[Congressional Record Volume 161, Number 68 (Wednesday, May 6, 2015)]
[Senate]
[Pages S2690-S2692]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. WYDEN:
S. 1232. A bill to amend the Energy Independence and Security Act of
2007 to modify provisions relating to smart grid modernization, and for
other purposes; to the Committee on Energy and Natural Resources.
Mr. WYDEN. Mr. President, today I am proud to introduce the Smart
Grid Act of 2015.
America's trillion-dollar electricity grid is ill-equipped to meet
the needs of the future. Grid outages and interruptions are estimated
to cost taxpayers $150 billion annually, according to the U.S.
Department of Energy DOE. At the same time, electricity demand is
expected to grow 24 percent by 2040 and electricity costs for American
consumers are expected to increase 18 percent over that same period.
Yet the news is not all grim, the U.S. Department of Energy estimates
that $46 billion to $117 billion could be saved in the avoided
construction costs of power plants and transmission lines over 20
years, if the United States transitions to ``smart grid'' technologies.
This bill promotes a more efficient and flexible electricity grid--an
electricity grid that supports low-cost renewable energy, electric
vehicles and energy storage, and helps consumers save money while
reducing greenhouse gas emissions. The bill extends cost-share grant
programs created in the Energy Independence and Savings Act of 2007,
EISA2007, and sets DOE on a path to help create technology
communication standards that will pave the way for innovation in new
household appliances and save consumer dollars.
Specifically, the bill will establish two DOE competitive grant
programs to promote the modernization of the electricity grid. Among
critical areas identified by the electricity industry, the new
authorizations will promote grid efficiency and real time rate
adjustments, in addition to driving innovations and deployment of new
energy technologies. The grant programs would require an equal matching
investment from the grant recipient to ensure that beneficiaries are
also held accountable. The grant recipients will be required to
exchange information and ideas to further the development of a
modernized electric grid. The bill will also direct DOE to begin
developing standards for data sharing and communication between
electricity users and providers on the grid, to improve grid efficiency
and reliability.
I encourage my colleagues to review and ultimately support this
legislation.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 1232
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--
[[Page S2691]]
``(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''.
______
By Mr. WYDEN:
S. 1233. A bill to amend the Public Utility Regulatory Policies Act
of 1978 to expand the electric rate-setting authority of States; to the
Committee on Energy and Natural Resources.
Mr. WYDEN. Mr. President, today I rise to introduce the PURPA PLUS
Act.
In my home State we have numerous emerging small renewable energy
technologies, such as wave energy buoys, hydropower turbines in
irrigation canals, biomass burning cogeneration facilities and rooftop
solar installations. Like Oregon, many States have sought to advance
such new electricity technologies by allowing utilities to pay higher
than normal power purchase rates, called ``incentive rates'', for power
from these desirable technologies. Incentive rates allow individuals
and small businesses deploying these desirable technologies to recover
the money they invest in the infrastructure, such as solar panels or
other electricity generation equipment, over a reasonable period of
time. The ability of States to award such incentive rates for small
projects is currently hampered by the need to go through a case-by-case
review process before the Federal Energy Regulatory Commission, FERC.
The PURPA PLUS Act simply provides States the legal authority to set
incentive rates for small renewable energy projects. Currently, under
the Public Utility Regulatory Policies Act of 1978, PURPA, the FERC
regulates the price that utility companies pay for electricity from
small, independent power providers. Such prices can be no higher than
what it would normally cost a utility company either to generate or to
buy additional power from the lowest cost provider. This structure sets
a limit on prices that is often too low for small renewable energy
projects to be financially viable, despite other clear benefits they
provide, such as local job creation, lower investment in high-voltage
transmission lines, diversity in an area's power generation portfolio,
and the environmental benefits of green energy.
PURPA PLUS would transfer the authority for setting power purchase
rates for small power projects of less than 2 megawatts from FERC to
the States on a voluntary basis. If a State chose to exercise this
authority to promote small wind energy development, or solar, or
cogeneration projects, it could. If a State chose not to use this
authority, FERC would continue to regulate these projects as before. By
capping the project size at 2 megawatts, PURPA PLUS only extends this
new authority for small projects that are providing very small amounts
of power to the local utility company, leaving regulation of large wind
farms, hydropower and other large renewable energy projects unchanged.
While I acknowledge that the power from these small projects may be
more expensive than a large central generation station powered by coal
or gas, I
[[Page S2692]]
believe that States, if they choose, should be able to consider the
associated benefits of small renewable power and set higher prices,
when the market demands such action and when the benefits outweigh the
costs.
I urge my colleagues to review and ultimately to support this
legislation.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 1233
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 ``PURPA's Legislative Upgrade
to State Authority Act'' or ``PURPA PLUS Act''.
SEC. 2. FINDINGS.
Congress finds that--
(1) section 210 of the Public Utility Regulatory Policies
Act of 1978 (16 U.S.C. 824a-3)--
(A) established a new class of nonutility generators known
as ``qualifying cogeneration facilities'' and ``qualifying
small power production facilities''; and
(B) encouraged the development of alternate sources of
energy with the requirement that utilities purchase energy
offered by qualifying facilities;
(2) since the date of enactment of that section, materials
and designs for qualifying facility technologies have
advanced and placed renewable resources and cogeneration
facilities within the reach of more consumers, including
technologies such as--
(A) solar photovoltaic panels;
(B) small wind turbines;
(C) storage technologies to support renewable energy;
(D) small hydroelectric generators on existing dams,
diversions, and conduits;
(E) hydrokinetic generators;
(F) gas microturbines;
(G) steam-cycle turbines;
(H) Stirling engines;
(I) fuel cells; and
(J) biomass boilers;
(3) States need additional regulatory flexibility and
authority to be able to incentivize the qualifying
facilities; and
(4) the avoided cost caps on qualifying facilities should
be removed so that States can set the rates for qualifying
facilities of not more than 2 megawatts capacity.
SEC. 3. STATE AUTHORITY TO INCENTIVIZE QUALIFYING FACILITIES.
Section 210(b) of the Public Utility Regulatory Policies
Act of 1978 (16 U.S.C. 824a-3(b)) is amended in the last
sentence by inserting before the period at the end the
following: ``, except that the rule shall provide that a
State regulatory authority or nonregulated electric utility,
acting under State authority, may set rates that exceed the
incremental cost of alternative electric energy for purchases
from any qualifying cogeneration facility or qualifying small
power production facility of not more than 2 megawatts
capacity''.
____________________