CRS Report on The Bipartisan American Affordability and Jobs Act of 2026 and the Federal Energy Regulatory Commissions Backstop Siting Authority

The Government Accountability Office examined the Bipartisan American Affordability and Jobs Act of 2026 and the Federal Energy Regulatory Commission’s Backstop Siting Authority. The analysis compared current law with how Section 2101 of the Act would change FERC’s authority to issue construction permits for electricity transmission lines. This review addressed changes to geographic coverage and facility criteria under both current law and the proposed legislation.

FERC Siting Authority Changes

The Bipartisan American Affordability and Jobs Act of 2026 would change how the Federal Energy Regulatory Commission issues construction permits for electricity transmission lines. Currently, FERC’s backstop siting authority applies only in areas designated as National Interest Electric Transmission Corridors by the Department of Energy. Under the proposed law, this authority would apply to most areas where new or modified transmission facilities were being developed. The area served by the ERCOT grid operator in Texas would remain exempt from this authority. The Act would also repeal the Department of Energy’s authority to designate National Interest Electric Transmission Corridors.

Transmission Facility Rules

Under BAAJA, facilities must transmit electricity in interstate or foreign commerce. They must also be consistent with the public interest and protect or benefit consumers. Facilities must provide improved reliability and facilitate just and reasonable rates. Facilities must be rated at not less than 230 kilovolts or meet specific voltage requirements for advanced conductors. FERC could maximize existing infrastructure if it is reasonable and economical. A state siting authority must withhold a decision or deny an application before FERC reviews a construction permit application. FERC must provide an opportunity for stakeholders to present views on proposed facilities. BAAJA directed FERC to consider input from affected landowners when authorizing transmission facility construction or modification.

FERC Permitting Rules Change

Applicants for a transmission facility construction permit must pre-file certain information with FERC before submitting an application. FERC policy, affirmed in Order No. 1977, aimed to prevent overlapping state and federal permitting activities. Currently, developers could not pre-file with FERC at the same time they submitted a state application. The BAAJA would change this rule. Under BAAJA, pre-filing at FERC could start before submitting a state application. The timeline for pre-filing would not change state consideration criteria. Current law does not specify how costs of FERC-permitted facilities should be recovered. Under BAAJA, owners of eligible transmission facilities would need to file a request with FERC to allocate costs to customers.

The report, The Bipartisan American Affordability and Jobs Act of 2026 and the Federal Energy Regulatory Commission’s Backstop Siting Authority (IN12746), by Ashley J. Lawson, is dated November 9, 2026. Read it on Congress.gov.