Sponsor
Kathy Castor
Representative · D-FL
Representative · D-FL
The bill makes very large interstate and offshore transmission projects easier to finance and build—boosting grid reliability and aligning costs with beneficiaries—but shifts more cost onto regional ratepayers, may deprioritize smaller local projects, and could invite disputes over who pays.
Rural communities, utilities, and electricity consumers in affected regions: speeds up financing and construction of very large (≥1,000 MW) interstate and offshore transmission lines and major upgrades, improving grid reliability and resilience against outages.
Utilities, transmission developers, and investors: can recover construction costs through FERC-approved cost-allocation tariffs, improving project bankability and making large interstate/offshore projects more financeable.
Ratepayers and taxpayers in affected planning regions: will generally pay costs roughly in proportion to the anticipated reliability, economic, resilience, and policy benefits they receive, better aligning payments with beneficiaries.
Electricity customers in affected planning regions: may face higher bills as regional ratepayers are required to fund very large transmission projects, increasing household and commercial energy costs.
Local communities, distributed-generation owners, and smaller utilities: may receive less investment or lower priority if incentives shift toward very large qualifying projects, potentially slowing local upgrades.
Utilities, developers, ratepayers, and regulators: broad, judgment-based benefit categories (e.g., 'public policy' or 'other reasonably anticipated benefits') could trigger disputes and litigation over cost allocation, creating regulatory uncertainty and delays.
Based on analysis of 2 sections of legislative text.
Allows FERC to accept cost-allocation tariffs for very large new or expanded interstate/offshore transmission projects and requires allocations roughly matched to anticipated benefits.
Official title: To amend the Federal Power Act to authorize the allocation of the costs of certain interstate electric power transmission lines and electric power transmission lines that are located offshore, and for other purposes.
Introduced July 22, 2026 by Kathy Castor · Last progress July 22, 2026
Permits FERC to allow owners or operators of large interstate or offshore transmission projects to file cost-allocation tariffs that spread project costs to customers in planning regions roughly in line with expected benefits (reliability, economic, resilience, public policy, etc.). Defines "transmission facility of national significance" by size and completion date and preserves FERC's existing authority over other transmission cost-allocation matters. Applies to new interstate or offshore transmission lines of at least 1,000 MW capacity completed after enactment, and to upgrades/expansions that increase capacity by at least 500 MW completed after enactment. The law does not appropriate funds or change tax law; it changes FERC's tariff/approval framework for allocating costs of very large transmission projects.