Heinrich Introduces Legislation to Support Investments to Build a More Resilient, Reliable Grid

The bill creates an investment tax credit to boost construction of significant transmission projects across the nation, could create 1 million jobs & help cut electricity costs by 0ver $27 billion annually

WASHINGTON - Today, U.S. Senator Martin Heinrich (D-N.M.), Ranking Member of the U.S. Senate Energy and Natural Resources Committee, introduced the Grid Resiliency Tax Credit Act, legislation to incentivize the construction of new electric transmission infrastructure to help meet growing electricity demand, strengthen the grid, and lower costs for customers.

The Grid Resiliency Tax Credit Act will provide a targeted 30% investment tax credit (ITC) to support investments in large-scale transmission projects and grid-enhancing technologies that help to provide consumers with low-cost, reliable electricity.

At a time when energy costs are already through the roof, Americans need solutions that can bring down the cost of electricity while making sure our grid can keep up with growing demand. According to an analysis by ACORE and Grid Strategies, a 30% investment tax credit for transmission projects would create more than 1 million new American jobs building and maintaining transmission projects. Transmission expansion could save American families and businesses up to $27.7 billion per year on their residential electricity bills, according to Grid Strategies and Americans for a Clean Energy Grid (ACEG).

"As our energy demand increases, we need to improve our grid infrastructure and invest in building more transmission lines that deliver on the promise of reliable, affordable, and clean power," said Heinrich. "At a time when families are already facing sky-high energy costs, we need to make sure our investments in the grid actually help bring those costs down. My Grid Resiliency Tax Credit Act will do just that by incentivizing private investors to put their capital behind building critical energy infrastructure projects, creating long-term certainty, starting from planning to the construction of transmission projects."

The Grid Resiliency Tax Credit Act could be applied for the following investments:

• Large significant transmission lines and line upgrades that cross certain geographic jurisdictions or are at least 100 miles which are:
  • At least 500 MW in capacity
  • At least 345 kV AC or 200 kV DC in voltage
• Generator-tie lines and network upgrades to connect additional electricity supply and storage to the grid.
• Innovative technologies such as advanced transmission conductors and grid-enhancing technologies.

The Grid Resiliency Tax Credit Act would provide a 10-year tax credit. Starting in 2026, all qualifying transmission projects that are placed in service would qualify for the credit and any qualifying project that starts construction before December 31, 2036, could claim the credit. The Grid Resiliency Tax Credit would support investments in new transmission projects, modifications to existing transmission projects, interconnection, subcomponents, and grid-enhancing technologies.

The Grid Resiliency Tax Credit Act is endorsed by the National Rural Electric Cooperative (NRECA), Berkshire Hathaway Energy, the American Public Power Association (APPA), the International Brotherhood of Electrical Workers (IBEW), the Edison Electric Institute (EEI), Oceti Sakowin Power Authority (OSPA), Navajo Transitional Energy Company (NTEC), the National Electrical Manufacturers Association (NEMA), SouthWestern Power Group, Pattern Energy, ACORE, Americans for a Clean Energy Grid (ACEG), and the Natural Resources Defense Council (NRDC).

"Investing in transmission infrastructure is critically important to meet soaring electricity demand and maintain a reliable grid. As electric cooperatives make the investments necessary to achieve these goals, having access to the transmission investment tax credit is crucial to reducing costs for consumers. We appreciate Sen. Heinrich's leadership on this issue and his commitment to ensuring that all Americans reap the benefits of this critical federal resource," said Jim Matheson, CEO of the National Rural Electric Cooperative Association (NRECA).

"We applaud Sen. Heinrich's reintroduction of the Grid Resiliency Tax Credit Act, which would leverage private capital to build the new transmission capacity needed to meet today's surging electricity demand. If enacted into law, the Grid Resiliency Tax Credit Act would unleash historic grid infrastructure investment, enhance system security and reliability, and help keep electricity prices affordable for the customers we serve," said Patrick Reiten, Senior Vice President of Berkshire Hathaway Energy.

"Customers nationwide are facing rising electricity costs, including increasing transmission costs, which are reflected in monthly bills. Senator Heinrich's bill would help address that challenge by reducing transmission investment expenses, including for public power utilities, which would access the credit's benefits through elective pay. This allows community-owned, not-for-profit public power utilities to receive the full investment incentive, keeping benefits local, supporting grid reliability, and reducing customers' transmission rates," said Scott Corwin, President and CEO of the American Public Power Association (APPA).

"IBEW members proudly build, operate, and maintain our nation's bulk electric grid, and Sen. Heinrich's proposed tax credit will spur the massive transmission buildout that our country urgently needs. This bill will catalyze private investment to create thousands of good-paying jobs for the lineworkers who build these projects while improving reliability and lowering costs for consumers, and the IBEW looks forward to working with Congress to pass this important legislation," said Kenneth Cooper, International President of the International Brotherhood of Electrical Workers (IBEW).

"Across the Great Plains, Tribal lands hold some of the strongest renewable energy potential in the country, but inadequate transmission capacity remains one of the biggest barriers to bringing that power to market. The Oceti Sakowin Power Authority strongly supports the Resiliency Tax Credit Act, and we thank Senator Heinrich for his efforts to accelerate investment in the high-voltage transmission infrastructure our country urgently needs. Expanding transmission is fundamental to unlocking Tribal clean energy resources, advancing energy sovereignty, meeting America's growing energy needs, and creating lasting economic opportunity for Tribal communities," said Lyle Jack, Chairman of the Board of Directors of the Oceti Sakowin Power Authority (OSPA), a Tribal utility authority owned by seven Sioux Tribes in South Dakota.

"The Navajo Transitional Energy Company (NTEC) supports Senator Martin Heinrich's legislation establishing a 30% investment tax credit for qualifying transmission infrastructure. Expanding the nation's transmission system is essential. Rising demand, mounting reliability pressures, and long interconnection queues all point to the same conclusion: America needs more wires, substations, and switchyards, and it needs them soon. By taking a technology-neutral approach, the bill focuses on the infrastructure itself rather than any generation resource. That is the right frame. Every customer and every resource depend on a stronger grid," said Vern Lund, CEO of the Navajo Transitional Energy Company (NTEC).

"America's electric grid is under mounting strain from record demand growth, and the tools to relieve that strain - including grid-enhancing technologies like advanced conductors - already exist and are ready for deployment. What's needed now is a policy framework that makes building them easier," said Will Hupman, SVP of Government Affairs of the National Electrical Manufacturers Association (NEMA). "Sen. Heinrich's Grid Resiliency Tax Credit Act does exactly that, offering an investment tax credit for qualified, regionally significant electric power transmission or generator-tie lines that meet rigorous performance standards for capacity, efficiency, and resilience. By providing an incentive to deploy high-performing transmission technology rather than just new poles and wires, Senator Heinrich's legislation will help deliver the faster capacity expansion our economy needs."

"Our country cannot meet our ever-growing energy needs without more modern transmission. But the patient capital required to work through the approval process, and then the high cost of construction, limits who is willing to take on necessary and large transmission projects. An Investment Tax Credit is one of the best vehicles to bring key investors and developers to the table to grow our grid. We deeply thank Senator Heinrich for his continued dedication and work to this end and are so appreciative for how much he prioritizes smart, needed transmission policy," said Darryl Sockwell, General Manager of SouthWestern Power Group.

"A stable policy environment is key to unlocking investment in American energy infrastructure to strengthen grid reliability, support economic growth, and deliver affordable energy to communities across the country. Meeting growing energy demand requires significant investment in transmission, which serves to both improve reliability and provide the backbone to efficiently utilize both existing and new generation assets. Senator Heinrich's Grid Resiliency Tax Credit Act recognizes the critical role transmission plays in advancing these priorities," said Hunter Armistead, CEO of Pattern Energy.

"We need to add enough electricity supply to our grid by 2030 to power New York City 15 times over. That pace of growth is unlike anything we've seen, and this bill is a constructive step toward preparing our grid to affordably and reliably deliver that power," said Ray Long, President and CEO of ACORE. "We at ACORE look forward to working across the aisles of Congress to deliver bipartisan solutions to grid modernization, permitting reform, and energy security."

"This bill supports smart investments to help us build the grid that Americans deserve," said Grace Henley, tax attorney at the Natural Resources Defense Council. "We need a resilient grid for the 21st century that delivers affordable, clean, and reliable energy across the nation."

A fact sheet of the bill is here.

The full text of the bill is here.

This Congress, as Ranking Member of the U.S. Senate Energy and Natural Resources Committee, Heinrich has introduced multiple bills aimed at strengthening our electrical grid and lowering energy costs for families.

Last month, Heinrich introduced the GRID Savings Act, legislation that aims to ensure that the biggest new electricity users play by the same basic rules that have applied to new power plants for two decades, while increasing transparency, protecting grid reliability, and making sure that families and businesses aren't left paying for infrastructure that only serves new, high-demand customers. Last week, Heinrich took to the Senate floor to encourage his colleagues to put the GRID Savings Act up for a vote, however, Senate Republicans blocked the effort.

In July, Heinrich introduced the Grid Connection and Congestion Management Act, which would require grid operators to establish a fast-track process for connecting new energy projects to the electric grid, reducing delays and easing congestion.

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