; and (2) provides an analysis of the feasibility of implementing a distribution system operator. (e) Authorization of appropriations There is authorized to be appropriated to carry out the pilot program $20,000,000, to remain available until expended. 6. Consideration of performance-based incentive rates (a) In general Section 111(d) of the Public Utility Regulatory Policies Act of 1978 ( 16 U.S.C. 2621(d) ) (as amended by section 4(c)) is amended by adding at the end the following: (22) Performance-based incentive mechanisms (A) In general Each State regulatory authority, with respect to each electric utility for which the State regulatory authority has ratemaking authority, shall consider the use of performance-based incentive mechanisms to achieve public interest goals established by the State or State regulatory authority in accordance with subparagraphs (B) and (C). (B) Considerations for establishment of public interest goals In establishing public interest goals under subparagraph (A), the State or State regulatory authority, as applicable, shall consider— (i) overall system efficiency, including reductions in peak demand; (ii) the integration and adoption of distributed energy resources; (iii) process improvements, such as predictable and timely interconnection processes; (iv) the resiliency and reliability of the electricity grid; (v) customer engagement and satisfaction; (vi) environmental benefits, including reductions in particulate and greenhouse gas emissions; and (vii) any other factor determined to be appropriate by the State or State regulatory authority. (C) Metrics In establishing public interest goals under subparagraph (A), the State or State regulatory authority, as applicable, shall specify quantifiable metrics with respect to the public interest goals that can be measured and verified. . (b) Compliance (1) Obligations to consider and determine