Federal authority in electricity transmission siting

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This article focuses on the federal government's authority in electricity transmission siting. Energy siting is the process of planning, permitting, and constructing energy facilities. These facilities include transmission lines, pipelines, power plants, and solar and wind facilities.^[1]

In general, states have primary jurisdiction over the siting of energy facilities, including electric transmission facilities, though the federal government has jurisdiction in certain circumstances. Under the Energy Policy Act of 2005, the Federal Energy Regulatory Commission (FERC) is allowed to review and permit the construction and operation of electric transmission facilities in areas determined by the U.S. Department of Energy to be susceptible to brownouts (a controlled reduction or loss of electricity) or blackouts (a complete power loss). According to the Congressional Research Service, the commission's authority is a safeguard in the event that states do not have the authority to permit a transmission project, an applicant does not qualify for a state permit, or a state has withheld approval of a transmission project for one year or more. In addition, FERC can permit electric transmission facilities only if approving a facility would “significantly reduce transmission congestion in interstate commerce and protects or benefits consumers.”^[2]

Background

Electric transmission lines link power-generating facilities to distribution systems that deliver electricity to customers. Beginning in the 20th century, state-authorized and state-regulated electric utilities were primarily responsible for constructing and operating transmission lines, power generation stations, and distribution systems.^[1][3]

Leading up to the 1920s, more transmission lines expanded to cross state lines. In response, Congress passed in 1920 and amended in 1935 the Federal Power Act], which established what would become the Federal Energy Regulatory Commission (FERC). Under the act, FERC is permitted to regulate wholesale electricity transactions and the interstate transmission of electricity. In general, states retained jurisdiction over retail electricity transactions and the siting of power generation plants, transmission facilities, and transmission lines within state lines.^[1][3][4]

In 2005, Congress passed the Energy Policy Act, which required the U.S. Department of Energy to study congestion in the U.S. electrical grid. Congestion occurs when there is insufficient electricity to meet customer demand. This can lead to brownouts (a controlled reduction or loss of electricity) or blackouts (a complete power loss). Under the act, the department may designate an area as a National Interest Electric Transmission Corridor if the area experiences electricity transmission congestion that may adversely affect customers. In addition, the 2005 act authorized the Federal Energy Regulatory Commission (FERC) to be the "backstop [electricity] siting authority in designated transmission corridors."^[1]

Under the act, FERC issues energy facility siting permits for facilities found in National Interest Electric Transmission Corridors if one of the following three conditions applies:^[1][5][6][7]

1. A state lacks the authority to issue a permit for a facility
2. An applicant does not qualify for a permit in a state
3. The state has withheld approval of a permit for more than one year

National corridors

In 2007, the U.S. Department of Energy designated the Mid-Atlantic Area and Southwest Area National Interest Electric Transmission Corridors. Maps for the two corridors can be seen below.^[1]

See also

Footnotes

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