[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 5199 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
2d Session
S. 5199
To amend the Federal Power Act to clarify the jurisdiction of the
Federal Energy Regulatory Commission over the interconnection of large
loads to the transmission system, to provide for standards and
procedures for the interconnection of large loads, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 30, 2026
Mr. Heinrich introduced the following bill; which was read twice and
referred to the Committee on Energy and Natural Resources
_______________________________________________________________________
A BILL
To amend the Federal Power Act to clarify the jurisdiction of the
Federal Energy Regulatory Commission over the interconnection of large
loads to the transmission system, to provide for standards and
procedures for the interconnection of large loads, 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 ``Guarding Ratepayers from Increased
Demand-costs Savings Act of 2026'' or the ``GRID Savings Act of 2026''.
SEC. 2. LARGE LOAD INTERCONNECTION.
(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. LARGE LOAD INTERCONNECTION.
``(a) Definitions.--In this section:
``(1) Bulk-power system.--The term `bulk-power system' has
the meaning given the term in section 215(a).
``(2) Commission.--The term `Commission' means the Federal
Energy Regulatory Commission.
``(3) Covered large load.--
``(A) In general.--The term `covered large load'
means a new or expanded nonresidential electric load,
or a group of such loads under common ownership,
control, or affiliation at a single site or at
contiguous or adjacent sites sharing electric
infrastructure (including phased development), that has
an aggregate requested or projected peak electric
demand of not less than 150 megawatts behind a single
point of interconnection.
``(B) Combined configurations.--A load or group of
loads described in subparagraph (A) shall be a covered
large load without regard to whether it is proposed to
be interconnected, studied, or served in combination
with 1 or more generation or energy storage resources,
and peak electric demand shall be measured without
reduction for any such resource.
``(4) Covered large-load customer.--The term `covered
large-load customer' means a person that owns, controls, or
operates a covered large load.
``(5) Dedicated resource.--The term `dedicated resource'
means a new or incremental generation resource, energy storage
resource, or enforceable flexibility arrangement, including a
resource located behind the meter of, co-located with, or
proximate to and electrically deliverable to the applicable
covered large load, that is dedicated to the covered large load
and subject to 1 or more enforceable, metered commitments.
``(6) Direct assignment facility.--The term `Direct
Assignment Facility' means a facility, or any portion of a
facility, that is--
``(A) constructed for the sole use or benefit of a
particular covered large-load customer;
``(B) classified as a Direct Assignment Facility
under the applicable tariff or service agreement
accepted or approved by the Commission, consistent with
the definition of the term `Direct Assignment
Facilities' in the pro forma open access transmission
tariff established by the Commission under section
35.28 of title 18, Code of Federal Regulations (or a
successor regulation), as adapted by the Commission for
covered large loads; and
``(C) specified as a Direct Assignment Facility in
the applicable tariff or service agreement accepted or
approved by the Commission.
``(7) Interconnection facility.--The term `Interconnection
Facility' means a facility classified as an Interconnection
Facility under the applicable tariff or service agreement
accepted or approved by the Commission, consistent with the
definition of the term `Interconnection Facilities' in the
standard interconnection procedures and agreements established
by the Commission under section 35.28 of title 18, Code of
Federal Regulations (or a successor regulation), as adapted by
the Commission for covered large loads.
``(8) Network upgrade.--The term `Network Upgrade' means an
addition, modification, or upgrade to the transmission system
of a transmitting utility, at or beyond the point at which the
Interconnection Facilities for a covered large load connect to
that system, that is required to accommodate the
interconnection of, or transmission service to serve, the
covered large load, consistent with the definition of the term
`Network Upgrades' in the standard interconnection procedures
and agreements established by the Commission under section
35.28 of title 18, Code of Federal Regulations (or a successor
regulation), as adapted by the Commission for covered large
loads.
``(9) Stand alone network upgrade.--The term `Stand Alone
Network Upgrade' means a Network Upgrade classified as a Stand
Alone Network Upgrade under the applicable tariff or service
agreement accepted or approved by the Commission, consistent
with the definition of the term `Stand Alone Network Upgrades'
in the standard interconnection procedures and agreements
established by the Commission under section 35.28 of title 18,
Code of Federal Regulations (or a successor regulation), as
adapted by the Commission for covered large loads.
``(b) Jurisdiction Over Large Load Interconnection.--
``(1) In general.--The Commission shall have jurisdiction
over the interconnection of any covered large load to 1 or more
facilities used for the transmission of electric energy in
interstate commerce.
``(2) Treatment.--The interconnection described in
paragraph (1) shall be--
``(A) subject to the requirements of this section
and sections 205 and 206; and
``(B) considered to be a component of open access
transmission service.
``(3) Included matters.--The jurisdiction of the Commission
under paragraph (1) includes--
``(A) flexible interconnection service, subject to
enforceable operating limits;
``(B) provisional or phased interconnection
service; and
``(C) the study and interconnection, separately or
together, of a covered large load and any associated
generation, energy storage, or verifiable load
flexibility, including a dedicated resource.
``(c) Rulemaking.--
``(1) In general.--Not later than 1 year after the date of
enactment of this section, the Commission shall issue a final
rule, applicable to each transmitting utility, establishing
standards and procedures for the interconnection of covered
large loads.
``(2) Inclusions.--The rule under paragraph (1) shall
include pro forma provisions and regionally tailored
requirements.
``(3) Threshold criteria.--The rule under paragraph (1)
shall establish criteria and procedures for determining whether
a load or group of loads is a covered large load.
``(d) Required Standards and Procedures.--The rule issued under
subsection (c) shall establish standards and procedures governing each
of the following:
``(1) Study process.--Timelines, readiness requirements,
and study procedures for interconnection requests for covered
large loads that--
``(A) protect other customers from the costs of
speculative or duplicative requests;
``(B)(i) identify reasonable alternatives,
including the services and configurations described in
subsection (b)(3) and advanced transmission
technologies;
``(ii) present the alternatives, with estimated
costs and schedules, to the covered large-load
customer; and
``(iii) permit the covered large-load customer to
elect among the alternatives in accordance with the
applicable tariff; and
``(C) provide for the services and configurations
described in subsection (b)(3), at the election of the
covered large-load customer, where consistent with
reliable operation of the bulk-power system.
``(2) Classification and allocation of transmission
costs.--
``(A) Classification.--Criteria and procedures
governing the classification of facilities as
Interconnection Facilities, Direct Assignment
Facilities, Network Upgrades, or Stand Alone Network
Upgrades for a covered large load, consistent with the
definitions in subsection (a), with each classification
supported by the record of the applicable study.
``(B) Interconnection and direct assignment
facilities.--A requirement that--
``(i) each applicable tariff or service
agreement identify the Interconnection
Facilities and Direct Assignment Facilities for
a covered large load; and
``(ii) 100 percent of the costs of those
facilities be--
``(I) directly assigned to, and
fully borne by, the applicable covered
large-load customer; and
``(II) paid or secured as provided
under paragraph (3).
``(C) Network upgrades.--Costs of Network Upgrades
shall be allocated to covered large-load customers, and
those costs shall be credited back against transmission
service charges, in a manner that is consistent with
the standard interconnection procedures and agreements
established by the Commission under section 35.28 of
title 18, Code of Federal Regulations (or a successor
regulation), as adapted by the Commission for covered
large loads.
``(D) Option to build.--A covered large-load
customer may elect to construct its own Network
Upgrades and Interconnection Facilities under an option
to build, in a manner that is consistent with the
standard interconnection procedures and agreements
established by the Commission under section 35.28 of
title 18, Code of Federal Regulations (or a successor
regulation), as adapted by the Commission for covered
large loads.
``(3) Payment and financial security.--
``(A) In general.--Requirements for--
``(i) the payment of costs allocated to a
covered large-load customer; and
``(ii) financial security designed to
protect any customer from unrecovered costs if
a covered large load fails to proceed or
perform.
``(B) Requirements.--The provision of financial
security described in subparagraph (A)(ii) shall not
alter the final allocation of costs.
``(4) Transparency.--Disclosure to the applicable covered
large-load customer, each applicable State commission, and the
Commission of--
``(A) the classification of, estimated and final
costs of, allocation of costs for, and method of cost
recovery for the facilities associated with a covered
large load; and
``(B) the alternatives evaluated, subject to
appropriate protection of critical electric
infrastructure information (as defined in section
215A(a)).
``(5) Reliability.--Standards to ensure that the
interconnection of covered large loads is consistent with
current and future reliability standards (as defined in section
215(a)).
``(e) Voluntary Funding of Regional and Interregional Facilities.--
``(1) In general.--Except as provided in paragraph (2),
nothing in this section alters the allocation of the costs of
transmission facilities selected in a regional or interregional
transmission plan under a planning process accepted or approved
by the Commission.
``(2) Voluntary funding.--The Commission shall include in
the rule issued under subsection (c) a mechanism to allow a
covered large-load customer to voluntarily fund all or a
portion of a transmission facility selected in a regional or
interregional transmission plan under a planning process
accepted or approved by the Commission that plans for the
transmission needs of anticipated load growth in exchange for a
Commission-defined right to transmission service enabled by the
funded facility, subject to the conditions that such funding--
``(A) shall reduce the costs otherwise allocated
pursuant a regional or interregional cost allocation
method accepted or approved by the Commission;
``(B) shall not impact whether the transmission
facility is selected under the rules of the Commission;
and
``(C) except as provided in subparagraph (A), shall
not impact how the costs of the transmission facility
are allocated under the rules of the Commission.
``(f) Savings Provisions.--
``(1) Commission authority; pending proceedings.--Nothing
in this section--
``(A) limits or impairs any authority of the
Commission under any other provision of law; or
``(B) affects any proceeding pending before, or any
order issued by, the Commission before the date of
enactment of this section.
``(2) ERCOT.--This section does not apply to ERCOT or an
ERCOT utility (as those terms are defined in section 212(k)(2))
with respect to the transmission of electric energy occurring
wholly within ERCOT.''.
(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, 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''.
<all>