The American Recovery and Reinvestment Act (“ARRA” or “Act”) allocated $4.5 billion to modernize the U.S. electricity grid, including implementation of the Smart Grid Investment Program. The Department of Energy (DOE) is the federal agency responsible for distributing grant money. The Federal Energy Regulatory Commission (FERC) will set standards for interoperability and reliability of the electric transmission grid. To ensure money available under the Act is put to its best use, FERC and an association of state utility regulators recently recommended a list of criteria for DOE to consider when funding Smart Grid projects. Key provisions of the Act governing Smart Grid, and steps taken to implement them, are summarized in the attached.