[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 1232 Introduced in Senate (IS)]

114th CONGRESS
  1st Session
                                S. 1232

  To amend the Energy Independence and Security Act of 2007 to modify 
    provisions relating to smart grid modernization, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 6, 2015

   Mr. Wyden introduced the following bill; which was read twice and 
       referred to the Committee on Energy and Natural Resources

_______________________________________________________________________

                                 A BILL


 
  To amend the Energy Independence and Security Act of 2007 to modify 
    provisions relating to smart grid modernization, 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 Act of 2015''.

SEC. 2. SMART GRID INTEROPERABILITY WORKING GROUP.

    Section 1303 of the Energy Independence and Security Act of 2007 
(42 U.S.C. 17383) is amended--
            (1) by striking the section designation and heading and 
        inserting the following:

``SEC. 1303. SMART GRID ADVISORY COMMITTEE; SMART GRID TASK FORCE; 
              SMART GRID INTEROPERABILITY WORKING GROUP.'';

            (2) by redesignating subsection (c) as subsection (d);
            (3) by inserting after subsection (b) the following:
    ``(c) Smart Grid Interoperability Working Group.--
            ``(1) Establishment.--Not later than 180 days after the 
        date of enactment of this paragraph, the Secretary, in 
        collaboration with the National Institute of Standards and 
        Technology of the Department of Commerce, the Institute of 
        Electrical and Electronics Engineers, and the Smart Grid 
        Interoperability Panel, shall establish a working group, to be 
        known as the `Smart Grid Interoperability Working Group'--
                    ``(A) to identify additional efforts the Federal 
                Government can take to better promote the establishment 
                and adoption of open standards that enhance 
                connectivity and interoperability on the electric grid;
                    ``(B) to study the market and policy barriers to 
                deploying responsive appliances at scale; and
                    ``(C) to develop a plan for establishing and 
                promoting the widespread adoption of interoperability 
                standards.
            ``(2) Membership.--The Smart Grid Interoperability Working 
        Group shall include such representatives as the Secretary 
        determines to be appropriate from--
                    ``(A) appliance manufacturers;
                    ``(B) utilities;
                    ``(C) software providers;
                    ``(D) energy efficiency and environmental 
                stakeholders; and
                    ``(E) relevant Federal departments and agencies.
            ``(3) Report.--Not later than 18 months after the date of 
        enactment of this paragraph, the Smart Grid Interoperability 
        Working Group shall submit to the Secretary a report that 
        describes the initial findings and recommendations of the Smart 
        Grid Interoperability Working Group, as described in paragraph 
        (1).''; and
            (4) in subsection (d) (as redesignated by paragraph (2)), 
        by striking ``and Smart Grid Task Force'' and inserting ``, the 
        Smart Grid Task Force, and the Smart Grid Interoperability 
        Working Group''.

SEC. 3. SMART GRID TECHNOLOGY RESEARCH, DEVELOPMENT, AND DEMONSTRATION 
              PROGRAM POLICY.

    Section 1304 of the Energy Independence and Security Act of 2007 
(42 U.S.C. 17384) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), in the second sentence, by 
                inserting ``and lessons learned from demonstration 
                projects implemented under this section'' before the 
                period at the end;
                    (B) in paragraph (2)--
                            (i) in subparagraph (D), by striking 
                        ``and'' at the end;
                            (ii) in subparagraph (E), by striking the 
                        period at the end and inserting ``; and''; and
                            (iii) by adding at the end the following:
                    ``(F) to identify best practices for the 
                implementation of the Fair Information Practice 
                Principles (FIPPS) of the Federal Trade Commission for 
                the collection, use, disclosure, and retention of 
                individual customer information.''; and
                    (C) in paragraph (3)--
                            (i) in subparagraph (A)--
                                    (I) by striking the subparagraph 
                                designation and heading and all that 
                                follows through ``the initiative'' and 
                                inserting the following:
                    ``(A) Financial assistance.--
                            ``(i) In general.--In carrying out the 
                        Initiative, subject to clause (ii)''; and
                                    (II) by adding at the end the 
                                following:
                            ``(ii) Requirement.--In selecting smart 
                        grid demonstration projects to receive 
                        assistance under this subparagraph, the 
                        Secretary shall ensure, to the maximum extent 
                        practicable--
                                    ``(I) geographical diversity; and
                                    ``(II) diversity among types of 
                                electricity markets and regulatory 
                                environments.'';
                            (ii) by redesignating subparagraphs (B) 
                        through (F) as subparagraphs (C) through (G), 
                        respectively;
                            (iii) by inserting after subparagraph (A) 
                        the following:
                    ``(B) Additional demonstration project funding.--
                            ``(i) In general.--In carrying out the 
                        Initiative, in addition to financial assistance 
                        provided under subparagraph (A), the Secretary 
                        shall provide grants, on a competitive basis, 
                        for demonstration projects in any of the 
                        following 7 program areas:
                                    ``(I) Transactive energy.--Projects 
                                that implement a system of economic or 
                                control mechanisms that optimizes the 
                                dynamic balance of supply and demand 
                                across the electrical infrastructure, 
                                using economic value as a key 
                                operational parameter.
                                    ``(II) Innovation in valuation of 
                                new technology grid services and 
                                efficiency.--Projects that implement 
                                innovative ways of valuing the grid 
                                services provided by demand response, 
                                energy efficiency, distributed 
                                generation, electric vehicles, and 
                                storage.
                                    ``(III) Rate design-distribution 
                                system.--Projects that implement rates, 
                                such as 3-part rates, to equitably 
                                ensure cost-recovery and the 
                                reliability of the distribution grid, 
                                while also supporting the increased 
                                penetration of distributed generation, 
                                storage, and electric vehicles.
                                    ``(IV) Rate design-consumer 
                                acceptance of time-based pricing.--
                                Projects that--
                                            ``(aa) study consumer 
                                        adoption of time-based retail 
                                        electricity rates through the 
                                        implementation of time-based 
                                        rates, in conjunction with 
                                        randomized control trials; and
                                            ``(bb) may--

                                                    ``(AA) provide to 
                                                customers a range of 
                                                time-based pricing 
                                                options, as well as 
                                                options to adopt 
                                                enabling technology; 
                                                and

                                                    ``(BB) implement a 
                                                heterogeneity of 
                                                marketing and outreach 
                                                approaches.

                                    ``(V) Energy storage.--Projects 
                                that demonstrate innovative approaches 
                                for using energy storage for grid 
                                services, including--
                                            ``(aa) flexibility; and
                                            ``(bb) the integration of 
                                        intermittent renewable energy.
                                    ``(VI) Smart electric vehicle 
                                charging.--Projects that--
                                            ``(aa) demonstrate 
                                        innovative approaches for 
                                        integrating electric vehicles 
                                        into grid operations; or
                                            ``(bb) produce, test, and 
                                        certify to IEEE/UL standards 
                                        bidirectional power electronics 
                                        for electric vehicles.
                                    ``(VII) Other program area.--
                                Projects in 1 additional program area 
                                that the Secretary may identify, by 
                                regulation.
                            ``(ii) Priority requirements.--In selecting 
                        demonstration projects to receive grants under 
                        clause (i), the Secretary shall give priority 
                        to--
                                    ``(I) for demonstration projects 
                                described in subclause (I) of clause 
                                (i), projects that--
                                            ``(aa) incorporate real-
                                        time prices and technologies 
                                        that allow prices to be 
                                        directly delivered to end-user 
                                        devices (an approach commonly 
                                        known as `prices to devices'); 
                                        or
                                            ``(bb) advance device 
                                        visibility in grid system 
                                        operations;
                                    ``(II) for demonstration projects 
                                described in subclause (II) of clause 
                                (i), projects that address valuation of 
                                ancillary services, capacity, and 
                                services offered in price-responsive 
                                markets;
                                    ``(III) for demonstration projects 
                                described in subclause (III) of clause 
                                (i), projects that assess--
                                            ``(aa) the impact of the 
                                        rates described in that 
                                        subclause on customer 
                                        electricity consumption 
                                        patterns;
                                            ``(bb) customer interest 
                                        and enrollment in the new 
                                        rates;
                                            ``(cc) the impact of rates 
                                        on the economics of distributed 
                                        generation and storage;
                                            ``(dd) the impact of rates 
                                        on consumer adoption patterns 
                                        of distributed generation and 
                                        storage; or
                                            ``(ee) the effectiveness of 
                                        various educational outreach 
                                        measures in presenting the 
                                        rates to customers;
                                    ``(IV) for demonstration projects 
                                described in subclause (IV) of clause 
                                (i), projects that--
                                            ``(aa) investigate the 
                                        effects on customer 
                                        participation and satisfaction 
                                        rates of--

                                                    ``(AA) choice 
                                                architecture, such as 
                                                defaulting to an opt-
                                                in, versus an opt-out, 
                                                program; and

                                                    ``(BB) enabling 
                                                technology; or

                                            ``(bb) demonstrate how the 
                                        lessons learned from the study 
                                        described in that subclause can 
                                        be used to develop a rate 
                                        transition plan that 
                                        facilitates significant and 
                                        lasting enrollment in the new 
                                        rates with a high degree of 
                                        customer satisfaction;
                                    ``(V) for demonstration projects 
                                described in subclause (V) of clause 
                                (i), projects that maximize--
                                            ``(aa) benefits to 
                                        intermittent renewable energy 
                                        generation; and
                                            ``(bb) the range of grid 
                                        services provided by storage; 
                                        and
                                    ``(VI) for demonstration projects 
                                described in subclause (VI) of clause 
                                (i), projects that demonstrate methods 
                                of--
                                            ``(aa) maximizing the grid 
                                        services provided by electric 
                                        vehicles; and
                                            ``(bb) minimizing load 
                                        spikes and grid costs 
                                        associated with electric 
                                        vehicles.'';
                            (iv) in subparagraph (C) (as redesignated 
                        by clause (ii))--
                                    (I) by striking ``subparagraph (A) 
                                shall be carried out'' and inserting 
                                the following: ``subparagraph (A) or 
                                (B) shall be--
                            ``(i) carried out'';
                                    (II) by striking the period at the 
                                end and inserting ``; and''; and
                                    (III) by adding at the end the 
                                following:
                            ``(ii) given priority in selection for 
                        assistance based on the extent to which the 
                        project demonstrates strong collaboration 
                        among--
                                    ``(I) State energy agencies;
                                    ``(II) State public utility and 
                                public service commissions;
                                    ``(III) electric utilities;
                                    ``(IV) power aggregators; and
                                    ``(V) if applicable, independent 
                                system operators, regional transmission 
                                organizations, or wholesale market 
                                operators.'';
                            (v) in subparagraph (D) (as redesignated by 
                        clause (ii)), by striking ``subparagraph (B)'' 
                        and inserting ``subparagraph (C)'';
                            (vi) in subparagraph (E) (as redesignated 
                        by clause (ii)), by striking the subparagraph 
                        designation and heading and all that follows 
                        through ``No person'' and inserting the 
                        following:
                    ``(E) Eligibility for other funding.--
                            ``(i) In general.--A person or entity that 
                        receives financial assistance for a 
                        demonstration project in any program area 
                        described in subparagraph (A) or any of 
                        subclauses (I) through (VII) of subparagraph 
                        (B)(i) may be eligible to receive assistance 
                        under any other such program area, if the 
                        person or entity establishes to the 
                        satisfaction of the Secretary a synergy between 
                        the program areas.
                            ``(ii) Ineligibility.--No person''; and
                            (vii) in subparagraph (F) (as redesignated 
                        by clause (ii))--
                                    (I) in the first sentence, by 
                                striking ``The Secretary'' and 
                                inserting the following:
                            ``(i) Establishment of clearinghouse.--The 
                        Secretary'';
                                    (II) by striking the second 
                                sentence and inserting the following:
                            ``(ii) Provision of information.--As a 
                        condition of receiving financial assistance 
                        under this subsection, a utility or other 
                        participant in a smart grid demonstration 
                        project shall provide such information as the 
                        Secretary may require, to become available 
                        through the smart grid information 
                        clearinghouse and for purposes of producing the 
                        reports described in subclauses (IV) and (V) of 
                        clause (iv), in such form and at such time as 
                        the Secretary may require.'';
                                    (III) in the third sentence, by 
                                striking ``The Secretary shall assure'' 
                                and inserting the following:
                            ``(iii) Protected information.--The 
                        Secretary shall ensure''; and
                                    (IV) by adding at the end the 
                                following:
                            ``(iv) Working groups.--
                                    ``(I) Establishment.--For each 
                                program area described in subparagraph 
                                (A) or any of subclauses (I) through 
                                (VII) of subparagraph (B)(i), the 
                                Secretary shall establish a working 
                                group, to be composed of 
                                representatives of each project 
                                selected to receive assistance within 
                                that program area.
                                    ``(II) Meetings.--Each working 
                                group established under subclause (I) 
                                shall meet not less frequently than 
                                once every 90 days.
                                    ``(III) Participation required.--As 
                                a condition of receiving financial 
                                assistance under this subsection, the 
                                owner or operator of a demonstration 
                                project shall designate a 
                                representative of the project to serve 
                                as a member of the applicable working 
                                group established under subclause (I), 
                                including by attending each meeting of 
                                the working group under subclause (II).
                                    ``(IV) Reports.--Each working group 
                                established under subclause (I) shall 
                                submit to the Secretary reports 
                                regarding the demonstrations projects 
                                carried out by members of the working 
                                group, at such times and containing 
                                such information as the Secretary may 
                                require.
                                    ``(V) Publication.--The Secretary 
                                shall periodically publish reports and 
                                other appropriate informational 
                                materials for use, within each program 
                                area described in subclause (I), by--
                                            ``(aa) State regulators;
                                            ``(bb) wholesale market 
                                        operators;
                                            ``(cc) electric utilities; 
                                        and
                                            ``(dd) such other 
                                        individuals and entities as the 
                                        Secretary determines to be 
                                        appropriate.''; and
            (2) by striking subsection (c) and inserting the following:
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section for 
each of fiscal years 2017 through 2021.''.

SEC. 4. FEDERAL MATCHING FUND FOR SMART GRID INVESTMENT COSTS.

    Section 1306(f) of the Energy Independence and Security Act of 2007 
(42 U.S.C. 17386(f)) is amended by striking ``fiscal years 2008 through 
2012'' and inserting ``each of fiscal years 2017 through 2021''.
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