Section 1 Short title
This Act may be cited as the “Connect the Grid Act of 2026”.
Connect the Grid Act of 2026
A BILL
To interconnect the Electric Reliability Council of Texas to its neighbors, and for other purposes.
Sec. 2 Definitions
In this Act:
Abandoned mine land— The term abandoned mine land means land, water, or a watershed that is contaminated or scarred by extraction, beneficiation, or processing of ores or minerals (which may include phosphate, but does not include coal).
Brownfield site— The term brownfield site has the meaning given the term in section 101 of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9601).
Commission— The term Commission means the Federal Energy Regulatory Commission.
Electric Reliability Organization— The term Electric Reliability Organization has the meaning given the term in section 215(a) of the Federal Power Act (16 U.S.C. 824o(a)).
Environmental justice community— The term environmental justice community means a community with significant representation of communities of color, low-income communities, or Tribal and Indigenous communities that experiences, or is at risk of experiencing, higher or more adverse human health or environmental effects.
ERCOT— The term ERCOT means the Electric Reliability Council of Texas.
Grid-enhancing technology— The term grid-enhancing technology means a solution that increases the transfer capability of high-voltage transmission facilities.
MISO— The term MISO means the Midcontinent Independent System Operator transmission organization.
National Priorities List— The term National Priorities List means the National Priorities List developed by the President in accordance with section 105(a)(8)(B) of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9605(a)(8)(B)).
Registered apprenticeship program— The term registered apprenticeship program means an apprenticeship program registered under the Act of August 16, 1937 (commonly known as the “National Apprenticeship Act”; 50 Stat. 664, chapter 663; 29 U.S.C. 50 et seq.), that meets the standards of subpart A of part 29, and part 30, of title 29, Code of Federal Regulations (or successor regulations).
Reliability standard— The term reliability standard has the meaning given the term in section 215(a) of the Federal Power Act (16 U.S.C. 824o(a)).
SPP— The term SPP means the Southwest Power Pool transmission organization.
Total transfer capability— The term total transfer capability has the meaning given the term in section 37.6(b)(1)(vi) of title 18, Code of Federal Regulations (as in effect on the date of enactment of this Act).
Transmission facility— The term transmission facility means a facility that is used for the transmission of electric energy in interstate commerce, including a transmission line.
Transmission organization— The term transmission organization has the meaning given the term in section 215(a) of the Federal Power Act (16 U.S.C. 824o(a)).
Tribal and Indigenous community— The term Tribal and Indigenous community means a population of people who are members of—
a federally recognized Indian Tribe;
a State-recognized Indian Tribe;
an Alaska Native or Native Hawaiian community or organization; or
any other community of Indigenous people located in a State.
Tribal government— The term Tribal government means the governing body of an Indian Tribe.
Western Interconnection— The term Western Interconnection means the synchronously operated electric transmission grid located in the western part of North America, including parts of Montana, Nebraska, New Mexico, South Dakota, Texas, Wyoming, and Mexico, and all of Arizona, California, Colorado, Idaho, Nevada, Oregon, Utah, Washington, and the Canadian Provinces of British Columbia and Alberta.
Sec. 3 Jurisdiction with respect to ERCOT
Application of part II of the Federal Power Act— Section 201(b)(2) of the Federal Power Act (16 U.S.C. 824(b)(2)) is amended—
in the first sentence, by striking “section 201(f)” and inserting “subsection (f)”; and
in the second sentence—
by striking “210, 211, 211A, 212,”; and
by striking “an electric utility or other entity” and inserting “any entity that is otherwise exempt under subsection (f)”.
Definition of public utility— Section 201(e) of the Federal Power Act (16 U.S.C. 824(e)) is amended by striking “210, 211, 211A, 212,”.
Repeal of ERCOT Exemptions—
Section 212 of the Federal Power Act (16 U.S.C. 824k) is amended by striking subsection (k).
Section 216 of the Federal Power Act (16 U.S.C. 824p) is amended by striking subsection (k).
Section 217 of the Federal Power Act (16 U.S.C. 824q) is amended—
by striking subsection (h); and
by redesignating subsections (i) through (k) as subsections (h) through (j), respectively.
Section 220 of the Federal Power Act (16 U.S.C. 824t) is amended by striking subsection (f).
Technical conference— Not later than 180 days after the date of enactment of this Act, the Commission shall convene a technical conference to assist entities affected by the amendments made by this section with compliance with any requirements made applicable to those entities pursuant to those amendments, including by publishing the steps necessary for such compliance.
Sec. 4 Electric reliability
in subsection (a)(3), in the second sentence, by striking “enlarge such facilities or to construct new transmission capacity or generation capacity” and inserting “construct new generation capacity”; and
in subsection (i)(2), by striking “or transmission”.
Reliability standard for total transfer capability—
In general— Not later than 30 days after the date of enactment of this Act, the Commission shall order the Electric Reliability Organization to submit to the Commission a proposed reliability standard that requires minimum total transfer capability of—
between 4.3 and 12.6 gigawatts between the area under functional control of ERCOT and the area under functional control of SPP;
between 2.5 and 16.2 gigawatts between the area under functional control of ERCOT and the area under functional control of MISO; and
between 2.6 and 7.9 gigawatts between the area under functional control of ERCOT and the Western Interconnection.
Contents— The Commission may only approve a proposed reliability standard described in paragraph (1) if that reliability standard—
requires minimum total transfer capability as described in paragraph (1); and
requires each of ERCOT and SPP, ERCOT and MISO, and ERCOT and 1 or more neighboring balancing authorities in the Western Interconnection (as determined by the Electric Reliability Organization) to jointly submit, not later than 1 year after the date of enactment of this Act, a plan that—
designates 1 or more entities to site and construct new transmission facilities, or modify existing transmission facilities, to achieve the applicable minimum total transfer capability; and
includes a timeline for that siting and construction or modification, which timeline shall include that such siting and construction or modification be completed by January 1, 2035.
Priority— Any plan for the siting and construction or modification of transmission facilities described in paragraph (2)(B) shall prioritize—
the use of grid-enhancing technologies;
the use of existing rights-of-ways, such as highways and railroads, to site and construct new transmission facilities;
the siting and construction of new transmission facilities on degraded land, including sites on the National Priorities List, brownfield sites, landfills, abandoned mine land, and contaminated or abandoned agricultural land;
the siting and construction of new transmission facilities in a manner that expands access to renewable energy sources, including wind, solar, and geothermal sources;
providing meaningful community involvement opportunities, including by conducting outreach to—
environmental justice communities, including by conducting planning meetings, set at times and places to maximize the number of community members who can conveniently attend, with appropriate services, including translation and interpreting services and virtual attendance, in those environmental justice communities;
Tribal and Indigenous communities;
Tribal governments; and
relevant labor organizations; and
the use of registered apprenticeship programs and prevailing wages, as determined by the Secretary of Labor in accordance with subchapter IV of chapter 31 of title 40, United States Code.
Environmental review— Any project to site, construct, or modify transmission facilities that is conducted to comply with the reliability standard described in paragraph (1) shall be subject to the requirements of the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) and the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.).
Savings provision— Nothing in this subsection overrides or inhibits the authority of the Commission to require minimum interregional transfer between regions in a pair or grouping of regions other than a pair or grouping of regions described in subparagraph (A), (B), or (C) of paragraph (1).
Consideration for national interest electric transmission corridors— In carrying out section 216 of the Federal Power Act (16 U.S.C. 824p), the Secretary of Energy shall consider designating as a national interest electric transmission corridor any area in which transmission facilities will be sited and constructed or modified pursuant to this section.
Sec. 5 Increased borrowing authority under the Transmission Facilitation Program
Section 40106(d)(2) of the Infrastructure Investment and Jobs Act (42 U.S.C. 18713(d)(2)) is amended by striking “$2,500,000,000” and inserting “$13,500,000,000”.
Sec. 6 Study and report on benefits of interconnection with Mexico
Definition of covered facility— In this section, the term covered facility means a facility for the generation, transmission, or sale of electric energy.
Study and report— Not later than 1 year after the date of enactment of this Act, the Secretary of Energy shall conduct a study and submit to Congress a report on—
the reliability, climate, and cost benefits of the interconnection of covered facilities in the United States with covered facilities in Mexico; and
the siting and construction, or modification, of covered facilities that will bring the most cumulative benefits.