I 
116TH CONGRESS 
2D SESSION 
H. R. 8432 
To require the establishment of an advanced energy technology research 
initiative and an advanced energy technology and modeling grant pro-
gram, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 29, 2020 
Mr. QUIGLEY introduced the following bill; which was referred to the Com-
mittee on Energy and Commerce, and in addition to the Committee on 
Science, Space, and Technology, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
A BILL 
To require the establishment of an advanced energy tech-
nology research initiative and an advanced energy tech-
nology and modeling grant program, and for other pur-
poses. 
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 ‘‘Advanced Energy 
Technologies and Grid Efficiency Act of 2020’’. 
SEC. 2. DEFINITIONS. 
In this Act: 
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(1) ADVANCED
ENERGY
TECHNOLOGY.—The 
term ‘‘advanced energy technology’’ means any en-
ergy generation, modifying transmission loading, or 
storage technology with zero or minimal greenhouse 
gas emissions that is connected— 
(A) to the distribution system; 
(B) to the transmission system; or 
(C) behind the meter. 
(2) ADVISORY COMMITTEE.—The term ‘‘Advi-
sory Committee’’ means the advisory committee es-
tablished under section 3(a)(2)(A). 
(3) COMMISSION.—The term ‘‘Commission’’ 
means the Federal Energy Regulatory Commission. 
(4) ELECTRIC
UTILITY.—The term ‘‘electric 
utility’’ has the meaning given the term in section 
3 of the Federal Power Act (16 U.S.C. 796). 
(5) GRID
OPERATOR.—The term ‘‘grid oper-
ator’’ means— 
(A) a Transmission Organization, includ-
ing— 
(i) an Independent System Operator; 
and 
(ii) a Regional Transmission Organi-
zation; 
(B) a public utility; and 
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(C) an electric utility. 
(6) INDEPENDENT
SYSTEM
OPERATOR.—The 
term ‘‘Independent System Operator’’ has the mean-
ing given the term in section 3 of the Federal Power 
Act (16 U.S.C. 796). 
(7) INITIATIVE.—The term ‘‘Initiative’’ means 
the Advanced Energy Technology Research Initiative 
established under section 3(a)(1). 
(8) PUBLIC UTILITY.—The term ‘‘public util-
ity’’ has the meaning given the term in section 
201(e) of the Federal Power Act (16 U.S.C. 824(e)). 
(9) REGIONAL TRANSMISSION ORGANIZATION.— 
The term ‘‘Regional Transmission Organization’’ 
has the meaning given the term in section 3 of the 
Federal Power Act (16 U.S.C. 796). 
(10) 
SECRETARY.—The 
term 
‘‘Secretary’’ 
means the Secretary of Energy. 
(11) TRANSMISSION ORGANIZATION.—The term 
‘‘Transmission Organization’’ has the meaning given 
the term in section 3 of the Federal Power Act (16 
U.S.C. 796). 
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SEC. 3. POWER SYSTEM MODELING REFORM AND UPDATES 
TO GRID SERVICES AND GRID OPERATOR 
SOFTWARE. 
(a) ADVANCED ENERGY TECHNOLOGY RESEARCH 
INITIATIVE.— 
(1) IN GENERAL.—Not later than 90 days after 
the date of enactment of this Act, the Commission, 
in coordination with the Secretary, shall establish 
within the Office of Energy Policy and Innovation of 
the Commission an initiative, to be known as the 
‘‘Advanced Energy Technology Research Initiative’’, 
to research and provide recommendations on how to 
improve the modeling, operational, and planning 
practices used for the bulk electric system. 
(2) ADVISORY COMMITTEE.— 
(A) IN
GENERAL.—Not later than 180 
days after the date of enactment of this Act, 
the Commission, in coordination with the Sec-
retary, shall establish an advisory committee to 
research, report on, and provide recommenda-
tions on matters relating to the Initiative, in-
cluding— 
(i) whether the existing modeling (in-
cluding power flow modeling) and long- 
term and short-term planning practices 
used by grid operators for power systems, 
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including power markets, adequately incor-
porate expected integration with respect to 
advanced energy technologies; 
(ii) whether the methods used to de-
termine future transmission and capacity 
needs and make reliability-related deter-
minations use the right data to adequately 
forecast and model the integration of ad-
vanced energy technology into electric 
power systems; 
(iii) whether the modeling and plan-
ning practices described in clause (i) and 
the methods described in clause (ii) need to 
be updated to better account for the inte-
gration of advanced energy technology into 
electric power systems; 
(iv) any undue barriers to the adop-
tion of advanced energy technology pre-
sented by— 
(I) 
existing 
modeling, 
oper-
ational, and planning practices; and 
(II) State estimation tools for 
planning and reliability; 
(v) any need to develop emerging 
technologies or software for use in improv-
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ing modeling, planning, and operations in 
wholesale electricity markets to resolve 
computational or technical barriers to the 
adoption of advanced energy technology, 
including software relating to— 
(I) the use of big data, artificial 
intelligence, and probabilistic methods 
to predict, in near real-time— 
(aa) energy generation from 
variable 
and 
distributed 
re-
sources; 
(bb) load profiles; and 
(cc) consumption and con-
gestion; and 
(II) the use of artificial intel-
ligence to improve the responsiveness 
of energy system operations; 
(vi) whether existing and future grid 
reliability service definitions and the mod-
eling techniques, operational processes, and 
planning processes used to procure grid re-
liability services— 
(I) appropriately account for the 
technical and operational characteris-
tics of advanced energy technologies; 
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(II) allow for the use of those ad-
vanced energy technologies to provide 
grid reliability services when cost-ef-
fective to do so; and 
(III) include appropriate cyberse-
curity safeguards; and 
(vii) any rulemaking, technical con-
ference, or policy statement that, in the de-
termination of the Advisory Committee, 
the Commission should consider. 
(B) COMPOSITION.—The Advisory Com-
mittee shall consist of— 
(i) not fewer than 1 representative 
from each of— 
(I) the Commission; 
(II) the Department of Energy; 
(III) the Electric Reliability Or-
ganization (as defined in section 
215(a) of the Federal Power Act (16 
U.S.C. 824o(a))); 
(IV) an Independent System Op-
erator or a Regional Transmission Or-
ganization; 
(V) an entity generating electric 
power that is not affiliated with a 
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transmission-owning public or non-
public utility; 
(VI) an entity generating electric 
power that provides power directly to 
wholesale or retail customers and is 
not affiliated with a transmission-own-
ing public or nonpublic utility; 
(VII) an environmental organiza-
tion with expertise on the bulk electric 
system; and 
(VIII) an institution of higher 
education with expertise on the bulk 
electric system; 
(ii) not fewer than 2 designees of the 
National Association of Regulatory Utility 
Commissioners; 
(iii) not fewer than 4 representatives 
from public utilities or electric utilities, re-
gardless of whether the utility is in an area 
serviced by an Independent System Oper-
ator or a Regional Transmission Organiza-
tion; and 
(iv) not fewer than 2 representatives 
from private and nonprofit associations 
with expertise in the development, deploy-
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ment, and use of advanced energy tech-
nologies. 
(C) REPORTS.—Not later than 18 months 
after the date of enactment of this Act, and 
every 2 years thereafter for 10 years, the Advi-
sory Committee shall submit to the Committee 
on Energy and Natural Resources of the Senate 
and the Committee on Energy and Commerce 
of the House of Representatives a report on the 
Initiative, 
including 
the 
findings 
or 
rec-
ommendations of the Advisory Committee with 
respect to the matters described in clauses (i) 
through (vii) of subparagraph (A). 
(b) ADVANCED ENERGY TECHNOLOGY
AND GRID 
SERVICES PROGRAM.— 
(1) IN
GENERAL.—Not later than 180 days 
after the date of enactment of this Act, the Sec-
retary shall establish a competitive financial assist-
ance program, to be known as the ‘‘Advanced En-
ergy Technology and Grid Services Program’’, under 
which the Secretary shall enter into Federal finan-
cial assistance agreements with eligible entities de-
scribed in paragraph (2) for the purpose of increas-
ing the market penetration of advanced energy tech-
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nology through advanced research and development 
and pilot demonstrations of— 
(A) software upgrades, including upgrades 
to the software platforms used to operate 
wholesale energy markets; 
(B) updated power system planning; 
(C) new power system (including power 
market) modeling platforms; 
(D) cybersecurity and physical security up-
grades; and 
(E) resilience upgrades. 
(2) ELIGIBLE ENTITIES DESCRIBED.—An eligi-
ble entity referred to in paragraph (1) is— 
(A) a grid operator; 
(B) a State public utility commission; 
(C) an energy cooperative; 
(D) a municipality; 
(E) an electric utility; 
(F) a gas utility; or 
(G) a State energy office. 
(3) ELIGIBLE ACTIVITIES.—The Secretary may 
enter into a financial assistance agreement under 
this subsection for— 
(A) software upgrades by grid operators; 
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(B) new power system (including power 
market) modeling platforms; 
(C) enhancements to cybersecurity safe-
guards; or 
(D) updated power system (including 
power market) planning, updated power system 
(including power market) modeling, or updated 
reliability planning and modeling by grid opera-
tors. 
(4) COST SHARING.—In awarding Federal fi-
nancial assistance (including grants, loans, and any 
other form of financial assistance) to fund eligible 
activities under this subsection, the Secretary shall 
require cost sharing in accordance with section 988 
of the Energy Policy Act of 2005 (42 U.S.C. 
16352). 
(5) COORDINATION.—In carrying out the Ad-
vanced Energy Technology and Grid Services Pro-
gram established under this subsection, the Sec-
retary, to the maximum extent practicable, shall co-
ordinate with existing programs of the Department 
of Energy that focus on grid modernization efforts. 
SEC. 4. ADVANCED ENERGY AND GRID EFFICIENCY STUD-
IES AND REPORT. 
(a) STUDIES.— 
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(1) ADVANCED
ENERGY
STUDY.—The Sec-
retary, in coordination with the Commission, shall 
carry out a study of the costs and benefits to con-
sumers of updating power system planning, mod-
eling, and operational practices, including reliability- 
related planning, and energy market participation 
rules on advanced energy technologies and resources, 
including distributed energy technologies and re-
sources, such as— 
(A) energy storage technologies; 
(B) energy efficiency and transmission effi-
ciency technologies; 
(C) distributed solar and wind energy gen-
eration; 
(D) fuel cells; 
(E) smart thermostats and smart building 
technologies; 
(F) demand response technologies, includ-
ing natural gas demand response technologies; 
(G) advanced metering technologies; 
(H) electric vehicles and electric vehicle 
charging infrastructure; 
(I) any aggregation of the distributed en-
ergy technologies and resources described in 
subparagraph (A) or (C); and 
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(J) any other advanced energy tech-
nologies, as determined by the Secretary. 
(2) GRID EFFICIENCY STUDY.— 
(A) IN GENERAL.—The Secretary, in co-
ordination with the Commission, shall carry out 
a study of the barriers and opportunities for 
advanced energy technologies that provide in-
creased, more efficient, or more effective deliv-
ery over the existing transmission network. 
(B) REQUIREMENTS.—The study under 
subparagraph (A) shall include— 
(i) an examination of— 
(I) the reliability, resilience, and 
economic benefits of technologies such 
as power flow control, topology opti-
mization, and dynamic line ratings; 
(II) the costs, benefits, and chal-
lenges associated with deployment of 
the advanced energy technologies de-
scribed in subparagraph (A); and 
(III) the impact of grid efficiency 
improvements on wholesale and retail 
electricity rates; and 
(ii) an analysis of the benefits of per-
formance-based financial and regulatory 
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incentives in the deployment of advanced 
energy technologies relative to the cost-of- 
service of those advanced energy tech-
nologies, as determined by the Secretary. 
(b) REPORT.—Not later than 18 months after the 
date of enactment of this Act, the Secretary shall submit 
to the Committee on Energy and Natural Resources of 
the Senate and the Committee on Energy and Commerce 
of the House of Representatives a report describing the 
results of the studies under paragraphs (1) and (2) of sub-
section (a). 
SEC. 
5. 
INTERCONNECTION 
PROCESSES 
AND 
TRANS-
MISSION UPGRADES. 
(a) PRIORITY OF FINANCIAL ASSISTANCE.— 
(1) IN GENERAL.—The Secretary shall use the 
existing grant funding provided through relevant 
funding streams and programs of the Office of Elec-
tricity of the Department of Energy— 
(A) to give priority to transmission and 
distribution utilities seeking to conduct pilot 
programs aimed at integrating advanced energy 
technologies into the bulk electric system; and 
(B) to focus on escalating demand for ad-
vanced energy technology interconnections. 
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(2) REQUIREMENT.—In carrying out paragraph 
(1), the Secretary shall develop the design of and 
method for carrying out any funding opportunities 
identified pursuant to that paragraph. 
(b) TRANSMISSION PLANNING AND SITING.— 
(1) INDEPENDENT REPORT.—The Commission 
shall offer to enter into an agreement with the Na-
tional Academy of Sciences to prepare a report on 
whether— 
(A) existing regional and interregional 
transmission planning and siting processes are 
effectively supporting State resource planning 
objectives; and 
(B) Federal regulators have the tools to ef-
fectively regulate the planning and siting of 
interregional transmission lines. 
(2) REQUIREMENTS.—The report under para-
graph (1) shall examine whether— 
(A) there are deficiencies in transmission 
planning and siting that affect resource devel-
opment for— 
(i) interregional and regional energy 
generation; 
(ii) interconnection queues; and 
(iii) advanced energy technologies; 
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(B) the Commission has the programmatic 
and regulatory structure necessary to facilitate 
continued improvements in transmission plan-
ning, including planning with respect to trans-
mission— 
(i) across the boundaries of Inde-
pendent System Operators and Regional 
Transmission Organizations; and 
(ii) across boundaries that are not as-
sociated with Independent System Opera-
tors or Regional Transmission Organiza-
tions; 
(C) State resource planning requirements 
are addressed in existing transmission planning 
processes; 
(D) the Commission lacks tools with re-
spect to the siting of transmission lines that 
could help States improve transmission plan-
ning to meet State resource planning objectives; 
and 
(E) there are barriers to the inclusion and 
integration in the grid of any technology— 
(i) to reduce transmission losses; 
(ii) to improve the efficiency of the 
transmission and distribution systems; 
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(iii) that is connected to the distribu-
tion system and may— 
(I) increase reliability or resil-
ience; and 
(II) avoid transmission and dis-
tribution system costs; and 
(iv) to better understand the role of 
Federal regulators in the siting of tech-
nologies not directly connected to the grid. 
(3) DEADLINE.—The report under paragraph 
(1) shall be submitted to the Commission, the Sec-
retary, and the relevant committees of Congress not 
later than 1 year after the date of enactment of this 
Act. 
(c) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to the Secretary to provide 
grants through relevant programs of the Office of Elec-
tricity of the Department of Energy, in accordance with 
subparagraphs (A) and (B) of subsection (a)(1), 
$50,000,000 for each of fiscal years 2021 through 2025. 
Æ 
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