Energy, Climate, & Grid Security

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) delivered the following opening remarks at today’s Energy, Climate, and Grid Security Subcommittee hearing titled “The Fiscal Year 2025 Nuclear Regulatory Commission Budget.” “Welcome Chairman Hanson and Commissioners. It is good to have you back before the Committee. “American leadership in nuclear technology is critical to our economic and national security. “It’s how we win the future with reliable, affordable, and clean energy to power our way of life, keep the lights on, build stronger communities, and achieve economic prosperity. “The Nuclear Regulatory Commission’s safety mission serves a critical role in the success of the American nuclear industry. “Making sure NRC performs this mission to achieve the great promise of nuclear energy is your core responsibility.” TAKING ACTION TO BOLSTER NUCLEAR ENERGY “Since you last testified before the Committee in June of last year, Congress developed and enacted several important laws to help unleash the full benefits of American nuclear energy. “This Committee led on passing legislation to eliminate reliance on Russian uranium and legislation to secure and build our own nuclear fuel industry right here in the U.S. “We also extended the Price Anderson Act for forty years, ensuring long-term liability coverage for reactors, which is essential for revitalizing the industry and getting more reliable, affordable power into our homes and businesses. “And, perhaps most relevant for today, the Committee developed the Atomic Energy Advancement Act , landmark legislation signed into law earlier this month as the ADVANCE Act . “This legislation will establish requirements and incentives to expand the use of nuclear energy and its many benefits for the United States. “It will drive a more efficient, timely, and predictable NRC licensing process, which will encourage investment by reducing licensing costs for advanced technologies and facilitate the deployment of innovative new nuclear energy technologies—from reactors, to fusion, to fuels and fuel facilities. “Taken together, these laws will strengthen our ability to compete globally and help power our future.” RESTORING THE MISION OF NRC “The ADVANCE Act takes significant steps to align NRC’s mission with the policy of the Atomic Energy Act of 1954 to ‘make the maximum contribution to the general welfare…increase the standard of living [...] and strengthen free competition and private enterprise [...] through the development, use, and control of atomic energy.’ “With the ADVANCE Act , Congress spoke loud and clear about NRC’s role. “NRC cannot be a barrier to innovation and deployment. “A strong American nuclear industry is critical to U.S. energy security by helping us compete with Russia and China, and meet our growing energy needs here at home. “With this legislation, NRC now has the tools and direction from Congress necessary to unleash American nuclear energy and get back to its core mission. “America already has the best operating fleet in the world. “The performance and safety of our nuclear plants is unmatched. “And there are numerous promising and advanced nuclear technologies that simply require NRC licensing approval to begin deployment. “This hearing is an opportunity for this committee to better understand how you plan to implement these new laws as Congress intended and meet the urgency of the moment. “A robust and growing nuclear industry is critical for reducing emissions, and providing reliable, affordable, clean energy to the American people. “The Energy and Commerce Committee, in coordination with our Senate partners, has worked hard this Congress to come together on solutions to unleash America’s nuclear energy that will improve people’s lives and make our country stronger and more prosperous. “I look forward to discussing next steps to ensure the NRC is implementing the law effectively.” 

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.

Washington D.C. — House Energy and Commerce Committee Chair Cathy McMorris Rodgers (R-WA) and Subcommittee on Energy, Climate, and Grid Security Chair Jeff Duncan (R-SC) today sent a letter to Federal Energy Regulatory Commission (FERC) Chairman Willie Phillips and the FERC Commissioners demanding information on how FERC is preparing for the devastating impacts that will be caused by EPA’s Clean Power Plan 2.0 (CPP2.0) on the electric grid.  KEY LETTER EXCERPT: "In addition to impermissibly infringing upon state responsibilities over electric generation, the EPA’s final rule imposes unrealistic standards with unproven compliance strategies on existing coal-fired power plants and new natural gas units. Despite widespread warnings from stakeholders over the reliability catastrophe that could ensue from the rule, the EPA failed to address these concerns in the final rule and did not amend the rule to reflect the formal input of the Federal Energy Regulatory Commission (FERC) and North American Electric Reliability Corporation (NERC).”   “FERC is unique among federal regulators in having a mandate to ensure the reliability and affordability of the grid pursuant to the Federal Power Act. As Commissioners of FERC, you have the responsibility to carry out that mandate. As a result of this rule, FERC could be forced to intervene using available measures to prevent additional closures of dispatchable generators to prevent reliability and resource adequacy crises. How and when those measures are utilized could make the difference between maintaining an affordable and reliable electric grid or a future of rolling blackouts and unaffordable electric rates.”   BACKGROUND: Under the Clean Power Plan 2.0, the EPA has mandated strict, costly, and untested standards on both new and existing natural gas and remaining coal generators.  The Energy and Commerce Committee held hearings on June 6, 2023 and November 14, 2023 to discuss the harmful impact of the EPA’s Clean Power Plan 2.0 (CPP2.0) on America’s energy security and grid reliability.    On June 6, 2023, Chair Rodgers led a letter to EPA from all Energy and Commerce Republicans on the agency’s CPP2.0.  On July 31, 2023, Chair Rodgers and former Subcommittee on Environment, Manufacturing, and Critical Materials Chair Bill Johnson (R-OH) sent a letter calling on the EPA to extend the comment period for their new CPP2.0 proposal.   On November 7, 2023, Chair Rodgers, Subcommittee on Energy, Climate, and Grid Security Chair Jeff Duncan (R-SC), and former Subcommittee Chair Johnson sent a letter to the Federal Energy Regulatory Commission (FERC) on how new EPA regulations, including CPP2.0, would be detrimental to the U.S. electric grid. On November 14, 2023, Chair Rodgers, Subcommittee on Oversight and Investigations Chair Morgan Griffith (R-VA), and former Subcommittee Chair Johnson sent a letter calling on EPA Administrator Michael Regan to withdraw the overreaching and unworkable CPP2.0 proposal. The Chairs requested Chairman Phillips provide responses to the following by July 30, 2024: 1. Please provide all communications between the Chairman, Commissioners, and FERC staff with the EPA administrator and EPA staff relating to the development of the proposed Clean Power Plan 2.0 rule. 2. Do any generators participating in the FERC-jurisdictional markets utilize carbon capture technology at a sustained capture rate of 90 percent? Do any generators participating in the FERC-jurisdictional markets use carbon dioxide pipelines to transport captured carbon dioxide? 3. Did FERC participate in the Office of Management and Budget’s Office of Information and Regulatory Affairs interagency review process to weigh in on EPA’s Clean Power Plan 2.0 rule? a. If not, please explain why FERC did not participate in this process. 4. What plans does FERC have in place to work with jurisdictional organizations and stakeholders to prevent grid disruptions stemming from the Clean Power Plan 2.0? Please provide a detailed explanation of your plans and the stakeholders with whom you are working. 5. Section 202(c) of the Federal Power Act allows FERC, when it determines that an emergency exists, to “temporarily order connections of facilities, and generation, delivery, interchange, or transmission of electricity as determined to best meet the emergency and serve the public interest.” a. Do you expect that Section 202(c) will be needed to prevent blackouts and brownouts, as a result of the Clean Power Plan 2.0? b. Do you believe that Section 202(c) is an effective tool to prevent blackouts and brownouts? If not, what specifically about the 202(c) process would need to change in order to make it effective? c. What steps must you take to make the decision to trigger emergency measures under 202(c)? Please provide a detailed explanation of any requests or work pertaining to a 202(c) order, including with other federal, state, and private parties. d. Section 61002 of the FAST Act, “Resolving Environmental and Grid Reliability Conflicts,” amended Section 202(c) to clarify that an emergency order issued by FERC will override federal, state, and local environmental laws. i. Have you discussed Section 61002 with the EPA or the Department of Energy?   ii. Please explain the substance of any such discussions.  6. A waiver under Section 202(c) allows a resource to operate for 90 days. Given that the Clean Power Plan 2.0 could create reliability and compliance issues over multiple years and have considerable impacts on the viability of the markets you regulate, is a new longer-term mechanism needed to maintain resources for reliability? Is a new longer-term mechanism needed to maintain resource adequacy?  7. Has FERC assessed the market impacts of the final rule and, if not, when will FERC do so?   a. How will this rule affect capacity and energy market prices?  b. How will these rules affect investment signals for new dispatchable resources, like natural gas? Will resources be able to recover the necessary revenues through the FERC-jurisdictional markets? 8. How does FERC propose to allow resources affected by the rule to retain necessary revenues in the market?   a. If resources affected by the EPA’s rule are unable to compete in the relevant markets, what amount of resources will abruptly retire?  b. What impact(s) will this have on resource adequacy? c. What impact(s) will this have on reliability, especially during peak conditions during summer and winter? CLICK HERE to read the full letter. CLICK HERE to read exclusive coverage from the Washington Examiner.