Quick Explainer: New transmission rules and why we still need legislation
Here is a breakdown of the new rules that will impact the U.S. power grid and what we still need to do.
Both FERC and the Department of Energy have issued new rules that will significantly improve some of our electric transmission bottlenecks. These new rules from the executive branch will help expand grid capacity in some important ways, but they don’t accomplish everything we could accomplish by passing CETA, the BIG WIRES Act, or the SITE Act. Regulatory changes can often easily be undone by the next administration (and one way to insulate against that risk is by deploying as much funding related to the regulation as possible!). But as always, only an act of Congress would truly lock in the policy changes for the long haul.
The fix from FERC
The FERC rule for regional transmission planning and cost allocation requires grid operators to demonstrate long-term regional transmission planning, at least 20 years into the future. This will help push grid operators to meet the predicted increase in electricity demand and set out a roadmap for how to build enough transmission to support future demand. It requires them to demonstrate consideration of "grid-enhancing technologies," which are a much more cost-effective way to expand grid capacity than building new infrastructure and should be deployed as a primary strategy before constructing new lines (we will still need to do both). This rule also requires transmission infrastructure developers to propose a default formula for paying for new transmission. Typically, utilities can pass on the cost of building new lines to consumers on their electricity bills. FERC wants to make sure that only the people benefiting from the new lines are seeing that cost reflected on their bills—but deciding who "benefits" might get hairy.
Bipartisan permitting reform from the Fiscal Responsibility Act
The administration's Bipartisan Permitting Reform Implementation Rule is the implementation of the a bipartisan permitting compromise that was reached during debt ceiling negotiations last year. It applies to all energy projects, not just clean energy and not just transmission. It creates efficiencies in the federal government's environmental review process by setting a two-year deadline and page limits for environmental impact statements. It also lumps a bunch of energy projects into categories that can pass environmental review in an expedited fashion. At the same time, it requires agencies to consider climate change in environmental reviews and present more environmentally friendly alternatives. The administration claims that this last part is to help insulate against legal challenges, but opponents view it as an onerous addition to the compromise that is unfaithful to the original law. That could make the rule vulnerable to overhaul by Congress, but it’s unlikely opponents can override President Biden’s veto.
One united approval program, courtesy of the DOE
The Department of Energy's transmission permitting rule is separate from the bipartisan implementation rule. The DOE is attempting to streamline the process of permitting transmission projects by unifying all environmental reviews and permits under one coordinated program. Instead of submitting applications and impact statements to 10+ different agencies, project developers can now submit everything under one entity. The rule also imposes new requirements on public participation and uses money from the Bipartisan Infrastructure Law to fund a new transmission line out west.
Ok, so...what's left?
Here's what's still missing:
Minimum transfer requirements on grid operators to help balance the grid and support intermittent renewables (FERC can technically do this...and still might!)
Give FERC primary siting authority of transmission lines to override states' vetoes
Transmission Investment Tax Credit to incentivize buildout
More permitting streamlining
This is where we—you, me, and everyone we know—can capitalize on the momentum and get results. The most timely, productive civic actions we can take right now to advocate for transmission reform are 1) contacting our elected officials, 2) reaching out to our utility regulators, and 3) writing to the media and our wider networks. Climate Changemakers has a playbook for each one of these. Get one done (in under an hour!) at the Expanding the U.S. Power Grid Action Plan here.