Next Generation Electric Systems Act

Summary: Next Generation Electric Systems Act  This bill requires the Department of Energy (DOE) to establish a grants program for eligible partnerships to develop and implement projects related to achieving the transformation of the future electric grid by the year 2030 using a comprehensive approach to electric system design and architecture.  Eligible partnerships may include any institution of higher education, National Laboratory, representative of a state or local government, representative of an Indian tribe, federal power marketing administration, industry expert, or nonprofit industry trade association, but must include at least one electric utility (either investor-owned or publicly owned), technology provider, rural electric cooperative, Regional Transmission Organization, or Independent System Operator. DOE must, when selecting eligible partnerships to receive grants, give priority to those proposing projects for which a cost-share is to be provided. 

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Next Generation Electric Systems 
Act''.

SEC. 2. GRANT PROGRAM FOR PROJECTS TO DESIGN AND DEVELOP TRANSFORMATIVE 
              NEXT GENERATION ELECTRIC SYSTEMS.

    (a) In General.--The Secretary of Energy (acting through the 
Assistant Secretary of the Office of Electricity Delivery and Energy 
Reliability) (referred to in this Act as the ``Secretary'') shall 
establish a grant program under which the Secretary shall make grants 
to eligible partnerships to develop and carry out eligible projects 
related to achieving the transformation of the future electric grid by 
the year 2030 using a comprehensive approach to electric system design 
and architecture.
    (b) Eligible Projects.--To be eligible for a grant under subsection 
(a), a project--
            (1) shall be designed to improve the performance and 
        efficiency of the future electric grid, while ensuring the 
        continued provision of safe, secure, reliable, and affordable 
        power; and
            (2) may include projects to design, develop, and test--
                    (A) feasible, optimal next generation electricity 
                delivery systems, from generation through consumption, 
                including end-use applications;
                    (B) the role that regulated utilities and market-
                driven entities, including third-party nonregulated 
                services providers, may play in an electric system in 
                which distributed energy resources and retail and 
                wholesale level ancillary services expand;
                    (C) optimal and innovative, comprehensive grid 
                infrastructure designs that would ensure reliable, 
                cost-effective, safe, and secure integration and 
                management of variable and distributed energy 
                resources, including projects related to distributed 
                generation, combined heat and power, microgrids, energy 
                storage, electric vehicles, energy efficiency, demand 
                response, and intelligent loads;
                    (D) optimal grid design solutions to ensure grid 
                reliability and resiliency;
                    (E) the integration and interoperability of 
                telecommunications, information technology, operational 
                technologies, or other systems and technologies with 
                the electric grid to support the management of the 
                future, next generation, dynamic and changing electric 
                system; and
                    (F) solutions to overcoming technological, 
                regulatory, business model, and market barriers to 
                achieve the transition and transformation to the future 
                electric grid.
    (c) Description of Eligible Partnership.--An eligible partnership 
referred to in subsection (a) means a group of 2 or more entities 
that--
            (1) may include any institution of higher education, 
        National Laboratory, representative of a State or local 
        government, representative of an Indian tribe, Federal power 
        marketing administration, industry expert, or nonprofit 
        industry trade association; and
            (2) shall include at least 1 of any of the following:
                    (A) An investor-owned electric utility.
                    (B) A publicly owned utility.
                    (C) A technology provider.
                    (D) A rural electric cooperative.
                    (E) A Regional Transmission Organization.
                    (F) An Independent System Operator.
    (d) Application.--In order to receive a grant under this section, 
an eligible partnership shall submit to the Secretary an application at 
such time, in such form, and containing such information as the 
Secretary may prescribe, including details about the partnership and 
proposed project.
    (e) Selection Committee.--Not later than 90 days after the date of 
enactment of this Act, the Secretary shall establish a selection 
committee, comprised of technical experts, to make recommendations, 
based on the criteria described in subsection (f), to the Secretary for 
the award of grants under this section to 2 or more eligible 
partnerships.
    (f) Selection Criteria.--
            (1) In general.--The Secretary shall make grants under 
        subsection (a) based on the following criteria:
                    (A) The scope and diversity of the eligible 
                partnership with respect to representation of 
                stakeholders and geographic locations.
                    (B) The demonstrated ability of the eligible 
                partnership to provide leadership within the industry 
                in promoting transformative innovation in electricity 
                systems, using a comprehensive or holistic approach, 
                especially with respect to system design or 
                architecture.
                    (C) The extent to which a project would develop and 
                carry out commercially available or emerging 
                technologies that would be scalable and replicable.
                    (D) The extent to which a project would--
                            (i) improve electric reliability, 
                        resiliency, security, and safety;
                            (ii) provide consumer benefits;
                            (iii) drive economic growth; or
                            (iv) achieve other grid modernization 
                        policy or technical goals.
                    (E) The extent to which a project would provide an 
                innovative conceptual or technical approach to the 
                operation of the electric grid looking to the year 2030 
                and beyond.
                    (F) The demonstrated ability of the eligible 
                partnership to leverage prior Federal or local 
                investments.
                    (G) The extent to which a project would advance a 
                financially viable future model for electricity market 
                participants, including utilities and third-party 
                entities, that provides all consumers with fair and 
                equitable options to meet the electric energy needs of 
                the consumers, while balancing societal, and individual 
                consumer, interests.
            (2) Priority for projects providing cost share.--In 
        selecting eligible partnerships to make grants to under 
        subsection (a), the Secretary shall give priority to eligible 
        partnerships proposing projects for which a cost-share is to be 
        provided.

SEC. 3. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Secretary such sums 
as are necessary to carry out this Act for each of fiscal years 2016 
through 2020.