High-Capacity Grid Act
What changed between versions
Covered projects now require modifications to be 'major (as determined by the Commission)' rather than any modification, upgrade, replacement, or reconductoring. New construction must also specifically include a transmission conductor. This narrows which projects are subject to the requirement.
Two cost-recovery presumptions were removed: the presumption that best-available conductors are prudent and their costs just/reasonable, and the presumption that non-best-available conductors are not prudent and their costs not just/reasonable. This eliminates the financial incentive/penalty structure.
Four new exemptions were added where the requirement does not apply: (1) projects with permits already filed or conductors already procured before enactment, (2) emergency replacement after natural disasters or terrorism, (3) situations where use would negatively impact safety or violate reliability standards, and (4) situations where use would significantly increase cost per kWh without a material increase in capacity, efficiency, or mechanical performance.
The criterion 'mitigates thermal sag at the maximum rated transmission-carrying capacity' was replaced with 'provide the greatest feasible and commercially available level of mechanical performance, taking into account relevant factors, including reliability, safety, and affordability.' This is a broader, less specific standard.
The rulemaking deadline was extended from 180 days after enactment to 1 year after enactment for FERC to issue regulations.
New requirement that FERC establish its methodology 'in consultation with the Secretary of Energy,' adding an interagency coordination step not present in the original.
New filing requirements for public utilities to demonstrate compliance, including project-specific impact data as determined necessary by FERC.
The provision was moved from a new subsection (h) of Section 205 of the Federal Power Act to a standalone new Section 224, and the terminology shifted from 'best-available transmission conductor standard' to 'best-available transmission conductor class,' reflecting a shift from individual conductor evaluation to a designated class system.
