HR7728-119

What This Bill Does

The Connect the Grid Act removes several Federal Power Act exemptions affecting ERCOT and entities otherwise exempt under section 201(f), expanding federal requirements for the Texas grid. Within six months, the Federal Energy Regulatory Commission must hold a technical conference and publish the compliance steps for affected entities.

Within 30 days, FERC must order the national Electric Reliability Organization to propose a reliability standard setting minimum transfer capability between ERCOT and the Southwest Power Pool, Midcontinent Independent System Operator, and neighboring balancing authorities in the Western Interconnection. The bill supplies a range for each interface. The standard may be approved only if each paired region jointly submits a plan within one year that names entities to build or modify transmission and schedules completion by January 1, 2037.

Those plans must prioritize grid-enhancing technologies, existing rights-of-way, degraded land, renewable-energy access, community involvement, Tribal consultation, labor outreach, registered apprenticeships, and prevailing wages. Covered projects remain subject to the National Environmental Policy Act and Endangered Species Act. The Energy Secretary must consider national-interest transmission-corridor designation for affected areas.

The Energy Department also must report to Congress within one year on the reliability, climate, and cost benefits of stronger electric interconnection with Mexico and identify projects offering the greatest combined benefits.

Who Benefits and How

Texas electricity customers and neighboring grid users benefit from greater transfer capacity and reduced isolation during supply emergencies. Transmission developers, grid-enhancing-technology suppliers, renewable generators, registered apprentices, and construction workers paid prevailing wages gain project and employment opportunities. Environmental-justice communities, Tribal communities, and labor organizations benefit from required outreach and participation opportunities.

Who Bears the Burden and How

ERCOT, neighboring transmission organizations, balancing authorities, and designated transmission builders must plan, site, finance, construct, or modify facilities by the statutory deadline. Utilities and electricity customers may bear project and compliance costs even as reliability improves. FERC, the Electric Reliability Organization, and Energy Department staff must write standards, oversee joint plans, convene technical assistance, evaluate corridor designations, and complete the Mexico study. Project developers must satisfy environmental review, outreach, apprenticeship, and wage requirements.

Key Provisions

• Expands specified Federal Power Act requirements affecting ERCOT and otherwise exempt entities.
• Requires FERC to convene a compliance conference within six months.
• Directs a proposed interregional transfer-capability reliability standard within 30 days.
• Requires joint transmission plans from ERCOT and each neighboring grid region within one year.
• Mandates completion of planned facilities or modifications by January 1, 2037.
• Prioritizes grid technology, existing corridors, degraded land, renewable access, community participation, apprenticeships, and prevailing wages.
• Preserves National Environmental Policy Act and Endangered Species Act review for covered projects.
• Requires an Energy Department study of electric interconnection with Mexico within one year.