property described in clause (ii) of such 
subparagraph, 
‘‘(ii) such taxpayer has, with respect 
to the property described in clause (ii) of 
such subparagraph, entered into a contract 
which ensures that such property operates 
primarily to receive, store, and deliver elec-
tricity from any property described in 
clause (i) of such subparagraph, or 
‘‘(iii) the property described in clause 
(ii) of such subparagraph receives elec-
tricity during periods of typically high pro-
duction of electricity, as a percentage of 
the grid generation mix, from sources de-
scribed in clause (i) of such subparagraph, 
as determined by the grid operator for the 
electrical grid. 
‘‘(c) CERTAIN
PROGRESS
EXPENDITURE
RULES 
MADE APPLICABLE.—Rules similar to the rules of sub-
sections (c)(4) and (d) of section 46 (as in effect on the 
day before the date of the enactment of the Revenue Rec-
onciliation Act of 1990) shall apply for purposes of sub-
section (a). 
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‘‘(d) DEFINITIONS.—The terms ‘disadvantaged com-
munity’ and ‘peaker plant’ have the same meanings given 
such term under section 2 of the PEAKER Act of 2021.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 46 of the Internal Revenue Code of 
1986 is amended— 
(A) by striking ‘‘and’’ at the end of para-
graph (5), 
(B) by striking the period at the end of 
paragraph (6) and inserting ‘‘, and’’, and 
(C) by adding at the end the following new 
paragraph: 
‘‘(7) the renewable energy generation and stor-
age credit.’’. 
(2) Section 49(a)(1)(C) of such Code is amend-
ed— 
(A) by striking ‘‘and’’ at the end of clause 
(iv), 
(B) by striking the period at the end of 
clause (v) and inserting ‘‘, and’’, and 
(C) by adding at the end the following new 
clause: 
‘‘(vi) the basis of any qualified prop-
erty which is part of a qualified renewable 
energy facility under section 48D.’’. 
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(3) Section 50(a)(2)(E) of such Code is amend-
ed by striking ‘‘or 48C(b)(2)’’ and inserting 
‘‘48C(b)(2), or 48D(c)’’. 
(4) The table of sections for subpart E of part 
IV of subchapter A of chapter 1 of such Code is 
amended by inserting after the item relating to sec-
tion 48C the following new item: 
‘‘48D. Renewable energy generation and storage credit.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this subsection shall apply to property placed in service 
after December 31, 2020, under rules similar to the rules 
of section 48(m) of the Internal Revenue Code of 1986 
(as in effect on the day before the date of the enactment 
of the Revenue Reconciliation Act of 1990). 
SEC. 5. RENEWABLE ENERGY GRANT PROGRAM. 
(a) DEFINITIONS.—In this section: 
(1) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’ means each of the following: 
(A) A unit of State or local government. 
(B) A tax-exempt nonprofit organization. 
(C) A community-owned energy generation 
facility or energy storage facility located in a 
disadvantaged community. 
(D) A community-based energy cooperative 
or a similar group of individuals within a com-
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munity who are pursuing an eligible project de-
scribed in subsection (d). 
(E) A partnership between— 
(i) 1 or more of the entities described 
in subparagraphs (A) through (D); and 
(ii)(I) an electric utility; or 
(II) a private entity. 
(2) ENERGY
STORAGE
FACILITY.—The term 
‘‘energy storage facility’’ means a facility that re-
ceives, stores, and delivers electricity. 
(3) PROGRAM.—The term ‘‘program’’ means 
the grant program established under subsection (b). 
(4) QUALIFYING
COMMUNITY
ENERGY
PRO-
POSAL.—The term ‘‘qualifying community energy 
proposal’’ means a proposal to deploy and implement 
renewable energy generation, energy storage tech-
nology, energy efficiency upgrades, energy demand 
management strategies, or distributed renewable en-
ergy resources that a qualifying community energy 
study determines can reduce the runtime of an exist-
ing or planned peaker plant or otherwise reduce or 
replace the need for an existing or planned peaker 
plant. 
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(5) QUALIFYING COMMUNITY ENERGY STUDY.— 
The term ‘‘qualifying community energy study’’ 
means a study or assessment that— 
(A) seeks to identify clean energy strate-
gies to reduce the runtime of an existing or 
planned peaker plant or otherwise reduce or re-
place the need for an existing or planned peaker 
plant, including strategies that involve— 
(i) renewable energy generation; 
(ii) energy storage technology; 
(iii) energy efficiency upgrades; 
(iv) 
energy 
demand 
management 
strategies; or 
(v) distributed renewable energy de-
ployment; and 
(B) is led by or performed in partnership 
with the communities directly impacted by pol-
lution from a peaker plant that is located with-
in the same or an adjacent census tract. 
(6) QUALIFYING ENERGY STORAGE FACILITY.— 
The term ‘‘qualifying energy storage facility’’ means 
an energy storage facility that— 
(A) is colocated with a qualifying renew-
able energy facility and operates primarily to 
receive, store, and deliver renewable energy gen-
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erated by that qualifying renewable energy fa-
cility; 
(B) has entered into a contract with 1 or 
more qualifying renewable energy facilities such 
that the energy storage system operates pri-
marily to receive, store, and deliver renewable 
energy generated by those qualifying renewable 
energy facilities; or 
(C) receives electricity during periods of 
typically high production of renewable energy 
(as a percentage of the grid generation mix), as 
determined by the operator of the applicable 
electrical grid. 
(7) QUALIFYING RENEWABLE ENERGY FACIL-
ITY.—The term ‘‘qualifying renewable energy facil-
ity’’ means a facility that— 
(A) generates renewable energy; and 
(B)(i) is colocated with a qualifying energy 
storage facility; or 
(ii) has entered into a contract described in 
paragraph (6)(B) with 1 or more qualifying en-
ergy storage facilities. 
(8) RENEWABLE ENERGY.—The term ‘‘renew-
able energy’’ means electricity that is generated by 
or derived from, as applicable— 
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(A) a low-impact hydroelectric facility cer-
tified by the Low Impact Hydropower Institute; 
(B) solar energy; 
(C) wind energy; 
(D) geothermal energy; 
(E) tidal energy; or 
(F) wave energy. 
(b) ESTABLISHMENT.—Not later than 1 year after 
the date of enactment of this Act, the Secretary shall es-
tablish a grant program to assist eligible entities in— 
(1) carrying out projects for the construction, 
reconstruction, erection, installation, or acquisition 
of qualifying renewable energy facilities and quali-
fying energy storage facilities; 
(2) carrying out projects for the implementation 
of qualifying community energy proposals; and 
(3) developing and carrying out qualifying com-
munity energy studies. 
(c) APPLICATIONS.—To be eligible to receive a grant 
under the program, an eligible entity shall submit to the 
Secretary an application at such time, in such manner, 
and containing such information as the Secretary may re-
quire. 
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(d) ELIGIBLE PROJECTS AND QUALIFYING COMMU-
NITY ENERGY STUDIES.—The Secretary may provide a 
grant under the program for— 
(1) a project described in subsection (b)(1) only 
if each qualifying renewable energy facility and 
qualifying energy storage facility to be constructed, 
reconstructed, erected, installed, or acquired pursu-
ant to the project will— 
(A) be located in, or provide a direct and 
significant benefit to, a disadvantaged commu-
nity that is located within— 
(i) the same census tract as an exist-
ing or planned peaker plant; or 
(ii) a census tract that is adjacent to 
a census tract in which an existing or 
planned peaker plant is or will be located; 
and 
(B) at a minimum, discharge electricity at 
such times as a peaker plant within the same 
electrical grid load zone would operate to meet 
peak electricity demand, as determined by the 
operator of the applicable electrical grid; 
(2) a project described in subsection (b)(2) only 
if the qualifying community energy proposal to be 
implemented pursuant to the project will be imple-
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mented in, or provide a direct and significant benefit 
to, a disadvantaged community that is located within 
a census tract described in clause (i) or (ii) of para-
graph (1)(A); and 
(3) the development and carrying out of a 
qualifying community energy study only if the quali-
fying community energy study will provide for en-
gagement with, and incorporate feedback from, each 
disadvantaged community that is located within a 
census tract described in clause (i) or (ii) of para-
graph (1)(A). 
(e) TECHNICAL ASSISTANCE GRANTS.—The Sec-
retary may use amounts appropriated under subsection (i) 
to provide grants to eligible entities for the cost of acquir-
ing technical assistance for the preparation and submis-
sion of an application under subsection (c). 
(f) PRIORITY FOR CERTAIN ELIGIBLE ENTITIES.— 
In evaluating applications submitted by eligible entities de-
scribed in subsection (a)(1)(B), the Secretary shall give 
priority to applications submitted by local, community- 
based organizations or energy cooperatives. 
(g) COST SHARING.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), with respect to each project described in 
paragraph (1) or (2) of subsection (b) for which a 
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grant is provided under the program, the maximum 
amount provided for the project under the program 
shall not exceed 60 percent of the total cost incurred 
by the applicable eligible entity for, as applicable— 
(A) the construction, reconstruction, erec-
tion, installation, or acquisition of the applica-
ble qualifying renewable energy facility or quali-
fying energy storage facility; or 
(B) the implementation of the applicable 
qualifying community energy proposal. 
(2) LOCAL, COMMUNITY-BASED ORGANIZATIONS 
AND
ENERGY
COOPERATIVES.—With respect to a 
project described in paragraph (1) that is carried 
out by, or for which an application is submitted by, 
a local, community-based organization or an energy 
cooperative, the maximum amount provided for the 
project under the program shall not exceed 80 per-
cent of the total cost incurred by the local, commu-
nity-based organization or energy cooperative for the 
activities described in subparagraph (A) or (B) of 
that paragraph, as applicable. 
(h) COMMUNITY ENGAGEMENT.—In carrying out this 
section, the Secretary shall initiate and carry out public 
engagement, particularly with residents and stakeholders 
from disadvantaged communities and communities in or 
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adjacent to areas with existing peaker plants identified in 
a report under section 3(a), to ensure that— 
(1)(A) the public has input into the formulation 
of the program; and 
(B) based on that input, the program best ad-
dresses the needs and circumstances of disadvan-
taged communities; and 
(2) the public has information relating to the 
program, including— 
(A) the benefits of, and opportunities for, 
eligible projects under the program; and 
(B) the ways in which disadvantaged com-
munities can best use the program to address 
the clean energy goals of those disadvantaged 
communities. 
(i) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to the Secretary to carry 
out the program not more than $1,000,000,000 for each 
of fiscal years 2022 through 2032. 
Æ 
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