Reps. Barr and Peters Introduce Bill to Slash Permitting Times, Lower Energy Costs, and Prevent Blackouts

Washington, D.C. - This week, U.S. Representatives Andy Barr (R-KY) and Scott Peters (D-CA) will reintroduce the Streamlining Powerlines Essential to Electric Demand (SPEED) and Reliability Act, a bill to significantly hasten the siting and permitting of critically needed electric transmission lines. Faster approvals will let us build the electrical lines that carry energy from where it is generated to where it is needed sooner. This will lead to lower costs for consumers and prevent blackouts.

"AI data centers and advanced manufacturing are at the core of America's economic future, but they can't run without reliable, affordable power. The SPEED and Reliability Act cuts red tape and builds the transmission lines we need to lower costs and ensures we stay ahead of China in the race for AI," said Rep. Barr.

"We cannot wait a decade plus for individual transmission lines to be approved if we don't want to fall behind China and our adversaries," said Rep. Peters. "This bill will lower costs for consumers, improve reliability, and help secure America's energy independence."

Under the current National Interest Electric Transmission Corridor (NIETC) program, the Department of Energy (DOE) and the Federal Energy Regulatory Commission (FERC) are supposed to work together to designate broad corridors for transmission development, with the goal of streamlining siting and permitting for high-impact transmission lines in the national interest.

However, the process has yet to result in a single transmission project due to widespread opposition to this corridor-based approach. The SPEED and Reliability Act reforms this program by removing the ability of the Secretary of Energy to designate corridors, centralizes environmental reviews at the bipartisan and independent FERC, and includes additional guardrails to protect customers, benefit local communities, and respect state authority.

The SPEED and Reliability Act reforms the existing backstop siting authority for interstate electric transmission lines by removing the redundant, top-down role of the DOE. In particular, the SPEED and Reliability Act:

• Removes the Secretary of Energy's authority to designate broad NIETCs;
• Allows FERC to issue a construction permit for individual national interest transmission lines that reduce grid congestion, improve reliability, and provide a clear set of economic and reliability benefits to customers;
• Includes guardrails that protects consumers, benefit local communities, and respects state authorities by:
• • Allocating costs only to customers that benefit, using a minimum specified list of electric reliability criteria, along with specified economic benefits
  • Preserves current law by ensuring that states have at least one year to respond to applications before applicants can seek approval from FERC
  • Prioritizes use of existing rights-of-way and advanced conductors to lower impacts and costs;
• Mandates that FERC engage with states, tribes, and private property owners throughout the process

Benefits: The bill would improve grid reliability, reduce costs for Americans, and boost economic development and national security.

• Improved Reliability: Increasing power flows between regions can help keep the lights on during extreme weather events.
• • In 2023, transmission congestion - the U.S. energy grid's inability to send power from where it's abundant to where it's needed - cost U.S. ratepayers $11.5 billion.
  • During Winter Storm Uri, customers in the Great Plains and the Gulf Coast each could have saved in excess of $100 million with each additional gigawatt of transmission interconnection.
• Reduced Costs: Just as an interstate highway can displace the need for disproportionate spending on local roads, high-impact transmission lines can save ratepayers billions of dollars every year by replacing less efficient, smaller projects and connecting customers to the cheapest power sources.
• • Nearly 60 utility companies are set to increase electricity rates this year by more than $38 billion, affecting more than 57 million Americans.
  • On average, electricity costs are 5.5% higher today than they were a year ago. Residential rates are also projected for a huge increase: up to 18% in the next few years.
• Economic Development: Power demand is growing as manufacturing returns to the U.S. and key, strategic industries like artificial intelligence and microchip manufacturing continue to boom. More high-impact transmission lines will help support this economic development across the country, especially in rural communities.
• • Smarter investments in transmission can save residential consumers up to $14 billion per year after accounting for the costs. For every $1 invested in transmission lines, consumers receive between $3.80 to $4.70 in benefits.

Full text of the bill is available here.

###