Reliable Grid Act of 2024
📝 TL;DR
This bill would prevent the EPA from enforcing environmental regulations that could shut down fossil fuel power plants until all regions of the U.S. electric grid are deemed to have 'Normal Risk' for reliability by NERC. It specifically targets recent EPA rules on greenhouse gases, air pollutants, and wastewater, effectively creating a regulatory freeze to prioritize grid reliability over environmental compliance.
Sign in to view AI summaries
Get plain English explanations of what this bill actually does.
Sign in with XPlain English Summary
The Reliable Grid Act of 2024 (HR 10519) is legislation that would significantly restrict the Environmental Protection Agency's authority to enforce regulations that could force electric power plants to shut down. Introduced by Rep. Burlison on December 19, 2024, the bill responds to concerns about electric grid reliability as coal and natural gas plants retire while renewable energy sources like wind and solar increase their share of electricity generation. The bill's core mechanism is to prohibit EPA enforcement of any rule that restricts the operation of electric generating units until the North American Electric Reliability Corporation (NERC) assesses all areas of the U.S. bulk power system as having 'Normal Risk' for reliability. This would effectively halt implementation of several pending EPA regulations targeting fossil fuel power plants until grid reliability concerns are resolved according to NERC's standards.
Detailed Analysis
The bill operates through two primary mechanisms: a lengthy 'Sense of Congress' declaration that builds the political and policy case against EPA regulations, followed by a binding legal restriction on EPA enforcement authority in Section 2(b). The Sense of Congress section spans 11 detailed findings that characterize EPA regulations as the 'primary cause' of electricity reliability challenges, specifically citing three pending EPA rules from 2023-2024 targeting greenhouse gas emissions, hazardous air pollutants, and wastewater from power plants. This section also disputes EPA's claims that Clean Air Act regulations haven't impacted grid reliability, pointing to capacity issues in Texas and California as counterevidence.
The operative legal provision in Section 2(b) creates a conditional moratorium: 'The Administrator may not enforce a rule or regulation restricting the continuous, previously-permitted operation of any electric generating unit that provides dispatchable capacity unless and until all areas served by the bulk-power system are assessed to be 'Normal Risk' by NERC.' This language is carefully crafted to apply only to plants that provide 'dispatchable capacity' - meaning they can be turned on and off as needed - which would typically include fossil fuel plants but exclude most wind and solar facilities.
The bill's definitions section establishes that the trigger for lifting this moratorium is tied to NERC's 2023 Long-Term Reliability Assessment, which identified various regions as having elevated reliability risks. This creates a high bar for EPA authority to resume, as it requires all areas of the bulk power system to achieve 'Normal Risk' status simultaneously. The bill also calls for new grid reliability standards that would account for the intermittent nature of renewable energy sources, suggesting that current planning methodologies overestimate the reliability contributions of wind and solar power.
Notably, the bill does not prevent EPA from developing new regulations - only from enforcing existing or future rules that restrict power plant operations. This distinction could create a situation where regulations are finalized but cannot be implemented, potentially leading to legal challenges and regulatory uncertainty. The legislation also doesn't define what constitutes 'restricting continuous operation,' leaving room for interpretation about which types of environmental requirements would trigger the enforcement prohibition.
🎯 Key Provisions
EPA Enforcement Moratorium: Prohibits EPA from enforcing any rule that restricts the operation of electric generating units that provide dispatchable capacity until NERC assesses all bulk power system areas as 'Normal Risk.' This effectively halts implementation of environmental regulations affecting power plants. (Section 2(b) - 'The Administrator may not enforce a rule or regulation restricting the continuous, previously-permitted operation of any electric generating unit that provides dispatchable capacity unless and until all areas served by the bulk-power system are assessed to be Normal Risk by NERC')
Dispatchable Capacity Focus: The enforcement prohibition specifically applies only to generating units that provide 'dispatchable capacity,' meaning power sources that can be controlled and dispatched on demand. This primarily protects fossil fuel plants while excluding most renewable sources. (Section 2(b) - restriction applies to 'any electric generating unit that provides dispatchable capacity')
NERC Risk Assessment Trigger: Uses the North American Electric Reliability Corporation's risk assessments as the benchmark for when EPA authority can resume. All areas must simultaneously achieve 'Normal Risk' status before EPA can enforce power sector regulations. (Section 2(c)(4) - defines 'risk report' as 'the assessment 2023 Long-Term Reliability Assessment, published by NERC in December 2023')
Specific EPA Rules Targeted: Explicitly identifies three recent EPA rulemakings as problematic: greenhouse gas standards for power plants, hazardous air pollutant standards for coal and oil plants, and wastewater discharge standards for steam electric plants. (Section 2(a)(4) - lists regulations including 'New Source Performance Standards for Greenhouse Gas Emissions' and 'National Emission Standards for Hazardous Air Pollutants')
Grid Reliability Standards Reform: Calls for new grid reliability standards that account for the intermittent nature of renewable energy, suggesting current planning overestimates wind and solar reliability contributions during peak demand and extreme weather. (Section 2(a)(10) - FERC and NERC should 'develop new grid reliability standards for the United States that acknowledge unreliable solar and wind power generators can perform near-zero of their capacity during peak demand')
Waiver Authority Request: Suggests EPA should proactively identify power plants at risk of premature retirement and provide regulatory waivers to maintain grid reliability, particularly given warnings of an impending reliability crisis. (Section 2(a)(9) - EPA 'should, in coordination with utilities and power generators, identify the electric power generation in danger of retiring prematurely from existing regulations and provide waivers where possible')
👥 Impact Analysis
Direct Effects If enacted, this bill would immediately halt EPA's ability to enforce environmental regulations that could lead to power plant closures, effectively creating a regulatory freeze for the electricity sector. Existing coal and natural gas plants that might otherwise face shutdown due to environmental compliance costs would gain protection from EPA enforcement actions. Three specific EPA rules cited in the bill - covering greenhouse gas emissions, hazardous air pollutants, and wastewater discharge - would be rendered unenforceable until grid reliability improves nationwide.
The legislation would also shift significant influence over environmental policy to NERC, a nonprofit organization primarily focused on grid reliability rather than environmental protection. Since NERC's 2023 assessment identified multiple regions with elevated reliability risks, the enforcement moratorium could persist for years. Power companies would gain regulatory certainty that they won't face EPA enforcement actions that could force plant closures, potentially affecting billions of dollars in compliance investments and plant retirement decisions.
Indirect Effects The bill could fundamentally alter the balance between environmental protection and energy reliability in federal policy, potentially emboldening other efforts to subordinate environmental regulations to energy security concerns. It may also create legal challenges regarding EPA's authority under existing environmental statutes like the Clean Air Act, as courts would need to determine whether this legislation conflicts with EPA's statutory mandates. The focus on 'dispatchable capacity' could inadvertently slow the transition to renewable energy by protecting fossil fuel plants from market forces, potentially affecting long-term climate goals and energy market dynamics.
Affected Groups - Electric utilities operating coal and natural gas plants - Environmental advocacy organizations - State utility commissions - Renewable energy developers - Industrial electricity consumers - Public health advocates - NERC and regional grid operators - EPA and other federal agencies
Fiscal Impact The bill does not include specific funding provisions or direct federal expenditures. However, it could have significant indirect fiscal impacts by allowing older, potentially less efficient power plants to continue operating rather than retiring, which could affect electricity costs and infrastructure investments. The legislation might reduce compliance costs for power companies by halting EPA enforcement, but could also delay investments in cleaner energy infrastructure. No Congressional Budget Office score is mentioned, and the bill does not establish any new programs requiring federal appropriations.
📋 Latest Action
12/19/2024
Referred to the House Committee on Energy and Commerce.