[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 2445 Introduced in Senate (IS)]

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115th CONGRESS
  2d Session
                                S. 2445

 To provide for the modernization of the electric grid, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 15, 2018

Ms. Cantwell (for herself, Mr. Heinrich, and Ms. Hirono) introduced the 
 following bill; which was read twice and referred to the Committee on 
                      Energy and Natural Resources

_______________________________________________________________________

                                 A BILL


 
 To provide for the modernization of 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Grid Modernization 
Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Grid storage program.
Sec. 4. Technology demonstration on the distribution system.
Sec. 5. Micro-grid and hybrid micro-grid systems program.
Sec. 6. Electric grid architecture, scenario development, and modeling.
Sec. 7. Voluntary model pathways.
Sec. 8. Performance metrics for electricity infrastructure providers.
Sec. 9. Voluntary State, regional, and local electricity distribution 
                            planning.
Sec. 10. Authorization of appropriations.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Department.--The term ``Department'' means the 
        Department of Energy.
            (2) National laboratory.--The term ``National Laboratory'' 
        has the meaning given the term in section 2 of the Energy 
        Policy Act of 2005 (42 U.S.C. 15801).
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.

SEC. 3. GRID STORAGE PROGRAM.

    (a) In General.--The Secretary shall conduct a program of research, 
development, and demonstration 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, electric thermal, electromechanical, and 
        electrochemical systems research;
            (2) power conversion technologies research;
            (3) developing--
                    (A) empirical and science-based industry standards 
                to compare the storage capacity, cycle length and 
                capabilities, and reliability of different types of 
                electricity storage; and
                    (B) validation and testing techniques;
            (4) other fundamental and applied research critical to 
        widespread deployment of electricity storage;
            (5) device development that builds on results from research 
        described in paragraphs (1), (2), and (4), including 
        combinations of power electronics, advanced optimizing 
        controls, and energy storage as a general purpose element of 
        the electric grid;
            (6) grid-scale testing and analysis of storage devices, 
        including test-beds and field trials;
            (7) cost-benefit analyses that inform capital expenditure 
        planning for regulators and owners and operators of components 
        of the electric grid;
            (8) electricity storage device safety and reliability, 
        including potential failure modes, mitigation measures, and 
        operational guidelines;
            (9) standards for storage device performance, control 
        interface, grid interconnection, and interoperability; and
            (10) maintaining a public database of energy storage 
        projects, policies, codes, standards, and regulations.
    (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 
demonstration of technology developed under this section.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary to carry out this section $50,000,000 for 
each of fiscal years 2018 through 2027.
    (e) No Effect on Other Provisions of Law.--Nothing in this Act or 
an amendment made by this Act authorizes regulatory actions that would 
duplicate or conflict with regulatory requirements, mandatory 
standards, or related processes under section 215 of the Federal Power 
Act (16 U.S.C. 824o).
    (f) Use of Funds.--To the maximum extent practicable, in carrying 
out this section, the Secretary shall ensure that the use of funds to 
carry out this section is coordinated among different offices within 
the Grid Modernization Initiative of the Department and other programs 
conducting energy storage research.

SEC. 4. TECHNOLOGY DEMONSTRATION ON THE DISTRIBUTION SYSTEM.

    (a) In General.--The Secretary shall establish a grant program to 
carry out eligible projects related to the modernization of the 
electric grid, including the application of technologies to improve 
observability, advanced controls, and prediction of system performance 
on the distribution system.
    (b) Eligible Projects.--To be eligible for a grant under subsection 
(a), a project shall--
            (1) be designed to improve the performance and efficiency 
        of the future electric grid, while ensuring the continued 
        provision of safe, secure, reliable, and affordable power;
            (2) demonstrate--
                    (A) secure integration and management of two or 
                more energy resources, including distributed energy 
                generation, combined heat and power, micro-grids, 
                energy storage, electric vehicles, energy efficiency, 
                demand response, and intelligent loads; and
                    (B) secure integration and interoperability of 
                communications and information technologies; and
            (3) be subject to the requirements of section 545(a) of the 
        Energy Security and Independence Act of 2007 (42 U.S.C. 
        17155(a)).

SEC. 5. MICRO-GRID AND HYBRID MICRO-GRID SYSTEMS PROGRAM.

    (a) Definitions.--In this section:
            (1) Hybrid micro-grid system.--The term ``hybrid micro-grid 
        system'' means a stand-alone electrical system that--
                    (A) is comprised of conventional generation and at 
                least 1 alternative energy resource; and
                    (B) may use grid-scale energy storage.
            (2) Isolated community.--The term ``isolated community'' 
        means a community that is powered by a stand-alone electric 
        generation and distribution system without the economic and 
        reliability benefits of connection to a regional electric grid.
            (3) Micro-grid system.--The term ``micro-grid system'' 
        means a stand-alone electrical system that uses grid-scale 
        energy storage.
            (4) Strategy.--The term ``strategy'' means the strategy 
        developed pursuant to subsection (b)(2)(B).
    (b) Program.--
            (1) Establishment.--The Secretary shall establish a program 
        to promote the development of--
                    (A) hybrid micro-grid systems for isolated 
                communities; and
                    (B) micro-grid systems to increase the resilience 
                of critical infrastructure.
            (2) Phases.--The program established under paragraph (1) 
        shall be divided into the following phases:
                    (A) Phase I, which shall consist of the development 
                of a feasibility assessment for--
                            (i) hybrid micro-grid systems in isolated 
                        communities; and
                            (ii) micro-grid systems to enhance the 
                        resilience of critical infrastructure.
                    (B) Phase II, which shall consist of the 
                development of an implementation strategy, in 
                accordance with paragraph (3), to promote the 
                development of hybrid micro-grid systems for isolated 
                communities, particularly for those communities exposed 
                to extreme weather conditions and high energy costs, 
                including electricity, space heating and cooling, and 
                transportation.
                    (C) Phase III, which shall be carried out in 
                parallel with Phase II and consist of the development 
                of an implementation strategy to promote the 
                development of micro-grid systems that increase the 
                resilience of critical infrastructure.
                    (D) Phase IV, which shall consist of cost-shared 
                demonstration projects, based upon the strategies 
                developed under subparagraph (B) that include the 
                development of physical and cybersecurity plans to take 
                appropriate measures to protect and secure the electric 
                grid.
                    (E) Phase V, which shall establish a benefits 
                analysis plan to help inform regulators, policymakers, 
                and industry stakeholders about the affordability, 
                environmental and resilience benefits associated with 
                Phases II, III, and IV.
            (3) Requirements for strategy.--In developing the strategy 
        under paragraph (2)(B), the Secretary shall consider--
                    (A) establishing future targets for the economic 
                displacement of conventional generation using hybrid 
                micro-grid systems, including displacement of 
                conventional generation used for electric power 
                generation, heating and cooling, and transportation;
                    (B) the potential for renewable resources, 
                including wind, solar, and hydropower, to be integrated 
                into a hybrid micro-grid system;
                    (C) opportunities for improving the efficiency of 
                existing hybrid micro-grid systems;
                    (D) the capacity of the local workforce to operate, 
                maintain, and repair a hybrid micro-grid system;
                    (E) opportunities to develop the capacity of the 
                local workforce to operate, maintain, and repair a 
                hybrid micro-grid system;
                    (F) leveraging existing capacity within local or 
                regional research organizations, such as organizations 
                based at institutions of higher education, to support 
                development of hybrid micro-grid systems, including by 
                testing novel components and systems prior to field 
                deployment;
                    (G) the need for basic infrastructure to develop, 
                deploy, and sustain a hybrid micro-grid system;
                    (H) input of traditional knowledge from local 
                leaders of isolated communities in the development of a 
                hybrid micro-grid system;
                    (I) the impact of hybrid micro-grid systems on 
                defense, homeland security, economic development, and 
                environmental interests;
                    (J) opportunities to leverage existing interagency 
                coordination efforts and recommendations for new 
                interagency coordination efforts to minimize 
                unnecessary overhead, mobilization, and other project 
                costs; and
                    (K) any other criteria the Secretary determines 
                appropriate.
    (c) Collaboration.--The program established under subsection (b)(1) 
shall be carried out in collaboration with relevant stakeholders, 
including, as appropriate--
            (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.
    (d) Report.--Not later than 180 days after the date of the 
enactment of this Act, and annually thereafter until calendar year 
2026, the Secretary shall submit to the Committee on Energy and Natural 
Resources of the Senate and the Committee on Energy and Commerce of the 
House of Representatives a report on the efforts to implement the 
program established under subsection (b)(1) and the status of the 
strategy developed under subsection (b)(2)(B).

SEC. 6. ELECTRIC 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 grid 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--
                    (A) determine whether any additional standards are 
                necessary to ensure the interoperability of grid 
                systems and associated communications networks; and
                    (B) if the Secretary makes a determination that 
                additional standards are necessary under subparagraph 
                (A), make recommendations for additional standards, 
                including, as may be appropriate, to the Electric 
                Reliability Organization under section 215 of the 
                Federal Power Act (16 U.S.C. 824o). The Electric 
                Reliability Organization shall not be under any 
                obligation to establish any process to consider such 
                recommendations.
    (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 costs; 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 all sectors of the electric power 
        industry;
            (6) academic institutions;
            (7) independent research institutes; and
            (8) other entities.
    (d) Effect.--Nothing in this section grants any person a right to 
receive or review confidential, proprietary, or otherwise protected 
information concerning grid architecture or scenarios.

SEC. 7. VOLUNTARY MODEL PATHWAYS.

    (a) Establishment of Voluntary Model Pathways.--
            (1) Establishment.--Not later than 90 days after the date 
        of the enactment of this Act, the Secretary, in consultation 
        with the steering committee established under paragraph (3), 
        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 
                encompassing a diverse range of technologies that can 
                be adapted for State and regional applications by 
                regulators and policymakers;
                    (B) facilitates the modernization of the electric 
                grid and associated communications networks to achieve 
                the objectives described in paragraph (2);
                    (C) ensures a reliable, resilient, affordable, 
                safe, and secure electric grid; and
                    (D) acknowledges and accounts for different 
                priorities, electric systems, and rate structures 
                across States and regions.
            (2) Objectives.--The pathways established under paragraph 
        (1) shall facilitate achievement of as many of the following 
        objectives as practicable:
                    (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 of policies for investment 
                in the electric grid.
                    (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.
                    (I) Reduced cost of service for consumers.
                    (J) Diversification of generation sources.
            (3) Steering committee.--Not later than 90 days after the 
        date of the enactment of this Act, the Secretary shall 
        establish a steering committee to help develop the pathways 
        under paragraph (1), 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 Federal Energy Regulatory Commission;
                    (B) the National Laboratories;
                    (C) States;
                    (D) State regulatory authorities;
                    (E) transmission organizations;
                    (F) representatives of all sectors of the electric 
                power industry;
                    (G) institutions of higher education;
                    (H) independent research institutes; and
                    (I) other entities.
    (b) Technical Assistance.--The Secretary may provide technical 
assistance to States, Indian Tribes, or units of local government to 
adopt or implement one or more elements of the pathways developed under 
subsection (a)(1), including on a pilot basis.

SEC. 8. PERFORMANCE METRICS FOR ELECTRICITY INFRASTRUCTURE PROVIDERS.

    (a) In General.--Not later than 2 years after the date of the 
enactment of this Act, the Secretary, in consultation with the steering 
committee established under section 7(a)(3), shall submit to the 
Committee on Energy and Natural Resources of the Senate and the 
Committee on Energy and Commerce of the House of Representatives a 
report that includes--
            (1) an evaluation of the performance of the electric grid 
        as of the date of the report; and
            (2) a description of the projected range of measurable 
        costs and benefits associated with the changes evaluated under 
        the scenarios developed under section 6.
    (b) Considerations for Development of Metrics.--In developing 
metrics for the evaluation and projections under subsection (a), 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 potential costs 
        and measurable benefits value to ratepayers, applying the 
        performance metrics developed under paragraph (1);
            (3) identification of tools, resources, and deployment 
        models that may enable improved performance through the 
        adoption of emerging, commercially available or advanced grid 
        technologies or solutions, including--
                    (A) multicustomer micro-grids;
                    (B) distributed energy resources;
                    (C) energy storage;
                    (D) electric vehicles;
                    (E) electric vehicle charging infrastructure;
                    (F) integrated information and communications 
                systems;
                    (G) transactive energy systems; and
                    (H) advanced demand management systems; and
            (4) the role of States and local regulatory authorities in 
        enabling a robust future electric grid 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. 9. VOLUNTARY STATE, REGIONAL, AND LOCAL ELECTRICITY DISTRIBUTION 
              PLANNING.

    (a) In General.--On the request of a State, regional organization, 
or electric utility, the Secretary shall provide assistance to States, 
regional organizations, and electric utilities to facilitate the 
development of State, regional, and local electricity distribution 
plans by--
            (1) conducting a resource assessment and analysis of future 
        demand and distribution requirements; and
            (2) developing open source tools for State, regional, and 
        local planning and operations.
    (b) Risk and Security Analysis.--The assessment under subsection 
(a)(1) shall include--
            (1) the evaluation of the physical security, cybersecurity, 
        and associated communications 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 
        an all-hazards approach that includes communications 
        infrastructure, control systems architecture, and power systems 
        architecture.
    (c) Designation.--The information collected for the assessment and 
analysis under subsection (a)(1)--
            (1) shall be considered to be critical electric 
        infrastructure information under section 215A of the Federal 
        Power Act (16 U.S.C. 824o-1); and
            (2) shall only be released in compliance with regulations 
        implementing that section.
    (d) Technical Assistance.--For the purpose of assisting in the 
development of State and regional electricity distribution plans, the 
Secretary shall provide technical assistance to--
            (1) States;
            (2) regional reliability entities; and
            (3) other distribution asset owners and operators.
    (e) Withdrawal.--A State or any entity that has requested technical 
assistance under this section may withdraw the request for technical 
assistance at any time, and on such withdrawal, the Secretary shall 
terminate all assistance efforts.
    (f) Effect.--Nothing in this section authorizes the Secretary to 
require any State, regional organization, regional reliability entity, 
asset owner, or asset operator to adopt any model, tool, plan, 
analysis, or assessment.

SEC. 10. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to the Secretary to carry 
out section 4 through this section $200,000,000 for each of fiscal 
years 2018 through 2027.
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