,,ii  #aaith ,,congress  #b;d ,session  
,s4 #eaei  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,july #bi1     
#bjbf,mr4 ,welch 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 support      
microgrids1 and for other purposes4  #a4
 ,short title ,this ,act may be cited as
 the ,supporting ,transformative        
,resilience1 ,operations1 and           
,next-,generation ,grid ,innovation     
,deployment ,act of #bjbf or the        
,,strong ,,grid ,act of #bjbf4  #b4     
,consideration of interconnection of    
microgrids and the benefits of          
investments in resilience  7a7 ,in      
general ,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#bb7 ,interconnection of   
microgrids  7,a7 ,definition of         

microgrid ,in this paragraph1 the term  
microgrid means a group of              
interconnected loads and distributed    
energy resources 7which may include     
energy generation resources1 energy     
storage1 energy efficiency resources1   
district heating and cooling1 combined  
heat and power1 demand response and load
 control tools1 and other management1   
forecasting1 and analytical tools7      
within clearly defined electrical       
boundaries that-- 7i7 acts as a single  
controllable entity with respect to the 
electric grid2 and  7ii7 has the        
ability-- 7,i7 to connect to the        
electric grid2  7,,ii7 to disconnect    
from the electric grid2 or  7,,iii7 to  
run in parallel to the electric grid1   
whether connected to or disconnected    
from the electric grid4  7,b7           
,interconnection ,each ,state shall     
consider establishing a regulatory      
framework for the interconnection of    
microgrids1 which may include revising  
existing interconnection requirements   

for distributed energy resources to     
better account for islanding1 resource  
availability and scheduling1 resource   
protection1 and controls4  7#bc7        
,quantifying benefits of investments in 
resilience  7,a7 ,in general ,each      
,state shall consider establishing-- 7i7
 standards for evaluating and           
quantifying the benefits of investments 
in the resilience of the electric grid1 
including-- 7,i7 the events1            
circumstances1 and essential services   
for which resilience is required2       
7,,ii7 the level and duration of service
 required to achieve resilience2 and    
7,,iii7 consideration of-- 7aa7 whether 
critical customers have on-site or      
behind-the-meter generation capacity2   
and  7bb7 whether information relating  
to that capacity has been shared with   
the applicable utility and relevant     
regional entities1 as necessary2 and    
7ii7 a valuation methodology to quantify
 the value of measures to improve the   
resilience of the electric grid in order

 to determine whether such investments  
are justifiable1 including a mechanism  
to determine-- 7,i7 the distribution of 
resilience benefits to ratepayers2 and  
7,,ii7 the scope over which resilience  
benefits accrue4  7,b7 ,defense         
installations ,military installations   
7as defined in section #bhja7;c7 of     
title #aj1 ,united ,states ,code7 and   
other defense installations and         
infrastructure operated by the          
,department of ,defense shall not be    
subject to any standards or             
methodologies established pursuant to   
subparagraph 7,a74  4  7b7 ,compliance  
7#a7 ,time limitation ,section #aab7;b7 
of the ,public ,utility ,regulatory     
,policies ,act of #aigh 7#af ,u4,s4,c4  
#bfbb7;b77 is amended-- 7,a7 by         
indenting paragraphs 7#d7 through 7#h71 
and any subparagraphs within those      
paragraphs1 appropriately2 and  7,b7 by 
adding at the end the following3  7#i7  
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 the ,state has ratemaking         
authority7 and each nonregulated        
electric utility shall commence         
consideration under section #aaa1 or set
 a hearing date for consideration1 with 
respect to the standards established by 
paragraphs 7#bb7 and 7#bc7 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 the ,state has       
ratemaking authority71 and each         
nonregulated electric utility shall     
complete the consideration and make the 
determination under section #aaa with   
respect to the standards established by 
paragraphs 7#bb7 and 7#bc7 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 standards
 established by paragraphs 7#bb7 and    
7#bc7 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  7#c7   
,prior state actions  7,a7 ,in general  
,section #aab of the ,public ,utility   
,regulatory ,policies ,act of #aigh 7#af
 ,u4,s4,c4 #bfbb7 is amended-- 7i7 in   
each of subsections 7d7 through 7h71 by 
redesignating paragraphs 7#a7 through   
7#c7 as subparagraphs 7,a7 through 7,c71
 respectively1 and indenting            
appropriately2  7ii7 in subsections 7e7 
through 7h71 by striking enactment of   
this subsection and inserting enactment 
of that paragraph2  7iii7 in subsection 
7d71 in the matter preceding            
subparagraph 7,a7 7as so redesignated71 
by striking ,subsections and inserting  
the following3  7#a7 ,in general        
,subsections  2  7iv7 in subsection 7e71
 by striking the subsection designation 

and heading and all that follows through
 ,subsections in the matter preceding   
subparagraph 7,a7 7as so redesignated7  
and inserting the following3  7#b7      
,time-based metering and communications 
,subsections  2  7v7 in subsection 7f71 
by striking the subsection designation  
and heading and all that follows through
 ,subsections in the matter preceding   
subparagraph 7,a7 7as so redesignated7  
and inserting the following3  7#c7      
,interconnection ,subsections  2  7vi7  
in subsection 7g71 by striking the      
subsection designation and heading and  
all that follows through ,subsections in
 the matter preceding subparagraph 7,a7 
7as so redesignated7 and inserting the  
following3  7#d7 ,demand-response       
practices ,subsections  2  7vii7 in     
subsection 7h71 by striking the         
subsection designation and heading and  
all that follows through ,subsections in
 the matter preceding subparagraph 7,a7 
7as so redesignated7 and inserting the  
following3  7#e7 ,electric vehicle      

charging programs ,subsections  2 and   
7viii7 in subsection 7d7 7as so amended7
 by adding at the end the following3    
7#f7 ,interconnection of microgrids2    
benefits of investments in resilience   
,subsections 7b7 and 7c7 shall not apply
 to the standard established by         
paragraph 7#bb7 or 7#bc71 as applicable1
 of section #aaa7;d7 in the case of any 
electric utility in a ,state if1 before 
the date of enactment of that           
paragraph-- 7,a7 the ,state has         
implemented for the electric utility the
 applicable 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 applicable        
standard 7or a comparable standard7 for 
the electric utility2 or  7,c7 the      
,state legislature has voted on the     
implementation of the applicable        
standard 7or a comparable standard7 for 
the electric utility during the #c-year 

period ending on that date of enactment4
  4  7,b7 ,cross reference ,section #abd
 of the ,public ,utility ,regulatory    
,policies ,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#bb7 and 7#bc7 of section #aaa7;d71 the
 reference contained in this section to 
the date of enactment of this ,act shall
 be deemed to be a reference to the date
 of enactment of those paragraphs44  #c4
 ,state ,energy programs ,section #cfb  
of the ,energy ,policy and ,conservation
 ,act 7#db ,u4,s4,c4 #fcbb7 is amended--
 7#a7 in subsection 7c77#g77;,b71 by    
inserting 1 including microgrids 7as    
defined in section #cfg7;a77 before the 
semicolon at the end2 and  7#b7 in      
subsection 7d77#aj71 by inserting 1 such
 as distributed energy resources and    
virtual power plants before the         
semicolon at the end4  #d4              
,state-administered assistance for      
microgrids  7a7 ,in general ,part ,d of 

title ,,iii of the ,energy ,policy and  
,conservation ,act 7#db ,u4,s4,c4 #fcba 
et seq47 is amended by adding at the end
 the following3  #cfg4                  
,state-administered assistance for      
microgrids  7a7 ,definitions ,in this   
section3 7#a7 ,low-income community ,the
 term low-income community means any    
census block group in which #cj percent 
or more of the population are           
individuals with an annual household    
income equal to1 or less than1 the      
greater of-- 7,a7 an amount equal to #hj
 percent of the median income of the    
area in which the household is located1 
as reported by the ,department of       
,housing and ,urban ,development2 and   
7,b7 #bjj percent of the ,federal       
poverty line4  7#b7 ,microgrid ,the term
 microgrid means a group of             
interconnected loads and distributed    
energy resources 7which may include     
energy generation resources1 energy     
storage1 energy efficiency resources1   
district heating and cooling1 combined  

heat and power1 demand response and load
 control tools1 and other management1   
forecasting1 and analytical tools7      
within clearly defined electrical       
boundaries that-- 7,a7 acts as a single 
controllable entity with respect to the 
electric grid2 and  7,b7 has the ability
 to connect to1 disconnect from1 or run 
in parallel to the electric grid and    
operate in grid-connected mode or       
islanded mode4  7#c7 ,rural area ,the   
term rural area means any area other    
than-- 7,a7 a city or town that has a   
population of greater than #ej1jjj      
inhabitants2 and  7,b7 any urbanized    
area contiguous and adjacent to a city  
or town described in subparagraph 7,a74 
7b7 ,program ,not later than #a year    
after the date of enactment of the      
,,strong ,,grid ,act of #bjbf1 the      
,secretary1 in consultation with the    
,director of the ,office of             
,cybersecurity1 ,energy ,security1 and  
,emergency ,response1 shall establish a 
program under which the ,secretary shall

 allocate funding to ,state energy      
offices to implement an ,electric ,grid 
,resilience ,program in accordance with 
this section4  7c7 ,funding allocation  
,the ,secretary shall allocate funding  
under subsection 7b7 in accordance with 
the allocation formula in effect on     
,december #ca1 #bjbd1 for the ,state    
,energy ,program established under this 
part4  7d7 ,electric ,grid ,resilience  
,programs  7#a7 ,in general ,an         
,electric ,grid ,resilience ,program    
carried out by a ,state energy office   
using funds provided under this section 
shall award competitive grants to       
eligible entities to support the        
deployment of microgrids4  7#b7         
,eligible activities ,a grant awarded   
under an ,electric ,grid ,resilience    
,program may be used for-- 7,a7         
conducting a microgrid needs assessment 
or feasibility study2  7,b7 designing   
and engineering a microgrid1 including  
the solicitation of technical           
assistance-- 7i7 to address permitting  

and siting challenges2  7ii7 to         
understand the technical characteristics
 and management of microgrids2  7iii7 to
 develop a maintenance plan for the     
microgrid2 and  7iv7 to develop         
cybersecurity and data privacy measures 
unique to microgrid performance and     
operation2  7,c7 construction of a      
microgrid and associated energy         
resources1 including-- 7i7 energy       
generation assets2  7ii7 energy storage2
 and  7iii7 technologies to manage the  
operation and security of the microgrid2
  7,d7 implementation of advanced       
cybersecurity or operational controls   
for an existing microgrid2  7,e7 the    
technical and physical operation and    
maintenance of a newly constructed      
microgrid2  7,f7 training existing staff
 on the real-time systems specific to   
microgrids2 and  7,g7 other activities  
relating to microgrid deployment1 as the
 applicable ,state energy office        
determines to be appropriate4  7#c7     
,priorities ,in awarding grants under an

 ,electric ,grid ,resilience ,program1 a
 ,state energy office shall give        
priority to projects that-- 7,a7 improve
 energy resilience1 such as by reducing 
the frequency1 duration1 or scale of    
blackouts or power system failures2     
7,b7 improve the reliability of electric
 service2  7,c7 generate multiple energy
 value streams1 including ancillary     
services2  7,d7 address a need          
identified in a ,state or local hazard  
mitigation or emergency preparedness    
plan2  7,e7 address a need identified in
 a ,state energy security plan 7as      
defined in section #cff7;a772  7,f7     
primarily benefit a rural area or       
low-income community2  7,g7 provide     
ancillary services to the grid1 such as 
demand management or congestion control2
 or  7,h7 deploy distributed or         
renewable energy resources4  7#d7 ,cost 
share ,the recipient of a grant under an
 ,electric ,grid ,resilience ,program   
shall be required to provide not less   
than #be percent of the cost of the     

project carried out using the grant4    
7e7 ,administrative expenses ,a ,state  
may use up to #aj percent of the amount 
allocated to the ,state under this      
section for the costs of administering  
an ,electric ,grid ,resilience ,program4
  7f7 ,funding ,there is appropriated1  
out of any funds in the ,treasury not   
otherwise appropriated1 #ejj1jjj1jjj to 
carry out this section for the period of
 fiscal years #bjbg through #bjca4  4   
7b7 ,technical amendment ,the table of  
contents for the ,energy ,policy and    
,conservation ,act 7,public ,law        
#id-afc2 #hi ,stat4 #hgb7 is amended by 
inserting after the item relating to    
section #cff the following3  ,sec4 #cfg4
 ,state-administered assistance for     
microgrids4  4  #e4 ,technical          
assistance for utilities1 utility       
regulators1 and other stakeholders  7a7 
,in general ,title ,,vi of the ,public  
,utility ,regulatory ,policies ,act of  
#aigh is amended by inserting after     
section #fji 7#g ,u4,s4,c4 #iah;c7 the  

following3  #faj4 ,technical1           
educational1 and other assistance on    
microgrids  7a7 ,definitions ,in this   
section3 7#a7 ,eligible entity ,the term
 eligible entity means-- 7,a7 an        
electric utility1 including the board of
 an electric cooperative2  7,b7 an      
electric utility regulator1 including a 
,state regulatory authority1 such as a  
public utility commission2  7,c7 a      
,state or a ,state energy office2  7,d7 
an agency1 authority1 corporation1 or   
instrumentality of a ,state or ,indian  
,tribe2  7,e7 a unit of local government
 or a political subdivision of a ,state 
or ,indian ,tribe2  7,f7 a policymaker  
having authority with respect to-- 7i7  
an electric utility2  7ii7 the          
regulation of electric utilities or the 
sale of electric energy2 or  7iii7 any  
other matter relating to the adoption or
 use of microgrids2 and  7,g7 any other 
relevant entity1 as determined by the   
,secretary4  7#b7 ,microgrid ,the term  
microgrid has the meaning given the term

 in section #aaa7;d77#bb77;,a74  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 ,state energy  
office ,the term ,state energy office   
means the ,state agency responsible for 
developing a ,state energy conservation 
plan under section #cfb of the ,energy  
,policy and ,conservation ,act 7#db     
,u4,s4,c4 #fcbb74  7b7 ,technical       
assistance on microgrid adoption ,the   
,secretary1 on request1 shall provide to
 eligible entities technical assistance 
to facilitate the adoption and          
deployment of microgrids1 including     
technical assistance with respect to--  
7#a7 interconnection processes2  7#b7   
valuation and verification of microgrid 
benefits2  7#c7 integrated distribution 
system and resource planning1 including 
behind-the-meter resources2  7#d7       
co-locating microgrid infrastructure and
 large industrial and commercial loads2 

and  7#e7 other relevant considerations1
 as determined by the ,secretary4  7c7  
,technical assistance on implementation 
of the ,,strong ,,grid ,act of #bjbf    
7#a7 ,in general ,the ,secretary1 on    
request1 shall provide technical        
assistance to ,state agencies and other 
eligible entities1 including ,state     
regulatory authorities1 ,state regulated
 electric utilities1 and nonregulated   
electric utilities1 with respect to--   
7,a7 regulatory proceedings relating to 
paragraphs 7#bb7 and 7#bc7 of section   
#aaa7;d72  7,b7 the adoption or use of  
microgrids as part of the ,state ,energy
 ,program established under part ,d of  
title ,,iii of the ,energy ,policy and  
,conservation ,act 7#db ,u4,s4,c4 #fcba 
et seq472 or  7,c7 the grant program    
established under section #cfg7;b7 of   
that ,act4  7#b7 ,national ,laboratories
 ,the ,secretary may provide technical  
assistance under paragraph 7#a7 through 
the ,national ,laboratories1 as the     
,secretary determines to be appropriate4

  7d7 ,best practices ,the ,secretary1  
in coordination with the ,national      
,laboratories and in consultation with  
,state energy offices and other         
stakeholders1 as determined by the      
,secretary1 shall develop best practices
 for the following matters with respect 
to microgrids and microgrid components3 
7#a7 ,interconnection processes4  7#b7  
,cybersecurity4  7#c7 ,personal data    
protection4  7#d7 ,ownership4  7e7      
,workshops1 roundtables1 and other      
activities ,the ,secretary shall host   
workshops1 roundtables1 information     
sessions1 and other activities to       
provide to eligible entities education  
and information about microgrids1       
including with respect to-- 7#a7 the    
benefits of microgrids and the role of  
microgrids in strengthening electric    
grid resilience1 reducing emissions1    
managing demand1 and meeting load growth
 and other energy industry challenges2  
7#b7 best practices1 standards1 and     
protocols for the regulation1           

development1 implementation1 operation1 
and management of microgrids2 and  7#c7 
resources and technical assistance      
opportunities available to eligible     
entities from the ,secretary and other  
,federal agencies4  4  7b7 ,clerical    
amendment ,the table of contents in     
section #a7;b7 of the ,public ,utility  
,regulatory ,policies ,act of #aigh     
7,public ,law #ie-fag2 #ib ,stat4 #caah7
 is amended by adding at the end of the 
items relating to title ,,vi the        
following3  ,sec4 #fji4 ,rural and      
remote communities electrification      
grants4,sec4 #faj4 ,technical1          
educational1 and other assistance on    
microgrids4  4  #f4 ,pilot program for  
demonstration of innovative microgrid   
applications  7a7 ,definitions ,in this 
section3 7#a7 ,eligible entity ,the term
 eligible entity means-- 7,a7 an        
electric grid operator2  7,b7 an        
electricity storage operator2  7,c7 an  
electricity generator2  7,d7 a          
transmission owner or operator2  7,e7 a 

distribution provider2  7,f7 a fuel     
supplier2  7,g7 a ,state1 a territory of
 the ,united ,states1 or an ,indian     
,tribe2  7,h7 an agency1 authority1     
corporation1 or instrumentality of a    
,state or ,indian ,tribe2  7,i7 a unit  
of local government or a political      
subdivision of a ,state or ,indian      
,tribe2  7,j7 an institution of higher  
education2 and  7,k7 any other relevant 
entity1 as determined by the ,secretary4
  7#b7 ,pilot program ,the term pilot   
program means the pilot program         
established under subsection 7b74  7#c7 
,secretary ,the term ,secretary means   
the ,secretary of ,energy4  7b7         
,establishment ,not later than #a year  
after the date of enactment of this     
,act1 the ,secretary shall establish a  
pilot program to award grants1 on a     
competitive basis1 to eligible entities 
for projects to demonstrate innovative  
microgrid deployment4  7c7 ,applications
 ,an eligible entity seeking a grant    
under the pilot program shall submit to 

the ,secretary an application at such   
time1 in such manner1 and containing    
such information as the ,secretary may  
require4  7d7 ,priority ,in awarding    
grants under the pilot program1 the     
,secretary shall give priority to       
projects that demonstrate innovative    
microgrid applications1 emerging        
technologies1 and distributed energy    
resources management systems1 which may 
include microgrid projects that-- 7#a7  
provide ancillary grid services and     
supply and demand management2  7#b7     
aggregate distributed energy resources  
into virtual power plants2  7#c7        
communicate between demand and          
generation resources2  7#d7 demonstrate 
effective cybersecurity management2     
7#e7 demonstrate methods to protect     
microgrids and related energy resources 
during a grid or microgrid fault2  7#f7 
facilitate load transfers to alleviate  
transmission congestion2  7#g7 manage   
voltage instability or collapses2  7#h7 
demonstrate systems to support microgrid

 and networked microgrid operations1    
including coordination and resource     
sharing2  7#i7 demonstrate systems for  
multi-microgrid control2  7#aj7         
demonstrate microgrid capabilities and  
operation in black-start conditions2    
7#aa7 demonstrate successful operation  
of microgrids where direct current      
systems are the primary basis of design2
  7#ab7 demonstrate successful microgrid
 operation with a significant           
penetration of or complete reliance on  
renewable energy resources1 including   
storage2 or  7#ac7 adopt a flexible     
regulatory framework for high-visibility
 projects that demonstrate advanced     
microgrid concepts and technologies4    
7e7 ,cost share ,the ,federal share of  
the cost of a project for which a grant 
is provided under the pilot program     
shall not exceed #ij percent4  7f7      
,technical assistance ,the ,secretary   
may provide technical assistance to     
recipients of grants under the pilot    
program with respect to-- 7#a7 the      

development of microgrid regulatory     
frameworks2  7#b7 the design of         
microgrids2 and  7#c7 the feasibility of
 microgrid projects4  7g7 ,reports  7#a7
 ,report on microgrid benefits and      
regulatory processes ,not later than #e 
years after the date of enactment of    
this ,act1 the ,secretary1 in           
coordination with the ,national         
,laboratories1 shall submit to ,congress
 and publish on a publicly available    
website of the ,department of ,energy a 
report that evaluates the outcomes of   
the pilot program1 including-- 7,a7 the 
benefits1 challenges1 and risks of      
microgrid deployment2 and  7,b7         
regulatory processes relating to the    
deployment of microgrids4  7#b7 ,report 
on pilot projects ,annually1 the        
,secretary shall submit to ,congress and
 publish on a publicly available website
 of the ,department of ,energy a report 
describing each project funded under the
 pilot program as of the date of the    
report1 including the innovative        

microgrid deployment1 applications1 and 
technologies demonstrated by the        
project4  7h7 ,authorization of         
appropriations ,there is authorized to  
be appropriated to the ,secretary to    
carry out the pilot program #bjj1jjj1jjj
 for the period of fiscal years #bjbg   
through #bjca4