Preventing Power Outages Act

Bill Number

S. 1566

Origin Chamber

Senate

Congress

119th Congress, Session 1

Policy Area

Energy

Status

Introduced

Latest Action

2025-05-01: Read twice and referred to the Committee on Energy and Natural Resources.

Last Updated

2026-03-24T12:48:03Z

AI-Generated Summary

Purpose

The Preventing Power Outages Act (S. 1566) aims to extend and refine a federal program that funds efforts to prevent power outages and strengthen the U.S. electric grid's ability to withstand disruptions, such as from weather events or cyberattacks. It builds on existing law by prioritizing support for regions with the worst outage histories, while simplifying grant application rules to encourage broader participation.

Key Provisions

• Definitions for Reliability Metrics: Introduces standard terms for measuring power reliability:
• SAIDI (System Average Interruption Duration Index): Average time customers experience outages.
• SAIFI (System Average Interruption Frequency Index): Average number of outages per customer.
• CAIDI (Customer Average Interruption Duration Index): Average duration of each outage per affected customer.

These are based on an industry standard from the Institute of Electrical and Electronics Engineers (IEEE), and calculations must include all outages lasting more than 5 minutes, even during major events like storms.

• Grant Prioritization Based on Reliability:
• The Department of Energy (DOE) Secretary must give extra consideration to grant applicants (e.g., utilities or local governments) with higher SAIDI, SAIFI, or CAIDI scores over the past 5 years, meaning areas with more frequent or longer outages get priority.
• States and Indian Tribes receiving federal funds must apply the same reliability-based weighting when awarding sub-grants to local entities.

• Simplified Grant Rules:
• Prohibits requiring or favoring grant applications that address multiple types of grid improvements (e.g., weather-proofing equipment, cybersecurity upgrades, or vegetation management) in a single project. This allows applicants to focus on one area without penalty.

• Funding Extension: Allocates funds for the program from fiscal years 2027 through 2031, with money remaining available until spent (extending beyond the original 2022–2026 period).

Significant Changes to Existing Law

This bill amends Section 40101 of the Infrastructure Investment and Jobs Act (2021), which established the original grid resilience program:

• Adds the new reliability definitions and prioritizes funding for underperforming areas, shifting focus from general criteria to data-driven targeting of outage-prone regions.
• Removes a previous provision (subsection (e)(2)(C)) that likely favored multi-category projects, replacing it with rules to prevent such preferences and reduce barriers for narrower applications.
• Incorporates reliability scores into state and tribal evaluation criteria for the first time, ensuring federal dollars flow to the most vulnerable grids.
• Extends the program's authorization and funding availability by five years, providing long-term stability.

Potential Impacts

• On Government Agencies: The DOE will need to track and use reliability data for grant decisions, potentially increasing administrative workload but improving targeted investments. States and Indian Tribes gain flexibility in sub-granting but must adopt similar data-based priorities.
• On Citizens: Residents in areas with frequent outages (e.g., rural or storm-prone regions) could see faster improvements in power reliability, reducing disruptions to daily life, businesses, and emergency services.
• On International Relations: Minimal direct impact, though a more resilient U.S. grid could indirectly support energy security and reduce vulnerabilities to global threats like cyberattacks from foreign actors.

Main Stakeholders Affected

• Utilities and Electric Providers: Eligible for grants to upgrade infrastructure; those in low-reliability areas benefit most from prioritized funding.
• States and Indian Tribes: Responsible for distributing funds and must prioritize based on outage data, affecting local energy planning.
• Federal Government (DOE): Oversees the program, with new requirements for data use and equitable grant rules.
• Consumers and Communities: Particularly in outage-vulnerable areas, who stand to gain from reduced blackouts.
• Industry Groups (e.g., IEEE): Their standards influence how reliability is measured, potentially standardizing national practices.

Notable Legal, Constitutional, or Political Implications

• Legal: Reinforces federal support for critical infrastructure under existing energy laws, without creating new mandates. The emphasis on objective metrics (SAIDI, etc.) could make grant decisions more transparent and challengeable in court if not followed.
• Constitutional: Aligns with Congress's commerce clause authority over interstate energy systems; no apparent conflicts with states' rights, as it allows state-level discretion in sub-grants.
• Political: Bipartisan sponsorship (Sens. Peters and Cassidy) suggests broad appeal for grid modernization amid climate and cyber risks. Extending funding without new appropriations may require future budget debates, but the focus on equity for underserved areas could build support across regions.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Sen. Peters, Gary C. [D-MI]

Cosponsors (1)

Sen. Cassidy, Bill [R-LA]

Recent Actions

• 2025-05-01: Read twice and referred to the Committee on Energy and Natural Resources.
• 2025-05-01: Introduced in Senate

Bill Versions

• Preventing Power Outages Act — issued 2025-05-01 — PDF (6 pages)