[Congressional Record Volume 162, Number 20 (Wednesday, February 3, 2016)]
[Senate]
[Pages S615-S616]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 3256. Mr. SCHATZ (for himself and Mr. Sullivan) submitted an 
amendment intended to be proposed to amendment SA 2953 proposed by Ms. 
Murkowski to the bill S. 2012, to provide for the modernization of the 
energy policy of the United States, and for other purposes; which was 
ordered to lie on the table; as follows:

       Strike section 2307 and insert the following:

     SEC. 2307. STATE AND REGIONAL ENERGY PARTNERSHIPS.

       (a) Definitions.--In this section:
       (1) Cooperative agreement.--The term ``cooperative 
     agreement'' has the meaning given the term in sections 6302 
     and 6305 of title 31, United States Code.
       (2) Indian tribe.--The term ``Indian tribe'' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       (3) Secretaries.--The term ``Secretaries'' means--
       (A) the Secretary, acting through the Assistant Secretary 
     of the Office of Electricity Delivery and Energy Reliability 
     in consultation with the Assistant Secretary of Energy 
     Efficiency and Renewable Energy, the Assistant Secretary of 
     Fossil Energy, and the Director of the Office of Nuclear 
     Energy, Science, and Technology Programs; and
       (B) the Secretary of the Interior, acting through the 
     Assistant Secretary for Land and Minerals Management in 
     consultation with the Director of the Bureau of Land 
     Management, the Director of the Bureau of Ocean Energy 
     Management, the Assistant Secretary for Indian Affairs, and 
     the Assistant Secretary for Fish and Wildlife and Parks.
       (4) State.--The term ``State'' means--
       (A) a State;
       (B) the District of Columbia;
       (C) the Commonwealth of Puerto Rico; and
       (D) any other territory or possession of the United States.
       (5) Tribal organization.--
       (A) In general.--The term ``tribal organization'' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       (B) Inclusion.--The term ``tribal organization'' includes a 
     Native Hawaiian organization (as defined in section 7207 of 
     the Native Hawaiian Education Act (20 U.S.C. 7517)).
       (b) Regional Energy Partnerships.--
       (1) In general.--The Secretaries shall provide assistance 
     in accordance with this subsection for the purpose of 
     developing energy strategies and plans that help harmonize 
     and promote national, regional, and State energy goals, 
     including goals for advancing resilient energy systems to 
     mitigate risks and prepare for emerging energy challenges.
       (2) Electricity distribution.--
       (A) Distribution planning.--On the request of a State or a 
     regional organization, the Secretary shall partner with the 
     State or regional organization to facilitate the development 
     of State and regional electricity distribution plans by--
       (i) conducting a resource assessment and analysis of future 
     demand and distribution requirements; and
       (ii) developing open source tools for State and regional 
     planning and operations.
       (B) Risk and security analysis.--An assessment under 
     subparagraph (A)(i) shall include--
       (i) an evaluation of the physical and cybersecurity needs 
     of an advanced distribution management system and the 
     integration of distributed energy resources; and
       (ii) the 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) Grid integration.--Consistent with the authorization of 
     assistance provided to units of general local government and 
     Indian tribes under title I of the Housing and Community 
     Development Act of 1974 (42 U.S.C. 5301 et seq.), the 
     Secretary may provide assistance to a State or regional 
     partnership (including a public-private partnership) to carry 
     out projects designed to improve the performance and 
     efficiency of the future electric grid that demonstrate--
       (i) secure integration and management of 2 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
       (ii) secure integration and interoperability of 
     communications and information technologies.
       (3) Technical assistance.--In addition to the assistance 
     authorized under paragraphs (1) and (2), the Secretaries may 
     provide such technical assistance to States, political 
     subdivisions of States, substate regional organizations 
     (including organizations that cross State boundaries), 
     multistate regional organizations, Indian tribes, tribal 
     organizations,

[[Page S616]]

     and nonprofit organizations as the Secretaries determine 
     appropriate to promote--
       (A) the development and improvement of regional energy 
     strategies and plans that sustain and promote energy system 
     modernization across the United States;
       (B) investment in energy infrastructure, technological 
     capacity, innovation, and workforce development to keep pace 
     with the changing energy ecosystem;
       (C) the structural transformation of the financial, 
     regulatory, legal, and institutional systems that govern 
     energy planning, production, and delivery within States and 
     regions; and
       (D) public-private partnerships for the implementation of 
     regional energy strategies and plans.
       (4) Cooperative agreements.--
       (A) In general.--The Secretaries may enter into cooperative 
     agreements with 1 or more States and Indian tribes to develop 
     and implement strategies and plans to address the energy 
     challenges of States, Indian tribes, and regions.
       (B) Requirements.--A cooperative agreement entered into 
     under this paragraph shall include provisions covering or 
     providing--
       (i) the purpose and goals of the cooperative agreement, 
     such as advancing energy efficiency, clean energy, fuel and 
     supply diversity, energy system resiliency, economic 
     development, or other goals to make measurable, significant 
     progress toward specified metrics and objectives that are 
     agreed to by the States or Indian tribes and the Secretaries;
       (ii) the roles and responsibilities of the States or Indian 
     tribes and the Secretaries for various functions of the 
     cooperative agreement, including outreach, communication, 
     resources, and capabilities;
       (iii) a comprehensive framework for the development of 
     energy strategies and plans for States, Indian tribes, or 
     regions;
       (iv) timeframes with associated metrics and objectives;
       (v) a governance structure to resolve conflicts and 
     facilitate decision making consistent with underlying 
     authorities; and
       (vi) other provisions determined necessary by the 
     Secretaries, in consultation with the States or Indian 
     tribes, to achieve the purposes described in subparagraph 
     (A).
       (5) Staff.--
       (A) In general.--Not later than 30 days after the date of 
     the entering into a cooperative agreement under paragraph 
     (4), the Secretaries shall, as appropriate, assign or employ 
     individuals who have expertise in the technical and 
     regulatory issues relating to the cooperative agreement, 
     including particular expertise in (as applicable)--
       (i) energy systems integration;
       (ii) renewable energy and energy efficiency;
       (iii) innovative financing mechanisms;
       (iv) utility regulatory policy;
       (v) modeling and analysis;
       (vi) facilitation and arbitration;
       (vii) energy assurance and emergency preparedness; and
       (viii) cyber and physical security of energy systems.
       (B) Duties.--Each individual assigned to carry out a 
     cooperative agreement under subparagraph (A) shall--
       (i) be responsible for issues and technical assistance 
     relating to the cooperative agreement;
       (ii) participate as part of the team of personnel working 
     on developing and implementing the applicable regional energy 
     strategy and plan; and
       (iii) build capacity within the State, Indian tribe, or 
     region to continue to implement the goals of this section 
     after the expiration of the cooperative agreement.
       (6) Comprehensive framework.--Under a cooperative 
     agreement, a comprehensive framework shall be developed that 
     identifies opportunities and actions across various energy 
     sectors and cross-cutting issue areas, including--
       (A) end-use efficiency;
       (B) energy supply, including electric generation and fuels;
       (C) energy delivery;
       (D) transportation;
       (E) technical integration, including standards and 
     interdependencies;
       (F) institutional structures;
       (G) regulatory policies;
       (H) financial incentives; and
       (I) market mechanisms.
       (7) Awards.--
       (A) Definitions.--In this paragraph:
       (i) Application group.--The term ``application group'' 
     means a group of States or Indian tribes that have--

       (I) entered into a cooperative agreement, on a regional 
     basis, with the Secretaries under paragraph (4); and
       (II) submitted an application for an award under 
     subparagraph (B)(i).

       (ii) Partner state.--The term ``partner State'' means a 
     State or Indian tribe that is part of an application group.
       (B) Applications.--
       (i) In general.--Subject to clause (ii), an application 
     group may apply to the Secretaries for awards under this 
     paragraph.
       (ii) Individual states.--An individual State or Indian 
     tribe that has entered into a cooperative agreement with the 
     Secretaries under paragraph (4) may apply to the Secretaries 
     for an award under this paragraph if the State or Indian 
     tribe demonstrates to the Secretaries the uniqueness of the 
     energy challenges facing the State or Indian tribe.
       (C) Base amount.--Subject to subparagraph (D), the 
     Secretaries may provide not more than 6 awards under this 
     paragraph, with a base amount of $20,000,000 for each award.
       (D) Bonus amount for application groups.--
       (i) In general.--Subject to clause (ii), the Secretaries 
     shall increase the amount of an award provided under this 
     paragraph to an application group for a successful 
     application under subparagraph (B)(i) by the quotient 
     obtained by dividing--

       (I) the product obtained by multiplying--

       (aa) the number of partner States in the application group; 
     and
       (bb) $100,000,000; by

       (II) the total number of partner States of all successful 
     applications under this paragraph.

       (ii) Maximum amount.--The amount of a bonus determined 
     under clause (i) shall not exceed an amount that represents 
     $5,000,000 for each partner State that is a member of the 
     relevant application group.
       (E) Limitation.--A State or Indian tribe shall not be part 
     of more than 1 award under this paragraph.
       (F) Selection criteria.--In selecting applications for 
     awards under this paragraph, the Secretaries shall consider--
       (i) existing commitments from States or Indian tribes, such 
     as memoranda of understanding;
       (ii) for States that are part of the contiguous 48 States, 
     the number of contiguous States involved that cover a region;
       (iii) the diversity of the regions represented by all 
     applications;
       (iv) the amount of cost-share or in-kind contributions from 
     States or Indian tribes;
       (v) the scope and focus of regional and State programs and 
     strategies, with an emphasis on energy system resiliency and 
     grid modernization, efficiency, and clean energy;
       (vi) a management and oversight plan to ensure that 
     objectives are met;
       (vii) an outreach plan for the inclusion of stakeholders in 
     the process for developing and implementing State or regional 
     energy strategies and plans;
       (viii) the inclusion of tribal entities;
       (ix) plans to fund and sustain activities identified in 
     regional energy strategies and plans;
       (x) the clarity of roles and responsibilities of each State 
     and the Secretaries; and
       (xi) the average retail cost of electricity in the State.
       (G) Use of awards.--
       (i) In general.--Awards provided under this paragraph shall 
     be used to achieve the purpose of this section, including 
     by--

       (I) conducting technical analyses, resource studies, and 
     energy system baselines;
       (II) convening and providing education to stakeholders on 
     emerging energy issues;
       (III) building decision support and planning tools; and
       (IV) improving communication between and participation of 
     stakeholders.

       (ii) Limitation.--Awards provided under this paragraph 
     shall not be used for--

       (I) capitalization of green banks or loan guarantees; or
       (II) building facilities or funding capital projects.

       (c) Funding.--
       (1) Awards.--Of the amounts made available to carry out 
     paragraphs (4) through (7) of subsection (b)--
       (A) at least 40 percent shall be used for the bonus amount 
     of awards under subsection (b)(7)(D); and
       (B) not more than 10 percent shall be used for the 
     administrative costs of carrying out this section, 
     including--
       (i) the assignment of staff under subsection (b)(5); and
       (ii) if the Secretaries determine appropriate, the sharing 
     of best practices from regional partnerships by parties to 
     cooperative agreements entered into under this section.
       (2) State energy offices.--Funds provided to a State under 
     this section shall be provided to the office within the State 
     that is responsible for developing the State energy plan for 
     the State under part D of title III of the Energy Policy and 
     Conservation Act (42 U.S.C. 6321 et seq.).
       (3) Maintenance of funding.--It is the intent of Congress 
     that funding provided to States under this section shall 
     supplement (and not supplant) funding provided under part D 
     of title III of the Energy Policy and Conservation Act (42 
     U.S.C. 6321 et seq.).
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