SPEED and Reliability Act of 2025
The SPEED and Reliability Act of 2025 amends the Federal Power Act to accelerate and streamline the siting and permitting process for electric transmission projects deemed to be in the national interest. Key changes include designating the Federal Energy Regulatory Commission (FERC) as the lead agency for most federal approvals, expanding and clarifying what counts as “improved reliability,” increasing state and landowner input, and imposing cost-allocation rules that tie who pays to who benefits from new or modified transmission facilities. The bill also broadens coordination among federal agencies, shifts certain offshore (Outer Continental Shelf) projects to the Department of the Interior as lead for offshore locations, limits ERCOT’s regulatory reach, and curtails some legacy mechanisms like national-interest transmission corridors. It explicitly aims to reduce regulatory burden (no new rulemaking beyond what is specified) while safeguarding ratepayer protections and ensuring that beneficiaries pay for benefited transmission improvements. In short, the bill seeks to speed up major transmission projects that improve reliability and reduce congestion, while reforming how costs are allocated, how agencies coordinate, and how state and landowner input is incorporated. It also redefines some jurisdictional boundaries and removes certain corridor-based approaches to siting, particularly affecting ERCOT and offshore projects.
Key Points
- 1Streamlined permitting and “national interest” standard
- 2- FERC becomes the lead agency for permitting transmission facilities, with a public comment period of at least 60 days and a streamlined, single-or-multiple-permit approach if criteria are met. State siting authority is preserved, and coordination with states, federal agencies, Tribes, landowners, and other parties is required.
- 3Expanded and measurable reliability standard; landowner input
- 4- Defines “improved reliability” by multiple criteria (reliability standards, reduced unserved energy/load loss, better resource adequacy, lower outage risk, etc.) and requires consideration of landowner input in decisions.
- 5Cost allocation and ratepayer protections
- 6- Transmission owners must file tariffs under Section 205 to allocate costs to beneficiaries. Costs must be just and reasonable and tied to benefits such as improved reliability, reduced congestion, lower losses, greater capacity, and access to lower-cost generation. Those who receive no or only trivial benefits should not bear costs unless voluntary agreements are reached.
- 7Coordinated leadership and offshore/onsite jurisdiction changes
- 8- FERC remains the lead agency for facilities permitted under the new streamlined process; the Department of the Interior becomes the lead agency for facilities located on offshore leases/rights of way. The bill also removes reliance on National Interest Electric Transmission Corridors and strengthens interagency coordination timelines.
- 9Jurisdiction adjustments and regulatory burden
- 10- The bill narrows FERC jurisdiction for ERCOT (Electrical Reliability Council of Texas) by excluding ERCOT from this section, while maintaining FERC authority over other transmitting utilities. It also adds conforming amendments to related statutes and emphasizes minimizing new rulemaking beyond the Act’s provisions. It preserves FERC authority over wholesale electricity but not retail/lateral distribution.