Office of Electricity (2020 Presidential transition)

Book 3 - Organization Overview
Entire 2020 DOE Transition book As of October 2020

The Office of Electricity (OE) leads the Department of Energy ’s (DOE, the Department) research and development activities to provide long-term transformational strategies that will help ensure the Nation’s most critical energy infrastructure is secure, reliable, and resilient. OE is leading the efforts to modernize the electricity delivery system to ensure that it supports the evolving grid and emerging threats. OE achieves this mission through a mix of technology and policy solutions in partnership with the public and private sectors. OE works with Federal, State, local, and industry partners to bolster the resilience of the energy infrastructure when major energy supply interruptions occur.

Mission Statement

A secure and resilient power grid is vital to national security, economic security, and the services Americans rely upon. Working closely with its private and public partners, the Office of Electricity leads the Department’s efforts to ensure the Nation’s most critical energy infrastructure is secure and able to recover rapidly from disruptions.

Budget

Fiscal Year	Budget
FY 2019 enacted	$156,000,000
FY 2020 enacted	$190,000,000
FY 2021 request	$195,045,000

Human Resources

FY 2020 authorized full-time equivalents (FTEs): 74

History

In recognition of the important need to modernize the electric infrastructure, the Office of Electricity Delivery and Energy Reliability (OE) was formed in 2005 to focus on advance technology research and development in electric transmission and distribution (smart grid, renewable integration) and emergency response due to natural and manmade disruptions to the grid. Due to the increasing threat to our national security from growing cybersecurity attacks as well as the ongoing threat of natural disasters, in 2018, the Secretary of Energy directed the creation and standup of the new Office of Cybersecurity, Energy Security, and emergency Response (CESER) to strengthen DOE’s role as the sector-specific agency for the energy sector, support the Department’s expanded national security responsibilities, and better address emerging threats and natural disasters. The realignment resulted in those two functions separating from OE. It also moved the four Power Marketing Administrations (PMAs) (Bonneville Power Administration, Western Area Power Administration, Southeastern Power Administration, and Southwestern Power Administration) from under the Deputy Secretary to be managed by the Assistant Secretary of Electricity. The purpose of the realignment of the PMAs was to enhance the synergy between OE and the PMAs to efficiently maximize technology advancement opportunities and to provide the benefit of having in-house real time knowledge of utility systems operations and the electric market. The reorganization allowed OE to focus on long-term strategic and foundational R&D efforts related to the resilience and reliability of our Nation’s grid necessary to ensure national security. Specifically, OE is developing strategies to ensure the viability of our defense critical energy infrastructure against threat vectors

Since the inception of OE, the organization has stimulated advancements in the electric delivery system; improved the understanding of critical dependencies; accelerated the rate of scientific development in supply and demand side electric technologies; identified barriers to continued reliable electric service; deepened consideration of security and resilience measures in infrastructure planning; assisted many states and regions in improvements to their own electricity policies; and expanded partnerships with State and private sector stakeholders. The organization delivers enabling solutions to achieve America’s energy security and electricity policy while sustaining applied research into new advanced technologies and policies.

Functions

Advanced Grid Research and Development

OE leads national efforts to develop the next generation of technologies, tools, and techniques for the efficient, resilient, reliable, and affordable delivery of electricity in the U.S. OE manages programs related to modernizing the Nation’s power grid, and leads activities designed to accelerate discovery and innovation in electric transmission and distribution technologies and create “next generation” devices, software, tools, and techniques to help modernize the electric grid. Efforts include, but are not limited to:

grid scale energy storage;
advanced modeling to simulate and assess the behavior of electric power systems, as well as associated dependencies on natural gas, and other critical energy infrastructures;
new grid architectures and control mechanisms;
advanced technologies such as solid-state high voltage devices, including transformers and power flow controllers that can optimize power delivery and enhance resilience (power electronics);
complex interactive capabilities that can allow the system to respond to change (adaptive networks);
new sensing technologies;
intelligent communications and control systems; and
new advanced materials that can offer benefits such as lowered cost, greater efficiency, and longer life for smart grid technologies.

Transmission Permitting and Technical Assistance (TPTA)

TPTA’s Defense Critical Electric Infrastructure (DCEI) effort enhances U.S. national security by risk-managing and energy assuring critical defense facilities (CDF’s) identified by the Secretary of Energy as authorized by the 2015 FAST Act. This work composes four lines of effort: 1) creating a DCEI program platform; 2) developing a DCEI financing and funding strategy; 3) establishing effective coordination mechanisms for key partnerships; and 4) developing DCEI project assessment tools. TPTA’s recovery work furthers energy resilience and helps lower the cost of future disasters by supporting comprehensive recovery solutions for affected communities. TPTA also manages policies and programs related to the Energy Policy Act, as well as energy transmission and permitting on behalf of the Department.

Power Marketing Administrations

The four Federal PMAs operate electric systems and sell the electrical output of Federally-owned and operated hydroelectric dams in 34 States. The PMAs also play a large role in transmission, both as transmission owners and operators. All four of the PMAs function as balancing authorities for their regions. Through the Reclamation Project Act of 1939 and the Flood Control Act of 1944, in addition, the primary statute governing Bonneville’s rate setting process is the Northwest Power Act, the PMAs are required to set rates to cover costs at the lowest possible rates to consumers consistent with sound business principles, forgoing any profit.

Recent Organization Accomplishments

Advanced Grid Research and Development Energy Storage Grand Challenge (ESGC)

On January 8, 2020, Department of Energy announced a cross- cutting effort to create and sustain America’s global leadership in energy storage use, production, and exports, while using a secure, domestic manufacturing supply chain that does not depend on foreign sources for critical materials. The vision for the Grand Challenge is to create and sustain global leadership in energy storage utilization and exports, with a secure domestic manufacturing supply chain.

Grid Modernization Initiative (GMI)

Department of Energy announced the results of the 2019 Grid Modernization Lab Call with funding of approximately $80 million over three years and is focused on developing projects in resilience modeling; energy storage and system flexibility; advanced sensors and data analytics; institutional support and analysis; cyber-physical security; and generation. This funding aims to strengthen, transform, and improve the resilience of energy infrastructure to ensure the Nation’s access to reliable and secure sources of energy now and in the future. The selected projects will expand on prior GMLC efforts and the portfolio of projects to emphasize a fully integrated vision of the energy system, from fuel to generation to load, including interdependent infrastructures while focusing on bulk-power system impacts. The Strategy and Multi- Year Program Plan governing the GMI was recently revised to include a broader set of strategic goals and focused actions that address the objectives.

The Grid Storage Launchpad (GSL)

The GSL, OE’s first ever construction project, will address the significant capability gaps that exists for accelerating research in and validating the performance of battery technologies that are suited for grid applications. The scope of the GSL includes the design and construction of a new research facility on the Pacific Northwest National Laboratory campus. Key elements of the GSL conceptual design, cost and schedule were completed and the solicitation for services to design and build the GSL was released for bid in July 2020.

Transformer Resilience and Advanced Components (TRAC) Program Vision and Framework

This document describes the opportunities, goals, and key activities needed for the design of next- generation transmission and distribution (T&D) grid technologies that will influence and shape the research and development (R&D) activities in the future. Standardized designs do not exist for many T&D grid components, and their customized nature drives up equipment and installation costs. Modular and scalable designs would enable greater standardization and allow for more cost-effective capacity expansion. Additionally, local intelligence with embedded sensors, data processing, and communications would enable real-time health monitoring, reducing maintenance costs and enhancing system reliability by preventing failures. In addition, the TRAC program developed a Solid- State Power Substation Technology Roadmap which examined the future of substation technology along with advancements in grid power electronics. The Roadmap details opportunities to improve the performance of substation components and to reconsider the design of these critical nodes to support evolution of the grid.

Kirtland Air Force Base DC Microgrid

A resilient DC microgrid project was brought online at Kirtland Air Force Base (KAFB) in December 2019, through a cooperative R&D agreement between Sandia National Laboratories, with funding from the OE and Emera Technologies. The project, the first of its kind between Department of Energy and Department of Defense (DoD) sites, resulted in the installation of a single-bus, ten-node 250 kW DC microgrid on KAFB that links together generation and load between Kirtland DoD facilities, Sandia’s Distributed Energy Technology Laboratory (DETL), and the Photovoltaic Systems Evaluation Laboratory (PSEL) to power a demonstration site consisting of six housing units, a laundromat and a community center as a proof of concept.

Transmission Permitting and Technical Assistance

Bulk-Power System Executive Order

On May 1, 2020, the President signed Executive Order (EO) 13920, “Securing the United States Bulk- Power System,” which authorizes the U.S. Secretary of Energy to work with the Federal partners and the energy industry to secure America’s bulk-power system (BPS). In the EO, the President declared that threats to the bulk-power system by foreign adversaries constitute a national emergency. Serving as the backbone of our Nation’s energy infrastructure, the BPS is fundamental to national security, emergency services, critical infrastructure, and the economy. The EO calls for Department of Energy to adopt rules and regulations prohibiting certain acquisitions, import, transfer, or installation of bulk-power system components where there is a credible threat that could compromise the BPS. Department of Energy is also working closely with its Federal and industry partners to develop a mechanism to pre-qualify equipment and vendors for the BPS supply chain.

CEII Final Rule

On May 15, 2020 the Critical Electric Infrastructure Information (CEII) Final Rule went into effect. The “CEII” designation protects and secures critical information about the Nation’s electric infrastructure as part of Department of Energy ’s commitment to improve energy security while ensuring a reliable and resilient flow of energy to America’s communities and businesses. In the CEII final rule, Department of Energy established administrative procedures for how the Department will designate, protect, and share CEII. The rule also provided procedures for DOE coordination with other Federal agency partners and industry to facilitate mutual understanding and information sharing as it may relate to CEII.

Leadership Challenges

OE’s leadership challenges include:

Personnel Resource Demands

OE leadership is sought on a regular basis to help Federal agencies, States, local, and tribal communities meet the Nation’s high expectations for innovative electric grid technology; high quality energy resilience system infrastructure analysis; and implement, manage, and execute changes affecting the energy infrastructure.

Financial Resource Investment

Responsible for the grid-scale energy storage program, one of the key components for the development of a flexible and resilient electric grid infrastructure and a top priority of the Department, as well as the lead to strengthen the security of the Nation’s defense critical electric infrastructure and mitigate risks to the bulk-power system, OE will need substantial financial investment in order to succeed.

Critical Events and Action Items

Jan/Feb 2021

The Grid Storage Launchpad (GSL), the first ever OE construction project, will address the significant capability gaps that exists for accelerating research in and validating the performance of battery technologies that are suited for grid applications. The scope of the GSL includes the design and construction of a new research facility on the Pacific Northwest National Laboratory Campus. Critical Decision 2/3, required before construction start, is expected to take place in late January or early February.

May 1, 2021

Executive Order (EO) 13920, “Securing the United States Bulk-Power System,” issued on May 1, 2020, declared that threats to the bulk- power system by foreign adversaries constitute a national emergency. That designation will expire on May 1, 2021 and, absent legislative codification, the national emergency declaration would need to be renewed prior to that date. Additionally, during this time frame, it is anticipated DOE would be in the process of publishing a final rule prohibiting certain acquisitions, import, transfer, or installation of bulk- power system components where there is a credible threat that could compromise the BPS.

Second/Third Quarter of FY 2021

In 1964, Canada and the United States ratified the Columbia River Treaty (Treaty). The Treaty has no end date but either country can unilaterally terminate the Treaty from September 2024 onwards provided that at least 10 years notice is given. The second is the expiry of the pre-paid assured flood control operation in Canada of 8.45 million acre feet (MAF) that the U.S. purchased for sixty years in 1964 and the resulting shift to an ad hoc “Called Upon” flood control operation. This ability to terminate the Treaty, and changing flood control provisions whether the Treaty is terminated or not, have prompted both countries to undertake a review of the Treaty to determine its future. The Treaty has worked well in optimizing flood control and power objectives. It would be beneficial to resolve this ahead of 2024. The FY 2021 objective is to calculate and develop a U.S. position on the benefits and value for prepaid flood control.^[1]