USC Subchapter IX

USC Subchapter IX
in effect

42 U.S.C. § 17381 Statement of policy on modernization of electricity grid

It is the policy of the United States to support the modernization of the Nation’s electricity transmission and distribution system to maintain a reliable and secure electricity infrastructure that can meet future demand growth and to achieve each of the following, which together characterize a Smart Grid: (1) Increased use of digital information and controls technology to improve reliability, security, and efficiency of the electric grid. (2) Dynamic optimization of grid operations and resources, with full cyber-security. (3) Deployment and integration of distributed resources and generation, including renewable resources. (4) Development and incorporation of demand response, demand-side resources, and energy-efficiency resources. (5) Deployment of “smart” technologies (real-time, automated, interactive technologies that optimize the physical operation of appliances and consumer devices) for metering, communications concerning grid operations and status, and distribution automation. (6) Integration of “smart” appliances and consumer devices. (7) Deployment and integration of advanced electricity storage and peak-shaving technologies, including plug-in electric and hybrid electric vehicles, and thermal-storage air conditioning. (8) Provision to consumers of timely information and control options. (9) Development of standards for communication and interoperability of appliances and equipment connected to the electric grid, including the infrastructure serving the grid. (10) Identification and lowering of unreasonable or unnecessary barriers to adoption of smart grid technologies, practices, and services.

42 U.S.C. § 17382 Smart grid system report

The Secretary, acting through the Assistant Secretary of the Office of Electricity Delivery and Energy Reliability (referred to in this section as the “OEDER”) and through the Smart Grid Task Force established in section 17383 of this title, shall, after consulting with any interested individual or entity as appropriate, no later than 1 year after December 19, 2007, and every 2 years thereafter, report to Congress concerning the status of smart grid deployments nationwide and any regulatory or government barriers to continued deployment. The report shall provide the current status and prospects of smart grid development, including information on technology penetration, communications network capabilities, costs, and obstacles. It may include recommendations for State and Federal policies or actions helpful to facilitate the transition to a smart grid. To the extent appropriate, it should take a regional perspective. In preparing this report, the Secretary shall solicit advice and contributions from the Smart Grid Advisory Committee created in section 17383 of this title; from other involved Federal agencies including but not limited to the Federal Energy Regulatory Commission (“Commission”), the National Institute of Standards and Technology (“Institute”), and the Department of Homeland Security; and from other stakeholder groups not already represented on the Smart Grid Advisory Committee.

42 U.S.C. § 17383 Smart Grid Advisory Committee and Smart Grid Task Force

(a) Smart Grid Advisory Committee(1) EstablishmentThe Secretary shall establish, within 90 days of December 19, 2007, a Smart Grid Advisory Committee (either as an independent entity or as a designated sub-part of a larger advisory committee on electricity matters). The Smart Grid Advisory Committee shall include eight or more members appointed by the Secretary who have sufficient experience and expertise to represent the full range of smart grid technologies and services, to represent both private and non-Federal public sector stakeholders. One member shall be appointed by the Secretary to Chair the Smart Grid Advisory Committee. (2) MissionThe mission of the Smart Grid Advisory Committee shall be to advise the Secretary, the Assistant Secretary, and other relevant Federal officials concerning the development of smart grid technologies, the progress of a national transition to the use of smart-grid technologies and services, the evolution of widely-accepted technical and practical standards and protocols to allow interoperability and inter-communication among smart-grid capable devices, and the optimum means of using Federal incentive authority to encourage such progress. (3) Applicability of chapter 10 of title 5Chapter 10 of title 5 shall apply to the Smart Grid Advisory Committee. (b) Smart Grid Task Force(1) EstablishmentThe Assistant Secretary of the Office of Electricity Delivery and Energy Reliability shall establish, within 90 days of December 19, 2007, a Smart Grid Task Force composed of designated employees from the various divisions of that office who have responsibilities related to the transition to smart-grid technologies and practices. The Assistant Secretary or his designee shall be identified as the Director of the Smart Grid Task Force. The Chairman of the Federal Energy Regulatory Commission and the Director of the National Institute of Standards and Technology shall each designate at least one employee to participate on the Smart Grid Task Force. Other members may come from other agencies at the invitation of the Assistant Secretary or the nomination of the head of such other agency. The Smart Grid Task Force shall, without disrupting the work of the Divisions or Offices from which its members are drawn, provide an identifiable Federal entity to embody the Federal role in the national transition toward development and use of smart grid technologies. (2) MissionThe mission of the Smart Grid Task Force shall be to insure awareness, coordination and integration of the diverse activities of the Office and elsewhere in the Federal Government related to smart-grid technologies and practices, including but not limited to: smart grid research and development; development of widely accepted smart-grid standards and protocols; the relationship of smart-grid technologies and practices to electric utility regulation; the relationship of smart-grid technologies and practices to infrastructure development, system reliability and security; and the relationship of smart-grid technologies and practices to other facets of electricity supply, demand, transmission, distribution, and policy. The Smart Grid Task Force shall collaborate with the Smart Grid Advisory Committee and other Federal agencies and offices. The Smart Grid Task Force shall meet at the call of its Director as necessary to accomplish its mission. (c) AuthorizationThere are authorized to be appropriated for the purposes of this section such sums as are necessary to the Secretary to support the operations of the Smart Grid Advisory Committee and Smart Grid Task Force for each of fiscal years 2008 through 2020.

42 U.S.C. § 17384 Smart grid technology research, development, and demonstration

(a) Power grid digital information technologyThe Secretary, in consultation with the Federal Energy Regulatory Commission and other appropriate agencies, electric utilities, the States, and other stakeholders, shall carry out a research, development, and demonstration program—(1) to develop advanced techniques for measuring peak load reductions and energy-efficiency savings from smart metering, demand response, distributed generation, and electricity storage systems; (2) to investigate means for demand response, distributed generation, and storage to provide ancillary services; (3) to conduct research to advance the use of wide-area measurement and control networks, including data mining, visualization, advanced computing, and secure and dependable communications in a highly-distributed environment; (4) to test new reliability technologies, including those concerning communications network capabilities, in a grid control room environment against a representative set of local outage and wide area blackout scenarios; (5) to identify communications network capacity needed to implement advanced technologies.11 So in original. The period probably should be a semicolon. (6) to investigate the feasibility of a transition to time-of-use and real-time electricity pricing; (7) to develop algorithms for use in electric transmission system software applications; (8) to promote the use of underutilized electricity generation capacity in any substitution of electricity for liquid fuels in the transportation system of the United States; and (9) in consultation with the Federal Energy Regulatory Commission, to propose interconnection protocols to enable electric utilities to access electricity stored in vehicles to help meet peak demand loads. (b) Smart grid regional demonstration initiative(1) In generalThe Secretary shall establish a smart grid regional demonstration initiative (referred to in this subsection as the “Initiative”) composed of demonstration projects focused on cost-effective, advanced technologies for use in power grid sensing, communications, analysis, power flow control, visualization, distribution automation, industrial control systems, dynamic line rating systems, grid redesign, and the integration of distributed energy resources. (2) GoalsThe goals of the Initiative shall be—(A) to demonstrate the potential benefits of concentrated investments in advanced grid technologies on a regional grid; (B) to facilitate the commercial transition from the current power transmission and distribution system technologies to advanced technologies; (C) to facilitate the integration of advanced technologies in existing electric networks to improve system performance, power flow control, and reliability; (D) to demonstrate protocols and standards that allow for the measurement and validation of the energy savings and fossil fuel emission reductions associated with the installation and use of energy efficiency and demand response technologies and practices; (E) to investigate differences in each region and regulatory environment regarding best practices in implementing smart grid technologies; and (F) to encourage the commercial application of advanced distribution automation technologies that exert intelligent control over electrical grid functions at the distribution level to improve system resilience. (3) Demonstration projects(A) In generalIn carrying out the initiative,22 So in original. Probably should be “Initiative,”. the Secretary shall provide financial support to smart grid demonstration projects in urban, suburban, tribal, and rural areas, including areas where electric system assets are controlled by nonprofit entities and areas where electric system assets are controlled by investor-owned utilities. (B) CooperationA demonstration project under subparagraph (A) shall be carried out in cooperation with the electric utility that owns the grid facilities in the electricity control area in which the demonstration project is carried out. (C) Federal share of cost of technology investmentsThe Secretary shall provide to an electric utility described in subparagraph (B) or to other parties financial assistance for use in paying an amount equal to not more than 50 percent of the cost of qualifying advanced grid technology investments made by the electric utility or other party to carry out a demonstration project. (D) Ineligibility for grantsNo person or entity participating in any demonstration project conducted under this subsection shall be eligible for grants under section 17386 of this title for otherwise qualifying investments made as part of that demonstration project. (E) Availability of dataThe Secretary shall establish and maintain a smart grid information clearinghouse in a timely manner which will make data from smart grid demonstration projects and other sources available to the public. 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 in the form and within the timeframes as directed by the Secretary. The Secretary shall assure that business proprietary information and individual customer information is not included in the information made available through the clearinghouse. (F) Open protocols and standardsThe Secretary shall require as a condition of receiving funding under this subsection that demonstration projects utilize open protocols and standards (including Internet-based protocols and standards) if available and appropriate. (c) Authorization of appropriationsThere are authorized to be appropriated—(1) to carry out subsection (a), such sums as are necessary for each of fiscal years 2008 through 2012; and (2) to carry out subsection (b), such sums as may be necessary.

42 U.S.C. § 17384a Smart grid modeling, visualization, architecture, and controls

(a) In generalNot later than 180 days after December 27, 2020, the Secretary shall establish a program of research, development, demonstration, and commercial application on electric grid modeling, sensing, visualization, architecture development, and advanced operation and controls. (b) Modeling research and developmentThe Secretary shall support development of models of emerging technologies and systems to facilitate the secure and reliable design, planning, and operation of the electric grid for use by industry stakeholders. In particular, the Secretary shall support development of—(1) models to analyze and predict the effects of adverse physical and cyber events on the electric grid; (2) coupled models of electrical, physical, and cyber systems; (3) models of existing and emerging technologies being deployed on the electric grid due to projected changes in the electric generation mix and loads, for a variety of regional characteristics; and (4) integrated models of the communications, transmission, distribution, and other interdependent systems for existing, new, and emerging technologies. (c) Situational awareness research and development(1) In generalThe Secretary shall support development of computational tools and technologies to improve sensing, monitoring, and visualization of the electric grid for real-time situational awareness and decision support tools that enable improved operation of the power system, including utility, non-utility, and customer grid-connected assets, for use by industry partners. (2) Data useIn developing visualization capabilities under this section, the Secretary shall develop tools for industry stakeholders to use to analyze data collected from advanced measurement and monitoring technologies, including data from phasor measurement units and advanced metering units. (3) Severe eventsThe Secretary shall prioritize enhancing cyber and physical situational awareness of the electric grid during adverse manmade and naturally-occurring events. (d) Operation and controls research and developmentThe Secretary shall conduct research to develop improvements to the operation and controls of the electric grid, in coordination with industry partners. Such activities shall include—(1) a training facility or facilities to allow grid operators to gain operational experience with advanced grid control concepts and technologies; (2) development of cost-effective advanced operation and control concepts and technologies, such as adaptive islanding, dynamic line rating systems, power flow controllers, network topology optimization, smart circuit breakers, intelligent load shedding, and fault-tolerant control system architectures; (3) development of real-time control concepts using artificial intelligence and machine learning for improved electric grid resilience; and (4) utilization of advanced data analytics including load forecasting, power flow modeling, equipment failure prediction, resource optimization, risk analysis, and decision analysis. (e) Interoperability research and developmentThe Secretary shall conduct research and development on tools and technologies that improve the interoperability and compatibility of new and emerging components, technologies, and systems with existing electric grid infrastructure. (f) Underground transmission and distribution linesIn carrying out the program under subsection (a), the Secretary shall support research and development on underground transmission and distribution lines. This shall include research on—(1) methods for lowering the costs of underground transmission and distribution lines, including through novel installation techniques and materials considerations; (2) techniques to improve the lifespan of underground transmission and distribution lines; (3) wireless sensors to improve safety of underground transmission and distribution lines and to predict, identify, detect, and transmit information about degradation and faults; and (4) methods for improving the resilience and reliability of underground transmission and distribution lines, including technologies and techniques that can mitigate the impact of flooding, storm surge, and seasonal climate cycles on degradation of and damage to underground transmission and distribution lines. (g) Grid architecture and scenario development(1) In generalSubject to paragraph (3), 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) ArchitectureIn supporting the development of model grid architectures, the Secretary shall—(A) analyze a variety of grid architecture scenarios that range from minor upgrades to existing transmission grid infrastructure to scenarios that involve the replacement of significant portions of existing transmission grid infrastructure; (B) analyze the effects of the increasing proliferation of renewable and other zero emissions energy generation sources, increasing use of distributed resources owned by non-utility entities, and the use of digital and automated controls not managed by grid operators; (C) include a variety of new and emerging distribution grid technologies, including distributed energy resources, electric vehicle charging stations, distribution automation technologies, energy storage, and renewable energy sources; (D) analyze the effects of local load balancing and other forms of decentralized control; (E) analyze the effects of changes to grid architectures resulting from modernizing electric grid systems, including communications, controls, markets, consumer choice, emergency response, electrification, and cybersecurity concerns; and (F) develop integrated grid architectures that incorporate system resilience for cyber, physical, and communications systems. (3) Market structureThe grid architecture and scenarios developed under paragraph (1) shall, to the extent practicable, account for differences in market structure, including an examination of the potential for stranded costs in each type of market structure. (h) Computing resources and data coordination research and developmentIn carrying out this section, the Secretary shall—(1) leverage existing computing resources at the National Laboratories; and (2) develop voluntary standards for data taxonomies and communication protocols in coordination with public and private sector stakeholders. (i) Information sharingNone of the activities authorized in this section shall require private entities to share information or data with the Secretary. (j) ResilienceIn this section, the term “resilience” means the ability to withstand and reduce the magnitude or duration of disruptive events, which includes the capability to anticipate, absorb, adapt to, or rapidly recover from such an event, including from deliberate attacks, accidents, and naturally occurring threats or incidents.

42 U.S.C. § 17385 Smart grid interoperability framework

(a) Interoperability frameworkThe Director of the National Institute of Standards and Technology shall have primary responsibility to coordinate the development of a framework that includes protocols and model standards for information management to achieve interoperability of smart grid devices and systems. Such protocols and standards shall further align policy, business, and technology approaches in a manner that would enable all electric resources, including demand-side resources, to contribute to an efficient, reliable electricity network. In developing such protocols and standards—(1) the Director shall seek input and cooperation from the Commission, OEDER and its Smart Grid Task Force, the Smart Grid Advisory Committee, other relevant Federal and State agencies; and (2) the Director shall also solicit input and cooperation from private entities interested in such protocols and standards, including but not limited to the Gridwise Architecture Council, the International Electrical and Electronics Engineers, the National Electric Reliability Organization recognized by the Federal Energy Regulatory Commission, and National Electrical Manufacturer’s Association. (b) Scope of frameworkThe framework developed under subsection (a) shall be flexible, uniform and technology neutral, including but not limited to technologies for managing smart grid information, and designed—(1) to accommodate traditional, centralized generation and transmission resources and consumer distributed resources, including distributed generation, renewable generation, energy storage, energy efficiency, and demand response and enabling devices and systems; (2) to be flexible to incorporate—(A) regional and organizational differences; and (B) technological innovations; (3) to consider the use of voluntary uniform standards for certain classes of mass-produced electric appliances and equipment for homes and businesses that enable customers, at their election and consistent with applicable State and Federal laws, and are manufactured with the ability to respond to electric grid emergencies and demand response signals by curtailing all, or a portion of, the electrical power consumed by the appliances or equipment in response to an emergency or demand response signal, including through—(A) load reduction to reduce total electrical demand; (B) adjustment of load to provide grid ancillary services; and (C) in the event of a reliability crisis that threatens an outage, short-term load shedding to help preserve the stability of the grid; and (4) such voluntary standards should incorporate appropriate manufacturer lead time.11 So in original. Does not fit with subsec. (b) introductory provisions. (c) Timing of framework developmentThe Institute shall begin work pursuant to this section within 60 days of December 19, 2007. The Institute shall provide and publish an initial report on progress toward recommended or consensus standards and protocols within 1 year after December 19, 2007, further reports at such times as developments warrant in the judgment of the Institute, and a final report when the Institute determines that the work is completed or that a Federal role is no longer necessary. (d) Standards for interoperability in Federal jurisdictionAt any time after the Institute’s work has led to sufficient consensus in the Commission’s judgment, the Commission shall institute a rulemaking proceeding to adopt such standards and protocols as may be necessary to insure smart-grid functionality and interoperability in interstate transmission of electric power, and regional and wholesale electricity markets. (e) AuthorizationThere are authorized to be appropriated for the purposes of this section $5,000,000 to the Institute to support the activities required by this subsection 22 So in original. Probably should be “section”. for each of fiscal years 2008 through 2012.

42 U.S.C. § 17386 Federal matching fund for smart grid investment costs

(a) Matching fundThe Secretary shall establish a Smart Grid Investment Matching Grant Program to provide grants of up to one-half (50 percent) of qualifying Smart Grid investments. (b) Qualifying investmentsQualifying Smart Grid investments may include any of the following made on or after November 15, 2021:(1) In the case of appliances covered for purposes of establishing energy conservation standards under part B of title III of the Energy Policy and Conservation Act of 1975 (42 U.S.C. 6291 et seq.), the documented expenditures incurred by a manufacturer of such appliances associated with purchasing or designing, creating the ability to manufacture, and manufacturing and installing for one calendar year, internal devices that allow the appliance to engage in Smart Grid functions. (2) In the case of specialized electricity-using equipment, including motors and drivers, installed in industrial or commercial applications, the documented expenditures incurred by its owner or its manufacturer of installing devices or modifying that equipment to engage in Smart Grid functions. (3) In the case of transmission and distribution equipment fitted with monitoring and communications devices to enable smart grid functions, the documented expenditures incurred by the electric utility to purchase and install such monitoring and communications devices. (4) In the case of metering devices, sensors, control devices, and other devices integrated with and attached to an electric utility system or retail distributor or marketer of electricity that are capable of engaging in Smart Grid functions, the documented expenditures incurred by the electric utility, distributor, or marketer and its customers to purchase and install such devices. (5) In the case of software that enables devices or computers to engage in Smart Grid functions, the documented purchase costs of the software. (6) In the case of entities that operate or coordinate operations of regional electric grids, the documented expenditures for purchasing and installing such equipment that allows Smart Grid functions to operate and be combined or coordinated among multiple electric utilities and between that region and other regions. (7) In the case of persons or entities other than electric utilities owning and operating a distributed electricity generator, the documented expenditures of enabling that generator to be monitored, controlled, or otherwise integrated into grid operations and electricity flows on the grid utilizing Smart Grid functions. (8) In the case of electric or hybrid-electric vehicles, the documented expenses for devices that allow the vehicle to engage in Smart Grid functions (but not the costs of electricity storage for the vehicle). (9) In the case of data analytics that enable software to engage in Smart Grid functions, the documented purchase costs of the data analytics. (10) In the case of buildings, the documented expenses for devices and software, including for installation, that allow buildings to engage in demand flexibility or Smart Grid functions. (11) In the case of utility communications, operational fiber and wireless broadband communications networks to enable data flow between distribution system components. (12) In the case of advanced transmission technologies such as dynamic line rating, flow control devices, advanced conductors, network topology optimization, or other hardware, software, and associated protocols applied to existing transmission facilities that increase the operational transfer capacity of a transmission network, the documented expenditures to purchase and install those advanced transmission technologies. (13) In the case of extreme weather or natural disasters, the ability to redirect or shut off power to minimize blackouts and avoid further damage. (14) The documented expenditures related to purchasing and implementing Smart Grid functions in such other cases as the Secretary shall identify. (c) Investments not includedQualifying Smart Grid investments do not include any of the following:(1) Investments or expenditures for Smart Grid technologies, devices, or equipment that utilize specific tax credits or deductions under the Internal Revenue Code, as amended. (2) Expenditures for electricity generation, transmission, or distribution infrastructure or equipment not directly related to enabling Smart Grid functions. (3) After the final date for State consideration of the Smart Grid Information Standard under section 2621(d)(17) 11 See References in Text note below. of title 16, an investment that is not in compliance with such standard. (4) After the development and publication by the Institute of protocols and model standards for interoperability of smart grid devices and technologies, an investment that fails to incorporate any of such protocols or model standards. (5) Expenditures for physical interconnection of generators or other devices to the grid except those that are directly related to enabling Smart Grid functions. (6) Expenditures for ongoing salaries, benefits, or personnel costs not incurred in the initial installation, training, or start up of smart grid functions. (7) Expenditures for travel, lodging, meals or other personal costs. (8) Ongoing or routine operation, billing, customer relations, security, and maintenance expenditures. (9) Such other expenditures that the Secretary determines not to be Qualifying Smart Grid Investments by reason of the lack of the ability to perform Smart Grid functions or lack of direct relationship to Smart Grid functions. (d) Smart grid functionsThe term “smart grid functions” means any of the following:(1) The ability to develop, store, send and receive digital information concerning electricity use, costs, prices, time of use, nature of use, storage, or other information relevant to device, grid, or utility operations, to or from or by means of the electric utility system, through one or a combination of devices and technologies. (2) The ability to develop, store, send and receive digital information concerning electricity use, costs, prices, time of use, nature of use, storage, or other information relevant to device, grid, or utility operations to or from a computer or other control device. (3) The ability to measure or monitor electricity use as a function of time of day, power quality characteristics such as voltage level, current, cycles per second, or source or type of generation and to store, synthesize or report that information by digital means. (4) The ability to sense and localize disruptions or changes in power flows on the grid and communicate such information instantaneously and automatically for purposes of enabling automatic protective responses to sustain reliability and security of grid operations. (5) The ability to detect, prevent, communicate with regard to, respond to, or recover from system security threats, including cyber-security threats and terrorism, using digital information, media, and devices. (6) The ability of any appliance or machine to respond to such signals, measurements, or communications automatically or in a manner programmed by its owner or operator without independent human intervention. (7) The ability to use digital information to operate functionalities on the electric utility grid that were previously electro-mechanical or manual. (8) The ability to use digital controls to manage and modify electricity demand, enable congestion management, assist in voltage control, provide operating reserves, and provide frequency regulation. (9) The ability to use data analytics and software-as-service to provide flexibility by improving the visibility of the electrical system to grid operators that can help quickly rebalance the electrical system with autonomous controls. (10) The ability to facilitate the aggregation or integration of distributed energy resources to serve as assets for the grid. (11) The ability to provide energy storage to meet fluctuating electricity demand, provide voltage support, and integrate intermittent generation sources, including vehicle-to-grid technologies. (12) The ability of hardware, software, and associated protocols applied to existing transmission facilities to increase the operational transfer capacity of a transmission network. (13) The ability to anticipate and mitigate impacts of extreme weather or natural disasters on grid resiliency. (14) The ability to facilitate the integration of renewable energy resources, electric vehicle charging infrastructure, and vehicle-to-grid technologies. (15) The ability to reliably meet increased demand from electric vehicles and the electrification of appliances and other sectors. (16) Such other functions as the Secretary may identify as being necessary or useful to the operation of a Smart Grid. (e) Procedures and rules(1) The Secretary shall, within 60 days after February 17, 2009, by means of a notice of intent and subsequent solicitation of grant proposals—(A) establish procedures by which applicants can obtain grants of not more than one-half of their documented costs; (B) require as a condition of receiving funding under this subsection that demonstration projects utilize open protocols and standards (including Internet-based protocols and standards) if available and appropriate; (C) establish procedures to ensure that there is no duplication or multiple payment for the same investment or costs, that the grant goes to the party making the actual expenditures for the qualifying Smart Grid investments, and that the grants made have a significant effect in encouraging and facilitating the development of a smart grid; (D) establish procedures to ensure there will be public records of grants made, recipients, and qualifying Smart Grid investments which have received grants; and (E) establish procedures to provide advance payment of moneys up to the full amount of the grant award. (2) The Secretary shall have discretion and exercise reasonable judgment to deny grants for investments that do not qualify. (f) Authorization of appropriationsThere are authorized to be appropriated to the Secretary such sums as are necessary for the administration of this section and the grants to be made pursuant to this section for fiscal years 2008 through 2012.

42 U.S.C. § 17387 Integrated energy systems

(a) In generalNot later than 180 days after December 27, 2020, the Secretary shall establish a research, development, and demonstration program to develop cost-effective integrated energy systems, including—(1) development of computer modeling to design different configurations of integrated energy systems and to optimize system operation; (2) research on system integration needed to plan, design, build, and operate integrated energy systems, including interconnection requirements with the electric grid; (3) development of integrated energy systems for various applications, including—(A) thermal energy generation and storage for buildings and manufacturing; (B) electricity storage coupled with energy generation; (C) desalination; (D) production of liquid and gaseous fuels; and (E) production of chemicals such as ammonia and ethylene; (4) development of testing facilities for integrated energy systems; and (5) research on incorporation of various technologies for integrated energy systems, including nuclear energy, renewable energy, storage, and carbon capture, utilization, and sequestration technologies. (b) Strategic plan(1) In generalNot later than 1 year after December 27, 2020, the Secretary shall submit to the Committee on Science, Space, and Technology of the House of Representatives and the Committee on Energy and Natural Resources of the Senate a strategic plan that identifies opportunities, challenges, and standards needed for the development and commercial application of integrated energy systems. The strategic plan shall include—(A) analysis of the potential benefits of development of integrated electric systems on the electric grid; (B) analysis of the potential contributions of integrated energy systems to different grid architecture scenarios; (C) research and development goals for various integrated energy systems, including those identified in subsection (a); (D) assessment of policy and market barriers to the adoption of integrated energy systems; (E) analysis of the technical and economic feasibility of adoption of different integrated energy systems; and (F) a 10-year roadmap to guide the program established under subsection (a). (2) UpdatesNot less than once every 3 years for the duration of this research program, the Secretary shall submit an updated version of the strategic plan to the Committee on Science, Space, and Technology of the House of Representatives and the Committee on Energy and Natural Resources of the Senate. (c) Program implementationIn carrying out the research, development, demonstration, and commercial application aims of subsection (a), the Secretary shall—(1) implement the recommendations set forth in the strategic plan in subsection (b); (2) coordinate across all relevant program offices at the Department, including—(A) the Office of Energy Efficiency and Renewable Energy; (B) the Office of Nuclear Energy; and (C) the Office of Fossil Energy; (3) leverage existing programs and resources of the Department; and (4) prioritize activities that accelerate the development of integrated electricity generation, storage, and distribution systems with net zero greenhouse gas emissions. (d) Integrated energy system definedThe term “integrated energy system” means a system composed of 2 or more co-located or jointly operated sub-systems of energy generation, energy storage, or other energy technologies.

42 U.S.C. § 17388 Advisory committee

(a) In generalNot later than 180 days after December 27, 2020, the Secretary shall designate an existing advisory committee to advise the Secretary on the authorization of research, development, and demonstration projects under sections 17384 and 17384a of this title. (b) ResponsibilityThe Secretary shall annually solicit from the advisory committee—(1) comments to identify grid modernization technology needs; (2) an assessment of the progress of the research activities on grid modernization; and (3) assistance in annually updating grid modernization technology roadmaps.

42 U.S.C. § 17389 Technology demonstration on the distribution grid

(a) In generalThe 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 projectsTo 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; and (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.

42 U.S.C. § 17390 Voluntary model pathways

(a) Establishment of voluntary model pathways(1) EstablishmentNot later than 90 days after December 27, 2020, the Secretary of Energy (in this section referred to as 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) ObjectivesThe 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 committeeNot later than 90 days after December 27, 2020, 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 assistanceThe 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.

42 U.S.C. § 17391 Voluntary state, regional, and local electricity distribution planning

(a) In generalOn the request of a State, regional organization, or electric utility, the Secretary of Energy 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 analysisThe 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) DesignationThe information collected for the assessment and analysis under subsection (a)(1)—(1) shall be considered to be critical electric infrastructure information under section 824o–1 of title 16; and (2) shall only be released in compliance with regulations implementing that section. (d) Technical assistanceFor 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) WithdrawalA 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) EffectNothing 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.

42 U.S.C. § 17392 Micro-grid and integrated micro-grid systems program

(a) DefinitionsIn this section:(1) Integrated micro-grid systemThe term “integrated micro-grid system” means a micro-grid system that—(A) comprises generation from both conventional and renewable energy resources; and (B) may use grid-scale energy storage. (2) Isolated communityThe 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 systemThe term “micro-grid system” means a localized grid that operates autonomously, regardless of whether the grid can operate in connection with another grid. (4) Rural electric cooperativeThe term “rural electric cooperative” means an electric cooperative (as defined in section 796 of title 16) that sells electric energy to persons in rural areas. (5) StrategyThe term “strategy” means the strategy developed pursuant to subsection (b)(2)(B). (b) Program(1) EstablishmentThe Secretary of Energy (in this section referred to as the “Secretary”) shall establish a program to promote the development of—(A) integrated micro-grid systems for isolated communities; and (B) micro-grid systems to increase the resilience of critical infrastructure. (2) RequirementsThe program established under paragraph (1) shall—(A) develop a feasibility assessment for—(i) integrated micro-grid systems in isolated communities; and (ii) micro-grid systems to enhance the resilience of critical infrastructure; (B) develop an implementation strategy, in accordance with paragraph (3), to promote the development of integrated 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) develop an implementation strategy to promote the development of micro-grid systems that increase the resilience of critical infrastructure; and (D) carry out 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. (3) Requirements for strategyIn developing the strategy under paragraph (2)(B), the Secretary shall consider—(A) opportunities for improving the efficiency of existing integrated micro-grid systems; (B) the capacity of the local workforce to operate, maintain, and repair a integrated micro-grid system as well as opportunities to improve that capacity; (C) leveraging existing capacity within local or regional research organizations, such as organizations based at institutions of higher education, to support development of integrated micro-grid systems, including by testing novel components and systems prior to field deployment; (D) the need for basic infrastructure to develop, deploy, and sustain a integrated micro-grid system; (E) input of traditional knowledge from local leaders of isolated communities in the development of a integrated micro-grid system; (F) the impact of integrated micro-grid systems on defense, homeland security, economic development, and environmental interests; (G) opportunities to leverage existing interagency coordination efforts and recommendations for new interagency coordination efforts to minimize unnecessary overhead, mobilization, and other project costs; and (H) any other criteria the Secretary determines appropriate. (c) CollaborationThe 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) ReportNot later than 180 days after December 27, 2020, 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). (e) Barriers and benefits to micro-grid systems(1) ReportNot later than 270 days after December 27, 2020, 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 benefits of, and barriers to, implementing resilient micro-grid systems that are—(A)(i) owned or operated by an isolated community, rural electric cooperative, or municipal government; or (ii) operated on behalf of a municipal government or rural electric cooperative; and (B) designed to maximize the use of—(i) energy-generation facilities owned or operated by isolated communities; or (ii) a municipal or rural electric cooperative energy-generation facility. (2) Grants to overcome barriersThe Secretary shall award grants of not more than $500,000 to not fewer than 20 municipal governments, rural electric cooperatives, or isolated communities, up to a total of $15,000,000, each year to assist those municipal governments, rural electric cooperatives, and isolated communities in overcoming the barriers identified in the report under paragraph (1).

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