To Transmission Followers:
There have been several significant developments on transmission-related activities at the federal level.
First, President Biden signed into law the Inflation Reduction Act (IRA) of 2022, which contains several provisions totaling over $36 billion aimed at incentivizing increased development of electricity transmission infrastructure, including:
- $9.7 billion in loans and other financial assistance through the U.S. Department of Agriculture to eligible transmission systems to improve resiliency, reliability, and affordability.
- $5 billion in loan guarantees that can support loans up to $250 billion that can enable “operating energy infrastructure to avoid, reduce, utilize, or sequester air pollutants or anthropogenic emissions of greenhouse gases.”
- $2 billion for a direct loan program until 9/30/30 for transmission project development located in a National Interest Electric Transmission Corridor (NIETC). No NIETCs currently exist.
- An increase from $2-$20 billion in total loan guarantees for, among other options, “planning, construction, development, operation, maintenance, and improvement of tribal electrical generation, transmission, and distribution facilities located on Indian land.”
- $760 million for making grants to facilitate the siting of certain onshore and offshore transmission lines, contingent on the siting authority making a final decision on the transmission project within two years. The bill does not specify consequences should the siting authority fail to make a final decision.
- $100 million for expenses associated with convening stakeholders and conducting analysis related to interregional transmission development and development of transmission for offshore wind energy.
- $15 million to the Department of Interior to facilitate timely and efficient environmental reviews and authorizations of infrastructure projects by National Park Service, Bureau of Land Management, Bureau of Ocean Energy Management, the Bureau of Reclamation, the Bureau of Safety and Environmental Enforcement, and the Office of Surface Mining Reclamation and Enforcement.
The agreement on the provisions in the IRA, which enabled Senate passage, was announced by Senate Majority Leader Schumer (D-NY) and Sen. Manchin (D-WV). It includes separate draft text on siting and permitting reform when Congress returns from recess. At this time, it remains unclear what the eventual legislative text would contain, as well as prospects for passage.
Second, the Macro Grid Initiative (MGI) submitted a letter to FERC in response to its Notice of Proposed Rulemaking (NOPR) on Transmission Planning and Cost Allocation with 33 signatories representing a broad coalition of utilities; consumers; NGOs; think tanks; national trade associations; equipment providers; clean energy buyers; transmission developers, builders, and operators; independent power producers; and environmental organizations. The letter noted that the diversity of the signatories reflected the fast-growing and widespread recognition of the importance of improving the planning of the nation’s transmission system to support future needs. It also applauded the Commission for its leadership and encouraged it to act swiftly to finalize a strong planning rule to enable low-cost, clean, and reliable energy. The comment period on the FERC NOPR closed on August 18.
Third, House Select Committee on the Climate Crisis Chair Castor led six Representatives and three Senators in a bicameral letter urging FERC to strengthen its proposed rule on transmission planning and cost allocation by requiring transmission providers to ensure that transmission plans incorporate a minimum set of benefits. The letter also supported long-term transmission planning and expeditious action on queue reform and interregional transmission planning.
MGI research efforts continue with the August 9 release of an MGI-funded study, Enabling Low-Cost Clean Energy and Reliable Service Through Better Transmission Benefits Analysis: A Case Study of MISO’s Long Range Transmission Planning. The report highlights the Midcontinent Independent System Operator’s (MISO) Board of Directors’ recent approval of 18 new transmission lines, representing the largest transmission expansion to enable low-cost clean energy in U.S. history. It examined how MISO’s evaluation of the benefits of transmission was critical in enabling that expansion. The report also compared the benefits MISO used with those suggested in the FERC transmission planning NOPR, finding that MISO’s methodologies generally followed best practices, while identifying some areas for improvement.
Other planning entities and FERC can now follow MISO’s approach, along with the potential improvements, in their work on transmission planning. ACORE released the report to reporters on a live webinar event featuring report author Rob Gramlich, Michigan Public Service Commission Chair Dan Scripps, Iowa Consumer Advocate Jennifer Easler, MISO’s Director of Cost Allocation and Competitive Transmission, Jeremiah Doner, and ITC Holdings’ Manager of Federal Affairs, Devin McMackin. The event attracted over 80 attendees.
MGI-related work product continues to receive mentions in leading news publications. Some recent highlights include:
I hope to see you at the
ACORE Grid Forum on October 13 in Washington, D.C. -- please note announcement below.
Thank you all for your continuing interest in the Macro Grid Initiative.
Best regards,
Barbara Tyran
Director of Macro Grid Initiative
American Council on Renewable Energy
1150 Connecticut Ave NW, Suite 401 | Washington, D.C. 20036
E: tyran@acore.org | P: 202-777-7590
ACORE Grid Forum: Join us in Washington, D.C. on October 13
The 2022 ACORE Grid Forum is a one-day event that will convene regulators, renewable, storage and transmission companies, and leading grid experts in Washington, D.C. Hear experts discuss what needs to be done to improve interconnection and build out the transmission system to integrate those resources with sessions on these topics and more:
- Featured Keynote: Richard Glick, FERC Chairman
- Building the Transmission Necessary to Deliver a Low-Cost and Equitable Clean Energy Economy
- Pathways to a Clean Energy Grid - Contrasting Business as Usual vs. Growth Scenarios
- Accelerating the Deployment and Integration of Battery Storage & Hybrids
Don't miss this opportunity to forge new connections and network with some of the nation's leading grid experts. Register today!
