Demand-Response Management Act of 2021
Bill: S.2318 | Sponsor: Sen. Kelly, Mark (D-AZ)
Policy area: Energy

Summary:
Demand-Response Management Act of 2021
This bill requires electric utilities to promote the use of demand-response practices by commercial, residential, and industrial consumers to reduce electricity consumption during periods of unusually high demand. It also provides a variety of incentives for demand-response technologies and practices.

To amend the Public Utility Regulatory Policies Act of 1978 to require 
    the consideration of a standard for promoting the use of demand-
       response technology and practices, 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 ``Demand-Response Management Act of 
2021''.

SEC. 2. PURPOSE.

    The purpose of this Act is to promote the use of demand-response 
technology and practices that support grid resiliency and reliability 
during extreme weather events.

SEC. 3. PROMOTION OF DEMAND-RESPONSE PRACTICES.

    (a) Consideration of Demand-Response Standard.--
            (1) In general.--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 the following:
            ``(20) Demand-response practices.--
                    ``(A) In general.--Each electric utility shall 
                promote the use of demand-response practices by 
                commercial, residential, and industrial consumers to 
                reduce electricity consumption during periods of 
                unusually high demand.
                    ``(B) Rate recovery.--
                            ``(i) In general.--Each State regulatory 
                        authority shall consider establishing rate 
                        mechanisms allowing an electric utility with 
                        respect to which the State regulatory authority 
                        has ratemaking authority to timely recover the 
                        costs of promoting demand-response practices in 
                        accordance with subparagraph (A).
                            ``(ii) Nonregulated electric utilities.--A 
                        nonregulated electric utility may establish 
                        rate mechanisms for the timely recovery of the 
                        costs of promoting demand-response practices in 
                        accordance with subparagraph (A).''.
            (2) Compliance.--
                    (A) Time limitations.--Section 112(b) of the Public 
                Utility Regulatory Policies Act of 1978 (16 U.S.C. 
                2622(b)) is amended by adding at the end the following:
            ``(7)(A) Not later than 1 year after the date of enactment 
        of this paragraph, each State regulatory authority (with 
        respect to each electric utility for which the State has 
        ratemaking authority) and each nonregulated electric utility 
        shall commence consideration under section 111, or set a 
        hearing date for consideration, with respect to the standard 
        established by paragraph (20) of section 111(d).
            ``(B) Not later than 2 years after the date of enactment of 
        this paragraph, each State regulatory authority (with respect 
        to each electric utility for which the State has ratemaking 
        authority), and each nonregulated electric utility shall 
        complete the consideration and make the determination under 
        section 111 with respect to the standard established by 
        paragraph (20) of section 111(d).''.
                    (B) Failure to comply.--
                            (i) In general.--Section 112(c) of the 
                        Public Utility Regulatory Policies Act of 1978 
                        (16 U.S.C. 2622(c)) is amended--
                                    (I) by striking ``such paragraph 
                                (14)'' and all that follows through 
                                ``paragraphs (16)'' and inserting 
                                ``such paragraph (14). In the case of 
                                the standard established by paragraph 
                                (15) of section 111(d), the reference 
                                contained in this subsection to the 
                                date of enactment of this Act shall be 
                                deemed to be a reference to the date of 
                                enactment of that paragraph (15). In 
                                the case of the standards established 
                                by paragraphs (16)''; and
                                    (II) by adding at the end the 
                                following: ``In the case of the 
                                standard established by paragraph (20) 
                                of section 111(d), the reference 
                                contained in this subsection to the 
                                date of enactment of this Act shall be 
                                deemed to be a reference to the date of 
                                enactment of that paragraph (20).''.
                            (ii) Technical correction.--Paragraph (2) 
                        of section 1254(b) of the Energy Policy Act of 
                        2005 (Public Law 109-58; 119 Stat. 971) is 
                        repealed and the amendment made by that 
                        paragraph (as in effect on the day before the 
                        date of enactment of this Act) is void, and 
                        section 112(d) of the Public Utility Regulatory 
                        Policies Act of 1978 (16 U.S.C. 2622(d)) shall 
                        be in effect as if that amendment had not been 
                        enacted.
                    (C) Prior state actions.--
                            (i) In general.--Section 112 of the Public 
                        Utility Regulatory Policies Act of 1978 (16 
                        U.S.C. 2622) is amended by adding at the end 
                        the following:
    ``(g) Prior State Actions.--Subsections (b) and (c) shall not apply 
to the standard established by paragraph (20) of section 111(d) in the 
case of any electric utility in a State if, before the date of 
enactment of this subsection--
            ``(1) the State has implemented for the electric utility 
        the standard (or a comparable standard);
            ``(2) the State regulatory authority for the State or the 
        relevant nonregulated electric utility has conducted a 
        proceeding to consider implementation of the standard (or a 
        comparable standard) for the electric utility; or
            ``(3) the State legislature has voted on the implementation 
        of the standard (or a comparable standard) for the electric 
        utility.''.
                            (ii) Cross-reference.--Section 124 of the 
                        Public Utility Regulatory Policies Act of 1978 
                        (16 U.S.C. 2634) is amended--
                                    (I) by striking ``this subsection'' 
                                each place it appears and inserting 
                                ``this section''; and
                                    (II) by adding at the end the 
                                following: ``In the case of the 
                                standard established by paragraph (20) 
                                of section 111(d), the reference 
                                contained in this section to the date 
                                of enactment of this Act shall be 
                                deemed to be a reference to the date of 
                                enactment of that paragraph (20).''.
    (b) Optional Features of State Energy Conservation Plans.--Section 
362(d) of the Energy Policy and Conservation Act (42 U.S.C. 6322(d)) is 
amended--
            (1) in paragraph (16), by striking ``and'' at the end;
            (2) by redesignating paragraph (17) as paragraph (18); and
            (3) by inserting after paragraph (16) the following:
            ``(17) programs that promote the installation and use of 
        demand-response technology and demand-response practices; 
        and''.
    (c) Federal Energy Management Program.--Section 543(i) of the 
National Energy Conservation Policy Act (42 U.S.C. 8253(i)) is 
amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A), by striking ``and'' at the 
                end;
                    (B) in subparagraph (B), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(C) to reduce energy consumption during periods 
                of unusually high electricity or natural gas demand.''; 
                and
            (2) in paragraph (3)(A)--
                    (A) in clause (v), by striking ``and'' at the end;
                    (B) in clause (vi), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
                            ``(vii) promote the installation of demand-
                        response technology and the use of demand-
                        response practices in Federal buildings.''.
    (d) Components of Zero-Net-Energy Commercial Buildings 
Initiative.--Section 422(d)(3) of the Energy Independence and Security 
Act of 2007 (42 U.S.C. 17082(d)) is amended by inserting ``(including 
demand-response technologies, practices, and policies)'' after 
``policies''.
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