[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2685 Introduced in House (IH)]
113th CONGRESS
1st Session
H. R. 2685
To incorporate smart grid capability into the Energy Star Program, to
reduce peak electric demand, to reauthorize a energy efficiency public
information program to include Smart Grid information, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 11, 2013
Mr. McNerney (for himself and Mr. Cartwright) introduced the following
bill; which was referred to the Committee on Energy and Commerce
_______________________________________________________________________
A BILL
To incorporate smart grid capability into the Energy Star Program, to
reduce peak electric demand, to reauthorize a energy efficiency public
information program to include Smart Grid information, 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 ``Smart Grid Advancement Act of
2013''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Environmental Protection Agency.
(2) Applicable baseline.--The term ``applicable baseline''
means 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.
(3) Commission.--The term ``Commission'' means the Federal
Energy Regulatory Commission.
(4) Load-serving entity.--The term ``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.
(5) Peak demand.--The term ``peak demand'' means the
highest point of electricity demand, net of any distributed
electricity generation or storage from sources on the load-
serving entity's customers' premises, during any hour on the
system of a load-serving entity during a calendar year,
expressed in megawatts (MW), or more than one such high point
as a function of seasonal demand changes.
(6) Peak demand reduction.--The term ``peak demand
reduction'' means the reduction in annual peak demand as
compared to a previous baseline year or period, expressed in
megawatts (MW), whether accomplished by--
(A) diminishing the end-use requirements for
electricity;
(B) use of locally stored energy or generated
electricity to meet those requirements from distributed
resources on the load-serving entity's customers'
premises and without use of high-voltage transmission;
or
(C) energy savings from efficient operation of the
distribution grid resulting from the use of a Smart
Grid.
(7) Peak demand reduction plan.--The term ``peak demand
reduction plan'' means a plan developed by or for a load-
serving entity that it will implement to meet its peak demand
reduction goals.
(8) Peak period.--The term ``peak period'' means 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.
(9) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(10) Smart grid.--The term ``Smart Grid'' has the meaning
provided by section 1301 of the Energy Independence and
Security Act of 2007 (42 U.S.C. 17381).
SEC. 3. ASSESSMENT OF SMART GRID COST EFFECTIVENESS IN PRODUCTS.
(a) Assessment.--Not later than 1 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) Analysis.--(1) Not later than 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, greenhouse gas
emission reductions, and electricity cost savings that could accrue for
each of the products identified by the assessment in subsection (a) in
the following optimal circumstances:
(A) The products possessed Smart Grid capability and
interoperability that is tested and proven reliable.
(B) The products were utilized in an electricity utility
service area which had Smart Grid capability and offered
customers rate or program incentives to use the products.
(C) The utility's rates reflected national average costs,
including average peak and valley seasonal and daily
electricity costs.
(D) Consumers using such products took full advantage of
such capability.
(E) The utility avoided incremental investments and rate
increases related to such savings.
(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 one-half
of the product's expected useful life 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) is found to be 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
of cost effectiveness.
(B) Assess the potential contributions the development and
use of products with Smart Grid technologies bring to reducing
peak demand and promoting grid stability.
(C) Assess the potential national energy savings and
electricity cost savings that could be realized if Smart Grid
potential were installed in the relevant products reviewed by
the Energy Star program.
(D) Assess and identify options for providing consumers
information on products with Smart Grid capabilities, including
the necessary conditions for cost-effective savings.
(E) Submit a report to Congress summarizing the results of
the assessment for each class of products, and presenting the
potential energy and greenhouse gas savings that could result
if Smart Grid capability were installed and utilized on such
products.
SEC. 4. INCLUSIONS OF SMART GRID CAPABILITY ON APPLIANCE ENERGY GUIDE
LABELS.
Section 324(a)(2) of the Energy Policy and Conservation Act (42
U.S.C. 6294(a)(2)) is amended by adding the following at the end:
``(J)(i) Not later than 1 year after the date of
enactment of this subparagraph, the Federal Trade
Commission shall initiate a rulemaking to consider
making a special note in a prominent manner on any
ENERGY GUIDE 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 that feature
depended on the Smart Grid capability of the
utility system in which the product was
installed and the active utilization of that
feature by the customer; and
``(III) on a utility system with Smart Grid
capability, the use of the product's Smart Grid
capability could reduce the customer's cost of
the product's annual operation by an estimated
dollar amount range representing the result of
incremental energy and electricity cost savings
that would result from the customer taking full
advantage of such Smart Grid capability.
``(ii) Not later than 3 years after the date of
enactment of this subparagraph, the Commission shall
complete the rulemaking initiated under clause (i).''.
SEC. 5. SMART GRID PEAK DEMAND REDUCTION GOALS.
(a) Goals.--Not later than 1 year after the date of enactment of
this section, each load-serving entity, or, at the option of the State,
each State with respect to load-serving entities that the State
regulates, shall determine and publish peak demand reduction goals for
any load-serving entities that have an applicable baseline in excess of
250 megawatts.
(b) Baselines.--(1) The Commission, in consultation with the
Secretary and the Administrator, shall develop and publish, after an
opportunity for public comment, but not later than 180 days after the
date of enactment of this section, 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 demand management, as determined
by the Commission.
(2) The Commission shall support load-serving entities (including
any load-serving entities with an applicable baseline of less than 250
megawatts that volunteer to participate) in determining their
applicable baselines and in developing their peak demand reduction
goals.
(3) The Secretary, in consultation with the Commission, the
Administrator, and the North American 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, tribal, or regional entity, by that State,
tribal, 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 North American Electric Reliability Corporation, and other
relevant authorities.
(3) In determining the applicable peak demand reduction goals--
(A) States and other jurisdictional entities may utilize
the results of the 2009 National Assessment of Demand Response
Potential, as authorized by section 571 of the National Energy
Conservation Policy Act (42 U.S.C. 8279); and
(B) the relative economics of peak demand reduction and
generation required to meet peak demand shall be evaluated in a
neutral and objective manner.
(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 2015;
(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
2018; and
(C) the minimum percentage reductions established as peak
demand reduction goals shall be the maximum reductions that are
realistically achievable with an aggressive effort to deploy
Smart Grid and peak demand reduction technologies and methods,
including those listed in subsection (d).
(d) Plan.--Each load-serving entity shall prepare a peak demand
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--
(A) energy efficiency measures (including efficient
transmission wire technologies which significantly
reduce line loss compared to traditional wire
technology) with reliable and continued application
during peak demand periods; or
(B) use of a Smart Grid.
(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 or energy 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 or energy storage under agreement with the
owner of that storage.
(D) Megawatts committed from dispatchable
distributed generation demonstrated to be reliable
under peak period conditions and in compliance with air
quality regulations.
(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 or with
a third party pursuant to such agreements.
(F) Megawatts from a demonstrated and assured
minimum of distributed solar electric generation
capacity in instances where peak period and peak demand
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 section 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 Requirements.--Nothing in this section
diminishes or supersedes any authority of a State or political
subdivision of a State to adopt or enforce any law or regulation
respecting peak demand management, demand response, distributed energy
storage, use of distributed generation, or the regulation of load-
serving entities. The Commission, in consultation with States and
Indian tribes having such peak demand management, demand response, and
distributed energy storage programs, shall to the extent practicable,
facilitate coordination between the Federal program and such State and
tribal programs.
(f) Relief.--The Commission may, for good cause, grant relief to
load-serving entities from the requirements of this section.
(g) Other Laws.--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) Compliance.--(1) The Commission shall, not later than 1 year
after the date of enactment of this Act, establish a public Web site
where the Commission shall provide information and data demonstrating
compliance by States, Indian tribes, regional entities, and load-
serving entities with this section, 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
2015, provide a report to Congress on compliance with this section 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 section, or is not a part of any region or
group of load-serving entities serving a region that has complied with
this section.
(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) Assistance and Funding.--
(1) Assistance.--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) Funding.--There are authorized to be appropriated such
sums as may be necessary to the Commission, the Secretary, and
the Administrator to carry out the provisions of this Act.
SEC. 6. REAUTHORIZATION OF ENERGY EFFICIENCY PUBLIC INFORMATION PROGRAM
TO INCLUDE SMART GRID INFORMATION.
(a) In General.--Section 134 of the Energy Policy Act of 2005 (42
U.S.C. 15832) is amended as follows:
(1) By amending the section heading to read as follows:
``energy efficiency and smart grid public information
initiative''.
(2) In paragraph (1) of subsection (a), 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 paragraph (2) of subsection (a), 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), by inserting at the beginning of
paragraph (3) ``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 subparagraph (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
``2022''.
(8) In subsection (e) by striking ``2010'' and inserting
``2022''.
(b) Table of Contents.--The item relating to section 134 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. 134. Energy efficiency and Smart Grid public information
initiative.''.
SEC. 7. INCLUSION OF SMART GRID FEATURES IN APPLIANCE REBATE PROGRAM.
(a) Amendments.--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 as follows:
``energy efficient and smart appliance rebate program.''.
(2) By redesignating paragraphs (4) and (5) of subsection
(a) as paragraphs (5) and (6), respectively, and inserting
after paragraph (3) the following:
``(4) Smart appliance.--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 3 of the Smart Grid Advancement Act of 2013, 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 (42
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 ``$100,000,000 for each
fiscal year from 2014 through 2019.''.
(b) Table of Contents.--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.''.
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