Conference: Metering, Billing/CIS America
Location: San Diego, CA, USA
Presenter: Edward Gray
Abstract: Presented by Edward Gray at Metering, Billing/CIS America

The Energy Independence and Security Act of 2007, enacted on December 19, 2007, includes major smart grid provisions. The ‘smart grid’ is defined through its functionality as an integrated end to end digital instrumentation and control system for electrical generation; transmission and distribution grids; and end use applications. Advanced metering infrastructure is included as a smart grid system. Because EISA 2007 is a policy and authorization bill, additional attention will be needed for federal appropriations legislation to provide the funding needed to implement the policies. Major provisions include;

  • Technology development under the US Department of Energy (Office of Electricity Delivery and Reliability)
  • Up to 50% cost sharing for regional demonstration projects under DOE ($100 million per year federal funding for five years)
  • Commercial or near commercial smart grid technology deployment eligible for 20% cost sharing grants under DOE
  • Development of end to end interoperability standards under the National Institute of Standards and Technology

The Economic Stimulus Act of 2008, enacted on February 13, 2008, provides a first year 50% federal tax deduction in the form of bonus deduction for business investments ‘placed in service’ in 2008 (and for ‘long lived’ property placed in service in 2008 or 2009). Assets must be contracted for in 2008. The remaining asset value would be depreciated in accordance with the customary Internal Revenue Service practice for the asset. The deduction has the effect of a interest free government loan and significantly increases the net present value of the investment. As for all tax matters, tax advice from qualified experts should be consulted before taking such a deduction.