Competitive Transmission and Permitting Reform Act
| Model Bill Info | |
|---|---|
| Bill Title | Competitive Transmission and Permitting Reform Act |
| Date Introduced | July 18, 2025 |
| Type | Model Policy |
| Status | Draft |
| Task Forces | Energy, Environment and Agriculture |
| Keywords | Energy |
Competitive Transmission and Permitting Reform Act
Section 1. Short Title
This Act shall be known as the Competitive Transmission and Permitting Reform Act.
Section 2. Findings and Purpose
The Legislature finds that:
Competition in electric transmission development lowers costs for ratepayers and improves project delivery. Right-of-first-refusal (ROFR) provisions hinder competition and increase electricity prices. New technologies—such as advanced conductors and grid-enhancing technologies (GETs) or advanced transmission technologies (ATTs)—can maximize existing infrastructure and defer more expensive projects. Regulatory delays, particularly in duplicative state permitting processes, prevent the timely deployment of cost-effective transmission solutions. Therefore, it is the purpose of this Act to: Prohibit ROFR provisions for new transmission development; Require open, competitive solicitation for transmission projects; Encourage the use of advanced technologies to improve grid capacity and efficiency; Streamline state permitting for cost-saving grid upgrades.
Section 3. Eliminating Right-of-First-Refusal
(a) No incumbent electric utility shall be granted a right-of-first-refusal to construct, own, or operate new electric transmission facilities approved by a regional transmission organization (RTO), independent system operator (ISO), or the state’s utility commission after the effective date of this Act.
(b) All such facilities shall be subject to a competitive solicitation and selection process, conducted in accordance with rules issued by the Public Utility Commission or relevant authority.
(c) Any existing provisions in statute, regulation, or franchise agreements that confer a ROFR inconsistent with this section are hereby void and unenforceable with respect to transmission projects approved after the effective date of this Act.
(d) In areas of the state not served by an RTO or ISO, the Public Utility Commission shall establish and administer a transparent and non-discriminatory competitive solicitation process for the selection of transmission developers for new transmission facilities. This process shall ensure fair evaluation of proposals based on cost, technical capability, and timely completion, and shall not give preference to incumbent utilities.
Section 4. Advanced and Grid-enhancing Transmission Technologies
(a) As used in this section: “Advanced transmission technology” means a technology that increases the capacity, efficiency, or reliability of electric transmission infrastructure.
(b) “Advanced transmission technology” includes:
(i) technology that dynamically adjusts the rated capacity of transmission lines based on real-time conditions; (ii) advanced power flow controls used to actively control the flow of electricity across transmission lines to optimize usage and relieve congestion; (iii) software and hardware used to identify optimal transmission grid configurations and enable routing power flows around congestion points; (iv) advanced transmission line conductors that increase the power transfer capacity of transmission lines; and (v) energy storage technologies that facilitate energy storage during times of excess generation and discharge of stored energy during times of high demand to support transmission system operation.
(c) The Public Utility Commission shall ensure that any long-term transmission planning or project evaluation process includes consideration of grid-enhancing technologies and advanced transmission technologies.
(d) The Commission may require utilities or transmission developers to submit a justification for not including such technologies in proposals, if applicable.
Section 5. Streamlined Permitting for Transmission Upgrades
(a) Notwithstanding any other provision of law, any project primarily consisting of GETs or ATTs shall be exempt from review under the [State Environmental Quality Act], provided that the project:
Occurs within existing transmission rights-of-way; and Involves no new permanent ground disturbance outside previously disturbed areas.
(b) The Department of Environmental Quality and the Public Utility Commission shall issue joint guidance to ensure consistent application of this exemption within 180 days of enactment.
(c) The Public Utility Commission shall identify further opportunities to expedite permitting and approval of non-invasive transmission upgrades that improve grid performance.
Section 6. Effective Date
This Act shall take effect [insert date], and shall apply to all transmission projects approved on or after that date.