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 recommen-
dations 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 technolo-
gies, 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 2022 through 2026. 
Æ 
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