Interstate Transmission Act - Amends the Federal Power Act to direct the Federal Energy Regulatory Commission (FERC) to establish, by rule, incentive-based, performance-based, participant-funded, and cost-based rate treatments for the transmission of electric energy in interstate commerce by public utilities.
Grants FERC jurisdiction over an Electric Reliability Organization (ERO) certified by FERC, regional entities, and all users, owners, and operators of the bulk-power system, for purposes of approving reliability standards and enforcing compliance with this Act.
Prescribes guidelines for ERO certification and reliability standards.
Urges the President to negotiate international agreements with the governments of Canada and Mexico to provide for: (1) effective compliance with reliability standards; and (2) the effectiveness of the ERO in the United States and Canada or Mexico.
Instructs FERC to establish a regional advisory body on the petition of at least two-thirds of the States within a region that have more than one-half of their electric load served within the region.
Exempts Hawaii and Alaska from application of electric reliability standards under this Act.
Repeals the requirement for FERC prior authorization of the disposition of public utility facilities.
Prescribes FERC preferences for the formation of a transmission organization.
Prescribes guidelines for the designation as a national interest electric transmission corridor of any geographic area experiencing or likely to experience electric energy transmission capacity constraints or congestion that adversely affects consumers.
Grants FERC permitting authority for the construction or modification of electric transmission facilities in a national interest electric transmission corridor.
Grants the consent of Congress to three or more contiguous States to enter into an interstate compact establishing regional transmission siting agencies to facilitate siting of future electric energy transmission facilities within such States and to carry out the electric energy transmission siting responsibilities of such States.
Amends the Internal Revenue Code to treat electric transmission property as 15-year property for depreciation income tax deduction purposes under the accelerated cost recovery system.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1481 Introduced in House (IH)]
109th CONGRESS
1st Session
H. R. 1481
To ensure reliability of electric service to provide for expansion of
electricity transmission networks in order to support competitive
electricity markets to modernize regulation, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 5, 2005
Mr. Wynn (for himself and Mrs. Myrick) introduced the following bill;
which was referred to the Committee on Energy and Commerce, and in
addition to the Committee on Ways and Means, for a period to be
subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee
concerned
_______________________________________________________________________
A BILL
To ensure reliability of electric service to provide for expansion of
electricity transmission networks in order to support competitive
electricity markets to modernize regulation, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Interstate
Transmission Act''.
(b) Table of Contents.--The table of contents is as follows:
Sec. 1. Short title and table of contents.
Sec. 2. Findings.
Sec. 3. Transmission infrastructure investment.
Sec. 3. Electric reliability standards.
Sec. 5. Disposition of property.
Sec. 6. Regional transmission organizations.
Sec. 7. Siting of interstate electric transmission facilities.
Sec. 8. Electric transmission property treated as 15-year property.
SEC. 2. FINDINGS.
Congress finds as follows:
(1) The expansion, enhancement, and improvement of
transmission facilities are necessary to maintain and improve
reliability of electric service.
(2) Transmission networks are the backbone of reliable
delivery of electric energy, increased interstate commerce in
electricity, and competitive power markets.
(3) Wholesale electric competition, already in effect
across the nation, and retail electric competition, adopted by
nearly half of the States, depend on adequate transmission
networks to benefit electric consumers.
(4) To maintain and improve reliability of electric service
and support competitive power markets, the economics of the
business of electric transmission and the regulatory structures
applicable thereto must be improved.
SEC. 3. TRANSMISSION INFRASTRUCTURE INVESTMENT.
Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is
amended by adding at the end the following:
``SEC. 215. TRANSMISSION INFRASTRUCTURE INVESTMENT.
``(a) Rulemaking Requirement.--Within 1 year after enactment of
this section, the Commission shall establish, by rule, incentive-based,
performance-based, participant-funded, and cost-based (including, but
not limited to performance-based) rate treatments for the transmission
of electric energy in interstate commerce by public utilities to
benefit consumers by ensuring reliability and reducing the cost of
delivered power by reducing transmission congestion. Such rule shall--
``(1) promote reliable and economically efficient
transmission and generation of electricity by promoting capital
investment in the enlargement, improvement, maintenance and
operation of facilities for the transmission of electric energy
in interstate commerce;
``(2) provide a return on equity that attracts new
investment in transmission facilities (including related
transmission technologies);
``(3) encourage deployment of transmission technologies and
other measures to increase the capacity and efficiency of
existing transmission facilities and improve the operation of
such facilities; and
``(4) allow recovery of all prudently incurred costs
necessary to comply with mandatory reliability standards issued
pursuant to section 216 of this Act.
The Commission may, from time to time, revise such rule.
``(b) Transmission Rates and RTO Participation.-- The Commission
shall provide for--
``(1) recovery of all prudently incurred costs to develop
and participate in any proposed or approved RTO, ISO, or
independent transmission company;
``(2) recovery of all costs previously approved by a State
commission which exercised jurisdiction over the transmission
facilities prior to the utility's participation in the RTO or
ISO, including costs necessary to honor preexisting
transmission service contracts, in a manner which does not
reduce the revenues the utility receives for transmission
services for a reasonable transition period after the utility
joins the RTO or ISO;
``(3) recovery as an expense in rates of the costs
prudently incurred to conduct transmission planning and
reliability activities, including the costs of participating in
RTO, ISO and other regional planning activities and design,
study and other precertification costs involved in seeking
permits and approvals for proposed transmission facilities;
``(4) a current return in rates for construction work in
progress for transmission facilities and full recovery of
prudently incurred costs for constructing transmission
facilities;
``(5) recovery of all prudently incurred capital,
operation, and maintenance costs, and other costs necessary to
operate and maintain transmission service, including generation
and transmission based ancillary services and taxes;
``(6) various rate structures, including formula
transmission rates; and
``(7) a maximum 15 year accelerated book depreciation on
new transmission facilities for rate treatment purposes.
The Commission shall ensure that any costs recoverable pursuant to this
subsection may be recovered by such utility through the transmission
rates charged by such utility or through the transmission rates charged
by the RTO or ISO that provides transmission service to such utility.
``(c) Just and Reasonable Rates.--All rates approved under the
rules adopted pursuant to this section, including any revisions to such
rules, are subject to the requirement of sections 205 and 206 that all
rates, charges, terms, and conditions be just and reasonable and not
unduly discriminatory or preferential.''.
SEC. 4. ELECTRIC RELIABILITY STANDARDS.
(a) In General.--Part II of the Federal Power Act (16 U.S.C. 824 et
seq.) is amended by adding the following new section at the end
thereof:
``SEC. 216. ELECTRIC RELIABILITY.
``(a) Definitions.--For purposes of this section--
``(1) The term `bulk-power system' means--
``(A) facilities and control systems necessary for
operating an interconnected electric energy
transmission network (or any portion thereof); and
``(B) electric energy from generation facilities
needed to maintain transmission system reliability.
The term does not include facilities used in the local
distribution of electric energy.
``(2) The terms `Electric Reliability Organization' and
`ERO' mean the organization certified by
``(3) The term `reliability standard' means a requirement,
approved by the Commission under this section, to provide for
reliable operation of the bulk-power system. The term includes
requirements for the operation of existing bulk-power system
facilities and the design of planned additions or modifications
to such facilities to the extent necessary to provide for
reliable operation of the bulk-power system, but the term does
not include any requirement to enlarge such facilities or to
construct new transmission capacity or generation capacity.
``(4) The term `reliable operation' means operating the
elements of the bulk-power system within equipment and electric
system thermal, voltage, and stability limits so that
instability, uncontrolled separation, or cascading failures of
such system will not occur as a result of a sudden disturbance
or unanticipated failure of system elements.
``(5) The term `Interconnection' means a geographic area in
which the operation of bulk-power system components is
synchronized such that the failure of one or more of such
components may adversely affect the ability of the operators of
other components within the system to maintain reliable
operation of the facilities within their control.
``(6) The term `transmission organization' means a regional
transmission organization, independent system operator,
independent transmission provider, or other transmission
organization finally approved by the Commission for the
operation of transmission facilities.
``(7) The term `regional entity' means an entity having
enforcement authority pursuant to subsection (e)(4).
the Commission under subsection (c) the purpose of which is to
establish and enforce reliability standards for the bulk-power system,
subject to Commission review.
``(b) Jurisdiction and Applicability.--(1) The Commission shall
have jurisdiction, within the United States, over the ERO certified by
the Commission under subsection (c), any regional entities, and all
users, owners, and operators of the bulk-power system, including but
not limited to the entities described in section 201(f), for purposes
of approving reliability standards established under this section and
enforcing compliance with this section. All users, owners, and
operators of the bulk-power system shall comply with reliability
standards that take effect under this section.
``(2) The Commission shall issue a final rule to implement the
requirements of this section not later than 180 days after the date of
enactment of this section.
``(c) Certification.--Following the issuance of a Commission rule
under subsection (b)(2), any person may submit an application to the
Commission for certification as the Electric Reliability Organization
(ERO). The Commission may certify one such ERO if the Commission
determines that such ERO--
``(1) has the ability to develop and enforce, subject to
subsection (e)(2), reliability standards that provide for an
adequate level of reliability of the bulk-power system; and
``(2) has established rules that--
``(A) assure its independence of the users and
owners and operators of the bulk-power system, while
assuring fair stakeholder representation in the
selection of its directors and balanced decisionmaking
in any ERO committee or subordinate organizational
structure;
``(B) allocate equitably reasonable dues, fees, and
other charges among end users for all activities under
this section;
``(C) provide fair and impartial procedures for
enforcement of reliability standards through the
imposition of penalties in accordance with subsection
(e) (including limitations on activities, functions, or
operations, or other appropriate sanctions);
``(D) provide for reasonable notice and opportunity
for public comment, due process, openness, and balance
of interests in developing reliability standards and
otherwise exercising its duties; and
``(E) provide for taking, after certification,
appropriate steps to gain recognition in Canada and
Mexico.
``(d) Reliability Standards.--(1) The Electric Reliability
Organization shall file each reliability standard or modification to a
reliability standard that it proposes to be made effective under this
section with the Commission.
``(2) The Commission may approve by rule or order a proposed
reliability standard or modification to a reliability standard if it
determines that the standard is just, reasonable, not unduly
discriminatory or preferential, and in the public interest. The
Commission shall give due weight to the technical expertise of the
Electric Reliability Organization with respect to the content of a
proposed standard or modification to a reliability standard and to the
technical expertise of a regional entity organized on an
Interconnection-wide basis with respect to a reliability standard to be
applicable within that Interconnection, but shall not defer with
respect to the effect of a standard on competition. A proposed standard
or modification shall take effect upon approval by the Commission.
``(3) The Electric Reliability Organization shall rebuttably
presume that a proposal from a regional entity organized on an
Interconnection-wide basis for a reliability standard or modification
to a reliability standard to be applicable on an Interconnection-wide
basis is just, reasonable, and not unduly discriminatory or
preferential, and in the public interest.
``(4) The Commission shall remand to the Electric Reliability
Organization for further consideration a proposed reliability standard
or a modification to a reliability standard that the Commission
disapproves in whole or in part.
``(5) The Commission, upon its own motion or upon complaint, may
order the Electric Reliability Organization to submit to the Commission
a proposed reliability standard or a modification to a reliability
standard that addresses a specific matter if the Commission considers
such a new or modified reliability standard appropriate to carry out
this section.
``(6) The final rule adopted under subsection (b)(2) shall include
fair processes for the identification and timely resolution of any
conflict between a reliability standard and any function, rule, order,
tariff, rate schedule, or agreement accepted, approved, or ordered by
the Commission applicable to a transmission organization. Such
transmission organization shall continue to comply with such function,
rule, order, tariff, rate schedule, or agreement accepted, approved, or
ordered by the Commission until--
``(A) the Commission finds a conflict exists between a
reliability standard and any such provision;
``(B) the Commission orders a change to such provision
pursuant to section 206 of this part; and
``(C) the ordered change becomes effective under this part.
If the Commission determines that a reliability standard needs to be
changed as a result of such a conflict, it shall order the ERO to
develop and file with the Commission a modified reliability standard
under paragraph (4) or (5) of this subsection.
``(e) Enforcement.--(1) The ERO may impose, subject to paragraph
(2), a penalty on a user or owner or operator of the bulk-power system
for a violation of a reliability standard approved by the Commission
under subsection (d) if the ERO, after notice and an opportunity for a
hearing--
``(A) finds that the user or owner or operator has violated
a reliability standard approved by the Commission under
subsection (d); and
``(B) files notice and the record of the proceeding with
the Commission.
``(2) A penalty imposed under paragraph (1) may take effect not
earlier than the 31st day after the electric reliability organization
files with the Commission notice of the penalty and the record of
proceedings. Such penalty shall be subject to review by the Commission,
on its own motion or upon application by the user, owner, or operator
that is the subject of the penalty filed within 30 days after the date
such notice is filed with the Commission. Application to the Commission
for review, or the initiation of review by the Commission on its own
motion, shall not operate as a stay of such penalty unless the
Commission otherwise orders upon its own motion or upon application by
the user, owner, or operator that is the subject of such penalty. In
any proceeding to review a penalty imposed under paragraph (1), the
Commission, after notice and opportunity for hearing (which hearing may
consist solely of the record before the electric reliability
organization and opportunity for the presentation of supporting reasons
to affirm, modify, or set aside the penalty), shall by order affirm,
set aside, reinstate, or modify the penalty, and, if appropriate,
remand to the electric reliability organization for further
proceedings. The Commission shall implement expedited procedures for
such hearings.
``(3) On its own motion or upon complaint, the Commission may order
compliance with a reliability standard and may impose a penalty against
a user or owner or operator of the bulk-power system, if the Commission
finds, after notice and opportunity for a hearing, that the user or
owner or operator of the bulk-power system has engaged or is about to
engage in any acts or practices that constitute or will constitute a
violation of a reliability standard.
``(4) The Commission shall establish regulations authorizing the
ERO to enter into an agreement to delegate authority to a regional
entity for the purpose of proposing reliability standards to the ERO
and enforcing reliability standards under paragraph (1) if--
``(A) the regional entity is governed by--
``(i) an independent board;
``(ii) a balanced stakeholder board; or
``(iii) a combination independent and balanced
stakeholder board;
``(B) the regional entity otherwise satisfies the
provisions of subsection (c)(1) and (2); and
``(C) the agreement promotes effective and efficient
administration of bulk-power system reliability.
The Commission may modify such delegation. The ERO and the Commission
shall rebuttably presume that a proposal for delegation to a regional
entity organized on an Interconnection-wide basis promotes effective
and efficient administration of bulk-power system reliability and
should be approved. Such regulation may provide that the Commission may
assign the ERO's authority to enforce reliability standards under
paragraph (1) directly to a regional entity consistent with the
requirements of this paragraph.
``(5) The Commission may take such action as is necessary or
appropriate against the ERO or a regional entity to ensure compliance
with a reliability standard or any Commission order affecting the ERO
or a regional entity.
``(6) Any penalty imposed under this section shall bear a
reasonable relation to the seriousness of the violation and shall take
into consideration the efforts of such user, owner, or operator to
remedy the violation in a timely manner.
``(f) Changes in Electricity Reliability Organization Rules.--The
Electric Reliability Organization shall file with the Commission for
approval any proposed rule or proposed rule change, accompanied by an
explanation of its basis and purpose. The Commission, upon its own
motion or complaint, may propose a change to the rules of the Electric
Reliability Organization. A proposed rule or proposed rule change shall
take effect upon a finding by the Commission, after notice and
opportunity for comment, that the change is just, reasonable, not
unduly discriminatory or preferential, is in the public interest, and
satisfies the requirements of subsection (c).
``(g) Reliability Reports.--The Electric Reliability Organization
shall conduct periodic assessments of the reliability and adequacy of
the bulk-power system in North America.
``(h) Coordination With Canada and Mexico.--The President is urged
to negotiate international agreements with the governments of Canada
and Mexico to provide for effective compliance with reliability
standards and the effectiveness of the Electric Reliability
Organization in the United States and Canada or Mexico.
``(i) Savings Provisions.--(1) The Electric Reliability
Organization shall have authority to develop and enforce compliance
with reliability standards for only the bulk-power system.
``(2) This section does not authorize the Electric Reliability
Organization or the Commission to order the construction of additional
generation or transmission capacity or to set and enforce compliance
with standards for adequacy or safety of electric facilities or
services.
``(3) Nothing in this section shall be construed to preempt any
authority of any State to take action to ensure the safety, adequacy,
and reliability of electric service within that State, as long as such
action is not inconsistent with any reliability standard, except that
the State of New York may establish rules that result in greater
reliability within that State, as long as such action does not result
in lesser reliability outside the State than that provided by the
reliability standards.
``(4) Within 90 days of the application of the Electric Reliability
Organization or other affected party, and after notice and opportunity
for comment, the Commission shall issue a final order determining
whether a State action is inconsistent with a reliability standard,
taking into consideration any recommendation of the Electric
Reliability Organization.
``(5) The Commission, after consultation with the Electric
Reliability Organization and the State taking action, may stay the
effectiveness of any State action, pending the Commission's issuance of
a final order.
``(j) Regional Advisory Bodies.--The Commission shall establish a
regional advisory body on the petition of at least two-thirds of the
States within a region that have more than one-half of their electric
load served within the region. A regional advisory body shall be
composed of one member from each participating State in the region,
appointed by the Governor of each State, and may include
representatives of agencies, States, and provinces outside the United
States. A regional advisory body may provide advice to the Electric
Reliability Organization, a regional entity, or the Commission
regarding the governance of an existing or proposed regional entity
within the same region, whether a standard proposed to apply within the
region is just, reasonable, not unduly discriminatory or preferential,
and in the public interest, whether fees proposed to be assessed within
the region are just, reasonable, not unduly discriminatory or
preferential, and in the public interest and any other responsibilities
requested by the Commission. The Commission may give deference to the
advice of any such regional advisory body if that body is organized on
an Interconnection-wide basis.
``(k) Application to Alaska and Hawaii.--The provisions of this
section do not apply to Alaska or Hawaii.''.
(b) Status of ERO.--The Electric Reliability Organization certified
by the Federal Energy Regulatory Commission under section 215(c) of the
Federal Power Act and any regional entity delegated enforcement
authority pursuant to section 215(e)(4) of that Act are not
departments, agencies, or instrumentalities of the United States
Government.
SEC. 5. DISPOSITION OF PROPERTY.
Section 203 of the Federal Power Act (16 U.S.C. 824b) is repealed.
SEC. 6. REGIONAL TRANSMISSION ORGANIZATIONS.
Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is
amended by adding at the end thereof the following new section:
``SEC. 217. REGIONAL TRANSMISSION ORGANIZATIONS.
``(a) In General.--Among options for the formation of a
transmission organization, the Commission shall prefer those in which--
``(1) participation in the organization by transmitting
utilities is voluntary;
``(2) the form, structure, and operating entity of the
organization are approved of by participating transmitting
utilities; and
``(3) market incentives exist to promote investment for
expansion of transmission facilities and for the introduction
of new transmission technologies within the territory of the
organization.
``(b) Conditions.--No order issued under this Act shall require or
shall be conditioned upon a requirement that a transmitting utility
transfer control of jurisdictional facilities to a regional
transmission organization.''.
SEC. 7. SITING OF INTERSTATE ELECTRIC TRANSMISSION FACILITIES.
(a) Amendment of Federal Power Act.--Part II of the Federal Power
Act is amended by adding at the end the following:
``SEC. 218. SITING OF INTERSTATE ELECTRIC TRANSMISSION FACILITIES.
``(a) Designation of National Interest Electric Transmission
Corridors.--
``(1) Transmission congestion study.--Within 1 year after
the enactment of this section, and no less frequently than
every 3 years thereafter, the Secretary of Energy, in
consultation with affected States, shall conduct a study of
electric transmission congestion. After considering
alternatives and recommendations from interested parties,
including an opportunity for comment from affected States, the
Secretary shall issue a report, based on such study, which may
designate any geographic area experiencing or likely to
experience electric energy transmission capacity constraints or
congestion that adversely affects consumers as a national
interest electric transmission corridor. The Secretary shall
rely upon information provided by regional transmission
organizations developed in conjunction with States through
regional transmission organization planning processes,
information provided by State public utility commissions, and
such other information about transmission constraints,
reliability, and prices for electric energy as the Secretary
deems appropriate.
``(2) Considerations.--In determining whether to designate
a national interest electric transmission corridor referred to
in paragraph (1) under this section, the Secretary shall
consider, among other factors, the effect of additional
transmission capacity on reliability, energy markets, economic
growth, and national security.
``(b) Construction Permit.--Except as provided in subsection (i),
the Commission is authorized, upon its own motion or upon request,
after notice and an opportunity for hearing, to issue a permit or
permits for the construction or modification of electric transmission
facilities in a national interest electric transmission corridor
designated by the secretary under subsection (a) if the Commission
finds that_
``(1)(A) a State in which the transmission facilities are
to be constructed or modified is without authority to--
``(i) approve the siting of the facilities; or
``(ii) consider the interstate benefits expected to
be achieved by the proposed construction or
modification of transmission facilities in the State;
``(B) the applicant for a permit is a transmitting utility
under this Act but does not qualify to apply for a permit or
siting approval for the proposed project in a State because the
applicant does not serve end-use customers in the State; or
``(C) a State commission or other entity that has authority
to approve the siting of the facilities has--
``(i) withheld approval for more than 1 year after
the filing of an application pursuant to applicable law
seeking approval or 1 year after the designation of the
relevant national interest electric transmission
corridor, whichever is later; or
``(ii) conditioned its approval in such a manner
that the proposed construction or modification will not
significantly reduce transmission congestion in
interstate commerce or is not economically feasible;
``(2) the facilities to be authorized by the permit will be
used for the transmission of electric energy in interstate
commerce;
``(3) the proposed construction or modification is
consistent with the public interest; and
``(4) the proposed construction or modification will
significantly reduce transmission congestion in interstate
commerce and protects or benefits consumers.
``(c) Permit Applications.--Applications for permits to be issued
pursuant to subsection (b) shall be made in writing to the Commission.
The Commission shall issue rules setting forth the form of the
application, the information to be contained in the application, and
the manner of service of notice of the permit application upon
interested persons.
``(d) Comments.--The Commission shall afford each State in which a
transmission facility covered by the permit to be issued under
subsection (b) 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.
``(e) Rights-of-Way.--In the case of a permit under subsection (b)
for electric transmission facilities to be located on property other
than property owned by the United States or a State, if the permit
holder cannot acquire by contract, or is unable to agree with the owner
of the property to the compensation to be paid for, the necessary
right-of-way to construct or modify such transmission facilities, the
permit holder may acquire the right-of-way by the exercise of the right
of eminent domain in the district court of the United States for the
district in which the property concerned is located, or in the
appropriate court of the State in which the property is located. The
practice and procedure in any action or proceeding for that purpose in
the district court of the United States shall conform as nearly as may
be with the practice and procedure in similar action or proceeding in
the courts of the State where the property is situated.
``(f) State Law.-- Nothing in this section shall preclude any
person from constructing or modifying any transmission facility
pursuant to State law.
``(g) Coordination of Federal Authorizations for Transmission and
Distribution Facilities.--
``(1) Lead agency.--If an applicant, or prospective
applicant, for a Federal authorization related to an electric
transmission or distribution facility so requests, the
Secretary of Energy (DOE) shall act as the lead agency for
purposes of coordinating and assuring expeditious processing of
all applicable Federal authorizations and related environmental
reviews of the facility. For purposes of this subsection, the
term `Federal authorization' means any authorization required
under Federal law in order to site a transmission or
distribution facility, including but not limited to such
permits, special use authorizations, certifications, opinions,
or other approvals as may be required, whether issued by a
Federal or a State agency. To the maximum extent practicable
under applicable Federal law, the Secretary of Energy shall
coordinate this Federal authorization and review process with
any Indian tribes, multi-State entities, and State agencies
that are responsible for conducting any separate permitting and
environmental reviews of the facility, to ensure timely and
efficient review and permit decisions.
``(2) Authority to set deadlines.--As lead agency, the
Secretary of Energy shall establish prompt and binding
intermediate milestones and deadlines for the review of, and
decisions relating to, the proposed facility, to enable
completion of such review and decisions within one year of the
request that the Secretary serve as lead agency. The Secretary
of Energy also shall provide an expeditious pre-application
mechanism for prospective applicants to confer with the
agencies involved to have each such agency determine and
communicate to the prospective applicant within 60 days of when
the prospective applicant submits a request for such
information concerning the likelihood of approval for a
potential facility, and key issues of concern to the agencies
and public.
``(3) Consolidated environmental review and record of
decision.--As lead agency head, the Secretary of Energy, in
consultation with the affected agencies, shall prepare a single
environmental review document, which shall be used as the basis
for all decisions on the proposed project under Federal law.
The document may be an environmental assessment or
environmental impact statement under the National Environmental
Policy Act of 1969 if warranted, or such other form of analysis
as may be warranted. The Secretary of Energy and the heads of
other agencies shall streamline the review and permitting of
transmission and distribution facilities within corridors
designated under section 503 of the Federal Land Policy and
Management Act (43 U.S.C. 1763) by fully taking into account
prior analyses and decisions relating to the corridors. Such
document shall include consideration by the relevant agencies
of any applicable criteria or other matters as required under
applicable laws.
``(4) Appeals.--In the event that any agency has denied a
Federal authorization required for a transmission or
distribution facility, or has failed to act by the deadline
established by the Secretary pursuant to this section for
deciding whether to issue the authorization, the applicant or
any State in which the facility would be located may file an
appeal with the Secretary, who shall, in consultation with the
affected agency, review the denial or take action on the
pending application. Based on the overall record and in
consultation with the affected agency, the Secretary shall
within 90 days issue the necessary authorization with any
appropriate conditions, or deny the appeal. In making a
decision under this paragraph, the Secretary shall comply with
applicable requirements of Federal law, including any
requirements of the Endangered Species Act, the Clean Water
Act, the National Forest Management Act, the National
Environmental Policy Act of 1969, and the Federal Land Policy
and Management Act.
``(5) Conforming regulations and memoranda of
understanding.--Not later than 18 months after the date of
enactment of this section, the Secretary of Energy shall issue
regulations necessary to implement this subsection. Not later
than 1 year after the date of enactment of this section, the
Secretary and the heads of Federal agencies with authority to
issue Federal authorizations shall enter into Memoranda of
Understanding to implement this section.
``(6) Duration and renewal.--Each Federal land use
authorization for an electricity transmission or distribution
facility shall be issued--
``(A) for a duration, as determined by the
Secretary of Energy, commensurate with the anticipated
use of the facility, and
``(B) with appropriate authority to manage the
right-of-way for reliability and environmental
protection.
Upon the expiration of any such authorization (including an
authorization issued prior to enactment of this section), the
authorization shall be reviewed for renewal taking fully into
account reliance on such electricity infrastructure,
recognizing its importance for public health, safety and
economic welfare and as a legitimate use of Federal lands.
``(7) Maintaining and enhancing the transmission
infrastructure.--In exercising the responsibilities under this
section, the Secretary of Energy shall consult regularly with
the Federal Energy Regulatory Commission (FERC) and owners and
operators of electric transmission and distribution facilities.
``(h) Interstate Compacts.--The consent of Congress is hereby given
for 3 or more contiguous States to enter into an interstate compact,
subject to approval by Congress, establishing regional transmission
siting agencies to facilitate siting of future electric energy
transmission facilities within such States and to carry out the
electric energy transmission siting responsibilities of such States.
The Secretary of Energy may provide technical assistance to regional
transmission siting agencies established under this subsection. Such
regional transmission siting agencies shall have the authority to
review, certify, and permit siting of transmission facilities,
including facilities in national interest electric transmission
corridors (other than facilities on property owned by the United
States). The Commission shall have no authority to issue a permit for
the construction or modification of electric transmission facilities
within a State that is a party to a compact, unless the members of a
compact are in disagreement and the Secretary makes, after notice and
an opportunity for a hearing, the finding described in section
(b)(1)(C).
``(i) Savings Clause.--Nothing in this section shall be construed
to affect any requirement of the environmental laws of the United
States, including, but not limited to, the National Environmental
Policy Act of 1969. Subsection (h)(3) of this section shall not apply
to any Congressionally-designated components of the National Wilderness
Preservation System, the National Wild and Scenic Rivers System, or the
National Park system (including National Monuments therein).
``(j) Ercot.--This section shall not apply within the area referred
to in section 212(k)(2)(A).''.
(b) Reports to Congress on Corridors and Rights of Way on Federal
Land.--The Secretary of the Interior, the Secretary of Energy, the
Secretary of Agriculture, and the Chairman of the Council on
Environmental Quality shall, within 90 days of the date of enactment of
this subsection, submit a joint report to Congress identifying each of
the following:
(1) All existing designated transmission and distribution
corridors on Federal land and the status of work related to
proposed transmission and distribution corridor designations
under Title V of the Federal Land Policy and Management Act (43
U.S.C. 1761 et. Seq.), the schedule for completing such work,
any impediments to completing the work, and steps that Congress
could take to expedite the process.
(2) The number of pending applications to locate
transmission and distribution facilities on Federal lands, key
information relating to each such facility, how long each
application has been pending, the schedule for issuing a timely
decision as to each facility, and progress in incorporating
existing and new such rights-of-way into relevant land use and
resource management plans or their equivalent.
(3) The number of existing transmission and distribution
rights-of-way on Federal lands that will come up for renewal
within the following 5, 10, and 15 year periods, and a
description of how the Secretaries plan to manage such
renewals.
SEC. 8. ELECTRIC TRANSMISSION PROPERTY TREATED AS 15-YEAR PROPERTY.
(a) In General.--Subparagraph (E) of section 168(e)(3) of the
Internal Revenue Code of 1986 (relating to classification of certain
property) is amended by striking ``and'' at the end of clause (v), by
striking the period at the end of clause (vi) and by inserting ``,
and'', and by adding at the end the following new clause:
``(vii) any section 1245 property (as defined in section
1245(a)(3)) used in the transmission at 69 or more kilovolts of
electricity for sale the original use of which commences with the
taxpayer after the date of the enactment of this clause.''.
(b) Alternative System.-- The table contained in section
168(g)(3)(B) is amended by inserting after the item relating to
subparagraph (E)(vi) the following:
``(E)(vii)................................................. 30''.
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service after the date of the enactment of
this Act, in taxable years ending after such date.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Energy and Air Quality.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line