[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3280 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 3280

  To amend the Federal Power Act to establish a regional transmission 
               planning process, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 27, 2011

Mr. Sensenbrenner introduced the following bill; which was referred to 
                  the Committee on Energy and Commerce

_______________________________________________________________________

                                 A BILL


 
  To amend the Federal Power Act to establish a regional transmission 
               planning process, 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 ``Powering America for Tomorrow Act''.

SEC. 2. 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.
            ``(10) The term `transmission organization' has the meaning 
        given such term in section 215(a)(6).
    ``(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.--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 electric 
        transmission facilities 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); and
                    ``(B) the--
                            ``(i) State in which the 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) applicant for a permit is a 
                        transmitting utility but does not qualify to 
                        apply for a permit for the proposed 
                        transmission facility in a State because the 
                        applicant does not serve end-use customers in 
                        the State; or
                            ``(iii) State commission or other entity 
                        that has authority to approve the siting of the 
                        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 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; 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.''.
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