I 
108TH CONGRESS 
1ST SESSION H. R. 1338 
To amend the Federal Power Act to provide for Federal and State coordina-
tion of permitting for electric transmission facilities, and for other pur-
poses. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 18, 2003 
Mr. SHADEGG (for himself and Mr. ISSA) introduced the following bill; which 
was referred to the Committee on Energy and Commerce 
A BILL 
To amend the Federal Power Act to provide for Federal 
and State coordination of permitting for electric trans-
mission facilities, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. FINDINGS. 
The Congress finds that: 
(1) Protection of the environmental and ecologi-
cal qualities of Federal lands are important concerns 
for all people. 
(2) Reviewing the environmental impact of pro-
posed transmission facilities is a vital task which 
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must be conducted in a thorough and comprehensive 
manner. 
(3) A thorough and comprehensive review of 
these effects can be conducted in a timely manner 
without sacrificing the quality of the review. 
(4) There is currently no requirement that Fed-
eral agencies complete environmental reviews for 
proposed transmission facilities in a timely manner. 
(5) The length of time for completion of these 
reviews varies widely, with agencies taking as long 
as ten years to complete these reviews. 
(6) There are cases of Federal agencies con-
ducting environmental reviews in a subsequent, rath-
er than concurrent, manner and failing to coordinate 
their reviews with State authorities and other Fed-
eral agencies. 
(7) The electricity transmission grid must be 
expanded to ensure reliable supplies of electricity. 
(8) The Federal Government currently owns ap-
proximately 29 percent of the land area of the 
United States including 90 percent of Nevada, 70 
percent of Arizona, and similarly large percentages 
of other Western States. 
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(9) Because of the large Federal land holdings 
in the West, transmission facilities must often be 
built on Federal lands. 
(10) Appointment of a lead agency to coordi-
nate the environmental reviews of Federal agencies 
will lead to more thorough, comprehensive and time-
ly reviews. 
SEC. 2. CONSTITUTIONAL AUTHORITY. 
The Constitutional authority on which this act rests 
are the powers of Congress to make all needful rules and 
regulations respecting the territory or other property be-
longing to the United States as enumerated in article IV, 
section 3 and to make all laws which shall be necessary 
and proper as enumerated in article I, section 8 of the 
United States Constitution. 
SEC. 3. FEDERAL AND STATE COORDINATION OF PERMIT-
TING FOR TRANSMISSION FACILITIES. 
(a) LEAD AGENCY.—If an applicant, or prospective 
applicant, for Federal authorization related to an elec-
tricity transmission or distribution facility so requests, the 
Department of Energy (DOE) shall act as the lead agency 
for purposes of coordinating all applicable Federal author-
ization and related environmental review of the facility. 
The term ‘‘Federal authorization’’ shall mean any author-
ization required under Federal law in order to site a trans-
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mission or distribution facility, including but not limited 
to such permits, special use authorizations, certifications, 
opinions, or other approvals as may be required, whether 
issued by a Federal or a State agency. To the maximum 
extent practicable, the Secretary of Energy shall coordi-
nate this Federal authorization and review process with 
any Indian tribes, multi-State entities, and State agencies 
that are responsible for conducting any separate permit-
ting and environmental reviews of the facility, to ensure 
timely and efficient review and permit decisions. 
(b) AUTHORITY TO SET DEADLINES.—As lead agen-
cy, the Department of Energy, in consultation with other 
Federal and, as appropriate, with Indian tribes, multi- 
State entities, and State agencies that are willing to co-
ordinate their own separate permitting and environmental 
reviews with the Federal authorization and environmental 
reviews, shall establish prompt and binding intermediate 
milestones and ultimate deadlines for the review of and 
Federal authorization decisions relating to the proposed 
facility. Notwithstanding any other provision of law, the 
Secretary of Energy shall ensure that once an application 
has been submitted with such data as the Secretary deems 
necessary, all permit decisions and related environmental 
reviews under all applicable Federal laws shall be com-
pleted within 1 year. The Secretary of Energy also shall 
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provide a speedy pre-application mechanism for prospec-
tive applicants to confer with the agencies involved to have 
each such agency determine and communicate to the pro-
spective applicant within 60 days of when the prospective 
applicant submits a request for such information con-
cerning— 
(1) the likelihood of approval for a potential fa-
cility; and 
(2) key issues of concern to the agencies and 
public. 
(c) CONSOLIDATED ENVIRONMENTAL REVIEW AND 
RECORD OF DECISION.—The Secretary of Energy shall 
prepare a single environmental review document, which 
shall be used as the basis for all decisions on the proposed 
project under Federal law. The document may be an envi-
ronmental assessment or environmental impact statement 
under the National Environmental Policy Act if war-
ranted, or such other form of analysis as may be war-
ranted. DOE and other agencies shall streamline the re-
view and permitting of transmission and distribution fa-
cilities within corridors designated under section 503 of 
the Federal Land Policy and Management Act (43 U.S.C. 
section 1763) by fully taking into account prior analyses 
and decisions as to the corridors. 
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(d) APPEALS.—In the event that any agency has de-
nied a Federal authorization required for a transmission 
or distribution facility, or has failed to act by the deadline 
established by the Secretary pursuant to this section for 
deciding whether to issue the authorization, the applicant 
or any State in which the facility would be located may 
file an appeal with the Secretary of Energy, which shall 
review the denial or take action on the pending applica-
tion. Based on the overall record and in consultation with 
the affected agency, the Secretary may then either issue 
the necessary authorization with or without appropriate 
conditions, or may deny the application. The Secretary 
shall issue its decision within 90 days of the filing of the 
appeal. 
(e) CONFORMING REGULATIONS AND MEMORANDA 
OF AGREEMENT.—Not later than 18 months after the 
date of enactment of this section, the Secretary of Energy 
shall issue any regulations necessary to implement the 
foregoing provisions. Not later than 1 year after the date 
of enactment of this section, the Secretary and the heads 
of all relevant Federal departments and non-departmental 
agencies shall, and interested Indian tribes, multi-State 
entities, and State agencies may, enter into Memoranda 
of Agreement to ensure the timely and coordinated review 
and permitting of electricity transmission and distribution 
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facilities. The head of each Federal department or non- 
departmental agency with approval authority shall des-
ignate a senior responsible official and dedicate sufficient 
other staff and resources to ensure that the DOE regula-
tions and any Memoranda are fully implemented. 
(f) MISCELLANEOUS.—Each Federal authorization 
for an electricity transmission or distribution facility shall 
be issued for a duration, as determined by the Secretary 
of Energy, commensurate with the anticipated use of the 
facility and with appropriate authority to manage the 
right-of-way for reliability and environmental protection. 
Further, when such authorizations expire, they shall be 
reviewed for renewal taking fully into account reliance on 
such electricity infrastructure, recognizing its importance 
for public health, safety and economic welfare and as a 
legitimate use of Federal lands. 
(g) MAINTAINING
AND ENHANCING
THE TRANS-
MISSION INFRASTRUCTURE.—In exercising the respon-
sibilities under this section, the Secretary of Energy shall 
consult regularly with the Federal Energy Regulatory 
Commission (FERC) and FERC-approved Regional 
Transmission Organizations and Independent System Op-
erators on changes to the national grid that will improve 
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reliability, relieve congestion, and enhance the capability 
of the grid to deliver electricity. 
Æ 
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