(a) In general

Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is amended by adding at the end the following:

224. Large load interconnection

(a) Definitions

In this section:

(1) Bulk-power system

The term bulk-power system has the meaning given the term in section 215(a).

(2) Commission

The term Commission means the Federal Energy Regulatory Commission.

(3) Covered large load

(A) In general

The term covered large load means a new or expanded nonresidential electric load, or a group of such loads under common ownership, control, or affiliation at a single site or at contiguous or adjacent sites sharing electric infrastructure (including phased development), that has an aggregate requested or projected peak electric demand of not less than 150 megawatts behind a single point of interconnection.

(B) Combined configurations

A load or group of loads described in subparagraph (A) shall be a covered large load without regard to whether it is proposed to be interconnected, studied, or served in combination with 1 or more generation or energy storage resources, and peak electric demand shall be measured without reduction for any such resource.

(4) Covered large-load customer

The term covered large-load customer means a person that owns, controls, or operates a covered large load.

(5) Dedicated resource

The term dedicated resource means a new or incremental generation resource, energy storage resource, or enforceable flexibility arrangement, including a resource located behind the meter of, co-located with, or proximate to and electrically deliverable to the applicable covered large load, that is dedicated to the covered large load and subject to 1 or more enforceable, metered commitments.

(6) Direct Assignment Facility

The term Direct Assignment Facility means a facility, or any portion of a facility, that is—

(A)

constructed for the sole use or benefit of a particular covered large-load customer;

(B)

classified as a Direct Assignment Facility under the applicable tariff or service agreement accepted or approved by the Commission, consistent with the definition of the term Direct Assignment Facilities in the pro forma open access transmission tariff established by the Commission under section 35.28 of title 18, Code of Federal Regulations (or a successor regulation), as adapted by the Commission for covered large loads; and

(C)

specified as a Direct Assignment Facility in the applicable tariff or service agreement accepted or approved by the Commission.

(7) Interconnection Facility

The term Interconnection Facility means a facility classified as an Interconnection Facility under the applicable tariff or service agreement accepted or approved by the Commission, consistent with the definition of the term Interconnection Facilities in the standard interconnection procedures and agreements established by the Commission under section 35.28 of title 18, Code of Federal Regulations (or a successor regulation), as adapted by the Commission for covered large loads.

(8) Network upgrade

The term Network Upgrade means an addition, modification, or upgrade to the transmission system of a transmitting utility, at or beyond the point at which the Interconnection Facilities for a covered large load connect to that system, that is required to accommodate the interconnection of, or transmission service to serve, the covered large load, consistent with the definition of the term Network Upgrades in the standard interconnection procedures and agreements established by the Commission under section 35.28 of title 18, Code of Federal Regulations (or a successor regulation), as adapted by the Commission for covered large loads.

(9) Stand Alone Network Upgrade

The term Stand Alone Network Upgrade means a Network Upgrade classified as a Stand Alone Network Upgrade under the applicable tariff or service agreement accepted or approved by the Commission, consistent with the definition of the term Stand Alone Network Upgrades in the standard interconnection procedures and agreements established by the Commission under section 35.28 of title 18, Code of Federal Regulations (or a successor regulation), as adapted by the Commission for covered large loads.

(b) Jurisdiction over large load interconnection

(1) In general

The Commission shall have jurisdiction over the interconnection of any covered large load to 1 or more facilities used for the transmission of electric energy in interstate commerce.

(2) Treatment

The interconnection described in paragraph (1) shall be—

(A)

subject to the requirements of this section and sections 205 and 206; and

(B)

considered to be a component of open access transmission service.

(3) Included matters

The jurisdiction of the Commission under paragraph (1) includes—

(A)

flexible interconnection service, subject to enforceable operating limits;

(B)

provisional or phased interconnection service; and

(C)

the study and interconnection, separately or together, of a covered large load and any associated generation, energy storage, or verifiable load flexibility, including a dedicated resource.

(c) Rulemaking

(1) In general

Not later than 1 year after the date of enactment of this section, the Commission shall issue a final rule, applicable to each transmitting utility, establishing standards and procedures for the interconnection of covered large loads.

(2) Inclusions

The rule under paragraph (1) shall include pro forma provisions and regionally tailored requirements.

(3) Threshold criteria

The rule under paragraph (1) shall establish criteria and procedures for determining whether a load or group of loads is a covered large load.

(d) Required standards and procedures

The rule issued under subsection (c) shall establish standards and procedures governing each of the following:

(1) Study process

Timelines, readiness requirements, and study procedures for interconnection requests for covered large loads that—

(A)

protect other customers from the costs of speculative or duplicative requests;

(B)

(i)

identify reasonable alternatives, including the services and configurations described in subsection (b)(3) and advanced transmission technologies;

(ii)

present the alternatives, with estimated costs and schedules, to the covered large-load customer; and

(iii)

permit the covered large-load customer to elect among the alternatives in accordance with the applicable tariff; and

(C)

provide for the services and configurations described in subsection (b)(3), at the election of the covered large-load customer, where consistent with reliable operation of the bulk-power system.

(2) Classification and allocation of transmission costs

(A) Classification

Criteria and procedures governing the classification of facilities as Interconnection Facilities, Direct Assignment Facilities, Network Upgrades, or Stand Alone Network Upgrades for a covered large load, consistent with the definitions in subsection (a), with each classification supported by the record of the applicable study.

(B) Interconnection and direct assignment facilities

A requirement that—

(i)

each applicable tariff or service agreement identify the Interconnection Facilities and Direct Assignment Facilities for a covered large load; and

(ii)

100 percent of the costs of those facilities be—

(I)

directly assigned to, and fully borne by, the applicable covered large-load customer; and

(II)

paid or secured as provided under paragraph (3).

(C) Network upgrades

Costs of Network Upgrades shall be allocated to covered large-load customers, and those costs shall be credited back against transmission service charges, in a manner that is consistent with the standard interconnection procedures and agreements established by the Commission under section 35.28 of title 18, Code of Federal Regulations (or a successor regulation), as adapted by the Commission for covered large loads.

(D) Option to build

A covered large-load customer may elect to construct its own Network Upgrades and Interconnection Facilities under an option to build, in a manner that is consistent with the standard interconnection procedures and agreements established by the Commission under section 35.28 of title 18, Code of Federal Regulations (or a successor regulation), as adapted by the Commission for covered large loads.

(3) Payment and financial security

(A) In general

Requirements for—

(i)

the payment of costs allocated to a covered large-load customer; and

(ii)

financial security designed to protect any customer from unrecovered costs if a covered large load fails to proceed or perform.

(B) Requirements

The provision of financial security described in subparagraph (A)(ii) shall not alter the final allocation of costs.

(4) Transparency

Disclosure to the applicable covered large-load customer, each applicable State commission, and the Commission of—

(A)

the classification of, estimated and final costs of, allocation of costs for, and method of cost recovery for the facilities associated with a covered large load; and

(B)

the alternatives evaluated, subject to appropriate protection of critical electric infrastructure information (as defined in section 215A(a)).

(5) Reliability

Standards to ensure that the interconnection of covered large loads is consistent with current and future reliability standards (as defined in section 215(a)).

(e) Voluntary Funding of Regional and Interregional Facilities

(1) In general

Except as provided in paragraph (2), nothing in this section alters the allocation of the costs of transmission facilities selected in a regional or interregional transmission plan under a planning process accepted or approved by the Commission.

(2) Voluntary funding

The Commission shall include in the rule issued under subsection (c) a mechanism to allow a covered large-load customer to voluntarily fund all or a portion of a transmission facility selected in a regional or interregional transmission plan under a planning process accepted or approved by the Commission that plans for the transmission needs of anticipated load growth in exchange for a Commission-defined right to transmission service enabled by the funded facility, subject to the conditions that such funding—

(A)

shall reduce the costs otherwise allocated pursuant a regional or interregional cost allocation method accepted or approved by the Commission;

(B)

shall not impact whether the transmission facility is selected under the rules of the Commission; and

(C)

except as provided in subparagraph (A), shall not impact how the costs of the transmission facility are allocated under the rules of the Commission.

(f) Savings provisions

(1) Commission authority; pending proceedings

Nothing in this section—

(A)

limits or impairs any authority of the Commission under any other provision of law; or

(B)

affects any proceeding pending before, or any order issued by, the Commission before the date of enactment of this section.

(2) ERCOT

This section does not apply to ERCOT or an ERCOT utility (as those terms are defined in section 212(k)(2)) with respect to the transmission of electric energy occurring wholly within ERCOT.

(b) Conforming amendments

Section 201 of the Federal Power Act (16 U.S.C. 824) is amended—