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Transmission, Distribution and Storage: Grid Integration

The chapter discusses the important role of the electric transmission and distribution grid in meeting deep decarbonization goals. The U.S. DDPP reports state that meeting the 2050 target of reducing U.S. GHG emissions 80% below 1990 levels will require almost “fully decarbonizing” U.S. electricity resources and shifting a large share of transportation-related energy needs from petroleum resources to electricity resources. Accomplishing this goal will require a doubling of U.S. electricity generation as well as a significant expansion of the U.S. electric transmission and distribution grid, particularly since onshore renewable energy resources are dispersed widely throughout the country and are often located far from population centers. The reports conclude that the actual monetary cost to build the necessary transmission and distribution infrastructure is modest and will not significantly impact the cost of electricity resources for consumers. But there are significant legal, political, and socioeconomic barriers to building significant amounts of new, interstate transmission infrastructure. These barriers and potential solutions to them are the focus of the chapter.

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91 resources

Resource Congress

Proposed Energy Storage Promotion and Deployment Act of 2015

Under the proposed Energy Storage Promotion and Deployment Act of 2015, large retail electric utilities would have needed to meet at least 1 percent of their peak demand from storage by 2021. By the e...

Resource Public Utilities

Giving Landowners the Power: A Democratic Approach for Assembling Transmission Corridors

Gerstle’s 2014 article, Giving Landowners the Power: A Democratic Approach for Assembling Transmission Corridors, provides several innovative land-assembly alternatives to the traditional eminent doma...

Resource Congress

Proposed Energy Storage for Grid Resilience and Modernization Act of 2016

The proposed Energy Storage for Grid Resilience and Modernization Act of 2016 would have given a 30% tax credit to energy storage, equivalent to renewable energy tax support.

Example Executive Branch

DOE’s Proposed Distribution Transformer Efficiency Rule

In December 2022, DOE proposed new energy-efficiency standards for distribution transformers aiming to reduce greenhouse gas emissions and potentially saving consumers approximately $15 billion over 3...

Resource Executive Branch

Eminent Domain, Inc.

Lehavi and Licht’s 2007 Columbia Law Review article, proposes a novel replacement for eminent domain, the Special-Purpose Development Corporation (SPDC), which would acquire unified ownership of the l...

Example States and State Governments

Utah’s SB 115

SB 115 directed the Utah Public Service Commission to authorize certain funds for “innovative utility programs” designed to investigate, among other options, energy storage technology. The commission ...

Example States and State Governments

New Mexico’s HB 50 (2020)

New Mexico passed a March 2020 bill providing that transmission line projects qualify for industrial revenue bonds available through cities and municipalities, and supporting power lines that promote ...

Resource Public Utilities

Texas’ Competitive Renewable Energy Zones

The Texas Public Utility Commission is responsible for designating “competitive renewable energy zones” and “develop[ing] a plan to construct transmission capacity necessary to deliver to electric cus...

Resource Executive Branch

DOE’s Voluntary Code of Conduct

In 2015, DOE issued a Voluntary Code of Conduct on data privacy and the smart grid, articulating principles to address concerns that an individual’s energy consumption data not be disclosed in a manne...

Resource Congress

Great Plains Institute report, Opportunities to enable interstate coordination & cooperation in support of transmission infrastructure build-out in the Midwest

A 2011 Great Plain Institute report surveys key actions and policy mechanisms for supporting interstate coordination and cooperation to achieve transmission infrastructure, and includes model language...

Example States and State Governments

Maryland’s Energy Storage Pilot Program

Maryland SB 573 (2019) creates an energy storage pilot program in Maryland. The program requires the state’s four investor owned utilities to issue two solicitations for energy storage projects in 202...

Example Executive Branch

ARPA-E energy storage innovation funding

In May 2018, the Department of Energy’s Advanced Research Projects Agency (ARPA-E) committed up to $30 million in funding for long-term energy storage innovation. The funding went to the Duration Addi...

Resource States and State Governments

Report, The Coming Electrification of the North American Economy

The Brattle Group’s 2019 study assessed the importance of proactive infrastructure planning in anticipation of the electrification of major sectors of the U.S. economy. The study makes a case for acce...

Example States and State Governments

Virginia’s Clean Economy Act, SB 851 (2020)

Virginia’s Clean Econony Act (SB 851) requires Dominion Virginia (the state’s dominant utility) and the smaller Appalachian Power Co. to supply 30 percent of their power from renewables by 2030, and t...

Example States and State Governments

Nevada’s SB 204

Nevada’s SB 204 (2017) requires the state’s Public Utilities Commission to study whether it should establish a program mandating that the state’s electric utilities produce energy storage systems.

Example States and State Governments

Vermont’s Act 54 (2021) and Responsive Proceeding

In June, 2021, Vermont enacted Act 54, granting the Vermont Utility Commission the authority to adopt rules that integrate storage resources into the grid, where they can act as both sources and sinks...

Example States and State Governments

California Law Expediting Transmission Permitting

In September, 2023, California passed a law making transmission projects eligible for status as “environmental leadership development projects,” which would require state agencies to resolve environme...

Example States and State Governments

Maryland’s Energy Storage Grant Program

In May 2022, Maryland enacted a law establishing an Energy Storage System Grant Program to issue grants to individuals and businesses to cover a portion of the costs of energy storage systems installe...

Resource States and State Governments

California’s AB33 (2021)

In September 2021, the California legislature passed AB33, creating low-interest loans and grants for local governments to install energy storage and zero-emission vehicle infrastructure. The bill req...

Example Public Utilities

DC Order on System Level Energy Data

In June 2020, the District of Columbia Public Service Commission issued an order directing utilities to make system-level energy data available on their websites and improving data access for resident...

Resource Executive Branch

DOE’s Grid Modernization Initiative’s 2015 Quadrennial Technology Review

The DOE’s Grid Modernization Initiative’s 2015 Quadrennial Technology Review provides a survey of the state of the nation’s interconnected grids, the challenges to achieving higher renewable penetrati...

Resource Executive Branch

FERC’s Order 1920 on Transmission Planning

In May 2024, FERC issued Order 1920 on long-term transmission planning and cost allocation. The rule will require transmission operators to conduct and periodically update long-term regional transmiss...

Example States and State Governments

Michigan’s Clean, Renewable, and Efficient Energy Act

Michigan’s 2008 Clean, Renewable, and Efficient Energy Act called for the mapping of “Wind Energy Resource Zones” where transmission lines would be subject to an expedited siting process.

Resource Public Utilities

Lincoln Institute of Land Policy report, Getting Right-of-Way Right

The Lincoln Institute of Land Policy’s 2013 paper, Getting Right-of-Way Right: Landowner Compensation for Electric Power Transmission Rights of Way, reviewed alternate compensation methods for landown...

Resource Executive Branch

NARIS Study

NREL’s 2021 North American Renewable Integration Study (NARIS) models potential features of an integrated US-Canada grid capable of achieving an 80% reduction in carbon emissions through multiple path...

Resource Executive Branch

FERC Order 1000

FERC Order 1000 imposed on all public utility electric transmission providers the need to develop regional transmission plans. Those plans must consider non-transmission options as well as transmissio...

Example States and State Governments

Massachusetts’ Advancing Commonwealth Energy Storage program

In 2017, Massachusetts created a program, Advancing Commonwealth Energy Storage, to provide $20 million in grants to energy storage projects that test various, multi-use business cases for energy stor...

Example States and State Governments

California’s Renewable Highways Legislation

SB 49 (2023) orders the California Department of Transportation to ​“evaluate the suitability” of the land it owns alongside highway roadways, exits and interchanges for developing renewable energy, e...

Resource Congress

Proposed American Clean Energy Leadership Act of 2009

The proposed American Clean Energy Leadership Act of 2009 would have replaced state transmission siting altogether with regional siting entities operating in conjunction with the Department of the Int...

Example States and State Governments

Maine’s Community Benefit Agreements definition

Maine defines Community Benefit Agreements (at Maine Rev. Stat. 35-A § 3451(1-B)) between wind developers and host communities, noting they may involve payments by the developer to the host community ...

Resource Congress

Proposed STORAGE 2013 Act

The proposed STORAGE 2013 Act would have given storage systems a 20 percent investment tax credit for systems above 1-MW/1-MHw and a 30 percent tax credit for smaller 1-kw/5-kWh systems.

Example Public Utilities

NYISO Market Rules for Energy Storage

In September 2020, the New York Independent System Operator announced the final step in a years-long process to open the NYISO’s wholesale energy markets to Energy Storage Resources (ESRs). This devel...

Resource Executive Branch

New FERC Transmission Planning Proceeding (2021)

In July 2021, FERC launched docket RM21-17-000, a rulemaking on high-voltage transmission planning, and said it is seeking comments about how it could change or enhance existing transmission regulatio...

Example Public Utilities

Hawaii’s Major Project Interim Recovery Mechanism

In a 2013 Order, the Hawaii Public Service Commission created the Major Project Interim Recovery Mechanism, which incentivizes utilities to invest in infrastructure that enables renewable generation b...

Example Congress

Telecommunications Act of 1996

The Telecommunications Act of 1996 provides a useful model for how Congress or states might overcome local governments obstructing the authorization of transmission. It imposed constraints on the appr...

Resource States and State Governments

Massachusetts’ Act Driving Clean Energy and Offshore Wind

In August 2022, Massachusetts enacted an “Act Driving Clean Energy and Offshore Wind,” which builds on 2019 legislation and helps clarify how the state will meet its climate targets. Key provisions of...

Example States and State Governments

New Mexico’s Renewable Energy Transmission Authority Act

New Mexico’s Renewable Energy Transmission Authority Act (2007) directed the state’s Renewable Energy Transmission Authority to participate in regional transmission forums and grants it the power of e...

Resource States and State Governments

Report, Mind the Regulatory Gap: How to Enhance Local Transmission Oversight

This November 2024 report from RMI addresses the regulatory gap afflicting smaller transmission projects, which are often approved without coordinating in any regional transmission process, resulting ...

Example Public Utilities

Connecticut’s Innovative Energy Solutions Program

In March 2022, Connecticut regulators approved a new Innovative Energy Solutions (IES) program to accelerate the state’s grid modernization efforts by facilitating partnerships among private companies...

Example States and State Governments

Minnesota’s “buy the farm” statute

Minnesota is the only state in the union with a “buy the farm” statute (1977 Minn. Stat. § 216E.12 Sub. 4), which allows eligible landowners to select to have the utility purchase the entire property ...

Resource States and State Governments

Report, States Energy Storage Policy

This report identifies and summarizes existing trends in state energy storage policy in support of decarbonization, and contrasts these trends with the preferences of energy storage development firms,...

Example Executive Branch

FERC Order 745

FERC Order 745 ensured that cost-effective demand response resources in an RTO or ISO’s territory must be compensated at the locational marginal price.

Example States and State Governments

Massachusetts’ Clean Energy Grid Legislation

Massachusetts’ S.2967, An Act Promoting a Clean Energy Grid, Advancing Equity, and Protecting Ratepayers, reforms the siting and permitting of clean energy facilities, as well as the gas distribution ...

Example Public Utilities

California Order Streamlining Transmission Permitting

In January 2025, the California Public Utilities Commission adopted a decision to make it easier and faster to approve and build electric transmission projects and related grid upgrades in California....

Resource States and State Governments

NCSL report, Electric Transmission Planning: A Primer for State Legislatures

State policymakers can play a vital role in ensuring the necessary policies are in place to enable the reliable operation of the electric grid now and in the future. While transmission projects are mo...

Resource Congress

Proposed Clean Renewable Energy and Economic Development Act of 2009

The proposed Clean Renewable Energy and Economic Development Act of 2009 would have allowed DOE to designate “national renewable energy zones,” based on locations that are capable of generating more t...

Example States and State Governments

Texas Utilities Code § 39.107(b)

According to Texas Utilities Code § 39.107(b), all data belongs to the customer. Consumers in Texas can access their energy usage data on the Smart Meter Texas portal. Usage information must be made a...

Resource States and State Governments

Minnesota Energy Infrastructure Permitting Act

The Minnesota Energy Infrastructure Permitting Act, signed in May 2024, consolidates and reforms Minnesota’s review and permitting process for energy generation, storage, and transmission projects. Br...

Example States and State Governments

NY Energy Storage Target

In 2018, the New York Dept. of Public Service issued an Energy Storage Roadmap calling for an energy storage goal of 1.5 GW by 2025. In January 2018, the Public Service Commission issued an Order esta...

Resource Executive Branch

Report, Building a New Grid Without New Legislation: A Path to Revitalizing Federal Transmission Authorities

This 2020 report from the Institute for Policy Integrity holds that, in the absence of legislation, critical long-distance transmission can be developed by applying existing federal legal authorities....

Example States and State Governments

Connecticut Public Act 21-53

In June 2021, Connecticut passed legislation establishing a goal of deploying 1,000 MW of energy storage by the end of 2030, making Connecticut the eighth state to set an energy storage target. Under ...

Resource Public Utilities

ACEEE report, Integrated Energy Efficiency and Demand Response Programs

According to a 2019 ACEEE report analyzing 44 electric utility filings across the country, very few utilities optimally deploy energy efficiency or demand response programs. The report examines barrie...

Resource Congress

Bipartisan Policy Center report, Policies for a Modern and Reliable U.S. Electric Grid

The Bipartisan Policy Center released a 2013 report proposing a new federal backstop siting authority for transmission, allowing FERC to approve multistate transmission projects if a state siting auth...

Example States and State Governments

New Hampshire’s HB 715 (2020)

House Bill 715 requires New Hampshire’s Public Utilities Commission to look into ways to fairly compensate energy storage projects based on the savings those projects can bring to utility companies. T...

Example States and State Governments

California’s Grid Enhancing Technologies Study Legislation

“Grid Enhancing Technologies” refers to a bundle of technologies that can help increase the capacity of the grid faster and without building new lines. By increasing the capacity of existing lines, th...

Example Executive Branch

FHWA Guidance on Rights of Way for Renewable Projects and Transmission

While states must coordinate their use of federal interstate rights of way with the Federal Highway Administration, that agency has already instructed states to put that land to use for “clean energy ...

Example Public Utilities

California Grid Data Reliability Order

In October, 2024, the California Public Utilities Commission issued a decision addressing the accuracy and timeliness of public grid data from utilities. The grid data portion of the ruling addresses ...

Example States and State Governments

Oregon’s HB 2193

Oregon’s HB 2193 (2015) requires electric companies with at least 25,000 retail customers to produce at least one energy storage system with at least 5 MWh of energy, to be operational by January 2020...

Example States and State Governments

California’s Energy Storage Mandate

California’s AB 2514 (2010) called on the state to establish an energy storage mandate. California’s Public Utility Commission accordingly approved a 1.3GW storage target for the state to be achieved ...

Example States and State Governments

Nevada’s SB 448

In June 2021, Nevada Legislature passed SB448 to invest $100 million in transportation electrification and direct transmission providers to join a Regional Transmission Organization (RTO) by 2030. On ...

Resource Public Utilities

Center for Rural Affairs reports

In a 2014 report, Landowner Compensation in Transmission Siting for Renewable Energy Facilities, the Center for Rural Affairs considered ways to avoid the need to use eminent domain, including special...

Resource Local Governments

New York Model Zoning for Battery Storage

NYSERDA published this model law, intended to help New York local government officials adopt legislation and regulations to responsibly accommodate battery energy storage systems in their communities....

Example Public Utilities

MISO Multi-Value Project lines

The Midcontinent Independent System Operator had undertaken efforts to coordinate states to build a series of Multi-Value Project (MVP) lines (explained in a 2017 programmatic triennial review) design...

Example States and State Governments

California Laws on Transmission Approvals and Reporting

In September, 2022, California enrolled two laws related to accelerating transmission approvals and reporting requirements.SB 529: California’s SB 529 requires the Public Utilities Commission to updat...

Resource Congress

Proposed Distributed Energy Demonstration Act of 2017

The proposed Distributed Energy Demonstration Act of 2017 would have required the DOE to establish demonstration grant programs for Smart Grid technologies.

Example Public Utilities

Connecticut’s Energy Storage Solutions Program

In January, the Connecticut Public Utility Regulatory Authority launched an energy storage subsidization program, for which both residential and commercial customers may be eligible. The Energy Storag...

Resource Public Utilities

Energy Policy Act §216(i)

In the Energy Policy Act of 2005, §216(i) (codified at 16 U.S.C.A. § 824p), Congress granted consent for three or more contiguous States to enter into an interstate compact, subject to approval by Con...

Resource Congress

Proposed American Clean Energy and Security Act of 2009

The proposed American Clean Energy and Security Act of 2009 (“Waxman-Markey”) would have endorsed a regional transmission planning model and the expansion of federal backstop authority over transmissi...

Example Executive Branch

DOE’s Joint Center for Energy Storage Research

In September 2018, the Department of Energy committed $120 million over five years to support the Joint Center for Energy Storage Research, which devoted to advancing battery science and technology.

Example Local Governments

New York’s “City of Yes for Carbon Neutrality” Initiative

The New York City Council approved the “City of Yes for Carbon Neutrality” plan in December 2023, a set of citywide zoning changes making it easier to install a variety of distributed energy resources...

Model Law States and State Governments

LPDD Model Law: State Law Expediting the Siting of Utility-Scale Renewable Energy Generating Systems

This model state legislation aims to expedite and institutionalize uniform processes for siting facilities for generating, transporting and storing renewable energy. The model statute has two parallel...

Resource States and State Governments

Northeast States Collaborative on Interregional Transmission

In July, 2024, ten Northeast states announced a memorandum of understanding (MOU) to establish a framework to improve interregional transmission planning and development. Under the MOU, states agreed ...

Resource Congress

Proposed CLEAN Future Act (2020)

The proposed Climate Leadership and Environmental Action for our Nation’s (CLEAN) Future Act (2020) is a large, economy-wide climate bill released by the House Committee on Energy and Commerce. Among ...

Example States and State Governments

California Customer Data Protection rules

In response to SB 1476, the California Public Utility Commission established rulesto protect information about consumer use of “smart meter” electrical services. The California decision, the first in ...

Resource States and State Governments

Report, Mind the Regulatory Gap: How to Enhance Regional Transmission Oversight

This November 2024 report from RMI observes that trends in transmission spending have recently favored inefficient, lower-voltage local projects, as opposed to high-voltage, regional lines. The author...

Resource Executive Branch

Report, A Path Forward for FERC

The Institute for Policy Integrity’s 2020 report, A Path Forward for the Federal Energy Regulatory Commission, advises that FERC should take an active role in better aligning regulatory practices with...

Example States and State Governments

Wisconsin’s Act 89 on Highway Transmission Corridors

In 2003 Wisconsin passed Act 89, which established highway and railway corridors as the second priority corridors (after existing transmission corridors) for new transmission development.

Resource Executive Branch

Energy Environ. Sci. Article, Assigning Value to Energy Storage Systems at Multiple Points in an Electrical Grid

Balducci et al., in their article, Assigning Value to Energy Storage Systems at Multiple Points in an Electrical Grid, offer one of the most recent, holistic approaches in valuing the multiple service...

Resource Public Utilities

Report, Unlocking the Queue with Grid-Enhancing Technologies

A February 2021 study found that twice as much renewable generation could be added in Kansas and Oklahoma with modest investments in technology that boosts efficiency on the power grid. The Watt Coali...

Resource States and State Governments

NYSERDA Battery Energy Storage System Guidebook

The New York State Energy Research and Development Authority prepared a 2019 Battery Energy Storage System Guidebook to help local government officials understand and develop battery energy storage sy...

Example States and State Governments

NJ’s A3723

New Jersey passed A3723 (2018) that sets New Jersey’s energy storage target at 2,000 MW by 2030.

Example States and State Governments

Massachusetts energy storage target

In accordance with H4568 (2016), Massachusetts’s Dept. of Energy Resources has adopted a target of 200 MWh of storage by 2020. In July of 2018, Massachusetts passed 4857, raising the state goal to 1,0...

Example States and State Governments

Connecticut’s HB 5002 (2019)

HB 5002 (2019) authorized the electric distribution utilities to own and rate-base wholesale storage generation assets for the first time since electric restructuring was authorized in 1998.

Example Public Utilities

Illinois’ 15/15 rule

The Illinois Commerce Commission issued a 2014 Order allowing anonymized customer data sharing where the aggregated information abides by the 15/15 rule, meaning the information from at least 15 custo...

Resource Executive Branch

DOE’s Energy Storage Grand Challenge Draft Roadmap

DOE’s Energy Storage Grand Challenge Draft Roadmap outlines a Department-wide strategy to accelerate innovation across a range of storage technologies based on three concepts: Innovate Here, Make Here...

Example States and State Governments

Michigan Smart Thermostat Giveaway

Consumers Energy, a Michigan-based utility, Google and Uplight will provide Google Nest thermostats to up to 100,000 households, while automatically enrolling these customers in a demand response prog...

Resource States and State Governments

Report, Energy Storage for a Modern Electric Grid: Technology Trends and State Policy Options

This 2021 primer from the National Conference of State Legislatures is designed to assist state lawmakers in understanding how energy storage technologies work, the benefits that storage can deliver t...

Resource Executive Branch

FERC Order 841

FERC Order 841 required RTOs and ISOs to revise their tariffs to establish market rules that facilitate the participation of electric storage resources in the capacity, energy, and ancillary service m...

Example States and State Governments

California’s Renewable Energy Transmission Initiative

California’s Renewable Energy Transmission Initiative is a statewide attempt to overcome problems related to transmission planning and costs, private and public land use issues, and environmental impa...

Example Congress

Energy Policy Act of 2005

The Energy Policy Act of 2005 provides a useful model for how Congress or states might overcome local governments obstructing the permitting of transmission. Its provisions on the siting of liquefied ...

Example States and State Governments

NYSERDA smart grid development funding

Throughout 2019, the New York State Energy Research and Development Authority has put forward funding opportunities for advancing smart grid development in waves, including a $15 million Future Grid C...