A bill to amend the Federal Power Act to improve the siting of interstate electric transmission facilities, and for other purposes.

SECTION 1. SITING OF INTERSTATE ELECTRIC TRANSMISSION FACILITIES.

    Section 216 of the Federal Power Act (16 U.S.C. 824p) is amended to 
read as follows:

``SEC. 216. SITING OF INTERSTATE ELECTRIC TRANSMISSION FACILITIES.

    ``(a) Policy.--It is the policy of the United States that the 
national interstate transmission system should be guided by the goal of 
maximizing the net benefits of the electricity system, taking into 
consideration--
            ``(1) support for the development of new, cleaner power 
        generation capacity, including renewable energy generation 
        located distant from load centers;
            ``(2) opportunities for reduced emissions from regional 
        power production;
            ``(3) transmission needs driven by public policy 
        requirements established by State or Federal laws (including 
        regulations);
            ``(4) cost savings resulting from--
                    ``(A) reduced transmission congestion;
                    ``(B) enhanced opportunities for intraregional and 
                interregional electricity trades;
                    ``(C) reduced line losses;
                    ``(D) generation resource-sharing; and
                    ``(E) enhanced fuel diversity;
            ``(5) reliability benefits, including satisfying 
        reliability standards and guidelines for resource adequacy and 
        system security;
            ``(6) diversification of risk relating to events affecting 
        fuel supply or generating resources in a particular region;
            ``(7) the enhancement of competition in electricity markets 
        and mitigation of market power;
            ``(8) the ability to collocate facilities on existing 
        rights-of-way;
            ``(9) competing land use priorities, including land 
        protected under Federal or State law;
            ``(10) the requirements of section 217(b)(4); and
            ``(11) the contribution of demand side management 
        (including energy efficiency and demand response), energy 
        storage, distributed generation resources, and smart grid 
        investments.
    ``(b) Definitions.--In this section:
            ``(1) High-priority regional transmission project.--The 
        term `high-priority regional transmission project' means an 
        overhead, submarine, or underground transmission facility, 
        including conductors or cables, towers, manhole duct systems, 
        reactors, capacitors, circuit breakers, static VAR 
        compensators, static synchronous compensators, power 
        converters, transformers, synchronous condensers, braking 
        resistors, and any ancillary facilities and equipment necessary 
        for the proper operation of the facility, that is selected in a 
        regional transmission plan for the purposes of cost allocation 
        under Order Number 1000 of the Commission (or any successor 
        order), including an interregional project selected under that 
        plan.
            ``(2) Indian land.--The term `Indian land' means land--
                    ``(A) the title to which is held by the United 
                States in trust for an Indian tribe or individual 
                Indian; or
                    ``(B) that is held by an Indian tribe or individual 
                Indian subject to a restriction by the United States 
                against alienation or encumbrance.
            ``(3) Indian tribe.--The term `Indian tribe' means any 
        Indian tribe, band, nation, or other organized group or 
        community, including any Alaska Native village or regional or 
        village corporation (as defined in or established pursuant to 
        the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et 
        seq.), which is recognized as eligible for the special programs 
        and services provided by the United States to Indians because 
        of their status as Indians.
    ``(c) Siting.--
            ``(1) Purposes.--The purpose of this subsection is to 
        ensure that high-priority regional transmission projects are in 
        the public interest and advance the policy established under 
        subsection (a).
            ``(2) State review of project siting.--
                    ``(A) In general.--No developer of a high-priority 
                regional transmission project may seek a certificate 
                for construction under subsection (d) unless the 
                developer first seeks authorization to construct the 
                high-priority regional transmission project under 
                applicable State law concerning authorization and 
                routing of transmission facilities.
                    ``(B) Federal authority.--The Commission may 
                authorize, in accordance with subsection (d), 
                construction of a high-priority regional transmission 
                project that the Commission finds to be required by the 
                present or future public convenience and necessity and 
                in accordance with this section if--
                            ``(i) a State--
                                    ``(I) fails to approve construction 
                                and authorize routing of a high-
                                priority regional transmission project 
                                not later than 1 year after the date 
                                the applicant submits a completed 
                                application for authorization to the 
                                State;
                                    ``(II) rejects or denies the 
                                application for a high-priority 
                                regional transmission project;
                                    ``(III) authorizes the high-
                                priority regional transmission project 
                                subject to conditions that unreasonably 
                                interfere with the development of a 
                                high-priority regional transmission 
                                project contrary to the purposes of 
                                this section; or
                                    ``(IV) does not have authority to 
                                approve the siting of the high-priority 
                                regional transmission project; or
                            ``(ii) the developer seeking a certificate 
                        for construction under subsection (d) does not 
                        qualify to apply for State authorization to 
                        construct a high-priority regional transmission 
                        project because the developer does not serve 
                        end-users in the State.
    ``(d) Construction.--
            ``(1) Application for certificate.--
                    ``(A) In general.--An applicant for a high-priority 
                regional transmission project may apply to the 
                Commission for a certificate of public convenience and 
                necessity with respect to construction of the high-
                priority regional transmission project only under a 
                circumstance described in subsection (c)(2)(B).
                    ``(B) Form.--The application for a certificate 
                shall be made in writing in such form and containing 
                such information as the Commission may by regulation 
                require.
                    ``(C) Hearing.--On receipt of an application under 
                this paragraph, the Commission--
                            ``(i) shall provide public notice and 
                        opportunity for hearing; and
                            ``(ii) may approve (with or without 
                        conditions) or disapprove the application, in 
                        accordance with paragraph (2).
                    ``(D) Administration.--
                            ``(i) In general.--The Commission shall act 
                        as the lead agency for purposes of coordinating 
                        all applicable Federal authorizations and 
                        related environmental reviews for a high-
                        priority regional transmission project under 
                        this section.
                            ``(ii) Coordination.--To the maximum extent 
                        practicable, the Commission shall--
                                    ``(I) coordinate the Federal 
                                authorization and related environmental 
                                review process with any Indian tribe, 
                                multistate entity, or State agency 
                                responsible for conducting any separate 
                                permitting or environmental review of a 
                                high-priority regional transmission 
                                project; and
                                    ``(II) ensure timely and efficient 
                                review and permit decisions.
                            ``(iii) Timeline.--The Commission, in 
                        consultation with the applicable agencies 
                        described in clause (ii)(I) and consistent with 
                        applicable law, shall establish a coordinated 
                        project plan with milestones for all Federal 
                        authorizations described in clause (i).
            ``(2) Grant of certificate.--
                    ``(A) In general.--A certificate shall be issued to 
                a qualified applicant for a certificate authorizing the 
                whole or partial operation, construction, acquisition, 
                or modification covered by the application, if the 
                Commission determines that the proposed operation, 
                construction, acquisition, or modification, to the 
                extent authorized by the certificate, is required by 
                the present or future public convenience and necessity.
                    ``(B) Terms and conditions.--The Commission shall 
                have the power to attach to the issuance of a 
                certificate under this paragraph and to the exercise of 
                the rights granted under the certificate such 
                reasonable terms and conditions as the public 
                convenience and necessity may require.
                    ``(C) Record of state proceeding.--Any party, 
                including the State, to a State proceeding in which an 
                application for a high-priority regional transmission 
                project was rejected or denied may file with the 
                Commission for its consideration any portion of the 
                record of the State proceeding.
                    ``(D) Public convenience and necessity.--In making 
                a determination with respect to public convenience and 
                necessity, the Commission shall consider whether the 
                facilities covered by an application are included in an 
                Interconnection-wide transmission grid plan for a high-
                priority regional transmission project.
            ``(3) Right of eminent domain.--If any holder of a 
        certificate issued under paragraph (2) 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 high-priority regional 
        transmission project to which the certificate relates, and the 
        necessary land or other property necessary to the proper 
        operation of the high-priority regional transmission project, 
        the holder may acquire the right-of-way by the exercise of the 
        right of eminent domain in--
                    ``(A) the United States district court for the 
                district in which the property is located; or
                    ``(B) a State court.
            ``(4) Federal, state and tribal recommendations.--In 
        granting a certificate under paragraph (2), the Commission 
        shall--
                    ``(A) seek from Federal resource agencies, State 
                regulatory agencies, and affected Indian tribes 
                recommended mitigation measures, based on habitat 
                protection, environmental considerations, or cultural 
                site protection; and
                    ``(B)(i) incorporate those identified mitigation 
                measures as conditions to the certificate; or
                    ``(ii) if the Commission determines that a 
                recommended mitigation measure is inconsistent with the 
                purposes of this section or with other applicable 
                provisions of law, is infeasible or not cost-effective, 
                or for any other reason--
                            ``(I) consult with the Federal resource 
                        agency, State regulatory agency, and affected 
                        Indian tribe to seek to resolve the issue;
                            ``(II) incorporate as conditions to the 
                        certificate such recommended mitigation 
                        measures as are determined to be appropriate by 
                        the Commission, based on those consultations 
                        and the record before the Commission; and
                            ``(III) if, after consultation, the 
                        Commission does not adopt in whole or in part a 
                        recommendation of an agency or affected Indian 
                        tribe, publish a statement of a finding that 
                        the adoption of the recommendation is 
                        infeasible, not cost-effective, or otherwise 
                        inconsistent with this section or other 
                        applicable provisions of law.
            ``(5) State or local authorizations.--An applicant 
        receiving a certificate under this subsection with respect to 
        construction or modification of a high-priority regional 
        transmission project in a State shall not be required to obtain 
        a separate siting authorization from the State or any local 
        authority within the State.
            ``(6) Rights-of-way over indian land.--Notwithstanding 
        paragraph (3), in the case of siting, construction, operation, 
        and maintenance of a transmission facility to be located on or 
        over Indian land, a certificate holder under this section shall 
        comply with the requirements of Federal law for obtaining 
        rights-of-way on or over Indian land.
    ``(e) Relationship to Other Laws.--
            ``(1) In general.--Except as specifically provided in this 
        section, nothing in this section affects any requirement of an 
        environmental or historic preservation law of the United 
        States, including--
                    ``(A) the National Environmental Policy Act of 1969 
                (42 U.S.C. 4321 et seq.);
                    ``(B) the Wilderness Act (16 U.S.C. 1131 et seq.); 
                or
                    ``(C) the National Historic Preservation Act (16 
                U.S.C. 470 et seq.).
            ``(2) State law.--Nothing in this section precludes any 
        person from constructing or modifying any transmission facility 
        in accordance with State law.
    ``(f) Applicability.--
            ``(1) Project developers.--Nothing in this section 
        precludes the development, subject to applicable regulatory 
        requirements, of transmission projects that are not selected in 
        a regional transmission plan.
            ``(2) Exclusions.--This section does not apply in the State 
        of Alaska or Hawaii or to the Electric Reliability Council of 
        Texas.''.

Summary: This bill amends the Federal Power Act to declare U.S. policy regarding the national interstate electricity transmission system, and to ensure that high-priority regional transmission (HPRT) projects are in the public interest. The bill prohibits a project developer from seeking a certificate for construction without first seeking authorization under applicable state law. The Federal Energy Regulatory Commission (FERC) may authorize HPRT project construction found to be required by public convenience and necessity if the state:  fails to approve the project, rejects the project application, has no authority to approve the project siting, or authorizes the project subject to conditions that unreasonably interfere with an HPRT project.  FERC is designated the lead agency to coordinate both federal authorizations and related environmental reviews for an HPRT project. FERC shall: (1) coordinate the federal authorization and related environmental review process with any Indian tribe, multistate entity, or state agency responsible for separate permitting or environmental review of a project; and (2) ensure timely and efficient review and permit decisions.     FERC must incorporate into the certificate certain mitigation measures recommended by federal and state agencies, including affected Indian tribes. Excludes from coverage by this Act Alaska, Hawaii, and the Electric Reliability Council of Texas.