I
107TH CONGRESS
1ST SESSION
H. R. 2496
To direct the Secretary of Energy to develop and implement a strategy
for research, development, demonstration, and commercial application
of distributed power hybrid energy systems, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JULY 12, 2001
Mr. UDALL of Colorado introduced the following bill; which was referred to
the Committee on Science
A BILL
To direct the Secretary of Energy to develop and implement
a strategy for research, development, demonstration, and
commercial application of distributed power hybrid en-
ergy systems, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Distributed Power Hy-
brid Energy Act’’.
SEC. 2. FINDINGS.
The Congress makes the following findings:
(1) Renewable energy resources have the poten-
tial to help diversify our Nation’s energy portfolio
with few adverse environmental effects. By their
very nature, renewable resources are distributed.
Our ability to cost effectively take advantage of our
renewable, indigenous resources can be greatly ad-
vanced 
through 
systems 
that 
minimize 
the
intermittency of these resources through distributed
power hybrid systems.
(2) Distributed power sources configured as dis-
tributed power hybrid systems can maximize benefits
to the energy consumer. The primary benefits of dis-
tributed power hybrid systems are that they can—
(A) shelter consumers from temporary en-
ergy price volatility created by supply and de-
mand mismatches;
(B) increase the reliability of energy sup-
ply, thereby avoiding significant costs associ-
ated with power outages;
(C) provide a cost-effective means to mini-
mize the impact of intermittent resources,
thereby expanding the Nation’s energy supply
reserve;
(D) decrease environmental impacts of en-
ergy supply; and
(E) be tailored to address significant local
differences in power and economic development
needs and resource availability that exist
throughout the United States.
(3) Realizing these benefits will require a con-
certed and integrated effort that focuses on remov-
ing market barriers to the adoption of distributed
power hybrid systems by—
(A) providing tools that enable States and
regions to assess their indigenous renewable en-
ergy resources;
(B) developing the technological foundation
that enables designing, testing, certifying, and
operating distributed power hybrid systems; and
(C) providing the policy framework that re-
duces such barriers, including making net me-
tering available on a broader scale to enable
consumers to reap the full value of these sys-
tems, thereby lowering their overall energy bill.
(4) While many of the individual distributed
power hybrid systems components are either avail-
able or under development in existing private and
public sector programs, the capabilities to integrate
these components into workable distributed power
hybrid systems that maximize benefits to consumers
in a safe manner are deficient and not coherently
being addressed.
SEC. 3. DEFINITIONS.
For purposes of this Act—
(1) the term ‘‘distributed power hybrid system’’
means a system using 2 or more distributed power
sources, operated together with associated sup-
porting equipment, including storage equipment, and
software necessary to provide electric power to the
grid or on site; and
(2) the term ‘‘distributed power source’’ means
an independent electric energy source of usually 10
megawatts or less located close to a residential, com-
mercial, or industrial load center, including—
(A) reciprocating engines;
(B) turbines;
(C) microturbines;
(D) fuel cells;
(E) solar electric systems;
(F) wind energy systems;
(G) biomass power systems;
(H) geothermal power systems; or
(I) electrical components of cogeneration
systems.
SEC. 4. STRATEGY.
(a) REQUIREMENT.—Not later than 1 year after the
date of the enactment of this Act, the Secretary of Energy
shall develop and transmit to the Congress a distributed
power hybrid systems strategy showing—
(1) opportunities and priorities that might best
be met with distributed power hybrid systems con-
figurations;
(2) what barriers exist to the use of distributed
power hybrid systems;
(3) what technology gaps need to be closed; and
(4) what system integration tools are needed to
plan, design, build, and operate distributed power
hybrid systems for maximum benefits.
(b) ELEMENTS.—The strategy may provide for devel-
opment of—
(1) system integration tools for planning, de-
signing, building, and operating economical, safe,
and clean distributed power hybrid systems, includ-
ing databases, computer models, software, and sen-
sors, controls, and other integrating hardware;
(2) tests of distributed power hybrid systems,
including field tests with industry and cost-shared
demonstrations of distributed power hybrid systems
power parks and microgrids, to validate integrated
performance and to give consumers, policymakers,
and industry the confidence that distributed power
hybrid systems work reliably, safely, and cleanly;
(3) special design tools that can characterize
the benefits and values of distributed power hybrid
systems for consumers and enable virtual proto-
typing of distributed power hybrid systems to reduce
testing needs and the time required to get the sys-
tems into the marketplace;
(4) data to characterize grid operations, includ-
ing interconnection requirements; and
(5) precise resource assessment tools to map
local resources for distributed power hybrid systems.
(c) IMPLEMENTATION AND INTEGRATION.—The Sec-
retary of Energy shall implement the strategy transmitted
under subsection (a), and activities pursuant to the strat-
egy shall be integrated with other activities of the Depart-
ment’s Office of Distributed Energy Resources.
SEC. 5. REPORT TO CONGRESS.
Not later than 1 year after the date of the enactment
of this Act, and annually thereafter, the Secretary of En-
ergy shall transmit to the Congress a report on the use
of, and experience with, distributed power hybrid systems
in the United States, and the research and development
issues remaining to ensure the successful application of
distributed power hybrid systems.
SEC. 6. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Sec-
retary of Energy for carrying out this Act—
(1) $5,000,000 for fiscal year 2002;
(2) $10,000,000 for fiscal year 2003;
(3) $20,000,000 for fiscal year 2004;
(4) $20,000,000 for fiscal year 2005; and
(5) $5,000,000 for fiscal year 2006.
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