,,ii #aadth ,,congress #ast ,session ,s4 #abdc ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,may #g1 #bjae ,ms4 ,cantwell 7for herself1 ,ms4 ,hirono1 and ,mr4 ,king7 introduced the following bill2 which was read twice and referred to the ,committee on ,energy and ,natural ,resources ,a ,,bill ,to facilitate modernizing the electric grid1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,grid ,modernization ,act of #bjae4 ,i ,general provisions #aja4 ,statement of policy on grid modernization ,it is the policy of the ,united ,states to promote and advance-- 7#a7 the modernization of the energy delivery infrastructure of the ,united ,states1 including bolstering the reliability1 affordability1 diversity1 efficiency1 security1 and resilience of domestic energy supplies1 through advanced grid technologies2 7#b7 the modernization of the electric grid-- 7,a7 to continue facilitating the development of a ,smart ,grid as characterized in section #acja of the ,energy ,independence and ,security ,act of #bjjg 7#db ,u4,s4,c4 #agcha72 7,b7 to enable a robust multidirectional power flow that leverages distributed energy resources2 and 7,c7 to facilitate the alignment of business and regulatory models to achieve a grid that optimizes-- 7i7 the entire electric delivery system2 and 7ii7 a sustainable1 reliable1 and resilient energy future2 7#c7 relevant research and development in advanced grid technologies1 including-- 7,a7 energy storage2 7,b7 predictive tools and requisite real-time data to enable the dynamic optimization of grid operations2 7,c7 power electronics that ease the challenge of intermittent and distributed generation2 7,d7 real-time data and situational awareness tools and systems2 and 7,e7 tools to increase data security1 physical security1 and cybersecurity awareness and protection2 7#d7 the leadership of the ,united ,states in basic and applied sciences to develop a systems approach to innovation and invention of cybersecure advanced grid technologies1 architectures1 and control paradigms capable of managing diverse supplies and loads2 7#e7 the safeguarding of the critical energy delivery infrastructure of the ,united ,states and the enhanced resilience of the infrastructure to all hazards1 including-- 7,a7 extreme weather events2 7,b7 cyber and physical threats2 and 7,c7 other factors that affect energy delivery2 7#f7 the coordination of goals1 investments to optimize the grid1 and other measures for energy efficiency1 advanced grid technologies1 interoperability1 and demand response resources2 7#g7 partnerships with ,states and the private sector-- 7,a7 to facilitate advanced grid capabilities and strategies2 and 7,b7 to provide technical assistance1 tools1 or other related information necessary to enhance grid integration1 particularly in connection with the development at the ,state and local levels of strategic energy1 energy surety and assurance1 and emergency preparedness1 response1 and restoration planning2 7#h7 the deployment of information and communications technologies at all levels of the electric system2 7#i7 opportunities to provide consumers with timely information and advanced control options2 7#aj7 sophisticated or advanced control options to integrate distributed energy resources and associated ancillary services2 7#aa7 open-source communications1 database architectures1 and common information model standards1 guidelines1 and protocols that enable interoperability to maximize efficiency gains and associated benefits among-- 7,a7 the grid2 7,b7 energy and building management systems2 and 7,c7 residential1 commercial1 and industrial equipment2 7#ab7 private sector investment in the energy delivery infrastructure of the ,united ,states through targeted demonstration and validation of advanced grid technologies2 and 7#ac7 establishment of common valuation methods and tools for cost-benefit analysis of grid integration paradigms4 #ajb4 ,grid storage program 7a7 ,in general ,the ,secretary of ,energy 7acting through the ,assistant ,secretary of the ,office of ,electricity ,delivery and ,energy ,reliability7 7referred to in this ,act as the ,secretary7 shall conduct a program of research and development of electric grid energy storage that addresses the principal challenges identified in the #bjac ,department of ,energy ,strategic ,plan for ,grid ,energy ,storage4 7b7 ,areas of focus ,the program under this section shall focus on-- 7#a7 materials and electrochemical systems research2 7#b7 power conversion technologies research2 7#c7 other fundamental and applied research critical to widespread deployment of storage2 7#d7 device development that builds on results from research described in paragraphs 7#a7 through 7#c71 including combinations of power electronics1 advanced optimizing controls1 and energy storage as a general purpose element of the electric grid2 7#e7 grid-scale testing and analysis of storage devices1 including test-beds and field trials2 7#f7 cost-benefit analyses that inform capital expenditure planning for regulators and owners and operators of components of the electric grid2 7#g7 storage device safety and reliability1 including potential failure modes1 mitigation measures1 and operational guidelines2 and 7#h7 standards for storage device performance1 control interface1 grid interconnection1 and interoperability4 7c7 ,assistance to ,states ,the ,secretary may provide technical and financial assistance to ,states1 ,indian tribes1 or units of local government to participate in or use research1 development1 or deployment of technology developed under this section4 #ajc4 ,electric system grid architecture1 scenario development1 and modeling 7a7 ,grid architecture and scenario development 7#a7 ,in general ,subject to paragraph 7#b71 the ,secretary shall establish and facilitate a collaborative process to develop model grid architecture and a set of future scenarios for the electric system to examine the impacts of different combinations of resources 7including different quantities of distributed energy resources and large-scale1 central generation7 on the electric grid4 7#b7 ,market structure ,the grid architecture and scenarios developed under paragraph 7#a7 shall account for differences in market structure1 including an examination of the potential for stranded costs in each type of market structure4 7#c7 ,findings ,based on the findings of grid architecture developed under paragraph 7#a71 the ,secretary shall make recommendations regarding additional standards that may be required1 if any1 to ensure the interoperability of grid systems and associated communications networks4 7b7 ,modeling ,subject to subsection 7c71 the ,secretary shall-- 7#a7 conduct modeling based on the scenarios developed under subsection 7a72 and 7#b7 analyze and evaluate the technical and financial impacts of the models to assist ,states1 utilities1 and other stakeholders in-- 7,a7 enhancing strategic planning efforts2 7,b7 avoiding stranded investments2 and 7,c7 maximizing the cost-effectiveness of future grid-related investments4 7c7 ,input ,the ,secretary shall develop the scenarios and conduct the modeling and analysis under subsections 7a7 and 7b7 with participation or input1 as appropriate1 from-- 7#a7 the ,national ,laboratories2 7#b7 ,states2 7#c7 ,state regulatory authorities2 7#d7 transmission organizations2 7#e7 representatives of the electric industry2 7#f7 academic institutions2 7#g7 independent research institutes2 and 7#h7 other entities4 ,,ii ,demonstration programs #bja4 ,technology demonstration on the distribution system 7a7 ,in general ,the ,secretary shall conduct #f demonstration projects to expand the application of technologies to improve observability1 advanced controls1 and prediction of system performance on the distribution system4 7b7 ,participation ,the demonstration projects conducted under subsection 7a7 shall include the participation of a diverse selection of relevant owners and operators of distribution systems1 including-- 7#a7 a utility2 7#b7 a political subdivision of a ,state2 and 7#c7 an electric cooperative4 7c7 ,cybersecurity plan ,each demonstration project conducted under subsection 7a7 shall include the development of a cybersecurity plan4 #bjb4 ,resilient communities program 7a7 ,in general ,the ,secretary shall establish a program for the development and promotion of grid-scale energy storage with microgrids to enhance the resilience of critical infrastructure4 7b7 ,collaboration ,the program established under subsection 7a7 shall provide for the collaboration of relevant stakeholders in the program1 including-- 7#a7 ,states2 7#b7 ,indian tribes2 7#c7 regional entities and regulators2 7#d7 units of local government2 7#e7 institutions of higher education2 and 7#f7 private sector entities4 7c7 ,phases ,the program established under subsection 7a7 shall be divided into the following phases3 7#a7 ,phase ,i1 which shall consist of the development of a feasibility assessment4 7#b7 ,phase ,,ii1 which shall consist of cost-shared demonstration projects that include the development of physical and cybersecurity plans to take appropriate measures to protect and secure the electric grid4 7#c7 ,phase ,,iii1 which shall establish a benefits analysis plan to help inform regulators1 policymakers1 and industry stakeholders about the value of the resilience investments of ,phase ,,ii4 ,,iii ,standards and assistance for ,states #cja4 ,state consideration of resilience 7a7 ,adoption of standards ,section #aaa7;d7 of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #bfba7;d77 is amended by adding at the end the following3 7#bj7 ,resilience 7,a7 ,definition of electric grid resilience ,the term electric grid resilience means the ability of the electric grid to adapt to changing conditions and withstand and rapidly recover from disruptions4 7,b7 ,required consideration ,each electric utility shall incorporate into the integrated resource planning of the electric utility consideration of electric grid resilience4 7,c7 ,factors ,consideration under subparagraph 7,b7 shall include an evaluation of potential benefits of enhancing electric grid resilience1 including-- 7i7 system stability under severe and nontraditional hazards2 7ii7 adaptation to region-specific natural threats and vulnerabilities2 7iii7 adaptation to climate change-related extreme weather disruptions2 7iv7 support provided to interdependent critical infrastructures reliant on energy services to operate2 7v7 reduced costs under normal operating conditions2 7vi7 enhanced distributed generation and microgrid functionality to operate as an integrated energy system in intentional islanding mode2 7vii7 localized energy generation that avoids incurrence of transmission and distribution losses2 7viii7 system operational flexibility2 and 7ix7 ancillary environmental benefits1 including greenhouse gas reductions4 4 7b7 ,compliance 7#a7 ,time limitations ,section #aab7;b7 of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #bfbb7;b77 is amended by adding at the end the following3 7#g7 7,a7 ,not later than #a year after the date of enactment of this paragraph1 each ,state regulatory authority 7with respect to each electric utility for which it has ratemaking authority71 and each nonregulated electric utility1 shall-- 7i7 commence the consideration referred to in section #aaa2 or 7ii7 set a hearing date for such consideration1 with respect to the standard established by paragraph 7#bj7 of section #aaa7;d74 7,b7 ,not later than #b years after the date of enactment of this paragraph1 each ,state regulatory authority 7with respect to each electric utility for which it has ratemaking authority71 and each nonregulated electric utility1 shall-- 7i7 complete the consideration required under subparagraph 7,a72 and 7ii7 make the determination referred to in section #aaa with respect to the standard established by paragraph 7#bj7 of section #aaa7;d74 4 7#b7 ,failure to comply ,section #aab7;c7 of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #bfbb7;c77 is amended by adding at the end the following3 ,in the case of the standard established by paragraph 7#bj7 of section #aaa7;d71 the reference contained in this subsection to the date of enactment of this ,act shall be deemed to be a reference to the date of enactment of that paragraph44 #cjb4 ,voluntary model pathways 7a7 ,establishment of voluntary model pathways 7#a7 ,finding ,congress finds that a set of voluntary model pathways for modernizing the electric grid would provide policymakers and regulators with valuable and flexible options to consider in adapting policy or regulatory mechanisms to match the needs of an evolving electric grid4 7#b7 ,establishment ,not later than #ij days after the date of enactment of this ,act1 the ,secretary shall initiate the development of voluntary model pathways for modernizing the electric grid through a collaborative1 public-private effort that-- 7,a7 produces illustrative policy pathways that can be adapted for ,state and regional applications by regulators and policymakers2 7,b7 facilitates the modernization of the electric grid to achieve the objectives described in paragraph 7#c72 7,c7 ensures a reliable1 resilient1 affordable1 safe1 and secure electric system2 and 7,d7 acknowledges and provides for different priorities1 electric systems1 and rate structures across ,states and regions4 7#c7 ,objectives ,the pathways established under paragraph 7#b7 shall facilitate achievement of the following objectives3 7,a7 ,near real-time situational awareness of the electric system4 7,b7 ,data visualization4 7,c7 ,advanced monitoring and control of the advanced electric grid4 7,d7 ,enhanced certainty for private investment in the electric system4 7,e7 ,increased innovation4 7,f7 ,greater consumer empowerment4 7,g7 ,enhanced grid resilience1 reliability1 and robustness4 7,h7 ,improved-- 7i7 integration of distributed energy resources2 7ii7 interoperability of the electric system2 and 7iii7 predictive modeling and capacity forecasting4 7#d7 ,steering committee ,not later than #ij days after the date of enactment of this ,act1 the ,secretary shall establish a steering committee to facilitate the development of the pathways under paragraph 7#b71 to be composed of members appointed by the ,secretary1 consisting of persons with appropriate expertise representing a diverse range of interests in the public1 private1 and academic sectors1 including representatives of-- 7,a7 the ,smart ,grid ,task ,force2 and 7,b7 the ,smart ,grid ,advisory ,committee4 7b7 ,technical and financial assistance 7#a7 ,in general ,the ,secretary may provide technical and financial assistance to ,states1 ,indian tribes1 or units of local government to adopt #a or more elements of the pathways developed under subsection 7a77#b74 7#b7 ,distribution of financial assistance ,any financial assistance provided to a ,state under paragraph 7#a7 may be distributed by the ,state to units of local government in the ,state for purposes of implementing the pathways developed under subsection 7a77#b74 #cjc4 ,performance metrics for electricity infrastructure providers 7a7 ,in general ,not later than #b years after the date of enactment of this ,act1 the ,secretary shall-- 7#a7 develop baseline1 voluntary model performance metrics to facilitate and promote the adoption of best practices and processes for electricity infrastructure providers to design1 build1 and implement a modernized electric grid and maximize opportunities to enhance progress in grid technologies and capabilities1 consumer engagement1 and policy2 7#b7 quantify the potential performance improvements that could be achieved through deployment of new grid technologies and systems2 and 7#c7 distribute through appropriate channels a report describing the findings under paragraph 7#a74 7b7 ,considerations ,in developing the performance metrics under subsection 7a77#a71 the ,secretary shall consider-- 7#a7 standard methodologies for calculating improvements or deteriorations in the performance metrics1 such as reliability1 grid efficiency1 power quality1 consumer satisfaction1 sustainability1 and financial incentives2 7#b7 standard methodologies for calculating value to ratepayers1 including broad economic and related impacts from improvements to the performance metrics2 7#c7 appropriate ownership and operating roles for electric utilities that would enable improved performance through the adoption of emerging1 commercially available or advanced grid technologies or solutions1 including-- 7,a7 multicustomer microgrids2 7,b7 distributed energy resources2 7,c7 energy storage2 7,d7 electric vehicles2 7,e7 electric vehicle charging infrastructure2 7,f7 integrated information and communications systems2 and 7,g7 advanced demand management systems2 and 7#d7 with respect to ,states1 the role of the grid operator in enabling a robust future electric system to ensure that-- 7,a7 electric utilities remain financially viable2 7,b7 electric utilities make the needed investments that ensure a reliable1 secure1 and resilient grid2 and 7,c7 costs incurred to transform to an integrated grid are allocated and recovered responsibly1 efficiently1 and equitably4 #cjd4 ,distribution planning 7a7 ,in general ,upon the request of a ,state or regional organization1 the ,secretary shall partner with ,states and regional organizations to facilitate the development of ,state and regional distribution plans by-- 7#a7 conducting a resource assessment and analysis of future demand and distribution requirements2 and 7#b7 developing open source tools for ,state and regional planning and operations4 7b7 ,existing tools ,the tools developed under subsection 7a77#b7 shall build on existing tools used or developed by the ,department of ,energy4 7c7 ,risk and security analysis ,the assessment under subsection 7a77#a7 shall include-- 7#a7 the evaluation of the physical and cybersecurity needs of an advanced distribution management system and the integration of distributed energy resources2 and 7#b7 advanced use of grid architecture to analyze risks in a holistic all-hazards approach that includes communications infrastructure1 control systems architecture1 and power systems architecture4 7d7 ,technical assistance ,for the purpose of developing electricity distribution plans1 the ,secretary shall provide technical assistance to-- 7#a7 ,states2 7#b7 regional reliability entities2 and 7#c7 other distribution asset owners and operators4 ,,iv ,authorization of appropriations #dja4 ,authorization of appropriations ,there is authorized to be appropriated to the ,secretary carry out this ,act 7including the amendments made by this ,act7 and other related activities #bjj1jjj1jjj for each of fiscal years #bjag through #bjba4