    (A) to receive cost recovery through Commission-
                regulated rates for the transmission of electric energy 
                in interstate commerce; and
                    (B) that receive cost recovery under subparagraph 
                (A) to receive compensation for other services (such as 
                the sale of energy, capacity, or ancillary services) 
                without regard to whether those services are provided 
                concurrently with the transmission service described in 
                subparagraph (A).
            (2) Prohibition of duplicate recovery.--Any regulation 
        issued under paragraph (1) shall preclude the receipt of unjust 
        and unreasonable double recovery for electric storage resources 
        providing services described in subparagraphs (A) and (B) of 
        that paragraph.
    (c) Electric Storage Resources Technical Conference.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Commission shall convene a technical 
        conference on the potential for electric storage resources to 
        improve the operation of electric systems.
            (2) Requirements.--The technical conference under paragraph 
        (1) shall--
                    (A) identify opportunities for further 
                consideration of electric storage resources in regional 
                and interregional transmission planning processes 
                within the jurisdiction of the Commission;
                    (B) identify all energy, capacity, and ancillary 
                service products, market designs, or rules that--
                            (i) are within the jurisdiction of the 
                        Commission; and
                            (ii) enable and compensate for the use of 
                        electric storage resources that improve the 
                        operation of electric systems;
                    (C) examine additional products, market designs, or 
                rules that would enable and compensate for the use of 
                electric storage resources for improving the operation 
                of electric systems; and
                    (D) examine the functional value of electric 
                storage resources at the transmission and distribution 
                system interface for purposes of providing electric 
                system reliability.

SEC. 9. COORDINATION.

    To the maximum extent practicable, the Secretary shall coordinate 
the activities under this Act (including activities conducted pursuant 
to the amendments made by this Act) among the offices and employees of 
the Department, other Federal agencies, and other relevant entities--
            (1) to ensure appropriate collaboration; and
            (2) to avoid unnecessary duplication of those activities.

SEC. 10. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated--
            (1) to carry out section 3, $100,000,000 for each of fiscal 
        years 2020 through 2024, to remain available until expended;
            (2) to carry out section 4, $100,000,000 for each of fiscal 
        years 2020 through 2024, to remain available until expended;
            (3) to carry out section 5, $50,000,000 for each of fiscal 
        years 2020 through 2024, to remain available until expended; 
        and
            (4) to carry out section 6, $20,000,000 for each of fiscal 
        years 2020 through 2024, to remain available until expended.
            Amend the title so as to read: ``A bill to support 
        research, development, and demonstration programs relating to 
        energy storage systems, and for other purposes.''.
                                                       Calendar No. 255

116th CONGRESS

  1st Session

                                S. 1602

                          [Report No. 116-135]

_______________________________________________________________________

                                 A BILL

 To amend the United States Energy Storage Competitiveness Act of 2007 
  to establish a research, development, and demonstration program for 
       grid-scale energy storage systems, and for other purposes.

_______________________________________________________________________

                            October 22, 2019

        Reported with an amendment and an amendment to the title
```