I 
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 informa-
tion 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 Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Smart Grid Advance-
ment Act of 2013’’. 
SEC. 2. DEFINITIONS. 
In this Act: 
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(1) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ means the Administrator of the Environ-
mental Protection Agency. 
(2) APPLICABLE BASELINE.—The term ‘‘appli-
cable 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 elec-
tricity directly to retail consumers with the responsi-
bility to assure power quality and reliability, includ-
ing 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’ prem-
ises, during any hour on the system of a load-serving 
entity during a calendar year, expressed in mega-
watts (MW), or more than one such high point as 
a function of seasonal demand changes. 
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(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 gen-
erated 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-serv-
ing entity relative to peak demand that may warrant 
special measures or electricity resources to maintain 
system reliability while meeting peak demand. 
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(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 EFFECTIVE-
NESS IN PRODUCTS. 
(a) ASSESSMENT.—Not later than 1 year after the 
date of enactment of this Act, the Secretary and the Ad-
ministrator shall each assess the potential for cost-effec-
tive integration of Smart Grid technologies and capabili-
ties in all products that are reviewed by the Department 
of Energy and the Environmental Protection Agency, re-
spectively, for potential designation as Energy Star prod-
ucts. 
(b) ANALYSIS.—(1) Not later than 2 years after the 
date of enactment of this Act, the Secretary and the Ad-
ministrator 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: 
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(A) The products possessed Smart Grid capa-
bility 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 consid-
ered 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. 
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