This Act may be cited as the Responsive Energy Demand Unlocks Clean Energy Act or the REDUCE Act.

(a) In general Notwithstanding any prohibition established by State law or a State commission (as such term is defined in section 3(15) of the Federal Power Act (16 U.S.C. 796(15)U.S. Code — Title 16, Section 796(15)View official source on GovInfo)) with respect to who may bid into an organized wholesale electric market, each Transmission Organization shall, consistent with any applicable market rules that do not establish such prohibition, allow aggregators of retail customers to submit bids that aggregate demand flexibility of the customers of utilities that distributed more than 4 million megawatt-hours in the previous fiscal year. (b) Rulemaking Not later than 12 months after the date of enactment of this section, the Federal Energy Regulatory Commission shall promulgate a final rule pursuant to subsection (a).