,,ii #aaeth ,,congress #ast ,session ,s4 #bbcb ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,december #ad1 #bjag,mr4 ,king introduced the following bill2 which was read twice and referred to the ,committee on ,energy and ,natural ,resources ,a ,,bill ,to amend the ,public ,utility ,regulatory ,policies ,act of #aigh to provide for the integration of distributed energy resources1 to modernize electricity grid infrastructure1 to provide for the consideration of non-wires alternatives1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,next ,generation ,grid ,resources and ,infrastructure ,development ,act or the ,next ,generation ,,grid ,act4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4 ,sec4 #b4 ,general right of interconnection4 ,sec4 #c4 ,electricity distribution resource planning4 ,sec4 #d4 ,non-wires alternatives4 ,sec4 #e4 ,distribution system operator pilot program4 ,sec4 #f4 ,consideration of performance-based incentive rates4 #b4 ,general right of interconnection ,the ,public ,utility ,regulatory ,policies ,act of #aigh is amended by inserting after section #d 7#af ,u4,s4,c4 #bfjc7 the following3 #e4 ,general right of interconnection 7a7 ,definition of distributed energy resource ,in this section1 the term distributed energy resource means a resource1 technology1 or combination of resources and technologies interconnected to the electricity distribution system that generates1 manages1 or reduces energy use4 7b7 ,right of interconnection ,distributed energy resources shall have a general right of interconnection under this ,act4 7c7 ,analysis of interconnection requests ,the methods used to calculate the impacts of proposed interconnections under this ,act shall be transparent1 repeatable1 consistent1 clearly established1 and agreed to by the appropriate ,state regulatory authority4 7d7 ,rates and fees ,as the ,state or appropriate ,state regulatory authority determines to be appropriate1 each electric utility shall adopt standards1 conditions1 and requirements for rates and fees for the interconnection of distributed energy resources under this ,act1 that-- 7#a7 reflect the #b-way costs and benefits for the distributed energy resource and the electricity grid2 7#b7 provide fair credit for energy exported to the electricity grid2 7#c7 are transparently derived and consistently applied2 and 7#d7 are not punitive4 7e7 ,timeframes 7#a7 ,in general ,timeframes for the interconnection of distributed energy resources under this ,act shall be well-defined1 expeditious1 and not unduly protracted1 as determined by the appropriate ,state regulatory authority4 7#b7 ,delays or denial ,an interconnection of distributed energy resources under this ,act shall not be delayed or denied unless the electric utility demonstrates that-- 7,a7 the interconnection is unsafe or impracticable2 and 7,b7 any safety or impracticability issue demonstrated under subparagraph 7,a7 cannot be mitigated4 4 #c4 ,electricity distribution resource planning 7a7 ,development of electricity distribution resource plans ,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 ,electricity distribution resource planning 7,a7 ,definitions ,in this paragraph3 7i7 ,distributed energy resource ,the term distributed energy resource has the meaning given the term in section #e7;a74 7ii7 ,microgrid ,the term microgrid means a group of interconnected loads and distributed energy resources within clearly defined electrical boundaries that-- 7,i7 acts as a single controllable entity with respect to the electricity grid2 and 7,,ii7 can connect and disconnect from the electricity grid to operate in grid-connected mode and island mode4 7,b7 ,requirement ,each electric utility shall develop an electricity distribution resource plan on a regular basis1 as determined by the appropriate ,state regulatory authority4 7,c7 ,components of electricity distribution resource plan ,an electricity distribution resource plan developed under subparagraph 7,b7 shall identify-- 7i7 the future electricity demand and distribution system requirements of the electric utility2 7ii7 projections for the deployment of distributed energy resources within the utility service territory during the period covered by the plan by size1 type1 and location2 7iii7 any locational benefits and costs of distributed energy resources to the distribution system of the electric utility and ratepayers1 including-- 7,i7 benefits to grid resiliency and reliability2 7,,ii7 avoided or incurred investments in distribution or transmission infrastructure2 7,,iii7 avoided or incurred investments in generation capacity2 7,,iv7 any environmental benefits2 and 7,v7 any other costs or benefits to the electricity grid or to ratepayers2 7iv7 any temporal benefits or costs of distributed energy resources to the distribution system of the electric utility1 including-- 7,i7 any changes in peak demand2 and 7,,ii7 any changes in the distribution load curve2 7v7 any investments needed to improve the integration1 management1 or deployment of distributed energy resources in the distribution system of the electric utility2 7vi7 any barriers to the integration of distributed energy resources in the distribution system of the electric utility1 including limitations to system capacity that would require upgrades to integrate distributed energy resources2 7vii7 any locations on the distribution system of the electric utility suitable for microgrid development based on geographic1 resiliency1 reliability1 or cost factors2 and 7viii7 any physical and cybersecurity needs and vulnerabilities of the distribution system of the electric utility4 7,d7 ,designation of participants ,for each electric utility for which the ,state or ,state regulatory authority has ratemaking authority1 the ,state or ,state regulatory authority1 as applicable1 may designate participants to assist in developing an electricity distribution resource plan under subparagraph 7,b71 including1 as the ,state or ,state regulatory authority determines to be appropriate-- 7i7 any nonprofit or for-profit entity with experience in planning1 designing1 or operating distributed energy resources or systems2 7ii7 a regional regulatory authority or other regional entity2 7iii7 an institution of higher education2 7iv7 a ,national ,laboratory 7as defined in section #b of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #aehja772 7v7 a ratepayer or advocate of ratepayers2 and 7vi7 any other appropriate entity4 7,e7 ,access to data ,in developing an electricity distribution resource plan under subparagraph 7,b71 the electric utility shall provide to any participants designated under subparagraph 7,d7 access to relevant data regarding the operation and performance of the electricity grid1 subject to any qualifications and confidentiality requirements that the ,state regulatory authority determines to be appropriate4 4 7b7 ,technical and financial assistance for the development of electricity distribution resource plans 7#a7 ,definitions ,in this subsection3 7,a7 ,eligible entity ,the term eligible entity means a ,state1 ,state regulatory authority1 electric utility1 or any other entity designated by a ,state or ,state regulatory authority as a participant in the development of a plan under paragraph 7#bj77;,d7 of section #aaa7;d7 of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #bfba7;d77 7as added by subsection 7a774 7,b7 ,plan ,the term plan means an electricity distribution resource plan developed under paragraph 7#bj77;,b7 of section #aaa7;d7 of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #bfba7;d77 7as added by subsection 7a774 7,c7 ,secretary ,the term ,secretary means the ,secretary of ,energy4 7,d7 ,state regulatory authority ,the term ,state regulatory authority has the meaning given the term in section #c of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #bfjb74 7#b7 ,technical and financial assistance ,at the request of a ,state or ,state regulatory authority1 the ,secretary shall provide-- 7,a7 technical assistance to eligible entities to assist in the development of a plan2 and 7,b7 grants to eligible entities to contract for qualified technical assistance to assist in the development of a plan4 7#c7 ,authorization of appropriations ,there is authorized to be appropriated to the ,secretary to carry out this subsection #bjj1jjj1jjj1 to remain available until expended4 #d4 ,non-wires alternatives 7a7 ,definition of non-,wires alternative ,section #c of the ,federal ,power ,act 7#af ,u4,s4,c4 #gif7 is amended by adding at the end the following3 7#cj7 ,non-wires alternative ,the term non-wires alternative means an electricity grid investment or project that uses one or more nontraditional solutions1 including distributed generation1 energy storage1 energy efficiency1 demand response1 microgrids1 or grid software and controls1 to defer or replace the need for specific equipment upgrades or new infrastructure1 such as transmission or distribution lines or transformers1 at a substation or circuit level4 4 7b7 ,consideration of non-,wires alternatives in regional transmission plans ,section #bjb of the ,federal ,power ,act 7#af ,u4,s4,c4 #hbd;a7 is amended by adding at the end the following3 7h7 ,issuance of rule relating to consideration of non-,wires alternatives in regional transmission plans ,as soon as practicable after the date of enactment of this subsection1 the ,commission shall issue a final rule that-- 7#a7 requires public utility transmission providers-- 7,a7 to solicit non-wires alternatives in the development of regional transmission plans2 and 7,b7 to identify opportunities for non-wires alternatives2 7#b7 requires ,transmission ,organizations to develop procedures to control or manage non-wires alternatives providing transmission services2 and 7#c7 authorizes ,transmission ,organizations to allocate and recover costs of non-wires alternatives providing transmission services that are demonstrated to be a cost-effective alternative to an upgrade to1 or the construction of new1 transmission infrastructure in the same manner as the upgrade to1 or construction of new1 transmission infrastructure would have been allocated and recovered4 4 7c7 ,consideration of non-,wires alternatives by ,state regulatory authorities ,section #aaa7;d7 of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #bfba7;d77 7as amended by section #c7;a77 is amended by adding at the end the following3 7#ba7 ,non-wires alternatives 7,a7 ,in general ,to the extent a ,state regulatory authority has the authority to allow electric utilities to recover costs associated with electricity transmission and distribution projects1 each ,state regulatory authority shall consider non-wires alternatives 7as defined in section #c of the ,federal ,power ,act 7#af ,u4,s4,c4 #gif77 in instances in which an entity proposes transmission or distribution projects seeking cost-of-service rate recovery4 7,b7 ,cost recovery ,to reduce the costs to ratepayers associated with potential upgrades to transmission or distribution infrastructure1 the cost of a non-wires alternative considered under subparagraph 7,a7 shall be recovered from ratepayers in the same manner as an upgrade to transmission or distribution infrastructure would have been4 4 #e4 ,distribution system operator pilot program 7a7 ,definitions ,in this section3 7#a7 ,distribution system operator ,the term distribution system operator means an entity1 independent of the normal operations of an electric utility1 that-- 7,a7 plans for1 integrates1 and manages distributed energy resources within the service territory of an electric utility2 7,b7 implements reliability standards for distributed energy resources within the service territory of an electric utility2 and 7,c7 aggregates the economic attributes of distributed energy resources within the service territory of an electric utility for sale into a wholesale energy or other market4 7#b7 ,electric utility ,the term electric utility has the meaning given the term in section #c of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #bfjb74 7#c7 ,national ,laboratory ,the term ,national ,laboratory has the meaning given the term in section #b of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #aehja74 7#d7 ,pilot program ,the term pilot program means the pilot program established under subsection 7b74 7#e7 ,regional ,transmission ,organization ,the term ,regional ,transmission ,organization has the meaning given the term in section #c of the ,federal ,power ,act 7#af ,u4,s4,c4 #gif74 7#f7 ,secretary ,the term ,secretary means the ,secretary of ,energy4 7b7 ,pilot program ,not later than #a year after the date of enactment of this ,act1 the ,secretary shall establish a pilot program within the ,national ,laboratories-- 7#a7 to research1 develop1 and test technology platforms and operational procedures for a distribution system operator2 7#b7 to evaluate best practices in designating the roles and responsibilities of a distribution system operator relative to other entities1 including the relevant electric utility and ,regional ,transmission ,organization2 and 7#c7 to simulate the functions of a distribution system operator in a range of grid conditions4 7c7 ,working group 7#a7 ,in general ,the ,secretary shall establish a working group to participate in the design and operation of the pilot program4 7#b7 ,membership ,the working group established under paragraph 7#a7 shall be composed of members1 to be appointed by the ,secretary1 at least one of which shall represent each of the following3 7,a7 ,the ,department of ,energy4 7,b7 ,the ,national ,laboratories4 7,c7 ,an electric utility4 7,d7 ,the ,north ,american ,electric ,reliability ,corporation4 7,e7 ,a ,regional ,transmission ,organization4 7,f7 ,a ,state or regional energy agency4 7,g7 ,a national research body or institution of higher education4 7d7 ,report to ,congress ,not later than #b years after the date on which funds are first made available to the pilot program1 the ,secretary shall submit to ,congress a report that-- 7#a7 describes the results of the pilot program2 and 7#b7 provides an analysis of the feasibility of implementing a distribution system operator4 7e7 ,authorization of appropriations ,there is authorized to be appropriated to carry out the pilot program #bj1jjj1jjj1 to remain available until expended4 #f4 ,consideration of performance-based incentive rates 7a7 ,in general ,section #aaa7;d7 of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #bfba7;d77 7as amended by section #d7;c77 is amended by adding at the end the following3 7#bb7 ,performance-based incentive mechanisms 7,a7 ,in general ,each ,state regulatory authority1 with respect to each electric utility for which the ,state regulatory authority has ratemaking authority1 shall consider the use of performance-based incentive mechanisms to achieve public interest goals established by the ,state or ,state regulatory authority in accordance with subparagraphs 7,b7 and 7,c74 7,b7 ,considerations for establishment of public interest goals ,in establishing public interest goals under subparagraph 7,a71 the ,state or ,state regulatory authority1 as applicable1 shall consider-- 7i7 overall system efficiency1 including reductions in peak demand2 7ii7 the integration and adoption of distributed energy resources2 7iii7 process improvements1 such as predictable and timely interconnection processes2 7iv7 the resiliency and reliability of the electricity grid2 7v7 customer engagement and satisfaction2 7vi7 environmental benefits1 including reductions in particulate and greenhouse gas emissions2 and 7vii7 any other factor determined to be appropriate by the ,state or ,state regulatory authority4 7,c7 ,metrics ,in establishing public interest goals under subparagraph 7,a71 the ,state or ,state regulatory authority1 as applicable1 shall specify quantifiable metrics with respect to the public interest goals that can be measured and verified4 4 7b7 ,compliance 7#a7 ,obligations to consider and determine2 prior ,state actions ,section #aab of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #bfbb7 is amended-- 7,a7 in subsection 7b71 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 authority7 shall1 with respect to the standards established by paragraphs 7#bj7 through 7#bb7 of section #aaa7;d7-- 7i7 commence the consideration referred to in section #aaa2 or 7ii7 set a hearing date for the consideration4 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 authority7 shall-- 7i7 complete the consideration required under subparagraph 7,a72 and 7ii7 make the determination referred to in section #aaa with respect to the standards established by paragraphs 7#bj7 through 7#bb7 of section #aaa7;d74 2 7,b7 in subsection 7c71 by adding at the end the following3 ,in the case of the standards established by paragraphs 7#bj7 through 7#bb7 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 those paragraphs42 7,c7 in subsection 7d71 in the matter preceding paragraph 7#a71 by striking 7#ai7 and inserting 7#bb72 and 7,d7 by adding at the end the following3 7g7 ,prior state actions ,subsections 7b7 and 7c7 shall not apply to the standard established by paragraphs 7#bj7 through 7#bb7 of section #aaa7;d7 in the case of any electric utility in a ,state if1 before the date of enactment of this subsection-- 7#a7 the ,state has implemented for the electric utility the standard 7or a comparable standard72 7#b7 the ,state regulatory authority for the ,state or the relevant nonregulated electric utility has conducted a proceeding to consider implementation of the standard 7or a comparable standard7 for the electric utility2 or 7#c7 the ,state legislature has voted on the implementation of the standard 7or a comparable standard7 for the electric utility4 4 7#b7 ,prior and pending proceedings ,section #abd of the ,public ,utility ,regulatory ,policy ,act of #aigh 7#af ,u4,s4,c4 #bfcd7 is amended by adding at the end the following3 ,in the case of the standards established by paragraphs 7#bj7 through 7#bb7 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 those paragraphs44