GRID Act of 2022

To direct the Secretary of Energy to establish a program to reduce the vulnerability of the electric grid to physical attack, cyber attack, and other events, including by ensuring that large power transformers and other critical electric grid equipment are strategically located to ensure timely replacement of such equipment as may be necessary, and for other purposes. 1. Short title This Act may be cited as the Grid Resilience and Infrastructure Depot Act of 2022 GRID Act of 2022 2. Strategic transformer reserve and resilience program (a) Establishment The Secretary shall establish a program to reduce the vulnerability of the electric grid to physical attack, cyber attack, electromagnetic pulse, geomagnetic disturbances, severe weather, climate change, and seismic events, including by— (1) ensuring that large power transformers, generator step-up transformers, power conversion equipment, and other critical electric grid equipment are strategically located to ensure timely replacement of such equipment as may be necessary to restore electric grid function rapidly in the event of severe damage to the electric grid due to physical attack, cyber attack, electromagnetic pulse, geomagnetic disturbances, severe weather, climate change, or seismic events; and (2) establishing a coordinated plan to facilitate transportation of large power transformers, generator step-up transformers, power conversion equipment, and other critical electric grid equipment. (b) Transformer resilience In carrying out the program established under subsection (a), the Secretary shall— (1) improve large power transformers, generator step-up transformers, power conversion equipment, and other critical electric grid equipment by reducing their vulnerabilities; (2) develop, test, and deploy innovative equipment designs that are more flexible and offer greater resiliency of electric grid functions; (3) coordinate with industry and manufacturers to standardize large power transformers, generator step-up transformers, power conversion equipment, and other critical electric grid equipment; (4) monitor and test large power transformers, generator step-up transformers, power conversion equipment, and other critical electric grid equipment that the Secretary determines may pose a risk to the bulk-power system or national security; and (5) facilitate the domestic manufacturing of large power transformers, generator step-up transformers, power conversion equipment, and other critical electric grid equipment through the issuance of grants and loans, and through the provision of technical support. (c) Strategic equipment reserves (1) Authorization In carrying out the program established under subsection (a), the Secretary may establish one or more federally owned strategic equipment reserves, as appropriate, to ensure nationwide access to large power transformers, generator step-up transformers, power conversion equipment, and other critical electric grid equipment. (2) Consideration In establishing any federally owned strategic equipment reserve, the Secretary may consider existing spare transformer and equipment programs and requirements established by the private sector, Regional Transmission Organizations, Independent System Operators, and State regulatory authorities. (3) Iron and steel (A) In general In establishing any federally owned strategic equipment reserve, no Federal funds shall be used for the purchase of large power transformers, generator step-up transformers, power conversion equipment, or other critical electric grid equipment unless all of the iron and steel products used in such equipment are produced in the United States. (B) Waiver (i) In general The Secretary shall waive application of subparagraph (A) in any case or category of cases in which the Secretary finds that— (I) applying subparagraph (A) would be inconsistent with the public interest; (II) iron and steel products are not produced in the United States in sufficient and reasonably available quantities or of a satisfactory quality; or (III) inclusion of iron and steel products produced in the United States will increase the cost of the applicable large power transformers, generator step-up transformers, power conversion equipment, or other critical electric grid equipment by more than 25 percent. (ii) Process Before issuing a waiver under this subparagraph, the Secretary shall— (I) make publicly available in an easily accessible location on a website designated by the Office of Management and Budget and on the website of the Department of Energy a detailed written explanation for the proposed determination to issue the waiver; and (II) provide a period of not less than 15 days for public comment on the proposed waiver. (C) International agreements This paragraph shall be applied in a manner consistent with United States obligations under international agreements. (D) Definitions In this paragraph— (i) the term iron and steel products (I) transformers; and (II) laminations, cores, and other transformer components; and (ii) in the case of iron and steel products, the term produced in the United States (d) Consultation The program established under subsection (a) shall be carried out in consultation with the Federal Energy Regulatory Commission, the Electricity Subsector Coordinating Council, the Electric Reliability Organization, manufacturers, and owners and operators of critical electric infrastructure and defense and military installations. (e) Prevailing wages Any laborer or mechanic employed by any contractor or subcontractor in the performance of work funded directly, or assisted in whole or in part, by the Federal Government pursuant to this section shall be paid wages at rates not less than those prevailing on work of a similar character in the locality, as determined by the Secretary of Labor under subchapter IV of chapter 31 (f) Authorization of appropriations There is authorized to be appropriated to carry out this section $75,000,000 for each of fiscal years 2022 through 2026, and such amounts shall remain available until expended. (g) Definitions In this section: (1) Bulk-power system; Electric Reliability Organization The terms bulk-power system Electric Reliability Organization 16 U.S.C. 824o (2) Critical electric infrastructure The term critical electric infrastructure 16 U.S.C. 824o–1 (3) Independent System Operator; Regional Transmission Organization State regulatory authority The terms Regional Transmission Organization Independent System Operator State regulatory authority 16 U.S.C. 796 (4) Secretary The term Secretary

Summary: Grid Resilience and Infrastructure Depot Act of 2022 or the GRID Act of 2022 This bill establishes a program to improve the resiliency of the electric grid and critical electric grid equipment (e.g., large transformers and power conversion equipment) to physical attacks, cyberattacks, severe weather, and other harms. In carrying out the program, the Department of Energy may establish federally owned strategic reserves of critical electric grid equipment.