This article was originally published by the Cleveland Plain Dealer.
By Sabrina Eaton
WASHINGTON – The U.S. House of Representatives on Wednesday passed legislation by Zanesville Republican Rep. Troy Balderson that would require federal agencies to assess how their regulations affect electric grid reliability before finalizing new rules.
The Reliable Power Act (H.R. 3616) was approved 225 to 203, with unanimous GOP backing, and support from Democrats Lou Correa of California, Henry Cuellar of Texas, Don Davis of North Carolina, Jared Golden of Maine, Jimmy Gray of California, Marie Gluesenkamp Perez of Washington, and Eugene Vindman of Virginia.
“America is facing a reliability crisis–one made worse by the last administration’s regulatory chaos and radical climate agenda,” Balderson said on the House of Representatives floor. “After unelected bureaucrats spent years waging war on American energy, President Trump and his Administration have finally reined in agency overreach and restored energy dominance as a national priority.”
The legislation would require the North American Electric Reliability Corporation (NERC) to conduct annual long-term assessments of the bulk power system’s ability to maintain adequate reliability. If NERC determines the grid is at risk of insufficient generation capacity, it must notify the Federal Energy Regulatory Commission (FERC) that the system is in a “state of generation inadequacy.”
FERC would then notify the Department of Energy, the Environmental Protection Agency, and other relevant agencies. Those agencies would be required to submit any proposed regulations affecting power generation to FERC for review and comment before finalization. No rule could be finalized if FERC finds it would cause “a significant negative impact on the ability of the bulk-power system to supply sufficient electric energy necessary to maintain an adequate level of reliability.”
“The Reliable Power Act puts common-sense guardrails in place so families aren’t left facing blackouts, price spikes, or uncertainty every time they flip a switch,” Balderson said.
In an interview after the bill’s passage, Balderson said the bill addresses communication failures between federal agencies.
“One agency does this and doesn’t let the other agency know what’s going on,” he said. “So, this brings back communication skills. It brings back accountability and coordination.”
He emphasized the bill’s importance to Ohio, saying it will address grid reliability concerns.
“We are shutting baseload energy off faster than we can replace it,” Balderson said. “That’s the problem, and we have to extend the ability for these base load power plants to stay on for grid reliability.”
The concerns come as electricity demand is increasing due to data center expansion. Balderson noted that PJM, the regional transmission organization that represents Ohio, indicated two and a half years ago “that we don’t have the power supply to deal with the upswing and electricity usage.”
The Reliable Power Act is Balderson’s second piece of grid-related legislation this Congress. In September, the House passed his Grid Power Act, which Balderson said also addresses the issue of baseload power being shut down faster than new generation can come online. That earlier bill has not yet moved in the Senate, though Balderson said he is optimistic both will win approval.
During Wednesday’s debate on Balderson’s legislation, the top Democrat on the House Energy and Commerce Committee, New Jersey’s Frank Pallone, said the regulatory chaos that Balderson cited was created by the Trump administration through “senseless tariffs and unprecedented executive actions, which he said drove electricity prices are by 13% and natural gas prices up by 8% since Trump took office.
Pallone argued the bill would empower FERC to override health and safety regulations from other agencies.
“This is a Christmas gift to some of the nation’s largest polluters,” said Pallone. “FERC, which has no expertise in public health or environmental protections, would just be able to stop another agency’s regulation meant to protect public health.”
Pallone also warned about health impacts: “Pollution is exacerbating your child’s asthma. Who cares? Your water may be contaminated. Nothing to worry about. We don’t care. Other agencies spent years crafting regulations, often after an extensive analysis that shows the benefits of that regulation, from a health and safety point of view, outweighs the cost.”
“This bill would throw all of that out the door by allowing FERC, which has no expertise in these areas, to just say no and FERC doesn’t even want to do it,” Pallone continued.
The bill drew support from several industry groups, including the American Public Power Association, National Rural Electrical Cooperative Association, and the U.S. Chamber of Commerce.
“Given the current environment of rapidly increasing electricity demand, and the critical role that affordable and reliable electricity plays in the economy and livelihoods of all Americans, the impact of relevant agency actions should not be left to chance,” said a statement from Marty Durbin, President of the Global Energy Institute at the U.S. Chamber of Commerce.
The Congressional Budget Office estimates implementing the bill would cost FERC less than $10 million annually, though those costs would be recovered through user fees. The budget office said the net effect on the deficit would be negligible.
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