GRID Act of 2022
Bill: H.R.6779 | Sponsor: Rep. Lamb, Conor (D-PA)
Policy area: Energy

Summary:
Grid Resilience and Infrastructure Depot Act of 2022 or the GRID Act of 2022
This bill establishes a program to improve the resiliency of the electric grid and critical electric grid equipment (e.g., large transformers and power conversion equipment) to physical attacks, cyberattacks, severe weather, and other harms. In carrying out the program, the Department of Energy may establish federally owned strategic reserves of critical electric grid equipment.

To direct the Secretary of Energy to establish a program to reduce the 
 vulnerability of the electric grid to physical attack, cyber attack, 
 and other events, including by ensuring that large power transformers 
and other critical electric grid equipment are strategically located to 
 ensure timely replacement of such equipment as may be necessary, 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 ``Grid Resilience and Infrastructure 
Depot Act of 2022'' or the ``GRID Act of 2022''.

SEC. 2. STRATEGIC TRANSFORMER RESERVE AND RESILIENCE PROGRAM.

    (a) Establishment.--The Secretary shall establish a program to 
reduce the vulnerability of the electric grid to physical attack, cyber 
attack, electromagnetic pulse, geomagnetic disturbances, severe 
weather, climate change, and seismic events, including by--
            (1) ensuring that large power transformers, generator step-
        up transformers, power conversion equipment, and other critical 
        electric grid equipment are strategically located to ensure 
        timely replacement of such equipment as may be necessary to 
        restore electric grid function rapidly in the event of severe 
        damage to the electric grid due to physical attack, cyber 
        attack, electromagnetic pulse, geomagnetic disturbances, severe 
        weather, climate change, or seismic events; and
            (2) establishing a coordinated plan to facilitate 
        transportation of large power transformers, generator step-up 
        transformers, power conversion equipment, and other critical 
        electric grid equipment.
    (b) Transformer Resilience.--In carrying out the program 
established under subsection (a), the Secretary shall--
            (1) improve large power transformers, generator step-up 
        transformers, power conversion equipment, and other critical 
        electric grid equipment by reducing their vulnerabilities;
            (2) develop, test, and deploy innovative equipment designs 
        that are more flexible and offer greater resiliency of electric 
        grid functions;
            (3) coordinate with industry and manufacturers to 
        standardize large power transformers, generator step-up 
        transformers, power conversion equipment, and other critical 
        electric grid equipment;
            (4) monitor and test large power transformers, generator 
        step-up transformers, power conversion equipment, and other 
        critical electric grid equipment that the Secretary determines 
        may pose a risk to the bulk-power system or national security; 
        and
            (5) facilitate the domestic manufacturing of large power 
        transformers, generator step-up transformers, power conversion 
        equipment, and other critical electric grid equipment through 
        the issuance of grants and loans, and through the provision of 
        technical support.
    (c) Strategic Equipment Reserves.--
            (1) Authorization.--In carrying out the program established 
        under subsection (a), the Secretary may establish one or more 
        federally owned strategic equipment reserves, as appropriate, 
        to ensure nationwide access to large power transformers, 
        generator step-up transformers, power conversion equipment, and 
        other critical electric grid equipment.
            (2) Consideration.--In establishing any federally owned 
        strategic equipment reserve, the Secretary may consider 
        existing spare transformer and equipment programs and 
        requirements established by the private sector, Regional 
        Transmission Organizations, Independent System Operators, and 
        State regulatory authorities.
            (3) Iron and steel.--
                    (A) In general.--In establishing any federally 
                owned strategic equipment reserve, no Federal funds 
                shall be used for the purchase of large power 
                transformers, generator step-up transformers, power 
                conversion equipment, or other critical electric grid 
                equipment unless all of the iron and steel products 
                used in such equipment are produced in the United 
                States.
                    (B) Waiver.--
                            (i) In general.--The Secretary shall waive 
                        application of subparagraph (A) in any case or 
                        category of cases in which the Secretary finds 
                        that--
                                    (I) applying subparagraph (A) would 
                                be inconsistent with the public 
                                interest;
                                    (II) iron and steel products are 
                                not produced in the United States in 
                                sufficient and reasonably available 
                                quantities or of a satisfactory 
                                quality; or
                                    (III) inclusion of iron and steel 
                                products produced in the United States 
                                will increase the cost of the 
                                applicable large power transformers, 
                                generator step-up transformers, power 
                                conversion equipment, or other critical 
                                electric grid equipment by more than 25 
                                percent.
                            (ii) Process.--Before issuing a waiver 
                        under this subparagraph, the Secretary shall--
                                    (I) make publicly available in an 
                                easily accessible location on a website 
                                designated by the Office of Management 
                                and Budget and on the website of the 
                                Department of Energy a detailed written 
                                explanation for the proposed 
                                determination to issue the waiver; and
                                    (II) provide a period of not less 
                                than 15 days for public comment on the 
                                proposed waiver.
                    (C) International agreements.--This paragraph shall 
                be applied in a manner consistent with United States 
                obligations under international agreements.
                    (D) Definitions.--In this paragraph--
                            (i) the term ``iron and steel products'' 
                        includes electrical steel used in the 
                        manufacture of--
                                    (I) transformers; and
                                    (II) laminations, cores, and other 
                                transformer components; and
                            (ii) in the case of iron and steel 
                        products, the term ``produced in the United 
                        States'' means that all manufacturing 
                        processes, from the initial melting stage 
                        through the application of coatings, occurred 
                        in the United States.
    (d) Consultation.--The program established under subsection (a) 
shall be carried out in consultation with the Federal Energy Regulatory 
Commission, the Electricity Subsector Coordinating Council, the 
Electric Reliability Organization, manufacturers, and owners and 
operators of critical electric infrastructure and defense and military 
installations.
    (e) Prevailing Wages.--Any laborer or mechanic employed by any 
contractor or subcontractor in the performance of work funded directly, 
or assisted in whole or in part, by the Federal Government pursuant to 
this section shall be paid wages at rates not less than those 
prevailing on work of a similar character in the locality, as 
determined by the Secretary of Labor under subchapter IV of chapter 31 
of title 40, United States Code (commonly referred to as the Davis-
Bacon Act). With respect to the labor standards in this subsection, the 
Secretary of Labor shall have the authority and functions set forth in 
Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) 
and section 3145 of title 40, United States Code.
    (f) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $75,000,000 for each of fiscal 
years 2022 through 2026, and such amounts shall remain available until 
expended.
    (g) Definitions.--In this section:
            (1) Bulk-power system; electric reliability organization.--
        The terms ``bulk-power system'' and ``Electric Reliability 
        Organization'' have the meaning given such terms in section 215 
        of the Federal Power Act (16 U.S.C. 824o).
            (2) Critical electric infrastructure.--The term ``critical 
        electric infrastructure'' has the meaning given such term in 
        section 215A of the Federal Power Act (16 U.S.C. 824o-1).
            (3) Independent system operator; regional transmission 
        organization state regulatory authority.--The terms ``Regional 
        Transmission Organization'', ``Independent System Operator'', 
        and ``State regulatory authority'' have the meaning given such 
        terms in section 3 of the Federal Power Act (16 U.S.C. 796).
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
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