A draft transmission siting and planning bill from the chairman of the Senate Energy and Natural Resources Committee would expand federal authority over high-voltage transmission but would not designate renewable zones or set aside new line capacity to carry renewable energy.

The draft bill by Sen. Jeff Bingaman (D-N.M.) is very similar to a bill introduced by Senate Majority Leader Harry Reid (D-Nev.) last week except on the issue of the interconnection of renewable energy. The Senate Energy and Natural Resources Committee is set to discuss both measures at a hearing Thursday.

Reid's bill includes a requirement for the Energy Department to designate "renewable energy zones" and reserves a portion of the new lines solely for renewable energy unless there is a reliability issue identified by the Federal Energy Regulatory Commission. Bingaman's bill omits both.

Instead, the draft bill says the interconnection-wide transmission planning "shall be guided by the goal of maximizing the net benefits of the electricity system, taking into consideration" the development of new renewable generation capacity -- including those in remote locations. Other "guides" for transmission planning in Bingaman's bill includes emissions reduction, alleviation of transmission congestion, reduction of line losses, enhanced fuel diversity and enhancement of competition in electricity markets.

Environmental groups are concerned that building long transmission lines could increase the burning of coal for electricity, as capacity constraints ease and coal plants can sell cheap electricity to faraway markets.

Reid's bill attempts to solve the problem by requiring 75 percent of the line to be dedicated to renewables but Bingaman -- along with many utilities and experts in the industry -- says it is unfeasible. "It's very hard to sort out electrons from one kind of electricity and not from another one," Bingaman told reporters at the Platts Energy Podium last week.

Aside from the question of renewable energy zones and capacity requirements, the two bills are similar. Both bills would give FERC siting authority over high-voltage lines designated within interconnection-wide transmission plans. The transmission plans and cost allocation process to construct the lines would be created by states and a broad range of stakeholders within the Eastern and Western interconnections and certified by FERC. If within one year the interconnection planning entities fail to develop a plan or cost allocation scheme, or states refuse to participate, FERC would have the authority to create a plan for them, with the input of stakeholders.

Both bills would also include up to a $80 million transmission surcharge to pay for the interconnection-wide planning costs. Bingaman's bill also places the regional planning entities and FERC on a tighter schedule by about six months as it does not contain time to create renewable energy zones.

Click here to view Bingaman's bill.

Click here to view Reid's bill.