The bill proposes the establishment of the Fair and Efficient Transmission Compact, aimed at improving the construction and expansion of high-voltage transmission infrastructure in Arkansas, Louisiana, Mississippi, and Texas. The Compact seeks to reduce construction costs and enhance transmission capacity through effective planning and competitive bidding processes. It emphasizes the need for cooperative action among the states to modernize transmission assets while ensuring that policies do not favor specific companies or industries, thereby fostering a fair and efficient transmission market.

To facilitate the implementation of the Compact, a Fair and Efficient Transmission Council will be created, comprising representatives from each participating state. This Council will develop guidelines for an open bidding process for transmission construction and prepare annual reports for the governors of member states. The bill also establishes a uniform siting and certification process for transmission projects, promotes the integration of grid-enhancing technologies, and allows for upgrades to existing infrastructure without new permits if the original permits were obtained within the last ten years. The administration of the Compact will be overseen by each state's Public Service Commission, which can adopt necessary rules, and the financial structure will require equal assessments from participating states to support the Council's operations.