1.This Act may be cited as the
Smart Grid Advancement
Act
.
2.For purposes of this Act, the terms:
(1)Secretary
means the
Secretary of Energy.
(2)Administrator
means the Administrator of the Environmental Protection Agency.
(3)Commission
means Federal Energy Regulatory Commission.
(4)Smart grid
has the meaning
provided by section 1301 of the Energy Independence and Security Act of 2007
(15 U.S.C. 17381).
(5)Peak demand
reduction
means the reduction in annual peak demand as compared to a
previous baseline year or period, expressed in Megawatts (MW).
(6)Peak
demand
shall mean the highest point of electricity demand during any
hour on the system of a load serving entity during a annual calendar year,
expressed in megawatts, or more than one such high point of electricity demand
as a function of seasonal demand changes.
(7)Peak
period
shall mean the time period on the system of a load serving
entity relative to peak demand that may warrant special measures or electricity
resources to maintain system reliability while meeting peak demand.
(8)Load
serving entity
means an entity that provides electricity directly to
retail consumers with the responsibility to assure power quality and
reliability, including such entities that are investor-owned, publicly owned,
owned by rural electric cooperatives, or other entities.
(9)Applicable
baseline
shall mean the average of the highest three annual peak
demands a load serving entity has experienced during the 5 years immediately
prior to the date of enactment of this Act.
(10)Peak load
reduction plan
means a plan developed by or for a load serving entity
that it will implement to meet its peak demand management goals.
3.
Incorporation of smart grid capability in Energy Star Program
(a)Within one year after the date of enactment
of this Act, the Secretary and the Administrator shall each assess the
potential for cost-effective integration of Smart Grid technologies and
capabilities in all products that are reviewed by the Department of Energy and
the Environmental Protection Agency, respectively, for potential designation as
Energy Star products.
(b)(1)Within 2 years after the
date of enactment of this Act, the Secretary and the Administrator shall each
prepare an analysis of the potential energy savings and electricity cost
savings that could accrue for each of the products referred to in subsection
(a) in the following optimal circumstances:
(A)The products
possessed full Smart Grid capability.
(B)The products were
utilized in an electricity utility service area which had Smart Grid capability
and time-of-use electric rates.
(C)The time-of-use
rates reflected national average utility rates including average peak and
valley daily electricity costs to the utility.
(D)Consumers using
such products took full advantage of such capability.
(2)The analysis under paragraph (1) shall be
considered the best case
Smart Grid analysis. On the basis of
such an analysis for each product, the Secretary and the Administrator shall
determine whether the installation of Smart Grid capability for such a product
would be cost effective. For purposes of this paragraph, the term cost
effective
means that the cumulative savings from using the product
under the best case
Smart Grid circumstances for a period of 5
years will be greater than the incremental cost of the Smart Grid features
included in the product.
(3)To the extent that including Smart
Grid capability in any products analyzed under paragraph (2) yielded a finding
that doing so was cost effective in the best case, the Secretary and the
Administrator shall, not later than 3 years after the date of enactment of this
Act take each of the following actions:
(A)Inform the manufacturer of such
product of such finding.
(B)Make special note in a prominent
manner on any Energy Star label for any product actually including Smart Grid
capability that—
(i)Smart Grid capability is a feature
of that product;
(ii)the use and value of those
features depended on the Smart Grid capability of the utility system in which
the product was installed and the use of those features by the customer;
and
(iii)on a utility system with Smart
Grid capability, the use of the product’s Smart Grid capability could
potentially reduce the cost of the product’s annual operation by an estimated
dollar amount representing the result of incremental energy and electricity
cost savings that would result from the Smart Grid best case for that
product.
(C)Submit a report to Congress
summarizing the results of the analyses for each class of products, and
presenting the potential national energy and electricity cost savings that
could be realized if cost-effective Smart Grid capability were installed in the
relevant products reviewed by the Energy Star program.
4.Smart Grid Peak
Demand Reduction Goals
(a)Not later than one year after the date of
enactment of this Act, load serving entities, or States, shall determine and
publish peak demand reduction goals for any load serving entities that have an
applicable baseline in excess of 250 megawatts.
(b)(1)The Commission, in
consultation with the Secretary, shall develop and publish, after an
opportunity for public comment, 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 any other appropriate factors external to peak load
management, as determined by the Commission.
(2)The Commission shall support load
serving entities in determining their applicable baselines, and in developing
their peak demand reduction goals, including any load serving entity with an
applicable baseline of less than 250 megawatts that volunteers to participate
in achieving the purposes of this Act.
(3)The Secretary, in consultation with
the Commission and the National Electric Reliability Corporation, shall develop
a system and rules for measurement and verification of demand
reductions.
(c)Peak demand
reduction goals(1)Peak demand reduction goals may be
established for an individual load serving entity, or, at the determination of
a State or regional entity, by that State or regional entity for a larger
region that shares a common system peak demand and for which peak demand
reduction measures would offer regional benefit.
(2)A State or regional entity
establishing peak demand reduction goals shall cooperate, as necessary and
appropriate, with the Commission, the Secretary, State regulatory commissions,
State energy offices, the National Electric Reliability Corporation, and other
relevant authorities.
(3)In determining the applicable peak
demand reduction goals, States and other jurisdictional entities may utilize
the results of the 2009 National Demand Response Potential Assessment, as
authorized by section 529 of the Energy Independence and Security Act of
2007.
(4)The applicable peak demand reduction
goals shall provide that—
(A)load serving entities will reduce or
mitigate peak demand by a minimum percentage amount from the applicable
baseline to a lower peak demand during calendar year 2012;
(B)load serving entities will reduce or
mitigate peak demand by a minimum percentage greater amount from the applicable
baseline to a lower peak demand during calendar year 2015; and
(C)the minimum percentage reductions
selected are the percentage reductions that are realistically achievable with
an aggressive effort to deploy smart grid and peak demand reduction
technologies and methods, including but not limited to those listed in
subsection (d).
(d)Each
load serving entity shall prepare a peak load reduction plan that demonstrates
its ability to meet each applicable goal by any or a combination of the
following options:
(1)Direct reduction
in megawatts of peak demand through energy efficiency measures with reliable
and continued application during peak demand periods.
(2)Demonstration that
an amount of megawatts equal to a stated portion of the applicable goal is
contractually committed to be available for peak reduction through one or more
of the following:
(A)Megawatts enrolled
in demand response programs.
(B)Megawatts subject
to the ability of a load serving entity to call on demand response programs,
smart appliances, smart electricity storage devices, distributed generation
resources on the entity’s customers’ premises, or other measures directly
capable of actively, controllably, reliably, and dynamically reducing peak
demand (dynamic peak management control
).
(C)Megawatts
available from distributed dynamic electricity storage under agreement with the
owner of that storage.
(D)Megawatts
committed from dispatchable distributed generation demonstrated to be reliable
under peak period conditions.
(E)Megawatts
available from smart appliances and equipment with smart grid capability
available for direct control by the utility through agreement with the customer
owning the appliances or equipment.
(F)Megawatts from a
demonstrated and assured minimum of distributed solar electric generation
capacity in instances where peak period and peak load conditions are directly
related to solar radiation and accompanying heat.
(3)If any of the
methods listed in subparagraph (C), (D), or (E) of paragraph (2) are relied
upon to meet its peak demand reduction goals, the load serving entity must
demonstrate this capability by operating a test during the applicable calendar
year.
(4)Nothing in this
Act shall require the publication in peak demand reduction goals or in any peak
demand reduction plan of any information that is confidential for competitive
or other reasons or that identifies individual customers.
(e)Existing
authority and requirementsNothing in this Act diminishes or
supersedes any authority of a State or political subdivision of a State to
adopt or enforce any law or regulation respecting peak load management, demand
response, distributed storage, use of distributed generation, or the regulation
of load serving entities. The Commission, in consultation with States having
such peak management, demand response and distributed storage programs, shall
to the maximum extent practicable, facilitate coordination between the Federal
program and such State programs.
(f)The
Commission may, for good cause, grant relief to load serving entities from the
requirements of this section.
(g)Except as provided in subsections (e) and (f), no law or
regulation shall relieve any person of any requirement otherwise applicable
under this section.
(h)(1)The Commission shall
within one year after the enactment of this Act establish a public domain
website where the Commission will provide information and data demonstrating
compliance by States, regional entities, and load serving entities with this
Act, including the success of load serving entities in meeting applicable peak
demand reduction goals.
(2)The Commission shall, by April 1 of
each year beginning in 2012, provide a report to Congress on compliance with
this Act and success in meeting applicable peak demand reduction goals and, as
appropriate, shall make recommendations as to how to increase peak demand
reduction efforts.
(3)The Commission shall note in each
such report any State, political subdivision of a State, or load serving entity
that has failed to comply with this Act, or is not a part of any region or
group of load serving entities serving a region that has complied with this
Act.
(4)The Commission shall have and
exercise the authority to take reasonable steps to modify the process of
establishing peak demand reduction goals and to accept adjustments to them as
appropriate when sought by load serving entities.
(i)
(1)The
Secretary may make grants to States and to other entities with responsibilities
to be carried out under the Act to offset any documented costs of carrying out
such responsibilities to the extent such costs are deemed burdensome or
extraordinary by the Secretary.
(2)There are authorized to be appropriated
sums as may be necessary to the Commission, the Secretary, and the
Administrator to carry out the provisions of this Act.
5.
Reauthorization of energy efficiency public information program to include
Smart Grid informationSection
134 of the Energy Policy Act of 2005 (42 U.S.C. 15832) is amended as
follows:
(1)By amending the
title heading to read Energy
Efficiency and Smart Grid Public Information
Initiative.
.
(2)In subsection
(a)(1) by striking reduce energy consumption during the 4-year period
beginning on the date of enactment of this Act
and inserting
increase energy efficiency and to adopt Smart Grid technology and
practices
.
(3)In subsection
(a)(2) by striking benefits to consumers of reducing
and
inserting economic and environmental benefits to consumers and the
United States of optimizing
.
(4)In subsection
(a)(3) by inserting at the beginning of that subsection the effect of
energy efficiency and Smart Grid capability in reducing energy and electricity
prices throughout the economy, together with
.
(5)In subsection
(a)(4) by redesignating subparagraph (D) as (E), by striking and
at the end of subparagraph (C), and by inserting after subparagraph (C) the
following:
(D)purchasing and utilizing equipment that
includes smart grid features and capability;
and
.
(6)In subsection (c),
by striking Not later than July 1, 2009,” and inserting, “For each year
when appropriations pursuant to the authorization in this section exceed
$10,000,000,
.
(7)In subsection (d)
by striking 2010
and inserting 2020
.
(8)In subsection (e)
by striking 2010
and inserting 2020
.
6.Inclusion of
Smart Grid Features in Appliance Rebate Program
(a)Section 124 of the Energy Policy Act of
2005 (42 U.S.C. 15821) is amended as follows:
(1)By amending the
section heading to read Energy efficient and smart appliance rebate
program.
.
(2)By redesignating
paragraphs (4) and (5) as (5) and (6) and inserting after paragraph (3) the
following:
(4)The term
smart appliance
means a product that the Administrator of the
Environmental Protection Agency or the secretary of Energy has determined
qualifies for such a designation in the Energy Star program pursuant to section
213 of the Smart Grid Advancement Act or that the Secretary or the
Administrator has separately determined includes the relevant Smart Grid
capabilities listed in section 1301 of the Energy Independence and Security Act
of 2007 (15 U.S.C.
17381).
.
(3)In subsection
(b)(1) by inserting and smart
after efficient
and
by inserting after products
the first place it appears ,
including products designated as being smart appliances,
.
(4)In subsection
(b)(3), by inserting the administration of
after carry
out
.
(5)In subsection (d),
by inserting the administration of
after carrying
out
and by inserting , and up to 100 percent of the value of the
rebates provided pursuant to this section
before the period at the
end.
(6)In subsection
(e)(3), by inserting with separate consideration as applicable if the
product is also a smart appliance,
after Energy Star
product
the first place it appears and by inserting or smart
appliance
before the period at the end.
(7)In subsection (f),
by striking $50,000,000
through the period at the end and
inserting such sums as may be necessary for each fiscal year from 2010
through 2015.
.
(b)The item relating to
section 124 in the table of contents for the Energy Policy Act of 2005 (42
U.S.C. 15801 and following) is amended to read as follows:
Sec. 124. Energy efficient and smart
appliance rebate
program.
.