,i  #aad? ,,congress  #b;d ,session  ,h4
 ,r4 #ecej  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,may #bf1 #bjaf ,mr4  
,honda 7= himself1 ,mr4 ,re$1 ,mr4      
,gibson1 & ,mr4 ,takano7 introduc$ !    
foll[+ bill2 :i* 0 ref]r$ to !          
,committee on ,ways & ,means  ,a ,,bill 
,to am5d ! ,int]nal ,rev5ue ,code (     
#aihf to provide = an en]gy inve/m5t    
cr$it = en]gy /orage prop]ty connect$ to
 ! grid1 & = o!r purposes4  #a4 ,%ort   
title ,?is ,act may be cit$ z ! ,en]gy  
,/orage = ,grid ,resili5ce &            
,mod]nization ,act ( #bjaf or ! ,en]gy  
,/orage ,act ( #bjaf4  #b4 ,en]gy       
inve/m5t cr$it = en]gy /orage prop]ty   
connect$ to ! grid  7a7 #cj-,p]c5t cr$it
 all[$ ,clause 7i7 ( section            
#dh7;a77#b77;,a7 ( ! ,int]nal ,rev5ue   
,code ( #aihf is am5d$ by /rik+ & at !  
end ( subclause 7,,iii7 & by add+ at !  
end ! foll[+ new subclause3  7,v7       
qualifi$ en]gy /orage prop]ty1 &  4  7b7
 ,qualifi$ en]gy /orage prop]ty         
,subsection 7c7 ( section #dh ( su*     

,code is am5d$ by add+ at ! end ! foll[+
 new p>agraph3  7#e7 ,qualifi$ en]gy    
/orage prop]ty  7,a7 ,9 g5]al ,! t]m    
qualifi$ en]gy /orage prop]ty means     
prop]ty describ$ 9 subp>agraph 7,b7 t is
 capable ( absorb+ en]gy1 /or+ su* en]gy
 = a p]iod ( "t1 & !reaft] dispat*+ su* 
en]gy = ! purposes (--  7i7 r$uc+ dem& =
 peak electrical g5]ation1  7ii7 def]r+ 
or sub/itut+ = an inve/m5t 9 g5]ation1  
transmission1 or di/ribution assets1    
7iii7 provid+ back up en]gy = v>iable   
g5]ation s\rces1  7iv7 improv+ !        
reliable op]ation ( ! electrical        
transmission or di/ribution grid1  7v7  
enabl+ managem5t ( end-us] en]gy        
consumption1 or  7vi7 enabl+ !          
disconnection ( a load f ! ma9 grid4    
7,b7 ,/orage & use ( en]gy ,prop]ty is  
describ$ 9 ?is subp>agraph if ! prop]ty1
 :e!r c5traliz$ or di/ribut$-- 7i7 uses 
me*anical1 *emical1 !rmal1 or           
electro/atic processes to /ore en]gy t 0
 g5]at$ at "o "t = use at a lat] "t1    
7ii7 /ores !rmal en]gy = direct use =   

heat+ or cool+ at a lat] "t 9 a mann] t 
avoids ! ne$ to use electricity at t    
lat] "t1  7iii7 uses me*anical1 *emical1
 !rmal1 or electro/atic processes to    
/ore electricity g5]at$ f r5ewable      
res\rces = use at a lat] "t1 or  7iv7   
uses me*anical1 *emical1 !rmal1 or      
electro/atic processes to /ore1 =       
deliv]y at a lat] "t1 en]gy g5]at$ f    
me*anical processes t w\ld o!rwise be   
wa/$4  7,c7 ,special rule = onsite en]gy
 /orage  7i7 ,9 g5]al ,prop]ty :i* p]=ms
 its purpose prim>ily = onsite          
consumption %all n be treat$ z qualifi$ 
en]gy /orage prop]ty unless su* prop]ty 
9 aggregate--  7,i7 has ! ability to    
/ore ! en]gy equival5t ( at lea/ #e     
kil[att h\rs ( en]gy1 &  7,,ii7 has !   
ability to h an output ( ! en]gy        
equival5t ( #a kil[att ( electricity = a
 p]iod ( #e h\rs4  7ii7 ,limitation ,9 !
 case ( qualifi$ en]gy /orage prop]ty   
describ$ 9 clause 7i7 t is plac$ 9      
s]vice dur+ ! taxable ye>1 ! cr$it      
o!rwise det]m9$ "u subsection 7a7 = su* 

ye> ) respect to su* prop]ty %all n     
exce$ #a1jjj1jjj4  7,d7 ,allocation (   
cr$its  7i7 ,9 g5]al ,9 ! case (        
qualifi$ en]gy /orage prop]ty plac$ 9   
s]vice dur+ ! taxable ye>1 ! cr$it      
o!rwise det]m9$ "u subsection 7a7 = su* 
ye> ) respect to su* prop]ty %all n     
exce$ ! am\nt allocat$ to su* project "u
 clause 7ii74  7ii7 ,national limitation
 & allocation ,!re is a qualifi$ en]gy  
/orage prop]ty inve/m5t cr$it limitation
 ( #b1jjj1jjj1jjj4 ,su* limitation %all 
be allocat$ by ! ,secret>y among        
qualifi$ en]gy /orage prop]ty projects  
select$ by ! ,secret>y1 9 consultation )
 ! ,secret>y ( ,en]gy1 = taxable ye>s   
beg9n+ aft] ! date ( ! enactm5t ( !     
,en]gy ,/orage = ,grid ,resili5ce &     
,mod]nization ,act ( #bjaf1 except t n m
 ?an #dj1jjj1jjj %all be allocat$ to any
 project = all su* taxable ye>s4  7iii7 
,selection crit]ia ,9 mak+ allocations  
"u clause 7ii71 ! ,secret>y1 9          
consultation ) ! ,secret>y ( ,en]gy1    
%all select only ^? projects :i* h a    

reasonable expectation ( comm]cial      
viability1 select projects repres5t+ a  
v>iety ( te*nologies1 applications1 &   
project sizes1 & give priority to       
projects--  7,i7 :i* provide ! greate/  
increase 9 reliability or ! greate/     
economic b5efit1  7,,ii7 :i* enable !   
greate/ improvem5t 9 integration (      
r5ewable res\rces into ! grid1  7,,iii7 
:i* enable ! greate/ increase 9         
effici5cy 9 op]ation ( ! grid1 or       
7,,iv7 ! own] ( :i* has n receiv$ an    
allocation "u ?is p>agraph = en]gy      
/orage prop]ty = a diff]5t project4     
7iv7 ,deadl9es  7,i7 ,9 g5]al ,if a     
project :i* receives an allocation "u   
clause 7ii7 has n comm5c$ con/ruction )9
 #b ye>s aft] ! date ( su* allocation1  
su* allocation %all be invalid4  7,,ii7 
,special rule = hydroelectric pump$     
/orage ,not)/&+ subclause 7,i71 9 ! case
 ( a hydroelectric pump$ /orage project1
 if su* project has n receiv$ su* p]mits
 or lic5ses z are det]m9$ necess>y by ! 
,secret>y1 9 consultation ) ! ,secret>y 

( ,en]gy1 )9 #c ye>s aft] ! date ( su*  
allocation1 begun con/ruction )9 #e ye>s
 aft] ! date ( su* allocation1 & be5    
plac$ 9 s]vice )9 #h ye>s aft] ! date ( 
su* allocation1 su* allocation %all be  
invalid4  7,,iii7 ,special rule =       
compress$ air en]gy /orage ,not)/&+     
subclause 7,i71 9 ! case ( a compress$  
air en]gy /orage project1 if su* project
 has n begun con/ruction )9 #c ye>s aft]
 ! date ( ! allocation & be5 plac$ 9    
s]vice )9 #e ye>s aft] ! date ( su*     
allocation1 su* allocation %all be      
invalid4  7,,iv7 ,exceptions ,!         
,secret>y may ext5d ! #b-ye> p]iod 9    
subclause 7,i7 or ! p]iods describ$ 9   
subclauses 7,,ii7 & 7,,iii7 on a        
project-by-project basis if ! ,secret>y1
 9 consultation ) ! ,secret>y ( ,en]gy1 
det]m9es t !re has be5 a good fai? ef=t 
to beg9 con/ruction or to place !       
project 9 s]vice1 :i*ev] is applicable1 
& t any delay is caus$ by factors n 9 ! 
taxpay]'s control4  7,e7 ,review &      
r$i/ribution  7i7 ,review ,n lat] ?an #d

 ye>s aft] ! date ( ! enactm5t ( !      
,en]gy ,/orage = ,grid ,resili5ce &     
,mod]nization ,act ( #bjaf1 ! ,secret>y 
%all review ! cr$its allocat$ "u        
subp>agraph 7,d7 z ( ! date ( su*       
review4  7ii7 ,r$i/ribution ,^u ! review
 describ$ 9 clause 7i71 ! ,secret>y may 
reallocate cr$its allocat$ "u           
subp>agraph 7,d7 if ! ,secret>y det]m9es
 t--  7,i7 !re is an insuffici5t        
quantity ( qualify+ applications =      
c]tification p5d+ at ! "t ( ! review1 or
  7,,ii7 any allocation made "u         
subp>agraph 7,d77ii7 has be5 revok$     
pursuant to subp>agraph 7,d77iv7 because
 ! project subject to su* allocation has
 be5 delay$4  7,f7 ,disclosure (        
allocations ,! ,secret>y %all1 ^u mak+  
an allocation "u subp>agraph 7,d77ii71  
publicly disclose ! id5tity ( !         
applicant1 ! location ( ! project1 !    
en]gy /orage project size & output1 & ! 
am\nt ( ! cr$it ) respect to su*        
applicant4  7,g7 ,coord9ation  7i7      
,d5ial ( d\ble b5efit ,! t]m qualifi$   

en]gy /orage prop]ty does n include any 
prop]ty = :i* a cr$it is all[able "u any
 provision ( ?is section = ! taxable ye>
 o!r ?an by reason ( ?is p>agraph4  7ii7
 ,special rule = section #de ,! t]m     
qualifi$ en]gy /orage prop]ty %all n    
include any prop]ty ) respect to :i* a  
cr$it is all[able "u section #de = !    
taxable ye> or any prior taxable ye>4   
7,h7 ,t]m9ation ,no cr$it %all be       
allocat$ "u subp>agraph 7,d7 = any p]iod
 end+ aft] ,decemb] #ca1 #bjbf4  4  7c7 
,effective date ,! am5dm5ts made by ?is 
section %all apply to p]iods aft] ! date
 ( ! enactm5t ( ?is ,act1 "u rules      
simil> to ! rules ( section #dh7m7 ( !  
,int]nal ,rev5ue ,code ( #aihf 7z 9     
effect on ! day be=e ! date ( ! enactm5t
 ( ! ,rev5ue ,reconciliation ,act (     
#aiij74  #c4 ,en]gy /orage prop]ty      
connect$ to ! grid eligible = new clean 
r5ewable en]gy bonds  7a7 ,9 g5]al      
,p>agraph 7#a7 ( section #ed;,c7d7 ( !  
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
to read z foll[s3  7#a7 ,qualifi$       

r5ewable en]gy facility ,! t]m qualifi$ 
r5ewable en]gy facility means a facility
 :i* is--  7,a7  7i7 a qualifi$ facility
 7z det]m9$ "u section #de7;d7 )\t reg>d
 to p>agraphs 7#h7 & 7#aj7 !re( & to any
 plac$ 9 s]vice date71 or  7ii7 a       
qualifi$ en]gy /orage prop]ty 7z def9$ 9
 section #dh7;c77#e771 &  7,b7 own$ by a
 public p[] provid]1 a gov]nm5tal body1 
or a coop]ative electric company4  4    
7b7 ,effective date ,! am5dm5t made by  
?is section %all apply to obligations   
issu$ aft] ! date ( ! enactm5t ( ?is    
,act4  #d4 ,cr$it = resid5tial en]gy    
/orage equipm5t  7a7 ,cr$it all[$       
,subsection 7a7 ( section #be;,d ( !    
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by /rik+ & at ! end ( p>agraph 7#d71 by 
/rik+ ! p]iod at ! end ( p>agraph 7#e7 &
 ins]t+ 1 &1 & by add+ at ! end ! foll[+
 new p>agraph3  7#f7 #cj p]c5t ( !      
qualifi$ resid5tial en]gy /orage        
equipm5t exp5ditures made by ! taxpay]  
dur+ su* taxable ye>4  4  7b7 ,qualifi$ 
resid5tial en]gy /orage equipm5t        

exp5ditures ,section #be;,d7d7 ( su*    
,code is am5d$ by add+ at ! end ! foll[+
 new p>agraph3  7#f7 ,qualifi$          
resid5tial en]gy /orage equipm5t        
exp5ditures ,= purposes ( ?is section1 !
 t]m qualifi$ resid5tial en]gy /orage   
equipm5t exp5diture means an exp5diture 
= prop]ty--  7,a7 :i* is in/all$ 9 or on
 a dwell+ unit locat$ 9 ! ,unit$ ,/ates 
& own$ & us$ by ! taxpay] z ! taxpay]'s 
pr9cipal resid5ce 7)9 ! mean+ ( section 
#aba71 or on prop]ty own$ by ! taxpay]  
on :i* su* a dwell+ unit is locat$1     
7,b7 :i*-- 7i7 provides supplem5tal     
en]gy to r$uce peak en]gy requirem5ts1  
or  7ii7 is design$ & us$ prim>ily to   
receive & /ore1 firm1 or %ape v>iable   
r5ewable or (f-peak en]gy & to deliv]   
su* en]gy prim>ily = onsite consumption1
 &  7,c7 :i*-- 7i7 has ! ability to /ore
 ! en]gy equival5t ( at lea/ #e kil[att 
h\rs ( en]gy1 &  7ii7 has ! ability to h
 an output ( ! en]gy equival5t ( #a     
kil[att ( electricity = a p]iod ( #d    
h\rs4  4  7c7 ,t]m9ation ,section       

#be;,d7g7 ( su* ,code is am5d$ by ins]t+
 7,decemb] #ca1 #bjbf1 9 ! case (       
prop]ty describ$ 9 subsection 7d77#f77  
aft] ,decemb] #ca1 #bjaf4  7d7          
,effective date ,! am5dm5ts made by ?is 
section %all apply to prop]ty plac$ 9   
s]vice aft] ! date ( ! enactm5t ( ?is   
,act4