Sec. 3. Assessment of Smart Grid cost effectiveness in products
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Not later than 1 year after the date of enactment of this Act, the Secretary and the Administrator shall each assess the potential for cost-effective integration of Smart Grid technologies and capabilities in all products that are reviewed by the Department of Energy and the Environmental Protection Agency, respectively, for potential designation as Energy Star products. Not later than 2 years after the date of enactment of this Act, the Secretary and the Administrator shall each prepare an analysis of the potential energy savings, greenhouse gas emission reductions, and electricity cost savings that could accrue for each of the products identified by the assessment in subsection
(a)in the following optimal circumstances: The products possessed Smart Grid capability and interoperability that is tested and proven reliable. The products were utilized in an electricity utility service area which had Smart Grid capability and offered customers rate or program incentives to use the products. The utility’s rates reflected national average costs, including average peak and valley seasonal and daily electricity costs. Consumers using such products took full advantage of such capability. The utility avoided incremental investments and rate increases related to such savings. The analysis under paragraph
(1)shall be considered the best case Smart Grid analysis. On the basis of such an analysis for each product, the Secretary and the Administrator shall determine whether the installation of Smart Grid capability for such a product would be cost effective. For purposes of this paragraph, the term cost effective means that the cumulative savings from using the product under the best case Smart Grid circumstances for a period of one-half of the product’s expected useful life will be greater than the incremental cost of the Smart Grid features included in the product. To the extent that including Smart Grid capability in any products analyzed under paragraph
(2)is found to be cost effective in the best case, the Secretary and the Administrator shall, not later than 3 years after the date of enactment of this Act take each of the following actions: Inform the manufacturer of such product of such finding of cost effectiveness. Assess the potential contributions the development and use of products with Smart Grid technologies bring to reducing peak demand and promoting grid stability. Assess the potential national energy savings and electricity cost savings that could be realized if Smart Grid potential were installed in the relevant products reviewed by the Energy Star program. Assess and identify options for providing consumers information on products with Smart Grid capabilities, including the necessary conditions for cost-effective savings. Submit a report to Congress summarizing the results of the assessment for each class of products, and presenting the potential energy and greenhouse gas savings that could result if Smart Grid capability were installed and utilized on such products.