Sec. 5. Energy storage system demonstration and deployment program
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The Secretary shall establish a competitive grant program for pilot energy storage systems, as identified by the Secretary, that use either— a single system; or aggregations of multiple systems. Entities eligible to receive a grant 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. 5304 )); 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 grant under this section, the Secretary shall, to the maximum extent practicable— ensure regional diversity among eligible entities that receive the grants, including participation by rural States and small States; ensure that specific projects selected for grants— expand on the existing technology demonstration and deployment programs of the Department of Energy; and are designed to achieve one or more of the objectives described in paragraph (4); and prioritize projects from eligible entities that do not have an energy storage system. Each demonstration and deployment project selected for a grant under paragraph
(1)shall include one or more of the following objectives: To improve the security of critical infrastructure and emergency response systems. To improve the reliability of the transmission and distribution system, particularly in rural areas, including high energy cost rural areas. 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. To supply energy at peak periods of demand on the electric grid or during periods of significant variation of electric grid supply. To reduce peak loads of homes and businesses, particularly to defer or avoid investments in new electric grid capacity. To advance power conversion systems to make the systems smarter, more efficient, able to communicate with other inverters, and able to control voltage. To provide ancillary services for grid stability and management. To meet electricity demand during nonpeak generation periods to make better use of existing grid assets. To integrate a renewable energy resource production source at the source or away from the source. To increase the feasibility of microgrids or islanding. 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 in households, businesses, and communities. 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. The maximum amount of a grant awarded under paragraph
(1)shall be $5,000,000. 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). 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. 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). 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. The Secretary shall submit to Congress and make publicly available— 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 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. There is authorized to be appropriated to carry out this section $150,000,000 for the period of fiscal years 2018 through 2022, to remain available until expended.
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