Sec. 3. Analysis of distributed energy resources, the value of grid services, and advanced transmission assets
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Section 921 of the Energy Policy Act of 2005 ( 42 U.S.C. 16211 ) is amended— by redesignating subsections
(c)and
(d)as paragraphs
(3)and (4), respectively, of subsection
(b)and indenting the paragraphs appropriately; in subsection (b)— in paragraph (1), in the matter preceding subparagraph (A), by inserting resource after carry out distributed energy ; in paragraph (2), by striking subsection and inserting section ; and in paragraphs
(3)and
(4)(as redesignated by paragraph (1)), by striking subsection
(b)each place it appears and inserting this subsection ; by redesignating subsection
(b)as subsection (h); in subsection (a), by striking the subsection designation and heading and all that follows through The Secretary in the first sentence and inserting the following: In this section: The term Commission means the Federal Energy Regulatory Commission. The term distributed energy resource has the meaning given the term in section 2 of the Flexible Grid Infrastructure Act of 2017 . The term grid flexibility means the ability of a power system— 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 from a long-term planning and investment perspective, to respond to changes in technology, markets and policy, without incurring stranded assets. The Secretary ; in subsection
(b)(as so redesignated), in the second sentence, by striking The programs and inserting the following: The programs under this subsection ; and by inserting after subsection
(b)(as so redesignated) the following: Not later than 1 year after the date of enactment of the Flexible Grid Infrastructure Act of 2017 , and not less frequently than once every 3 years thereafter, the Commission and the Secretary shall conduct a national assessment of the technical and economic potential of distributed energy resources to provide electric grid services, including services that enhance grid flexibility and the reliability, resilience, affordability, efficiency, and security of the electric grid. In conducting an assessment under subparagraph (A), the Commission and the Secretary shall— consider locational characteristics, such as load pockets and electric grid congestion; consider temporal characteristics, such as hourly and subhourly electricity generation costs and electricity network costs; consider the specific electric grid services identified by the study under section 3(b) of the Flexible Grid Infrastructure Act of 2017 ; consider unique State regulatory and market characteristics and regional electric grid characteristics; incorporate a range of scenarios, including scenarios that assume— the existence of granular retail electricity rates, including transactive energy approaches; no granular retail electricity rates; the existence of electricity market products that remunerate the electric grid services provided by distributed energy resources, incorporating the results of the most recent study under section 3(b) of the Flexible Grid Infrastructure Act of 2017 ; no electricity market products that remunerate the electric grid services provided by distributed energy resources, incorporating the results of the most recent study under section 3(b) of the Flexible Grid Infrastructure Act of 2017 ; various levels of renewable energy generation penetration; various levels of distributed energy resource penetration, including electric vehicles; the implementation of transactive energy approaches as a means of coordinating at scale large numbers of distributed energy resources; and different deployment scenarios, such as individual technology applications, combination technology applications, and integrated control system applications; include— an analysis of the use of a comprehensive suite of distributed energy resources; and an assessment of the competitive markets for each distributed energy resource; consider various electric grid architecture concepts and tools, including the development of local energy networks interconnected with the electric grid; include an analysis of the ways in which the different scenarios incorporated under clause
(v)may impact the broader energy system, such as the bulk power system, the transmission network, and natural gas infrastructure; assess any barriers to the ability of distributed energy resources to provide the identified electric grid services; to the maximum extent practicable— seek to use any relevant preexisting research and ongoing work; and avoid duplication of effort; and conduct estimates for the 5-, 10-, and 15-year periods beginning on the date of enactment of the Flexible Grid Infrastructure Act of 2017 . Not later than 18 months after the date of enactment of the Flexible Grid Infrastructure Act of 2017 , and not less frequently than once every 3 years thereafter, the Commission and the Secretary shall submit to Congress a report describing the results of the most recent assessment under paragraph
(1)that includes— a description of the details required under clauses
(i)through
(xi)of paragraph (1)(B); data reported and analyzed— on a nationwide basis; on a State basis, for each of the several States of the United States; by sector; by balancing authority; and to reflect— granular locational characteristics, such as load pockets and grid congestion; granular temporal characteristics, such as hourly and subhourly electricity generation costs and electricity network costs; and the specific electric grid services identified by the study under section 3(b) of the Flexible Grid Infrastructure Act of 2017 ; macroeconomic data, including an analysis of any effects on job creation, economywide costs and benefits, energy productivity, retail rate impacts, and gross domestic product; a description of the methodology used to conduct the assessment described in paragraph (1); and policy recommendations— to achieve the estimated potential identified by the assessment under paragraph (1)(A); to promote the development of competitive markets for distributed energy resources assessed under paragraph (1)(B)(vi)(II); and to address the barriers described in paragraph (1)(B)(ix). In conducting the assessment under paragraph (1), the Commission and the Secretary shall use, to the maximum extent practicable, data and studies in existence as of the date of the assessment in an effort to reduce the potential for duplication of effort. The Secretary shall provide technical assistance to energy distribution utilities, State energy regulators, State energy offices, third-party energy service providers, wholesale market operators, and other interested parties relating to— use of the data and modeling tools provided under this section; and the general planning and market analysis required for cost-effective deployment of distributed energy resources and grid flexibility assets. Not later than 1 year after the date of submission of the initial report required under subsection (c)(2), the Secretary, in consultation with the Commission, shall develop a voluntary national action plan to unlock the potential of distributed energy resources to provide electric grid services, which shall be based on the assessments required under subsection (c)(1). In developing the voluntary national action plan under this subsection, to the maximum extent practicable, the Secretary shall— use relevant information contained in the National Action Plan on Demand Response prepared by the Commission, Docket No. AD09–10, dated June 17, 2010; and solicit participation, and take into consideration comments, from other Federal agencies, the National Laboratories, the National Academy of Sciences, State and local governments, industry, research institutions, nonprofit organizations, consumer advocates, and other interested parties. The voluntary national action plan developed under this subsection shall include provisions for— the identification of requirements for technical assistance to States to allow States to maximize distributed energy resource potential that can be developed and deployed cost-effectively; the design of a national communications program that includes broad-based customer education and support; and the identification or development of analytical tools, information, model regulatory provisions, model contracts, and other support materials for use by customers, States, utilities, and demand response providers. . Not later than 1 year after the date of enactment of this Act, and not less frequently than once every 3 years thereafter, the Secretary and the Commission shall conduct a comprehensive study that— incorporates the assessment required under subsection (c)(1) of section 921 of the Energy Policy Act of 2005 ( 42 U.S.C. 16211 ); identifies and analyzes— all electric grid services that can be provided, including— emerging electric grid service needs; and electric grid services that can be provided by— conventional energy technologies, such as centralized thermal generation units and electricity transmission infrastructure; utility-scale renewable energy generation technologies; and emerging energy technologies, such as grid-scale energy storage and distributed energy resources; the specific electric grid services, the value of which is conditioned by locational value and temporal value; and the degree of effect of location and time on the value of the electric grid services identified under subclause (I); for each electric grid service identified under clauses
(i)and (ii), the specific technologies (including the technologies identified under clause (i)(II)) that have the capacity to provide the electric grid service, including an analysis of the extent to which a given technology can provide a given electric grid service; and the effect of integrated energy control systems (such as microgrids) on the value of grid services; quantifies the estimated value of those electric grid services, taking into consideration input from relevant industry stakeholders and unique regulatory and regional electricity system characteristics; and identifies— any barriers to wholesale market participation for distributed energy resources; and the most effective mechanisms for opening electricity markets to increased competition, consumer choice, and innovation. In conducting the study under paragraph (1), the Secretary and the Commission shall solicit relevant public comments. As soon as practicable after the date of enactment of this Act, in conducting the study under paragraph (1), the Secretary and the Commission shall engage a broad set of experts from other Federal agencies, the National Laboratories, the National Academy of Sciences, States, Tribal governments, units of local government, industry, research institutions, nonprofit organizations, consumer advocates, and other interested parties. Not later than 18 months after the date of enactment of this Act, and not less frequently than once every 3 years thereafter, the Secretary and the Commission shall submit to Congress a report describing the results of the most recent study conducted under paragraph (1). The Secretary, in consultation with the Administrator, shall expand modeling capabilities for the electric power sector to more accurately reflect the role of distributed energy resources in current and future energy consumption and in the optimization of the electric grid. Not later than 1 year after the date of submission of the initial report required under subsection (c)(2) of section 921 of the Energy Policy Act of 2005 ( 42 U.S.C. 16211 ), the Secretary, in consultation with the Administrator and the Commission, shall provide modeling tools to assist energy distribution utilities, State regulatory authorities, State energy offices, third-party energy service providers, and wholesale market operators in the planning and market analysis required for cost-effective optimization of the electric grid and deployment of distributed energy resources and grid-scale energy storage, including modeling tools for assessing individual technologies, combinations of technologies, or integrated control system applications. The modeling tools provided under paragraph
(2)shall incorporate the data and methodologies used to produce the reports required under subsection (c)(2) of section 921 of the Energy Policy Act of 2005 ( 42 U.S.C. 16211 ). The Administrator shall continue to evaluate options for expanding the capability of the National Energy Modeling Systems Electricity Market Module to accurately represent the complexity of the electric power sector, including by— incorporating hourly and subhourly electric power sector data; and including the services provided by distributed energy resources and energy storage. Not later than 1 year after the date of enactment of this Act, to enable deployment of technologies that cost-effectively increase existing transmission capacity use, the Secretary, in consultation with relevant stakeholders, shall conduct a study to identify, analyze, and develop recommendations for removing barriers to the valuation and deployment of advanced materials and technologies for new and existing transmission, such as advanced technologies that enhance reliability, security, efficiency, capacity, and affordability through visibility, analytics, and controls. As soon as practicable after the date of enactment of this Act, in conducting the study under paragraph (1), the Secretary shall engage stakeholders and experts from other Federal agencies, the National Laboratories, States, Tribal governments, units of local government, industry, research institutions, nonprofit organizations, and other interested parties. Not later than 18 months after the date of enactment of this Act, the Secretary shall submit to Congress a report describing— the recommendations developed under the study conducted under paragraph (1); a framework for future research into removing the barriers identified and analyzed under the study, based on— the recommendations developed under the study; and research on transmission capacity use, performance from synchrophasor information, advanced conductors, advanced transmission tower designs, dynamic line rating, advanced power flow control, and energy storage; and the methodology used in the study, including the methodology used to produce the recommendations developed under the study. Not later than 180 days after the date of submission of the initial report required under subsection (c)(2) of section 921 of the Energy Policy Act of 2005 ( 42 U.S.C. 16211 ), the Secretary and the Commission shall establish on the Internet a clearinghouse of nonpersonally identifiable data relating to distributed energy resources, including the data used to conduct the assessment and report under paragraphs
(1)and (2), respectively, of subsection
(c)of section 921 of the Energy Policy Act of 2005 ( 42 U.S.C. 16211 ), expressed— on a nationwide basis; on a State basis, for each of the several States of the United States; by sector; and to reflect— granular locational characteristics, such as load pockets and electric grid congestion; granular temporal characteristics, such as hourly and subhourly electricity generation costs and electricity network costs; and the specific electric grid services identified by the study under section 3(b). There is authorized to be appropriated to carry out this section (including the amendments made by this section) $50,000,000, to remain available for a period of 10 years following the fiscal year for which the amounts were appropriated.
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Sec. 3
Analysis of distributed energy resources, the value of grid services, and advanced transmission assets
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