I 
115TH CONGRESS 
2D SESSION 
H. R. 7313 
To require the Secretary of Energy to carry out an energy storage research 
program, loan program, and technical assistance and grant program, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 13, 2018 
Mr. TAKANO (for himself and Mr. COLLINS of New York) introduced the fol-
lowing bill; which was referred to the Committee on Energy and Com-
merce, and in addition to the Committee on Science, Space, and Tech-
nology, for a period to be subsequently determined by the Speaker, in 
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned 
A BILL 
To require the Secretary of Energy to carry out an energy 
storage research program, loan program, and technical 
assistance and grant program, 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 ‘‘Advancing Grid Stor-
age Act of 2018’’. 
SEC. 2. DEFINITIONS. 
In this Act: 
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(1) ENERGY STORAGE SYSTEM.—The term ‘‘en-
ergy storage system’’ means a system or strategy 
that improves the ability to shift the dispatch of en-
ergy in time, across multiple timescales. 
(2) ISLANDING.—The term ‘‘islanding’’ means 
a distributed generator or energy storage device con-
tinuing to power a location in the absence of electric 
power from the primary source. 
(3) LOAN.—The term ‘‘loan’’ has the meaning 
given the term ‘‘direct loan’’ in section 502 of the 
Federal Credit Reform Act of 1990 (2 U.S.C. 661a). 
(4) MICROGRID.—The term ‘‘microgrid’’ means 
an integrated energy system consisting of inter-
connected loads and distributed energy resources, in-
cluding generators and energy storage devices, with-
in clearly defined electrical boundaries that— 
(A) acts as a single controllable entity with 
respect to the grid; and 
(B) can connect and disconnect from the 
grid to operate in both grid-connected mode 
and island mode. 
(5) RENEWABLE ENERGY SOURCE.—The term 
‘‘renewable energy source’’ includes— 
(A) biomass; 
(B) geothermal energy; 
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(C) hydropower; 
(D) landfill gas; 
(E) municipal solid waste; 
(F) ocean (including tidal, wave, current, 
and thermal) energy; 
(G) organic waste; 
(H) photosynthetic processes; 
(I) photovoltaic energy; 
(J) solar energy; and 
(K) wind. 
(6) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Energy. 
SEC. 3. ENERGY STORAGE RESEARCH PROGRAM. 
(a) IN GENERAL.—The Secretary shall carry out, 
within the Office of Electricity Delivery and Energy Reli-
ability, a program for the research of energy storage sys-
tems. 
(b) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this section 
$50,000,000. 
SEC. 4. ENERGY STORAGE SYSTEM DEMONSTRATION AND 
DEPLOYMENT LOAN PROGRAM. 
(a) LOAN PROGRAM.— 
(1) IN GENERAL.—Subject to the provisions of 
this subsection and subsections (b) and (c), the Sec-
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retary shall carry out a program to provide to eligi-
ble entities— 
(A) loans for the demonstration and de-
ployment of energy storage systems in a specific 
project; and 
(B) loans to provide funding for programs 
to finance the demonstration and deployment of 
multiple energy storage systems through a re-
volving loan fund, credit enhancement program, 
or other financial assistance program. 
(2) ELIGIBILITY.—Entities eligible to receive a 
loan under paragraph (1) include— 
(A) a State, territory, or possession of the 
United States; 
(B) a State energy office; 
(C) a tribal organization (as defined in sec-
tion 4 of the Indian Self-Determination and 
Education Assistance Act (25 U.S.C. 450b)); 
(D) an institution of higher education (as 
defined in section 101 of the Higher Education 
Act of 1965 (20 U.S.C. 1001)); and 
(E) an electric utility, including— 
(i) a rural electric cooperative; 
(ii) a municipally owned electric util-
ity; and 
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(iii) an investor-owned utility. 
(3) SELECTION REQUIREMENTS.—In selecting 
eligible entities to receive a loan under this section, 
the Secretary shall, to the maximum extent prac-
ticable, ensure— 
(A) regional diversity among eligible enti-
ties that receive the loans, including participa-
tion by rural States and small States; and 
(B) that specific projects selected for 
loans— 
(i) expand on the existing technology 
demonstration and deployment programs 
of the Department of Energy; and 
(ii) are designed to achieve 1 or more 
of the objectives described in paragraph 
(4). 
(4) OBJECTIVES.—Each demonstration and de-
ployment project selected for a loan under paragraph 
(1) shall include 1 or more of the following objec-
tives: 
(A) With respect to energy storage sys-
tems, the improvement of— 
(i) the feasibility of microgrids or 
islanding; or 
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(ii) the transmission and distribution 
capability to improve reliability in rural 
areas, including high energy cost rural 
areas. 
(B) Use of energy storage systems to im-
prove the security of emergency response infra-
structure. 
(C) Integration of energy storage systems 
with a renewable energy resource production 
source, at the source or away from the source. 
(D) Use of energy storage systems to pro-
vide ancillary services for grid management. 
(E) Advancement of power conversion sys-
tems to make the systems smarter, more effi-
cient, able to communicate with other inverters, 
and able to control voltage. 
(F) Use of energy storage systems to opti-
mize transmission and distribution operation 
and power quality to address overloaded lines 
and maintenance of transformers and sub-
stations. 
(G) Use of energy storage systems for 
peak load management of homes, businesses, 
and the grid, particularly to offset investments 
in new grid capacity. 
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(H) Use of energy storage system devices 
to meet electricity demand during nonpeak gen-
eration periods to make better use of existing 
grid assets. 
(5) RESTRICTION ON USE OF FUNDS.—Any eli-
gible entity that receives a loan under paragraph (1) 
may only use the loan to fund programs relating to 
the demonstration and deployment of energy storage 
systems in households, businesses, and communities. 
(b) LOAN TERMS AND CONDITIONS.— 
(1) TERMS AND CONDITIONS.—Notwithstanding 
any other provision of law, in providing a loan under 
this section, the Secretary shall provide the loan on 
such terms and conditions as the Secretary deter-
mines, after consultation with the Secretary of the 
Treasury, in accordance with this section. 
(2) SPECIFIC APPROPRIATION.—No loan shall 
be made unless an appropriation for the full amount 
of the loan has been specifically provided for that 
purpose. 
(3) REPAYMENT.—No loan shall be made un-
less the Secretary determines that there is reason-
able prospect of repayment of the principal and in-
terest by the borrower of the loan. 
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(4) INTEREST RATE.—A loan provided under 
this section shall bear interest at a fixed rate that 
is equal or approximately equal, in the determination 
of the Secretary, to the interest rate for Treasury 
securities of comparable maturity. 
(5) TERM.—The term of the loan shall require 
full repayment over a period not to exceed the lesser 
of— 
(A) 20 years; or 
(B) 90 percent of the projected useful life 
of the physical asset to be financed by the loan 
(as determined by the Secretary). 
(6) USE OF PAYMENTS.—Payments of principal 
and interest on the loan shall— 
(A) be retained by the Secretary to support 
energy research and development activities; and 
(B) remain available until expended, sub-
ject to such conditions as are contained in an-
nual appropriations Acts. 
(7) NO PENALTY ON EARLY REPAYMENT.—The 
Secretary may not assess any penalty for early re-
payment of a loan provided under this section. 
(8) RETURN OF UNUSED PORTION.—In order to 
receive a loan under this section, an eligible entity 
shall agree to return to the general fund of the 
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Treasury any portion of the loan amount that is un-
used by the eligible entity within a reasonable period 
of time after the date of the disbursement of the 
loan, as determined by the Secretary. 
(9) COMPARABLE WAGE RATES.—Each laborer 
and mechanic employed by a contractor or subcon-
tractor in performance of construction work fi-
nanced, in whole or in part, by the loan shall be paid 
wages at rates not less than the rates prevailing on 
similar construction in the locality as determined by 
the Secretary of Labor in accordance with sub-
chapter IV of chapter 31 of title 40, United States 
Code. 
(c) RULES AND PROCEDURES; DISBURSEMENT OF 
LOANS.— 
(1) RULES AND PROCEDURES.—Not later than 
180 days after the date of enactment of this Act, the 
Secretary shall adopt rules and procedures for car-
rying out the loan program under subsection (a). 
(2) DISBURSEMENT OF LOANS.—Not later than 
1 year after the date on which the rules and proce-
dures under paragraph (1) are established, the Sec-
retary shall disburse the initial loans provided under 
this section. 
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(d) REPORTS.—Not later than 2 years after the date 
of receipt of the loan and annually thereafter for the term 
of the loan, an eligible entity that receives a loan under 
this section shall submit to the Secretary a report describ-
ing the performance of each program and activity carried 
out using the loan, including itemized loan performance 
data. 
(e) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section 
such sums as are necessary. 
SEC. 5. TECHNICAL ASSISTANCE AND GRANT PROGRAM. 
(a) PROGRAM.— 
(1) IN GENERAL.—The Secretary, in consulta-
tion with the Assistant Secretary for Electricity De-
livery and Energy Reliability, shall carry out a tech-
nical assistance and grant program (referred to in 
this section as the ‘‘program’’)— 
(A) to disseminate information and provide 
technical assistance directly to eligible entities 
so the eligible entities can identify, evaluate, 
plan, and design energy storage systems; and 
(B) to make grants to eligible entities so 
that the eligible entities may contract to obtain 
technical assistance to identify, evaluate, plan, 
and design energy storage systems. 
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