H.R. 1047 would require the Federal Energy Regulatory Commission (FERC) to revise the interconnection queue for electric power—a waitlist of energy projects to be connected to the electric grid. In particular, the act would require FERC to issue rules prioritizing and approving certain projects that provide new dispatchable power, enhance grid reliability, and meet on-demand electricity needs.

CBO expects that implementing H.R. 1047 could have a small effect on FERC’s workload. Any change in FERC’s costs (which are controlled through annual appropriation acts) would be offset by fees that the commission charges. Accordingly, CBO estimates that implementing the act would result in a negligible net change in discretionary spending.

If FERC increases their fees to offset the costs of implementing the act, H.R. 1047 would increase the cost of an existing mandate on public and private entities, such as electric utilities, that are required to pay those fees. CBO estimates that the additional amounts collected would be small and fall well below the thresholds established in the Unfunded Mandates Reform Act for intergovernmental and private-sector mandates ($103 million and $206 million in 2025, respectively, adjusted annually for inflation).

The CBO staff contacts for this estimate are Aaron Krupkin (for federal costs) and Brandon Lever (for mandates). The estimate was reviewed by H. Samuel Papenfuss, Deputy Director of Budget Analysis.