Advanced Energy Technologies and Grid Efficiency Act of 2021
Bill: S.2659 | Sponsor: Sen. Whitehouse, Sheldon (D-RI)
Policy area: Energy

Summary:
Advanced Energy Technologies and Grid Efficiency Act of 2021
This bill requires the Federal Energy Regulatory Commission and the Department of Energy (DOE) to research and report on matters relating to the integration of advanced energy technology (e.g., technology with zero or minimal greenhouse gas emissions) into the electric power grid. In addition, it requires DOE to provide support for such technology through grants or financial assistance agreements as specified by the bill.

To require the establishment of an advanced energy technology research 
    initiative and an advanced energy technology and modeling grant 
                    program, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Advanced Energy Technologies and 
Grid Efficiency Act of 2021''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Advanced energy technology.--The term ``advanced energy 
        technology'' means any energy generation, monitoring or 
        modifying transmission loading, or storage technology with zero 
        or minimal greenhouse gas emissions that is connected--
                    (A) to the distribution system;
                    (B) to the transmission system; or
                    (C) behind the meter.
            (2) Advisory committee.--The term ``Advisory Committee'' 
        means the advisory committee established under section 
        3(a)(2)(A).
            (3) Commission.--The term ``Commission'' means the Federal 
        Energy Regulatory Commission.
            (4) Electric utility.--The term ``electric utility'' has 
        the meaning given the term in section 3 of the Federal Power 
        Act (16 U.S.C. 796).
            (5) Grid operator.--The term ``grid operator'' means--
                    (A) a Transmission Organization, including--
                            (i) an Independent System Operator; and
                            (ii) a Regional Transmission Organization;
                    (B) a public utility; and
                    (C) an electric utility.
            (6) Independent system operator.--The term ``Independent 
        System Operator'' has the meaning given the term in section 3 
        of the Federal Power Act (16 U.S.C. 796).
            (7) Initiative.--The term ``Initiative'' means the Advanced 
        Energy Technology Research Initiative established under section 
        3(a)(1).
            (8) Public utility.--The term ``public utility'' has the 
        meaning given the term in section 201(e) of the Federal Power 
        Act (16 U.S.C. 824(e)).
            (9) Regional transmission organization.--The term 
        ``Regional Transmission Organization'' has the meaning given 
        the term in section 3 of the Federal Power Act (16 U.S.C. 796).
            (10) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (11) Transmission organization.--The term ``Transmission 
        Organization'' has the meaning given the term in section 3 of 
        the Federal Power Act (16 U.S.C. 796).

SEC. 3. POWER SYSTEM MODELING REFORM AND UPDATES TO GRID SERVICES AND 
              GRID OPERATOR SOFTWARE.

    (a) Advanced Energy Technology Research Initiative.--
            (1) In general.--Not later than 90 days after the date of 
        enactment of this Act, the Commission, in coordination with the 
        Secretary, shall establish within the Office of Energy Policy 
        and Innovation of the Commission an initiative, to be known as 
        the ``Advanced Energy Technology Research Initiative'', to 
        research and provide recommendations on how to improve the 
        modeling, operational, and planning practices used for the bulk 
        electric system.
            (2) Advisory committee.--
                    (A) In general.--Not later than 180 days after the 
                date of enactment of this Act, the Commission, in 
                coordination with the Secretary, shall establish an 
                advisory committee to research, report on, and provide 
                recommendations on matters relating to the Initiative, 
                including--
                            (i) whether the existing modeling 
                        (including power flow modeling) and long-term 
                        and short-term planning practices used by grid 
                        operators for power systems, including power 
                        markets, adequately incorporate expected 
                        integration with respect to advanced energy 
                        technologies;
                            (ii) whether the methods used to determine 
                        future transmission and capacity needs and make 
                        reliability-related determinations use the 
                        right data to adequately forecast and model the 
                        integration of advanced energy technology into 
                        electric power systems;
                            (iii) whether the modeling and planning 
                        practices described in clause (i) and the 
                        methods described in clause (ii) need to be 
                        updated to better account for the integration 
                        of advanced energy technology into electric 
                        power systems;
                            (iv) any undue barriers to the adoption of 
                        advanced energy technology presented by--
                                    (I) existing modeling, operational, 
                                and planning practices; and
                                    (II) State estimation tools for 
                                planning and reliability;
                            (v) any need to develop emerging 
                        technologies or software for use in improving 
                        modeling, planning, and operations in wholesale 
                        electricity markets to resolve computational or 
                        technical barriers to the adoption of advanced 
                        energy technology, including software relating 
                        to--
                                    (I) the use of big data, artificial 
                                intelligence, and probabilistic methods 
                                to predict, in near-real-time--
                                            (aa) energy generation from 
                                        variable and distributed 
                                        resources;
                                            (bb) load profiles; and
                                            (cc) consumption and 
                                        congestion; and
                                    (II) the use of artificial 
                                intelligence to improve the 
                                responsiveness of energy system 
                                operations;
                            (vi) whether existing and future grid 
                        reliability service definitions and the 
                        modeling techniques, operational processes, and 
                        planning processes used to procure grid 
                        reliability services--
                                    (I) appropriately account for the 
                                technical and operational 
                                characteristics of advanced energy 
                                technologies;
                                    (II) allow for the use of those 
                                advanced energy technologies to provide 
                                grid reliability services when cost-
                                effective to do so; and
                                    (III) include appropriate 
                                cybersecurity safeguards; and
                            (vii) any rulemaking, technical conference, 
                        or policy statement that, in the determination 
                        of the Advisory Committee, the Commission 
                        should consider.
                    (B) Composition.--The Advisory Committee shall 
                consist of--
                            (i) not fewer than 1 representative from 
                        each of--
                                    (I) the Commission;
                                    (II) the Department of Energy;
                                    (III) the Electric Reliability 
                                Organization (as defined in section 
                                215(a) of the Federal Power Act (16 
                                U.S.C. 824o(a)));
                                    (IV) an Independent System Operator 
                                or a Regional Transmission 
                                Organization;
                                    (V) an entity generating electric 
                                power that is not affiliated with a 
                                transmission-owning public or nonpublic 
                                utility;
                                    (VI) an entity generating electric 
                                power that provides power directly to 
                                wholesale or retail customers and is 
                                not affiliated with a transmission-
                                owning public or nonpublic utility;
                                    (VII) an environmental organization 
                                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, 
                        regardless of whether the utility is in an area 
                        serviced by an Independent System Operator or a 
                        Regional Transmission Organization; and
                            (iv) not fewer than 2 representatives from 
                        private and nonprofit associations with 
                        expertise in the development, deployment, and 
                        use of advanced energy technologies.
                    (C) Reports.--Not later than 18 months after the 
                date of enactment of this Act, and every 2 years 
                thereafter for 10 years, the Advisory 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 recommendations 
                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 Secretary shall establish a 
        competitive financial assistance program, to be known as the 
        ``Advanced Energy Technology and Grid Services Program'', under 
        which the Secretary shall enter into Federal financial 
        assistance agreements with eligible entities described in 
        paragraph (2) for the purpose of increasing the market 
        penetration of advanced energy technology 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 upgrades; 
                and
                    (E) resilience upgrades.
            (2) Eligible entities described.--An eligible 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;
                    (B) new power system (including power market) 
                modeling platforms;
                    (C) enhancements to cybersecurity safeguards; or
                    (D) updated power system (including power market) 
                planning, updated power system (including power market) 
                modeling, or updated reliability planning and modeling 
                by grid operators.
            (4) Cost sharing.--In awarding Federal financial 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 Advanced Energy 
        Technology and Grid Services Program established under this 
        subsection, the Secretary, to the maximum extent practicable, 
        shall coordinate with existing programs of the Department of 
        Energy that focus on grid modernization efforts.

SEC. 4. ADVANCED ENERGY AND GRID EFFICIENCY STUDIES AND REPORT.

    (a) Studies.--
            (1) Advanced energy study.--The Secretary, in coordination 
        with the Commission, shall carry out a study of the costs and 
        benefits to consumers of updating power system planning, 
        modeling, and operational practices, including reliability-
        related planning, and energy market participation rules on 
        advanced energy technologies and resources, including 
        distributed energy technologies and resources, such as--
                    (A) energy storage technologies;
                    (B) energy efficiency and transmission efficiency 
                technologies;
                    (C) distributed solar and wind energy generation;
                    (D) fuel cells;
                    (E) smart thermostats and smart building 
                technologies;
                    (F) demand response technologies, including natural 
                gas demand response technologies;
                    (G) advanced metering technologies;
                    (H) electric vehicles and electric vehicle charging 
                infrastructure;
                    (I) any aggregation of the distributed energy 
                technologies and resources described in subparagraph 
                (A) or (C); and
                    (J) any other advanced energy technologies, as 
                determined by the Secretary.
            (2) Grid efficiency study.--
                    (A) In general.--The Secretary, in coordination 
                with the Commission, shall carry out a study of the 
                barriers and opportunities for advanced energy 
                technologies that provide increased, more efficient, or 
                more effective delivery 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 
                                optimization, and dynamic line ratings;
                                    (II) the costs, benefits, and 
                                challenges associated with deployment 
                                of the advanced energy technologies 
                                described 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 
                        performance-based financial and regulatory 
                        incentives in the deployment of advanced energy 
                        technologies relative to the cost-of-service of 
                        those advanced energy technologies, 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 subsection (a).

SEC. 5. INTERCONNECTION PROCESSES AND TRANSMISSION 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 Electricity 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 advanced 
                energy technology interconnections.
            (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 National 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 
                effectively regulate the planning and siting of 
                interregional transmission lines.
            (2) Requirements.--The report under paragraph (1) shall 
        examine whether--
                    (A) there are deficiencies in transmission planning 
                and siting that affect resource development for--
                            (i) interregional and regional energy 
                        generation;
                            (ii) interconnection queues; and
                            (iii) advanced energy technologies;
                    (B) the Commission has the programmatic and 
                regulatory structure necessary to facilitate continued 
                improvements in transmission planning, including 
                planning with respect to transmission--
                            (i) across the boundaries of Independent 
                        System Operators and Regional Transmission 
                        Organizations; and
                            (ii) across boundaries that are not 
                        associated with Independent System Operators or 
                        Regional Transmission Organizations;
                    (C) State resource planning requirements are 
                addressed in existing transmission planning processes;
                    (D) the Commission lacks tools with respect to the 
                siting of transmission lines that could help States 
                improve transmission planning 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;
                            (iii) that is connected to the distribution 
                        system and may--
                                    (I) increase reliability or 
                                resilience; and
                                    (II) avoid transmission and 
                                distribution system costs; and
                            (iv) to better understand the role of 
                        Federal regulators in the siting of 
                        technologies not directly connected to the 
                        grid.
            (3) Deadline.--The report under paragraph (1) shall be 
        submitted to the Commission, the Secretary, 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 Electricity 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.
                                 <all>