[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5551 Introduced in House (IH)]
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118th CONGRESS
1st Session
H. R. 5551
To require the Federal Energy Regulatory Commission to establish
minimum interregional transfer capabilities, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 18, 2023
Mr. Peters introduced the following bill; which was referred to the
Committee on Energy and Commerce
_______________________________________________________________________
A BILL
To require the Federal Energy Regulatory Commission to establish
minimum interregional transfer capabilities, 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 ``Building Integrated Grids With
Inter-Regional Energy Supply Act'' or the ``BIG WIRES Act''.
SEC. 2. FINDINGS.
Congress finds that--
(1) interregional electric transmission is foundational to
a modern grid and a growing economy based on affordable and
abundant energy;
(2) in recent decades, the interregional electric grid
infrastructure of North America, and of the United States in
particular, has stagnated;
(3) since 2014, the total capacity of planned or newly
constructed large-scale interregional transmission in North
America has amounted to less than \1/3\ that of South America,
\1/6\ that of Europe, and \1/30\ that of China;
(4) such a shortage of interregional transmission threatens
the reliability of the electric grid of the United States and
its resiliency to extreme weather events and cyber and physical
attacks while artificially inflating energy prices for the
people of the United States;
(5) the damages resulting from that interregional
transmission shortfall have been borne across the United
States, in part during extreme weather events, including the
2022 freeze affecting the majority of the United States, the
2020 and 2022 heat waves in California, the 2019 heat wave and
2021 freeze in Texas, the 2018 cyclone on the East Coast, and
the 2014 polar vortex in the Northeast and Midwest, and those
extreme weather events collectively cost the people of the
United States hundreds of billions of dollars;
(6) new interregional transmission, and transfer capability
achieved by means of other technologies and grid-operational
practices, represents a unique opportunity to fortify the
critical energy infrastructure of the United States while
lowering the cost of living for families;
(7) studies of interregional transmission routinely find
benefit-cost ratios as high as 2.5, in line with real-world
experience;
(8) by relieving grid congestion and promoting more
efficient grid planning and operation, new interregional
transmission presents an all-of-the-above opportunity for the
full energy-generating portfolio of renewable, fossil, and
nuclear resources of the United States; and
(9) interregional transmission represents a 2-way value
proposition, with secure careers for workers in energy
communities and competitively sourced, low-cost, reliable
energy for industrial, commercial, and residential energy
customers nationwide.
SEC. 3. MINIMUM INTERREGIONAL TRANSFER CAPABILITIES AND REQUIREMENTS.
(a) In General.--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. INTERREGIONAL RELIABILITY.
``(a) Definitions.--In this section:
``(1) Coincident interregional transfer capability.--The
term `coincident interregional transfer capability', with
respect to an interregional transmission planning region, means
the ability of the interconnected electrical system to
coincidently move electric energy reliably between the
interregional transmission planning region in question and the
rest of the interconnected electrical system.
``(2) Commission.--The term `Commission' means the Federal
Energy Regulatory Commission.
``(3) Interregional transfer capability.--The term
`interregional transfer capability' means the ability of the
interconnected electrical system to move electric energy
reliably between 2 or more interregional transmission planning
regions.
``(4) Interregional transmission planning region.--The term
`interregional transmission planning region' means a region for
which electric energy transmission planning is appropriate, as
determined by the Commission, such as a region approved by the
Commission to meet the requirements of the final rule of the
Commission entitled `Transmission Planning and Cost Allocation
by Transmission Owning and Operating Public Utilities' (Docket
No. RM10-23).
``(5) Minimum interregional transfer capability.--The term
`minimum interregional transfer capability' means, as
applicable--
``(A) the coincident interregional transfer
capability described in subsection (b)(1)(A); or
``(B) a higher coincident interregional transfer
capability established in accordance with subsection
(b)(1)(B).
``(6) Minimum interregional transfer requirement.--The term
`minimum interregional transfer requirement' means any
requirement to meet or maintain a minimum interregional
transfer capability.
``(b) Establishment of Minimum Interregional Transfer
Capabilities.--
``(1) In general.--Not later than 18 months after the date
of enactment of this section, the Commission shall promulgate a
final rule that--
``(A) requires each interregional transmission
planning region to establish or increase interregional
transfer capabilities such that the coincident
interregional transfer capability of each interregional
transmission planning region is not less than the
lesser of--
``(i) 30 percent of its own present-day
coincident peak load; and
``(ii) the sum obtained by adding--
``(I) the present-day coincident
interregional transfer capability of
the interregional transmission planning
region; and
``(II) 15 percent of its own
present-day coincident peak load;
``(B) on a showing of net benefits, may require 1
or more interregional transmission planning regions to
meet or maintain a coincident interregional transfer
capability that exceeds the applicable minimum
interregional transfer capability described in
subparagraph (A);
``(C) based on the applicable minimum interregional
transfer capability, shall govern the establishment of
minimum interregional transfer requirements for
interconnections between interregional transmission
planning regions;
``(D) calculates the present-day coincident
interregional transfer capabilities of the
interregional transmission planning regions by--
``(i) defining the present-day coincident
interregional transfer capability of each
interregional transmission planning region as
being equal to the greater of--
``(I) the coincident import
capability of the interregional
transmission planning region; and
``(II) the coincident export
capability of the interregional
transmission planning region;
``(ii) defining the coincident import
capability of each interregional transmission
planning region as being equal to the absolute
value of the first \1/10\ of the first
percentile (0.1th percentile) of the coincident
hourly electrical transfers of that
interregional transmission planning region;
``(iii) defining the coincident export
capability of the interregional transmission
planning region as being equal to the absolute
value of the last \1/10\ of the 99th percentile
(99.9th percentile) of the coincident hourly
electrical transfers of that interregional
transmission planning region;
``(iv) defining the coincident hourly
electrical transfers of each interregional
transmission planning region as being equal to
the sum obtained by adding, with respect to
each hour, the hourly electrical transfers of
all balancing authorities that, in the
determination of the Commission, most closely
correspond to the interregional transmission
planning region in question using data from
Form EIA-930 of the Energy Information
Administration for the 5-year period ending
on--
``(I) for each plan described in
subparagraph (G) that is required to be
submitted by the date described in that
subparagraph, the date that is 1 year
before the date of enactment of this
section; and
``(II) for each plan submitted
under paragraph (4)(A) and each updated
plan submitted under paragraph (4)(B),
the date that is 1 year before the
deadline for submission of that plan;
and
``(v) defining the hourly electrical
transfers of each interregional transmission
planning region as being equal to, for each
hour--
``(I) the hourly exports of that
interregional transmission planning
region; minus
``(II) the hourly imports of that
interregional transmission planning
region;
``(E) calculates the present-day coincident peak
loads of the interregional transmission planning
regions by--
``(i) defining the present-day coincident
peak load of each interregional transmission
planning region as being equal to the last \1/
10\ of the 99th percentile (99.9th percentile)
of the coincident hourly load of that
interregional transmission planning region; and
``(ii) defining the coincident hourly load
of each interregional transmission planning
region as being equal to the sum obtained by
adding, with respect to each hour, the hourly
loads of all balancing authorities that, in the
determination of the Commission, most closely
correspond to the interregional transmission
planning region in question using data from
Form EIA-930 of the Energy Information
Administration for the 5-year period ending
on--
``(I) for each plan described in
subparagraph (G) that is required to be
submitted by the date described in that
subparagraph, the date that is 1 year
before the date of enactment of this
section; and
``(II) for each plan submitted
under paragraph (4)(A) and each updated
plan submitted under paragraph (4)(B),
the date that is 1 year before the
deadline for submission of that plan;
``(F) for purposes of determining the adequacy of a
plan described in subparagraph (G) to provide for the
achievement of the minimum interregional transfer
capability applicable to an interregional transmission
planning region, describes and employs a clear
methodology for calculating anticipated changes to the
coincident peak load and coincident interregional
transfer capability of an interregional transmission
planning region designed to correspond approximately to
what would be reasonably expected to be calculated
under subparagraphs (D) and (E) at a future date based
on--
``(i) the construction or modification of
new or existing transmission facilities,
including facilities built between
interregional transmission planning regions and
facilities within interregional transmission
planning regions that impact the ability of the
interregional transmission planning regions to
move electric energy between themselves and
neighboring interregional transmission planning
regions;
``(ii) the use of nontransmission
alternatives, including grid-enhancing
technologies;
``(iii) changes to generation or load
within interregional transmission planning
regions, including energy efficiency and demand
response programs; and
``(iv) other changes to the bulk-power
system (as defined in section 215(a)) or the
operation of the bulk-power system that are
expected to meaningfully alter coincident peak
loads or coincident interregional transfer
capabilities, as determined by the Commission;
``(G) establishes a process for each interregional
transmission planning region to submit, jointly with
each other interregional transmission planning region
with which the interregional transmission planning
region has, or plans to establish, an interregional
transfer capability, not later than 2 years after the
effective date of the final rule, a plan that--
``(i) designates 1 or more entities for
construction of new facilities or modification
of existing facilities to achieve the
applicable minimum interregional transfer
capability in an efficient and timely manner
for the benefit of ultimate consumers;
``(ii) allocates the costs of the
facilities described in clause (i); and
``(iii) includes a timeline for the
construction of the facilities described in
clause (i)--
``(I) by December 31, 2035; or
``(II) if any construction will
extend beyond that date, that includes
an explanation of the reasons for that
construction extending beyond that
date; and
``(H) explains how the Commission will designate 1
or more entities to construct or modify, and how the
Commission will allocate the costs of, the facilities
described in clause (i) of subparagraph (G) in the
event that an interregional transmission planning
region fails to submit a plan in accordance with that
subparagraph.
``(2) Presumptions; consultation.--In establishing the
methodology under paragraph (1)(F), the Commission may--
``(A) establish and use simplified, rebuttable
presumptions relating to the extent to which coincident
interregional transfer capabilities or coincident peak
loads will be anticipated to be altered by facilities,
technologies, or programs described in clauses (i)
through (iv) of that paragraph; and
``(B) consult with appropriate officials of the
Department of Energy.
``(3) Considerations.--In carrying out paragraph (1), the
Commission shall consider and determine the role of transfer
capabilities between interregional transmission planning
regions and other electrical systems in North America in
meeting the requirements of that paragraph.
``(4) Plans.--
``(A) New interregional transmission planning
regions.--Not later than 2 years after the
establishment of any new interregional transmission
planning region, the new interregional transmission
planning region and each interregional transmission
planning region with which the new interregional
transmission planning region has, or plans to
establish, an interregional transfer capability, shall
jointly submit to the Commission a plan described in
paragraph (1)(G) to meet the minimum interregional
transfer capability applicable to that new
interregional transmission planning region.
``(B) Updates.--
``(i) In general.--The Commission shall
require each plan submitted in accordance with
paragraph (1)(G) or subparagraph (A) to be
updated, and the updated plan submitted to the
Commission, every 5 years after the deadline
for submission of the initial plan.
``(ii) Requirement.--An updated plan
submitted in accordance with clause (i) shall,
at a minimum, account for any changes in
regional coincident peak load since the most
recent previous submission.
``(C) Review.--The Commission shall review each
plan submitted in accordance with paragraph (1)(G) or
subparagraph (A) or (B) in a manner consistent with--
``(i) the principles described in
subsection (g); and
``(ii) sections 205 and 206, with respect
to the requirement that all rates, charges,
terms, and conditions be just and reasonable
and not unduly discriminatory or preferential.
``(c) Equal Application.--In carrying out this section, including
with respect to the imposition of, and assessing compliance with, any
minimum interregional transfer requirement, the Commission shall apply
all provisions of this section, and any regulations promulgated under
this section, equally to all interregional transmission planning
regions, including by using the same terms, definitions, and standards
with respect to each interregional transmission planning region.
``(d) Commission Jurisdiction.--The Commission shall have
jurisdiction within the United States over all transmitting utilities
for the purposes of establishing minimum interregional transfer
capabilities in accordance with this section and establishing and
enforcing compliance with minimum interregional transfer requirements.
``(e) Electric Reliability Council of Texas.--
``(1) In general.--The Public Utility Commission of Texas
may, at its sole discretion, choose to support the reliability
and affordability of the ERCOT system by voluntarily complying
with a minimum interregional transfer requirement relating to a
coincident interregional transfer capability that is equal to a
percentage, determined by ERCOT, of the coincident peak load of
ERCOT.
``(2) Savings clause.--
``(A) In general.--The construction or operation of
an interregional facility, or the allocation of costs
for that construction, to meet a minimum interregional
transfer capability shall not affect the jurisdiction
of the Commission with respect to--
``(i) ERCOT; or
``(ii) any ERCOT utility.
``(B) Not public utilities.--The construction or
operation of a facility described in subparagraph (A),
or the allocation of costs for that construction, shall
not render ERCOT or any ERCOT utility a public utility.
``(f) Data Quality.--
``(1) In general.--Not later than 180 days after the date
of enactment of this section, the Administrator of the Energy
Information Administration shall submit to the Commission an
updated version of the data from Form EIA-930 for use in
accordance with subparagraphs (D) and (E) of subsection (b)(1).
``(2) Errors.--In updating the Form EIA-930 data for
purposes of paragraph (1), the Administrator of the Energy
Information Administration, to the maximum extent practicable,
shall control for the quality of the data by--
``(A) identifying any suspected erroneous values;
and
``(B) removing those suspected erroneous values or
overwriting those suspected erroneous values with data
that, in the determination of the Administrator, is
likely to be more accurate.
``(g) Requirement.--In carrying out this section, the Commission
shall endeavor--
``(1) to improve the reliability and resilience of the
electric grid of the United States, including during--
``(A) extreme weather scenarios;
``(B) physical attacks; and
``(C) cyber attacks; and
``(2) to reduce the cost of delivered power to ultimate
consumers by increasing access to low-cost generating
resources.''.
(b) Conforming Amendments.--Section 201 of the Federal Power Act
(16 U.S.C. 824) is amended--
(1) in subsection (b)(2)--
(A) in the first sentence--
(i) by striking ``section 201(f)'' and
inserting ``subsection (f)''; and
(ii) by striking ``and 222'' and inserting
``222, and 224''; and
(B) in the second sentence, by striking ``or 222''
and inserting ``222, or 224''; and
(2) in subsection (e)--
(A) by striking ``206(f),''; and
(B) by striking ``or 222'' and inserting ``222, or
224''.
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