[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 2649 Introduced in Senate (IS)]
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115th CONGRESS
2d Session
S. 2649
To require the Secretary of Energy to establish a natural gas demand
response pilot program, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 11, 2018
Mr. Whitehouse introduced the following bill; which was read twice and
referred to the Committee on Energy and Natural Resources
_______________________________________________________________________
A BILL
To require the Secretary of Energy to establish a natural gas demand
response pilot program, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Energy Infrastructure Demand
Response Act of 2018''.
SEC. 2. NATURAL GAS DEMAND RESPONSE PILOT PROGRAM.
(a) Definitions.--In this section:
(1) Commission.--The term ``Commission'' means the Federal
Energy Regulatory Commission.
(2) Pilot program.--The term ``pilot program'' means the
natural gas demand response pilot program established under
subsection (b)(1).
(3) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(b) Establishment.--
(1) In general.--Not later than 150 days after the date of
enactment of this Act, the Secretary, in consultation with the
Commission, shall establish a natural gas demand response pilot
program to use the latest demand response technology from the
energy sector for natural gas--
(A) to reduce the cost of energy for consumers;
(B) to reduce market price volatility;
(C) to increase reliability of the energy system;
and
(D) to achieve reductions in air emissions and
other benefits.
(2) Eligible entities.--
(A) In general.--Except as provided in subparagraph
(B), to be eligible to participate in the pilot
program, an entity shall be--
(i) a gas utility, including a local
distribution company;
(ii) a State public utilities commission;
(iii) an electric utility, including a
local distribution company;
(iv) a municipality;
(v) a large industrial consumer, large
commercial consumer, or retail marketer of
natural gas; or
(vi) a third-party energy efficiency
program administrator.
(B) Limitations.--An entity described in any of
clauses (ii) through (v) of subparagraph (A) shall not
be eligible to participate in the pilot program if the
State law to which the entity is subject specifically
precludes the participation of the entity in a natural
gas demand response pilot program.
(3) Requirement.--The Secretary shall carry out the pilot
program under different scenarios, including in a region that
is experiencing fuel shortages or natural gas infrastructure
constraints that cause the cost of energy to increase for
consumers.
(4) Data collection.--
(A) In general.--In carrying out the pilot program,
the Secretary shall collect data, including data on,
with respect to the regions in which the pilot program
is carried out--
(i) the reduction in natural gas usage;
(ii) decreases in the frequency and
severity of natural gas infrastructure
constraints; and
(iii) changes in energy costs and
reliability.
(B) Report.--The Secretary shall submit to the
Committee on Energy and Natural Resources of the Senate
and the Committee on Energy and Commerce of the House
of Representatives a report describing--
(i) how to improve data collection;
(ii) the metrics that should be used to
quantify natural gas demand response usage; and
(iii) opportunities to improve the
measurement and verification of changes in
natural gas consumption resulting from natural
gas demand response measures, including
opportunities to collect data that could be
used to estimate the quantity of natural gas
that could be shifted through the
implementation of natural gas demand response
measures.
(c) Applications; Certification.--
(1) In general.--On establishment of the pilot program
under subsection (b)(1), the Secretary shall submit to all
relevant eligible entities notice that the Secretary is
accepting applications for the pilot program.
(2) Submission of applications.--
(A) In general.--Not later than 200 days after the
date of enactment of this Act, each eligible entity
desiring certification to participate in the pilot
program shall submit to the Secretary an application
containing such information as the Secretary may
require.
(B) Authority to require certain information.--The
Secretary may require as part of the application under
subparagraph (A) information on--
(i) the current energy prices and energy
supply issues in the region in which the
eligible entity is located; and
(ii) how implementation of the pilot
program in the region in which the eligible
entity is located can alleviate the current
energy prices and energy supply issues in the
region.
(3) Certification.--Not later than 250 days after the date
of enactment of this Act, the Secretary shall notify each
eligible entity that applied for certification under paragraph
(2)(A) of whether the eligible entity is certified to
participate in the pilot program.
(d) Termination.--The pilot program shall terminate on the date
that is 2 years after the date on which the pilot program is
established under subsection (b)(1).
(e) Authorization of Appropriations.--There is authorized to be
appropriated to carry out the pilot program $4,000,000.
SEC. 3. TECHNICAL STUDY AND REPORT.
(a) Study.--The Secretary shall conduct a study on the potential
for natural gas demand response across energy sectors and geographic
regions.
(b) Report.--Not later than 18 months after the date of enactment
of this Act, the Secretary shall submit to Congress a report on the
results of study conducted under subsection (a), including--
(1) a description and quantification of--
(A) potential natural gas and energy savings and
load shifting; and
(B) the costs and benefits associated with those
savings, including avoided energy costs, reduced market
price volatility, improved electric and gas system
reliability, deferred or avoided pipeline or utility
capital investment, and air emissions reductions;
(2) an identification of geographic areas that would
benefit most from implementing demand response measures for
natural gas infrastructure; and
(3) a description of--
(A) existing and emerging technologies that can be
used for demand response in the natural gas sector; and
(B) best practices for developing a strategy for
deployment of those technologies in the natural gas
sector.
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