Summary of HR 1047 - GRID Power Act

Bill Overview

• Bill Number: HR 1047
• Title: Guaranteeing Reliability through the Interconnection of Dispatchable Power Act (GRID Power Act)
• Introduced: February 6, 2025
• Status: Received in the Senate, read twice, and referred to the Committee on Energy and Natural Resources.
• Primary Sponsor: Representative Troy Balderson (R-OH)
• Cosponsors: 14 additional members from various states

Purpose and Intent

The GRID Power Act aims to enhance the reliability and resilience of the electric grid by reforming the interconnection process for power generation projects. Specifically, it directs the Federal Energy Regulatory Commission (FERC) to prioritize and expedite interconnection requests for dispatchable generation projects—those that can be turned on or off as needed—and projects that improve grid stability.

Key Provisions

• Prioritization of Dispatchable Projects: FERC is required to issue rules that allow transmission providers to prioritize interconnection requests for dispatchable generation projects.
• Periodic Reviews: The bill mandates FERC to conduct regular reviews and updates of the interconnection regulations to ensure they remain effective in addressing the evolving challenges of grid reliability and resilience.
• Addressing Backlogs: The legislation seeks to mitigate the growing backlogs and delays in the interconnection process, which have been exacerbated by the increasing demand for electricity and the retirement of traditional baseload power sources.

Background and Need for Legislation

The bill responds to significant changes in the electricity sector since FERC's Order 2003, which standardized interconnection agreements. With the rise of renewable energy sources, such as wind and solar, and a projected increase in electricity demand, the existing interconnection process has faced challenges, including:
- Backlogs: A high volume of interconnection requests, primarily from renewable sources, has led to delays in project approvals.
- Reliability Concerns: The shift towards variable energy resources has raised concerns about maintaining grid stability and reliability.
- Projected Demand Growth: The North American Electric Reliability Corporation (NERC) anticipates a peak demand increase of 151 GW by 2034, while up to 115 GW of thermal generation is expected to retire.

Impact

The GRID Power Act is designed to:
- Facilitate Faster Project Approvals: By prioritizing dispatchable projects, the bill aims to streamline the interconnection process, allowing for quicker integration of new energy resources into the grid.
- Enhance Grid Resilience: By focusing on dispatchable generation, the legislation seeks to ensure that the grid can better handle fluctuations in demand and supply, thereby improving overall reliability.
- Support Economic Growth: By addressing interconnection delays, the bill may encourage investment in new energy projects, supporting job creation and economic development in the energy sector.

Legislative Timeline

• February 6, 2025: Introduced in the House and referred to the Committee on Energy and Commerce.
• June 3, 2025: Referred to the Subcommittee on Energy.
• June 25, 2025: Ordered to be reported by the Committee on Energy and Commerce.
• September 18, 2025: Passed in the House by a vote of 216-206.
• September 19, 2025: Received in the Senate and referred to the Committee on Energy and Natural Resources.

Conclusion

The GRID Power Act represents a significant legislative effort to reform the interconnection process for power generation projects, aiming to enhance the reliability and resilience of the electric grid in the face of changing energy demands and resources. By prioritizing dispatchable generation, the bill seeks to address current challenges and support the transition to a more reliable energy future.