II 119THCONGRESS 1 STSESSION S. 1327 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 SENATE OF THE UNITED STATES APRIL8, 2025 Mr. W ELCH(for himself and Mr. KING) introduced the following bill; which was read twice and referred to the Committee on Energy and Natural Resources A BILL 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-en- hancing technology, and for other purposes. Be it enacted by the Senate and House of Representa-1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Advancing Grid-En-4 hancing Technologies Act of 2025’’ or the ‘‘Advancing 5 GETs Act of 2025’’. 6 VerDate Sep 11 2014 22:23 Apr 16, 2025 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1327.IS S1327 ssavage on LAPJG3WLY3PROD with BILLS 2 •S 1327 IS SEC. 2. DEFINITIONS. 1 In this Act: 2 (1) C OMMISSION.—The term ‘‘Commission’’ 3 means the Federal Energy Regulatory Commission. 4 (2) G RID-ENHANCING TECHNOLOGY .—The term 5 ‘‘grid-enhancing technology’’ means any hardware or 6 software that— 7 (A) increases the capacity, efficiency, reli-8 ability, resilience, or safety of transmission fa-9 cilities and transmission technologies; and 10 (B) is installed in addition to transmission 11 facilities and transmission technologies— 12 (i) to give operators of the trans-13 mission facilities and transmission tech-14 nologies more situational awareness and 15 control over the electric grid; 16 (ii) to make the transmission facilities 17 and transmission technologies more effi-18 cient; or 19 (iii) to increase the transfer capacity 20 of the transmission facilities and trans-21 mission technologies. 22 (3) S ECRETARY.—The term ‘‘Secretary’’ means 23 the Secretary of Energy. 24 VerDate Sep 11 2014 22:23 Apr 16, 2025 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1327.IS S1327 ssavage on LAPJG3WLY3PROD with BILLS 3 •S 1327 IS SEC. 3. SHARED SAVINGS INCENTIVE FOR GRID-ENHANC-1 ING TECHNOLOGIES. 2 (a) D EFINITION OFDEVELOPER.—In this section, 3 the term ‘‘developer’’, with respect to grid-enhancing tech-4 nology, means the entity that pays to install the grid-en-5 hancing technology. 6 (b) E STABLISHMENT OF SHAREDSAVINGSINCEN-7 TIVE.—Not later than 18 months after the date of enact-8 ment of this Act, the Commission shall promulgate a final 9 rule to implement section 219(b)(3) of the Federal Power 10 Act (16 U.S.C. 824s(b)(3)) by providing a shared savings 11 incentive that returns a portion of the savings attributable 12 to an investment in grid-enhancing technology to the de-13 veloper of that grid-enhancing technology, in accordance 14 with this section. 15 (c) R EQUIREMENTS.— 16 (1) I N GENERAL.—The Commission shall deter-17 mine the percentage of savings attributable to an in-18 vestment in grid-enhancing technology that can be 19 returned to the developer of that grid-enhancing 20 technology pursuant to the shared savings incentive 21 established under subsection (b), subject to the con-22 ditions that the percentage— 23 (A) is not less than 10 percent and not 24 more than 25 percent; 25 VerDate Sep 11 2014 22:23 Apr 16, 2025 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1327.IS S1327 ssavage on LAPJG3WLY3PROD with BILLS 4 •S 1327 IS (B) is not determined on a per-project, 1 per-investment, or case-by-case basis; and 2 (C) is applied consistently to all invest-3 ments in grid-enhancing technology eligible for 4 the shared savings incentive, regardless of the 5 type of grid-enhancing technology installed. 6 (2) T IME PERIOD FOR RECOVERY .—The shared 7 savings incentive established under subsection (b) 8 shall return a percentage, determined in accordance 9 with paragraph (1), of the applicable savings to the 10 developer of the applicable grid-enhancing tech-11 nology over a period of 3 years. 12 (d) E LIGIBILITY.—Subject to subsection (e), the 13 shared savings incentive established under subsection (b) 14 shall apply with respect to— 15 (1) any developer, with respect to the invest-16 ment of that developer in grid-enhancing technology 17 that is installed as described in section 2(2)(B); and 18 (2) any grid-enhancing technology, including— 19 (A) grid-enhancing technology that relates 20 to new transmission facilities or transmission 21 technologies; and 22 (B) grid-enhancing technology that relates 23 to existing transmission facilities or trans-24 mission technologies. 25 VerDate Sep 11 2014 22:23 Apr 16, 2025 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S1327.IS S1327 ssavage on LAPJG3WLY3PROD with BILLS 5 •S 1327 IS (e) LIMITATIONS.— 1 (1) M INIMUM SAVINGS.— 2 (A) I N GENERAL.—The shared savings in-3 centive established under subsection (b) shall 4 apply with respect to an investment in grid-en-5 hancing technology only if the expected savings 6 attributable to the investment over the 3-year 7 period described in subsection (c)(2), as deter-8 mined by the Commission, are at least 4 times 9 the cost of the investment. 10 (B) D ETERMINATION.— 11 (i) I N GENERAL.—The Commission 12 shall determine how to quantify the cost of 13 an investment and the expected savings at-14 tributable to an investment for purposes of 15 subparagraph (A). 16 (ii) C OSTS.—For purposes of subpara-17 graph (A), the cost of an investment may 18 include any costs associated with the per-19 mitting, installation, or purchase of the ap-20 plicable grid-enhancing technology. 21 (2) A LREADY INSTALLED GETS .—The shared 22 savings incentive established under subsection (b) 23 may not be applied with respect to grid-enhancing 24 VerDate Sep 11 2014 22:23 Apr 16, 2025 Jkt 059200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S1327.IS S1327 ssavage on LAPJG3WLY3PROD with BILLS 6 •S 1327 IS technology that is already installed as of the date of 1 enactment of this Act. 2 (3) C ONSUMER PROTECTION .—The Commission 3 shall determine appropriate consumer protections for 4 the shared savings incentive established under sub-5 section (b). 6 (f) E VALUATION AND SUNSET OFSHAREDSAVINGS 7 I NCENTIVE.— 8 (1) E VALUATION.—Not earlier than 7 years, 9 and not later than 10 years, after the shared savings 10 incentive is established under subsection (b), the 11 Commission shall— 12 (A) evaluate the necessity and efficacy of 13 the shared savings incentive; and 14 (B) determine whether to maintain, revise, 15 or suspend the shared savings incentive. 16 (2) C ONSIDERATION OF ORDER NO . 1920.—In 17 conducting the evaluation under paragraph (1)(A), 18 the Commission shall consider— 19 (A) how the shared savings incentive aligns 20 with the requirement that grid-enhancing tech-21 nologies be considered in long-term regional 22 transmission planning under Order No. 1920 of 23 the Commission, entitled ‘‘Building for the Fu-24 ture Through Electric Regional Transmission 25 VerDate Sep 11 2014 22:23 Apr 16, 2025 Jkt 059200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S1327.IS S1327 ssavage on LAPJG3WLY3PROD with BILLS 7 •S 1327 IS Planning and Cost Allocation’’ (89 Fed. Reg. 1 49280 (June 11, 2024)) (or a successor order); 2 (B) whether and how the shared savings 3 incentive should be revised to further align with 4 that requirement; and 5 (C) whether, in light of that requirement, 6 the shared savings incentive should be main-7 tained or suspended. 8 (3) P UBLIC COMMENT.—In conducting the eval-9 uation under paragraph (1)(A), the Commission 10 shall provide an opportunity for public comment, in-11 cluding by stakeholders. 12 SEC. 4. CONGESTION REPORTING. 13 (a) A NNUALREPORTS.— 14 (1) I N GENERAL.—Beginning on the date that 15 is 1 year after the effective date of the rule promul-16 gated under subsection (b), all operators of trans-17 mission facilities or transmission technologies shall 18 submit to the Commission annual reports containing 19 data on the costs associated with congestion man-20 agement with respect to the transmission facilities or 21 transmission technologies, including all relevant con-22 straints. 23 (2) R EQUIREMENT.—Each annual report sub-24 mitted under paragraph (1) shall identify— 25 VerDate Sep 11 2014 22:23 Apr 16, 2025 Jkt 059200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S1327.IS S1327 ssavage on LAPJG3WLY3PROD with BILLS 8 •S 1327 IS (A) with respect to each reported con-1 straint that caused more than $500,000 in as-2 sociated costs— 3 (i) the cause of the constraint, includ-4 ing physical infrastructure and transient 5 disruptions; and 6 (ii) the next limiting element type and 7 its identified rating limit; and 8 (B) each constraint that will be addressed 9 by planned future upgrades to infrastructure 10 and facilities. 11 (b) R ULEMAKING.—Not later than 18 months after 12 the date of enactment of this Act, the Commission shall 13 promulgate a final rule establishing a universal metric and 14 protocol for the measuring and reporting of data under 15 subsection (a). 16 (c) U SES OFDATA.— 17 (1) A NALYSES.— 18 (A) I N GENERAL.—The Commission and 19 the Secretary shall each use the data submitted 20 under subsection (a) to conduct analyses, as the 21 Commission or the Secretary, as applicable, de-22 termines to be appropriate. 23 (B) C OORDINATION.—The Commission 24 and the Secretary may coordinate with respect 25 VerDate Sep 11 2014 22:23 Apr 16, 2025 Jkt 059200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S1327.IS S1327 ssavage on LAPJG3WLY3PROD with BILLS 9 •S 1327 IS to any analyses conducted using the data sub-1 mitted under subsection (a). 2 (2) M AP.—The Commission and the Secretary, 3 acting jointly, shall— 4 (A) use the data submitted under sub-5 section (a) to create a map of costs associated 6 with congestion management in the trans-7 mission system; and 8 (B) update that map not less frequently 9 than once each year. 10 (d) P UBLICATION OFDATA ANDMAP.—The Com-11 mission and the Secretary shall make the data submitted 12 under subsection (a) and the map described in subsection 13 (c)(2) publicly available on the websites of— 14 (1) the Commission; and 15 (2) the Department of Energy. 16 SEC. 5. GRID-ENHANCING TECHNOLOGY APPLICATION 17 GUIDE. 18 (a) D EFINITION OFDEVELOPER.—In this section, 19 the term ‘‘developer’’ means a developer of transmission 20 facilities or transmission technologies, including a devel-21 oper of transmission facilities or transmission technologies 22 that pays to install grid-enhancing technology with respect 23 to those transmission facilities or transmission tech-24 nologies. 25 VerDate Sep 11 2014 22:23 Apr 16, 2025 Jkt 059200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S1327.IS S1327 ssavage on LAPJG3WLY3PROD with BILLS 10 •S 1327 IS (b) ESTABLISHMENT OF APPLICATIONGUIDE.—Not 1 later than 18 months after the date of enactment of this 2 Act, the Secretary shall establish an application guide for 3 utilities and developers seeking to implement grid-enhanc-4 ing technologies. 5 (c) U PDATES.—The guide established under sub-6 section (b) shall be reviewed and updated annually. 7 (d) T ECHNICALASSISTANCE.— 8 (1) I N GENERAL.—On request of a utility or de-9 veloper using the guide established under subsection 10 (b), the Secretary shall provide technical assistance 11 to that utility or developer with respect to the use 12 of grid-enhancing technologies for particular applica-13 tions. 14 (2) C LEARINGHOUSE.—In carrying out para-15 graph (1), the Secretary shall establish a clearing-16 house of previously completed grid-enhancing tech-17 nology projects that the Secretary, utilities, and de-18 velopers may use to identify issues and solutions re-19 lating to the use of grid-enhancing technologies for 20 particular applications. 21 (e) A UTHORIZATION OF APPROPRIATIONS.—There 22 are authorized to be appropriated to carry out this section, 23 to remain available until expended— 24 (1) $5,000,000 for fiscal year 2025; and 25 VerDate Sep 11 2014 22:23 Apr 16, 2025 Jkt 059200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S1327.IS S1327 ssavage on LAPJG3WLY3PROD with BILLS 11 •S 1327 IS (2) $1,000,000 for each of fiscal years 2026 1 through 2036. 2 Æ VerDate Sep 11 2014 22:23 Apr 16, 2025 Jkt 059200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6301 E:\BILLS\S1327.IS S1327 ssavage on LAPJG3WLY3PROD with BILLS