,i #aacth ,,congress #ast ,session ,h4 ,r4 #bfhe ,,in ,,the ,,house ,,of ,,representatives ,july #aa1 #bjac ,mr4 ,mc,nerney 7for himself and ,mr4 ,cartwright7 introduced the following bill2 which was referred to the ,committee on ,energy and ,commerce ,a ,,bill ,to incorporate smart grid capability into the ,energy ,star ,program1 to reduce peak electric demand1 to reauthorize a energy efficiency public information program to include ,smart ,grid information1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,smart ,grid ,advancement ,act of #bjac4 #b4 ,definitions ,in this ,act3 7#a7 ,administrator ,the term ,administrator means the ,administrator of the ,environmental ,protection ,agency4 7#b7 ,applicable baseline ,the term applicable baseline means the average of the highest three annual peak demands a load-serving entity has experienced during the #e years immediately prior to the date of enactment of this ,act4 7#c7 ,commission ,the term ,commission means the ,federal ,energy ,regulatory ,commission4 7#d7 ,load-serving entity ,the term load-serving entity means an entity that provides electricity directly to retail consumers with the responsibility to assure power quality and reliability1 including such entities that are investor-owned1 publicly owned1 owned by rural electric cooperatives1 or other entities4 7#e7 ,peak demand ,the term peak demand means the highest point of electricity demand1 net of any distributed electricity generation or storage from sources on the load-serving entity's customers' premises1 during any hour on the system of a load-serving entity during a calendar year1 expressed in megawatts 7,,mw71 or more than one such high point as a function of seasonal demand changes4 7#f7 ,peak demand reduction ,the term peak demand reduction means the reduction in annual peak demand as compared to a previous baseline year or period1 expressed in megawatts 7,,mw71 whether accomplished by-- 7,a7 diminishing the end-use requirements for electricity2 7,b7 use of locally stored energy or generated electricity to meet those requirements from distributed resources on the load-serving entity's customers' premises and without use of high-voltage transmission2 or 7,c7 energy savings from efficient operation of the distribution grid resulting from the use of a ,smart ,grid4 7#g7 ,peak demand reduction plan ,the term peak demand reduction plan means a plan developed by or for a load-serving entity that it will implement to meet its peak demand reduction goals4 7#h7 ,peak period ,the term peak period means the time period on the system of a load-serving entity relative to peak demand that may warrant special measures or electricity resources to maintain system reliability while meeting peak demand4 7#i7 ,secretary ,the term ,secretary means the ,secretary of ,energy4 7#aj7 ,smart ,grid ,the term ,smart ,grid has the meaning provided by section #acja of the ,energy ,independence and ,security ,act of #bjjg 7#db ,u4,s4,c4 #agcha74 #c4 ,assessment of ,smart ,grid cost effectiveness in products 7a7 ,assessment ,not later than #a year after the date of enactment of this ,act1 the ,secretary and the ,administrator shall each assess the potential for cost-effective integration of ,smart ,grid technologies and capabilities in all products that are reviewed by the ,department of ,energy and the ,environmental ,protection ,agency1 respectively1 for potential designation as ,energy ,star products4 7b7 ,analysis 7#a7 ,not later than #b years after the date of enactment of this ,act1 the ,secretary and the ,administrator shall each prepare an analysis of the potential energy savings1 greenhouse gas emission reductions1 and electricity cost savings that could accrue for each of the products identified by the assessment in subsection 7a7 in the following optimal circumstances3 7,a7 ,the products possessed ,smart ,grid capability and interoperability that is tested and proven reliable4 7,b7 ,the products were utilized in an electricity utility service area which had ,smart ,grid capability and offered customers rate or program incentives to use the products4 7,c7 ,the utility's rates reflected national average costs1 including average peak and valley seasonal and daily electricity costs4 7,d7 ,consumers using such products took full advantage of such capability4 7,e7 ,the utility avoided incremental investments and rate increases related to such savings4 7#b7 ,the analysis under paragraph 7#a7 shall be considered the best case ,smart ,grid analysis4 ,on the basis of such an analysis for each product1 the ,secretary and the ,administrator shall determine whether the installation of ,smart ,grid capability for such a product would be cost effective4 ,for purposes of this paragraph1 the term cost effective means that the cumulative savings from using the product under the best case ,smart ,grid circumstances for a period of one-half of the product's expected useful life will be greater than the incremental cost of the ,smart ,grid features included in the product4 7#c7 ,to the extent that including ,smart ,grid capability in any products analyzed under paragraph 7#b7 is found to be cost effective in the best case1 the ,secretary and the ,administrator shall1 not later than #c years after the date of enactment of this ,act take each of the following actions3 7,a7 ,inform the manufacturer of such product of such finding of cost effectiveness4 7,b7 ,assess the potential contributions the development and use of products with ,smart ,grid technologies bring to reducing peak demand and promoting grid stability4 7,c7 ,assess the potential national energy savings and electricity cost savings that could be realized if ,smart ,grid potential were installed in the relevant products reviewed by the ,energy ,star program4 7,d7 ,assess and identify options for providing consumers information on products with ,smart ,grid capabilities1 including the necessary conditions for cost-effective savings4 7,e7 ,submit a report to ,congress summarizing the results of the assessment for each class of products1 and presenting the potential energy and greenhouse gas savings that could result if ,smart ,grid capability were installed and utilized on such products4 #d4 ,inclusions of ,smart ,grid capability on appliance ,,energy ,,guide labels ,section #cbd7;a77#b7 of the ,energy ,policy and ,conservation ,act 7#db ,u4,s4,c4 #fbid7;a77#b77 is amended by adding the following at the end3 7,j7 7i7 ,not later than #a year after the date of enactment of this subparagraph1 the ,federal ,trade ,commission shall initiate a rulemaking to consider making a special note in a prominent manner on any ,,energy ,,guide label for any product actually including ,smart ,grid capability that-- 7,i7 ,smart ,grid capability is a feature of that product2 7,,ii7 the use and value of that feature depended on the ,smart ,grid capability of the utility system in which the product was installed and the active utilization of that feature by the customer2 and 7,,iii7 on a utility system with ,smart ,grid capability1 the use of the product's ,smart ,grid capability could reduce the customer's cost of the product's annual operation by an estimated dollar amount range representing the result of incremental energy and electricity cost savings that would result from the customer taking full advantage of such ,smart ,grid capability4 7ii7 ,not later than #c years after the date of enactment of this subparagraph1 the ,commission shall complete the rulemaking initiated under clause 7i74 4 #e4 ,smart ,grid peak demand reduction goals 7a7 ,goals ,not later than #a year after the date of enactment of this section1 each load-serving entity1 or1 at the option of the ,state1 each ,state with respect to load-serving entities that the ,state regulates1 shall determine and publish peak demand reduction goals for any load-serving entities that have an applicable baseline in excess of #bej megawatts4 7b7 ,baselines 7#a7 ,the ,commission1 in consultation with the ,secretary and the ,administrator1 shall develop and publish1 after an opportunity for public comment1 but not later than #ahj days after the date of enactment of this section1 a methodology to provide for adjustments or normalization to a load-serving entity's applicable baseline over time to reflect changes in the number of customers served1 weather conditions1 general economic conditions1 and any other appropriate factors external to peak demand management1 as determined by the ,commission4 7#b7 ,the ,commission shall support load-serving entities 7including any load-serving entities with an applicable baseline of less than #bej megawatts that volunteer to participate7 in determining their applicable baselines and in developing their peak demand reduction goals4 7#c7 ,the ,secretary1 in consultation with the ,commission1 the ,administrator1 and the ,north ,american ,electric ,reliability ,corporation1 shall develop a system and rules for measurement and verification of demand reductions4 7c7 ,peak demand reduction goals 7#a7 ,peak demand reduction goals may be established for an individual load-serving entity1 or1 at the determination of a ,state1 tribal1 or regional entity1 by that ,state1 tribal1 or regional entity for a larger region that shares a common system peak demand and for which peak demand reduction measures would offer regional benefit4 7#b7 ,a ,state or regional entity establishing peak demand reduction goals shall cooperate1 as necessary and appropriate1 with the ,commission1 the ,secretary1 ,state regulatory commissions1 ,state energy offices1 the ,north ,american ,electric ,reliability ,corporation1 and other relevant authorities4 7#c7 ,in determining the applicable peak demand reduction goals-- 7,a7 ,states and other jurisdictional entities may utilize the results of the #bjji ,national ,assessment of ,demand ,response ,potential1 as authorized by section #ega of the ,national ,energy ,conservation ,policy ,act 7#db ,u4,s4,c4 #hbgi72 and 7,b7 the relative economics of peak demand reduction and generation required to meet peak demand shall be evaluated in a neutral and objective manner4 7#d7 ,the applicable peak demand reduction goals shall provide that-- 7,a7 load-serving entities will reduce or mitigate peak demand by a minimum percentage amount from the applicable baseline to a lower peak demand during calendar year #bjae2 7,b7 load-serving entities will reduce or mitigate peak demand by a minimum percentage greater amount from the applicable baseline to a lower peak demand during calendar year #bjah2 and 7,c7 the minimum percentage reductions established as peak demand reduction goals shall be the maximum reductions that are realistically achievable with an aggressive effort to deploy ,smart ,grid and peak demand reduction technologies and methods1 including those listed in subsection 7d74 7d7 ,plan ,each load-serving entity shall prepare a peak demand reduction plan that demonstrates its ability to meet each applicable goal by any or a combination of the following options3 7#a7 ,direct reduction in megawatts of peak demand through-- 7,a7 energy efficiency measures 7including efficient transmission wire technologies which significantly reduce line loss compared to traditional wire technology7 with reliable and continued application during peak demand periods2 or 7,b7 use of a ,smart ,grid4 7#b7 ,demonstration that an amount of megawatts equal to a stated portion of the applicable goal is contractually committed to be available for peak reduction through one or more of the following3 7,a7 ,megawatts enrolled in demand response programs4 7,b7 ,megawatts subject to the ability of a load-serving entity to call on demand response programs1 smart appliances1 smart electricity or energy storage devices1 distributed generation resources on the entity's customers' premises1 or other measures directly capable of actively1 controllably1 reliably1 and dynamically reducing peak demand 7dynamic peak management control74 7,c7 ,megawatts available from distributed dynamic electricity or energy storage under agreement with the owner of that storage4 7,d7 ,megawatts committed from dispatchable distributed generation demonstrated to be reliable under peak period conditions and in compliance with air quality regulations4 7,e7 ,megawatts available from smart appliances and equipment with ,smart ,grid capability available for direct control by the utility through agreement with the customer owning the appliances or equipment or with a third party pursuant to such agreements4 7,f7 ,megawatts from a demonstrated and assured minimum of distributed solar electric generation capacity in instances where peak period and peak demand conditions are directly related to solar radiation and accompanying heat4 7#c7 ,if any of the methods listed in subparagraph 7,c71 7,d71 or 7,e7 of paragraph 7#b7 are relied upon to meet its peak demand reduction goals1 the load-serving entity must demonstrate this capability by operating a test during the applicable calendar year4 7#d7 ,nothing in this section shall require the publication in peak demand reduction goals or in any peak demand reduction plan of any information that is confidential for competitive or other reasons or that identifies individual customers4 7e7 ,existing authority and requirements ,nothing in this section diminishes or supersedes any authority of a ,state or political subdivision of a ,state to adopt or enforce any law or regulation respecting peak demand management1 demand response1 distributed energy storage1 use of distributed generation1 or the regulation of load-serving entities4 ,the ,commission1 in consultation with ,states and ,indian tribes having such peak demand management1 demand response1 and distributed energy storage programs1 shall to the extent practicable1 facilitate coordination between the ,federal program and such ,state and tribal programs4 7f7 ,relief ,the ,commission may1 for good cause1 grant relief to load-serving entities from the requirements of this section4 7g7 ,other laws ,except as provided in subsections 7e7 and 7f71 no law or regulation shall relieve any person of any requirement otherwise applicable under this section4 7h7 ,compliance 7#a7 ,the ,commission shall1 not later than #a year after the date of enactment of this ,act1 establish a public ,web site where the ,commission shall provide information and data demonstrating compliance by ,states1 ,indian tribes1 regional entities1 and load-serving entities with this section1 including the success of load-serving entities in meeting applicable peak demand reduction goals4 7#b7 ,the ,commission shall1 by ,april #a of each year beginning in #bjae1 provide a report to ,congress on compliance with this section and success in meeting applicable peak demand reduction goals and1 as appropriate1 shall make recommendations as to how to increase peak demand reduction efforts4 7#c7 ,the ,commission shall note in each such report any ,state1 political subdivision of a ,state1 or load-serving entity that has failed to comply with this section1 or is not a part of any region or group of load-serving entities serving a region that has complied with this section4 7#d7 ,the ,commission shall have and exercise the authority to take reasonable steps to modify the process of establishing peak demand reduction goals and to accept adjustments to them as appropriate when sought by load-serving entities4 7i7 ,assistance and funding 7#a7 ,assistance ,the ,secretary may make grants to ,states and to other entities with responsibilities to be carried out under the ,act to offset any documented costs of carrying out such responsibilities to the extent such costs are deemed burdensome or extraordinary by the ,secretary4 7#b7 ,funding ,there are authorized to be appropriated such sums as may be necessary to the ,commission1 the ,secretary1 and the ,administrator to carry out the provisions of this ,act4 #f4 ,reauthorization of energy efficiency public information program to include ,smart ,grid information 7a7 ,in general ,section #acd of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #aehcb7 is amended as follows3 7#a7 ,by amending the section heading to read as follows3 ,energy efficiency and ,smart ,grid public information initiative4 7#b7 ,in paragraph 7#a7 of subsection 7a71 by striking reduce energy consumption during the #d-year period beginning on the date of enactment of this ,act and inserting increase energy efficiency and to adopt ,smart ,grid technology and practices4 7#c7 ,in paragraph 7#b7 of subsection 7a71 by striking benefits to consumers of reducing and inserting economic and environmental benefits to consumers and the ,united ,states of optimizing4 7#d7 ,in subsection 7a71 by inserting at the beginning of paragraph 7#c7 the effect of energy efficiency and ,smart ,grid capability in reducing energy and electricity prices throughout the economy1 together with4 7#e7 ,in subsection 7a77#d71 by redesignating subparagraph 7,d7 as subparagraph 7,e71 by striking and at the end of subparagraph 7,c71 and by inserting after subparagraph 7,c7 the following3 7,d7 purchasing and utilizing equipment that includes ,smart ,grid features and capability2 and 4 7#f7 ,in subsection 7c71 by striking ,not later than ,july #a1 #bjji10 and inserting1 8,for each year when appropriations pursuant to the authorization in this section exceed #aj1jjj1jjj14 7#g7 ,in subsection 7d7 by striking #bjaj and inserting #bjbb4 7#h7 ,in subsection 7e7 by striking #bjaj and inserting #bjbb4 7b7 ,table of contents ,the item relating to section #acd in the table of contents for the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #aehja and following7 is amended to read as follows3 ,sec4 #acd4 ,energy efficiency and ,smart ,grid public information initiative4 4 #g4 ,inclusion of ,smart ,grid features in appliance rebate program 7a7 ,amendments ,section #abd of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #aehba7 is amended as follows3 7#a7 ,by amending the section heading to read as follows3 ,energy efficient and smart appliance rebate program44 7#b7 ,by redesignating paragraphs 7#d7 and 7#e7 of subsection 7a7 as paragraphs 7#e7 and 7#f71 respectively1 and inserting after paragraph 7#c7 the following3 7#d7 ,smart appliance ,the term smart appliance means a product that the ,administrator of the ,environmental ,protection ,agency or the ,secretary of ,energy has determined qualifies for such a designation in the ,energy ,star program pursuant to section #c of the ,smart ,grid ,advancement ,act of #bjac1 or that the ,secretary or the ,administrator has separately determined includes the relevant ,smart ,grid capabilities listed in section #acja of the ,energy ,independence and ,security ,act of #bjjg 7#db ,u4,s4,c4 #agcha74 4 7#c7 ,in subsection 7b77#a7 by inserting and smart after efficient and by inserting after products the first place it appears 1 including products designated as being smart appliances4 7#d7 ,in subsection 7b77#c71 by inserting the administration of after carry out4 7#e7 ,in subsection 7d71 by inserting the administration of after carrying out and by inserting 1 and up to #ajj percent of the value of the rebates provided pursuant to this section before the period at the end4 7#f7 ,in subsection 7e77#c71 by inserting 1 with separate consideration as applicable if the product is also a smart appliance1 after ,energy ,star product the first place it appears and by inserting or smart appliance before the period at the end4 7#g7 ,in subsection 7f71 by striking #ej1jjj1jjj through the period at the end and inserting #ajj1jjj1jjj for each fiscal year from #bjad through #bjai44 7b7 ,table of contents ,the item relating to section #abd in the table of contents for the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #aehja and following7 is amended to read as follows3 ,sec4 #abd4 ,energy efficient and smart appliance rebate program4 4