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Updates the electric utility reliability grant program under the Infrastructure Investment and Jobs Act to base grant awards on three standard reliability indices (SAIDI, SAIFI, CAIDI), requires applicants to calculate those indices the same way across applicants (including outages over 5 minutes and excluding Major Event Days), and directs the Secretary, States, and Indian Tribes to give extra weight to applicants or service areas with worse reliability (higher index values) over the prior five years. The bill also clarifies application rules (preventing conditioning or favoritism for multi-activity packages), extends the program authorization period to 2027–2031, and makes authorized funds available until expended.
Amend Section 40101 of the Infrastructure Investment and Jobs Act (42 U.S.C. 18711) by redesignating existing paragraphs (1)–(5) as (2)–(6) and inserting a new paragraph (1) defining CAIDI, SAIDI, and SAIFI. The definition ties the terms to the IEEE standard number 1366 (or successor) and requires that calculations include all outages greater than 5 minutes, including on Major Event Days.
Specify that 'Customer Average Interruption Duration Index (CAIDI)', 'System Average Interruption Duration Index (SAIDI)', and 'System Average Interruption Frequency Index (SAIFI)' have the meanings in the IEEE Guide for Electric Power Distribution Reliability Indices (standard numbered 1366 or successor), and that calculations must count all outages over 5 minutes including Major Event Days.
Revise subsection (c)(4) to establish a 'Priority; special consideration' provision. Under the 'Special consideration' rule, when the Secretary makes grants to eligible entities under the program, the Secretary must consider each eligible entity’s SAIDI, SAIFI, and CAIDI scores over the previous 5 years and give additional weight to entities with lower reliability (indicated by higher SAIDI, SAIFI, or CAIDI).
Amend subsection (d), paragraph (3)(B), by adding a clause requiring consideration of a State’s or Indian Tribe’s SAIDI, SAIFI, and CAIDI scores over the previous 5 years, with lower-reliability States or Indian Tribes (higher scores) receiving additional weight.
Amend subsection (d), paragraph (5), to add a 'Priority; special consideration' provision that requires a State or Indian Tribe, when making grants to eligible entities using program funds, to consider each eligible entity’s SAIDI, SAIFI, and CAIDI scores over the previous 5 years and give additional weight to eligible entities with lower reliability (higher scores).
Who is affected and how:
Electric utilities and grid operators: Directly affected because grant awards and funding priorities will be determined by utility performance on SAIDI, SAIFI, and CAIDI. Utilities with poorer reliability metrics over the prior five years stand to receive higher priority for funding; all applicants must compile consistent outage data and perform prescribed calculations.
Owners/operators of generation and distribution assets: May see increased access to grant funds if their service territories have higher interruption frequency/duration, enabling investments in modernization, resilience, or repairs.
State governments and Indian Tribes (grant administrators): Must apply the statutory weighting rules, verify applicant calculations, and administer awards consistent with the standardized metric definitions and five-year window—adding administrative tasks and oversight responsibilities.
Communities and electricity customers in areas with poor reliability: Likely to benefit from redirected grant funds because the program requires extra weighting toward lower-reliability areas, which could produce upgrades that reduce outages and improve service.
Grant applicants generally: Face some additional administrative burden to assemble five years of outage data, calculate the indices per the specified method (including handling Major Event Days), and include those calculations and supporting documentation in applications.
Overall effect: The amendment shifts grant prioritization toward service areas with demonstrated reliability problems, standardizes how reliability is measured across applicants, clarifies application treatment to reduce incentives to game project bundling, and extends the program’s authorization period. It increases technical and reporting requirements for applicants and oversight duties for administering authorities but aims to make award decisions more data-driven and targeted toward the worst-performing areas.
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Read twice and referred to the Committee on Energy and Natural Resources.
Introduced May 1, 2025 by Gary C. Peters · Last progress May 1, 2025
Read twice and referred to the Committee on Energy and Natural Resources.
Introduced in Senate