H.R. 5964 — Integrated Resource Planning Modernization Act

This section directs the Secretary of Energy, in consultation with state public utility commissions, state energy offices, electric utilities, balancing authorities, transmission organizations, and other stakeholders, to develop guidelines and best practices for integrated resource planning (IRP) of the electricity system. (IRP is a utility process for forecasting future electricity supply and demand needs to ensure reliability at least cost while considering alternatives such as generation, storage, transmission, and demand-side resources.) The guidelines must address key issues including (1) iterative capacity expansion modeling and resource adequacy analysis to minimize costs; (2) a wide range of capacity expansion alternatives (e.g., grid-enhancing technologies, storage, distributed energy resources, demand-side interventions); (3) explicit modeling of transmission contributions to reliability; (4) interregional planning for resource sharing; (5) integration of data from other fuel systems like natural gas; (6) scenario analysis for future system characteristics; (7) probabilistic models accounting for uncertainties such as extreme weather and fuel prices; (8) historical and projected weather data; (9) multiple resource adequacy metrics; (10) scorecards summarizing costs and benefits (e.g., infrastructure investments, environmental sustainability, economic impacts); and (11) rigorous capacity accreditation mechanisms using probabilistic metrics for various resources and technologies. The guidelines must also provide state-level guidance on reviewing IRPs, including public engagement processes with transparent data access and links to regulatory actions (e.g., procurement approvals, rate cases). The Secretary must publish the guidelines on a DOE public website not later than two years after enactment and conduct periodic evaluations and revisions.

This section directs the Secretary to provide training resources and technical assistance—including workshops, training sessions, and education materials—to state public utility commissions, state energy offices, owners or operators of electric utilities, balancing authorities, transmission organizations, and other relevant stakeholders to increase understanding of the guidelines and best practices published under section 2.

This section establishes the Integrated Resource Planning Modernization Grants Program, under which the Secretary of Energy provides grants to states, subject to appropriations, to develop or update integrated resource planning (IRP) requirements or strategies consistent with guidelines published under section 2 of the bill. (Vertically integrated states—i.e., those with utilities owning generation, transmission, and distribution—must use grants to develop or update IRP statutes or regulations, support utility compliance, and optionally fund consultants, staffing, modeling, stakeholder engagement, or cost recovery for utilities, balancing authorities, and transmission organizations; restructured states—i.e., those with competitive electricity markets—must use grants to coordinate with those entities on an IRP strategy and may use funds similarly.) States may apply beginning 6 months after initial publication of the section 2 guidelines, must submit a progress report within 2 years of receiving a grant, and must obligate funds within 5 years; grant amounts are determined by a formula considering factors such as existing state IRP requirements, application quality, number of electricity consumers, generation and transmission infrastructure, and diversity of market participants.

This section authorizes the Secretary to coordinate with other federal programs related to energy resilience and electricity system modernization (1) to maximize the impact of grants under the Integrated Resource Planning Modernization Grants Program by aligning efforts and avoiding duplication; and (2) to ensure that guidelines and best practices published under this Act complement and support other federal initiatives enhancing electricity system resilience and reliability.

This section requires the Secretary to submit to the appropriate congressional committees, not later than 5 years after enactment of this Act and every 5 years thereafter, a report on grants under the Integrated Resource Planning Modernization Grants Program that includes (1) a description of how vertically integrated states (i.e., those where a single utility owns generation, transmission, and distribution) and restructured states (i.e., those with competitive electricity markets) used the grants; (2) a breakdown of expenses paid using such grants; and (3) an assessment of the grants' effectiveness in supporting development of, and compliance with, integrated resource planning consistent with the Act's guidelines and best practices, including examples of adopted best practices and innovative approaches.

This section establishes definitions for 17 terms used in the Act, including **appropriate congressional committees** (i.e., House Energy and Commerce Committee and Senate Energy and Natural Resources Committee), **balancing area authority**, **behind-the-meter intervention** (e.g., energy efficiency upgrades, demand response), **capacity value**, **distributed energy resource** (e.g., rooftop solar), **grid-enhancing technology** (e.g., smart grid, energy storage), **resource adequacy** (i.e., ability to meet demand and reliability needs under varied conditions), **resource adequacy metric** (e.g., loss-of-load probability), **restructured State** (i.e., with separated generation, transmission, and distribution), and **vertically integrated State**.