,,ii ,calendar ,no4 #bgj #aafth ,,congress #ast ,session ,s4 #bccb ,report ,no4 #aaf-adi ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #cj1 #bjai,ms4 ,cantwell 7for herself1 ,mr4 ,heinrich1 and ,ms4 ,hirono7 introduced the following bill2 which was read twice and referred to the ,committee on ,energy and ,natural ,resources ,october #bd1 #bjai,reported by ,ms4 ,murkowski1 without amendment ,a ,,bill ,to provide for the modernization of the electric grid1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,grid ,modernization ,act of #bjai4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4,sec4 #b4 ,definitions4,sec4 #c4 ,grid storage program4,sec4 #d4 ,technology demonstration on the distribution system4,sec4 #e4 ,micro-grid and hybrid micro-grid systems program4,sec4 #f4 ,electric grid architecture1 scenario development1 and modeling4,sec4 #g4 ,voluntary model pathways4,sec4 #h4 ,performance metrics for electricity infrastructure providers4,sec4 #i4 ,voluntary ,state1 regional1 and local electricity distribution planning4,sec4 #aj4 ,authorization of appropriations4 #b4 ,definitions ,in this ,act3 7#a7 ,department ,the term ,department means the ,department of ,energy4 7#b7 ,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#c7 ,secretary ,the term ,secretary means the ,secretary of ,energy4 #c4 ,grid storage program 7a7 ,in general ,the ,secretary shall conduct a program of research1 development1 and demonstration 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 materials1 electric thermal1 electromechanical1 and electrochemical systems research2 7#b7 power conversion technologies research2 7#c7 developing-- 7,a7 empirical and science-based industry standards to compare the storage capacity1 cycle length and capabilities1 and reliability of different types of electricity storage2 and 7,b7 validation and testing techniques2 7#d7 other fundamental and applied research critical to widespread deployment of electricity storage2 7#e7 device development that builds on results from research described in paragraphs 7#a71 7#b71 and 7#d71 including combinations of power electronics1 advanced optimizing controls1 and energy storage as a general purpose element of the electric grid2 7#f7 grid-scale testing and analysis of storage devices1 including test-beds and field trials2 7#g7 cost-benefit analyses that inform capital expenditure planning for regulators and owners and operators of components of the electric grid2 7#h7 electricity storage device safety and reliability1 including potential failure modes1 mitigation measures1 and operational guidelines2 7#i7 standards for storage device performance1 control interface1 grid interconnection1 and interoperability2 and 7#aj7 maintaining a public database of energy storage projects1 policies1 codes1 standards1 and regulations4 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 demonstration of technology developed under this section4 7d7 ,authorization of appropriations ,there is authorized to be appropriated to the ,secretary to carry out this section #ej1jjj1jjj for each of fiscal years #bjbj through #bjbh4 7e7 ,no effect on other provisions of law ,nothing in this ,act or an amendment made by this ,act authorizes regulatory actions that would duplicate or conflict with regulatory requirements1 mandatory standards1 or related processes under section #bae of the ,federal ,power ,act 7#af ,u4,s4,c4 #hbdo74 7f7 ,use of funds ,to the maximum extent practicable1 in carrying out this section1 the ,secretary shall ensure that the use of funds to carry out this section is coordinated among different offices within the ,grid ,modernization ,initiative of the ,department and other programs conducting energy storage research4 #d4 ,technology demonstration on the distribution system 7a7 ,in general ,the ,secretary shall establish a grant program to carry out eligible projects related to the modernization of the electric grid1 including the application of technologies to improve observability1 advanced controls1 and prediction of system performance on the distribution system4 7b7 ,eligible projects ,to be eligible for a grant under subsection 7a71 a project shall-- 7#a7 be designed to improve the performance and efficiency of the future electric grid1 while ensuring the continued provision of safe1 secure1 reliable1 and affordable power2 7#b7 demonstrate-- 7,a7 secure integration and management of two or more energy resources1 including distributed energy generation1 combined heat and power1 micro-grids1 energy storage1 electric vehicles1 energy efficiency1 demand response1 and intelligent loads2 and 7,b7 secure integration and interoperability of communications and information technologies2 and 7#c7 be subject to the requirements of section #ede7;a7 of the ,energy ,security and ,independence ,act of #bjjg 7#db ,u4,s4,c4 #agaee7;a774 #e4 ,micro-grid and hybrid micro-grid systems program 7a7 ,definitions ,in this section3 7#a7 ,hybrid micro-grid system ,the term hybrid micro-grid system means a stand-alone electrical system that-- 7,a7 is comprised of conventional generation and at least #a alternative energy resource2 and 7,b7 may use grid-scale energy storage4 7#b7 ,isolated community ,the term isolated community means a community that is powered by a stand-alone electric generation and distribution system without the economic and reliability benefits of connection to a regional electric grid4 7#c7 ,micro-grid system ,the term micro-grid system means a standalone electrical system that uses grid-scale energy storage4 7#d7 ,strategy ,the term strategy means the strategy developed pursuant to subsection 7b77#b77;,b74 7b7 ,program 7#a7 ,establishment ,the ,secretary shall establish a program to promote the development of-- 7,a7 hybrid micro-grid systems for isolated communities2 and 7,b7 micro-grid systems to increase the resilience of critical infrastructure4 7#b7 ,phases ,the program established under paragraph 7#a7 shall be divided into the following phases3 7,a7 ,phase ,i1 which shall consist of the development of a feasibility assessment for-- 7i7 hybrid micro-grid systems in isolated communities2 and 7ii7 micro-grid systems to enhance the resilience of critical infrastructure4 7,b7 ,phase ,,ii1 which shall consist of the development of an implementation strategy1 in accordance with paragraph 7#c71 to promote the development of hybrid micro-grid systems for isolated communities1 particularly for those communities exposed to extreme weather conditions and high energy costs1 including electricity1 space heating and cooling1 and transportation4 7,c7 ,phase ,,iii1 which shall be carried out in parallel with ,phase ,,ii and consist of the development of an implementation strategy to promote the development of micro-grid systems that increase the resilience of critical infrastructure4 7,d7 ,phase ,,iv1 which shall consist of cost-shared demonstration projects1 based upon the strategies developed under subparagraph 7,b7 that include the development of physical and cybersecurity plans to take appropriate measures to protect and secure the electric grid4 7,e7 ,phase ,v1 which shall establish a benefits analysis plan to help inform regulators1 policymakers1 and industry stakeholders about the affordability1 environmental and resilience benefits associated with ,phases ,,ii1 ,,iii1 and ,,iv4 7#c7 ,requirements for strategy ,in developing the strategy under paragraph 7#b77;,b71 the ,secretary shall consider-- 7,a7 establishing future targets for the economic displacement of conventional generation using hybrid micro-grid systems1 including displacement of conventional generation used for electric power generation1 heating and cooling1 and transportation2 7,b7 the potential for renewable resources1 including wind1 solar1 and hydropower1 to be integrated into a hybrid micro-grid system2 7,c7 opportunities for improving the efficiency of existing hybrid micro-grid systems2 7,d7 the capacity of the local workforce to operate1 maintain1 and repair a hybrid micro-grid system2 7,e7 opportunities to develop the capacity of the local workforce to operate1 maintain1 and repair a hybrid micro-grid system2 7,f7 leveraging existing capacity within local or regional research organizations1 such as organizations based at institutions of higher education1 to support development of hybrid micro-grid systems1 including by testing novel components and systems prior to field deployment2 7,g7 the need for basic infrastructure to develop1 deploy1 and sustain a hybrid micro-grid system2 7,h7 input of traditional knowledge from local leaders of isolated communities in the development of a hybrid micro-grid system2 7,i7 the impact of hybrid micro-grid systems on defense1 homeland security1 economic development1 and environmental interests2 7,j7 opportunities to leverage existing interagency coordination efforts and recommendations for new interagency coordination efforts to minimize unnecessary overhead1 mobilization1 and other project costs2 and 7,k7 any other criteria the ,secretary determines appropriate4 7c7 ,collaboration ,the program established under subsection 7b77#a7 shall be carried out in collaboration with relevant stakeholders1 including1 as appropriate-- 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 7d7 ,report ,not later than #ahj days after the date of enactment of this ,act1 and annually thereafter until calendar year #bjbi1 the ,secretary shall submit to the ,committee on ,energy and ,natural ,resources of the ,senate and the ,committee on ,energy and ,commerce of the ,house of ,representatives a report on the efforts to implement the program established under subsection 7b77#a7 and the status of the strategy developed under subsection 7b77#b77;,b74 #f4 ,electric 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 grid 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-- 7,a7 determine whether any additional standards are necessary to ensure the interoperability of grid systems and associated communications networks2 and 7,b7 if the ,secretary makes a determination that additional standards are necessary under subparagraph 7,a71 make recommendations for additional standards1 including1 as may be appropriate1 to the ,electric ,reliability ,organization under section #bae of the ,federal ,power ,act 7#af ,u4,s4,c4 #hbdo74 ,the ,electric ,reliability ,organization shall not be under any obligation to establish any process to consider such recommendations4 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 costs2 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 all sectors of the electric power industry2 7#f7 academic institutions2 7#g7 independent research institutes2 and 7#h7 other entities4 7d7 ,effect ,nothing in this section grants any person a right to receive or review confidential1 proprietary1 or otherwise protected information concerning grid architecture or scenarios4 #g4 ,voluntary model pathways 7a7 ,establishment of voluntary model pathways 7#a7 ,establishment ,not later than #ij days after the date of enactment of this ,act1 the ,secretary1 in consultation with the steering committee established under paragraph 7#c71 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 encompassing a diverse range of technologies that can be adapted for ,state and regional applications by regulators and policymakers2 7,b7 facilitates the modernization of the electric grid and associated communications networks to achieve the objectives described in paragraph 7#b72 7,c7 ensures a reliable1 resilient1 affordable1 safe1 and secure electric grid2 and 7,d7 acknowledges and accounts for different priorities1 electric systems1 and rate structures across ,states and regions4 7#b7 ,objectives ,the pathways established under paragraph 7#a7 shall facilitate achievement of as many of the following objectives as practicable3 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 of policies for investment in the electric grid4 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,i7 ,reduced cost of service for consumers4 7,j7 ,diversification of generation sources4 7#c7 ,steering committee ,not later than #ij days after the date of enactment of this ,act1 the ,secretary shall establish a steering committee to help develop the pathways under paragraph 7#a71 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 ,federal ,energy ,regulatory ,commission2 7,b7 the ,national ,laboratories2 7,c7 ,states2 7,d7 ,state regulatory authorities2 7,e7 transmission organizations2 7,f7 representatives of all sectors of the electric power industry2 7,g7 institutions of higher education2 7,h7 independent research institutes2 and 7,i7 other entities4 7b7 ,technical assistance ,the ,secretary may provide technical assistance to ,states1 ,indian ,tribes1 or units of local government to adopt or implement one or more elements of the pathways developed under subsection 7a77#a71 including on a pilot basis4 #h4 ,performance metrics for electricity infrastructure providers 7a7 ,in general ,not later than #b years after the date of enactment of this ,act1 the ,secretary1 in consultation with the steering committee established under section #g7;a77#c71 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 that includes-- 7#a7 an evaluation of the performance of the electric grid as of the date of the report2 and 7#b7 a description of the projected range of measurable costs and benefits associated with the changes evaluated under the scenarios developed under section #f4 7b7 ,considerations for development of metrics ,in developing metrics for the evaluation and projections under subsection 7a71 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 potential costs and measurable benefits value to ratepayers1 applying the performance metrics developed under paragraph 7#a72 7#c7 identification of tools1 resources1 and deployment models that may enable improved performance through the adoption of emerging1 commercially available or advanced grid technologies or solutions1 including-- 7,a7 multicustomer micro-grids2 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 7,g7 transactive energy systems2 and 7,h7 advanced demand management systems2 and 7#d7 the role of ,states and local regulatory authorities in enabling a robust future electric grid 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 #i4 ,voluntary ,state1 regional1 and local electricity distribution planning 7a7 ,in general ,on the request of a ,state1 regional organization1 or electric utility1 the ,secretary shall provide assistance to ,states1 regional organizations1 and electric utilities to facilitate the development of ,state1 regional1 and local electricity 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 ,state1 regional1 and local planning and operations4 7b7 ,risk and security analysis ,the assessment under subsection 7a77#a7 shall include-- 7#a7 the evaluation of the physical security1 cybersecurity1 and associated communications 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 an all-hazards approach that includes communications infrastructure1 control systems architecture1 and power systems architecture4 7c7 ,designation ,the information collected for the assessment and analysis under subsection 7a77#a7-- 7#a7 shall be considered to be critical electric infrastructure information under section #bae;,a of the ,federal ,power ,act 7#af ,u4,s4,c4 #hbdo-#a72 and 7#b7 shall only be released in compliance with regulations implementing that section4 7d7 ,technical assistance ,for the purpose of assisting in the development of ,state and regional 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 7e7 ,withdrawal ,a ,state or any entity that has requested technical assistance under this section may withdraw the request for technical assistance at any time1 and on such withdrawal1 the ,secretary shall terminate all assistance efforts4 7f7 ,effect ,nothing in this section authorizes the ,secretary to require any ,state1 regional organization1 regional reliability entity1 asset owner1 or asset operator to adopt any model1 tool1 plan1 analysis1 or assessment4 #aj4 ,authorization of appropriations ,there is authorized to be appropriated to the ,secretary to carry out section #d through this section #bjj1jjj1jjj for each of fiscal years #bjbj through #bjbh4 ,october #bd1 #bjai,reported without amendment