Title: Distributed Energy Demonstration Act of 2017
Policy area: Energy

Summary:
Distributed Energy Demonstration Act of 2017
This bill requires the Department of Energy (DOE) to establish grant programs for: (1) advancing the integration and optimization of distributed energy resources (i.e., smaller power sources that can be aggregated to provide power, such as rooftop solar panels) into the electric energy grid; (2) designing and producing an energy storage demonstration program using household hot water heaters; (3) advancing electric vehicles technologies; and (4) supporting the voluntary deployment of granular electricity pricing that is based upon the electricity's value at the time and location of the production or consumption of the electricity.
In addition, the bill amends the Energy Independence and Security Act of 2007 to reauthorize through FY2025 and revise DOE's grant program for smart grid investments.
The bill prohibits federal entities from requesting the creation, recording, or collection of sensitive personal data as a result of this bill's requirements.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 1874 Introduced in Senate (IS)]

<DOC>






115th CONGRESS
  1st Session
                                S. 1874

 To direct the Secretary of Energy to establish certain demonstration 
 grant programs relating to the demonstration of advanced distribution 
systems, smart water heaters, vehicle-to-grid integration, and granular 
          retail electricity pricing, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 27, 2017

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

_______________________________________________________________________

                                 A BILL


 
 To direct the Secretary of Energy to establish certain demonstration 
 grant programs relating to the demonstration of advanced distribution 
systems, smart water heaters, vehicle-to-grid integration, and granular 
          retail electricity pricing, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Distributed Energy 
Demonstration Act of 2017''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Advanced distribution system grant program.
Sec. 4. Smart water heater demonstration program.
Sec. 5. Vehicle-to-Grid Integration (VGI) Demonstration Grant Program.
Sec. 6. Granular retail electricity pricing grant program.
Sec. 7. Federal matching fund for smart grid investment costs.
Sec. 8. Personal protections for sensitive personal data.
Sec. 9. General provisions.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Commission.--The term ``Commission'' means the Federal 
        Energy Regulatory Commission.
            (2) Distributed energy resource.--
                    (A) In general.--The term ``distributed energy 
                resource'' means an electric device that can produce or 
                consume energy that is located--
                            (i) on the distribution system or any 
                        subsystem of the distribution system; or
                            (ii) behind a customer meter.
                    (B) Inclusions.--The term ``distributed energy 
                resource'' includes--
                            (i) an energy storage resource;
                            (ii) an energy generation technology;
                            (iii) a demand response resource;
                            (iv) an energy efficiency resource;
                            (v) an electric vehicle and associated 
                        supply equipment and systems; and
                            (vi) aggregations and integrated control 
                        systems, including virtual power plants, 
                        microgrids, and networks of microgrid cells.
            (3) Electric consumer; electric utility; rate; state 
        regulatory authority.--The terms ``electric consumer'', 
        ``electric utility'', ``rate'', and ``State regulatory 
        authority'' have the meanings given the terms in section 3 of 
        the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 
        2602).
            (4) Energy storage.--The term ``energy storage'' means 
        equipment or facilities capable of absorbing energy, storing 
        energy for a period of time, and dispatching the stored energy, 
        that--
                    (A) uses mechanical, electrochemical, 
                hydroelectric, or thermal processes, as a single 
                facility or as an aggregation of units, throughout the 
                electric grid, including behind the meter to store 
                energy generated at one time for use at a later time;
                    (B) uses mechanical, electrochemical, 
                hydroelectric, or thermal processes, as a single 
                facility or as an aggregation of units, throughout the 
                electric grid, including behind the meter to store 
                energy generated from mechanical processes that would 
                otherwise be wasted for delivery at a later time; or
                    (C) stores thermal energy for direct use for 
                heating or cooling at a later time in a manner that 
                avoids the need to use electricity at that later time.
            (5) Granular.--The term ``granular'', with respect to a 
        rate or other price for electricity, means that the rate or 
        price is established based on precise accounting of the value, 
        as determined by the time and location of the production or 
        consumption of the electricity and the unique type of energy 
        services being provided, of electrical energy, capacity, and 
        ancillary services, including--
                    (A) time-of-use rates;
                    (B) peak-time rebates;
                    (C) critical peak pricing;
                    (D) real-time pricing;
                    (E) transactive energy approaches;
                    (F) inverted time-of-use rates;
                    (G) forward-looking charges;
                    (H) peak-coincident capacity network charges; and
                    (I) 3-part rates.
            (6) Grid flexibility.--The term ``grid flexibility'' means 
        the ability of a power system--
                    (A) from an operational perspective, to respond to 
                changes in supply and demand, such as abrupt changes in 
                load conditions or sharp ramps in generation; and
                    (B) from a long-term planning and investment 
                perspective, to respond to changes in technology, 
                markets and policy, without incurring stranded assets.
            (7) IoT.--The term ``IoT'' means a set of technologies 
        (including endpoint devices, such as sensors, actuators, 
        management systems, user interfaces, vehicles, machinery, and 
        household appliances) that--
                    (A) are linked via communication networks to enable 
                advanced control and valuable services; and
                    (B) may provide real-time information and 
                actionable analytics, as appropriate.
            (8) Light-duty consumer vehicle.--The term ``light-duty 
        consumer vehicle'' has the meaning given the term ``light-duty 
        vehicle'' in section 1037.801 of title 40, Code of Federal 
        Regulations (as in effect on the date of enactment of this 
        Act).
            (9) Microgrid.--The term ``microgrid'' means a localized 
        grid that can disconnect from the traditional grid to operate 
        autonomously and help mitigate grid disturbances to strengthen 
        grid resilience.
            (10) National laboratory.--The term ``National Laboratory'' 
        has the meaning given the term in section 2 of the Energy 
        Policy Act of 2005 (42 U.S.C. 15801).
            (11) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (12) Transit agency.--The term ``transit agency'' has the 
        meaning given the term in section 630.3 of title 49, Code of 
        Federal Regulations (as in effect on the date of enactment of 
        this Act).
            (13) Transit vehicle.--The term ``transit vehicle'' has the 
        meaning given the term ``bus'' in section 1192.3 of title 36, 
        Code of Federal Regulations (as in effect on the date of 
        enactment of this Act).

SEC. 3. ADVANCED DISTRIBUTION SYSTEM GRANT PROGRAM.

    (a) Definitions.--In this section:
            (1) Eligible entity.--The term ``eligible entity'' means an 
        electric utility, such as--
                    (A) an investor-owned electric utility;
                    (B) a publicly owned utility; and
                    (C) an electric cooperative.
            (2) Program.--The term ``program'' means the program 
        established under subsection (b).
    (b) Establishment.--The Secretary shall establish a program under 
which the Secretary shall provide grants to support projects designed 
to advance the integration and optimization of distributed energy 
resources.
    (c) Applications and Selection.--
            (1) In general.--To be eligible to receive a grant under 
        this section, an eligible entity shall submit to the Secretary 
        an application at such time, in such manner, and containing 
        such information as the Secretary determines to be appropriate, 
        including--
                    (A) an interoperability plan for the proposed 
                project;
                    (B) a cybersecurity plan for the proposed project;
                    (C) a privacy plan for the proposed project, 
                including a provision relating to--
                            (i) the protection of the privacy of 
                        individual customer information;
                            (ii) the secure storage, handling, and 
                        destruction of data; and
                            (iii) the access of energy use data by 
                        third parties;
                    (D) the anticipated benefits of the proposed 
                project, from a business perspective and the 
                perspective of the customer;
                    (E) for a project proposed by an investor-owned 
                electric utility, a formal approval of the project from 
                the regulatory body of jurisdiction, such as a State 
                public utility commission; and
                    (F) an assurance that, as a condition of receiving 
                the grant, the eligible entity will participate in a 
                working group in accordance with section 9(a), 
                including with respect to preparation of the report 
                under section 9(b).
            (2) Priority.--In selecting recipients of grants under this 
        section, the Secretary shall give priority to--
                    (A) a proposed project that is submitted by a 
                multiutility partnership with a diverse customer 
                profile;
                    (B) a proposed project that is submitted by a 
                partnership that includes at least 1 National 
                Laboratory or institution of higher education;
                    (C) a proposed project that promotes education and 
                training in disciplines that are essential for 
                distribution system development, as determined by the 
                Secretary; and
                    (D) a proposed project that proposes a scaled 
                deployment strategy for the technology and systems of 
                the project, with an emphasis on achieving adoption of 
                a standard for, and interoperability among several 
                manufacturers of, devices that create grid flexibility.
    (d) Program Goals.--The goals of the program are--
            (1) to demonstrate innovative and cost-effective techniques 
        for the integration and optimization of distributed energy 
        resources, including microgrid and networked microgrid systems;
            (2) to develop highly flexible, configurable, and 
        interactive networks of utility, customer, and third-party 
        systems with an IoT community enabling framework;
            (3) to inform the creation of standards and regulations; 
        and
            (4) to increase regulatory and utility confidence in 
        technologies and systems that are instrumental to the 
        integration and optimization of distributed energy resources, 
        including integrated energy systems.
    (e) Use of Funds.--A grant provided under this section may be used 
for any project that implements measures to advance the integration and 
optimization of distributed energy resources, as determined by the 
Secretary, including a project--
            (1) on advanced voltage control or optimization systems;
            (2) addressing dynamic protection schemes to manage reverse 
        power flows, communications, sensors, energy storage, 
        switching, and smart-inverter networks;
            (3) on advanced distribution management systems, such as 
        automated substations;
            (4) on cybersecurity technologies and applications;
            (5) supporting nonrecurring engineering costs of adoption 
        and implementation, among multiple manufacturers of grid-
        connected devices, of standards that enhance interoperability 
        and connectivity on electricity systems; and
            (6) for manufacturers of grid-connected devices or electric 
        utilities to establish full-time positions to design and 
        implement technologies that promote grid flexibility.
    (f) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $50,000,000, to remain available 
for a period of 10 years following the fiscal year for which the 
amounts were appropriated.

SEC. 4. SMART WATER HEATER DEMONSTRATION PROGRAM.

    (a) Definitions.--In this section:
            (1) Eligible entity.--The term ``eligible entity'' means--
                    (A) an electric utility; and
                    (B) a retail service provider of electricity.
            (2) Program.--The term ``program'' means the demonstration 
        program established under subsection (b)(1).
    (b) Demonstration Program.--
            (1) Establishment.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary, in consultation with the 
        Director of the National Science Foundation, shall establish a 
        demonstration program under which the Secretary shall provide 
        grants to eligible entities to carry out projects for the 
        design and production of smart water heater optimization 
        programs.
            (2) Program goals.--The goals of the program are--
                    (A) to demonstrate large-scale implementation of 
                smart water heaters as an energy storage resource used 
                on a regular basis as part of grid operation to improve 
                the operational efficiency of the electric grid;
                    (B) to demonstrate control of water heaters to 
                compensate for the intermittent nature of renewable 
                energy resources;
                    (C) to diminish the market barriers to the broad 
                adoption of smart water heaters;
                    (D) to provide funding to address nonrecurring 
                engineering costs; and
                    (E) to demonstrate best practices for--
                            (i) customer participation and 
                        satisfaction; and
                            (ii) maximizing customer benefits.
            (3) Applications.--
                    (A) In general.--To be eligible to receive a grant 
                under the program, an eligible entity shall submit to 
                the Secretary an application at such time, in such 
                manner, and containing such information as the 
                Secretary may require, including a proposal described 
                in subparagraph (B).
                    (B) Proposal requirements.--
                            (i) In general.--An eligible entity shall 
                        submit as part of the application under 
                        subparagraph (A) a proposal that--
                                    (I) demonstrates that the eligible 
                                entity will closely collaborate with 
                                one or more manufacturers of water 
                                heaters or water heater control 
                                equipment to coordinate sales and 
                                marketing across distribution channels;
                                    (II) defines a specific 
                                geographical area in which the smart 
                                water heaters will be available and in 
                                operation for a period of not less than 
                                1 year, but ideally for the full useful 
                                life of the smart water heaters;
                                    (III) demonstrates that the one or 
                                more participating manufacturers of 
                                water heaters or water heater control 
                                equipment identified under subclause 
                                (I) support the standards described in 
                                clause (ii);
                                    (IV) includes the stated intent and 
                                plan of the eligible entity to maintain 
                                the project after the program ends;
                                    (V) demonstrates the ability to 
                                execute control events on not fewer 
                                than 120 days per calendar year;
                                    (VI) stipulates a plan for 
                                increasing the number of smart water 
                                heaters on the electric grid, including 
                                by retrofitting existing hot water 
                                heaters with controls; and
                                    (VII) includes--
                                            (aa) an interoperability 
                                        plan for the proposed project;
                                            (bb) a cybersecurity plan 
                                        for the proposed project;
                                            (cc) a privacy plan for the 
                                        proposed project, including a 
                                        provision relating to the 
                                        protection of the privacy of 
                                        individual customer 
                                        information, the secure 
                                        storage, handling, and 
                                        destruction of data, and the 
                                        access of energy use data by 
                                        third parties; and
                                            (dd) a formal approval of 
                                        the project from the regulatory 
                                        body of jurisdiction, such as a 
                                        State public utility 
                                        commission.
                            (ii) Standards described.--With respect to 
                        a water heater produced or retrofitted under a 
                        project receiving a grant under the program, 
                        the standards referred to in clause (i)(III) 
                        are the following:
                                    (I) Water heaters or retrofit 
                                devices shall have--
                                            (aa) an ANSI/CTA-2045 
                                        communication interface; or
                                            (bb) a communication 
                                        interface using a standard or 
                                        specification for a 
                                        nonproprietary communication 
                                        interface from a recognized 
                                        standards-based organization.
                                    (II) Water heaters shall support 
                                one or more standard application 
                                protocols, such as--
                                            (aa) OpenADR;
                                            (bb) IEEE 2030.5; or
                                            (cc) the CTA-2045 
                                        application layer.
            (4) Geographical requirement.--The Secretary shall provide 
        grants under the program to eligible entities carrying out 
        projects in diverse geographical regions of the United States 
        to ensure that projects are carried out in service territories 
        with diverse utility business models.
            (5) Amount of grant.--The amount of a grant provided to an 
        eligible entity under the program for a project shall be not 
        less than $500,000 and not more than $10,000,000.
    (c) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $50,000,000, to remain available 
for a period of 10 years following the fiscal year for which the 
amounts were appropriated.

SEC. 5. VEHICLE-TO-GRID INTEGRATION (VGI) DEMONSTRATION GRANT PROGRAM.

    (a) Definitions.--In this section:
            (1) Eligible entity.--The term ``eligible entity'' means--
                    (A) an electric utility;
                    (B) a private commercial entity, including vehicle 
                manufacturers;
                    (C) an institution of higher education;
                    (D) a unit of State or local government;
                    (E) a nonprofit organization; and
                    (F) a National Laboratory.
            (2) Program.--The term ``program'' means the vehicle-to-
        grid demonstration grant program established under subsection 
        (b)(1).
    (b) Establishment of Program.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary, in cooperation with the 
        Secretary of Transportation, shall establish a vehicle-to-grid 
        integration demonstration grant program of research, 
        development, and demonstration activities--
                    (A) to advance the co-optimization of electrified 
                transportation and electricity systems, including by 
                identifying ways to increase the resilience, 
                efficiency, and environmental performance of the 
                electric grid and the transportation system;
                    (B) to advance the technical understanding of--
                            (i) the manner in which vehicle charging 
                        systems are controlled and optimized, including 
                        by advancing vehicle and charging station 
                        telemetry and embedded metrology; and
                            (ii) the practices of transmitting secure 
                        data over the Internet, a utility system, or 
                        other mechanism, with a means for 
                        implementation, such as a standard;
                    (C) to optimize electric vehicles for the 
                integration of renewable energy technologies and the 
                reduction of greenhouse gases and other pollutants;
                    (D) to investigate the technical, economic, and 
                legal details of using fleet, transit, and municipal 
                vehicle batteries for a range of electric grid 
                services, including--
                            (i) demand response;
                            (ii) frequency regulation and other 
                        ancillary services; and
                            (iii) energy output, or full-scale vehicle-
                        to-electric grid, operations;
                    (E) to investigate the co-optimization of the 
                electrification of transportation with advancements in 
                autonomous vehicles and the use of vehicles for ride 
                sharing, including by--
                            (i) studying consumer participation and 
                        other behavioral challenges, including 
                        incentives that promote co-optimization; and
                            (ii) researching challenges and 
                        opportunities relating to the optimization of 
                        electric grid operations in the context of 
                        autonomous vehicle and ride-sharing usage 
                        patterns, including the use of energy storage 
                        in charging systems;
                    (F) to investigate, in collaboration with the 
                Commission, approaches to the aggregation, wholesale 
                electricity marketing, and, to the maximum extent 
                practicable, retail electricity marketing of electric 
                grid services provided by electric vehicles, including 
                research into the use of transactive energy systems as 
                a means of enabling vehicle-electric grid integration;
                    (G) to implement innovative consumer marketing and 
                contracting models, including pricing approaches 
                (including consumer access to wholesale market pricing 
                signals), that co-optimize transportation benefits and 
                electric grid benefits, including by maximizing the 
                value of the vehicle services to the electric grid 
                while also maximizing value to the consumer (including 
                by maximizing the flexibility of use of the vehicle to 
                the driver or rider);
                    (H) to investigate and implement user-friendly 
                electric vehicle and related equipment financing models 
                linked to the marketing of electric grid services, 
                including the means by which the electric grid services 
                provided by an electric vehicle can help finance the 
                cost of the vehicle;
                    (I) to investigate and implement programs to 
                improve the access to, and affordability of, electric 
                vehicles for low-income populations;
                    (J)(i) to advance best practices for manufacturers 
                of electric vehicles, charging equipment, and systems; 
                and
                    (ii) to embed those practices in programs and grant 
                opportunities of the Department of Energy to leverage 
                competitive market electric vehicle products and 
                incentivize more rapid and widespread adoption;
                    (K) to assist electric utilities and transit 
                agencies in collaboratively planning an electrified 
                fleet;
                    (L) to investigate the use of fleet, transit, and 
                municipal vehicle batteries as power sources for 
                community shelter facilities during emergencies;
                    (M) to develop analytical tools and financial 
                models to assist electric utilities and transit 
                agencies in assessing electric utility and 
                infrastructure requirements to support selected transit 
                vehicle technologies and charging profiles, including 
                analytic tools--
                            (i) to optimize the total cost of 
                        ownership;
                            (ii) to develop electrification route maps 
                        and transition plans, with quantitative 
                        estimates of the population-weighted reductions 
                        in pollutant exposure from electrification of 
                        specific routes, including criteria pollutants 
                        and new pollutants of concern; and
                            (iii) to articulate the strategy and 
                        timelines for transitioning to zero-emission 
                        vehicles;
                    (N) to investigate scenarios for the sharing of 
                battery assets for the purpose of maximizing cost-
                performance and battery use, including--
                            (i) scenarios that optimize shared usage 
                        between transit agencies and electric utilities 
                        over the lifecycle of the battery;
                            (ii) incentives for an entity (such as an 
                        electric utility) to provide funding to reduce 
                        initial premium costs by--
                                    (I) owning the battery of a transit 
                                agency transit vehicle; and
                                    (II) charging the battery using 
                                smart charging; and
                            (iii) enabling the entity to reposition the 
                        battery into stationary use after the battery 
                        has served the expected life of the battery in 
                        mobility use;
                    (O) to develop a methodology for modeling load 
                increases expected from electrifying the transportation 
                sector; and
                    (P) to investigate the deployment of electric 
                vehicle technologies and charging infrastructure within 
                scalable and integrated energy management systems as 
                part of community energy infrastructure development.
            (2) Consultation.--As soon as practicable after the date of 
        enactment of this Act, in carrying out the activities under 
        paragraph (1), the Secretary shall consult with stakeholders, 
        including--
                    (A) vehicle manufacturers, including--
                            (i) manufacturers of light-, medium-, and 
                        heavy-duty vehicles; and
                            (ii) transit vehicle manufacturers;
                    (B) electric utilities, such as investor-owned 
                electric utilities, publicly owned electric utilities, 
                and electric cooperatives;
                    (C) third-party energy service providers;
                    (D) transit agencies;
                    (E) fleet operators;
                    (F) private companies, including energy technology 
                manufacturers and battery manufacturers;
                    (G) other Federal agencies;
                    (H) the National Laboratories;
                    (I) States;
                    (J) tribal governments;
                    (K) units of local government;
                    (L) nonprofit organizations;
                    (M) institutions of higher education;
                    (N) electric vehicle supply equipment and charging 
                infrastructure manufacturers; and
                    (O) battery manufacturers.
            (3) Requirement.--The program shall include grants for 
        projects relating to--
                    (A) light-duty consumer vehicles;
                    (B) fleet and municipal vehicles; and
                    (C) transit vehicles.
    (c) Applications.--
            (1) In general.--To be eligible to receive a grant under 
        the program, an eligible entity shall submit to the Secretary 
        an application at such time, in such manner, and containing 
        such information as the Secretary may require, including a 
        commitment by the eligible entity to participate in a working 
        group in accordance with section 9(a) relating to light-duty 
        consumer vehicles or fleet and municipal vehicles and transit 
        vehicles, as appropriate.
            (2) Proposal requirements.--An eligible entity shall submit 
        as part of the application required under paragraph (1) a 
        proposal that includes--
                    (A) an interoperability plan for the proposed 
                project;
                    (B) a cybersecurity plan for the proposed project;
                    (C) a privacy plan for the proposed project, 
                including a provision relating to--
                            (i) the protection of the privacy of 
                        individual customer information;
                            (ii) the secure storage, handling, and 
                        destruction of data; and
                            (iii) the access of energy use data by 
                        third parties; and
                    (D) a plan for leveraging existing market product 
                offerings.
    (d) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated to 
        carry out this section--
                    (A) for projects relating to light-duty consumer 
                vehicles, $20,000,000; and
                    (B) for projects relating to fleet and municipal 
                vehicles and transit vehicles, $20,000,000.
            (2) Availability.--Amounts made available under paragraph 
        (1) shall remain available for a period of 10 years following 
        the fiscal year for which the amounts were appropriated.

SEC. 6. GRANULAR RETAIL ELECTRICITY PRICING GRANT PROGRAM.

    (a) Definitions.--In this section:
            (1) Eligible entity.--The term ``eligible entity'' means an 
        electric utility, such as--
                    (A) an investor-owned electric utility;
                    (B) a publicly owned utility; and
                    (C) an electric cooperative.
            (2) Program.--The term ``program'' means the granular 
        retail electricity pricing grant program established under 
        subsection (b)(1).
    (b) Establishment.--
            (1) In general.--The Secretary shall establish a program 
        under which the Secretary shall provide grants to support 
        projects described in subsection (d) for the voluntary 
        deployment of granular retail electricity pricing, with the 
        goal of producing more efficient economic signals for 
        transactions conducted on the electric grid.
            (2) Requirement.--In developing the program, the Secretary 
        shall take into consideration lessons learned from granular 
        electricity pricing demonstration and pilot projects, if any.
    (c) Application and Selection.--
            (1) In general.--To be eligible to receive a grant under 
        the program, an eligible entity shall submit to the Secretary 
        an application at such time, in such manner, and containing 
        such information as the Secretary determines to be appropriate, 
        including--
                    (A) a description of the granular pricing 
                mechanisms to be implemented;
                    (B) a description of any enabling technology 
                proposed to be used by the eligible entity, which shall 
                include, at a minimum, advanced metering 
                infrastructure;
                    (C) the stated intent and plan of the eligible 
                entity to maintain scaled and sustained implementation 
                of the granular rate structure after the program ends;
                    (D) a description of a consumer engagement and 
                retention strategy; and
                    (E) if the eligible entity is an electric utility 
                or an electricity retailer, a formal approval of the 
                project from the regulatory body of jurisdiction, such 
                as a State public utility commission.
            (2) Priority.--In awarding grants under the program, the 
        Secretary shall give priority to proposed projects that--
                    (A) implement--
                            (i) transactive energy systems; or
                            (ii) systems of real-time pricing, in which 
                        prices are transmitted directly to devices; and
                    (B) maximize the use and incorporation of 
                technologies that create grid flexibility.
    (d) Use of Funds.--A grant provided under the program may be used 
for any project that implements granular retail rates, including a 
project--
            (1) to offset revenue-neutrality requirements established 
        by an applicable State regulatory authority;
            (2) to study consumer behavior in response to implemented 
        granular retail electricity pricing; or
            (3) to educate and engage consumers regarding rate design 
        innovation, including by providing technical assistance and 
        opportunities for comment.
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $50,000,000, to remain available 
for a period of 10 years following the fiscal year for which the 
amounts were appropriated.

SEC. 7. FEDERAL MATCHING FUND FOR SMART GRID INVESTMENT COSTS.

    (a) Purpose.--The purpose of this section is to support the 
continued deployment of advanced metering infrastructure and other 
technologies.
    (b) Improvements to Federal Matching Fund.--Section 1306 of the 
Energy Independence and Security Act of 2007 (42 U.S.C. 17386) is 
amended--
            (1) in subsection (e)(1)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``within 60 days after the enactment of the 
                American Recovery and Reinvestment Act of 2009'' and 
                inserting ``not later than 60 days after the date of 
                enactment of the DEMO Act'';
                    (B) in subparagraph (D), by striking ``and'' at the 
                end;
                    (C) in subparagraph (E), by striking the period at 
                the end and inserting ``; and''; and
                    (D) by adding at the end the following:
                    ``(F) require as a condition of receiving funding 
                under this section that the recipient of a grant shall 
                submit to the Secretary--
                            ``(i) an interoperability plan described in 
                        subsection (f)(1); and
                            ``(ii) not later than 5 years after the 
                        date on which the recipient first receives 
                        funding under this section, an interoperability 
                        report described in subsection (f)(2).'';
            (2) by redesignating subsection (f) as subsection (g);
            (3) by inserting after subsection (e) the following:
    ``(f) Interoperability Plan and Report.--
            ``(1) Interoperability plan.--An interoperability plan 
        referred to in subsection (e)(1)(F)(i) shall include--
                    ``(A) a demonstrated set of use cases;
                    ``(B) a plan for facilitating interaction between 
                the project of the grant recipient and the projects of 
                not less than 3 other parties to demonstrate how the 
                project may work with the projects of other parties;
                    ``(C) a protocol for measuring and verifying 
                interoperability performance;
                    ``(D) a methodology for evaluating overall 
                interoperability maturity, including the application, 
                if appropriate, of an interoperability maturity model;
                    ``(E) a list of deployed standards; and
                    ``(F) the integration and testing approaches for 
                the project to ensure interoperability.
            ``(2) Interoperability report.--An interoperability report 
        referred to in subsection (e)(1)(F)(ii) shall include a 
        description of a discussion, an analysis, data, or a 
        combination thereof relating to--
                    ``(A) the performance of the demonstrated set of 
                use cases described in paragraph (1)(A);
                    ``(B) the interaction between the project of the 
                grant recipient and the projects of not less than 3 
                other parties, as described in paragraph (1)(B);
                    ``(C) costs and benefits to--
                            ``(i) consumers;
                            ``(ii) electric utilities;
                            ``(iii) appliance manufacturers;
                            ``(iv) grid operators; and
                            ``(v) other parties that the Secretary 
                        determines are relevant; and
                    ``(D) performance, if appropriate, according to an 
                interoperability maturity model, as described in 
                paragraph (1)(D).''; and
            (4) in subsection (g) (as redesignated by paragraph (2)), 
        by striking ``2012'' and inserting ``2025''.

SEC. 8. PRIVACY.

    (a) Protecting Privacy and Security.--In carrying out this Act, the 
Secretary, the Administrator of the Energy Information Administration, 
and the Secretary of Homeland Security shall identify, incorporate, and 
follow best practices for protecting the privacy of individuals and 
businesses and the respective sensitive data of the individuals and 
businesses, including by managing privacy risk and implementing the 
Fair Information Practice Principles of the Federal Trade Commission 
for the collection, use, disclosure, and retention of individual 
electric consumer information in accordance with the Office of 
Management and Budget Circular A-130 (or successor circulars).
    (b) Personal Protections for Sensitive Personal Data.--No Federal 
entity shall request the creation, recording, or collection of data 
identified to an individual person as a result of this Act.
    (c) Law Enforcement Requirements.--
            (1) Definitions.--In this subsection:
                    (A) Governmental entity.--The term ``governmental 
                entity'' has the meaning given that term in section 
                2711 of title 18, United States Code.
                    (B) Judge of competent jurisdiction; state.--The 
                terms ``judge of competent jurisdiction'' and ``State'' 
                have the meanings given such terms in section 2510 of 
                title 18, United States Code.
            (2) Consumer information.--A governmental entity may obtain 
        from an electric utility, third-party aggregator, or other 
        nongovernmental entity under an administrative subpoena 
        authorized by a Federal or State statute or a Federal or State 
        grand jury or trial subpoena the--
                    (A) name of an electric consumer;
                    (B) address of an electric consumer;
                    (C) length of service (including start date) of, 
                and types of service used by, an electric consumer; and
                    (D) means and source of payment for such service 
                (including any credit card or bank account number) of 
                an electric consumer.
            (3) Electric usage information.--A governmental entity may 
        only require the disclosure by an electric utility, third-party 
        aggregator, or other nongovernmental entity of information 
        regarding the use of electricity by an electric consumer 
        (including monthly usage data, data at a greater level of 
        detail or specificity, and information about electric use by 
        specific appliances) pursuant to a warrant issued based on 
        probable cause, using the procedures described in the Federal 
        Rules of Criminal Procedure (or, in the case of a State court, 
        issued using State warrant procedures) by a court of competent 
        jurisdiction.
            (4) Notice.--
                    (A) In general.--Not later than 30 days after 
                obtaining a warrant for electric usage information 
                described in paragraph (3), a governmental entity shall 
                notify each electric consumer whose information was 
                obtained.
                    (B) Delay of notice.--
                            (i) In general.--Upon application by a 
                        governmental entity, a judge of competent 
                        jurisdiction may issue an order authorizing the 
                        governmental entity to delay notice under 
                        subparagraph (A) for a period of not more than 
                        180 days if the judge finds reason to believe 
                        notifying the electric consumer of the order 
                        will result in--
                                    (I) endangering the life or 
                                physical safety of an individual;
                                    (II) flight from prosecution;
                                    (III) destroying of or tampering 
                                with evidence;
                                    (IV) intimidation of potential 
                                witnesses; or
                                    (V) otherwise seriously 
                                jeopardizing an investigation or unduly 
                                delaying a trial.
                            (ii) Unlimited renewals.--Upon application 
                        by a governmental entity, a judge of competent 
                        jurisdiction may renew an order delaying notice 
                        under clause (i) for additional periods of not 
                        longer than 180 days if the judge makes a 
                        finding described in clause (ii).
            (5) Suppression.--Any electric usage information described 
        in paragraph (3), or evidence directly or indirectly derived 
        from such information, may not be received in evidence in any 
        trial, hearing, or other proceeding in or before any court, 
        grand jury, department, officer, agency, regulatory body, 
        legislative committee, or other authority of the United States, 
        a State, or a political subdivision thereof if the obtaining of 
        the information was not conducted in accordance with this 
        subsection.
            (6) Reporting.--
                    (A) By governmental entities.--In January of each 
                year, each governmental entity shall submit to the 
                Administrative Office of the United States Courts 
                information regarding any warrant described in 
                paragraph (3) that was sought or obtained by the 
                governmental entity during the previous year, 
                including--
                            (i) the number of warrants described in 
                        paragraph (3) sought by the governmental 
                        entity;
                            (ii) the number of warrants described in 
                        paragraph (3) obtained by the governmental 
                        entity; and
                            (iii) for each warrant described in 
                        paragraph (3) sought or obtained by the 
                        governmental entity--
                                    (I) the offense specified in the 
                                application; and
                                    (II) the identity of the officer 
                                applying for the warrant.
                    (B) Report to congress.--As part of the report 
                submitted under section 2519(3) of title 18, United 
                States Code, the Administrative Office of the United 
                States Courts shall provide to Congress, with respect 
                to the previous year--
                            (i) the number of warrants described in 
                        paragraph (3) sought by governmental entities;
                            (ii) the number of warrants described in 
                        paragraph (3) obtained by governmental 
                        entities; and
                            (iii) a summary and analysis of the data 
                        required to be filed with the Administrative 
                        Office under subparagraph (A).

SEC. 9. GENERAL PROVISIONS.

    (a) Working Group.--
            (1) Establishment.--For each grant program established 
        under this Act, the Secretary shall establish a working group 
        to be composed of representatives of each project selected to 
        receive a grant under this Act.
            (2) Meetings.--The working groups established under 
        paragraph (1) shall meet not less frequently than once every 
        180 days.
            (3) Participation required.--As a condition of receiving a 
        grant under this Act, the recipient shall designate a 
        representative of the relevant project to serve as a member of 
        the working group under this subsection, including by attending 
        each meeting of the working group described under paragraph 
        (2).
    (b) Reports.--
            (1) Grant recipient report.--Not later than 18 months after 
        the date on which a grant is first provided to an eligible 
        entity under a grant program established under this Act, the 
        eligible entity shall submit to the Secretary a report 
        describing the results of the project, including information 
        on--
                    (A) technical findings from the project, 
                including--
                            (i) cost savings;
                            (ii) the cybersecurity implications of 
                        implementing the project;
                            (iii) customer participation and 
                        satisfaction;
                            (iv) any customer benefits realized as a 
                        result of the program; and
                            (v) environmental performance;
                    (B) an accounting of project costs; and
                    (C) a description of how project findings will be 
                implemented in the future.
            (2) Reports to congress.--Not later than 2 years after the 
        date on which the initial grants are provided under each 
        program established under this Act, the Secretary shall submit 
        to the appropriate committees of Congress a separate report 
        relating to each program, including information such as--
                    (A) the technical findings of the program;
                    (B) the number of projects undertaken;
                    (C) an analysis of costs and benefits of 
                implementing the program; and
                    (D) the total amount of funds distributed under the 
                program, including a breakdown by State and by service 
                territory.
    (c) Cost-Share.--The Federal share of the cost of a project that 
receives a grant under a program established under this Act shall not 
exceed 50 percent of the total cost of the project.
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