Democrats' long-shot transmission bill starts dialogue on permits

Democratic Reps. Sean Casten of Illinois and Mike Levin of California are set to introduce a bill on Wednesday that would modify the federal permitting system to allow the volume of transmission lines needed to deliver renewable energy to consumers across the country.

The bill, which Levin's office said has 71 Democratic cosponsors, would amend the Federal Power Act on how the nation plans, pays for and moves power. 

“We need an energy policy that puts U.S. energy consumers first, and we know that that's paced by transmission,” Casten said in an interview. 

The bill would direct the Federal Energy Regulatory Commission to improve inter-regional planning; allow the costs of major transmission projects and upgrades to be allocated between beneficiaries, unlike current policy that has been criticized for holding up projects through lack of strict guidance; and require a minimum electricity transfer capacity between grid regions.

That last part aims to increase the amount of electricity that can be moved from one area to another address major outages, like one caused by a winter storm that hit Texas in 2021.

Casten and Levin said the changes to how the federal government permits electricity transmission are necessary to realize the full benefits of last year's reconciliation law (PL 117-169). According to multiple analyses, the law could help reduce emissions by as much as 40 percent by the end of the decade, compared to 2005 levels. That would put the U.S. within striking distance of its Paris Agreement contribution to reduce emissions 50 to 52 percent by 2030, which the White House has said would be achievable through rulemaking and executive actions.

However, the estimates are based on an assumption that the transmission infrastructure exists to deliver this renewable energy to consumers. This would require more than doubling the rate at which new transmission capacity is being built, according to the Energy Department.

Last Congress, Senate Energy and Natural Resources Chairman Joe Manchin III, D-W.Va., put forward a permitting overhaul proposal as part of a deal to garner his support for the reconciliation law. That proposal ultimately faced too much opposition from Republicans and some in Manchin’s party.

The June law (PL 118-5) that raised the debt ceiling included certain changes to permitting requirements under a law known as the National Environmental Policy Act. On transmission, though, the law only directed the North American Electric Reliability Corp. to study whether more capacity is needed between regions, a move many Democrats said was unnecessary. 

Manchin and the committee’s ranking member, John Barrasso, R-Wyo., have said they want to revisit permitting.

As debate continues, some Republicans argue that any changes to transmission permitting may ultimately diminish the role states play in grid planning. But Casten sees this argument as a way to protect the incumbents in the current system.

“Republican energy policy right now is basically focused on protecting the status quo, protecting producers and protecting exporters. And the threat that's posed by transmission is that transmission opens the world up to entrepreneurs,” he said.

Other provisions of the bill, first released as a discussion draft earlier this year, include a 30 percent investment tax credit for transmission projects and clarification that FERC has the responsibility to ensure electric utilities, when setting utility rates, take into account the external costs of greenhouse gas emissions.

The bill also would aim to incentivize the development of renewable energy on public lands, including by directing the Interior Department to seek to issue permits for 60 gigawatts of wind, solar and geothermal projects by the end of 2030. For offshore wind, it would codify leasing processes, formalize the leasing schedule and establish a fund to compensate ocean users affected by wind projects.

The legislation would require increased engagement during the permitting process to ensure earlier and “meaningful” consulting with communities affected by a project. It incorporates provisions from an environmental justice bill (HR 1705) introduced by House Natural Resources ranking member Raúl M. Grijalva, D-Ariz. Grijalva introduced a similar bill that advanced out of the committee last year when he was chairman.

Levin, who worked on NEPA issues as an environmental lawyer prior to his election to Congress, said that while some say these reviews delay projects, earlier consultation may ensure fewer legal battles down the line. 

“I never looked at NEPA as being the problem, or at least not a problem that you couldn't work through with doing a lot of community engagement upfront,” he said. 

Renewable energy groups such as the American Clean Power Association, American Council on Renewable Energy and Solar Energy Industries Association endorsed the bill, as did environmental groups including Earthjustice and the Natural Resources Defense Council, according to Levin's office.  

Casten said he hopes that by introducing the legislation and continuing to build support it will be in the mix when the window to address the federal permitting system opens again.

The measure would face an uphill battle in the Republican-controlled House and narrowly divided Senate.

“I think if we want to pass the whole package here it's going to take a Democratic majority,” Levin said. “But I do think that in the near term, we want to be part of any of these conversations around what permitting reform might mean, this year and next. And as the old expression goes, if you're not at the table you're on the menu.”