---
kind: "section"
citation: "42 U.S.C. § 17233"
title: "42"
title_heading: "The Public Health and Welfare"
number: "17233"
heading: "Energy storage technology and microgrid assistance program"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/17233"
units:
  - "Chapter 152 — Energy Independence and Security"
  - "Subchapter V — Accelerated Research and Development"
  - "Part D — Energy Storage for Transportation and Electric Power"
---

# §17233. Energy storage technology and microgrid assistance program

- (a) **Definitions—** In this section:
  - (1) **Eligible entity—** The term “[eligible entity](/usc/42/17151.md?p=1)” means—
    - (A) a rural electric cooperative;
    - (B) an [agency](/usc/42/8262.md?p=1), authority, or instrumentality of a [State](/usc/42/17151.md?p=6) or political subdivision of a [State](/usc/42/17151.md?p=6) that sells or otherwise uses electrical energy to provide electric services for [customers](/usc/42/7275.md?p=5); or
    - (C) a [nonprofit](/usc/42/300s–3.md?p=3) organization working with at least 6 entities described in subparagraph [(A)](#a-1-A) or [(B)](#a-1-B).
  - (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](/usc/42/17211.md?p=6)” 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](/usc/7/918c.md?p=a).
  - (5) **Rural electric cooperative—** The term “rural electric cooperative” means an electric cooperative (as defined in [section 796 of title 16](/usc/16/796.md)) that sells electric energy to persons in rural areas.
  - (6) **Secretary—** The term “[Secretary](/usc/42/17001.md?p=3)” means the [Secretary](/usc/42/17001.md?p=3) of Energy.
- (b) **In general—** Not later than 180 days after December 27, 2020, the [Secretary](/usc/42/17001.md?p=3) shall establish a [program](/usc/42/17151.md?p=5) under which the [Secretary](/usc/42/17001.md?p=3) shall—
  - (1) provide grants to [eligible entities](/usc/42/17151.md?p=1) under [subsection (d)](#d);
  - (2) provide technical assistance to [eligible entities](/usc/42/17151.md?p=1) under [subsection (e)](#e); and
  - (3) disseminate information to [eligible entities](/usc/42/17151.md?p=1) on—
    - (A) the activities described in subsections [(d)(1)](#d-1) and [(e)](#e); and
    - (B) potential and existing energy storage technology and [microgrid](/usc/42/17211.md?p=6) [projects](/usc/42/13641.md?p=2).
- (c) **Cooperative agreement—** The [Secretary](/usc/42/17001.md?p=3) may enter into a cooperative agreement with an [eligible entity](/usc/42/17151.md?p=1) to carry out [subsection (b)](#b).
- (d) **Grants—**
  - (1) **In general—** The [Secretary](/usc/42/17001.md?p=3) may award grants to [eligible entities](/usc/42/17151.md?p=1) for identifying, evaluating, designing, and demonstrating energy storage technology and [microgrid](/usc/42/17211.md?p=6) [projects](/usc/42/13641.md?p=2) that utilize energy from renewable energy sources.
  - (2) **Application—** To be eligible to receive a grant under [paragraph (1)](#d-1), an [eligible entity](/usc/42/17151.md?p=1) shall submit to the [Secretary](/usc/42/17001.md?p=3) an application at such time, in such manner, and containing such information as the [Secretary](/usc/42/17001.md?p=3) may require.
  - (3) **Use of grant—** An [eligible entity](/usc/42/17151.md?p=1) that receives a grant under [paragraph (1)](#d-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](/usc/42/17211.md?p=6) [projects](/usc/42/13641.md?p=2);
      - (ii) to analyze and implement strategies to overcome barriers to energy storage technology or [microgrid](/usc/42/17211.md?p=6) [project](/usc/42/13641.md?p=2) implementation, including financial, contracting, siting, and permitting barriers;
      - (iii) to conduct detailed engineering of energy storage technology or [microgrid](/usc/42/17211.md?p=6) [projects](/usc/42/13641.md?p=2);
      - (iv) to perform a cost-benefit analysis with respect to an energy storage technology or [microgrid](/usc/42/17211.md?p=6) [project](/usc/42/13641.md?p=2);
      - (v) to plan for both the short- and long-term inclusion of energy storage technology or [microgrid](/usc/42/17211.md?p=6) [projects](/usc/42/13641.md?p=2) into the future development plans of the [eligible entity](/usc/42/17151.md?p=1); 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)](#d-3-A).
  - (4) **Condition—** As a condition of receiving a grant under [paragraph (1)](#d-1), an [eligible entity](/usc/42/17151.md?p=1) shall—
    - (A) implement a public awareness campaign, in coordination with the [Secretary](/usc/42/17001.md?p=3), about the [project](/usc/42/13641.md?p=2) implemented under the grant in the community in which the [eligible entity](/usc/42/17151.md?p=1) is located, which campaign shall include providing projected environmental benefits achieved under the [project](/usc/42/13641.md?p=2), where to find more information about the [program](/usc/42/17151.md?p=5) established under this section, and any other information the [Secretary](/usc/42/17001.md?p=3) determines necessary;
    - (B) submit to the [Secretary](/usc/42/17001.md?p=3), and make available to the public, a report that describes—
      - (i) any energy cost savings and environmental benefits achieved under the [project](/usc/42/13641.md?p=2); and
      - (ii) the results of the [project](/usc/42/13641.md?p=2), including quantitative assessments to the extent practicable, associated with each activity described in [paragraph (3)(A)](#d-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](/usc/42/16352.md).
- (e) **Technical assistance—**
  - (1) **In general—** In carrying out the [program](/usc/42/17151.md?p=5) established under [subsection (b)](#b), the [Secretary](/usc/42/17001.md?p=3) may provide [eligible entities](/usc/42/17151.md?p=1) with technical assistance relating to—
    - (A) identifying opportunities for energy storage technology and [microgrid](/usc/42/17211.md?p=6) [projects](/usc/42/13641.md?p=2);
    - (B) understanding the technical and economic characteristics of energy storage technology or [microgrid](/usc/42/17211.md?p=6) [projects](/usc/42/13641.md?p=2);
    - (C) understanding financing alternatives;
    - (D) permitting and siting issues;
    - (E) obtaining case studies of similar and successful energy storage technology or [microgrid](/usc/42/17211.md?p=6) [projects](/usc/42/13641.md?p=2);
    - (F) reviewing and obtaining computer software for assessment, design, and operation and maintenance of energy storage technology or [microgrid](/usc/42/17211.md?p=6) systems; and
    - (G) understanding and utilizing the reliability and resiliency benefits of energy storage technology and [microgrid](/usc/42/17211.md?p=6) [projects](/usc/42/13641.md?p=2).
  - (2) **External contracts—** In carrying out [paragraph (1)](#e-1), the [Secretary](/usc/42/17001.md?p=3) may enter into contracts with third-party experts, including engineering, finance, and insurance experts, to provide technical assistance to [eligible entities](/usc/42/17151.md?p=1) relating to the activities described in such paragraph, or other relevant activities, as determined by the [Secretary](/usc/42/17001.md?p=3).
- (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)](#f-1) for each fiscal year shall be used for administrative expenses.

## Source credit

(Pub. L. 116–260, div. Z, title III, § 3202, Dec. 27, 2020, 134 Stat. 2525.)

## Notes

### 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.