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2023-026 GRIP Grant March 17, 2023 Report No. 2023-026 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Bipartisan Infrastructure Law (BIL) Grid Resilience and Innovation Partnership (GRIP) Program EXECUTIVE SUMMARY: Denton Municipal Electric (DME) has submitted two concept papers to the US Department of Energy (DOE) for proposed projects under the GRIP program. The first proposed project is to implement an Advanced Distribution Management System (ADMS), improving control and monitoring of the distribution system. The second proposal is for the design and completion of a distribution system of renewable generation resources and storage serving the University of North Texas (UNT) campus and creating energy capacity on the DME distribution grid to serve local customers. The DOE has reviewed the proposals and encouraged the City to submit a full application on each project, advancing both proposals to the next step of the grant process. BACKGROUND: GRIP is a $10.5 billion program funded by the Infrastructure Investment and Jobs Act, commonly referred to as BIL, with the purpose to enhance grid flexibility and improve the resilience of the power system against growing threats of extreme weather and climate change. The first round of funding for this program is $3.8 billion for FY 22 and 23. GRIP includes three funding Topic Areas: • Topic Area I — Grid Resilience Utility and Industry Grants ($2.5 billion)- supports activities that will modernize the electric grid to reduce impacts due to extreme weather and natural disasters. • Topic Area 2 — Smart Grid ($3 billion) — aims to increase the flexibility, efficiency, and reliability of the electric power system, with particular focus on increasing capacity of the transmission system, preventing faults that may lead to wildfires or other system disturbances, integrating renewable energy at the transmission and distribution levels, and facilitating the integration of increasing electrified vehicles, buildings, and other grid- edge devices. • Topic Area 3 — Grid Innovation ($5 billion) — provides financial assistance to one or multiple states, Tribes, local governments, and public utility commissions to collaborate with electric sector owners and operators to deploy projects that use innovative approaches to transmission, storage, and distribution infrastructure to enhance grid resilience and reliability. Concept papers, outlining a proposed project, are a required first step in the application process and submission deadlines vary by funding Topic Area. DME has submitted two concept papers for proposed projects under Topic Area 2 and 3. Both Topic Areas require a 50 percent non-federal source match. To modernize the grid and reduce service impacts related to natural events, remote control and monitoring of the DME distribution system is proposed under Topic Area 2. Currently, DME relies on substation breakers to disconnect the power in the event of a fault, customers to call in March 17, 2023 Report No. 2023-026 to report an outage, and line crews to find the affected circuit and restore power. Utility providers are implementing ADMS, a software platform that integrates numerous utility systems and provides automated outage restoration and optimization of distribution grid performance. ADMS functions include automated Fault Location, Isolation, and Service Restoration (FLISR), conservation voltage reduction, peak demand management, and volt/volt-ampere reactive (voltNAR) optimization. DME strongly believes that this proven technology can provide safe and secure management of an increasing volume of data on the distribution electric grid while enabling the effective management of distributed renewable energy, electric vehicle charging, and other grid-connected devices. In collaboration with Hunt Energy Enterprises (HEE) and UNT, DME proposes integrating batteries into existing wind generators and future solar energy resources managed by DME and UNT, on the UNT campus, to increase overall system resilience and provide new sources of reliable power and renewable power to the citizens of Denton and the students and faculty of UNT as well as the Electric Reliability Council of Texas (ERCOT) grid. The design and completion of the proposed project will provide a distribution system of renewable generation resources and storage serving the University of North Texas (UNT) campus and create energy capacity on the DME distribution grid to serve local customers and provide ancillary services like fast frequency response, voltage support, congestion management, and power quality management to the distribution network. The collaborative and innovative approach to enhance grid resilience and reliability meets the requirements of Topic Area 3. DOE has reviewed the proposals and encouraged the City to submit a full application on each project, advancing both proposals to the next step of the process. The deadline for Topic Area 2 full applications is March 17, 2023 and the deadline for Topic Area 3 is May 19, 2023. Staff is currently working to finalize the required documents and budget for the ADMS application (Topic Area 2). Discussions between the City, UNT, and HEE continue regarding a distribution system of renewable generation resources and storage. Submission of a full application under Topic Area 3 will be dependent on an agreed collaboration. STAFF CONTACT: Laura Behrens Assistant Director of Procurement Laura.Behrens@cityofdenton.com (940) 349-7273 PARTICIPATING DEPARTMENTS: DME Grant Management Office