Bill Summary
The **Advancing Grid-Enhancing Technologies Act of 2025** aims to promote the development and implementation of grid-enhancing technologies (GETs) by establishing a shared savings incentive program through the Federal Energy Regulatory Commission (FERC). This legislation requires FERC to create a framework that allows developers of GETs to receive a portion of the savings resulting from their investments in these technologies.
Key components of the act include:
1. **Definition of GETs**: These technologies enhance the capacity, efficiency, reliability, and safety of electrical transmission systems.
2. **Shared Savings Incentive**: Developers can receive 10% to 25% of the savings achieved from their GET investments over three years, provided the expected savings are at least four times the investment cost.
3. **Eligibility and Limitations**: The incentive applies to new installations and excludes technologies already in use. Consumer protections are also required to be established.
4. **Congestion Reporting**: Transmission operators must report annual data on congestion costs to enhance system management and planning.
5. **Application Guide**: A guide will be created to assist utilities and developers in implementing GETs, along with ongoing technical support.
The act is designed to drive innovation in the energy sector by incentivizing technologies that improve the electrical grid, ultimately enhancing energy efficiency and reliability for consumers.
Possible Impacts
The "Advancing Grid-Enhancing Technologies Act of 2025" could affect people in several ways:
1. **Financial Incentives for Developers**: The legislation establishes a shared savings incentive that allows developers of grid-enhancing technology to receive a portion of the savings generated from their investments. This could lead to increased investments in innovative technologies that improve the electricity grid, potentially leading to lower energy costs for consumers as more efficient technologies are adopted.
2. **Improved Energy Reliability and Resilience**: By encouraging the implementation of grid-enhancing technologies, the legislation may help enhance the reliability and resilience of the electrical grid. This could lead to fewer power outages and disruptions, benefiting households and businesses by ensuring a more stable energy supply, especially during extreme weather events or peak demand periods.
3. **Increased Transparency and Data Availability**: The requirement for operators of transmission facilities to report data on congestion management and associated costs will create more transparency in the energy market. This data can be used by consumers, policymakers, and researchers to better understand energy usage patterns, identify areas for improvement, and make informed decisions regarding energy consumption, potentially leading to more competitive pricing and improved service delivery.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2703 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 2703
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
Ms. Castor of Florida (for herself, Mr. Tonko, Mr. Peters, Mr. Casten,
Ms. Schrier, Mr. Mullin, and Mr. Huffman) introduced the following
bill; which was referred to the Committee on Energy and Commerce
_______________________________________________________________________
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-enhancing technology, 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 ``Advancing Grid-Enhancing
Technologies Act of 2025'' or the ``Advancing GETs Act of 2025''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Commission.--The term ``Commission'' means the Federal
Energy Regulatory Commission.
(2) Grid-enhancing technology.--The term ``grid-enhancing
technology'' means any hardware or software that--
(A) increases the capacity, efficiency,
reliability, resilience, or safety of transmission
facilities and transmission technologies; and
(B) is installed in addition to transmission
facilities and transmission technologies--
(i) to give operators of the transmission
facilities and transmission technologies more
situational awareness and control over the
electric grid;
(ii) to make the transmission facilities
and transmission technologies more efficient;
or
(iii) to increase the transfer capacity of
the transmission facilities and transmission
technologies.
(3) Secretary.--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
``developer'', with respect to grid-enhancing technology, means the
entity that pays to install the grid-enhancing technology.
(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 (16 U.S.C. 824s(b)(3)) 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.
(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--
(A) is not less than 10 percent and not more than
25 percent;
(B) is not determined on a per-project, per-
investment, or case-by-case basis; and
(C) 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--
(1) 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
(2) any grid-enhancing technology, including--
(A) grid-enhancing technology that relates to new
transmission facilities or transmission technologies;
and
(B) 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) In general.--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) Costs.--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--
(A) evaluate the necessity and efficacy of the
shared savings incentive; and
(B) 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--
(A) 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
``Building for the Future Through Electric Regional
Transmission Planning and Cost Allocation'' (89 Fed.
Reg. 49280 (June 11, 2024)) (or a successor order);
(B) whether and how the shared savings incentive
should be revised to further align with that
requirement; and
(C) 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.
(2) Requirement.--Each annual report submitted under
paragraph (1) shall identify--
(A) 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
(B) 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--
(A) use the data submitted under subsection (a) to
create a map of costs associated with congestion
management in the transmission system; and
(B) 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--
(1) the Commission; and
(2) 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.
(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--
(1) $5,000,000 for fiscal year 2025; and
(2) $1,000,000 for each of fiscal years 2026 through 2036.
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