Consideration of interconnection of microgrids and the benefits of investments in resilience

(a) In general 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: (22) Interconnection of microgrids (A) Definition of microgrid In this paragraph, the term microgrid means a group of interconnected loads and distributed energy resources (which may include energy generation resources, energy storage, energy efficiency resources, district heating and cooling, combined heat and power, demand response and load control tools, and other management, forecasting, and analytical tools) within clearly defined electrical boundaries that— (i) acts as a single controllable entity with respect to the electric grid; and (ii) has the ability— (I) to connect to the electric grid; (II) to disconnect from the electric grid; or (III) to run in parallel to the electric grid, whether connected to or disconnected from the electric grid. (B) Interconnection Each State shall consider establishing a regulatory framework for the interconnection of microgrids, which may include revising existing interconnection requirements for distributed energy resources to better account for islanding, resource availability and scheduling, resource protection, and controls. (23) Quantifying benefits of investments in resilience (A) In general Each State shall consider establishing— (i) standards for evaluating and quantifying the benefits of investments in the resilience of the electric grid, including— (I) the events, circumstances, and essential services for which resilience is required; (II) the level and duration of service required to achieve resilience; and (III) consideration of— (aa) whether critical customers have on-site or behind-the-meter generation capacity; and (bb) whether information relating to that capacity has been shared with the applicable utility and relevant regional entities, as necessary; and (ii) a valuation methodology to quantify the value of measures to improve the resilience of the electric grid in order to determine whether such investments are justifiable, including a mechanism to determine— (I) the distribution of resilience benefits to ratepayers; and (II) the scope over which resilience benefits accrue. (B) Defense installations Military installations (as defined in section 2801(c) of title 10, United States Code) and other defense installations and infrastructure operated by the Department of Defense shall not be subject to any standards or methodologies established pursuant to subparagraph (A).. (b) Compliance (1) Time limitation Section 112(b) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is amended— (A) by indenting paragraphs (4) through (8), and any subparagraphs within those paragraphs, appropriately; and (B) by adding at the end the following: (9) (A) Not later than 1 year after the date of enactment of this paragraph, each State regulatory authority (with respect to each electric utility for which the State has ratemaking authority) and each nonregulated electric utility shall commence consideration under section 111, or set a hearing date for consideration, with respect to the standards established by paragraphs (22) and (23) of section 111(d). (B) Not later than 2 years after the date of enactment of this paragraph, each State regulatory authority (with respect to each electric utility for which the State has ratemaking authority), and each nonregulated electric utility shall complete the consideration and make the determination under section 111 with respect to the standards established by paragraphs (22) and (23) 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 at the end the following: In the case of the standards established by paragraphs (22) and (23) 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 those paragraphs.. (3) Prior state actions (A) In general Section 112 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622) is amended— (i) in each of subsections (d) through (h), by redesignating paragraphs (1) through (3) as subparagraphs (A) through (C), respectively, and indenting appropriately; (ii) in subsections (e) through (h), by striking enactment of this subsection and inserting enactment of that paragraph; (iii) in subsection (d), in the matter preceding subparagraph (A) (as so redesignated), by striking Subsections and inserting the following: (1) In general Subsections; (iv) in subsection (e), by striking the subsection designation and heading and all that follows through Subsections in the matter preceding subparagraph (A) (as so redesignated) and inserting the following: (2) Time-based metering and communications Subsections; (v) in subsection (f), by striking the subsection designation and heading and all that follows through Subsections in the matter preceding subparagraph (A) (as so redesignated) and inserting the following: (3) Interconnection Subsections; (vi) in subsection (g), by striking the subsection designation and heading and all that follows through Subsections in the matter preceding subparagraph (A) (as so redesignated) and inserting the following: (4) Demand-response practices Subsections; (vii) in subsection (h), by striking the subsection designation and heading and all that follows through Subsections in the matter preceding subparagraph (A) (as so redesignated) and inserting the following: (5) Electric vehicle charging programs Subsections; and (viii) in subsection (d) (as so amended) by adding at the end the following: (6) Interconnection of microgrids; benefits of investments in resilience Subsections (b) and (c) shall not apply to the standard established by paragraph (22) or (23), as applicable, of section 111(d) in the case of any electric utility in a State if, before the date of enactment of that paragraph— (A) the State has implemented for the electric utility the applicable standard (or a comparable standard); (B) the State regulatory authority for the State or the relevant nonregulated electric utility has conducted a proceeding to consider implementation of the applicable standard (or a comparable standard) for the electric utility; or (C) the State legislature has voted on the implementation of the applicable standard (or a comparable standard) for the electric utility during the 3-year period ending on that date of enactment.. (B) Cross reference Section 124 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2634) is amended by adding at the end the following: In the case of the standards established by paragraphs (22) and (23) of section 111(d), the reference contained in this section to the date of enactment of this Act shall be deemed to be a reference to the date of enactment of those paragraphs..