HLS 22RS-1010 ENGROSSED
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 BATTERY INCENTIVE PROGRAM
10 §2771. Creation; terms; funding
11 A. There is hereby created the Disaster Resiliency Battery Incentive
12 Program, hereinafter "program", to be administered by a third-party administrator
13 contracted by the Department of Economic Development.
14 B. The program shall award grants, with advanced approval, for a period of
15 three years each. In order to be eligible, all applicants shall receive approval for the
16 grant in advance of purchases. Upon termination of the three-year grant term, an
17 option to renew or sunset shall be provided.
18 C. The program shall be funded through the Department of Economic
19 Development, and the total funding provided to the program shall not exceed eight
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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. 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 nonprofit, K-12 educational institution, or community center.
15 (4) One hundred thousand dollars for an energy storage system installed on
16 a commercial property which is not provided for in Paragraph (2) or (3) of this
17 Subsection.
18 B. The aggregate amount of grant funds awarded pursuant to the calculation
19 provided in Paragraph (A)(4) of this Section shall not exceed five hundred thousand
20 dollars.
21 §2773. Total installed costs
22 A. The state shall calculate the total installed costs of the energy storage
23 installation by taking the sum of the following items from contracts and invoicing
24 documents:
25 (1) Cost of the energy storage system.
26 (2) Cost of the electrical work and equipment.
27 (3) Cost of the installation and labor.
28 (4) Cost of all required permits including building, electrical, and occupancy
29 use permits.
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1 B. The state shall then take the sum calculated pursuant to Subsection A of
2 this Section and subtract from that total any discounts offered by the installation
3 contractor from the total installed costs before calculating the energy storage grant
4 certificate.
5 C. An applicant shall provide a clear invoice which provides the cost of each
6 component of the system.
7 §2774. Applicants
8 A. The following persons may apply for a grant through the program,
9 provided that the person has purchased an energy storage system:
10 (1) The owner of a nonprofit, K-12 educational institution, or community
11 center who purchases and installs an energy storage system on the commercial or
12 government property.
13 (2) The owner of a residential property who purchases and installs an energy
14 storage system on the residential property.
15 (3) An individual or a corporation that owns or pays for the installation of
16 an energy storage system that supplies electrical energy intended for use on the
17 residential, or nonprofit, government or on which the energy storage system is
18 installed.
19 (4) The owner of a commercial property who purchases and installs an
20 energy storage system on the commercial property and who does not otherwise
21 qualify as an applicant pursuant to Paragraphs (1) through (3) of this Subsection.
22 B. Any person who receives grant funds pursuant to Paragraph (A)(4) of this
23 Section shall not apply for nor be awarded any additional grant funds pursuant to that
24 Paragraph.
25 C. For purposes of this Section, "residential property" means property,
26 including a single-family home and an individual unit of a multifamily property or
27 mixed-use facility, that has the purpose of serving as a primary residence.
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1 §2775. Eligible system technology
2 A. An energy storage grant may be claimed for qualifying systems that store
3 the following types of energy:
4 (1) Electrical energy.
5 (2) Chemical energy including electrochemical energy.
6 B. A battery storage system shall be "behind the meter" and thus able to
7 provide power for resiliency purposes and to be used onsite without passing through
8 a utility meter.
9 §2776. Ineligible system technology
10 An energy storage grant may not be claimed for the following types of energy
11 storage systems:
12 (1) Mobile energy storage systems, including electric vehicles and
13 recreational camping equipment.
14 (2) An electric hot water heater.
15 (3) Any energy storage device not capable of being integrated into a demand
16 response program.
17 §2777. System use
18 All energy storage systems must store energy for the following purposes:
19 (1) For use as electrical energy at a later date.
20 (2) In a process that offsets electricity use at peak times.
21 §2778. Definitions
22 As used in this Chapter, the following words have the following meanings:
23 (1) "Community center" means a facility owned and operated by a local
24 government or municipality provided that the primary purpose of the facility is for
25 recreation, social welfare, community improvement, or public assembly.
26 (2) "K-12" means any public, charter, or private elementary or secondary
27 education facility.
28 (3) "Lower and middle income" means an income three hundred percent
29 above the federal poverty guidelines.
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1 §2779. Termination of Chapter
2 The provisions of this Chapter shall terminate and be considered null and
3 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 Engrossed 2022 Regular Session Magee
Abstract: Creates a grant program to address disaster resiliency.
Proposed law creates the disaster resiliency battery incentive program (program).
Proposed law provides that the program is to be administered by a third-party contracted by
the Dept. of Economic Development (department).
The program as provided for in proposed law is to award grants, for a period of three years,
at which point an option to renew is provided.
Proposed law requires applicants to receive approval prior to purchase.
Proposed law provides that the program is to be funded through the department.
No more than $8,000,000 is to be allocated to the program pursuant to proposed law.
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 grant amounts by choosing
the lowest amount of four possible calculations.
Proposed law provides the method to calculate the total installed cost by taking the sum of
all of the following:
(1)Cost of the energy storage system.
(2)Cost of electrical work and equipment.
(3) Cost of installation and labor.
(4)Permitting costs.
Proposed law requires an applicant to provide proof, through invoice, of the costs provided
in proposed law.
Proposed law provides standards for determining eligibility and provides four possible
categories of eligible persons.
A system that stores the following types of energy are considered an eligible system pursuant
to proposed law:
(1)Electrical energy.
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(2)Chemical energy.
In order for a system to be eligible pursuant to proposed law, it shall be "behind the meter".
Proposed law does not allow a grant to be provided for the following types of storage
systems:
(1)Mobile energy storage systems.
(2)An electric hot water heater.
(3)A system not capable of being integrated into a demand response program.
Proposed law provides the following approved purposes for use of grant funds:
(1)For use as electrical energy at a later date.
(2)In a process that offsets electricity use at peak times.
Proposed law defines "community center", "K-12", and "lower and middle income".
Proposed law terminates on Dec. 31, 2024.
(Adds R.S. 51:2771-2779)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Commerce to the
original bill:
1. Remove references to "grid stability".
2. Remove references to "community solar system".
3. Add an additional category, relative to commercial property, to the list of
possible grant program calculations.
4. Add an additional category, relative to commercial property, to the list of eligible
grant recipients.
5. Remove certain types of energy storage systems from eligibility.
6. Provide that an energy storage device that cannot be integrated into a demand
response program is not an eligible system as provided in proposed law.
7. Make technical changes.
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