Senators introduce bill to overhaul US power grid and reduce wildfire risks

WASHINGTON, D.C. (KTVZ) -- U.S. Sens. Ron Wyden and Jeff Merkley introduced legislation Wednesday to overhaul aging power line infrastructure and establish a $15 billion annual grant program to reduce wildfire risks and energy costs. The Wildfire and Grid Reliability Act seeks to modernize the national electric grid through system upgrades, microgrid installation and disaster mitigation.

The proposal follows a devastating 2024 wildfire season in Oregon that burned 1.9 million acres and caused billions of dollars in economic losses. Failing infrastructure has led to increased wildfire ignitions during dry summer months and widespread blackouts during winter storms. Many of the costs associated with rebuilding lines after these disasters are currently passed directly to consumers through higher utility bills.

The bill would establish a $15 billion-per-year matching grant program managed by the Department of Energy. Under the proposal, power companies would be required to provide a one-to-one match for the funding to ensure they have "skin in the game." Smaller utilities would have a reduced matching requirement of one-third of the grant.

Sen. Wyden emphasized the need for the federal government to modernize the grid. "It's time for the federal government to stop pretending like our outdated energy infrastructure can keep up with growing demand and risk of natural disasters," Wyden said. "Our bill takes a significant step to help bring our electric grid into the 21st century, ensuring we can meet demand." He also noted the bill's role in addressing energy costs.

The program would give special priority to smaller, rural electric companies that often face unique challenges. The legislation includes specific funding to support these smaller utilities in completing the application process for federal assistance. Dylan Kruse, president of Sustainable Northwest, said natural disasters like floods and landslides continue to threaten tribal and rural economies. "This legislation will empower forward thinking utilities to collaborate with rural communities on microgrids and other resilience measures to keep the power on and prevent rates from skyrocketing," Kruse said.

Sen. Merkley highlighted the safety risks posed by failing infrastructure during extreme weather events. "No one should have to worry about their lives being at risk because they've been stranded for days or weeks on end without electricity due to failing grid infrastructure," Merkley said. He noted that investments in resilient grids are necessary as climate chaos fuels dangerous heat waves and storms.

Proposed grid hardening methods under the act include the undergrounding of power lines and the installation of microgrids. The funding would also support strengthening utility poles and clearing hazardous vegetation near overhead lines when undergrounding is not a favorable option. Ryan Flynn, president of Pacific Power, expressed support for the infrastructure initiative. "Investments in grid infrastructure, upgrades to safety equipment and continued wildfire prevention are necessary for the health, safety and economic growth of our customers and communities," Flynn said.

The League of Oregon Cities has called for immediate consideration of the bill in the Senate. Patricia Mulvihill, executive director of the League of Oregon Cities, cited the impact of the 2024 fire season as a primary concern. "2024 Oregon wildfires took an unconscionable human toll, burned a record 1.9 million acres, cost Oregon more than $350 million in resources and billions in economic loss," Mulvihill said. She added that the program demonstrates a commitment to hardening the electrical grid and using new microgrid technology.

Oregon State Fire Marshal Mariana Ruiz-Temple said the legislation aligns with recommendations from the Federal Wildland Fire Mitigation and Management Commission. "This legislation reflects a clear understanding that wildfire risk is a long-term challenge requiring sustained, coordinated action," Ruiz-Temple said. She stated that continued investment in resilient infrastructure is essential to protecting communities.

The legislation would require the Department of Energy and participating utilities to generate a report every two years detailing efforts and progress conducted under the grant program.