(b) DEFINITIONS.—In this section: 
(1) BULK-POWER
SYSTEM.—The term ‘‘bulk- 
power system’’ has the meaning given such term in 
section 215(a) of the Federal Power Act (16 U.S.C. 
824o(a)). 
(2) CRITICALLY
DAMAGED
LARGE
POWER 
TRANSFORMER.—The term ‘‘critically damaged large 
power transformer’’ means a large power trans-
former that— 
(A) has sustained extensive damage such 
that— 
(i) repair or refurbishment is not eco-
nomically viable; or 
(ii) the extensive time to repair or re-
furbish the large power transformer would 
create an extended period of instability in 
the bulk-power system; and 
(B) prior to sustaining such damage was 
part of the bulk-power system. 
(3) LARGE POWER TRANSFORMER.—The term 
‘‘large power transformer’’ means a power trans-
former, including related critical equipment, that is, 
or is intended to be, a part of the bulk-power sys-
tem, with a maximum nameplate rating of 100 
megavolt-amperes or higher. 
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(4) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Energy. 
(5) SPARE LARGE POWER TRANSFORMER.—The 
term ‘‘spare large power transformer’’ means a large 
power transformer that is stored within the Stra-
tegic Transformer Reserve to be available to tempo-
rarily replace a critically damaged large power trans-
former. 
(c) STRATEGIC TRANSFORMER RESERVE PLAN.— 
(1) PLAN.—Not later than one year after the 
date of enactment of this Act, the Secretary, acting 
through the Office of Electricity Delivery and En-
ergy Reliability, shall prepare and submit to Con-
gress for approval a plan to establish a Strategic 
Transformer Reserve for the storage, in strategically 
located facilities, of spare large power transformers 
in sufficient numbers to temporarily replace criti-
cally damaged large power transformers. 
(2) INCLUSIONS.—The Strategic Transformer 
Reserve plan shall include a description of— 
(A) the appropriate number of spare large 
power transformers and total capacity in 
megawatts necessary in the Strategic Trans-
former Reserve to provide or restore sufficient 
resiliency to the bulk-power system to mitigate 
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significant impacts to the electric grid resulting 
from— 
(i) physical attack; 
(ii) cyber attack; 
(iii) electromagnetic pulse attack; 
(iv) geomagnetic disturbances; 
(v) severe weather; or 
(vi) seismic events; 
(B) the potential locations for, and feasi-
bility and appropriate number of, strategic stor-
age locations, including consideration of— 
(i) the physical security of such loca-
tions; 
(ii) the protection of the confiden-
tiality of such locations; and 
(iii) the proximity of such locations to 
sites of potentially critically damaged large 
power transformers, so as to enable effi-
cient delivery of spare large power trans-
formers to such sites; 
(C) the degree of flexibility of spare large 
power transformers in the Strategic Trans-
former Reserve to conform to different sub-
station configurations, including consideration 
of transformer— 
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(i) power and voltage rating for each 
winding; 
(ii) overload requirements; 
(iii) impedance between windings; 
(iv) configuration of windings; and 
(v) tap requirements; 
(D) an estimate of the direct cost of the 
Strategic Transformer Reserve, as proposed, in-
cluding— 
(i) the cost of storage facilities for the 
spare large power transformers; 
(ii) the cost of the spare large power 
transformers; and 
(iii) management, maintenance, and 
operation costs; 
(E) the funding options available to estab-
lish, stock, manage, and maintain the Strategic 
Transformer Reserve, including consideration of 
public-private cost-sharing options; 
(F) the ease and speed of transportation, 
installation, and energization of spare large 
power transformers, including consideration of 
factors such as— 
(i) transformer transportation weight; 
(ii) transformer size; 
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(iii) topology of critical substations; 
(iv) availability of appropriate trans-
former mounting pads; 
(v) flexibility of the spare large power 
transformers as described in subparagraph 
(C); and 
(vi) ability to rapidly transition a 
spare large power transformer from stor-
age to energization; 
(G) eligibility criteria for withdrawal of 
spare large power transformers from the Stra-
tegic Transformer Reserve to replace critically 
damaged large power transformers, including 
consideration of related existing industry pro-
grams; 
(H) the process by which owners of criti-
cally damaged large power transformers may 
apply for a withdrawal from the Strategic 
Transformer Reserve; 
(I) the process by which spare large power 
transformers withdrawn from the Strategic 
Transformer Reserve are returned to the Stra-
tegic Transformer Reserve; 
(J) any cost-share or rental fees deter-
mined appropriate for restocking returned spare 
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large power transformers to the Strategic 
Transformer Reserve to be paid by owners of 
critically damaged large power transformers 
that have withdrawn such spare large power 
transformers; and 
(K) other considerations for designing, 
constructing, stocking, and managing the Stra-
tegic Transformer Reserve. 
(d) CONGRESSIONAL
APPROVAL
OF
STRATEGIC 
TRANSFORMER RESERVE PLAN.—The Secretary may not 
establish a Strategic Transformer Reserve until Congress 
has approved the plan submitted pursuant to subsection 
(c). 
(e) RESTRICTION.—No funds may be used by the 
Secretary to establish a Strategic Transformer Reserve 
without prior Congressional approval of the plan sub-
mitted pursuant to subsection (c). 
Æ 
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