165 
lize the results of the 2009 National Demand Response Po-
tential Assessment, as authorized by section 571 of the Na-
tional Energy Conservation Policy Act (42 U.S.C. 8279). 
(4) The applicable peak demand reduction goals shall 
provide that— 
(A) load-serving entities will reduce or mitigate 
peak demand by a minimum percentage amount from 
the applicable baseline to a lower peak demand dur-
ing calendar year 2012; 
(B) load-serving entities will reduce or mitigate 
peak demand by a minimum percentage greater 
amount from the applicable baseline to a lower peak 
demand during calendar year 2015; and 
(C) the minimum percentage reductions estab-
lished as peak demand reduction goals shall be the 
maximum reductions that are realistically achievable 
with an aggressive effort to deploy Smart Grid and 
peak demand reduction technologies and methods, in-
cluding but not limited to those listed in subsection 
(d). 
(d) PLAN.—Each load-serving entity shall prepare a 
peak demand reduction plan that demonstrates its ability 
to meet each applicable goal by any or a combination of 
the following options: 
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(1) Direct reduction in megawatts of peak de-
mand through energy efficiency measures (including 
efficient transmission wire technologies which signifi-
cantly reduce line loss compared to traditional wire 
technology) with reliable and continued application 
during peak demand periods. 
(2) Demonstration that an amount of megawatts 
equal to a stated portion of the applicable goal is con-
tractually committed to be available for peak reduc-
tion through one or more of the following: 
(A) Megawatts enrolled in demand response 
programs. 
(B) Megawatts subject to the ability of a 
load-serving entity to call on demand response 
programs, smart appliances, smart electricity 
storage devices, distributed generation resources 
on the entity’s customers’ premises, or other 
measures 
directly 
capable 
of 
actively, 
controllably, reliably, and dynamically reducing 
peak demand (‘‘dynamic peak management con-
trol’’). 
(C) Megawatts available from distributed 
dynamic electricity storage under agreement 
with the owner of that storage. 
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167 
(D) Megawatts committed from dispatchable 
distributed generation demonstrated to be reli-
able under peak period conditions and in com-
pliance with air quality regulations. 
(E) Megawatts available from smart appli-
ances and equipment with Smart Grid capa-
bility available for direct control by the utility 
through agreement with the customer owning the 
appliances or equipment. 
(F) Megawatts from a demonstrated and as-
sured minimum of distributed solar electric gen-
eration capacity in instances where peak period 
and peak demand conditions are directly related 
to solar radiation and accompanying heat. 
(3) If any of the methods listed in subparagraph 
(C), (D), or (E) of paragraph (2) are relied upon to 
meet its peak demand reduction goals, the load-serv-
ing entity must demonstrate this capability by oper-
ating a test during the applicable calendar year. 
(4) Nothing in this section shall require the pub-
lication in peak demand reduction goals or in any 
peak demand reduction plan of any information that 
is confidential for competitive or other reasons or that 
identifies individual customers. 
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168 
(e) EXISTING AUTHORITY
AND REQUIREMENTS.— 
Nothing in this section diminishes or supersedes any au-
thority of a State or political subdivision of a State to 
adopt or enforce any law or regulation respecting peak de-
mand management, demand response, distributed storage, 
use of distributed generation, or the regulation of load-serv-
ing entities. The Commission, in consultation with States 
having such peak management, demand response and dis-
tributed storage programs, shall to the maximum extent 
practicable, facilitate coordination between the Federal pro-
gram and such State programs. 
(f) RELIEF.—The Commission may, for good cause, 
grant relief to load-serving entities from the requirements 
of this section. 
(g) OTHER LAWS.—Except as provided in subsections 
(e) and (f), no law or regulation shall relieve any person 
of any requirement otherwise applicable under this section. 
(h) COMPLIANCE.—(1) The Commission shall within 
one year after the date of enactment of this Act establish 
a public website where the Commission will provide infor-
mation and data demonstrating compliance by States, re-
gional entities, and load-serving entities with this section, 
including the success of load-serving entities in meeting ap-
plicable peak demand reduction goals. 
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(2) The Commission shall, by April 1 of each year be-
ginning in 2012, provide a report to Congress on compli-
ance with this section and success in meeting applicable 
peak demand reduction goals and, as appropriate, shall 
make recommendations as to how to increase peak demand 
reduction efforts. 
(3) The Commission shall note in each such report any 
State, political subdivision of a State, or load-serving entity 
that has failed to comply with this section, or is not a part 
of any region or group of load-serving entities serving a 
region that has complied with this section. 
(4) The Commission shall have and exercise the au-
thority to take reasonable steps to modify the process of es-
tablishing peak demand reduction goals and to accept ad-
justments to them as appropriate when sought by load-serv-
ing entities. 
(i) ASSISTANCE TO STATES AND FUNDING.— 
(1) ASSISTANCE TO STATES.—Any costs incurred 
by States for activities undertaken pursuant to this 
section shall be supported by the use of emission al-
lowances allocated to the States’ SEED Accounts pur-
suant to section 132 of this Act. To the extent that a 
State provides allowances to local governments within 
the State to implement this program, that shall be 
deemed a distribution of such allowances to units of 
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