The U.S. Energy Department is poised to leverage never-before-used backstop siting authority to speed the construction of high-voltage electric transmission infrastructure, a senior adviser to U.S. President Joe Biden said March 6.
"I think developers want certainty," John Podesta, senior adviser for clean energy innovation and implementation, said during a roundtable discussion with reporters at CERAWeek by S&P Global.
Podesta noted in earlier remarks that the DOE has yet to make any national-interest designations for transmission projects under Section 216(h) of the Federal Power Act. That section of the statute was revised in 2021 to clarify that the Federal Energy Regulatory Commission has backstop siting authority for transmission projects located in national interest corridors designated by the DOE if state utility regulators deny construction permits.
The DOE is reworking its corridor process to establish a more applicant-driven approach that would allow grid project sponsors to seek individual designations.
"I heard some expression of interest from transmission developers this morning," Podesta told reporters at the beginning of the weeklong energy conference. "They're looking for speed, they're looking for political accountability in the process, so I think they welcome the fact and the idea that the authority that's in 216(h) will be utilized but done in conjunction with the support and commitment of the other affected agencies."
In December 2022, FERC issued a proposed update (RM22-7) to its backstop transmission siting rules that would create a prefiling process for transmission developers similar to the agency's approach for natural gas projects and hydroelectric facilities. Commissioner Mark Christie, a potential swing vote at the agency, supported the proposal but also predicted that it could open new lines of attack for project opponents.
"The most important thing, at least from our perspective, is that if we begin consultations earlier, we can hear from affected communities, resolve issues where they're resolvable, and that is likely to keep things out of court and moving more rapidly than the current structure," Podesta said.
The stakes are high. A Princeton University analysis estimated that approximately 80% of the energy and climate benefits tied to the Inflation Reduction Act will fail to materialize if the U.S. does not more than double its historical rate of transmission expansion.
Podesta also noted March 6 that the White House and U.S. Energy Secretary Jennifer Granholm are tracking more than 20 "priority" electric transmission projects.
Among those is the Southern Spirit transmission project. The 400-mile, 2,000-MW, high-voltage direct-current line would allow Texas to share renewable energy with Louisiana and Mississippi. The line's developer, Pattern Energy Group Inc., is aiming to start construction in 2025 and place the line into service in 2028.
"I think when there's not clear attention paid at the senior political level, things can drift, and when there is, they tend not to drift," Podesta told reporters.
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