Sec. 402. Transmission planning
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Part II of the Federal Power Act ( 16 U.S.C. 824 et seq. ) is amended by adding at the end the following: 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. Not less frequently than once every 3 years, the Secretary, after considering alternatives and recommendations from interested parties (including an opportunity for comment from affected States and Indian Tribes), shall issue a report, based on the study under subsection
(a)or other information relating to electric transmission capacity constraints and congestion, which may identify any geographic area that— is experiencing electric energy transmission capacity constraints or congestion that adversely affects consumers; or is expected to experience such energy transmission capacity constraints or congestion. 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. In this section: The term Commission means the Federal Energy Regulatory Commission. The term ERO has the meaning given the term in section 215(a). 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: facilitating compliance with a mandatory standard for reliability approved by the Commission under section 215; a reduction in expected unserved energy, loss of load hours, or loss of load probability (as defined by the ERO); facilitating compliance with a tariff requirement or process for resource adequacy on file with the Commission; and any other similar material improvement, including a reduction in correlated outage risk, such as achieved through increased geographic or resource diversification. The term interregional transmission facility means a transmission facility that— is located within 2 or more neighboring transmission planning regions; or significantly impacts the ability of 1 or more transmission planning regions to transmit electric energy among neighboring transmission planning regions. The term transmission planning region — 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 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). 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. This section shall not apply within the area referred to in section 212(k)(2)(A). 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)). 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— require neighboring transmission planning regions to jointly plan with each other; require each transmission planning region to submit to the Commission for approval a joint interregional transmission plan 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— a separate joint interregional transmission plan with each of its neighboring transmission planning regions; or 1 or more joint interregional transmission plans, any of which may be submitted with any 1 or more of its neighboring transmission planning regions; and establish rate treatments for interregional transmission planning and cost allocation. The Commission shall require, within the rule under subsection (c), that joint interregional transmission plans contain the following elements: A common set of input assumptions and models, on a consistent timeline, that— allow for the joint identification and selection, by transmission planning regions, of specific interregional transmission facilities for construction or modification, including through the use of advanced transmission conductors (including superconductors) and reconductoring; consider, to the extent reasonable and economical, modifications that maximize the transmission capabilities of existing towers, structures, or rights-of-way; and consider existing transmission plans. A common set of benefits for interregional transmission planning and cost allocation, including— improved reliability; reduced congestion; reduced power losses; greater carrying capacity; reduced operating reserve requirements; and improved access to lower cost generation that achieves reductions in the cost of delivered power. Criteria governing the selection by transmission planning regions, for construction or modification, of interregional transmission facilities that— provide improved reliability; protect or benefit consumers; and are consistent with the public interest. The joint interregional transmission plans required to be submitted to the Commission pursuant to the rule under subsection
(c)shall be— submitted to the Commission not later than 2 years after the date of enactment of this section; and updated not less frequently than once every 4 years. The Commission shall— review each joint interregional transmission plan submitted pursuant to the rule under subsection (c); and approve the joint interregional transmission plan if the Commission finds that the plan— meets the requirements of subsection (d); allocates costs in accordance with subsection (g); ensures that all rates, charges, terms, and conditions will be just and reasonable and not unduly discriminatory or preferential; and is consistent with the public interest. For the purposes of this section, 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. 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, including through the benefits described in subsection (d)(2). 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. For the purposes of obtaining a construction permit under section 216(b), a project that is selected by transmission planning regions pursuant to a joint interregional transmission plan shall be considered to satisfy paragraphs
(2)through
(6)and, if applicable,
(7)of that section. In the event of a dispute between transmission planning regions with respect to a material element of a joint interregional transmission plan— the transmission planning regions shall submit to the Commission their respective proposals for resolving the material element in dispute for resolution; and not later than 60 days after the proposals are submitted under paragraph (1), the Commission shall issue an order directing a resolution to the dispute. In the event that neighboring transmission planning regions fail to submit to the Commission a joint interregional transmission plan under this section, the Commission shall, as the Commission determines to be appropriate— grant a request to extend the time for submission of the joint interregional transmission plan; or require, by order, the transmitting utilities within the affected transmission planning regions to comply with a joint interregional transmission plan approved by the Commission— based on the record of the planning process conducted by the affected transmission planning regions; and in accordance with the cost allocation provisions in subsection (g). For purposes of the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq. )— any approval of a joint interregional transmission plan under subsection
(f)or
(j)or order directing resolution of a dispute under subsection
(i)shall not be considered a major Federal action; and 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. Except as expressly provided in this section, nothing in this section shall be construed as conferring, limiting, or impairing any authority of the Commission under any other provision of law. . Section 201 of the Federal Power Act ( 16 U.S.C. 824 ) is amended— in subsection (b)(2)— in the first sentence, by striking and 222 and inserting 222, and 225 ; and in the second sentence, by striking or 222 and inserting 222, or 225 ; and in subsection (e)— by striking 206(f), ; and by striking or 222 and inserting 222, or 225 . Nothing in this section or an amendment made by this section grants authority to the Federal Energy Regulatory Commission under the Federal Power Act ( 16 U.S.C. 791a et seq. ) over sales of electric energy at retail or the local distribution of electricity.
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- 76 FR 49842
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