H.R. 2703

119th CONGRESS 1st Session

To require the Federal Energy Regulatory Commission to establish a shared savings incentive to return a portion of the savings attributable to an investment in grid-enhancing technology to the developer of that grid-enhancing technology, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES · April 8, 2025 · Sponsor: Ms. Castor of Florida · Committee: Committee on Energy and Commerce

H.R. 2703

SEC. 1. Short title

This Act may be cited as the or the .

SEC. 2. Definitions

In this Act:
- The term Commission means the Federal Energy Regulatory Commission.
- The term grid-enhancing technology means any hardware or software that—
- The term Secretary means the Secretary of Energy.

SEC. 3. Shared savings incentive for grid-enhancing technologies

(a) Definition of developer
- In this section, the term , with respect to grid-enhancing technology, means the entity that pays to install the grid-enhancing technology. developer
(b) Establishment of shared savings incentive
- Not later than 18 months after the date of enactment of this Act, the Commission shall promulgate a final rule to implement section 219(b)(3) of the Federal Power Act () by providing a shared savings incentive that returns a portion of the savings attributable to an investment in grid-enhancing technology to the developer of that grid-enhancing technology, in accordance with this section. 16 U.S.C. 824s(b)(3)
(c) Requirements
- (1) In general
  - The Commission shall determine the percentage of savings attributable to an investment in grid-enhancing technology that can be returned to the developer of that grid-enhancing technology pursuant to the shared savings incentive established under subsection (b), subject to the conditions that the percentage—
    - is not less than 10 percent and not more than 25 percent;
    - is not determined on a per-project, per-investment, or case-by-case basis; and
    - is applied consistently to all investments in grid-enhancing technology eligible for the shared savings incentive, regardless of the type of grid-enhancing technology installed.
- (2) Time period for recovery
  - The shared savings incentive established under subsection (b) shall return a percentage, determined in accordance with paragraph (1), of the applicable savings to the developer of the applicable grid-enhancing technology over a period of 3 years.
(d) Eligibility
- Subject to subsection (e), the shared savings incentive established under subsection (b) shall apply with respect to—
  - any developer, with respect to the investment of that developer in grid-enhancing technology that is installed as described in section 2(2)(B); and
  - any grid-enhancing technology, including—
    - grid-enhancing technology that relates to new transmission facilities or transmission technologies; and
    - grid-enhancing technology that relates to existing transmission facilities or transmission technologies.
(e) Limitations
- (1) Minimum savings
  - (A) In general
    - The shared savings incentive established under subsection (b) shall apply with respect to an investment in grid-enhancing technology only if the expected savings attributable to the investment over the 3-year period described in subsection (c)(2), as determined by the Commission, are at least 4 times the cost of the investment.
  - (B) Determination
    - (i) The Commission shall determine how to quantify the cost of an investment and the expected savings attributable to an investment for purposes of subparagraph (A).
    - (ii) For purposes of subparagraph (A), the cost of an investment may include any costs associated with the permitting, installation, or purchase of the applicable grid-enhancing technology.
- (2) Already installed GETs
  - The shared savings incentive established under subsection (b) may not be applied with respect to grid-enhancing technology that is already installed as of the date of enactment of this Act.
- (3) Consumer protection
  - The Commission shall determine appropriate consumer protections for the shared savings incentive established under subsection (b).
(f) Evaluation and sunset of shared savings incentive
- (1) Evaluation
  - Not earlier than 7 years, and not later than 10 years, after the shared savings incentive is established under subsection (b), the Commission shall—
    - evaluate the necessity and efficacy of the shared savings incentive; and
    - determine whether to maintain, revise, or suspend the shared savings incentive.
- (2) Consideration of Order No. 1920
  - In conducting the evaluation under paragraph (1)(A), the Commission shall consider—
    - how the shared savings incentive aligns with the requirement that grid-enhancing technologies be considered in long-term regional transmission planning under Order No. 1920 of the Commission, entitled (89 Fed. Reg. 49280 (June 11, 2024)) (or a successor order); Building for the Future Through Electric Regional Transmission Planning and Cost Allocation
    - whether and how the shared savings incentive should be revised to further align with that requirement; and
    - whether, in light of that requirement, the shared savings incentive should be maintained or suspended.
- (3) Public comment
  - In conducting the evaluation under paragraph (1)(A), the Commission shall provide an opportunity for public comment, including by stakeholders.

SEC. 4. Congestion reporting

(a) Annual reports
- (1) In general
  - Beginning on the date that is 1 year after the effective date of the rule promulgated under subsection (b), all operators of transmission facilities or transmission technologies shall submit to the Commission annual reports containing data on the costs associated with congestion management with respect to the transmission facilities or transmission technologies, including all relevant constraints.
  - In general
- (2) Requirement
  - Each annual report submitted under paragraph (1) shall identify—
    - with respect to each reported constraint that caused more than $500,000 in associated costs—
      - (i) the cause of the constraint, including physical infrastructure and transient disruptions; and
      - (ii) the next limiting element type and its identified rating limit; and
    - each constraint that will be addressed by planned future upgrades to infrastructure and facilities.
(b) Rulemaking
- Not later than 18 months after the date of enactment of this Act, the Commission shall promulgate a final rule establishing a universal metric and protocol for the measuring and reporting of data under subsection (a).
(c) Uses of data
- (1) Analyses
  - (A) In general
    - The Commission and the Secretary shall each use the data submitted under subsection (a) to conduct analyses, as the Commission or the Secretary, as applicable, determines to be appropriate.
  - (B) Coordination
    - The Commission and the Secretary may coordinate with respect to any analyses conducted using the data submitted under subsection (a).
- (2) Map
  - The Commission and the Secretary, acting jointly, shall—
    - use the data submitted under subsection (a) to create a map of costs associated with congestion management in the transmission system; and
    - update that map not less frequently than once each year.
(d) Publication of data and map
- The Commission and the Secretary shall make the data submitted under subsection (a) and the map described in subsection (c)(2) publicly available on the websites of—
  - the Commission; and
  - the Department of Energy.

SEC. 5. Grid-enhancing technology application guide

(a) Definition of developer
- In this section, the term developer means a developer of transmission facilities or transmission technologies, including a developer of transmission facilities or transmission technologies that pays to install grid-enhancing technology with respect to those transmission facilities or transmission technologies.
- Definition of developer
(b) Establishment of application guide
- Not later than 18 months after the date of enactment of this Act, the Secretary shall establish an application guide for utilities and developers seeking to implement grid-enhancing technologies.
(c) Updates
- The guide established under subsection (b) shall be reviewed and updated annually.
(d) Technical assistance
- (1) In general
  - On request of a utility or developer using the guide established under subsection (b), the Secretary shall provide technical assistance to that utility or developer with respect to the use of grid-enhancing technologies for particular applications.
- (2) Clearinghouse
  - In carrying out paragraph (1), the Secretary shall establish a clearinghouse of previously completed grid-enhancing technology projects that the Secretary, utilities, and developers may use to identify issues and solutions relating to the use of grid-enhancing technologies for particular applications.
(e) Authorization of appropriations
- There are authorized to be appropriated to carry out this section, to remain available until expended—
  - $5,000,000 for fiscal year 2025; and
  - $1,000,000 for each of fiscal years 2026 through 2036.