533
Subsection (h)(4) of this section shall not apply to any
Congressionally-designated components of the National
Wilderness Preservation System, the National Wild and
Scenic Rivers System, or the National Park system (in-
cluding National Monuments therein).
‘‘(k) ERCOT.—This section shall not apply within
the area referred to in section 212(k)(2)(A).’’.
(b) REPORTS
TO CONGRESS
ON CORRIDORS
AND
RIGHTS OF WAY ON FEDERAL LANDS.—The Secretary of
the Interior, the Secretary of Energy, the Secretary of Ag-
riculture, and the Chairman of the Council on Environ-
mental Quality shall, within 90 days of the date of enact-
ment of this subsection, submit a joint report to Congress
identifying each of the following:
(1) All existing designated transmission and
distribution corridors on Federal land and the status
of work related to proposed transmission and dis-
tribution corridor designations under Title V of the
Federal Land Policy and Management Act (43
U.S.C. 1761 et seq.), the schedule for completing
such work, any impediments to completing the work,
and steps that Congress could take to expedite the
process.
(2) The number of pending applications to lo-
cate transmission and distribution facilities on Fed-
534
eral lands, key information relating to each such fa-
cility, how long each application has been pending,
the schedule for issuing a timely decision as to each
facility, and progress in incorporating existing and
new such rights-of-way into relevant land use and
resource management plans or their equivalent.
(3) The number of existing transmission and
distribution rights-of-way on Federal lands that will
come up for renewal within the following 5, 10, and
15 year periods, and a description of how the Secre-
taries plan to manage such renewals.
SEC. 1222. THIRD-PARTY FINANCE.
(a) EXISTING FACILITIES.—The Secretary of Energy
(hereinafter in this section referred to as the ‘‘Secretary’’),
acting through the Administrator of the Western Area
Power Administration (hereinafter in this section referred
to as ‘‘WAPA’’), or through the Administrator of the
Southwestern Power Administration (hereinafter in this
section referred to as ‘‘SWPA’’), or both, may design, de-
velop, construct, operate, maintain, or own, or participate
with other entities in designing, developing, constructing,
operating, maintaining, or owning, an electric power
transmission facility and related facilities (‘‘Project’’)
needed to upgrade existing transmission facilities owned
by SWPA or WAPA if the Secretary of Energy, in con-
535
sultation with the applicable Administrator, determines
that the proposed Project—
(1)(A) is located in a national interest electric
transmission corridor designated under section
216(a) of the Federal Power Act and will reduce
congestion of electric transmission in interstate com-
merce; or
(B) is necessary to accommodate an actual or
projected increase in demand for electric trans-
mission capacity;
(2) is consistent with—
(A) transmission needs identified, in a
transmission expansion plan or otherwise, by
the appropriate Regional Transmission Organi-
zation or Independent System Operator (as de-
fined in the Federal Power Act), if any, or ap-
proved regional reliability organization; and
(B) efficient and reliable operation of the
transmission grid; and
(3) would be operated in conformance with pru-
dent utility practice.
(b) 
NEW
FACILITIES.—The 
Secretary, 
acting
through WAPA or SWPA, or both, may design, develop,
construct, operate, maintain, or own, or participate with
other entities in designing, developing, constructing, oper-
536
ating, maintaining, or owning, a new electric power trans-
mission facility and related facilities (‘‘Project’’) located
within any State in which WAPA or SWPA operates if
the Secretary, in consultation with the applicable Adminis-
trator, determines that the proposed Project—
(1)(A) is located in an area designated under
section 216(a) of the Federal Power Act and will re-
duce congestion of electric transmission in interstate
commerce; or
(B) is necessary to accommodate an actual or
projected increase in demand for electric trans-
mission capacity;
(2) is consistent with—
(A) transmission needs identified, in a
transmission expansion plan or otherwise, by
the appropriate Regional Transmission Organi-
zation or Independent System Operator, if any,
or approved regional reliability organization;
and
(B) efficient and reliable operation of the
transmission grid;
(3) will be operated in conformance with pru-
dent utility practice;
(4) will be operated by, or in conformance with
the rules of, the appropriate (A) Regional Trans-