(4) Development and incorporation of demand 
response demand-side resources, and energy effi-
ciency resources. 
(5) Deployment of ‘‘smart’’ technologies for me-
tering, communications concerning grid operations 
and status, and distribution automation. 
(6) Integration of ‘‘smart’’ appliances and con-
sumer devices. 
(7) Deployment and integration of renewable 
energy resources, both to the grid and on the cus-
tomer side of the electric meter. 
(8) Deployment and integration of advanced 
electricity storage and peak-sharing technologies, in-
cluding plug-in electric and hybrid electric vehicles, 
and thermal-storage air conditioning. 
(9) Provision to consumers of new information 
and control options. 
(10) Continual environmental improvement in 
electricity production and distribution. 
(11) Enhanced capacity and efficiency of elec-
tricity networks, reduction of line losses, and main-
tenance of power quality. 
(b) SUPPORT.—The Secretary of Energy and the 
Federal Energy Regulatory Commission and other Federal 
agencies as appropriate shall undertake programs to sup-
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port the development and demonstration of Smart Grid 
technologies and standards to maximize the achievement 
of these goals. 
(c) BARRIERS.—It is further the policy of the United 
States that no State, State agency, or local government 
or instrumentality thereof should prohibit, or erect unrea-
sonable barriers to, the deployment of smart grid tech-
nologies on an electric utility’s distribution facilities, or 
unreasonably limit the services that may be provided using 
such technologies. 
(d) INFORMATION.—It is further the policy of the 
United States that electricity purchasers are entitled to 
receive information about the varying value of electricity 
at different times and places, and that States shall not 
prohibit nor erect unreasonable barriers to the provision 
of such information flows to end users. 
SEC. 102. GRID MODERNIZATION COMMISSION. 
(a) ESTABLISHMENT AND MISSION.— 
(1) ESTABLISHMENT.—The President shall es-
tablish a Grid Modernization Commission composed 
of 9 members. Three members of the Commission 
shall be appointed by the President, and one each 
shall be appointed by the Speaker and minority lead-
er of the United States House of Representatives 
and by the majority leader and minority leader of 
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the United States Senate. Two members shall be ap-
pointed by the President from among persons rec-
ommended by an association representing State util-
ity regulatory commissioners. The President shall 
designate one Commissioner to serve as Chairperson. 
(2) MISSION.—The mission of the Grid Mod-
ernization Commission shall be to facilitate the 
adoption of Smart Grid standards, technologies, and 
practices across the Nation’s electricity grid to the 
point of general adoption and ongoing market sup-
port in the United States electric sector. The Com-
mission shall be responsible for monitoring develop-
ments, encouraging progress toward common stand-
ards and protocols, identifying barriers and pro-
posing solutions, coordinating with all Federal de-
partments and agencies, and coordinating ap-
proaches on smart grid implementation with States 
and local governmental authorities. 
(b) MEMBERSHIP.—The members appointed to the 
Commission shall, collectively, have qualifications in elec-
tric utility operations and infrastructure, digital informa-
tion and control technologies, security, market develop-
ment, finance and utility regulation, energy efficiency, de-
mand response, renewable energy, and consumer protec-
tion. 
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(c) AUTHORITIES TO INTERVENE.—The Commission 
shall have the authority to intervene and represent itself 
before the Federal Energy Regulatory Commission and 
other Federal and State agencies as it deems necessary 
to accomplish its mission. 
(d) TERMS OF OFFICE.—The term of office of each 
Commissioner shall be 5 years, and any member may be 
reappointed for not more than one additional term of 5 
years. 
(e) TERMINATION.—Unless extended by Act of Con-
gress, the Commission shall complete its work and cease 
its activities by January 1, 2020, or on such earlier date 
that the Commission determines that the proliferation, 
evolution, and adaptation of Smart Grid technologies no 
longer require Federal leadership and assistance. 
(f) COMPENSATION OF MEMBERS.—Each member of 
the Commission who is not an officer or employee of the 
Federal Government shall be compensated at a rate equal 
to the daily equivalent of the annual rate of basic pay pre-
scribed for level III of the Executive Schedule under sec-
tion 5315 of title 5, United States Code, for each day (in-
cluding travel time) during which such member is engaged 
in the performance of the duties of the Commission. All 
members of the Commission who are officers or employees 
of the United States shall serve without compensation in 
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addition to that received for their services as officers or 
employees of the United States. 
(g) TRAVEL EXPENSES.—The members of the Com-
mission shall be allowed travel expenses, including per 
diem in lieu of subsistence, at rates authorized for employ-
ees of agencies under subchapter I of chapter 57 of title 
5, United States Code, while away from their homes or 
regular places of business in the performance of services 
for the Commission. 
(h) MEETINGS.—The Commission shall meet at the 
call of the Chairman. Commission meetings shall be open 
to the public, but as many as three Commissioners may 
meet in private without constituting a meeting requiring 
public access. 
(i) APPLICABILITY
OF FEDERAL ADVISORY COM-
MITTEE ACT.—The Federal Advisory Committee Act (5 
U.S.C. App. 1 et seq.) shall not apply to the Commission. 
(j) OFFICES AND STAFF.—The Secretary of Energy 
shall provide the Commission with offices in the Depart-
ment of Energy and shall make available to the Commis-
sion the expertise and staff resources of both the Office 
of Electricity Delivery and Energy Reliability and the Of-
fice of Energy Efficiency and Renewable Energy. 
(k) DETAIL
OF GOVERNMENT EMPLOYEES.—Any 
Federal Government employee may be detailed to the 
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the same conditions as other departments and agencies of 
the Federal Government. 
SEC. 103. GRID ASSESSMENT AND REPORT. 
(a) IN GENERAL.—The Grid Modernization Commis-
sion shall undertake, and update on a biannual basis, an 
assessment of the progress toward modernizing the elec-
tric system from generation to ultimate electricity con-
sumption, including implementation of ‘‘smart grid’’ tech-
nologies. The Commission shall prepare this assessment 
with input from stakeholders including but not limited to 
electric utilities, other Federal offices, States, companies 
involved in developing related technologies, the National 
Electric Reliability Organization recognized by the Federal 
Energy Regulatory Commission, electricity customers, and 
persons with special related expertise. The assessment 
shall include each of the following: 
(1) An updated inventory of existing smart grid 
systems. 
(2) A description of the condition of existing 
grid infrastructure and procedures for determining 
the need for new infrastructure. 
(3) A description of any plans of States, utili-
ties, or others to introduce smart grid systems and 
technologies. 
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(4) An assessment of constraints to deployment 
of smart grid technology and most important oppor-
tunities for doing so, including the readiness or lack 
thereof of enabling technologies. 
(5) An assessment of remaining potential bene-
fits resulting from introduction of smart grid sys-
tems, including benefits related to demand-side effi-
ciencies, improved reliability, improved security, re-
duced prices, and improved integration of renewable 
resources. 
(6) Recommendations for legislative or regu-
latory changes to remove barriers to and create in-
centives for smart grid system implementation and 
to meet the policy goals of this title. 
(7) An estimate of the potential costs required 
for modernization of the electricity grid, with speci-
ficity relative to geographic areas and components of 
the grid, together with an assessment of whether the 
necessary funds would be available to meet such 
costs, and the sources of such funds. 
(8) An assessment of ancillary benefits to other 
economic sectors or activities beyond the electricity 
sector, such as potential broadband service over 
power lines. 
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(9) An assessment of technologies, activities or 
opportunities in energy end use devices, customer 
premises, buildings, and power generation and stor-
age devices that could accelerate or expand the im-
pact and effectiveness of smart grid advances. 
(10) An assessment of potential risks to per-
sonal privacy, corporate confidentiality, and grid se-
curity from the spread of smart grid technologies, 
and if so what additional measures and policies are 
needed to assure privacy and information protection 
for electric customers and grid partners, and cyber- 
security protection for extended grid systems. 
(11) An assessment of the readiness of market 
forces to drive further implementation and evolution 
of ‘‘smart grid’’ technologies in the absence of gov-
ernment leadership. 
(12) Recommendations to the Secretary of En-
ergy and other Federal officers on actions they 
should take to assist. 
The Commission may request electric utilities to provide 
information relating to deployment and planned deploy-
ment of smart grid systems and technologies. At the re-
quest of the utility, the Commission shall maintain the 
confidentiality of utility-specific or specific security-related 
information. The Commission shall provide opportunities 
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for input and comment by interested persons, including 
representatives of electricity consumers, Smart Grid tech-
nology service providers, the electric utility industry, and 
State and local government. 
(b) STATE AND REGIONAL ASSESSMENT AND RE-
PORT.—States or groups of States are encouraged to par-
ticipate in the development of State or region-specific com-
ponents of the assessment and report under subsection 
(a). Such State-specific components may address the as-
sessment and reporting criteria above but also may include 
but not be limited to any of the following: 
(1) Assessment of types of security threats to 
electricity delivery. 
(2) Energy assurance and response plans to ad-
dress security threats. 
(3) Plans for introduction of smart grid sys-
tems and technologies over 3, 5, and 10 year plan-
ning horizons. 
The Commission may make grants to States that begin 
development of a State or Regional Plan within 180 days 
after the enactment of this Act to offset up to one-half 
of the costs required to develop such plans. 
(c) SMART GRID REPORT.—Based on its completed 
initial assessment under subsection (a), the Commission 
shall submit a report to Congress and the President not 
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later than 2 years after the date of enactment of this Act 
and subsequent reports every 2 years thereafter. Each re-
port shall include recommendations to the President and 
to the Congress on actions necessary to modernize the 
electricity grid. The Commission shall annually update 
and revise its report and as well as conduct ongoing moni-
toring and evaluation activities. 
(d) CONSULTATION AND PUBLIC INPUT.—The Com-
mission shall consult with the Secretary of Energy and 
the Federal Energy Regulatory Commission on technical 
issues associated with advanced electricity grid tech-
nologies. The Commission shall to the extent feasible pro-
vide for broad and frequent input from stakeholders and 
the general public 
(e) INTEROPERABILITY PROTOCOLS
AND MODEL 
STANDARDS FOR INFORMATION MANAGEMENT.— 
(1) IN
GENERAL.—The Grid Modernization 
Commission shall work with Smart Grid stake-
holders to lead towards the earliest feasible develop-
ment of flexible, uniform, and consensus protocols or 
model standards for information management among 
and interoperability of smart grid devices and sys-
tems. Such protocols and model standards shall 
allow such devices to communicate and function over 
multiple technologies, including wireless, cable, sat-
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