On March 2, 2026, U.S. Senators Dave McCormick (R‑PA) and Peter Welch (D‑VT) introduced the Reconductoring Existing Wires for Infrastructure Reliability and Expansion (REWIRE) Act of 2026, a bipartisan bill that would modify federal permitting rules and address upgrades to the existing U.S. electric transmission system. The legislation proposes, among other things, to create a National Environmental Policy Act (NEPA) categorical exclusion for certain grid capacity projects in existing rights-of-way, direct FERC to revise its rules on return on equity for advanced transmission conductors, authorize additional uses of the Department of Energy (DOE) State Energy Program funds, and establish new DOE programs for grid modeling and technical assistance.
Legislation
Senate Proposes Bill to Exempt Isolated Large Loads from Federal Regulation
On January 7, 2026, Senator Tom Cotton (R-AR) introduced the Decentralized Access to Technology Alternatives Act (DATA Act) (S.3585), that if adopted, would exempt isolated large loads from regulation under the Federal Power Act (FPA) and the implementing regulations of FERC and the Department of Energy (DOE). Specifically, the DATA ACT would amend the FPA to create the consumer-regulated electric utilities (CREU) category and then broadly remove qualifying CREUs from federal energy regulation.
Senate Introduces Bipartisan Legislation to Give FERC Retroactive Refund Authority Under Section 5 of the Natural Gas Act
On April 18, 2024, Senators Richard Blumenthal (D-CT) and Cindy Hyde-Smith (R-MS) introduced the Making Pipelines Accountable to Consumers and Taxpayers Act (“MPACT Act”) (S. 4171) that, if adopted, would grant FERC authority to order refunds under section 5 of the Natural Gas Act (“NGA”). Specifically, the MPACT Act amends section 5 of the NGA to give FERC authority to order a pipeline to issue retroactive refunds for charges FERC determines are unjust and unreasonable. The MPACT is intended to align FERC’s authority over the gas and electric industries and protect customers from unjust and unreasonable rates. At this time, a companion bill has not been introduced in the House of Representatives.
Troutman Pepper Releases White Paper on Transmission Upgrades
On November 27, 2023, Troutman Pepper’s award-winning Energy Group published a white paper titled, Unlocking U.S. Transmission Upgrades – Are We On the Cusp of Real Progress? The white paper offers perspectives from a range of transmission experts and examines the latest regulatory and legal changes that could lead to much-needed upgrades to the U.S. transmission grid. Specifically, the report discusses why transmission grid upgrades are needed, identifies four main obstacles to upgrading the transmission system, provides solutions and benefits to overcoming these obstacles, and concludes with reasons for optimism for the future of the U.S. transmission system.
House Subcommittee Holds FERC Oversight Hearing on Improving Reliability Through Energy Expansion, Interregional Transmission, and Backing Renewables with Fossil Fuels
On June 13, 2023, the House of Representatives Subcommittee on Energy, Climate, and Grid Security held a hearing on the “Oversight of FERC: Adhering to a Mission of Affordable and Reliable Energy for America.” The hearing focused on reliability and the transition from fossil fuel generation to renewable resources.
FERC Issues Proposed Rule Implementing FPA Amendments in Infrastructure Investment and Jobs Act
On December 15, 2022, FERC issued a Notice of Proposed Rulemaking (“NOPR”) seeking to revise its regulations governing applications for permits to site electric transmission facilities under § 216 of the Federal Power Act (“FPA”). Specifically, the NOPR seeks to: (1) revise Section 50.6 of FERC’s regulations to reflect the Infrastructure Investment and Jobs Act’s (“IIJA”) amendments to the FPA § 216; (2) eliminate the required one-year delay before the commencement of FERC’s pre-filing process; (3) supplement the existing landowner and stakeholder participation provisions in Part 50 of its regulations; and (4) revise the timing of the required Project Participation Plan (“Plan”) in the pre-filing application process.
5th Circuit Holds that Texas Law Permitting Blocking of Competitive Transmission Owners from Building New Lines Violates the Commerce Clause
On August 30, 2022, the U.S. Court of Appeals for the Fifth Circuit issued an order in NextEra Energy Capital Holdings, Inc. v. Lake, a case raising dormant Commerce Clause challenges to a 2019 Texas law that bans new entrants from building transmission lines that are part of a multistate electricity grid. The majority reversed the lower court’s Rule 12(b)(6) dismissal of NextEra’s petition, thereby allowing the case to proceed to trial in district court.
Infrastructure Bill Provides Opportunities for Hydroelectric Industry
On November 5th, the U.S. House of Representatives passed the more than $1.2 trillion Infrastructure Investment and Jobs Act, also known as the bipartisan infrastructure framework (BIF). The Senate had already approved the bill back in August, and it now heads to the President’s desk for signature. The BIF represents a core piece of President Biden’s agenda and provides significant funding for infrastructure improvements in energy and water, including over $900M in waterpower incentives for new and existing hydropower, pumped storage, and marine energy. Additional spending is provided for dam safety and removal.
Senators Murkowski and Cantwell Introduce Bipartisan Hydropower Legislation
In June 2021, Senators Lisa Murkowski (R-AK) and Maria Cantwell (D-WA) introduced The Maintaining and Enhancing Hydroelectric and River Restoration Act of 2021, which would establish a tax credit for certain investments in dam safety and environmental improvements at qualified dams and separate tax credit to incentivize the removal of obsolete river obstructions, including nonpowered dams.
Significant Hydro-Related Federal Legislation Pending
On February 6, U.S. Rep. Mike Simpson (R-Idaho) introduced a proposal that would attempt to restore northwest salmon populations by breaching four dams managed by the Bonneville Power Administration (BPA) on the Lower Snake River in Idaho.