Smart Grid Advancement Act of 2011

Smart Grid Advancement Act of 2011 - Requires the Secretary of Energy (DOE) and the Administrator of the Environmental Protection Agency (EPA) to: (1) assess the potential for cost-effective integration of Smart Grid technologies and capabilities in all products that are reviewed by DOE and EPA for potential designation as Energy Star products; (2) conduct a best case smart grid analysis by analyzing the potential energy savings, greenhouse gas emission reductions, and electricity cost savings that could accrue for such products in specified circumstances; and (3) take specified actions when they find that including Smart Gird capability in products is cost effective in the best case.

Amends the Energy Policy and Conservation Act to require the Federal Trade Commission (FTC) to initiate and complete a rulemaking to consider making a special note in a prominent manner on any Energy Guide label for products that include Smart Grid capability.

Sets forth provisions concerning Smart Grid peak demand reduction goals, including requiring: (1) load serving entities or states to determine and publish demand reduction goals for such entities that have applicable baselines in excess of 250 megawatts; (2) the Federal Energy Regulatory Commission (FERC) to develop and publish a methodology to provide for adjustments or normalization to a load serving entity's applicable baseline over time to reflect changes in the number of customers served, weather conditions, general economic conditions, and other factors external to peak demand management; (3) the Secretary to develop a system for measuring and verifying demand reductions; and (4) each load serving entity to prepare a demand reduction plan.

Authorizes the Secretary to make grants to offset the costs of carrying out responsibilities to be implemented under this Act.

Amends the Energy Policy Act of 2005 to revise: (1) the Energy Efficiency Public Information Initiative, including by renaming the program as the Energy Efficiency and Smart Grid Public Information Initiative and authorizing appropriations through FY2022; and (2) the Energy Efficient Appliance Rebate Program, including by renaming the program as the Energy Efficient and Smart Appliance Rebate Program and authorizing appropriations through FY2017.