To direct the Secretary of Energy to develop and implement a strategy for research, development, demonstration, and commercial application of distributed power hybrid energy systems, and for other purposes.

February 27, 2003

Mr. UDALL of Colorado introduced the following bill; which was referred to the Committee on Science

To direct the Secretary of Energy to develop and implement a strategy for research, development, demonstration, and commercial application of distributed power hybrid energy systems, 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 `Distributed Power Hybrid Energy Act'.

SEC. 2. FINDINGS.

The Congress makes the following findings:

(1) Renewable energy resources have the potential to help diversify our Nation's energy portfolio with few adverse environmental effects. By their very nature, renewable resources are distributed. Our ability to cost effectively take advantage of our renewable, indigenous resources can be greatly advanced through systems that minimize the intermittency of these resources through distributed power hybrid systems.

(2) Distributed power sources configured as distributed power hybrid systems can maximize benefits to the energy consumer. The primary benefits of distributed power hybrid systems are that they can--

(A) shelter consumers from temporary energy price volatility created by supply and demand mismatches;

(B) increase the reliability of energy supply, thereby avoiding significant costs associated with power outages;

(C) provide a cost-effective means to minimize the impact of intermittent resources, thereby expanding the Nation's energy supply reserve;

(D) decrease environmental impacts of energy supply; and

(E) be tailored to address significant local differences in power and economic development needs and resource availability that exist throughout the United States.

(3) Realizing these benefits will require a concerted and integrated effort that focuses on removing market barriers to the adoption of distributed power hybrid systems by--

(A) providing tools that enable States and regions to assess their indigenous renewable energy resources;

(B) developing the technological foundation that enables designing, testing, certifying, and operating distributed power hybrid systems; and

(C) providing the policy framework that reduces such barriers, including making net metering available on a broader scale to enable consumers to reap the full value of these systems, thereby lowering their overall energy bill.

(4) While many of the individual distributed power hybrid systems components are either available or under development in existing private and public sector programs, the capabilities to integrate these components into workable distributed power hybrid systems that maximize benefits to consumers in a safe manner are deficient and not coherently being addressed.

SEC. 3. DEFINITIONS.

For purposes of this Act--

(1) the term `distributed power hybrid system' means a system using 2 or more distributed power sources, operated together with associated supporting equipment, including storage equipment, and software necessary to provide electric power to the grid or on site; and

(2) the term `distributed power source' means an independent electric energy source of usually 10 megawatts or less located close to a residential, commercial, or industrial load center, including--

(A) reciprocating engines;

(B) turbines;

(C) microturbines;

(D) fuel cells;

(E) solar electric systems;

(F) wind energy systems;

(G) biomass power systems;

(H) geothermal power systems; or

(I) electrical components of cogeneration systems.

SEC. 4. STRATEGY.

(a) REQUIREMENT- Not later than 1 year after the date of the enactment of this Act, the Secretary of Energy shall develop and transmit to the Congress a distributed power hybrid systems strategy showing--

(1) opportunities and priorities that might best be met with distributed power hybrid systems configurations;

(2) what barriers exist to the use of distributed power hybrid systems;

(3) what technology gaps need to be closed; and

(4) what system integration tools are needed to plan, design, build, and operate distributed power hybrid systems for maximum benefits.

(b) ELEMENTS- The strategy may provide for development of--

(1) system integration tools for planning, designing, building, and operating economical, safe, and clean distributed power hybrid systems, including databases, computer models, software, and sensors, controls, and other integrating hardware;

(2) tests of distributed power hybrid systems, including field tests with industry and cost-shared demonstrations of distributed power hybrid systems power parks and microgrids, to validate integrated performance and to give consumers, policymakers, and industry the confidence that distributed power hybrid systems work reliably, safely, and cleanly;

(3) special design tools that can characterize the benefits and values of distributed power hybrid systems for consumers and enable virtual prototyping of distributed power hybrid systems to reduce testing needs and the time required to get the systems into the marketplace;

(4) data to characterize grid operations, including interconnection requirements; and

(5) precise resource assessment tools to map local resources for distributed power hybrid systems.

(c) IMPLEMENTATION AND INTEGRATION- The Secretary of Energy shall implement the strategy transmitted under subsection (a), and activities pursuant to the strategy shall be integrated with other activities of the Department's Office of Distributed Energy Resources.

SEC. 5. REPORT TO CONGRESS.

Not later than 1 year after the date of the enactment of this Act, and annually thereafter, the Secretary of Energy shall transmit to the Congress a report on the use of, and experience with, distributed power hybrid systems in the United States, and the research and development issues remaining to ensure the successful application of distributed power hybrid systems.

SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated to the Secretary of Energy for carrying out this Act--

(1) $5,000,000 for fiscal year 2004;

(2) $10,000,000 for fiscal year 2005;

(3) $20,000,000 for fiscal year 2006;

(4) $20,000,000 for fiscal year 2007; and

(5) $5,000,000 for fiscal year 2008.

END