EXCLUSIVE: House Energy and Commerce Committee leaders are looking into how the Federal Energy Regulatory Commission plans to interact with the Biden administration’s power plant emission rules, coming amid criticisms from Republicans that the rule threatens reliability to the grid and affordable energy prices.
The details: In a new letter shared with the Washington Examiner, E&C Chairwoman Cathy McMorris Rodgers , along with subcommittee chairmen Jeff Duncan and Buddy Carter , asked how the independent agency is preparing for the rule’s impacts and planning to “mitigate its most serious effects.”
Key lines: “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.”
Some background: The Environmental Protection Agency finalized a suite of rules aimed at cutting pollution from power plants. One of the rules regulates existing coal-fired and new natural gas-fired power plants operating past 2039, and requires them to control 90% of their pollution. Other rules would strengthen mercury and air toxics standards, reduce pollutants discharged through wastewater, and require the safe management of coal ash. The rules are expected to cut emissions by 75% by 2035, compared to levels in 2005.
However: Republicans have railed against the slate of regulations, arguing that they could hamper grid reliability and drive a pace of fossil fuel plant retirements that would pose risks to the industry.
The letter from House lawmakers follows a December 2023 letter from Sen. John Barrasso and Shelley Moore Capito , raising similar concerns and imploring FERC to continue discussing with the EPA on how to navigate the regulations without harming reliability.
What the latest letter is asking for:
Communications between FERC and EPA staff relating to the development of the “Clean Power Plan 2.0” rule. If any generators under FERC’s jurisdiction use carbon capture technology that could adhere to the rules’ requirements. Whether FERC participated in the interagency review process to weigh in on the rule. Whether it will be necessary for the agency to utilize a section of the Federal Power Act – which governs the wholesale transmission and sale of electricity – to temporarily order the use of fossil power plants to prevent blackouts and brownouts. The letter also asks if the body has discussed using this provision with the EPA or the Energy Department. Whether the body has assessed market impacts of the rule, such as capacity and energy market prices. How FERC will propose to allow resources affected by the rule to retain “necessary revenues” in the market.
The lawmakers request that a response be provided by July 30.
A spokesperson for FERC told the Washington Examiner the agency will respond to the letter “in due course.”
Looking ahead: FERC will hold a two-hour reliability technical conference on Oct. 16, where it’s expected the body will discuss the impacts of the power plant rule, according to a notice in the Federal Register. Also, an E&C subcommittee will hold a hearing on FERC’s budget for fiscal year 2025 next Wednesday.
Welcome to Daily on Energy, written by Washington Examiner Energy and Environment writer Nancy Vu ( @NancyVu99 ), with help from policy editor Joseph Lawler . Email nancy.vu@washingtonexaminer dot com for tips, suggestions, calendar items, and anything else. If a friend sent this to you and you’d like to sign up, click here . If signing up doesn’t work, shoot us an email, and we’ll add you to our list.
CLIMATE DEFIANCE PROTEST AT THE DNC: Young climate activists are planning to protest at the DNC’s headquarters this Friday, following reports that Democrats are expected to hold a “virtual roll call” to select the party’s presidential nominee ahead of the party’s convention next month.
In a post to X , the group said they would blockade the HQ, arguing that the DNC’s plan would be a “profound, profound betrayal of the party base and everything that the party claims to stand for.” The group argues that if activists don’t work to block the effort, Democrats will end up with Biden as the party’s nominee, and will lose to Trump in November.
An update: Democrats are still planning on moving forward with the roll call vote, Politico reports – but will delay voting on the nomination until at least Aug. 1.
The significance: Climate Defiance has been staunchly critical of Biden’s record on climate change, arguing he hasn’t gone enough to curb emissions and rein in fossil fuels. Further concerns regarding the president’s ability to govern began to emerge following the debate between Biden and former President Donald Trump – catalyzing intra-party calls for Biden to step down. In addition to Climate Defiance, the Sunrise Movement – another youth-led climate organization – called for Biden to quit the race.
IN OTHER FERC NEWS…: The independent agency will have to reconsider a proposed liquefied natural gas terminal in Louisiana following an appellate court ruling that found FERC failed to address the environmental impacts of the project – but stopped short of pulling project approval altogether.
In a Tuesday ruling, the U.S. Court of Appeals for the District of Columbia stated that FERC “inadequately explained its failure to determine the environmental significance” of the project’s GHG emissions, along with the cumulative effects of its nitrogen dioxide emissions. The court found, however, the body did satisfy its obligations to consider alternatives to the project – and remanded the petitions “for further consideration.”
Who was the petitioner? Environmental group Healthy Gulf, along with four other green organizations: the Center for Biological Diversity, Turtle Island Restoration Network, Louisiana Bucket Brigade, and the Sierra Club.
But: The judges stopped short of tossing out the project’s authorization, stating they believe the panel can “redress the defects” in their analyses and still authorize the project. Read the opinion here.
IF WE’RE TALKING ABOUT COURTS…: A federal court in Alaska blocked an oil and gas lease sale ordered by the Inflation Reduction Act, reasoning the U.S. government violated the National Environmental Policy Act to hold the sale.
The details: As Reuters reports, a federal district court found the Interior Department failed to consider alternative leasing areas, thereby violating NEPA. The court also ruled that the department did not consider how vessel noise could affect Beluga whales in the area, or examine “cumulative impacts on the environment.”
Don’t forget: Centrist Sen. Joe Manchin tied oil lease sales to offshore wind lease sales in the IRA to ensure that the administration continued drilling auctions. Environmentalists, however, objected to the inclusion of oil lease sales. Read more on that here.
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