702 
terrorism, using digital information, media, and de-
vices. 
(6) The ability of any appliance or machine to 
respond to such signals, measurements, or commu-
nications automatically or in a manner programmed 
by its owner or operator without independent human 
intervention. 
(7) The ability to use digital information to op-
erate functionalities on the electric utility grid that 
were previously electro-mechanical or manual. 
(8) The ability to use digital controls to manage 
and modify electricity demand, enable congestion 
management, assist in voltage control, provide oper-
ating reserves, and provide frequency regulation. 
(9) Such other functions as the Secretary of 
Energy may identify as being necessary or useful to 
the operation of a Smart Grid. 
(e) OFFICE.—The Secretary of Energy shall— 
(1) establish an Office to administer the Smart 
Grid Investment Grant Program, assuring that ex-
pert resources from the Commission on Grid Mod-
ernization, the Office of Energy Distribution and 
Electricity Reliability, and the Office of Energy Effi-
ciency and Renewable Energy are fully available to 
advise on its administration and actions; 
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(2) appoint a Senior Executive Service officer 
to direct the Office, together with such personnel as 
are required to administer the Smart Grid Invest-
ment Grant program; 
(3) establish and publish in the Federal Reg-
ister, within 180 days after the enactment of this 
Act procedures by which applicants who have made 
qualifying Smart Grid investments can seek and ob-
tain reimbursement of one-fourth of their docu-
mented expenditures; 
(4) establish procedures to assure that there is 
no duplication or multiple reimbursement for the 
same investment or costs, that the reimbursement 
goes to the party making the actual expenditures for 
Qualifying Smart Grid Investments, and that the 
grants made have significant effect in encouraging 
and facilitating the development of a smart grid.; 
(5) maintain public records of reimbursements 
made, recipients, and qualifying Smart Grid invest-
ments which have received reimbursements; 
(6) establish procedures to provide, in cases 
deemed by the Secretary to be warranted, advance 
payment of moneys up to the full amount of the pro-
jected eventual reimbursement, to creditworthy ap-
plicants whose ability to make Qualifying Smart 
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Grid Investments may be hindered by lack of initial 
capital, in lieu of any later reimbursement for which 
that applicant qualifies, and subject to full return of 
the advance payment in the event that the Quali-
fying Smart Grid investment is not made; 
(7) establish procedures to provide, in the event 
appropriated moneys in any year are insufficient to 
provide reimbursements for qualifying Smart Grid 
investments, that such reimbursement would be 
made in the next fiscal year or whenever funds are 
again sufficient, with the condition that the insuffi-
ciency of funds to reimburse Qualifying Smart Grid 
Investments from moneys appropriated for that pur-
pose does not create a Federal obligation to that ap-
plicant; and 
(8) have and exercise the discretion to deny 
grants for investments that do not qualify in the 
reasonable judgement of the Secretary. 
(f) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary of En-
ergy the sums of— 
(1) $10,000,000 for each of fiscal years 2008 
through 2012 to provide for administration of the 
Smart Grid Investment Matching Fund; and 
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(2) $250,000,000 for fiscal year 2008 and 
$500,000,000 for each of fiscal years 2009 through 
2012 to provide reimbursements of one-fourth of 
Qualifying Smart Grid Investments. 
SEC. 9115. SMART GRID TECHNOLOGY DEPLOYMENT. 
(a) POWER GRID DIGITAL INFORMATION TECH-
NOLOGY.—The Secretary of Energy shall conduct pro-
grams to— 
(1) deploy advanced techniques for measuring 
peak load reductions and energy efficiency savings 
on customer premises from smart metering, demand 
response, distributed generation and electricity stor-
age systems; 
(2) implement means for demand response, dis-
tributed generation, and storage to provide ancillary 
services; 
(3) advance the use of wide-area measurement 
networks including data mining, visualization, ad-
vanced computing, and secure and dependable com-
munications in a highly distributed environment; and 
(4) implement reliability technologies in a grid 
control room environment against a representative 
set of local outage and wide area blackout scenarios. 
(b) SMART GRID REGIONAL DEMONSTRATION PRO-
GRAM.— 
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