USC Subchapter I

USC Subchapter I
in effect

42 U.S.C. § 18715 Transmission facility financing

(a) AppropriationIn addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $2,000,000,000, to remain available through September 30, 2030, to carry out this section: Provided, That the Secretary shall not enter into any loan agreement pursuant to this section that could result in disbursements after September 30, 2031. (b) Use of fundsThe Secretary shall use the amounts made available by subsection (a) to carry out a program to pay the costs of direct loans to non-Federal borrowers, subject to the limitations that apply to loan guarantees under section 50141(d) and under such terms and conditions as the Secretary determines to be appropriate, for the construction or modification of electric transmission facilities designated by the Secretary to be necessary in the national interest under section 824p(a) of title 16. (c) LoansA direct loan provided under this section—(1) shall have a term that does not exceed the lesser of—(A) 90 percent of the projected useful life, in years, of the eligible transmission facility; and (B) 30 years; (2) shall not exceed 80 percent of the project costs; and (3) shall, on first issuance, be subject to the condition that the direct loan is not subordinate to other financing. (d) Interest ratesA direct loan provided under this section shall bear interest at a rate determined by the Secretary, taking into consideration market yields on outstanding marketable obligations of the United States of comparable maturities as of the date on which the direct loan is made. (e) Definition of direct loanIn this section, the term “direct loan” has the meaning given the term in section 661a of title 2.

42 U.S.C. § 18715a Grants to facilitate the siting of interstate electricity transmission lines

(a) AppropriationIn addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $760,000,000, to remain available through September 30, 2029, for making grants in accordance with this section and for administrative expenses associated with carrying out this section. (b) Use of funds(1) In generalThe Secretary may make a grant under this section to a siting authority for, with respect to a covered transmission project, any of the following activities:(A) Studies and analyses of the impacts of the covered transmission project. (B) Examination of up to 3 alternate siting corridors within which the covered transmission project feasibly could be sited. (C) Participation by the siting authority in regulatory proceedings or negotiations in another jurisdiction, or under the auspices of a Transmission Organization (as defined in section 796 of title 16) that is also considering the siting or permitting of the covered transmission project. (D) Participation by the siting authority in regulatory proceedings at the Federal Energy Regulatory Commission or a State regulatory commission for determining applicable rates and cost allocation for the covered transmission project. (E) Other measures and actions that may improve the chances of, and shorten the time required for, approval by the siting authority of the application relating to the siting or permitting of the covered transmission project, as the Secretary determines appropriate. (2) Economic developmentThe Secretary may make a grant under this section to a siting authority, or other State, local, or Tribal governmental entity, for economic development activities for communities that may be affected by the construction and operation of a covered transmission project, provided that the Secretary shall not enter into any grant agreement pursuant to this section that could result in any outlays after September 30, 2031. (c) Conditions(1) Final decision on applicationIn order to receive a grant for an activity described in subsection (b)(1), the Secretary shall require a siting authority to agree, in writing, to reach a final decision on the application relating to the siting or permitting of the applicable covered transmission project not later than 2 years after the date on which such grant is provided, unless the Secretary authorizes an extension for good cause. (2) Federal shareThe Federal share of the cost of an activity described in subparagraph (C) or (D) of subsection (b)(1) shall not exceed 50 percent. (3) Economic developmentThe Secretary may only disburse grant funds for economic development activities under subsection (b)(2)—(A) to a siting authority upon approval by the siting authority of the applicable covered transmission project; and (B) to any other State, local, or Tribal governmental entity upon commencement of construction of the applicable covered transmission project in the area under the jurisdiction of the entity. (d) Returning fundsIf a siting authority that receives a grant for an activity described in subsection (b)(1) fails to use all grant funds within 2 years of receipt, the siting authority shall return to the Secretary any such unused funds. (e) DefinitionsIn this section:(1) Covered transmission projectThe term “covered transmission project” means a high-voltage interstate or offshore electricity transmission line—(A) that is proposed to be constructed and to operate—(i) at a minimum of 275 kilovolts of either alternating-current or direct-current electric energy by an entity; or (ii) offshore and at a minimum of 200 kilovolts of either alternating-current or direct-current electric energy by an entity; and (B) for which such entity has applied, or informed a siting authority of such entity’s intent to apply, for regulatory approval. (2) Siting authorityThe term “siting authority” means a State, local, or Tribal governmental entity with authority to make a final determination regarding the siting, permitting, or regulatory status of a covered transmission project that is proposed to be located in an area under the jurisdiction of the entity.

42 U.S.C. § 18715b Interregional and offshore wind electricity transmission planning, modeling, and analysis

(a) AppropriationIn addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $100,000,000, to remain available through September 30, 2031, to carry out this section. (b) Use of fundsThe Secretary shall use amounts made available under subsection (a)—(1) to pay expenses associated with convening relevant stakeholders to address the development of interregional electricity transmission and transmission of electricity that is generated by offshore wind; and (2) to conduct planning, modeling, and analysis regarding interregional electricity transmission and transmission of electricity that is generated by offshore wind, taking into account the local, regional, and national economic, reliability, resilience, security, public policy, and environmental benefits of interregional electricity transmission and transmission of electricity that is generated by offshore wind, including planning, modeling, and analysis, as the Secretary determines appropriate, pertaining to—(A) clean energy integration into the electric grid, including the identification of renewable energy zones; (B) the effects of changes in weather due to climate change on the reliability and resilience of the electric grid; (C) cost allocation methodologies that facilitate the expansion of the bulk power system; (D) the benefits of coordination between generator interconnection processes and transmission planning processes; (E) the effect of increased electrification on the electric grid; (F) power flow modeling; (G) the benefits of increased interconnections or interties between or among the Western Interconnection, the Eastern Interconnection, the Electric Reliability Council of Texas, and other interconnections, as applicable; (H) the cooptimization of transmission and generation, including variable energy resources, energy storage, and demand-side management; (I) the opportunities for use of nontransmission alternatives, energy storage, and grid-enhancing technologies; (J) economic development opportunities for communities arising from development of interregional electricity transmission and transmission of electricity that is generated by offshore wind; (K) evaluation of existing rights-of-way and the need for additional transmission corridors; and (L) a planned national transmission grid, which would include a networked transmission system to optimize the existing grid for interconnection of offshore wind farms.

42 U.S.C. § 18711 Preventing outages and enhancing the resilience of the electric grid

(a) DefinitionsIn this section:(1) Disruptive eventThe term “disruptive event” means an event in which operations of the electric grid are disrupted, preventively shut off, or cannot operate safely due to extreme weather, wildfire, or a natural disaster. (2) Eligible entityThe term “eligible entity” means—(A) an electric grid operator; (B) an electricity storage operator; (C) an electricity generator; (D) a transmission owner or operator; (E) a distribution provider; (F) a fuel supplier; and (G) any other relevant entity, as determined by the Secretary. (3) Natural disasterThe term “natural disaster” has the meaning given the term in section 5195a(a) of this title. (4) Power lineThe term “power line” includes a transmission line or a distribution line, as applicable. (5) ProgramThe term “program” means the program established under subsection (b). (b) Establishment of programNot later than 180 days after November 15, 2021, the Secretary shall establish a program under which the Secretary shall make grants to eligible entities, States, and Indian Tribes in accordance with this section. (c) Grants to eligible entities(1) In generalThe Secretary may make a grant under the program to an eligible entity to carry out activities that—(A) are supplemental to existing hardening efforts of the eligible entity planned for any given year; and (B)(i) reduce the risk of any power lines owned or operated by the eligible entity causing a wildfire; or (ii) increase the ability of the eligible entity to reduce the likelihood and consequences of disruptive events. (2) Application(A) In generalAn eligible entity desiring a grant under the program shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require. (B) RequirementAs a condition of receiving a grant under the program, an eligible entity shall submit to the Secretary, as part of the application of the eligible entity submitted under subparagraph (A), a report detailing past, current, and future efforts by the eligible entity to reduce the likelihood and consequences of disruptive events. (3) LimitationThe Secretary may not award a grant to an eligible entity in an amount that is greater than the total amount that the eligible entity has spent in the previous 3 years on efforts to reduce the likelihood and consequences of disruptive events. (4) PriorityIn making grants to eligible entities under the program, the Secretary shall give priority to projects that, in the determination of the Secretary, will generate the greatest community benefit (whether rural or urban) in reducing the likelihood and consequences of disruptive events. (5) Small utilities set asideThe Secretary shall ensure that not less than 30 percent of the amounts made available to eligible entities under the program are made available to eligible entities that sell not more than 4,000,000 megawatt hours of electricity per year. (d) Grants to States and Indian Tribes(1) In generalThe Secretary, in accordance with this subsection, may make grants under the program to States and Indian Tribes, which each State or Indian Tribe may use to award grants to eligible entities. (2) Annual application(A) In generalFor each fiscal year, to be eligible to receive a grant under this subsection, a State or Indian Tribe shall submit to the Secretary an application that includes a plan described in subparagraph (B). (B) Plan requiredA plan prepared by a State or Indian Tribe for purposes of an application described in subparagraph (A) shall—(i) describe the criteria and methods that will be used by the State or Indian Tribe to award grants to eligible entities; (ii) be adopted after notice and a public hearing; and (iii) describe the proposed funding distributions and recipients of the grants to be provided by the State or Indian Tribe. (3) Distribution of funds(A) In generalThe Secretary shall provide grants to States and Indian Tribes under this subsection based on a formula determined by the Secretary, in accordance with subparagraph (B). (B) RequirementThe formula referred to in subparagraph (A) shall be based on the following factors:(i) The total population of the State or Indian Tribe. (ii)(I) The total area of the State or the land of the Indian Tribe; or (II) the areas in the State or on the land of the Indian Tribe with a low ratio of electricity customers per mileage of power lines. (iii) The probability of disruptive events in the State or on the land of the Indian Tribe during the previous 10 years, as determined based on the number of federally declared disasters or emergencies in the State or on the land of the Indian Tribe, as applicable, including—(I) disasters for which Fire Management Assistance Grants are provided under section 5187 of this title; (II) major disasters declared by the President under section 5170 of this title; (III) emergencies declared by the President under section 5191 of this title; and (IV) any other federally declared disaster or emergency in the State or on the land of the Indian Tribe. (iv) The number and severity, measured by population and economic impacts, of disruptive events experienced by the State or Indian Tribe on or after January 1, 2011. (v) The total amount, on a per capita basis, of public and private expenditures during the previous 10 years to carry out mitigation efforts to reduce the likelihood and consequences of disruptive events in the State or on the land of the Indian Tribe, with States or Indian Tribes with higher per capita expenditures receiving additional weight or consideration as compared to States or Indian Tribes with lower per capita expenditures. (C) Annual update of data used in distribution of fundsBeginning 1 year after November 15, 2021, the Secretary shall annually update—(i) all data relating to the factors described in subparagraph (B); and (ii) all other data used in distributing grants to States and Indian Tribes under this subsection. (4) OversightThe Secretary shall ensure that each grant provided to a State or Indian Tribe under the program is allocated, pursuant to the applicable plan of the State or Indian Tribe, to eligible entities for projects within the State or on the land of the Indian Tribe. (5) PriorityIn making grants to eligible entities using funds made available to the applicable State or Indian Tribe under the program, the State or Indian Tribe shall give priority to projects that, in the determination of the State or Indian Tribe, will generate the greatest community benefit (whether rural or urban) in reducing the likelihood and consequences of disruptive events. (6) Small utilities set asideA State or Indian Tribe receiving a grant under the program shall ensure that, of the amounts made available to eligible entities from funds made available to the State or Indian Tribe under the program, the percentage made available to eligible entities that sell not more than 4,000,000 megawatt hours of electricity per year is not less than the percentage of all customers in the State or Indian Tribe that are served by those eligible entities. (7) Technical assistance and administrative expensesOf the amounts made available to a State or Indian Tribe under the program each fiscal year, the State or Indian Tribe may use not more than 5 percent for—(A) providing technical assistance under subsection (g)(1)(A); and (B) administrative expenses associated with the program. (8) Matching requirementEach State and Indian Tribe shall be required to match 15 percent of the amount of each grant provided to the State or Indian Tribe under the program. (e) Use of grants(1) In generalA grant awarded to an eligible entity under the program may be used for activities, technologies, equipment, and hardening measures to reduce the likelihood and consequences of disruptive events, including—(A) weatherization technologies and equipment; (B) fire-resistant technologies and fire prevention systems; (C) monitoring and control technologies; (D) the undergrounding of electrical equipment; (E) utility pole management; (F) the relocation of power lines or the reconductoring of power lines with low-sag, advanced conductors; (G) vegetation and fuel-load management; (H) the use or construction of distributed energy resources for enhancing system adaptive capacity during disruptive events, including—(i) microgrids; and (ii) battery-storage subcomponents; (I) adaptive protection technologies; (J) advanced modeling technologies; (K) hardening of power lines, facilities, substations, of 11 So in original. other systems; and (L) the replacement of old overhead conductors and underground cables. (2) Prohibitions and limitations(A) In generalA grant awarded to an eligible entity under the program may not be used for—(i) construction of a new—(I) electric generating facility; or (II) large-scale battery-storage facility that is not used for enhancing system adaptive capacity during disruptive events; or (ii) cybersecurity. (B) Certain investments eligible for recovery(i) In generalAn eligible entity may not seek cost recovery for the portion of the cost of any system, technology, or equipment that is funded through a grant awarded under the program. (ii) Savings provisionNothing in this subparagraph prohibits an eligible entity from recovering through traditional or incentive-based ratemaking any portion of an investment in a system, technology, or equipment that is not funded by a grant awarded under the program. (C) Application limitationsAn eligible entity may not submit an application for a grant provided by the Secretary under subsection (c) and a grant provided by a State or Indian Tribe pursuant to subsection (d) during the same application cycle. (f) Distribution of fundingOf the amounts made available to carry out the program for a fiscal year, the Secretary shall ensure that—(1) 50 percent is used to award grants to eligible entities under subsection (c); and (2) 50 percent is used to make grants to States and Indian Tribes under subsection (d). (g) Technical and other assistance(1) In generalThe Secretary, States, and Indian Tribes may—(A) provide technical assistance and facilitate the distribution and sharing of information to reduce the likelihood and consequences of disruptive events; and (B) promulgate consumer-facing information and resources to inform the public of best practices and resources relating to reducing the likelihood and consequences of disruptive events. (2) Use of funds by the SecretaryOf the amounts made available to the Secretary to carry out the program each fiscal year, the Secretary may use not more than 5 percent for—(A) providing technical assistance under paragraph (1)(A); and (B) administrative expenses associated with the program. (h) Matching requirement(1) In generalExcept as provided in paragraph (2), an eligible entity that receives a grant under this section shall be required to match 100 percent of the amount of the grant. (2) Exception for small utilitiesAn eligible entity that sells not more than 4,000,000 megawatt hours of electricity per year shall be required to match ⅓ of the amount of the grant. (i) Biennial report to Congress(1) In generalNot later than 2 years after November 15, 2021, and every 2 years thereafter through 2026, 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 describing the program. (2) RequirementsThe report under paragraph (1) shall include information and data on—(A) the costs of the projects for which grants are awarded to eligible entities; (B) the types of activities, technologies, equipment, and hardening measures funded by those grants; and (C) the extent to which the ability of the power grid to withstand disruptive events has increased. (j) Authorization of appropriationsThere is authorized to be appropriated to the Secretary to carry out the program $5,000,000,000 for the period of fiscal years 2022 through 2026.

42 U.S.C. § 18712 Electric grid reliability and resilience research, development, and demonstration

(a) Definition of Federal financial assistanceIn this section, the term “Federal financial assistance” has the meaning given the term in section 200.1 of title 2, Code of Federal Regulations. (b) Energy infrastructure Federal financial assistance program(1) DefinitionsIn this subsection:(A) Eligible entityThe term “eligible entity” means each of—(i) a State; (ii) a combination of 2 or more States; (iii) an Indian Tribe; (iv) a unit of local government; and (v) a public utility commission. (B) ProgramThe term “program” means the competitive Federal financial assistance program established under paragraph (2). (2) EstablishmentNot later than 180 days after November 15, 2021, the Secretary shall establish a program, to be known as the “Program Upgrading Our Electric Grid and Ensuring Reliability and Resiliency”, to provide, on a competitive basis, Federal financial assistance to eligible entities to carry out the purpose described in paragraph (3). (3) PurposeThe purpose of the program is to coordinate and collaborate with electric sector owners and operators—(A) to demonstrate innovative approaches to transmission, storage, and distribution infrastructure to harden and enhance resilience and reliability; and (B) to demonstrate new approaches to enhance regional grid resilience, implemented through States by public and rural electric cooperative entities on a cost-shared basis. (4) ApplicationsTo be eligible to receive Federal financial assistance under the program, an eligible entity shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require, including a description of—(A) how the Federal financial assistance would be used; (B) the expected beneficiaries, and (C) in the case of a proposal from an eligible entity described in paragraph (1)(A)(ii), how the proposal would improve regional energy infrastructure. (5) SelectionThe Secretary shall select eligible entities to receive Federal financial assistance under the program on a competitive basis. (6) Cost shareSection 16352 of this title shall apply to Federal financial assistance provided under the program. (7) Authorization of appropriationsThere is authorized to be appropriated to the Secretary to carry out this subsection, $5,000,000,000 for the period of fiscal years 2022 through 2026. (c) Energy improvement in rural or remote areas(1) Definition of rural or remote areaIn this subsection, the term “rural or remote area” means a city, town, or unincorporated area that has a population of not more than 10,000 inhabitants. (2) Required activitiesThe Secretary shall carry out activities to improve in rural or remote areas of the United States—(A) the resilience, safety, reliability, and availability of energy; and (B) environmental protection from adverse impacts of energy generation. (3) Federal financial assistanceThe Secretary, in consultation with the Secretary of the Interior, may provide Federal financial assistance to rural or remote areas for the purpose of—(A) overall cost-effectiveness of energy generation, transmission, or distribution systems; (B) siting or upgrading transmission and distribution lines; (C) reducing greenhouse gas emissions from energy generation by rural or remote areas; (D) providing or modernizing electric generation facilities; (E) developing microgrids; and (F) increasing energy efficiency. (4) Authorization of appropriationsThere is authorized to be appropriated to the Secretary to carry out this subsection, $1,000,000,000 for the period of fiscal years 2022 through 2026. (d) Energy infrastructure resilience framework(1) In generalThe Secretary, in collaboration with the Secretary of Homeland Security, the Federal Energy Regulatory Commission, the North American Electric Reliability Corporation, and interested energy infrastructure stakeholders, shall develop common analytical frameworks, tools, metrics, and data to assess the resilience, reliability, safety, and security of energy infrastructure in the United States, including by developing and storing an inventory of easily transported high-voltage recovery transformers and other required equipment. (2) Assessment and report(A) AssessmentThe Secretary shall carry out an assessment of—(i) with respect to the inventory of high-voltage recovery transformers, new transformers, and other equipment proposed to be developed and stored under paragraph (1)—(I) the policies, technical specifications, and logistical and program structures necessary to mitigate the risks associated with the loss of high-voltage recovery transformers; (II) the technical specifications for high-voltage recovery transformers; (III) where inventory of high-voltage recovery transformers should be stored; (IV) the quantity of high-voltage recovery transformers necessary for the inventory; (V) how the stored inventory of high-voltage recovery transformers would be secured and maintained; (VI) how the high-voltage recovery transformers may be transported; (VII) opportunities for developing new flexible advanced transformer designs; and (VIII) whether new Federal regulations or cost-sharing requirements are necessary to carry out the storage of high-voltage recovery transformers; and (ii) any efforts carried out by industry as of the date of the assessment—(I) to share transformers and equipment; (II) to develop plans for next generation transformers; and (III) to plan for surge and long-term manufacturing of, and long-term standardization of, transformer designs. (B) Protection of informationInformation that is provided to, generated by, or collected by the Secretary under subparagraph (A) shall be considered to be critical electric infrastructure information under section 824o–1 of title 16. (C) ReportNot later than 180 days after November 15, 2021, the Secretary shall submit to Congress a report describing the results of the assessment carried out under subparagraph (A).

42 U.S.C. § 18713 Transmission facilitation program

(a) DefinitionsIn this section:(1) Capacity contractThe term “capacity contract” means a contract entered into by the Secretary and an eligible entity under subsection (e)(1)(A) for the right to the use of the transmission capacity of an eligible project. (2) Eligible electric power transmission lineThe term “eligible electric power transmission line” means an electric power transmission line that is capable of transmitting not less than—(A) 1,000 megawatts; or (B) in the case of a project that consists of upgrading an existing transmission line or constructing a new transmission line in an existing transmission, transportation, or telecommunications infrastructure corridor, 500 megawatts. (3) Eligible entityThe term “eligible entity” means an entity seeking to carry out an eligible project. (4) Eligible projectThe term “eligible project” means a project (including any related facility)—(A) to construct a new or replace an existing eligible electric power transmission line; (B) to increase the transmission capacity of an existing eligible electric power transmission line; or (C) to connect an isolated microgrid to an existing transmission, transportation, or telecommunications infrastructure corridor located in Alaska, Hawaii, or a territory of the United States. (5) FundThe term “Fund” means the Transmission Facilitation Fund established by subsection (d)(1). (6) ProgramThe term “program” means the Transmission Facilitation Program established by subsection (b). (7) Related facility(A) In generalThe term “related facility” means a facility related to an eligible project described in paragraph (4). (B) ExclusionsThe term “related facility” does not include—(i) facilities used primarily to generate electric energy; or (ii) facilities used in the local distribution of electric energy. (b) EstablishmentThere is established a program, to be known as the “Transmission Facilitation Program”, under which the Secretary shall facilitate the construction of electric power transmission lines and related facilities in accordance with subsection (e). (c) Applications(1) In generalTo be eligible for assistance under this section, an eligible entity shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require. (2) ProceduresThe Secretary shall establish procedures for the solicitation and review of applications from eligible entities. (d) Funding(1) Transmission Facilitation FundThere is established in the Treasury a fund, to be known as the “Transmission Facilitation Fund”, consisting of—(A) all amounts received by the Secretary, including receipts, collections, and recoveries, from any source relating to expenses incurred by the Secretary in carrying out the program, including—(i) costs recovered pursuant to paragraph (4); (ii) amounts received as repayment of a loan issued to an eligible entity under subsection (e)(1)(B); and (iii) amounts contributed by eligible entities for the purpose of carrying out an eligible project with respect to which the Secretary is participating with the eligible entity under subsection (e)(1)(C); (B) all amounts borrowed from the Secretary of the Treasury by the Secretary for the program under paragraph (2); and (C) any amounts appropriated to the Secretary for the program. (2) Borrowing authorityThe Secretary of the Treasury may, without further appropriation and without fiscal year limitation, loan to the Secretary on such terms as may be fixed by the Secretary and the Secretary of the Treasury, such sums as, in the judgment of the Secretary, are from time to time required for the purpose of carrying out the program, not to exceed, in the aggregate (including deferred interest), $2,500,000,000 in outstanding repayable balances at any 1 time. (3) Authorization of appropriationsThere is authorized to be appropriated to the Secretary to carry out the program, including for any administrative expenses of carrying out the program that are not recovered under paragraph (4), $10,000,000 for each of fiscal years 2022 through 2026. (4) Cost recovery(A) In generalExcept as provided in subparagraph (B), the cost of any facilitation activities carried out by the Secretary under subsection (e)(1) shall be collected—(i) from eligible entities receiving the benefit of the applicable facilitation activity, on a schedule to be determined by the Secretary; or (ii) with respect to a contracted transmission capacity under subsection (e)(1)(A) through rates charged for the use of the contracted transmission capacity. (B) Forgiveness of balances(i) Termination or end of useful lifeIf, at the end of the useful life of an eligible project or the termination of a capacity contract under subsection (f)(5), there is a remaining balance owed to the Treasury under this section, the balance shall be forgiven. (ii) Unconstructed projectsFunds expended to study projects that are considered pursuant to this section but that are not constructed shall be forgiven. (C) Recovery of costs of eligible projectsThe Secretary may collect the costs of any activities carried out by the Secretary with respect to an eligible project in which the Secretary participates with an eligible entity under subsection (e)(1)(C) through rates charged to customers benefitting from the new transmission capability provided by the eligible project. (e) Facilitation of eligible projects(1) In generalTo facilitate eligible projects, the Secretary may—(A) subject to subsections (f) and (i), enter into a capacity contract with respect to an eligible project prior to the date on which the eligible project is completed; (B) subject to subsections (g) and (i), issue a loan to an eligible entity for the costs of carrying out an eligible project; or (C) subject to subsections (h) and (i), participate with an eligible entity in designing, developing, constructing, operating, maintaining, or owning an eligible project. (2) RequirementThe provision and receipt of assistance for an eligible project under paragraph (1) shall be subject to such terms and conditions as the Secretary determines to be appropriate—(A) to ensure the success of the program; and (B) to protect the interests of the United States. (f) Capacity contracts(1) PurposeIn entering into capacity contracts under subsection (e)(1)(A), the Secretary shall seek to enter into capacity contracts that will encourage other entities to enter into contracts for the transmission capacity of the eligible project. (2) PaymentThe amount paid by the Secretary to an eligible entity under a capacity contract for the right to the use of the transmission capacity of an eligible project shall be—(A) the fair market value for the use of the transmission capacity, as determined by the Secretary, taking into account, as the Secretary determines to be necessary, the comparable value for the use of the transmission capacity of other electric power transmission lines; and (B) on a schedule and in such divided amounts, which may be a single amount, that the Secretary determines are likely to facilitate construction of the eligible project, taking into account standard industry practice and factors specific to each applicant, including, as applicable—(i) potential review by a State regulatory entity of the revenue requirement of an electric utility; and (ii) the financial model of an independent transmission developer. (3) LimitationsA capacity contract shall—(A) be for a term of not more than 40 years; and (B) be for not more than 50 percent of the total proposed transmission capacity of the applicable eligible project. (4) Transmission marketing(A) In generalIf the Secretary has not terminated a capacity contract under paragraph (5) before the applicable eligible project enters into service, the Secretary may enter into 1 or more contracts with a third party to market the transmission capacity of the eligible project to which the Secretary holds rights under the capacity contract. (B) ReturnSubject to subparagraph (D), the Secretary shall seek to ensure that any contract entered into under subparagraph (A) maximizes the financial return to the Federal Government. (C) Competitive solicitationThe Secretary shall only select third parties for contracts under this paragraph through a competitive solicitation. (D) RequirementThe marketing of capacity pursuant to this subsection, including any marketing by a third party under subparagraph (A), shall be undertaken consistent with the requirements of the Federal Power Act (16 U.S.C. 791a et seq.). (5) Termination(A) In generalThe Secretary shall seek to terminate a capacity contract as soon as practicable after determining that sufficient transmission capacity of the eligible project has been secured by other entities to ensure the long-term financial viability of the eligible project, including through 1 or more transfers under subparagraph (B). (B) TransferOn payment to the Secretary by a third party for transmission capacity to which the Secretary has rights under a capacity contract, the Secretary may transfer the rights to that transmission capacity to that third party. (C) RelinquishmentOn payment to the Secretary by the applicable eligible entity for transmission capacity to which the Secretary has rights under a capacity contract, the Secretary may relinquish the rights to that transmission capacity to the eligible entity. (D) RequirementA payment under subparagraph (B) or (C) shall be in an amount sufficient for the Secretary to recover any remaining costs incurred by the Secretary with respect to the quantity of transmission capacity affected by the transfer under subparagraph (B) or the relinquishment under subparagraph (C), as applicable. (6) Other Federal capacity positionsThe existence of a capacity contract does not preclude a Federal entity, including a Federal power marketing administration, from otherwise securing transmission capacity at any time from an eligible project, to the extent that the Federal entity is authorized to secure that transmission capacity. (7) Form of financial assistanceEntering into a capacity contract under subsection (e)(1)(A) shall be considered a form of financial assistance described in section 1508.1(q)(1)(vii) of title 40, Code of Federal Regulations (as in effect on November 15, 2021). (8) Transmission planning region consultationPrior to entering into a capacity contract under this subsection, the Secretary shall consult with the relevant transmission planning region regarding the transmission planning region’s identification of needs, and the Secretary shall minimize, to the extent possible, duplication or conflict with the transmission planning region’s needs determination and selection of projects that meet such needs. (g) Interest rate on loansThe rate of interest to be charged in connection with any loan made by the Secretary to an eligible entity under subsection (e)(1)(B) shall be fixed by the Secretary, taking into consideration market yields on outstanding marketable obligations of the United States of comparable maturities as of the date of the loan. (h) Public-private partnershipsThe Secretary may participate with an eligible entity with respect to an eligible project under subsection (e)(1)(C) if the Secretary determines that the eligible project—(1)(A) is located in an area designated as a national interest electric transmission corridor pursuant to section 216(a) of the Federal Power Act [16 U.S.C. 824p(a)]; or (B) is necessary to accommodate an actual or projected increase in demand for electric transmission capacity across more than 1 State or transmission planning region; (2) is consistent with efficient and reliable operation of the transmission grid; (3) will be operated in conformance with prudent utility practices; (4) will be operated in conformance with the rules of—(A) a Transmission Organization (as defined in section 3 of the Federal Power Act (16 U.S.C. 796)), if applicable; or (B) a regional reliability organization; and (5) is not duplicative of the functions of existing transmission facilities that are the subject of ongoing siting and related permitting proceedings. (i) CertificationPrior to taking action to facilitate an eligible project under subparagraph (A), (B), or (C) of subsection (e)(1), the Secretary shall certify that—(1) the eligible project is in the public interest; (2) the eligible project is unlikely to be constructed in as timely a manner or with as much transmission capacity in the absence of facilitation under this section, including with respect to an eligible project for which a Federal investment tax credit may be allowed; and (3) it is reasonable to expect that the proceeds from the eligible project will be adequate, as applicable—(A) to recover the cost of a capacity contract entered into under subsection (e)(1)(A); (B) to repay a loan provided under subsection (e)(1)(B); or (C) to repay any amounts borrowed from the Secretary of the Treasury under subsection (d)(2). (j) Other authorities, limitations, and effects(1) ParticipationThe Secretary may permit other entities to participate in the financing, construction, and ownership of eligible projects facilitated under this section. (2) Operations and maintenanceFacilitation by the Secretary of an eligible project under this section does not create any obligation on the part of the Secretary to operate or maintain the eligible project. (3) Federal facilitiesFor purposes of cost recovery under subsection (d)(4) and repayment of a loan issued under subsection (e)(1)(B), each eligible project facilitated by the Secretary under this section shall be treated as separate and distinct from—(A) each other eligible project; and (B) all other Federal power and transmission facilities. (4) Effect on ancillary services authority and obligationsNothing in this section confers on the Secretary or any Federal power marketing administration any additional authority or obligation to provide ancillary services to users of transmission facilities constructed or upgraded under this section. (5) Effect on Western Area Power Administration projectsNothing in this section affects—(A) any pending project application before the Western Area Power Administration under section 16421a of this title; or (B) any agreement entered into by the Western Power Administration under that section. (6) Third-party financeNothing in this section precludes an eligible project facilitated under this section from being eligible as a project under section 16421 of this title. (7) Limitation on loansAn eligible project may not be the subject of both—(A) a loan under subsection (e)(1)(B); and (B) a Federal loan under section 16421a of this title. (8) ConsiderationsIn evaluating eligible projects for possible facilitation under this section, the Secretary shall prioritize projects that, to the maximum extent practicable—(A) use technology that enhances the capacity, efficiency, resiliency, or reliability of an electric power transmission system, including—(i) reconductoring of an existing electric power transmission line with advanced conductors; and (ii) hardware or software that enables dynamic line ratings, advanced power flow control, or grid topology optimization; (B) will improve the resiliency and reliability of an electric power transmission system; (C) facilitate interregional transfer capacity that supports strong and equitable economic growth; and (D) contribute to national or subnational goals to lower electricity sector greenhouse gas emissions.

42 U.S.C. § 18721 Enhancing grid security through public-private partnerships

(a) DefinitionsIn this section:(1) Bulk-power system; Electric Reliability OrganizationThe terms “bulk-power system” and “Electric Reliability Organization” has the meaning given the terms in section 824o(a) of title 16. (2) Electric utility; State regulatory authorityThe terms “electric utility” and “State regulatory authority” have the meanings given the terms in section 796 of title 16. (b) Program to promote and advance physical security and cybersecurity of electric utilities(1) EstablishmentThe Secretary, in coordination with the Secretary of Homeland Security and in consultation with, as the Secretary determines to be appropriate, the heads of other relevant Federal agencies, State regulatory authorities, industry stakeholders, and the Electric Reliability Organization, shall carry out a program—(A) to develop, and provide for voluntary implementation of, maturity models, self-assessments, and auditing methods for assessing the physical security and cybersecurity of electric utilities; (B) to assist with threat assessment and cybersecurity training for electric utilities; (C) to provide technical assistance for electric utilities subject to the program; (D) to provide training to electric utilities to address and mitigate cybersecurity supply chain management risks; (E) to advance, in partnership with electric utilities, the cybersecurity of third-party vendors that manufacture components of the electric grid; (F) to increase opportunities for sharing best practices and data collection within the electric sector; and (G) to assist, in the case of electric utilities that own defense critical electric infrastructure (as defined in section 824o–1(a) of title 16), with full engineering reviews of critical functions and operations at both the utility and defense infrastructure levels—(i) to identify unprotected avenues for cyber-enabled sabotage that would have catastrophic effects to national security; and (ii) to recommend and implement engineering protections to ensure continued operations of identified critical functions even in the face of constant cyber attacks and achieved perimeter access by sophisticated adversaries. (2) ScopeIn carrying out the program under paragraph (1), the Secretary shall—(A) take into consideration—(i) the different sizes of electric utilities; and (ii) the regions that electric utilities serve; (B) prioritize electric utilities with fewer available resources due to size or region; and (C) to the maximum extent practicable, use and leverage—(i) existing Department and Department of Homeland Security programs; and (ii) existing programs of the Federal agencies determined to be appropriate under paragraph (1). (c) Report on cybersecurity of distribution systemsNot later than 1 year after November 15, 2021, the Secretary, in coordination with the Secretary of Homeland Security and in consultation with, as the Secretary determines to be appropriate, the heads of other Federal agencies, State regulatory authorities, and industry stakeholders, shall submit to Congress a report that assesses—(1) priorities, policies, procedures, and actions for enhancing the physical security and cybersecurity of electricity distribution systems, including behind-the-meter generation, storage, and load management devices, to address threats to, and vulnerabilities of, electricity distribution systems; and (2) the implementation of the priorities, policies, procedures, and actions assessed under paragraph (1), including—(A) an estimate of potential costs and benefits of the implementation; and (B) an assessment of any public-private cost-sharing opportunities. (d) Protection of informationInformation provided to, or collected by, the Federal Government pursuant to this section the disclosure of which the Secretary reasonably foresees could be detrimental to the physical security or cybersecurity of any electric utility or the bulk-power system—(1) shall be exempt from disclosure under section 552(b)(3) of title 5; and (2) shall not be made available by any Federal agency, State, political subdivision of a State, or Tribal authority pursuant to any Federal, State, political subdivision of a State, or Tribal law, respectively, requiring public disclosure of information or records.

42 U.S.C. § 18722 Energy cyber sense program

(a) DefinitionsIn this section:(1) Bulk-power systemThe term “bulk-power system” has the meaning given the term in section 824o(a) of title 16. (2) ProgramThe term “program” means the voluntary Energy Cyber Sense program established under subsection (b). (b) EstablishmentThe Secretary, in coordination with the Secretary of Homeland Security and in consultation with the heads of other relevant Federal agencies, shall establish a voluntary Energy Cyber Sense program to test the cybersecurity of products and technologies intended for use in the energy sector, including in the bulk-power system. (c) Program requirementsIn carrying out subsection (b), the Secretary, in coordination with the Secretary of Homeland Security and in consultation with the heads of other relevant Federal agencies, shall—(1) establish a testing process under the program to test the cybersecurity of products and technologies intended for use in the energy sector, including products relating to industrial control systems and operational technologies, such as supervisory control and data acquisition systems; (2) for products and technologies tested under the program, establish and maintain cybersecurity vulnerability reporting processes and a related database that are integrated with Federal vulnerability coordination processes; (3) provide technical assistance to electric utilities, product manufacturers, and other energy sector stakeholders to develop solutions to mitigate identified cybersecurity vulnerabilities in products and technologies tested under the program; (4) biennially review products and technologies tested under the program for cybersecurity vulnerabilities and provide analysis with respect to how those products and technologies respond to and mitigate cyber threats; (5) develop guidance that is informed by analysis and testing results under the program for electric utilities and other components of the energy sector for the procurement of products and technologies; (6) provide reasonable notice to, and solicit comments from, the public prior to establishing or revising the testing process under the program; (7) oversee the testing of products and technologies under the program; and (8) consider incentives to encourage the use of analysis and results of testing under the program in the design of products and technologies for use in the energy sector. (d) Protection of informationInformation provided to, or collected by, the Federal Government pursuant to this section the disclosure of which the Secretary reasonably foresees could be detrimental to the physical security or cybersecurity of any component of the energy sector, including any electric utility or the bulk-power system—(1) shall be exempt from disclosure under section 552(b)(3) of title 5; and (2) shall not be made available by any Federal agency, State, political subdivision of a State, or Tribal authority pursuant to any Federal, State, political subdivision of a State, or Tribal law, respectively, requiring public disclosure of information or records. (e) Federal Government liabilityNothing in this section authorizes the commencement of an action against the United States with respect to the testing of a product or technology under the program.

42 U.S.C. § 18723 Rural and municipal utility advanced cybersecurity grant and technical assistance program

(a) DefinitionsIn this section:(1) Advanced cybersecurity technologyThe term “advanced cybersecurity technology” means any technology, operational capability, or service, including computer hardware, software, or a related asset, that enhances the security posture of electric utilities through improvements in the ability to protect against, detect, respond to, or recover from a cybersecurity threat (as defined in section 650 of title 6). (2) Bulk-power systemThe term “bulk-power system” has the meaning given the term in section 824o(a) of title 16. (3) Eligible entityThe term “eligible entity” means—(A) a rural electric cooperative; (B) a utility owned by a political subdivision of a State, such as a municipally owned electric utility; (C) a utility owned by any agency, authority, corporation, or instrumentality of 1 or more political subdivisions of a State; (D) a not-for-profit entity that is in a partnership with not fewer than 6 entities described in subparagraph (A), (B), or (C); and (E) an investor-owned electric utility that sells less than 4,000,000 megawatt hours of electricity per year. (4) ProgramThe term “Program” means the Rural and Municipal Utility Advanced Cybersecurity Grant and Technical Assistance Program established under subsection (b). (b) EstablishmentNot later than 180 days after November 15, 2021, the Secretary, in coordination with the Secretary of Homeland Security and in consultation with the Federal Energy Regulatory Commission, the North American Electric Reliability Corporation, and the Electricity Subsector Coordinating Council, shall establish a program, to be known as the “Rural and Municipal Utility Advanced Cybersecurity Grant and Technical Assistance Program”, to provide grants and technical assistance to, and enter into cooperative agreements with, eligible entities to protect against, detect, respond to, and recover from cybersecurity threats. (c) ObjectivesThe objectives of the Program shall be—(1) to deploy advanced cybersecurity technologies for electric utility systems; and (2) to increase the participation of eligible entities in cybersecurity threat information sharing programs. (d) Awards(1) In generalThe Secretary—(A) shall award grants and provide technical assistance under the Program to eligible entities on a competitive basis; (B) shall develop criteria and a formula for awarding grants and providing technical assistance under the Program; (C) may enter into cooperative agreements with eligible entities that can facilitate the objectives described in subsection (c); and (D) shall establish a process to ensure that all eligible entities are informed about and can become aware of opportunities to receive grants or technical assistance under the Program. (2) Priority for grants and technical assistanceIn awarding grants and providing technical assistance under the Program, the Secretary shall give priority to an eligible entity that, as determined by the Secretary—(A) has limited cybersecurity resources; (B) owns assets critical to the reliability of the bulk-power system; or (C) owns defense critical electric infrastructure (as defined in section 824o–1(a) of title 16). (e) Protection of informationInformation provided to, or collected by, the Federal Government pursuant to this section the disclosure of which the Secretary reasonably foresees could be detrimental to the physical security or cybersecurity of any electric utility or the bulk-power system—(1) shall be exempt from disclosure under section 552(b)(3) of title 5; and (2) shall not be made available by any Federal agency, State, political subdivision of a State, or Tribal authority pursuant to any Federal, State, political subdivision of a State, or Tribal law, respectively, requiring public disclosure of information or records. (f) Authorization of appropriationsThere is authorized to be appropriated to the Secretary to carry out this section $250,000,000 for the period of fiscal years 2022 through 2026.

42 U.S.C. § 18724 Enhanced grid security

(a) DefinitionsIn this section:(1) Electric utilityThe term “electric utility” has the meaning given the term in section 796 of title 16. (2) E-ISACThe term “E-ISAC” means the Electricity Information Sharing and Analysis Center. (b) Cybersecurity for the energy sector research, development, and demonstration program(1) In generalThe Secretary, in coordination with the Secretary of Homeland Security and in consultation with, as determined appropriate, other Federal agencies, the energy sector, the States, Indian Tribes, Tribal organizations, territories or freely associated states, and other stakeholders, shall develop and carry out a program—(A) to develop advanced cybersecurity applications and technologies for the energy sector—(i) to identify and mitigate vulnerabilities, including—(I) dependencies on other critical infrastructure; (II) impacts from weather and fuel supply; (III) increased dependence on inverter-based technologies; and (IV) vulnerabilities from unpatched hardware and software systems; and (ii) to advance the security of field devices and third-party control systems, including—(I) systems for generation, transmission, distribution, end use, and market functions; (II) specific electric grid elements including advanced metering, demand response, distribution, generation, and electricity storage; (III) forensic analysis of infected systems; (IV) secure communications; and (V) application of in-line edge security solutions; (B) to leverage electric grid architecture as a means to assess risks to the energy sector, including by implementing an all-hazards approach to communications infrastructure, control systems architecture, and power systems architecture; (C) to perform pilot demonstration projects with the energy sector to gain experience with new technologies; (D) to develop workforce development curricula for energy sector-related cybersecurity; and (E) to develop improved supply chain concepts for secure design of emerging digital components and power electronics. (2) Authorization of appropriationsThere is authorized to be appropriated to the Secretary to carry out this subsection $250,000,000 for the period of fiscal years 2022 through 2026. (c) Energy sector operational support for cyberresilience program(1) In generalThe Secretary may develop and carry out a program—(A) to enhance and periodically test—(i) the emergency response capabilities of the Department; and (ii) the coordination of the Department with other agencies, the National Laboratories, and private industry; (B) to expand cooperation of the Department with the intelligence community for energy sector-related threat collection and analysis; (C) to enhance the tools of the Department and E-ISAC for monitoring the status of the energy sector; (D) to expand industry participation in E-ISAC; and (E) to provide technical assistance to small electric utilities for purposes of assessing and improving cybermaturity levels and addressing gaps identified in the assessment. (2) Authorization of appropriationsThere is authorized to be appropriated to the Secretary to carry out this subsection $50,000,000 for the period of fiscal years 2022 through 2026. (d) Modeling and assessing energy infrastructure risk(1) In generalThe Secretary, in coordination with the Secretary of Homeland Security, shall develop and carry out an advanced energy security program to secure energy networks, including—(A) electric networks; (B) natural gas networks; and (C) oil exploration, transmission, and delivery networks. (2) Security and resiliency objectiveThe objective of the program developed under paragraph (1) is to increase the functional preservation of electric grid operations or natural gas and oil operations in the face of natural and human-made threats and hazards, including electric magnetic pulse and geomagnetic disturbances. (3) Eligible activitiesIn carrying out the program developed under paragraph (1), the Secretary may—(A) develop capabilities to identify vulnerabilities and critical components that pose major risks to grid security if destroyed or impaired; (B) provide modeling at the national level to predict impacts from natural or human-made events; (C) add physical security to the cybersecurity maturity model; (D) conduct exercises and assessments to identify and mitigate vulnerabilities to the electric grid, including providing mitigation recommendations; (E) conduct research on hardening solutions for critical components of the electric grid; (F) conduct research on mitigation and recovery solutions for critical components of the electric grid; and (G) provide technical assistance to States and other entities for standards and risk analysis. (4) Savings provisionNothing in this section authorizes new regulatory requirements. (5) Authorization of appropriationsThere is authorized to be appropriated to the Secretary to carry out this subsection $50,000,000 for the period of fiscal years 2022 through 2026.

42 U.S.C. § 18725 Cybersecurity plan

(a) In generalThe Secretary may require, as the Secretary determines appropriate, a recipient of any award or other funding under this division—(1) to submit to the Secretary, prior to the issuance of the award or other funding, a cybersecurity plan that demonstrates the cybersecurity maturity of the recipient in the context of the project for which that award or other funding was provided; and (2) establish a plan for maintaining and improving cybersecurity throughout the life of the proposed solution of the project. (b) Contents of cybersecurity planA cybersecurity plan described in subsection (a) shall, at a minimum, describe how the recipient described in that subsection—(1) plans to maintain cybersecurity between networks, systems, devices, applications, or components—(A) within the proposed solution of the project; and (B) at the necessary external interfaces at the proposed solution boundaries; (2) will perform ongoing evaluation of cybersecurity risks to address issues as the issues arise throughout the life of the proposed solution; (3) will report known or suspected network or system compromises of the project to the Secretary; and (4) will leverage applicable cybersecurity programs of the Department, including cyber vulnerability testing and security engineering evaluations. (c) Additional guidanceEach recipient described in subsection (a) should—(1) maximize the use of open guidance and standards, including, wherever possible—(A) the Cybersecurity Capability Maturity Model of the Department (or a successor model); and (B) the Framework for Improving Critical Infrastructure Cybersecurity of the National Institute of Standards and Technology; and (2) document—(A) any deviation from open standards; and (B) the utilization of proprietary standards where the recipient determines that such deviation necessary. (d) CoordinationThe Office of Cybersecurity, Energy Security, and Emergency Response of the Department shall review each cybersecurity plan submitted under subsection (a) to ensure integration with Department research, development, and demonstration programs. (e) Protection of informationInformation provided to, or collected by, the Federal Government pursuant to this section the disclosure of which the Secretary reasonably foresees could be detrimental to the physical security or cybersecurity of any electric utility or the bulk-power system—(1) shall be exempt from disclosure under section 552(b)(3) of title 5; and (2) shall not be made available by any Federal agency, State, political subdivision of a State, or Tribal authority pursuant to any Federal, State, political subdivision of a State, or Tribal law, respectively, requiring public disclosure of information or records.

42 U.S.C. § 18726 Savings provision

Nothing in this part affects the authority, existing on the day before November 15, 2021, of any other Federal department or agency, including the authority provided to the Secretary of Homeland Security and the Director of the Cybersecurity and Infrastructure Security Agency in title XXII of the Homeland Security Act of 2002 (6 U.S.C. 651 et seq.).

Starting a business? Corpus forms LLCs in all 50 states and DC.