Connect the Grid Act

Bill Number

H.R. 7728

Origin Chamber

House

Congress

119th Congress, Session 2

Policy Area

Energy

Status

Introduced

Latest Action

2026-02-26: Referred to the House Committee on Energy and Commerce.

Last Updated

2026-04-14T08:05:22Z

AI-Generated Summary

Purpose of the Legislation

The "Connect the Grid Act" (H.R. 7728) aims to integrate Texas's isolated electric grid, managed by the Electric Reliability Council of Texas (ERCOT), with neighboring regional grids. This would enhance overall electric reliability, support renewable energy expansion, and address vulnerabilities exposed by events like the 2021 Texas winter storm, while promoting environmental and community protections.

Key Provisions

• Jurisdictional Changes for ERCOT: Removes ERCOT's exemptions from Federal Energy Regulatory Commission (FERC) oversight under the Federal Power Act, subjecting it to federal rules on interstate electricity transmission and sales. FERC must hold a technical conference within 6 months of enactment to guide affected entities on compliance.
• Electric Reliability Standards:
• Amends the Federal Power Act to require the Electric Reliability Organization (a FERC-certified group that sets grid standards) to propose a new reliability standard within 30 days of enactment. This standard mandates minimum electricity transfer capacities (the amount of power that can flow between grids) between ERCOT and neighboring regions: 4.3–12.6 gigawatts (GW) with Southwest Power Pool (SPP), 2.5–16.2 GW with Midcontinent Independent System Operator (MISO), and 2.6–7.9 GW with the Western Interconnection (a grid spanning the western U.S. and parts of Canada and Mexico).
• Requires joint plans from ERCOT and neighbors, due within 1 year, to build or upgrade transmission lines (high-voltage lines carrying electricity over long distances) by January 1, 2037. Plans must prioritize:
• Grid-enhancing technologies (tools that boost existing lines' capacity without full rebuilds).
• Using existing rights-of-way (like highways or railroads) and degraded lands (e.g., contaminated sites, brownfields, or abandoned mines).
• Expanding access to renewables like wind, solar, and geothermal.
• Community involvement, especially for environmental justice communities (areas with higher pollution risks, often low-income or communities of color), Tribal and Indigenous groups, and labor unions.
• Union apprenticeships and prevailing wages (fair pay standards set by the U.S. Department of Labor).
• Projects must undergo environmental reviews under the National Environmental Policy Act (which assesses environmental impacts) and the Endangered Species Act (which protects wildlife).
• National Interest Designation: The Secretary of Energy must consider labeling affected areas as "national interest electric transmission corridors" to speed up federal permitting for transmission projects.
• Funding Increase: Raises the borrowing limit for the Transmission Facilitation Program (a federal loan program for grid upgrades) from $2.5 billion to $13.5 billion.
• Mexico Interconnection Study: The Secretary of Energy must complete a study within 1 year on the reliability, climate, and cost benefits of linking U.S. grids with Mexico's, including recommendations for cross-border projects.
• Definitions: Provides clear terms for key concepts, such as "brownfield site" (contaminated land suitable for reuse) and "total transfer capability" (maximum power flow between grids).

Significant Changes to Existing Law

• End of ERCOT Isolation: Strikes multiple exemptions in the Federal Power Act (e.g., sections 201, 212, 216, 217, 220) that previously kept ERCOT outside FERC's full jurisdiction, treating it like a standalone "island" grid rather than part of the national interstate system.
• Narrowed Reliability Rules: Modifies section 215 of the Federal Power Act to emphasize new generation capacity (power plants) over transmission expansions in certain enforcement contexts.
• New Mandatory Standards: Introduces the first federal requirement for specific inter-grid transfer capacities, shifting from voluntary to enforced interconnections.
• Expanded Funding: More than quadruples borrowing authority under the 2021 Infrastructure Investment and Jobs Act, enabling larger-scale federal support for transmission projects.

Potential Impacts

• On Government Agencies: FERC gains direct authority over ERCOT operations, increasing federal oversight and coordination with regional bodies like SPP and MISO. The Department of Energy will handle studies, designations, and funding, potentially straining resources but improving national grid resilience.
• On Citizens: Texas residents could see fewer outages and more stable electricity prices due to shared resources during peaks (e.g., heatwaves or storms). Neighboring states (e.g., Oklahoma via SPP, Midwest via MISO) may gain access to Texas's renewable energy, lowering costs and emissions. Environmental justice and Tribal communities benefit from required outreach and protections, though construction could disrupt local areas.
• On International Relations: The Mexico study could foster U.S.-Mexico energy cooperation, enhancing cross-border reliability and trade, but it may require diplomatic negotiations on infrastructure and regulations.
• Broader Effects: Promotes cleaner energy by prioritizing renewables, potentially reducing fossil fuel reliance and aiding climate goals, while creating jobs in transmission construction.

Main Stakeholders Affected

• Utilities and Grid Operators: ERCOT, SPP, MISO, and Western Interconnection entities must adapt to new federal rules, build infrastructure, and collaborate on plans.
• Texas Residents and Businesses: Primary beneficiaries of improved reliability, but face potential rate changes from interconnection costs.
• Neighboring Regions: States in the Midwest, Southwest, and West (e.g., Oklahoma, Louisiana, New Mexico) gain grid ties, affecting their energy markets.
• Communities and Workers: Environmental justice groups, Tribes, and Indigenous communities receive consultation rights; labor unions and apprentices benefit from job mandates.
• Federal and State Governments: FERC, Department of Energy, and Texas regulators must enforce and implement changes, possibly leading to tensions over state autonomy.

Notable Legal, Constitutional, or Political Implications

• Legal: Integrates ERCOT into the interstate commerce framework of the Federal Power Act, enabling FERC enforcement but requiring compliance with environmental laws, which could lead to lawsuits over permitting delays or land use.
• Constitutional: Relies on Congress's power under the Commerce Clause to regulate interstate electricity, potentially overriding Texas's historical preference for a state-regulated grid; this may invite challenges on federalism (balance between federal and state powers).
• Political: Shifts Texas's energy isolation toward national integration, aligning with broader U.S. goals for grid modernization and clean energy, but could spark debates on federal overreach in a politically divided state. The bill's focus on equity and renewables reflects priorities of its Democratic sponsors.

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

Sponsor

Rep. Casar, Greg [D-TX-35]

Cosponsors (15)

Rep. Ocasio-Cortez, Alexandria [D-NY-14], Rep. Escobar, Veronica [D-TX-16], Rep. Garcia, Sylvia R. [D-TX-29], Rep. Green, Al [D-TX-9], Rep. Doggett, Lloyd [D-TX-37], Rep. Crockett, Jasmine [D-TX-30], Rep. Castro, Joaquin [D-TX-20], Rep. Espaillat, Adriano [D-NY-13], Rep. Garcia, Robert [D-CA-42], Rep. Frost, Maxwell [D-FL-10], Rep. Tlaib, Rashida [D-MI-12], Rep. Jayapal, Pramila [D-WA-7], Rep. Ramirez, Delia C. [D-IL-3], Rep. Omar, Ilhan [D-MN-5], Rep. Huffman, Jared [D-CA-2]

Recent Actions

• 2026-02-26: Referred to the House Committee on Energy and Commerce.
• 2026-02-26: Introduced in House
• 2026-02-26: Introduced in House

Bill Versions

• Connect the Grid Act — issued 2026-02-26 — PDF (11 pages)