[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9945 Introduced in House (IH)]
<DOC>
119th CONGRESS
2d Session
H. R. 9945
To accelerate the modernization of the national electric grid by
supporting advanced conductors and related systems, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 23, 2026
Mr. Whitesides (for himself, Mr. Harrigan, and Mr. Hamadeh of Arizona)
introduced the following bill; which was referred to the Committee on
Energy and Commerce, and in addition to the Committee on Ways and
Means, for a period to be subsequently determined by the Speaker, in
each case for consideration of such provisions as fall within the
jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To accelerate the modernization of the national electric grid by
supporting advanced conductors and related systems, 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 ``Lowering Energy Costs through Grid
Modernization Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Advanced conductor.--The term ``advanced conductor''
means a transmission conductor that--
(A) provides at least 1.5 times the potential
energy carrying capacity of an aluminum conductor,
steel-reinforced (in this section referred to as
``ACSR'') transmission conductor;
(B) has a direct current electrical resistance at
least 10 percent lower than a traditional ACSR
conductor of a similar diameter and weight; and
(C) has at least 25 percent lower thermal sag than
an ACSR transmission conductor of similar diameter and
weight at maximum operating temperature.
(2) Categorical exclusion.--The term ``categorical
exclusion'' has the meaning given such term in section 111 of
the National Environmental Policy Act of 1969 (42 U.S.C.
4336e).
(3) Reconductoring project.--The term ``reconductoring
project'' means a project involving the replacement of existing
conductors with advanced conductors predominantly within an
existing cleared or permitted right-of-way.
(4) Right-of-way.--The term ``right-of-way'' means an
easement, lease, permit, or license to occupy, use, or traverse
public or private lands.
(5) Right-of-way optimization project.--The term ``right-
of-way optimization project'' means a project that plans,
designs, and constructs electric transmission upgrades using
advanced conductors predominantly within an existing cleared or
permitted right-of-way.
(6) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
SEC. 3. TRANSMISSION MODERNIZATION STUDY.
(a) In General.--A transmission provider subject to transmission
planning required by the Federal Energy Regulatory Commission issuances
including Order No. 1920, as modified or clarified by Order Nos. 1920-A
and 1920-B, may, during each transmission planning process as required
under such orders, conduct a transmission modernization study that
evaluates the extent to which a right-of-way optimization project or
reconductoring project may result in economic and grid reliability
benefits.
(b) Requirements.--In the event a transmission provider conducts a
study under subsection (a), the transmission provider shall, in
conducting such study--
(1) describe in such study--
(A) the extent to which right-of-way optimization
or reconductoring projects have been evaluated to
address congestion, capacity constraints, reliability
risks, or resilience needs;
(B) how implementing such projects compares to
other transmission projects that address congestion,
capacity constraints, reliability risks, or resilience
needs; and
(C) the potential economic and grid reliability
benefits from implementing such projects; and
(2) consider risks relating to natural hazards and extreme
weather events relevant to the applicable right-of-way,
including wildfire, heat, storm, or icing risk information
consistent with existing resilience planning practices.
(c) Submission and Publication.--A transmission provider that
conducts a study under subsection (a) shall submit to the Secretary the
results of such study, and make such results publicly available, except
for information designated as critical electric infrastructure
information, pursuant to section 215A of the Federal Power Act (16
U.S.C. 824o-1).
SEC. 4. NATIONAL RECONDUCTORING PERFORMANCE INSIGHTS.
(a) Aggregated Insights.--The Secretary may publish aggregated
performance data on reconductoring outcomes and related grid
modernization activities, using publicly available sources or voluntary
submissions, without identifying specific facilities or operators. Such
aggregated information may include typical ranges of increased transfer
capability, reductions in transmission losses, changes in congestion or
curtailment, and indicative project timelines, provided that no
specific facility or operator is identified.
(b) Public Listing.--The Secretary may maintain a public web page
listing States, approximate in-service years, and general voltage
classes for right-of-way optimization and reconductoring projects,
using only existing tax credit documentation, publicly available
information, or voluntary submissions, and without identifying specific
facilities or operators.
SEC. 5. NEPA REVIEW.
(a) In General.--The issuance of a Federal permit or other Federal
approval authorizing a covered project is deemed to be a categorical
exclusion under the National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.), unless the Secretary or other relevant agency
head determines that extraordinary circumstances (as defined by
regulations issued by such Secretary or other relevant agency head,
respectively) apply to the covered project.
(b) Covered Project Defined.--In this section, the term ``covered
project'' means a right-of-way optimization project, or reconductoring
project, that--
(1) is in accordance with the integral elements listed at
the start of appendix B to part 1021 of title 10, Code of
Federal Regulations;
(2) incorporates the design and construction standards,
control technologies, and best management practices that the
Secretary or other relevant agency head determines to be
appropriate; and
(3) may involve widening an existing right-of-way to meet
current electrical standards if the widening remains within
previously disturbed or developed lands and only extends into a
small area beyond such lands as needed to comply with
applicable electrical standards.
SEC. 6. HIGH-PERFORMANCE TRANSMISSION PROPERTY ADDED TO CLEAN
ELECTRICITY INVESTMENT CREDIT.
(a) In General.--Section 48E(a)(1) of the Internal Revenue Code of
1986 is amended--
(1) in subparagraph (A), by striking ``and'' at the end,
(2) in subparagraph (B), by striking the period at the end
and inserting ``, and'', and
(3) by adding at the end the following new subparagraph:
``(C) any high-performance transmission
property.''.
(b) Applicable Percentage.--Section 48E(a)(2) of such Code is
amended by adding at the end the following new subparagraph:
``(C) High-performance transmission property.--
Subject to paragraph (3)--
``(i) Base rate.--In the case of any high-
performance transmission property which is not
described in clause (ii)(I) and does not
satisfy the requirements described in clause
(ii)(II), the applicable percentage shall be 6
percent.
``(ii) Alternative rate.--In the case of
any high-performance transmission property--
``(I) with a capacity of less than
1 megawatt, or
``(II) which--
``(aa) satisfies the
requirements of subsection
(e)(3), and
``(bb) with respect to the
construction of such property,
satisfies the requirements of
subsection (e)(4),
the applicable percentage shall be 30
percent.''.
(c) Increase in Credit Rate in Certain Cases.--
(1) Energy communities.--Section 48E(a)(3)(A) of such Code
is amended--
(A) in clause (i), by striking ``or with respect to
energy storage technology'' and inserting ``, energy
storage technology, or high-performance transmission
property'', and
(B) in clause (ii)--
(i) in subclause (I), by striking ``or with
respect to energy storage technology described
in paragraph (2)(B)(i)'' and inserting ``,
energy storage technology described in
paragraph (2)(B)(i), or high-performance
transmission property described in paragraph
(2)(C)(i)'', and
(ii) in subclause (II), by striking ``or
with respect to energy storage technology
described in paragraph (2)(B)(ii)'' and
inserting ``, energy storage technology
described in paragraph (2)(B)(ii), or high-
performance transmission property described in
paragraph (2)(C)(ii)''.
(2) Domestic content.--Section 48E(a)(3)(B) of such Code is
amended by striking ``or energy storage technology'' each place
it appears and inserting ``, energy storage technology, or
high-performance transmission property'' in each such place.
(d) Qualified Investment With Respect to High-Performance
Transmission Property Defined.--Section 48E of such Code is amended--
(1) by redesignating subsections (d) through (k) as
subsections (e) through (l), respectively, and
(2) by inserting after subsection (c) the following new
subsection:
``(d) Qualified Investment With Respect to High-Performance
Transmission Property.--
``(1) Qualified investment.--For purposes of subsection
(a), the qualified investment with respect to high-performance
transmission property for any taxable year is the basis of any
high-performance transmission property placed in service by the
taxpayer during such taxable year.
``(2) High-performance transmission property.--
``(A) In general.--For purposes of this section,
the term `high-performance transmission property' means
property used in a right-of-way optimization project or
a reconductoring project.
``(B) Installation expenses included.--For purposes
of determining the credit under subsection (a), the
term `high-performance transmission property' shall
include amounts paid or incurred by the taxpayer for
installation of such property.
``(C) Right-of-way optimization project and
reconductoring project defined.--For purposes of
subparagraph (A), the terms `right-of-way optimization
project' and `reconductoring project' have the meaning
given such terms, respectively, in section 2 of the
Lowering Energy Costs through Grid Modernization Act.
``(3) Material assistance from prohibited foreign
entities.--The term `high-performance transmission property'
shall not include any property the construction of which begins
after December 31, 2025, if the construction of such property
includes any material assistance from a prohibited foreign
entity (as defined in section 7701(a)(52)).''.
(e) Restrictions Relating to Prohibited Foreign Entities.--Section
48E(e)(6)(B) of such Code, as redesignated by subsection (d), is
amended by striking ``or energy storage technology described in
subsection (c)(2)'' and inserting ``, energy storage technology
described in subsection (c)(2), or high-performance transmission
property described in subsection (d)(2)''.
(f) Credit Phase-Out.--Section 48E(f) of such Code, as redesignated
by subsection (d), is amended--
(1) by striking ``or energy storage technology'' each place
it appears and inserting ``, energy storage technology, or
high-performance transmission property'' in each such place,
and
(2) by inserting ``or any high-performance transmission
property'' after ``any energy storage technology''.
(g) Conforming Amendments.--
(1) Section 48E(a)(2) of such Code, as amended by the
preceding provisions of this section, is amended--
(A) by striking ``subsection (d)'' both places it
appears and inserting ``subsection (e)'' in each such
place,
(B) by striking ``subsection (d)(3)'' both places
it appears and inserting ``subsection (e)(3)'' in each
such place, and
(C) by striking ``subsection (d)(4)'' both places
it appears and inserting ``subsection (e)(4)'' in each
such place.
(2) Section 48E(k) of such Code, as redesignated by
subsection (d), is amended by striking ``subsection (g)'' and
inserting ``subsection (h)''.
(3) Section 48(e)(4)(D) of such Code is amended by striking
``section 48E(h)(4)(D)(ii)'' and inserting ``section
48E(i)(4)(D)(ii)''.
(4) Section 49(a)(1)(C) of such Code is amended--
(A) in clause (vii), by striking ``and'' at the
end,
(B) in clause (viii), by striking the period at the
end and inserting ``, and'', and
(C) by adding at the end the following new clause:
``(ix) the basis of any high-performance
transmission property under section 48E.''.
(5) Section 168(e)(3)(B)(viii) of such Code is amended by
striking ``or any energy storage technology (as defined in
subsection (c)(2) of such section)'' and inserting ``, any
energy storage technology (as defined in subsection (c)(2) of
such section), or any high-performance transmission property
(as defined in subsection (d)(2) of such section)''.
(6) Section 7701(a)(51) of such Code is amended--
(A) in subparagraph (D)--
(i) in clause (i)(II)(aa), by striking ``or
energy storage technology'' and inserting ``,
energy storage technology, or high-performance
transmission property'', and
(ii) in clause (ii)--
(I) in subclause (I)(aa), by
striking ``or energy storage'' and
inserting ``energy storage technology,
or high-performance transmission
property'',
(II) in subclause (II)--
(aa) in item (aa), by
inserting ``or any high-
performance transmission
property produced by the
taxpayer'' before the comma at
the end, and
(bb) in item (ee), by
striking ``or energy storage
technology'' and inserting ``,
energy storage technology, or
high-performance transmission
property'', and
(III) in subclause (III)--
(aa) by striking ``, energy
storage technology,'' each
place it appears and inserting
``, energy storage technology,
high-performance transmission
property,'' in each such place,
(bb) by striking ``any
energy storage technology,''
and inserting ``any energy
storage technology, any high-
performance transmission
property,'', and
(cc) by striking ``or
energy storage technology'' and
inserting ``, energy storage
technology, or high-performance
transmission property'', and
(B) in subparagraph (I), by adding at the end the
following new clause:
``(vii) High-performance transmission
property.--The term `high-performance
transmission property' has the same meaning
given such term under section 48E(d)(2).''.
(7) Section 7701(a)(52) of such Code is amended--
(A) in subparagraph (A), by striking ``or energy
storage technology'' and inserting ``, energy storage
technology, or high-performance transmission
property'',
(B) in subparagraph (B)--
(i) in clause (ii), by inserting ``or high-
performance transmission property'' after
``energy storage technology'', and
(ii) in the subparagraph heading, by
striking ``and energy storage technology'' and
inserting ``, energy storage technology, and
high-performance transmission property'',
(C) in subparagraph (D)--
(i) in clause (i)--
(I) by striking ``or energy storage
technology'' each place it appears and
inserting ``, energy storage
technology, or high-performance
transmission property'' in each such
place, and
(II) in the clause heading, by
striking ``and energy storage
technology'' and inserting ``, energy
storage technology, and high-
performance transmission property'',
(ii) in clause (iii)(II), by striking ``or
energy storage technology'' and inserting ``,
energy storage technology, or high-performance
transmission property'', and
(iii) in clause (v)(II), by striking ``or
energy storage technology'' and inserting ``,
energy storage technology, or high-performance
transmission property'', and
(D) in subparagraph (E), by adding at the end the
following new clause:
``(v) High-performance transmission
property.--The term `high-performance
transmission property' has the same meaning
given such term under section 48E(d)(2).''.
(h) Effective Date.--The amendments made by this section shall
apply to property placed in service in taxable years beginning after
the date of the enactment of this Act.
(i) Regulations.--Not later than 18 months after the date of the
enactment of this Act, the Secretary of the Treasury shall issue such
regulations or other guidance, or amend existing guidance, as may be
necessary or appropriate to carry out this section and the amendments
made by this section.
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