GridWise Statement on the Senate Bipartisan American Affordability and Jobs Act

The GridWise Alliance supports bringing the Bipartisan American Affordability and Jobs Act (S. 5653, BAAJA) to the Senate floor. It is the most serious bipartisan attempt in years to fix the permitting, siting, and cost allocation barriers that slow the growth of the transmission grid this country needs to meet its energy challenges.

We commend Senators Capito, Lee, Whitehouse, and Heinrich for reaching this agreement. We have joined manufacturers and energy organizations in urging floor action because electricity demand is growing faster than it has in decades, while major transmission lines can take a decade or more to permit and build. That gap drives up costs for customers, strains reliability, and slows economic growth.

Moving the bill forward to a Senate vote and getting the legislative language right are not competing goals. Our members, including utilities, grid operators, technology providers, developers and other grid stakeholders, share the goal of a faster and more affordable grid buildout. They do not all view the bill’s transmission provisions the same way. GridWise will work with the sponsors to refine those provisions as the bill moves through the Senate and House.

What the bill gets right

The bill tackles the barriers that matter most for building a modern, integrated grid:

• Permitting certainty. Clear review deadlines and durable permits give project owners and investors the predictability they need to commit capital.
• Proactive transmission planning. Regular regional and interregional planning, with costs allocated to the customers who benefit, replaces the piecemeal approach that has stalled large projects. The bill should allow for cost reconciliation and avoid fixed zonal per-MW costs to allow regional flexibility and avoid stranded costs.
• Interconnection reform. Faster, more orderly interconnection will shorten queues that now delay new resources for years.
• Advanced transmission technologies. Advanced conductors, grid-enhancing technologies, and other modern equipment can add capacity to the existing system faster and at lower cost than new lines alone.
• Large-load cost responsibility. Data centers and other large new loads should pay the costs they create, backed by financial assurances, so residential and small business customers are protected.
• Distributed energy permitting. Provisions that support streamlined local permitting of rooftop solar, batteries and EV charging helps customers and communities put grid-edge resources to work.

 

Where the bill needs refinement

Several transmission provisions raise legitimate questions that the sponsors should address before final passage.

• Competition and the right of first refusal (ROFR). Our members hold differing views on the federal ROFR ban but all believe that whoever builds a line should be held to clear standards for reliability, cost containment, and timely completion. The bill should clarify that state laws would not be preempted or impaired.
• Federal backstop siting and the role of states. Federal authority should remain a true backstop. States are essential partners in siting, and the triggers for federal action should be clear and predictable, with early coordination so that projects are not decided by default.
• Advanced transmission technology requirements. We strongly support broader deployment of grid-enhancing technologies, advanced conductors, and other innovative technologies where they provide demonstrable benefits to customers and the grid. Prudent investment and customer value should guide project selection and implementation. Requirements should provide utilities with workable benefit-cost methodologies, reasonable cost recovery, and appropriate flexibility. Penalties should not apply when compliance is affected by documented supply-chain constraints or equipment lead times beyond a utility’s control.
• Large-load pricing. We support the principle that large loads pay their own way. Said another way: growth pays for growth. FERC’s rules should be clear and administrable, fit with state tools, and recognize the reliability challenges large loads pose for grid operators.

 

Permits alone will not solve our grid challenges

Faster permits will run straight into the equipment bottleneck. Lead times for transformers, switchgear, conductors, and other grid equipment already stretch for years, and prices are rising as demand outpaces supply. Unless supply chain constraints are tackled alongside permitting reform, approved projects will wait for grid equipment instead of paperwork.

As Congress acts on BAAJA, it should also consider measures that expand domestic manufacturing capacity, encourage equipment standardization, and give manufacturers the long-term demand visibility they need to invest. Furthermore, this bill will require significant federal regulatory action; federal agencies, especially FERC, will also need additional funding through the appropriations process for the staff and resources to carry out the many rulemakings the bill requires on tight timelines.

Our path forward

GridWise urges the Senate to take up S. 5653 and to use the amendment process to strengthen it. We will continue to convene our members across the electricity value chain and bring their consolidated input to the sponsors and to House leaders.

Our goal is an electric grid that is reliable, affordable, secure, and built for the demands ahead. This bill can move the country much closer to that goal, and we are committed to helping it succeed.