HR-2986-119
Forwarded by Subcommittee to Full Committee (Amended) by Voice Vote.
Sponsored by Kathy Castor (D-FL)
What it does
This bill would require the Federal Energy Regulatory Commission (FERC) to begin a rulemaking within 180 days and issue a final rule within 18 months to streamline how new electricity generation and energy storage projects connect to the power grid. The rule would require transmission providers to use more accurate modeling, share best practices, adopt advanced computing tools, and improve transparency and performance tracking throughout the interconnection process. The bill explicitly preserves FERC's existing authority over transmission cost allocation.
Who benefits
Developers of new power generation projects (solar, wind, natural gas, nuclear, and others) who face long waits in the interconnection queue. Energy storage project developers (batteries, pumped hydro, hydrogen, flywheels, etc.). Electricity consumers who may benefit from lower long-run costs if more generation capacity reaches the grid faster. Rural and suburban communities where new generation projects are sited. Grid operators and regional transmission organizations that would receive clearer procedural standards. States with renewable energy mandates that depend on timely interconnection of new projects.
Who is hurt
Incumbent transmission providers and utilities that would face new procedural mandates and compliance costs. Existing generators already in interconnection queues who may see their queue position or cost allocations affected by procedural changes. Ratepayers who may bear costs of required grid upgrades, though the bill preserves existing cost-allocation rules. FERC staff who must complete a complex rulemaking on a compressed 18-month timeline. Smaller or less-capitalized generation developers who may struggle to navigate revised procedures even if they are faster overall.
Supporters argue
Supporters argue that the current interconnection queue is severely backlogged — Lawrence Berkeley National Laboratory data show over 2,600 gigawatts of generation and storage projects were waiting in queues as of 2023, with average wait times exceeding four years. They contend that these delays directly prevent new capacity from reaching consumers, raise electricity costs, and undermine grid reliability. By giving FERC a clear congressional mandate and a firm deadline, the bill addresses the major questions doctrine concern raised in West Virginia v. EPA by providing explicit statutory authorization for procedural reform.
Opponents argue
Opponents argue that the bill's 18-month rulemaking deadline is unrealistically short for a technically complex rule affecting hundreds of transmission providers across multiple grid regions, potentially producing a rushed and legally vulnerable final rule. They contend that interconnection backlogs stem partly from a surge in low-quality or speculative project applications, and that faster processing without stricter application standards could worsen queue congestion rather than relieve it. Critics also argue that mandating specific modeling and study methodologies at the federal level may not account for the significant operational differences between regional grid systems.
Constitutional context
Congress's authority to regulate interstate electricity transmission rests on the Commerce Clause (Art. I, §8, cl. 3), and FERC's jurisdiction over wholesale electricity and interstate transmission is well-established under the Federal Power Act. Because this bill explicitly directs FERC to act and specifies the scope of the rulemaking, it is designed to provide the clear congressional authorization that West Virginia v. EPA (2022) and Loper Bright v. Raimondo (2024) now require for significant agency rules — reducing, though not eliminating, the risk of a major questions challenge.
Checks and balances
Congress gains authority by directing FERC to act on a specific timeline; FERC retains discretion over the content of the final rule; courts retain independent review authority over the resulting regulations under the post-Loper Bright standard, without automatic deference to FERC's interpretations.
Historical precedent
FERC Order 2023 (2023) previously overhauled generator interconnection procedures under existing authority, and was immediately challenged in court by transmission providers — demonstrating both the precedent for this type of rulemaking and its legal vulnerability without explicit congressional direction.