; (B) to expand the use of microgrids; and (C) to improve energy resiliency. (b) Authorization of appropriations There is authorized to be appropriated $1,500,000 to carry out this section. 4. Definitions In this Act, the following definitions apply: (1) Covered entity The term covered entity means a not-for-profit organization determined eligible by the Secretary of Agriculture for purposes of this Act. (2) Department of Energy national laboratories The term Department of Energy national laboratories has the same meaning as the term National Laboratory under section 2 of the Energy Policy Act of 2005 ( 42 U.S.C. 15801 ). (3) Microgrid The term microgrid means an electric system— (A) that serves the local community with a power generation and distribution system; and (B) that has the ability— (i) to disconnect from a traditional electric grid; and (ii) to operate autonomously when disconnected. (4) Renewable energy; renewable energy system The terms renewable energy and renewable energy system have the meanings given those terms in section 9001 of the Farm Security and Rural Investment Act of 2002 ( 7 U.S.C. 8101 ). (5) Smart grid The term smart grid means an intelligent electric grid that uses digital communications technology, information systems, and automation to, while maintaining high system reliability— (A) detect and react to local changes in usage; (B) improve system operating efficiency; and (C) reduce spending costs.