II 

117TH CONGRESS 

1ST SESSION S. 2318 

To amend the Public Utility Regulatory Policies Act of 1978 to require 

the consideration of a standard for promoting the use of demand-response 

technology and practices, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 13, 2021 

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

to the Committee on Energy and Natural Resources 

A BILL 

To amend the Public Utility Regulatory Policies Act of 1978 

to require the consideration of a standard for promoting 

the use of demand-response technology and practices, 

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. 

4 This Act may be cited as the ‘‘Demand-Response 

5 Management Act of 2021’’. 


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1 SEC. 2. PURPOSE. 

2 The purpose of this Act is to promote the use of de3 mand-response technology and practices that support grid 

4 resiliency and reliability during extreme weather events. 

5 SEC. 3. PROMOTION OF DEMAND-RESPONSE PRACTICES. 

6 (a) CONSIDERATION OF DEMAND-RESPONSE STAND7 ARD.— 

8 (1) IN GENERAL.—Section 111(d) of the Public 

9 Utility Regulatory Policies Act of 1978 (16 U.S.C. 

10 2621(d)) is amended by adding at the end the fol11 lowing: 

12 ‘‘(20) DEMAND-RESPONSE PRACTICES.— 

13 ‘‘(A) IN GENERAL.—Each electric utility 

14 shall promote the use of demand-response prac15 tices by commercial, residential, and industrial 

16 consumers to reduce electricity consumption 

17 during periods of unusually high demand. 

18 ‘‘(B) RATE RECOVERY.— 

19 ‘‘(i) IN GENERAL.—Each State regu20 latory authority shall consider establishing 

21 rate mechanisms allowing an electric utility 

22 with respect to which the State regulatory 

23 authority has ratemaking authority to 

24 timely recover the costs of promoting de25 mand-response practices in accordance 

26 with subparagraph (A). 


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1 ‘‘(ii) NONREGULATED ELECTRIC UTIL2 ITIES.—A nonregulated electric utility may 

3 establish rate mechanisms for the timely 

4 recovery of the costs of promoting demand5 response practices in accordance with sub6 paragraph (A).’’. 

7 (2) COMPLIANCE.— 

8 (A) TIME LIMITATIONS.—Section 112(b) 

9 of the Public Utility Regulatory Policies Act of 

10 1978 (16 U.S.C. 2622(b)) is amended by add11 ing at the end the following: 

12 ‘‘(7)(A) Not later than 1 year after the date of 

13 enactment of this paragraph, each State regulatory 

14 authority (with respect to each electric utility for 

15 which the State has ratemaking authority) and each 

16 nonregulated electric utility shall commence consid17 eration under section 111, or set a hearing date for 

18 consideration, with respect to the standard estab19 lished by paragraph (20) of section 111(d). 

20 ‘‘(B) Not later than 2 years after the date of 

21 enactment of this paragraph, each State regulatory 

22 authority (with respect to each electric utility for 

23 which the State has ratemaking authority), and each 

24 nonregulated electric utility shall complete the con25 sideration and make the determination under section 


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1 111 with respect to the standard established by 

2 paragraph (20) of section 111(d).’’. 

3 (B) FAILURE TO COMPLY.— 

4 (i) IN GENERAL.—Section 112(c) of 

5 the Public Utility Regulatory Policies Act 

6 of 1978 (16 U.S.C. 2622(c)) is amended— 

7 (I) by striking ‘‘such paragraph 

8 (14)’’ and all that follows through 

9 ‘‘paragraphs (16)’’ and inserting 

10 ‘‘such paragraph (14). In the case of 

11 the standard established by paragraph 

12 (15) of section 111(d), the reference 

13 contained in this subsection to the 

14 date of enactment of this Act shall be 

15 deemed to be a reference to the date 

16 of enactment of that paragraph (15). 

17 In the case of the standards estab18 lished by paragraphs (16)’’; and 

19 (II) by adding at the end the fol20 lowing: ‘‘In the case of the standard 

21 established by paragraph (20) of sec22 tion 111(d), the reference contained in 

23 this subsection to the date of enact24 ment of this Act shall be deemed to be 


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1 a reference to the date of enactment 

2 of that paragraph (20).’’. 

3 (ii) TECHNICAL CORRECTION.—Para4 graph (2) of section 1254(b) of the Energy 

5 Policy Act of 2005 (Public Law 109–58; 

6 119 Stat. 971) is repealed and the amend7 ment made by that paragraph (as in effect 

8 on the day before the date of enactment of 

9 this Act) is void, and section 112(d) of the 

10 Public Utility Regulatory Policies Act of 

11 1978 (16 U.S.C. 2622(d)) shall be in ef12 fect as if that amendment had not been en13 acted. 

14 (C) PRIOR STATE ACTIONS.— 

15 (i) IN GENERAL.—Section 112 of the 

16 Public Utility Regulatory Policies Act of 

17 1978 (16 U.S.C. 2622) is amended by add18 ing at the end the following: 

19 ‘‘(g) PRIOR STATE ACTIONS.—Subsections (b) and 

20 (c) shall not apply to the standard established by para21 graph (20) of section 111(d) in the case of any electric 

22 utility in a State if, before the date of enactment of this 

23 subsection— 

24 ‘‘(1) the State has implemented for the electric 

25 utility the standard (or a comparable standard); 


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1 ‘‘(2) the State regulatory authority for the 

2 State or the relevant nonregulated electric utility has 

3 conducted a proceeding to consider implementation 

4 of the standard (or a comparable standard) for the 

5 electric utility; or 

6 ‘‘(3) the State legislature has voted on the im7 plementation of the standard (or a comparable 

8 standard) for the electric utility.’’. 

9 (ii) CROSS-REFERENCE.—Section 124 

10 of the Public Utility Regulatory Policies 

11 Act of 1978 (16 U.S.C. 2634) is amend12 ed— 

13 (I) by striking ‘‘this subsection’’ 

14 each place it appears and inserting 

15 ‘‘this section’’; and 

16 (II) by adding at the end the fol17 lowing: ‘‘In the case of the standard 

18 established by paragraph (20) of sec19 tion 111(d), the reference contained in 

20 this section to the date of enactment 

21 of this Act shall be deemed to be a 

22 reference to the date of enactment of 

23 that paragraph (20).’’. 


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1 (b) OPTIONAL FEATURES OF STATE ENERGY CON2 SERVATION PLANS.—Section 362(d) of the Energy Policy 

3 and Conservation Act (42 U.S.C. 6322(d)) is amended— 

4 (1) in paragraph (16), by striking ‘‘and’’ at the 

5 end; 

6 (2) by redesignating paragraph (17) as para7 graph (18); and 

8 (3) by inserting after paragraph (16) the fol9 lowing: 

10 ‘‘(17) programs that promote the installation 

11 and use of demand-response technology and de12 mand-response practices; and’’. 

13 (c) FEDERAL ENERGY MANAGEMENT PROGRAM.— 

14 Section 543(i) of the National Energy Conservation Policy 

15 Act (42 U.S.C. 8253(i)) is amended— 

16 (1) in paragraph (1)— 

17 (A) in subparagraph (A), by striking 

18 ‘‘and’’ at the end; 

19 (B) in subparagraph (B), by striking the 

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

21 (C) by adding at the end the following: 

22 ‘‘(C) to reduce energy consumption during 

23 periods of unusually high electricity or natural 

24 gas demand.’’; and 

25 (2) in paragraph (3)(A)— 


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1 (A) in clause (v), by striking ‘‘and’’ at the 

2 end; 

3 (B) in clause (vi), by striking the period at 

4 the end and inserting ‘‘; and’’; and 

5 (C) by adding at the end the following: 

6 ‘‘(vii) promote the installation of de7 mand-response technology and the use of 

8 demand-response practices in Federal 

9 buildings.’’. 

10 (d) COMPONENTS OF ZERO-NET-ENERGY COMMER11 CIAL BUILDINGS INITIATIVE.—Section 422(d)(3) of the 

12 Energy Independence and Security Act of 2007 (42 

13 U.S.C. 17082(d)) is amended by inserting ‘‘(including de14 mand-response technologies, practices, and policies)’’ after 

15 ‘‘policies’’. 

Æ 


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