Flexible Grid Infrastructure Act of 2017
A BILL
To move the United States toward greater energy independence and security, to increase the flexibility, efficiency, and reliability of the electric grid, to increase the competitiveness of the United States economy, to protect consumers, and to improve the energy performance of the Federal Government, and for other purposes.
Sec. 2 Definitions
Sec. 3 Analysis of distributed energy resources, the value of grid services, and advanced transmission assets
“(a) Definitions—In this section:
“(1) Commission—The term Commission means the Federal Energy Regulatory Commission.
“(2) Distributed energy resource—The term distributed energy resource has the meaning given the term in section 2 of the Flexible Grid Infrastructure Act of 2017.
“(3) Grid flexibility—The term grid flexibility means the ability of a power system—
“(A) 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
“(B) from a long-term planning and investment perspective, to respond to changes in technology, markets and policy, without incurring stranded assets.
“(b) Research, development, demonstration, and commercial application
“(1) In general—The Secretary”
“(2) Requirement—The programs under this subsection”
“(c) National assessment of the potential of distributed energy resources
“(1) Assessments
“(A) In general—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.
“(B) Requirements—In conducting an assessment under subparagraph (A), the Commission and the Secretary shall—
“(i) consider locational characteristics, such as load pockets and electric grid congestion;
“(ii) consider temporal characteristics, such as hourly and subhourly electricity generation costs and electricity network costs;
“(iii) consider the specific electric grid services identified by the study under section 3(b) of the Flexible Grid Infrastructure Act of 2017;
“(iv) consider unique State regulatory and market characteristics and regional electric grid characteristics;
“(v) incorporate a range of scenarios, including scenarios that assume—
“(I) the existence of granular retail electricity rates, including transactive energy approaches;
“(II) no granular retail electricity rates;
“(III) 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;
“(IV) 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;
“(V) various levels of renewable energy generation penetration;
“(VI) various levels of distributed energy resource penetration, including electric vehicles;
“(VII) the implementation of transactive energy approaches as a means of coordinating at scale large numbers of distributed energy resources; and
“(VIII) different deployment scenarios, such as individual technology applications, combination technology applications, and integrated control system applications;
“(vi) include—
“(I) an analysis of the use of a comprehensive suite of distributed energy resources; and
“(II) an assessment of the competitive markets for each distributed energy resource;
“(vii) consider various electric grid architecture concepts and tools, including the development of local energy networks interconnected with the electric grid;
“(viii) 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;
“(ix) assess any barriers to the ability of distributed energy resources to provide the identified electric grid services;
“(x) to the maximum extent practicable—
“(I) seek to use any relevant preexisting research and ongoing work; and
“(II) avoid duplication of effort; and
“(xi) conduct estimates for the 5-, 10-, and 15-year periods beginning on the date of enactment of the Flexible Grid Infrastructure Act of 2017.
“(2) Reports—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) a description of the details required under clauses (i) through (xi) of paragraph (1)(B);
“(B) data reported and analyzed—
“(i) on a nationwide basis;
“(ii) on a State basis, for each of the several States of the United States;
“(iii) by sector;
“(iv) by balancing authority; and
“(v) to reflect—
“(I) granular locational characteristics, such as load pockets and grid congestion;
“(II) granular temporal characteristics, such as hourly and subhourly electricity generation costs and electricity network costs; and
“(III) the specific electric grid services identified by the study under section 3(b) of the Flexible Grid Infrastructure Act of 2017;
“(C) macroeconomic data, including an analysis of any effects on job creation, economywide costs and benefits, energy productivity, retail rate impacts, and gross domestic product;
“(D) a description of the methodology used to conduct the assessment described in paragraph (1); and
“(E) policy recommendations—
“(i) to achieve the estimated potential identified by the assessment under paragraph (1)(A);
“(ii) to promote the development of competitive markets for distributed energy resources assessed under paragraph (1)(B)(vi)(II); and
“(iii) to address the barriers described in paragraph (1)(B)(ix).
“(3) Reducing duplication of effort—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.
“(d) Technical assistance—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—
“(1) use of the data and modeling tools provided under this section; and
“(2) the general planning and market analysis required for cost-effective deployment of distributed energy resources and grid flexibility assets.
“(e) Voluntary National action plan on distributed energy resources
“(1) In general—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).
“(2) Requirements—In developing the voluntary national action plan under this subsection, to the maximum extent practicable, the Secretary shall—
“(A) 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
“(B) 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.
“(3) Inclusions—The voluntary national action plan developed under this subsection shall include provisions for—
“(A) 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;
“(B) the design of a national communications program that includes broad-based customer education and support; and
“(C) 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.”