Advanced transmission technologies

(a) In general Part II of the Federal Power Act (16 U.S.C. 824 et seq.) (as amended by section 2108(d)) is amended by adding at the end the following: 231. Use of advanced transmission technologies (a) Definitions In this section: (1) Advanced transmission technology The term advanced transmission technology has the meaning given the term in section 1223(a) of the Energy Policy Act of 2005 (42 U.S.C. 16422(a)). (2) Best-available transmission conductor The term best-available transmission conductor means a transmission conductor that, as determined by the Commission— (A) provides the greatest feasible and commercially available energy-carrying capacity at a given voltage level; (B) provides the highest feasible and commercially available electrical efficiency at that voltage level; and (C) provides the greatest available level of mechanical performance, including mitigating thermal sag at the maximum rated transmission-carrying capacity of the applicable transmission facility. (3) Commission The term Commission means the Federal Energy Regulatory Commission. (4) Covered project The term covered project means the construction of a new transmission facility, or the modification, upgrade, replacement, or reconductoring of an existing transmission facility, subject to the jurisdiction of the Commission under section 201(b). (b) Use of advanced transmission technologies In exercising its authority under sections 205 and 206, the Commission shall require that public utilities use advanced transmission technologies, including best-available transmission conductors, when carrying out covered projects. (c) Presumption of prudence for advanced transmission technologies In any filing seeking to recover the cost of an advanced transmission technology for a covered project, and in any proceeding to determine whether that cost may be recovered through rates, the Commission shall presume that— (1) the use of an advanced transmission technology is a prudent practice; and (2) the costs associated with the use of an advanced transmission technology are just and reasonable. (d) Applicability The requirements of this section apply only to public utilities and only with respect to covered projects. (e) Rulemaking (1) In general Not later than 1 year after the date of enactment of this section, the Commission shall issue an order or rule to implement this section. (2) Requirements In issuing an order or rule under paragraph (1), the Commission shall— (A) require that public utilities conduct, on Commission-established timelines, recurring evaluations— (i) to determine whether the benefits associated with deploying advanced transmission technologies through 1 or more covered projects, including benefits to the current transmission system of the applicable public utility, outweigh the costs (such that the applicable benefit-cost ratio is greater than 1); (ii) that include a least-cost analysis with respect to the transmission system of the applicable public utility; and (iii) that evaluate whether the costs for which recovery is sought reflect due care to minimize the total cost of the applicable covered projects; (B) require public utilities to conduct, on Commission-established timelines, recurring evaluations to consider planning and construction timelines for new transmission assets and risks and impacts of potential delays; (C) require that, if the benefits of 1 or more advanced transmission technologies outweigh the costs (such that the applicable benefit-cost ratio is greater than 1), the applicable public utility shall deploy the advanced transmission technologies on a timeline determined by the Commission; (D) require that decisions on whether to implement advanced transmission technologies based on the recurring evaluations under subparagraphs (A) and (B) are reported to the Commission, in a manner determined by the Commission; (E) in consultation with the Secretary of Energy, establish a methodology for determining whether a transmission conductor is a best-available transmission conductor for purposes of this section; (F) ensure that the methodology established under subparagraph (E) is consistent with the criteria described in clauses (i) through (iii) of subparagraph (A); (G) provide for periodic review and updating of the methodology established under subparagraph (E) not less frequently than annually to reflect improvements in technology, materials, and system performance; and (H) determine a penalty for any public utility that fails to deploy the relevant advanced transmission technologies when the applicable benefit-cost ratio is greater than 1 in a timeframe determined by the Commission, including a reduction of the effective return on equity for the transmission system of the public utility.. (b) Definition of advanced transmission technology Section 1223(a) of the Energy Policy Act of 2005 (42 U.S.C. 16422(a)) is amended— (1) in paragraph (18), by striking and at the end; (2) by redesignating paragraph (19) as paragraph (23); and (3) by inserting after paragraph (18) the following: (19) dynamic line rating; (20) advanced power flow control; (21) transmission topology optimization; (22) high-performance conductors; and.