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Smart Grid Legislation

2011 Smart Grid Legislation

States with 2011 Legislation

NCSL Contact

Kristy Hartman

Updated July 2011

Smart grid refers to a combination of technologies that can be utilized in energy transmission, distribution and end use, that enables a more reliable and efficient delivery of electricity.

Smart meters, which are a component of a smart grid system, can provide timely and accurate power consumption information, supplying customers and utilities with valuable information about electricity demand and allowing for time-of-day pricing. These technologies also help utilities identify outages and faulty equipment more quickly, improve emergency responses or prevent some outages altogether.

In 2011, at least 13 states considered 23 smart grid or smart meter policies. Trends include smart grid deployment incentives, customer savings and protection, cyber security, and grid creation and reliability.

Hawaii is considering a bill that would establish the Hawaii Electricity Reliability Council to develop and implement grid reliability and interconnection standards, and a pending bill in Illinois states that to sustain emission-free driving, there must be uniform standards to develop a smart grid charging infrastructure to connect electric vehicles to the grid.

Smart meters enable variable time-of-day pricing, which can more accurately reflect the fluctuating cost of electricity and will play an important role in regulating when people charge electric vehicles. Many utilities already implement time-of-day rate structures, and two states, Kansas and New York, introduced bills this year relating to variable time-of-day pricing.

Cyber security becomes more critical as smart grid investments and initiatives increase, and a few new policies protect customers. Maine and Maryland enacted bills that focus on cyber security and privacy issues regarding smart meters. Oklahoma enacted an Electric Utility Data Protection Act, while Colorado considered a bill (that failed) that would have made aggregated resource consumption data available, but the data would be purged of personally identifiable information.

Colorado, Hawaii, Illinois, Kansas, Massachusetts, Maine, Mississippi, New York and North Carolina considered bills this year that promote smart grid deployment or smart meter installations. Below is a chart including state legislation since January 2011. 

 

State

Bill

Status

Summary

California

SB 674

Pending

Focuses on telecommunications but addresses master-metering and data security. Requires that contracts between electrical and gas corporations and third parties that share customer energy consumption data prescribe customer consent prior to using the data.

Colorado

SB 131

Failed/Postponed Indefinitely

Relates to creating a smart energy grid and implementing recommendations from the Colorado Smart Grid Task Force.

 

HB 1191

Failed/Postponed Indefinitely

Addressed sharing aggregated resource consumption data obtained from Colorado utilities and making the data available. It would have required the data to be purged of personally identifiable information.

Hawaii

HB 1518 and SB 1456

Pending/Carried Over

Establish the Hawaii Electricity Reliability Council to develop and implement grid reliability and interconnection standards. The council would be directed to provide technical guidance concerning smart grid system implementation.

Illinois

HB 3754

Pending

Creates the Electric Vehicle Infrastructure Act, noting that to sustain emission-free driving, there must be uniform, statewide standards to develop a smart grid charging infrastructure for electric vehicles to efficiently connect to the grid.

Kansas

HCR 5005

Pending

Establishes a goal of at least 50 percent of all electric meters to be smart grid compliant for each public utility.

 

HCR 5012

Pending

Directs the Kansas Corporation Commission to work with electric utilities to increase smart grid compliance.

 

HB 2303

Pending/Carried Over

States that any public utility that has deployed smart meters to a majority of its residential customers shall file a tariff for variable time-of-day pricing of electricity.

Maine

HB 1025

Died

Would have amended customer rights components of the state's smart grid policy. The PUC would have been required to initiate a proceeding whenever a utility was going to install a wireless meter. The bill would have protected customer rights during installation and protected against rate increases.

 

HB 818

Pending

Exempts expenditures before January 2017 that are likely to produce cost savings through energy efficiency, renewable energy technology or smart grid technology from the required certificate of need process.

 

HB 563

Enacted

Requires the Public Utilities Commission to establish terms and conditions to govern wireless smart meter installation. The terms must allow customers, at no cost, to opt out of wireless smart meter installation or have a smart meter removed. Customers, at no cost, must also be given the option of a wired smart meter.

Maryland

HB 665 and SB 557

Enacted

Established the Commission on Maryland Cybersecurity Innovation and Excellence.

Massachusetts

HB 2024

Pending

Directs a special task force that studies long-term actions necessary to reduce greenhouse gas emissions to consider smart grid implementation.

 

SB 1685

Pending

Creates a Repower Massachusetts Emergency Task Force, noting that the Task Force must study intermittency and smart grid challenges.

Mississippi

SCR 665 and HCR 120

Adopted

Urge all state agencies to define the smart grid for the purposes of creating jobs and encouraging customer energy savings in the state.

Montana

HB 1006

Pending

Establishes the Joint Committee on Renewable Technology and Industrial Onsite Energy Generation. Directs the committee to prepare a report that includes examination of transmission smart grids.

 

SB 305

Enacted

Relates to new transmission lines but notes that the need for lines could be mitigated by focusing on efficiency, including smart grid technologies.

New York

AB 296

Pending

Authorizes tenants to request smart or advanced meter installation.

 

SB 1084

Pending

Allows residential electric customers to install real time smart meters for greater control of service costs.

 

AB 1656

Pending

Establish a smart grid system.

 

AB 2144; SB 3466; AB 6484; SB 4149

Pending

Establish a nodal metering initiative demonstration project to pick points along the transmission and distribution grids for smart meter installation to accurately measure electricity consumption within a certain community, carry out a test, and provide results for evaluation purposes.

North Carolina

SB 671 and HB 872

Pending

Create the Smart Grid Job Creation and Retention Act. The bill would provide a tax credit for researching modern electric grid technologies and notes that the modern electric grid will allow "smart" technology deployment. It also provides a smart grid tax credit.

Oklahoma

HB 1079

Enacted

Creates the Electric Utility Data Protection Act, stating that smart grid and smart meter technologies can provide substantial benefits to consumers and the environment, including reducing energy costs, increased efficiency, and increased grid reliability. This bill requires utilities to provide customers with reasonable access to customer information, maintain confidentiality, and provide standard usage data to a customer upon request.

 

 Source: National Conference of State Legislatures

 

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