[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 2659 Introduced in Senate (IS)]
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117th CONGRESS
1st Session
S. 2659
To require the establishment of an advanced energy technology research
initiative and an advanced energy technology and modeling grant
program, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
August 5, 2021
Mr. Whitehouse introduced the following bill; which was read twice and
referred to the Committee on Energy and Natural Resources
_______________________________________________________________________
A BILL
To require the establishment of an advanced energy technology research
initiative and an advanced energy technology and modeling grant
program, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Advanced Energy Technologies and
Grid Efficiency Act of 2021''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Advanced energy technology.--The term ``advanced energy
technology'' means any energy generation, monitoring or
modifying transmission loading, or storage technology with zero
or minimal greenhouse gas emissions that is connected--
(A) to the distribution system;
(B) to the transmission system; or
(C) behind the meter.
(2) Advisory committee.--The term ``Advisory Committee''
means the advisory committee established under section
3(a)(2)(A).
(3) Commission.--The term ``Commission'' means the Federal
Energy Regulatory Commission.
(4) Electric utility.--The term ``electric utility'' has
the meaning given the term in section 3 of the Federal Power
Act (16 U.S.C. 796).
(5) Grid operator.--The term ``grid operator'' means--
(A) a Transmission Organization, including--
(i) an Independent System Operator; and
(ii) a Regional Transmission Organization;
(B) a public utility; and
(C) an electric utility.
(6) Independent system operator.--The term ``Independent
System Operator'' has the meaning given the term in section 3
of the Federal Power Act (16 U.S.C. 796).
(7) Initiative.--The term ``Initiative'' means the Advanced
Energy Technology Research Initiative established under section
3(a)(1).
(8) Public utility.--The term ``public utility'' has the
meaning given the term in section 201(e) of the Federal Power
Act (16 U.S.C. 824(e)).
(9) Regional transmission organization.--The term
``Regional Transmission Organization'' has the meaning given
the term in section 3 of the Federal Power Act (16 U.S.C. 796).
(10) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(11) Transmission organization.--The term ``Transmission
Organization'' has the meaning given the term in section 3 of
the Federal Power Act (16 U.S.C. 796).
SEC. 3. POWER SYSTEM MODELING REFORM AND UPDATES TO GRID SERVICES AND
GRID OPERATOR SOFTWARE.
(a) Advanced Energy Technology Research Initiative.--
(1) In general.--Not later than 90 days after the date of
enactment of this Act, the Commission, in coordination with the
Secretary, shall establish within the Office of Energy Policy
and Innovation of the Commission an initiative, to be known as
the ``Advanced Energy Technology Research Initiative'', to
research and provide recommendations on how to improve the
modeling, operational, and planning practices used for the bulk
electric system.
(2) Advisory committee.--
(A) In general.--Not later than 180 days after the
date of enactment of this Act, the Commission, in
coordination with the Secretary, shall establish an
advisory committee to research, report on, and provide
recommendations on matters relating to the Initiative,
including--
(i) whether the existing modeling
(including power flow modeling) and long-term
and short-term planning practices used by grid
operators for power systems, including power
markets, adequately incorporate expected
integration with respect to advanced energy
technologies;
(ii) whether the methods used to determine
future transmission and capacity needs and make
reliability-related determinations use the
right data to adequately forecast and model the
integration of advanced energy technology into
electric power systems;
(iii) whether the modeling and planning
practices described in clause (i) and the
methods described in clause (ii) need to be
updated to better account for the integration
of advanced energy technology into electric
power systems;
(iv) any undue barriers to the adoption of
advanced energy technology presented by--
(I) existing modeling, operational,
and planning practices; and
(II) State estimation tools for
planning and reliability;
(v) any need to develop emerging
technologies or software for use in improving
modeling, planning, and operations in wholesale
electricity markets to resolve computational or
technical barriers to the adoption of advanced
energy technology, including software relating
to--
(I) the use of big data, artificial
intelligence, and probabilistic methods
to predict, in near-real-time--
(aa) energy generation from
variable and distributed
resources;
(bb) load profiles; and
(cc) consumption and
congestion; and
(II) the use of artificial
intelligence to improve the
responsiveness of energy system
operations;
(vi) whether existing and future grid
reliability service definitions and the
modeling techniques, operational processes, and
planning processes used to procure grid
reliability services--
(I) appropriately account for the
technical and operational
characteristics of advanced energy
technologies;
(II) allow for the use of those
advanced energy technologies to provide
grid reliability services when cost-
effective to do so; and
(III) include appropriate
cybersecurity safeguards; and
(vii) any rulemaking, technical conference,
or policy statement that, in the determination
of the Advisory Committee, the Commission
should consider.
(B) Composition.--The Advisory Committee shall
consist of--
(i) not fewer than 1 representative from
each of--
(I) the Commission;
(II) the Department of Energy;
(III) the Electric Reliability
Organization (as defined in section
215(a) of the Federal Power Act (16
U.S.C. 824o(a)));
(IV) an Independent System Operator
or a Regional Transmission
Organization;
(V) an entity generating electric
power that is not affiliated with a
transmission-owning public or nonpublic
utility;
(VI) an entity generating electric
power that provides power directly to
wholesale or retail customers and is
not affiliated with a transmission-
owning public or nonpublic utility;
(VII) an environmental organization
with expertise on the bulk electric
system; and
(VIII) an institution of higher
education with expertise on the bulk
electric system;
(ii) not fewer than 2 designees of the
National Association of Regulatory Utility
Commissioners;
(iii) not fewer than 4 representatives from
public utilities or electric utilities,
regardless of whether the utility is in an area
serviced by an Independent System Operator or a
Regional Transmission Organization; and
(iv) not fewer than 2 representatives from
private and nonprofit associations with
expertise in the development, deployment, and
use of advanced energy technologies.
(C) Reports.--Not later than 18 months after the
date of enactment of this Act, and every 2 years
thereafter for 10 years, the Advisory Committee 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
Initiative, including the findings or recommendations
of the Advisory Committee with respect to the matters
described in clauses (i) through (vii) of subparagraph
(A).
(b) Advanced Energy Technology and Grid Services Program.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall establish a
competitive financial assistance program, to be known as the
``Advanced Energy Technology and Grid Services Program'', under
which the Secretary shall enter into Federal financial
assistance agreements with eligible entities described in
paragraph (2) for the purpose of increasing the market
penetration of advanced energy technology through advanced
research and development and pilot demonstrations of--
(A) software upgrades, including upgrades to the
software platforms used to operate wholesale energy
markets;
(B) updated power system planning;
(C) new power system (including power market)
modeling platforms;
(D) cybersecurity and physical security upgrades;
and
(E) resilience upgrades.
(2) Eligible entities described.--An eligible entity
referred to in paragraph (1) is--
(A) a grid operator;
(B) a State public utility commission;
(C) an energy cooperative;
(D) a municipality;
(E) an electric utility;
(F) a gas utility; or
(G) a State energy office.
(3) Eligible activities.--The Secretary may enter into a
financial assistance agreement under this subsection for--
(A) software upgrades by grid operators;
(B) new power system (including power market)
modeling platforms;
(C) enhancements to cybersecurity safeguards; or
(D) updated power system (including power market)
planning, updated power system (including power market)
modeling, or updated reliability planning and modeling
by grid operators.
(4) Cost sharing.--In awarding Federal financial assistance
(including grants, loans, and any other form of financial
assistance) to fund eligible activities under this subsection,
the Secretary shall require cost sharing in accordance with
section 988 of the Energy Policy Act of 2005 (42 U.S.C. 16352).
(5) Coordination.--In carrying out the Advanced Energy
Technology and Grid Services Program established under this
subsection, the Secretary, to the maximum extent practicable,
shall coordinate with existing programs of the Department of
Energy that focus on grid modernization efforts.
SEC. 4. ADVANCED ENERGY AND GRID EFFICIENCY STUDIES AND REPORT.
(a) Studies.--
(1) Advanced energy study.--The Secretary, in coordination
with the Commission, shall carry out a study of the costs and
benefits to consumers of updating power system planning,
modeling, and operational practices, including reliability-
related planning, and energy market participation rules on
advanced energy technologies and resources, including
distributed energy technologies and resources, such as--
(A) energy storage technologies;
(B) energy efficiency and transmission efficiency
technologies;
(C) distributed solar and wind energy generation;
(D) fuel cells;
(E) smart thermostats and smart building
technologies;
(F) demand response technologies, including natural
gas demand response technologies;
(G) advanced metering technologies;
(H) electric vehicles and electric vehicle charging
infrastructure;
(I) any aggregation of the distributed energy
technologies and resources described in subparagraph
(A) or (C); and
(J) any other advanced energy technologies, as
determined by the Secretary.
(2) Grid efficiency study.--
(A) In general.--The Secretary, in coordination
with the Commission, shall carry out a study of the
barriers and opportunities for advanced energy
technologies that provide increased, more efficient, or
more effective delivery over the existing transmission
network.
(B) Requirements.--The study under subparagraph (A)
shall include--
(i) an examination of--
(I) the reliability, resilience,
and economic benefits of technologies
such as power flow control, topology
optimization, and dynamic line ratings;
(II) the costs, benefits, and
challenges associated with deployment
of the advanced energy technologies
described in subparagraph (A); and
(III) the impact of grid efficiency
improvements on wholesale and retail
electricity rates; and
(ii) an analysis of the benefits of
performance-based financial and regulatory
incentives in the deployment of advanced energy
technologies relative to the cost-of-service of
those advanced energy technologies, as
determined by the Secretary.
(b) Report.--Not later than 18 months after the date of enactment
of this Act, 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 describing the
results of the studies under paragraphs (1) and (2) of subsection (a).
SEC. 5. INTERCONNECTION PROCESSES AND TRANSMISSION UPGRADES.
(a) Priority of Financial Assistance.--
(1) In general.--The Secretary shall use the existing grant
funding provided through relevant funding streams and programs
of the Office of Electricity of the Department of Energy--
(A) to give priority to transmission and
distribution utilities seeking to conduct pilot
programs aimed at integrating advanced energy
technologies into the bulk electric system; and
(B) to focus on escalating demand for advanced
energy technology interconnections.
(2) Requirement.--In carrying out paragraph (1), the
Secretary shall develop the design of and method for carrying
out any funding opportunities identified pursuant to that
paragraph.
(b) Transmission Planning and Siting.--
(1) Independent report.--The Commission shall offer to
enter into an agreement with the National Academy of Sciences
to prepare a report on whether--
(A) existing regional and interregional
transmission planning and siting processes are
effectively supporting State resource planning
objectives; and
(B) Federal regulators have the tools to
effectively regulate the planning and siting of
interregional transmission lines.
(2) Requirements.--The report under paragraph (1) shall
examine whether--
(A) there are deficiencies in transmission planning
and siting that affect resource development for--
(i) interregional and regional energy
generation;
(ii) interconnection queues; and
(iii) advanced energy technologies;
(B) the Commission has the programmatic and
regulatory structure necessary to facilitate continued
improvements in transmission planning, including
planning with respect to transmission--
(i) across the boundaries of Independent
System Operators and Regional Transmission
Organizations; and
(ii) across boundaries that are not
associated with Independent System Operators or
Regional Transmission Organizations;
(C) State resource planning requirements are
addressed in existing transmission planning processes;
(D) the Commission lacks tools with respect to the
siting of transmission lines that could help States
improve transmission planning to meet State resource
planning objectives; and
(E) there are barriers to the inclusion and
integration in the grid of any technology--
(i) to reduce transmission losses;
(ii) to improve the efficiency of the
transmission and distribution systems;
(iii) that is connected to the distribution
system and may--
(I) increase reliability or
resilience; and
(II) avoid transmission and
distribution system costs; and
(iv) to better understand the role of
Federal regulators in the siting of
technologies not directly connected to the
grid.
(3) Deadline.--The report under paragraph (1) shall be
submitted to the Commission, the Secretary, and the relevant
committees of Congress not later than 1 year after the date of
enactment of this Act.
(c) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary to provide grants through relevant
programs of the Office of Electricity of the Department of Energy, in
accordance with subparagraphs (A) and (B) of subsection (a)(1),
$50,000,000 for each of fiscal years 2022 through 2026.
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