Connect the Grid Act

Summary#

This bill would require the Electric Reliability Council of Texas (ERCOT) to be treated like other parts of the U.S. transmission system for certain federal rules. It would remove special exemptions for ERCOT in the Federal Power Act. The Federal Energy Regulatory Commission (FERC) must hold a technical conference within 180 days to help affected entities comply.

The bill directs FERC and the Electric Reliability Organization to set minimum "total transfer capability" targets for connections between ERCOT and three neighbors: the Southwest Power Pool (SPP), Midcontinent Independent System Operator (MISO), and the Western Interconnection. The bill lists ranges of minimum capacity in gigawatts for each connection pair and requires ERCOT and its neighbors to jointly submit plans, within one year, to site and build or modify transmission to meet those minimums by January 1, 2035.

Plans must prioritize grid-enhancing technology, use of existing rights-of-way (like highways and railroads), siting on degraded lands (including brownfields and certain contaminated sites), expanding access to renewable energy sources, community involvement (including outreach to environmental justice and Tribal communities), and use of registered apprenticeship programs and prevailing wages. Projects done to meet these targets must follow the National Environmental Policy Act and the Endangered Species Act.

The bill also directs the Secretary of Energy to consider designating areas where these projects will occur as national interest electric transmission corridors. It increases the borrowing authority for the Transmission Facilitation Program from $2,500,000,000 to $13,500,000,000. Finally, the Secretary of Energy must study and report to Congress, within one year, on the reliability, climate, and cost benefits of interconnecting U.S. electricity facilities with facilities in Mexico and identify siting or projects that would bring the most cumulative benefits.

What it means for you#

• Utilities and transmission organizations that operate with or near ERCOT would have to plan and coordinate new or upgraded interstate transmission to meet the required transfer capability ranges.
• Local communities near proposed transmission routes could see outreach and planning meetings, including special outreach to environmental justice and Tribal communities, and opportunities for virtual attendance and translation services.
• Projects to meet the targets must follow federal environmental review and endangered species protections.
• The bill encourages building on degraded or previously contaminated lands where possible and using existing rights-of-way.
• The Transmission Facilitation Program would have more borrowing capacity available for eligible transmission projects.

Expenses#

• The bill increases the Transmission Facilitation Program borrowing authority to $13,500,000,000 (up from $2,500,000,000).
• No publicly available information on total expected federal spending, budgetary cost estimates, or the full cost of meeting the transfer capability targets is provided in the bill text.

Proponents' View#

No publicly available information in the bill text stating proponents' stated reasons or arguments. The bill was introduced by Senators Edward Markey and Jeff Merkley.

Opponents' View#

No publicly available information in the bill text stating opponents' stated reasons or arguments.