[Senate Report 116-199]
[From the U.S. Government Publishing Office]
Calendar No. 360
116th Congress } { Report
SENATE
2d Session } { 116-199
======================================================================
INTEGRATED ENERGY SYSTEMS ACT
_______
January 7, 2020.--Ordered to be printed
_______
Ms. Murkowski, from the Committee on Energy and Natural
Resources, submitted the following
R E P O R T
[To accompany S. 2702]
The Committee on Energy and Natural Resources, to which was
referred the bill (S. 2702) to require the Secretary of Energy
to establish an integrated energy systems research,
development, and demonstration program, and for other purposes,
having considered the same, reports favorably thereon with an
amendment in the nature of a substitute and recommends that the
bill, as amended, do pass.
AMENDMENT
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Integrated Energy Systems Act of
2019''.
SEC. 2. INTEGRATED ENERGY SYSTEMS PROGRAM.
(a) Definitions.--In this section:
(1) Program.--The term ``program'' means the Integrated
Energy Systems Program established under subsection (b)(1).
(2) Secretary.--The term ``Secretary'' means the Secretary of
Energy.
(b) Establishment.--
(1) In general.--The Secretary shall establish a program, to
be known as the ``Integrated Energy Systems Program''--
(A) to maximize energy production and efficiency;
(B) to develop energy systems involving the
integration of nuclear energy with renewable energy,
fossil energy, and energy storage; and
(C) to expand the use of emissions-reducing energy
technologies into nonelectric sectors to achieve
significant reductions in environmental emissions.
(2) Program administration; partners.--The program shall be
carried out by the Undersecretary of Energy, in partnership
with--
(A) relevant offices within the Department of Energy;
(B) National Laboratories;
(C) institutions of higher education; and
(D) the private sector.
(3) Goals and milestones.--The Secretary shall establish
quantitative goals and milestones for the program.
(c) Research Areas.--Research areas under the program may include--
(1) technology innovation to further the expansion of
emissions-reducing energy technologies to accommodate a modern,
resilient grid system by--
(A) effectively leveraging multiple energy sources;
(B) enhancing and streamlining engineering design;
(C) carrying out process demonstrations to optimize
performance; and
(D) streamlining regulatory review;
(2) advanced power cycles, energy extraction, and processing
of complex hydrocarbons to produce high-value chemicals;
(3) efficient use of emissions-reducing energy technologies
for hydrogen production to support transportation and
industrial needs;
(4) enhancement and acceleration of domestic manufacturing
and desalinization technologies and processes by optimally
using clean energy sources;
(5) more effective thermal energy use, transport, and
storage;
(6) the demonstration of nuclear energy delivery for--
(A) the production of chemicals, metals, and fuels;
(B) the capture, use, and storage of carbon;
(C) renewable integration with an integrated energy
system; and
(D) conversion of carbon feedstock, such as coal,
biomass, natural gas, and refuse waste, to higher value
nonelectric commodities;
(7) the development of new analysis capabilities to identify
the best ways--
(A) to leverage multiple energy sources in a given
region; and
(B) to quantify the benefits of integrated energy
systems; and
(8) any other area that, as determined by the Secretary,
meets the purpose and goals of the program.
(d) Grants.--The Secretary may award grants under the program to
support the goals of the program.
SEC. 3. REPORT ON DUPLICATIVE PROGRAMS.
Not later than 1 year after the date of enactment of this Act, and
annually thereafter, the Secretary shall submit to Congress a report
identifying any program that is duplicative of the program established
under section 2(b)(1).
PURPOSE
The purpose of S. 2702 is to require the Secretary of
Energy (Secretary) to establish an integrated energy systems
research, development, and demonstration program (Program).
BACKGROUND AND NEED
Nuclear energy provides 19 percent of the electricity in
the United States, and over half of the zero-emission
electricity in the country. This electricity is provided by 96
nuclear reactors, all of which were licensed to start
construction over 40 years ago, and in many cases over 50 years
ago. All were designed to produce baseload electricity. The
electricity system has changed dramatically since their
construction, with electricity prices now significantly lower
and with an increasingly higher value placed on operational
flexibility.
Nine reactors have shut down since 2013, primarily because
of economic competition from natural gas and renewable energy
sources and maintenance challenges. There are now 96 commercial
reactors operating in the U.S. with only two new units
currently under construction and an additional eight units
scheduled to be closed by 2025. The need to modernize the
nuclear energy industry has led to a focus on nonelectric
applications of nuclear energy, as well as ways to better
integrate nuclear technologies with variable energy sources
such as renewable energy.
The Department of Energy (DOE) conducts a wide variety of
research and development (R&D) into nuclear technologies
through the Office of Nuclear Energy, including advanced
reactors, fuel cycle development, and Nuclear Energy Enabling
Technologies (NEET). Within NEET, DOE has supported a program
on hybrid energy systems R&D in coordination with the Office of
Energy Efficiency and Renewable Energy (EERE). That program
focuses on the integration of nuclear energy with renewables,
fossil energy, and energy storage, as well as industrial energy
options.
Two of the program's major focuses to date have been the
Joint Use Modular Plant (JUMP) program, and the investigation
of producing hydrogen from nuclear energy. The JUMP program is
a plant to utilize one module at the NuScale small modular
reactor facility for research into integrated energy systems
and nonelectric applications of nuclear energy. The NuScale
plant is expected to begin operations in 2026. The other
hydrogen initiative has been focused on demonstrating
production utilizing existing commercial nuclear power plants.
So far this year there have been awards made from both the
Offices of Nuclear Energy and EERE to support R&D at four
nuclear plants.
The Integrated Energy Systems Act would establish a
dedicated Program within the DOE to accelerate the development
of new integrated energy systems among the applied energy
offices.
LEGISLATIVE HISTORY
S. 2702 was introduced by Senators Risch and Manchin on
October 24, 2019. The Subcommittee on Energy held a hearing on
S. 2702 on November 6, 2019.
The Senate Committee on Energy and Natural Resources met in
open business session on November 19, 2019, and ordered S. 2702
favorably reported, as amended.
COMMITTEE RECOMMENDATION
The Senate Committee on Energy and Natural Resources, in
open business session on November 19, 2019, by a majority voice
vote of a quorum present, recommends that the Senate pass S.
2702, if amended as described herein. Senator Lee asked to be
recorded as voting no.
COMMITTEE AMENDMENTS
During its consideration of S. 2702, the Committee adopted
a substitute amendment as amended by an amendment offered by
Senator Lee. The substitute amendment removes the Program from
the Office of Nuclear Energy in section 2. The substitute
amendment further modifies the Program's purposes in section
2(b) to delete paragraphs (1)(B) and (1)(D) and add a new
paragraph (1)(B) to include ``to develop energy systems
involving the integration of nuclear energy with renewable
energy, fossil energy, and energy storage'' as a purpose.
The substitute amendment removes the enumerated list of DOE
offices from section 2(b)(2) and changes the Program's
leadership from the Office of Nuclear Energy to the
Undersecretary of Energy. It also deletes the specified Program
goals in section 2(b)(3) and replaces them with a general
directive to the Secretary to ``establish quantitative goals
and milestones'' for the Program.
The substitute amendment renames the research goals in
section 2(c) as research areas, and modifies those research
areas. The substitute amendment further deletes section 2(e)
which authorized appropriations and makes a number of technical
and clarifying changes to the bill.
The amendment offered by Senator Lee to the substitute
amendment adds a new section 3 to require an annual report
identifying programs at DOE that are duplicative of the
Program.
SECTION-BY-SECTION ANALYSIS
Section 1. Short title
Section 1 sets forth the bill's short title.
Section 2. Integrated Energy Systems Program
Section 2(a) sets forth relevant definitions.
Subsection (b) establishes an integrated energy systems
program at DOE in order to meet several stated objectives. The
subsection directs that the Program be carried out by the
Undersecretary of Energy in partnership with other relevant DOE
offices, national laboratories, institutions of higher
education, and the private sector. The subsection further
directs the Secretary to establish goals and milestones for the
Program.
Subsection (c) sets forth the Program's authorized research
areas, including technology innovation to further the expansion
of emissions-reducing energy technologies to accommodate a
modern, resilient grid system, and more effective thermal
energy use, transport, and storage.
Subsection (d) authorizes the Secretary to make grants to
support the Program's goals.
Section 3. Report on duplicative programs
Section 3 directs the Secretary to submit an annual report
to Congress identifying any program that is duplicative of the
Program established in section 2(b)(1).
COST AND BUDGETARY CONSIDERATIONS
The Congressional Budget Office estimate of the costs of
this measure has been requested but was not received at the
time the report was filed. When the Congressional Budget Office
completes its cost estimate, it will be posted on the internet
at www.cbo.gov.
REGULATORY IMPACT EVALUATION
In compliance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee makes the following
evaluation of the regulatory impact which would be incurred in
carrying out S. 2702. The bill is not a regulatory measure in
the sense of imposing Government-established standards or
significant economic responsibilities on private individuals
and businesses.
No personal information would be collected in administering
the program. Therefore, there would be no impact on personal
privacy.
Little, if any, additional paperwork would result from the
enactment of S. 2702, as ordered reported.
CONGRESSIONALLY DIRECTED SPENDING
S. 2702, as ordered reported, does not contain any
congressionally directed spending items, limited tax benefits,
or limited tariff benefits as defined in rule XLIV of the
Standing Rules of the Senate.
EXECUTIVE COMMUNICATIONS
The testimony provided by the Department of Energy at the
November 6, 2019, hearing on S. 2702 follows:
Testimony of Assistant Secretary Daniel Simmons, Office of Energy
Efficiency and Renewable Energy, U.S. Department of Energy
introduction
Chairman Cassidy, Ranking Member Heinrich, and Members of
the Energy Subcommittee of the Committee on Energy and Natural
Resources, thank you for the opportunity to testify today on
legislation pertinent to the Department of Energy now pending
in the Senate. My name is Daniel Simmons, and I am the
Assistant Secretary for the Office of Energy Efficiency and
Renewable Energy (EERE).
As the Assistant Secretary, I am responsible for overseeing
a broad portfolio of energy efficiency and renewable energy
programs. The technologies in my portfolio advance America's
economic growth and energy security while enhancing the
reliability and resilience of the U.S. energy system. The
Department of Energy supports improving the energy efficiency
and reducing energy costs, while at the same time ensuring
important performance standards are met or exceeded. For
instance, we want to ensure schools and other buildings are
sufficiently bright to ensure safety, and that water flow from
faucets is strong enough to clean dirty hands. Today, I would
like to share what relevant work my office has done and is
doing in the areas that these bills address.
I have been asked to testify on eleven (11) bills today,
addressing a range of important energy issues. The
Administration continues to review all of these bills. I
appreciate the ongoing bipartisan efforts to address our
Nation's energy challenges and I look forward to working with
the Committee.
bills
S. 2702--Integrated Energy Systems Act
S. 2702, the Integrated Energy Systems Act, requires the
Secretary of Energy to establish an integrated energy systems
research, development, and demonstration program between
multiple Department offices, to be known as the Integrated
Energy Systems Program. The intent of the program is to
maximize energy production and efficiency; provide reliable,
competitive, and environmentally sustainable electricity to the
grid; expand the use of emissions-reducing technologies into
nonelectric sectors to achieve dramatic reductions in
environmental emissions; and enable the energy infrastructure
of the United States to support the quantity, variability in
type, and variability in size of generation devices and smart
load devices.
The Department has provided technical assistance on this
bill and looks forward to working with Congress as the
legislative process moves forward.
conclusion
Thank you again for the opportunity to testify before the
Subcommittee today. The Department appreciates the ongoing
bipartisan efforts to address our Nation's energy challenges,
and looks forward to working with the Committee on the
legislation on today's agenda and any future legislation. I
would be happy to answer your questions.
CHANGES IN EXISTING LAW
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, the Committee notes that no
changes in existing law are made by S. 2702 as ordered
reported.
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