Grid Modernization Act of 2015
This bill requires the Department of Energy (DOE) to conduct a program of research and development of electric grid energy storage that addresses the principal challenges identified in the 2013 Department of Energy Strategic Plan for Grid Energy Storage.
DOE shall establish and facilitate a collaborative process to develop model grid architecture and a set of future scenarios for the electric system to examine the impacts of different combinations of resources on the electric grid (including different quantities of distributed energy resources and large-scale, central generation).
DOE shall also:
DOE shall: (1) conduct six demonstration projects to expand the application of technologies to improve observability, advanced controls, and prediction of system performance on the distribution system; and (2) establish a program for the development and promotion of grid-scale energy storage with microgrids to enhance the resilience of critical infrastructure.
The Public Utility Regulatory Policies Act of 1978 establishes a new resilience standard requiring each electric utility, each state authority regulating one, and each nonregulated electric utility to incorporate consideration of electric grid resilience (the ability of the electric grid to adapt to changing conditions and withstand and rapidly recover from disruptions) into its integrated resource planning.
DOE shall: (1) initiate development of voluntary model pathways for modernizing the electric grid through a collaborative, public-private effort; and (2) establish a steering committee to facilitate development of the pathways.
DOE must develop baseline, voluntary model performance metrics to facilitate and promote the adoption of best practices and processes for electricity infrastructure providers to design, build, and implement a modernized electric grid and maximize opportunities to enhance progress in grid technologies and capabilities, consumer engagement, and policy.
DOE shall also, upon request, partner with the states and regional organizations to facilitate development of state and regional distribution plans.
[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 1243 Introduced in Senate (IS)]
114th CONGRESS
1st Session
S. 1243
To facilitate modernizing the electric grid, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 7, 2015
Ms. Cantwell (for herself, Ms. Hirono, and Mr. King) introduced the
following bill; which was read twice and referred to the Committee on
Energy and Natural Resources
_______________________________________________________________________
A BILL
To facilitate modernizing the electric grid, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Grid Modernization Act of 2015''.
TITLE I--GENERAL PROVISIONS
SEC. 101. STATEMENT OF POLICY ON GRID MODERNIZATION.
It is the policy of the United States to promote and advance--
(1) the modernization of the energy delivery infrastructure
of the United States, including bolstering the reliability,
affordability, diversity, efficiency, security, and resilience
of domestic energy supplies, through advanced grid
technologies;
(2) the modernization of the electric grid--
(A) to continue facilitating the development of a
Smart Grid as characterized in section 1301 of the
Energy Independence and Security Act of 2007 (42 U.S.C.
17381);
(B) to enable a robust multidirectional power flow
that leverages distributed energy resources; and
(C) to facilitate the alignment of business and
regulatory models to achieve a grid that optimizes--
(i) the entire electric delivery system;
and
(ii) a sustainable, reliable, and resilient
energy future;
(3) relevant research and development in advanced grid
technologies, including--
(A) energy storage;
(B) predictive tools and requisite real-time data
to enable the dynamic optimization of grid operations;
(C) power electronics that ease the challenge of
intermittent and distributed generation;
(D) real-time data and situational awareness tools
and systems; and
(E) tools to increase data security, physical
security, and cybersecurity awareness and protection;
(4) the leadership of the United States in basic and
applied sciences to develop a systems approach to innovation
and invention of cybersecure advanced grid technologies,
architectures, and control paradigms capable of managing
diverse supplies and loads;
(5) the safeguarding of the critical energy delivery
infrastructure of the United States and the enhanced resilience
of the infrastructure to all hazards, including--
(A) extreme weather events;
(B) cyber and physical threats; and
(C) other factors that affect energy delivery;
(6) the coordination of goals, investments to optimize the
grid, and other measures for energy efficiency, advanced grid
technologies, interoperability, and demand response resources;
(7) partnerships with States and the private sector--
(A) to facilitate advanced grid capabilities and
strategies; and
(B) to provide technical assistance, tools, or
other related information necessary to enhance grid
integration, particularly in connection with the
development at the State and local levels of strategic
energy, energy surety and assurance, and emergency
preparedness, response, and restoration planning;
(8) the deployment of information and communications
technologies at all levels of the electric system;
(9) opportunities to provide consumers with timely
information and advanced control options;
(10) sophisticated or advanced control options to integrate
distributed energy resources and associated ancillary services;
(11) open-source communications, database architectures,
and common information model standards, guidelines, and
protocols that enable interoperability to maximize efficiency
gains and associated benefits among--
(A) the grid;
(B) energy and building management systems; and
(C) residential, commercial, and industrial
equipment;
(12) private sector investment in the energy delivery
infrastructure of the United States through targeted
demonstration and validation of advanced grid technologies; and
(13) establishment of common valuation methods and tools
for cost-benefit analysis of grid integration paradigms.
SEC. 102. GRID STORAGE PROGRAM.
(a) In General.--The Secretary of Energy (acting through the
Assistant Secretary of the Office of Electricity Delivery and Energy
Reliability) (referred to in this Act as the ``Secretary'') shall
conduct a program of research and development of electric grid energy
storage that addresses the principal challenges identified in the 2013
Department of Energy Strategic Plan for Grid Energy Storage.
(b) Areas of Focus.--The program under this section shall focus
on--
(1) materials and electrochemical systems research;
(2) power conversion technologies research;
(3) other fundamental and applied research critical to
widespread deployment of storage;
(4) device development that builds on results from research
described in paragraphs (1) through (3), including combinations
of power electronics, advanced optimizing controls, and energy
storage as a general purpose element of the electric grid;
(5) grid-scale testing and analysis of storage devices,
including test-beds and field trials;
(6) cost-benefit analyses that inform capital expenditure
planning for regulators and owners and operators of components
of the electric grid;
(7) storage device safety and reliability, including
potential failure modes, mitigation measures, and operational
guidelines; and
(8) standards for storage device performance, control
interface, grid interconnection, and interoperability.
(c) Assistance to States.--The Secretary may provide technical and
financial assistance to States, Indian tribes, or units of local
government to participate in or use research, development, or
deployment of technology developed under this section.
SEC. 103. ELECTRIC SYSTEM GRID ARCHITECTURE, SCENARIO DEVELOPMENT, AND
MODELING.
(a) Grid Architecture and Scenario Development.--
(1) In general.--Subject to paragraph (2), the Secretary
shall establish and facilitate a collaborative process to
develop model grid architecture and a set of future scenarios
for the electric system to examine the impacts of different
combinations of resources (including different quantities of
distributed energy resources and large-scale, central
generation) on the electric grid.
(2) Market structure.--The grid architecture and scenarios
developed under paragraph (1) shall account for differences in
market structure, including an examination of the potential for
stranded costs in each type of market structure.
(3) Findings.--Based on the findings of grid architecture
developed under paragraph (1), the Secretary shall make
recommendations regarding additional standards that may be
required, if any, to ensure the interoperability of grid
systems and associated communications networks.
(b) Modeling.--Subject to subsection (c), the Secretary shall--
(1) conduct modeling based on the scenarios developed under
subsection (a); and
(2) analyze and evaluate the technical and financial
impacts of the models to assist States, utilities, and other
stakeholders in--
(A) enhancing strategic planning efforts;
(B) avoiding stranded investments; and
(C) maximizing the cost-effectiveness of future
grid-related investments.
(c) Input.--The Secretary shall develop the scenarios and conduct
the modeling and analysis under subsections (a) and (b) with
participation or input, as appropriate, from--
(1) the National Laboratories;
(2) States;
(3) State regulatory authorities;
(4) transmission organizations;
(5) representatives of the electric industry;
(6) academic institutions;
(7) independent research institutes; and
(8) other entities.
TITLE II--DEMONSTRATION PROGRAMS
SEC. 201. TECHNOLOGY DEMONSTRATION ON THE DISTRIBUTION SYSTEM.
(a) In General.--The Secretary shall conduct 6 demonstration
projects to expand the application of technologies to improve
observability, advanced controls, and prediction of system performance
on the distribution system.
(b) Participation.--The demonstration projects conducted under
subsection (a) shall include the participation of a diverse selection
of relevant owners and operators of distribution systems, including--
(1) a utility;
(2) a political subdivision of a State; and
(3) an electric cooperative.
(c) Cybersecurity Plan.--Each demonstration project conducted under
subsection (a) shall include the development of a cybersecurity plan.
SEC. 202. RESILIENT COMMUNITIES PROGRAM.
(a) In General.--The Secretary shall establish a program for the
development and promotion of grid-scale energy storage with microgrids
to enhance the resilience of critical infrastructure.
(b) Collaboration.--The program established under subsection (a)
shall provide for the collaboration of relevant stakeholders in the
program, including--
(1) States;
(2) Indian tribes;
(3) regional entities and regulators;
(4) units of local government;
(5) institutions of higher education; and
(6) private sector entities.
(c) Phases.--The program established under subsection (a) shall be
divided into the following phases:
(1) Phase I, which shall consist of the development of a
feasibility assessment.
(2) Phase II, which shall consist of cost-shared
demonstration projects that include the development of physical
and cybersecurity plans to take appropriate measures to protect
and secure the electric grid.
(3) Phase III, which shall establish a benefits analysis
plan to help inform regulators, policymakers, and industry
stakeholders about the value of the resilience investments of
Phase II.
TITLE III--STANDARDS AND ASSISTANCE FOR STATES
SEC. 301. STATE CONSIDERATION OF RESILIENCE.
(a) Adoption of Standards.--Section 111(d) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by
adding at the end the following:
``(20) Resilience.--
``(A) Definition of electric grid resilience.--The
term `electric grid resilience' means the ability of
the electric grid to adapt to changing conditions and
withstand and rapidly recover from disruptions.
``(B) Required consideration.--Each electric
utility shall incorporate into the integrated resource
planning of the electric utility consideration of
electric grid resilience.
``(C) Factors.--Consideration under subparagraph
(B) shall include an evaluation of potential benefits
of enhancing electric grid resilience, including--
``(i) system stability under severe and
nontraditional hazards;
``(ii) adaptation to region-specific
natural threats and vulnerabilities;
``(iii) adaptation to climate change-
related extreme weather disruptions;
``(iv) support provided to interdependent
critical infrastructures reliant on energy
services to operate;
``(v) reduced costs under normal operating
conditions;
``(vi) enhanced distributed generation and
microgrid functionality to operate as an
integrated energy system in intentional
islanding mode;
``(vii) localized energy generation that
avoids incurrence of transmission and
distribution losses;
``(viii) system operational flexibility;
and
``(ix) ancillary environmental benefits,
including greenhouse gas reductions.''.
(b) Compliance.--
(1) Time limitations.--Section 112(b) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is amended
by adding at the end the following:
``(7)(A) Not later than 1 year after the date of enactment
of this paragraph, each State regulatory authority (with
respect to each electric utility for which it has ratemaking
authority), and each nonregulated electric utility, shall--
``(i) commence the consideration referred to in
section 111; or
``(ii) set a hearing date for such consideration,
with respect to the standard established by paragraph
(20) of section 111(d).
``(B) Not later than 2 years after the date of enactment of
this paragraph, each State regulatory authority (with respect
to each electric utility for which it has ratemaking
authority), and each nonregulated electric utility, shall--
``(i) complete the consideration required under
subparagraph (A); and
``(ii) make the determination referred to in
section 111 with respect to the standard established by
paragraph (20) of section 111(d).''.
(2) Failure to comply.--Section 112(c) of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(c)) is
amended by adding at the end the following: ``In the case of
the standard established by paragraph (20) of section 111(d),
the reference contained in this subsection to the date of
enactment of this Act shall be deemed to be a reference to the
date of enactment of that paragraph.''.
SEC. 302. VOLUNTARY MODEL PATHWAYS.
(a) Establishment of Voluntary Model Pathways.--
(1) Finding.--Congress finds that a set of voluntary model
pathways for modernizing the electric grid would provide
policymakers and regulators with valuable and flexible options
to consider in adapting policy or regulatory mechanisms to
match the needs of an evolving electric grid.
(2) Establishment.--Not later than 90 days after the date
of enactment of this Act, the Secretary shall initiate the
development of voluntary model pathways for modernizing the
electric grid through a collaborative, public-private effort
that--
(A) produces illustrative policy pathways that can
be adapted for State and regional applications by
regulators and policymakers;
(B) facilitates the modernization of the electric
grid to achieve the objectives described in paragraph
(3);
(C) ensures a reliable, resilient, affordable,
safe, and secure electric system; and
(D) acknowledges and provides for different
priorities, electric systems, and rate structures
across States and regions.
(3) Objectives.--The pathways established under paragraph
(2) shall facilitate achievement of the following objectives:
(A) Near real-time situational awareness of the
electric system.
(B) Data visualization.
(C) Advanced monitoring and control of the advanced
electric grid.
(D) Enhanced certainty for private investment in
the electric system.
(E) Increased innovation.
(F) Greater consumer empowerment.
(G) Enhanced grid resilience, reliability, and
robustness.
(H) Improved--
(i) integration of distributed energy
resources;
(ii) interoperability of the electric
system; and
(iii) predictive modeling and capacity
forecasting.
(4) Steering committee.--Not later than 90 days after the
date of enactment of this Act, the Secretary shall establish a
steering committee to facilitate the development of the
pathways under paragraph (2), to be composed of members
appointed by the Secretary, consisting of persons with
appropriate expertise representing a diverse range of interests
in the public, private, and academic sectors, including
representatives of--
(A) the Smart Grid Task Force; and
(B) the Smart Grid Advisory Committee.
(b) Technical and Financial Assistance.--
(1) In general.--The Secretary may provide technical and
financial assistance to States, Indian tribes, or units of
local government to adopt 1 or more elements of the pathways
developed under subsection (a)(2).
(2) Distribution of financial assistance.--Any financial
assistance provided to a State under paragraph (1) may be
distributed by the State to units of local government in the
State for purposes of implementing the pathways developed under
subsection (a)(2).
SEC. 303. PERFORMANCE METRICS FOR ELECTRICITY INFRASTRUCTURE PROVIDERS.
(a) In General.--Not later than 2 years after the date of enactment
of this Act, the Secretary shall--
(1) develop baseline, voluntary model performance metrics
to facilitate and promote the adoption of best practices and
processes for electricity infrastructure providers to design,
build, and implement a modernized electric grid and maximize
opportunities to enhance progress in grid technologies and
capabilities, consumer engagement, and policy;
(2) quantify the potential performance improvements that
could be achieved through deployment of new grid technologies
and systems; and
(3) distribute through appropriate channels a report
describing the findings under paragraph (1).
(b) Considerations.--In developing the performance metrics under
subsection (a)(1), the Secretary shall consider--
(1) standard methodologies for calculating improvements or
deteriorations in the performance metrics, such as reliability,
grid efficiency, power quality, consumer satisfaction,
sustainability, and financial incentives;
(2) standard methodologies for calculating value to
ratepayers, including broad economic and related impacts from
improvements to the performance metrics;
(3) appropriate ownership and operating roles for electric
utilities that would enable improved performance through the
adoption of emerging, commercially available or advanced grid
technologies or solutions, including--
(A) multicustomer microgrids;
(B) distributed energy resources;
(C) energy storage;
(D) electric vehicles;
(E) electric vehicle charging infrastructure;
(F) integrated information and communications
systems; and
(G) advanced demand management systems; and
(4) with respect to States, the role of the grid operator
in enabling a robust future electric system to ensure that--
(A) electric utilities remain financially viable;
(B) electric utilities make the needed investments
that ensure a reliable, secure, and resilient grid; and
(C) costs incurred to transform to an integrated
grid are allocated and recovered responsibly,
efficiently, and equitably.
SEC. 304. DISTRIBUTION PLANNING.
(a) In General.--Upon the request of a State or regional
organization, the Secretary shall partner with States and regional
organizations to facilitate the development of State and regional
distribution plans by--
(1) conducting a resource assessment and analysis of future
demand and distribution requirements; and
(2) developing open source tools for State and regional
planning and operations.
(b) Existing Tools.--The tools developed under subsection (a)(2)
shall build on existing tools used or developed by the Department of
Energy.
(c) Risk and Security Analysis.--The assessment under subsection
(a)(1) shall include--
(1) the evaluation of the physical and cybersecurity needs
of an advanced distribution management system and the
integration of distributed energy resources; and
(2) advanced use of grid architecture to analyze risks in a
holistic all-hazards approach that includes communications
infrastructure, control systems architecture, and power systems
architecture.
(d) Technical Assistance.--For the purpose of developing
electricity distribution plans, the Secretary shall provide technical
assistance to--
(1) States;
(2) regional reliability entities; and
(3) other distribution asset owners and operators.
TITLE IV--AUTHORIZATION OF APPROPRIATIONS
SEC. 401. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated to the Secretary carry out
this Act (including the amendments made by this Act) and other related
activities $200,000,000 for each of fiscal years 2017 through 2021.
<all>
Introduced in Senate
Introduced in Senate
Read twice and referred to the Committee on Energy and Natural Resources.
Committee on Energy and Natural Resources. Hearings held. Hearings printed: S.Hrg. 114-65.
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