Amendment of the Federal Power Act

Section 216 of the Federal Power Act (16 U.S.C. 824p) is amended as follows: (1)By amending the section heading to read as follows:

Regional transmission plans for the interstate transmission system

. (2)By striking subsection (i) and redesignating subsections (j) and (k) as subsections (k) and (l), respectively. (3)By redesignating subsections (d) through (h) as subsections (f) through (j), respectively. (4)By striking subsections (a), (b), and (c) and inserting the following:

(a)

Purposes

The purposes of this section are as follows: (1)To ensure electric reliability, fuel diversity, and wholesale power price stability across the electric transmission grid. (2)To reinforce, strengthen, and enhance electric transmission infrastructure as an integrated network system. (3)To facilitate the development of clean energy resources that cannot be located near an existing transmission facility or load center. (4)To assist States and electric energy service providers in meeting the requirements of applicable renewable portfolio standards. (5)To take maximum advantage of smart grid technologies to promote electric grid improvements, energy efficiency, and demand response. (6)To coordinate regional planning and local siting of interstate high-voltage electric transmission systems. (b)

Definitions

In this section: (1)The term bulk-power system has the meaning given such term in section 215(a)(1). (2)The term designated region means a region designated under subsection (c)(1). (3)The term Electric Reliability Organization has the meaning given such term in section 215(a)(2). (4)The term Interconnection has the meaning given such term in section 215(a)(5). (5)The term regional entity has the meaning given such term in section 215(a)(7). (6)The term regional transmission plan means a comprehensive plan required under subsection (c)(3) for the development of the interstate electric transmission system in a designated region. (7)The term regional transmission planner means a person or entity approved under subsection (c)(2) to develop and maintain a regional transmission plan required under this section. (8)The term regional transmission project means an overhead or underground transmission facility, consisting of conductors or cables, towers, manhole duct systems, phase shifting transformers, reactors, capacitors, substations, and any ancillary facilities and equipment necessary for the proper operation of the facility— (A)that— (i)operates at or above a voltage of— (I)230 kilovolts alternating current; or (II)300 kilovolts direct current; (ii)is a very high current conductor or superconducting cable that operates at or above a power equivalent to the power of a conventional transmission cable operating at or above 230 kilovolts alternating current or 300 kilovolts direct current; or (iii)is a renewable feeder line; and (B)that is included in a regional transmission plan submitted to the Commission under subsection (c)(3). (9)The term renewable feeder line means a transmission line that— (A)operates at or above a voltage of 100 kilovolts; and (B)is identified in a regional transmission plan submitted to the Commission under subsection (c)(3) as a facility that is to be developed to facilitate collection of electric energy produced by renewable energy. (c)

Regional transmission plans

(1)

Designation of regions

Not later than 12 months after the date of enactment of this subsection, the Commission, in consultation with the Electric Reliability Organization, regional entities, Transmission Organizations, transmission owners, State regulatory authorities of the States comprising the Eastern Interconnection, and State regulatory authorities of the States comprising the Western Interconnection, shall designate one or more regions within the Eastern Interconnection and one or more regions within the Western Interconnection, to be represented by regional transmission planners approved under paragraph (2). In determining the appropriate size and scope of a region, the Commission shall consider the optimal scope needed to ensure comprehensive regional transmission planning and operational efficiency, the size and scope of existing Regional Transmission Organizations and operating bulk-power systems, and methods for interregional coordination agreements to ensure a sufficiently broad regional transmission planning process. (2)

Regional transmission planners

(A)

Application and approval

Any person or entity, including a Regional Transmission Organization or other regionally based planning entity with an established regional transmission planning process, as determined by the Commission, may submit an application to the Commission for approval as the regional transmission planner for a designated region. Not later than 18 months after the designation of a region under paragraph (1), the Commission shall approve one such regional transmission planner for each such designated region to develop and maintain a regional transmission plan required under this section. (B)

Consideration

In approving a regional transmission planner under subparagraph (A), the Commission shall consider the existing or reasonably anticipated capabilities of any regionally based planning entity described in such subparagraph in regional transmission planning. (C)

Contents of application

An applicant entity shall include in an application for approval as the regional transmission planner for a designated region the operating procedures of such applicant entity and any method such applicant entity will use to adhere to the requirements for a regional transmission planning process described in paragraph (5). (D)

Compliance

The Commission may review the compliance of a regional transmission planner approved under subparagraph (A) with the requirements of this section and any regulations thereunder. If the Commission finds such a regional transmission planner has failed or is failing to comply with such requirements or regulations, the Commission may revoke the approval of such regional transmission planner for a designated region and accept applications for a new regional transmission planner for such region to be approved in accordance with this section. (3)

Regional transmission plan required

Not later than 2 years after the approval of a regional transmission planner under paragraph (2), and every 2 years thereafter, such regional transmission planner shall submit to the Commission an initial or updated regional transmission plan that meets the requirements of this section. The Commission shall ensure that each such plan is the result of a planning process that adhered to the requirements for a regional transmission planning process described in paragraph (5). The Commission shall make all regional transmission plans submitted available to the public. (4)

Regional transmission plan design

A regional transmission plan required under this section shall, with respect to a designated region— (A)be designed to— (i)maintain and enhance the economic, reliability, and energy security benefits of the regional electric transmission system, including remediation of electric grid congestion; and (ii)anticipate and facilitate development of electric energy generation from diverse energy resources; and (B)consider whether proposals to expand and upgrade high voltage electric transmission in the designated region and across the boundaries of the designated region will minimize congestion and promote service reliability, market integration and efficiency, economic development, deployment of smart grid technologies, lowest cost delivered electric energy at wholesale, and the goals of applicable renewable portfolio standards. (5)

Regional transmission planning process

The Commission shall ensure each regional transmission planning process conducted by a regional transmission planner is consistent with the purposes of this section. The Commission shall ensure any such planning process— (A)is non-discriminatory, independent, and conforms with the planning standards of Commission Order No. 890 or any successor order; (B)solicits and considers the input of local and State policymakers, transmission facility owners and electric utilities, and market participants; (C)is sufficiently broad in geographic and market scope to produce economic and operational efficiencies; (D)is designed to meet the need for the timely construction or modification of regional transmission projects; and (E)takes into account— (i)all applicable laws and regulations governing the procurement of electric energy generation; (ii)the potential effect on the future operation of the electric transmission system or on the regional transmission plan of rejection or withdrawal of a proposed regional transmission project; (iii)the development of transmission facilities for which a completed application for authorization has been filed and accepted by a State regulatory authority or other applicable authority before the date of submission of a regional transmission plan under paragraph (3) but not originating from the planning process; (iv)the availability of non-transmission resources such as opportunities for energy efficiency, demand response, enhancements to economic dispatch, distributed generation, and installation of new control, metering, or capacity enhancement technologies; and (v)the development of the interstate electric transmission system in the designated region for the 10 years after submission of a regional transmission plan under paragraph (3). (6)

Transmitting utilities and Power marketing administrations

Federal power marketing administrations and transmitting utilities in a designated region shall integrate their transmission plans with the regional transmission plans required by this section and shall otherwise participate in a regional transmission planning process by a regional transmission planner in accordance with this section. (7)

Commission activities

If no regional transmission planner for a designated region is approved under paragraph (2), or in the event that an approved regional transmission planner does not timely submit a regional transmission plan as required under paragraph (3), the Commission shall designate a planner or undertake the planning activities described in this subsection for the designated region concerned and develop such a plan for such designated region expeditiously, in consultation with State regulatory authorities, as applicable, for all affected States or areas, the Electric Reliability Organization, regional entities, Transmission Organizations, and transmission owners within the region, as appropriate. (8)

Cost Allocation

Not later than 18 months after the date of enactment of this paragraph, the Commission shall, by rule, require that all regional high voltage electric transmission cost allocation processes and methodologies adhere to a clear and consistent set of regulatory principles, including, as appropriate, that the costs of siting and the construction or modification of transmission facilities shall be allocated consistent with the range and distribution of benefits within the designated region that are provided by such facilities, the use of the transmission system, or with other equitable and economic considerations. In issuing a rule under this paragraph, the Commission shall consider regional cost allocation processes and methodologies being developed or in existence as of the date of enactment of this paragraph. (9)

Plan coordination

The Commission shall require regional transmission planners to coordinate planning across regional boundaries within an Interconnection in order to achieve the purposes of this section. (d)

Certificate of public convenience and necessity

(1)

Proposed finding of public convenience and necessity by regional transmission planner

(A)

Inclusion of proposed finding in regional transmission plan

As part of a regional transmission plan submitted to the Commission under subsection (c)(3), a regional transmission planner may identify a regional transmission project or projects that such regional transmission planner finds, based on the record of the regional transmission planning process, is required by, and consistent with, the public convenience and necessity. (B)

Public convenience and necessity certificate request

A regional transmission planner may submit to the Commission a request to issue a certificate of public convenience and necessity for a regional transmission project identified in a regional transmission plan submitted under subsection (c)(3). Such request shall include a summary of the record developed for such project during the regional transmission planning process. The request shall be based on whether such regional transmission project is or will be— (i)necessary to ensure regional compliance with reliability standards or remedy violations of such reliability standards; (ii)necessary to provide significant relief from electric transmission congestion as measured by objective criteria, including consideration of the total cost of congestion, hours of congestion, and the lack of feasible economic alternative means to relieve congestion; (iii)important to the diversification of energy supply throughout the designated region, including by meeting the goals of applicable renewable portfolio standards; or (iv)important to the development of smart grid technology that is consistent with the policy under title XIII of the Energy Independence and Security Act of 2007 (42 U.S.C. 17381 et seq.). (2)

Issuance of certificate of public convenience and necessity

The Commission may, after notice and opportunity for hearing, find that a regional transmission project is in the public convenience and necessity and issue a certificate of public convenience and necessity for the ownership and operation of such regional transmission project and the provision of any related services under the jurisdiction of the Commission if the Commission finds that— (A)a regional transmission planner included a proposed finding of public convenience and necessity for such proposed regional transmission project in one or more relevant regional transmission plans submitted to the Commission under subsection (c)(3); (B)a regional transmission planner submitted a request for the issuance of such a certificate; (C)the proposed regional transmission project will be used for the transmission of electric energy in interstate commerce; (D)the proposed regional transmission project is consistent with the public interest in terms of its engineering, reliability, and other economic characteristics and the purposes of this section; and (E)the proposed regional transmission project will maximize, to the extent reasonable and economical, existing rights-of-way and the transmission capabilities of existing towers and structures. (3)

Considerations

In issuing a certificate of public convenience and necessity under this subsection, the Commission shall give substantial deference to any proposed finding of public convenience and necessity by a regional transmission planner in a regional transmission plan submitted under subsection (c)(3). (4)

Multiple projects

The Commission may treat multiple proposed regional transmission projects in any regional transmission plan as separate for purposes of determining whether a certificate of public convenience and necessity should be issued under this subsection. (5)

Certificate applications

The Commission shall issue rules specifying— (A)the form of the application for a certificate of public convenience and necessity under this subsection; and (B)the information to be contained in such application. (6)

Environmental review

(A)

Proposed finding by regional transmission planner

A proposed finding by a regional transmission planner of public convenience and necessity regarding a regional transmission project is excluded from review under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), provided an environmental assessment or environmental impact statement is required to be prepared by the Commission under such Act. (B)

Consideration by Commission

In determining whether a certificate of public convenience and necessity should be issued under this subsection, the Commission may consider, wholly or in part, any draft environmental analysis conducted by a regional transmission planner or relevant transmission provider and issued by the regional transmission planner. (e)

Siting authority

(1)

Exclusive State siting authority

A State shall retain exclusive authority over the siting of any transmission facility that is not a part of a regional transmission project for which a certificate of public convenience and necessity has been issued under subsection (d)(2). (2)

Federal siting authority

The Commission may, after notice and an opportunity for hearing, issue one or more permits for the construction or modification of a transmission facility if the Commission finds that— (A)the transmission facility was identified as part or all of a regional transmission project for which a certificate of public convenience and necessity has been issued under subsection (d)(2); (B)at least one State in the designated region for which such regional transmission project is identified has approved the siting of such transmission facility; and (C)(i)a State in which such transmission facility is to be sited does not have authority to— (I)approve the siting of the facility; or (II)consider the interstate benefits expected to be achieved by the proposed siting of the transmission facility in the State; (ii)the applicant for a permit is a transmitting utility but does not qualify to apply for a permit for such transmission facility in a State in which such transmission facility is to be sited because the applicant does not serve end-use customers in the State; or (iii)a State commission or other entity that has authority to approve the siting of such transmission facility— (I)did not issue a decision on an application seeking approval for the siting of the facility within 1 year after the date on which the applicant submitted a completed application to the State commission or other authority; (II)denied a complete application seeking approval for the siting of the transmission facility without proposing an alternate site; or (III)authorized the siting of the facility subject to conditions that unreasonably interfere with the siting of the transmission facility.

(5)In subsection (f), as redesignated by paragraph (3), by striking subsection (b) and inserting subsection (e). (6)In subsection (g), as redesignated by paragraph (3), by striking subsection (b) and inserting subsection (e). (7)In subsection (h), as redesignated by paragraph (3), by striking subsection (e) and inserting subsection (g). (8)In subsection (k)(2), as redesignated by paragraph (2), by striking Subsection (h)(6) and inserting Subsection (j)(6). (9)By amending subsection (l), as redesignated by paragraph (2), to read as follows:

(l)

Applicability

This section applies only to States located in the Western Interconnection and States located in the Eastern Interconnection and does not apply to the States of Alaska or Hawaii, or to areas under the authority of the Electric Reliability Council of Texas.