# Summary and Analysis of S. 2657, the American Energy Innovation Act > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/crs%3AR46372 ## Record - **Collection:** Congressional research report - **Document type:** CRS Report - **Published:** May 27, 2020 - **Citation:** R46372 ## Text Summary and Analysis of S. 2657, the American Energy Innovation Act May 27, 2020 Congressional Research Service https://crsreports.congress.gov R46372 SUMMARY Summary and Analysis of S. 2657, the American Energy Innovation Act Issues in the 116th Congress reflect the ongoing debate over the federal role in energy policy, particularly related to research and development (R&D), development of fossil and renewable energy on federal lands, and the role of federal regulation, particularly as it relates to greenhouse gas emissions. R46372 May 27, 2020 Brent D. Yacobucci, Coordinator Section Research Manager Members of the House and Senate have introduced bills on a range of energy topics, and the Chairman and Ranking Member of the Senate Committee on Energy and Natural Resources (ENR) have proposed major legislation integrating many of these topics. On February 27, 2020, ENR leadership introduced S.Amdt. 1407, a substitute amendment for S. 2657, titled the American Energy Innovation Act, which incorporates language from energy bills reported by the Committee. Cloture on the bill was invoked on March 2, 2020, and on March 5 several amendments were adopted. On March 9, 2020, a cloture on S.Amdt. 1407 was denied on a 47-44 vote. Energy issues addressed in the bill include:            Energy efficiency in buildings, schools, and industrial/manufacturing facilities;   Amendments to Department of Energy (DOE) loan programs; and Federal agency energy efficiency; Research and development of renewable and nuclear energy technologies; Research, development, and demonstration of efficient and alternative fuel vehicles; Reauthorization and amendment of the Weatherization Assistance Program; Modernization and security of electricity infrastructure; Energy storage; Carbon capture, utilization, and storage (CCUS); “Clean” (generally meaning low-carbon) energy workforce development; Promotion of small-scale liquefied natural gas (LNG) exports; Deployment of “smart manufacturing” to increase the productivity and energy efficiency of U.S. manufacturing; Programs to provide energy sector employment for veterans, and to use artificial intelligence and supercomputing to improve veterans’ health. The bill remains on the Senate calendar, although since discussion of the bill was suspended several major events have occurred: on March 11 the World Health Organization declared COVID-19 a pandemic leading to limits on personal and other travel, as well as a range of economic activities; during the month of March crude oil prices dropped by more than 50% because of declining demand and a lack of consensus among OPEC and other oil producers to limit production; U.S. gasoline and jet fuel product supplied (a proxy for consumption) dropped dramatically in the subsequent weeks, reaching levels not seen since at least the 1990s; and electricity demand in most parts of the country also declined. Whether these factors have sustained effects for U.S. energy is unclear, but they may influence any future discussion of U.S. energy policy. Congressional Research Service Summary and Analysis of S. 2657, the American Energy Innovation Act Contents Background: Comprehensive Energy Policy ................................................................................... 1 Title I—Innovation .......................................................................................................................... 2 Subtitle A—Efficiency .............................................................................................................. 2 Part I—Energy Savings and Industrial Competitiveness .................................................... 2 Subpart A—Buildings ......................................................................................................... 3 Subpart B—Industrial Efficiency and Competitiveness ..................................................... 6 Subpart C—Federal Agency Energy Efficiency ................................................................. 8 Subpart D—Rebates and Certifications ............................................................................ 13 Subpart E—Miscellaneous................................................................................................ 14 Part II—Weatherization .................................................................................................... 15 Subtitle B—Renewable Energy .............................................................................................. 16 Subtitle C—Energy Storage .................................................................................................... 22 Subtitle D—Carbon Capture, Utilization, and Storage ........................................................... 25 Subtitle E—Nuclear ................................................................................................................ 31 Subtitle F—Industrial Technologies ........................................................................................ 35 Part I—Innovation ............................................................................................................ 35 Part II—Smart Manufacturing .......................................................................................... 38 Subtitle G—Vehicles ............................................................................................................... 40 Subtitle H—Department of Energy ......................................................................................... 41 Title II—Supply Chain Security .................................................................................................... 50 Subtitle A—Mineral Security .................................................................................................. 50 Subtitle B—Cybersecurity and Grid Security and Modernization .......................................... 51 Part I—Cybersecurity and Grid Security .......................................................................... 51 Part II—Grid Modernization............................................................................................. 55 Subtitle C—Workforce Development ..................................................................................... 60 Title III—Code Maintenance......................................................................................................... 65 Tables Table A-1. Appropriations Authorized in S. 2657 (S.Amdt. 1407) by Fiscal Year ........................ 66 Appendixes Appendix A. Authorizations of Appropriations ............................................................................. 66 Appendix B. Abbreviations ............................................................................................................. 1 Contacts Author Information.......................................................................................................................... 3 Congressional Research Service Summary and Analysis of S. 2657, the American Energy Innovation Act Background: Comprehensive Energy Policy Congress has enacted several broad energy policy laws since the 1970s, most recently the Energy Independence and Security Act of 2007 (EISA, P.L. 110-140). These laws have addressed a wide range of topics, including energy efficiency in vehicles, appliances, consumer goods, and buildings; development of energy and mineral resources on federal lands; incentives for the production and/or use of renewable energy; limits on export of energy resources; and research and development of advanced energy technologies. Since the enactment of EISA, the U.S. energy landscape has changed dramatically, with growing U.S. energy production from natural gas, petroleum, and renewable energy, and a significant decline in coal production and use. In the 114th and 115th Congresses, the House and Senate considered broad energy legislation. In the 114th Congress, both the House and Senate passed versions of S. 2012, although the Conference Committee did not reach agreement. In the 115th Congress, a related bill, S. 1460, was introduced in the Senate but was not brought to the floor. These bills would have addressed a variety of energy topics, including energy efficiency in federal buildings, data centers, manufacturing facilities, and schools; water conservation/efficiency; electric grid cybersecurity; liquefied natural gas (LNG); grid energy storage; renewable energy; critical minerals; nuclear research and development (R&D); and energy workforce development. In the 116th Congress, Members of the House and Senate have introduced bills on a range of energy topics, many of which were reported by the Senate Committee on Energy and Natural Resources (ENR) in the 1st Session. On February 27, 2020, the ENR Chairman and Ranking Member introduced S.Amdt. 1407, a substitute amendment to S. 2657, titled the American Energy Innovation Act.1 The amendment incorporates language from a range of energy bills reported by the Committee. Cloture was invoked on the bill on March 2, 2020, and on March 5 several amendments to the amendment were adopted. On March 9, 2020, cloture on S.Amdt. 1407 was denied on a 47-44 vote. The American Energy Innovation Act would reauthorize existing programs and establish new programs, mainly through the Department of Energy (DOE), on energy efficiency and conservation in buildings, public schools, federal agencies, and industrial and manufacturing facilities. It would also reauthorize and amend the Weatherization Assistance Program (WAP), and establish programs to promote retraining and other assistance for workers affected by shifts in the U.S. energy system, and for U.S. veterans. The amendment would promote federal research, development, and demonstration (RD&D) on renewable energy technologies, nuclear energy, and carbon capture, utilization, and storage (CCUS). Electric grid modernization, cybersecurity, and resilience are also included in the proposal. This report provides a summary and analysis of the energy bill which was debated on the Senate floor starting March 2, 2020. The report refers to the March 5 version of S.Amdt. 1407, the substitute amendment to S. 2657. It compares the language in S.Amdt. 1407 to bills reported by ENR in the 1st Session of the 116th Congress. In some cases, there is no comparable ENR bill. The bill remains on the Senate calendar, although since discussion of the bill was suspended several major events have occurred: on March 11 the World Health Organization declared COVID-19 a pandemic leading to limits on personal and other travel, as well as a range of economic activities; during the month of March crude oil prices dropped by more than 50% because of declining demand and a lack of consensus among OPEC and other oil producers to 1 The introduced and reported versions of S. 2657 are titled the Advanced Geothermal Innovation Leadership Act of 2019. S. 2657 is the vehicle for the combined energy package. Congressional Research Service 1 Summary and Analysis of S. 2657, the American Energy Innovation Act limit production; U.S. gasoline and jet fuel product supplied (a proxy for consumption) dropped dramatically in the subsequent weeks, reaching levels not seen since at least the 1990s; and total electricity demand in many parts of the country also declined. Whether these factors have sustained effects for U.S. energy is unclear, but they may influence any future discussion of U.S. energy policy. Title I—Innovation Subtitle A—Efficiency Part I—Energy Savings and Industrial Competitiveness2 Part 1 of the Subtitle A addresses energy efficiency policies for buildings, industry, and federal agencies, among other provisions. According to the U.S. Energy Information Administration (EIA), the building and industrial sectors collectively consume approximately 72% of all U.S. primary energy consumption.3 The residential and commercial buildings sector accounts for 39% of all U.S. primary energy consumption, and the industrial sector accounts for 33%.4 Increased adoption of energy-efficiency technologies by these sectors could potentially realize significant energy savings and reduce emissions to the environment. DOE estimates that building energy use could be reduced by more than 20% through implementation of technologies that are known to be cost-effective.5 In 2020, the National Academies estimated that implementing existing, costeffective efficiency technologies in the industrial sector could reduce energy consumption by 1422%.6 A more recent study by EIA estimated that industrial sector energy intensity could be reduced by 44% globally between 2018 and 2040.7 Challenges to energy efficiency include market forces that do not incentivize investment in energy efficiency, a lack of information or awareness of energy saving opportunities and investment returns, and some policy approaches that reward selling energy and discourage investment in energy efficiency. Provisions in Part 1 build upon the Energy Savings and Industrial Competitiveness Act of 2019 and upon congressional action from previous versions of the bill introduced in the 112th, 113th, 114th, and 115th Congresses.8 S. 2137, the Energy Savings and Industrial Competitiveness Act of 2 Prepared by Corrie E. Clark, Analyst in Energy Policy, unless otherwise noted. 3 The building sector is an end-use energy consumption segment of the nation’s energy system that is comprised of residential and commercial buildings. The industrial sector is an end-use energy consumption segment of the nation’s energy system that is comprised of energy-intensive manufacturing, non-energy-intensive manufacturing, and nonmanufacturing activities. EIA, “Table A2. Energy Consumption by Sector and Source,” Annual Energy Outlook, 2020, https://www.eia.gov/outlooks/aeo/excel/aeotab_2.xlsx. 4 See EIA, “Table A2. Energy Consumption by Sector and Source,” Annual Energy Outlook, 2020, https://www.eia.gov/outlooks/aeo/excel/aeotab_2.xlsx. 5 DOE, “Chapter 5: Increasing Efficiency of Building Systems and Technologies,” Quadrennial Technology Review, September 2015, p. 2, at https://energy.gov/sites/prod/files/2017/03/f34/qtr-2015-chapter5.pdf. 6 National Academy of Sciences, National Academy of Engineering, and National Research Council. 2010. Real Prospects for Energy Efficiency in the United States. Washington, DC: The National Academies Press, p.15, at https://doi.org/10.17226/12621. 7 Energy intensity refers to energy use per unit of gross value added. The projection is for International Energy Agency (IEA) countries and other major economies as determined by IEA. IEA. 2018. Energy Efficiency 2018: Analysis and Outlooks to 2040, IEA, Paris, p. 101, at https://www.iea.org/reports/energy-efficiency-2018. 8 For more information on previous versions of the Energy Savings and Industrial Competitiveness Act, see CRS Report R44911, The Energy Savings and Industrial Competitiveness Act: S. 385 and H.R. 1443, by Corrie E. Clark. Congressional Research Service 2 Summary and Analysis of S. 2657, the American Energy Innovation Act 2019, was reported by ENR on October 23, 2019. Some provisions from S. 2137 are not included in S.Amdt. 1407. Subpart A—Buildings Chapter 1—Building Efficiency Subpart A, Chapter 1 contains several provisions for buildings and energy efficiency. The chapter does not include provisions from S. 2137 that pertain to building energy codes that have previously raised opposition. Those provisions would have made DOE’s state certification process for model building energy codes consistent for both commercial buildings and residential buildings. Additional language would have directed DOE to establish energy savings targets in the code development process and to establish a new grant program to facilitate adoption and implementation of updated building energy codes. Some supporters state that the provisions, “which would strengthen federal support for voluntary building energy codes, account for the vast majority of the efficiency gains in [S. 2137].”9 Some opponents state that DOE’s role should be as “technical advisor,” and expressed concern that the language in S. 2137 directing DOE to support the model building energy code development process by establishing national aggregate energy savings targets would “[deny] the code consensus bodies freedom in decision-making.”10 Sec. 1001. Commercial building energy consumption information sharing. Both the EIA and the U.S. Environmental Protection Agency (EPA) collect commercial building energy performance data. EIA conducts the Commercial Buildings Energy Consumption Survey (CBECS), a national sample survey that collects information on U.S. commercial buildings, including energy-related building characteristics, energy consumption, and energy expenditures.11 Respondent information provided to CBECS is confidential. EPA collects commercial building energy and water performance data on a voluntary basis as part of the ENERGY STAR Program.12 Using the ENERGY STAR Portfolio Manager tool, commercial building owners or managers can document a building’s energy and water performance, compare a building’s performance to a typical building with a similar function, and submit performance data for consideration and certification with the ENERGY STAR label. For a building to receive the ENERGY STAR label, it must be verified to perform among the top 25% of similar buildings nationwide; EPA relies upon EIA’s CBECS for data on typical building performance. In August 2018, EPA updated performance metrics for U.S. buildings in ENERGY STAR Portfolio Manager based on data collected for EIA’s 2012 CBECS.13 Section 1001 would direct EIA and EPA to enter into an information-sharing agreement. The section would direct the agreement to provide access to the EIA to building-specific data within 9 Alliance to Save Energy, “Alliance Calls for Stronger Efficiency Provisions in Senate Energy Bill,” February 27, 2020, https://www.ase.org/news/alliance-calls-stronger-efficiency-provisions-senate-energy-bill. 10 National Association of Home Builders (NAHB), Federal Intrusion in Energy Codes Hurts Housing Affordability, at https://www.nahb.org/-/media/NAHB/advocacy/docs/industry-issues/federal-intrusion-in-energy-codes-hurts-housingaffordability.pdf; NAHB, “Take Action to Prevent the Federal Government from Hijacking Building Codes,” March 2, 2020, http://nahbnow.com/2020/02/take-action-to-prevent-the-federal-government-from-hijacking-building-codes/. 11 CBECS includes building types such as schools, hospitals, correctional institutions, buildings used for religious worship, stores, restaurants, warehouses, and office buildings. For more information on the CBECS, see https://www.eia.gov/consumption/commercial/about.php. 12 For more information on ENERGY STAR, see CRS In Focus IF10753, ENERGY STAR Program, by Corrie E. Clark. 13 EPA, “Updates to ENERGY STAR® metrics with new market data,” https://www.energystar.gov/buildings/facilityowners-managers/existing-buildings/use-portfolio-manager/update-energy-star-scores-cbecs. Congressional Research Service 3 Summary and Analysis of S. 2657, the American Energy Innovation Act the Portfolio Manager database, to describe the manner in which EIA will incorporate the data into any future CBECS, and to describe and compare methodologies to maximize the quality of data collected by EIA and EPA. The section also directs EIA and EPA to protect submitted information according to existing public law. This language in Section 1001 is identical to language in Section 103 of S. 2137 as reported by ENR on October 23, 2019. Sec. 1002. Energy efficiency materials pilot program. Section 1002 would authorize the creation of a grant program to provide matching funds for nonprofits that retrofit buildings with energy efficiency improvements, including renewable energy generation, improved lighting, heating and air conditioning systems, and insulation. Criteria for awarding grants would be based upon the expected energy savings from improvements, the cost-effectiveness of the improvements, the evaluation and verification plan, financial need, and matching contribution. This language in Section 1002 is nearly identical to language in S. 520, a bill to require the Secretary of Energy to establish an energy efficiency materials pilot program, which was reported by ENR on August 16, 2019. Similar provisions were introduced in the 113th, 114th, and 115th Congresses.14 Sec. 1003. Coordination of energy retrofitting assistance for schools. Section 1003 would require DOE to coordinate and provide information on existing federal programs that could assist states, local educational agencies, and schools in initiating, developing, and financing energy efficiency, renewable energy, and energy retrofitting projects for schools. DOE would be required to coordinate and consult with appropriate federal agencies, to develop and maintain an online resource with relevant information, and to report to Congress on the implementation of this section. This language in Section 1003 is nearly identical to language in Section 121 of S. 2137 as reported and Section 2 of S. 253, the Streamlining Energy Efficiency for Schools Act, as reported. Differences between Section 1003 and Section 121 of S. 2137 pertain to the definition of a school. Section 1003 would include a school operated by the Bureau of Indian Education under the definition of a school while S. 2137 would include a school operated by the Bureau of Indian Affairs under the definition of a school.15 S. 2137 was reported by ENR on October 23, 2019. Differences between Section 1003 and Section 2 of S. 253 pertain to language in S. 253 that would have required DOE to identify duplicative programs across federal agencies, which was not included in Section 1003. S. 253 was reported by ENR on September 19, 2019. Sec. 1004. Grants for energy efficiency improvements and renewable energy improvements at public school facilities. Section 1004 would authorize a competitive grant program to be administered by DOE to make energy improvements at schools. Energy improvement would include any improvement, repair, renovation, or installation that results in energy cost savings. It could also include an energy 14 See U.S. Congress, Senate Committee on Energy and Natural Resources, Energy Efficiency Materials Pilot Program Act, report to accompany S. 520, 116th Cong., 1st sess., August 16, 2019, S.Rept. 116-72. 15 The Bureau of Indian Affairs (BIA) and the Bureau of Indian Education (BIE) are both within the U.S. Department of the Interior and administered by the Assistance Secretary of Indian Affairs. For more information on Indian education, see CRS Report RL34205, Indian Elementary-Secondary Education: Programs, Background, and Issues, by Cassandria Dortch. Congressional Research Service 4 Summary and Analysis of S. 2657, the American Energy Innovation Act improvement that leads to an improvement in teacher and student health and results in a reduction in energy costs. The installation of renewable energy technologies, the installation of zeroemissions vehicle infrastructure, and the purchase or lease of zero-emissions vehicles would qualify as energy improvements. Awardees would be required to submit a report to DOE describing the use of funds, cost savings realized by the energy improvements, the results of any audit, the use of any utility programs and public benefit funds, and the use of performance tracking for energy improvements. Wage requirements for contractors and subcontractors would be consistent with Davis-Bacon Act wage requirements.16 DOE would be required to develop and publish guidelines and best practices for the program and may provide technical assistance to eligible entities for implementation of guidelines and best practices. Section 1004 would authorize $100 million annually for FY2021-FY2025. This language in Section 1004 is similar to language in Section 2 of S. 1890, the Renew America’s Schools Act of 2019, as reported. S. 1890 was reported by ENR on December 18, 2019. Section 1004 includes an expanded section of requirements for the best practices that DOE would develop that are not included in S. 1890. In addition, S. 1890 did not include the requirement that an energy improvement that leads to an improvement in teacher and student health also result in a reduction in energy costs. Sec. 1005. Smart building acceleration. Section 1005 would promote the adoption of smart building technology. According to the bill, a “smart building” has an energy system that is flexible and automated; allows for remote monitoring and analysis; takes a systems-based approach to building operations for control of energy generation, consumption, and storage; communicates with utilities or other entities as appropriate; protects the health and safety of building occupants and workers; and is cybersecure. The section would direct the Secretary to establish the Federal Smart Building Program, which would implement smart building technology, and demonstrate the costs and benefits of smart buildings. DOE may expand awards made under the Federal Energy Management Program (FEMP) and the Better Building Challenge to recognize those federal agency achievements that accelerate the adoption of smart building technologies. DOE would also be directed to conduct a survey of privately owned smart buildings throughout the United States and evaluate their costs and benefits. DOE would conduct an R&D program to address the barriers to the integration of advanced building technologies to accelerate smart building adoption. Section 1005 would also require DOE to demonstrate policies and approaches that accelerate the transition to smart buildings through the Better Building Challenge. The language in Section 1005 is nearly identical to language in S. 2335, the Smart Building Acceleration Act of 2019, as reported by ENR on October 24, 2019. Section 1005 does not include congressional findings included in Section 2 of the S. 2335. Chapter 2—Worker Training and Capacity Building Sec. 1011. Building training and assessment centers. Section 1011 would direct DOE to provide grants to colleges and universities to establish building training and assessment centers, to promote building energy efficiency and 16 The Davis-Bacon Act set certain minimum labor standards for workers employed in federal contract construction: notably, that contractors must pay their employees not less than the locally prevailing wage. For more information on the Davis-Bacon Act, see CRS Report 94-408, The Davis-Bacon Act: Institutional Evolution and Public Policy, by William G. Whittaker. Congressional Research Service 5 Summary and Analysis of S. 2657, the American Energy Innovation Act environmental performance, and to coordinate with industrial research and assessment centers.17 To the maximum extent practicable, the section would direct DOE to collocate building training and assessment centers with industrial assessment centers. The section would authorize $10 million to be made available until expended. Section 1011 is identical to language in Section 111 of S. 2137 ,the Energy Savings and Industrial Competitiveness Act of 2019, as reported by ENR on October 23, 2019. Sec. 1012. Career skills training. Section 1012 would direct DOE to award grants to eligible entities to pay the federal share of career skills training programs (50%) to train and certify students to install energy efficient building technologies. Eligible entities would include nonprofit partnerships that include equal participation of industry and labor organizations and may include other organizations such as workforce investment boards, community-based organizations, qualified service and conservation corps, and education institutions. The section would authorize $10 million to be made available until expended. Section 1012 is nearly identical to language in Section 112 of S. 2137, as reported, with the exception that Section 112 of S. 2137 provides the following reference to technologies listed under 112(b) Establishment: “including technologies described in subsection (b)(3) of section 307 of the Energy Conservation and Production Act (42 U.S.C. §6836).” Subpart B—Industrial Efficiency and Competitiveness The industrial sector accounts for approximately 33% of U.S. primary energy consumption.18 The EIA conducts a national sample survey, the Manufacturing Energy Consumption Survey (MECS), approximately every four years. According to the EIA, U.S. manufacturing energy intensity decreased by approximately 4% from 2010 to 2014.19 During the same time period, total primary energy use for U.S. manufacturing increased by approximately 4% from 2010 to 2014.20 This is the first measured four-year increase in manufacturing energy consumption since 2002 according to MECS data.21 DOE’s Advanced Manufacturing Office (AMO) administers programs to improve the energy and material efficiency, productivity and competitiveness of manufacturing. AMO’s activities include R&D projects, convening R&D consortia, and providing technical assistance. Subpart B would provide additional authority for industrial efficiency programs at DOE. This subpart is largely consistent with provisions in S. 2137, the Energy Savings and Industrial 17 DOE industrial assessment centers conduct energy assessments for eligible manufacturers to identify opportunities to improve energy efficiency, productivity, and competitiveness and to reduce waste. The draft bill would also make changes to the authorization for the industrial research and assessment centers; see “Sec. 1022. Future of Industry program and industrial research and assessment centers.” 18 EIA estimates that the industrial sector consumed 32.5 quadrillion Btu of energy in 2019. See Table A2 in EIA, Annual Energy Outlook, 2020, at https://www.eia.gov/outlooks/aeo/section_appendices.cfm. 19 Publicly available data are from 2014. The most recent survey collected data for 2018; data from that survey is not available at this time. EIA reports that U.S. manufacturing overall fuel intensity decreased by 4.4% from 3.016 thousand British thermal units (Btu) per dollar of output in 2010 to 2.882 thousand Btu in 2014. 20 DOE, Manufacturing Energy and Carbon Footprint (2010 MECS), June 2015, https://www.energy.gov/sites/prod/ files/2018/11/f57/manufacturing_energy_footprint-2010_0.pdf; DOE, Manufacturing Energy and Carbon Footprint (2014 MECS), April 2019, https://www.energy.gov/sites/prod/files/2019/06/f64/ Manufacturing%20Energy%20Footprint-2014_Latest_compliant.pdf. 21 EIA, “Preliminary Estimates Show That U.S. Manufacturing Energy Consumption Increased Between 2010 and 2014,” (October 13, 2016), https://www.eia.gov/consumption/manufacturing/reports/2014/pre_estimates/. Congressional Research Service 6 Summary and Analysis of S. 2657, the American Energy Innovation Act Competitiveness Act of 2019, as reported by ENR on October 23, 2019, with the exception of Section 1023, which does not appear in S. 2137. Sections 1021, 1022, 1024, and 1026 are identical to language in S. 2137, as reported. Section 1023 is nearly identical to language in S. 2425, the CHP Support Act of 2019, as reported by ENR on December 17, 2019, with the exception of the years for authorized appropriations. Section 1025 is similar to language in H.R. 2659. Sec. 1022. Future of Industry program and industrial research and assessment centers. Section 1022 would direct DOE to expand the industrial research and assessment centers, create Centers of Excellence for the highest-performing industrial research and assessment centers, and improve coordination with the National Institute of Standards and Technology (NIST), FEMP, and the Building Technologies Program within DOE. DOE would increase partnerships with the DOE National Laboratories, energy service providers, and technology providers, identify opportunities to reduce greenhouse gas emissions, and promote sustainable manufacturing. The section would direct DOE to provide funding to outreach and coordination efforts. DOE would also be directed to pay for half the cost of associated internship programs and associated apprenticeship programs. The section would also direct the Administrator of the Small Business Administration to expedite consideration of loans from eligible small businesses. The section would also include water and wastewater treatment facilities within the definition of an “energyintensive industry.” Section 1022 is identical to language in S. 2137, the Energy Savings and Industrial Competitiveness Act of 2019, as reported by ENR on October 23, 2019. Sec. 1023. CHP Technical Assistance Partnership Program. Section 1023 would amend section 375 of the Energy Policy and Conservation Act (EPCA, P.L. 94-163) to establish the CHP Technical Assistance Partnership Program.22 The program would include the existing 10 regional combined heat and power (CHP) technical assistance partnerships, any others that DOE would establish, and any supporting activities within the technical partnership program of DOE’s AMO. Section 1023 would establish criteria for the program, which would encourage deployment of CHP, waste heat to power,23 and efficient district energy technologies and provide project specific support. Language would direct the program to make funds available to universities, research centers, and other institutions to ensure continued effectiveness of regional CHP Technical Assistance Partnerships. Allowable uses of those funds would include the research, development, and distribution of informational materials relevant to manufacturers, commercial buildings, institutional facilities, and federal sites; supporting mission goals of the Department of Defense (DOD) relating to CHP and microgrid technologies; maintaining and updating CHP databases and websites; conducting workshops and seminars; providing onsite CHP technology deployment assessments; identifying opportunities for hybrid renewable CHP; providing appropriate engineering support; assisting organizations in overcoming barriers to deployment; and assisting with field validation and performance evaluation clean energy technologies. Section 1023 would authorize appropriations for $12 million for each of FY2020-FY2024. 22 CHP refers to combined heat and power, which is the concurrent generation of electricity or mechanical power and useful thermal energy from a single source of energy. CHP systems are considered to be efficient as the thermal energy that is used would otherwise be wasted in a conventional power system. 23 “Waste heat to power (WHP) is the process of capturing heat discarded by an existing industrial process and using that heat to generate power.” Neeharika Naik-Dhungel, Waste Heat to Power Systems, EPA, Washington, DC, May 30, 2012. Congressional Research Service 7 Summary and Analysis of S. 2657, the American Energy Innovation Act Section 1023 is nearly identical to language in S. 2425, the CHP Support Act of 2019, as reported by ENR on December 17, 2019, except that authorization period is one year later in Section 1023, reflecting the different dates the legislation was introduced. Sec. 1024. Sustainable manufacturing initiative. Section 1024 would direct DOE to provide technical assessments to manufacturers to maximize energy efficiency, minimize waste, improve water efficiency, and conserve natural resources. DOE would also coordinate with the private sector and carry out a joint industry-government partnership program for R&D in sustainable manufacturing and industry technologies and processes. Section 1024 is identical to language in S. 2137, the Energy Savings and Industrial Competitiveness Act of 2019, as reported by ENR on October 23, 2019. Sec. 1025. High efficiency gas turbines. Section 1025 would direct the Secretary to establish a multiyear, multiphase program within the Fossil Energy Program to research, develop, and demonstrate technologies that improve the efficiency of gas turbines to be used in power generation systems and aviation. Section 1025 would specify program elements such as supporting gas turbine design for small-scale and utilityscale electric power generation, technology demonstration, field demonstrations, performance assessments, increasing fuel flexibility to enable high proportions of hydrogen or other renewable gas fuels, enhancing foundational knowledge needed for low-emission combustion systems, and increasing operational flexibility. Section 1025 would establish program goals in two phases. Phase one goals would be to develop and demonstrate advanced high efficiency gas turbines with efficiencies of at least 65% for combined cycle turbines and 47% for simple cycle turbines; for aviation gas turbines, phase one goals would be to reduce fuel burn by 25%. Phase two goals would increase efficiency goals to 67% for combined cycle turbines and to 50% for simple cycle turbines. The section would authorize appropriations for $50 million for each of FY2021FY2025. Section 1025 is similar to language in H.R. 2659, which was introduced in the House on May 10, 2019. Among the differences between the bills, H.R. 2659 would direct the Fossil Energy Program to establish a program to improve the efficiency of gas turbines for power generation systems and does not mention aviation applications. Subpart C—Federal Agency Energy Efficiency24 Sec. 1031. Energy and water performance requirements for Federal buildings. Since the 1970s, Congress has mandated energy requirements for federal agencies. Legislation required reductions in fossil fuel consumption and increases in renewable energy use, and energy efficiency targets for government fleets and buildings. Congress enacted the National Energy Conservation Policy Act (NECPA, P.L. 95-619), which, among other actions, established a program to retrofit federal buildings to improve energy efficiency. Federal agencies were required to reduce building energy intensity incrementally from FY2006 through FY2015. By FY2015, federal agencies should have reached an energy intensity reduction of 30% compared to FY2003. Federal agencies may typically exclude buildings that have a dedicated energy process that overwhelms other building consumption, such as one designed for a national security function or for the storage of historical artifacts. 24 Prepared by Heather Greenley, Analyst in Energy Policy. Congressional Research Service 8 Summary and Analysis of S. 2657, the American Energy Innovation Act Section 1031 would amend NECPA (42 U.S.C. 8253), extending existing energy efficiency improvement targets to federal building through FY2028, requiring federal agencies to reduce building energy consumption incrementally from FY2021 through FY2028 compared to FY2018. By FY2028, federal buildings would be required to reach a 20% reduction in energy use. Section 1031 would also add water use reduction targets through 2030. Each federal agency would be required to improve water efficiency at a rate of 2% per fiscal year. Exclusions are provided for buildings with energy and water intensive activities. Section 1031 also includes recommendations, reporting requirements, evaluation roles for energy managers, exceptions for recommissioning or retrocommissioning, and performance contracting requirements. The language in Section 1031 is nearly identical to language in Section 421 of S. 2137, the Energy Savings and Industrial Competitiveness Act of 2019, as reported by ENR on October 23, 2019; and S. 1706, the Energy Savings Through Public-Private Partnerships Act, as reported by ENR on September 24, 2019. S. 2137 outlines the various targets and the considerations for federal energy managers, including evaluation requirements, whereas the language on performance contracting can be found in S. 1706. Section 1031 would require federal agencies to use performance contracts for at least 50% of energy or water saving measures identified by energy managers. Sec. 1032. Federal Energy Management Program. Federal agencies report energy and water consumption annually to DOE’s Federal Energy Management Program (FEMP). FEMP collects this data and helps agencies meet federally mandated energy and water reduction goals. FEMP helps federal agencies identify affordable solutions to improvement through trainings. Federal agencies can request assistance from FEMP to improve energy management. Section 1032 would authorize FEMP in statute, and details FEMP’s authorizations and roles. FEMP would continue to maintain and track energy and water management through an online database, and continue to develop and implement trainings, among other duties. Additionally, Section 1032 would authorize appropriations of $36 million for each of FY2021 through FY2031. Section 1032’s language is nearly identical to Section 422 of S. 2137, the Energy Savings and Industrial Competitiveness Act of 2019, as reported by ENR on October 23, 2019. The main difference is that authorization periods are one year later in Section 1032, reflecting the different dates the legislation was introduced. Sec. 1033. Use of Energy and Water Efficiency Measures in Federal Buildings. The Energy Policy Act of 1992 (EPAct92, P.L. 102-486) amended NECPA and authorized alternative financing methods for federal energy projects, including energy savings performance contracts (ESPCs) and utility energy service contracts (UESCs), among other provisions. An ESPC is a multiyear contract between a federal agency and an energy service company. In general, under an ESPC, a federal agency agrees to pay an amount not to exceed the current annual utility costs for a fixed period (up to 25 years) to an energy service company, which finances and installs facility improvements. In return, the contractor assumes the performance risks of energy conservation measures made during the contract period, and guarantees that the improvements will generate energy cost savings sufficient to pay for the improvements over the length of the contract, as well as providing the energy services company a return on the investment. After the end of the contract, the agency benefits from reduced energy costs because of the improvements. A UESC is a contract between a federal agency and the serving utility. Congressional Research Service 9 Summary and Analysis of S. 2657, the American Energy Innovation Act Under a UESC, the utility arranges financing for efficiency projects and renewable energy projects, and the costs are repaid by the agency over the length of the contract.25 Section 1033 would amend NECPA to require DOE to report to the President and Congress on the status of ESPCs and UESCs of each agency, including information on quantity and investment value, savings, forecast, and any data discrepancies. Further, Section 1033 would provide additional authority to federal agencies allowing the acceptance, transfer, and application of proceeds from any energy and water incentive including renewable energy certificates (RECs) to fund these contracts. RECs are created when a qualified renewable source of energy generates a megawatt-hour of electricity.26 Additionally, Section 1033 would expand the definition of “energy savings” by amending 42 U.S.C. §8287c to include RECs as well as revenue generated from energy or water reductions or more efficient equipment. Section 1033 is identical to language in S. 1706, the Energy Savings Through Public-Private Partnerships Act, as reported by ENR on September 24, 2019. Sec. 1034. Federal building energy efficiency performance standards; certification system and level for green buildings. The American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) and the International Code Council (ICC) manage model building energy code development. Each model code, or example standard, is typically updated every three years through a public consensus process. ASHRAE is responsible for maintaining standard 90.1, Energy Standard for Buildings Except Low-Rise Residential Buildings. The ICC is responsible for maintaining the International Energy Conservation Code (IECC), which contains separate provisions for commercial buildings and for low-rise residential buildings. DOE supports and participates in the model building energy code development processes administered by ASHRAE and the ICC. The development processes rely on stakeholder engagement to propose changes and provide feedback to the committees on proposed changes. These consensus standards are developed and published to define minimum performance values. Section 1034 would amend 42 U.S.C. §6834 by adding a definition of “major renovation” to include modifications to the energy systems of a building that can achieve compliance with applicable energy standards. It would also set revised energy-efficiency standards for federal buildings. These standards would update from the 2004 ASHRAE Standard 90.1 and the 2004 IECC to the most recently published edition. The Secretary of Energy, in consultation with the Administrator of General Services and the Secretary of Defense, would also review and compare private sector green building certification systems. Section 1034 would strike and replace paragraph (D) of 42 U.S.C. §6834, thereby rescinding a fossil energy elimination requirement for new federal buildings. EISA Section 433 currently 25 See CRS Report R45411, Energy Savings Performance Contracts (ESPCs) and Utility Energy Service Contracts (UESCs), by Corrie E. Clark. 26 Each REC has a unique identification number and provides data (e.g., the resource type, service date, location, etc.) that is traceable and certifiable. RECs can be traded and have monetary value. They are used by utilities to comply with state renewable electricity standards. Thus, RECs can help improve the return on investment for renewable projects. The ownership of these credits is often a contract stipulation associated with the project for the developer. State and/or local renewable requirements play a role in determining the contract stipulations for the credit ownership. For more information, see Office of Federal Sustainability Council on Environmental Quality, Federal Renewable Energy Certificate Guide, June 16, 2016, p. 4. Congressional Research Service 10 Summary and Analysis of S. 2657, the American Energy Innovation Act requires federal agencies to reduce fossil fuel consumption in new or majorly renovated buildings by specified amounts.27 The language in Section 1034 is nearly identical to Section 432 of S. 2137, the Energy Savings and Industrial Competitiveness Act of 2019, as reported by ENR on October 23, 2019. The language is also similar to bills introduced in the 115th Congress: The Energy Savings and Industrial Competitiveness Act, S. 385 and H.R. 1443.28 Sec. 1035. Energy-efficient and energy-saving information technologies. EISA Section 527 (42 U.S.C. §17143) requires federal agencies to report to the Office of Management and Budget (OMB) on the status and implementation of energy efficiency improvements, energy reduction costs, and greenhouse gas (GHG) emissions. Subsequently, EISA Section 528 (42 U.S.C. §17144) directs OMB to provide a summary of this information and an evaluation of progress for the federal government to the House Committee on Oversight and Government Reform and to the Senate Committee on Governmental Affairs.29 The Director of OMB compiles the compliance status of the EISA requirements and description of each into an agency scorecard.30 Section 1035 would amend NECPA by adding language to require the OMB Director, the EPA Administrator, and the Secretary of Energy to collaborate with each federal agency to develop an implementation strategy for the maintenance, purchase, and use of energy-efficient and energysaving information technologies.31 Additionally, Section 1035 would direct the OMB Director to establish performance goals and best practices to meet those goals, including the consideration of utilizing ESPCs and UESCs. The language in Section 1035 is nearly identical to Section 301 of S. 2137, the Energy Savings and Industrial Competitiveness Act of 2019, as reported by ENR on October 23, 2019. Sec. 1036. High-performance green Federal buildings. The Office of Federal High-Performance Green Buildings, within the General Services Administration (GSA), coordinates activities relating to such buildings across federal agencies (42 U.S.C. §17092).32 The office delivers actionable information to improve building performance and conducts assessments on existing green buildings. GSA has several green27 42 U.S.C. §6834(a)(3)(D)(i) applies only to new and majorly renovated buildings that are (1) “public buildings” or (2) those that cost at least $2,500,000 adjusted for inflation.” In FY2020, these buildings are supposed to reduce fossil fuel consumption by 80% with an ultimate goal of 100% by FY2030, relative to a similar building’s consumption levels in FY2003. DOE proposed a rulemaking for comment on this legislation on October 15, 2010. However, the rulemaking was not finalized, and no further action has been taken since December 2014 when the comment period closed. Without a finalized rule, it is difficult to track and evaluate the progress toward this goal. For more information, see U.S. Department of Energy, “Fossil Fuel-Generated Energy Consumption Reduction for New Federal Buildings and Major Renovations of Federal Buildings, Proposed Rule,” 79 Federal Register, October 14, 2014, pp. 6169361735. 28 For more information, see CRS Report R44911, The Energy Savings and Industrial Competitiveness Act: S. 385 and H.R. 1443, by Corrie E. Clark. 29 Now known as the House Committee on Oversight and Reform and the Senate Committee on Homeland Security and Governmental Affairs, respectively. 30 For a scorecard example, see U.S. Department of Defense, FY2018 OMB Scorecard for Efficient Federal Operations/Management, accessed March 10, 2020, available at https://www.sustainability.gov/images/scorecards/dodscorecard-fy2018.png. 31 Information Technology as defined in 40 U.S.C. §11101. 32 For more information on green buildings, see CRS Report R40147, Infrastructure: Green Building Overview and Issues, by Eric A. Fischer and Danielle A. Arostegui. Congressional Research Service 11 Summary and Analysis of S. 2657, the American Energy Innovation Act building programs and projects that are the result of collaborations with other agencies and offices. The Director of the Office of Federal High-Performance Green Buildings provides recommendations to the Secretary of Energy on rating and certification systems that can be used by agencies to meet federal green building requirements, based on the results of a study to be conducted by the office every five years.33 The office coordinates with DOE on commercial highperformance green building activities. Section 1036 would amend 42 U.S.C. §17092(h) to require the Director of the Office of Federal High-Performance Green Buildings to conduct an ongoing review, providing the Secretary of Energy with a list of certification systems most likely to encourage a comprehensive and environmentally sound approach to the certification of green buildings. Additionally, these systems criteria would include sourcing of grown, harvested, or mined materials, and reward responsible sourcing. The language in Section 1036 is nearly identical to Section 411 of S. 2137, the Energy Savings and Industrial Competitiveness Act of 2019, as reported by ENR on October 23, 2019. Sec. 1037. Energy efficient data centers. According to DOE, data centers are energy-intensive compared to other building types.34 DOE estimates that data centers accounted for approximately 2% of total U.S. electricity use in 2014. Data centers in the United States consumed an estimated 70 billion kWh, and are projected to consume approximately 73 billion kWh in 2020.35 The growth in cloud computing services has led to commitments by some data-centric companies to power data centers with renewable energy.36 Although there are no national efficiency requirements for data centers, the federal government has taken steps to improve the efficiency of its own data centers.37 In 2010, the Federal Data Center Consolidation Initiative (DCCI) was established. The Federal Information Technology Acquisition Reform Act (FITARA, P.L. 113-291) was enacted on December 19, 2014, to establish a long-term framework through which federal IT investments could be tracked, assessed, and managed, to significantly reduce wasteful spending and improve project outcomes.38 The DCCI was superseded by the Data Center Optimization Initiative (DCOI) in 2016.39 The DCCI established and the DCOI maintains requirements for agencies to develop and 33 42 U.S.C. §6834(a)(3); 42 U.S.C. §17092. 34 Data centers typically consume 10 to 50 times the energy per floor space of a typical commercial office building. DOE, “Data Centers and Servers,” accessed December 27, 2018, https://www.energy.gov/eere/buildings/data-centersand-servers/. 35 Shehabi, A., Smith, S.J., Horner, N., Azevedo, I., Brown, R., Koomey, J., Masanet, E., Sartor, D., Herrlin, M., Lintner, W., United States Data Center Energy Usage Report, Lawrence Berkeley National Laboratory, Berkeley, California, 2016, LBNL-1005775, http://eta-publications.lbl.gov/sites/default/files/lbnl-1005775_v2.pdf, p. ES-1. 36 See Apple Inc., “Apple Now Globally Powered by 100 Percent Renewable Energy,” press release, April 9, 2018, https://www.apple.com/newsroom/2018/04/apple-now-globally-powered-by-100-percent-renewable-energy/; Brad Smith, “New Solar Deal Moves Us Ahead of Schedule in Creating a Cleaner Cloud,” Microsoft On the Issues, March 21, 2018, https://blogs.microsoft.com/on-the-issues/2018/03/21/new-solar-deal-moves-us-ahead-of-schedule-increating-a-cleaner-cloud/. 37 For more information, see CRS Report R45863, Bitcoin, Blockchain, and the Energy Sector, by Corrie E. Clark and Heather L. Greenley. 38 Title VIII, Subtitle D of the National Defense Authorization Act (NDAA) for Fiscal Year 2015, P.L. 113-291. 39 U.S. Office of Management and Budget, “Memorandum for Heads of Executive Departments and Agencies: Data Center Optimization Initiative,” August 1, 2016, https://obamawhitehouse.archives.gov/sites/default/files/omb/ memoranda/2016/m_16_19_1.pdf. Congressional Research Service 12 Summary and Analysis of S. 2657, the American Energy Innovation Act report on strategies “to consolidate inefficient infrastructure, optimize existing facilities, improve security posture, achieve cost savings, and transition to more efficient infrastructure.”40 Section 1037 would amend 42 U.S.C. §17112 to direct the Secretary of Energy and the EPA Administrator to consult with stakeholders to carry out a voluntary national information program on energy-efficient data centers including a study to assess progress in energy-efficiency improvement, and analyze the impact of information technologies, cloud platforms, and social media on energy usage. Section 1037’s study would update the Lawrence Berkeley National Laboratory’s United States Data Center Energy Usage Report, from June 2016, within the next four years. It would also include an evaluation of water usage in data centers and recommendations for reduction. Section 1037 would also direct the Secretary of Energy to maintain a data center energy practitioner program to certify qualified practitioners to evaluate energy use in federal data centers. Agencies would be required to consider having a practitioner evaluate data centers once every four years. Section 1037 would make energy usage data from federal data centers available and accessible to the public, but also protect proprietary information. The language in Section 1037 is nearly identical to Section 302 of S. 2137, the Energy Savings and Industrial Competitiveness Act of 2019, as reported by ENR on October 23, 2019. Subpart D—Rebates and Certifications Sec. 1041 Third-Party Certification Under Energy Star Program. ENERGY STAR® is a voluntary labeling program for energy-efficient products, homes, buildings, and manufacturing plants that is managed jointly by EPA and DOE.41 Section 1041 would direct the EPA Administrator to revise certification requirements for program partners that have complied with all ENERGY STAR requirements for 18 months such that thirdparty certification for listing a product would not be required (although other documentation may be required to facilitate product listing and performance verification). The section would also require termination of the exemption if it is determined that any ENERGY STAR program requirements have been violated for two models within a two-year period, and the resumption of third-party certification would be required for at least three years. This would not prevent EPA from using third parties for ENERGY STAR program administration. Section 1041 is identical to section 401 of S. 2137, the Energy Savings and Industrial Competitiveness Act of 2019, as reported by ENR on October 23, 2019. Sec. 1042. Extended Product System Rebate Program. Electric motors are used in the U.S. industrial, commercial, residential, and transportation sectors. The industrial sector is responsible for approximately 44% of all motor-drive system electrical energy consumption in the United States.42 In 2018, the U.S. industrial sector’s total electricity consumption was more than 25% of end-use electrical consumption in the United States.43 Within 40 Ibid., p. 2. For more on the data center optimization initiative, see CRS Report R44843, The Current State of Federal Information Technology Acquisition Reform and Management, by Patricia Moloney Figliola. 41 For more information on the ENERGY STAR program, see CRS In Focus IF10753, ENERGY STAR Program, by Corrie E. Clark. 42 DOE EERE Advanced Manufacturing Office, Premium Efficiency Motor Selection and Application Guide: A Handbook for Industry, DOE/GO-102014-4107, Washington, DC, February 2014, pp. 1-2. 43 EIA, Monthly Energy Review, February 2020. Table 7.6. Available at http://www.eia.gov/totalenergy/ Congressional Research Service 13 Summary and Analysis of S. 2657, the American Energy Innovation Act the industrial sector, motor-driven equipment consumed approximately 63% of the total electrical energy, and this energy use was approximately 17% of the total U.S. electrical energy use.44 Section 1042 would direct DOE to establish a rebate program for qualified extended product systems. The section defines a qualified extended product system as a system that includes an electric motor and electronic control that reduce energy use by at least 5% as compared to base levels. The section would establish a maximum aggregate rebate per entity not to exceed $25,000 per calendar year. The section would authorize $5 million per year for two years, available until expended. Section 1042 is nearly identical to Section 211 of S. 2137, the Energy Savings and Industrial Competitiveness Act of 2019, as reported by ENR on October 23, 2019. S. 2137 includes commercial or industrial machinery or equipment that was placed back into service during calendar year 2020 or 2021. Section 1042 includes commercial or industrial machinery or equipment that was placed back into service during calendar year 2021 or 2022. Sec. 1043. Energy Efficiency Transformer rebate program. Section 1043 would establish a rebate program to incentivize the replacement of energy inefficient transformers with energy efficient transformers. Qualified energy inefficient transformers would be defined as a transformer that does not meet or exceed applicable energy conservation standards and meets certain requirements for date of manufacture. Qualified energy efficient transformers meet or exceed applicable energy conservation standards. Section 1043 would authorize $5 million per year for FY2021 and FY2022, to be available until expended. Section 1043 is nearly identical to Section 221 of S. 2137, the Energy Savings and Industrial Competitiveness Act of 2019, as reported by ENR on October 23, 2019. The language in S. 2137 would authorize appropriations for FY2020 and FY2021, while the Section 1043 of the draft bill would authorize appropriations for FY2021 and FY2022. Subpart E—Miscellaneous Sec. 1051. State energy conservation plans.45 DOE administers the State Energy Program, which provides funding and technical assistance to states, the District of Columbia, and U.S. territories to promote the efficient use of energy and reduce the rate of growth of energy demand through the development and implementation of specific state energy programs. The program is authorized under Part D of the Energy Policy and Conservation Act (EPCA, P.L. 94-163). Part D (section 361 et seq.) of EPCA authorizes the Secretary of Energy “to establish procedures and guidelines for the development and implementation of specific state energy conservation programs and to provide federal financial and technical assistance to the states in support of such programs.” Section 1051 would strike the existing paragraph 362(d)(3) of EPCA, which says that state energy plans can include programs to increase transportation efficiency and the use of alternative fuels. The replacement language would expand those options to include programs designed to “help reduce carbon emissions in the transportation sector” and increase vehicle electrification. data/monthly/pdf/sec7_19.pdf. 44 Percentages are based upon data from 2006; see DOE EERE Advanced Manufacturing Office, Premium Efficiency Motor Selection and Application Guide: A Handbook for Industry, DOE/GO-102014-4107, Washington, DC, February 2014, pp. 1-2. 45 Prepared by Mark Holt, Specialist in Energy Policy. Congressional Research Service 14 Summary and Analysis of S. 2657, the American Energy Innovation Act Sec. 1052. Report on electrochromic glass.46 Electrochromic (EC or “smart”) glass has the ability to switch from clear to tinted, potentially lowering building heating or cooling loads and reducing interior glare.47 An electrical charge sent through the glass causes the glass to react by lightening or darkening. EC window systems can be manually or automatically controlled, depending on system design. Section 1052 would require Secretary to study the potential benefits of EC glass to reduce energy consumption in commercial buildings, improve workplace comfort and employee health, and provide benefits for hospital patients and staff. A report to Congress would be required by one year after enactment. Sec. 1053. Advance appropriations required.48 The text requires that funding authorized by Part I of Title I be available only to the extent it is “provided in advance in appropriations Acts.” This language in Section 1053, which appears in other bills as well, may reiterate that this authorization by itself does not provide any funding. Part II—Weatherization The Weatherization Assistance Program (WAP) enables low-income families to permanently reduce their energy consumption by making their dwellings more energy efficient. The WAP was established in 1976 and authorized in Title IV of the Energy Conservation and Production Act (ECPA, P.L. 94-385). The WAP is a formula grant program: funding flows from DOE to state governments and then to local governments and weatherization agencies. DOE program guidelines specify that a variety of energy efficiency measures are eligible for support under the program. The measures include insulation, space-heating equipment, energy-efficient windows, water heaters, and efficient air conditioners. Sec. 1101. Weatherization Assistance Program. Section 1101 would reauthorize the WAP. The section would clarify that renewable energy technologies are to be included in the definition of weatherization materials. The section would amend section 413(b) of ECPA to authorize DOE to account for the non-energy benefits of weatherization improvements—such as improvements to health and safety—when determining appropriate standards and procedures for WAP. Section 1101 would add a new Section 414(c) of ECPA to authorize DOE to request that grant recipients review and encourage the use of private contractors. A new Section 414(d) would authorize the creation of a financial assistance program within WAP for enhancement and innovation. Additional provisions, if enacted, would make changes to the program including increasing the amount of a WAP grant that can be used for administrative purposes from 10% to 15% and changing the eligibility requirements for reweatherization of any dwelling to 15 years after the previous weatherization was completed. The section would also authorize an annual appropriation of $350 million for FY2021-FY2025. The language in Section 1101 is similar to language in S. 983, the Weatherization Enhancement and Local Energy Efficiency Investment and Accountability Act of 2019 as reported by ENR on September 10, 2019; however, there are differences. Section 1101 would remove the requirement to coordinate with the Director of the Community Services Administration, which was housed in 46 Prepared by Brent D. Yacobucci, Section Research Manager, Energy and Minerals Section. 47 DOE, Office of Energy Efficiency and Renewable Energy (EERE), Advanced Manufacturing Office (AMO), Electrochromic Windows - Advanced Processing Technology, accessed March 13, 2020, https://www.energy.gov/eere/ amo/electrochromic-windows-advanced-processing-technology. 48 Prepared by Mark Holt, Specialist in Energy Policy. Congressional Research Service 15 Summary and Analysis of S. 2657, the American Energy Innovation Act the former Department of Health, Education, and Welfare and is no longer active. The responsibilities of the Community Services Administration is now included within the Department of Health and Human Services. Section 1101 would also direct the Secretary to encourage eligible entities to hire and retain employees from the community where weatherization services are being provided and from underrepresented communities and groups. Another difference is a funding distribution requirement that would require the full amount of assistance for a given fiscal year to be distributed to recipients within 60 days after the date on which funds have been made available to provide assistance. Section 1101 would also require additional information to be included in annual reporting to Congress including the number of multifamily buildings where individual dwelling units were weatherized and the number of individual dwelling units in multifamily buildings weatherized in the previous year. Subtitle B—Renewable Energy49 Sec. 1201. Hydroelectric production incentives and efficiency improvements.50 Hydropower is one of many energy sources that could be leveraged to further diversify the economy’s electricity portfolio. DOE estimates there could be 13 gigawatts (GW) of new hydropower generation capacity (e.g., from adding power at existing dams and canals, upgrading existing plants) by 2050.51 Some of this new capacity could come from non-federal hydropower projects, which are regulated by FERC. There are financial, environmental, regulatory, and technological concerns related to the additional development of hydropower.52 Section 1201 would amend and reauthorize two hydropower programs: the Hydroelectric Production Incentives Program and the Hydroelectric Efficiency Improvement Program. Both programs were established in EPAct05 (P.L. 109-58), and were authorized to receive appropriations through FY2015. DOE oversees both programs. The Hydroelectric Production Incentives Program—Section 242 of EPAct05—provides funding for projects that add hydroelectricity generation to existing dams and conduits.53 The program allows the Secretary of Energy to make incentive payments to the owner or operator of a qualified hydroelectric facility.54 A qualified hydroelectric facility is defined as a turbine or other generating device owned or solely operated by a non-federal entity, which generates hydroelectricity for sale and is added to an existing dam or conduit. An existing dam or conduit is defined as any dam or conduit constructed prior to August 8, 2005, that does not require construction or the enlargement of impoundment or diversion structures in connection with the installation of the turbine or other generating device. Payments are based on the amount of electricity generated during the incentive period at a rate of 1.8 cents/kilowatt-hour with 49 Prepared by Ashley J. Lawson, Analyst in Energy Policy, unless otherwise noted. 50 Prepared by Kelsi Bracmort, Specialist in Natural Resources and Energy Policy. 51 DOE analysis estimates that U.S. hydropower could grow from 101 GW of capacity to nearly 150 GW by 2050 with 13 GW coming from new hydropower generation capacity and 36 GW from new pumped storage capacity. DOE, Hydropower Vision: A New Chapter for America’s First Renewable Electricity Source, DOE/GO-102016-4869, July 2016, https://www.energy.gov/sites/prod/files/2018/02/f49/Hydropower-Vision-021518.pdf. 52 Ibid; Oak Ridge National Laboratory, Small Hydropower in the United States, ORNL/TM-2015/326, September 2015, https://info.ornl.gov/sites/publications/files/Pub56556.pdf. 53 42 U.S.C. §15881. 54 DOE, U.S. Department of Energy Water Power Technologies Office Guidance on Implementing Section 242 of the Energy Policy Act of 2005, April 2019, https://www.energy.gov/sites/prod/files/2019/05/f62/hydro-guidelinescy18.pdf. Congressional Research Service 16 Summary and Analysis of S. 2657, the American Energy Innovation Act adjustments for inflation. A facility may not receive more than $750,000 in a calendar year. The eligibility period for payments is limited to facilities that begin operations within 10 fiscal years starting in FY2006. A facility may receive payments for a period of 10 fiscal years. No payments are to be made after an expiration period of 20 fiscal years starting with FY2006. The program is authorized to be appropriated $10 million annually for FY2006-FY2015. Congress has appropriated funds for the program.55 DOE maintains a list of annual selected recipients for the program.56 Section 1201 would amend the Hydroelectric Production Incentives Program. It would modify the definition of a qualified hydroelectric facility to mean a turbine or other generating device owned or solely operated by a non-federal entity that (1) generates hydroelectricity for sale and (2) is added to an existing dam or conduit, or has a generation capacity of no more than 20 megawatts (MW) for which the entity has received a construction authorization from FERC and is to be constructed in an area where there is inadequate electric service. The bill would increase the eligibility window from 10 to 22 fiscal years starting in FY2006. It would also increase the expiration period of the program from 20 to 32 fiscal years starting with FY2006. Among other things, the bill would authorize appropriations for the program for FY2021-FY2036. The Hydroelectric Efficiency Improvement Program—Section 243 of EPAct05—incentivizes efficiency improvements at existing hydroelectric facilities.57 More specifically, the program allows the Secretary to provide payments to owners or operators of hydroelectric facilities at existing dams to be used for capital improvements at these facilities to improve their efficiency by at least 3%. Incentive payments may not exceed 10% of the cost of the capital improvement. Only one payment may be made for the improvements at a single facility. A payment may not exceed $750,000 for the improvements at a single facility. The program is authorized to be appropriated $10 million annually for FY2006-FY2015. Section 1201 would amend the program to authorize appropriations for FY2021-FY2036. Section 1201 is similar to S. 859, the Reliable Investment in Vital Energy Reauthorization (RIVER) Act, as reported by ENR on September 10, 2019. Key differences include a limit of 10 MW to qualify for the incentives program under S. 859 (as opposed to 20 MW in Section 1201), and authorizations of appropriations that would start two years later in Section 1201 than in S. 859. Sec. 1202. Marine energy research and development. Section 1202 would amend an existing DOE research program on marine energy. Marine energy sources are currently not in commercial use in the United States, although the technical resource potential is large.58 DOE reports “the [marine and hydrokinetic] industry is at an early stage of technological development due to the fundamental scientific and engineering challenges of 55 For example, Congress provided $7 million for the program for FY2020. See “Explanatory Statement on Appropriations Regarding H.R. 1865 Further Consolidated Appropriations Act, 2020,” Congressional Record, vol. 165 (December 17, 2019), p. H11244. 56 DOE, EPAct 2005 Section 242 Hydro Incentive Program, March 18, 2020, https://www.energy.gov/eere/water/epact2005-section-242-hydro-incentive-program. 57 42 U.S.C. §15882. 58 The resource potential varies by type of marine energy technology. For estimates and discussion see DOE, Quadrennial Technology Review 2015. Congressional Research Service 17 Summary and Analysis of S. 2657, the American Energy Innovation Act generating power from dynamic, low-velocity and high-density waves and currents, all while surviving corrosive marine environments.”59 Generally, Section 1202 would emphasize later stages of technology development more than current law. For example, Section 1202 would “establish and expand critical testing infrastructure.” Section 1202 also includes specific marine energy technology applications (e.g., marine aquaculture, desalination, community microgrids in isolated power systems) that are not mentioned in current law. Section 1202 would establish a new National Marine Energy Center associated with an institution of higher education to conduct marine energy research activities, including housing testing facilities. DOE currently supports three National Marine Energy Centers, in accordance with provisions in EISA.60 Section 1202 would direct DOE to continue to support these three centers while also adding a fourth center. Section 1202 specifies cost-sharing requirements for all centers and requires them to demonstrate the need for federal support. Current law does not specify costsharing requirements but does require a demonstration of need. Section 1202 would amend the definition of “marine energy,” though this change would likely have minimal impacts on program implementation. Section 1202 would expand the definition of marine energy to also include hydrokinetic energy from non-marine bodies of water (e.g., rivers, lakes).61 Under current law, “marine energy” and “hydrokinetic energy” are used as separate terms; for example, in the relevant subtitle section heading in the Energy Independence and Security Act of 2007 (EISA; P.L. 110-441). Current law requires DOE to consult with the Department of the Interior (DOI) and the National Oceanic and Atmospheric Administration (NOAA) in its marine energy research program, overall. Current law also requires DOE to consult with the U.S. Coast Guard regarding potential navigational impacts. Section 1202 additionally requires consultation with the Federal Energy Regulatory Commission (FERC) regarding the program overall. Section 1202 further requires a DOE study, in consultation with the Department of Commerce and the Department of Transportation. The study would examine how marine energy technologies could support (1) economic development in the maritime transportation sector; (2) resilience and disaster recovery for maritime infrastructure, including that serving ports; and (3) scientific missions at sea, including those in the Arctic. Section 1202 would authorize $320 million for FY2021-FY2022 for the marine energy research program and the National Marine Energy Centers (combined). For comparison, current law authorizes $250 million for FY2008-FY2012. 59 DOE, Marine and Hydrokinetic: Report to Congress, September 2018. 60 The current National Marine Energy Centers are: the Pacific Marine Energy Center, jointly operated by Oregon State University, the University of Washington, and the University of Alaska Fairbanks; the Southeast National Marine Renewable Energy Center, operated by Florida Atlantic University; and Hawaii National Marine Renewable Energy Center, operated by the University of Hawaii: Manoa. 61 Hydrokinetic energy is a type of energy derived from the motion of water. This motion can have many natural causes, including waterfalls, tides, and river currents. Hydrokinetic energy technologies convert this energy into a useable form, such as electric energy (i.e., electricity). Marine energy can be hydrokinetic because oceans have tides and currents (i.e., ocean water moves). Another marine energy source (ocean thermal) comes from the temperature difference between shallow and deep waters. Other renewable energy sources such as offshore wind and solar may be located in marine environments, but they are not usually described as a type of marine energy. Congressional Research Service 18 Summary and Analysis of S. 2657, the American Energy Innovation Act Section 1202 is nearly identical to S. 1821, the Marine Energy Research and Development Act of 2019, as reported by ENR on October 23, 2019. A related bill in the House is H.R. 3203, the Marine Energy Research and Development At of 2019. Sec. 1203. Advanced geothermal innovation leadership. Section 1203 would reauthorize an existing DOE research program on geothermal energy. The reauthorized program would primarily focus on expanding use of conventional geothermal energy technologies and developing new technologies for enhanced geothermal systems (EGS).62 The United States is believed to have a large EGS potential, but technology development is still required to produce energy from these resources. Geothermal energy can be used to generate electricity, to provide heat for direct use (e.g., heating for commercial or industrial facilities), and to heat and cool buildings through geothermal heat pumps. In 2019, geothermal energy generated less than 1% of U.S. electricity.63 The share of building heating and cooling needs supplied by geothermal energy is likely smaller than the share of electricity supplied by geothermal energy. Section 1203 would direct the United States Geological Survey (USGS) to update its assessment of U.S. geothermal resource potential, last conducted in 2008.64 The update is to focus on increasing the resolution of geothermal energy resource maps, assessing non-energy aspects such as mineral coproduction potential and induced seismicity risks, and improving data for Alaska, Hawaii, and Puerto Rico in particular. Section 1203 would promote technology development through (1) a new Oil and Gas Technology Transfer Initiative; (2) a Coproduction of Geothermal Energy and Minerals Production Prize Competition; (3) DOE-supported testing sites; and (4) a demonstration program. The technology transfer initiative would aim to demonstrate use of oil and gas drilling and other operations for geothermal energy development. The prize competition would award up to $10 million for costeffective and environmentally friendly ways to remove minerals from geothermal brines. The DOE-supported testing sites are to include continued support for the current testing site in Milford, UT, and support for a new testing site. The demonstration program is to fund at least four projects demonstrating different types of technologies in different geologic settings. At least one demonstration project is to be located east of the Mississippi River. Section 1203 would take other actions to promote development and deployment of geothermal energy, including:     establishing a voluntary, industry-wide repository of drilling data; establishing a new R&D program for geothermal heat pumps and direct use of geothermal energy; establishing a financial assistance program to promote use of geothermal heat pumps and direct use of geothermal energy, especially in economically distressed areas; and expanding the High Cost Region Geothermal Energy Grant Program. 62 Enhanced geothermal systems (EGS), sometimes called engineered geothermal systems, are man-made systems created to produce electricity from geothermal reservoirs that may not be economical due to a lack of water or permeability. 63 EIA, Electric Power Monthly, February 2020. 64 The USGS, DOE, and academic institutions have all conducted various assessments and studies of U.S. geothermal resources since 2008, though no single study has been as comprehensive in scope as the 2008 USGS study. Congressional Research Service 19 Summary and Analysis of S. 2657, the American Energy Innovation Act Other provisions in Section 1203 promote geothermal energy development on federal lands, including:     directing DOI, DOE, USDA, and other relevant federal agencies to establish national goals for geothermal energy capacity on public lands; allowing noncompetitive leasing for coproduction of geothermal to holders of oil and gas leasing permits (after meeting determination of national energy security interest); categorically excluding most geothermal test wells from certain requirements under the National Environmental Policy Act (as is currently the case for some oil and gas exploration wells); and establishing an inter-agency Geothermal Energy Permitting Coordination Program to “improve Federal permit coordination and reduce regulatory timelines.” Section 1203 would authorize $825 million for FY2021-FY2025 for geothermal research activities. Of this amount, $25 million would be for the prize competition and $5 million would be for the drilling data repository. For comparison, current law authorizes $450 million for geothermal energy research activities in FY2008-FY2012. The section separately authorizes $25 million for FY2021-FY2025 for the High Cost Region Geothermal Energy Grant Program. For comparison, current law authorizes “such sums as are necessary to carry out this section.” Section 1203 is largely identical to S. 2657, the Advanced Geothermal Innovation Leadership (AGILE) Act of 2019, as reported by ENR on December 17, 2019.65 Some of the provisions in S. 2657 are similar to provisions in H.R. 5374, the Advanced Geothermal Research and Development Act of 2019. The committee report for S. 265766 states that the bill follows many recommendations included in a 2019 DOE report, GeoVision: Harnessing the Heat Beneath Our Feet. Sec. 1204. Wind energy research and development. Section 1204 would remove existing program goals for wind energy research at DOE (which date back to the Renewable Energy and Energy Efficiency Technology Competitiveness Act of 1989, P.L. 101-218) and replace them with new goals. Use of wind energy in the United States has grown in recent years, due to a combination of state and federal policy incentives and cost declines. In 2019, wind energy generated approximately 7% of U.S. electricity.67 Wind energy’s share of electricity generation is expected to grow further in coming years. Section 1204 would establish a wind energy research program to “improve the energy efficiency, cost effectiveness, reliability, resilience, security, integration, manufacturability, and recyclability of wind energy technologies.” Some of these program goals, such as recyclability, reflect concerns that have been raised recently regarding the growing use of wind energy in the United States.68 Other program goals, such as cost effectiveness, have long been an area of research focus at DOE. 65 S. 2657 is the vehicle for floor discussion of S.Amdt. 1407, the American Energy Innovation Act. 66 U.S. Congress, Senate Committee on Energy and Natural Resources, Advanced Geothermal Innovation Leadership Act of 2019, committee print, 116th Cong., 2nd sess., January 7, 2020, S.Rept. 116-197. 67 EIA, Electric Power Monthly, February 2020. 68 For example, Chris Martin, “Wind Turbine Blades Can’t Be Recycled, So They’re Piling Up in Landfills,” Bloomberg Green, February 5, 2020. Congressional Research Service 20 Summary and Analysis of S. 2657, the American Energy Innovation Act Section 1204 would require DOE to establish (within 180 days) program targets related to nearterm (up to 2 years), mid-term (up to 7 years), and long-term (up to 15 years) challenges facing the wind industry. Section 1204 specifies that DOE should seek to advance a variety of wind energy technologies, including those located onshore, offshore, distributed, and off-grid.69 Section 1204 also specifies that DOE should prioritize research projects that are (1) located in diverse geographic regions; (2) in collaboration with Indian tribes (and affiliated organizations), territories, or freely associated states, or in economically distressed areas; (3) can be replicated in a variety of regions and climates; and (4) have the potential to increase domestic manufacturing or exports. Section 1204 would also authorize a grant program for wind technician worker training, for both onshore and offshore wind technologies. Eligible entities, including institutions of higher education, government research agencies, and tribal organizations, could purchase wind energy equipment with DOE grants for purposes of worker training. Section 1204 includes other program goals and requirements that are not discussed here. Generally, they relate to manufacturing and operating wind energy equipment. Section 1204 would authorize $600 million for FY2021-FY2025 for wind energy research activities at DOE. Section 1204 is nearly identical to S. 2660, the Wind Energy Research and Development Act of 2019, as reported by ENR on December 18, 2019. Section 1204 adds distributed and off-grid wind technologies to the set of wind energy technologies to be covered by the program. Minor text changes throughout the section reflect this expanded scope (compared to S. 2660). A related bill in the House is H.R. 3609, the Wind Energy Research and Development Act of 2019. Sec. 1205. Solar energy research and development. Section 1205 would remove existing program goals for solar energy research at DOE (which date back to a 1974 law, the Solar Energy Research, Development, and Demonstration Act, P.L. 93473) and replace them with new goals. Use of solar energy in the United States has grown in recent years, due to a combination of state and federal policy incentives and cost declines. In 2019, solar energy generated approximately 3% of U.S. electricity.70 Solar energy’s share of electricity generation is expected to grow further in coming years. Section 1205 would establish a solar energy research program at DOE to “improve the energy efficiency, cost effectiveness, reliability, resilience, security, integration, manufacturability, and recyclability of solar energy technologies.” These purposes are identical to purposes Section 1204 would give to a reauthorized DOE wind research program. Section 1205 would direct DOE’s solar research program to focus on improving solar energy technology performance (including recyclability), improving grid integration,71 reducing negative environmental impacts, promoting 69 Section 1204 does not define “distributed” or “off-grid.” Those terms generally refer to smaller technologies located within distribution systems (and therefore not connected to the bulk power transmission system), and technologies connected to neither a distribution system nor a transmission system, respectively. Distributed and off-grid technologies may be integrated into a microgrid, though that is not a requirement. 70 EIA, Electric Power Monthly, February 2020. 71 Unlike some other energy sources, solar energy is variable (i.e., sunlight is not always available for electricity generation), and that variability creates challenges for electric grid operators. These challenges, and the solutions to them, are broadly described as grid integration. For more information see CRS In Focus IF11257, Variable Renewable Energy: An Introduction, by Ashley J. Lawson. Congressional Research Service 21 Summary and Analysis of S. 2657, the American Energy Innovation Act the domestic solar industry, and promoting commercialization and export of solar energy technologies. Section 1205 would require DOE to establish (within 180 days) program targets related to nearterm (up to 2 years), mid-term (up to 7 years), and long-term (up to 15 years) challenges facing “the advancement of solar energy systems.” Section 1205 specifies that DOE should seek to advance a variety of advanced solar technologies. The text specifically mentions perovskites, a material that has received congressional attention in the 116th Congress.72 The text also specifically mentions concentrated solar power, solar heating and cooling, and other nonelectric applications for solar energy, such as in the agriculture, transportation, industrial, and fuels sectors. Section 1205 specifies priorities for solar research activities that are identical to those Section 1204 would establish for wind. Namely, section 1205 specifies that DOE should prioritize research projects that are (1) located in diverse geographic regions; (2) in collaboration with Indian tribes (and affiliated organizations), territories, or freely associated states, or in economically distressed areas; (3) can be replicated in a variety of regions and climates; and (4) have the potential to increase domestic manufacturing or exports. Section 1205 would also direct DOE to award grants for research activities related to advanced solar energy manufacturing technologies and techniques. One of the priorities for such grants would be operating in partnership with Indian tribes (and affiliated organizations), territories, or freely associated states, or in economically distressed areas. Reducing U.S. reliance on imports of solar energy equipment, particularly solar photovoltaic cells from China, has been an area of interest for the Obama and Trump Administrations, and for some Members of Congress.73 Section 1205 includes other program goals and requirements that are not discussed here. Generally, they relate to recycling and monitoring the materials used in solar energy technologies, including the country of origin of such materials. Section 1205 would authorize $1,350 million for FY2021-FY2025 for solar energy research at DOE. Section 1205 is nearly identical to S. 2668, the Solar Energy Research and Development Act of 2019, as reported by ENR on December 17, 2019. A related bill in the House is H.R. 3597, the Solar Energy Research and Development Act of 2019. Subtitle C—Energy Storage74 Electricity, as it is currently produced, is largely a commodity resource that is interchangeable with electricity from any other source. Since opportunities for the large-scale storage of electricity are few, it is essentially a just-in-time resource, produced as needed to meet the demand of electricity-consuming customers. Climate change mitigation has increased the use of renewable energy sources for electricity generation. While energy storage is seen as an enabling technology with the potential to better integrate intermittent and variable wind and solar resources, energy 72 For example, U.S. Congress, House Committee on Science, Space, and Technology, Subcommittee on Energy, Advancing the Next Generation of Solar and Wind Energy Technologies, 116th Cong., 1st sess., May 15, 2019. In lab tests, perovskite materials convert light energy to electricity more efficiently than the silicon-based materials widely used today. Perovskites, however, currently face cost, stability, and environmental challenges that prevent their commercial use. 73 For example, the United States has applied tariffs on imported solar energy equipment since 2012. Further discussion is in CRS Report R46196, Solar Energy: Frequently Asked Questions, coordinated by Ashley J. Lawson. 74 Prepared by Richard J. Campbell, Specialist in Energy Policy. Congressional Research Service 22 Summary and Analysis of S. 2657, the American Energy Innovation Act storage resources would have to be charged by low- or zero-emission or renewable sources of electricity to ensure a reduction of greenhouse gases.75 Energy storage is being increasingly investigated for its potential to provide benefits to the interstate transmission grid, and perhaps to local distribution systems and thus to retail electric customers. The ability to store energy presents an opportunity to add flexibility in how electricity is produced and used, and provides an alternative to address peak loads on the system. By using renewable electricity stored at times of low-demand, electricity saved can be used at times of high demand. In addition to providing power on demand, energy storage technologies have the potential to provide ancillary services to the electricity grid to ensure the reliability and stability of the power system, and better match generation to demand for electricity. Hydropower pumped storage (HPS), compressed air energy storage, and cryogenic energy storage are examples of technologies that store potential (or kinetic) energy. These are examples of the mostly large, monolithic systems used for energy storage today that do not store electricity directly, but provide a means of producing electricity by use of a stored medium (e.g., water or air).76 According to the Federal Energy Regulatory Commission (FERC), approximately 24 HPS systems are currently operating with a total installed capacity of over 16.5 Gigawatts. HPS is approximately 94% of existing U.S. energy storage capacity.77 Modular battery technologies generally store electrical energy in chemical media that can be converted to electricity. These technologies consist of standardized individual cells with relatively small power and voltage capacities that are typically aggregated to serve larger power loads. Lead-acid batteries and lithium ion (Li Ion) cells are the most used modular battery technologies for utility scale (i.e., projects of one megawatt or greater in capacity) applications on the electric grid. However, battery technologies, in general, can provide energy for only a few hours, and vary with regard to the time required to recharge battery systems. While Li Ion battery systems are currently the most prevalent form of modular storage, and a key technology for electric vehicles, several issues exist with system cost, materials used, and the safety of these systems. 78 Procurement of cobalt for Li Ion batteries has also been controversial due to child labor and safety concerns in many Congolese artisanal mines.79 Sec. 1301. Better energy storage technology. Section 1301 would require the Secretary of Energy to establish a program (Energy Storage System Research, Development, and Deployment) focusing on RD&D of energy storage systems designed for large-scale commercial deployment, with deployment cost targets established by the Secretary. The program would also address energy storage goals for hourly and subhourly durations required to provide reliability services to the grid, capable of daily durations (with the 75 Greenhouse gases are any gases that absorb infrared radiation in the atmosphere. There are six main greenhouse gases discussed in the context of climate change: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), and fluorinated gases—sulfur hexafluoride (SF6), hydrofluorocarbons (HFCs), and perfluorocarbons (PFCs). Carbon dioxide is the most prevalent GHG, and is produced mainly by combustion of fossil fuels. U.S. Environmental Protection Agency, Greenhouse Gas Emissions—Overview of Greenhouse Gases, April 11, 2019, https://www.epa.gov/ ghgemissions/overview-greenhouse-gases. 76 See CRS Report R45980, Electricity Storage: Applications, Issues, and Technologies, by Richard J. Campbell. 77 FERC, Pumped Storage Projects, January 31, 2020, https://www.ferc.gov/industries/hydropower/gen-info/licensing/ pump-storage.asp. 78 Ibid. 79 Antony Loewenstein, “From Blackwater to Batteries,” ForeignPolicy.com, January 25, 2019, https://foreignpolicy.com/2019/01/25/from-blackwater-to-batteries-erik-prince-congo-drc-minerals-cobalt-afghanistanmercenaries/. Congressional Research Service 23 Summary and Analysis of S. 2657, the American Energy Innovation Act capacity to discharge energy for a minimum of six hours), and a system lifetime of at least 20 years under regular operation. Other goals of the program would include the development of 20year lifetime storage systems capable of weekly or monthly durations (with the capacity to discharge energy for 10 to 100 hours, at a minimum), and the development of longer-term storage systems (with the capability to address seasonal variations in supply and demand). Among other goals, the program would focus on RD&D of distributed energy storage technologies and applications, including transportation energy storage technologies and applications, and vehicleto-grid integration. Cost-effective systems and methods for the reclamation, recycling, and disposal of energy storage materials, including lithium, cobalt, nickel, and graphite would be included in the program. New pumping and generating equipment designs would be a focus to advance HPS, and closed-loop hydropower80 systems using mines and quarries. The Energy Secretary would be required to develop a 10-year strategic plan to guide the program that would be submitted to the Senate Committee on Energy and Natural Resources, and the House Committees on Energy and Commerce and Science, Space, and Technology. The Energy Secretary would be required to enter agreements for energy storage demonstration pilot projects (Energy Storage Demonstration Projects Pilot Grant Program) with “eligible entities” that include states, Indian tribes, tribal organizations, institutions of higher learning, and electric utilities. Competitive grants would be available to the eligible entities for the demonstration projects. A joint program (Long-Duration Demonstration Initiative and Joint Program) for long-term energy storage demonstration projects would be established by DOE (through the Director of the Advanced Research Projects Agency–Energy) with DOD (through the Director of the Environmental Security Technology Certification Program (ESTCP)). Projects would be regionally diverse, with a range of technologies applied at various levels from the bulk power system to distribution systems, microgrids, and other off grid applications. The Director of ESTCP would be required to develop metrics for the program, and ensure that projects apply to a variety of conditions and environments. The Energy Secretary would be required to establish a program (Technical Planning and Assistance Program) to assist eligible entities (including electric cooperatives, municipal utilities, and investor-owned utilities) in identifying, evaluating, planning, designing, and procuring energy storage systems. Among other goals, the program would be focused on strengthening the reliability and resiliency of energy infrastructure, and reducing the cost of energy storage systems. The program would competitively award grants to eligible entities to obtain technical and planning assistance from outside experts. A report describing the progress of the program would be submitted to Congress, and be made available to the public, not less than every two years. An annual competition (Energy Storage Materials Recycling Prize) with cash prizes would be authorized for critical energy storage materials (including lithium, cobalt, nickel, and graphite) to advance recycling of these materials. FERC would be required to issue a regulation to identify the eligibility of, and process for, electric storage resources so that these resources could receive cost-recovery through FERCjurisdictional rates for energy and ancillary services.81 FERC would also be required to convene a technical conference on the potential for electric storage to improve electric system operations. 80 With closed-loop pumped hydropower systems, neither the upper reservoir nor the lower reservoir is located on a dammed stream. 81 In 2018, FERC issued its final version of Order No. 841 to remove what it saw as barriers to the participation of Congressional Research Service 24 Summary and Analysis of S. 2657, the American Energy Innovation Act Sec. 1301 is substantially similar to S. 1602, the Better Energy Storage Technology Act, as reported by ENR on October 22, 2019. Some provisions are similar to bills introduced and discussed by the ENR Subcommittee on Energy on July 9, 2019, and incorporated in to the reported version of S. 1602. These bills are S. 1593, the Promoting Grid Storage Act of 2019; and S. 2048, the Joint Long-Term Storage Act of 2019. Sec. 1302. Bureau of Reclamation pumped storage hydropower development. The Secretary of the Interior would be directed not to issue a lease of power privilege82 for a proposed HPS project unless the proposed lessee and the Tribes (identified under this section as the Confederated Tribes of the Colville Reservation, and the Spokane Tribe of Indians of the Spokane Reservation) have entered into a study plan agreement. Alternatively, the Interior Secretary or the Director of the Office of Hearings and Appeals may make a final determination for a study plan agreement. The Secretary of the Interior would be required to make an initial determination no later than 60 days after receiving the study plan that approves or rejects the study. The initial decision would be subject to an objection process. A final determination would be required no later than 120 days after an objection. If the initial determination raised no objections, it would become final. The language in Section 1302 is identical to language in S. 1751, the Bureau of Reclamation Pumped Storage Hydropower Development Act (S. 1751), as reported by ENR on October 23, 2019. Subtitle D—Carbon Capture, Utilization, and Storage83 This subtitle would expand the scope of DOE research activities related to carbon capture. Currently, DOE’s research activities focus on (1) capturing carbon dioxide (CO2) emitted when coal is combusted, for example, in a power plant; and (2) sequestering (i.e., storing) CO2 underground. This subtitle would expand that scope to also include (1) capturing CO2 emitted when natural gas is combusted, for example, in a power plant; (2) capturing CO2 emitted from industrial facilities outside the electric power sector; (3) developing new uses for coal outside the electric power sector; (4) developing new uses for CO2; and (5) developing carbon removal technologies (i.e., technologies that can remove CO2 from the atmosphere).84 Much interest in carbon capture, utilization, and storage (CCUS) comes from its potential to address climate change by preventing CO2 emissions into the atmosphere. This potential has received increasing attention, in part because of some recent analyses by prominent international electric storage resources in RTO/ISO markets. See CRS Report R45980, Electricity Storage: Applications, Issues, and Technologies, by Richard J. Campbell. 82 “A Bureau of Reclamation (Reclamation) lease of power privilege (LOPP) is a contractual right given to a nonfederal entity to use a Reclamation asset (e.g. dam or conduit) for electric power generation consistent with Reclamation project purposes. A LOPP project must not impair the efficiency of Reclamation generated power or water deliveries, jeopardize public safety, or negatively affect any other Reclamation project purpose.” Bureau of Reclamation, Hydropower Program, February 5, 2020, https://www.usbr.gov/power/LOPP/. 83 Prepared by Ashley J. Lawson, Analyst in Energy Policy. 84 Carbon removal technologies are distinct from carbon capture technologies in two key ways. First, carbon capture technologies prevent the release of CO2 to the atmosphere. Carbon removal technologies remove CO2 from the atmosphere even if that CO2 was released many years ago. Second, carbon capture technologies are located at the site of CO2 emissions, for example, a power plant. Carbon removal may theoretically occur anywhere, although some carbon removal options have significant constraints on their location. For example, forest management for purposes of carbon removal can only occur in locations suitable for forest growth. Congressional Research Service 25 Summary and Analysis of S. 2657, the American Energy Innovation Act research organizations.85 Some interest in CCUS also comes from supporters of fossil fuel industries, especially the coal industry. Many supporters see CCUS as a means of enhancing fossil fuels’ commercial competitiveness (domestically and internationally) in the face of increasing numbers of policies to restrict greenhouse gas emissions and other market pressures. On the other hand, some advocates for climate change policies oppose carbon capture. Those advocates may have other concerns with the production and use of fossil fuel (e.g., environmental impacts of coal mining or oil and gas development), and they may prefer climate change policies that exclusively promote renewable energy sources. Likewise, much interest in carbon removal comes from its potential to address climate change, and this potential has received increasing attention.86 Some see it as a more expensive option to address climate change, compared to other options such as increased energy efficiency or increased use of renewable energy sources. Some also see carbon removal as unable to address other concerns over fossil fuel use, such as environmental or health concerns. The provisions of subtitle D are broadly similar to provisions in S. 1201, the Enhancing Fossil Fuel Energy Carbon Technology (EFFECT) Act of 2019, as reported by ENR on September 24, 2019. Specific comparisons are discussed in the context of individual sections. In general, authorizations of appropriations are one year earlier in the EFFECT Act than in Subtitle D, reflecting the different dates the legislation was introduced. Sec. 1401. Fossil energy. DOE’s Office of Fossil Energy (FE) supports activities related to coal, natural gas, and petroleum. Current law directs FE to “carry out research, development, demonstration, and commercial application programs” in order to improve “the efficiency, effectiveness, and environmental performance of fossil energy production, upgrading, conversion, and consumption.”87 Section 1401 would expand the objectives for FE programs. The proposed new objectives all focus on various aspects of CCUS and carbon removal, and are consistent with the new research programs that would be added for CCUS and carbon removal, as described in the next four sections. Sec. 1402. Establishment of coal and natural gas technology program. Current law directs DOE to “conduct a program of technology research, development, demonstration, and commercial application for coal and power systems.”88 Section 1402 would replace the current “coal and related technologies program” at DOE with a “coal and natural gas technology program.” The new program would focus on technologies related to the use of coal and natural gas, especially CCUS technologies. Section 1402 would require DOE carry out activities in four stages of technology innovation: R&D, large-scale pilot projects, demonstration projects, and front-end engineering and design. The section also provides considerations DOE 85 For example, Intergovernmental Panel on Climate Change (IPCC), Global Warming of 1.5°C, 2018 examined scenarios that could limit global warming to no more than 1.5°C above pre-industrial temperatures by 2100. Several of those scenarios included widespread use of carbon capture and carbon removal technologies. International Energy Agency, Exploring Clean Energy Pathways: The Role of CO2 Storage, 2019 similarly studied future energy scenarios and found that scenarios with relatively high amounts of carbon capture reduced emissions at lower costs compared to scenarios with lower amounts of carbon capture. 86 For example, Energy Futures Initiative, Clearing the Air: A Federal RD&D Initiative and Management Plan for Carbon Dioxide Removal Technologies, 2019. 87 42 U.S.C. §16291(a). 88 42 U.S.C. §16292. Congressional Research Service 26 Summary and Analysis of S. 2657, the American Energy Innovation Act should take into account when developing program goals and objectives, and provides additional requirements for the demonstration program it establishes. No deadlines are specified in Section 1402 for when demonstration carbon capture facilities should be operational. Nor does the section specify how CO2 from demonstration facilities should be stored or whether demonstration facilities should also include carbon utilization options. One potential use of captured CO2 is for a process called enhanced oil recovery (EOR), whereby CO2 is injected into aging oil wells. Some of the injected CO2 remains stored underground, and additional oil is produced. Debate around EOR focuses on the environmental and human health impacts associated with oil production. Oil producers have used EOR for many decades with CO2 from natural sources, though use of CO2 captured from power plants is relatively new. Section 1402 would require consultation within DOE and with interested entities, including coal and natural gas producers and consumers, organizations that promote the use of coal and natural gas, environmental organizations, organizations representing workers, and organizations representing consumers. Additionally, the section would require DOE to undertake international collaborations, submit a report to Congress on the program goals and objectives, and regularly report to Congress on DOE’s progress in achieving program goals and objectives. The section authorizes appropriations for four or five years, depending on the component of the program.     R&D: a total of $910 million for FY2021-FY2025. Large-scale pilot projects: a total of $1,488 million for FY2021-F2025. Demonstration projects: a total of $1,700 million for FY2021-FY2025. Front-end engineering and design programs: a total of $200 million for FY2021FY2024. Much of the text of Section 1402 is identical to S. 1201, the EFFECT Act of 2019, as reported by ENR on September 24, 2019. Some of the provisions in section 1402 also mirror provisions in S. 1685, the Launching Energy Advancement and Development through Innovations for Natural Gas Act of 2019, as reported by ENR on September 25, 2019. A few text differences between Section 1402 and the EFFECT Act would cause minimal differences in implementation. For example, the EFFECT Act refers to “plants” in several places while Section 1402 refers to “electric generation facilities” instead. The term “electric generation facilities” is more precise because a single power plant can have multiple generation facilities (i.e., the machine and associated equipment that produce electricity). Some text differences, though, might lead to differences in implementation. Section 1402 includes requirements for demonstration projects that the EFFECT Act does not have. Specifically, the requirements that at least two of the five demonstration projects be at coal electric generation facilities and at least two be at natural gas electric generation facilities. This requirement would limit DOE’s flexibility in choosing demonstration projects. It would also ensure that demonstration projects use different energy sources. The concept of demonstration projects for CCUS on natural gas electric generation facilities mirrors that in S. 1685. One provision in that bill would establish a DOE demonstration program to fund at least three CCUS projects on natural gas electric generation facilities. Congressional Research Service 27 Summary and Analysis of S. 2657, the American Energy Innovation Act Section 1402 also adds carbon capture for natural gas reformers (which can produce hydrogen from natural gas) to the list of considerations for program goals and objectives.89 The EFFECT Act does mention hydrogen production as a desirable goal, but it does not specify any particular type of hydrogen production pathway. Sec. 1403. Carbon storage validation and testing. Section 1403 would amend current law regarding DOE’s CCUS research program. Current law established a CCUS research program (to last 10 years, beginning in 2005) for technologies that could be used by facilities using coal. Section 1403 would modify the program replacing the existing Large-Scale Carbon Dioxide Sequestration Testing program with a new Carbon Storage Validation and Testing program. The draft would redefine “large-scale carbon sequestration” as a project demonstrating the ability to inject and sequester CO2 into geologic formations with a “goal of sequestering not less than 50 million metric tons … over a 10-year period.” Currently, “large-scale” means more than one million tons of CO2 “from industrial sources annually or a scale that demonstrates the ability to inject and sequester several million metric tons of industrial source carbon dioxide for a large number of years.”90 Section 1403 would further establish a new research program for carbon storage focused on assessing U.S. capacity for geological sequestration, developing monitoring tools, evaluating health and safety risks, and related topics. Regarding U.S. capacity for geological sequestration, the amendment specifies eight onshore and offshore geologic settings to be included in the assessment. The carbon storage research program would also include a demonstration program for large-scale carbon sequestration projects (using the new definition of large-scale). Existing regional carbon sequestration partnerships would be eligible to receive funding under the new demonstration program. The National Energy Technology Laboratory would be tasked with acting as a “clearinghouse” for information related to carbon storage demonstration projects. DOE would also be allowed to transition demonstration projects to “integrated commercial storage complexes.” Such transitions would be aimed at identifying storage sites capable of accepting “large volumes of carbon dioxide” for “commercial contracts” and improving understanding of “technical and commercial viability” of geologic storage. For DOE’s CCUS research program, Section 1403 would authorize a total of $580.192 million for FY2021-FY2024. For comparison, current law authorizes $1,200 million for FY2008FY2012.91 Much of the text of Section 1403 is identical to S. 1201, the EFFECT Act of 2019, as reported by the ENR on September 24, 2019. One key difference is that the definition of “large-scale carbon sequestration” is more specific in Section 1403 than in the EFFECT Act (and both definitions are different than current law). Section 1403 defines large-scale carbon sequestration as that with a goal of sequestering at least 50 million metric tons of carbon dioxide over a 10-year period. The EFFECT Act’s definition, though, is the ability to sequester “several million metric tons of carbon dioxide for not less than a 10-year period.” Another difference is that Section 1403 would not require a report on carbon dioxide capture contracting authority that the EFFECT Act would require. The EFFECT Act would require a 89 Section 1402 refers to “technologies for the capture of carbon dioxide produced during the production of hydrogen from natural gas.” This hydrogen production process is generally called natural gas reforming. Steam methane reforming is a commonly cited example of natural gas reforming. 90 42 U.S.C. §16293(c)(3)(D). 91 42 U.S.C. §16293(d). Congressional Research Service 28 Summary and Analysis of S. 2657, the American Energy Innovation Act report assessing options for the federal government to contract with power plants equipped with CCUS. The report would also identify costs and benefits of such options. Sec. 1404. Carbon utilization program. Section 1404 would establish a new DOE research program focused on carbon utilization. The new program would:  assess and monitor potential lifecycle changes in greenhouse gas emissions and “other environmental safety indicators” (which are not defined) associated with EOR;92  identify and assess novel uses for carbon, such as converting carbon and carbon dioxide to industrial products; identify and assess carbon capture technologies for industrial systems; and identify and assess alternative uses for raw coal and processed coal products.   Section 1404 calls for new two-year demonstration programs to “accelerate the commercial deployment of coal-carbon products.” The demonstration programs are to be located “in each of the 2 major coal-producing regions of the United States.” The section does not define “coalcarbon products.”93 The section also calls for a study within 180 days by the National Academies of Sciences, Engineering, and Medicine (NAS) assessing “barriers and opportunities relating to commercializing carbon, coal-derived carbon, and carbon dioxide in the United States.” This section would combine research activities into alternative (i.e., non-power) uses for coal and uses for CO2 into a single program. Likewise, the NAS study that the section would require is to study commercialization and other challenges facing both coal-derived carbon products and CO2. Generally, these two industries have little overlap. In other words, research activities in coalderived carbon products are not likely to benefit participants in the CO2 industry (including CO2 producers like power plants), and vice versa. Section 1404 does not specify how the proposed carbon utilization program’s R&D portfolio should be divided between these areas, though the proposed demonstration program is to be solely focused on coal-carbon products. Section 1404 would promote research activities in carbon capture for industrial facilities. Section 1402 also would promote research activities in carbon capture for industrial facilities. Neither section specifies many details of such research activities, so it is unclear from the text how much program overlap might occur. Section 1404 would authorize a total of approximately $158 million over FY2021-FY2025 for the carbon utilization program. Much of the text of Section 1404 is identical to S. 1201, the EFFECT Act of 2019, as reported by ENR on September 24, 2019. A key difference is that Section 1404 would require demonstration programs “to accelerate the commercial deployment of coal-carbon products,” as described in the section summary above. The EFFECT Act does not include such a program. 92 Enhanced oil recovery (EOR) is discussed in “Section 1402.” Briefly, EOR is a process whereby CO 2 is injected into oil wells in order to increase oil production. The injected CO2 remains stored underground. 93 Many products can be made from coal (and its component parts), including carbon fibers, medical sensors, and fertilizers. Historic markets for these products, and options to accelerate U.S. manufacturing of these products, are discussed in National Coal Council, Coal in a New Carbon Age: Powering a Wave of Innovation in Advanced Products and Manufacturing, May 2019. The National Coal Council serves as an advisory group to DOE. DOE requested a study by the National Coal Council on “coal to products” in August 2018. Congressional Research Service 29 Summary and Analysis of S. 2657, the American Energy Innovation Act Section 1404 would authorize appropriat [Text truncated at 120,000 characters. The full text is on the page linked above.] --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/crs%3AR46372. Public record. Not legal advice.