Sec. 1105. Strategic Transformer Reserve
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Congress finds that the storage of strategically located spare large power transformers and emergency mobile substations will reduce the vulnerability of the United States to multiple risks facing electric grid reliability, including physical attack, cyber attack, electromagnetic pulse, geomagnetic disturbances, severe weather, and seismic events. In this section: The term bulk-power system has the meaning given such term in section 215(a) of the Federal Power Act ( 16 U.S.C. 824o(a) ).
The term critically damaged large power transformer means a large power transformer that— has sustained extensive damage such that— repair or refurbishment is not economically viable; or the extensive time to repair or refurbish the large power transformer would create an extended period of instability in the bulk-power system; and prior to sustaining such damage, was part of the bulk-power system. The term critical electric infrastructure has the meaning given that term in section 215A of the Federal Power Act.
The term Electric Reliability Organization has the meaning given such term in section 215(a) of the Federal Power Act ( 16 U.S.C. 824o(a) ). The term emergency mobile substation means a mobile substation or mobile transformer that is— assembled and permanently mounted on a trailer that is capable of highway travel and meets relevant Department of Transportation regulations; and intended for express deployment and capable of being rapidly placed into service. The term large power transformer means a power transformer with a maximum nameplate rating of 100 megavolt-amperes or higher, including related critical equipment, that is, or is intended to be, a part of the bulk-power system.
The term Secretary means the Secretary of Energy. The term spare large power transformer means a large power transformer that is stored within the Strategic Transformer Reserve to be available to temporarily replace a critically damaged large power transformer. Not later than 1 year after the date of enactment of this Act, the Secretary, acting through the Office of Electricity Delivery and Energy Reliability, shall, in consultation with the Federal Energy Regulatory Commission, the Electricity Sub-sector Coordinating Council, the Electric Reliability Organization, and owners and operators of critical electric infrastructure and defense and military installations, prepare and submit to Congress a plan to establish a Strategic Transformer Reserve for the storage, in strategically located facilities, of spare large power transformers and emergency mobile substations in sufficient numbers to temporarily replace critically damaged large power transformers and substations that are critical electric infrastructure or serve defense and military installations.
The Strategic Transformer Reserve plan shall include a description of— the appropriate number and type of spare large power transformers necessary to provide or restore sufficient resiliency to the bulk-power system, critical electric infrastructure, and defense and military installations to mitigate significant impacts to the electric grid resulting from— physical attack; cyber attack; electromagnetic pulse attack; geomagnetic disturbances; severe weather; or seismic events; other critical electric grid equipment for which an inventory of spare equipment, including emergency mobile substations, is necessary to provide or restore sufficient resiliency to the bulk-power system, critical electric infrastructure, and defense and military installations; the degree to which utility sector actions or initiatives, including individual utility ownership of spare equipment, joint ownership of spare equipment inventory, sharing agreements, or other spare equipment reserves or arrangements, satisfy the needs identified under subparagraphs
(A)and (B); the potential locations for, and feasibility and appropriate number of, strategic storage locations for reserve equipment, including consideration of— the physical security of such locations; the protection of the confidentiality of such locations; and the proximity of such locations to sites of potentially critically damaged large power transformers and substations that are critical electric infrastructure or serve defense and military installations, so as to enable efficient delivery of equipment to such sites; the necessary degree of flexibility of spare large power transformers to be included in the Strategic Transformer Reserve to conform to different substation configurations, including consideration of transformer— power and voltage rating for each winding; overload requirements; impedance between windings; configuration of windings; and tap requirements; an estimate of the direct cost of the Strategic Transformer Reserve, as proposed, including— the cost of storage facilities; the cost of the equipment; and management, maintenance, and operation costs; the funding options available to establish, stock, manage, and maintain the Strategic Transformer Reserve, including consideration of fees on owners and operators of bulk-power system facilities, critical electric infrastructure, and defense and military installations relying on the Strategic Transformer Reserve, use of Federal appropriations, and public-private cost-sharing options; the ease and speed of transportation, installation, and energization of spare large power transformers to be included in the Strategic Transformer Reserve, including consideration of factors such as— transformer transportation weight; transformer size; topology of critical substations; availability of appropriate transformer mounting pads; flexibility of the spare large power transformers as described in subparagraph (E); and ability to rapidly transition a spare large power transformer from storage to energization; eligibility criteria for withdrawal of equipment from the Strategic Transformer Reserve; the process by which owners or operators of critically damaged large power transformers or substations that are critical electric infrastructure or serve defense and military installations may apply for a withdrawal from the Strategic Transformer Reserve; the process by which equipment withdrawn from the Strategic Transformer Reserve is returned to the Strategic Transformer Reserve or is replaced; possible fees to be paid by users of equipment withdrawn from the Strategic Transformer Reserve; possible fees to be paid by owners and operators of large power transformers and substations that are critical electric infrastructure or serve defense and military installations to cover operating costs of the Strategic Transformer Reserve; the domestic and international large power transformer supply chain; the potential reliability, cost, and operational benefits of including emergency mobile substations in any Strategic Transformer Reserve established under this section; and other considerations for designing, constructing, stocking, funding, and managing the Strategic Transformer Reserve. The Secretary may establish a Strategic Transformer Reserve in accordance with the plan prepared pursuant to subsection
(c)after the date that is 6 months after the date on which such plan is submitted to Congress. Any information included in the Strategic Transformer Reserve plan, or shared in the preparation and development of such plan, the disclosure of which the agency reasonably foresees would cause harm to critical electric infrastructure, shall be deemed to be critical electric infrastructure information for purposes of section 215A(d) of the Federal Power Act.
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Sec. 1105
Strategic Transformer Reserve
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