H.R. 5600: Streamlining Powerlines Essential to Electric Demand and Reliability Act of 2025

This bill, known as the Streamlining Powerlines Essential to Electric Demand and Reliability Act of 2025 (SPEED and Reliability Act), aims to simplify and expedite the process for constructing and modifying electric transmission facilities deemed necessary for the national interest. Here’s a breakdown of the key components and provisions of the bill:

Purpose

The primary goal of the bill is to enhance the reliability of electric transmission systems and reduce congestion in interstate commerce by facilitating the siting of new transmission lines and modifications to existing ones. This is driven by the growing demand for electricity and the need to integrate renewable energy sources.

Key Definitions

• Commission: Refers to the Federal Energy Regulatory Commission (FERC), which oversees electrical transmission regulations.
• Improved Reliability: Refers to enhancements in service that benefit customers, including compliance with reliability standards and reduced power outages.
• Landowner Input: Involves feedback from affected landowners, ensuring their concerns are considered in the permitting process.

Transmission Permitting

The bill amends the existing permitting process for new electric transmission facilities by:

• Mandating Permits: The Commission must issue permits for necessary construction or modifications after a public comment period, unless specific conditions apply.
• Public Interest Requirements: Proposals for new infrastructure must demonstrate they serve public interests, such as reducing transmission congestion and improving reliability and energy independence.

State Consultation and Authority

The bill emphasizes the importance of state-level input in the permitting process by:

• Preserving State Authority: States retain authority in permitting, and the Commission must consult with them before deciding on applications.
• Affecting Entities' Input: Affected stakeholders, including local governments, landowners, and indigenous tribes, are provided opportunities to comment on proposed projects.

Cost Allocation

The legislation outlines how costs related to new or modified transmission facilities should be allocated:

• Transmission Tariffs: Utilities receiving benefits from improved transmission must file cost allocation plans with the Commission.
• Ratepayer Protections: Those who do not benefit from new infrastructure will not be involuntarily charged for its costs.

Coordination of Federally Permitted Projects

The bill designates the Commission as the lead agency for coordinating federal approvals pertaining to electric transmission projects. This streamlining is intended to minimize delays and enhance the efficiency of project implementation.

Interstate Compacts

The bill amends aspects regarding interstate compacts, ensuring that certain agreements can facilitate the approval of electric transmission projects across state lines.

Jurisdiction and Regulatory Burdens

The act establishes specific instances where the Commission has jurisdiction over various transmitting utilities while clarifying that it will not lead to new regulatory burdens for agencies.

Relevant Companies

• None found