Transmission permitting

(a) Definitions Section 216 of the Federal Power Act (16 U.S.C. 824p) is amended by striking subsection (a) and inserting the following: (a) Definitions In this section: (1) Affected landowner The term affected landowner includes each owner of a property interest in affected property, including— (A) the Federal Government; (B) a State or local government; and (C) each owner noted in the most recent county or city tax record as receiving the relevant tax notice with respect to that interest. (2) Affected property The term affected property means any land or other property— (A) that is or will be crossed by the energy transmission facility proposed to be constructed or modified under the applicable permit under subsection (b); (B) that is or will be used as a facility site with respect to the energy transmission facility proposed to be constructed or modified under the applicable permit under subsection (b); (C) that abuts any boundary of an existing right-of-way or other facility site that— (i) is owned by an electric utility; and (ii) is located not more than 500 feet from the energy transmission facility to be constructed or modified under the applicable permit under subsection (b); (D) that abuts the boundary of a proposed facility site for the energy transmission facility to be constructed or modified under the applicable permit under subsection (b); (E) that is crossed by, or abuts any boundary of, an existing or proposed right-of-way that— (i) will be used for the energy transmission facility to be constructed or modified under the applicable permit under subsection (b); and (ii) is located not more than 500 feet from the proposed location of that energy transmission facility; or (F) on which a residence is located not more than 500 feet from the boundary of any right-of-way for that energy transmission facility. (3) Commission The term Commission means the Federal Energy Regulatory Commission. (4) Improved reliability The term improved reliability has the meaning given the term in section 225(a). (5) Landowner input The term landowner input means input received— (A) by the Commission; (B) from affected landowners, such as farmers and ranchers, in the path of the proposed construction or modification of an electric transmission facility; and (C) pursuant to notification provided to, and consultation with, those affected landowners, farmers, and ranchers by the Commission. (6) Secretary The term Secretary means the Secretary of Energy.. (b) Construction permit Section 216(b) of the Federal Power Act (16 U.S.C. 824p(b)) is amended— (1) in the matter preceding paragraph (1), by striking Except and all that follows through finds that and inserting Except as provided in subsections (d)(1) and (i), the Commission shall, after notice and an opportunity for hearing, including a public comment period of at least 45 days, issue one or more permits to individual or joint applicants for the construction or modification of electric transmission facilities necessary in the national interest if the Commission finds that; (2) in paragraph (1)— (A) in subparagraph (A)(i), by inserting or modification after siting; and (B) in subparagraph (C)— (i) in the matter preceding clause (i), by inserting or modification after siting; and (ii) in clause (i), by striking the later of in the matter preceding subclause (I) and all that follows through the semicolon at the end of subclause (II) and inserting the date on which the application was filed with the State commission or other entity;; and (3) by striking paragraphs (2) through (6) and inserting the following: (2) the proposed facilities will be used for the transmission of electric energy in interstate commerce (including transmission from the outer Continental Shelf to a State) or foreign commerce; (3) the proposed construction or modification is consistent with the public interest; (4) the proposed construction or modification will protect or benefit consumers and provide improved reliability; (5) the electric transmission facilities are capable of transmitting electric energy at a voltage of not less than 230 kilovolts or, in the case of facilities that include advanced transmission conductors (including superconductors), as defined by the Commission, voltages determined to be appropriate by the Commission; and (6) if applicable, the proposed modification (including reconductoring) will maximize, to the extent reasonable and economical, the transmission capabilities of existing towers, structures, or rights-of-way.. (c) State siting and consultation Section 216 of the Federal Power Act (16 U.S.C. 824p) is amended by striking subsection (d) and inserting the following: (d) State siting and consultation (1) Preservation of State siting authority The Commission shall have no authority to issue a permit under subsection (b) for the construction or modification of an electric transmission facility within a State except as provided in paragraph (1) of that subsection. (2) Consultation In any proceeding before the Commission under subsection (b), the Commission shall afford each State in which a transmission facility covered by the permit is or will be located, each affected Federal agency and Indian Tribe, private property owners, and other interested persons, a reasonable opportunity to present their views and recommendations with respect to the need for and impact of a facility covered by the permit. (3) Landowner input In authorizing the construction or modification of an electric transmission facility under subsection (b), the Commission shall take into account landowner input. (4) State record In any proceeding before the Commission under subsection (b), each State in which a transmission facility covered by the permit is or will be located may file with the Commission, and the Commission shall consider, any part of the State record, if applicable, that the State finds to be relevant to the determination of the Commission. (5) Pre-filing processes Any Commission-related pre-filing processes relating to an application submitted under subsection (c) may commence before, but shall commence no later than, an application is submitted to the applicable State commission or other entity that has authority to approve the siting of the applicable facility. (6) Simultaneous processing In the case of transmission facilities that are capable of transmitting electric energy at a voltage of not less than 345 kilovolts, an application under subsection (c) shall be submitted to the Commission simultaneously with, or any time after, the submission of an application to the applicable State commission or other entity that has authority to approve the siting of the applicable facility, and the Commission shall commence a proceeding under subsection (b). (7) Limitations Simultaneous processing under paragraph (6) is subject to the condition that the Commission shall not issue a permit under subsection (b) unless the Commission first makes a finding described in subparagraph (A), (B), or (C) of subsection (b)(1) with respect to the applicable electric transmission facility.. (d) Rights-of-Way Section 216(e)(3) of the Federal Power Act (16 U.S.C. 824p(e)(3)) is amended by striking shall conform and all that follows through the period at the end and inserting shall be in accordance with rule 71.1 of the Federal Rules of Civil Procedure.. (e) Cost allocation (1) In general Section 216 of the Federal Power Act (16 U.S.C. 824p) is amended by striking subsection (f) and inserting the following: (f) Cost allocation (1) Transmission tariffs For the purposes of this section and except as provided in paragraph (2), any transmitting utility that owns, controls, or operates electric transmission facilities that the Commission finds to be consistent with the findings under paragraphs (2) through (5) and, if applicable, (6) of subsection (b) shall file a tariff or tariff revision with the Commission pursuant to section 205 and the regulations of the Commission allocating the costs of the new or modified transmission facilities. (2) Exception In the case of an exempt transmitting utility (as defined in section 225(a)) that owns, controls, or operates electric transmission facilities described in paragraph (1), the Commission, notwithstanding section 211A(c), shall require the exempt transmitting utility to provide transmission services over such facilities pursuant to section 211A and the regulations of the Commission allocating the costs of the new or modified transmission facilities. (3) Transmission benefits The Commission shall require that tariffs or tariff revisions filed under this section are just and reasonable and allocate the costs of providing service to customers that benefit, in accordance with the cost-causation principle and at least roughly commensurate with the benefits, including through— (A) improved reliability; (B) reduced congestion; (C) reduced power losses; (D) greater carrying capacity that delivers improved reliability or reductions in the cost of delivered power; (E) reduced operating reserve requirements; and (F) improved access to generation that achieves reductions in the cost of delivered power. (4) Ratepayer protection Customers that receive no benefit, or benefits that are trivial in relation to the costs sought to be allocated, from electric transmission facilities constructed or modified under this section shall not be involuntarily allocated any of the costs of those transmission facilities, provided, however, that nothing in this section shall prevent a transmitting utility from recovering such costs through voluntary agreement with its customers.. (2) Savings provision If the Federal Energy Regulatory Commission finds that the considerations under paragraphs (1) through (5) and, if applicable, (6) of section 216 of the Federal Power Act (16 U.S.C. 824p) (as amended by subsection (b)) are met, nothing in this section or the amendments made by this section shall be construed to exclude transmission facilities located on the outer Continental Shelf from being eligible for cost allocation established under subsection (f)(1) of that section (as amended by paragraph (1)). (f) Coordination of Federal authorizations for transmission facilities Section 216(h) of the Federal Power Act (16 U.S.C. 824p(h)) is amended— (1) in paragraph (1), by adding at the end the following: (C) The term Federal authorization includes a certification under section 401 of the Federal Water Pollution Control Act (33 U.S.C. 1341) from a certifying authority (as defined in subsection (h) of that section) and any other permit, license, concurrence, or approval of a State administrative agency required under Federal law, other than the Coastal Zone Management Act of 1972 (16 U.S.C. 1451 et seq.), in order to site a transmission facility.; (2) in paragraph (2), by striking the period at the end and inserting the following:, except that— (A) the Commission shall act as the lead agency in the case of facilities permitted under subsection (b) or section 225; and (B) the Department of the Interior shall act as the lead agency in the case of facilities located on a lease, easement, or right-of-way granted by the Secretary of the Interior under section 8(p)(1)(C) of the Outer Continental Shelf Lands Act (43 U.S.C. 1337(p)(1)(C)).; (3) in each of paragraphs (3), (4)(B), (4)(C), (5)(B), (6)(A), (7)(A), (7)(B)(i), (8)(A)(i), and (9), by striking Secretary each place it appears and inserting lead agency; (4) in paragraph (4)(A), by striking As head of the lead agency, the Secretary and inserting The lead agency; (5) in paragraph (5)(A), by striking As lead agency head, the Secretary and inserting The lead agency; (6) in paragraph (7)— (A) in subparagraph (A), by striking 18 months after the date of enactment of this section and inserting 18 months after the date of enactment of the Bipartisan American Affordability and Jobs Act of 2026; and (B) in subparagraph (B)(i), by striking 1 year after the date of enactment of this section and inserting 18 months after the date of enactment of the Bipartisan American Affordability and Jobs Act of 2026; and (7) by adding at the end the following: (10) Any order or action of a Federal agency or State administrative agency acting pursuant to Federal law to issue, condition, or deny a Federal authorization shall be subject to judicial review in the same courts in which an order of the Commission is subject to judicial review under section 313, and a court shall have jurisdiction over the action in accordance with the third sentence of subsection (b) of that section, the courts described in that section having original and exclusive jurisdiction over such actions.. (g) Interstate compacts Section 216(i) of the Federal Power Act (16 U.S.C. 824p(i)) is amended— (1) in paragraph (3), by striking, including facilities in national interest electric transmission corridors; and (2) in paragraph (4)— (A) in subparagraph (A), by striking; and and inserting a period; (B) by striking subparagraph (B); and (C) by striking in disagreement in the matter preceding subparagraph (A) and all that follows through (A) the in subparagraph (A) and inserting unable to reach an agreement on an application seeking approval by the. (h) Transmission infrastructure investment Section 219(b)(4) of the Federal Power Act (16 U.S.C. 824s(b)(4)) is amended— (1) in subparagraph (A), by striking and after the semicolon at the end; (2) in subparagraph (B), by striking the period at the end and inserting; and; and (3) by adding at the end the following: (C) all prudently incurred costs associated with payments to jurisdictions impacted by electric transmission facilities developed pursuant to section 216 or 225.. (i) Jurisdiction Section 216 of the Federal Power Act (16 U.S.C. 824p) is amended by striking subsection (k) and inserting the following: (k) Jurisdiction (1) ERCOT This section shall not apply within the area referred to in section 212(k)(2)(A). (2) Other utilities (A) In general For the purposes of this section, the Commission shall have jurisdiction over all transmitting utilities, including transmitting utilities described in section 201(f), but excluding any ERCOT utility (as defined in section 212(k)(2)(B)) and any exempt transmitting utility that does not voluntarily subject itself to Commission jurisdiction for the purposes of this section. (B) Clarification Being subject to Commission jurisdiction for the purposes of this section shall not make an entity described in section 201(f) a public utility for the purposes of section 201(e).. (j) Conforming amendments (1) Section 50151(b) of Public Law 117–169 (42 U.S.C. 18715(b)) is amended by striking facilities designated by the Secretary to be necessary in the national interest under section 216(a) of the Federal Power Act (16 U.S.C. 824p(a)) and inserting facilities in a geographic area identified under section 224 of the Federal Power Act. (2) Section 1222 of the Energy Policy Act of 2005 (42 U.S.C. 16421) is amended— (A) in subsection (a)(1)(A), by striking in a national interest electric transmission corridor designated under section 216(a) and inserting in a geographic area identified under section 224; and (B) in subsection (b)(1)(A), by striking in an area designated under section 216(a) and inserting in a geographic area identified under section 224. (3) Section 40106(h)(1)(A) of the Infrastructure Investment and Jobs Act (42 U.S.C. 18713(h)(1)(A)) is amended by striking in an area designated as a national interest electric transmission corridor pursuant to section 216(a) of the Federal Power Act 16 U.S.C. 824p(a) and inserting in a geographic area identified under section 224 of the Federal Power Act.