[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 2827 Introduced in Senate (IS)]

<DOC>






118th CONGRESS
  1st Session
                                S. 2827

   To require the Federal Energy Regulatory Commission to establish 
  minimum interregional transfer capabilities, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 18, 2023

 Mr. Hickenlooper introduced the following bill; which was read twice 
     and referred to the Committee on Energy and Natural Resources

_______________________________________________________________________

                                 A BILL


 
   To require the Federal Energy Regulatory Commission to establish 
  minimum interregional transfer capabilities, 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 ``Building Integrated Grids With 
Inter-Regional Energy Supply Act'' or the ``BIG WIRES Act''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) interregional electric transmission is foundational to 
        a modern grid and a growing economy based on affordable and 
        abundant energy;
            (2) in recent decades, the interregional electric grid 
        infrastructure of North America, and of the United States in 
        particular, has stagnated;
            (3) since 2014, the total capacity of planned or newly 
        constructed large-scale interregional transmission in North 
        America has amounted to less than \1/3\ that of South America, 
        \1/6\ that of Europe, and \1/30\ that of China;
            (4) such a shortage of interregional transmission threatens 
        the reliability of the electric grid of the United States and 
        its resiliency to extreme weather events and cyber and physical 
        attacks while artificially inflating energy prices for the 
        people of the United States;
            (5) the damages resulting from that interregional 
        transmission shortfall have been borne across the United 
        States, in part during extreme weather events, including the 
        2022 freeze affecting the majority of the United States, the 
        2020 and 2022 heat waves in California, the 2019 heat wave and 
        2021 freeze in Texas, the 2018 cyclone on the East Coast, and 
        the 2014 polar vortex in the Northeast and Midwest, and those 
        extreme weather events collectively cost the people of the 
        United States hundreds of billions of dollars;
            (6) new interregional transmission, and transfer capability 
        achieved by means of other technologies and grid-operational 
        practices, represents a unique opportunity to fortify the 
        critical energy infrastructure of the United States while 
        lowering the cost of living for families;
            (7) studies of interregional transmission routinely find 
        benefit-cost ratios as high as 2.5, in line with real-world 
        experience;
            (8) by relieving grid congestion and promoting more 
        efficient grid planning and operation, new interregional 
        transmission presents an all-of-the-above opportunity for the 
        full energy-generating portfolio of renewable, fossil, and 
        nuclear resources of the United States; and
            (9) interregional transmission represents a 2-way value 
        proposition, with secure careers for workers in energy 
        communities and competitively sourced, low-cost, reliable 
        energy for industrial, commercial, and residential energy 
        customers nationwide.

SEC. 3. MINIMUM INTERREGIONAL TRANSFER CAPABILITIES AND REQUIREMENTS.

    (a) In General.--Part II of the Federal Power Act (16 U.S.C. 824 et 
seq.) is amended by adding at the end the following:

``SEC. 224. INTERREGIONAL RELIABILITY.

    ``(a) Definitions.--In this section:
            ``(1) Coincident interregional transfer capability.--The 
        term `coincident interregional transfer capability', with 
        respect to an interregional transmission planning region, means 
        the ability of the interconnected electrical system to 
        coincidently move electric energy reliably between the 
        interregional transmission planning region in question and the 
        rest of the interconnected electrical system.
            ``(2) Commission.--The term `Commission' means the Federal 
        Energy Regulatory Commission.
            ``(3) Interregional transfer capability.--The term 
        `interregional transfer capability' means the ability of the 
        interconnected electrical system to move electric energy 
        reliably between 2 or more interregional transmission planning 
        regions.
            ``(4) Interregional transmission planning region.--The term 
        `interregional transmission planning region' means a region for 
        which electric energy transmission planning is appropriate, as 
        determined by the Commission, such as a region approved by the 
        Commission to meet the requirements of the final rule of the 
        Commission entitled `Transmission Planning and Cost Allocation 
        by Transmission Owning and Operating Public Utilities' (Docket 
        No. RM10-23).
            ``(5) Minimum interregional transfer capability.--The term 
        `minimum interregional transfer capability' means, as 
        applicable--
                    ``(A) the coincident interregional transfer 
                capability described in subsection (b)(1)(A); or
                    ``(B) a higher coincident interregional transfer 
                capability established in accordance with subsection 
                (b)(1)(B).
            ``(6) Minimum interregional transfer requirement.--The term 
        `minimum interregional transfer requirement' means any 
        requirement to meet or maintain a minimum interregional 
        transfer capability.
    ``(b) Establishment of Minimum Interregional Transfer 
Capabilities.--
            ``(1) In general.--Not later than 18 months after the date 
        of enactment of this section, the Commission shall promulgate a 
        final rule that--
                    ``(A) requires each interregional transmission 
                planning region to establish or increase interregional 
                transfer capabilities such that the coincident 
                interregional transfer capability of each interregional 
                transmission planning region is not less than the 
                lesser of--
                            ``(i) 30 percent of its own present-day 
                        coincident peak load; and
                            ``(ii) the sum obtained by adding--
                                    ``(I) the present-day coincident 
                                interregional transfer capability of 
                                the interregional transmission planning 
                                region; and
                                    ``(II) 15 percent of its own 
                                present-day coincident peak load;
                    ``(B) on a showing of net benefits, may require 1 
                or more interregional transmission planning regions to 
                meet or maintain a coincident interregional transfer 
                capability that exceeds the applicable minimum 
                interregional transfer capability described in 
                subparagraph (A);
                    ``(C) based on the applicable minimum interregional 
                transfer capability, shall govern the establishment of 
                minimum interregional transfer requirements for 
                interconnections between interregional transmission 
                planning regions;
                    ``(D) calculates the present-day coincident 
                interregional transfer capabilities of the 
                interregional transmission planning regions by--
                            ``(i) defining the present-day coincident 
                        interregional transfer capability of each 
                        interregional transmission planning region as 
                        being equal to the greater of--
                                    ``(I) the coincident import 
                                capability of the interregional 
                                transmission planning region; and
                                    ``(II) the coincident export 
                                capability of the interregional 
                                transmission planning region;
                            ``(ii) defining the coincident import 
                        capability of each interregional transmission 
                        planning region as being equal to the absolute 
                        value of the first \1/10\ of the first 
                        percentile (0.1th percentile) of the coincident 
                        hourly electrical transfers of that 
                        interregional transmission planning region;
                            ``(iii) defining the coincident export 
                        capability of the interregional transmission 
                        planning region as being equal to the absolute 
                        value of the last \1/10\ of the 99th percentile 
                        (99.9th percentile) of the coincident hourly 
                        electrical transfers of that interregional 
                        transmission planning region;
                            ``(iv) defining the coincident hourly 
                        electrical transfers of each interregional 
                        transmission planning region as being equal to 
                        the sum obtained by adding, with respect to 
                        each hour, the hourly electrical transfers of 
                        all balancing authorities that, in the 
                        determination of the Commission, most closely 
                        correspond to the interregional transmission 
                        planning region in question using data from 
                        Form EIA-930 of the Energy Information 
                        Administration for the 5-year period ending 
                        on--
                                    ``(I) for each plan described in 
                                subparagraph (G) that is required to be 
                                submitted by the date described in that 
                                subparagraph, the date that is 1 year 
                                before the date of enactment of this 
                                section; and
                                    ``(II) for each plan submitted 
                                under paragraph (4)(A) and each updated 
                                plan submitted under paragraph (4)(B), 
                                the date that is 1 year before the 
                                deadline for submission of that plan; 
                                and
                            ``(v) defining the hourly electrical 
                        transfers of each interregional transmission 
                        planning region as being equal to, for each 
                        hour--
                                    ``(I) the hourly exports of that 
                                interregional transmission planning 
                                region; minus
                                    ``(II) the hourly imports of that 
                                interregional transmission planning 
                                region;
                    ``(E) calculates the present-day coincident peak 
                loads of the interregional transmission planning 
                regions by--
                            ``(i) defining the present-day coincident 
                        peak load of each interregional transmission 
                        planning region as being equal to the last \1/
                        10\ of the 99th percentile (99.9th percentile) 
                        of the coincident hourly load of that 
                        interregional transmission planning region; and
                            ``(ii) defining the coincident hourly load 
                        of each interregional transmission planning 
                        region as being equal to the sum obtained by 
                        adding, with respect to each hour, the hourly 
                        loads of all balancing authorities that, in the 
                        determination of the Commission, most closely 
                        correspond to the interregional transmission 
                        planning region in question using data from 
                        Form EIA-930 of the Energy Information 
                        Administration for the 5-year period ending 
                        on--
                                    ``(I) for each plan described in 
                                subparagraph (G) that is required to be 
                                submitted by the date described in that 
                                subparagraph, the date that is 1 year 
                                before the date of enactment of this 
                                section; and
                                    ``(II) for each plan submitted 
                                under paragraph (4)(A) and each updated 
                                plan submitted under paragraph (4)(B), 
                                the date that is 1 year before the 
                                deadline for submission of that plan;
                    ``(F) for purposes of determining the adequacy of a 
                plan described in subparagraph (G) to provide for the 
                achievement of the minimum interregional transfer 
                capability applicable to an interregional transmission 
                planning region, describes and employs a clear 
                methodology for calculating anticipated changes to the 
                coincident peak load and coincident interregional 
                transfer capability of an interregional transmission 
                planning region designed to correspond approximately to 
                what would be reasonably expected to be calculated 
                under subparagraphs (D) and (E) at a future date based 
                on--
                            ``(i) the construction or modification of 
                        new or existing transmission facilities, 
                        including facilities built between 
                        interregional transmission planning regions and 
                        facilities within interregional transmission 
                        planning regions that impact the ability of the 
                        interregional transmission planning regions to 
                        move electric energy between themselves and 
                        neighboring interregional transmission planning 
                        regions;
                            ``(ii) the use of nontransmission 
                        alternatives, including grid-enhancing 
                        technologies;
                            ``(iii) changes to generation or load 
                        within interregional transmission planning 
                        regions, including energy efficiency and demand 
                        response programs; and
                            ``(iv) other changes to the bulk-power 
                        system (as defined in section 215(a)) or the 
                        operation of the bulk-power system that are 
                        expected to meaningfully alter coincident peak 
                        loads or coincident interregional transfer 
                        capabilities, as determined by the Commission;
                    ``(G) establishes a process for each interregional 
                transmission planning region to submit, jointly with 
                each other interregional transmission planning region 
                with which the interregional transmission planning 
                region has, or plans to establish, an interregional 
                transfer capability, not later than 2 years after the 
                effective date of the final rule, a plan that--
                            ``(i) designates 1 or more entities for 
                        construction of new facilities or modification 
                        of existing facilities to achieve the 
                        applicable minimum interregional transfer 
                        capability in an efficient and timely manner 
                        for the benefit of ultimate consumers;
                            ``(ii) allocates the costs of the 
                        facilities described in clause (i); and
                            ``(iii) includes a timeline for the 
                        construction of the facilities described in 
                        clause (i)--
                                    ``(I) by December 31, 2035; or
                                    ``(II) if any construction will 
                                extend beyond that date, that includes 
                                an explanation of the reasons for that 
                                construction extending beyond that 
                                date; and
                    ``(H) explains how the Commission will designate 1 
                or more entities to construct or modify, and how the 
                Commission will allocate the costs of, the facilities 
                described in clause (i) of subparagraph (G) in the 
                event that an interregional transmission planning 
                region fails to submit a plan in accordance with that 
                subparagraph.
            ``(2) Presumptions; consultation.--In establishing the 
        methodology under paragraph (1)(F), the Commission may--
                    ``(A) establish and use simplified, rebuttable 
                presumptions relating to the extent to which coincident 
                interregional transfer capabilities or coincident peak 
                loads will be anticipated to be altered by facilities, 
                technologies, or programs described in clauses (i) 
                through (iv) of that paragraph; and
                    ``(B) consult with appropriate officials of the 
                Department of Energy.
            ``(3) Considerations.--In carrying out paragraph (1), the 
        Commission shall consider and determine the role of transfer 
        capabilities between interregional transmission planning 
        regions and other electrical systems in North America in 
        meeting the requirements of that paragraph.
            ``(4) Plans.--
                    ``(A) New interregional transmission planning 
                regions.--Not later than 2 years after the 
                establishment of any new interregional transmission 
                planning region, the new interregional transmission 
                planning region and each interregional transmission 
                planning region with which the new interregional 
                transmission planning region has, or plans to 
                establish, an interregional transfer capability, shall 
                jointly submit to the Commission a plan described in 
                paragraph (1)(G) to meet the minimum interregional 
                transfer capability applicable to that new 
                interregional transmission planning region.
                    ``(B) Updates.--
                            ``(i) In general.--The Commission shall 
                        require each plan submitted in accordance with 
                        paragraph (1)(G) or subparagraph (A) to be 
                        updated, and the updated plan submitted to the 
                        Commission, every 5 years after the deadline 
                        for submission of the initial plan.
                            ``(ii) Requirement.--An updated plan 
                        submitted in accordance with clause (i) shall, 
                        at a minimum, account for any changes in 
                        regional coincident peak load since the most 
                        recent previous submission.
                    ``(C) Review.--The Commission shall review each 
                plan submitted in accordance with paragraph (1)(G) or 
                subparagraph (A) or (B) in a manner consistent with--
                            ``(i) the principles described in 
                        subsection (g); and
                            ``(ii) sections 205 and 206, with respect 
                        to the requirement that all rates, charges, 
                        terms, and conditions be just and reasonable 
                        and not unduly discriminatory or preferential.
    ``(c) Equal Application.--In carrying out this section, including 
with respect to the imposition of, and assessing compliance with, any 
minimum interregional transfer requirement, the Commission shall apply 
all provisions of this section, and any regulations promulgated under 
this section, equally to all interregional transmission planning 
regions, including by using the same terms, definitions, and standards 
with respect to each interregional transmission planning region.
    ``(d) Commission Jurisdiction.--The Commission shall have 
jurisdiction within the United States over all transmitting utilities 
for the purposes of establishing minimum interregional transfer 
capabilities in accordance with this section and establishing and 
enforcing compliance with minimum interregional transfer requirements.
    ``(e) Electric Reliability Council of Texas.--
            ``(1) In general.--The Public Utility Commission of Texas 
        may, at its sole discretion, choose to support the reliability 
        and affordability of the ERCOT system by voluntarily complying 
        with a minimum interregional transfer requirement relating to a 
        coincident interregional transfer capability that is equal to a 
        percentage, determined by ERCOT, of the coincident peak load of 
        ERCOT.
            ``(2) Savings clause.--
                    ``(A) In general.--The construction or operation of 
                an interregional facility, or the allocation of costs 
                for that construction, to meet a minimum interregional 
                transfer capability shall not affect the jurisdiction 
                of the Commission with respect to--
                            ``(i) ERCOT; or
                            ``(ii) any ERCOT utility.
                    ``(B) Not public utilities.--The construction or 
                operation of a facility described in subparagraph (A), 
                or the allocation of costs for that construction, shall 
                not render ERCOT or any ERCOT utility a public utility.
    ``(f) Data Quality.--
            ``(1) In general.--Not later than 180 days after the date 
        of enactment of this section, the Administrator of the Energy 
        Information Administration shall submit to the Commission an 
        updated version of the data from Form EIA-930 for use in 
        accordance with subparagraphs (D) and (E) of subsection (b)(1).
            ``(2) Errors.--In updating the Form EIA-930 data for 
        purposes of paragraph (1), the Administrator of the Energy 
        Information Administration, to the maximum extent practicable, 
        shall control for the quality of the data by--
                    ``(A) identifying any suspected erroneous values; 
                and
                    ``(B) removing those suspected erroneous values or 
                overwriting those suspected erroneous values with data 
                that, in the determination of the Administrator, is 
                likely to be more accurate.
    ``(g) Requirement.--In carrying out this section, the Commission 
shall endeavor--
            ``(1) to improve the reliability and resilience of the 
        electric grid of the United States, including during--
                    ``(A) extreme weather scenarios;
                    ``(B) physical attacks; and
                    ``(C) cyber attacks; and
            ``(2) to reduce the cost of delivered power to ultimate 
        consumers by increasing access to low-cost generating 
        resources.''.
    (b) Conforming Amendments.--Section 201 of the Federal Power Act 
(16 U.S.C. 824) is amended--
            (1) in subsection (b)(2)--
                    (A) in the first sentence--
                            (i) by striking ``section 201(f)'' and 
                        inserting ``subsection (f)''; and
                            (ii) by striking ``and 222'' and inserting 
                        ``222, and 224''; and
                    (B) in the second sentence, by striking ``or 222'' 
                and inserting ``222, or 224''; and
            (2) in subsection (e)--
                    (A) by striking ``206(f),''; and
                    (B) by striking ``or 222'' and inserting ``222, or 
                224''.
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