S. 1602Senate116th Congress (2019-2021)In Committee

BEST Act

AI-Generated Summary

Updated April 14, 2026 at 5:28 AM UTC

The Better Energy Storage Technology (BEST) Act amends the 2007 Energy Storage Competitiveness Act to create a Department of Energy‑led program that funds research, development, and demonstration of grid‑scale energy storage. It sets goals, cost targets, a 10‑year strategic plan, and provides substantial federal funding. The law also creates demonstration projects, grant programs, a long‑duration storage initiative, technical assistance, a recycling prize, and new regulatory actions to promote storage deployment. It affects the DOE, electric utilities, state and tribal energy offices, universities, private firms, and the overall electricity grid.

Key Provisions

DOE must establish an Energy Storage System Research, Development, and Deployment Program within 180 days, with a 10‑year strategic plan, cost targets, and annual updates.
Authorizes $100 million per year (FY2020‑24) for the program and another $100 million per year for demonstration projects, plus additional appropriations for other sections.
Requires at least five grid‑scale storage demonstration projects to be underway by September 30, 2023, with no federal equity ownership in the projects.
Creates a competitive pilot grant program for states, tribes, utilities, universities, and small businesses to implement storage pilots, emphasizing regional diversity and grid‑impact objectives.
Establishes a long‑duration storage demonstration initiative and a joint program with the Department of Defense’s ESTCP, including a memorandum of understanding and shared test‑bed infrastructure.
Sets up a technical and planning assistance program that offers expertise and grants to eligible utilities and cooperatives to plan and procure storage systems.
Institutes an annual prize competition to advance recycling methods for critical storage materials such as lithium, cobalt, nickel, and graphite.
Directs the Federal Energy Regulatory Commission to issue regulations within one year allowing storage resources to receive cost recovery and to hold a technical conference on storage’s grid benefits.
Mandates coordination among DOE offices, other federal agencies, and private stakeholders to avoid duplication and ensure collaboration.

Legislative Activity

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5 earlier actions

SenateCalendars Latest Action

Placed on Senate Legislative Calendar under General Orders. Calendar No. 255.

October 22, 2019

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SenateIntro Referral

Introduced in Senate

May 22, 2019

SenateIntro Referral

Read twice and referred to the Committee on Energy and Natural Resources. (Sponsor introductory remarks on measure: CR S3062-3063)

Energy and Natural Resources Committee

May 22, 2019

SenateCommittee

Committee on Energy and Natural Resources Subcommittee on Energy. Hearings held. With printed Hearing: S.Hrg. 116-327.

Energy Subcommittee

July 9, 2019

SenateCommittee

Committee on Energy and Natural Resources. Ordered to be reported with an amendment in the nature of a substitute favorably.

Energy and Natural Resources Committee

September 25, 2019

SenateCommittee

Committee on Energy and Natural Resources. Reported by Senator Murkowski with an amendment in the nature of a substitute and an amendment to the title. With written report No. 116-135.

Energy and Natural Resources Committee

October 22, 2019

SenateCalendars

Placed on Senate Legislative Calendar under General Orders. Calendar No. 255.

October 22, 2019

Floor Debate

3 members

What members said about S. 1602 on the floor

1 Republican2 Democrats

Sen. Susan M. CollinsR-ME · May 22, 2019

Mr. President, I rise today to introduce the Better Energy Storage Technology Act. I am pleased to be partnering with Senator Heinrich on this initiative. I would also like to thank Senator Gardner,…

Mr. President, I rise today to introduce the Better Energy

Storage Technology Act. I am pleased to be partnering with Senator Heinrich on this initiative. I would also like to thank Senator Gardner, Senator Smith, Senator Coons, Senator McSally, and Senator King who have joined us as original cosponsors of the BEST Act.

Our bipartisan bill supports narrowly tailored energy storage research to develop the next generation of technologies at the Department of Energy. Advancing next generation energy storage technology will allow us to integrate more renewables into the power grid, such as wind energy or solar energy which, in turn, will help to reduce emissions and slow climate change.

Energy storage systems provide a wide range of benefits. First, these technologies increase the reliability and the resilience of the electric grid by limiting potential disruptions. Energy storage helps us to better manage supply and demand on the grid and allows for the expanded use of renewable energy. The reliability of our grid and grid- scale storage systems go hand-in-hand.

Second, this type of technology can decrease energy costs, a goal that we all share. In Maine, the price of electricity rises steeply during the coldest days of the year. For example, in late 2017 and early 2018, very cold temperatures in New England led to higher energy costs--more than a billion dollars in the wholesale energy market--in just 15 days.

The next generation of energy storage technologies could help to transform our grid, meaning that we would no longer need to generate more expensive power to meet demands during the hottest and coldest days of the year. Instead, we could use more affordable energy sources that have been stored for later use.

Third, energy storage systems can allow for more intermittent renewable sources, such as wind and solar power, to be placed on the grid and used precisely when they are needed. The Aqua Ventus, a floating, deepwater offshore wind project being developed by the University of Maine and a consortium of groups, could benefit from energy storage innovation. Off the coast of Maine, there are very strong and consistent winds where offshore wind turbines can produce electricity almost 50 percent of the time. This next generation storage technology will ensure that we can use this wind power closer to 100 percent of the time by storing electricity to use when the wind isn't blowing.

One of the biggest hurdles to commercializing energy storage is cost. To overcome this obstacle, our bill specifically directs the Department of Energy to work to decrease the cost of this exciting technology. This is similar to the Department's SunShot initiative that decreased the price of solar power by approximately 75 percent in less than a decade.

Furthermore, energy storage systems are technology neutral. This bill will foster innovation and enhance deployment of these innovative technologies without picking winners or losers.

Specifically, our bill would do the following: It would focus energy storage research on highly flexible, longer duration, and seasonal storage systems. It would support five energy storage demonstration projects. The bill would create a strategic plan and allow the Department of Energy to develop cost targets. It would coordinate research and support the coordination of research. Finally, the bill would authorize $60 million annually for each of the next 5 years.

I am pleased to report that our bipartisan bill has earned very broad support, including the endorsements of the Bipartisan Policy Center, Citizens for Responsible Energy Solutions, ClearPath, Edison Electric Institute, Energy Storage Association, the Information Technology and Innovation Foundation, the National Audubon Society, the Natural Resources Council of Maine, the National Hydropower Association, Solar Energy Industries Association, the Union of Concerned Scientists, and the U.S. Chamber of Commerce.

Frankly, it has been a long time since I have seen a bill be able to attract that much support from groups that have different ideological goals, and I am very proud that we were able to line up the support of all of those groups.

The BEST Act will help advance energy storage technologies to improve the efficiency of our Nation's electrical grid while helping to promote the wider use of clean, renewable energy. The goals of this bill are those which I would hope every Member of this body could embrace. I urge my colleagues to support this legislation.

Thank you, Mr. President.

Sen. Susan M. CollinsR-ME · May 22, 2019

Mr. President, I rise today to introduce the Better Energy

Furthermore, energy storage systems are technology neutral. This bill will foster innovation and enhance deployment of these innovative technologies without picking winners or losers.

Thank you, Mr. President.

Sen. Ron WydenD-OR · May 22, 2019

Mr. President, Oregonians have a strong interest in using biomass as a source of renewable fuels. This desire, coupled with how well we grow biomass in Oregon, creates the opportunity to use…

Mr. President, Oregonians have a strong interest in using biomass as a source of renewable fuels. This desire, coupled with how well we grow biomass in Oregon, creates the opportunity to use carefully selected wood waste as a source for cleaner transportation fuel. If we do it right, this effort will lead to healthier forests, more carbon sequestration, cleaner transportation fuels as compared to traditional gasolines, and protected old growth forests.

Current law excludes the use of federal biomass in the making of renewable fuels as defined by the Renewable Fuel Standard (RFS). The bill being introduced today eliminates that exclusion.

In addition to being an energy matter, this is an important forest management issue. Over many decades there has been an unnatural buildup of woody material on the forest floor. It becomes fuel for catastrophic wildfires. For months, each summer, Oregonians in every corner of the state, from Astoria to Adel and from Medford to Madras, suffer from smokey skies, hazardous air quality, and the almost constant threat that a wildfire may burn down their homes. In the eastern portion of the state, invasive species like juniper trees pose challenges, on both private and public lands--lowering water tables, posing fire risks, and encroaching on sage grouse habitat. It is time we stopped putting our heads in the sand, hoping the environmental ship will right itself.

Instead, this excess woody biomass should be contributing to U.S. energy independence by being converted to transportation or electricity fuels. This bill makes that economically feasible. It would make it more cost efficient for private landowners to remove low-value brush, like juniper. The bill also helps pay for programs to reduce dead and dying trees that fuel catastrophic wildfires and helps thin out unhealthy second-growth forests. The bill ensures that all residuals from the milling process and certain biomass from national forests and BLM forests qualify for the RFS standards.

Importantly, under this new definition biomass materials harvested from federal lands must be done so in accordance with all federal laws, regulations, and land-use plans and designations. In addition, the bill pays specific attention to biomass removal from insect and disease ridden forests and wildfire prone areas. And, to ensure environmental problems are being solved, not created, the bill restricts the types of biomass materials that can be harvested from federal lands so that old growth trees and stands will continue to be protected.

At the end of the day, the small diameter trees, the limbs, the debris, even sawdust at the mill presents real opportunities to generate green energy, generate green jobs, lower wildfire risks in rural areas across the country, and better position the United States to meet the RFS.

There is a lot of bipartisan support for the biomass definition in this bill. It balances sound energy policy with sound environmental policy.

I want to thank my colleagues Senators Risch, King, Crapo, and Merkley for joining me on this important bill.

Sen. Tim KaineD-VA · May 22, 2019

Mr. President, today I am introducing the Foster Care Tax Credit Act, with my colleague Senator Jones. Enacting this bill would go a long way towards helping families with the expenses that come with…

Sen. Susan M. CollinsR-ME · May 22, 2019

I yield the floor.

Bill Text

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Reported to SenateIssued October 22, 2019

Calendar No. 255

116th CONGRESS

1st Session

S. 1602

[Report No. 116–135]

IN THE SENATE OF THE UNITED STATES

May 22, 2019

Ms. Collins (for herself, Mr. Heinrich, Ms. Smith, Mr. Gardner, Mr. Coons, Ms. McSally, Mr. King, Mr. Crapo, Ms. Stabenow, Ms. Hirono, Mr. Manchin, Ms. Klobuchar, Ms. Hassan, Mr. Whitehouse, Mr. Reed, Ms. Cortez Masto, Mr. Wyden, Ms. Duckworth, and Ms. Murkowski) introduced the following bill; which was read twice and referred to the Committee on Energy and Natural Resources

October 22, 2019

Reported by Ms. Murkowski, with an amendment and an amendment to the title

Strike out all after the enacting clause and insert the part printed in italic

A BILL

To amend the United States Energy Storage Competitiveness Act of 2007 to establish a research, development, and demonstration program for grid-scale energy storage systems, and for other purposes.

Short title

This Act may be cited as the Better Energy Storage Technology Act or the BEST Act.

Grid-scale energy storage system research, development, and demonstration program

(a)

In general

The United States Energy Storage Competitiveness Act of 2007 (42 U.S.C. 17231) is amended—

(1)

by redesignating subsections (l) through (p) as subsections (m) through (q), respectively; and

(2)

by inserting after subsection (k) the following:

(l)

Grid-Scale energy storage system research, development, and demonstration program

(1)

Definitions

In this subsection:

(A)

Energy storage system

The term energy storage system means a system, equipment, facility, or technology that—

(i)

is capable of absorbing energy, storing that energy for a period of time, and dispatching the stored energy; and

(ii)

(I)

uses a mechanical, electrical, chemical, electrochemical, or thermal process to store energy that—

(aa)

was generated at an earlier time for use at a later time; or

(bb)

was generated from a mechanical process, and would otherwise be wasted, for delivery at a later time; or

(II)

stores 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, in the same manner as the storage and use offered by a grid-enabled water heater.

(B)

Program

The term program means the research, development, and demonstration program established under paragraph (2)(A).

(2)

Establishment

(A)

In general

Not later than 180 days after the date of enactment of the BEST Act, the Secretary shall establish within the Office of Electricity of the Department of Energy a research, development, and demonstration program of grid-scale energy storage systems, in accordance with this subsection.

(B)

Goals, priorities, cost targets

The Secretary shall develop goals, priorities, and cost targets for the program.

(3)

Strategic plan

(A)

In general

Not later than 180 days after the date of enactment of the BEST Act, the Secretary shall submit to the Committee on Energy and Natural Resources of the Senate and the Committee on Science, Space, and Technology of the House of Representatives a 10-year strategic plan for the program.

(B)

Contents

The strategic plan submitted under subparagraph (A) shall—

(i)

identify Department of Energy programs that—

(I)

support the research and development activities described in paragraph (4) and the demonstration projects under paragraph (6); and

(II)

(aa)

do not support the activities or projects described in subclause (I); but

(bb)

are important to the development of grid-scale energy storage systems and the mission of the Office of Electricity of the Department of Energy, as determined by the Secretary; and

(ii)

include expected timelines for—

(I)

the accomplishment of relevant objectives under current programs of the Department of Energy relating to grid-scale energy storage systems; and

(II)

the commencement of any new initiatives within the Department of Energy relating to grid-scale energy storage systems to accomplish those objectives.

(C)

Updates to plan

Not less frequently than once every 2 years, the Secretary shall submit to the Committee on Energy and Natural Resources of the Senate and the Committee on Science, Space, and Technology of the House of Representatives an updated 10-year strategic plan, which shall identify, and provide a justification for, any major deviation from a previous strategic plan submitted under this paragraph.

(4)

Research and development

In carrying out the program, the Secretary shall focus research and development activities on developing cost-effective energy storage systems that—

(A)

(i)

to balance day-scale needs, are capable of highly flexible power output for not less than 6 hours; and

(ii)

have a lifetime of—

(I)

not less than 8,000 cycles of discharge at full output; and

(II)

20 years of operation;

(B)

(i)

can provide power to the electric grid for durations of approximately 10 to 100 hours; and

(ii)

have a lifetime of—

(I)

not less than 1,500 cycles of discharge at full output; and

(II)

20 years of operation; and

(C)

can store energy over several months and address seasonal scale variations in supply and demand.

(5)

Cost targets

(A)

In general

Cost targets developed by the Secretary under paragraph (2)(B) shall—

(i)

be for energy storage costs across all types of energy storage technology; and

(ii)

include technology costs, installation costs, balance of services costs, and soft costs.

(B)

Target updates; subtargets

Not less frequently than once every 5 years during the 10-year period beginning on the date of enactment of the BEST Act, the Secretary shall—

(i)

revise the cost targets developed under paragraph (2)(B) to be more stringent, based on—

(I)

a technology-neutral approach that considers all types of energy storage deployment scenarios, including individual technologies, technology combination use profiles, and integrated control system applications;

(II)

input from a variety of stakeholders, including the stakeholders described in subsection (i)(3);

(III)

the inclusion and use of existing infrastructure; and

(IV)

the ability to optimize the integration of intermittent renewable energy generation technology and distributed energy resources; and

(ii)

establish cost subtargets for technologies and applications relating to the energy storage systems described in paragraph (4), taking into consideration—

(I)

electricity market prices; and

(II)

the goal of being cost-competitive in specific markets for electric grid products and services.

(6)

Demonstration projects

(A)

In general

Not later than September 30, 2023, under the program, the Secretary shall, to the maximum extent practicable, enter into agreements to carry out not more than 5 grid-scale energy storage system demonstration projects.

(B)

Objectives

Each demonstration project carried out under subparagraph (A) shall be designed to further the development of the energy storage systems described in paragraph (4).

(C)

No project ownership interest

The Federal Government shall not hold any equity or other ownership interest in any grid-scale energy storage system that is part of a demonstration project under this paragraph.

(7)

Testing and validation

The Secretary shall accelerate the standardized testing and validation of grid-scale energy storage systems under the program through collaboration with one or more National Laboratories (as defined in section 2 of the Energy Policy Act of 2005 (42 U.S.C. 15801)), including by developing testing and evaluation methodologies for—

(A)

standardized grid performance testing for energy storage systems, materials, and technologies during each stage of development, beginning with the research stage and ending with the deployment stage, including performance testing with charge and discharge protocols to evaluate power capability, energy output, and degradation during cycling and calendar aging on earliest stage commercially viable prototypes (commonly less than 100 kilowatts); and

(B)

accelerated life testing protocols to predict estimated lifetime metrics with accuracy.

(8)

Coordination

To accelerate the development of grid-scale energy storage systems under the program, and pursuant to subsection (n), the Secretary shall coordinate with—

(A)

offices within the Department of Energy conducting energy storage research, such as the Advanced Research Projects Agency–Energy, the Office of Science, and the Office of Energy Efficiency and Renewable Energy;

(B)

Federal agencies that are carrying out initiatives to increase energy security or reliability, such as the Department of Defense, the National Science Foundation, the Federal Energy Regulatory Commission, and the Department of Homeland Security;

(C)

program offices that aim to increase domestic manufacturing and production, such as the Office of Advanced Manufacturing in the Department of Energy and the National Institute of Standards and Technology in the Department of Commerce; and

(D)

members of private industry to advance the development of commercially viable grid-scale energy storage systems.

(b)

Authorization of appropriations

The United States Energy Storage Competitiveness Act of 2007 (42 U.S.C. 17231) is amended, in subsection (q) (as redesignated by subsection (a)(1))—

(1)

in paragraph (5), by striking and at the end;

(2)

in paragraph (6), by striking the period at the end and inserting ; and; and

(3)

by adding at the end the following:

(7)

the research, development, and demonstration program of grid-scale energy storage systems under subsection (l) $60,000,000 for each of fiscal years 2020 through 2024.

Short title

This Act may be cited as the Better Energy Storage Technology Act or the BEST Act.

Definitions

In this Act:

(1)

Department

The term Department means the Department of Energy.

(2)

Energy storage system

The term energy storage system means any system, equipment, facility, or technology that—

(A)

is capable of absorbing or converting energy, storing the energy for a period of time, and dispatching the energy; and

(B)

(i)

uses mechanical, electrochemical, thermal, electrolysis, or other processes to convert and store electric energy that was generated at an earlier time for use at a later time; or

(ii)

stores energy in an electric, thermal, or gaseous state for direct use for heating or cooling at a later time in a manner that avoids the need to use electricity or other fuel sources at that later time, such as a grid-enabled water heater.

(3)

National Laboratory

The term National Laboratory has the meaning given the term in section 2 of the Energy Policy Act of 2005 (42 U.S.C. 15801).

(4)

Secretary

The term Secretary means the Secretary of Energy, unless otherwise specified.

Energy Storage System Research, Development, and Deployment Program

(a)

Establishment

Not later than 180 days after the date of enactment of this Act, the Secretary shall establish a program, to be known as the Energy Storage System Research, Development, and Deployment Program (referred to in this section as the program).

(b)

Initial program objectives

The program shall focus on research, development, and deployment of—

(1)

energy storage systems designed to further the development of technologies—

(A)

for large-scale commercial deployment;

(B)

for deployment at cost targets established by the Secretary;

(C)

for hourly and subhourly durations required to provide reliability services to the grid;

(D)

for daily durations, which have—

(i)

the capacity to discharge energy for a minimum of 6 hours; and

(ii)

a system lifetime of at least 20 years under regular operation;

(E)

for weekly or monthly durations, which have—

(i)

the capacity to discharge energy for 10 to 100 hours, at a minimum; and

(ii)

a system lifetime of at least 20 years under regular operation; and

(F)

for seasonal durations, which have—

(i)

the capability to address seasonal variations in supply and demand; and

(ii)

a system lifetime of at least 20 years under regular operation;

(2)

distributed energy storage technologies and applications, including building-grid integration;

(3)

transportation energy storage technologies and applications, including vehicle-grid integration;

(4)

cost-effective systems and methods for—

(A)

the reclamation, recycling, and disposal of energy storage materials, including lithium, cobalt, nickel, and graphite; and

(B)

the reuse and repurposing of energy storage system technologies;

(5)

advanced control methods for energy storage systems;

(6)

pumped hydroelectric energy storage systems to advance—

(A)

adoption of innovative technologies, including—

(i)

adjustable-speed, ternary, and other new pumping and generating equipment designs;

(ii)

modular systems;

(iii)

closed-loop systems, including mines and quarries; and

(iv)

other critical equipment and materials for pumped hydroelectric energy storage, as determined by the Secretary; and

(B)

reductions of equipment costs, civil works costs, and construction times for pumped hydroelectric energy storage projects, with the goal of reducing those costs by 50 percent;

(7)

models and tools to demonstrate the benefits of energy storage to—

(A)

power and water supply systems;

(B)

electric generation portfolio optimization; and

(C)

expanded deployment of other renewable energy technologies, including in hybrid energy storage systems; and

(8)

energy storage use cases from individual and combination technology applications, including value from various-use cases and energy storage services.

(c)

Testing and validation

In coordination with 1 or more National Laboratories, the Secretary shall accelerate the development, standardized testing, and validation of energy storage systems under the program by developing testing and evaluation methodologies for—

(1)

storage technologies, controls, and power electronics for energy storage systems under a variety of operating conditions;

(2)

standardized and grid performance testing for energy storage systems, materials, and technologies during each stage of development, beginning with the research stage and ending with the deployment stage;

(3)

reliability, safety, and durability testing under standard and evolving duty cycles; and

(4)

accelerated life testing protocols to predict estimated lifetime metrics with accuracy.

(d)

Periodic evaluation of program objectives

Not less frequently than once every calendar year, the Secretary shall evaluate and, if necessary, update the program objectives to ensure that the program continues to advance energy storage systems toward widespread commercial deployment by lowering the costs and increasing the duration of energy storage resources.

(e)

Energy storage strategic plan

(1)

In general

The Secretary shall develop a 10-year strategic plan for the program, and update the plan, in accordance with this subsection.

(2)

Contents

The strategic plan developed under paragraph (1) shall—

(A)

be coordinated with and integrated across other relevant offices in the Department;

(B)

to the extent practicable, include metrics that can be used to evaluate storage technologies;

(C)

identify Department programs that—

(i)

support the research and development activities described in subsection (b) and the demonstration projects under section 4; and

(ii)

(I)

do not support the activities or projects described in clause (i); but

(II)

are important to the development of energy storage systems and the mission of the Department, as determined by the Secretary;

(D)

include expected timelines for—

(i)

the accomplishment of relevant objectives under current programs of the Department relating to energy storage systems; and

(ii)

the commencement of any new initiatives within the Department relating to energy storage systems to accomplish those objectives; and

(E)

incorporate relevant activities described in the Grid Modernization Initiative Multi-Year Program Plan.

(3)

Submission to Congress

Not later than 180 days after the date of enactment of this Act, the Secretary shall submit to the Committee on Energy and Natural Resources of the Senate and the Committees on Energy and Commerce and Science, Space, and Technology of the House of Representatives the strategic plan developed under paragraph (1).

(4)

Updates to plan

The Secretary—

(A)

shall annually review the strategic plan developed under paragraph (1); and

(B)

may periodically revise the strategic plan as appropriate.

(f)

Leveraging of resources

The program may be led by a specific office of the Department, but shall be cross-cutting in nature, so that in carrying out activities under the program, the Secretary (or a designee of the Secretary charged with leading the program) shall leverage existing Federal resources, including, at a minimum, the expertise and resources of—

(1)

the Office of Electricity Delivery and Energy Reliability;

(2)

the Office of Energy Efficiency and Renewable Energy, including the Water Power Technologies Office; and

(3)

the Office of Science, including—

(A)

the Basic Energy Sciences Program;

(B)

the Advanced Scientific Computing Research Program;

(C)

the Biological and Environmental Research Program; and

(4)

the Electricity Storage Research Initiative established under section 975 of the Energy Policy Act of 2005 (42 U.S.C. 16315).

(g)

Protecting privacy and security

In carrying out this section, the Secretary shall identify, incorporate, and follow best practices for protecting the privacy of individuals and businesses and the respective sensitive data of the individuals and businesses, including by managing privacy risk and implementing the Fair Information Practice Principles of the Federal Trade Commission for the collection, use, disclosure, and retention of individual electric consumer information in accordance with the Office of Management and Budget Circular A–130 (or successor circulars).

Energy storage demonstration projects; pilot grant program

(a)

Demonstration projects

Not later than September 30, 2023, the Secretary shall, to the maximum extent practicable, enter into agreements to carry out not fewer than 5 energy storage system demonstration projects, including at least 1 energy storage system demonstration project designed to further the development of technologies described in subparagraph (E) or (F) of section 3(b)(1).

(b)

Energy storage pilot grant program

(1)

Definition of eligible entity

In this subsection, the term eligible entity means—

(A)

a State energy office (as defined in section 124(a) of the Energy Policy Act of 2005 (42 U.S.C. 15821(a)));

(B)

an Indian tribe (as defined in section 4 of the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4103);

(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)

an electric cooperative;

(ii)

a political subdivision of a State, such as a municipally owned electric utility, or any agency, authority, corporation, or instrumentality of a State political subdivision; and

(iii)

an investor-owned utility; and

(F)

a private energy storage company that is a small business concern (within the meaning of section 3 of the Small Business Act (15 U.S.C. 632)).

(2)

Establishment

The Secretary shall establish a competitive grant program under which the Secretary shall award grants to eligible entities to carry out demonstration projects for pilot energy storage systems.

(3)

Selection requirements

In selecting eligible entities to receive a grant under paragraph (2), the Secretary shall, to the maximum extent practicable—

(A)

ensure regional diversity among eligible entities awarded grants, including ensuring participation of eligible entities that are rural States and States with high energy costs;

(B)

ensure that grants are awarded for demonstration projects that—

(i)

expand on the existing technology demonstration programs of the Department;

(ii)

are designed to achieve 1 or more of the objectives described in paragraph (4); and

(iii)

inject or withdraw energy from the bulk power system, electric distribution system, building energy system, or microgrid (grid-connected or islanded mode) where the project is located; and

(C)

give consideration to proposals from eligible entities for securing energy storage through competitive procurement or contract for service.

(4)

Objectives

Each demonstration project carried out by a grant awarded under paragraph (2) shall have 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 transmission and distribution systems, 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.

(F)

To improve and advance power conversion systems.

(G)

To provide ancillary services for grid stability and management.

(H)

To integrate renewable energy resource production.

(I)

To increase the feasibility of microgrids (grid-connected or islanded mode).

(J)

To enable the use of stored energy in forms other than electricity to support the natural gas system and other industrial processes.

(K)

To integrate fast charging of electric vehicles.

(L)

To improve energy efficiency.

(c)

Reports

Not less frequently than once every 2 years for the duration of the programs under subsections (a) and (b), the Secretary shall submit to Congress and make publicly available a report describing the performance of those programs.

(d)

No project ownership interest

The Federal Government shall not hold any equity or other ownership interest in any energy storage system that is part of a project under this section unless the holding is agreed to by each participant of the project.

Long-duration demonstration initiative and joint program

(a)

Definitions

In this section:

(1)

Director of ARPA–E

The term Director of ARPA–E has the meaning given the term in section 5012(a) of the America COMPETES Act (42 U.S.C. 16538(a)).

(2)

Director of ESTCP

The term Director of ESTCP means the Secretary of Defense, acting through the Director of the Environmental Security Technology Certification Program of the Department of Defense.

(3)

Initiative

The term Initiative means the demonstration initiative established under subsection (b).

(4)

Joint Program

The term Joint Program means the joint program established under subsection (d).

(5)

Secretary

The term Secretary means the Secretary of Energy, acting through the Director of ARPA–E.

(b)

Establishment of Initiative

Not later than 180 days after the date of enactment of this Act, the Secretary shall establish a demonstration initiative composed of demonstration projects focused on the development of long-duration energy storage technologies.

(c)

Selection of projects

To the maximum extent practicable, in selecting demonstration projects to participate in the Initiative, the Secretary shall—

(1)

ensure a range of technology types;

(2)

ensure regional diversity among projects; and

(3)

consider bulk power level, distribution power level, behind-the-meter, microgrid (grid-connected or islanded mode), and off-grid applications.

(d)

Joint Program

(1)

Establishment

As part of the Initiative, the Secretary, in consultation with the Director of ESTCP, shall establish within the Department of Energy a joint program to carry out projects—

(A)

to demonstrate promising long-duration energy storage technologies at different scales; and

(B)

to help new, innovative long-duration energy storage technologies become commercially viable.

(2)

Memorandum of understanding

Not later than 200 days after the date of enactment of this Act, the Secretary shall enter into a memorandum of understanding with the Director of ESTCP to administer the Joint Program.

(3)

Infrastructure

In carrying out the Joint Program, the Secretary and the Director of ESTCP shall—

(A)

use existing test-bed infrastructure at—

(i)

Department of Energy facilities; and

(ii)

Department of Defense installations; and

(B)

develop new infrastructure for identified projects, if appropriate.

(4)

Goals and metrics

The Secretary and the Director of ESTCP shall develop goals and metrics for technological progress under the Joint Program consistent with energy resilience and energy security policies.

(5)

Selection of projects

(A)

In general

To the maximum extent practicable, in selecting projects to participate in the Joint Program, the Secretary and the Director of ESTCP shall—

(i)

ensure that projects are carried out under conditions that represent a variety of environments with different physical conditions and market constraints; and

(ii)

ensure an appropriate balance of—

(I)

larger, higher-cost projects; and

(II)

smaller, lower-cost projects.

(B)

Priority

In carrying out the Joint Program, the Secretary and the Director of ESTCP shall give priority to demonstration projects that—

(i)

make available to the public project information that will accelerate deployment of long-duration energy storage technologies; and

(ii)

will be carried out in the field.

Technical and planning assistance program

(a)

Definitions

In this section:

(1)

Eligible entity

The term eligible entity means—

(A)

an electric cooperative;

(B)

a political subdivision of a State, such as a municipally owned electric utility, or any agency, authority, corporation, or instrumentality of a State political subdivision;

(C)

a not-for-profit entity that is in a partnership with not less than 6 entities described in subparagraph (A) or (B); and

(D)

an investor-owned utility.

(2)

Program

The term program means the technical and planning assistance program established under subsection (b)(1).

(b)

Establishment

(1)

In general

The Secretary shall establish a technical and planning assistance program to assist eligible entities in identifying, evaluating, planning, designing, and developing processes to procure energy storage systems.

(2)

Assistance and grants

Under the program, the Secretary shall—

(A)

provide technical and planning assistance, including disseminating information, directly to eligible entities; and

(B)

award grants to eligible entities to contract to obtain technical and planning assistance from outside experts.

(3)

Focus

In carrying out the program, the Secretary shall focus on energy storage system projects that have the greatest potential for—

(A)

strengthening the reliability and resiliency of energy infrastructure;

(B)

reducing the cost of energy storage systems;

(C)

improving the feasibility of microgrids (grid-connected or islanded mode), particularly in rural areas, including high energy cost rural areas;

(D)

reducing consumer electricity costs; or

(E)

maximizing local job creation.

(c)

Technical and planning assistance

(1)

In general

Technical and planning assistance provided under the program shall include assistance with 1 or more of the following activities relating to energy storage systems:

(A)

Identification of opportunities to use energy storage systems.

(B)

Feasibility studies to assess the potential for development of new energy storage systems or improvement of existing energy storage systems.

(C)

Assessment of technical and economic characteristics, including a cost-benefit analysis.

(D)

Utility interconnection.

(E)

Permitting and siting issues.

(F)

Business planning and financial analysis.

(G)

Engineering design.

(H)

Resource adequacy planning.

(I)

Resilience planning and valuation.

(2)

Exclusion

Technical and planning assistance provided under the program shall not be used to pay any person for influencing or attempting to influence an officer or employee of any Federal, State, or local agency, a Member of Congress, an employee of a Member of Congress, a State or local legislative body, or an employee of a State or local legislative body.

(d)

Information dissemination

The information disseminated under subsection (b)(2)(A) shall include—

(1)

information relating to the topics described in subsection (c)(1), including case studies of successful examples;

(2)

computational tools or software for assessment, design, and operation and maintenance of energy storage systems;

(3)

public databases that track existing and planned energy storage systems;

(4)

best practices for the utility and grid operator business processes associated with the topics described in subsection (c)(1); and

(5)

relevant State policies or regulations associated with the topics described in subsection (c)(1).

(e)

Applications

(1)

In general

The Secretary shall seek applications for the program—

(A)

on a competitive, merit-reviewed basis; and

(B)

on a periodic basis, but not less frequently than once every 12 months.

(2)

Application

An eligible entity desiring to apply for the program shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require, including whether the eligible entity is applying for—

(A)

direct technical or planning assistance under subsection (b)(2)(A); or

(B)

a grant under subsection (b)(2)(B).

(3)

Priorities

In selecting eligible entities for technical and planning assistance under the program, the Secretary shall give priority to eligible entities described in subparagraphs (A) and (B) of subsection (a)(1).

(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, 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, an assessment of the success of, and education provided by, the measures carried out by eligible entities under the program.

(g)

Cost-sharing

Activities under this section shall be subject to the cost-sharing requirements under section 988 of the Energy Policy Act of 2005 (42 U.S.C. 16352).

Energy storage materials recycling prize competition

Section 1008 of the Energy Policy Act of 2005 (42 U.S.C. 16396) is amended by adding at the end the following:

(g)

Energy Storage Materials Recycling Prize Competition

(1)

Definition of critical energy storage materials

In this subsection, the term critical energy storage materials includes—

(A)

lithium;

(B)

cobalt;

(C)

nickel;

(D)

graphite; and

(E)

any other material determined by the Secretary to be critical to the continued growing supply of energy storage resources.

(2)

Prize authority

(A)

In general

As part of the program established under subsection (a), the Secretary shall establish an award program, to be known as the Energy Storage Materials Recycling Prize Competition (referred to in this subsection as the program), under which the Secretary shall carry out prize competitions and make awards to advance the recycling of critical energy storage materials.

(B)

Frequency

To the maximum extent practicable, the Secretary shall carry out a competition under the program not less frequently than once every calendar year.

(3)

Eligibility

(A)

In general

To be eligible to win a prize under the program, an individual or entity—

(i)

shall have complied with the requirements of the competition as described in the announcement for that competition published in the Federal Register by the Secretary under paragraph (6);

(ii)

in the case of a private entity, shall be incorporated in the United States and maintain a primary place of business in the United States;

(iii)

in the case of an individual, whether participating singly or in a group, shall be a citizen of, or an alien lawfully admitted for permanent residence in, the United States.

(B)

Exclusions

The following entities and individuals shall not be eligible to win a prize under the program:

(i)

A Federal entity.

(ii)

A Federal employee (including an employee of a National Laboratory) acting within the scope of employment.

(4)

Awards

In carrying out the program, the Secretary shall award cash prizes, in amounts to be determined by the Secretary, to each individual or entity selected through a competitive process to develop advanced methods or technologies to recycle critical energy storage materials from energy storage systems.

(5)

Criteria

(A)

In general

The Secretary shall establish objective, merit-based criteria for awarding the prizes in each competition carried out under the program.

(B)

Requirements

The criteria established under subparagraph (A) shall prioritize advancements in methods or technologies that present the greatest potential for large-scale commercial deployment.

(C)

Consultation

In establishing criteria under subparagraph (A), the Secretary shall consult with appropriate members of private industry involved in the commercial deployment of energy storage systems.

(6)

Advertising and solicitation of competitors

(A)

In general

The Secretary shall announce each prize competition under the program by publishing a notice in the Federal Register.

(B)

Requirements

Each notice published under subparagraph (A) shall describe the essential elements of the competition, such as—

(i)

the subject of the competition;

(ii)

the duration of the competition;

(iii)

the eligibility requirements for participation in the competition;

(iv)

the process for participants to register for the competition;

(v)

the amount of the prize; and

(vi)

the criteria for awarding the prize.

(7)

Judges

(A)

In general

For each prize competition under the program, the Secretary shall assemble a panel of qualified judges to select the winner or winners of the competition on the basis of the criteria established under paragraph (5).

(B)

Selection

The judges for each competition shall include appropriate members of private industry involved in the commercial deployment of energy storage systems.

(C)

Conflicts

An individual may not serve as a judge in a prize competition under the program if the individual, the spouse of the individual, any child of the individual, or any other member of the household of the individual—

(i)

has a personal or financial interest in, or is an employee, officer, director, or agent of, any entity that is a registered participant in the prize competition for which the individual will serve as a judge; or

(ii)

has a familial or financial relationship with a registered participant in the prize competition for which the individual will serve as a judge.

(8)

Report to Congress

Not later than 60 days after the date on which the first prize is awarded under the program, and annually thereafter, the Secretary shall submit to Congress a report that—

(A)

identifies each award recipient;

(B)

describes the advanced methods or technologies developed by each award recipient; and

(C)

specifies actions being taken by the Department toward commercial application of all methods or technologies with respect to which a prize has been awarded under the program.

(9)

Anti-Deficiency Act

The Secretary shall carry out the program in accordance with section 1341 of title 31, United States Code (commonly referred to as the Anti-Deficiency Act).

(10)

Authorization of appropriations

There is authorized to be appropriated to carry out this subsection $10,000,000 for each of fiscal years 2020 through 2024, to remain available until expended.

Regulatory actions to encourage energy storage deployment

(a)

Definitions

In this section:

(1)

Commission

The term Commission means the Federal Energy Regulatory Commission.

(2)

Electric storage resource

The term electric storage resource means a resource capable of receiving electric energy from the grid and storing that electric energy for later injection back into the grid.

(b)

Regulatory action

(1)

In general

Not later than 1 year after the date of enactment of this Act, the Commission shall issue a regulation to identify the eligibility of, and process for, electric storage resources—

(A)

to receive cost recovery through Commission-regulated rates for the transmission of electric energy in interstate commerce; and

(B)

that receive cost recovery under subparagraph (A) to receive compensation for other services (such as the sale of energy, capacity, or ancillary services) without regard to whether those services are provided concurrently with the transmission service described in subparagraph (A).

(2)

Prohibition of duplicate recovery

Any regulation issued under paragraph (1) shall preclude the receipt of unjust and unreasonable double recovery for electric storage resources providing services described in subparagraphs (A) and (B) of that paragraph.

(c)

Electric storage resources technical conference

(1)

In general

Not later than 180 days after the date of enactment of this Act, the Commission shall convene a technical conference on the potential for electric storage resources to improve the operation of electric systems.

(2)

Requirements

The technical conference under paragraph (1) shall—

(A)

identify opportunities for further consideration of electric storage resources in regional and interregional transmission planning processes within the jurisdiction of the Commission;

(B)

identify all energy, capacity, and ancillary service products, market designs, or rules that—

(i)

are within the jurisdiction of the Commission; and

(ii)

enable and compensate for the use of electric storage resources that improve the operation of electric systems;

(C)

examine additional products, market designs, or rules that would enable and compensate for the use of electric storage resources for improving the operation of electric systems; and

(D)

examine the functional value of electric storage resources at the transmission and distribution system interface for purposes of providing electric system reliability.

Coordination

To the maximum extent practicable, the Secretary shall coordinate the activities under this Act (including activities conducted pursuant to the amendments made by this Act) among the offices and employees of the Department, other Federal agencies, and other relevant entities—

(1)

to ensure appropriate collaboration; and

(2)

to avoid unnecessary duplication of those activities.

10.

Authorization of appropriations

There are authorized to be appropriated—

(1)

to carry out section 3, $100,000,000 for each of fiscal years 2020 through 2024, to remain available until expended;

(2)

to carry out section 4, $100,000,000 for each of fiscal years 2020 through 2024, to remain available until expended;

(3)

to carry out section 5, $50,000,000 for each of fiscal years 2020 through 2024, to remain available until expended; and

(4)

to carry out section 6, $20,000,000 for each of fiscal years 2020 through 2024, to remain available until expended.

Amend the title so as to read: A bill to support research, development, and demonstration programs relating to energy storage systems, and for other purposes..

October 22, 2019

Reported with an amendment and an amendment to the title