STATEMENT: Transmission Provisions in United States’ Proposed Energy Permitting Reform Act Important for U.S. Clean Energy and Climate Goals

STATEMENT: Transmission Provisions in United States' Proposed Energy Permitting Reform Act Important for U.S. Clean Energy and Climate Goals

July 31, 2024

Statement

U.S. Climate North America

WASHINGTON (July 31, 2024) - The U.S. Senate Energy and Natural Resources Committee today is holding a hearing on the Energy Permitting Reform Act of 2024, introduced by Sen. Joe Manchin (D-WV) and Sen. John Barrasso (R-WY). The bipartisan bill contains important provisions to accelerate upgrades and expansion of the U.S. electricity grid to increase grid reliability, address extreme weather events, and enable the buildout of clean energy.

The bill follows the release of the U.S. Federal Energy Regulatory Commission's (FERC) transmission planning and cost allocation rule for the U.S. electricity grid and Department of Energy's (DOE) recent announcement of initial selection of potential National Interest Electric Transmission Corridors (NIETC), which are geographic areas where capacity constraints or grid congestion exist or are expected.

One of the bill's key provisions is a mandate that FERC establish a rule on interregional planning within 180 days of the bill's passage. Such a rule would require transmission planning regions to collaborate on plans for new power lines and would require that they plan lines with substantial economic and reliability value to customers.

Another key provision is to expand FERC's backstop siting authority from projects located inside NIETCs to any project deemed "in the national interest." This would allow transmission developers to appeal to FERC for siting approval in instances where states are unwilling or unable to grant construction permits in a timely manner, expediting the buildout of transmission.

The bill also clarifies cost allocation processes based on economic and reliability benefits and includes important provisions supporting community benefits and grid-enhancing technologies and advanced conductors.

Following is a statement from Lori Bird, Director of WRI's US Energy Program:

"The transmission provisions in the proposed Energy Permitting Reform Act establish a critical framework to enable the United States to expand and upgrade the grid which will help meet the nation's electricity needs and provide more affordable power to all Americans. A number of studies have shown that without improvements to transmission and grid systems, the United States will not be able to meet its climate goals.

"The interregional planning rule in the proposed Energy Permitted Reform Act is an important next step to ensure a sustainable and reliable grid. Interregional transmission has been shown to be the most economically beneficial way to allow large amounts of renewables to come online while improving the grid's resilience and reliability.

"This bill would mandate FERC to issue an order on interregional planning while enshrining its authority to do so - mitigating potential challenges from the recent weakening of the Chevron deference.

"The bill's provisions to clarify the role of FERC in how costs are allocated are critical to ensuring the United States can build new power lines to meet the nation's electricity needs and its climate goals."