Enhancing Electric Grid Resilience Act
- Sponsor
- Sen. Welch, Peter [D-VT]
- Committees
- Energy and Natural Resources Committee (primary)
- Last action
- Jul 22, 2026
Bottom line
The bill creates a new federal mechanism for FERC to allocate the costs of significant new or upgraded interstate and offshore electric transmission lines, aiming to facilitate their development by distributing costs among beneficiaries.
What it actually does
This bill amends the Federal Power Act to establish a new framework for the Federal Energy Regulatory Commission (FERC) to allocate the costs of certain large-scale interstate and offshore electric transmission facilities. It allows entities proposing such facilities to file tariffs with FERC, mandating that costs be allocated to customers within applicable transmission planning regions in a manner roughly commensurate with a broad range of anticipated benefits, including reliability, economic, public policy, resilience, and environmental factors.
Proponents argue
Proponents argue that this bill addresses a critical barrier to modernizing and expanding the electric grid, particularly for large-scale projects that cross state lines or are located offshore. By providing a clear, benefit-based cost allocation mechanism, it incentivizes investment in infrastructure necessary for grid reliability, resilience, and the integration of diverse energy sources, ultimately supporting energy transition goals and potentially lowering long-term costs for consumers.
Opponents contend
Opponents might express concerns that this bill could lead to consumers in certain regions bearing costs for projects from which they perceive limited direct benefit, potentially increasing electricity rates. They might also argue that the 'broad range of benefits' criteria for cost allocation is too vague, allowing for subjective interpretations by FERC that could disproportionately burden specific customer groups or states without clear, direct local advantages.
The bill is very short and straightforward, making it accessible for a quick read and evaluation of its core provisions.
Section 2, adding new FPA Section 224(a)
Authority for Cost Allocation
This provision authorizes any entity proposing to own, control, or operate a 'transmission facility of national significance' to file a tariff with the Federal Energy Regulatory Commission (FERC) to allocate the costs of such a facility. It requires FERC to ensure that costs are allocated to customers within applicable transmission planning regions in a manner 'at least roughly commensurate' with the estimated anticipated benefits.
Supporters argue
Supporters argue this mechanism is crucial for financing large, complex transmission projects that provide benefits across multiple regions but face challenges in cost recovery under existing frameworks. It provides regulatory certainty for investors.
Critics contend
Critics might argue that this could lead to consumers in some regions subsidizing projects primarily benefiting others, potentially increasing their electricity bills without clear, direct local advantages.
Tradeoffs
Balances the need for new infrastructure investment against concerns about who pays for multi-regional benefits.
Section 2, adding new FPA Section 224(a)(2) and (3)
Mandated Cost Allocation Principles
This section mandates that FERC apply specific principles when allocating costs. It requires costs to be allocated to customers in a way that is 'at least roughly commensurate' with the estimated anticipated benefits (cost causation principle). Furthermore, it specifies that these benefits should encompass a broad range, including reliability, economic, public policy, resilience, environmental, and other reasonably anticipated benefits.
Section 2, adding new FPA Section 224(b)
Definition of Transmission Facility of National Significance
This provision defines what constitutes a 'transmission facility of national significance' eligible for the new cost allocation framework. It includes new interstate or offshore electric power transmission lines with a capacity of at least 1,000 megawatts, or expansions/upgrades to existing lines that increase capacity by at least 500 megawatts, provided construction is completed on or after the date of enactment.
Section 2, adding new FPA Section 224(c)
Preservation of Existing FERC Authority
This provision clarifies that the new section does not diminish or affect FERC's existing authority to approve the allocation of costs for transmission facilities other than those defined as 'transmission facilities of national significance.' It ensures that FERC retains its current regulatory powers for other types of transmission projects.