Bill Text: NJ A913 | 2010-2011 | Regular Session | Introduced
Bill Title: Establishes a Smart Grid Pilot Program and Smart Grid Technology Research Center at Rutgers The State University; appropriates funding for grants.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Introduced - Dead) 2010-01-12 - Introduced, Referred to Assembly Telecommunications and Utilities Committee [A913 Detail]
Download: New_Jersey-2010-A913-Introduced.html
STATE OF NEW JERSEY
214th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2010 SESSION
Sponsored by:
Assemblyman UPENDRA J. CHIVUKULA
District 17 (Middlesex and Somerset)
SYNOPSIS
Establishes a Smart Grid Pilot Program and Smart Grid Technology Research Center at Rutgers, The State University; appropriates funding for grants.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act establishing a Smart Grid Pilot Program and Smart Grid Technology Research Center, and making an appropriation.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. This act shall be known and may be cited as the "Smart Grid Pilot Program Act."
2. The Legislature finds and declares that:
a. It is the public policy of this State to improve the existing electricity transmission and distribution system in order to provide better service to customers and enhance performance of the electric power system by employing more technologically advanced "smart grid" equipment;
b. The use of "smart grid" equipment in other states has improved their electric power system's performance and efficiency, reduced the time required to detect and repair equipment failures, and improved overall system reliability indices;
c. Other benefits of deploying "smart grid" technologies have included energy load reduction, greater availability of programmable home energy saving devices, in-home energy display capability, and more efficient charging, net-metering and other grid integration functions for small commercial and residential solar installations; and
d. Before deploying new energy technologies on wide-spread basis, it is prudent to establish a "smart grid" pilot program by means of which the impact of these changes can be studied and quantified on a smaller scale before system-wide changes are implemented.
3. As used in this act, "smart grid system" means a two-way communications system and associated equipment and software, including equipment installed on the electric distribution system and on the premises of retail electric customers, that utilizes the electric distribution system to provide real-time monitoring, diagnostic, and control information and services that improve the efficiency and reliability of the distribution and use of electricity, including automated load control or demand response, power loss detection and prevention, remote outage and restoration detection, continuous reporting of utility and customer demand, dynamic pricing of electrical service, performance monitoring of electric distribution network equipment, and predictive maintenance and diagnostics. An electric utility may treat an electric meter installed to enable the electric distribution system to function properly as being part of the smart grid system if the meter has the capability of measuring and recording electricity usage data on a time-differentiated basis of at least 15-minute intervals for at least four separate time segments per day.
4. a. Notwithstanding any law, rule, regulation or order to the contrary, there is hereby established a Smart Grid Pilot Program, hereinafter the "pilot program," and a Smart Grid Technology Research Center, hereinafter the "research center," at Rutgers, the State University, in New Brunswick, New Jersey.
b. The research center shall be administered by a director appointed, not later than the 30th day after the effective date of this act, by the President of the Board of Public Utilities, in consultation with the New Jersey Commission on Science and Technology established pursuant to P.L.1985, c.102 (C.52:9X-1 et seq.).
c. The purpose and objectives of the pilot program and the research center shall be to attract additional federal funding to New Jersey for renewable energy research by providing a functional "smart grid" to serve as a platform for research on, and development and commercial deployment of, smart appliances, plug-in hybrid electric vehicles, electric distribution system automation equipment and other similar equipment or technology to improve the efficiency, reliability, and security of the electric power grid.
5. Under the pilot program, the research center shall evaluate whether and to what extent the deployment of "smart grid" technology can yield such benefits as:
a. improvement in the reliability and efficiency of the electric distribution grid through the prevention of power outages and the more rapid detection of those outages that occur;
b. earlier detection and quicker repair of underground cable faults;
c. earlier detection and quicker repair of distribution grid equipment failures;
d. improved reliability indices related to the distribution grid;
e. real-time load reduction through the installation of programmable communicated thermostats that provide air conditioning load control, with minimal customer inconvenience;
f. real-time load reduction through the installation of direct load control switches that control devices such as water heaters, pool pumps, and air conditioning compressors;
g. wider use of home area network-enabled devices such as in-home energy display; and
h. enhanced performance of efficient charging, net-metering and other grid integration functions for small commercial and residential solar energy systems, plug-in hybrid electric vehicles, and other renewable energy resources distributed throughout the electric distribution grid.
6. a. The research center shall install a "smart grid" system and conduct the pilot program within an area consisting of the Rutgers University Electrical and Computer Engineering building and other facilities located at the New Brunswick campus of Rutgers, The State University and areas adjacent to the campus such that at least 50,000 residences are included.
b. Such a "smart grid" system shall be installed and the results of such installation shall begin to be assessed in accordance with the provisions of section 5 of this act beginning on or before December 15, 2008, and the initial phase of such assessment shall thereafter be completed no later than July 31, 2009. The Board of Public Utilities is authorized to direct, by order or regulation, such action as may be determined necessary by the board to carry out the provisions of this section and other provisions in this act.
7. a. The director of the research center shall issue an appropriate notice, and provide for the dissemination of information on the deployment of "smart grid" technology, to students and electric customers who will be affected by the pilot program; and to managers of the specific facilities at Rutgers, The State University, residents, businesses and governmental offices in the neighboring geographic areas in which the pilot program shall operate, concerning the extent and type of "smart grid" technology to be installed and operated through the pilot program.
b. The director shall also be responsible for the coordination of the deployment of the "smart grid" system with the electric public utility serving Rutgers, The State University and companies or entities that provide "smart grid" system equipment and services, as well as the coordination of the deployment of "smart grid" technology such as renewable energy resources, smart appliances and plug-in electric hybrid vehicles.
8. An electric public utility serving Rutgers, The State University and assisting the research center with the deployment of "smart grid" technology under the pilot program may recover any costs that the electric public utility incurs from the deployment of smart grid technology from any or all of the following sources:
a. a surcharge on the services provided to Rutgers, The State University;
b. a surcharge on the services provided to each customer and placed on the periodic bill that the customer receives from the electric utility;
c. proceeds of any regional greenhouse gas emissions allowance trading program in which the State is participating; and
d. the rate base as authorized by the Board of Public Utilities.
9. a. As soon as federal funding is made available, the director of the research center, together with at least one electric public utility and a company that provides "smart grid" system equipment and services, to be chosen by the director, shall submit a joint application to the U.S. Department of Energy for the Smart Grid Funding Programs authorized in the federal "Energy Independence and Security Act of 2007," (Pub.L. 110-140)(42 U.S.C. s.17001 et al.).
b. Any funding received from the federal Smart Grid Funding Programs shall be used by the research center, the electric public utility and the company providing "smart grid" system equipment and services that submit the application in accordance with this section, to offset the costs associated with the implementation of the pilot program established in section 4 of this act. In order to offset costs associated with the pilot program, the director may use funds that are unencumbered and available from the sale of carbon allowances to electricity generators under the Regional Greenhouse Gas Initiative, and any other funds from any other source that may be available for the benefit of the pilot program.
10. There is appropriated from the "Global Warming Solutions Fund" established pursuant to section 6 of P.L.2007, c.340 (C.26:2C-50) to Rutgers, The State University such amounts, within the limit of funds that may be available, for grants to the research center, no less than three-quarters of which shall be used to deploy the "smart grid" system that will serve as a test bed for the pilot program and to fund the "smart grid" technology research conducted at the research center.
11. Upon a demonstration of the cost effectiveness of "smart grid" systems by the pilot program or by other efforts to implement such systems, including efforts in other states or internationally, the Board of Public Utilities shall order the deployment of "smart grid" systems throughout New Jersey. The board is also authorized to remove regulatory barriers to "smart grid" system deployment and to create by order or regulation such incentives as may be necessary to accelerate such deployment.
12. This act shall take effect on the 30th day following enactment, but the New Jersey Commission on Science and Technology and the Board of Public Utilities may take such anticipatory administrative action in advance as shall be necessary for the implementation of this act.
STATEMENT
The bill establishes a Smart Grid Pilot Program (the "pilot program"), and a Smart Grid Technology Research Center, (the "research center") at the New Brunswick campus of Rutgers, The State University.
The bill provides that the research center shall be administered by a director appointed, within 30 days after the effective date of the bill, by the President of the Board of Public Utilities, in consultation with the New Jersey Commission on Science and Technology.
The purpose and objectives of the pilot program and the research center shall be to attract additional federal funding to New Jersey for renewable energy research by providing a functional "smart grid" to serve as a platform for research, development and commercial deployment of smart appliances, plug-in hybrid electric vehicles, electric distribution network automation equipment and technology to improve the efficiency, reliability, and security of the electric power grid.
The bill directs the research center to evaluate whether and to what extent the deployment of "smart grid" technology can yield such benefits as improved reliability and efficiency of the electric distribution grid, earlier detection and quicker repair of distribution grid equipment failures; improved reliability indices; and real-time load reduction through the installation of programmable thermostats and other energy saving devices for homes and businesses.
The bill directs the research center to install a "smart grid" system and conduct the pilot program at the Electrical and Computer Engineering building and facilities located at the New Brunswick campus of Rutgers University as well as in areas adjacent to the campus to include at least 50,000 residences.
Such a "smart grid" system shall be installed and the results of such installation shall begin to be assessed beginning on or before December 15, 2008, and the initial phase of such assessment shall thereafter be completed no later than July 31, 2009. The Board of Public Utilities is authorized to direct, by order or regulation, such action as shall be required to carry out the provisions of the bill.
The bill provides that the director of the research center shall send appropriate notice to persons affected by the pilot program and shall coordinate the deployment of the "smart grid" system with the electric public utility serving Rutgers and the companies or entities that provide "smart grid" system equipment and services.
The bill also provides that an electric public utility serving Rutgers University and assisting the research center with the deployment of "smart grid" technology under the pilot program may recover any costs that the electric public utility incurs in the course of deployment through surcharges on customers, from any proceeds of the regional greenhouse gas emissions allowance trading program, or from the rate base as authorized by the Board of Public Utilities.
The bill requires the director, together with at least one electric public utility and one "smart grid" company to be chosen by the director, to submit a joint application for federal funding authorized in the federal "Energy Independence and Security Act of 2007" (Pub.L. 110-140) to offset the costs associated with the implementation of the pilot program.
The bill also provides for an appropriation from the "Global Warming Solutions Fund" established pursuant to section 6 of P.L.2007, c.340 (C.26:2C-50) to Rutgers, The State University of such amounts, within the limit of funds as may be available, for grants to the research center, no less than three-quarters of which shall be used to deploy the "smart grid" system that will serve as a test bed for the pilot program and to fund the "smart grid" technology research conducted at the research center.
