REDUCE Act

Responsive Energy Demand Unlocks Clean Energy Act or the REDUCE Act

This bill requires organizations that operate electric grid transmission facilities (e.g., Regional Transmission Organizations or Independent System Operators) to accept bids in a power market from demand response programs of a certain size.

In a demand response program, end-use electricity customers are typically remunerated for voluntarily decreasing their short-term electrical consumption generally in response to compromised grid reliability or high wholesale electricity prices.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8738 Introduced in House (IH)]

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117th CONGRESS
  2d Session
                                H. R. 8738

To require Transmission Organizations to allow bids from aggregators of 
           certain retail customers, and for other purposes.


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                    IN THE HOUSE OF REPRESENTATIVES

                            August 23, 2022

Mr. Casten (for himself, Mr. Krishnamoorthi, Ms. Bonamici, Mr. Levin of 
  California, Mr. Soto, and Mr. Tonko) introduced the following bill; 
       which was referred to the Committee on Energy and Commerce

_______________________________________________________________________

                                 A BILL


 
To require Transmission Organizations to allow bids from aggregators of 
           certain retail customers, 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 ``Responsive Energy Demand Unlocks 
Clean Energy Act'' or the ``REDUCE Act''.

SEC. 2. AGGREGATOR BIDDING INTO ORGANIZED POWER MARKETS.

    (a) In General.--Notwithstanding any prohibition established by a 
relevant electric retail regulatory authority with respect to who may 
bid into an organized power market, each Transmission Organization 
shall allow any bid from an aggregator of retail customers that 
aggregates the demand response of the customers of utilities that 
distributed more than 4 million megawatt-hours in the previous fiscal 
year.
    (b) Rulemaking.--Not later than 90 days after the date of enactment 
of this section, the Federal Energy Regulatory Commission shall 
initiate a rulemaking to carry out the requirements of subsection (a).
    (c) Definitions.--In this section:
            (1) Electric retail regulatory authority.--The term 
        ``electric retail regulatory authority'' means an entity that 
        establishes retail electricity prices and retail competition 
        policies for customers.
            (2) Transmission organization.--The term ``Transmission 
        Organization'' has the meaning given such term in section 3 of 
        the Federal Power Act (16 U.S.C. 796).
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