What could the Bipartisan American Affordability and Jobs Act mean for Congress?
The bill could mandate new federal standards to improve US grid connectivity The Bipartisan American Affordability and Jobs Act proposes requiring the Federal Energy Regulatory Commission (FERC) to establish standards for interregional transmission planning. This mandate would aim to address the US grid's lag compared to China and Europe, where China added about 250 gigawatts of interregional transmission capacity between 2014 and 2020. For Congress, the bill represents a specific legislative agenda item that must be debated and passed to implement these new federal standards and create a pathway for interregional transmission projects to be permitted and built.
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How it reaches Congress
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A bipartisan Senate bill, the Bipartisan American Affordability and Jobs Act, aims to require the Federal Energy Regulatory Commission to establish standards for interregional transmission planning. This effort seeks to create a process for planning transmission between regions to help keep electricity more reliable and affordable.
The full event1independent outlet -
For FERC to establish these standards and create the necessary pathways for projects, the Bipartisan American Affordability and Jobs Act must be passed by Congress. The bill is currently a bipartisan U.S. Senate bill and is expected to begin consideration after the Nov. 3 midterm elections.
No report states this step directly. Brind drew it from the reporting on each side of it, so treat it as an informed guess.
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The facts so far
As reported. Each one links to where it comes from.
- The Bipartisan American Affordability and Jobs Act would require the Federal Energy Regulatory Commission to establish standards for interregional transmission planning.hometownregister.com
- China added about 250 gigawatts of interregional transmission capacity between 2014 and 2020.hometownregister.com
- Europe added about 50 gigawatts of interregional transmission capacity during that period.hometownregister.com
- The bill was introduced by two Republican and two Democratic senators.hometownregister.com
Why it matters
The stakes for the US grid are high, as the current system is described as 'barely connected.' The lack of interregional transmission capacity means that in most regions, capacity is exchanged at less than 10%, limiting the ability to transfer power during peak load. Passing this legislation could significantly improve electricity reliability and affordability nationwide by creating a more interconnected power grid.
Globally, the US system lags behind both China and Europe in interregional transmission capacity. The bill also includes provisions aimed at streamlining reviews under the National Environmental Policy Act and National Historic Preservation Act, which could have a significant effect on long-distance transmission projects by narrowing the scope of required federal review.
What we don't know yet
- Will the Senate approve the Bipartisan American Affordability and Jobs Act?
- How will utilities respond to the new planning requirements if they have financial incentives to invest only within their own service territories?
What would change this answer
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Who else could feel it
Other possible ripples from the same event.
- North American Electric Reliability CorporationLikelyNERC may face strong operational changes as new FERC standards mandate grid connectivity
- PJM InterconnectionPossibleNew FERC standards could require PJM Interconnection to change its operational planning.
- ISO New EnglandPossibleISO New England may face new planning requirements under proposed FERC standards
- Southwest Power PoolPossibleNew FERC standards could reshape Southwest Power Pool's transmission planning
Reporting
- hometownregister.comOct 7
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Brind's analysis is written by AI from the reporting linked above and can be wrong. This explainer is a possibility worth considering, not a forecast: steps marked as Brind's reasoning are not stated in the reporting. It is not investment advice; do your own research.