Sec. 1107. State coverage and consideration of PURPA standards for electric utilities
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Section 111(d) of the Public Utility Regulatory Policies Act of 1978 ( 16 U.S.C. 2621(d) ) is amended by adding the following at the end: Each electric utility shall develop a plan to use resiliency-related technologies, upgrades, measures, and other approaches designed to improve the resilience of electric infrastructure, mitigate power outages, continue delivery of vital services, and maintain the flow of power to facilities critical to public health, safety, and welfare, to the extent practicable using the most current data, metrics, and frameworks related to current and future threats, including physical and cyber attacks, electromagnetic pulse attacks, geomagnetic disturbances, seismic events, and severe weather and other environmental stressors.
For purposes of this paragraph, examples of resiliency-related technologies, upgrades, measures, and other approaches include— hardening, or other enhanced protection, of utility poles, wiring, cabling, and other distribution components, facilities, or structures; advanced grid technologies capable of isolating or repairing problems remotely, such as advanced metering infrastructure, high-tech sensors, grid monitoring and control systems, and remote reconfiguration and redundancy systems; cybersecurity products and components; distributed generation, including back-up generation to power critical facilities and essential services, and related integration components, such as advanced inverter technology; microgrid systems, including hybrid microgrid systems for isolated communities; combined heat and power; waste heat resources; non-grid-scale energy storage technologies; wiring, cabling, and other distribution components, including submersible distribution components, and enclosures; electronically controlled reclosers and similar technologies for power restoration, including emergency mobile substations, as defined in section 1105 of the North American Energy Security and Infrastructure Act of 2016 ; advanced energy analytics technology, such as Internet-based and cloud-based computing solutions and subscription licensing models; measures that enhance resilience through planning, preparation, response, and recovery activities; operational capabilities to enhance resilience through rapid response recovery; and measures to ensure availability of key critical components through contracts, cooperative agreements, stockpiling and prepositioning, or other measures.
Each State regulatory authority (with respect to each electric utility for which it has ratemaking authority) shall consider authorizing each such electric utility to recover any capital, operating expenditure, or other costs of the electric utility related to the procurement, deployment, or use of resiliency-related technologies, including a reasonable rate of return on the capital expenditures of the electric utility for the procurement, deployment, or use of resiliency-related technologies.
Each electric utility shall develop and implement a plan for deploying advanced energy analytics technology. Each State regulatory authority (with respect to each electric utility for which it has ratemaking authority) shall consider confirming and clarifying, if necessary, that each such electric utility is authorized to recover the costs of the electric utility relating to the procurement, deployment, or use of advanced energy analytics technology, including a reasonable rate of return on all such costs incurred by the electric utility for the procurement, deployment, or use of advanced energy analytics technology, provided such technology is used by the electric utility for purposes of realizing operational efficiencies, cost savings, enhanced energy management and customer engagement, improvements in system reliability, safety, and cybersecurity, or other benefits to ratepayers.
For purposes of this paragraph, examples of advanced energy analytics technology include Internet-based and cloud-based computing solutions and subscription licensing models, including software as a service that uses cyber-physical systems to allow the correlation of data aggregated from appropriate data sources and smart grid sensor networks, employs analytics and machine learning, or employs other advanced computing solutions and models. Each electric utility shall adopt or modify policies to ensure that such electric utility incorporates reliable generation into its integrated resource plan to assure the availability of electric energy over a 10-year planning period.
For purposes of this paragraph, reliable generation means electric generation facilities with reliability attributes that include— possession of adequate fuel on-site to enable operation for an extended period of time; the operational ability to generate electric energy from more than one source; or fuel certainty, through firm contractual obligations (which may not be required to be for a period longer than one year), that ensures adequate fuel supply to enable operation, for an extended period of time, for the duration of an emergency or severe weather conditions; operational characteristics that enable the generation of electric energy for the duration of an emergency or severe weather conditions; and unless procured through other procurement mechanisms, essential reliability services, including frequency support and regulation services.
To the extent that a State regulatory authority may require or allow rates charged by any electric utility for which it has ratemaking authority to electric consumers that do not use a customer-side technology to include any cost, fee, or charge that directly or indirectly cross-subsidizes the deployment, construction, maintenance, or operation of that customer-side technology, such authority shall evaluate whether subsidizing the deployment, construction, maintenance, or operation of a customer-side technology would— result in benefits predominately enjoyed by only the users of that customer-side technology; shift costs of a customer-side technology to electricity consumers that do not use that customer-side technology, particularly where disparate economic or resource conditions exist among the electricity consumers cross-subsidizing the costumer-side technology; negatively affect resource utilization, fuel diversity, or grid security; provide any unfair competitive advantage to market the customer-side technology; and be necessary to fulfill an obligation to serve electric consumers.
Each State regulatory authority shall make available to the public the evaluation completed under subparagraph
(A)at least 90 days prior to any proceedings in which such authority considers the cross-subsidization of a customer-side technology. For purposes of this paragraph, the term customer-side technology means a device connected to the electricity distribution system— at, or on the customer side of, the meter; or that, if owned or operated by or on behalf of an electric utility, would otherwise be at, or on the customer side of, the meter. . 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: 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 it has ratemaking authority) and each nonregulated electric utility, as applicable, shall commence the consideration referred to in section 111, or set a hearing date for consideration, with respect to the standards established by paragraphs (20), (22), and
(23)of section 111(d). Not later than 2 years after the date of the enactment of this paragraph, each State regulatory authority (with respect to each electric utility for which it has ratemaking authority) and each nonregulated electric utility, as applicable, shall complete the consideration, and shall make the determination, referred to in section 111 with respect to each standard established by paragraphs (20), (22), and
(23)of section 111(d). Not later than 6 months after the date of enactment of this paragraph, each State regulatory authority (with respect to each electric utility for which it has ratemaking authority) and each nonregulated electric utility shall commence the consideration referred to in section 111, or set a hearing date for consideration, with respect to the standard established by paragraph
(21)of section 111(d). 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 it has ratemaking authority) and each nonregulated electric utility shall complete the consideration, and shall make the determination, referred to in section 111 with respect to the standard established by paragraph
(21)of section 111(d). . Section 112(c) of the Public Utility Regulatory Policies Act of 1978 ( 16 U.S.C. 2622(c) ) is amended by adding the following at the end: In the case of the standards established by paragraphs
(20)through
(23)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 such paragraphs. . Section 112 of the Public Utility Regulatory Policies Act of 1978 ( 16 U.S.C. 2622 ) is amended by adding at the end the following new subsection: Subsections
(b)and
(c)of this section shall not apply to a standard established by paragraph (20), (21), (22), or
(23)of section 111(d) in the case of any electric utility in a State if— before the date of enactment of this subsection, the State has implemented for such utility the standard concerned (or a comparable standard); the State regulatory authority for such State or relevant nonregulated electric utility has conducted a proceeding to consider implementation of the standard concerned (or a comparable standard) for such utility during the 3-year period ending on the date of enactment of this subsection; or the State legislature has voted on the implementation of the standard concerned (or a comparable standard) for such utility during the 3-year period ending on the date of enactment of this subsection. . Section 102 of the Public Utility Regulatory Policies Act of 1978 ( 16 U.S.C. 2612 ) is amended by adding at the end the following: The requirements of this title do not apply to the operations of an electric utility, or to proceedings respecting such operations, to the extent that such operations or proceedings, or any portion thereof, relate to the competitive sale of retail electric energy that is unbundled or separated from the regulated provision or sale of distribution service. .
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Sec. 1107
State coverage and consideration of PURPA standards for electric utilities
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