Sec. 4. Energy storage system demonstration and deployment loan program
922 words·~4 min read·
/bill/114/s/1256/is/section-4A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Subject to the provisions of this subsection and subsections
(b)and (c), the Secretary shall establish a program to provide to eligible entities— loans for the demonstration and deployment of energy storage systems in a specific project; and loans to provide funding for programs to finance the demonstration and deployment of multiple energy storage systems through a revolving loan fund, credit enhancement program, or other financial assistance program. Entities eligible to receive a loan under paragraph
(1)include— a State, territory, or possession of the United States; a State energy office; a tribal organization (as defined in section 4 of the Indian Self-Determination and Education Assistance Act ( 25 U.S.C. 450b )); an institution of higher education (as defined in section 101 of the Higher Education Act of 1965 ( 20 U.S.C. 1001 )); and an electric utility, including— a rural electric cooperative; a municipally owned electric utility; and an investor-owned utility. In selecting eligible entities to receive a loan under this section, the Secretary shall, to the maximum extent practicable, ensure— regional diversity among eligible entities that receive the loans, including participation by rural States and small States; and that specific projects selected for loans— expand on the existing technology demonstration and deployment programs of the Department of Energy; and are designed to achieve 1 or more of the objectives described in paragraph (4). Each demonstration and deployment project selected for a loan under paragraph
(1)shall include 1 or more of the following objectives: With respect to energy storage systems, the improvement of— the feasibility of microgrids or islanding; or the transmission and distribution capability to improve reliability in rural areas, including high energy cost rural areas. Use of energy storage systems to improve the security of emergency response infrastructure. Integration of energy storage systems with a renewable energy resource production source, at the source or away from the source. Use of energy storage systems to provide ancillary services for grid management. Advancement of power conversion systems to make the systems smarter, more efficient, able to communicate with other inverters, and able to control voltage. Use of energy storage systems to optimize transmission and distribution operation and power quality to address overloaded lines and maintenance of transformers and substations. Use of energy storage systems for peak load management of homes, businesses, and the grid, particularly to offset investments in new grid capacity. Use of energy storage system devices to meet electricity demand during nonpeak generation periods to make better use of existing grid assets. Any eligible 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. 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 determines, after consultation with the Secretary of the Treasury, in accordance with this section. No loan shall be made unless an appropriation for the full amount of the loan has been specifically provided for that purpose. No loan shall be made unless the Secretary determines that there is reasonable prospect of repayment of the principal and interest by the borrower of the loan. 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. The term of the loan shall require full repayment over a period not to exceed the lesser of— 20 years; or 90 percent of the projected useful life of the physical asset to be financed by the loan (as determined by the Secretary). Payments of principal and interest on the loan shall— be retained by the Secretary to support energy research and development activities; and remain available until expended, subject to such conditions as are contained in annual appropriations Acts. The Secretary may not assess any penalty for early repayment of a loan provided under this section. In order to receive a loan under this section, an eligible entity shall agree to return to the general fund of the Treasury any portion of the loan amount that is unused by the eligible entity within a reasonable period of time after the date of the disbursement of the loan, as determined by the Secretary. Each laborer and mechanic employed by a contractor or subcontractor in performance of construction work financed, 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 subchapter IV of chapter 31 of title 40, United States Code. Not later than 180 days after the date of enactment of this Act, the Secretary shall adopt rules and procedures for carrying out the loan program under subsection (a). Not later than 1 year after the date on which the rules and procedures under paragraph
(1)are established, the Secretary shall disburse the initial loans provided under this section. 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 describing the performance of each program and activity carried out using the loan, including itemized loan performance data. There are authorized to be appropriated to carry out this section such sums as are necessary.
Connectionstraces to 2
Traces to 2 documents
Citation graph
cites case law
Cites 2Cited by 0 across 0 sources