Senate Passes Energy Permitting Reform Act to Boost U.S. Clean Energy and Climate Goals
The U.S. Senate Energy and Natural Resources Committee has advanced the Energy Permitting Reform Act of 2024, a bipartisan measure designed to accelerate the expansion and upgrade of the U.S. electricity grid. The bill, introduced by Senators Joe Manchin (D-WV) and John Barrasso (R-WY), is seen as a critical move to enhance grid reliability, address extreme weather events, and support the development of clean energy.
The proposed legislation comes on the heels of recent actions by the U.S. Federal Energy Regulatory Commission (FERC) and the Department of Energy (DOE). FERC has released a new transmission planning and cost allocation rule, while the DOE has identified potential National Interest Electric Transmission Corridors (NIETC), areas where grid congestion or capacity constraints are anticipated.
A key provision in the Energy Permitting Reform Act mandates that FERC establish a rule on interregional planning within 180 days of the bill's passage. This rule would require transmission planning regions to collaborate on plans for new power lines, emphasizing projects with significant economic and reliability benefits for customers.
Another notable aspect of the bill is the expansion of FERC's backstop siting authority. Previously limited to projects within NIETCs, this authority would now extend to any project deemed "in the national interest." This change aims to expedite the construction of transmission infrastructure by allowing developers to appeal to FERC if states delay or obstruct permit approvals.
Additionally, the bill clarifies cost allocation processes, ensuring that costs are distributed based on the economic and reliability benefits of transmission projects. It also includes provisions to support community benefits and advancements in grid-enhancing technologies and conductors.
Director of WRI’s U.S. Energy Program Lori Bird said, “A number of studies have shown that without improvements to transmission and grid systems, the United States will not be able to meet its climate goals.”
Bird further emphasized the importance of the interregional planning rule. “The interregional planning rule in the proposed Energy Permitting Reform Act is an important next step to ensure a sustainable and reliable grid. Interregional transmission has been shown to be the most economically beneficial way to allow large amounts of renewables to come online while improving the grid’s resilience and reliability.”
She also noted the significance of the bill’s provisions on cost allocation. “The bill’s provisions to clarify the role of FERC in how costs are allocated are critical to ensuring the United States can build new power lines to meet the nation’s electricity needs and its climate goals.”
The Energy Permitting Reform Act now moves forward for further consideration, with supporters hoping it will be signed into law to facilitate crucial upgrades to the nation’s energy infrastructure.
