Senator Lincoln Fillmore proposes the following substitute bill:





Chief Sponsor: Lincoln Fillmore

House Sponsor: Mike Winder


9     General Description:
10          This bill creates the Energy Storage Innovation, Research, and Grant Program.
11     Highlighted Provisions:
12          This bill:
13          ▸     creates the Energy Storage Innovation, Research, and Grant Program to provide
14     grants to accomplish the goals of the program;
15          ▸     defines terms;
16          ▸     requires the Office of Energy Development to administer the program and issue
17     grants according to the terms of the program; and
18          ▸     grants rulemaking authority to the Office of Energy Development.
19     Money Appropriated in this Bill:
20          This bill appropriates in fiscal year 2020:
21          ▸     to the Governor's Office of Energy Development - Office of Energy Development -
22     as a one-time appropriation:
23               •     from the General Fund, One-time, $6,500,000.
24     Other Special Clauses:
25          None

26     Utah Code Sections Affected:
27     ENACTS:
28          63M-4-801, Utah Code Annotated 1953
29          63M-4-802, Utah Code Annotated 1953
30          63M-4-803, Utah Code Annotated 1953
31          63M-4-804, Utah Code Annotated 1953

33     Be it enacted by the Legislature of the state of Utah:
34          Section 1. Section 63M-4-801 is enacted to read:
Part 8. Energy Storage Innovation, Research, and Grant Program Act

36          63M-4-801. Title.
37          This part is known as the "Energy Storage Innovation, Research, and Grant Program
38     Act."
39          Section 2. Section 63M-4-802 is enacted to read:
40          63M-4-802. Definitions.
41          As used in this part:
42          (1) "Agreement" means a contract entered into between the office and the grantee
43     stating the terms and conditions for use of funds approved by the Office of Energy
44     Development.
45          (2) "Energy storage" means being able to store energy that is generated by mechanical,
46     chemical, thermal, or photovoltaic means at one time for use at a later time.
47          (3) "Grantee" means a person, company, research organization, or other qualifying
48     entity that has been approved to receive state funding provided under this part.
49          (4) "Office" means the Office of Energy Development created in Section 63M-4-401.
50          Section 3. Section 63M-4-803 is enacted to read:
51          63M-4-803. Office duties.
52          (1) The office shall establish a grant program that:
53          (a) is designed to:
54          (i) advance the development and deployment of energy storage in the state;
55          (ii) facilitate the transition of energy storage into the marketplace;
56          (iii) improve emergency preparedness and resiliency; or

57          (iv) enhance job creation in Utah's energy sector; and
58          (b) offers one or more grants to a person, company, research organization, or other
59     qualifying entity that:
60          (i) submits a grant proposal to the office; and
61          (ii) meets the qualifying criteria described in this section.
62          (2) The office shall award grants for nonresidential projects based on the following
63     considerations:
64          (a) the technical merit of the energy storage proposal and any commercialization plan;
65          (b) the level of matching funds from private and federal sources;
66          (c) the potential for job creation and economic development in the state;
67          (d) the benefit to electric customers; and
68          (e) the potential for the development of innovative technology that may benefit electric
69     customers.
70          (3) To support the rapid deployment and commercialization of energy storage
71     technologies throughout the state, the office shall award grants for residential energy storage
72     projects:
73          (a) on a first-come, first-served basis;
74          (b) proposed by residential grantees, including individual residents, to cover the costs
75     of purchasing and installing energy storage equipment at their home that uses any feasible
76     technology; and
77          (c) that will provide an ability for all parties to review available, aggregated data
78     obtained from this grant program to promote improvements and efficiencies in the delivery of
79     electric service.
80          (4) The office shall award grants of no more than 50% of the amount appropriated for
81     residential deployment of energy storage.
82          (5) Except as provided in Subsection (6), no grant may exceed the smaller of 20% of
83     the amount required for any proposal or $7,500 for a residential proposal or $100,000 for a
84     nonresidential proposal.
85          (6) A one-time allocation of $1,500,000 dollars is available for the office to award one
86     or more grants annually, up to $250,000 per grantee, after the review and approval of the
87     governor, to the grantee that makes the most innovative proposal based on the potential

88     benefits to the public and to the electrical system.
89          (7) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
90     office may make rules to implement the grant program.
91          Section 4. Section 63M-4-804 is enacted to read:
92          63M-4-804. Grant administration.
93          (1) The office shall administer the grants issued under this part.
94          (2) (a) The office shall enter into an agreement with a grantee for disbursement of
95     funds, including the terms, conditions, and responsibilities that the grantee will be subject to in
96     receiving and spending the grant funds.
97          (b) Subject to the agreement, the office may require a grantee to return funds if:
98          (i) the grantee fails to comply with any terms, conditions, and responsibilities of the
99     agreement; or
100          (ii) the grantee substantially changes the plans to develop and deploy the energy
101     storage proposal approved for funding by the office.
102          (3) The office shall review the activities and progress of grant recipients on a regular
103     basis and grantees shall provide an annual report on achievement of goals and timelines
104     included in the application and agreement.
105          (4) The office may impose an application fee to offset the costs of administering the
106     grants awarded under this part.
107          (5) The office shall provide an annual report to the Public Utilities, Energy, and
108     Technology Interim Committee on the grants awarded from the Energy Storage Innovation and
109     Research Program under this part.
110          Section 5. Appropriation.
111          The following sums of money are appropriated for the fiscal year beginning July 1,
112     2019, and ending June 30, 2020. These are additions to amounts previously appropriated for
113     fiscal year 2020. Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures
114     Act, the Legislature appropriates the following sums of money from the funds or accounts
115     indicated for the use and support of the government of the state of Utah.
116     ITEM 1
117          To the Governor's Office of Energy Development - Office of Energy Development
118               From General Fund, One-time

119               Schedule of Programs:
120                    Energy Storage Innovation, Research, and Grant Program
121                                                       $6,500,000
122          Under Section 63J-1-603, the Legislature intends that these funds not lapse at the close
123     of fiscal year 2020. The use of any nonlapsing balances is limited to the awarding of grants
124     under the Energy Storage Innovation, Research, and Grant Program.