684 
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 
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 
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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 
Commission without reimbursement, and such detail shall 
be without interruption or loss of civil service status or 
privilege. 
(l) EXECUTIVE DIRECTOR.—The Secretary of En-
ergy shall appoint an officer of the Senior Executive Serv-
ice to serve as Executive Director to the Commission. 
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(m) PROCUREMENT OF TEMPORARY AND INTERMIT-
TENT SERVICES.—The Chairman of the Commission may 
procure temporary and intermittent services under section 
3109(b) of title 5, United States Code, at rates for individ-
uals which do not exceed the daily equivalent of the annual 
rate of basic pay prescribed for level V of the Executive 
Schedule under section 5316 of such title. 
(n) INFORMATION FROM FEDERAL AGENCIES.—The 
Commission may secure directly from any Federal depart-
ment or agency such information as the Commission con-
siders necessary to carry out this part. Upon request of 
the Chairman of the Commission, the head of such depart-
ment or agency shall furnish such information to the Com-
mission. The Commission shall maintain the same level of 
confidentiality for such information made available under 
this subsection as is required of the head of the depart-
ment or agency from which the information was obtained. 
(o) POSTAL SERVICES.—The Commission may use 
the United States mails in the same manner and under 
the same conditions as other departments and agencies of 
the Federal Government. 
SEC. 9113. 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-
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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. 
(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-
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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. 
(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, 
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(b) DEVELOPMENT OF RULES.—The Commission on 
Grid Modernization shall within one year of its initial 
meeting develop and declare a standard for the collection, 
presentation and delivery of information to electricity pur-
chasers as required by the standard under section 
111(d)(21) of the Public Utility Regulatory Policies Act 
of 1978. Such standard shall provide purchasers with dif-
ferent access options for such information. Such standard 
shall be developed with input from the Secretary of En-
ergy, the Federal Energy Regulatory Commission, the Ad-
ministrator of the Environmental Protection Agency, 
States, and stakeholders representing, but not limited to, 
electric utilities, energy efficiency and demand response 
experts, environmental organizations and consumer orga-
nizations. 
(c) APPLICATION
OF SMART GRID INFORMATION 
STANDARD
TO FEDERAL ENTITIES
AND WHOLESALE 
MARKETS.—Within 60 days of the declaration of the 
standard under subsection (b), the Federal Energy Regu-
latory Commission shall propose a rule under which all 
public utilities, with respect to federally jurisdictional sales 
for resale of electricity in interstate commerce, and all ap-
proved regional transmission organizations subject to its 
jurisdiction, will implement those elements of the Smart 
Grid information standard developed pursuant to this sec-
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tion that the Commission determines to be relevant and 
to add value for purchasers of wholesale power or those 
utilizing interstate transmission. The Tennessee Valley 
Authority, Bonneville Power Administration, and Federal 
power administrations shall, within 90 days of the adop-
tion of a final rule by the Commission, adopt it for their 
own sales or transmission of electricity. 
SEC. 9117. STATE CONSIDERATION OF INCENTIVES FOR 
SMART GRID. 
(a) CONSIDERATION OF ADDITIONAL STANDARDS.— 
Section 111(d) of the Public Utility Regulatory Policies 
Act of 1978 (16 U.S.C. 2621(d)) is amended by adding 
at the end: 
‘‘(16) UTILITY INVESTMENT IN SMART GRID IN-
VESTMENTS.—Each electric utility shall prior to un-
dertaking investments in non-advanced grid tech-
nologies demonstrate that alternative investments in 
advanced grid technologies have been considered, in-
cluding from a standpoint of cost-effectiveness, 
where such cost-effectiveness considers costs and 
benefits on a life-cycle basis. 
‘‘(17) UTILITY COST OF SMART GRID INVEST-
MENTS.—Each electric utility shall be permitted 
to— 
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‘‘(A) recover from ratepayers the capital 
and operating expenditures and other costs of 
the utility for qualified smart grid system, in-
cluding a reasonable rate of return on the cap-
ital expenditures of the utility for a qualified 
smart grid system, and 
‘‘(B) recover in a timely manner the re-
maining book-value costs of equipment rendered 
obsolete by the deployment of a qualified smart 
grid system, based on the remaining depreciable 
life of the obsolete equipment. 
‘‘(18) RATE DESIGN MODIFICATIONS TO PRO-
MOTE ENERGY EFFICIENCY INVESTMENTS.— 
‘‘(A) IN GENERAL.—The rates allowed to 
be charged by any electric utility shall— 
‘‘(i) align utility incentives with the 
delivery of cost-effective energy efficiency; 
and 
‘‘(ii) promote energy efficiency invest-
ments. 
‘‘(B) POLICY OPTIONS.—In complying with 
subparagraph (A), each State regulatory au-
thority and each nonregulated utility shall con-
sider— 
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‘‘(i) removing the throughput incen-
tive and other regulatory and management 
disincentives to energy efficiency; 
‘‘(ii) providing utility incentives for 
the successful management of energy effi-
ciency programs; 
‘‘(iii) including the impact on adoption 
of energy efficiency as 1 of the goals of re-
tail rate design, recognizing that energy ef-
ficiency must be balanced with other objec-
tives; 
‘‘(iv) adopting rate designs that en-
courage energy efficiency for each cus-
tomer class; and 
‘‘(v) allowing timely recovery of en-
ergy efficiency-related costs. 
‘‘(19) SMART GRID INFORMATION.— 
‘‘(A) 
STANDARD.—All 
electricity 
pur-
chasers shall be provided direct access, both in 
written and electronic machine-readable form, 
to information from their electricity provider as 
provided in subparagraph (B). 
‘‘(B) 
INFORMATION.—Information 
pro-
vided under this section shall conform to the 
standardized rules issued by the Commission on 
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Grid Modernization under section 9116(b) of 
the Smart Grid Facilitation Act of 2007 and 
shall include: 
‘‘(i) PRICES.—Purchasers and other 
interested persons shall be provided with 
information on: 
‘‘(I) Time-based electricity prices 
in the wholesale electricity market; 
and 
‘‘(II) Time-based electricity retail 
prices or rates that are available to 
the purchasers. 
‘‘(ii) USAGE.—Purchasers shall be 
provided with the number of electricity 
units, expressed in kwh, purchased by 
them 
‘‘(iii) 
INTERVALS
AND
PROJEC-
TIONS.—Updates of information on prices 
and usage shall be offered on not less than 
a daily basis, shall include hourly price and 
use information, where available, and shall 
include a day-ahead projection of such 
price information to the extent available. 
‘‘(iv) 
SOURCES.—Purchasers 
and 
other interested person shall be provided 
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with written information on the sources of 
the power provided by the utility, to the 
extent it can be determined, by type of 
generation, including greenhouse gas emis-
sions and criteria pollutants associated 
each type of generation, for intervals dur-
ing which such information is available on 
a cost-effective basis, but not less than 
monthly. 
‘‘(C) ACCESS.—Purchasers shall be able to 
access their own information at any time 
through the internet and on other means of 
communication elected by that utility for Smart 
Grid applications. Other interested persons 
shall be able to access information not specific 
to any purchaser through the Internet. Infor-
mation specific to any purchaser shall be pro-
vided solely to that purchaser.’’. 
(b) RECONSIDERATION OF CERTAIN STANDARDS.— 
Section 112 of the Public Utility Regulatory Policies Act 
of 1978 (16 U.S.C. 2622) is amended by adding the fol-
lowing at the end thereof: 
‘‘(g) RECONSIDERATION
OF PRIOR TIME-OF-DAY 
AND COMMUNICATION STANDARDS.—Not later than 1 
year after the enactment of this subsection, each State 
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‘‘SEC. 573. NATIONAL ACTION PLAN FOR DEMAND RE-
SPONSE. 
‘‘(a) NATIONAL ASSESSMENT
AND REPORT.—The 
Grid Modernization Commission established under subtitle 
A of title I of the Smart Grid Facilitation Act of 2007 
shall conduct a National Assessment of Demand Re-
sponse. The Commission 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 
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 
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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. 
‘‘(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. 
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‘‘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 
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 
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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-
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 such sums as may be nec-
essary for fiscal year 2010, to remain available until ex-
pended.’’. 
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(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. Report on environmental attributes and impacts of demand response 
and smart grid systems.’’. 
Subtitle C—Loan Guarantees 
SEC. 9201. AMOUNT OF LOANS GUARANTEED. 
Section 1702 of the Energy Policy Act of 2005 (42 
U.S.C. 16512) is amended— 
(1) by amending subsection (c) to read as fol-
lows: 
‘‘(c) AMOUNT.— 
‘‘(1) PERCENTAGE OF PROJECT COST.—A guar-
antee by the Secretary shall not exceed an amount 
equal to 80 percent of the project cost of the facility 
that is the subject of the guarantee, as estimated at 
the time at which the guarantee is issued, and shall 
be no less than the minimum amount determined by 
the Secretary to be likely to attract nonguaranteed 
investment adequate to capitalize the project. 
‘‘(2) PERCENTAGE OF LOAN.—Subject to para-
graph (1), the Secretary may guarantee up to 100 
percent of any loan or other debt obligation of the 
borrower to fund an eligible project, and may not 
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sistance under this section on behalf of a group of retailers 
within a certain geographic area, or to carry out regional 
or multistate deployment projects. Any such application 
shall certify the availability and details of a program to 
match the Federal grant as required under subsection (g) 
and list the retail locations that would receive the funds. 
(g) LIMITATIONS.—Assistance provided under this 
section shall not exceed— 
(1) 33 percent of the estimated cost of the in-
stallation, replacement, or conversion of motor fuel 
storage and dispensing infrastructure; or 
(2) $180,000 for a combination of equipment at 
any one retail outlet location. 
(h) OPERATION OF RENEWABLE FUEL STATIONS.— 
The Secretary shall establish rules that set forth require-
ments for grant recipients under this section that include 
providing to the public the renewable fuel, establishing a 
marketing plan that informs consumers of the price and 
availability of the renewable fuel, clearly labeling the dis-
pensers and related equipment, and providing periodic re-
ports on the status of the renewable fuel sales, the type 
and amount of the renewable fuel dispensed at each loca-
tion, and the average price of such fuel. 
(i) NOTIFICATION REQUIREMENTS.—Not later than 
the date on which each renewable fuel station begins to 
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offer renewable fuel to the public, the grant recipient that 
used grant funds to construct or upgrade such station 
shall notify the Secretary of Energy of such opening. The 
Secretary of Energy shall add each new renewable fuel 
station to the renewable fuel station locator on its Website 
when it receives notification under this subsection. 
(j) INELIGIBILITY.—No person may receive assist-
ance under this section and receive a credit under section 
30C of the Internal Revenue Code of 1986. 
(k) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary of En-
ergy for carrying out this section $200,000,000 for each 
of the fiscal years 2008 through 2014. 
(l) RESTRICTION.—No grant shall be provided under 
this section to a large, vertically integrated oil company. 
SEC. 9302. PROHIBITION ON FRANCHISE AGREEMENT RE-
STRICTIONS RELATED TO RENEWABLE FUEL 
INFRASTRUCTURE. 
(a) IN GENERAL.—Title I of the Petroleum Mar-
keting Practices Act (15 U.S.C. 2801 et seq.) is amended 
by adding at the end the following: 
‘‘SEC. 107. PROHIBITION ON RESTRICTION OF INSTALLA-
TION OF RENEWABLE FUEL PUMPS. 
‘‘(a) DEFINITION.—In this section: 
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‘‘(1) RENEWABLE FUEL.—The term ‘renewable 
fuel’ means any fuel— 
‘‘(A) at least 85 percent of the volume of 
which consists of ethanol; or 
‘‘(B) any mixture of biodiesel and diesel or 
renewable diesel (as defined in regulations 
adopted pursuant to section 211(o) of the Clean 
Air Act (40 C.F.R., Part 80)), determined with-
out regard to any use of kerosene and con-
taining at least 20 percent biodiesel or renew-
able diesel. 
‘‘(2) FRANCHISE-RELATED
DOCUMENT.—The 
term ‘franchise-related document’ means— 
‘‘(A) a franchise under this Act; and 
‘‘(B) any other contract or directive of a 
franchisor relating to terms or conditions of the 
sale of fuel by a franchisee. 
‘‘(b) PROHIBITIONS.— 
‘‘(1) IN GENERAL.—No franchise-related docu-
ment entered into or renewed on or after the date 
of enactment of this section shall contain any provi-
sion allowing a franchisor to restrict the franchisee 
or any affiliate of the franchisee from— 
‘‘(A) installing on the marketing premises 
of the franchisee a renewable fuel pump or 
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tank, except that the franchisee’s franchisor 
may restrict the installation of a tank on leased 
marketing premises of such franchisor; 
‘‘(B) converting an existing tank or pump 
on the marketing premises of the franchisee for 
renewable fuel use, so long as such tank or 
pump and the piping connecting them are ei-
ther warranted by the manufacturer or certified 
by a recognized standards setting organization 
to be suitable for use with such renewable fuel; 
‘‘(C) advertising (including through the 
use of signage) the sale of any renewable fuel; 
‘‘(D) selling renewable fuel in any specified 
area on the marketing premises of the 
franchisee (including any area in which a name 
or logo of a franchisor or any other entity ap-
pears); 
‘‘(E) purchasing renewable fuel from 
sources other than the franchisor if the 
franchisor does not offer its own renewable fuel 
for sale by the franchisee; 
‘‘(F) listing renewable fuel availability or 
prices, including on service station signs, fuel 
dispensers, or light poles; or 
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‘‘(G) allowing for payment of renewable 
fuel with a credit card, 
so long as such activities described in subparagraphs 
(A) through (G) do not constitute mislabeling, mis-
branding, willful adulteration, or other trademark 
violations by the franchisee. 
‘‘(2) EFFECT OF PROVISION.—Nothing in this 
section shall be construed to preclude a franchisor 
from requiring the franchisee to obtain reasonable 
indemnification and insurance policies. 
‘‘(c) EXCEPTION TO 3-GRADE REQUIREMENT.—No 
franchise-related document that requires that 3 grades of 
gasoline be sold by the applicable franchisee shall prevent 
the franchisee from selling an renewable fuel in lieu of 
1, and only 1, grade of gasoline.’’. 
(b) ENFORCEMENT.—Section 105 of the Petroleum 
Marketing Practices Act (15 U.S.C. 2805) is amended by 
striking ‘‘102 or 103’’ each place it appears and inserting 
‘‘102, 103, or 107’’. 
(c) CONFORMING AMENDMENTS.— 
(1) IN GENERAL.—Section 101(13) of the Pe-
troleum Marketing Practices Act (15 U.S.C. 
2801(13)) is amended by aligning the margin of 
subparagraph (C) with subparagraph (B). 
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