Energy, Climate, & Grid Security

Washington, D.C. — House Energy and Commerce Committee Chair Cathy McMorris Rodgers (R-WA), Energy, Climate, and Grid Security Subcommittee Chair Jeff Duncan (R-SC), and Environment, Manufacturing, and Critical Materials Subcommittee Chair Buddy Carter (R-GA) yesterday sent a letter to Department of Energy (DOE) Secretary Jennifer Granholm urging the Department of Energy to prioritize the onshoring of our critical mineral supply chains following the Chinese Communist Party’s July 1 declaration that rare earth metals were the “property of the state.” CLICK HERE to read exclusive coverage by E&E News. KEY QUOTE “Critical minerals are essential to America’s economy and to America’s capacity to manufacture goods and high-tech devices. Many critical minerals are essential to the energy sector, as they are needed to manufacture solar panels, batteries, and electrical equipment. As the DOE is aware, the CCP announced limitations on gallium, germanium, natural and synthetic graphite last October. These critical minerals are vital for our defense and energy technologies and are listed as critical and at high risk of supply disruption. On November 21, 2023, the Committee on Energy and Commerce sent a letter raising security concerns over the CCP limiting exports of gallium, germanium, natural graphite, and synthetic graphite. Your response to that letter failed to address these concerns and lacked basic information to help Members of Congress assess the risks of America’s increasing dependence on CCP controlled minerals.” [...] “The administration should prioritize the onshoring of domestic mining and processing industry for these critical minerals and materials. The answer to a lack of mining and processing is not to extend credits to companies using minerals from a major geopolitical adversary that relies on child labor and exploitation.” Chairs Rodgers, Duncan, and Carter asked Secretary Granholm to answer the following questions by August 13, 2024: Are you concerned by reports that the Chinese government has declared rare earth metals property of the government of China? What actions will the DOE take in response to the Chinese government’s announcement? Please describe any actions DOE has taken to prioritize onshoring domestic mining and processing of synthetic and natural graphite. Please describe any actions DOE has taken to prioritize onshoring domestic mining and processing of gallium and germanium. How will DOE work to expedite projects to ensure a secure and stable supply chain of these critical minerals and materials given these recent announcements? What actions will DOE take to mitigate potential domestic supply shortages of these minerals? Were you consulted about the Treasury Department’s decision to extend the graphite exemption through 2027? Did you advise or recommend that the White House extend the graphite exemption through 2027? Please explain. CLICK HERE to read the letter to Secretary Granholm. CLICK HERE to read the November 21, 2023, letter to Secretary Granholm raising concerns over the CCP’s decision to limit exports of gallium, germanium, natural graphite, and synthetic graphite.

Washington D.C. — House Energy and Commerce Committee Chair Cathy McMorris Rodgers (R-WA) delivered the following opening remarks at today’s Energy, Climate, and Grid Security Subcommittee hearing titled “The Fiscal Year 2025 Federal Energy Regulatory Commission Budget.”    “I am pleased that all five commissioners are here today to offer their testimony. Welcome back to Chairman Phillips and Commissioner Christie. “I would also like to offer a warm welcome to FERC’s newest members, Commissioners Rosner , See, and Chang. “FERC was established by Congress as an independent agency within the Department of Energy through the Department of Energy Organization Act of 1977. “While FERC is an independent agency, it still answers to Congress and must carry out the mission that Congress directs it to. “Congress established FERC as an economic regulator, to ensure that electricity, natural gas, and oil is delivered to the American people safely, securely, and at a reasonable price. “In order to achieve this, we need solutions that bring down costs for Americans, who are currently suffering under the burden of exploding costs across the board, including rising electric and utility rates. “Expanding energy with an all-of-the-above strategy will ensure Americans won’t have to worry about rationing energy in the summer or winter months or having to make tough choices about whether to pay the electric bill or buy groceries for their family.” CHALLENGES FACING AMERICA’S ENERGY SYSTEMS “That requires that FERC adhere to its core mission, especially as America’s energy and economic security is increasingly under attack by the Biden Administration and their radical rush-to-green agenda. “Over the last four years, this administration and Democrats have wreaked havoc on our nation’s economy, energy prices, and our grid and pipeline infrastructure. “They have chosen to prioritize the interests of radical environmental activists at the expense of the American people, eliminating jobs and investments for American energy workers, making us dangerously dependent on the Chinese Communist Party for our energy supply chains, and forcing the early retirement of our most affordable and reliable power plants. “Given their independence and mission, FERC should be stepping up and taking action to protect consumers. But sadly, it seems that FERC has lost sight of its mission. “FERC has the responsibility to ensure that rates for the interstate transmission of electricity and natural gas is 'just and reasonable.' “It also has a responsibility to issue timely permits for pipelines, hydropower projects, and LNG export facilities when they are in the 'public interest’ of Americans. “The commission must do more to insolate itself from the Democrat’s ‘rush-to-green' agenda and refocus on the core Congressionally directed mission.” ENERGY PRICES FOR AMERICANS “FERC also recently announced a new transmission rule, which advanced along partisan lines. “The new rule will raise energy prices and trample on states’ authority over their energy infrastructure. “It will force some states to shoulder the costs for transmission lines with no actual benefits for their own communities, especially in rural areas. “The commission has also slow walked permitting for pipelines and LNG facilities, which directly impacts the supply and price of natural gas. “At a time when more than half of the nation is at elevated risk of blackouts, we need to do more to unleash American energy, rather than throttle it. “That starts with meaningful infrastructure permitting reforms that reduce energy costs for Americans and ensure the U.S. can reach its full energy potential.” LOOKING FORWARD “I cannot say this enough: energy is foundational to everything we do. “It’s what keeps the lights on, heats our homes, and powers our hospitals, businesses, and transportation. “Access to affordable, reliable energy over the past century has raised our standard of living, driven technological innovation, and improved the health and wellbeing of all Americans. “We need to continue protecting and building on that legacy. “Today’s hearing is an opportunity for Members to hold FERC accountable and understand how recent actions, like their new transmission rule, will impact people’s financial security and our nation’s energy security.”

Washington D.C. — House Energy and Commerce Subcommittee on Energy, Climate, and Grid Security Chair Jeff Duncan (R-SC) delivered the following opening remarks at today’s hearing titled “The Fiscal Year 2025 Federal Energy Regulatory Commission Budget.”  “Thank you to the five commissioners for appearing before the Energy, Climate, and Grid Security Subcommittee to discuss the recent activities of the Federal Energy Regulatory Commission.  “Chairman Phillips and Commissioner Christie, it is good to have you back. Commissioners Rosner, See, and Chang, congratulations on your recent confirmations.  “Chairman Phillips, I’d like to take a moment to commend you for your efforts to clear some of the backlog of major natural gas pipeline projects, as well as your recent vote in support of U.S. LNG exports.”   RETURNING FERC TO ITS CORE MISSION   “America is blessed with significant natural resources, and FERC plays a key role in dictating the trajectory of our energy economy. “Despite our abundance of fossil fuel, nuclear, and renewable energy resources, consumers have been hammered by soaring energy costs, particularly electricity. “The latest inflation data from June shows that electricity price Inflation exceeds the Consumer Price Index by 47 percent, and electricity rates have increased by approximately 20 percent since President Biden took office. “FERC’s mission is to, and I quote, '[a]ssist consumers in obtaining reliable, safe, secure, and economically efficient energy services at a reasonable cost through appropriate regulatory and market means, and collaborative efforts.’  “Despite the positive steps forward on natural gas pipelines and LNG facilities, we are concerned the Commission is failing to adhere to this mission in other aspects.”  GRID RELIABILITY   “No portion of FERC’s mission lends itself to being an environmental regulator.   “Yet, we are concerned the Commission has strayed from its responsibility as an economic regulator, to an entity focused on assisting the build-out of so-called 'green-energy' technologies. “This is happening despite continued alarms from the North American Electric Reliability Corporation (NERC) and grid operators. “NERC’s 2024 Summer Reliability Assessment highlighted five regions of the country that are at risk of insufficient operating reserves in above-normal weather conditions. Grid operators around the nation are sounding the alarm.”  FERC ORDER 1920   “FERC’s recent Order 1920 on regional transmission planning and cost allocation—which Energy and Commerce Republicans have opposed, will drive up costs and make the grid less reliable. “I understand we will hear a different opinion on the Order from our Democratic colleagues today. That is fine, this Committee is a place of debate. “However, it is important to clarify that a recent letter, sent by 33 State Utility Commissioners supporting Order 1920, represents only a small fraction of the 238 utility regulators around the country. “One of Republicans’ main concerns with Order 1920 is that it pursues a skewed 'categories of factors' approach to transmission planning. Prioritizing blue-state renewable portfolio standards, 'green’ power subsidies designed to shift the generation mix, corporate emissions reduction commitments, and the Biden administration’s goal of achieving a carbon-free power sector by 2035. “The ultimate purpose here is clear — prioritize those projects meant to serve an environmental agenda while creating a set of seven broad benefits designed to assist transmission developers in socializing costs across a broader rate base.”  TRANSMISSION   “Republicans are not opposed to critical transmission projects that are needed to keep the lights on and utility bills affordable. “However, we are opposed to agency actions that will raise prices on consumers without reliability or cost benefits. “Transmission is an increasingly costly component of electricity rates. “The nation’s largest grid operator, PJM, has reported that the transmission component of wholesale power costs has tripled over the last decade and now makes up almost one-third of wholesale power costs. “Order 1920’s 'categories of factors' for transmission planning skirts this reality by not mentioning a factor every member of Congress and Public Utility Commissioner should care about — reducing costs on ratepayers.” EPA REGULATIONS AND GRID RELIABILITY “This concerning transmission planning policy is occurring in concert with a slew of EPA regulations that will result in reliable generation closing before the end of its useful life. “Members of the Committee on Energy and Commerce have heard time and again how EPA’s actions such as the Clean Power Plan 2.0, revised particulate matter standard, interstate transport for ozone, mercury and air toxics rule, coal ash disposal, and effluent limitation guidelines will increase costs on utilities, push them to retire reliable assets, and ultimately increase energy costs on the American people.   “Chairman Phillips, publicly you have emphasized that you care deeply about affordability and reliability.  “I take you at your word and view this as an opportunity to have a candid discussion about how FERC’s actions are impacting these two essential goals.”

Washington, D.C. — House Energy and Commerce Committee Chair Cathy McMorris Rodgers (R-WA), Energy, Climate, and Grid Security Subcommittee Chair Jeff Duncan (R-SC), and Environment, Manufacturing, and Critical Materials Subcommittee Chair Buddy Carter (R-GA) yesterday sent a letter to Department of Energy (DOE) Secretary Jennifer Granholm urging the Department of Energy to prioritize the onshoring of our critical mineral supply chains following the Chinese Communist Party’s July 1 declaration that rare earth metals were the “property of the state.” CLICK HERE to read exclusive coverage by E&E News. KEY QUOTE “Critical minerals are essential to America’s economy and to America’s capacity to manufacture goods and high-tech devices. Many critical minerals are essential to the energy sector, as they are needed to manufacture solar panels, batteries, and electrical equipment. As the DOE is aware, the CCP announced limitations on gallium, germanium, natural and synthetic graphite last October. These critical minerals are vital for our defense and energy technologies and are listed as critical and at high risk of supply disruption. On November 21, 2023, the Committee on Energy and Commerce sent a letter raising security concerns over the CCP limiting exports of gallium, germanium, natural graphite, and synthetic graphite. Your response to that letter failed to address these concerns and lacked basic information to help Members of Congress assess the risks of America’s increasing dependence on CCP controlled minerals.” [...] “The administration should prioritize the onshoring of domestic mining and processing industry for these critical minerals and materials. The answer to a lack of mining and processing is not to extend credits to companies using minerals from a major geopolitical adversary that relies on child labor and exploitation.” Chairs Rodgers, Duncan, and Carter asked Secretary Granholm to answer the following questions by August 13, 2024: Are you concerned by reports that the Chinese government has declared rare earth metals property of the government of China? What actions will the DOE take in response to the Chinese government’s announcement? Please describe any actions DOE has taken to prioritize onshoring domestic mining and processing of synthetic and natural graphite. Please describe any actions DOE has taken to prioritize onshoring domestic mining and processing of gallium and germanium. How will DOE work to expedite projects to ensure a secure and stable supply chain of these critical minerals and materials given these recent announcements? What actions will DOE take to mitigate potential domestic supply shortages of these minerals? Were you consulted about the Treasury Department’s decision to extend the graphite exemption through 2027? Did you advise or recommend that the White House extend the graphite exemption through 2027? Please explain. CLICK HERE to read the letter to Secretary Granholm. CLICK HERE to read the November 21, 2023, letter to Secretary Granholm raising concerns over the CCP’s decision to limit exports of gallium, germanium, natural graphite, and synthetic graphite.

Washington, D.C. — House Energy and Commerce Committee Chair Cathy McMorris Rodgers (R-WA) and Oversight and Acoountability Committee Chair James Comer (R-KY) sent letters to eight federal agencies today following the recent Supreme Court decision on Loper Bright Enterprises v. Raimondo , in which the court overruled Chevron deference. Science, Space, and Technology Committee Chair Frank Lucas (R-OK) and House Agriculture Committee Chair GT Thompson (R-PA) joined Chairs Rodgers and Comer on an additional letter sent to the Environmental Protection Agency. KEY LETTER EXCERPT: “We write to call to your attention Loper Bright Enterprises v. Raimondo, a recent Supreme Court decision that precludes courts from deferring to agency interpretations when the statutes are ambiguous. In its decision, the Court explicitly overruled Chevron U.S.A. Inc. v. Natural Resources Defense Council, Inc., 467 U.S. 837 (1984), which required deference to agency interpretations of ambiguous statutes. By allowing such deference, the Court in Chevron enabled the ‘Administrative State’ to usurp the legislative authority that the Constitution grants exclusively to Congress in Article I. The Chevron decision led to broader, more costly and more invasive agency regulation of Americans’ lives, liberty, and property.   “Perhaps no administration has gone as far as President Biden’s in issuing sweeping Executive edicts based on questionable assertions of agency authority. The Biden administration has promulgated far more major rules, imposing vast costs and paperwork burdens, than either its most recent predecessors. Many of these rules...have been based on overreaching interpretations of statutes enacted by Congress years ago, before the issues now regulated were even imagined.   “The expansive Chevron deference has undermined our system of government, creating an unaccountable Administrative State. Thankfully, the Court has now corrected this pattern, reaffirming that ‘[i]t is emphatically the province and duty of the judicial department to say what the law is.’ Given the Biden administration’s record of agency overreach, we are compelled to underscore the implications of Loper Bright and remind you of the limitations it has set on your authority.”   CLICK HERE to read the letter to the Environmental Protection Agency. CLICK HERE to read the letter to the Federal Communications Commission.  CLICK HERE to read the letter to the Consumer Product Safety Commission.  CLICK HERE to read the letter to the Federal Trade Commission.  CLICK HERE to read the letter to Department of Commerce.   CLICK HERE to read the letter to the Department of Energy.  CLICK HERE to read the letter to the Federal Energy Regulatory Commission.  CLICK HERE to read the letter to the Nuclear Regulatory Commission.  CLICK HERE to read the letter to the National Highway Transportation and Safety Administration.

Washington D.C. — In a letter to the Federal Energy Regulatory Commission (FERC), House Energy and Commerce Committee Chair Cathy McMorris Rodgers (R-WA) and Energy, Climate, and Grid Security Subcommittee Chair Jeff Duncan (R-SC) are pressing for more information on FERC’s ability to address the growth in electricity demand, particularly from the rapid growth of AI data centers. KEY LETTER EXCERPT: “After years of minimal growth, electricity demand in the United States is projected to grow nationally at a significant pace through the end of the decade. It is anticipated that much of this demand growth will come from a surge in the number of data centers and the growing uses of artificial intelligence (AI) by data centers, onshoring of industry and manufacturing, and increased electrification. Estimates show annual growth of 5 to 6 percent through the end of the decade, a tenfold increase in the growth rate from current levels. By the end of the decade, data centers, which are driving increases in electricity demand, could consume as much as 9.1 percent of all electricity in the United States. "Unlike many sources of demand that consume electricity at a lower energy density, data centers consume large quantities of power at a near constant level throughout the year. This surge in demand for reliable and dispatchable baseload generation comes at a time when the NERC has repeatedly raised concerns over the adequacy and reliability of the grid. These risks are due to a confluence of factors, including state and federal policies that have forced premature retirements of reliable generation without adequate replacement generation resources and electric infrastructure. FERC’s recent summer assessment lists data center demand growth as a driver for increased demand while acknowledging that supply shortages are possible this summer.” BACKGROUND: The Energy and Commerce Subcommittee on Energy, Climate, and Grid Security held a hearing on June 4, 2024 to discuss the energy demands of emerging technologies, like Artificial Intelligence, and how to ensure that America continues to be a technological leader. Some experts project a ten-fold increase in the growth rate of new power demand, compared with the past decade. Data centers that process AI and digital transactions are a major driver of this increase in demand. Biden Administration actions, like the Clean Power Plan (CPP) 2.0, are accelerating the retirement of baseload power sources, which are essential for providing the 24/7/365 energy needed to power our technological future. E&C Republicans led a join resolution of disapproval on June 5, 2024 to halt President Biden’s CPP 2.0 which will shut down critical baseload energy generation. Chair Rodgers and Carter released a statement on April 25, 2024 blasting the EPA’s devastating power plant rules that would shut down American energy. The Chair requested the FERC Commissioners provide the following information by July 30, 2024: Explain what FERC is doing to assess the challenges of this new demand growth from data centers and industrial sectors. Explain what options FERC is considering to address this new demand growth to assure reliable, affordable delivery of power in the FERC regulated markets. What effect will demand growth have on capacity prices? Are the FERC jurisdictional wholesale markets prepared to withstand retirement projections and coinciding demand increase projections? The potential for co-locating data centers or industrial loads presents the risks of taking baseload, reliable generation off the grid at the expense of ratepayers. Is FERC monitoring the potential for merchant generators to enter into behind-the-meter agreements with data centers? What actions is FERC considering to address the incentives and impacts of any loss of load due to out-of-market financial arrangements? If state and federal policies do not adjust to preserve adequate baseload generation, how will the growing demand for reliable energy add additional costs and strain to our grid? CLICK HERE to read the full letter.