Title 42, The Public Health and WelfareRelease 119-110

§17233 Energy Storage Technology and Microgrid Assistance Program

Title 42 › CHAPTER 152 — ENERGY INDEPENDENCE AND SECURITY › SUBCHAPTER V — ACCELERATED RESEARCH AND DEVELOPMENT › Part D — Energy Storage for Transportation and Electric Power › § 17233

Last updated Sep 22, 2026|Official source

Summary

The Secretary of Energy must create a program within 180 days after December 27, 2020 to give grants, offer technical help, and share information about energy storage and microgrid projects that use renewable energy. Eligible groups are rural electric cooperatives, state or local agencies that sell or use electricity, and nonprofits that work with at least six of those groups. Energy storage examples include smart water heaters, heating or cooling systems, electric vehicles, hydrogen made for transport or industry, and other storage technologies. A microgrid is a small local electric grid that can run on its own. The program can make cooperative agreements with eligible groups and give grants to study, design, test, and show projects. Grants can pay for feasibility studies, engineering, cost-benefit analyses, planning, removing barriers (like finance, contracts, siting, and permits), buying and installing demo equipment, and getting expert help. Grant recipients must run a local public awareness campaign, report project results and savings to the public, and share tools that help other rural co-ops. Grants follow the cost-sharing rule in section 16352 of this title. The Secretary can provide technical help on finding projects, technical and economic features, financing, permitting, software, and reliability benefits, and can hire outside experts. Congress authorized $15,000,000 each year for fiscal years 2021–2025, with up to 5% each year for admin.

Full Legal Text

Title 42, §17233

The Public Health and Welfare, Source: USLM XML via OLRC

(a)Definitions
In this section: (1) Eligible entity
(2)Energy storage technology
The term “energy storage technology” includes grid-enabled water heaters, building heating or cooling systems, electric vehicles, the production of hydrogen for transportation or industrial use, or other technologies that store energy.
(3)Microgrid
The term “microgrid” means a localized grid that operates autonomously regardless of whether the grid can operate in connection with another grid.
(4)Renewable energy source
The term “renewable energy source” has the meaning given the term in section 918c(a) of title 7.
(5)Rural electric cooperative
The term “rural electric cooperative” means an electric cooperative (as defined in section 796 of title 16) that sells electric energy to persons in rural areas.
(6)Secretary
The term “Secretary” means the Secretary of Energy.
(b)In general
Not later than 180 days after December 27, 2020, the Secretary shall establish a program under which the Secretary shall—
(1)provide grants to eligible entities under subsection (d);
(2)provide technical assistance to eligible entities under subsection (e); and
(3)disseminate information to eligible entities on—
(A)the activities described in subsections (d)(1) and (e); and
(B)potential and existing energy storage technology and microgrid projects.
(c)Cooperative agreement
The Secretary may enter into a cooperative agreement with an eligible entity to carry out subsection (b).
(d)Grants
(1)In general
The Secretary may award grants to eligible entities for identifying, evaluating, designing, and demonstrating energy storage technology and microgrid projects that utilize energy from renewable energy sources.
(2)Application
To be eligible to receive a grant under paragraph (1), an eligible entity shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require.
(3)Use of grant
An eligible entity that receives a grant under paragraph (1)—
(A)shall use the grant—
(i)to conduct feasibility studies to assess the potential for implementation or improvement of energy storage technology or microgrid projects;
(ii)to analyze and implement strategies to overcome barriers to energy storage technology or microgrid project implementation, including financial, contracting, siting, and permitting barriers;
(iii)to conduct detailed engineering of energy storage technology or microgrid projects;
(iv)to perform a cost-benefit analysis with respect to an energy storage technology or microgrid project;
(v)to plan for both the short- and long-term inclusion of energy storage technology or microgrid projects into the future development plans of the eligible entity; or
(vi)to purchase and install necessary equipment, materials, and supplies for demonstration of emerging technologies; and
(B)may use the grant to obtain technical assistance from experts in carrying out the activities described in subparagraph (A).
(4)Condition
As a condition of receiving a grant under paragraph (1), an eligible entity shall—
(A)implement a public awareness campaign, in coordination with the Secretary, about the project implemented under the grant in the community in which the eligible entity is located, which campaign shall include providing projected environmental benefits achieved under the project, where to find more information about the program established under this section, and any other information the Secretary determines necessary;
(B)submit to the Secretary, and make available to the public, a report that describes—
(i)any energy cost savings and environmental benefits achieved under the project; and
(ii)the results of the project, including quantitative assessments to the extent practicable, associated with each activity described in paragraph (3)(A); and
(C)create and disseminate tools and resources that will benefit other rural electric cooperatives, which may include cost calculators, guidebooks, handbooks, templates, and training courses.
(5)Cost-share
Activities under this subsection shall be subject to the cost-sharing requirements of section 16352 of this title.
(e)Technical assistance
(1)In general
In carrying out the program established under subsection (b), the Secretary may provide eligible entities with technical assistance relating to—
(A)identifying opportunities for energy storage technology and microgrid projects;
(B)understanding the technical and economic characteristics of energy storage technology or microgrid projects;
(C)understanding financing alternatives;
(D)permitting and siting issues;
(E)obtaining case studies of similar and successful energy storage technology or microgrid projects;
(F)reviewing and obtaining computer software for assessment, design, and operation and maintenance of energy storage technology or microgrid systems; and
(G)understanding and utilizing the reliability and resiliency benefits of energy storage technology and microgrid projects.
(2)External contracts
In carrying out paragraph (1), the Secretary may enter into contracts with third-party experts, including engineering, finance, and insurance experts, to provide technical assistance to eligible entities relating to the activities described in such paragraph, or other relevant activities, as determined by the Secretary.
(f)Authorization of appropriations
(1)In general
There is authorized to be appropriated to carry out this section $15,000,000 for each of fiscal years 2021 through 2025.
(2)Administrative costs
Not more than 5 percent of the amount appropriated under paragraph (1) for each fiscal year shall be used for administrative expenses.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Codification Section was enacted as part of the Energy Act of 2020, and not as part of the Energy Independence and Security Act of 2007 which comprises this chapter.

Reference

Citations & Metadata

Citation

42 U.S.C. § 17233

Title 42, The Public Health and Welfare

Last Updated

Sep 22, 2026

Release point: 119-110