Grid Modernization Act of 2019

II Calendar No. 270 116TH CONGRESS 1ST SESSION S. 2332 [Report No. 116–149] To provide for the modernization of the electric grid, and for other purposes. IN THE SENATE OF THE UNITED STATES JULY 30, 2019 Ms. CANTWELL (for herself, Mr. HEINRICH, and Ms. HIRONO) introduced the following bill; which was read twice and referred to the Committee on En- ergy and Natural Resources OCTOBER 24, 2019 Reported by Ms. MURKOWSKI, without amendment A BILL To provide for the modernization of the electric grid, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 3 (a) SHORT TITLE.—This Act may be cited as the 4 ‘‘Grid Modernization Act of 2019’’. 5 VerDate Sep 11 2014 21:59 Oct 24, 2019 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S2332.RS S2332 pamtmann on DSKBC07HB2PROD with BILLS 2 •S 2332 RS (b) TABLE OF CONTENTS.—The table of contents for 1 this Act is as follows: 2 Sec. 1. Short title; table of contents. Sec. 2. Definitions. Sec. 3. Grid storage program. Sec. 4. Technology demonstration on the distribution system. Sec. 5. Micro-grid and hybrid micro-grid systems program. Sec. 6. Electric grid architecture, scenario development, and modeling. Sec. 7. Voluntary model pathways. Sec. 8. Performance metrics for electricity infrastructure providers. Sec. 9. Voluntary State, regional, and local electricity distribution planning. Sec. 10. Authorization of appropriations. SEC. 2. DEFINITIONS. 3 In this Act: 4 (1) DEPARTMENT.—The term ‘‘Department’’ 5 means the Department of Energy. 6 (2) NATIONAL LABORATORY.—The term ‘‘Na- 7 tional Laboratory’’ has the meaning given the term 8 in section 2 of the Energy Policy Act of 2005 (42 9 U.S.C. 15801). 10 (3) SECRETARY.—The term ‘‘Secretary’’ means 11 the Secretary of Energy. 12 SEC. 3. GRID STORAGE PROGRAM. 13 (a) IN GENERAL.—The Secretary shall conduct a 14 program of research, development, and demonstration of 15 electric grid energy storage that addresses the principal 16 challenges identified in the 2013 Department of Energy 17 Strategic Plan for Grid Energy Storage. 18 (b) AREAS OF FOCUS.—The program under this sec- 19 tion shall focus on— 20 VerDate Sep 11 2014 21:59 Oct 24, 2019 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S2332.RS S2332 pamtmann on DSKBC07HB2PROD with BILLS 3 •S 2332 RS (1) materials, electric thermal, electromechani- 1 cal, and electrochemical systems research; 2 (2) power conversion technologies research; 3 (3) developing— 4 (A) empirical and science-based industry 5 standards to compare the storage capacity, 6 cycle length and capabilities, and reliability of 7 different types of electricity storage; and 8 (B) validation and testing techniques; 9 (4) other fundamental and applied research 10 critical to widespread deployment of electricity stor- 11 age; 12 (5) device development that builds on results 13 from research described in paragraphs (1), (2), and 14 (4), including combinations of power electronics, ad- 15 vanced optimizing controls, and energy storage as a 16 general purpose element of the electric grid; 17 (6) grid-scale testing and analysis of storage 18 devices, including test-beds and field trials; 19 (7) cost-benefit analyses that inform capital ex- 20 penditure planning for regulators and owners and 21 operators of components of the electric grid; 22 (8) electricity storage device safety and reli- 23 ability, including potential failure modes, mitigation 24 measures, and operational guidelines; 25 VerDate Sep 11 2014 21:59 Oct 24, 2019 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S2332.RS S2332 pamtmann on DSKBC07HB2PROD with BILLS 4 •S 2332 RS (9) standards for storage device performance, 1 control interface, grid interconnection, and inter- 2 operability; and 3 (10) maintaining a public database of energy 4 storage projects, policies, codes, standards, and reg- 5 ulations. 6 (c) ASSISTANCE TO STATES.—The Secretary may 7 provide technical and financial assistance to States, Indian 8 Tribes, or units of local government to participate in or 9 use research, development, or demonstration of technology 10 developed under this section. 11 (d) AUTHORIZATION OF APPROPRIATIONS.—There is 12 authorized to be appropriated to the Secretary to carry 13 out this section $50,000,000 for each of fiscal years 2020 14 through 2028. 15 (e) NO EFFECT ON OTHER PROVISIONS OF LAW.— 16 Nothing in this Act or an amendment made by this Act 17 authorizes regulatory actions that would duplicate or con- 18 flict with regulatory requirements, mandatory standards, 19 or related processes under section 215 of the Federal 20 Power Act (16 U.S.C. 824o). 21 (f) USE OF FUNDS.—To the maximum extent prac- 22 ticable, in carrying out this section, the Secretary shall 23 ensure that the use of funds to carry out this section is 24 coordinated among different offices within the Grid Mod- 25 VerDate Sep 11 2014 21:59 Oct 24, 2019 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S2332.RS S2332 pamtmann on DSKBC07HB2PROD with BILLS 5 •S 2332 RS ernization Initiative of the Department and other pro- 1 grams conducting energy storage research. 2 SEC. 4. TECHNOLOGY DEMONSTRATION ON THE DISTRIBU- 3 TION SYSTEM. 4 (a) IN GENERAL.—The Secretary shall establish a 5 grant program to carry out eligible projects related to the 6 modernization of the electric grid, including the applica- 7 tion of technologies to improve observability, advanced 8 controls, and prediction of system performance on the dis- 9 tribution system. 10 (b) ELIGIBLE PROJECTS.—To be eligible for a grant 11 under subsection (a), a project shall— 12 (1) be designed to improve the performance and 13 efficiency of the future electric grid, while ensuring 14 the continued provision of safe, secure, reliable, and 15 affordable power; 16 (2) demonstrate— 17 (A) secure integration and management of 18 two or more energy resources, including distrib- 19 uted energy generation, combined heat and 20 power, micro-grids, energy storage, electric ve- 21 hicles, energy efficiency, demand response, and 22 intelligent loads; and 23 VerDate Sep 11 2014 21:59 Oct 24, 2019 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S2332.RS S2332 pamtmann on DSKBC07HB2PROD with BILLS 6 •S 2332 RS (B) secure integration and interoperability 1 of communications and information tech- 2 nologies; and 3 (3) be subject to the requirements of section 4 545(a) of the Energy Security and Independence Act 5 of 2007 (42 U.S.C. 17155(a)). 6 SEC. 5. MICRO-GRID AND HYBRID MICRO-GRID SYSTEMS 7 PROGRAM. 8 (a) DEFINITIONS.—In this section: 9 (1) HYBRID MICRO-GRID SYSTEM.—The term 10 ‘‘hybrid micro-grid system’’ means a stand-alone 11 electrical system that— 12 (A) is comprised of conventional generation 13 and at least 1 alternative energy resource; and 14 (B) may use grid-scale energy storage. 15 (2) ISOLATED COMMUNITY.—The term ‘‘iso- 16 lated community’’ means a community that is pow- 17 ered by a stand-alone electric generation and dis- 18 tribution system without the economic and reliability 19 benefits of connection to a regional electric grid. 20 (3) MICRO-GRID SYSTEM.—The term ‘‘micro- 21 grid system’’ means a standalone electrical system 22 that uses grid-scale energy storage. 23 VerDate Sep 11 2014 21:59 Oct 24, 2019 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S2332.RS S2332 pamtmann on DSKBC07HB2PROD with BILLS 7 •S 2332 RS (4) STRATEGY.—The term ‘‘strategy’’ means 1 the strategy developed pursuant to subsection 2 (b)(2)(B). 3 (b) PROGRAM.— 4 (1) ESTABLISHMENT.—The Secretary shall es- 5 tablish a program to promote the development of— 6 (A) hybrid micro-grid systems for isolated 7 communities; and 8 (B) micro-grid systems to increase the re- 9 silience of critical infrastructure. 10 (2) PHASES.—The program established under 11 paragraph (1) shall be divided into the following 12 phases: 13 (A) Phase I, which shall consist of the de- 14 velopment of a feasibility assessment for— 15 (i) hybrid micro-grid systems in iso- 16 lated communities; and 17 (ii) micro-grid systems to enhance the 18 resilience of critical infrastructure. 19 (B) Phase II, which shall consist of the de- 20 velopment of an implementation strategy, in ac- 21 cordance with paragraph (3), to promote the 22 development of hybrid micro-grid systems for 23 isolated communities, particularly for those 24 communities exposed to extreme weather condi- 25 VerDate Sep 11 2014 21:59 Oct 24, 2019 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S2332.RS S2332 pamtmann on DSKBC07HB2PROD with BILLS 8 •S 2332 RS tions and high energy costs, including elec- 1 tricity, space heating and cooling, and transpor- 2 tation. 3 (C) Phase III, which shall be carried out 4 in parallel with Phase II and consist of the de- 5 velopment of an implementation strategy to 6 promote the development of micro-grid systems 7 that increase the resilience of critical infrastruc- 8 ture. 9 (D) Phase IV, which shall consist of cost- 10 shared demonstration projects, based upon the 11 strategies developed under subparagraph (B) 12 that include the development of physical and cy- 13 bersecurity plans to take appropriate measures 14 to protect and secure the electric grid. 15 (E) Phase V, which shall establish a bene- 16 fits analysis plan to help inform regulators, pol- 17 icymakers, and industry stakeholders about the 18 affordability, environmental and resilience bene- 19 fits associated with Phases II, III, and IV. 20 (3) REQUIREMENTS FOR STRATEGY.—In devel- 21 oping the strategy under paragraph (2)(B), the Sec- 22 retary shall consider— 23 (A) establishing future targets for the eco- 24 nomic displacement of conventional generation 25 VerDate Sep 11 2014 21:59 Oct 24, 2019 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S2332.RS S2332 pamtmann on DSKBC07HB2PROD with BILLS 9 •S 2332 RS using hybrid micro-grid systems, including dis- 1 placement of conventional generation used for 2 electric power generation, heating and cooling, 3 and transportation; 4 (B) the potential for renewable resources, 5 including wind, solar, and hydropower, to be in- 6 tegrated into a hybrid micro-grid system; 7 (C) opportunities for improving the effi- 8 ciency of existing hybrid micro-grid systems; 9 (D) the capacity of the local workforce to 10 operate, maintain, and repair a hybrid micro- 11 grid system; 12 (E) opportunities to develop the capacity of 13 the local workforce to operate, maintain, and 14 repair a hybrid micro-grid system; 15 (F) leveraging existing capacity within 16 local or regional research organizations, such as 17 organizations based at institutions of higher 18 education, to support development of hybrid 19 micro-grid systems, including by testing novel 20 components and systems prior to field deploy- 21 ment; 22 (G) the need for basic infrastructure to de- 23 velop, deploy, and sustain a hybrid micro-grid 24 system; 25 VerDate Sep 11 2014 21:59 Oct 24, 2019 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S2332.RS S2332 pamtmann on DSKBC07HB2PROD with BILLS 10 •S 2332 RS (H) input of traditional knowledge from 1 local leaders of isolated communities in the de- 2 velopment of a hybrid micro-grid system; 3 (I) the impact of hybrid micro-grid systems 4 on defense, homeland security, economic devel- 5 opment, and environmental interests; 6 (J) opportunities to leverage existing inter- 7 agency coordination efforts and recommenda- 8 tions for new interagency coordination efforts to 9 minimize unnecessary overhead, mobilization, 10 and other project costs; and 11 (K) any other criteria the Secretary deter- 12 mines appropriate. 13 (c) COLLABORATION.—The program established 14 under subsection (b)(1) shall be carried out in collabora- 15 tion with relevant stakeholders, including, as appro- 16 priate— 17 (1) States; 18 (2) Indian Tribes; 19 (3) regional entities and regulators; 20 (4) units of local government; 21 (5) institutions of higher education; and 22 (6) private sector entities. 23 (d) REPORT.—Not later than 180 days after the date 24 of enactment of this Act, and annually thereafter until cal- 25 VerDate Sep 11 2014 21:59 Oct 24, 2019 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S2332.RS S2332 pamtmann on DSKBC07HB2PROD with BILLS 11 •S 2332 RS endar year 2029, the Secretary shall submit to the Com- 1 mittee on Energy and Natural Resources of the Senate 2 and the Committee on Energy and Commerce of the 3 House of Representatives a report on the efforts to imple- 4 ment the program established under subsection (b)(1) and 5 the status of the strategy developed under subsection 6 (b)(2)(B). 7 SEC. 6. ELECTRIC GRID ARCHITECTURE, SCENARIO DEVEL- 8 OPMENT, AND MODELING. 9 (a) GRID ARCHITECTURE AND SCENARIO DEVELOP- 10 MENT.— 11 (1) IN GENERAL.—Subject to paragraph (2), 12 the Secretary shall establish and facilitate a collabo- 13 rative process to develop model grid architecture and 14 a set of future scenarios for the electric grid to ex- 15 amine the impacts of different combinations of re- 16 sources (including different quantities of distributed 17 energy resources and large-scale, central generation) 18 on the electric grid. 19 (2) MARKET STRUCTURE.—The grid architec- 20 ture and scenarios developed under paragraph (1) 21 shall account for differences in market structure, in- 22 cluding an examination of the potential for stranded 23 costs in each type of market structure. 24 VerDate Sep 11 2014 21:59 Oct 24, 2019 Jkt 099200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S2332.RS S2332 pamtmann on DSKBC07HB2PROD with BILLS 12 •S 2332 RS (3) FINDINGS.—Based on the findings of grid 1 architecture developed under paragraph (1), the Sec- 2 retary shall— 3 (A) determine whether any additional 4 standards are necessary to ensure the interoper- 5 ability of grid systems and associated commu- 6 nications networks; and 7 (B) if the Secretary makes a determination 8 that additional standards are necessary under 9 subparagraph (A), make recommendations for 10 additional standards, including, as may be ap- 11 propriate, to the Electric Reliability Organiza- 12 tion under section 215 of the Federal Power 13 Act (16 U.S.C. 824o). The Electric Reliability 14 Organization shall not be under any obligation 15 to establish any process to consider such rec- 16 ommendations. 17 (b) MODELING.—Subject to subsection (c), the Sec- 18 retary shall— 19 (1) conduct modeling based on the scenarios de- 20 veloped under subsection (a); and 21 (2) analyze and evaluate the technical and fi- 22 nancial impacts of the models to assist States, utili- 23 ties, and other stakeholders [Text truncated for display. Full text available on Congress.gov.]