text: SECTION 1. SHORT TITLE.
  
       This Act may be cited as the ``Distributed Power Hybrid Energy 
  Act''.
  
  SEC. 2. FINDINGS.
  
       The Congress makes the following findings:
              (1) Renewable energy resources have the potential to help 
          diversify our Nation's energy portfolio with few adverse 
          environmental effects. By their very nature, renewable 
          resources are distributed. Our ability to cost effectively take 
          advantage of our renewable, indigenous resources can be greatly 
          advanced through systems that minimize the intermittency of 
          these resources through distributed power hybrid systems.
              (2) Distributed power sources configured as distributed 
          power hybrid systems can maximize benefits to the energy 
          consumer. The primary benefits of distributed power hybrid 
          systems are that they can--
                      (A) shelter consumers from temporary energy price 
                  volatility created by supply and demand mismatches;
                      (B) increase the reliability of energy supply, 
                  thereby avoiding significant costs associated with 
                  power outages;
                      (C) provide a cost-effective means to minimize the 
                  impact of intermittent resources, thereby expanding the 
                  Nation's energy supply reserve;
                      (D) decrease environmental impacts of energy 
                  supply; and
                      (E) be tailored to address significant local 
                  differences in power and economic development needs and 
                  resource availability that exist throughout the United 
                  States.
              (3) Realizing these benefits will require a concerted and 
          integrated effort that focuses on removing market barriers to 
          the adoption of distributed power hybrid systems by--
                      (A) providing tools that enable States and regions 
                  to assess their indigenous renewable energy resources;
                      (B) developing the technological foundation that 
                  enables designing, testing, certifying, and operating 
                  distributed power hybrid systems; and
                      (C) providing the policy framework that reduces 
                  such barriers, including making net metering available 
                  on a broader scale to enable consumers to reap the full 
                  value of these systems, thereby lowering their overall 
                  energy bill.
              (4) While many of the individual distributed power hybrid 
          systems components are either available or under development in 
          existing private and public sector programs, the capabilities 
          to integrate these components into workable distributed power 
          hybrid systems that maximize benefits to consumers in a safe 
          manner are deficient and not coherently being addressed.
  
  SEC. 3. DEFINITIONS.
  
       For purposes of this Act--
              (1) the term ``distributed power hybrid system'' means a 
          system using 2 or more distributed power sources, operated 
          together with associated supporting equipment, including 
          storage equipment, and software necessary to provide electric 
          power to the grid or on site; and
              (2) the term ``distributed power source'' means an 
          independent electric energy source of usually 10 megawatts or 
          less located close to a residential, commercial, or industrial 
          load center, including--
                      (A) reciprocating engines;
                      (B) turbines;
                      (C) microturbines;
                      (D) fuel cells;
                      (E) solar electric systems;
                      (F) wind energy systems;
                      (G) biomass power systems;
                      (H) geothermal power systems; or
                      (I) electrical components of cogeneration systems.
  
  SEC. 4. STRATEGY.
  
      (a) Requirement.--Not later than 1 year after the date of the 
  enactment of this Act, the Secretary of Energy shall develop and 
  transmit to the Congress a distributed power hybrid systems strategy 
  showing--
              (1) opportunities and priorities that might best be met 
          with distributed power hybrid systems configurations;
              (2) what barriers exist to the use of distributed power 
          hybrid systems;
              (3) what technology gaps need to be closed; and
              (4) what system integration tools are needed to plan, 
          design, build, and operate distributed power hybrid systems for 
          maximum benefits.
      (b) Elements.--The strategy may provide for development of--
              (1) system integration tools for planning, designing, 
          building, and operating economical, safe, and clean distributed 
          power hybrid systems, including databases, computer models, 
          software, and sensors, controls, and other integrating 
          hardware;
              (2) tests of distributed power hybrid systems, including 
          field tests with industry and cost-shared demonstrations of 
          distributed power hybrid systems power parks and microgrids, to 
          validate integrated performance and to give consumers, 
          policymakers, and industry the confidence that distributed 
          power hybrid systems work reliably, safely, and cleanly;
              (3) special design tools that can characterize the benefits 
          and values of distributed power hybrid systems for consumers 
          and enable virtual prototyping of distributed power hybrid 
          systems to reduce testing needs and the time required to get 
          the systems into the marketplace;
              (4) data to characterize grid operations, including 
          interconnection requirements; and
              (5) precise resource assessment tools to map local 
          resources for distributed power hybrid systems.
      (c) Implementation and Integration.--The Secretary of Energy shall 
  implement the strategy transmitted under subsection (a), and activities 
  pursuant to the strategy shall be integrated with other activities of 
  the Department's Office of Distributed Energy Resources.
  
  SEC. 5. REPORT TO CONGRESS.
  
       Not later than 1 year after the date of the enactment of this Act, 
  and annually thereafter, the Secretary of Energy shall transmit to the 
  Congress a report on the use of, and experience with, distributed power 
  hybrid systems in the United States, and the research and development 
  issues remaining to ensure the successful application of distributed 
  power hybrid systems.
  
  SEC. 6. AUTHORIZATION OF APPROPRIATIONS.
  
       There are authorized to be appropriated to the Secretary of Energy 
  for carrying out this Act--
              (1) $5,000,000 for fiscal year 2004;
              (2) $10,000,000 for fiscal year 2005;
              (3) $20,000,000 for fiscal year 2006;
              (4) $20,000,000 for fiscal year 2007; and
              (5) $5,000,000 for fiscal year 2008.
target: Distributed Power Hybrid Energy Act - Directs the Secretary of Energy to: (1) develop and transmit to Congress a distributed power hybrid systems strategy (involving two or more independent electric energy sources of usually ten megawatts or less each, located close to a residential, commercial, or industrial load center, including reciprocating engines, turbines, microturbines, fuel cells, solar electric systems, wind energy systems, biomass power systems, geothermal power systems, or electrical components of cogeneration systems); and (2) implement and integrate such strategy with other activities of the Department of Energy Office of Distributed Energy Resources.
feat_title: To direct the Secretary of Energy to develop and implement a strategy for research, development, demonstration, and commercial application of distributed power hybrid energy systems, and for other purposes.