Transmission planning

Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is amended by adding at the end the following: 224. Transmission study (a) In general Not later than 1 year after the date of enactment of this section and every 3 years thereafter, the Secretary of Energy (referred to in this section as the Secretary), in consultation with affected States and Indian Tribes, shall conduct a study of electric transmission capacity constraints and congestion. (b) Report (1) In general Not less frequently than once every 3 years, the Secretary shall issue a report based on the study under subsection (a) or other information relating to electric transmission capacity constraints and congestion. (2) Opportunity for comment Before issuing a report under paragraph (1), the Secretary shall— (A) provide an opportunity for comment to affected States and Indian Tribes; and (B) take into consideration any comments received under subparagraph (A) in preparing the report. (3) Identification of areas with capacity constraints and congestion After considering alternatives and recommendations from interested parties (including any comments received from affected States and Indian Tribes), the Secretary may identify in a report issued under paragraph (1) any geographic area that— (A) is experiencing electric energy transmission capacity constraints or congestion that adversely affects consumers; or (B) is expected to experience such energy transmission capacity constraints or congestion. (c) Consultation Not less frequently than once every 3 years, the Secretary, in conducting the study under subsection (a) and issuing the report under subsection (b), shall consult with affected transmission planning regions (as defined in section 225(a)) and any appropriate regional entity referred to in section 215. (d) Alaska The Secretary— (1) shall, in consultation with the State of Alaska and affected Indian Tribes, consider any intrastate transmission capacity constraints and congestion within the State of Alaska in the study under subsection (a); and (2) in issuing the report under subsection (b), may, subject to the approval of the Regulatory Commission of Alaska, identify any geographic area in the State of Alaska that— (A) is experiencing electric energy transmission capacity constraints or congestion that adversely affects consumers; or (B) is expected to experience such energy transmission capacity constraints or congestion. 225. Planning for transmission facilities that enhance grid reliability, affordability, and resilience (a) Definitions In this section: (1) Commission The term Commission means the Federal Energy Regulatory Commission. (2) ERO The term ERO has the meaning given the term in section 215(a). (3) Exempt transmitting utility The term exempt transmitting utility means a transmitting utility that is— (A) a State or any political subdivision of a State; or (B) an electric cooperative that sells less than 4,000,000 megawatt hours of electricity per year. (4) Improved reliability The term improved reliability means that, on balance, considering each of the matters described in subparagraphs (A) through (D), reliability is improved in a material manner that benefits customers through at least one of the following: (A) Facilitating compliance with a mandatory standard for reliability approved by the Commission under section 215. (B) A reduction in expected unserved energy, loss of load hours, or loss of load probability (as defined by the ERO). (C) Facilitating compliance with a tariff requirement or process for resource adequacy on file with the Commission. (D) Any other similar material improvement, including a reduction in correlated outage risk. (5) Interregional transmission facility The term interregional transmission facility means a transmission facility that— (A) is located within 2 or more neighboring transmission planning regions; or (B) significantly impacts the ability of 1 or more transmission planning regions to transmit electric energy among neighboring transmission planning regions. (6) Regional transmission facility The term regional transmission facility means a transmission facility that— (A) is located within 1 transmission planning region; and (B) is not an interregional transmission facility. (7) Transmission planning region (A) In general The term transmission planning region — (i) when used in a geographical sense, means a region for which the Commission determines that electric transmission planning is appropriate, such as a region established in accordance with Order No. 1000 of the Commission, entitled Transmission Planning and Cost Allocation by Transmission Owning and Operating Public Utilities (76 Fed. Reg. 49842 (August 11, 2011)); and (ii) when used in a corporate sense, means the Transmission Organization or other entity responsible for planning or operating electric transmission facilities within a region described in clause (i). (B) Exclusion The term transmission planning region does not include the Electric Reliability Council of Texas or the region served by members of the Electric Reliability Council of Texas. (b) 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). (c) Rulemaking requirement Not later than 180 days after the date of enactment of this section, the Commission shall, consistent with the requirements of this section, by rule— (1) require each transmission planning region to establish a process for planning for regional transmission facilities in accordance with this section; (2) require neighboring transmission planning regions to jointly establish a process for planning interregional transmission facilities in accordance with this section; (3) require each transmission planning region to submit to the Commission for approval— (A) a regional transmission planning process; and (B) a joint interregional transmission planning process with each of its neighboring transmission planning regions, which requirement may, at the discretion of the transmission planning region, be satisfied through the submission of— (i) a separate joint interregional transmission planning process with each of its neighboring transmission planning regions; or (ii) 1 or more joint interregional transmission planning processes, any of which may be submitted with any 1 or more of its neighboring transmission planning regions; and (4) establish rate treatments for regional and interregional transmission planning and cost allocation. (d) Transmission planning process elements The Commission shall require, within the rule under subsection (c), that regional and joint interregional transmission planning processes contain the following elements: (1) Compatibility A common set of input assumptions and models, on a consistent timeline, that— (A) allow for the joint identification and selection of specific interregional transmission facilities, and individual identification and selection of specific regional transmission facilities, by transmission planning regions, for construction or modification, including through the use of advanced transmission conductors (including superconductors) and reconductoring; (B) consider, to the extent reasonable and economical, modifications that maximize the transmission capabilities of existing towers, structures, or rights-of-way; and (C) consider interactions with existing regional, interregional, and supplemental transmission plans and planning processes. (2) Transmission benefits A common set of benefits for regional and interregional transmission planning and cost allocation, including— (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. (3) Selection criteria Criteria governing the selection by transmission planning regions, for construction or modification, of regional and interregional transmission facilities that— (A) provide improved reliability; (B) protect or benefit consumers; and (C) are consistent with the public interest. (e) Deadline; updates The regional and joint interregional transmission planning processes required to be submitted to the Commission pursuant to the rule under subsection (c) shall be— (1) submitted to the Commission not later than 2 years after the date of enactment of this section; and (2) updated not less frequently than once every 4 years. (f) Commission review The Commission shall— (1) review each regional and joint interregional transmission planning process submitted pursuant to the rule under subsection (c); and (2) approve the regional or joint interregional transmission planning process if the Commission finds that the process— (A) meets the requirements of subsection (d); (B) allocates costs in accordance with subsection (g); (C) ensures that all rates, charges, terms, and conditions will be just and reasonable and not unduly discriminatory or preferential; and (D) is consistent with the public interest. (g) 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 constructed or modified as a result of this section 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 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) Requirement 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 the benefits described in subsection (d)(2). (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. (h) Compliance Compliance with a Commission order or rulemaking effective as of the date of enactment of this section, including orders published in the Federal Register on April 28, 2025, December 6, 2024, and June 11, 2024, shall constitute compliance with the regional transmission planning and cost allocation requirements of this section. (i) Construction permit For the purposes of obtaining a construction permit under section 216(b), a project that is selected by 1 or more transmission planning regions pursuant to a regional or joint interregional transmission plan in accordance with this section shall be considered to satisfy paragraphs (2) through (5) and, if applicable, (6) of that section. (j) Failure To submit planning process In the event that neighboring transmission planning regions (in the case of an interregional planning process) or a single planning region (in the case of a regional planning process) fails to submit to the Commission a regional or joint interregional transmission planning process, as applicable, under this section, the Commission shall, as the Commission determines to be appropriate, grant a request to extend the time for submission of the planning process for not more than 6 months after the deadline the Commission requires for compliance with the rule under subsection (c). (k) NEPA For purposes of the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.)— (1) any approval of a regional or joint interregional transmission planning process under subsection (f) shall not be considered a major Federal action; and (2) any permit granted under section 216(b) for a project that is selected by transmission planning regions pursuant to a joint interregional transmission plan shall be considered a major Federal action..