42 USC 18712 - Electric grid reliability and resilience research, development, and demonstration

Collapse to view only § 18712. Electric grid reliability and resilience research, development, and demonstration

§ 18711. Preventing outages and enhancing the resilience of the electric grid
§ 18712. Electric grid reliability and resilience research, development, and demonstration
§ 18713. Transmission facilitation program

§ 18711. Preventing outages and enhancing the resilience of the electric grid

(a) DefinitionsIn this section:

(1) Disruptive event

(2) Eligible entityThe term “eligible entity” means—

(A) an electric grid operator;

(B) an electricity storage operator;

(D) a transmission owner or operator;

(E) a distribution provider;

(F) a fuel supplier; and

(G) any other relevant entity, as determined by the Secretary.

(3) Natural disaster

(4) Power line

(5) Program

(b) Establishment of program

(1) In generalThe Secretary may make a grant under the program to an eligible entity to carry out activities that—

(A) are supplemental to existing hardening efforts of the eligible entity planned for any given year; and

(B)

(i) reduce the risk of any power lines owned or operated by the eligible entity causing a wildfire; or

(ii) increase the ability of the eligible entity to reduce the likelihood and consequences of disruptive events.

(2) Application

(A) In general

(B) Requirement

(3) Limitation

(4) Priority

(5) Small utilities set aside

(d) Grants to States and Indian Tribes

(1) In general

(2) Annual application

(A) In general

(B) Plan requiredA plan prepared by a State or Indian Tribe for purposes of an application described in subparagraph (A) shall—

(i) describe the criteria and methods that will be used by the State or Indian Tribe to award grants to eligible entities;

(ii) be adopted after notice and a public hearing; and

(iii) describe the proposed funding distributions and recipients of the grants to be provided by the State or Indian Tribe.

(3) Distribution of funds

(A) In general

(B) RequirementThe formula referred to in subparagraph (A) shall be based on the following factors:

(i) The total population of the State or Indian Tribe.

(ii)(I) The total area of the State or the land of the Indian Tribe; or(II) the areas in the State or on the land of the Indian Tribe with a low ratio of electricity customers per mileage of power lines.

(iii) The probability of disruptive events in the State or on the land of the Indian Tribe during the previous 10 years, as determined based on the number of federally declared disasters or emergencies in the State or on the land of the Indian Tribe, as applicable, including—(I) disasters for which Fire Management Assistance Grants are provided under section 5187 of this title;(II) major disasters declared by the President under section 5170 of this title;(III) emergencies declared by the President under section 5191 of this title; and(IV) any other federally declared disaster or emergency in the State or on the land of the Indian Tribe.

(iv) The number and severity, measured by population and economic impacts, of disruptive events experienced by the State or Indian Tribe on or after January 1, 2011.

(v) The total amount, on a per capita basis, of public and private expenditures during the previous 10 years to carry out mitigation efforts to reduce the likelihood and consequences of disruptive events in the State or on the land of the Indian Tribe, with States or Indian Tribes with higher per capita expenditures receiving additional weight or consideration as compared to States or Indian Tribes with lower per capita expenditures.

(C) Annual update of data used in distribution of fundsBeginning 1 year after November 15, 2021, the Secretary shall annually update—

(i) all data relating to the factors described in subparagraph (B); and

(ii) all other data used in distributing grants to States and Indian Tribes under this subsection.

(4) Oversight

(5) Priority

(6) Small utilities set aside

(7) Technical assistance and administrative expensesOf the amounts made available to a State or Indian Tribe under the program each fiscal year, the State or Indian Tribe may use not more than 5 percent for—

(A) providing technical assistance under subsection (g)(1)(A); and

(B) administrative expenses associated with the program.

(8) Matching requirement

(e) Use of grants

(1) In generalA grant awarded to an eligible entity under the program may be used for activities, technologies, equipment, and hardening measures to reduce the likelihood and consequences of disruptive events, including—

(A) weatherization technologies and equipment;

(B) fire-resistant technologies and fire prevention systems;

(D) the undergrounding of electrical equipment;

(E) utility pole management;

(F) the relocation of power lines or the reconductoring of power lines with low-sag, advanced conductors;

(G) vegetation and fuel-load management;

(H) the use or construction of distributed energy resources for enhancing system adaptive capacity during disruptive events, including—

(i) microgrids; and

(ii) battery-storage subcomponents;

(I) adaptive protection technologies;

(J) advanced modeling technologies;

(K) hardening of power lines, facilities, substations, of 1

1 So in original.

other systems; and

(L) the replacement of old overhead conductors and underground cables.

(2) Prohibitions and limitations

(A) In generalA grant awarded to an eligible entity under the program may not be used for—

(i) construction of a new—(I) electric generating facility; or(II) large-scale battery-storage facility that is not used for enhancing system adaptive capacity during disruptive events; or

(ii) cybersecurity.

(B) Certain investments eligible for recovery

(i) In general

(ii) Savings provision

(f) Distribution of fundingOf the amounts made available to carry out the program for a fiscal year, the Secretary shall ensure that—

(1) 50 percent is used to award grants to eligible entities under subsection (c); and

(2) 50 percent is used to make grants to States and Indian Tribes under subsection (d).

(g) Technical and other assistance

(1) In generalThe Secretary, States, and Indian Tribes may—

(A) provide technical assistance and facilitate the distribution and sharing of information to reduce the likelihood and consequences of disruptive events; and

(B) promulgate consumer-facing information and resources to inform the public of best practices and resources relating to reducing the likelihood and consequences of disruptive events.

(2) Use of funds by the SecretaryOf the amounts made available to the Secretary to carry out the program each fiscal year, the Secretary may use not more than 5 percent for—

(A) providing technical assistance under paragraph (1)(A); and

(B) administrative expenses associated with the program.

(h) Matching requirement

(1) In general

(2) Exception for small utilities

(i) Biennial report to Congress

(1) In general

(2) RequirementsThe report under paragraph (1) shall include information and data on—

(A) the costs of the projects for which grants are awarded to eligible entities;

(B) the types of activities, technologies, equipment, and hardening measures funded by those grants; and

(j) Authorization of appropriations

(Pub. L. 117–58, div. D, title I, § 40101, Nov. 15, 2021, 135 Stat. 923.)

§ 18712. Electric grid reliability and resilience research, development, and demonstration

(a) Definition of Federal financial assistance

(b) Energy infrastructure Federal financial assistance program

(1) DefinitionsIn this subsection:

(A) Eligible entityThe term “eligible entity” means each of—

(i) a State;

(ii) a combination of 2 or more States;

(iii) an Indian Tribe;

(iv) a unit of local government; and

(v) a public utility commission.

(B) Program

(2) Establishment

(3) PurposeThe purpose of the program is to coordinate and collaborate with electric sector owners and operators—

(A) to demonstrate innovative approaches to transmission, storage, and distribution infrastructure to harden and enhance resilience and reliability; and

(B) to demonstrate new approaches to enhance regional grid resilience, implemented through States by public and rural electric cooperative entities on a cost-shared basis.

(4) ApplicationsTo be eligible to receive Federal financial assistance under the program, an eligible entity shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require, including a description of—

(A) how the Federal financial assistance would be used;

(B) the expected beneficiaries, and

(C) in the case of a proposal from an eligible entity described in paragraph (1)(A)(ii), how the proposal would improve regional energy infrastructure.

(5) Selection

(6) Cost share

(7) Authorization of appropriations

(1) Definition of rural or remote area

(2) Required activitiesThe Secretary shall carry out activities to improve in rural or remote areas of the United States—

(A) the resilience, safety, reliability, and availability of energy; and

(B) environmental protection from adverse impacts of energy generation.

(3) Federal financial assistanceThe Secretary, in consultation with the Secretary of the Interior, may provide Federal financial assistance to rural or remote areas for the purpose of—

(A) overall cost-effectiveness of energy generation, transmission, or distribution systems;

(B) siting or upgrading transmission and distribution lines;

(D) providing or modernizing electric generation facilities;

(E) developing microgrids; and

(F) increasing energy efficiency.

(4) Authorization of appropriations

(d) Energy infrastructure resilience framework

(1) In general

(2) Assessment and report

(A) AssessmentThe Secretary shall carry out an assessment of—

(i) with respect to the inventory of high-voltage recovery transformers, new transformers, and other equipment proposed to be developed and stored under paragraph (1)—(I) the policies, technical specifications, and logistical and program structures necessary to mitigate the risks associated with the loss of high-voltage recovery transformers;(II) the technical specifications for high-voltage recovery transformers;(III) where inventory of high-voltage recovery transformers should be stored;(IV) the quantity of high-voltage recovery transformers necessary for the inventory;(V) how the stored inventory of high-voltage recovery transformers would be secured and maintained;(VI) how the high-voltage recovery transformers may be transported;(VII) opportunities for developing new flexible advanced transformer designs; and(VIII) whether new Federal regulations or cost-sharing requirements are necessary to carry out the storage of high-voltage recovery transformers; and

(ii) any efforts carried out by industry as of the date of the assessment—(I) to share transformers and equipment;(II) to develop plans for next generation transformers; and(III) to plan for surge and long-term manufacturing of, and long-term standardization of, transformer designs.

(B) Protection of information

(Pub. L. 117–58, div. D, title I, § 40103, Nov. 15, 2021, 135 Stat. 928.)

§ 18713. Transmission facilitation program

(a) DefinitionsIn this section:

(1) Capacity contract

(2) Eligible electric power transmission lineThe term “eligible electric power transmission line” means an electric power transmission line that is capable of transmitting not less than—

(A) 1,000 megawatts; or

(B) in the case of a project that consists of upgrading an existing transmission line or constructing a new transmission line in an existing transmission, transportation, or telecommunications infrastructure corridor, 500 megawatts.

(3) Eligible entity

(4) Eligible projectThe term “eligible project” means a project (including any related facility)—

(A) to construct a new or replace an existing eligible electric power transmission line;

(B) to increase the transmission capacity of an existing eligible electric power transmission line; or

(C) to connect an isolated microgrid to an existing transmission, transportation, or telecommunications infrastructure corridor located in Alaska, Hawaii, or a territory of the United States.

(5) Fund

(6) Program

(7) Related facility

(A) In general

(B) ExclusionsThe term “related facility” does not include—

(i) facilities used primarily to generate electric energy; or

(ii) facilities used in the local distribution of electric energy.

(b) Establishment

(1) In general

(2) Procedures

(d) Funding

(1) Transmission Facilitation FundThere is established in the Treasury a fund, to be known as the “Transmission Facilitation Fund”, consisting of—

(A) all amounts received by the Secretary, including receipts, collections, and recoveries, from any source relating to expenses incurred by the Secretary in carrying out the program, including—

(i) costs recovered pursuant to paragraph (4);

(ii) amounts received as repayment of a loan issued to an eligible entity under subsection (e)(1)(B); and

(iii) amounts contributed by eligible entities for the purpose of carrying out an eligible project with respect to which the Secretary is participating with the eligible entity under subsection (e)(1)(C);

(B) all amounts borrowed from the Secretary of the Treasury by the Secretary for the program under paragraph (2); and

(2) Borrowing authority

(3) Authorization of appropriations

(4) Cost recovery

(A) In generalExcept as provided in subparagraph (B), the cost of any facilitation activities carried out by the Secretary under subsection (e)(1) shall be collected—

(i) from eligible entities receiving the benefit of the applicable facilitation activity, on a schedule to be determined by the Secretary; or

(ii) with respect to a contracted transmission capacity under subsection (e)(1)(A) through rates charged for the use of the contracted transmission capacity.

(B) Forgiveness of balances

(i) Termination or end of useful life

(ii) Unconstructed projects

(e) Facilitation of eligible projects

(1) In generalTo facilitate eligible projects, the Secretary may—

(A) subject to subsections (f) and (i), enter into a capacity contract with respect to an eligible project prior to the date on which the eligible project is completed;

(B) subject to subsections (g) and (i), issue a loan to an eligible entity for the costs of carrying out an eligible project; or

(C) subject to subsections (h) and (i), participate with an eligible entity in designing, developing, constructing, operating, maintaining, or owning an eligible project.

(2) RequirementThe provision and receipt of assistance for an eligible project under paragraph (1) shall be subject to such terms and conditions as the Secretary determines to be appropriate—

(A) to ensure the success of the program; and

(B) to protect the interests of the United States.

(f) Capacity contracts

(1) Purpose

(2) PaymentThe amount paid by the Secretary to an eligible entity under a capacity contract for the right to the use of the transmission capacity of an eligible project shall be—

(A) the fair market value for the use of the transmission capacity, as determined by the Secretary, taking into account, as the Secretary determines to be necessary, the comparable value for the use of the transmission capacity of other electric power transmission lines; and

(B) on a schedule and in such divided amounts, which may be a single amount, that the Secretary determines are likely to facilitate construction of the eligible project, taking into account standard industry practice and factors specific to each applicant, including, as applicable—

(i) potential review by a State regulatory entity of the revenue requirement of an electric utility; and

(ii) the financial model of an independent transmission developer.

(3) LimitationsA capacity contract shall—

(A) be for a term of not more than 40 years; and

(B) be for not more than 50 percent of the total proposed transmission capacity of the applicable eligible project.

(4) Transmission marketing

(A) In general

(B) Return

(D) Requirement

(5) Termination

(A) In general

(B) Transfer

(D) Requirement

(6) Other Federal capacity positions

(7) Form of financial assistance

(8) Transmission planning region consultation

(g) Interest rate on loans

(h) Public-private partnershipsThe Secretary may participate with an eligible entity with respect to an eligible project under subsection (e)(1)(C) if the Secretary determines that the eligible project—

(1)

(A) is located in an area designated as a national interest electric transmission corridor pursuant to section 216(a) of the Federal Power Act [16 U.S.C. 824p(a)]; or

(B) is necessary to accommodate an actual or projected increase in demand for electric transmission capacity across more than 1 State or transmission planning region;

(2) is consistent with efficient and reliable operation of the transmission grid;

(3) will be operated in conformance with prudent utility practices;

(4) will be operated in conformance with the rules of—

(A) a Transmission Organization (as defined in section 3 of the Federal Power Act (16 U.S.C. 796)), if applicable; or

(B) a regional reliability organization; and

(5) is not duplicative of the functions of existing transmission facilities that are the subject of ongoing siting and related permitting proceedings.

(i) CertificationPrior to taking action to facilitate an eligible project under subparagraph (A), (B), or (C) of subsection (e)(1), the Secretary shall certify that—

(1) the eligible project is in the public interest;

(2) the eligible project is unlikely to be constructed in as timely a manner or with as much transmission capacity in the absence of facilitation under this section, including with respect to an eligible project for which a Federal investment tax credit may be allowed; and

(3) it is reasonable to expect that the proceeds from the eligible project will be adequate, as applicable—

(A) to recover the cost of a capacity contract entered into under subsection (e)(1)(A);

(B) to repay a loan provided under subsection (e)(1)(B); or

(j) Other authorities, limitations, and effects

(1) Participation

(2) Operations and maintenance

(3) Federal facilitiesFor purposes of cost recovery under subsection (d)(4) and repayment of a loan issued under subsection (e)(1)(B), each eligible project facilitated by the Secretary under this section shall be treated as separate and distinct from—

(A) each other eligible project; and

(B) all other Federal power and transmission facilities.

(4) Effect on ancillary services authority and obligations

(5) Effect on Western Area Power Administration projectsNothing in this section affects—

(A) any pending project application before the Western Area Power Administration under section 16421a of this title; or

(B) any agreement entered into by the Western Power Administration under that section.

(6) Third-party finance

(7) Limitation on loansAn eligible project may not be the subject of both—

(A) a loan under subsection (e)(1)(B); and

(B) a Federal loan under section 16421a of this title.

(8) ConsiderationsIn evaluating eligible projects for possible facilitation under this section, the Secretary shall prioritize projects that, to the maximum extent practicable—

(A) use technology that enhances the capacity, efficiency, resiliency, or reliability of an electric power transmission system, including—

(i) reconductoring of an existing electric power transmission line with advanced conductors; and

(ii) hardware or software that enables dynamic line ratings, advanced power flow control, or grid topology optimization;

(B) will improve the resiliency and reliability of an electric power transmission system;

(D) contribute to national or subnational goals to lower electricity sector greenhouse gas emissions.

(Pub. L. 117–58, div. D, title I, § 40106, Nov. 15, 2021, 135 Stat. 934.)