H.R.3843 - Baseload Reliability Protection Act (119th Congress)
Summary
H.R. 3843, the Baseload Reliability Protection Act, aims to prevent the retirement or fuel source conversion of baseload electric generating units in areas identified by the North American Electric Reliability Corporation (NERC) as being at elevated or high risk of electricity supply shortfalls. The bill amends the Federal Power Act, introducing Section 215B, which prohibits such retirements or conversions unless exemptions are granted by the Federal Energy Regulatory Commission (FERC). The bill also includes provisions for DOE grants or loans to support the continued operation or upgrading of these units.
Expected Effects
The likely effect of this bill is to maintain the availability of existing baseload power generation, potentially preventing electricity supply shortfalls in at-risk areas. This could lead to continued reliance on existing energy sources, potentially delaying the transition to renewable energy. The bill also establishes a process for operators to seek exemptions, adding a layer of regulatory oversight.
Potential Benefits
- Ensures a stable electricity supply by preventing premature retirement of baseload generating units.
- Provides financial support through DOE grants and loans for maintaining and upgrading existing power plants.
- Offers a process for operators to seek exemptions from the prohibitions, allowing for flexibility.
- Protects operators from penalties for actions taken to comply with the prohibition on retirements or fuel source conversions.
- Requires standardized criteria for risk assessment by the Electric Reliability Organization (ERO).
Potential Disadvantages
- May hinder the transition to cleaner energy sources by prolonging the life of older, potentially less efficient plants.
- Could lead to increased reliance on fossil fuels, contributing to greenhouse gas emissions.
- The exemption process adds regulatory burden and potential delays.
- The bill restricts FERC's consideration of greenhouse gas emissions in exemption determinations.
- Potential for inefficient allocation of resources if uneconomical plants are kept online through subsidies.
Most Disadvantaged Areas:
Constitutional Alignment
The bill's alignment with the Constitution is primarily based on the Commerce Clause (Article I, Section 8), which grants Congress the power to regulate interstate commerce, including the transmission of electricity. The bill aims to ensure a reliable electricity supply, which directly affects interstate commerce. However, some may argue that the bill's restrictions on plant retirements and fuel conversions could infringe on states' rights to regulate their own energy resources. The bill also includes provisions for judicial review, aligning with the principle of checks and balances.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).