(2) the term ‘‘Secretary’’ means the Secretary 
of Energy. 
(1) the term ‘‘Department’’ means the Depart-
ment of Energy; and 
SEC. 3. ENERGY STORAGE SYSTEM PROGRAM. 
The Secretary shall carry out a research, develop-
ment, and demonstration program to support the ability 
of the United States to remain globally competitive in en-
ergy storage systems for vehicles, stationary applications, 
and electricity transmission and distribution. 
SEC. 4. BASIC RESEARCH PROGRAM. 
(a) IN GENERAL.—The Secretary shall conduct a 
basic research program to support the development of en-
ergy storage systems for vehicles, stationary applications, 
and electricity transmission and distribution, including re-
search on— 
(1) materials design; 
(2) materials synthesis and characterization; 
(3) electrolytes; 
(4) surface and interface dynamics; 
(5) modeling and simulation; and 
(6) thermal behavior and life degradation mech-
anisms. 
(b) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary for car-
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rying out this section $50,000,000 for each of the fiscal 
years 2009 through 2014. 
SEC. 5. APPLIED RESEARCH PROGRAM. 
(a) IN GENERAL.—The Secretary shall conduct an 
applied research program on energy storage systems to 
support vehicle, stationary application, and electricity 
transmission and distribution technologies, including re-
search on— 
(1) ultracapacitors; 
(2) flywheels; 
(3) batteries and battery systems (including 
flow batteries); 
(4) compressed air energy systems; 
(5) power conditioning electronics; 
(6) manufacturing technologies for energy stor-
age systems; and 
(7) thermal management systems. 
(b) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary for car-
rying out this section $80,000,000 for each of the fiscal 
years 2009 through 2014. 
SEC. 6. ENERGY STORAGE SYSTEMS DEMONSTRATIONS. 
(a) IN GENERAL.—The Secretary shall carry out 6 
new demonstrations of advanced energy storage systems. 
These demonstrations shall be regionally diversified and 
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shall expand on the Department’s existing technology 
demonstration program. These demonstrations should in-
clude the participation of a range of stakeholders, includ-
ing rural electric cooperatives, investor owned utilities, 
municipally owned electric utilities, energy storage sys-
tems manufacturers, vehicle manufacturers, the renewable 
energy production industry, State or local energy offices, 
the fuel cell industry, and universities. Each of the fol-
lowing objectives shall be included in at least one of the 
technology demonstrations under this subsection: 
(1) Energy storage to improve the feasibility of 
‘‘micro-grids’’ or ‘‘islanding’’, or the transmission 
and distribution capability to improve reliability in 
rural areas. 
(2) Integration of an energy storage system 
with self-healing circuits. 
(3) Use of energy storage to improve security to 
emergency response infrastructure. 
(4) Integration with a renewable energy produc-
tion source, either at the source or away from the 
source. 
(5) Use of energy storage to provide ancillary 
services, such as frequency response or spinning re-
serve services, for grid management. 
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(6) Advancement of power conversion systems 
to make them smarter, more efficient, able to com-
municate with other inverters, and able to control 
voltage. 
(7) Use of energy storage to optimize trans-
mission and distribution operation and power qual-
ity, which could address overloaded lines and main-
tenance of transformers and substations. 
(8) Use of advanced energy storage for peak 
shaving of homes, businesses, or grid. 
(9) Use of energy storage devices such as plug- 
in hybrid vehicles to fill up the night time valley for 
electricity demand to make better use of existing 
grid assets. 
(b) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary for car-
rying out this section such sums as may be necessary for 
each of the fiscal years 2009 through 2014. 
SEC. 7. VEHICLE ENERGY STORAGE DEMONSTRATION. 
(a) IN GENERAL.—The Secretary shall carry out a 
program of vehicle energy storage technology demonstra-
tions. These technology demonstrations shall be conducted 
through consortia, which may include energy storage sys-
tems manufacturers and their suppliers, vehicle manufac-
turers, rural electric cooperatives, investor owned utilities, 
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municipal and rural electric utilities, State and local gov-
ernments, metropolitan transportation authorities, and 
universities. The program shall demonstrate one or more 
of the following: 
(1) Novel, high capacity, high efficiency energy 
storage, charging, and control systems, along with 
the collection of data on performance characteristics 
such as battery life, energy storage capacity, and 
power delivery capacity. 
(2) Advanced onboard energy management sys-
tems, highly efficient battery cooling systems. 
(3) Integration of such systems on a prototype 
vehicular platform. 
(4) New technologies and processes that reduce 
manufacturing costs. 
(5) Integration of advanced vehicle technologies 
with electricity distribution system and smart meter-
ing technology. 
(b) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary for car-
rying out this section such sums as may be necessary for 
each of the fiscal years 2009 through 2014. 
SEC. 8. COST SHARING. 
The Secretary shall carry out the programs under 
sections 6 and 7 in compliance with section 988 (a) 
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through (d) of the Energy Policy Act of 2005 (42 U.S.C. 
16352(a) through (d)). 
Æ 
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