,,ii #aacth ,,congress #ast ,session ,s4 #ajcj ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,may #bc1 #bjac ,mr4 ,wyden 7for himself1 ,ms4 ,collins1 ,mr4 ,merkley1 and ,mr4 ,king7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to provide for an energy investment credit for energy storage property connected to the grid1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,storage ,technology for ,renewable and ,green ,energy ,act of #bjac or the ,,storage #bjac ,act4 #b4 ,energy investment credit for energy storage property connected to the grid 7a7 ,up to #bj percent credit allowed ,subparagraph 7,a7 of section #dh7;a77#b7 of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking and at the end of subclause 7,,iv7 of clause 7i71 7#b7 by striking clause 7i7 in clause 7ii7 and inserting clause 7i7 or 7ii71 7#c7 by redesignating clause 7ii7 as clause 7iii71 and 7#d7 by inserting after clause 7i7 the following new clause3 7ii7 as provided in subsection 7c77#e77;,d71 up to #bj percent in the case of qualified energy storage property1 and 4 7b7 ,qualified energy storage property ,subsection 7c7 of section #dh of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new paragraph3 7#e7 ,qualified energy storage property 7,a7 ,in general ,the term qualified energy storage property means property-- 7i7 which is directly connected to the electrical grid1 and 7ii7 which is designed to receive electrical energy1 to store such energy1 and-- 7,i7 to convert such energy to electricity and deliver such electricity for sale1 or 7,,ii7 to use such energy to provide improved reliability or economic benefits to the grid4 ,such term may include hydroelectric pumped storage and compressed air energy storage1 regenerative fuel cells1 batteries1 superconducting magnetic energy storage1 flywheels1 thermal energy storage systems1 and hydrogen storage1 or combination thereof1 or any other technologies as the ,secretary1 in consultation with the ,secretary of ,energy1 shall determine4 7,b7 ,minimum capacity ,the term qualified energy storage property shall not include any property unless such property in aggregate has the ability to sustain a power rating of at least #a megawatt for a minimum of #a hour4 7,c7 ,electrical grid ,the term electrical grid means the system of generators1 transmission lines1 and distribution facilities which-- 7i7 are under the jurisdiction of the ,federal ,energy ,regulatory ,commission or ,state public utility commissions1 or 7ii7 are owned by-- 7,i7 the ,federal government1 7,,ii7 a ,state or any political subdivision of a ,state1 7,,iii7 an electric cooperative that is eligible for financing under the ,rural ,electrification ,act of #aicf 7#g ,u4,s4,c4 #ija et seq471 or 7,,iv7 any agency1 authority1 or instrumentality of any one or more of the entities described in subclause 7,i7 or 7,,ii71 or any corporation which is wholly owned1 directly or indirectly1 by any one or more of such entities4 7,d7 ,allocation of credits 7i7 ,in general ,in the case of qualified energy storage property placed in service during the taxable year1 the credit otherwise determined under subsection 7a7 for such year with respect to such property shall not exceed the amount allocated to such project under clause 7ii74 7ii7 ,national limitation and allocation ,there is a qualified energy storage property investment credit limitation of #a1ejj1jjj1jjj4 ,such limitation shall be allocated by the ,secretary among qualified energy storage property projects selected by the ,secretary1 in consultation with the ,secretary of ,energy1 for taxable years beginning after the date of the enactment of the ,,storage #bjac ,act1 except that not more than #dj1jjj1jjj shall be allocated to any project for all such taxable years4 7iii7 ,selection criteria ,in making allocations under clause 7ii71 the ,secretary1 in consultation with the ,secretary of ,energy1 shall select only those projects which have a reasonable expectation of commercial viability1 select projects representing a variety of technologies1 applications1 and project sizes1 and give priority to projects which-- 7,i7 provide the greatest increase in reliability or the greatest economic benefit1 7,,ii7 enable the greatest improvement in integration of renewable resources into the grid1 or 7,,iii7 enable the greatest increase in efficiency in operation of the grid4 7iv7 ,deadlines 7,i7 ,in general ,if a project which receives an allocation under clause 7ii7 is not placed in service within #b years after the date of such allocation1 such allocation shall be invalid4 7,,ii7 ,special rule for hydroelectric pumped storage ,notwithstanding subclause 7,i71 in the case of a hydroelectric pumped storage project1 if such project has not received such permits or licenses as are determined necessary by the ,secretary1 in consultation with the ,secretary of ,energy1 within #c years after the date of such allocation1 begun construction within #e years after the date of such allocation1 and been placed in service within #h years after the date of such allocation1 such allocation shall be invalid4 7,,iii7 ,special rule for compressed air energy storage ,notwithstanding subclause 7,i71 in the case of a compressed air energy storage project1 if such project has not begun construction within #c years after the date of the allocation and been placed in service within #e years after the date of such allocation1 such allocation shall be invalid4 7,,iv7 ,exceptions ,the ,secretary may extend the #b-year period in subclause 7,i7 or the periods described in subclauses 7,,ii7 and 7,,iii7 on a project-by-project basis if the ,secretary1 in consultation with the ,secretary of ,energy1 determines that there has been a good faith effort to begin construction or to place the project in service1 whichever is applicable1 and that any delay is caused by factors not in the taxpayer's control4 7,e7 ,review and redistribution 7i7 ,review ,not later than #d years after the date of the enactment of the ,,storage #bjac ,act1 the ,secretary shall review the credits allocated under subparagraph 7,d7 as of the date of such review4 7ii7 ,redistribution ,upon the review described in clause 7i71 the ,secretary may reallocate credits allocated under subparagraph 7,d7 if the ,secretary determines that-- 7,i7 there is an insufficient quantity of qualifying applications for certification pending at the time of the review1 or 7,,ii7 any allocation made under subparagraph 7,d77ii7 has been revoked pursuant to subparagraph 7,d77iv7 because the project subject to such allocation has been delayed4 7,f7 ,disclosure of allocations ,the ,secretary shall1 upon making an allocation under subparagraph 7,d77ii71 publicly disclose the identity of the applicant1 the location of the project1 and the amount of the credit with respect to such applicant4 7,g7 ,termination ,no credit shall be allocated under subparagraph 7,d7 for any period ending after ,december #ca1 #bjbj4 4 7c7 ,effective date ,the amendments made by this section shall apply to periods after the date of the enactment of this ,act1 under rules similar to the rules of section #dh7m7 of the ,internal ,revenue ,code of #aihf 7as in effect on the day before the date of the enactment of the ,revenue ,reconciliation ,act of #aiij74 #c4 ,energy storage property connected to the grid eligible for new clean renewable energy bonds 7a7 ,in general ,paragraph 7#a7 of section #ed;,c7d7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7#a7 ,qualified renewable energy facility ,the term qualified renewable energy facility means a facility which is-- 7,a7 7i7 a qualified facility 7as determined under section #de7;d7 without regard to paragraphs 7#h7 and 7#aj7 thereof and to any placed in service date71 or 7ii7 a qualified energy storage property 7as defined in section #dh7;c77#e771 and 7,b7 owned by a public power provider1 a governmental body1 or a cooperative electric company4 4 7b7 ,effective date ,the amendment made by this section shall apply to obligations issued after the date of the enactment of this ,act4 #d4 ,energy investment credit for onsite energy storage 7a7 ,credit allowed ,clause 7i7 of section #dh7;a77#b77;,a7 of the ,internal ,revenue ,code of #aihf1 as amended by this ,act1 is amended-- 7#a7 by striking and at the end of subclause 7,,iii71 7#b7 by inserting and at the end of subclause 7,,iv71 and 7#c7 by adding at the end the following new subclause3 7,v7 qualified onsite energy storage property1 4 7b7 ,qualified onsite energy storage property ,subsection 7c7 of section #dh of the ,internal ,revenue ,code of #aihf1 as amended by this ,act1 is amended by adding at the end the following new paragraph3 7#f7 ,qualified onsite energy storage property 7,a7 ,in general ,the term qualified onsite energy storage property means property which-- 7i7 provides supplemental energy to reduce peak energy requirements primarily on the same site where the property is located1 or 7ii7 is designed and used primarily to receive and store1 firm1 or shape variable renewable or off-peak energy and to deliver such energy primarily for onsite consumption4 ,such term may include thermal energy storage systems and property used to charge plug-in and hybrid electric vehicles if such property or vehicles are equipped with smart grid equipment or services which control time-of-day charging and discharging of such vehicles4 ,such term shall not include any property for which any other credit is allowed under this chapter4 7,b7 ,minimum capacity ,the term qualified onsite energy storage property shall not include any property unless such property in aggregate-- 7i7 has the ability to store the energy equivalent of at least #e kilowatt hours of energy1 and 7ii7 has the ability to have an output of the energy equivalent of #a kilowatt of electricity for a period of #e hours4 7,c7 ,limitation ,in the case of qualified onsite energy storage property placed in service during the taxable year1 the credit otherwise determined under subsection 7a7 for such year with respect to such property shall not exceed #a1jjj1jjj4 4 7c7 ,effective date ,the amendments made by this section shall apply to periods after the date of the enactment of this ,act1 under rules similar to the rules of section #dh7m7 of the ,internal ,revenue ,code of #aihf 7as in effect on the day before the date of the enactment of the ,revenue ,reconciliation ,act of #aiij74 #e4 ,credit for residential energy storage equipment 7a7 ,credit allowed ,subsection 7a7 of section #be;,d of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking and at the end of paragraph 7#d71 7#b7 by striking the period at the end of paragraph 7#e7 and inserting 1 and1 and 7#c7 by adding at the end the following new paragraph3 7#f7 #cj percent of the qualified residential energy storage equipment expenditures made by the taxpayer during such taxable year4 4 7b7 ,qualified residential energy storage equipment expenditures ,section #be;,d7d7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new paragraph3 7#f7 ,qualified residential energy storage equipment expenditures ,for purposes of this section1 the term qualified residential energy storage equipment expenditure means an expenditure for property-- 7,a7 which is installed in or on a dwelling unit located in the ,united ,states and owned and used by the taxpayer as the taxpayer's principal residence 7within the meaning of section #aba71 or on property owned by the taxpayer on which such a dwelling unit is located1 7,b7 which-- 7i7 provides supplemental energy to reduce peak energy requirements primarily on the same site where the property is located1 or 7ii7 is designed and used primarily to receive and store1 firm1 or shape variable renewable or off-peak energy and to deliver such energy primarily for onsite consumption1 and 7,c7 which-- 7i7 has the ability to store the energy equivalent of at least #b kilowatt hours of energy1 and 7ii7 has the ability to have an output of the energy equivalent of #ejj watts of electricity for a period of #d hours4 ,such term may include thermal energy storage systems and property used to charge plug-in and hybrid electric vehicles if such property or vehicles are equipped with smart grid equipment or services which control time-of-day charging and discharging of such vehicles4 ,such term shall not include any property for which any other credit is allowed under this chapter4 4 7c7 ,effective date ,the amendments made by this section shall apply to property placed in service after the date of the enactment of this ,act4