119th (2025–2027)
H.R. 9945
This bill aims to modernize the nation's electrical grid by promoting the replacement of aging transmission conductors with advanced, high-capacity alternatives. The legislation allows utility companies to conduct studies evaluating whether upgrading to advanced conductors or optimizing existing rights-of-way can address grid congestion, capacity constraints, and reliability issues, with results to be submitted to the Department of Energy and made public. The bill streamlines environmental review by treating qualifying grid modernization projects as categorical exclusions under the National Environmental Policy Act, avoiding lengthy environmental assessments when extraordinary circumstances are not present. To incentivize these upgrades, the legislation creates federal tax credits for high-performance transmission property, offering a base credit rate of 6 percent and up to 30 percent for smaller projects or those meeting specific domestic content and workforce requirements. The Treasury Department has 18 months from enactment to issue regulations implementing these tax credit provisions, with the credits available for property placed in service after the bill becomes law.