[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 3879 Introduced in Senate (IS)]
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117th CONGRESS
2d Session
S. 3879
To require the Federal Energy Regulatory Commission to promulgate
regulations on regional and interregional transmission planning, and
for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 17, 2022
Mr. Markey (for himself, Ms. Smith, Mr. Whitehouse, and Ms. Warren)
introduced the following bill; which was read twice and referred to the
Committee on Energy and Natural Resources
_______________________________________________________________________
A BILL
To require the Federal Energy Regulatory Commission to promulgate
regulations on regional and interregional transmission planning, 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.
This Act may be cited as the ``Connecting Hard-to-reach Areas with
Renewably Generated Energy Act of 2022'' or the ``CHARGE Act of 2022''.
SEC. 2. FINDINGS.
Congress finds that--
(1) current transmission planning is fractured across many
jurisdictions, prioritizes incumbent entities and highly
localized transmission, and fails to identify cost-effective
solutions for 21st century needs;
(2) the historical structure, regulations, and incentives
of the electric power system lead to under-planning and under-
investment in the regional and interregional transmission lines
that are needed for a reliable and resilient grid;
(3) much of the existing transmission infrastructure of the
United States is in need of significant upgrade or replacement;
(4) the energy sector of the United States is at a critical
juncture, with a rapidly changing power generation mix and new
public policy mandates;
(5) it is imperative to proactively plan for electricity
transmission in the future, including by taking into account
long-term changes to demand and load growth;
(6) renewable energy resources must be incorporated into
the grid efficiently in order to meet State and Federal
decarbonization goals;
(7) the public desires, and has a right to, electricity
data that is transparent, organized, and accessible;
(8) having reliable and diverse sources of electricity
generation is a foundational need for the entire economy;
(9) climate change has increased the frequency and
intensity of severe weather events that affect the grid;
(10) it is in the national interest to implement policies
that provide effective electric infrastructure to save
consumers money, avoid preventable damage, ensure energy
reliability, and save lives;
(11) the Federal Government has a responsibility to combat
rising transmission costs and ensure customers receive just and
reasonable rates for electricity; and
(12) industry experience, scientific studies, and modern
examples of reformed electricity transmission provide
confidence that new public policies and regulatory guidance
will achieve more efficient and beneficial planning than the
status quo.
SEC. 3. DEFINITIONS.
In this Act:
(1) Commission.--The term ``Commission'' means the Federal
Energy Regulatory Commission.
(2) Independent system operator.--The term ``Independent
System Operator'' has the meaning given the term in section 3
of the Federal Power Act (16 U.S.C. 796).
(3) Interconnection customer.--The term ``interconnection
customer'' means an individual or entity that has submitted to
the owner or operator of a transmission facility or
transmission system a request to interconnect a generation
project or energy storage project that is subject to the
jurisdiction of the Commission.
(4) Interregional transmission planning process.--The term
``interregional transmission planning process'' means a joint
process by transmission providers in 2 or more adjacent
transmission planning regions to evaluate electric energy
transmission needs.
(5) Load-serving entity.--The term ``load-serving entity''
has the meaning given the term in section 217(a) of the Federal
Power Act (16 U.S.C. 824q(a)).
(6) Pricing node.--The term ``pricing node'' means a
specific electrical bus location on the grid where an injection
or withdrawal of power is modeled.
(7) Regional transmission organization.--The term
``Regional Transmission Organization'' has the meaning given
the term in section 3 of the Federal Power Act (16 U.S.C. 796).
(8) Transmission facility.--The term ``transmission
facility'' means a facility that is used for the transmission
of electric energy in interstate commerce.
(9) Transmission planning region.--The term ``transmission
planning region'' means a region for which electric energy
transmission planning is appropriate, as determined by the
Commission, such as a region established pursuant to the
guidance in the final rule of the Commission entitled
``Transmission Planning and Cost Allocation by Transmission
Owning and Operating Public Utilities'' (76 Fed. Reg. 49842
(August 11, 2011)).
(10) Transmission provider.--The term ``transmission
provider'' means a public utility (as defined in section 201(e)
of the Federal Power Act (16 U.S.C. 824(e))) that owns,
operates, or controls 1 or more transmission facilities.
SEC. 4. TRANSMISSION PLANNING AND COST ALLOCATION.
(a) Rulemaking.--Not later than 18 months after the date of
enactment of this Act, the Commission shall promulgate a final rule
that establishes transmission planning processes and cost-allocation
processes that--
(1) ensure that transmission providers--
(A) engage in formalized interregional transmission
planning processes and interconnection-wide
transmission planning processes, in conjunction with
transmission planning processes within transmission
planning regions;
(B) harmonize interregional transmission planning
processes and interconnection-wide transmission
planning processes with other transmission planning
regions, such as by using a joint model on a consistent
timeline with a unified set of minimum requirements
regarding needs, input assumptions, and benefit
metrics;
(C) include as part of planning and cost-allocation
processes the use of grid-enhancing transmission
technologies and nontransmission alternatives that
increase delivery of power over transmission networks,
including, at a minimum--
(i) dynamic line ratings;
(ii) topology optimization;
(iii) power flow control;
(iv) advanced conductors; and
(v) storage-as-transmission;
(D) conduct interregional and interconnection-wide
planning regularly and not less frequently than once
every 3 years;
(E) conduct system-wide planning based on a range
of possible future load and generation scenarios; and
(F) are required to incorporate in a transmission
planning process the full scope of benefits of
transmission investment, including, at a minimum--
(i) reduced costs of electric energy to
customers, including reduced costs associated
with lower quantities of necessary capacity,
ancillary services, and reserve margins;
(ii) access to resources in neighboring
transmission planning regions;
(iii) the transmission of renewable energy
or the ability of renewable energy to connect
to the grid;
(iv) improvements in reliability,
resilience, and flexibility of the grid,
including, at a minimum--
(I) reduced loss of load
probability;
(II) increased resource diversity;
(III) increased climate hardening;
and
(IV) increased ability to maintain
functionality during regionally
appropriate weather conditions and
severe weather scenarios;
(v) leveraging resources across
climatological patterns or time zones to
account for resource availability and weather
patterns;
(vi) avoidance, to the maximum extent
practicable, of sensitive environmental areas
and cultural heritage sites;
(vii) reasonable and economical use of
existing rights-of-way;
(viii) market facilitation benefits,
including, at a minimum, increased
competitiveness, liquidity, and integrity of
broader geographic markets;
(ix) avoided costs and deferred cost
savings, including reduced generation costs and
reduced future transmission investment costs;
(x) the integration of grid-enhancing
technologies;
(xi) meeting local, State, and Federal
policy goals, including goals established in
decarbonization, climate, and clean energy laws
(including regulations);
(xii) protections to maintain just and
reasonable rates for customers; and
(xiii) any other production costs savings
or other economic benefits from proposed
transmission projects;
(2) require that regional and interregional cost-allocation
methodologies allocate costs on the basis of the multiple
benefits described in clauses (i) through (xiii) of paragraph
(1)(F);
(3) incorporate a 10- to 20-year future resource mix for
each load-serving entity and State, which may require a load-
serving entity to make publicly available the resource plans of
the load-serving entity if, in the determination of the
Commission, those plans are not adequately described in
publicly stated plans in Securities and Exchange Commission
filings, State agency filings, and power purchase contracts;
(4) prioritize interregional cost-benefit considerations
over regional cost-benefit considerations;
(5) require transmission providers to maximize the use of
portfolio-based cost allocations;
(6) in cases in which costs and benefits are difficult to
quantify, may allocate transmission investment costs among
transmission system customers in proportion to--
(A) in the case of regional projects, the share of
electricity of each customer in the region; or
(B) in the case of interregional projects, the
share of electricity of each customer in each
applicable region; and
(7) to the extent practicable, prevent transmission
providers from using cost-allocation methodologies that--
(A) discourage distributed generation, energy
efficiency, demand response, or storage if more
economic than transmission;
(B) are constrained by consideration only of
benefits that are easy to allocate; or
(C) undermine previous cost-allocation agreements
for projects already in operation.
(b) Technical Conference.--
(1) In general.--As part of the rulemaking process under
subsection (a), the Commission may convene a technical
conference to consider implementation details, as the
Commission determines to be appropriate.
(2) Participation.--
(A) Leadership.--A technical conference convened
under paragraph (1) may be led by the members of the
Commission.
(B) Participation.--The Commission may invite to
participate in a technical conference convened under
paragraph (1) representatives of residential
ratepayers, transmission providers, environmental
justice and equity groups, Tribal communities,
Independent System Operators, Regional Transmission
Organizations, consumer protection groups, renewable
energy advocates, State utility commission and energy
offices, and such other entities as the Commission
determines appropriate.
(C) Timeline.--The Commission may establish and
enforce a timeline for a technical conference convened
under paragraph (1) that discourages actions by
participants that may unnecessarily delay the
conference.
(3) Public comment.--The Commission may provide an
opportunity for public comment on the topics considered by a
technical conference convened under paragraph (1).
(c) Office of Public Participation.--The Commission shall consult
the Office of Public Participation during the rulemaking process under
subsection (a), including with respect to--
(1) guidance on public participation requirements;
(2) communications with the public concerning transmission
planning that may impact local communities and land owners,
including Tribal, indigenous, and environmental justice
communities; and
(3) minimum data transparency and access requirements.
(d) Joint Federal-State Task Force on Electric Transmission.--The
Commission may consult the Joint Federal-State Task Force on Electric
Transmission in any actions that--
(1) involve shared Federal and State regulatory authority
and processes; or
(2) would benefit from a combined Federal and State
perspective.
SEC. 5. INTERREGIONAL MINIMUM TRANSFER REQUIREMENTS.
(a) Electric Reliability.--Section 215(i)(2) of the Federal Power
Act (16 U.S.C. 824o(i)(2)) is amended by striking ``or transmission''.
(b) Rulemaking.--Not later than 18 months after the date of
enactment of this Act, the Commission shall promulgate a final rule
that establishes a minimum transfer capability that--
(1) shall govern minimum transfer requirements between
transmission planning regions;
(2) achieves reliability and resilience standards during
plausible extreme weather scenarios;
(3) optimizes efficiency of delivering renewable energy to
demand centers; and
(4) incorporates the best available science relating to
energy transmission, climatological patterns, climate change
causes and impacts, grid reliability, and grid resiliency,
including study results from the Department of Energy or
National Laboratories (as defined in section 2 of the Energy
Policy Act of 2005 (42 U.S.C. 15801)).
SEC. 6. DATA TRANSPARENCY.
Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is amended
by adding at the end the following:
``SEC. 224. DATA TRANSPARENCY.
``(a) In General.--The Commission shall require all public
utilities and other entities subject to the jurisdiction of the
Commission to make hourly operating data transparent and accessible to
the public, including--
``(1) as original source data posted in a timely manner;
and
``(2) through coordination with an online database operated
by the Administrator of the Energy Information Administration.
``(b) Data.--Data made publicly available under subsection (a)
shall--
``(1) be organized and easy to understand;
``(2) be centralized and provided in usable formats,
including an application programming interface;
``(3) be available free of charge or at-cost;
``(4) be published in a timely manner;
``(5) include generation by fuel type; and
``(6) include average and hourly, or more frequent if
technologically feasible, marginal greenhouse gas emissions per
megawatt hour of electricity generated within the metered
boundaries of each entity and for each pricing node.
``(c) Commercial Products.--The Commission may identify and reduce
regulatory barriers to the development of commercial products that use
the data made publicly available under subsection (a) in order to
provide verifiable emissions reductions, including short- and long-term
nodal congestion products.
``(d) Appropriation.--In addition to amounts otherwise made
available to the Administrator of the Energy Information
Administration, there is appropriated to the Administrator of the
Energy Information Administration for fiscal year 2023, out of any
funds in the Treasury not otherwise appropriated, $10,000,000 to
develop and operate the database described in subsection (a)(2), to
remain available until expended.''.
SEC. 7. PROMOTING COMPETITION FOR GENERATION.
Part II of the Federal Power Act (16 U.S.C. 824 et seq.) (as
amended by section 6) is amended by adding at the end the following:
``SEC. 225. DUE REGARD FOR FAIR COMPETITION.
``(a) In General.--In order to effectively protect against the
exercise of market power through affiliate abuse, the Commission shall
require that any new generation described in subsection (b) is procured
through a competitive process and without any right of first refusal
for an incumbent utility, subject to subsection (c).
``(b) New Generation Described.--The new generation referred to in
subsection (a) is new generation that is--
``(1) above a Commission-determined size threshold;
``(2) above a Commission-determined cost materiality
threshold; and
``(3) ultimately used to sell power in interstate commerce.
``(c) Exemption.--New generation that is procured through a process
administered by a Regional Transmission Organization or an Independent
System Operator is exempted from the requirements of subsection (a).''.
SEC. 8. STATE SUBSIDIES.
Part II of the Federal Power Act (16 U.S.C. 824 et seq.) (as
amended by section 7) is amended by adding at the end the following:
``SEC. 226. STATE SUBSIDIES.
``In order to promote competition in wholesale markets,
reliability, and affordability, the Commission shall not use price
mitigation methods to counteract the effects of State subsidies for
renewable energy resources.''.
SEC. 9. OFFICE OF TRANSMISSION.
Part III of the Federal Power Act is amended by inserting after
section 317 (16 U.S.C. 825p) the following:
``SEC. 318. OFFICE OF TRANSMISSION.
``(a) Establishment.--There shall be established in the Commission
an office, to be known as the `Office of Transmission' (referred to in
this section as the `Office').
``(b) Director.--The Office shall be administered by a Director,
who shall be appointed by the Chairman of the Commission.
``(c) Duties.--The Director of the Office shall--
``(1) review transmission plans submitted by public
utilities in accordance with the regional and interregional
transmission planning processes, including the processes
established pursuant to section 206;
``(2) coordinate transmission-related matters of the
Commission, as the Commission determines appropriate;
``(3) carry out the responsibilities of the Commission
under section 216, in coordination with the Office of Energy
Projects of the Commission;
``(4) review opportunities for innovation in transmission
planning and operation, including deployment of grid-enhancing
technologies, advanced conductors, and other approaches; and
``(5) provide oversight of interregional transmission
planning activities.''.
SEC. 10. INTERCONNECTION.
Not later than 1 year after the date of enactment of this Act, the
Commission shall promulgate regulations, or revise existing
regulations--
(1) to prohibit a public utility from requiring an
interconnection customer to exclusively or disproportionately
fund, without reimbursement, the costs of any network upgrade
identified as necessary for the interconnect request of the
interconnection customer;
(2) to encourage cost-sharing models that reflect the broad
set of benefits and beneficiaries for any network upgrades
identified as needed in an interconnection or affected system
study, subject to the requirement that the model adheres to any
requirements established under paragraph (1); and
(3) to alleviate interconnection backlogs and reduce
informational and procedural barriers in interconnection, which
may include--
(A) the establishment of an interconnection
analysis center within the Office of Transmission
established under section 318 of the Federal Power Act;
and
(B) consultation with staff and the use of other
resources of the Department of Energy.
SEC. 11. INDEPENDENT TRANSMISSION MONITOR.
(a) In General.--Not later than 1 year after the date of enactment
of this Act, for the purpose of monitoring the planning and operation
of transmission facilities in transmission planning regions, the
Commission shall--
(1)(A) require each transmission planning region to
establish an independent entity to monitor the planning and
operation of transmission facilities in the transmission
planning region; and
(B) establish a council, to be known as the ``Council of
Transmission Monitors''--
(i) to provide oversight of each independent entity
established pursuant to subparagraph (A); and
(ii) to ensure interregional collaboration and
consistency; or
(2) establish an independent entity to monitor the planning
and operation of transmission facilities in all transmission
planning regions.
(b) Role of Transmission Monitor.--An independent entity described
in paragraph (1)(A) or (2) of subsection (a) shall, as applicable--
(1) review the operation of applicable transmission
planning regions for inefficiency and practices that may lead
to unjust and unreasonable rates;
(2) review transmission planning processes;
(3) review costs of transmission facilities, including
identifying inefficiencies among local, regional, and
interregional planning;
(4) provide examples and advice to transmission providers
on appropriate regional transmission operations, planning, and
cost-allocation processes; and
(5) identify situations in which, with respect to a
transmission planning process--
(A) nonwire alternatives may be more cost-effective
than transmission;
(B) grid-enhancing technologies may be appropriate;
or
(C) high-capacity, interregional lines may be--
(i) more cost-effective; or
(ii) a more appropriate reliability and
resilience alternative.
SEC. 12. ADVISORY COMMITTEE.
(a) In General.--Not later than 1 year after the date of enactment
of this Act, the Commission shall establish an advisory committee
(referred to in this section as the ``committee'') to make
recommendations on--
(1) oversight and governance of Independent System
Operators or Regional Transmission Organizations;
(2) stakeholder participation best practices--
(A) that ensure transparency, accountability,
independence, oversight, and fair representation; and
(B) the purpose of which are to promote
competition, reliability, and affordability in all
transmission planning regions;
(3) enhancing transparency and open decisionmaking in
regions not classified as Independent System Operators or
Regional Transmission Organizations; and
(4) the requirements of governing boards within Independent
System Operators or Regional Transmission Organizations.
(b) Representation.--The committee shall be composed of not more
than 30 members, including--
(1) at least 2 representatives of end-use customers;
(2) at least 1 representative of transmission providers;
(3) at least 2 representatives of environmental justice and
equity groups;
(4) at least 1 representative of Tribal communities;
(5) at least 1 representative of Independent System
Operators;
(6) at least 1 representative of Regional Transmission
Organizations;
(7) at least 1 representative of consumer protection
groups;
(8) at least 2 representatives of renewable energy
advocates;
(9) at least 1 representative of State commissions;
(10) at least 1 representative of public power entities;
(11) at least 1 representative of marketers; and
(12) at least 1 representative of generators.
(c) FACA Applicability.--The Federal Advisory Committee Act (5
U.S.C. App.) shall apply to the committee.
SEC. 13. APPROPRIATIONS.
In addition to amounts otherwise available, there is appropriated
to the Commission for fiscal year 2023, out of any funds in the
Treasury not otherwise appropriated, $200,000,000, to remain available
until expended, to carry out--
(1) sections 4, 5, and 10; and
(2) the amendment made by section 9.
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