```

[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2685 Introduced in House (IH)]

113th CONGRESS
  1st Session
                                H. R. 2685

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

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             July 11, 2013

Mr. McNerney (for himself and Mr. Cartwright) 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 a energy efficiency public 
 information program to include Smart Grid information, 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 ``Smart Grid Advancement Act of 
2013''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (2) Applicable baseline.--The term ``applicable baseline'' 
        means 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.
            (3) Commission.--The term ``Commission'' means the Federal 
        Energy Regulatory Commission.
            (4) Load-serving entity.--The term ``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.
            (5) Peak demand.--The term ``peak demand'' means the 
        highest point of electricity demand, net of any distributed 
        electricity generation or storage from sources on the load-
        serving entity's customers' premises, during any hour on the 
        system of a load-serving entity during a calendar year, 
        expressed in megawatts (MW), or more than one such high point 
        as a function of seasonal demand changes.
            (6) Peak demand reduction.--The term ``peak demand 
        reduction'' means the reduction in annual peak demand as 
        compared to a previous baseline year or period, expressed in 
        megawatts (MW), whether accomplished by--
                    (A) diminishing the end-use requirements for 
                electricity;
                    (B) use of locally stored energy or generated 
                electricity to meet those requirements from distributed 
                resources on the load-serving entity's customers' 
                premises and without use of high-voltage transmission; 
                or
                    (C) energy savings from efficient operation of the 
                distribution grid resulting from the use of a Smart 
                Grid.
            (7) Peak demand reduction plan.--The term ``peak demand 
        reduction plan'' means a plan developed by or for a load-
        serving entity that it will implement to meet its peak demand 
        reduction goals.
            (8) Peak period.--The term ``peak period'' means 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.
            (9) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (10) Smart grid.--The term ``Smart Grid'' has the meaning 
        provided by section 1301 of the Energy Independence and 
        Security Act of 2007 (42 U.S.C. 17381).

SEC. 3. ASSESSMENT OF SMART GRID COST EFFECTIVENESS IN PRODUCTS.

    (a) Assessment.--Not later than 1 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) Not later than 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, greenhouse gas 
emission reductions, and electricity cost savings that could accrue for 
each of the products identified by the assessment in subsection (a) in 
the following optimal circumstances:
            (A) The products possessed Smart Grid capability and 
        interoperability that is tested and proven reliable.
            (B) The products were utilized in an electricity utility 
        service area which had Smart Grid capability and offered 
        customers rate or program incentives to use the products.
            (C) The utility's rates reflected national average costs, 
        including average peak and valley seasonal and daily 
        electricity costs.
            (D) Consumers using such products took full advantage of 
        such capability.
            (E) The utility avoided incremental investments and rate 
        increases related to such savings.
    (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 one-half 
of the product's expected useful life 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) is found to be 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 
        of cost effectiveness.
            (B) Assess the potential contributions the development and 
        use of products with Smart Grid technologies bring to reducing 
        peak demand and promoting grid stability.
            (C) Assess the potential national energy savings and 
        electricity cost savings that could be realized if Smart Grid 
        potential were installed in the relevant products reviewed by 
        the Energy Star program.
            (D) Assess and identify options for providing consumers 
        information on products with Smart Grid capabilities, including 
        the necessary conditions for cost-effective savings.
            (E) Submit a report to Congress summarizing the results of 
        the assessment for each class of products, and presenting the 
        potential energy and greenhouse gas savings that could result 
        if Smart Grid capability were installed and utilized on such 
        products.

SEC. 4. INCLUSIONS OF SMART GRID CAPABILITY ON APPLIANCE ENERGY GUIDE 
              LABELS.

    Section 324(a)(2) of the Energy Policy and Conservation Act (42 
U.S.C. 6294(a)(2)) is amended by adding the following at the end:
                    ``(J)(i) Not later than 1 year after the date of 
                enactment of this subparagraph, the Federal Trade 
                Commission shall initiate a rulemaking to consider 
                making a special note in a prominent manner on any 
                ENERGY GUIDE 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 that feature 
                        depended on the Smart Grid capability of the 
                        utility system in which the product was 
                        installed and the active utilization of that 
                        feature by the customer; and
                            ``(III) on a utility system with Smart Grid 
                        capability, the use of the product's Smart Grid 
                        capability could reduce the customer's cost of 
                        the product's annual operation by an estimated 
                        dollar amount range representing the result of 
                        incremental energy and electricity cost savings 
                        that would result from the customer taking full 
                        advantage of such Smart Grid capability.
                    ``(ii) Not later than 3 years after the date of 
                enactment of this subparagraph, the Commission shall 
                complete the rulemaking initiated under clause (i).''.

SEC. 5. SMART GRID PEAK DEMAND REDUCTION GOALS.

    (a) Goals.--Not later than 1 year after the date of enactment of 
this section, each load-serving entity, or, at the option of the State, 
each State with respect to load-serving entities that the State 
regulates, 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 and the Administrator, shall develop and publish, after an 
opportunity for public comment, but not later than 180 days after the 
date of enactment of this section, 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 demand management, as determined 
by the Commission.
    (2) The Commission shall support load-serving entities (including 
any load-serving entities with an applicable baseline of less than 250 
megawatts that volunteer to participate) in determining their 
applicable baselines and in developing their peak demand reduction 
goals.
    (3) The Secretary, in consultation with the Commission, the 
Administrator, and the North American 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, tribal, or regional entity, by that State, 
tribal, 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 North American Electric Reliability Corporation, and other 
relevant authorities.
    (3) In determining the applicable peak demand reduction goals--
            (A) States and other jurisdictional entities may utilize 
        the results of the 2009 National Assessment of Demand Response 
        Potential, as authorized by section 571 of the National Energy 
        Conservation Policy Act (42 U.S.C. 8279); and
            (B) the relative economics of peak demand reduction and 
        generation required to meet peak demand shall be evaluated in a 
        neutral and objective manner.
    (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 2015;
            (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 
        2018; and
            (C) the minimum percentage reductions established as peak 
        demand reduction goals shall be the maximum reductions that are 
        realistically achievable with an aggressive effort to deploy 
        Smart Grid and peak demand reduction technologies and methods, 
        including those listed in subsection (d).
    (d) Plan.--Each load-serving entity shall prepare a peak demand 
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--
                    (A) energy efficiency measures (including efficient 
                transmission wire technologies which significantly 
                reduce line loss compared to traditional wire 
                technology) with reliable and continued application 
                during peak demand periods; or
                    (B) use of a Smart Grid.
            (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 or energy 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 or energy storage under agreement with the 
                owner of that storage.
                    (D) Megawatts committed from dispatchable 
                distributed generation demonstrated to be reliable 
                under peak period conditions and in compliance with air 
                quality regulations.
                    (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 or with 
                a third party pursuant to such agreements.
                    (F) Megawatts from a demonstrated and assured 
                minimum of distributed solar electric generation 
                capacity in instances where peak period and peak demand 
                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 section 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 section 
diminishes or supersedes any authority of a State or political 
subdivision of a State to adopt or enforce any law or regulation 
respecting peak demand management, demand response, distributed energy 
storage, use of distributed generation, or the regulation of load-
serving entities. The Commission, in consultation with States and 
Indian tribes having such peak demand management, demand response, and 
distributed energy storage programs, shall to the extent practicable, 
facilitate coordination between the Federal program and such State and 
tribal 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, not later than 1 year 
after the date of enactment of this Act, establish a public Web site 
where the Commission shall provide information and data demonstrating 
compliance by States, Indian tribes, regional entities, and load-
serving entities with this section, 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 
2015, provide a report to Congress on compliance with this section 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 section, or is not a part of any region or 
group of load-serving entities serving a region that has complied with 
this section.
    (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 such 
        sums as may be necessary to the Commission, the Secretary, and 
        the Administrator to carry out the provisions of this Act.

SEC. 6. REAUTHORIZATION OF ENERGY EFFICIENCY PUBLIC INFORMATION PROGRAM 
              TO INCLUDE SMART GRID INFORMATION.

    (a) In General.--Section 134 of the Energy Policy Act of 2005 (42 
U.S.C. 15832) is amended as follows:
            (1) By amending the section heading to read as follows: 
        ``energy efficiency and smart grid public information 
        initiative''.
            (2) In paragraph (1) of subsection (a), 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 paragraph (2) of subsection (a), 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), by inserting at the beginning of 
        paragraph (3) ``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 subparagraph (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 
        ``2022''.
            (8) In subsection (e) by striking ``2010'' and inserting 
        ``2022''.
    (b) Table of Contents.--The item relating to section 134 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. 134. Energy efficiency and Smart Grid public information 
                            initiative.''.

SEC. 7. INCLUSION OF SMART GRID FEATURES IN APPLIANCE REBATE PROGRAM.

    (a) Amendments.--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 as follows: 
        ``energy efficient and smart appliance rebate program.''.
            (2) By redesignating paragraphs (4) and (5) of subsection 
        (a) as paragraphs (5) and (6), respectively, 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 3 of the Smart Grid Advancement Act of 2013, 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 (42 
        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 ``$100,000,000 for each 
        fiscal year from 2014 through 2019.''.
    (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.''.
                                 <all>
```