(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 time-of-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;
(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
17386 of this title 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.
