[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 2332 Introduced in Senate (IS)]
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116th CONGRESS
1st Session
S. 2332
To provide for the modernization of the electric grid, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 30, 2019
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 of 2019''.
(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 2020 through 2028.
(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 standalone 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 enactment of
this Act, and annually thereafter until calendar year 2029, 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 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 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 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 2020 through 2028.
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