II 117th CONGRESS 2d Session S. 4983 IN THE SENATE OF THE UNITED STATES September 28, 2022 Mr. Hickenlooper (for himself, Ms. Klobuchar , Mr. King , Mr. Bennet , Mr. Heinrich , and Ms. Smith ) 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 program to encourage deployment of electric school buses and vehicle-to-grid technologies and applications, and for other purposes.

1. Short title This Act may be cited as the Bus Integration Dedicated to Improving Resilience, Eliminating Congestion, and Triggering Innovation Over Numerous Applications and Localities Act or the BIDIRECTIONAL Act . 2. Program to encourage deployment of electric school buses and vehicle-to-everything technologies and applications (a) Definitions In this section: (1) Electric school bus The term electric school bus means a school bus that is propelled— (A) to a significant extent, as determined by the Secretary, by an electric motor that— (i) draws electricity from a battery; and (ii) is capable of being recharged from an external source of electricity; and (B) by any necessary components or equipment required to facilitate electric-powered school bus operations. (2) Eligible entity The term eligible entity means— (A) any person (including any company or other entity) or State, local, or Tribal entity that sells electric energy, including— (i) an electric utility, including— (I) a local distribution company or utility; and (II) an electric cooperative; (ii) a municipality; and (iii) a retail marketer of electricity; (B) a State public utilities commission; (C) a third-party energy efficiency program administrator; (D) a school bus manufacturer; (E) a public or private school district; (F) a supplier of charging infrastructure; (G) a developer, provider, owner, or operator of solar, wind, or other renewable or distributed energy resources; (H) a third-party school bus fleet or charging operator; (I) any other entity, including a partnership, that the Secretary determines to be appropriate; and (J) any partnership or consortium of entities described in any of subparagraphs (A) through (I). (3) Indian Tribe The term Indian Tribe has the meaning given the term in section 4 of the Indian Self-Determination and Education Assistance Act ( 25 U.S.C. 5304 ). (4) 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 ). (5) Program The term Program means the program established under subsection (b)(1). (6) Project partner The term project partner , with respect to a project for which a grant is sought or provided under the Program, means an eligible entity that is a member of a partnership or consortium described in paragraph (2)(J) with respect to that project. (7) 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 ). (8) Secretary The term Secretary means the Secretary of Energy. (b) Program (1) Establishment Not later than 1 year after the date of enactment of this Act, the Secretary shall establish a program to encourage the deployment of vehicle-to-grid and vehicle-to-everything technologies and applications, as described in paragraph (2), including, at a minimum, a vehicle capable of discharging at least 10 kilowatts of power to bidirectional electric vehicle supply equipment that provides alternating current power to an electrical circuit, by providing grants to eligible entities for projects that include the use of not fewer than 1 electric school bus with bidirectional energy flow capabilities for an application described in that paragraph. (2) Application described An application referred to in paragraph (1) is— (A) a vehicle-to-grid application, such as— (i) provision of a distribution-level service or participation in a distribution-level program; (ii) provision of wholesale market services, such as capacity, energy, and ancillary services; (iii) provision of microgrid services; or (iv) aggregations of vehicle-to-grid applications that provide distribution-level service, wholesale market services, or microgrid services; (B) a vehicle-to-building application; or (C) any other resilience or other application, as determined to be appropriate by the Secretary. (3) Priority and diversity of projects (A) Priority In providing grants under the Program, the Secretary shall give priority to projects that, in the determination of the Secretary, are likely to be economically self-sustaining and replicable once established. (B) Requirement The Secretary, to the maximum extent practicable in accordance with the priority required to be established under subparagraph (A), shall provide grants under the Program for projects across differing situations, including in a region that is experiencing congestion, shortages, transmission system constraints, or distribution system constraints that cause the cost of electricity to increase for consumers. (4) Applying for assistance (A) In general An eligible entity desiring a grant under the Program shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require, subject to this paragraph. (B) Requirements (i) In general An application submitted under subparagraph (A) shall demonstrate how the assistance requested under the Program would help the 1 or more eligible entities submitting the application to participate in economically justifiable opportunities that recognize bidirectional electric vehicle charging as a relevant technology, including existing electric utility or Regional Transmission Organization tariffs, programs, initiatives, policies, arrangements, or other opportunities that recognize bidirectional electric vehicle charging as a relevant technology. (ii) Interconnection rules An application submitted under subparagraph (A) shall include a certification that any project described in the application and proposed to be carried out using a grant provided under the Program will comply with all applicable interconnection rules. (5) Use of funds (A) In general Amounts provided to an eligible entity pursuant to a grant under the Program may be used for— (i) acquiring and installing bidirectional charging stations and interconnection upgrades necessary for bidirectional energy flow; (ii) retrofitting buildings, parking facilities, and school buses for bidirectional charging; (iii) acquiring and installing any necessary metering and telemetry equipment or systems; (iv) acquiring technical assistance from the Department of Energy, National Laboratories, or other parties with relevant expertise for any participating project partners; and (v) any application directly related to establishing, sustaining, and optimizing bidirectional energy flow, as the Secretary determines to be appropriate. (B) Requirement Amounts provided to an eligible entity pursuant to a grant under the Program shall be used in a manner that corresponds specifically to the incremental additional cost of implementing 1 or more applications described in paragraph (2) as compared to the costs associated with the acquisition, demonstration, or use of a typical electric school bus, as determined by the Secretary. (C) Community outreach (i) In general Subject to clause (ii), an eligible entity receiving a grant under the Program shall use not less than 1 percent of the amounts received for outreach that is directed at the communities and bus users receiving or benefitting from those amounts, for the purpose of increasing awareness of the benefits of grid-integrated school buses and how grid-integrated school buses will be used. (ii) Waiver The Secretary may waive the requirement described in clause (i) if the Secretary determines that the outreach described in that clause is unnecessary or would be of minimal benefit to the overall goal of sustained technological deployment. (6) Matching requirement An eligible entity receiving a grant under the Program shall ensure that amounts derived from non-Federal sources are provided for the projects funded by the grant in a total amount that is equal to, or greater than, the amount of the grant. (7) Outreach to potentially interested entities Of the total amount appropriated to carry out the Program, the Secretary shall use not less than 1 percent for outreach to potentially interested eligible entities, including eligible entities participating in, or with a demonstrated interest in, the clean school bus program established under section 741 of the Energy Policy Act of 2005 ( 42 U.S.C. 16091 ). (8) School district compensation An eligible entity receiving a grant under the Program shall demonstrate to the Secretary that any school district participating in the applicable project is appropriately compensated for that participation in a manner approved by the Secretary, which may include— (A) the provision of direct financial compensation to the school district; (B) the provision or acquisition of electric school buses for the school district; or (C) savings resulting from the implementation of an application described in paragraph (2). (9) Annual submission of data An eligible entity receiving a grant under the Program shall annually submit to the Secretary data from vehicles, chargers, and associated grid infrastructure necessary to determine operational and economic impacts, and additional data as determined to be necessary by the Secretary. (10) Compatibility with EPA Clean School Bus Program Notwithstanding any other provision of law, the Secretary may provide a grant under the Program for applicable projects, programs, or activities for which amounts are provided under the clean school bus program established under section 741 of the Energy Policy Act of 2005 ( 42 U.S.C. 16091 ), and to eligible entities receiving amounts under that program, subject to all applicable requirements of this section. (c) Report to Congress Not later than 1 year after the date of enactment of this Act, the Secretary shall submit to Congress a report summarizing any existing pilot programs, including State-funded and locally funded pilot programs, involving the use of school buses for the applications described in subsection (b)(2), including— (1) any best practices, challenges, lessons learned, and promising future directions discernable from those pilot programs and applications; (2) any challenges, opportunities, and strategies unique to the implementation of those applications in rural areas; (3) any challenges to the commercial viability of those applications posed by State, Federal, or other regulatory barriers; and (4) (A) any challenges to the economic viability of projects involving those applications; and (B) any opportunities and strategies to make projects involving those applications economically viable. (d) Authorization of appropriations There is authorized to be appropriated to the Secretary to carry out this section $500,000,000 for the period of fiscal years 2022 through 2026. 3. Consideration of measures to promote vehicle-to-grid integration (a) 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: (22) Vehicle-to-grid integration (A) In general Each State shall consider— (i) measures to promote vehicle-to-grid integration, including— (I) the establishment of rates, tariffs, measures, and standards that enable electric vehicles and electric vehicle charging infrastructure— (aa) to receive interconnection service as described in subparagraph (B); and (bb) to export power from the vehicle battery to the distribution system or the bulk power system; (II) the establishment of rates, tariffs, measures, and standards that enable electric vehicle charging station site hosts, charging station owners, aggregators, owners of electric vehicle fleets or individual fleet vehicles, or drivers of private light-duty electric vehicles to receive compensation for electricity exported from the vehicle battery to the distribution system or the bulk power system; and (III) the establishment of rates, tariffs, measures, and standards that enable aggregation of electric vehicles for the purpose of participating in active load management programs, including customer demand-response programs and customer energy storage programs, and providing ancillary services that recognize the value that flexible electric vehicle charging can provide to the distribution system or the bulk power system; and (ii) the impacts of the rates, tariffs, measures, and standards described in subclauses (I) through (III) of clause (i), or similar rates, tariffs, measures, and standards, on all classes and types of vehicles, including, at a minimum, light-, medium-, and heavy-duty vehicles. (B) Interconnection service described The interconnection service referred to in subparagraph (A)(i)(I)(aa) is interconnection service that is offered based on— (i) the standards described in paragraph (15) (or successor standards); or (ii) as necessary and reasonable, standards that— (I) are defined in electric vehicle-to-grid communications interfaces, protocols, or standards; (II) are widely adopted; and (III) to ensure the reliability and safety of the electric system, are— (aa) consistent (or adjusted to be consistent) with the standards described in clause (i); and (bb) integrated, able to be integrated, or adjusted in a manner that facilitates integration with the standards described in that clause. . (b) Compliance (1) Time limitation 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: (9) (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 (22) 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 (22) of section 111(d). . (2) Failure to comply Section 112(c) of the Public Utility Regulatory Policies Act of 1978 ( 16 U.S.C. 2622(c) ) is amended by adding at the end the following: In the case of the standard established by paragraph (22) 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 (22). . (3) Prior State actions (A) In general Section 112 of the Public Utility Regulatory Policies Act of 1978 ( 16 U.S.C. 2622 ) is amended— (i) in subsection (d)— (I) by redesignating paragraphs (1) through (3) as subparagraphs (A) through (C), respectively, and indenting appropriately; and (II) in the matter preceding subparagraph (A) (as so redesignated), by striking Subsections and inserting the following: (1) In general Subsections ; (ii) in subsection (e)— (I) by redesignating paragraphs (1) through (3) as subparagraphs (A) through (C), respectively, and indenting appropriately; and (II) by striking the subsection designation and heading and all that follows through Subsections in the matter preceding subparagraph (A) (as so redesignated) and inserting the following: (2) Time-based metering and communications Subsections ; (iii) in subsection (f)— (I) by redesignating paragraphs (1) through (3) as subparagraphs (A) through (C), respectively, and indenting appropriately; and (II) by striking the subsection designation and heading and all that follows through Subsections in the matter preceding subparagraph (A) (as so redesignated) and inserting the following: (3) Interconnection Subsections ; (iv) in subsection (g)— (I) by redesignating paragraphs (1) through (3) as subparagraphs (A) through (C), respectively, and indenting appropriately; and (II) by striking the subsection designation and heading and all that follows through Subsections in the matter preceding subparagraph (A) (as so redesignated) and inserting the following: (4) Demand-response practices Subsections ; (v) in subsection (h)— (I) by redesignating paragraphs (1) through (3) as subparagraphs (A) through (C), respectively, and indenting appropriately; and (II) by striking the subsection designation and heading and all that follows through Subsections in the matter preceding subparagraph (A) (as so redesignated) and inserting the following: (5) Electric vehicle charging programs Subsections ; and (vi) in subsection (d) (as so amended) by adding at the end the following: (6) Vehicle-to-grid integration Subsections (b) and (c) shall not apply to the standard established by paragraph (22) of section 111(d) in the case of any electric utility in a State if, before the date of enactment of this subsection— (A) the State has implemented for the electric utility the standard (or a comparable standard); (B) 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 (C) the State legislature has voted on the implementation of the standard (or a comparable standard) for the electric utility during the 3-year period ending on that date of enactment. . (B) Cross reference Section 124 of the Public Utility Regulatory Policies Act of 1978 ( 16 U.S.C. 2634 ) is amended by adding at the end the following: In the case of the standard established by paragraph (22) 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 (22). .