Niskanen backs bipartisan bill with major transmission reforms

The Niskanen Center says the Bipartisan American Affordability and Jobs Act of 2026 could remove key barriers to building interstate transmission lines and help lower power costs. The group is urging Congress to pass the package as electricity demand rises and grid reliability concerns grow.

Why it matters: - The Bipartisan American Affordability and Jobs Act of 2026 includes what Niskanen calls the most consequential congressional transmission reforms in 20 years. - The bill targets barriers that slow planning, siting and construction of interstate power lines. - Faster transmission buildout could improve reliability, expand access to lower-cost power and support domestic clean energy supply.

What happened: - The Niskanen Center strongly supported the bill's introduction on Sept. 30, 2026. - The legislation is a bipartisan package focused on transmission and permitting reform. - Dr. Liza Reed, Niskanen's director of climate and energy policy, said the U.S. must accelerate transmission buildout to deliver reliable power at lower cost. - Reed said approval of a single line can take a decade or more under current conditions.

The details: - The bill would streamline the Federal Energy Regulatory Commission's backstop siting authority by removing the need for a prior Department of Energy corridor designation. - The legislation would require interregional transmission planning and cost allocation. - The bill would codify a ban on a federal right of first refusal for transmission projects selected in a regional plan. - The same prohibition would also apply to lines selected in an interregional plan. - Niskanen said the package comes as grid modernization and expansion have become critical to meet rising electricity demand, keep costs in check and preserve reliability for households and businesses. - Reed praised Chairs Mike Lee and Shelley Moore Capito, along with Ranking Members Martin Heinrich and Sheldon Whitehouse, for negotiating the bipartisan package.

Between the lines: - The bill's transmission provisions would shift power-plant and grid development toward a faster federal process, which could reduce some of the delays that have held back large-scale infrastructure. - The proposal also signals bipartisan agreement that permitting reform is now tied directly to affordability, not just energy policy. - By focusing on interregional planning and cost allocation, the measure tries to address one of the biggest friction points in expanding the grid beyond state lines.

What's next: - Niskanen is urging Congress to pass durable permitting reforms that can strengthen reliability, lower costs, support economic growth and speed energy infrastructure construction. - The bill will need congressional action before any of the proposed transmission changes can take effect.