42 U.S.C. § 18712 — Preventing outages and enhancing the resilience of the electric grid

**(a) Definitions** In this section: (1) **Disruptive event** — The term “disruptive event” means an event in which operations of the electric grid are disrupted, preventively shut off, or cannot operate safely due to extreme weather, wildfire, or a natural disaster. (2) **Eligible entity** — The term “eligible entity” means— (A) an electric grid operator; (B) an electricity storage operator; (C) an electricity generator; (D) a transmission owner or operator; (E) a distribution provider; (F) a fuel supplier; and (G) any other relevant entity, as determined by the Secretary. (3) **Natural disaster** — The term “natural disaster” has the meaning given the term in [section 5195a(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section5195a/a&num=0&edition=prelim). (4) **Power line** — The term “power line” includes a transmission line or a distribution line, as applicable. (5) **Program** — The term “program” means the program established under subsection (b). **(b) Establishment of program** Not later than 180 days after November 15, 2021, the Secretary shall establish a program under which the Secretary shall make grants to eligible entities, States, and Indian Tribes in accordance with this section. **(c) Grants to eligible entities** (1) **In general** — The Secretary may make a grant under the program to an eligible entity to carry out activities that— (A) are supplemental to existing hardening efforts of the eligible entity planned for any given year; and (B) (i) reduce the risk of any power lines owned or operated by the eligible entity causing a wildfire; or (ii) increase the ability of the eligible entity to reduce the likelihood and consequences of disruptive events. (2) **Application** (A) *In general* — An eligible entity desiring a grant under the program shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require. (B) *Requirement* — As a condition of receiving a grant under the program, an eligible entity shall submit to the Secretary, as part of the application of the eligible entity submitted under subparagraph (A), a report detailing past, current, and future efforts by the eligible entity to reduce the likelihood and consequences of disruptive events. (3) **Limitation** — The Secretary may not award a grant to an eligible entity in an amount that is greater than the total amount that the eligible entity has spent in the previous 3 years on efforts to reduce the likelihood and consequences of disruptive events. (4) **Priority** — In making grants to eligible entities under the program, the Secretary shall give priority to projects that, in the determination of the Secretary, will generate the greatest community benefit (whether rural or urban) in reducing the likelihood and consequences of disruptive events. (5) **Small utilities set aside** — The Secretary shall ensure that not less than 30 percent of the amounts made available to eligible entities under the program are made available to eligible entities that sell not more than 4,000,000 megawatt hours of electricity per year. **(d) Grants to States and Indian Tribes** (1) **In general** — The Secretary, in accordance with this subsection, may make grants under the program to States and Indian Tribes, which each State or Indian Tribe may use to award grants to eligible entities. (2) **Annual application** (A) *In general* — For each fiscal year, to be eligible to receive a grant under this subsection, a State or Indian Tribe shall submit to the Secretary an application that includes a plan described in subparagraph (B). (B) *Plan required* — A plan prepared by a State or Indian Tribe for purposes of an application described in subparagraph (A) shall— (i) describe the criteria and methods that will be used by the State or Indian Tribe to award grants to eligible entities; (ii) be adopted after notice and a public hearing; and (iii) describe the proposed funding distributions and recipients of the grants to be provided by the State or Indian Tribe. (3) **Distribution of funds** (A) *In general* — The Secretary shall provide grants to States and Indian Tribes under this subsection based on a formula determined by the Secretary, in accordance with subparagraph (B). (B) *Requirement* — The formula referred to in subparagraph (A) shall be based on the following factors: (i) The total population of the State or Indian Tribe. (ii) (I) The total area of the State or the land of the Indian Tribe; or (II) the areas in the State or on the land of the Indian Tribe with a low ratio of electricity customers per mileage of power lines. (iii) The probability of disruptive events in the State or on the land of the Indian Tribe during the previous 10 years, as determined based on the number of federally declared disasters or emergencies in the State or on the land of the Indian Tribe, as applicable, including— (I) disasters for which Fire Management Assistance Grants are provided under [section 5187 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section5187&num=0&edition=prelim); (II) major disasters declared by the President under [section 5170 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section5170&num=0&edition=prelim); (III) emergencies declared by the President under [section 5191 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section5191&num=0&edition=prelim); and (IV) any other federally declared disaster or emergency in the State or on the land of the Indian Tribe. (iv) The number and severity, measured by population and economic impacts, of disruptive events experienced by the State or Indian Tribe on or after January 1, 2011. (v) The total amount, on a per capita basis, of public and private expenditures during the previous 10 years to carry out mitigation efforts to reduce the likelihood and consequences of disruptive events in the State or on the land of the Indian Tribe, with States or Indian Tribes with higher per capita expenditures receiving additional weight or consideration as compared to States or Indian Tribes with lower per capita expenditures. (C) *Annual update of data used in distribution of funds* — Beginning 1 year after November 15, 2021, the Secretary shall annually update— (i) all data relating to the factors described in subparagraph (B); and (ii) all other data used in distributing grants to States and Indian Tribes under this subsection. (4) **Oversight** — The Secretary shall ensure that each grant provided to a State or Indian Tribe under the program is allocated, pursuant to the applicable plan of the State or Indian Tribe, to eligible entities for projects within the State or on the land of the Indian Tribe. (5) **Priority** — In making grants to eligible entities using funds made available to the applicable State or Indian Tribe under the program, the State or Indian Tribe shall give priority to projects that, in the determination of the State or Indian Tribe, will generate the greatest community benefit (whether rural or urban) in reducing the likelihood and consequences of disruptive events. (6) **Small utilities set aside** — A State or Indian Tribe receiving a grant under the program shall ensure that, of the amounts made available to eligible entities from funds made available to the State or Indian Tribe under the program, the percentage made available to eligible entities that sell not more than 4,000,000 megawatt hours of electricity per year is not less than the percentage of all customers in the State or Indian Tribe that are served by those eligible entities. (7) **Technical assistance and administrative expenses** — Of the amounts made available to a State or Indian Tribe under the program each fiscal year, the State or Indian Tribe may use not more than 5 percent for— (A) providing technical assistance under subsection (g)(1)(A); and (B) administrative expenses associated with the program. (8) **Matching requirement** — Each State and Indian Tribe shall be required to match 15 percent of the amount of each grant provided to the State or Indian Tribe under the program. **(e) Use of grants** (1) **In general** — A grant awarded to an eligible entity under the program may be used for activities, technologies, equipment, and hardening measures to reduce the likelihood and consequences of disruptive events, including— (A) weatherization technologies and equipment; (B) fire-resistant technologies and fire prevention systems; (C) monitoring and control technologies; (D) the undergrounding of electrical equipment; (E) utility pole management; (F) the relocation of power lines or the reconductoring of power lines with low-sag, advanced conductors; (G) vegetation and fuel-load management; (H) the use or construction of distributed energy resources for enhancing system adaptive capacity during disruptive events, including— (i) microgrids; and (ii) battery-storage subcomponents; (I) adaptive protection technologies; (J) advanced modeling technologies; (K) hardening of power lines, facilities, substations, of 11 So in original. other systems; and (L) the replacement of old overhead conductors and underground cables. (2) **Prohibitions and limitations** (A) *In general* — A grant awarded to an eligible entity under the program may not be used for— (i) construction of a new— (I) electric generating facility; or (II) large-scale battery-storage facility that is not used for enhancing system adaptive capacity during disruptive events; or (ii) cybersecurity. (B) *Certain investments eligible for recovery* (i) *In general* — An eligible entity may not seek cost recovery for the portion of the cost of any system, technology, or equipment that is funded through a grant awarded under the program. (ii) *Savings provision* — Nothing in this subparagraph prohibits an eligible entity from recovering through traditional or incentive-based ratemaking any portion of an investment in a system, technology, or equipment that is not funded by a grant awarded under the program. (C) *Application limitations* — An eligible entity may not submit an application for a grant provided by the Secretary under subsection (c) and a grant provided by a State or Indian Tribe pursuant to subsection (d) during the same application cycle. **(f) Distribution of funding** Of the amounts made available to carry out the program for a fiscal year, the Secretary shall ensure that— (1) 50 percent is used to award grants to eligible entities under subsection (c); and (2) 50 percent is used to make grants to States and Indian Tribes under subsection (d). **(g) Technical and other assistance** (1) **In general** — The Secretary, States, and Indian Tribes may— (A) provide technical assistance and facilitate the distribution and sharing of information to reduce the likelihood and consequences of disruptive events; and (B) promulgate consumer-facing information and resources to inform the public of best practices and resources relating to reducing the likelihood and consequences of disruptive events. (2) **Use of funds by the Secretary** — Of the amounts made available to the Secretary to carry out the program each fiscal year, the Secretary may use not more than 5 percent for— (A) providing technical assistance under paragraph (1)(A); and (B) administrative expenses associated with the program. **(h) Matching requirement** (1) **In general** — Except as provided in paragraph (2), an eligible entity that receives a grant under this section shall be required to match 100 percent of the amount of the grant. (2) **Exception for small utilities** — An eligible entity that sells not more than 4,000,000 megawatt hours of electricity per year shall be required to match ⅓ of the amount of the grant. **(i) Biennial report to Congress** (1) **In general** — Not later than 2 years after November 15, 2021, and every 2 years thereafter through 2026, 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 the program. (2) **Requirements** — The report under paragraph (1) shall include information and data on— (A) the costs of the projects for which grants are awarded to eligible entities; (B) the types of activities, technologies, equipment, and hardening measures funded by those grants; and (C) the extent to which the ability of the power grid to withstand disruptive events has increased. **(j) Authorization of appropriations** There is authorized to be appropriated to the Secretary to carry out the program $5,000,000,000 for the period of fiscal years 2022 through 2026.