SPEED and Reliability Act of 2025

Bill Number

H.R. 5600

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Energy

Status

Introduced

Latest Action

2025-09-26: Referred to the House Committee on Energy and Commerce.

Last Updated

2026-06-16T14:55:08Z

AI-Generated Summary

Purpose of the Legislation

The SPEED and Reliability Act of 2025 aims to update the Federal Power Act to make it easier and faster for the Federal Energy Regulatory Commission (FERC, the agency that oversees interstate energy transmission) to approve the building or upgrading of electric transmission lines (powerlines) that are important for national needs, such as improving energy reliability and reducing grid congestion.

Key Provisions

• Definitions: Introduces clear terms, including "improved reliability" (measurable benefits like fewer power outages or better compliance with energy standards), "landowner input" (feedback from affected property owners, such as farmers and ranchers, gathered through notifications and consultations by FERC), and references to FERC, the Electric Reliability Organization (ERO, a group that sets reliability standards), and the Secretary of Energy.

• Permitting Process: FERC must issue permits for new or modified transmission facilities after a public comment period of at least 60 days and a hearing, if the project meets criteria like:
• Being used for interstate or foreign electricity transmission (including from offshore areas).
• Serving the public interest.
• Reducing grid congestion, benefiting consumers, and enhancing reliability.
• Aligning with national energy policy and promoting energy independence.
• Operating at high voltages (at least 100 kilovolts, or as determined for advanced technologies).
• Maximizing use of existing structures where practical and cost-effective.

• State and Local Involvement: Preserves states' primary authority to approve siting (location) of facilities within their borders. FERC can only step in under specific conditions. It requires FERC to consult with states, federal agencies, Indian Tribes, property owners, and others on the project's need and impacts, and to consider landowner feedback.

• Rights-of-Way: Procedures for acquiring land use rights must follow standard federal court rules (Rule 71.1 of the Federal Rules of Civil Procedure, which governs actions to enforce public rights on private land).

• Cost Allocation: Transmission companies must file rate plans (tariffs) with FERC to recover costs, but only from customers who benefit (e.g., through better reliability, less congestion, or lower power costs). Customers who see no real benefit cannot be forced to pay, though voluntary agreements are allowed. This applies to both onshore and offshore facilities.

• Federal Coordination: Streamlines approvals from multiple federal agencies by designating a lead agency—FERC for most projects, or the Department of the Interior for offshore oil/gas lease areas. Sets timelines for agency actions (e.g., 18 months for certain reports).

• Interstate Agreements: Simplifies FERC's role in resolving disputes over multi-state projects, removing some references to specific "national interest corridors."

• Investment Incentives: Allows recovery of costs for payments to local areas affected by transmission projects.

• Jurisdiction Limits: Applies to most U.S. transmission utilities but excludes the ERCOT grid in Texas (a mostly independent regional system). Clarifies that this does not expand FERC's control over local retail sales or distribution.

• Other Rules: No new regulations required from agencies unless specified. Does not affect local electricity sales or distribution.

Significant Changes to Existing Law

• Streamlined Approvals: Replaces the original Section 216 of the Federal Power Act with a more direct process for FERC to issue permits, removing some prior conditions (e.g., specific timelines tied to state actions) and expanding criteria to include modifications like upgrading wires on existing towers.

• Cost and Benefit Focus: Shifts cost allocation to strictly follow a "cost-causation principle" (costs assigned based on who benefits), adding protections for non-benefiting customers and including new benefit types like reduced operating reserves.

• Federal Leadership: Updates lead agency roles for multi-agency reviews and extends some deadlines (e.g., from 1 year to 18 months for reports). Removes requirements tied to outdated "national interest corridors."

• Conforming Updates: Amends related laws (e.g., from the Inflation Reduction Act and Energy Policy Act) to eliminate references to old permitting triggers, broadening eligibility for incentives and funding.

Potential Impacts

• Government Agencies: FERC gains clearer authority to expedite national-interest projects, potentially reducing delays in federal reviews. The Department of Energy and Interior may see shifted coordination roles, with less overall regulatory burden. States retain siting power but could face more federal overrides in disputes.

• Citizens: Could lead to faster grid upgrades, improving power reliability, reducing outages, and possibly lowering energy costs through less congestion and better access to cheaper power sources. However, it may increase local disruptions for landowners and communities near projects, with required input to mitigate concerns.

• International Relations: Supports transmission from offshore or foreign sources, potentially aiding U.S. energy imports/exports and cooperation on cross-border grids, but no direct foreign policy changes.

Main Stakeholders Affected

• Transmission Utilities and Developers: Benefit from faster permitting and cost recovery, encouraging investment in high-voltage lines and upgrades.
• Consumers and Ratepayers: Gain from improved reliability and potential cost savings, but protected from unfair rate hikes.
• Landowners and Local Communities: Farmers, ranchers, and property owners in project paths must be consulted; they may receive compensation but face land use changes.
• States and Indian Tribes: Retain input on siting and impacts, with opportunities to influence federal decisions.
• Federal Agencies: FERC, Department of Energy, and Department of the Interior handle more coordinated reviews.
• Environmental and Interest Groups: Indirectly affected through public comment periods and reliability-focused criteria.

Notable Legal, Constitutional, or Political Implications

• Legal: Strengthens federal oversight of interstate transmission under the Commerce Clause (U.S. Constitution's power over interstate trade) while explicitly preserving state siting rights, reducing potential lawsuits over federal overreach. Emphasizes procedural fairness (e.g., hearings, consultations) to comply with administrative law.

• Constitutional: Balances federal authority with state sovereignty (10th Amendment), avoiding preemption of local land use unless national interests justify intervention. Includes safeguards for property rights via landowner input and court-aligned procedures.

• Political: Promotes energy security and infrastructure modernization amid growing demand (e.g., from electrification), potentially bipartisan appeal for reliability. Could spark debates on federal vs. state power and environmental reviews, though it minimizes new rules to ease implementation.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Peters, Scott H. [D-CA-50]

Cosponsors (5)

Rep. Barr, Andy [R-KY-6], Rep. Vindman, Eugene Simon [D-VA-7], Rep. Fitzpatrick, Brian K. [R-PA-1], Rep. Johnson, Dusty [R-SD-At Large], Rep. McDonald Rivet, Kristen [D-MI-8]

Recent Actions

• 2025-09-26: Referred to the House Committee on Energy and Commerce.
• 2025-09-26: Introduced in House
• 2025-09-26: Introduced in House

Bill Versions

• Streamlining Powerlines Essential to Electric Demand and Reliability Act of 2025 — issued 2025-09-26 — PDF (13 pages)