II 

115TH CONGRESS 

1ST SESSION S. 1874 

To direct the Secretary of Energy to establish certain demonstration grant 

programs relating to the demonstration of advanced distribution systems, 

smart water heaters, vehicle-to-grid integration, and granular retail electricity pricing, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 27, 2017 

Mr. WYDEN introduced the following bill; which was read twice and referred 

to the Committee on Energy and Natural Resources 

A BILL 

To direct the Secretary of Energy to establish certain demonstration grant programs relating to the demonstration 

of advanced distribution systems, smart water heaters, 

vehicle-to-grid integration, and granular retail electricity 

pricing, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Distributed Energy Demonstration Act of 2017’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows: 


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Sec. 1. Short title; table of contents. 

Sec. 2. Definitions. 

Sec. 3. Advanced distribution system grant program. 

Sec. 4. Smart water heater demonstration program. 

Sec. 5. Vehicle-to-Grid Integration (VGI) Demonstration Grant Program. 

Sec. 6. Granular retail electricity pricing grant program. 

Sec. 7. Federal matching fund for smart grid investment costs. 

Sec. 8. Personal protections for sensitive personal data. 

Sec. 9. General provisions. 

1 SEC. 2. DEFINITIONS. 

2 In this Act: 

3 (1) COMMISSION.—The term ‘‘Commission’’ 

4 means the Federal Energy Regulatory Commission. 

5 (2) DISTRIBUTED ENERGY RESOURCE.— 

6 (A) IN GENERAL.—The term ‘‘distributed 

7 energy resource’’ means an electric device that 

8 can produce or consume energy that is lo9 cated— 

10 (i) on the distribution system or any 

11 subsystem of the distribution system; or 

12 (ii) behind a customer meter. 

13 (B) INCLUSIONS.—The term ‘‘distributed 

14 energy resource’’ includes— 

15 (i) an energy storage resource; 

16 (ii) an energy generation technology; 

17 (iii) a demand response resource; 

18 (iv) an energy efficiency resource; 

19 (v) an electric vehicle and associated 

20 supply equipment and systems; and 


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1 (vi) aggregations and integrated con2 trol systems, including virtual power 

3 plants, microgrids, and networks of 

4 microgrid cells. 

5 (3) ELECTRIC CONSUMER; ELECTRIC UTILITY; 

6 RATE; STATE REGULATORY AUTHORITY.—The terms 

7 ‘‘electric consumer’’, ‘‘electric utility’’, ‘‘rate’’, and 

8 ‘‘State regulatory authority’’ have the meanings 

9 given the terms in section 3 of the Public Utility 

10 Regulatory Policies Act of 1978 (16 U.S.C. 2602). 

11 (4) ENERGY STORAGE.—The term ‘‘energy 

12 storage’’ means equipment or facilities capable of 

13 absorbing energy, storing energy for a period of 

14 time, and dispatching the stored energy, that— 

15 (A) uses mechanical, electrochemical, hy16 droelectric, or thermal processes, as a single fa17 cility or as an aggregation of units, throughout 

18 the electric grid, including behind the meter to 

19 store energy generated at one time for use at 

20 a later time; 

21 (B) uses mechanical, electrochemical, hy22 droelectric, or thermal processes, as a single fa23 cility or as an aggregation of units, throughout 

24 the electric grid, including behind the meter to 

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1 esses that would otherwise be wasted for deliv2 ery at a later time; or 

3 (C) stores thermal energy for direct use for 

4 heating or cooling at a later time in a manner 

5 that avoids the need to use electricity at that 

6 later time. 

7 (5) GRANULAR.—The term ‘‘granular’’, with re8 spect to a rate or other price for electricity, means 

9 that the rate or price is established based on precise 

10 accounting of the value, as determined by the time 

11 and location of the production or consumption of the 

12 electricity and the unique type of energy services 

13 being provided, of electrical energy, capacity, and 

14 ancillary services, including— 

15 (A) time-of-use rates; 

16 (B) peak-time rebates; 

17 (C) critical peak pricing; 

18 (D) real-time pricing; 

19 (E) transactive energy approaches; 

20 (F) inverted time-of-use rates; 

21 (G) forward-looking charges; 

22 (H) peak-coincident capacity network 

23 charges; and 

24 (I) 3-part rates. 


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1 (6) GRID FLEXIBILITY.—The term ‘‘grid flexi2 bility’’ means the ability of a power system— 

3 (A) from an operational perspective, to re4 spond to changes in supply and demand, such 

5 as abrupt changes in load conditions or sharp 

6 ramps in generation; and 

7 (B) from a long-term planning and invest8 ment perspective, to respond to changes in tech9 nology, markets and policy, without incurring 

10 stranded assets. 

11 (7) IOT.—The term ‘‘IoT’’ means a set of tech12 nologies (including endpoint devices, such as sensors, 

13 actuators, management systems, user interfaces, ve14 hicles, machinery, and household appliances) that— 

15 (A) are linked via communication networks 

16 to enable advanced control and valuable serv17 ices; and 

18 (B) may provide real-time information and 

19 actionable analytics, as appropriate. 

20 (8) LIGHT-DUTY CONSUMER VEHICLE.—The 

21 term ‘‘light-duty consumer vehicle’’ has the meaning 

22 given the term ‘‘light-duty vehicle’’ in section 

23 1037.801 of title 40, Code of Federal Regulations 

24 (as in effect on the date of enactment of this Act). 


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1 (9) MICROGRID.—The term ‘‘microgrid’’ means 

2 a localized grid that can disconnect from the tradi3 tional grid to operate autonomously and help miti4 gate grid disturbances to strengthen grid resilience. 

5 (10) NATIONAL LABORATORY.—The term ‘‘Na6 tional Laboratory’’ has the meaning given the term 

7 in section 2 of the Energy Policy Act of 2005 (42 

8 U.S.C. 15801). 

9 (11) SECRETARY.—The term ‘‘Secretary’’ 

10 means the Secretary of Energy. 

11 (12) TRANSIT AGENCY.—The term ‘‘transit 

12 agency’’ has the meaning given the term in section 

13 630.3 of title 49, Code of Federal Regulations (as 

14 in effect on the date of enactment of this Act). 

15 (13) TRANSIT VEHICLE.—The term ‘‘transit ve16 hicle’’ has the meaning given the term ‘‘bus’’ in sec17 tion 1192.3 of title 36, Code of Federal Regulations 

18 (as in effect on the date of enactment of this Act). 

19 SEC. 3. ADVANCED DISTRIBUTION SYSTEM GRANT PRO20 GRAM. 

21 (a) DEFINITIONS.—In this section: 

22 (1) ELIGIBLE ENTITY.—The term ‘‘eligible enti23 ty’’ means an electric utility, such as— 

24 (A) an investor-owned electric utility; 

25 (B) a publicly owned utility; and 


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1 (C) an electric cooperative. 

2 (2) PROGRAM.—The term ‘‘program’’ means 

3 the program established under subsection (b). 

4 (b) ESTABLISHMENT.—The Secretary shall establish 

5 a program under which the Secretary shall provide grants 

6 to support projects designed to advance the integration 

7 and optimization of distributed energy resources. 

8 (c) APPLICATIONS AND SELECTION.— 

9 (1) IN GENERAL.—To be eligible to receive a 

10 grant under this section, an eligible entity shall sub11 mit to the Secretary an application at such time, in 

12 such manner, and containing such information as 

13 the Secretary determines to be appropriate, includ14 ing— 

15 (A) an interoperability plan for the pro16 posed project; 

17 (B) a cybersecurity plan for the proposed 

18 project; 

19 (C) a privacy plan for the proposed 

20 project, including a provision relating to— 

21 (i) the protection of the privacy of in22 dividual customer information; 

23 (ii) the secure storage, handling, and 

24 destruction of data; and 


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1 (iii) the access of energy use data by 

2 third parties; 

3 (D) the anticipated benefits of the pro4 posed project, from a business perspective and 

5 the perspective of the customer; 

6 (E) for a project proposed by an investor7 owned electric utility, a formal approval of the 

8 project from the regulatory body of jurisdiction, 

9 such as a State public utility commission; and 

10 (F) an assurance that, as a condition of 

11 receiving the grant, the eligible entity will par12 ticipate in a working group in accordance with 

13 section 9(a), including with respect to prepara14 tion of the report under section 9(b). 

15 (2) PRIORITY.—In selecting recipients of grants 

16 under this section, the Secretary shall give priority 

17 to— 

18 (A) a proposed project that is submitted by 

19 a multiutility partnership with a diverse cus20 tomer profile; 

21 (B) a proposed project that is submitted 

22 by a partnership that includes at least 1 Na23 tional Laboratory or institution of higher edu24 cation; 


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1 (C) a proposed project that promotes edu2 cation and training in disciplines that are es3 sential for distribution system development, as 

4 determined by the Secretary; and 

5 (D) a proposed project that proposes a 

6 scaled deployment strategy for the technology 

7 and systems of the project, with an emphasis on 

8 achieving adoption of a standard for, and inter9 operability among several manufacturers of, de10 vices that create grid flexibility. 

11 (d) PROGRAM GOALS.—The goals of the program 

12 are— 

13 (1) to demonstrate innovative and cost-effective 

14 techniques for the integration and optimization of 

15 distributed energy resources, including microgrid 

16 and networked microgrid systems; 

17 (2) to develop highly flexible, configurable, and 

18 interactive networks of utility, customer, and third19 party systems with an IoT community enabling 

20 framework; 

21 (3) to inform the creation of standards and reg22 ulations; and 

23 (4) to increase regulatory and utility confidence 

24 in technologies and systems that are instrumental to 


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1 the integration and optimization of distributed en2 ergy resources, including integrated energy systems. 

3 (e) USE OF FUNDS.—A grant provided under this 

4 section may be used for any project that implements meas5 ures to advance the integration and optimization of dis6 tributed energy resources, as determined by the Secretary, 

7 including a project— 

8 (1) on advanced voltage control or optimization 

9 systems; 

10 (2) addressing dynamic protection schemes to 

11 manage reverse power flows, communications, sen12 sors, energy storage, switching, and smart-inverter 

13 networks; 

14 (3) on advanced distribution management sys15 tems, such as automated substations; 

16 (4) on cybersecurity technologies and applica17 tions; 

18 (5) supporting nonrecurring engineering costs 

19 of adoption and implementation, among multiple 

20 manufacturers of grid-connected devices, of stand21 ards that enhance interoperability and connectivity 

22 on electricity systems; and 

23 (6) for manufacturers of grid-connected devices 

24 or electric utilities to establish full-time positions to 


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1 design and implement technologies that promote grid 

2 flexibility. 

3 (f) AUTHORIZATION OF APPROPRIATIONS.—There is 

4 authorized to be appropriated to carry out this section 

5 $50,000,000, to remain available for a period of 10 years 

6 following the fiscal year for which the amounts were ap7 propriated. 

8 SEC. 4. SMART WATER HEATER DEMONSTRATION PRO9 GRAM. 

10 (a) DEFINITIONS.—In this section: 

11 (1) ELIGIBLE ENTITY.—The term ‘‘eligible enti12 ty’’ means— 

13 (A) an electric utility; and 

14 (B) a retail service provider of electricity. 

15 (2) PROGRAM.—The term ‘‘program’’ means 

16 the demonstration program established under sub17 section (b)(1). 

18 (b) DEMONSTRATION PROGRAM.— 

19 (1) ESTABLISHMENT.—Not later than 1 year 

20 after the date of enactment of this Act, the Sec21 retary, in consultation with the Director of the Na22 tional Science Foundation, shall establish a dem23 onstration program under which the Secretary shall 

24 provide grants to eligible entities to carry out 


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1 projects for the design and production of smart 

2 water heater optimization programs. 

3 (2) PROGRAM GOALS.—The goals of the pro4 gram are— 

5 (A) to demonstrate large-scale implementa6 tion of smart water heaters as an energy stor7 age resource used on a regular basis as part of 

8 grid operation to improve the operational effi9 ciency of the electric grid; 

10 (B) to demonstrate control of water heat11 ers to compensate for the intermittent nature of 

12 renewable energy resources; 

13 (C) to diminish the market barriers to the 

14 broad adoption of smart water heaters; 

15 (D) to provide funding to address non16 recurring engineering costs; and 

17 (E) to demonstrate best practices for— 

18 (i) customer participation and satis19 faction; and 

20 (ii) maximizing customer benefits. 

21 (3) APPLICATIONS.— 

22 (A) IN GENERAL.—To be eligible to receive 

23 a grant under the program, an eligible entity 

24 shall submit to the Secretary an application at 

25 such time, in such manner, and containing such 


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1 information as the Secretary may require, in2 cluding a proposal described in subparagraph 

3 (B). 

4 (B) PROPOSAL REQUIREMENTS.— 

5 (i) IN GENERAL.—An eligible entity 

6 shall submit as part of the application 

7 under subparagraph (A) a proposal that— 

8 (I) demonstrates that the eligible 

9 entity will closely collaborate with one 

10 or more manufacturers of water heat11 ers or water heater control equipment 

12 to coordinate sales and marketing 

13 across distribution channels; 

14 (II) defines a specific geo15 graphical area in which the smart 

16 water heaters will be available and in 

17 operation for a period of not less than 

18 1 year, but ideally for the full useful 

19 life of the smart water heaters; 

20 (III) demonstrates that the one 

21 or more participating manufacturers 

22 of water heaters or water heater con23 trol equipment identified under sub24 clause (I) support the standards de25 scribed in clause (ii); 


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1 (IV) includes the stated intent 

2 and plan of the eligible entity to main3 tain the project after the program 

4 ends; 

5 (V) demonstrates the ability to 

6 execute control events on not fewer 

7 than 120 days per calendar year; 

8 (VI) stipulates a plan for increas9 ing the number of smart water heat10 ers on the electric grid, including by 

11 retrofitting existing hot water heaters 

12 with controls; and 

13 (VII) includes— 

14 (aa) an interoperability plan 

15 for the proposed project; 

16 (bb) a cybersecurity plan for 

17 the proposed project; 

18 (cc) a privacy plan for the 

19 proposed project, including a pro20 vision relating to the protection 

21 of the privacy of individual cus22 tomer information, the secure 

23 storage, handling, and destruc24 tion of data, and the access of 


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1 energy use data by third parties; 

2 and 

3 (dd) a formal approval of 

4 the project from the regulatory 

5 body of jurisdiction, such as a 

6 State public utility commission. 

7 (ii) STANDARDS DESCRIBED.—With 

8 respect to a water heater produced or ret9 rofitted under a project receiving a grant 

10 under the program, the standards referred 

11 to in clause (i)(III) are the following: 

12 (I) Water heaters or retrofit de13 vices shall have— 

14 (aa) an ANSI/CTA–2045 

15 communication interface; or 

16 (bb) a communication inter17 face using a standard or speci18 fication for a nonproprietary 

19 communication interface from a 

20 recognized standards-based orga21 nization. 

22 (II) Water heaters shall support 

23 one or more standard application pro24 tocols, such as— 

25 (aa) OpenADR; 


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1 (bb) IEEE 2030.5; or 

2 (cc) the CTA–2045 applica3 tion layer. 

4 (4) GEOGRAPHICAL REQUIREMENT.—The Sec5 retary shall provide grants under the program to eli6 gible entities carrying out projects in diverse geo7 graphical regions of the United States to ensure that 

8 projects are carried out in service territories with di9 verse utility business models. 

10 (5) AMOUNT OF GRANT.—The amount of a 

11 grant provided to an eligible entity under the pro12 gram for a project shall be not less than $500,000 

13 and not more than $10,000,000. 

14 (c) AUTHORIZATION OF APPROPRIATIONS.—There is 

15 authorized to be appropriated to carry out this section 

16 $50,000,000, to remain available for a period of 10 years 

17 following the fiscal year for which the amounts were ap18 propriated. 

19 SEC. 5. VEHICLE-TO-GRID INTEGRATION (VGI) DEMONSTRA20 TION GRANT PROGRAM. 

21 (a) DEFINITIONS.—In this section: 

22 (1) ELIGIBLE ENTITY.—The term ‘‘eligible enti23 ty’’ means— 

24 (A) an electric utility; 


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1 (B) a private commercial entity, including 

2 vehicle manufacturers; 

3 (C) an institution of higher education; 

4 (D) a unit of State or local government; 

5 (E) a nonprofit organization; and 

6 (F) a National Laboratory. 

7 (2) PROGRAM.—The term ‘‘program’’ means 

8 the vehicle-to-grid demonstration grant program es9 tablished under subsection (b)(1). 

10 (b) ESTABLISHMENT OF PROGRAM.— 

11 (1) IN GENERAL.—Not later than 1 year after 

12 the date of enactment of this Act, the Secretary, in 

13 cooperation with the Secretary of Transportation, 

14 shall establish a vehicle-to-grid integration dem15 onstration grant program of research, development, 

16 and demonstration activities— 

17 (A) to advance the co-optimization of elec18 trified transportation and electricity systems, 

19 including by identifying ways to increase the re20 silience, efficiency, and environmental perform21 ance of the electric grid and the transportation 

22 system; 

23 (B) to advance the technical understanding 

24 of— 


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1 (i) the manner in which vehicle charg2 ing systems are controlled and optimized, 

3 including by advancing vehicle and charg4 ing station telemetry and embedded me5 trology; and 

6 (ii) the practices of transmitting se7 cure data over the Internet, a utility sys8 tem, or other mechanism, with a means for 

9 implementation, such as a standard; 

10 (C) to optimize electric vehicles for the in11 tegration of renewable energy technologies and 

12 the reduction of greenhouse gases and other 

13 pollutants; 

14 (D) to investigate the technical, economic, 

15 and legal details of using fleet, transit, and mu16 nicipal vehicle batteries for a range of electric 

17 grid services, including— 

18 (i) demand response; 

19 (ii) frequency regulation and other an20 cillary services; and 

21 (iii) energy output, or full-scale vehi22 cle-to-electric grid, operations; 

23 (E) to investigate the co-optimization of 

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1 vancements in autonomous vehicles and the use 

2 of vehicles for ride sharing, including by— 

3 (i) studying consumer participation 

4 and other behavioral challenges, including 

5 incentives that promote co-optimization; 

6 and 

7 (ii) researching challenges and oppor8 tunities relating to the optimization of elec9 tric grid operations in the context of au10 tonomous vehicle and ride-sharing usage 

11 patterns, including the use of energy stor12 age in charging systems; 

13 (F) to investigate, in collaboration with the 

14 Commission, approaches to the aggregation, 

15 wholesale electricity marketing, and, to the 

16 maximum extent practicable, retail electricity 

17 marketing of electric grid services provided by 

18 electric vehicles, including research into the use 

19 of transactive energy systems as a means of en20 abling vehicle-electric grid integration; 

21 (G) to implement innovative consumer 

22 marketing and contracting models, including 

23 pricing approaches (including consumer access 

24 to wholesale market pricing signals), that co-op25 timize transportation benefits and electric grid 


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1 benefits, including by maximizing the value of 

2 the vehicle services to the electric grid while 

3 also maximizing value to the consumer (includ4 ing by maximizing the flexibility of use of the 

5 vehicle to the driver or rider); 

6 (H) to investigate and implement user7 friendly electric vehicle and related equipment 

8 financing models linked to the marketing of 

9 electric grid services, including the means by 

10 which the electric grid services provided by an 

11 electric vehicle can help finance the cost of the 

12 vehicle; 

13 (I) to investigate and implement programs 

14 to improve the access to, and affordability of, 

15 electric vehicles for low-income populations; 

16 (J)(i) to advance best practices for manu17 facturers of electric vehicles, charging equip18 ment, and systems; and 

19 (ii) to embed those practices in programs 

20 and grant opportunities of the Department of 

21 Energy to leverage competitive market electric 

22 vehicle products and incentivize more rapid and 

23 widespread adoption; 


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1 (K) to assist electric utilities and transit 

2 agencies in collaboratively planning an elec3 trified fleet; 

4 (L) to investigate the use of fleet, transit, 

5 and municipal vehicle batteries as power 

6 sources for community shelter facilities during 

7 emergencies; 

8 (M) to develop analytical tools and finan9 cial models to assist electric utilities and transit 

10 agencies in assessing electric utility and infra11 structure requirements to support selected tran12 sit vehicle technologies and charging profiles, 

13 including analytic tools— 

14 (i) to optimize the total cost of owner15 ship; 

16 (ii) to develop electrification route 

17 maps and transition plans, with quan18 titative estimates of the population-weight19 ed reductions in pollutant exposure from 

20 electrification of specific routes, including 

21 criteria pollutants and new pollutants of 

22 concern; and 

23 (iii) to articulate the strategy and 

24 timelines for transitioning to zero-emission 

25 vehicles; 


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1 (N) to investigate scenarios for the sharing 

2 of battery assets for the purpose of maximizing 

3 cost-performance and battery use, including— 

4 (i) scenarios that optimize shared 

5 usage between transit agencies and electric 

6 utilities over the lifecycle of the battery; 

7 (ii) incentives for an entity (such as 

8 an electric utility) to provide funding to re9 duce initial premium costs by— 

10 (I) owning the battery of a tran11 sit agency transit vehicle; and 

12 (II) charging the battery using 

13 smart charging; and 

14 (iii) enabling the entity to reposition 

15 the battery into stationary use after the 

16 battery has served the expected life of the 

17 battery in mobility use; 

18 (O) to develop a methodology for modeling 

19 load increases expected from electrifying the 

20 transportation sector; and 

21 (P) to investigate the deployment of elec22 tric vehicle technologies and charging infra23 structure within scalable and integrated energy 

24 management systems as part of community en25 ergy infrastructure development. 


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1 (2) CONSULTATION.—As soon as practicable 

2 after the date of enactment of this Act, in carrying 

3 out the activities under paragraph (1), the Secretary 

4 shall consult with stakeholders, including— 

5 (A) vehicle manufacturers, including— 

6 (i) manufacturers of light-, medium-, 

7 and heavy-duty vehicles; and 

8 (ii) transit vehicle manufacturers; 

9 (B) electric utilities, such as investor10 owned electric utilities, publicly owned electric 

11 utilities, and electric cooperatives; 

12 (C) third-party energy service providers; 

13 (D) transit agencies; 

14 (E) fleet operators; 

15 (F) private companies, including energy 

16 technology manufacturers and battery manufac17 turers; 

18 (G) other Federal agencies; 

19 (H) the National Laboratories; 

20 (I) States; 

21 (J) tribal governments; 

22 (K) units of local government; 

23 (L) nonprofit organizations; 

24 (M) institutions of higher education; 


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1 (N) electric vehicle supply equipment and 

2 charging infrastructure manufacturers; and 

3 (O) battery manufacturers. 

4 (3) REQUIREMENT.—The program shall include 

5 grants for projects relating to— 

6 (A) light-duty consumer vehicles; 

7 (B) fleet and municipal vehicles; and 

8 (C) transit vehicles. 

9 (c) APPLICATIONS.— 

10 (1) IN GENERAL.—To be eligible to receive a 

11 grant under the program, an eligible entity shall 

12 submit to the Secretary an application at such time, 

13 in such manner, and containing such information as 

14 the Secretary may require, including a commitment 

15 by the eligible entity to participate in a working 

16 group in accordance with section 9(a) relating to 

17 light-duty consumer vehicles or fleet and municipal 

18 vehicles and transit vehicles, as appropriate. 

19 (2) PROPOSAL REQUIREMENTS.—An eligible en20 tity shall submit as part of the application required 

21 under paragraph (1) a proposal that includes— 

22 (A) an interoperability plan for the pro23 posed project; 

24 (B) a cybersecurity plan for the proposed 

25 project; 


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1 (C) a privacy plan for the proposed 

2 project, including a provision relating to— 

3 (i) the protection of the privacy of in4 dividual customer information; 

5 (ii) the secure storage, handling, and 

6 destruction of data; and 

7 (iii) the access of energy use data by 

8 third parties; and 

9 (D) a plan for leveraging existing market 

10 product offerings. 

11 (d) AUTHORIZATION OF APPROPRIATIONS.— 

12 (1) IN GENERAL.—There are authorized to be 

13 appropriated to carry out this section— 

14 (A) for projects relating to light-duty con15 sumer vehicles, $20,000,000; and 

16 (B) for projects relating to fleet and mu17 nicipal vehicles and transit vehicles, 

18 $20,000,000. 

19 (2) AVAILABILITY.—Amounts made available 

20 under paragraph (1) shall remain available for a pe21 riod of 10 years following the fiscal year for which 

22 the amounts were appropriated. 

23 SEC. 6. GRANULAR RETAIL ELECTRICITY PRICING GRANT 

24 PROGRAM. 

25 (a) DEFINITIONS.—In this section: 


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1 (1) ELIGIBLE ENTITY.—The term ‘‘eligible enti2 ty’’ means an electric utility, such as— 

3 (A) an investor-owned electric utility; 

4 (B) a publicly owned utility; and 

5 (C) an electric cooperative. 

6 (2) PROGRAM.—The term ‘‘program’’ means 

7 the granular retail electricity pricing grant program 

8 established under subsection (b)(1). 

9 (b) ESTABLISHMENT.— 

10 (1) IN GENERAL.—The Secretary shall establish 

11 a program under which the Secretary shall provide 

12 grants to support projects described in subsection 

13 (d) for the voluntary deployment of granular retail 

14 electricity pricing, with the goal of producing more 

15 efficient economic signals for transactions conducted 

16 on the electric grid. 

17 (2) REQUIREMENT.—In developing the pro18 gram, the Secretary shall take into consideration les19 sons learned from granular electricity pricing dem20 onstration and pilot projects, if any. 

21 (c) APPLICATION AND SELECTION.— 

22 (1) IN GENERAL.—To be eligible to receive a 

23 grant under the program, an eligible entity shall 

24 submit to the Secretary an application at such time, 

25 in such manner, and containing such information as 


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1 the Secretary determines to be appropriate, includ2 ing— 

3 (A) a description of the granular pricing 

4 mechanisms to be implemented; 

5 (B) a description of any enabling tech6 nology proposed to be used by the eligible enti7 ty, which shall include, at a minimum, advanced 

8 metering infrastructure; 

9 (C) the stated intent and plan of the eligi10 ble entity to maintain scaled and sustained im11 plementation of the granular rate structure 

12 after the program ends; 

13 (D) a description of a consumer engage14 ment and retention strategy; and 

15 (E) if the eligible entity is an electric util16 ity or an electricity retailer, a formal approval 

17 of the project from the regulatory body of juris18 diction, such as a State public utility commis19 sion. 

20 (2) PRIORITY.—In awarding grants under the 

21 program, the Secretary shall give priority to pro22 posed projects that— 

23 (A) implement— 

24 (i) transactive energy systems; or 


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1 (ii) systems of real-time pricing, in 

2 which prices are transmitted directly to de3 vices; and 

4 (B) maximize the use and incorporation of 

5 technologies that create grid flexibility. 

6 (d) USE OF FUNDS.—A grant provided under the 

7 program may be used for any project that implements 

8 granular retail rates, including a project— 

9 (1) to offset revenue-neutrality requirements es10 tablished by an applicable State regulatory author11 ity; 

12 (2) to study consumer behavior in response to 

13 implemented granular retail electricity pricing; or 

14 (3) to educate and engage consumers regarding 

15 rate design innovation, including by providing tech16 nical assistance and opportunities for comment. 

17 (e) AUTHORIZATION OF APPROPRIATIONS.—There is 

18 authorized to be appropriated to carry out this section 

19 $50,000,000, to remain available for a period of 10 years 

20 following the fiscal year for which the amounts were ap21 propriated. 


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1 SEC. 7. FEDERAL MATCHING FUND FOR SMART GRID IN2 VESTMENT COSTS. 

3 (a) PURPOSE.—The purpose of this section is to sup4 port the continued deployment of advanced metering infra5 structure and other technologies. 

6 (b) IMPROVEMENTS TO FEDERAL MATCHING

7 FUND.—Section 1306 of the Energy Independence and 

8 Security Act of 2007 (42 U.S.C. 17386) is amended— 

9 (1) in subsection (e)(1)— 

10 (A) in the matter preceding subparagraph 

11 (A), by striking ‘‘within 60 days after the en12 actment of the American Recovery and Rein13 vestment Act of 2009’’ and inserting ‘‘not later 

14 than 60 days after the date of enactment of the 

15 DEMO Act’’; 

16 (B) in subparagraph (D), by striking 

17 ‘‘and’’ at the end; 

18 (C) in subparagraph (E), by striking the 

19 period at the end and inserting ‘‘; and’’; and 

20 (D) by adding at the end the following: 

21 ‘‘(F) require as a condition of receiving 

22 funding under this section that the recipient of 

23 a grant shall submit to the Secretary— 

24 ‘‘(i) an interoperability plan described 

25 in subsection (f)(1); and 


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1 ‘‘(ii) not later than 5 years after the 

2 date on which the recipient first receives 

3 funding under this section, an interoper4 ability report described in subsection 

5 (f)(2).’’; 

6 (2) by redesignating subsection (f) as sub7 section (g); 

8 (3) by inserting after subsection (e) the fol9 lowing: 

10 ‘‘(f) INTEROPERABILITY PLAN AND REPORT.— 

11 ‘‘(1) INTEROPERABILITY PLAN.—An interoper12 ability plan referred to in subsection (e)(1)(F)(i) 

13 shall include— 

14 ‘‘(A) a demonstrated set of use cases; 

15 ‘‘(B) a plan for facilitating interaction be16 tween the project of the grant recipient and the 

17 projects of not less than 3 other parties to dem18 onstrate how the project may work with the 

19 projects of other parties; 

20 ‘‘(C) a protocol for measuring and 

21 verifying interoperability performance; 

22 ‘‘(D) a methodology for evaluating overall 

23 interoperability maturity, including the applica24 tion, if appropriate, of an interoperability matu25 rity model; 


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1 ‘‘(E) a list of deployed standards; and 

2 ‘‘(F) the integration and testing ap3 proaches for the project to ensure interoper4 ability. 

5 ‘‘(2) INTEROPERABILITY REPORT.—An inter6 operability report referred to in subsection 

7 (e)(1)(F)(ii) shall include a description of a discus8 sion, an analysis, data, or a combination thereof re9 lating to— 

10 ‘‘(A) the performance of the demonstrated 

11 set of use cases described in paragraph (1)(A); 

12 ‘‘(B) the interaction between the project of 

13 the grant recipient and the projects of not less 

14 than 3 other parties, as described in paragraph 

15 (1)(B); 

16 ‘‘(C) costs and benefits to— 

17 ‘‘(i) consumers; 

18 ‘‘(ii) electric utilities; 

19 ‘‘(iii) appliance manufacturers; 

20 ‘‘(iv) grid operators; and 

21 ‘‘(v) other parties that the Secretary 

22 determines are relevant; and 

23 ‘‘(D) performance, if appropriate, accord24 ing to an interoperability maturity model, as 

25 described in paragraph (1)(D).’’; and 


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1 (4) in subsection (g) (as redesignated by para2 graph (2)), by striking ‘‘2012’’ and inserting 

3 ‘‘2025’’. 

4 SEC. 8. PRIVACY. 

5 (a) PROTECTING PRIVACY AND SECURITY.—In car6 rying out this Act, the Secretary, the Administrator of the 

7 Energy Information Administration, and the Secretary of 

8 Homeland Security shall identify, incorporate, and follow 

9 best practices for protecting the privacy of individuals and 

10 businesses and the respective sensitive data of the individ11 uals and businesses, including by managing privacy risk 

12 and implementing the Fair Information Practice Prin13 ciples of the Federal Trade Commission for the collection, 

14 use, disclosure, and retention of individual electric con15 sumer information in accordance with the Office of Man16 agement and Budget Circular A–130 (or successor circu17 lars). 

18 (b) PERSONAL PROTECTIONS FOR SENSITIVE PER19 SONAL DATA.—No Federal entity shall request the cre20 ation, recording, or collection of data identified to an indi21 vidual person as a result of this Act. 

22 (c) LAW ENFORCEMENT REQUIREMENTS.— 

23 (1) DEFINITIONS.—In this subsection: 

24 (A) GOVERNMENTAL ENTITY.—The term 

25 ‘‘governmental entity’’ has the meaning given 


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1 that term in section 2711 of title 18, United 

2 States Code. 

3 (B) JUDGE OF COMPETENT JURISDICTION; 

4 STATE.—The terms ‘‘judge of competent juris5 diction’’ and ‘‘State’’ have the meanings given 

6 such terms in section 2510 of title 18, United 

7 States Code. 

8 (2) CONSUMER INFORMATION.—A govern9 mental entity may obtain from an electric utility, 

10 third-party aggregator, or other nongovernmental 

11 entity under an administrative subpoena authorized 

12 by a Federal or State statute or a Federal or State 

13 grand jury or trial subpoena the— 

14 (A) name of an electric consumer; 

15 (B) address of an electric consumer; 

16 (C) length of service (including start date) 

17 of, and types of service used by, an electric con18 sumer; and 

19 (D) means and source of payment for such 

20 service (including any credit card or bank ac21 count number) of an electric consumer. 

22 (3) ELECTRIC USAGE INFORMATION.—A gov23 ernmental entity may only require the disclosure by 

24 an electric utility, third-party aggregator, or other 

25 nongovernmental entity of information regarding the 


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1 use of electricity by an electric consumer (including 

2 monthly usage data, data at a greater level of detail 

3 or specificity, and information about electric use by 

4 specific appliances) pursuant to a warrant issued 

5 based on probable cause, using the procedures de6 scribed in the Federal Rules of Criminal Procedure 

7 (or, in the case of a State court, issued using State 

8 warrant procedures) by a court of competent juris9 diction. 

10 (4) NOTICE.— 

11 (A) IN GENERAL.—Not later than 30 days 

12 after obtaining a warrant for electric usage in13 formation described in paragraph (3), a govern14 mental entity shall notify each electric con15 sumer whose information was obtained. 

16 (B) DELAY OF NOTICE.— 

17 (i) IN GENERAL.—Upon application 

18 by a governmental entity, a judge of com19 petent jurisdiction may issue an order au20 thorizing the governmental entity to delay 

21 notice under subparagraph (A) for a period 

22 of not more than 180 days if the judge 

23 finds reason to believe notifying the elec24 tric consumer of the order will result in— 


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1 (I) endangering the life or phys2 ical safety of an individual; 

3 (II) flight from prosecution; 

4 (III) destroying of or tampering 

5 with evidence; 

6 (IV) intimidation of potential wit7 nesses; or 

8 (V) otherwise seriously jeopard9 izing an investigation or unduly delay10 ing a trial. 

11 (ii) UNLIMITED RENEWALS.—Upon 

12 application by a governmental entity, a 

13 judge of competent jurisdiction may renew 

14 an order delaying notice under clause (i) 

15 for additional periods of not longer than 

16 180 days if the judge makes a finding de17 scribed in clause (ii). 

18 (5) SUPPRESSION.—Any electric usage informa19 tion described in paragraph (3), or evidence directly 

20 or indirectly derived from such information, may not 

21 be received in evidence in any trial, hearing, or other 

22 proceeding in or before any court, grand jury, de23 partment, officer, agency, regulatory body, legislative 

24 committee, or other authority of the United States, 

25 a State, or a political subdivision thereof if the obVerDate Sep 11 2014 23:08 Oct 02, 2017 Jkt 079200 PO 00000 Frm 00035 Fmt 6652 Sfmt 6201 E:\BILLS\S1874.IS S1874

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1 taining of the information was not conducted in ac2 cordance with this subsection. 

3 (6) REPORTING.— 

4 (A) BY GOVERNMENTAL ENTITIES.—In 

5 January of each year, each governmental entity 

6 shall submit to the Administrative Office of the 

7 United States Courts information regarding any 

8 warrant described in paragraph (3) that was 

9 sought or obtained by the governmental entity 

10 during the previous year, including— 

11 (i) the number of warrants described 

12 in paragraph (3) sought by the govern13 mental entity; 

14 (ii) the number of warrants described 

15 in paragraph (3) obtained by the govern16 mental entity; and 

17 (iii) for each warrant described in 

18 paragraph (3) sought or obtained by the 

19 governmental entity— 

20 (I) the offense specified in the 

21 application; and 

22 (II) the identity of the officer ap23 plying for the warrant. 

24 (B) REPORT TO CONGRESS.—As part of 

25 the report submitted under section 2519(3) of 


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1 title 18, United States Code, the Administrative 

2 Office of the United States Courts shall provide 

3 to Congress, with respect to the previous year— 

4 (i) the number of warrants described 

5 in paragraph (3) sought by governmental 

6 entities; 

7 (ii) the number of warrants described 

8 in paragraph (3) obtained by governmental 

9 entities; and 

10 (iii) a summary and analysis of the 

11 data required to be filed with the Adminis12 trative Office under subparagraph (A). 

13 SEC. 9. GENERAL PROVISIONS. 

14 (a) WORKING GROUP.— 

15 (1) ESTABLISHMENT.—For each grant program 

16 established under this Act, the Secretary shall estab17 lish a working group to be composed of representa18 tives of each project selected to receive a grant 

19 under this Act. 

20 (2) MEETINGS.—The working groups estab21 lished under paragraph (1) shall meet not less fre22 quently than once every 180 days. 

23 (3) PARTICIPATION REQUIRED.—As a condition 

24 of receiving a grant under this Act, the recipient 

25 shall designate a representative of the relevant 


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1 project to serve as a member of the working group 

2 under this subsection, including by attending each 

3 meeting of the working group described under para4 graph (2). 

5 (b) REPORTS.— 

6 (1) GRANT RECIPIENT REPORT.—Not later 

7 than 18 months after the date on which a grant is 

8 first provided to an eligible entity under a grant pro9 gram established under this Act, the eligible entity 

10 shall submit to the Secretary a report describing the 

11 results of the project, including information on— 

12 (A) technical findings from the project, in13 cluding— 

14 (i) cost savings; 

15 (ii) the cybersecurity implications of 

16 implementing the project; 

17 (iii) customer participation and satis18 faction; 

19 (iv) any customer benefits realized as 

20 a result of the program; and 

21 (v) environmental performance; 

22 (B) an accounting of project costs; and 

23 (C) a description of how project findings 

24 will be implemented in the future. 


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1 (2) REPORTS TO CONGRESS.—Not later than 2 

2 years after the date on which the initial grants are 

3 provided under each program established under this 

4 Act, the Secretary shall submit to the appropriate 

5 committees of Congress a separate report relating to 

6 each program, including information such as— 

7 (A) the technical findings of the program; 

8 (B) the number of projects undertaken; 

9 (C) an analysis of costs and benefits of im10 plementing the program; and 

11 (D) the total amount of funds distributed 

12 under the program, including a breakdown by 

13 State and by service territory. 

14 (c) COST-SHARE.—The Federal share of the cost of 

15 a project that receives a grant under a program estab16 lished under this Act shall not exceed 50 percent of the 

17 total cost of the project. 

Æ 


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