The Connect the Grid Act would bring Texas's power grid (ERCOT) under federal regulation and connect it to neighboring power systems by requiring new transmission lines to be built between ERCOT and three neighboring regions by January 2037. The bill removes ERCOT's current exemptions from federal energy laws and requires a minimum of 4.3-12.6 gigawatts of transmission capacity to the Southwest Power Pool, 2.5-16.2 gigawatts to the Midcontinent Independent System Operator, and 2.6-7.9 gigawatts to the Western Interconnection. To help fund these projects, the bill increases borrowing authority for the federal Transmission Facilitation Program from $2.5 billion to $13.5 billion. The legislation prioritizes using existing rights-of-way, degraded land, and renewable energy development for construction, requires community involvement and prevailing wages, and mandates environmental reviews. The bill also directs the Secretary of Energy to study potential interconnection benefits with Mexico's power system.
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