[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''.

                          ____________________