Title: Advancing Grid Storage Act of 2018
Policy area: Energy

Summary:
Advancing Grid Storage Act of 2018
This bill requires the Department of Energy to establish certain energy programs, including an energy storage research program and a technical assistance and grant program.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 3376 Introduced in Senate (IS)]

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115th CONGRESS
  2d Session
                                S. 3376

   To require the Secretary of Energy to establish an energy storage 
    research program, a demonstration and deployment program, and a 
    technical assistance and grant program, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            August 23, 2018

Ms. Smith (for herself, Mr. Heinrich, Ms. Hirono, Ms. Cortez Masto, Ms. 
 Stabenow, Mr. King, and Ms. Duckworth) introduced the following bill; 
   which was read twice and referred to the Committee on Energy and 
                           Natural Resources

_______________________________________________________________________

                                 A BILL


 
   To require the Secretary of Energy to establish an energy storage 
    research program, a demonstration and deployment program, and a 
    technical assistance and grant program, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Advancing Grid Storage Act of 
2018''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Energy storage system.--The term ``energy storage 
        system'' means equipment or facilities relating to the electric 
        grid that are capable of absorbing energy, storing the energy 
        for a period of time, and dispatching the energy, that--
                    (A) use mechanical, electrochemical, biochemical, 
                or thermal processes to store energy that was generated 
                at an earlier time for use at a later time;
                    (B) use mechanical, electrochemical, biochemical, 
                or thermal processes to store energy generated from 
                mechanical processes that would otherwise be wasted for 
                delivery at a later time; or
                    (C) store thermal energy for direct use for heating 
                or cooling at a later time in a manner that avoids the 
                need to use electricity at that later time, as is 
                offered by grid-enabled water heaters.
            (2) Islanding.--The term ``islanding'' means a distributed 
        generator or energy storage device continuing to power a 
        location in the absence of electric power from the primary 
        source.
            (3) Microgrid.--The term ``microgrid'' means an integrated 
        energy system consisting of interconnected loads and 
        distributed energy resources, including generators and energy 
        storage devices, within 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.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.

SEC. 3. ENERGY STORAGE RESEARCH PROGRAM.

    (a) In General.--The Secretary shall establish a cross-cutting 
national program within the Department of Energy for the research of 
energy storage systems, components, and materials.
    (b) Additional Requirements.--In establishing the program under 
subsection (a), the Secretary shall--
            (1) identify and coordinate across all relevant program 
        offices throughout the Department of Energy key areas of 
        existing and future research with respect to a portfolio of 
        technologies and approaches; and
            (2) adopt long-term cost, performance, and deployment 
        targets for specific applications of energy storage systems.

SEC. 4. TECHNICAL ASSISTANCE AND GRANT PROGRAM.

    (a) Establishment.--
            (1) In general.--The Secretary shall establish a technical 
        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, 
                design, and develop processes to procure 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, design, and 
                develop processes to procure energy storage systems.
            (2) Technical assistance.--
                    (A) In general.--The technical assistance described 
                in paragraph (1) shall include assistance with 1 or 
                more of the following activities relating to energy 
                storage systems:
                            (i) Identification of opportunities to use 
                        energy storage systems.
                            (ii) Assessment of technical and economic 
                        characteristics.
                            (iii) Utility interconnection.
                            (iv) Permitting and siting issues.
                            (v) Business planning and financial 
                        analysis.
                            (vi) Engineering design.
                    (B) Exclusion.--The technical assistance described 
                in paragraph (1) shall not include assistance relating 
                to modification of Federal, State, or local regulations 
                or policies relating to energy storage systems.
            (3) Information dissemination.--The information 
        disseminated under paragraph (1)(A) shall include--
                    (A) information relating to the topics described in 
                paragraph (2), including case studies of successful 
                examples;
                    (B) computer software for assessment, design, and 
                operation and maintenance of energy storage systems; 
                and
                    (C) public databases that track the operation and 
                deployment of existing and planned energy storage 
                systems.
    (b) Eligibility.--Any nonprofit or for-profit entity shall be 
eligible to receive technical assistance and grants under the program.
    (c) Applications.--
            (1) In general.--An eligible entity desiring technical 
        assistance or grants under the program shall submit to the 
        Secretary an application at such time, in such manner, and 
        containing such information as the Secretary may require.
            (2) Application process.--The Secretary shall seek 
        applications for technical assistance and grants under the 
        program--
                    (A) on a competitive basis; and
                    (B) on a periodic basis, but not less frequently 
                than once every 12 months.
            (3) Priorities.--In selecting eligible entities for 
        technical assistance and grants under the program, the 
        Secretary shall give priority to eligible entities with 
        projects that have the greatest potential for--
                    (A) strengthening the reliability and resiliency of 
                energy infrastructure to the impact of extreme weather 
                events, power grid failures, and interruptions in 
                supply of fossil fuels;
                    (B) reducing the cost of energy storage systems;
                    (C) facilitating the use of renewable energy 
                resources;
                    (D) minimizing environmental impact, including 
                regulated air pollutants and greenhouse gas emissions;
                    (E) improving the feasibility of microgrids or 
                islanding, particularly in rural areas, including high 
                energy cost rural areas; and
                    (F) maximizing local job creation.
    (d) Grants.--On application by an eligible entity, the Secretary 
may award grants to the eligible entity to provide funds to cover not 
more than--
            (1) 100 percent of the costs of the initial assessment to 
        identify system benefits of deploying energy storage systems;
            (2) 75 percent of the cost of guidance relating to methods 
        to assess energy storage in long-term resource planning and 
        resource procurement;
            (3) 60 percent of the cost of studies to assess the cost-
        benefit ratio of energy storage systems; and
            (4) 50 percent of the cost of guidance on complying with 
        State and local regulatory technical standards, including 
        siting and permitting standards.
    (e) Rules and Procedures.--
            (1) Rules.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary shall adopt rules and 
        procedures for carrying out the program.
            (2) Grants.--Not later than 120 days after the date of 
        issuance of the rules and procedures for the program, the 
        Secretary shall issue grants under this section.
    (f) Reports.--The Secretary shall submit to Congress and make 
available to the public--
            (1) not less frequently than once every 2 years, a report 
        describing the performance of the program under this section, 
        including a synthesis and analysis of any information the 
        Secretary requires grant recipients to provide to the Secretary 
        as a condition of receiving a grant; and
            (2) on termination of the program under this section, an 
        assessment of the success of, and education provided by, the 
        measures carried out by eligible entities under the program.

SEC. 5. DEPARTMENT OF ENERGY WORKSHOPS.

    The Secretary shall hold 1 or more workshops during each of 
calendar years 2020 and 2022 to facilitate the sharing, across the 
Department of Energy, the States, local and Tribal governments, 
industry, and the academic research community, of research developments 
and new technical knowledge gained in carrying out sections 3 and 4.

SEC. 6. ENERGY STORAGE SYSTEM DEMONSTRATION AND DEPLOYMENT PROGRAM.

    (a) Energy Storage Grant Program.--
            (1) Establishment.--The Secretary shall establish a 
        competitive grant program for pilot energy storage systems, as 
        identified by the Secretary, that use either--
                    (A) a single system; or
                    (B) aggregations of multiple systems.
            (2) Eligibility.--Entities eligible to receive a grant 
        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 section 
                3765 of title 38, United States Code);
                    (D) an institution of higher education (as defined 
                in section 101 of the Higher Education Act of 1965 (20 
                U.S.C. 1001));
                    (E) an electric utility, including--
                            (i) a rural electric cooperative;
                            (ii) a municipally owned electric utility; 
                        and
                            (iii) an investor-owned utility; and
                    (F) a private energy storage company that is a 
                small business concern (as defined in section 3 of the 
                Small Business Act (15 U.S.C. 632)).
            (3) Selection requirements.--In selecting eligible entities 
        to receive a grant under this section, the Secretary shall, to 
        the maximum extent practicable--
                    (A) ensure regional diversity among eligible 
                entities that receive the grants, including 
                participation by rural States and small States;
                    (B) ensure that specific projects selected for 
                grants--
                            (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);
                    (C) prioritize projects from eligible entities that 
                do not have an energy storage system;
                    (D) give consideration to proposals from eligible 
                entities for securing energy storage through 
                competitive procurement or contract for service;
                    (E) prioritize projects that coordinate with the 
                local incumbent utility for in-front-of-the-meter 
                projects that do not formally involve a utility; and
                    (F) prioritize projects that leverage matching 
                funds from non-Federal sources.
            (4) Objectives.--Each demonstration and deployment project 
        selected for a grant under paragraph (1) shall include 1 or 
        more of the following objectives:
                    (A) To improve the security of critical 
                infrastructure and emergency response systems.
                    (B) To improve the reliability of the transmission 
                and distribution system, particularly in rural areas, 
                including high energy cost rural areas.
                    (C) To optimize transmission or distribution system 
                operation and power quality to defer or avoid costs of 
                replacing or upgrading electric grid infrastructure, 
                including transformers and substations.
                    (D) To supply energy at peak periods of demand on 
                the electric grid or during periods of significant 
                variation of electric grid supply.
                    (E) To reduce peak loads of homes and businesses, 
                particularly to defer or avoid investments in new 
                electric grid capacity.
                    (F) To advance power conversion systems to make the 
                systems smarter, more efficient, able to communicate 
                with other inverters, and able to control voltage.
                    (G) To provide ancillary services for grid 
                stability and management.
                    (H) To integrate a renewable energy resource 
                production source at the source or away from the 
                source.
                    (I) To increase the feasibility of microgrids or 
                islanding.
                    (J) To enable the use of stored energy in forms 
                other than electricity to support the natural gas 
                system and other industrial processes.
            (5) Restriction on use of funds.--Any eligible entity that 
        receives a grant under paragraph (1) may only use the grant to 
        fund programs relating to the demonstration and deployment of 
        energy storage systems connected to the electric grid, 
        including energy storage systems sited behind a customer 
        revenue meter.
            (6) Funding limitations.--
                    (A) Federal cost share.--The Federal cost share of 
                a project carried out with a grant under paragraph (1) 
                shall be not more than 50 percent of the total costs 
                incurred in connection with the development, 
                construction, acquisition of components for, or 
                engineering of a demonstration project.
                    (B) Maximum grant.--The maximum amount of a grant 
                awarded under paragraph (1) shall be $5,000,000.
            (7) No ownership interest.--The United States shall hold no 
        equity or other ownership interest in an energy storage system 
        for which a grant is provided under paragraph (1).
            (8) Comparable wage rates.--Each laborer and mechanic 
        employed by a contractor or subcontractor in performance of 
        construction work financed, in whole or in part, by the grant 
        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 subchapter IV of chapter 
        31 of title 40, United States Code.
    (b) Rules and Procedures; Awarding of Grants.--
            (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 carrying out the grant program under 
        subsection (a).
            (2) Awarding of grants.--Not later than 1 year after the 
        date on which the rules and procedures under paragraph (1) are 
        established, the Secretary shall award the initial grants 
        provided under this section.
    (c) Reports.--The Secretary shall submit to Congress and make 
publicly available--
            (1) not less frequently than once every 2 years for the 
        duration of the grant program under subsection (a), a report 
        describing the performance of the grant program, including a 
        synthesis and analysis of any information the Secretary 
        requires grant recipients to provide to the Secretary as a 
        condition of receiving a grant; and
            (2) on termination of the grant program under subsection 
        (a), an assessment of the success of, and education provided 
        by, the measures carried out by grant recipients under the 
        grant program.

SEC. 7. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated--
            (1) for each of fiscal years 2019 through 2023, $50,000,000 
        to carry out section 3;
            (2) for the period of fiscal years 2019 through 2023, 
        $100,000,000 to carry out section 4, to remain available until 
        expended; and
            (3) for the period of fiscal years 2019 through 2023, 
        $150,000,000 to carry out section 6, to remain available until 
        expended.
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