expected to lead to the disclosure of the critical elec-
tric infrastructure information within documents and 
electronic communications, wherever feasible, to fa-
cilitate disclosure of information that is not des-
ignated as critical electric infrastructure informa-
tion. 
‘‘(8) DURATION
OF
DESIGNATION.—Informa-
tion may not be designated as critical electric infra-
structure information for longer than 5 years, unless 
specifically re-designated by the Commission. 
‘‘(9) REMOVAL OF DESIGNATION.—The Com-
mission shall remove the designation of critical elec-
tric infrastructure information, in whole or in part, 
from a document or electronic communication if the 
Commission determines that the unauthorized disclo-
sure of such information could no longer be used to 
impair the security or reliability of the bulk-power 
system or distribution facilities. 
‘‘(10) JUDICIAL REVIEW OF DESIGNATIONS.— 
Notwithstanding section 313(b), any determination 
by the Commission concerning the designation of 
critical electric infrastructure information under this 
subsection shall be subject to review under chapter 
7 of title 5, United States Code, except that such re-
view shall be brought in the district court of the
United States in the district in which the complain-
ant resides, or has his principal place of business, or 
in the District of Columbia. In such a case the court 
shall examine in camera the contents of documents 
or electronic communications that are the subject of 
the determination under review to determine wheth-
er such documents or any part thereof were improp-
erly designated or not designated as critical electric 
infrastructure information. 
‘‘(e) MEASURES
TO
ADDRESS
GRID
SECURITY 
VULNERABILITIES.— 
‘‘(1) COMMISSION AUTHORITY.— 
‘‘(A) RELIABILITY
STANDARDS.—If the 
Commission, in consultation with appropriate 
Federal agencies, identifies a grid security vul-
nerability that the Commission determines has 
not adequately been addressed through a reli-
ability standard developed and approved under 
section 215, the Commission shall, after notice 
and opportunity for comment and after con-
sultation with the Secretary, other appropriate 
Federal agencies, and appropriate governmental 
authorities in Canada and Mexico, issue an 
order directing the Electric Reliability Organi-
zation to submit to the Commission for ap-
proval under section 215, not later than 30 
days after the issuance of such order, a reli-
ability standard requiring implementation, by 
any owner, operator, or user of the bulk-power 
system in the United States, of measures to 
protect the bulk-power system against such vul-
nerability. Any such standard shall include a 
protection plan, including automated hardware- 
based solutions. The Commission shall approve 
a reliability standard submitted pursuant to 
this subparagraph, unless the Commission de-
termines that such reliability standard does not 
adequately protect against such vulnerability or 
otherwise does not satisfy the requirements of 
section 215. 
‘‘(B) MEASURES TO ADDRESS GRID SECU-
RITY
VULNERABILITIES.—If the Commission, 
after notice and opportunity for comment and 
after consultation with the Secretary, other ap-
propriate Federal agencies, and appropriate 
governmental authorities in Canada and Mex-
ico, determines that the reliability standard 
submitted by the Electric Reliability Organiza-
tion to address a grid security vulnerability 
identified under subparagraph (A) does not
adequately protect the bulk-power system 
against such vulnerability, the Commission shall 
promulgate a rule or issue an order requiring 
implementation, by any owner, operator, or user 
of the bulk-power system in the United States, 
of measures to protect the bulk-power system 
against such vulnerability. Any such rule or 
order shall include a protection plan, including 
automated hardware-based solutions. Before 
promulgating a rule or issuing an order under 
this subparagraph, the Commission shall, to the 
extent practicable in light of the urgency of the 
need for action to address the grid security vul-
nerability, request and consider recommenda-
tions from the Electric Reliability Organization 
regarding such rule or order. The Commission 
may establish an appropriate deadline for the 
submission of such recommendations. 
‘‘(2) RESCISSION.—The Commission shall ap-
prove a reliability standard developed under section 
215 that addresses a grid security vulnerability that 
is the subject of a rule or order under paragraph 
(1)(B), unless the Commission determines that such 
reliability standard does not adequately protect 
against such vulnerability or otherwise does not sat-
isfy the requirements of section 215. Upon such ap-
proval, the Commission shall rescind the rule pro-
mulgated or order issued under paragraph (1)(B) 
addressing such vulnerability, effective upon the ef-
fective date of the newly approved reliability stand-
ard. 
‘‘(3) GEOMAGNETIC
STORMS
AND
ELECTRO-
MAGNETIC PULSE.—Not later than 6 months after 
the date of enactment of this section, the Commis-
sion shall, after notice and an opportunity for com-
ment and after consultation with the Secretary and 
other appropriate Federal agencies, issue an order 
directing the Electric Reliability Organization to 
submit to the Commission for approval under section 
215, not later than 6 months after the issuance of 
such order, reliability standards adequate to protect 
the bulk-power system from any reasonably foresee-
able geomagnetic storm or electromagnetic pulse 
event. The Commission’s order shall specify the na-
ture and magnitude of the reasonably foreseeable 
events against which such standards must protect. 
Such standards shall appropriately balance the risks 
to the bulk-power system associated with such 
events, including any regional variation in such 
risks, the costs of mitigating such risks, and the pri-
orities and timing associated with implementation. If 
the Commission determines that the reliability 
standards submitted by the Electric Reliability Or-
ganization pursuant to this paragraph are inad-
equate, the Commission shall promulgate a rule or 
issue an order adequate to protect the bulk-power 
system from geomagnetic storms or electromagnetic 
pulse as required under paragraph (1)(B). 
‘‘(4) LARGE
TRANSFORMER
AVAILABILITY.— 
Not later than 1 year after the date of enactment 
of this section, the Commission shall, after notice 
and an opportunity for comment and after consulta-
tion with the Secretary and other appropriate Fed-
eral agencies, issue an order directing the Electric 
Reliability Organization to submit to the Commis-
sion for approval under section 215, not later than 
1 year after the issuance of such order, reliability 
standards addressing availability of large trans-
formers. Such standards shall require entities that 
own or operate large transformers to ensure, individ-
ually or jointly, adequate availability of large trans-
formers to promptly restore the reliable operation of 
the bulk-power system in the event that any such 
transformer is destroyed or disabled as a result of 
a geomagnetic storm event or electromagnetic pulse
event. The Commission’s order shall specify the na-
ture and magnitude of the reasonably foreseeable 
events that shall provide the basis for such stand-
ards. Such standards shall— 
‘‘(A) provide entities subject to the stand-
ards with the option of meeting such standards 
individually or jointly; and 
‘‘(B) appropriately balance the risks asso-
ciated with a reasonably foreseeable event, in-
cluding any regional variation in such risks, and 
the costs of ensuring adequate availability of 
spare transformers. 
‘‘(5) CERTAIN
FEDERAL
ENTITIES.—For the 
11-year period commencing on the date of enact-
ment of this section, the Tennessee Valley Authority 
and the Bonneville Power Administration shall be 
exempt from any requirement under this subsection. 
‘‘(f) SECURITY CLEARANCES.—The Secretary shall 
facilitate and, to the extent practicable, expedite the acqui-
sition of adequate security clearances by key personnel of 
any entity subject to the requirements of this section, to 
enable optimum communication with Federal agencies re-
garding threats to the security of the critical electric infra-
structure. The Secretary, the Commission, and other ap-
propriate Federal agencies shall, to the extent practicable
and consistent with their obligations to protect classified 
and critical electric infrastructure information, share time-
ly actionable information regarding grid security with ap-
propriate key personnel of owners, operators, and users 
of the critical electric infrastructure. 
‘‘(g) CLARIFICATIONS OF LIABILITY.— 
‘‘(1) COMPLIANCE WITH OR VIOLATION OF THIS 
ACT.—Except as provided in paragraph (4), to the 
extent any action or omission taken by an entity 
that is necessary to comply with an order for emer-
gency measures issued under subsection (b)(1), in-
cluding any action or omission taken to voluntarily 
comply with such order, results in noncompliance 
with, or causes such entity not to comply with any 
rule, order, regulation, or provision of this Act, in-
cluding any reliability standard approved by the 
Commission pursuant to section 215, such action or 
omission shall not be considered a violation of such 
rule, order, regulation, or provision. 
‘‘(2) RELATION TO SECTION 202(c).—Except as 
provided in paragraph (4), an action or omission 
taken by an owner, operator, or user of critical elec-
tric infrastructure or of defense critical electric in-
frastructure to comply with an order for emergency 
measures issued under subsection (b)(1) shall be
treated as an action or omission taken to comply 
with an order issued under section 202(c) for pur-
poses of such section. 
‘‘(3) SHARING OR RECEIPT OF INFORMATION.— 
No cause of action shall lie or be maintained in any 
Federal or State court for the sharing or receipt of 
information under, and that is conducted in accord-
ance with, subsection (d). 
‘‘(4) RULE
OF
CONSTRUCTION.—Nothing in 
this subsection shall be construed to require dis-
missal of a cause of action against an entity that, 
in the course of complying with an order for emer-
gency measures issued under subsection (b)(1) by 
taking an action or omission for which they would 
be liable but for paragraph (1) or (2), takes such ac-
tion or omission in a grossly negligent manner.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) JURISDICTION.—Section 201(b)(2) of the 
Federal Power Act (16 U.S.C. 824(b)(2)) is amend-
ed by inserting ‘‘215A,’’ after ‘‘215,’’ each place it 
appears. 
(2) PUBLIC
UTILITY.—Section 201(e) of the 
Federal Power Act (16 U.S.C. 824(e)) is amended 
by inserting ‘‘215A,’’ after ‘‘215,’’.
SEC. 1105. STRATEGIC TRANSFORMER RESERVE. 
(a) FINDING.—Congress finds that the storage of 
strategically located spare large power transformers and 
emergency mobile substations will reduce the vulnerability 
of the United States to multiple risks facing electric grid 
reliability, including physical attack, cyber attack, electro-
magnetic pulse, geomagnetic disturbances, severe weather, 
and seismic events. 
(b) DEFINITIONS.—In this section: 
(1) BULK-POWER
SYSTEM.—The term ‘‘bulk- 
power system’’ has the meaning given such term in 
section 215(a) of the Federal Power Act (16 U.S.C. 
824o(a)). 
(2) CRITICALLY
DAMAGED
LARGE
POWER 
TRANSFORMER.—The term ‘‘critically damaged large 
power transformer’’ means a large power trans-
former that— 
(A) has sustained extensive damage such 
that— 
(i) repair or refurbishment is not eco-
nomically viable; or 
(ii) the extensive time to repair or re-
furbish the large power transformer would 
create an extended period of instability in 
the bulk-power system; and
(B) prior to sustaining such damage, was 
part of the bulk-power system. 
(3) CRITICAL
ELECTRIC
INFRASTRUCTURE.— 
The term ‘‘critical electric infrastructure’’ has the 
meaning given that term in section 215A of the Fed-
eral Power Act. 
(4) ELECTRIC
RELIABILITY
ORGANIZATION.— 
The term ‘‘Electric Reliability Organization’’ has the 
meaning given such term in section 215(a) of the 
Federal Power Act (16 U.S.C. 824o(a)). 
(5) EMERGENCY
MOBILE
SUBSTATION.—The 
term ‘‘emergency mobile substation’’ means a mobile 
substation or mobile transformer that is— 
(A) assembled and permanently mounted 
on a trailer that is capable of highway travel 
and meets relevant Department of Transpor-
tation regulations; and 
(B) intended for express deployment and 
capable of being rapidly placed into service. 
(6) LARGE POWER TRANSFORMER.—The term 
‘‘large power transformer’’ means a power trans-
former with a maximum nameplate rating of 100 
megavolt-amperes or higher, including related crit-
ical equipment, that is, or is intended to be, a part 
of the bulk-power system.
(7) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Energy. 
(8) SPARE LARGE POWER TRANSFORMER.—The 
term ‘‘spare large power transformer’’ means a large 
power transformer that is stored within the Stra-
tegic Transformer Reserve to be available to tempo-
rarily replace a critically damaged large power trans-
former. 
(c) STRATEGIC TRANSFORMER RESERVE PLAN.— 
(1) PLAN.—Not later than 1 year after the date 
of enactment of this Act, the Secretary, acting 
through the Office of Electricity Delivery and En-
ergy Reliability, shall, in consultation with the Fed-
eral Energy Regulatory Commission, the Electricity 
Sub-sector Coordinating Council, the Electric Reli-
ability Organization, and owners and operators of 
critical electric infrastructure and defense and mili-
tary installations, prepare and submit to Congress a 
plan to establish a Strategic Transformer Reserve 
for the storage, in strategically located facilities, of 
spare large power transformers and emergency mo-
bile substations in sufficient numbers to temporarily 
replace critically damaged large power transformers 
and substations that are critical electric infrastruc-
ture or serve defense and military installations.
(2) INCLUSIONS.—The Strategic Transformer 
Reserve plan shall include a description of— 
(A) the appropriate number and type of 
spare large power transformers necessary to 
provide or restore sufficient resiliency to the 
bulk-power system, critical electric infrastruc-
ture, and defense and military installations to 
mitigate significant impacts to the electric grid 
resulting from— 
(i) physical attack; 
(ii) cyber attack; 
(iii) electromagnetic pulse attack; 
(iv) geomagnetic disturbances; 
(v) severe weather; or 
(vi) seismic events; 
(B) other critical electric grid equipment 
for which an inventory of spare equipment, in-
cluding emergency mobile substations, is nec-
essary to provide or restore sufficient resiliency 
to the bulk-power system, critical electric infra-
structure, and defense and military installa-
tions; 
(C) the degree to which utility sector ac-
tions or initiatives, including individual utility 
ownership of spare equipment, joint ownership
of spare equipment inventory, sharing agree-
ments, or other spare equipment reserves or ar-
rangements, satisfy the needs identified under 
subparagraphs (A) and (B); 
(D) the potential locations for, and feasi-
bility and appropriate number of, strategic stor-
age locations for reserve equipment, including 
consideration of— 
(i) the physical security of such loca-
tions; 
(ii) the protection of the confiden-
tiality of such locations; and 
(iii) the proximity of such locations to 
sites of potentially critically damaged large 
power transformers and substations that 
are critical electric infrastructure or serve 
defense and military installations, so as to 
enable efficient delivery of equipment to 
such sites; 
(E) the necessary degree of flexibility of 
spare large power transformers to be included 
in the Strategic Transformer Reserve to con-
form to different substation configurations, in-
cluding consideration of transformer—
(i) power and voltage rating for each 
winding; 
(ii) overload requirements; 
(iii) impedance between windings; 
(iv) configuration of windings; and 
(v) tap requirements; 
(F) an estimate of the direct cost of the 
Strategic Transformer Reserve, as proposed, in-
cluding— 
(i) the cost of storage facilities; 
(ii) the cost of the equipment; and 
(iii) management, maintenance, and 
operation costs; 
(G) the funding options available to estab-
lish, stock, manage, and maintain the Strategic 
Transformer Reserve, including consideration of 
fees on owners and operators of bulk-power sys-
tem facilities, critical electric infrastructure, 
and defense and military installations relying on 
the Strategic Transformer Reserve, use of Fed-
eral appropriations, and public-private cost- 
sharing options; 
(H) the ease and speed of transportation, 
installation, and energization of spare large 
power transformers to be included in the Stra-
tegic Transformer Reserve, including consider-
ation of factors such as— 
(i) transformer transportation weight; 
(ii) transformer size; 
(iii) topology of critical substations; 
(iv) availability of appropriate trans-
former mounting pads; 
(v) flexibility of the spare large power 
transformers as described in subparagraph 
(E); and 
(vi) ability to rapidly transition a 
spare large power transformer from stor-
age to energization; 
(I) eligibility criteria for withdrawal of 
equipment from the Strategic Transformer Re-
serve; 
(J) the process by which owners or opera-
tors of critically damaged large power trans-
formers or substations that are critical electric 
infrastructure or serve defense and military in-
stallations may apply for a withdrawal from the 
Strategic Transformer Reserve; 
(K) the process by which equipment with-
drawn from the Strategic Transformer Reserve
is returned to the Strategic Transformer Re-
serve or is replaced; 
(L) possible fees to be paid by users of 
equipment withdrawn from the Strategic Trans-
former Reserve; 
(M) possible fees to be paid by owners and 
operators of large power transformers and sub-
stations that are critical electric infrastructure 
or serve defense and military installations to 
cover operating costs of the Strategic Trans-
former Reserve; 
(N) the domestic and international large 
power transformer supply chain; 
(O) the potential reliability, cost, and oper-
ational benefits of including emergency mobile 
substations in any Strategic Transformer Re-
serve established under this section; and 
(P) other considerations for designing, con-
structing, stocking, funding, and managing the 
Strategic Transformer Reserve. 
(d) ESTABLISHMENT.—The Secretary may establish 
a Strategic Transformer Reserve in accordance with the 
plan prepared pursuant to subsection (c) after the date 
that is 6 months after the date on which such plan is sub-
mitted to Congress.
(e) DISCLOSURE OF INFORMATION.—Any informa-
tion included in the Strategic Transformer Reserve plan, 
or shared in the preparation and development of such 
plan, the disclosure of which the agency reasonably fore-
sees would cause harm to critical electric infrastructure, 
shall be deemed to be critical electric infrastructure infor-
mation for purposes of section 215A(d) of the Federal 
Power Act. 
SEC. 1106. CYBER SENSE. 
(a) IN GENERAL.—The Secretary of Energy shall es-
tablish a voluntary Cyber Sense program to identify and 
promote cyber-secure products intended for use in the 
bulk-power system, as defined in section 215(a) of the 
Federal Power Act (16 U.S.C. 824o(a)). 
(b) PROGRAM REQUIREMENTS.—In carrying out sub-
section (a), the Secretary of Energy shall— 
(1) establish a Cyber Sense testing process to 
identify products and technologies intended for use 
in the bulk-power system, including products relat-
ing to industrial control systems, such as supervisory 
control and data acquisition systems; 
(2) for products tested and identified under the 
Cyber Sense program, establish and maintain cyber-
security vulnerability reporting processes and a re-
lated database;
(3) promulgate regulations regarding vulner-
ability reporting processes for products tested and 
identified under the Cyber Sense program; 
(4) provide technical assistance to utilities, 
product manufacturers, and other electric sector 
stakeholders to develop solutions to mitigate identi-
fied vulnerabilities in products tested and identified 
under the Cyber Sense program; 
(5) biennially review products tested and identi-
fied 
under 
the 
Cyber 
Sense 
program 
for 
vulnerabilities and provide analysis with respect to 
how such products respond to and mitigate cyber 
threats; 
(6) develop procurement guidance for utilities 
for products tested and identified under the Cyber 
Sense program; 
(7) provide reasonable notice to the public, and 
solicit comments from the public, prior to estab-
lishing or revising the Cyber Sense testing process; 
(8) oversee Cyber Sense testing carried out by 
third parties; and 
(9) consider incentives to encourage the use in 
the bulk-power system of products tested and identi-
fied under the Cyber Sense program.
(c) DISCLOSURE
OF INFORMATION.—Any vulner-
ability reported pursuant to regulations promulgated 
under subsection (b)(3), the disclosure of which the agency 
reasonably foresees would cause harm to critical electric 
infrastructure (as defined in section 215A of the Federal 
Power Act), shall be deemed to be critical electric infra-
structure information for purposes of section 215A(d) of 
the Federal Power Act. 
(d) FEDERAL GOVERNMENT LIABILITY.—Consistent 
with other voluntary Federal Government certification 
programs, nothing in this section shall be construed to au-
thorize the commencement of an action against the United 
States Government with respect to the testing and identi-
fication of a product under the Cyber Sense program. 
SEC. 1107. STATE COVERAGE AND CONSIDERATION OF 
PURPA STANDARDS FOR ELECTRIC UTILI-
TIES. 
(a) STATE CONSIDERATION OF RESILIENCY AND AD-
VANCED ENERGY ANALYTICS TECHNOLOGIES AND RELI-
ABLE GENERATION.— 
(1) CONSIDERATION.—Section 111(d) of the 
Public Utility Regulatory Policies Act of 1978 (16 
U.S.C. 2621(d)) is amended by adding the following 
at the end:
‘‘(20) IMPROVING THE RESILIENCE OF ELEC-
TRIC INFRASTRUCTURE.— 
‘‘(A) IN
GENERAL.—Each electric utility 
shall develop a plan to use resiliency-related 
technologies, upgrades, measures, and other ap-
proaches designed to improve the resilience of 
electric infrastructure, mitigate power outages, 
continue delivery of vital services, and maintain 
the flow of power to facilities critical to public 
health, safety, and welfare, to the extent prac-
ticable using the most current data, metrics, 
and frameworks related to current and future 
threats, including physical and cyber attacks, 
electromagnetic pulse attacks, geomagnetic dis-
turbances, seismic events, and severe weather 
and other environmental stressors. 
‘‘(B) 
RESILIENCY-RELATED
TECH-
NOLOGIES.—For purposes of this paragraph, 
examples of resiliency-related technologies, up-
grades, measures, and other approaches in-
clude— 
‘‘(i) hardening, or other enhanced pro-
tection, of utility poles, wiring, cabling, 
and other distribution components, facili-
ties, or structures;
‘‘(ii) advanced grid technologies capa-
ble of isolating or repairing problems re-
motely, such as advanced metering infra-
structure, high-tech sensors, grid moni-
toring and control systems, and remote re-
configuration and redundancy systems; 
‘‘(iii) cybersecurity products and com-
ponents; 
‘‘(iv) distributed generation, including 
back-up generation to power critical facili-
ties and essential services, and related inte-
gration components, such as advanced in-
verter technology; 
‘‘(v) microgrid systems, including hy-
brid microgrid systems for isolated commu-
nities; 
‘‘(vi) combined heat and power; 
‘‘(vii) waste heat resources; 
‘‘(viii) non-grid-scale energy storage 
technologies; 
‘‘(ix) wiring, cabling, and other dis-
tribution components, including submers-
ible distribution components, and enclo-
sures;
‘‘(x) electronically controlled reclosers 
and similar technologies for power restora-
tion, including emergency mobile sub-
stations, as defined in section 1105 of the 
North American Energy Security and In-
frastructure Act of 2015; 
‘‘(xi) advanced energy analytics tech-
nology, such as Internet-based and cloud- 
based computing solutions and subscription 
licensing models; 
‘‘(xii) measures that enhance resil-
ience through planning, preparation, re-
sponse, and recovery activities; 
‘‘(xiii) operational capabilities to en-
hance resilience through rapid response re-
covery; and 
‘‘(xiv) measures to ensure availability 
of key critical components through con-
tracts, cooperative agreements, stockpiling 
and prepositioning, or other measures. 
‘‘(C) RATE RECOVERY.—Each State regu-
latory authority (with respect to each electric 
utility for which it has ratemaking authority) 
shall consider authorizing each such electric 
utility to recover any capital, operating expendi-
ture, or other costs of the electric utility related 
to the procurement, deployment, or use of resil-
iency-related technologies, including a reason-
able rate of return on the capital expenditures 
of the electric utility for the procurement, de-
ployment, or use of resiliency-related tech-
nologies. 
‘‘(21) PROMOTING INVESTMENTS IN ADVANCED 
ENERGY ANALYTICS TECHNOLOGY.— 
‘‘(A) IN
GENERAL.—Each electric utility 
shall develop and implement a plan for deploy-
ing advanced energy analytics technology. 
‘‘(B) RATE RECOVERY.—Each State regu-
latory authority (with respect to each electric 
utility for which it has ratemaking authority) 
shall consider confirming and clarifying, if nec-
essary, that each such electric utility is author-
ized to recover the costs of the electric utility 
relating to the procurement, deployment, or use 
of advanced energy analytics technology, includ-
ing a reasonable rate of return on all such costs 
incurred by the electric utility for the procure-
ment, deployment, or use of advanced energy 
analytics technology, provided such technology 
is used by the electric utility for purposes of re-
alizing operational efficiencies, cost savings, en-
hanced energy management and customer en-
gagement, improvements in system reliability, 
safety, and cybersecurity, or other benefits to 
ratepayers. 
‘‘(C) 
ADVANCED
ENERGY
ANALYTICS 
TECHNOLOGY.—For purposes of this para-
graph, examples of advanced energy analytics 
technology include Internet-based and cloud- 
based computing solutions and subscription li-
censing models, including software as a service 
that uses cyber-physical systems to allow the 
correlation of data aggregated from appropriate 
data sources and smart grid sensor networks, 
employs analytics and machine learning, or em-
ploys other advanced computing solutions and 
models. 
‘‘(22) ASSURING ELECTRIC RELIABILITY WITH 
RELIABLE GENERATION.— 
‘‘(A) ASSURANCE
OF
ELECTRIC
RELI-
ABILITY.—Each electric utility shall adopt or 
modify policies to ensure that such electric util-
ity incorporates reliable generation into its inte-
grated resource plan to assure the availability
of electric energy over a 10-year planning pe-
riod. 
‘‘(B) RELIABLE
GENERATION.—For pur-
poses of this paragraph, ‘reliable generation’ 
means electric generation facilities with reli-
ability attributes that include— 
‘‘(i)(I) possession of adequate fuel on- 
site to enable operation for an extended pe-
riod of time; 
‘‘(II) the operational ability to gen-
erate electric energy from more than one 
source; or 
‘‘(III) fuel certainty, through firm 
contractual obligations (which may not be 
required to be for a period longer than one 
year), that ensures adequate fuel supply to 
enable operation, for an extended period of 
time, for the duration of an emergency or 
severe weather conditions; 
‘‘(ii) operational characteristics that 
enable the generation of electric energy for 
the duration of an emergency or severe 
weather conditions; and 
‘‘(iii) unless procured through other 
procurement mechanisms, essential reli-
ability services, including frequency sup-
port and regulation services. 
‘‘(23) 
SUBSIDIZATION
OF
CUSTOMER-SIDE 
TECHNOLOGY.— 
‘‘(A) CONSIDERATION.—To the extent that 
a State regulatory authority may require or 
allow rates charged by any electric utility for 
which it has ratemaking authority to electric 
consumers that do not use a customer-side 
technology to include any cost, fee, or charge 
that directly or indirectly cross-subsidizes the 
deployment, construction, maintenance, or oper-
ation of that customer-side technology, such au-
thority shall evaluate whether subsidizing the 
deployment, construction, maintenance, or oper-
ation of a customer-side technology would— 
‘‘(i) result in benefits predominately 
enjoyed by only the users of that customer- 
side technology; 
‘‘(ii) shift costs of a customer-side 
technology to electricity consumers that do 
not use that customer-side technology, par-
ticularly where disparate economic or re-
source conditions exist among the elec-
tricity consumers cross-subsidizing the cos-
tumer-side technology; 
‘‘(iii) negatively affect resource utiliza-
tion, fuel diversity, or grid security; 
‘‘(iv) provide any unfair competitive 
advantage to market the customer-side 
technology; and 
‘‘(v) be necessary to fulfill an obliga-
tion to serve electric consumers. 
‘‘(B) PUBLIC NOTICE.—Each State regu-
latory authority shall make available to the pub-
lic the evaluation completed under subpara-
graph (A) at least 90 days prior to any pro-
ceedings in which such authority considers the 
cross-subsidization of a customer-side tech-
nology. 
‘‘(C) CUSTOMER-SIDE TECHNOLOGY.—For 
purposes of this paragraph, the term ‘customer- 
side technology’ means a device connected to 
the electricity distribution system— 
‘‘(i) at, or on the customer side of, the 
meter; or 
‘‘(ii) that, if owned or operated by or 
on behalf of an electric utility, would other-
wise be at, or on the customer side of, the 
meter.’’. 
(2) COMPLIANCE.— 
(A) TIME
LIMITATIONS.—Section 112(b) 
of the Public Utility Regulatory Policies Act of 
1978 (16 U.S.C. 2622(b)) is amended by add-
ing at the end the following: 
‘‘(7)(A) Not later than 1 year after the date of 
enactment of this paragraph, each State regulatory 
authority (with respect to each electric utility for 
which it has ratemaking authority) and each non-
regulated electric utility, as applicable, shall com-
mence the consideration referred to in section 111, 
or set a hearing date for consideration, with respect 
to the standards established by paragraphs (20), 
(22), and (23) of section 111(d). 
‘‘(B) Not later than 2 years after the date of 
the enactment of this paragraph, each State regu-
latory authority (with respect to each electric utility 
for which it has ratemaking authority) and each 
nonregulated electric utility, as applicable, shall com-
plete the consideration, and shall make the deter-
mination, referred to in section 111 with respect to 
each standard established by paragraphs (20), (22), 
and (23) of section 111(d).
‘‘(8)(A) Not later than 6 months after the date 
of enactment of this paragraph, each State regu-
latory authority (with respect to each electric utility 
for which it has ratemaking authority) and each 
nonregulated electric utility shall commence the con-
sideration referred to in section 111, or set a hear-
ing date for consideration, with respect to the stand-
ard established by paragraph (21) of section 111(d). 
‘‘(B) Not later than 1 year after the date of en-
actment of this paragraph, each State regulatory au-
thority (with respect to each electric utility for which 
it has ratemaking authority) and each nonregulated 
electric utility shall complete the consideration, and 
shall make the determination, referred to in section 
111 with respect to the standard established by 
paragraph (21) of section 111(d).’’. 
(B) FAILURE TO COMPLY.—Section 112(c) 
of the Public Utility Regulatory Policies Act of 
1978 (16 U.S.C. 2622(c)) is amended by add-
ing the following at the end: ‘‘In the case of the 
standards established by paragraphs (20) 
through (23) of section 111(d), the reference 
contained in this subsection to the date of en-
actment of this Act shall be deemed to be a ref-
erence to the date of enactment of such para-
graphs.’’. 
(C) PRIOR STATE ACTIONS.—Section 112 
of the Public Utility Regulatory Policies Act of 
1978 (16 U.S.C. 2622) is amended by adding 
at the end the following new subsection: 
‘‘(g) PRIOR STATE ACTIONS.—Subsections (b) and 
(c) of this section shall not apply to a standard established 
by paragraph (20), (21), (22), or (23) of section 111(d) 
in the case of any electric utility in a State if— 
‘‘(1) before the date of enactment of this sub-
section, the State has implemented for such utility 
the standard concerned (or a comparable standard); 
‘‘(2) the State regulatory authority for such 
State or relevant nonregulated electric utility has 
conducted a proceeding to consider implementation 
of the standard concerned (or a comparable stand-
ard) for such utility during the 3-year period ending 
on the date of enactment of this subsection; or 
‘‘(3) the State legislature has voted on the im-
plementation of the standard concerned (or a com-
parable standard) for such utility during the 3-year 
period ending on the date of enactment of this sub-
section.’’.
(b) COVERAGE FOR COMPETITIVE MARKETS.—Sec-
tion 102 of the Public Utility Regulatory Policies Act of 
1978 (16 U.S.C. 2612) is amended by adding at the end 
the following: 
‘‘(d) COVERAGE FOR COMPETITIVE MARKETS.—The 
requirements of this title do not apply to the operations 
of an electric utility, or to proceedings respecting such op-
erations, to the extent that such operations or proceedings, 
or any portion thereof, relate to the competitive sale of 
retail electric energy that is unbundled or separated from 
the regulated provision or sale of distribution service.’’. 
SEC. 1108. RELIABILITY ANALYSIS FOR CERTAIN RULES 
THAT AFFECT ELECTRIC GENERATING FA-
CILITIES. 
(a) APPLICABILITY.—This section shall apply with 
respect to any proposed or final covered rule issued by 
a Federal agency for which compliance with the rule may 
impact an electric utility generating unit or units, includ-
ing by resulting in closure or interruption to operations 
of such a unit or units. 
(b) RELIABILITY ANALYSIS.— 
(1) ANALYSIS OF RULES.—The Federal Energy 
Regulatory Commission, in consultation with the 
Electric Reliability Organization, shall conduct an 
independent reliability analysis of a proposed or final
covered rule under this section to evaluate the antici-
pated effects of implementation and enforcement of 
the rule on— 
(A) electric reliability and resource ade-
quacy; 
(B) the electricity generation portfolio of 
the United States; 
(C) the operation of wholesale electricity 
markets; and 
(D) energy delivery and infrastructure, in-
cluding electric transmission facilities and nat-
ural gas pipelines. 
(2) RELEVANT INFORMATION.— 
(A) MATERIALS
FROM
FEDERAL
AGEN-
CIES.—A Federal agency shall provide to the 
Commission materials and information relevant 
to the analysis required under paragraph (1) 
for a rule, including relevant data, modeling, 
and resource adequacy and reliability assess-
ments, prepared or relied upon by such agency 
in developing the rule. 
(B) ANALYSES FROM OTHER ENTITIES.— 
The Electric Reliability Organization, regional 
entities, regional transmission organizations, 
independent system operators, and other reli-
ability coordinators and planning authorities 
shall timely conduct analyses and provide such 
information as may be reasonably requested by 
the Commission. 
(3) NOTICE.—A Federal agency shall provide to 
the Commission notice of the issuance of any pro-
posed or final covered rule not later than 15 days 
after the date of such issuance. 
(c) PROPOSED RULES.—Not later than 150 days 
after the date of publication in the Federal Register of 
a proposed rule described in subsection (a), the Federal 
Energy Regulatory Commission shall make available to 
the public an analysis of the proposed rule conducted in 
accordance with subsection (b), and any relevant special 
assessment or seasonal or long-term reliability assessment 
completed by the Electric Reliability Organization. 
(d) FINAL RULES.— 
(1) INCLUSION.—A final rule described in sub-
section (a) shall include, if available at the time of 
issuance, a copy of the analysis conducted pursuant 
to subsection (c) of the rule as proposed. 
(2) ANALYSIS.—Not later than 120 days after 
the date of publication in the Federal Register of a 
final rule described in subsection (a), the Federal 
Energy Regulatory Commission shall make available
to the public an analysis of the final rule conducted 
in accordance with subsection (b), and any relevant 
special assessment or seasonal or long-term reli-
ability assessment completed by the Electric Reli-
ability Organization. 
(e) DEFINITIONS.—In this section: 
(1) ELECTRIC
RELIABILITY
ORGANIZATION.— 
The term ‘‘Electric Reliability Organization’’ has the 
meaning given to such term in section 215(a) of the 
Federal Power Act (16 U.S.C. 824o(a)). 
(2) FEDERAL
AGENCY.—The term ‘‘Federal 
agency’’ means an agency, as that term is defined 
in section 551 of title 5, United States Code. 
(3) COVERED RULE.—The term ‘‘covered rule’’ 
means a proposed or final rule that is estimated by 
the Federal agency issuing the rule, or the Director 
of the Office of Management and Budget, to result 
in 
an 
annual 
effect 
on 
the 
economy 
of 
$1,000,000,000 or more. 
SEC. 1109. INCREASED ACCOUNTABILITY WITH RESPECT 
TO CARBON CAPTURE, UTILIZATION, AND SE-
QUESTRATION PROJECTS. 
(a) DOE EVALUATION.— 
(1) IN GENERAL.—The Secretary of Energy (in 
this section referred to as the ‘‘Secretary’’) shall, in
accordance with this section, annually conduct an 
evaluation, and make recommendations, with respect 
to each project conducted by the Secretary for re-
search, development, demonstration, or deployment 
of carbon capture, utilization, and sequestration 
technologies (also known as carbon capture and stor-
age and utilization technologies). 
(2) SCOPE.—For purposes of this section, a 
project includes any contract, lease, cooperative 
agreement, or other similar transaction with a public 
agency or private organization or person, entered 
into or performed, or any payment made, by the 
Secretary for research, development, demonstration, 
or deployment of carbon capture, utilization, and se-
questration technologies. 
(b) REQUIREMENTS
FOR
EVALUATION.—In con-
ducting an evaluation of a project under this section, the 
Secretary shall— 
(1) examine if the project has made advance-
ments toward achieving any specific goal of the 
project with respect to a carbon capture, utilization, 
and sequestration technology; and 
(2) evaluate and determine if the project has 
made significant progress in advancing a carbon 
capture, utilization, and sequestration technology.
(c) RECOMMENDATIONS.—For each evaluation of a 
project conducted under this section, if the Secretary de-
termines that— 
(1) significant progress in advancing a carbon 
capture, utilization, and sequestration technology 
has been made, the Secretary shall assess the fund-
ing of the project and make a recommendation as to 
whether increased funding is necessary to advance 
the project; or 
(2) significant progress in advancing a carbon 
capture, utilization, and sequestration technology 
has not been made, the Secretary shall— 
(A) assess the funding of the project and 
make a recommendation as to whether in-
creased funding is necessary to advance the 
project; 
(B) assess and determine if the project has 
reached its full potential; and 
(C) make a recommendation as to whether 
the project should continue. 
(d) REPORTS.— 
(1) REPORT
ON
EVALUATIONS
AND
REC-
OMMENDATIONS.—Not later than 2 years after the 
date of enactment of this Act, and every 2 years 
thereafter, the Secretary shall—
(A) issue a report on the evaluations con-
ducted and recommendations made during the 
previous year pursuant to this section; and 
(B) make each such report available on the 
Internet website of the Department of Energy. 
(2) REPORT.—Not later than 2 years after the 
date of enactment of this Act, and every 3 years 
thereafter, the Secretary shall submit to the Sub-
committee on Energy and Power of the Committee 
on Energy and Commerce and the Committee on 
Science, Space, and Technology of the House of 
Representatives and the Committee on Energy and 
Natural Resources and the Committee on Com-
merce, Science, and Transportation of the Senate a 
report on— 
(A) the evaluations conducted and rec-
ommendations made during the previous 3 
years pursuant to this section; and 
(B) the progress of the Department of En-
ergy in advancing carbon capture, utilization, 
and 
sequestration 
technologies, 
including 
progress in achieving the Department of Ener-
gy’s goal of having an array of advanced carbon 
capture and sequestration technologies ready by 
2020 for large-scale demonstration.
SEC. 1110. RELIABILITY AND PERFORMANCE ASSURANCE 
IN 
REGIONAL 
TRANSMISSION 
ORGANIZA-
TIONS. 
Part II of the Federal Power Act (16 U.S.C. 824 et 
seq.), as amended by section 1104, is further amended by 
adding after section 215A the following new section: 
‘‘SEC. 215B. RELIABILITY AND PERFORMANCE ASSURANCE 
IN 
REGIONAL 
TRANSMISSION 
ORGANIZA-
TIONS. 
‘‘(a) EXISTING CAPACITY MARKETS.— 
‘‘(1) ANALYSIS CONCERNING CAPACITY MARKET 
DESIGN.—Not later than 180 days after the date of 
enactment of this section, each Regional Trans-
mission Organization, and each Independent System 
Operator, that operates a capacity market, or a com-
parable market intended to ensure the procurement 
and availability of sufficient future electric energy 
resources, that is subject to the jurisdiction of the 
Commission, shall provide to the Commission an 
analysis of how the structure of such market meets 
the following criteria: 
‘‘(A) The structure of such market utilizes 
competitive market forces to the extent prac-
ticable in procuring capacity resources. 
‘‘(B) Consistent with subparagraph (A), 
the structure of such market includes resource-
neutral performance criteria that ensure the 
procurement of sufficient capacity from physical 
generation facilities that have reliability at-
tributes that include— 
‘‘(i)(I) possession of adequate fuel on- 
site to enable operation for an extended pe-
riod of time; 
‘‘(II) the operational ability to gen-
erate electric energy from more than one 
fuel source; or 
‘‘(III) fuel certainty, through firm 
contractual obligations, that ensures ade-
quate fuel supply to enable operation, for 
an extended period of time, for the dura-
tion of an emergency or severe weather 
conditions; 
‘‘(ii) operational characteristics that 
enable the generation of electric energy for 
the duration of an emergency or severe 
weather conditions; and 
‘‘(iii) unless procured through other 
markets or procurement mechanisms, es-
sential reliability services, including fre-
quency support and regulation services.
‘‘(2) COMMISSION EVALUATION AND REPORT.— 
Not later than 1 year after the date of enactment 
of this section, the Commission shall make publicly 
available, and submit to the Committee on Energy 
and Commerce in the House of Representatives and 
the Committee on Energy and Natural Resources in 
the Senate, a report containing— 
‘‘(A) evaluation of whether the structure of 
each market addressed in an analysis submitted 
pursuant to paragraph (1) meets the criteria 
under such paragraph, based on the analysis; 
and 
‘‘(B) to the extent a market so addressed 
does not meet such criteria, any recommenda-
tions with respect to the procurement of suffi-
cient capacity, as described in paragraph 
(1)(B). 
‘‘(b) COMMISSION EVALUATION AND REPORT FOR 
NEW SCHEDULES.— 
‘‘(1) INCLUSION OF ANALYSIS IN FILING.—Ex-
cept as provided in subsection (a)(2), whenever a 
Regional Transmission Organization or Independent 
System Operator files a new schedule under section 
205 to establish a market described in subsection 
(a)(1), or that substantially modifies the capacity
market design of a market described in subsection 
(a)(1), the Regional Transmission Organization or 
Independent System Operator shall include in any 
such filing the analysis required by subsection 
(a)(1). 
‘‘(2) EVALUATION
AND
REPORT.—Not later 
than 180 days of receiving an analysis under para-
graph (1), the Commission shall make publicly avail-
able, and submit to the Committee on Energy and 
Commerce in the House of Representatives and the 
Committee on Energy and Natural Resources in the 
Senate, a report containing— 
‘‘(A) an evaluation of whether the struc-
ture of the market addressed in the analysis 
meets the criteria under subsection (a)(1), 
based on the analysis; and 
‘‘(B) to the extent the market does not 
meet such criteria, any recommendations with 
respect to the procurement of sufficient capac-
ity, as described in subsection (a)(1)(B). 
‘‘(c) EFFECT ON EXISTING APPROVALS.—Nothing in 
this section shall be considered to— 
‘‘(1) require a modification of the Commission’s 
approval of the capacity market design approved
262 
lated to the primary purpose of the contract without 
the customer’s consent. 
(5)(A) Nothing in this section shall preclude a 
local publicly owned electric utility from using cus-
tomer aggregate electrical consumption data for 
analysis, reporting, or program management if all 
information has been removed regarding the indi-
vidual identity of a customer. 
(B) Nothing in this section shall preclude a 
local publicly owned electric utility from disclosing a 
customer’s electrical consumption data to a third 
party for system, grid, or operational needs, or the 
implementation of demand response, energy manage-
ment, or energy efficiency programs, provided, for 
contracts entered into after January 1, 2016, that 
the utility has required by contract that the third 
party implement and maintain reasonable security 
procedures and practices appropriate to the nature 
of the information, to protect the personal informa-
tion from unauthorized access, destruction, use, 
modification, or disclosure. 
(C) Nothing in this section shall preclude a 
local publicly owned electric utility from disclosing 
electrical consumption data as required under State 
or Federal law.