Energy Independence and Security Act of 2007: Smart Grid provisions, Title 13

The Smart Grid provisions in the recently enacted energy bill are attached below. A link to the washingtonwatch.com website estimates the cost of the entire law (P.L.110-140, H.R.6) as being $4.28 per family: http://washingtonwatch.com/bills/show/110_PL_110-140.html. Here's the law's Smart Grid provisions:

Public Law 110-140, the “Energy Independence and Security Act of 2007”
Smart Grid provisions are in Title 13:

H. R. 6—292
TITLE XIII—SMART GRID
SEC. 1301. STATEMENT OF POLICY ON MODERNIZATION OF ELECTRICITY
GRID.
It is the policy of the United States to support the modernization
of the Nation’s electricity transmission and distribution system
(Smart Grid Title XIII begins at bottom of page 292)
H. R. 6—293
to maintain a reliable and secure electricity infrastructure that
can meet future demand growth and to achieve each of the following,
which together characterize a Smart Grid:
(1) Increased use of digital information and controls technology
to improve reliability, security, and efficiency of the
electric grid.
(2) Dynamic optimization of grid operations and resources,
with full cyber-security.
(3) Deployment and integration of distributed resources
and generation, including renewable resources.
(4) Development and incorporation of demand response,
demand-side resources, and energy-efficiency resources.
(5) Deployment of ‘‘smart’’ technologies (real-time, automated,
interactive technologies that optimize the physical operation
of appliances and consumer devices) for metering, communications
concerning grid operations and status, and distribution
automation.
(6) Integration of ‘‘smart’’ appliances and consumer devices.
(7) Deployment and integration of advanced electricity storage
and peak-shaving technologies, including plug-in electric
and hybrid electric vehicles, and thermal-storage air conditioning.
(8) Provision to consumers of timely information and control
options.
(9) Development of standards for communication and interoperability
of appliances and equipment connected to the electric
grid, including the infrastructure serving the grid.
(10) Identification and lowering of unreasonable or unnecessary
barriers to adoption of smart grid technologies, practices,
and services.
SEC. 1302. SMART GRID SYSTEM REPORT.
The Secretary, acting through the Assistant Secretary of the
Office of Electricity Delivery and Energy Reliability (referred to
in this section as the ‘‘OEDER’’) and through the Smart Grid
Task Force established in section 1303, shall, after consulting with
any interested individual or entity as appropriate, no later than
1 year after enactment, and every 2 years thereafter, report to
Congress concerning the status of smart grid deployments nationwide
and any regulatory or government barriers to continued
deployment. The report shall provide the current status and prospects
of smart grid development, including information on technology
penetration, communications network capabilities, costs, and
obstacles. It may include recommendations for State and Federal
policies or actions helpful to facilitate the transition to a smart
grid. To the extent appropriate, it should take a regional perspective.
In preparing this report, the Secretary shall solicit advice
and contributions from the Smart Grid Advisory Committee created
in section 1303; from other involved Federal agencies including
but not limited to the Federal Energy Regulatory Commission
(‘‘Commission’’), the National Institute of Standards and Technology
(‘‘Institute’’), and the Department of Homeland Security; and from
other stakeholder groups not already represented on the Smart
Grid Advisory Committee.
SEC. 1303. SMART GRID ADVISORY COMMITTEE AND SMART GRID TASK
FORCE.
(a) SMART GRID ADVISORY COMMITTEE.—
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(1) ESTABLISHMENT.—The Secretary shall establish, within
90 days of enactment of this Part, a Smart Grid Advisory
Committee (either as an independent entity or as a designated
sub-part of a larger advisory committee on electricity matters).
The Smart Grid Advisory Committee shall include eight or
more members appointed by the Secretary who have sufficient
experience and expertise to represent the full range of smart
grid technologies and services, to represent both private and
non-Federal public sector stakeholders. One member shall be
appointed by the Secretary to Chair the Smart Grid Advisory
Committee.
(2) MISSION.—The mission of the Smart Grid Advisory Committee
shall be to advise the Secretary, the Assistant Secretary,
and other relevant Federal officials concerning the development
of smart grid technologies, the progress of a national transition
to the use of smart-grid technologies and services, the evolution
of widely-accepted technical and practical standards and protocols
to allow interoperability and inter-communication among
smart-grid capable devices, and the optimum means of using
Federal incentive authority to encourage such progress.
(3) APPLICABILITY OF FEDERAL ADVISORY COMMITTEE ACT.—
The Federal Advisory Committee Act (5 U.S.C. App.) shall
apply to the Smart Grid Advisory Committee.
(b) SMART GRID TASK FORCE.—
(1) ESTABLISHMENT.—The Assistant Secretary of the Office
of Electricity Delivery and Energy Reliability shall establish,
within 90 days of enactment of this Part, a Smart Grid Task
Force composed of designated employees from the various divisions
of that office who have responsibilities related to the
transition to smart-grid technologies and practices. The Assistant
Secretary or his designee shall be identified as the Director
of the Smart Grid Task Force. The Chairman of the Federal
Energy Regulatory Commission and the Director of the National
Institute of Standards and Technology shall each designate
at least one employee to participate on the Smart Grid Task
Force. Other members may come from other agencies at the
invitation of the Assistant Secretary or the nomination of the
head of such other agency. The Smart Grid Task Force shall,
without disrupting the work of the Divisions or Offices from
which its members are drawn, provide an identifiable Federal
entity to embody the Federal role in the national transition
toward development and use of smart grid technologies.
(2) MISSION.—The mission of the Smart Grid Task Force
shall be to insure awareness, coordination and integration of
the diverse activities of the Office and elsewhere in the Federal
Government related to smart-grid technologies and practices,
including but not limited to: smart grid research and development;
development of widely accepted smart-grid standards
and protocols; the relationship of smart-grid technologies and
practices to electric utility regulation; the relationship of smartgrid
technologies and practices to infrastructure development,
system reliability and security; and the relationship of smartgrid
technologies and practices to other facets of electricity
supply, demand, transmission, distribution, and policy. The
Smart Grid Task Force shall collaborate with the Smart Grid
Advisory Committee and other Federal agencies and offices.
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The Smart Grid Task Force shall meet at the call of its Director
as necessary to accomplish its mission.
(c) AUTHORIZATION.—There are authorized to be appropriated
for the purposes of this section such sums as are necessary to
the Secretary to support the operations of the Smart Grid Advisory
Committee and Smart Grid Task Force for each of fiscal years
2008 through 2020.
SEC. 1304. SMART GRID TECHNOLOGY RESEARCH, DEVELOPMENT, AND
DEMONSTRATION.
(a) POWER GRID DIGITAL INFORMATION TECHNOLOGY.—The Secretary,
in consultation with the Federal Energy Regulatory Commission
and other appropriate agencies, electric utilities, the States,
and other stakeholders, shall carry out a program—
(1) to develop advanced techniques for measuring peak
load reductions and energy-efficiency savings from smart
metering, demand response, distributed generation, and electricity
storage systems;
(2) to investigate means for demand response, distributed
generation, and storage to provide ancillary services;
(3) to conduct research to advance the use of wide-area
measurement and control networks, including data mining, visualization,
advanced computing, and secure and dependable
communications in a highly-distributed environment;
(4) to test new reliability technologies, including those concerning
communications network capabilities, in a grid control
room environment against a representative set of local outage
and wide area blackout scenarios;
(5) to identify communications network capacity needed
to implement advanced technologies.
(6) to investigate the feasibility of a transition to timeof-
use and real-time electricity pricing;
(7) to develop algorithms for use in electric transmission
system software applications;
(8) to promote the use of underutilized electricity generation
capacity in any substitution of electricity for liquid fuels in
the transportation system of the United States; and
(9) in consultation with the Federal Energy Regulatory
Commission, to propose interconnection protocols to enable electric
utilities to access electricity stored in vehicles to help
meet peak demand loads.
(b) SMART GRID REGIONAL DEMONSTRATION INITIATIVE.—
(1) IN GENERAL.—The Secretary shall establish a smart
grid regional demonstration initiative (referred to in this subsection
as the ‘‘Initiative’’) composed of demonstration projects
specifically focused on advanced technologies for use in power
grid sensing, communications, analysis, and power flow control.
The Secretary shall seek to leverage existing smart grid deployments.
(2) GOALS.—The goals of the Initiative shall be—
(A) to demonstrate the potential benefits of concentrated
investments in advanced grid technologies on
a regional grid;
(B) to facilitate the commercial transition from the
current power transmission and distribution system technologies
to advanced technologies;
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(C) to facilitate the integration of advanced technologies
in existing electric networks to improve system
performance, power flow control, and reliability;
(D) to demonstrate protocols and standards that allow
for the measurement and validation of the energy savings
and fossil fuel emission reductions associated with the
installation and use of energy efficiency and demand
response technologies and practices; and
(E) to investigate differences in each region and regulatory
environment regarding best practices in implementing
smart grid technologies.
(3) DEMONSTRATION PROJECTS.—
(A) IN GENERAL.—In carrying out the initiative, the
Secretary shall carry out smart grid demonstration projects
in up to 5 electricity control areas, including rural areas
and at least 1 area in which the majority of generation
and transmission assets are controlled by a tax-exempt
entity.
(B) COOPERATION.—A demonstration project under
subparagraph (A) shall be carried out in cooperation with
the electric utility that owns the grid facilities in the electricity
control area in which the demonstration project is
carried out.
(C) FEDERAL SHARE OF COST OF TECHNOLOGY INVESTMENTS.—
The Secretary shall provide to an electric utility
described in subparagraph (B) financial assistance for use
in paying an amount equal to not more than 50 percent
of the cost of qualifying advanced grid technology investments
made by the electric utility to carry out a demonstration
project.
(D) INELIGIBILITY FOR GRANTS.—No person or entity
participating in any demonstration project conducted under
this subsection shall be eligible for grants under section
1306 for otherwise qualifying investments made as part
of that demonstration project.
(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated—
(1) to carry out subsection (a), such sums as are necessary
for each of fiscal years 2008 through 2012; and
(2) to carry out subsection (b), $100,000,000 for each of
fiscal years 2008 through 2012.
SEC. 1305. SMART GRID INTEROPERABILITY FRAMEWORK.
(a) INTEROPERABILITY FRAMEWORK.—The Director of the
National Institute of Standards and Technology shall have primary
responsibility to coordinate the development of a framework that
includes protocols and model standards for information management
to achieve interoperability of smart grid devices and systems.
Such protocols and standards shall further align policy, business,
and technology approaches in a manner that would enable all
electric resources, including demand-side resources, to contribute
to an efficient, reliable electricity network. In developing such protocols
and standards—
(1) the Director shall seek input and cooperation from
the Commission, OEDER and its Smart Grid Task Force, the
Smart Grid Advisory Committee, other relevant Federal and
State agencies; and
H. R. 6—297
(2) the Director shall also solicit input and cooperation
from private entities interested in such protocols and standards,
including but not limited to the Gridwise Architecture Council,
the International Electrical and Electronics Engineers, the
National Electric Reliability Organization recognized by the
Federal Energy Regulatory Commission, and National Electrical
Manufacturer’s Association.
(b) SCOPE OF FRAMEWORK.—The framework developed under
subsection (a) shall be flexible, uniform and technology neutral,
including but not limited to technologies for managing smart grid
information, and designed—
(1) to accommodate traditional, centralized generation and
transmission resources and consumer distributed resources,
including distributed generation, renewable generation, energy
storage, energy efficiency, and demand response and enabling
devices and systems;
(2) to be flexible to incorporate—
(A) regional and organizational differences; and
(B) technological innovations;
(3) to consider the use of voluntary uniform standards
for certain classes of mass-produced electric appliances and
equipment for homes and businesses that enable customers,
at their election and consistent with applicable State and Federal
laws, and are manufactured with the ability to respond
to electric grid emergencies and demand response signals by
curtailing all, or a portion of, the electrical power consumed
by the appliances or equipment in response to an emergency
or demand response signal, including through—
(A) load reduction to reduce total electrical demand;
(B) adjustment of load to provide grid ancillary services;
and
(C) in the event of a reliability crisis that threatens
an outage, short-term load shedding to help preserve the
stability of the grid; and
(4) such voluntary standards should incorporate appropriate
manufacturer lead time.
(c) TIMING OF FRAMEWORK DEVELOPMENT.—The Institute shall
begin work pursuant to this section within 60 days of enactment.
The Institute shall provide and publish an initial report on progress
toward recommended or consensus standards and protocols within
1 year after enactment, further reports at such times as developments
warrant in the judgment of the Institute, and a final report
when the Institute determines that the work is completed or that
a Federal role is no longer necessary.
(d) STANDARDS FOR INTEROPERABILITY IN FEDERAL JURISDICTION.—
At any time after the Institute’s work has led to sufficient
consensus in the Commission’s judgment, the Commission shall
institute a rulemaking proceeding to adopt such standards and
protocols as may be necessary to insure smart-grid functionality
and interoperability in interstate transmission of electric power,
and regional and wholesale electricity markets.
(e) AUTHORIZATION.—There are authorized to be appropriated
for the purposes of this section $5,000,000 to the Institute to support
the activities required by this subsection for each of fiscal years
2008 through 2012.
H. R. 6—298
SEC. 1306. FEDERAL MATCHING FUND FOR SMART GRID INVESTMENT
COSTS.
(a) MATCHING FUND.—The Secretary shall establish a Smart
Grid Investment Matching Grant Program to provide reimbursement
of one-fifth (20 percent) of qualifying Smart Grid investments.
(b) QUALIFYING INVESTMENTS.—Qualifying Smart Grid investments
may include any of the following made on or after the
date of enactment of this Act:
(1) In the case of appliances covered for purposes of establishing
energy conservation standards under part B of title
III of the Energy Policy and Conservation Act of 1975 (42
U.S.C. 6291 et seq.), the documented expenditures incurred
by a manufacturer of such appliances associated with purchasing
or designing, creating the ability to manufacture, and
manufacturing and installing for one calendar year, internal
devices that allow the appliance to engage in Smart Grid functions.
(2) In the case of specialized electricity-using equipment,
including motors and drivers, installed in industrial or commercial
applications, the documented expenditures incurred by its
owner or its manufacturer of installing devices or modifying
that equipment to engage in Smart Grid functions.
(3) In the case of transmission and distribution equipment
fitted with monitoring and communications devices to enable
smart grid functions, the documented expenditures incurred
by the electric utility to purchase and install such monitoring
and communications devices.
(4) In the case of metering devices, sensors, control devices,
and other devices integrated with and attached to an electric
utility system or retail distributor or marketer of electricity
that are capable of engaging in Smart Grid functions, the
documented expenditures incurred by the electric utility, distributor,
or marketer and its customers to purchase and install
such devices.
(5) In the case of software that enables devices or computers
to engage in Smart Grid functions, the documented purchase
costs of the software.
(6) In the case of entities that operate or coordinate operations
of regional electric grids, the documented expenditures
for purchasing and installing such equipment that allows Smart
Grid functions to operate and be combined or coordinated
among multiple electric utilities and between that region and
other regions.
(7) In the case of persons or entities other than electric
utilities owning and operating a distributed electricity generator,
the documented expenditures of enabling that generator
to be monitored, controlled, or otherwise integrated into grid
operations and electricity flows on the grid utilizing Smart
Grid functions.
(8) In the case of electric or hybrid-electric vehicles, the
documented expenses for devices that allow the vehicle to
engage in Smart Grid functions (but not the costs of electricity
storage for the vehicle).
(9) The documented expenditures related to purchasing
and implementing Smart Grid functions in such other cases
as the Secretary shall identify. In making such grants, the
Secretary shall seek to reward innovation and early adaptation,
H. R. 6—299
even if success is not complete, rather than deployment of
proven and commercially viable technologies.
(c) INVESTMENTS NOT INCLUDED.—Qualifying Smart Grid
investments do not include any of the following:
(1) Investments or expenditures for Smart Grid technologies,
devices, or equipment that are eligible for specific
tax credits or deductions under the Internal Revenue Code,
as amended.
(2) Expenditures for electricity generation, transmission,
or distribution infrastructure or equipment not directly related
to enabling Smart Grid functions.
(3) After the final date for State consideration of the Smart
Grid Information Standard under section 1307 (paragraph (17)
of section 111(d) of the Public Utility Regulatory Policies Act
of 1978), an investment that is not in compliance with such
standard.
(4) After the development and publication by the Institute
of protocols and model standards for interoperability of smart
grid devices and technologies, an investment that fails to incorporate
any of such protocols or model standards.
(5) Expenditures for physical interconnection of generators
or other devices to the grid except those that are directly
related to enabling Smart Grid functions.
(6) Expenditures for ongoing salaries, benefits, or personnel
costs not incurred in the initial installation, training, or start
up of smart grid functions.
(7) Expenditures for travel, lodging, meals or other personal
costs.
(8) Ongoing or routine operation, billing, customer relations,
security, and maintenance expenditures.
(9) Such other expenditures that the Secretary determines
not to be Qualifying Smart Grid Investments by reason of
the lack of the ability to perform Smart Grid functions or
lack of direct relationship to Smart Grid functions.
(d) SMART GRID FUNCTIONS.—The term ‘‘smart grid functions’’
means any of the following:
(1) The ability to develop, store, send and receive digital
information concerning electricity use, costs, prices, time of
use, nature of use, storage, or other information relevant to
device, grid, or utility operations, to or from or by means
of the electric utility system, through one or a combination
of devices and technologies.
(2) The ability to develop, store, send and receive digital
information concerning electricity use, costs, prices, time of
use, nature of use, storage, or other information relevant to
device, grid, or utility operations to or from a computer or
other control device.
(3) The ability to measure or monitor electricity use as
a function of time of day, power quality characteristics such
as voltage level, current, cycles per second, or source or type
of generation and to store, synthesize or report that information
by digital means.
(4) The ability to sense and localize disruptions or changes
in power flows on the grid and communicate such information
instantaneously and automatically for purposes of enabling
automatic protective responses to sustain reliability and security
of grid operations.
H. R. 6—300
(5) The ability to detect, prevent, communicate with regard
to, respond to, or recover from system security threats,
including cyber-security threats and terrorism, using digital
information, media, and devices.
(6) The ability of any appliance or machine to respond
to such signals, measurements, or communications automatically
or in a manner programmed by its owner or operator
without independent human intervention.
(7) The ability to use digital information to operate
functionalities on the electric utility grid that were previously
electro-mechanical or manual.
(8) The ability to use digital controls to manage and modify
electricity demand, enable congestion management, assist in
voltage control, provide operating reserves, and provide frequency
regulation.
(9) Such other functions as the Secretary may identify
as being necessary or useful to the operation of a Smart Grid.
(e) The Secretary shall—
(1) establish and publish in the Federal Register, within
1 year after the enactment of this Act procedures by which
applicants who have made qualifying Smart Grid investments
can seek and obtain reimbursement of one-fifth of their documented
expenditures;
(2) establish procedures to ensure that there is no duplication
or multiple reimbursement for the same investment or
costs, that the reimbursement goes to the party making the
actual expenditures for Qualifying Smart Grid Investments,
and that the grants made have significant effect in encouraging
and facilitating the development of a smart grid;
(3) maintain public records of reimbursements made, recipients,
and qualifying Smart Grid investments which have
received reimbursements;
(4) establish procedures to provide, in cases deemed by
the Secretary to be warranted, advance payment of moneys
up to the full amount of the projected eventual reimbursement,
to creditworthy applicants whose ability to make Qualifying
Smart Grid Investments may be hindered by lack of initial
capital, in lieu of any later reimbursement for which that
applicant qualifies, and subject to full return of the advance
payment in the event that the Qualifying Smart Grid investment
is not made; and
(5) have and exercise the discretion to deny grants for
investments that do not qualify in the reasonable judgment
of the Secretary.
(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated to the Secretary such sums as are necessary
for the administration of this section and the grants to be made
pursuant to this section for fiscal years 2008 through 2012.
SEC. 1307. STATE CONSIDERATION OF SMART GRID.
(a) Section 111(d) of the Public Utility Regulatory Policies Act
of 1978 (16 U.S.C. 2621(d)) is amended by adding at the end
the following:
‘‘(16) CONSIDERATION OF SMART GRID INVESTMENTS.—
‘‘(A) IN GENERAL.—Each State shall consider requiring
that, prior to undertaking investments in nonadvanced grid
technologies, an electric utility of the State demonstrate
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to the State that the electric utility considered an investment
in a qualified smart grid system based on appropriate
factors, including—
‘‘(i) total costs;
‘‘(ii) cost-effectiveness;
‘‘(iii) improved reliability;
‘‘(iv) security;
‘‘(v) system performance; and
‘‘(vi) societal benefit.
‘‘(B) RATE RECOVERY.—Each State shall consider
authorizing each electric utility of the State to recover
from ratepayers any capital, operating expenditure, or
other costs of the electric utility relating to the deployment
of a qualified smart grid system, including a reasonable
rate of return on the capital expenditures of the electric
utility for the deployment of the qualified smart grid
system.
‘‘(C) OBSOLETE EQUIPMENT.—Each State shall consider
authorizing any electric utility or other party of the State
to deploy a qualified smart grid system to recover in a
timely manner the remaining book-value costs of any equipment
rendered obsolete by the deployment of the qualified
smart grid system, based on the remaining depreciable
life of the obsolete equipment.
‘‘(17) SMART GRID INFORMATION.—
‘‘(A) STANDARD.—All electricity purchasers shall be provided
direct access, in written or electronic machine-readable
form as appropriate, to information from their electricity
provider as provided in subparagraph (B).
‘‘(B) INFORMATION.—Information provided under this
section, to the extent practicable, shall include:
‘‘(i) PRICES.—Purchasers and other interested persons
shall be provided with information on—
‘‘(I) time-based electricity prices in the wholesale
electricity market; and
‘‘(II) time-based electricity retail prices or rates
that are available to the purchasers.
‘‘(ii) USAGE.—Purchasers shall be provided with
the number of electricity units, expressed in kwh, purchased
by them.
‘‘(iii) INTERVALS AND PROJECTIONS.—Updates of
information on prices and usage shall be offered on
not less than a daily basis, shall include hourly price
and use information, where available, and shall include
a day-ahead projection of such price information to
the extent available.
‘‘(iv) SOURCES.—Purchasers and other interested
persons shall be provided annually with written
information on the sources of the power provided by
the utility, to the extent it can be determined, by
type of generation, including greenhouse gas emissions
associated with each type of generation, for intervals
during which such information is available on a costeffective
basis.
‘‘(C) ACCESS.—Purchasers shall be able to access their
own information at any time through the Internet and
on other means of communication elected by that utility
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for Smart Grid applications. Other interested persons shall
be able to access information not specific to any purchaser
through the Internet. Information specific to any purchaser
shall be provided solely to that purchaser.’’.
(b) COMPLIANCE.—
(1) TIME LIMITATIONS.—Section 112(b) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is amended
by adding the following at the end thereof:
‘‘(6)(A) Not later than 1 year after the enactment of this
paragraph, each State regulatory authority (with respect to
each electric utility for which it has ratemaking authority)
and each nonregulated utility shall commence the consideration
referred to in section 111, or set a hearing date for consideration,
with respect to the standards established by paragraphs
(17) through (18) of section 111(d).
‘‘(B) 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, shall complete the consideration,
and shall make the determination, referred to in section
111 with respect to each standard established by paragraphs
(17) through (18) of section 111(d).’’.
(2) FAILURE TO COMPLY.—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 (16)
through (19) 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.’’.
(3) PRIOR STATE ACTIONS.—Section 112(d) of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(d))
is amended by inserting ‘‘and paragraphs (17) through (18)’’
before ‘‘of section 111(d)’’.
SEC. 1308. STUDY OF THE EFFECT OF PRIVATE WIRE LAWS ON THE
DEVELOPMENT OF COMBINED HEAT AND POWER FACILITIES.
(a) STUDY.—
(1) IN GENERAL.—The Secretary, in consultation with the
States and other appropriate entities, shall conduct a study
of the laws (including regulations) affecting the siting of privately
owned electric distribution wires on and across public
rights-of-way.
(2) REQUIREMENTS.—The study under paragraph (1) shall
include—
(A) an evaluation of—
(i) the purposes of the laws; and
(ii) the effect the laws have on the development
of combined heat and power facilities;
(B) a determination of whether a change in the laws
would have any operating, reliability, cost, or other impacts
on electric utilities and the customers of the electric utilities;
and
(C) an assessment of—
(i) whether privately owned electric distribution
wires would result in duplicative facilities; and
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(ii) whether duplicative facilities are necessary or
desirable.
(b) REPORT.—Not later than 1 year after the date of enactment
of this Act, the Secretary shall submit to Congress a report that
describes the results of the study conducted under subsection (a).
SEC. 1309. DOE STUDY OF SECURITY ATTRIBUTES OF SMART GRID
SYSTEMS.
(a) DOE STUDY.—The Secretary shall, within 18 months after
the date of enactment of this Act, submit a report to Congress
that provides a quantitative assessment and determination of the
existing and potential impacts of the deployment of Smart Grid
systems on improving the security of the Nation’s electricity infrastructure
and operating capability. The report shall include but
not be limited to specific recommendations on each of the following:
(1) How smart grid systems can help in making the Nation’s
electricity system less vulnerable to disruptions due to intentional
acts against the system.
(2) How smart grid systems can help in restoring the
integrity of the Nation’s electricity system subsequent to disruptions.
(3) How smart grid systems can facilitate nationwide, interoperable
emergency communications and control of the Nation’s
electricity system during times of localized, regional, or nationwide
emergency.
(4) What risks must be taken into account that smart
grid systems may, if not carefully created and managed, create
vulnerability to security threats of any sort, and how such
risks may be mitigated.
(b) CONSULTATION.—The Secretary shall consult with other Federal
agencies in the development of the report under this section,
including but not limited to the Secretary of Homeland Security,
the Federal Energy Regulatory Commission, and the Electric Reliability
Organization certified by the Commission under section
215(c) of the Federal Power Act (16 U.S.C. 824o) as added by
section 1211 of the Energy Policy Act of 2005 (Public Law 109–
58; 119 Stat. 941).

California fires, powerlines partly to blame: could a smart grid help?

An article from the Washington Post begs the question of how a smart grid could help prevent wildfires in California. It seems to me that a a smart grid could help detect downed powerlines that could start such fires. A smart grid that touches all of the elements of the grid (transformers, capacitor banks, etc.) and provides real-time warnings of a downed powerline would also provide added benefits of supporting distributed generation, demand response, etc.? Here's an excerpt from the fire-powerline story from the Washington Post:

Probe of Calif. Fires Lays Most Blame on Power LinesDowning of Poles by Santa Ana Winds Renews Debate Over Costly Option of Burying Electrical Cables
By Karl VickWashington Post Staff WriterMonday, December 24, 2007; A03
LOS ANGELES -- When the firestorms of October were finally extinguished and hundreds of thousands of Southern Californians returned to their homes, officials set out to understand how 21 fires erupted in the span of just three days.
* * *
The leading cause of ignition appeared to be power lines.
As many as eight fires were blamed on sparks from lines blown down by the high, hot Santa Ana winds that sweep across Southern California each autumn. The Witch fire, which burned 200,000 acres and killed two people, was ignited by a power line, as was the smaller Guejito blaze with which it merged.
The findings have renewed calls for improving the safety of the power lines, either by reinforcing poles and line fasteners or, in some cases, placing cables underground in rural areas that experience the worst winds.
"We're certainly all looking at undergrounding in fire-prone rural areas -- even though that hasn't been the norm -- given the number of fires that have broken out over the last several years," said Christy Heiser, a spokeswoman for San Diego Gas & Electric. She noted that 60 percent of the utility's lines are already underground, twice the national average.
The problem is expense. Burying power lines can cost $1 million a mile. It also makes any repair a matter of digging.
"People don't understand the consequences of it," said James A. Kelly, vice president for engineering and technical services at Southern California Edison, which is less eager to bury the lines. "It's like using a 20-pound sledgehammer to kill an ant."
Edison is experimenting with less costly options, including poles made from composite materials designed to withstand winds that "are sufficient in some instances to snap wooden poles," Kelly said.
Indeed, the Santa Ana winds remain the primary reason for October's fires. The gusty, dry gales exceeded 100 mph, and blew steadily for so long that they drove fires over terrain that had been thoroughly burned four years earlier.
***
In testimony to a Senate panel last month, [a witness urged] ... exploring the burial of power lines in the corridors that Santa Ana winds sweep through.
"Power companies aren't eager to do it because it's expensive," he said. "But given the cost of these fires, I can't believe it's not cost-effective."
And after all that, Keeley said, the public must understand that fires in Southern California are like earthquakes: inevitable.
Link to full article: http://www.washingtonpost.com/wp-dyn/content/article/2007/12/23/AR2007122302283.html?hpid=sec-nation

Here's a recent article about Smart Grid.

Meter, Meter on the Wall: Giving & Taking from a Smarter Grid
triplepundit.com
December 7, 2007
Use of, and plans to use, electricity net metering are spreading around the country driven by a pressing need to modernize and upgrade the nation’s electricity grid in the face of forecast increases in demand and an equally urgent drive to reduce carbon dioxide and greenhouse gas emissions. Moreover, net metering is a key element of efforts to build a Smart Electrical Grid, which in and of itself may be one of the largest generators of power and cost savings, as well as catalysts for increasing use of renewable energy sources.
More than 35 states currently offer net metering programs. In addition to enabling electricity suppliers to better manage and increase the efficiency of power generation and distribution, net metering is considered to be among the best ways of providing incentives for consumers to invest in renewable energy generation.
Able to turn backwards, net meters enable customers to offset their electricity consumption over a billing period by putting surplus electricity they don’t use or generate themselves back into the grid. In return customers receive retail prices for their electricity surplus. In contrast, programs that entail installation of a second meter to measure electricity that flows back to the provider typically credit customers’ accounts at a below market rate, according to the Dept. of Energy Office of Energy Efficiency and Renewable Energy’s Green Power Network.
Advanced Meter Infrastructure & Home Area Networks
Demand for advanced electricity meters with embedded wireless sensor networks (WSNs) will grow from a few thousand units in 2004 to 1.5 million this year, according to an ON World report based on a survey of nearly 100 utilities.
ON World researchers found that 3/4 of the utilities surveyed are using or planning to use Automated Meter Reading (AMR) within the next 18 months. Nearly half of deployments involve advanced metering infrastructure (AMI) with two-way communications. Some 46% are planning a demand response program with dynamic pricing options.
"While most of the revenues at this time are for smart meters, Home Area Network (HAN) applications and devices that interoperate with these advanced meters have enormous developer potential," Mareca Hatler, ON World's Director of Research stated in a media release.
The HAN market may reach 276 million devices in 2012, according to forecasts for two-way AMI enabled electric meters and the average number of HAN devices to be deployed per household, according to ON World’s research.
This is bringing together utilities and wireless sensor network technology developers together in an effort to develop an industry-wide standard that ensures interoperability and backwards compatibility. “Utilities are working together with vendors such as Itron, Cellnet+Hunt, Comverge and Tendril Networks to create a ZigBee AMI profile that will leverage several years of development on the recently completed ZigBee Home Automation Profile. The ZigBee AMI profile is expected to be completed in early 2008,” according to ON World.
Building a Smart GridInstituting net metering nationwide is an integral element of plans to re-build and modernize the country’s aging electricity grid. “Each year 131 million electricity customers (nearly every household and business) pay about $247 billion in electric revenues, at an average price of about 7 cents per kilowatt-hour. Demand for electricity is projected to grow 40 percent by 2030, which in turn will likely increase prices,” Jay Birnbaum, senior vice-president and general counsel of the Current Group LLC testified in June before the Senate Committee on Commerce, Science and Transportation’s Subcommittee on Science, Technology and Innovation.
“That is why Smart Grid is crucial – it offers a cost-effective way to increase the amount of electricity available through greater efficiency and network reliability. In other words, a megawatt saved is even better than a megawatt generated because it costs less and because such efficiency-captured electricity is as at least as clean as solar, wind or other renewable energy resources.”Power outages and “blink of the eye” power quality disruptions cost U.S. businesses $100 billion per year or more, according to the Electric Power Research Institute (EPRI). “Smart Grid can immediately increase the efficiency of businesses nationwide by providing utilities with real-time actionable intelligence about their networks that can be used to prevent such costly disruptions,” Birnbaum maintained.
He noted that 40% of energy consumed in the U.S. is used to produce electricity, the quality and importance of which is being made increasingly apparent in an increasingly integrated global economic system driven by high and rising energy and environmental costs.
Building a Smart Grid can reduce U.S. electricity consumption up to 10% by 2020 and hence lead to a 25% reduction in CO2 emissions, according to Birnbaum. “It should be considered a renewable energy resource in its own right – after all, the cleanest power of all is power you do not have to use due to captured efficiencies…Increased efficiency of existing distribution and consumption equates to making additional power available at lower costs and with less environmental impact. Such efficiencies reduce the need for constructing new generation plants and associated transmission facilities. Smart Grids can provide the communications and monitoring necessary to manage and optimize a portfolio of distributed and renewable energy resources.”
http://www.triplepundit.com/pages/meter-meter-on-the-wall-giving-002761.php