Chief Sponsor: Lincoln Fillmore

House Sponsor: Timothy D. Hawkes


9     General Description:
10          This bill enacts the Energy Storage Innovation, Research, and Grant Program Act.
11     Highlighted Provisions:
12          This bill:
13          ▸     creates a grant program to advance energy storage technology and use;
14          ▸     requires the Office of Energy Development to administer the program and issue
15     grants according to the terms of the program; and
16          ▸     grants rulemaking authority to the Office of Energy Development.
17     Money Appropriated in this Bill:
18          This bill appropriates in fiscal year 2021:
19          ▸     to the Governor's Office of Energy Development - Office of Energy Development -
20     as a one-time appropriation:
21               •     from the General Fund, One-time, $5,000,000.
22     Other Special Clauses:
23          None
24     Utah Code Sections Affected:
25     ENACTS:
26          63M-4-801, Utah Code Annotated 1953
27          63M-4-802, Utah Code Annotated 1953

28          63M-4-803, Utah Code Annotated 1953
29          63M-4-804, Utah Code Annotated 1953

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

34          63M-4-801. Title.
35          This part is known as the "Energy Storage Innovation, Research, and Grant Program
36     Act."
37          Section 2. Section 63M-4-802 is enacted to read:
38          63M-4-802. Definitions.
39          As used in this part:
40          (1) "Agreement" means a contract entered into between the office and the grantee
41     stating the terms and conditions for use of funds approved by the office.
42          (2) "Energy storage" means the storage of energy that is generated by mechanical,
43     chemical, thermal, or photovoltaic means for use at a later time.
44          (3) "Grantee" means a person, company, research organization, or other qualifying
45     entity that has been approved to receive state funding provided under this part.
46          Section 3. Section 63M-4-803 is enacted to read:
47          63M-4-803. Office duties.
48          (1) The office shall establish a grant program that:
49          (a) is designed to:
50          (i) advance the development and deployment of energy storage in the state;
51          (ii) facilitate the transition of energy storage into the marketplace;
52          (iii) improve emergency preparedness and resiliency; or
53          (iv) enhance job creation in the state's energy sector; and
54          (b) offers one or more grants to a person, company, research organization, or other
55     qualifying entity that:
56          (i) submits a grant proposal to the office; and
57          (ii) meets the qualifying criteria described in this section.
58          (2) The office shall award grants for nonresidential projects based on the following

59     considerations:
60          (a) the technical merit of the energy storage proposal and any commercialization plan;
61          (b) the level of matching funds from private and federal sources;
62          (c) the potential for job creation and economic development in the state;
63          (d) the benefit to electric customers; and
64          (e) the potential for the development of innovative technology that may benefit electric
65     customers.
66          (3) To support the rapid deployment and commercialization of energy storage
67     technologies throughout the state, the office shall award grants for residential energy storage
68     projects:
69          (a) on a first-come, first-served basis;
70          (b) proposed by residential grantees, including individual residents, to cover the cost of
71     purchasing and installing, at the home of a residential grantee, energy storage equipment that
72     uses any feasible technology; and
73          (c) that will provide an ability for all parties to review available, aggregated data
74     obtained from this grant program to promote improvements and efficiencies in the delivery of
75     electric service.
76          (4) The office shall award grants of no more than 50% of the amount appropriated for
77     residential deployment of energy storage.
78          (5) A grant may not exceed the lesser of:
79          (a) 20% of the amount required for a proposal; and
80          (b) (i) $7,500 for a residential proposal; or
81          (ii) $100,000 for a nonresidential proposal.
82          (6) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
83     office may make rules to implement the grant program.
84          Section 4. Section 63M-4-804 is enacted to read:
85          63M-4-804. Grant administration.
86          (1) The office shall administer the grants issued under this part.
87          (2) (a) The office shall enter into an agreement with a grantee for disbursement of
88     funds, including the terms, conditions, and responsibilities that the grantee will be subject to in
89     receiving and spending the grant funds.

90          (b) Subject to the agreement, the office may require a grantee to return funds if:
91          (i) the grantee fails to comply with any terms, conditions, and responsibilities of the
92     agreement; or
93          (ii) the grantee substantially changes the plans to develop and deploy the energy
94     storage proposal approved for funding by the office.
95          (3) The office shall review the activities and progress of grant recipients on a regular
96     basis and grantees shall provide an annual report on achievement of goals and timelines
97     included in the application and agreement.
98          (4) The office may impose an application fee to offset the costs of administering the
99     grants awarded under this part.
100          (5) The office shall provide an annual report to the Public Utilities, Energy, and
101     Technology Interim Committee on the grants awarded from the Energy Storage Innovation and
102     Research Program under this part.
103          Section 5. Appropriation.
104          The following sums of money are appropriated for the fiscal year beginning July 1,
105     2020, and ending June 30, 2021. These are additions to amounts previously appropriated for
106     fiscal year 2021. Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures
107     Act, the Legislature appropriates the following sums of money from the funds or accounts
108     indicated for the use and support of the government of the state of Utah.
109     ITEM 1
110          To the Governor's Office of Energy Development - Office of Energy Development
111               From General Fund, One-time

112               Schedule of Programs:
113                    Energy Storage Innovation, Research, and Grant Program
114                                                       $5,000,000
115          Under Section 63J-1-603, the Legislature intends that these funds not lapse at the close
116     of fiscal year 2021. The use of any nonlapsing balances is limited to the awarding of grants
117     under the Energy Storage Innovation, Research, and Grant Program.