678 
disbursed under subparagraph (A) shall remain 
available and shall be disbursed by the Sec-
retary upon approval of the Strategy. 
(5) LIMITATIONS ON USE OF FUNDS.—Of the 
amounts provided through a grant under this part, 
a State may use not more than 10 percent for ad-
ministrative expenses. 
(6) ANNUAL REPORTS.—A State shall annually 
report to the Secretary on the development and im-
plementation of its Strategy. Each such report shall 
include— 
(A) a status report on the State’s subgrant 
program described in paragraph (1); 
(B) a best available assessment of energy 
efficiency gains achieved through the State’s 
Strategy; and 
(C) specific energy efficiency and energy 
conservation goals for future years. 
(c) STATE AND LOCAL ADVISORY COMMITTEE.— 
(1) 
STATE
AND
LOCAL
ADVISORY
COM-
MITTEE.—The Secretary shall establish a State and 
Local Advisory Committee to provide advice regard-
ing the administration, direction, and evaluation of 
the program under this part. 
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SEC. 9096. REVIEW AND EVALUATION. 
The Secretary may review and evaluate the perform-
ance of grant recipients, including by performing audits, 
and may deny funding to such grant recipients for failure 
to properly adhere to— 
(1) the Secretary’s guidelines and regulations 
relating to the program under this part, including 
the misuse or misappropriation of funds; or 
(2) the grant recipient’s Strategy. 
SEC. 9097. TECHNICAL ASSISTANCE AND EDUCATION PRO-
GRAM. 
(a) ESTABLISHMENT.—The Secretary shall establish 
and carry out a technical assistance and education pro-
gram to provide— 
(1) technical assistance to State and local gov-
ernments; 
(2) public education programs; 
(3) demonstration of innovative energy effi-
ciency systems and practices; and 
(4) identification of effective measurement 
methodologies and methods for changing or influ-
encing public participation in, and awareness of, en-
ergy efficiency programs. 
(b) ELIGIBLE RECIPIENTS.—Eligible recipients of as-
sistance under this section shall include State and local 
governments, State and local government associations, 
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public and private nonprofit organizations, and colleges 
and universities. 
(c) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary for car-
rying out this section $150,000,000 for each of the fiscal 
years 2008 through 2012. 
SEC. 9098. AUTHORIZATION OF APPROPRIATIONS. 
(a) GRANTS.—There are authorized to be appro-
priated to the Secretary for grants under this part, 
$2,000,000,000 for each of fiscal years 2008 through 
2012. 
(b) ADMINISTRATION.—There are authorized to be 
appropriated to the Secretary for administrative expenses 
of the program established under this part— 
(1) $20,000,000 for fiscal year 2008; 
(2) $20,000,000 for fiscal year 2009; 
(3) $25,000,000 for fiscal year 2010; 
(4) $25,000,000 for fiscal year 2011; and 
(5) $30,000,000 for fiscal year 2012. 
Subtitle B—Smart Grid Facilitation 
SEC. 9101. SHORT TITLE. 
This subtitle may be cited as the ‘‘Smart Grid Facili-
tation Act of 2007’’. 
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PART 1—SMART GRID 
SEC. 9111. STATEMENT OF POLICY ON MODERNIZATION OF 
ELECTRICITY GRID. 
(a) SMART GRID CHARACTERISTICS.—It is the policy 
of the United States to support the modernization of the 
Nation’s electricity transmission and distribution system 
to incorporate digital information and controls technology 
and to share real-time pricing information with electricity 
customers to achieve each of the following, which together 
characterize a smart grid: 
(1) Increased reliability, security and efficiency 
of the electric grid. 
(2) Dynamic optimization of grid operations 
and resources, with full cyber-security. 
(3) Deployment and integration of distributed 
resources and generation. 
(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. 
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(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-
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 
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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. 9112. 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 
Leader of the United States House of Representa-
tives and by the Majority Leader and Minority 
Leader of the United States Senate. Two members 
shall be appointed by the President from among per-
sons recommended by an association representing 
State utility regulatory commissioners. The Presi-
dent shall designate one Commissioner to serve as 
Chairperson. 
(2) MISSION.—The mission of the Grid Mod-
ernization Commission shall be to facilitate the 
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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. 
(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 
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