A Ninth Circuit Court of Appeals decision has vacated the Department of Energy's 2007 Transmission Congestion Study that designated national interest electric transmission corridors in mid-Atlantic and Southwestern states.

On Feb. 1 , the three-judge panel ruled 2 to 1 that the DOE had failed to adequately consult affected states or conduct federally mandated environmental reviews in identifying vast swaths of land as suitable for fast-track treatment of applications to construct transmission facilities to supply areas of inadequate capacity.

In issuing these designations, DOE had said it was carrying out its responsibilities under Federal Power Act section 216, as enacted in the Energy Policy Act of 2005. That law authorized the Secretary of Energy to conduct periodic national electric transmission congestion studies, and to designate National Corridors if the Secretary determines appropriate.

“These National Corridors serve as an important indication by the federal government that significant transmission constraint or congestion problems exist,” former Secretary of Energy Samuel W. Bodman said in 2007. “The goal is simple – to keep reliable supplies of electric energy flowing to all Americans. By designating these National Corridors, we are encouraging stakeholders in these regions to identify solutions and take prompt action."

The court directed the department to start its so-called congestion study again, the LA Times reported.

"This is another setback, without question another blow, at a time when we still are trying to build much needed new transmission," Jim Owen, director of media relations at the Edison Electric Institute, told the Times. "We do know that utilities in California, along with more than 30 other states, are under mandates to provide a certain percentage of renewable energy to customers."

The National Electrical Manufacturers' Association also responded to the ruling. NEMA President and CEO Evan R. Gaddis said the court’s decision to invalidate the designation of these two corridors delays the timely development of a more reliable electric grid in two of the most congested areas in the country.

“Delivering power, including power from renewable energy sources, to where it is needed should be a national priority and this cannot be done without adequate high-voltage transmission lines,”
Gaddis said.

DOE designated the Mid-Atlantic region and a region in the Southwest surrounding Los Angeles and San Diego as areas where electric constraint or congestion is hurting consumers to an unacceptable degree. While not an approval of any particular interstate transmission project, this designation would allow the applicant to apply to the Federal Energy Regulatory Commission if the applicant fails to receive approval from a state.

The court decision only reinforces the importance of NEMA’s advocacy for a legislative solution that gives FERC expanded authority to site high-priority interstate transmission lines and the ability to coordinate federal environmental reviews, just as FERC has for interstate natural gas pipelines.

“The current process for siting interstate transmission lines is too slow and too costly to the public. NEMA is redoubling its efforts to ensure that the nation’s transmission infrastructure is not an impediment to our energy security,” said Jim Creevy, NEMA director of government relations