Lowering Energy Costs through Grid Modernization Act

This bill aims to accelerate the modernization of the national electric grid by supporting advanced conductors and related systems. It defines key terms, requires transmission modernization studies, allows for publication of performance data, streamlines environmental review for certain projects, and adds high-performance transmission property to the clean electricity investment tax credit.

Sec. 2, Definitions: Defines 'advanced conductor' as a transmission conductor with at least 1.5 times the capacity, 10% lower resistance, and 25% lower thermal sag than traditional ACSR conductors. Defines 'reconductoring project' as replacing existing conductors with advanced conductors within an existing right-of-way, and 'right-of-way optimization project' as planning, designing, and constructing upgrades using advanced conductors within an existing right-of-way.

Sec. 3, Transmission modernization study: Allows transmission providers to conduct studies evaluating economic and grid reliability benefits of right-of-way optimization or reconductoring projects. Studies must describe how such projects address congestion, capacity, reliability, or resilience, compare them to other projects, and consider natural hazard and extreme weather risks. Results must be submitted to the Secretary of Energy and made public, except for critical electric infrastructure information.

Sec. 4, National reconductoring performance insights: The Secretary may publish aggregated performance data on reconductoring outcomes using public sources or voluntary submissions, without identifying specific facilities or operators. The Secretary may also maintain a public web page listing states, in-service years, and voltage classes for such projects, using only existing tax credit documentation, public information, or voluntary submissions.

Sec. 5, NEPA review: The issuance of a federal permit for a covered project (a right-of-way optimization or reconductoring project meeting certain standards) is deemed a categorical exclusion under the National Environmental Policy Act, unless the Secretary or relevant agency head determines extraordinary circumstances apply. The project may involve widening an existing right-of-way to meet current electrical standards if it stays within previously disturbed lands.

Sec. 6, High-performance transmission property added to clean electricity investment credit: Amends the Internal Revenue Code to include high-performance transmission property (used in right-of-way optimization or reconductoring projects) in the clean electricity investment credit. The base credit rate is 6%, with a 30% rate for property under 1 megawatt or meeting certain wage and apprenticeship requirements. The credit may be increased for energy communities and domestic content. Property with material assistance from prohibited foreign entities after December 31, 2025, is excluded. The amendments apply to property placed in service in taxable years beginning after enactment, and the Treasury Secretary must issue regulations within 18 months.