HLS 22RS-1010 ORIGINAL 2022 Regular Session HOUSE BILL NO. 807 BY REPRESENTATIVE MAGEE ENERGY: Provides relative to energy storage 1 AN ACT 2To enact Chapter 47 of Title 51 of the Louisiana Revised Statutes of 1950, to be comprised 3 of R.S. 51:2771 through 2779, relative to incentives for energy storage; to provide 4 for a grant program; to provide for funding; to provide for calculations; to provide 5 for eligibility of systems; and to provide for related matters. 6Be it enacted by the Legislature of Louisiana: 7 Section 1. Chapter 47 of Title 51 of the Louisiana Revised Statutes of 1950, 8comprised of R.S. 51:2771 through 2779, is hereby enacted to read as follows: 9 CHAPTER 47. DISASTER RESILIENCY AND GRID STABILITY 10 BATTERY INCENTIVE PROGRAM 11 §2771. Creation; terms; funding 12 A. There is hereby created the Disaster Resiliency and Grid Stability Battery 13 Incentive Program, hereinafter "program" to be administered by a third-party 14 administrator contracted by the Department of Economic Development. 15 B. The program shall award grants, with advanced approval, for a period of 16 three years each. In order to be eligible, all applicants shall receive approval for the 17 grant in advance of purchases. Upon termination of the three year grant term, an 18 option to renew or sunset shall be provided. 19 C. The program shall be funded in the Department of Economic 20 Development, and the total funding provided to the program shall not exceed eight Page 1 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-1010 ORIGINAL HB NO. 807 1 million dollars. Additionally, five hundred thousand dollars of the total funding shall 2 be dedicated to LMI Residential. 3 D. A fund shall be established to facilitate the program. The fund shall 4 terminate on December 31, 2024, with an option to renew upon decision by the 5 legislature. Any funds appropriated to the program shall remain in the fund until 6 allocated or until the fund terminates. 7 §2772. Energy storage grant certificates; calculation 8 A grant program is calculated as the lowest amount of the following: 9 (1) Thirty percent of the total installed costs of the energy storage system as 10 calculated in accordance with R.S. 51:2773. 11 (2) Five thousand dollars for an energy storage system installed on a 12 residential property. 13 (3) Fifty thousand dollars for an energy storage system installed on a 14 non-profit, K-12, community center, or community solar system. 15 §2773. Total installed costs 16 A. The state shall calculate the total installed costs of the energy storage 17 installation by taking the sum of the following items from contracts and invoicing 18 documents: 19 (1) Cost of the energy storage system. 20 (2) Cost of the electrical work and equipment. 21 (3) Cost of the installations and labor. 22 (4) Cost of all required permits including building, electrical, and occupancy use 23 permits. 24 B. The state shall then take the sum calculated pursuant to Subsection A of 25 this Section and subtract from that total any discounts offered by the installation 26 contractor from the total installed costs before calculating the energy storage grant 27 certificate. 28 C. An applicant shall provide a clear invoice which provides the cost of each 29 component of the system. Page 2 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-1010 ORIGINAL HB NO. 807 1 §2774. Applicants 2 A. The following persons may apply for a grant through the program, 3 provided that the person has purchased an energy storage system: 4 (1) The owner of a non-profit, K-12, community center or community solar 5 installation who purchases and installs an energy storage system on the commercial 6 or government property. 7 (2) The owner of a residential property who purchases and installs an energy storage 8 system on the residential property. 9 (3) An individual or a corporation that owns or pays for the installation of an energy 10 storage system that supplies electrical energy intended for use on the residential, 11 community solar, or non-profit, government or on which the energy storage system 12 is installed. 13 B. For purposes of this Section, "residential property" means property, 14 including a single-family home and an individual unit of a multifamily property or 15 mixed use facility, that has the purpose of serving as a primary residence. 16 §2775. Eligible system technology 17 A. An energy storage grant may be claimed for qualifying systems that store 18 the following types of energy: 19 (1) Electrical energy. 20 (2) Mechanical energy. 21 (3) Chemical energy including electrochemical energy. 22 (4) Thermal energy that was once electrical energy. 23 B. A battery storage systems must be "behind the meter" and thus able to 24 provide power to be used onsite without passing through a utility meter. 25 §2776. Ineligible system technology 26 An energy storage grant may not be claimed for the following types of energy 27 storage systems: 28 (1) Mobile energy storage systems, including electric vehicles and 29 recreational camping equipment. Page 3 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-1010 ORIGINAL HB NO. 807 1 (2) An electric hot water heater except for those participating in a demand 2 response program. 3 §2777. System use 4 All energy storage systems must store energy for the following purposes: 5 (1) For use as electrical energy at a later date. 6 (2) In a process that offsets electricity use at peak times. 7 §2778. Definitions 8 As used in this Chapter, the following words have the following meanings: 9 (1) "Community center" means a facility owned and operated by a local government 10 or municipality provided that the primary purpose of the facility is for recreation, 11 social welfare, community improvement, or public assembly. 12 (2) "K-12" means any public, charter or private elementary or secondary education 13 facility. 14 (3) "Lower and middle income" means an income three hundred percent above the 15 federal poverty line. 16 §2779. Termination of Chapter 17 The provisions of this Chapter shall terminate and be considered null and 18 void on December 31, 2024. DIGEST The digest printed below was prepared by House Legislative Services. It constitutes no part of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)] HB 807 Original 2022 Regular Session Magee Abstract: Creates a grant program to address disaster resiliency and grid stability. Proposed law creates the disaster resiliency and grid stability program (program). Proposed law provides for administration and funding for the program. Proposed law creates a fund to administer the program. The fund terminates on Dec. 31, 2024. Proposed law provides the method to calculate the appropriate grants certifications and installed costs. Proposed law provides standards for determining eligibility. Page 4 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-1010 ORIGINAL HB NO. 807 Proposed law lists the types of eligible systems and ineligible systems. Proposed law provides the approved purposes for use of grant funds. Proposed law defines "community centers", "K-12", and "lower and middle income". Proposed law terminates on Dec. 31, 2024. (Adds R.S. 51:2771-2779) Page 5 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions.