II 118th CONGRESS 1st Session S. 1804 IN THE SENATE OF THE UNITED STATES June 1, 2023 Mr. Heinrich introduced the following bill; which was read twice and referred to the Committee on Energy and Natural Resources A BILL To amend the Federal Power Act to facilitate more expeditious review and permitting of certain electric transmission facilities, and for other purposes.

1. Short title This Act may be cited as the Facilitating America's Siting of Transmission and Electric Reliability Act of 2023 or the FASTER Act of 2023 . 2. National interest electric transmission facilities (a) In general Section 216 of the Federal Power Act ( 16 U.S.C. 824p ) is amended to read as follows: 216. Siting of interstate electric transmission facilities (a) Definitions In this section: (1) Commission The term Commission means the Federal Energy Regulatory Commission. (2) Community benefit agreement (A) In general The term community benefit agreement means an agreement between CBA parties, including, at a minimum, at least 1 entity described in each of subclauses (I) through (IV) of subparagraph (B)(iii), that— (i) relates to a project for the construction or modification of a national interest electric transmission facility for which a permit is sought under subsection (c); (ii) is applicable through the construction (or modification) and operation of that national interest electric transmission facility; (iii) is negotiated through a process that includes meaningful engagement, by the project sponsor, with— (I) the applicable 1 or more agreement entities that are parties to the agreement; and (II) stakeholder groups, including at least 1 entity described in each of subclauses (I) and (II) of subparagraph (B)(v); (iv) details specific, measurable, and legally enforceable CBA commitments; (v) includes a detailed plan, with clear metrics, milestones, and timelines, for accomplishing CBA commitments; (vi) establishes specific roles, responsibilities, and processes for tracking and reporting progress with respect to CBA commitments; (vii) establishes clear enforcement processes to address noncompliance, including specific penalties for noncompliance; and (viii) requires the CBA parties to annually submit to the Commission a report that describes, in a transparent manner— (I) the CBA commitments included in the agreement; and (II) the progress made with respect those CBA commitments. (B) Associated definitions For purposes of this paragraph: (i) Agreement entity (I) In general The term agreement entity means an entity described in subclause (II) that will be significantly impacted by project development, construction, or local operations activities relating to the applicable project that is the subject of the agreement described in subparagraph (A). (II) Entity described An entity referred to in subclause (I) is— (aa) any political subdivision of a State, including a county and any subdivision of a county, in which the project will be located; (bb) a Tribal governmental entity of an Indian Tribe that will be affected by the project; or (cc) any other State, Tribal, or local entity, as the Commission or the parties to the applicable agreement determine to be appropriate. (ii) CBA commitment The term CBA commitment means a commitment, made by the project sponsor and detailed in an agreement described in subparagraph (A), that benefits stakeholder groups. (iii) CBA party The term CBA party includes, at a minimum, each of the following: (I) The project sponsor. (II) An agreement entity. (III) A community group. (IV) A labor union or equivalent organization, such as a workforce development board, representing workers or trades that will be needed for each of the construction and operation (including, if applicable, production) activities associated with the project that is the subject of the agreement described in subparagraph (A). (iv) Community group The term community group means any of the following: (I) An unincorporated association composed of— (aa) underserved, overburdened, or disadvantaged communities and members of those communities in the applicable agreement entity; or (bb) affected landowners or community members in the applicable agreement entity. (II) A registered organization described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from taxation under section 501(a) of that Code that has a history of— (aa) prior work consistent with the goals established by the applicable agreement described in subparagraph (A); or (bb) advocating for community members in the applicable agreement entity. (v) Stakeholder group The term stakeholder group means— (I) a community group; and (II) a CBA party described in clause (iii)(IV). (C) Requirement The Commission shall make all reports submitted to the Commission in accordance with subparagraph (A)(viii) publicly available on the website of the Commission. (3) Cooperating agency The term cooperating agency has the meaning given the term in section 1508.1 of title 40, Code of Federal Regulations (or a successor regulation). (4) Council The term Council means the Federal Permitting Improvement Steering Council established by section 41002(a) of the FAST Act ( 42 U.S.C. 4370m–1(a) ). (5) Environmental review document The term environmental review document has the meaning given the term environmental document in section 41001 of the FAST Act ( 42 U.S.C. 4370m ). (6) Federal authorization (A) In general The term Federal authorization means any authorization required under Federal law in order to site a national interest electric transmission facility. (B) Inclusions The term Federal authorization includes such permits, special use authorizations, certifications, opinions, or other approvals as may be required under Federal law in order to site a national interest electric transmission facility. (7) National interest electric transmission facility The term national interest electric transmission facility means— (A) an electric transmission facility— (i) that is located in a national interest electric transmission corridor designated by the Secretary under paragraph (2) or (5) of subsection (b); and (ii) with respect to which the Commission finds that the proposed construction or modification of the facility— (I) is consistent with the public interest; (II) will significantly reduce transmission congestion in interstate commerce; (III) will protect or benefit consumers; (IV) is consistent with sound national energy policy; (V) will enhance energy independence; and (VI) in the case of a modification, will maximize, to the extent reasonable and economical, the transmission capabilities of existing towers or structures; or (B) an electric transmission facility that— (i) has a transmission capacity of not less than— (I) 345 kilovolts; or (II) 750 megawatts; and (ii) is located in not fewer than 2 States. (8) Participating agency The term participating agency has the meaning given the term in section 41001 of the FAST Act ( 42 U.S.C. 4370m ). (9) Prefiling process The term prefiling process means the prefiling process established under subsection (h)(7)(C). (10) Qualifying project The term qualifying project means a project— (A) for the siting, construction, or modification of a national interest electric transmission facility; and (B) with respect to which the project sponsor complies with— (i) the prefiling regulations described in subsection (h)(7)(C); and (ii) all other applicable regulations promulgated by the Commission relating to an application for a permit under subsection (c). (11) Secretary The term Secretary means the Secretary of Energy. (12) State or local authorization (A) In general The term State or local authorization means any authorization required under State or local law in order to site a transmission facility. (B) Inclusions The term State or local authorization includes such permits, special use authorizations, certifications, opinions, or other approvals as may be required under State or local law in order to site a transmission facility. (b) Study, report, and designation of National Interest Electric Transmission Corridors (1) Study Not later than 1 year after the date of enactment of the FASTER Act of 2023 , and every 3 years thereafter, the Secretary, in consultation with affected States and Indian Tribes, shall conduct a study of electric transmission capacity constraints and congestion. (2) Report and designation Not less frequently than once every 3 years, the Secretary, after considering alternatives and recommendations from interested parties (including an opportunity for comment from affected States and Indian Tribes), shall issue a report, based on the study under paragraph (1) or other information relating to electric transmission capacity constraints and congestion, which may designate as a national interest electric transmission corridor any geographic area that— (A) is experiencing electric energy transmission capacity constraints or congestion that adversely affects consumers; or (B) is expected to experience such energy transmission capacity constraints or congestion. (3) Consultation Not less frequently than once every 3 years, the Secretary, in conducting the study under paragraph (1) and issuing the report under paragraph (2), shall consult with any appropriate regional entity referred to in section 215. (4) Considerations In determining whether to designate a national interest electric transmission corridor under paragraph (2), the Secretary may consider whether— (A) the economic vitality and development of the corridor, or the end markets served by the corridor, may be constrained by lack of adequate or reasonably priced electricity; (B) (i) economic growth in the corridor, or the end markets served by the corridor, may be jeopardized by reliance on limited sources of energy; and (ii) a diversification of supply is warranted; (C) the energy independence or energy security of the United States would be served by the designation; (D) the designation would be in the interest of national energy policy; (E) the designation would enhance national defense and homeland security; (F) the designation would enhance the ability of facilities that generate or transmit firm or intermittent energy to connect to the electric grid; (G) the designation— (i) maximizes existing rights-of-way; and (ii) avoids and minimizes, to the maximum extent practicable, and offsets to the extent appropriate and practicable, sensitive environmental areas and cultural heritage sites; and (H) the designation would result in a reduction in the cost to purchase electric energy for consumers. (5) Designation by request (A) In general The developer of a project to construct or modify an electric transmission facility may submit to the Secretary an application to designate 1 or more proposed routes associated with the project as a national interest electric transmission corridor. (B) Requirement A developer described in subparagraph (A) may submit an application under that subparagraph only if the developer— (i) has begun actively routing the applicable project; and (ii) has— (I) begun engaging in outreach to— (aa) the community in which the proposed route is located; and (bb) landowners that may be affected by the construction or modification of an electric transmission facility on that proposed route; (II) begun engaging in land surveys; or (III) initiated environmental compliance work associated with the project. (C) Designation (i) In general The Secretary may designate a route proposed by a developer in an application submitted under subparagraph (A) as a national interest electric transmission corridor if the Secretary determines that— (I) the route is in a geographic area described in subparagraph (A) or (B) of paragraph (2); and (II) designation of the route is consistent with the purposes of such a designation, taking into consideration the factors described in paragraph (4). (ii) Deadline for decision Not later than 90 days after the date on which an application is submitted to the Secretary under subparagraph (A), the Secretary shall issue a decision with respect to each proposed route that— (I) designates the proposed route as a national interest electric transmission corridor; or (II) denies the application with respect to that route. (D) Rulemaking (i) In general Not later than 1 year after the date of enactment of the FASTER Act of 2023 , the Secretary shall promulgate regulations to carry out this paragraph. (ii) Other applicants In carrying out clause (i), the Secretary— (I) shall consider whether it would be appropriate to allow an entity other than the developer of a transmission project, such as a Tribal authority, a State, a non-transmission-owning utility (such as a transmission-dependent utility), a local government, a generation developer, or any other appropriate entity, to submit an application for the designation of a particular route as a national interest electric transmission corridor; and (II) may promulgate regulations to allow 1 or more entities described in subclause (I) to submit an application for a designation described in that subclause, as the Secretary determines to be appropriate, subject to the requirements described in subclauses (I) and (II) of subparagraph (C)(i). (c) Permit for construction or modification of national interest electric transmission facilities (1) In general Except as provided in subsection (i), and subject to paragraph (2), the Commission may issue 1 or more permits for the construction or modification of national interest electric transmission facilities if the Commission finds that— (A) a State in which the transmission facilities are to be constructed or modified does not have authority— (i) to approve the siting of the facilities; or (ii) to consider the interstate benefits or interregional benefits expected to be achieved by the proposed construction or modification of transmission facilities in the State; (B) the applicant for a permit is a transmitting utility under this Act but does not qualify to apply for a permit or siting approval for the proposed project in a State because the applicant does not serve end-use customers in the State; or (C) a State commission or other entity that has authority to approve the siting of the facilities— (i) has not made a determination on an application seeking approval pursuant to applicable law by the date that is 1 year after the date on which the application was filed with the State commission or other entity; (ii) has conditioned its approval in such a manner that the proposed construction or modification will not significantly reduce transmission capacity constraints or congestion in interstate commerce or is not economically feasible; or (iii) has denied an application seeking approval pursuant to applicable law. (2) Requirement The Commission may issue a permit under paragraph (1) only— (A) after the Commission— (i) makes a finding described in subparagraph (A), (B), or (C) of paragraph (1); (ii) makes all applicable findings and determinations necessary to establish that the applicable facility is a national interest electric transmission facility described in subparagraph (A) or (B) of subsection (a)(7); and (iii) provides notice and an opportunity for hearing with respect to the permit; and (B) if the applicant engages in the prefiling process with respect to the applicable facility. (3) Applications (A) In general An application for a permit under this subsection shall be made in writing to the Commission. (B) Rulemaking The Commission shall issue rules specifying— (i) the form of an application for a permit under this subsection; (ii) the information to be contained in the application; and (iii) the manner of service of notice of the application on interested persons. (4) Simultaneous proceedings In order to ensure that an applicant for a permit under this subsection receives the most timely decision possible with respect to that application, the prefiling process relating to that application may be initiated simultaneously with, or at any time after, an application is submitted to, or any relevant process is initiated with, the applicable State commission or other State entity that has authority to approve the siting of the applicable facility. (d) Comments In any proceeding before the Commission under subsection (c), the Commission shall afford each State in which a transmission facility covered by the permit is or will be located, each affected Federal agency and Indian Tribe, private property owners, and other interested persons, a reasonable opportunity to present their views and recommendations with respect to the need for and impact of a facility covered by the permit. (e) Rights-of-Way (1) In general In the case of a permit under subsection (c) for electric transmission facilities to be located on property other than property owned by the United States or a State, if the permit holder cannot acquire by contract, or is unable to agree with the owner of the property to the compensation to be paid for, the necessary right-of-way to construct or modify, and operate and maintain, the transmission facilities and, in the determination of the Commission, the permit holder has made good faith efforts to engage with affected landowners and other stakeholders early in the applicable permitting process, the permit holder may acquire the right-of-way by the exercise of the right of eminent domain in the district court of the United States for the district in which the property concerned is located, or in the appropriate court of the State in which the property is located. (2) Good faith efforts to engage with affected landowners and other stakeholders (A) Community benefit agreements (i) In general Subject to subparagraph (B), for purposes of paragraph (1), a permit holder may establish that the permit holder has made good faith efforts to engage with affected landowners and other stakeholders early in the applicable permitting process by demonstrating to the Commission that, during the prefiling process, the permit holder— (I) engaged in a meaningful process to develop and negotiate a community benefit agreement with applicable CBA parties (as defined in subsection (a)(2)(B)) in the community in which the affected landowners or other stakeholders are located; or (II) entered into a community benefit agreement with applicable CBA parties (as defined in that subsection) in that community. (ii) Technical assistance (I) In general On the request of a project sponsor or a community engaged in the process of developing and negotiating a community benefit agreement, the Secretary shall provide technical assistance, including, as the Secretary determines to be appropriate, legal counsel, mediation, and guidance, to help the community develop and negotiate a community benefit agreement with the project sponsor. (II) Authorization of appropriations There are authorized to be appropriated to the Secretary such sums as are necessary to carry out this clause. (B) Applicant code of conduct for engagement with affected landowners (i) In general Not later than 1 year after the date of enactment of the FASTER Act of 2023 , the Commission shall promulgate a final rule to establish an applicant code of conduct for engagement with affected landowners. (ii) Effect of compliance For purposes of paragraph (1), the Commission shall consider a permit holder to have made good faith efforts to engage with affected landowners if the Commission determines that the permit holder complied with the applicant code of conduct for engagement with affected landowners established under clause (i). (iii) Effect of noncompliance Beginning on the effective date of the final rule promulgated under clause (i), the Commission may not make a determination that a permit holder has made good faith efforts to engage with affected landowners if the Commission determines that the permit holder substantially violated the applicant code of conduct for engagement with affected landowners established under that clause. (C) Good faith efforts determination (i) In general For purposes of paragraph (1), the Commission shall consider a permit holder to have made good faith efforts to engage with affected landowners and other stakeholders early in the applicable permitting process if the Commission determines that the permit holder— (I) engaged, in good faith, in a meaningful process described in subparagraph (A)(i)(I), regardless of whether a community benefit agreement was entered into as a result of that process; and (II) complied with the applicant code of conduct for engagement with affected landowners established pursuant to subparagraph (B)(i). (ii) Requirement A permit holder that enters into a community benefit agreement described in subparagraph (A)(i)(II) shall be presumed to have complied with clause (i)(I). (iii) Other good faith efforts For purposes of paragraph (1), the Commission may determine that a permit holder that has not engaged in a process described in subparagraph (A)(i)(I) as described in clause (i)(I) has made good faith efforts to engage with affected landowners and other stakeholders early in the applicable permitting process if the permit holder demonstrates, to the satisfaction of the Commission, that the permit holder has made good faith efforts pursuant to other means, subject to subparagraph (B)(iii). (D) Effect of community benefit agreement on eligibility for certain grants (i) In general For purposes of section 50152 of Public Law 117–169 (commonly known as the Inflation Reduction Act of 2022 ) ( 42 U.S.C. 18715a ), if the sponsor of a project for which a permit is sought under subsection (c) has entered into a community benefit agreement— (I) the sponsor and any applicable agreement entity (as defined in subsection (a)(2)(B)) that is eligible to apply for a grant under that section may jointly apply for such a grant; and (II) the sponsor may receive and use amounts made available pursuant to such a grant in accordance with— (aa) any applicable provisions of the applicable community benefit agreement; and (bb) any applicable rules or conditions established by the Secretary. (ii) Negotiated provisions A community benefit agreement may include provisions requiring the project sponsor— (I) to submit an application for a grant under section 50152 of Public Law 117–169 ( 42 U.S.C. 18715a ) on behalf of, or jointly with, the applicable agreement entity or any other entity eligible to apply for a grant under that section; and (II) to take any other actions necessary to secure a grant under that section. (3) Use of right-of-way Any right-of-way acquired under paragraph (1) shall be used exclusively for the construction or modification of electric transmission facilities within a reasonable period of time after the acquisition. (4) Practice and procedure The practice and procedure in any action or proceeding under this subsection in the district court of the United States shall conform as nearly as practicable to the practice and procedure in a similar action or proceeding in the courts of the State in which the property is located. (5) Savings clause (A) In general Nothing in this subsection shall be construed to authorize the use of eminent domain to acquire a right-of-way for any purpose other than the construction, modification, operation, or maintenance of electric transmission facilities and related facilities. (B) Restriction; termination A right-of-way acquired under paragraph (1) shall not be used for any other purpose, and the right-of-way shall terminate on the termination of the use for which the right-of-way was acquired. (f) Compensation (1) In general Any right-of-way acquired pursuant to subsection (e) shall be considered a taking of private property for which just compensation is due. (2) Amount Just compensation shall be an amount equal to the fair market value (including applicable severance damages) of the property taken on the date of the exercise of eminent domain authority. (g) State law Nothing in this section precludes any person from constructing or modifying any transmission facility in accordance with State law. (h) Coordination of Federal authorizations for national interest electric transmission facilities (1) Lead agency With respect to a qualifying project, the Commission shall act as the lead agency for purposes of coordinating— (A) all applicable Federal authorizations; (B) all applicable State or local authorizations; and (C) all related environmental reviews, pursuant to the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq. ) or any other Federal law. (2) Coordination (A) In general To the maximum extent practicable under applicable Federal law, the Commission shall coordinate the Federal authorization and review process under this subsection with any Indian Tribes, multistate entities, and State agencies that are responsible for conducting any separate permitting and environmental reviews of the facility, to ensure timely and efficient review and permit decisions. (B) Deadlines and milestones (i) In general As the lead agency, the Commission, in consultation with agencies responsible for Federal authorizations and, as appropriate, with Indian Tribes, multistate entities, and State agencies that are willing to coordinate 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, to ensure, to the maximum extent practicable, that the period described in clause (ii) does not exceed 3 years. (ii) Period described The period referred to in clause (i) is the period beginning on the date on which the prefiling process is initiated with respect to a proposed facility and ending on, as applicable— (I) the date on which a notice to proceed is issued with respect to that facility; or (II) the date on which an application for a permit under subsection (c) with respect to that facility is denied. (iii) Certain deadlines The Commission shall ensure that, once an application has been submitted with such data as the Commission considers necessary, all permit decisions and related environmental reviews under all applicable Federal laws shall be completed— (I) within 1 year; or (II) if a requirement of another provision of Federal law does not permit compliance with subclause (I), as soon thereafter as is practicable. (3) Process for prompt disclosure of certain information The Commission shall establish a process pursuant to which a prospective applicant for a permit under subsection (c) that has initiated the prefiling process may confer with the agencies involved to have each such agency determine and communicate to the prospective applicant, not later than 60 days after the prospective applicant submits a request— (A) the likelihood of approval for a potential facility; and (B) the key issues of concern to the agencies and the public. (4) Single environmental review document (A) In general As the lead agency, the Commission, in consultation with the affected agencies, shall prepare a single environmental review document, which shall be used as the basis for all decisions on the qualifying project under Federal law. (B) Streamlined review and permitting within certain corridors The Commission and the heads of other agencies shall streamline the review and permitting of transmission within corridors designated under section 503 of the Federal Land Policy and Management Act of 1976 ( 43 U.S.C. 1763 ) by fully taking into account prior analyses and decisions relating to the corridors. (C) Requirement The document prepared under subparagraph (A) shall include consideration by the relevant agencies of any applicable criteria or other matters as required under applicable law. (5) Appeal to the President (A) In general If any agency has denied a Federal authorization required for a transmission facility, or has failed to act by the deadline established by the Commission 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 President, who shall, in consultation with the affected agency, review the denial or failure to take action on the pending application. (B) Decision Based on the overall record and in consultation with the affected agency, the President may— (i) issue the necessary authorization with any appropriate conditions; or (ii) deny the application. (C) Deadline for decision The President shall issue a decision not later than 90 days after the date of the filing of the appeal. (D) Requirement In making a decision under this paragraph, the President shall comply with applicable requirements of Federal law, including any requirements of— (i) the National Forest Management Act of 1976 ( 16 U.S.C. 472a et seq. ); (ii) the Endangered Species Act of 1973 ( 16 U.S.C. 1531 et seq. ); (iii) the Federal Water Pollution Control Act ( 33 U.S.C. 1251 et seq. ); (iv) the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq. ); and (v) the Federal Land Policy and Management Act of 1976 ( 43 U.S.C. 1701 et seq. ). (E) Application This paragraph shall not apply to any unit of the National Park System, the National Wildlife Refuge System, the National Wild and Scenic Rivers System, the National Trails System, the National Wilderness Preservation System, or a National Monument. (6) Application of FAST–41 procedures (A) In general Notwithstanding any other provision of law, on the submission of an application for a permit under subsection (c) for a qualifying project— (i) the qualifying project shall be considered to be a covered project (as defined in section 41001 of the FAST Act ( 42 U.S.C. 4370m )); and (ii) except as otherwise provided in this section (including paragraphs (1) and (2)), title XLI of the FAST Act ( 42 U.S.C. 4370m et seq. ) (including section 41007 of that Act ( 42 U.S.C. 4370m–6 )) shall apply to the qualifying project in the same manner as any other covered project (as defined in section 41001 of that Act ( 42 U.S.C. 4370m )). (B) Cooperation of participating agencies Notwithstanding any other provision of law, each Federal participating agency with respect to a qualifying project shall— (i) cooperate with the Commission and the project sponsor with respect to the review and permitting processes carried out under this section; and (ii) fully participate in those processes. (C) Use of Environmental Review Improvement Fund (i) Definitions In this subparagraph: (I) Agency participating in the prefiling process The term agency participating in the prefiling process means a participating agency or cooperating agency that participates in the prefiling process with respect to a qualifying project. (II) Fund The term Fund means the Environmental Review Improvement Fund established under section 41009(d) of the FAST Act ( 42 U.S.C. 4370m–8(d) ). (ii) General authority Notwithstanding any other provision of law, with respect to a qualifying project, amounts in the Fund may, in addition to any other use permitted under title XLI of the FAST Act ( 42 U.S.C. 4370m et seq. ) (or a regulation promulgated under that title), be used— (I) by the Council, to cover the expenses of the Council relating to the qualifying project; (II) by the Commission, as the lead agency, to cover the costs of any environmental review relating to the qualifying project; and (III) as the Council determines to be appropriate, by any other Federal agency conducting an environmental review relating to the qualifying project, to cover the costs of conducting that environmental review. (iii) Funding for purposes relating to the prefiling process Notwithstanding any other provision of law, the Council shall make amounts in the Fund available to agencies participating in the prefiling process for purposes relating to the participation of those agencies in that process, including to compensate those agencies for resources expended during that process for those purposes. (iv) Subsequent consideration of participation in the prefiling process To encourage participation in the prefiling process, the Council, in making amounts in the Fund available to participating agencies and cooperating agencies for purposes relating to a qualifying project for which an application has been filed under subsection (c), shall take into consideration whether, and the extent to which, the participating agency or cooperating agency participated in the prefiling process with respect to that project. (v) Authorization of appropriations to the Fund In addition to any amounts authorized to be appropriated to the Fund under any other law, there are authorized to be appropriated to the Fund such sums as are necessary to carry out this subparagraph. (7) Prefiling required (A) In general In order to facilitate maximum participation by all stakeholders in the review and permitting processes for qualifying projects, project sponsors shall engage in a prefiling process in accordance with the regulations promulgated under subparagraph (C). (B) Participation (i) Mandatory participation Any applicant for a permit under subsection (c) and each Federal participating agency with respect to a project for which a permit is sought under that subsection shall participate in the prefiling process. (ii) State, Tribal, and local agencies The Commission shall facilitate and encourage State, Tribal, and local agencies, including any State commission or other entity described in subsection (c)(1), to participate in the prefiling process for a qualifying project. (C) Rulemaking (i) In general Not later than 1 year after the date of enactment of the FASTER Act of 2023 , the Commission shall promulgate a final rule to establish a prefiling process for use in accordance with this section. (ii) Updates The Commission may revise and update, as the Commission determines to be appropriate, the rules and regulations of the Commission with respect to the prefiling process established under clause (i), subject to the condition that any revision or update is consistent with the making of good faith efforts to engage stakeholders early in the review and permitting processes for national interest electric transmission facilities. (8) Expediting application processing (A) In general A Federal or State agency may allow an applicant seeking a Federal authorization for a qualifying project to fund a third-party contractor selected by the Federal or State agency to assist in reviewing the application. (B) Direct funding for expedited consideration (i) In general Beginning on the date of enactment of the FASTER Act of 2023 , a Federal or State agency may accept and expend funds contributed by an applicant seeking a Federal authorization for a qualifying project to carry out an activity that directly and meaningfully contributes to expediting the consideration by the agency of the application. (ii) Relation to existing discretionary funds Any funds received by an agency under this subparagraph may be used only to carry out activities that would not otherwise occur within the same timeframe using discretionary funds provided in an appropriations Act. (C) Effect on application consideration In carrying out this paragraph, the Commission or an applicable agency shall ensure that the use of applicant funds under subparagraph (A) or (B) will not impact impartial decisionmaking with respect to the responsibilities of the agency, either substantively or procedurally, under this part or any other Federal law, consistent with the regulations for implementing the procedural provisions of the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq. ) under parts 1500 through 1508 of title 40, Code of Federal Regulations (or successor regulations). (D) Voluntary funding Nothing in this paragraph requires or compels an applicant— (i) to fund a third-party contractor under subparagraph (A); or (ii) to contribute direct funding for expedited consideration under subparagraph (B). (E) Existing third-party contracts Nothing in this paragraph affects any third party contract under section 2403 of the Energy Policy Act of 1992 ( 16 U.S.C. 797d ) that is in effect as of the date of enactment of the FASTER Act of 2023 . (F) Accountability (i) Reports A Federal or State agency shall submit to the Commission for each fiscal year a report that describes the manner in which the agency used funds under this paragraph during that fiscal year. (ii) Audits The Comptroller General of the United States shall conduct periodic audits to ensure that Federal and State agencies use funds in accordance with this paragraph. (9) Categorical exclusions (A) In general Not later than 1 year after the date of enactment of the FASTER Act of 2023 , the Commission shall— (i) evaluate whether 1 or more additional categorical exclusions developed in compliance with the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq. ) with respect to the activities described in subparagraph (D) would reduce processing times or costs for the issuance of permits under subsection (c) without significantly affecting the human environment; and (ii) if the Commission determines under clause (i) that 1 or more additional categorical exclusions would reduce processing times or costs for the issuance of permits under subsection (c) without significantly affecting the human environment— (I) establish those categorical exclusions in compliance with the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq. ); and (II) revise relevant agency regulations and policy statements to implement those categorical exclusions. (B) Categorical exclusions of other agencies Consistent with section 109 of the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq. ), the Commission may adopt a categorical exclusion listed in the procedures of another Federal agency under that Act for a category of proposed agency actions for which the categorical exclusion was established. (C) Administration (i) In general In administering a categorical exclusion established under subparagraph (A)(ii), the Commission shall comply with the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq. ) (including regulations promulgated pursuant to that Act). (ii) Extraordinary circumstances In determining whether to use a categorical exclusion established under subparagraph (A)(ii), the Commission shall apply— (I) section 380.4(b) of title 18, Code of Federal Regulations (or a successor regulation); and (II) any other regulation promulgated by the Commission to establish extraordinary circumstances procedures described in section 1507.3(e)(2)(ii) of title 40, Code of Federal Regulations (or a successor regulation). (D) Activities described The activities referred to in subparagraph (A) include— (i) a geotechnical investigation; (ii) off-road travel in an existing right-of-way; (iii) adding a battery or other energy storage device to an existing or planned energy facility, if that storage resource is located within the physical footprint of the existing or planned energy facility; (iv) any repair, maintenance, upgrade, optimization, or minor addition to existing transmission and distribution infrastructure, including— (I) operation, maintenance, or repair of power equipment and structures within existing substations, switching stations, transmission lines, and distribution lines; (II) the addition, modification, retirement, or replacement of breakers, transmission towers, transformers, bushings, or relays; (III) the voltage uprating, modification, reconductoring with conventional or advanced conductors, and clearance resolution of transmission lines; (IV) an activity to minimize fire risk, including vegetation management, routine fire mitigation, inspection, and maintenance activities, and removal of hazard trees and other hazard vegetation within or adjacent to an existing right-of-way; (V) an improvement to or construction of 1 or more structure pads for that infrastructure; and (VI) access and access route maintenance, and any repair, associated with any activity described in subclauses (I) through (V); (v) approval of, and activities conducted in accordance with, operating plans or agreements for transmission and distribution facilities or under a special use authorization for an electric transmission and distribution facility right-of-way; and (vi) construction, maintenance, realignment, or repair of an existing permanent or temporary access road— (I) within an existing right-of-way or within a transmission or utility corridor established by Congress or in a land use plan; or (II) that serves an existing transmission line, distribution line, or energy facility. (E) Other categorical exclusions (i) In general Not later than 1 year after the date of enactment of the FASTER Act of 2023 , the Commission shall— (I) review section 1021.410 of title 10, Code of Federal Regulations (as in effect on the date of enactment of the FASTER Act of 2023 ), and the applicable appendices of subpart D of that title; and (II) as the Commission determines to be appropriate, promulgate comparable regulations pursuant to which the Commission may establish categorical exclusions for, and apply categorical exclusions to, qualifying projects. (ii) Transition period Until the date on which the regulations described in clause (i)(II) are promulgated by the Commission, the Commission may apply section 1021.410 of title 10, Code of Federal Regulations (or a successor regulation), to qualifying projects. (10) NEPA processes and compliance (A) Purpose The purpose of this paragraph is to ensure that there is no duplication of effort or processes with respect to environmental reviews relating to the siting, construction, or modification of national interest electric transmission facilities in national interest electric transmission corridors designated by the Secretary under paragraph (2) or (5) of subsection (b). (B) No environmental review required for NIETC designation Notwithstanding any other provision of law, the designation of a national interest electric transmission corridor under paragraph (2) or (5) of subsection (b) does not require the preparation of an environmental review document pursuant to the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq. ) (including section 106 of that Act) or any other provision of Federal law. (C) Environmental review required for siting, construction, or modification of facilities With respect to any siting, construction, or modification of a national interest electric transmission facility in a national interest electric transmission corridor, the Commission, in accordance with this subsection— (i) shall be designated as the lead agency with respect to that siting, construction, or modification; and (ii) shall prepare an environmental review document for that siting, construction, or modification, as applicable. (11) Federal land use authorizations (A) In general Each Federal land use authorization for a national interest electric transmission facility shall be issued— (i) for a duration, as determined by the Commission, commensurate with the anticipated use of the facility; and (ii) with appropriate authority to manage the right-of-way for reliability and environmental protection. (B) Renewal On the expiration of the authorization (including an authorization issued before the date of enactment of the FASTER Act of 2023 ), the authorization shall be reviewed for renewal taking fully into account reliance on such electricity infrastructure, recognizing the importance of the authorization for public health, safety, and economic welfare and as a legitimate use of Federal land. (12) Consultation In exercising the responsibilities under this section, the Commission shall consult regularly with— (A) the Secretary; (B) electric reliability organizations (including related regional entities) approved by the Commission; and (C) Transmission Organizations approved by the Commission. (i) Interstate compacts (1) In general The consent of Congress is given for 3 or more contiguous States to enter into an interstate compact, subject to approval by Congress, establishing regional transmission siting agencies— (A) to facilitate siting of future electric energy transmission facilities within those States; and (B) to carry out the electric energy transmission siting responsibilities of those States. (2) Technical assistance The Commission shall provide technical assistance to regional transmission siting agencies established under this subsection. (3) Authority The regional transmission siting agencies shall have the authority to review, certify, and permit siting of transmission facilities, including facilities in national interest electric transmission corridors (other than facilities on property owned by the United States). (4) Limitation The Commission shall have no authority to issue a permit for the construction or modification of an electric transmission facility within a State that is a party to a compact, unless the Commission determines that the members of the compact are unable to reach an agreement on an application seeking approval by the date that is 1 year after the date on which the application for the facility was filed. (j) Relationship to other laws Except as specifically provided, nothing in this section affects any requirement of an environmental law of the United States, including the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq. ). (k) ERCOT This section shall not apply within the area referred to in section 212(k)(2)(A). . (b) Grants To facilitate the siting of interstate electricity transmission lines (1) Definitions In this subsection: (A) Commission The term Commission means the Federal Energy Regulatory Commission. (B) Community benefit agreement The term community benefit agreement has the meaning given the term in section 216(a) of the Federal Power Act ( 16 U.S.C. 824p(a) ). (C) Covered transmission project The term covered transmission project has the meaning given the term in section 50152(e) of Public Law 117–169 (commonly known as the Inflation Reduction Act of 2022 ) ( 42 U.S.C. 18715a(e) ). (D) Secretary The term Secretary means the Secretary of Energy. (2) Allocation In carrying out section 50152 of Public Law 117–169 ( 42 U.S.C. 18715a ), the Secretary shall use, of the amounts appropriated by subsection (a) of that section and used for making grants under that section— (A) 30 percent to make grants under subsection (b)(1) of that section; and (B) 70 percent to make grants under subsection (b)(2) of that section. (3) Priority In making grants under subsection (b)(2) of section 50152 of Public Law 117–169 ( 42 U.S.C. 18715a ), the Secretary shall give priority to State, local, or Tribal governmental entities that, in the determination of the Secretary, are among the most significantly impacted by project development, construction, or local operations activities relating to the covered transmission projects for which a grant under that subsection is sought. (4) Additional economic development funding (A) In general Subject to subparagraph (B), if the Secretary makes a grant under section 50152(b)(2) of Public Law 117–169 ( 42 U.S.C. 18715a ), the sponsor of the applicable covered transmission project shall be required to contribute, to the recipient of the grant, $1 for every $5 provided by the Secretary to that recipient pursuant to the grant. (B) Community benefit agreements If the sponsor of the applicable covered transmission project has entered into a community benefit agreement, the sponsor may satisfy the requirement described in subparagraph (A) through contributions or expenditures made pursuant to the terms of the applicable community benefit agreement. (c) Conforming amendments (1) Section 1222 of the Energy Policy Act of 2005 ( 42 U.S.C. 16421 ) is amended— (A) in subsection (a)(1)(A), by striking section 216(a) of the Federal Power Act and inserting section 216(b) of the Federal Power Act ( 16 U.S.C. 824p(b) ) ; and (B) in subsection (b)(1)(A), by striking section 216(a) of the Federal Power Act and inserting section 216(b) of the Federal Power Act ( 16 U.S.C. 824p(b) ) . (2) Section 40106(h)(1)(A) of the Infrastructure Investment and Jobs Act ( 42 U.S.C. 18713(h)(1)(A) ) is amended by striking section 216(a) of the Federal Power Act 16 U.S.C. 824p(a) and inserting section 216(b) of the Federal Power Act ( 16 U.S.C. 824p(b) ) . (3) Section 50151(b) of Public Law 117–169 (commonly known as the Inflation Reduction Act of 2022 ) ( 42 U.S.C. 18715(b) ) is amended— (A) by inserting , in consultation with the Federal Energy Regulatory Commission, after The Secretary ; and (B) by striking electric transmission facilities designated by the Secretary to be necessary in the national interest under section 216(a) of the Federal Power Act ( 16 U.S.C. 824p(a) ) and inserting national interest electric transmission facilities (as defined in section 216(a) of the Federal Power Act ( 16 U.S.C. 824p(a) )) . 3. Support for regional offices of cooperating agencies There are authorized to be appropriated to the Federal Energy Regulatory Commission such sums as are necessary to provide funding to cooperating agencies (as defined in section 1508.1 of title 40, Code of Federal Regulations (or a successor regulation)) with respect to qualifying projects (as defined in section 216(a) of the Federal Power Act ( 16 U.S.C. 824p(a) )) to help cover the costs of the staff and resources of the cooperating agency that relate to the qualifying project in order to focus those staff and resources on an expeditious review of the qualifying project. 4. FERC hiring and compensation authority (a) Definition of Commission In this section, the term Commission means the Federal Energy Regulatory Commission. (b) Appointment authority Notwithstanding any provision of title 5, United States Code, governing appointments and General Schedule classification and pay rates— (1) the Chairman of the Commission may designate positions to which persons may be appointed without regard to the civil service laws; and (2) the Commission may appoint persons to those positions without regard to the civil service laws. (c) Compensation authority (1) In general Notwithstanding chapter 51, and subchapter III of chapter 53, of title 5, United States Code, the Commission may fix the rate of basic pay for the positions of individuals described in paragraph (2), subject to the limitation described in paragraph (3), without regard to the civil service laws. (2) Individuals described An individual referred to in paragraph (1) is— (A) an individual appointed under subsection (b); or (B) any other individual with respect to whom the Chairman of the Commission determines that compensation in accordance with that paragraph is necessary or appropriate to hire or retain that individual. (3) Limitation The annual rate of basic pay for an individual described in paragraph (2) may not exceed the per annum rate of salary payable for level III of the Executive Schedule under section 5314 of title 5, United States Code. 5. Disposition of certain revenues (a) Definitions In this section: (1) Covered land The term covered land means land that is— (A) public land; and (B) not excluded from the siting, construction, or modification of electric transmission facilities under— (i) a land use plan established under the Federal Land Policy and Management Act of 1976 ( 43 U.S.C. 1701 et seq. ); or (ii) other Federal law. (2) Federal land The term Federal land means— (A) National Forest System land; and (B) public land. (3) Fund The term Fund means the Federal Land Electric Energy Transmission Conservation Fund established by subsection (d)(1). (4) National Forest System The term National Forest System has the meaning given the term in section 11(a) of the Forest and Rangeland Renewable Resources Planning Act of 1974 ( 16 U.S.C. 1609(a) ). (5) Public land The term public land has the meaning given the term public lands in section 103 of the Federal Land Policy and Management Act of 1976 ( 43 U.S.C. 1702 ). (6) Secretary The term Secretary means the Secretary of the Interior. (b) Disposition of revenues Without further appropriation or fiscal year limitation, of the amounts collected as bonus bids, rentals, fees, or other payments under a right-of-way, permit, lease, or other authorization (other than under section 504(g) of the Federal Land Policy and Management Act of 1976 ( 43 U.S.C. 1764(g) )) for the siting, construction, or modification of electric transmission facilities on covered land or National Forest System land— (1) for the period beginning on the date of enactment of this Act and ending on December 31, 2039; (A) 25 percent shall be paid by the Secretary of the Treasury to the State within the boundaries of which the revenue is derived; (B) 25 percent shall be paid by the Secretary of the Treasury to the 1 or more counties within the boundaries of which the revenue is derived, to be allocated among the counties based on the percentage of land from which the revenue is derived; (C) 15 percent shall be deposited in the Treasury and be made available to the Secretary to facilitate, streamline, and improve Federal permit coordination with respect to the siting, construction, or modification of electric transmission facilities on Federal land, including the transfer of the funds by the Bureau of Land Management to other Federal agencies and State agencies to facilitate the processing of permits for the siting, construction, or modification of electric transmission facilities on Federal land, with priority given to using the amounts, to the maximum extent practicable without detrimental impacts to emerging markets, to expediting the issuance of permits required for the siting, construction, or modification of electric transmission facilities in the States from which the revenues are derived; and (D) 35 percent shall be deposited in the Fund; and (2) beginning on January 1, 2040— (A) 25 percent shall be paid by the Secretary of the Treasury to the State within the boundaries of which the revenue is derived; (B) 25 percent shall be paid by the Secretary of the Treasury to the 1 or more counties within the boundaries of which the revenue is derived, to be allocated among the counties based on the percentage of land from which the revenue is derived; (C) 10 percent shall be deposited in the Treasury and be made available to the Secretary to facilitate, streamline, and improve Federal permit coordination with respect to the siting, construction, or modification of electric transmission facilities on Federal land, including the transfer of the funds by the Bureau of Land Management to other Federal agencies and State agencies to facilitate the processing of permits for the siting, construction, or modification of electric transmission facilities on Federal land, with priority given to using the amounts, to the maximum extent practicable without detrimental impacts to emerging markets, to expediting the issuance of permits required for the siting, construction, or modification of electric transmission facilities in the States from which the revenues are derived; and (D) 40 percent shall be deposited in the Fund. (c) Payments to states and counties (1) In general Amounts paid to States and counties under subsection (b) shall be used consistent with section 35 of the Mineral Leasing Act ( 30 U.S.C. 191 ). (2) Payments in lieu of taxes A payment to a county under paragraph (1) shall be in addition to a payment in lieu of taxes received by the county under chapter 69 of title 31, United States Code. (d) Federal Land Electric Energy Transmission Conservation Fund (1) In general There is established in the Treasury a fund, to be known as the Federal Land Electric Energy Transmission Conservation Fund , which shall be administered by the National Fish and Wildlife Foundation (referred to in this subsection as the Foundation ). (2) Use of funds The Foundation may make amounts in the Fund available to Federal, State, local, and Tribal agencies to be distributed in regions in which projects for the siting, construction, or modification of electric transmission facilities are located on Federal land, for the purposes of— (A) restoring and protecting— (i) fish and wildlife habitat for affected species; (ii) fish and wildlife corridors for affected species; and (iii) water resources in areas affected by projects for the siting, construction, or modification of electric transmission facilities; and (B) preserving and improving recreational access to Federal land and water in an affected region through an easement, right-of-way, or other instrument from willing landowners for the purpose of enhancing public access to existing Federal land and water that is inaccessible or restricted. (3) Partnerships The Foundation may enter into cooperative agreements with State, local, and Tribal agencies, nonprofit organizations, and other appropriate entities to carry out the activities described in subparagraphs (A) and (B) of paragraph (2). (4) Investment of fund (A) In general Any amounts deposited in the Fund shall earn interest in an amount determined by the Secretary of the Treasury on the basis of the current average market yield on outstanding marketable obligations of the United States of comparable maturities. (B) Use Any interest earned under subparagraph (A) may be expended in accordance with this subsection. (5) Report to Congress At the end of each fiscal year, the Foundation shall submit to the Committee on Energy and Natural Resources of the Senate and the Committee on Natural Resources of the House of Representatives a report identifying— (A) the amounts described in subsection (b) that were collected during that fiscal year, organized by source; (B) the amount and purpose of payments made to each Federal, State, local, and Tribal agency under paragraph (2) during that fiscal year; and (C) the amount remaining in the Fund at the end of the fiscal year. (6) Intent of congress It is the intent of Congress that the revenues deposited and used in the Fund shall supplement (and not supplant) annual appropriations for activities described in subparagraphs (A) and (B) of paragraph (2).