I 
108TH CONGRESS 
1ST SESSION H. R. 1041
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 
FEBRUARY 27, 2003
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.