Sec. 5. Distribution system operator pilot program
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In this section: The term distribution system operator means an entity, independent of the normal operations of an electric utility, that— plans for, integrates, and manages distributed energy resources within the service territory of an electric utility; implements reliability standards for distributed energy resources within the service territory of an electric utility; and aggregates the economic attributes of distributed energy resources within the service territory of an electric utility for sale into a wholesale energy or other market.
The term electric utility has the meaning given the term in section 3 of the Public Utility Regulatory Policies Act of 1978 ( 16 U.S.C. 2602 ). 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 ). The term pilot program means the pilot program established under subsection (b). The term Regional Transmission Organization has the meaning given the term in section 3 of the Federal Power Act ( 16 U.S.C. 796 ).
The term Secretary means the Secretary of Energy. Not later than 1 year after the date of enactment of this Act, the Secretary shall establish a pilot program within the National Laboratories— to research, develop, and test technology platforms and operational procedures for a distribution system operator; to evaluate best practices in designating the roles and responsibilities of a distribution system operator relative to other entities, including the relevant electric utility and Regional Transmission Organization; and to simulate the functions of a distribution system operator in a range of grid conditions.
The Secretary shall establish a working group to participate in the design and operation of the pilot program. The working group established under paragraph
(1)shall be composed of members, to be appointed by the Secretary, at least one of which shall represent each of the following: The Department of Energy. The National Laboratories. An electric utility. The North American Electric Reliability Corporation. A Regional Transmission Organization. A State or regional energy agency. A national research body or institution of higher education. Not later than 2 years after the date on which funds are first made available to the pilot program, the Secretary shall submit to Congress a report that— describes the results of the pilot program; and provides an analysis of the feasibility of implementing a distribution system operator. There is authorized to be appropriated to carry out the pilot program $20,000,000, to remain available until expended.
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