H.R. 1774 (111th): Smart Grid Advancement Act

111th Congress, 2009–2010. Text as of Mar 30, 2009 (Introduced).

Status & Summary | PDF | Source: GPO

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111th CONGRESS

1st Session

H. R. 1774

IN THE HOUSE OF REPRESENTATIVES

March 30, 2009

introduced the following bill; which was referred to the Committee on Energy and Commerce

A BILL

To incorporate smart grid capability into the Energy Star Program, to reduce peak electric demand, to reauthorize energy efficiency public information program to include Smart Grid information, and for other purposes.

1.

Short title

This Act may be cited as the Smart Grid Advancement Act.

2.

Definitions

For purposes of this Act, the terms:

(1)

Secretary means the Secretary of Energy.

(2)

Administrator means the Administrator of the Environmental Protection Agency.

(3)

Commission means Federal Energy Regulatory Commission.

(4)

Smart grid has the meaning provided by section 1301 of the Energy Independence and Security Act of 2007 (15 U.S.C. 17381).

(5)

Peak demand reduction means the reduction in annual peak demand as compared to a previous baseline year or period, expressed in Megawatts (MW).

(6)

Peak demand shall mean the highest point of electricity demand during any hour on the system of a load serving entity during a annual calendar year, expressed in megawatts, or more than one such high point of electricity demand as a function of seasonal demand changes.

(7)

Peak period shall mean the time period on the system of a load serving entity relative to peak demand that may warrant special measures or electricity resources to maintain system reliability while meeting peak demand.

(8)

Load serving entity means an entity that provides electricity directly to retail consumers with the responsibility to assure power quality and reliability, including such entities that are investor-owned, publicly owned, owned by rural electric cooperatives, or other entities.

(9)

Applicable baseline shall mean the average of the highest three annual peak demands a load serving entity has experienced during the 5 years immediately prior to the date of enactment of this Act.

(10)

Peak load reduction plan means a plan developed by or for a load serving entity that it will implement to meet its peak demand management goals.

3.

Incorporation of smart grid capability in Energy Star Program

(a)

Assessment

Within one year after the date of enactment of this Act, the Secretary and the Administrator shall each assess the potential for cost-effective integration of Smart Grid technologies and capabilities in all products that are reviewed by the Department of Energy and the Environmental Protection Agency, respectively, for potential designation as Energy Star products.

(b)

Analysis

(1)

Within 2 years after the date of enactment of this Act, the Secretary and the Administrator shall each prepare an analysis of the potential energy savings and electricity cost savings that could accrue for each of the products referred to in subsection (a) in the following optimal circumstances:

(A)

The products possessed full Smart Grid capability.

(B)

The products were utilized in an electricity utility service area which had Smart Grid capability and time-of-use electric rates.

(C)

The time-of-use rates reflected national average utility rates including average peak and valley daily electricity costs to the utility.

(D)

Consumers using such products took full advantage of such capability.

(2)

The analysis under paragraph (1) shall be considered the best case Smart Grid analysis. On the basis of such an analysis for each product, the Secretary and the Administrator shall determine whether the installation of Smart Grid capability for such a product would be cost effective. For purposes of this paragraph, the term cost effective means that the cumulative savings from using the product under the best case Smart Grid circumstances for a period of 5 years will be greater than the incremental cost of the Smart Grid features included in the product.

(3)

To the extent that including Smart Grid capability in any products analyzed under paragraph (2) yielded a finding that doing so was cost effective in the best case, the Secretary and the Administrator shall, not later than 3 years after the date of enactment of this Act take each of the following actions:

(A)

Inform the manufacturer of such product of such finding.

(B)

Make special note in a prominent manner on any Energy Star label for any product actually including Smart Grid capability that—

(i)

Smart Grid capability is a feature of that product;

(ii)

the use and value of those features depended on the Smart Grid capability of the utility system in which the product was installed and the use of those features by the customer; and

(iii)

on a utility system with Smart Grid capability, the use of the product’s Smart Grid capability could potentially reduce the cost of the product’s annual operation by an estimated dollar amount representing the result of incremental energy and electricity cost savings that would result from the Smart Grid best case for that product.

(C)

Submit a report to Congress summarizing the results of the analyses for each class of products, and presenting the potential national energy and electricity cost savings that could be realized if cost-effective Smart Grid capability were installed in the relevant products reviewed by the Energy Star program.

4.

Smart Grid Peak Demand Reduction Goals

(a)

Goals

Not later than one year after the date of enactment of this Act, load serving entities, or States, shall determine and publish peak demand reduction goals for any load serving entities that have an applicable baseline in excess of 250 megawatts.

(b)

Baselines

(1)

The Commission, in consultation with the Secretary, shall develop and publish, after an opportunity for public comment, a methodology to provide for adjustments or normalization to a load serving entity’s applicable baseline over time to reflect changes in the number of customers served, weather conditions, general economic conditions, and any other appropriate factors external to peak load management, as determined by the Commission.

(2)

The Commission shall support load serving entities in determining their applicable baselines, and in developing their peak demand reduction goals, including any load serving entity with an applicable baseline of less than 250 megawatts that volunteers to participate in achieving the purposes of this Act.

(3)

The Secretary, in consultation with the Commission and the National Electric Reliability Corporation, shall develop a system and rules for measurement and verification of demand reductions.

(c)

Peak demand reduction goals

(1)

Peak demand reduction goals may be established for an individual load serving entity, or, at the determination of a State or regional entity, by that State or regional entity for a larger region that shares a common system peak demand and for which peak demand reduction measures would offer regional benefit.

(2)

A State or regional entity establishing peak demand reduction goals shall cooperate, as necessary and appropriate, with the Commission, the Secretary, State regulatory commissions, State energy offices, the National Electric Reliability Corporation, and other relevant authorities.

(3)

In determining the applicable peak demand reduction goals, States and other jurisdictional entities may utilize the results of the 2009 National Demand Response Potential Assessment, as authorized by section 529 of the Energy Independence and Security Act of 2007.

(4)

The applicable peak demand reduction goals shall provide that—

(A)

load serving entities will reduce or mitigate peak demand by a minimum percentage amount from the applicable baseline to a lower peak demand during calendar year 2012;

(B)

load serving entities will reduce or mitigate peak demand by a minimum percentage greater amount from the applicable baseline to a lower peak demand during calendar year 2015; and

(C)

the minimum percentage reductions selected are the percentage reductions that are realistically achievable with an aggressive effort to deploy smart grid and peak demand reduction technologies and methods, including but not limited to those listed in subsection (d).

(d)

Plan

Each load serving entity shall prepare a peak load reduction plan that demonstrates its ability to meet each applicable goal by any or a combination of the following options:

(1)

Direct reduction in megawatts of peak demand through energy efficiency measures with reliable and continued application during peak demand periods.

(2)

Demonstration that an amount of megawatts equal to a stated portion of the applicable goal is contractually committed to be available for peak reduction through one or more of the following:

(A)

Megawatts enrolled in demand response programs.

(B)

Megawatts subject to the ability of a load serving entity to call on demand response programs, smart appliances, smart electricity storage devices, distributed generation resources on the entity’s customers’ premises, or other measures directly capable of actively, controllably, reliably, and dynamically reducing peak demand (dynamic peak management control).

(C)

Megawatts available from distributed dynamic electricity storage under agreement with the owner of that storage.

(D)

Megawatts committed from dispatchable distributed generation demonstrated to be reliable under peak period conditions.

(E)

Megawatts available from smart appliances and equipment with smart grid capability available for direct control by the utility through agreement with the customer owning the appliances or equipment.

(F)

Megawatts from a demonstrated and assured minimum of distributed solar electric generation capacity in instances where peak period and peak load conditions are directly related to solar radiation and accompanying heat.

(3)

If any of the methods listed in subparagraph (C), (D), or (E) of paragraph (2) are relied upon to meet its peak demand reduction goals, the load serving entity must demonstrate this capability by operating a test during the applicable calendar year.

(4)

Nothing in this Act shall require the publication in peak demand reduction goals or in any peak demand reduction plan of any information that is confidential for competitive or other reasons or that identifies individual customers.

(e)

Existing authority and requirements

Nothing in this Act diminishes or supersedes any authority of a State or political subdivision of a State to adopt or enforce any law or regulation respecting peak load management, demand response, distributed storage, use of distributed generation, or the regulation of load serving entities. The Commission, in consultation with States having such peak management, demand response and distributed storage programs, shall to the maximum extent practicable, facilitate coordination between the Federal program and such State programs.

(f)

Relief

The Commission may, for good cause, grant relief to load serving entities from the requirements of this section.

(g)

Other laws

Except as provided in subsections (e) and (f), no law or regulation shall relieve any person of any requirement otherwise applicable under this section.

(h)

Compliance

(1)

The Commission shall within one year after the enactment of this Act establish a public domain website where the Commission will provide information and data demonstrating compliance by States, regional entities, and load serving entities with this Act, including the success of load serving entities in meeting applicable peak demand reduction goals.

(2)

The Commission shall, by April 1 of each year beginning in 2012, provide a report to Congress on compliance with this Act and success in meeting applicable peak demand reduction goals and, as appropriate, shall make recommendations as to how to increase peak demand reduction efforts.

(3)

The Commission shall note in each such report any State, political subdivision of a State, or load serving entity that has failed to comply with this Act, or is not a part of any region or group of load serving entities serving a region that has complied with this Act.

(4)

The Commission shall have and exercise the authority to take reasonable steps to modify the process of establishing peak demand reduction goals and to accept adjustments to them as appropriate when sought by load serving entities.

(i)

Assistance and funding

(1)

Assistance

The Secretary may make grants to States and to other entities with responsibilities to be carried out under the Act to offset any documented costs of carrying out such responsibilities to the extent such costs are deemed burdensome or extraordinary by the Secretary.

(2)

Funding

There are authorized to be appropriated sums as may be necessary to the Commission, the Secretary, and the Administrator to carry out the provisions of this Act.

5.

Reauthorization of energy efficiency public information program to include Smart Grid information

Section 134 of the Energy Policy Act of 2005 (42 U.S.C. 15832) is amended as follows:

(1)

By amending the title heading to read Energy Efficiency and Smart Grid Public Information Initiative..

(2)

In subsection (a)(1) by striking reduce energy consumption during the 4-year period beginning on the date of enactment of this Act and inserting increase energy efficiency and to adopt Smart Grid technology and practices.

(3)

In subsection (a)(2) by striking benefits to consumers of reducing and inserting economic and environmental benefits to consumers and the United States of optimizing.

(4)

In subsection (a)(3) by inserting at the beginning of that subsection the effect of energy efficiency and Smart Grid capability in reducing energy and electricity prices throughout the economy, together with.

(5)

In subsection (a)(4) by redesignating subparagraph (D) as (E), by striking and at the end of subparagraph (C), and by inserting after subparagraph (C) the following:

(D)

purchasing and utilizing equipment that includes smart grid features and capability; and

.

(6)

In subsection (c), by striking Not later than July 1, 2009,” and inserting, “For each year when appropriations pursuant to the authorization in this section exceed $10,000,000,.

(7)

In subsection (d) by striking 2010 and inserting 2020.

(8)

In subsection (e) by striking 2010 and inserting 2020.

6.

Inclusion of Smart Grid Features in Appliance Rebate Program

(a)

Amendment

Section 124 of the Energy Policy Act of 2005 (42 U.S.C. 15821) is amended as follows:

(1)

By amending the section heading to read Energy efficient and smart appliance rebate program..

(2)

By redesignating paragraphs (4) and (5) as (5) and (6) and inserting after paragraph (3) the following:

(4)

Smart appliance

The term smart appliance means a product that the Administrator of the Environmental Protection Agency or the secretary of Energy has determined qualifies for such a designation in the Energy Star program pursuant to section 213 of the Smart Grid Advancement Act or that the Secretary or the Administrator has separately determined includes the relevant Smart Grid capabilities listed in section 1301 of the Energy Independence and Security Act of 2007 (15 U.S.C. 17381).

.

(3)

In subsection (b)(1) by inserting and smart after efficient and by inserting after products the first place it appears , including products designated as being smart appliances,.

(4)

In subsection (b)(3), by inserting the administration of after carry out.

(5)

In subsection (d), by inserting the administration of after carrying out and by inserting , and up to 100 percent of the value of the rebates provided pursuant to this section before the period at the end.

(6)

In subsection (e)(3), by inserting with separate consideration as applicable if the product is also a smart appliance, after Energy Star product the first place it appears and by inserting or smart appliance before the period at the end.

(7)

In subsection (f), by striking $50,000,000 through the period at the end and inserting such sums as may be necessary for each fiscal year from 2010 through 2015..

(b)

Table of contents

The item relating to section 124 in the table of contents for the Energy Policy Act of 2005 (42 U.S.C. 15801 and following) is amended to read as follows:

Sec. 124. Energy efficient and smart appliance rebate program.

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