enactment of this Act shall be deemed to be a ref-
erence to the date of enactment of such para-
graphs.’’. 
(3) PRIOR STATE ACTIONS.—Section 112(d) of 
such Act is amended by inserting ‘‘and paragraphs 
(18) through (20)’’ before ‘‘of such 111(d)’’. 
SEC. 108. DOE STUDY OF SECURITY ATTRIBUTES OF SMART 
GRID SYSTEMS. 
(a) DOE STUDY.—The Secretary of Energy shall, 
within 6 months after the Grid Modernization Commission 
completes its first biennial assessment and report under 
section 103 of the Smart Grid Facilitation Act of 2007, 
submit a report to Congress that provides a quantitative 
assessment and determination of the existing and poten-
tial impacts of the deployment of Smart Grid systems on 
improving the security of the Nation’s electricity infra-
structure and operating capability. The report shall in-
clude but not be limited to specific recommendations on 
each of the following: 
(1) How smart grid systems can help in making 
the Nation’s electricity system less vulnerable to dis-
ruptions due to intentional acts against the system. 
(2) How smart grid systems can help in restor-
ing the integrity of the Nation’s electricity system 
subsequent to disruptions. 
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(3) How smart grid systems can facilitate emer-
gency communications and control of the Nation’s 
electricity system during times of localized or nation-
wide emergency. 
(b) CONSULTATION.—The Secretary shall consult 
with other Federal agencies in the development of the re-
port under this section, including but not limited to the 
Secretary of Homeland Security, the Federal Energy Reg-
ulatory Commission and the Electric Reliability Organiza-
tion certified by the Commission under section 215(c) of 
the Federal Power Act (16 U.S.C. 824 o) as added by 
section 1211 of the Energy Policy Act of 2005 (Public 
Law 109–58; 119 Stat. 941) 
(c) FUNDING.—The Secretary shall fund demonstra-
tion projects for the purpose of demonstrating the findings 
of the report under this section. Not more than 
$10,000,000 are authorized to be appropriated for such 
projects. 
Subtitle B—Demand Response 
SEC. 111. ELECTRICITY SECTOR DEMAND RESPONSE. 
(a) AMENDMENT OF NECPA.—Title V of the Na-
tional Energy Conservation Policy Act (42 U.S.C. 8201 
and following) is amended by adding the following new 
part at the end thereof: 
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‘‘PART 5—PEAK DEMAND REDUCTION 
‘‘SEC. 571. DEFINITIONS. 
‘‘(a) SECRETARY.—As used in this part, the term 
‘Secretary’ means the Secretary of Energy. 
‘‘(b) FEDERAL AGENCY.—As used in this part, the 
term ‘Federal agency’ has the same meaning as provided 
by section 551 of this Act. 
‘‘SEC. 572. FEDERAL ELECTRICITY PEAK DEMAND REDUC-
TION STANDARD. 
‘‘(a) 2008 AGENCY ANNUAL ENERGY PLAN.—Each 
Federal agency shall prepare, and include in its annual 
report under section 548(a) of this Act, each of the fol-
lowing: 
‘‘(1) A determination of the agency’s aggregate 
electricity demand during the system peak hours for 
the utilities providing electricity service to its facili-
ties during 2006 and 2007. 
‘‘(2) A forecast for each year through 2018 of 
the projected growth in such peak demand in light 
of projected growth of facilities, staff, activities, elec-
tric intensity of activities, and other relevant factors. 
‘‘(b) FEDERAL ELECTRICITY PEAK DEMAND REDUC-
TION STANDARD.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), for calendar year 2009 and each calendar 
year thereafter, each Federal agency shall reduce its 
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aggregate peak electricity demand or make such 
amounts of electricity demand available in the form 
of demand response, by the percentage amount spec-
ified in the Federal Electricity Peak Demand Reduc-
tion Standard set forth in the following table: 
‘‘Federal Electricity Peak Demand Reduction Standard 
Calendar Year 
Reduction of Peak Demand Forecast 
2009 .............................
2 percent of the peak demand forecast for cal-
endar year 2009 
2010 .............................
4 percent of the peak demand forecast for cal-
endar year 2010 
2011 .............................
6 percent of the peak demand forecast for cal-
endar year 2011 
2012 .............................
8 percent of the peak demand forecast for cal-
endar year 2012 
2013 .............................
10 percent of the peak demand forecast for cal-
endar year 2013 
2014 .............................
12 percent of the peak demand forecast for cal-
endar year 2014 
2015 .............................
14 percent of the peak demand forecast for cal-
endar year 2015 
2016 .............................
16 percent of the peak demand forecast for cal-
endar year 2016 
2017 .............................
18 percent of the peak demand forecast for cal-
endar year 2017 
2018 and each calendar 
year thereafter.
20 percent of the peak demand forecast for the 
applicable calendar year 
In the table above, the term ‘forecast’ refers to the 
forecast set forth in the 2008 report under section 
548(a) of this Act as updated in accordance with 
subsection in (c)(1)(C). 
‘‘(2) EXCEPTION.—The standard under this 
subsection shall not apply to any activity of a Fed-
eral agency relating to defense or national security 
if compliance with the standard would have an ad-
verse mission impact on the activity, as determined 
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by the Secretary of Defense or the Secretary of 
Homeland Security. 
‘‘(c) IMPLEMENTATION OF STANDARD.— 
‘‘(1) IN GENERAL.—Not later than January 1, 
2010, and each calendar year thereafter, each Fed-
eral agency shall include in the annual energy plan 
of the Federal agency each of the following: 
‘‘(A) An assessment of whether the Fed-
eral agency was in compliance with the stand-
ard under subsection (b) for the preceding year. 
‘‘(B) A description of— 
‘‘(i) the method by which the Federal 
agency proposes to comply with the stand-
ard for the following calendar year; 
‘‘(ii) the factors relied on by the head 
of the Federal agency in determining 
whether to participate in demand response 
programs offered by an electric utility or 
others during the preceding calendar year; 
and 
‘‘(iii) if the Federal agency did not 
participate in a demand response program 
offered by each utility providing electric 
service to facilities of the agency during 
the preceding calendar year, an expla-
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nation for the decision by the head of the 
Federal agency to not participate. 
‘‘(C) An update of the agency’s prior fore-
cast for the remaining years in the period until 
2018. 
‘‘(2) AVAILABILITY TO PUBLIC.—Not later than 
January 1, 2010, and each calendar year thereafter, 
the head of each Federal agency shall make available 
to the public a description of each provision included 
in the annual energy plan of the Federal agency de-
scribed in subparagraphs (A) through (C) of para-
graph (1). 
‘‘(d) MODIFICATIONS TO FEDERAL ENERGY MAN-
AGEMENT PROGRAM.—The Secretary shall make any 
modification to the Federal Energy Management Program 
of the Department of Energy that the Secretary deter-
mines to be necessary to— 
‘‘(1) incorporate the standard established under 
subsection (b) into the Federal Energy Management 
Program; 
‘‘(2) assist any Federal agency to comply with 
the standard established under subsection (b) 
through any appropriate means, including con-
ducting 1 or more demonstration projects at Federal 
facilities. 
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‘‘(e) ANNUAL REPORT.—Not later than March 1, 
2010, and annually thereafter, the Secretary shall submit 
to Congress a report that evaluates the success of agencies 
in meeting the standard established under subsection (b) 
and the success of the Federal Energy Management Pro-
gram in assisting agencies with meeting the standard, and 
the costs and benefits of such participation. 
‘‘SEC. 573. NATIONAL ACTION PLAN FOR DEMAND RE-
SPONSE. 
‘‘(a) NATIONAL ASSESSMENT
AND REPORT.—The 
Grid Modernization Commission established under subtitle 
A of the Smart Grid Facilitation Act of 2007 shall conduct 
a National Assessment of Demand Response. The Com-
mission shall, within 18 months of the date on which the 
full Commission first meets, submit a Report to Congress 
that includes each of the following: 
‘‘(1) Estimation of nationwide demand response 
potential in 5 and 10 year horizons, including data 
on a State-by-State basis, and a methodology for up-
dates of such estimates on an annual basis. 
‘‘(2) Estimation of how much of this potential 
can be achieved within 5 and 10 years after the en-
actment of this Act accompanied by specific policy 
recommendations that if implemented can achieve 
the estimated potential. Such recommendations shall 
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include options for funding and/or incentives for the 
development of demand response resources. The 
Commission shall seek to take advantage of pre-
existing research and ongoing work, and shall as-
sume that there is no duplication of effort. The 
Commission shall further note any barriers to de-
mand response programs that are flexible , non-dis-
criminatory, and fairly compensatory for the services 
and benefits made available and shall provide rec-
ommendations for overcoming such barriers. 
‘‘(b) NATIONAL ACTION PLAN
ON DEMAND RE-
SPONSE.—The Grid Modernization Commission shall fur-
ther develop and implement a National Action Plan on De-
mand Response. Such Plan shall be completed within one 
year after the completion of the National Assessment of 
Demand Response, and shall meet each of the following 
objectives: 
‘‘(1) Provision of adequate technical assistance 
to States to allow them to maximize the amount of 
demand response resources that can be developed 
and deployed. 
‘‘(2) Implementation of a national communica-
tions program that includes broad-based customer 
education and support. 
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‘‘(3) Development and dissemination of tools, 
information and other support mechanisms for use 
by customers, states, utilities and demand response 
providers. 
‘‘(c) AUTHORIZATION.—There are authorized to be 
appropriated to carry out this section not more than 
$10,000,000 for each of the fiscal years 2008 and 2009 
and $20,000,000 for each of the fiscal years 2010 through 
2020. 
‘‘SEC. 574. REPORT ON ENVIRONMENTAL ATTRIBUTES AND 
IMPACTS OF DEMAND RESPONSE AND SMART 
GRID SYSTEMS. 
‘‘(a) REPORT.—The Administrator of the Environ-
mental Protection Agency shall solicit public input and, 
within 6 months after completion of the National Assess-
ment of Demand Response required by section 573, sub-
mit a report to Congress that addresses each of the fol-
lowing: 
‘‘(1) A quantitative assessment and determina-
tion of the existing and potential impacts of demand 
response and ‘smart grid’ systems on air emissions 
and air quality, including but not limited to carbon 
dioxide, oxides of nitrogen and oxides of sulfur. 
‘‘(2) An assessment and determination of the 
existing and potential impacts of demand response 
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and ‘smart grid’ systems on environmental param-
eters other than emissions and air quality, including 
but not limited to: 
‘‘(A) Land use. 
‘‘(B) Water use. 
‘‘(C) Use of renewable energy. 
‘‘(D) Effect on energy sources other than 
electricity. 
‘‘(3) A detailed plan for how Energy Efficiency 
and Clean Energy programs administered by the 
Agency, including the Energy Star Program, will in-
corporate and encourage end-use efficiency, demand 
response and ‘smart grid’ systems and technologies, 
including but not limited to each of the following: 
‘‘(A) Requirements that appliances and 
other equipment are capable of manually and 
automatically receiving and acting upon pricing 
and control information and or instructions pro-
vided by the customer, a load serving entity or 
a third-party designated by the customer. 
‘‘(B) Requirements for time-based valu-
ation of kilowatt hour reductions in planning 
and evaluation of energy efficiency programs. 
‘‘(C) Education and communication, in-
cluding to state energy officials and state regu-
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lators, that build awareness of demand response 
and smart grid systems and technologies and 
their existing and potential relationship to such 
Agency programs. 
‘‘(b) FUNDING.—There are authorized to be appro-
priated to carry out this section for fiscal year 2010, to 
remain available until expended.’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
such Act is amended by adding the following after the 
items relating to part 4 of title V: 
‘‘PART 5—PEAK DEMAND REDUCTION 
‘‘Sec. 571. Definitions. 
‘‘Sec. 572. Federal Electricity Peak Demand Reduction Standard. 
‘‘Sec. 573. National action plan for demand response. 
‘‘Sec. 574. Study of environmental attributes and impacts of demand response 
and smart grid systems.’’. 
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