[Congressional Record Volume 163, Number 196 (Friday, December 1, 2017)]
[Senate]
[Page S7729]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 1834. Mr. BENNET submitted an amendment intended to be proposed to 
amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for himself 
and Ms. Murkowski)) to the bill H.R. 1, to provide for reconciliation 
pursuant to titles II and V of the concurrent resolution on the budget 
for fiscal year 2018; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. __. INVESTMENT CREDIT FOR ELECTRICITY GRID SECURITY AND 
                   MODERNIZATION PROPERTY.

       (a) In General.--Section 48(a)(3)(A) is amended by striking 
     ``or'' at the end of clause (vi), by inserting ``or'' at the 
     end of clause (vii), and by adding at the end the following 
     new clause:
       ``(viii) grid security and modernization property.''.
       (b) Rate of Credit.--Section 48(a)(2)(A) is amended--
       (1) by striking ``and'' at the end of clause (i)(IV);
       (2) by redesignating clause (ii) as clause (iii); and
       (3) by inserting after clause (i) the following new clause:
       ``(ii) in the case of grid security and modernization 
     property--

       ``(I) 4 percent for the taxable year beginning after 
     December 31, 2019, and ending before January 1, 2021,
       ``(II) 8 percent for the taxable year beginning after 
     December 31, 2020, and ending before January 1, 2022, and
       ``(III) 20 percent for taxable years beginning after 
     December 31, 2021, and''.

       (c) Grid Security and Modernization Property.--
       (1) In general.--Section 48(c) is amended by adding at the 
     end the following new paragraph:
       ``(5) Grid security and modernization property.--
       ``(A) In general.--The term `grid security and 
     modernization property' means any qualified software, 
     qualified automated distribution device, advanced voltage 
     control system, advanced metering property, and advanced and 
     secure transmission system technologies.
       ``(B) Qualified software.--The term `qualified software' 
     means any software which--
       ``(i) is used to optimize efficiency or connectivity of the 
     electrical grid, including detailed electrical models, 
     modeling and simulation tools, distributed energy resource 
     management systems used to control local generation and 
     storage, and advanced distribution management systems used as 
     the software platform to provide core system functions such 
     as fault location, isolation, and service restoration, 
     voltage optimization, and peak demand management,
       ``(ii) is developed with information assurance techniques 
     to support encrypted communication, attributed identity, and 
     non-repudiation, and
       ``(iii) is approved for purposes of this section by the 
     Secretary (in consultation with the Secretary of Energy).
       ``(C) Qualified automated distribution device.--The term 
     `qualified automated distribution device' means any automated 
     device which--
       ``(i) is used for distributing electricity through the 
     electric grid, including property integral to local or 
     centralized control systems, such as distribution sensors, 
     communication security equipment (including communication 
     encryption devices), automated switches, automated threat 
     detection and remediation devices, system protective devices, 
     smart inverters, and other property used to coordinate and 
     control devices across the system, and
       ``(ii) is approved for purposes of this section by the 
     Secretary (in consultation with the Secretary of Energy).
       ``(D) Advanced voltage control systems.--The term `advanced 
     voltage control system' means any property which--
       ``(i) is used to provide accurate and dynamic voltage 
     control, including voltage regulators, capacitors, inverters, 
     sensors, and communication devices, and
       ``(ii) is approved for purposes of this section by the 
     Secretary (in consultation with the Secretary of Energy).
       ``(E) Advanced metering infrastructure.--The term `advanced 
     metering infrastructure' means any property which--
       ``(i) provides both the capability to measure services 
     consumed from the utility and a two-way communication pathway 
     between the utility control center and the meter, and
       ``(ii) is approved for purposes of this section by the 
     Secretary (in consultation with the Secretary of Energy).
       ``(F) Advanced and secure transmission system 
     technologies.--The term `advanced and secure transmission 
     system technologies' means any property which--
       ``(i) increases that efficiency, security, and reliability 
     of a transmission facility, but not the main transmission 
     property, and
       ``(ii) is approved for purposes of this section by the 
     Secretary (in consultation with the Secretary of Energy).''.
       (2) List of approved property.--
       (A) In general.--Not later than 1 year after the date of 
     the enactment of this Act, the Secretary of the Treasury (or 
     the Secretary's delegate), in consultation with the Secretary 
     of Energy, shall publish a list of property approved as grid 
     security and modernization property under section 48(c)(5) of 
     the Internal Revenue Code of 1986, as added by this 
     subsection.
       (B) Updates.--The Secretary of the Treasury (or the 
     Secretary's delegate), in consultation with the Secretary of 
     Energy, shall revise the list published under subparagraph 
     (A) not less frequently than every 3 years.
       (d) Effective Date.--The amendments made by this section 
     shall apply to periods after the date of the enactment of 
     this Act, in taxable years ending after such date, under 
     rules similar to the rules of section 48(m) of the Internal 
     Revenue Code of 1986 (as in effect on the day before the date 
     of the enactment of the Revenue Reconciliation Act of 1990).
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