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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2211 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 2211

    To facilitate planning, construction, and operation of a secure 
                      national clean energy grid.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             April 30, 2009

  Mr. Inslee introduced the following bill; which was referred to the 
                    Committee on Energy and Commerce

_______________________________________________________________________

                                 A BILL

 
    To facilitate planning, construction, and operation of a secure 
                      national clean energy grid.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Clean Energy Superhighways 
Act of 2009''.

SEC. 2. FINDINGS.

    The Congress finds that--
            (1) electricity produced from renewable resources helps to 
        reduce greenhouse gas emissions, and limits emissions of other 
        pollutants regulated pursuant to the Clean Air Act, enhances 
        national clean energy superhighway, and provides substantial 
        economic benefits;
            (2) the lack of adequate electric transmission capacity is 
        one of the primary obstacles to the development of electric 
        generation facilities fueled by renewable energy resources;
            (3) it is in the national interest for the Federal 
        Government to implement policies that will enhance the amount 
        of electric transmission capacity available to take full 
        advantage of the Nation's renewable energy resources to 
        generate electricity; and
            (4) existing transmission planning processes are fragmented 
        across many jurisdictions, which results in difficult 
        coordination between jurisdictions, delays in implementation of 
        plans, and complex negotiations on sharing of costs.

SEC. 3. PURPOSES.

    The purposes of this Act are the following:
            (1) In order to increase the production of electricity from 
        renewable energy, to enhance the performance and efficiency of 
        the Nation's electric power network, and to improve its 
        security and reliability, it is the purpose of this Act to 
        facilitate the establishment of a sustainable transmission grid 
        consisting of long-distance, extra-high voltage transmission 
        lines constructed to cost effectively deliver remote clean 
        energy generation resources to markets while improving system 
        efficiency and reliability, and such additional transmission 
        lines as are needed to connect renewable energy generators into 
        this extra-high voltage grid.
            (2) To facilitate the widespread deployment of modern grid 
        technology as part of the national infrastructure for 
        electricity transmission, in order to support improved 
        electricity grid operation and control, enhance grid 
        reliability and integration of renewable generation resources, 
        and support the deployment of new technologies.

                 TITLE I--SUSTAINABLE TRANSMISSION GRID

SEC. 101. PLANNING, CONSTRUCTION, AND OPERATION OF SUSTAINABLE 
              TRANSMISSION GRID.

    (a) Amendment of Federal Power Act.--Part II of the Federal Power 
Act (16 U.S.C. 824 et seq.) is amended by adding after section 216 the 
following new section:

``SEC. 216A. SUSTAINABLE TRANSMISSION GRID.

    ``(a) Definitions.--For purposes of this section:
            ``(1) STG.--The term `STG' means the sustainable 
        transmission grid.
            ``(2) STG project.--The term `STG project' means a project 
        designated in an STG plan to construct an STG transmission line 
        on a new or existing right-of-way after the date of enactment 
        of this section.
            ``(3) STG plan.--The term `STG plan' means a transmission 
        plan accepted or prescribed by the Commission under subsection 
        (b).
            ``(4) STG transmission line.--The term `STG transmission 
        line' means an overhead or underground transmission facility 
        included in an STG plan, consisting of conductors or cables, 
        towers, manhole duct systems, phase-shifting transformers, 
        reactors, capacitors, substations, inverters, switching units, 
        and any related facilities and equipment necessary for the 
        proper operation of the transmission facility, that--
                    ``(A) operates at or above a voltage of 345 
                kilovolts AC or DC;
                    ``(B) is a renewable feeder line; or
                    ``(C) is a necessary upgrade to an existing 
                transmission facility.
            ``(5) Renewable feeder line.--
                    ``(A) In general.--The term `renewable feeder line' 
                means a transmission line that--
                            ``(i) operates at a voltage of 100 
                        kilovolts or greater, and
                            ``(ii) is identified in the applicable STG 
                        plan as a facility that connects 1 or more 
                        renewable energy generators directly or 
                        indirectly to transmission facilities described 
                        in paragraph (4)(A).
                    ``(B) Inclusion.--The term `renewable feeder line' 
                includes an upgrade to an existing transmission line 
                necessary for interconnection to a new transmission 
                line described in subparagraph (A).
            ``(6) STG costs.--The term `STG costs' means capital and 
        operating costs incurred by any entity for planning, 
        development, and operation of a project certificated under 
        subsection (d).
            ``(7) Load-serving entity.--The term `load-serving entity' 
        means a person or Federal, State, or local instrumentality 
        (including an entity described in section 201(f)) that delivers 
        electric energy to end-use customers.
            ``(8) Multistate transmission authority.--The terms 
        `Multistate Transmission Authority' and `MTA' mean a multistate 
        transmission planning organization established pursuant to 
        subsection (b).
            ``(9) Renewable energy.--The term `renewable energy' means 
        electric energy generated from--
                    ``(A) solar energy, wind, landfill gas, renewable 
                biogas, or geothermal energy;
                    ``(B) new hydroelectric generation capacity 
                achieved from increased efficiency, or an addition of 
                new capacity, at an existing nonhydroelectric project 
                if--
                            ``(i) the hydroelectric project installed 
                        on the nonhydroelectric dam--
                                    ``(I) is licensed by the 
                                Commission; and
                                    ``(II) meets all other applicable 
                                environmental, licensing, and 
                                regulatory requirements, including 
                                applicable fish passage requirements;
                            ``(ii) the nonhydroelectric dam--
                                    ``(I) was placed in service before 
                                the date of enactment of the National 
                                Clean Energy Superhighways Act of 2009;
                                    ``(II) was operated for flood 
                                control, navigation, or water supply 
                                purposes; and
                                    ``(III) did not produce 
                                hydroelectric power as of the date of 
                                enactment of the National Clean Energy 
                                Superhighways Act of 2009; and
                            ``(iii) the hydroelectric project is 
                        operated so that the water surface elevation at 
                        any given location and time that would have 
                        occurred in the absence of the hydroelectric 
                        project is maintained, subject to any license 
                        requirements imposed under applicable law that 
                        change the water surface elevation for the 
                        purpose of improving the environmental quality 
                        of the affected waterway, as certified by the 
                        Commission;
                    ``(C) hydrokinetic energy, including--
                            ``(i) waves, tides, and currents in oceans, 
                        estuaries, and tidal areas;
                            ``(ii) free-flowing water in rivers, lakes, 
                        and streams;
                            ``(iii) free-flowing water in man-made 
                        channels, including projects that use 
                        nonmechanical structures to accelerate the flow 
                        of water for electric power production 
                        purposes; or
                            ``(iv) differentials in ocean temperature 
                        through ocean thermal energy conversion; or
                    ``(D) electricity that is generated from the 
                combustion of the biogenic portion of municipal solid 
                waste materials from facilities that comply with the 
                maximum pollutant emissions standards established by 
                the Administrator of the Environmental Protection 
                Agency.
    ``(b) Planning by Multistate Transmission Authorities.--
            ``(1) Establishment of mtas.--
                    ``(A) Authority to establish.--The Congress hereby 
                authorizes the States comprising the Eastern 
                interconnection and the States comprising the Western 
                interconnection to establish, in accordance with rules 
                established under subparagraph (B), one or more 
                interconnection-wide multistate transmission planning 
                authorities (`MTAs'), within the Eastern and Western 
                interconnections, respectively. Such States may 
                establish an MTA by agreement of the States comprising 
                the region concerned.
                    ``(B) Requirements for certification of mta.--The 
                Commission shall, by rule promulgated within 180 days 
                after the date of enactment of this section, specify 
                appropriate organizational and procedural requirements 
                for the MTAs established under this section, including 
                each of the following:
                            ``(i) A governance structure that ensures 
                        that each State in the interconnection will be 
                        represented on the MTA.
                            ``(ii) An open, transparent, and 
                        participatory STG planning process, including 
                        public hearings, that furthers the purposes of 
                        this section and solicits input from load-
                        serving entities, Federal transmitting 
                        utilities, transmission owners, regional 
                        transmission organizations, independent system 
                        operators, State energy, environment, natural 
                        resources, and land management agencies and 
                        commissions, Indian tribes, electricity 
                        generators, prospective developers of new 
                        transmission and generation resources, regional 
                        reliability organizations, and the public.
                            ``(iii) A requirement that the MTA will 
                        have the capability of exercising STG planning 
                        functions for the entire interconnection, 
                        including identifying acceptable corridors for 
                        planned transmission projects based on the 
                        planning process described in paragraph (3).
                            ``(iv) A mechanism that assures that the 
                        MTA will have adequate resources available to 
                        undertake its planning activities (taking into 
                        account amounts made available pursuant to 
                        paragraph (8), which may include imposition of 
                        a reasonable charge on load-serving entities in 
                        the interconnection.
                            ``(v) Such other requirements as it 
                        determines necessary to assure that each MTA is 
                        capable of undertaking the planning described 
                        in paragraphs (3) and (4) for the region 
                        concerned.
            ``(2) Certification of mta.--The Commission shall, by rule, 
        establish procedures governing submission and consideration of 
        applications for certification of an MTA within a region. The 
        final rule establishing such procedures shall be issued within 
        180 days of the date of enactment of this section. The 
        Commission shall certify an MTA upon application if it finds 
        that the application satisfies such procedures and the 
        requirements established pursuant to paragraph (1).
            ``(3) MTA planning functions.--
                    ``(A) Development of biennial stg plan.--Each MTA 
                shall exercise STG transmission planning functions for 
                its respective region and produce a biennial STG 
                transmission plan. The STG plan shall identify needed 
                STG projects. In assessing need for STG projects, the 
                MTA shall take into consideration--
                            ``(i) transmission infrastructure required 
                        for efficient and reliable delivery of the 
                        output of new renewable generation resources 
                        needed to satisfy State and Federal renewable 
                        energy policies and targets;
                            ``(ii) changes in generation patterns 
                        expected to result from greenhouse gas emission 
                        policy;
                            ``(iii) changes in demand expected to 
                        result from energy efficiency, distributed 
                        generation, energy storage, and demand-side 
                        management programs;
                            ``(iv) opportunities for grid upgrades to 
                        enhance grid reliability, security, and 
                        efficiency on the existing transmission system;
                            ``(v) areas listed under paragraph (C); and
                            ``(vi) other relevant factors.
                In developing the STG plan for an interconnection, the 
                MTA shall build on planning undertaken by the 
                Commission, regions, States, Federal transmitting 
                utilities, regional transmission organizations, load-
                serving entities, independent system operators, 
                utilities, regional reliability entities, and other 
                parties in the interconnection; and cooperate and 
                coordinate across regions to harmonize regional 
                electric grid planning with planning in adjacent or 
                overlapping jurisdictions, to the maximum extent 
                feasible.
                    ``(B) Interim planning decisions.--The MTA shall 
                maintain a process for expeditiously evaluating whether 
                new renewable feeder lines proposed between the 2-year 
                planning cycles should be added to the approved STG 
                plan.
                    ``(C) Areas to avoid.--MTA planning shall identify 
                (in consultation with Federal and State land agencies, 
                environmental groups, and Indian tribes) appropriate 
                areas to be avoided in siting of STG projects, to the 
                maximum extent practicable, including--
                            ``(i) national parks, national marine 
                        sanctuaries, reserves, recreation areas, and 
                        other similar units of the National Park 
                        System;
                            ``(ii) designated wilderness, designated 
                        wilderness study areas, and other areas managed 
                        for wilderness characteristics;
                            ``(iii) national historic sites and 
                        historic parks;
                            ``(iv) inventoried roadless areas and 
                        significant noninventoried roadless areas 
                        within the National Forest System;
                            ``(v) national monuments;
                            ``(vi) national conservation areas;
                            ``(vii) national wildlife refuges and areas 
                        of critical environmental concern;
                            ``(viii) national historic and national 
                        scenic trails;
                            ``(ix) areas designated as critical 
                        habitat;
                            ``(x) national wild, scenic, and 
                        recreational rivers;
                            ``(xi) any area in which Federal law 
                        prohibits energy development; and
                            ``(xii) any area in which applicable State 
                        law or Indian tribal code enacted prior to the 
                        date of enactment of this Act prohibits 
                        transmission development.
            ``(4) Coordination.--Each MTA shall, in the development of 
        its STG plan, coordinate as appropriate with planning 
        authorities and other interested parties in Canada, Mexico, 
        ERCOT, and the other interconnection.
            ``(5) Submission and review of plans.--(A) Each MTA shall 
        submit to the Commission an initial STG plan within 1 year of 
        the certification of the MTA. Each MTA shall submit an update 
        to its STG plan not later than 2 years after submission of the 
        initial plan and every 2 years thereafter.
            ``(B)(i) The Commission shall provide an opportunity for 
        public comment on each plan submitted by an MTA.
            ``(ii) The Commission may modify or reject a plan as 
        necessary to achieve the purposes of this section. If the 
        Commission modifies or rejects a plan, not later than 90 days 
        after the date the plan is submitted by the MTA, the Commission 
        shall provide a written opinion to the MTA that contains the 
        facts and reasons supporting the action of the Commission.
            ``(iii) If the Commission rejects a plan, the MTA may 
        submit a revised plan within 90 days of the Commission's 
        rejection.
            ``(iv) If the Commission determines that a plan meets the 
        purposes of this section, the Commission shall be treated as 
        accepted.
            ``(6) Backup commission planning authority.--In the event 
        that no MTA for the Eastern or Western Interconnection is 
        certified by the Commission within 1 year of the date of 
        enactment of this section, or in the event that a certified MTA 
        does not timely submit an initial plan or updated plan as 
        required under paragraph (5), the Commission shall immediately 
        undertake the planning activities described in paragraphs (3) 
        and (4) and develop a plan for such interconnection within 1 
        year of initiating such planning activities, in consultation 
        with all affected States within the region, as appropriate.
            ``(7) Multiple mtas.--
                    ``(A) In general.--Notwithstanding paragraph (6), 
                if more than 1 MTA is certified in an Interconnection, 
                the MTA shall ensure that the submitted plan integrates 
                with the other plans in the Interconnection.
                    ``(B) Modification.--The Commission shall modify 
                the plans submitted under paragraph (5), as necessary, 
                to ensure that plans established under this section are 
                integrated.
                    ``(C) Backup planning for multiple mtas.--In the 
                event that any State or group of States does not 
                participate in a certified MTA process, the Commission 
                shall assume planning responsibilities on behalf of 
                such State or group of States, consistent with the 
                authorities under paragraph (6).
            ``(8) Recovery of costs associated with interconnection-
        wide stg planning.--
                    ``(A) In general.--An MTA and a participating State 
                shall be permitted to recover prudently incurred costs 
                to carry out the planning activities required under 
                this subsection pursuant to a Federal transmission 
                surcharge that shall be established by the Commission 
                in accordance with this paragraph for the purposes of 
                carrying out this section.
                    ``(B) Surcharge proposals.--An MTA shall--
                            ``(i) propose a Federal transmission 
                        surcharge based on a formula rate that is 
                        submitted to the Commission for approval; and
                            ``(ii) adjust the formula and surcharge on 
                        an annual basis.
                    ``(C) Cost responsibility.--Cost responsibility 
                under each surcharge shall be assigned based on energy 
                usage to all load-serving entities covered by the MTA.
                    ``(D) Limitation.--The total amount of surcharges 
                that may be imposed or collected nationally under this 
                paragraph shall not exceed $80,000,000 for any calendar 
                year.
    ``(c) Cost Allocation.--
            ``(1) Purposes.--The purposes of this subsection are--
                    ``(A) to ensure that the costs of STG projects are 
                borne widely by all beneficiaries of new transmission 
                and are not borne disproportionately by ratepayers or 
                generators in specific areas; and
                    ``(B) to promote the national interest in an STG 
                project in accordance with the purposes of this 
                section.
            ``(2) Submission.--In conjunction with the submission of a 
        transmission plan under subsection (b)(5), all MTAs within an 
        Interconnection may submit jointly a single integrated 
        Interconnection-wide cost allocation methodology to the 
        Commission for allocating the STG costs under this section.
            ``(3) Action by commission.--Not later than 120 days after 
        the date of receipt of a proposed cost allocation methodology 
        submitted under paragraph (2), the Commission shall--
                    ``(A) provide notice and an opportunity for a 
                hearing;
                    ``(B) evaluate the proposal; and
                    ``(C)(i) approve the proposal if the Commission 
                finds that the proposed cost allocation would result in 
                just and reasonable rates that promote the purposes of 
                this section (including this subsection); or
                    ``(ii) reject or modify the proposed cost 
                allocation if the Commission finds that the proposed 
                cost allocation does not result in just and reasonable 
                rates that promote the purposes of this section 
                (including this subsection).
            ``(4) Resubmission.--
                    ``(A) In general.--If the Commission rejects the 
                proposed cost allocation plan under paragraph 
                (3)(C)(ii), the Commission shall specify the basis for 
                its findings that the proposed methodology would not 
                result in just and reasonable rates that promote the 
                purposes of this subsection.
                    ``(B) Resubmission.--Not later than 90 days after 
                the date of the rejection, the MTAs may submit to the 
                Commission a revised cost allocation methodology for 
                the interconnection under this subsection.
                    ``(C) Modifications.--
                            ``(i) In general.--Not later than 90 days 
                        after the date of resubmission of a proposed 
                        cost allocation methodology the Commission 
                        shall approve, modify, or reject the 
                        resubmitted proposal as necessary to achieve 
                        the purposes of this section.
                            ``(ii) Opinion.--If the Commission modifies 
                        or rejects a resubmitted proposal, the 
                        Commission shall specify the basis for its 
                        findings that the proposed methodology would 
                        not result in just and reasonable rates that 
                        promote the purposes of this section.
            ``(5) Commission allocation of costs.--If the MTAs do not 
        submit an Interconnection-wide cost allocation plan within the 
        time periods specified in paragraphs (2) and (4) or if the 
        Commission does not approve a cost allocation methodology 
        submitted by the MTA for an Interconnection, the Commission 
        shall allocate the STG costs to all of the load-serving 
        entities in the Interconnection on a load-ratio share basis.
            ``(6) Cost allocation rate filings.--If a cost allocation 
        methodology is approved by the Commission in accordance with 
        this subsection--
                    ``(A) any public utility that has rates that are 
                affected by the approved cost allocation methodology 
                shall file the allocation methodology with the 
                Commission pursuant to section 205; and
                    ``(B) the cost allocation methodology shall be 
                presumed lawful under section 205 on filing, without 
                notice or further opportunity for comment or hearing.
            ``(7) Applicability.--
                    ``(A) In general.--Except as provided in 
                subparagraph (C), the authority of the Commission under 
                subsections (b) and (c) to approve transmission plans 
                and to allocate costs incurred pursuant to the plans 
                applies to all transmission providers, generators, and 
                users, owners, and operators of the power system within 
                the Eastern and Western Interconnections of the United 
                States, including entities described in section 201(f).
                    ``(B) Regional planning entities.--The Commission 
                shall have authority over regional planning entities to 
                the extent necessary to carry out subsections (b) and 
                (c).
                    ``(C) Exclusions.--(i) This subsection does not 
                apply in the State of Alaska or Hawaii or to the ERCOT, 
                unless the State or ERCOT voluntarily elects to 
                participate in a cost allocation methodology under this 
                section.
                    ``(ii) A project for which a cost allocation or 
                cost recovery agreement was accepted by the Commission 
                before the date of enactment of this part shall not be 
                included in cost allocation under this section.
                    ``(D) Credit for revenues.--Transmission revenues 
                shall be applied as a credit to the initial allocation 
                of STG costs.
    ``(d) Certification and Siting of STG Projects.--
            ``(1) Certificate of public convenience and necessity.--
                    ``(A) Requirement of certificate.--No public 
                utility, or person which will be a public utility upon 
                completion of any proposed action, shall--
                            ``(i) construct any STG project, or
                            ``(ii) modify an STG project previously 
                        certificated under this subsection,
                unless there is in force with respect to such public 
                utility a certificate of public convenience and 
                necessity issued by the Commission authorizing such 
                acts or operation.
                    ``(B) Elective coverage.--If any entity described 
                in section 201(f) proposes to construct an STG project, 
                such entity may elect, in such manner as the Commission 
                may prescribe by rule, to have this subsection apply to 
                such project.
            ``(2) Application for certificate.--(A) Any person seeking 
        to construct an STG project identified by an MTA may apply to 
        the Commission for a certificate of public convenience and 
        necessity for that project.
            ``(B) Application for a certificate under this subsection 
        shall be made in writing to the Commission, and shall be in 
        such form, contain such information, and notice thereof shall 
        be served upon such interested parties (including State 
        Commissions), in such manner as the Commission shall, by rule, 
        require. The Commission shall set the matter for hearing and 
        shall give notice of the hearing to interested persons. The 
        Commission shall approve or deny the application in accordance 
        with the procedure provided in paragraph (3).
            ``(3) Grant of certificate.--The Commission may approve or 
        deny a certificate under this subsection for construction of an 
        STG project. A certificate issued under this subsection shall 
        authorize the whole or any part of the operation, construction, 
        acquisition, or modification covered by the application. The 
        Commission shall issue the certificate if the Commission finds 
        that the applicant is able and willing properly to do the acts 
        and to perform the service proposed and to conform to the 
        provisions of this Act and rules of the Commission hereunder, 
        and that the proposed operation, construction, acquisition, or 
        modification, to the extent authorized by the certificate, is 
        or will be required by the present or future public convenience 
        and necessity. In evaluating certificate applications that 
        feature joint ownership projects by multiple load-serving or 
        wholesale entities, the Commission shall consider benefits from 
        the greater diversification of financial risk inherent in the 
        applications. The Commission shall have the power to attach to 
        the issuance of the certificate, and to the exercise of the 
        rights granted thereunder, such reasonable terms and conditions 
        as the public convenience and necessity may require. 
        Designation of an STG project in the STG plan shall constitute 
        sufficient evidence that a public need exists for the project.
            ``(4) State recommendations on resource protection and 
        routing.--(A) In order to protect, and mitigate damages to, 
        natural resources affected by the development and operation of 
        an STG project, each certificate issued under this subsection 
        shall include conditions for such protection or mitigation, 
        including recommendations related to project routing. Subject 
        to subparagraph (B), such conditions shall be based on 
        recommendations received from State environment, land 
        management, and natural resource agencies.
            ``(B) Whenever the Commission believes that any 
        recommendation referred to in subparagraph (A) may be 
        inconsistent with the purposes and requirements of this Act or 
        other applicable law, the Commission and the agencies referred 
        to in subparagraph (A) shall attempt to resolve any such 
        inconsistency, giving due weight to the recommendations, 
        expertise, and statutory responsibilities of such agencies. If, 
        after such attempt, the Commission does not adopt in whole or 
        in part a recommendation of any such agency, the Commission 
        shall publish in the Federal Register each of the following 
        findings (together with a statement of the basis for each of 
        the findings):
                    ``(i) A finding that adoption of such 
                recommendation is inconsistent with the purposes and 
                requirements of this Act or with other applicable 
                provisions of law.
                    ``(ii) A finding that the conditions selected by 
                the Commission comply with the requirements of the 
                first sentence of subparagraph (A).
            ``(5) Emissions standard for interconnection.--
                    ``(A) Rule.--Any certificate issued under paragraph 
                (3) for construction of an STG transmission line 
                described in subsection (a)(4) (A) or (B) shall 
                incorporate a condition that prohibits the direct 
                interconnection to the STG transmission line by any 
                electricity generator that has a greenhouse gas 
                emission rate (in tons of CO<INF>2</INF> equivalent per 
                megawatt-hour) greater than that of a single-cycle 
                natural gas-fired combustion turbine, as determined by 
                rule by the Commission.
                    ``(B) Sunset.--Any certificate conditions adopted 
                pursuant to subparagraph (A) shall become inapplicable 
                upon the full implementation of a Federal greenhouse 
                gas regulatory program applicable to the electricity 
                sector.
            ``(6) Right of eminent domain.--When any holder of a 
        certificate issued under paragraph (3) cannot acquire by 
        contract, or is unable to agree with the owner of property on 
        the compensation to be paid for, the necessary right-of-way to 
        construct, operate, and maintain the project to which the 
        certificate relates, and the necessary land or other property 
        necessary to the proper operation of such project, it may 
        acquire the same by the exercise of the right of eminent domain 
        in the district court of the United States for the district in 
        which such property may be located, or in the State courts. The 
        practice and procedure in any action or proceeding for that 
        purpose in the district court of the United States shall 
        conform as nearly as may be with the practice and procedure in 
        similar action or proceeding in the courts of the State where 
        the property is situated. Nothing in this section shall be 
        construed to allow the holder of a certificate under paragraph 
        (3), or any other person or entity, to acquire by the exercise 
        of eminent domain any property that constitutes `Indian 
        country' under section 1151 of title 18, United States Code, or 
        that is otherwise subject to a Federal restriction against 
        alienation, without the express written consent of the 
        applicable Indian tribe, tribal organization, and/or Indian 
        landowner.
            ``(7) Applicability of section 216.--The provisions of 
        section 216(h) and section 216(j) shall apply to each STG 
        project for which a certificate is issued under this section in 
        the same manner and to the same extent as those provisions 
        apply to projects covered by section 216. Except for section 
        216(h) and section 216(j), section 216 shall not apply to any 
        new STG project to which paragraph (1)(A) of this subsection 
        applies, or to any project as to which an election has been 
        made under paragraph (1)(B).
            ``(8) Federal agency coordination.--
                    ``(A) Rights-of-way on federal lands.--With respect 
                to any STG project, the functions under section 216(h) 
                of this Act of the Department of Energy and the 
                Secretary of Energy shall be exercised by the 
                Commission in coordination with the affected land 
                management agency.
                    ``(B) NEPA review.--With respect to any STG 
                project, the Commission shall be the lead Federal 
                agency for purposes of Federal environmental review 
                and, in consultation with affected agencies, shall 
                prepare a single environmental review document that 
                would be used as the basis for all decisions under 
                Federal law related to the proposed project.
    ``(e) Long-Term Transmission Rights for Renewable Electricity 
Generators.--(1) It is the policy of the United States that long-term 
transmission rights, of firmness and duration sufficient to support 
generation investment (including project financing for new generation 
projects), shall be made available on reasonable terms and at 
reasonable cost to entities seeking to construct new generation 
facilities using renewable energy technologies.
    ``(2) The Commission shall exercise its authority under this Act to 
prescribe such rules as it determines necessary or appropriate to 
implement the policy established in paragraph (1) not later than 1 year 
after the date of enactment of this section, and may revise such rules 
from time to time. Such rules shall not interfere with existing long-
term transmission rights of load-serving entities, or native load 
requirements established in section 217.
    ``(f) Coordinated Regional Grid Operations.--The Commission shall 
encourage methods and structures for grid operations to better 
accommodate renewable energy resources, including enhanced balancing 
arrangements among balancing areas, expedited scheduling and dispatch, 
and improved renewable energy output forecasting.
    ``(g) Periodic Review.--The Commission shall periodically evaluate 
whether STG projects identified in interconnection-wide STG plans are 
being timely constructed, and shall take such actions as are in its 
authority to address any identified obstacles to investment and 
construction, and shall make any recommendations to Congress on further 
action or authority needed to assure development of planned STG 
facilities.
    ``(h) Geographic Scope.--This section applies to the contiguous 
States and the District of Columbia, excluding the area referred to in 
section 212(k)(2)(A).''.
    (b) Conforming Amendment.--Section 201(b) of the Federal Power Act 
(16 U.S.C. 824) is amended by inserting ``216A'' after ``216'' in each 
place it appears.

SEC. 102. FEDERAL FINANCIAL ASSISTANCE TO MULTISTATE TRANSMISSION 
              AUTHORITIES.

    There are authorized to be appropriated to the Secretary of Energy, 
such sums as may be necessary to provide financial assistance for the 
establishment and operation of multistate transmission authorities 
under sections 216A(c) of the Federal Power Act.

                   TITLE II--MISCELLANEOUS PROVISIONS

SEC. 201. TRANSMISSION GRID PERFORMANCE STANDARDS.

    For purposes of evaluating whether smart grid technology 
requirements for monitoring and control of new transmission facilities, 
smart grid technology retrofit requirements for monitoring and control 
of existing transmission facilities, or transmission grid performance 
requirements are in the public interest, the Secretary of Energy, after 
consultation with the Federal Energy Regulatory Commission, shall 
conduct an analysis and make recommendations on appropriate metrics for 
transmission grid performance covering both new and existing 
transmission grid facilities. This report shall be submitted to 
Congress within 1 year of the date of enactment of this Act.
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