Connect the Grid Act of 2026
The Connect the Grid Act of 2026 would direct federal regulators to require new or expanded electric transmission interconnections between the Electric Reliability Council of Texas (ERCOT) and neighboring grids. It amends the Federal Power Act to remove several ERCOT-specific exemptions and to bring ERCOT more fully under federal jurisdiction for certain reliability and transmission-related purposes. The bill also requires the Federal Energy Regulatory Commission (FERC) to convene a technical conference to help affected entities comply with the new requirements.
A central feature of the bill is a new reliability standard that would require minimum transfer capability between ERCOT and the Southwest Power Pool, the Midcontinent Independent System Operator, and the Western Interconnection. The bill directs ERCOT and its neighboring systems to submit a plan within one year identifying who will site, build, or modify transmission facilities, with completion targeted by January 1, 2035. The plan must prioritize grid-enhancing technologies, use of existing rights-of-way, development on degraded or contaminated land, expanded access to renewable energy, community outreach, and use of registered apprenticeship programs and prevailing wages. Projects carried out under the bill would remain subject to NEPA and the Endangered Species Act.
The bill would also increase borrowing authority under the Transmission Facilitation Program from $2.5 billion to $13.5 billion, giving the federal government more capacity to support transmission projects. In addition, it instructs the Secretary of Energy to consider designating national interest electric transmission corridors for areas where the required facilities would be built or modified. Finally, the bill requires a study and report to Congress on the reliability, climate, and cost benefits of interconnecting U.S. electric facilities with facilities in Mexico.
The bill’s impact on state and federal law would be significant, especially for Texas. It would alter the Federal Power Act to expand federal oversight over ERCOT-related transmission and reliability matters, potentially reducing the state’s traditional insulation from interstate grid regulation. It would also influence siting, permitting, labor standards, and environmental review for major transmission projects, while creating new federal planning and financing pathways for interregional grid expansion.
Because there are no committee transcripts or votes available, the general sentiment can only be inferred from the bill’s structure and sponsors. The bill appears strongly supportive of grid expansion, reliability, clean energy integration, and labor standards, with an emphasis on climate and environmental justice benefits. Likely points of contention include federal intrusion into Texas grid governance, the mandate for new transmission buildout, the costs and feasibility of the required interconnections, and the balance between accelerated infrastructure development and environmental review requirements.
The bill would amend the Federal Power Act and related federal energy statutes to subject ERCOT to additional federal reliability and transmission requirements, eliminate several ERCOT-specific exemptions, and require planning for new interregional transmission capacity. It would also increase federal financing authority under the Transmission Facilitation Program and direct DOE and FERC to take further actions related to transmission corridors, compliance assistance, and a Mexico interconnection study. These changes would primarily affect ERCOT, FERC, the Electric Reliability Organization, transmission organizations, utilities, developers, and communities near proposed transmission routes.
No votes or committee debate are provided, so there is no recorded legislative sentiment to summarize. Based on the bill text, the measure is clearly pro-transmission, pro-reliability, and supportive of renewable integration, labor protections, and environmental justice considerations. The absence of recorded opposition in the provided materials means any controversy must be inferred from the policy changes themselves rather than from formal legislative discussion.
The main likely point of contention is federal preemption and the expansion of federal authority over ERCOT, which has historically operated outside the broader interstate grid framework. Another likely issue is the requirement to build or modify transmission facilities on a set timeline and to meet specified transfer-capability targets, which could raise cost, feasibility, and implementation concerns for utilities and grid operators. Environmental and land-use issues may also be contested, even though the bill prioritizes degraded land and existing rights-of-way, because projects would still require NEPA and Endangered Species Act review. Labor and community provisions may be broadly supported but could add complexity for developers and siting authorities.