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quality to the grid, including pumped hydroelectric, CAES, flywheel storage, thermal storage, SMES, ultracapacitors, supercapacitors, and other battery storage. These investments will ensure that a variety of technologies and applications will be ready for implementation by utilities, cogeneration facilities, and industrial plants seeking to reduce carbon tax burdens through more efficient use of existing energy resources. 4. Promote implementation of smart grid technologies. According to the Galvin Electricity Initiative, smart grid technology can reduce power disturbance losses by $49 billion per year and reduce the need for massive infrastructure investment by between $46 billion and $110 billion over the next 20 years.27 But the development of smart grid technology—according to experts Steven W. Pullins and Barry Sanders—is deterred primarily by government regulation and lack of consumer participation. Pullins believes that although capital, raw materials, and labor costs for the smart grid would require significant investment, the future benefit to all users should be heavily weighed in its favor.28 The passing of the EISA 2007 made smart grid advancement U.S. policy. The law allocates $100 million in funding per fiscal year from 2008 to 2012. In addition, it establishes a matching program to states, utilities, and consumers to build smart grid capabilities and create a Grid Modernization Commission.29 Congress has provided $3.325 billion as part of the DOE’s Smart Grid Investment Program for smart grid demonstration and deployment to promote market learning in the industry, demonstration of utility-scale energy storage, and demonstrate grid-monitoring technologies through the American Recovery and Reinvestment Act of 2009.30 Much work remains to be done, however, to modernize the U.S. electrical grid. Do to the presence of burdensome federal and state transmissions development standards, combined with little to no momentum among local public and private utilities to undertake infrastructure development, the case for a federal role in this effort is great. Investment in smart grid infrastructure that improves the efficient distribution of power, accommodates a variety of energy applications, decentralizes supply, and facilitates permanent and considerable reductions in carbon emissions will require a substantial and long-term federal financial and planning commitment to achieve. The efficiency benefits of such an investment, however, will be manifold in the U.S. energy future. 5. Enhance research and development for more energy efficient products and services. Congress should continuously support research and development to discover new ways to decrease consumer costs, reduce emissions, and conserve resources through more efficiently-designed products and services. Interviewed experts identified that improving energy efficiency spans appliance, building, and equipment design; weatherization, insulation, and lighting standards for buildings; and industrial sector process innovation, improvement, and electrification. Research and development efforts in economic efficiency can also become an economic driver. A study from the American Council for 175PDF Image | Shaping Energy Technology Transition
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