Advanced transmission technologies

(a) Definitions In this section: (1) Commission The term Commission means the Federal Energy Regulatory Commission. (2) Advanced transmission technology The term advanced transmission technology means any hardware or software that— (A) increases the capacity, efficiency, reliability, resilience, or safety of transmission facilities and transmission technologies; (B) is installed in addition to new or existing transmission facilities and transmission technologies— (i) to give operators of the transmission facilities and transmission technologies more situational awareness and control over the electric grid; (ii) to make the transmission facilities and transmission technologies more efficient; or (iii) to increase the transfer capacity of the transmission facilities and transmission technologies; and (C) includes, but is not limited to, dynamic line ratings, advanced conductors, topology optimization, advanced power-flow controls, and other digital or physical systems that increase the usable transfer capability of the grid. (3) Secretary The term Secretary means the Secretary of Energy. (b) Shared savings incentive for advanced transmission technologies (1) Definition of developer In this subsection, the term developer, with respect to advanced transmission technology, means the entity that pays to install the advanced transmission technology. (2) Establishment of shared savings incentive Not later than 18 months after the date of enactment of this Act, the Commission shall promulgate a final rule to implement section 219(b)(3) of the Federal Power Act (16 U.S.C. 824s(b)(3)) by providing a shared savings incentive that returns a portion of the savings attributable to an investment in advanced transmission technology to the developer of that advanced transmission technology, in accordance with this subsection. The Commission may also establish alternative incentive mechanisms, including performance-based rate adjustments, accelerated depreciation, or return-on-equity adders, for utilities or transmission owners for which a shared-savings approach is impracticable. (3) Requirements (A) In general The Commission shall determine the percentage of savings attributable to an investment in advanced transmission technology that can be returned to the developer of that advanced transmission technology pursuant to the shared savings incentive established under paragraph (2), subject to the conditions that the percentage— (i) is not less than 10 percent and not more than 25 percent; (ii) is not determined on a per-project, per-investment, or case-by-case basis; and (iii) is applied consistently to all investments in advanced transmission technology eligible for the shared savings incentive, regardless of the type of advanced transmission technology installed. (B) Time period for recovery The shared savings incentive established under paragraph (2) shall return a percentage, determined in accordance with subparagraph (A), of the applicable savings to the developer of the applicable advanced transmission technology over a period of 10 years. (4) Eligibility Subject to paragraph (5), the shared savings incentive established under paragraph (2) shall apply with respect to— (A) any developer, with respect to the investment of that developer in advanced transmission technology that is installed as described in subsection (a)(2)(B); and (B) any advanced transmission technology, including— (i) advanced transmission technology that relates to new transmission facilities or transmission technologies; and (ii) advanced transmission technology that relates to existing transmission facilities or transmission technologies. (5) Limitations (A) Minimum savings (i) In general The shared savings incentive established under paragraph (2) shall apply with respect to an investment in advanced transmission technology only if the expected savings attributable to the investment over the 3-year period described in paragraph (3)(B), as determined by the Commission and appropriately adjusted to reflect net present value of the expected savings, are at least 2 times the cost of the investment. (ii) Determination (I) In general The Commission shall determine how to quantify the cost of an investment and the expected savings attributable to an investment for purposes of clause (i). (II) Costs For purposes of clause (i), the cost of an investment may include any costs associated with the permitting, installation, or purchase of the applicable advanced transmission technology. (B) Already installed advanced transmission technologies The shared savings incentive established under paragraph (2) may not be applied with respect to advanced transmission technology that is already installed as of the date of enactment of this Act. (C) Consumer protection The Commission shall determine appropriate consumer protections for the shared savings incentive established under paragraph (2). (6) Evaluation and sunset of shared savings incentive (A) Evaluation Not earlier than 7 years, and not later than 10 years, after the shared savings incentive is established under paragraph (2), the Commission shall— (i) evaluate the necessity and efficacy of the shared savings incentive; and (ii) determine whether to maintain, revise, or suspend the shared savings incentive. (B) Consideration of Order No. 1920 In conducting the evaluation under subparagraph (A)(i), the Commission shall consider— (i) how the shared savings incentive aligns with the requirement that advanced transmission technologies be considered in long-term regional transmission planning under Order No. 1920 of the Commission, entitled Building for the Future Through Electric Regional Transmission Planning and Cost Allocation (89 Fed. Reg. 49280 (June 11, 2024)) (or a successor order); (ii) whether and how the shared savings incentive should be revised to further align with that requirement; and (iii) whether, in light of that requirement, the shared savings incentive should be maintained or suspended. (C) Public comment In conducting the evaluation under subparagraph (A)(i), the Commission shall provide an opportunity for public comment, including by stakeholders. (c) Congestion reporting (1) Annual reports (A) In general Beginning on the date that is 1 year after the effective date of the rule promulgated under paragraph (2), all operators of transmission facilities or transmission technologies shall submit to the Commission annual reports containing data on the costs associated with congestion management with respect to the transmission facilities or transmission technologies, including all relevant constraints. (B) Requirement Each annual report submitted under subparagraph (A) shall identify— (i) with respect to each reported constraint that caused more than $500,000 in associated costs— (I) the cause of the constraint, including physical infrastructure and transient disruptions; and (II) the next limiting element type and its identified rating limit; and (ii) each constraint that will be addressed by planned future upgrades to infrastructure and facilities. (2) Rulemaking Not later than 18 months after the date of enactment of this Act, the Commission shall promulgate a final rule establishing a universal metric and protocol for the measuring and reporting of data under paragraph (1). (3) Uses of data (A) Analyses (i) In general The Commission and the Secretary shall each use the data submitted under paragraph (1) to conduct analyses, as the Commission or the Secretary, as applicable, determines to be appropriate. (ii) Coordination The Commission and the Secretary may coordinate with respect to any analyses conducted using the data submitted under paragraph (1). (B) Map The Commission and the Secretary, acting jointly, shall— (i) use the data submitted under paragraph (1) to create a map of costs associated with congestion management in the transmission system; and (ii) update that map not less frequently than once each year. (4) Publication of data and map The Commission and the Secretary shall make the data submitted under paragraph (1) and the map described in paragraph (3)(B) publicly available on the websites of— (A) the Commission; and (B) the Department of Energy. (d) Advanced transmission technology application guide (1) Definition of developer In this section, the term developer means a developer of transmission facilities or transmission technologies, including a developer of transmission facilities or transmission technologies that pays to install advanced transmission technology with respect to those transmission facilities or transmission technologies. (2) Establishment of application guide Not later than 18 months after the date of enactment of this Act, the Secretary shall establish an application guide for utilities and developers seeking to implement advanced transmission technologies. (3) Updates The guide established under paragraph (2) shall be reviewed and updated annually. (4) Technical assistance (A) In general On request of a utility or developer using the guide established under paragraph (2), the Secretary shall provide technical assistance to that utility or developer with respect to the use of advanced transmission technologies for particular applications. (B) Clearinghouse In carrying out subparagraph (A), the Secretary shall establish a clearinghouse of previously completed advanced transmission technology projects that the Secretary, utilities, and developers may use to identify issues and solutions relating to the use of advanced transmission technologies for particular applications. (5) Authorization of appropriations There are authorized to be appropriated to carry out this Act, to remain available until expended— (A) $5,000,000 for fiscal year 2026; and (B) $1,000,000 for each of fiscal years 2027 through 2037.