S. 3947 — REWIRE Act

This section defines 18 terms for purposes of the Act, including “advanced transmission conductor” (i.e., a conductor with at least 10% lower electrical resistance, 70% greater energy carrying capacity, and 50% lower thermal expansion than a traditional ACSR conductor of similar diameter and weight); “ASCR conductor” (i.e., aluminum conductor steel-reinforced cable); “effective load carrying capability” or “ELCC”; “grid-enhancing technology”; “loss of load expectation” or “LOLE” (typically 0.1 days per year); and “planning reserve margin” (typically 15% to 25%).

This section establishes a categorical exclusion from National Environmental Policy Act (NEPA) requirements for activities to increase electric grid capacity within existing rights-of-way or on previously disturbed or developed land (as defined in 10 C.F.R. § 1021.102(g)(1)). Such activities include repair, maintenance, replacement, upgrade, modification, optimization, or minor relocation of, addition to, or addition of energy storage at or near an existing electric transmission or distribution facility or associated infrastructure (e.g., electrical substations), including reconductoring and installation of grid-enhancing technologies.

This section amends FERC's requirements under Section 219 of the Federal Power Act for incentive-based (including performance-based) rate treatments for electric transmission facilities—intended to promote reliability, reduce congestion, and encourage infrastructure investment—by (1) removing the original rulemaking deadline of not later than 1 year after August 8, 2005; (2) making conforming and stylistic changes to subsections (b) through (d); and (3) adding a new subsection (e) that requires FERC, not later than 1 year after the date of enactment of the REWIRE Act, to promulgate new or revise existing rules to improve the return on equity for investments in advanced transmission conductors (as defined in section 2 of that Act), subject to just and reasonable rate standards.

This section expands a mandatory feature of state energy conservation plans—required for eligibility for federal funding under the State Energy Program (SEP)—to include, for electrical transmission and distribution, reconductoring with advanced transmission conductors (as defined in section 2 of the REWIRE Act) and the installation of grid-enhancing technologies (as defined in that section). (Thus, SEP grantees must incorporate these grid modernization measures.)

This section establishes a program, to be carried out by the Secretary of Energy through one or more National Laboratories in consultation with the Federal Energy Regulatory Commission (FERC) and the Electric Reliability Organization (NERC), to model and evaluate electric grid performance. The program requires development of one or more probabilistic models for transmission planning, resource adequacy modeling, and integrated resource planning that (1) reflect the specific needs, resources, and attributes of a given power grid region or service area; (2) ensure consistent methods based on best practices; and (3) consider uncertainties relating to transmission systems and infrastructure, weather impacts (such as temperature on transmission facilities and line ratings), congestion and thermal overload, costs of new or modified transmission infrastructure (including reconductoring with advanced transmission conductors and grid-enhancing technologies), and other region-specific factors as determined by the Secretary in consultation with FERC. (Thus, the models must simulate and quantify metrics—including loss of load expectation, expected unserved energy, effective load carrying capability (capacity value), planning reserve margin, transmission losses, congestion, and cost—to assist transmission planning and optimal resource portfolios; identify high-impact parameters for optimization; and pinpoint opportunities for advanced transmission technologies.) The section further directs establishment of regional collaboratives between National Laboratories and institutions of higher education, prioritizing those (A) between regional federal National Laboratories and institutions of higher education; (B) with demonstration capabilities such as field-scale systems of not less than 100 kilovolt-amperes or laboratory capabilities of not less than 10 kilovolt-amperes; (C) demonstrating rural grid planning models (including transmission and distribution co-simulation and digital twin capabilities); or (D) utilizing existing statewide data-sharing and joint modeling programs with utilities.

This section directs the Secretary of Energy to establish, not later than one year after enactment, an application guide for eligible entities—including developers of electric transmission facilities, electric utilities, states, regional transmission organizations, independent system operators, and other relevant entities—seeking to implement advanced transmission conductors (including through reconductoring) and grid-enhancing technologies, with annual reviews and updates to the guide. The section further requires the Secretary to provide technical assistance to such entities upon request using the guide and to establish a clearinghouse of previously completed projects to identify issues and solutions relating to those technologies.