187 
Energy Regulatory Commission and other appropriate 
agencies, electric utilities, the States, and other stake-
holders, shall carry out a program— 
(1) to develop advanced techniques for meas-
uring peak load reductions and energy-efficiency sav-
ings from smart metering, demand response, distrib-
uted generation, and electricity storage systems; 
(2) to investigate means for demand response, 
distributed generation, and storage to provide ancil-
lary services; 
(3) to conduct research to advance the use of 
wide-area measurement and control networks, in-
cluding data mining, visualization, advanced com-
puting, and secure and dependable communications 
in a highly-distributed environment; 
(4) to test new reliability technologies in a grid 
control room environment against a representative 
set of local outage and wide area blackout scenarios; 
(5) to investigate the feasibility of a transition 
to time-of-use and real-time electricity pricing; 
(6) to develop algorithms for use in electric 
transmission system software applications; 
(7) to promote the use of underutilized elec-
tricity generation capacity in any substitution of 
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electricity for liquid fuels in the transportation sys-
tem of the United States; and 
(8) in consultation with the Federal Energy 
Regulatory Commission, to propose interconnection 
protocols to enable electric utilities to access elec-
tricity stored in vehicles to help meet peak demand 
loads. 
(b) SMART GRID REGIONAL DEMONSTRATION INI-
TIATIVE.— 
(1) IN GENERAL.—The Secretary shall establish 
a smart grid regional demonstration initiative (re-
ferred to in this subsection as the ‘‘Initiative’’) com-
posed of demonstration projects specifically focused 
on advanced technologies for use in power grid sens-
ing, communications, analysis, and power flow con-
trol. The Secretary shall seek to leverage existing 
smart grid deployments. 
(2) GOALS.—The goals of the Initiative shall 
be— 
(A) to demonstrate the potential benefits 
of concentrated investments in advanced grid 
technologies on a regional grid; 
(B) to facilitate the commercial transition 
from the current power transmission and dis-
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tribution system technologies to advanced tech-
nologies; 
(C) to facilitate the integration of ad-
vanced technologies in existing electric networks 
to improve system performance, power flow con-
trol, and reliability; 
(D) to demonstrate protocols and stand-
ards that allow for the measurement and valida-
tion of the energy savings and fossil fuel emis-
sion reductions associated with the installation 
and use of energy efficiency and demand re-
sponse technologies and practices; and 
(E) to investigate differences in each re-
gion and regulatory environment regarding best 
practices in implementing smart grid tech-
nologies. 
(3) DEMONSTRATION PROJECTS.— 
(A) IN GENERAL.—In carrying out the ini-
tiative, the Secretary shall carry out smart grid 
demonstration projects in up to 5 electricity 
control areas, including rural areas and at least 
1 area in which the majority of generation and 
transmission assets are controlled by a tax-ex-
empt entity. 
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(B) 
COOPERATION.—A 
demonstration 
project under subparagraph (A) shall be carried 
out in cooperation with the electric utility that 
owns the grid facilities in the electricity control 
area in which the demonstration project is car-
ried out. 
(C) FEDERAL SHARE OF COST OF TECH-
NOLOGY
INVESTMENTS.—The Secretary shall 
provide to an electric utility described in sub-
paragraph (B) financial assistance for use in 
paying an amount equal to not more than 50 
percent of the cost of qualifying advanced grid 
technology investments made by the electric 
utility to carry out a demonstration project. 
(4) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated— 
(A) to carry out subsection (a), such sums 
as are necessary for each of fiscal years 2008 
through 2012; and 
(B) 
to 
carry 
out 
subsection 
(b), 
$100,000,000 for each of fiscal years 2008 
through 2012. 
SEC. 257. SMART GRID INTEROPERABILITY FRAMEWORK. 
(a) INTEROPERABILITY FRAMEWORK.—The Federal 
Energy Regulatory Commission (referred to in this section 
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