H.R. 3843

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3843 Introduced in House (IH)]

<DOC>

119th CONGRESS
1st Session
H. R. 3843

To amend the Federal Power Act to prohibit retirements of baseload 
electric generating units in any area that is served by a Regional 
Transmission Organization or an Independent System Operator and that 
the North American Electric Reliability Corporation categorizes as at 
elevated risk or high risk of electricity supply shortfalls, and for 
other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

June 9, 2025

Ms. Fedorchak (for herself, Mr. Weber of Texas, Mr. Goldman of Texas, 
Mr. Pfluger, Mr. Rulli, Mrs. Miller of West Virginia, and Mr. 
Balderson) introduced the following bill; which was referred to the 
Committee on Energy and Commerce

_______________________________________________________________________

A BILL

To amend the Federal Power Act to prohibit retirements of baseload 
electric generating units in any area that is served by a Regional 
Transmission Organization or an Independent System Operator and that 
the North American Electric Reliability Corporation categorizes as at 
elevated risk or high risk of electricity supply shortfalls, and for 
other purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Baseload Reliability Protection 
Act''.

SEC. 2. PROHIBITION ON RETIREMENTS AND CONVERSION OF FUEL SOURCE FOR 
ELECTRIC GENERATING UNITS IN AREAS AT HIGH RISK OR 
ELEVATED RISK OF ELECTRICITY SUPPLY SHORTFALLS.

(a) In General.--Part II of the Federal Power Act (16 U.S.C. 824 et 
seq.) is amended by adding after section 215A the following:

``SEC. 215B. PROHIBITION ON RETIREMENTS AND CONVERSION OF FUEL SOURCE 
FOR ELECTRIC GENERATING UNITS IN AREAS AT HIGH RISK OR 
ELEVATED RISK OF ELECTRICITY SUPPLY SHORTFALLS.

``(a) Prohibition.--No operator or partial or sole owner of a 
covered electric generating unit that is located in a covered area 
may--
``(1) retire such covered electric generating unit; or
``(2) convert the fuel source for such covered electric 
generating unit.
``(b) Exemptions.--
``(1) Operator or owner petition.--Not later than 90 days 
after the publication of the most recent long-term reliability 
assessment categorizing the relevant covered area as at high 
risk or elevated risk of electricity supply shortfalls, an 
operator or owner of a covered electric generating unit located 
in such covered area may submit to the Commission a petition 
for an exemption from a prohibition under subsection (a) with 
respect to such covered electric generating unit.
``(2) Final determination.--
``(A) Deadline.--
``(i) In general.--Except as otherwise 
provided in this paragraph, not later than 90 
days after a petition for an exemption is 
submitted to the Commission under paragraph 
(1), the Commission shall issue a final 
determination granting such exemption or 
denying the petition for such exemption.
``(ii) Petitions based on unprofitability 
or financial losses.--Subject to subparagraph 
(C), with respect to a petition for an 
exemption under this subsection for a covered 
electric generating unit that is based on 
unprofitability or sustained financial losses, 
if the Commission determines that retirement 
of, or converting the fuel source for, such 
covered electric generating unit would hinder 
the reliable operation of the bulk-power 
system, the Commission shall, not later than 
180 days after such petition is submitted to 
the Commission under paragraph (1), issue a 
final determination granting such exemption or 
denying the petition for such exemption.
``(B) Criteria.--Subject to subparagraph (C), the 
Commission shall issue a final determination granting 
an exemption under this subsection if the Commission 
determines--
``(i) that the applicable operator or owner 
of a covered electric generating unit has 
demonstrated in a petition submitted under 
paragraph (1) of this subsection that 
compliance with the relevant prohibition under 
subsection (a) will result in--
``(I) unprofitability of such 
covered electric generating unit;
``(II) sustained financial losses 
for such operator or owner; or
``(III) elevated risk to the safety 
of workers or public safety; or
``(ii) in consultation with the relevant 
Regional Transmission Organization or 
Independent System Operator--
``(I) that the applicable operator 
or owner of a covered electric 
generating unit has demonstrated in a 
petition submitted under paragraph (1) 
of this subsection for an exemption 
from the prohibition under subsection 
(a)(1) that retirement of the covered 
electric generating unit will not 
hinder the reliable operation of the 
bulk-power system;
``(II) that the applicable operator 
or owner of a covered electric 
generating unit has demonstrated in a 
petition submitted under paragraph (1) 
of this subsection for an exemption 
from the prohibition under subsection 
(a)(1), and subject to paragraph (3), 
that such operator or owner will 
replace such covered electric 
generating unit through the 
construction or acquisition of one or 
more covered electric generating units 
with comparable or greater reliability 
attributes, considering, at a minimum, 
the dispatchability and availability 
during peak system demand of the 
covered electric generating unit that 
will be retired; or
``(III) that the applicable 
operator or owner of a covered electric 
generating unit has demonstrated in a 
petition submitted under paragraph (1) 
of this subsection for an exemption 
from the prohibition under subsection 
(a)(2) that converting the fuel source 
for such covered electric generating 
unit will not diminish the covered 
electric generating unit's 
dispatchability or availability during 
peak system demand, or otherwise hinder 
the reliable operation of the bulk-
power system.
``(C) DOE grant or loan for continued operation.--
``(i) Referral.--With respect to a petition 
for an exemption under this subsection from the 
prohibition under subsection (a)(1) for a 
covered electric generating unit that is based 
on unprofitability or sustained financial 
losses, if the Commission determines that 
retirement of such covered electric generating 
unit would hinder the reliable operation of the 
bulk-power system, the Commission shall refer 
the petition to the Secretary of Energy.
``(ii) Loan or grant.--With respect to any 
petition referred to the Secretary of Energy 
under clause (i), the Secretary shall use funds 
made available to carry out this clause to make 
a grant or loan to the applicable operator or 
owner of the covered electric generating unit 
in accordance with paragraph (4).
``(iii) Treatment of petition.--If an 
operator or owner of a covered electric 
generating unit receives, not later than 180 
days after the relevant petition for an 
exemption is submitted to the Commission under 
paragraph (1), a grant or loan pursuant to 
clause (ii) of this subparagraph, such petition 
shall be deemed denied for purposes of this 
subsection.
``(3) Replacement.--An operator or owner of a covered 
electric generating unit for which an exemption is granted 
under this subsection based on a demonstration that such 
operator or owner will replace the covered electric generating 
unit through the construction or acquisition of one or more 
other covered electric generating units with comparable or 
greater reliability attributes may not retire such covered 
electric generating unit until such covered electric generating 
unit has been so replaced and such one or more other covered 
electric generating units have been placed in service.
``(4) DOE grant or loan terms and funding.--
``(A) Funds.--The Secretary of Energy may use 
unobligated amounts made available to the Secretary 
under the Infrastructure Investment and Jobs Act 
(Public Law 117-58) or Public Law 117-169 to make 
grants and loans under paragraph (2)(C)(ii) and 
subparagraph (D) of this paragraph.
``(B) Grants.--The Secretary of Energy, in 
consultation with other agencies as the Secretary 
determines appropriate, may, if the Secretary 
determines it to be necessary and appropriate, make a 
grant to an operator or owner of a covered electric 
generating unit under paragraph (2)(C)(ii) of this 
subsection in order to provide for the prudent costs 
for the operation of such covered electric generating 
unit during any time the prohibition under subsection 
(a)(1) is in effect with respect to such covered 
electric generating unit.
``(C) Loans.--
``(i) Use of loan funds.--A loan made under 
paragraph (2)(C)(ii)--
``(I) shall be made for purposes 
of--
``(aa) keeping the relevant 
covered electric generating 
unit operating; and
``(bb) providing for the 
minimum costs for the operation 
of such covered electric 
generating unit during any time 
the prohibition under 
subsection (a)(1) is in effect 
with respect to such covered 
electric generating unit; and
``(II) may be made for the 
additional purposes of--
``(aa) providing for the 
costs of upgrading the capacity 
of the relevant covered 
electric generating unit;
``(bb) if the relevant 
covered electric generating 
unit is a nuclear power plant, 
uprating such covered electric 
generating unit; or
``(cc) modernizing the 
relevant covered electric 
generating unit for purposes of 
extending its lifespan.
``(ii) Terms and conditions.--Any loan 
under paragraph (2)(C)(ii) or subparagraph (D) 
of this paragraph shall be made on such terms 
and conditions as the Secretary of Energy 
determines appropriate.
``(iii) Revenue.--Any payments of interest 
on loans made under paragraph (2)(C)(ii) or 
subparagraph (D) of this paragraph shall be 
deposited in the general fund of the Treasury 
for the sole purpose of deficit reduction.
``(D) Other loans and grants.--The Secretary of 
Energy may make a loan or grant to an operator or owner 
of a covered electric generating unit that is subject 
to an order under section 202(c) in order to provide 
for the prudent costs for the operation of such covered 
electric generating unit during any time such order in 
effect with respect to such covered electric generating 
unit.
``(5) Other considerations.--In making a final 
determination under paragraph (2)--
``(A) the Commission may not consider the 
greenhouse gas emissions of a covered electric 
generating unit, including any impacts of such 
emissions on atmospheric temperatures or weather 
systems; and
``(B) with respect to a petition for an exemption 
under this subsection for a covered electric generating 
unit that is based on unprofitability or sustained 
financial losses, the Commission shall take into 
consideration any costs alleviated by the protection 
from penalties under subsection (c).
``(6) Judicial review.--Notwithstanding section 313, an 
operator or owner of an electric generating unit who is 
adversely affected or aggrieved by a final determination issued 
by the Commission under paragraph (2) may, not later than 60 
days after the final determination is issued, file a petition 
for review of the final determination in the United States 
Court of Appeals for the District of Columbia Circuit or in the 
court of appeals for the United States for the circuit in which 
the party resides or has its principal place of business. Upon 
the filing of such petition such court shall have jurisdiction 
to affirm, set aside, or overturn such final determination.
``(c) Protection From Penalties.--An action or omission taken by an 
operator or owner of a covered electric generating unit to comply with 
a prohibition under subsection (a) shall be treated as an action or 
omission taken to comply with an order issued under section 202(c) for 
purposes of such section. No operator or owner or a covered electric 
generating unit shall be required to undertake an expenditure in 
furtherance of a Federal, State, or local environmental law or 
regulation, performance for which is excused due to the existence of a 
prohibition under subsection (a).
``(d) Standardized Criteria for Categorization of Risk.--Not later 
than 60 days after the date of enactment of this section, the Electric 
Reliability Organization shall determine and publish a standardized 
probabilistic assessment methodology and standardized criteria for 
categorizing areas as being at high risk, elevated risk, or normal risk 
of electricity supply shortfalls to be used in each long-term 
reliability assessment. Such standardized methodology and criteria 
shall be at least as rigorous as the methodology and criteria used in 
the 2024 long-term reliability assessment.
``(e) Definitions.--In this section:
``(1) Bulk-power system.--The term `bulk-power system' has 
the meaning given such term in section 215(a).
``(2) Covered area.--The term `covered area' means an area 
that--
``(A) is served by a Regional Transmission 
Organization or an Independent System Operator; and
``(B) the Electric Reliability Organization 
categorizes, in the most recent long-term reliability 
assessment, as at elevated risk or high risk of 
electricity supply shortfalls.
``(3) Covered electric generating unit.--The term `covered 
electric generating unit' means a dispatchable electric 
generating unit that--
``(A) has greater than or equal to 25 megawatts of 
nameplate capacity;
``(B) is interconnected to the bulk-power system; 
and
``(C) does not derive its primary energy input from 
intermittent renewable sources, with or without energy 
storage.
``(4) Electric reliability organization.--The term 
`Electric Reliability Organization' has the meaning given such 
term in section 215(a).
``(5) Long-term reliability assessment.--The term `long-
term reliability assessment' means an annual assessment, 
conducted by the Electric Reliability Organization pursuant to 
section 215(g), of the reliability and adequacy of the bulk-
power system in North America over a 10-year period.
``(6) Reliable operation.--The term `reliable operation' 
has the meaning given such term in section 215(a).''.
(b) Enforcement.--Not later than 1 year after the date of enactment 
of this Act, the Federal Energy Regulatory Commission shall submit to 
Congress a report on whether existing oversight and enforcement 
mechanisms for section 215B of the Federal Power Act, as added by 
subsection (a) of this section, are sufficient, including any 
recommendations to improve such mechanisms.
<all>