Senate bill would expand federal transmission siting authority and shift data-center costs

The proposed bill would replace the transmission-corridor framework with expanded project-specific FERC permitting authority and require consolidated interconnection and regional planning. It would also remove incumbent utilities’ federal right of first refusal for new regional lines and assign data-center transmission costs to owners and operators.

For utilities and transmission developers, the proposal could change permitting routes, access to regional projects and planning obligations. For data-center owners and other customers, its cost-allocation provisions would determine who pays for transmission serving large loads and what charges apply when those loads exit.

The Bipartisan American Affordability and Jobs Act proposes changes to energy permitting, transmission development and large-load cost allocation. It would eliminate National Interest Electric Transmission Corridors while expanding FERC’s project-specific permitting authority, and remove incumbent utilities’ federal right of first refusal for new regional lines. It would also require consolidated interconnection and regional transmission planning. For data centers, transmission costs would fall on owners and operators; loads of at least 20 MW would face exit charges and restrictions on shifting incremental costs to other customers. Separately, the bill would generally protect existing federal energy permits and give applicants legal recourse over certain denials and delays. These are proposed changes, not enacted rules. Negotiations have resumed, but disputes over the Trump administration’s renewable-energy restrictions remain unresolved, with amendments expected in November and possible Senate passage after the elections.

Evidence supplied by Utility Dive.