694 
(2) MEETINGS AND WORKING GROUP FOR DE-
VELOPMENT OF INTEROPERABILITY PROTOCOLS AND 
MODEL STANDARDS.—Within 60 days after the en-
actment of this section, the Director of the National 
Institute of Standards and Technology shall convene 
meetings of experts and stakeholders to discuss and 
achieve such standards, for the purpose of forming 
an ongoing voluntary working group. Upon the cre-
ation of the Grid Modernization Commission, the 
Commission shall assume the role of convening fur-
ther such meetings and collaborating with such a 
working group to continue progress towards such 
standards, with continued technical support from the 
Director of the National Institute of Standards and 
Technology. The Gridwise Architecture Council, the 
International Electrical and Electronics Engineers, 
the National Electric Reliability Organization recog-
nized by the Federal Energy Regulatory Commis-
sion, and National Electrical Manufacturer’s Asso-
ciation shall be among stakeholders invited to such 
meetings, together with other groups of manufactur-
ers of equipment that could usefully be Smart-Grid 
capable, groups of customers, State and Federal reg-
ulators, electric utility groups, communications and 
computer experts, and other Federal offices and 
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agencies that have roles related to security, commu-
nications, computerization, and reliability of the elec-
tricity system. 
(3) REPORTING AND ADOPTION OF PROTOCOLS 
AND MODEL STANDARDS.— 
(A) REPORTING REQUIREMENTS.—The Di-
rector of the National Institute of Standards 
and Technology and the Grid Modernization 
Commission, after it is created, shall report an-
nually to Congress on the progress of creating 
such protocols and model standards. 
(B) ADOPTION.—The Commission shall re-
view such protocols and standards as are rec-
ommended by the working group and, upon 
finding that they meet the goals stated in para-
graph (1), shall publish such finding, and shall 
encourage utilities, regulators, and other stake-
holders to adopt to such standards. 
(C) PUBLICATION.—Except to the extent 
they may allow or create threats to grid reli-
ability and security, such standards and proto-
cols shall be made publicly available for general 
use by manufacturers, utilities, regulators, and 
others. 
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(D) GOAL.—The intent of Congress is that 
such protocols and model standards will be ini-
tially developed, reviewed, and approved for 
general adoption, subject to further improve-
ments, within 3 years of the enactment of this 
section. 
(f) AUTHORIZATION.—There are authorized to be ap-
propriated for the purposes of this section— 
(1) $5,000,000 to the National Institute of 
Standards and Technology for each of fiscal years 
2009 through 2012, and such sums as may there-
after be necessary to support the purposes of this 
section; and 
(2) $20,000,000 to the Secretary of Energy to 
support the operations of the Grid Modernization 
Commission for each of fiscal years 2009 through 
2020. 
SEC. 9114. FEDERAL MATCHING FUND FOR SMART GRID IN-
VESTMENT COSTS. 
(a) MATCHING FUND.—The Secretary of Energy 
shall establish a Smart Grid Investment Matching Grant 
Program to provide reimbursement of one-fourth of quali-
fying Smart Grid investments. 
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697 
(b) QUALIFYING INVESTMENTS.—Qualifying Smart 
Grid investments may include any of the following made 
on or after the date of enactment of this Act: 
(1) In the case of appliances covered for pur-
poses of establishing energy conservation standards 
under part B of title III of the Energy Policy and 
Conservation Act of 1975 (42 U.S.C. 6291 and fol-
lowing), the documented expenditures incurred by a 
manufacturer of such appliances associated with 
purchasing or designing, creating the ability to man-
ufacture, and manufacturing and installing for one 
calendar year, internal devices that allow the appli-
ance to engage in Smart Grid functions. 
(2) In the case of specialized electricity-using 
equipment, including motors and drivers, installed in 
industrial or commercial applications, the docu-
mented expenditures incurred by its owner or its 
manufacturer of installing devices or modifying that 
equipment to engage in Smart Grid functions. 
(3) In the case of transmission and distribution 
equipment fitted with monitoring and communica-
tions devices to enable smart grid functions, the doc-
umented expenditures incurred by the electric utility 
to purchase and install such monitoring and commu-
nications devices. 
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(4) In the case of metering devices, sensors, 
control devices, and other devices integrated with 
and attached to an electric utility system that are 
capable of engaging in Smart Grid functions, the 
documented expenditures incurred by the electric 
utility and its customers to purchase and install 
such devices. 
(5) In the case of software that enables devices 
or computers to engage in Smart Grid functions, the 
documented purchase costs of the software. 
(6) In the case of entities that operate or co-
ordinate operations of regional electric grids, the 
documented expenditures for purchasing and install-
ing such equipment that allows Smart Grid func-
tions to operate and be combined or coordinated 
among multiple electric utilities and between that re-
gion and other regions. 
(7) In the case of persons or entities other than 
electric utilities owning and operating a distributed 
electricity generator, the documented expenditures of 
enabling that generator to be monitored, controlled, 
or otherwise integrated into grid operations and elec-
tricity flows on the grid utilizing Smart Grid func-
tions. 
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(8) In the case of electric or hybrid-electric ve-
hicles, the documented expenses for devices that 
allow the vehicle to engage in Smart Grid functions. 
(9) The documented expenditures related to 
purchasing and implementing Smart Grid functions 
in such other cases as the Secretary of Energy shall 
identify. In making such grants, the Secretary shall 
seek to reward innovation and early adaptation, even 
if success is not complete, rather than deployment of 
proven and commercially viable technologies. 
(c) 
INVESTMENTS
NOT
INCLUDED.—Qualifying 
Smart Grid investments do not include any of the fol-
lowing: 
(1) Expenditures for electricity generation, 
transmission, or distribution infrastructure or equip-
ment not directly related to enabling Smart Grid 
functions. 
(2) After the effective date of a standard under 
paragraph (21) of section 111(d) of the Public Util-
ity Regulatory Policies Act of 1978 (relating to 
Smart Grid information), an investment that is not 
in compliance with such standard. 
(3) After the development and publication by 
the Commission of protocols and model standards 
for interoperability of smart grid devices and tech-
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nologies, an investment that fails to incorporate any 
of such protocols or model standards. 
(4) Expenditures for physical interconnection of 
generators or other devices to the grid except those 
that are directly related to enabling Smart Grid 
functions. 
(5) Expenditures for ongoing salaries, benefits, 
or personnel costs not incurred in the initial installa-
tion, training, or start up of smart grid functions. 
(6) Expenditures for travel, lodging, meals or 
other personal costs. 
(7) Ongoing or routine operation, billing, cus-
tomer relations, security, and maintenance expendi-
tures. 
(8) Such other expenditures that the Secretary 
of Energy determines not to be Qualifying Smart 
Grid Investments by reason of the lack of the ability 
to perform smart grid functions or lack of direct re-
lationship to smart grid functions. 
(d) SMART GRID FUNCTIONS.—The term ‘‘smart 
grid functions’’ means any of the following: 
(1) The ability to develop, store, send and re-
ceive digital information concerning electricity use, 
costs, prices, time of use, nature of use, storage, or 
other information relevant to device, grid, or utility 
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operations, to or from or by means of the electric 
utility system, through one or a combination of de-
vices and technologies. 
(2) The ability to develop, store, send and re-
ceive digital information concerning electricity use, 
costs, prices, time or use, nature of use, storage, or 
other information relevant to device, grid, or utility 
operations to or from a computer or other control 
device. 
(3) The ability to measure or monitor electricity 
use as a function of time of day, power quality char-
acteristics such as voltage level, current, cycles per 
second, or source or type of generation and to store, 
synthesize or report that information by digital 
means. 
(4) The ability to sense and localize disruptions 
or changes in power flows on the grid and commu-
nicate such information instantaneously and auto-
matically for purposes of enabling automatic protec-
tive responses to sustain reliability and security of 
grid operations. 
(5) The ability to detect, prevent, communicate 
with regard to, respond to, or recover from system 
security threats, including cyber-security threats and 
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