Title: Energy Infrastructure Demand Response Act of 2018
Policy area: Energy

Summary:
Energy Infrastructure Demand Response Act of 2018
This bill requires the Department of Energy to establish a natural gas demand response pilot program that uses the latest demand response technology from the energy sector for natural gas to (1)	reduce the cost of energy for consumers, (2)	reduce market price volatility, (3)	increase reliability of the energy system, and (4)	achieve reductions in air emissions and other benefits.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 2649 Introduced in Senate (IS)]

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115th CONGRESS
  2d Session
                                S. 2649

 To require the Secretary of Energy to establish a natural gas demand 
            response pilot program, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 11, 2018

Mr. Whitehouse introduced the following bill; which was read twice and 
       referred to the Committee on Energy and Natural Resources

_______________________________________________________________________

                                 A BILL


 
 To require the Secretary of Energy to establish a natural gas demand 
            response pilot 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 ``Energy Infrastructure Demand 
Response Act of 2018''.

SEC. 2. NATURAL GAS DEMAND RESPONSE PILOT PROGRAM.

    (a) Definitions.--In this section:
            (1) Commission.--The term ``Commission'' means the Federal 
        Energy Regulatory Commission.
            (2) Pilot program.--The term ``pilot program'' means the 
        natural gas demand response pilot program established under 
        subsection (b)(1).
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
    (b) Establishment.--
            (1) In general.--Not later than 150 days after the date of 
        enactment of this Act, the Secretary, in consultation with the 
        Commission, shall establish a natural gas demand response pilot 
        program to use the latest demand response technology from the 
        energy sector for natural gas--
                    (A) to reduce the cost of energy for consumers;
                    (B) to reduce market price volatility;
                    (C) to increase reliability of the energy system; 
                and
                    (D) to achieve reductions in air emissions and 
                other benefits.
            (2) Eligible entities.--
                    (A) In general.--Except as provided in subparagraph 
                (B), to be eligible to participate in the pilot 
                program, an entity shall be--
                            (i) a gas utility, including a local 
                        distribution company;
                            (ii) a State public utilities commission;
                            (iii) an electric utility, including a 
                        local distribution company;
                            (iv) a municipality;
                            (v) a large industrial consumer, large 
                        commercial consumer, or retail marketer of 
                        natural gas; or
                            (vi) a third-party energy efficiency 
                        program administrator.
                    (B) Limitations.--An entity described in any of 
                clauses (ii) through (v) of subparagraph (A) shall not 
                be eligible to participate in the pilot program if the 
                State law to which the entity is subject specifically 
                precludes the participation of the entity in a natural 
                gas demand response pilot program.
            (3) Requirement.--The Secretary shall carry out the pilot 
        program under different scenarios, including in a region that 
        is experiencing fuel shortages or natural gas infrastructure 
        constraints that cause the cost of energy to increase for 
        consumers.
            (4) Data collection.--
                    (A) In general.--In carrying out the pilot program, 
                the Secretary shall collect data, including data on, 
                with respect to the regions in which the pilot program 
                is carried out--
                            (i) the reduction in natural gas usage;
                            (ii) decreases in the frequency and 
                        severity of natural gas infrastructure 
                        constraints; and
                            (iii) changes in energy costs and 
                        reliability.
                    (B) Report.--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--
                            (i) how to improve data collection;
                            (ii) the metrics that should be used to 
                        quantify natural gas demand response usage; and
                            (iii) opportunities to improve the 
                        measurement and verification of changes in 
                        natural gas consumption resulting from natural 
                        gas demand response measures, including 
                        opportunities to collect data that could be 
                        used to estimate the quantity of natural gas 
                        that could be shifted through the 
                        implementation of natural gas demand response 
                        measures.
    (c) Applications; Certification.--
            (1) In general.--On establishment of the pilot program 
        under subsection (b)(1), the Secretary shall submit to all 
        relevant eligible entities notice that the Secretary is 
        accepting applications for the pilot program.
            (2) Submission of applications.--
                    (A) In general.--Not later than 200 days after the 
                date of enactment of this Act, each eligible entity 
                desiring certification to participate in the pilot 
                program shall submit to the Secretary an application 
                containing such information as the Secretary may 
                require.
                    (B) Authority to require certain information.--The 
                Secretary may require as part of the application under 
                subparagraph (A) information on--
                            (i) the current energy prices and energy 
                        supply issues in the region in which the 
                        eligible entity is located; and
                            (ii) how implementation of the pilot 
                        program in the region in which the eligible 
                        entity is located can alleviate the current 
                        energy prices and energy supply issues in the 
                        region.
            (3) Certification.--Not later than 250 days after the date 
        of enactment of this Act, the Secretary shall notify each 
        eligible entity that applied for certification under paragraph 
        (2)(A) of whether the eligible entity is certified to 
        participate in the pilot program.
    (d) Termination.--The pilot program shall terminate on the date 
that is 2 years after the date on which the pilot program is 
established under subsection (b)(1).
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out the pilot program $4,000,000.

SEC. 3. TECHNICAL STUDY AND REPORT.

    (a) Study.--The Secretary shall conduct a study on the potential 
for natural gas demand response across energy sectors and geographic 
regions.
    (b) Report.--Not later than 18 months after the date of enactment 
of this Act, the Secretary shall submit to Congress a report on the 
results of study conducted under subsection (a), including--
            (1) a description and quantification of--
                    (A) potential natural gas and energy savings and 
                load shifting; and
                    (B) the costs and benefits associated with those 
                savings, including avoided energy costs, reduced market 
                price volatility, improved electric and gas system 
                reliability, deferred or avoided pipeline or utility 
                capital investment, and air emissions reductions;
            (2) an identification of geographic areas that would 
        benefit most from implementing demand response measures for 
        natural gas infrastructure; and
            (3) a description of--
                    (A) existing and emerging technologies that can be 
                used for demand response in the natural gas sector; and
                    (B) best practices for developing a strategy for 
                deployment of those technologies in the natural gas 
                sector.
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