Reliable Power Act
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Would require federal agencies — including the Environmental Protection Agency and the Department of Energy — to submit proposed regulations affecting electric generation to the Federal Energy Regulatory Commission (FERC) for review before finalizing them, if the nation's electric reliability watchdog has declared the power grid at risk of generation shortfalls.
The bill would give FERC effective veto power over such regulations, since agencies could not finalize a rule until FERC finds it would not significantly harm the ability of the bulk-power system to maintain reliable electricity supply — a major new check on environmental and energy rulemaking.
What this bill would do
What it would do
The bill would amend Section 215 of the Federal Power Act to require the Electric Reliability Organization (ERO — currently the North American Electric Reliability Corporation) to conduct annual long-term assessments of the bulk-power system's ability to supply sufficient electric energy. Those assessments would analyze generation resource mix, transmission development, demand trends, and the risk of supply shortfalls under normal and extreme weather. If the ERO finds the system is at risk of generation inadequacy, it must publicly notify FERC.
Once FERC receives that notice, it would be required to notify the Department of Energy, the Environmental Protection Agency, and other appropriate cabinet-level agencies. Those agencies would then be required to submit any proposed regulations affecting generation resources to FERC for review and comment — either at the time they go to OMB or at least 90 days before Federal Register publication. An agency could not finalize such a regulation until FERC determines it would not likely have a significant negative impact on grid reliability, and the agency has responded in writing explaining how it addressed FERC's recommendations.
Key provisions
- 1Would require the ERO to conduct annual long-term assessments of the bulk-power system's ability to supply sufficient generation under normal and extreme weather conditions.
- 2Would require the ERO to publicly notify FERC when its long-term assessment finds the bulk-power system at risk of generation inadequacy.
- 3Would require FERC to notify the Department of Energy, the EPA, and other appropriate cabinet agencies upon receiving a generation inadequacy notice.
- 4Would require notified agencies to submit proposed regulations affecting generation resources to FERC for review and comment, either when sent to OMB or at least 90 days before Federal Register publication.
- 5Would prohibit agencies from finalizing a covered regulation until FERC finds it will not likely have a significant negative impact on bulk-power system reliability, and the agency responds in writing to FERC's recommendations.
- 6Would require all FERC comments, agency recommendations, and agency responses to be publicly published alongside the covered regulation.
Who would be affected
Federal executive agencies — particularly the Environmental Protection Agency and the Department of Energy — that develop regulations touching electric generation resources. FERC and the ERO would take on expanded review and assessment roles. Electric utilities, grid operators, and transmission organizations would be consulted during FERC's review. Electricity consumers broadly would be affected if the bill's reliability safeguards alter the pace or content of generation-related regulations.
Why it matters
If the ERO declares generation inadequacy, the bill would effectively pause or reshape any federal regulation that could affect power plant operations until FERC signs off. For agencies like the EPA — which issues rules limiting emissions from power plants — this would add a new mandatory reliability review step and could delay or force modification of environmental rules. For grid operators and utilities, it would provide a formal channel to flag reliability concerns before regulations take effect.
What would change
Changes to existing law
Amends Section 215 of the Federal Power Act (16 U.S.C. 824o) (Sec. 2)
Adds annual long-term reliability assessments by the ERO, a generation inadequacy notification process, and a FERC review-and-comment requirement before federal agencies can finalize regulations affecting generation resources.
Agencies directed to act
Funding and costs
Congressional Budget Office estimate
CBO estimates H.R. 3616 would have a negligible net effect on the federal deficit, with any direct spending and revenue changes each staying below $500,000 over the 2025–2035 period.
CBO estimates that implementing the Reliable Power Act would have no net change in discretionary spending for the Federal Energy Regulatory Commission (FERC), because FERC is authorized to recover 100% of its costs through user fees. Coordination costs for other agencies — primarily the Department of Energy — would total $1 million over the 2025–2030 period, subject to annual appropriations (i.e., Congress would need to provide the money each year). Direct spending and revenues would each increase by less than $500,000 over 2025–2035 due to higher costs and offsetting fees for the Electric Reliability Organization, leaving a negligible net effect on the deficit. The bill contains both intergovernmental and private-sector mandates (affecting entities such as electric utilities that pay FERC and ERO fees), but CBO estimates the costs of those mandates would fall well below the statutory thresholds of $103 million and $206 million, respectively.
How implementation would work
The ERO would conduct annual long-term assessments and, when warranted, issue a public notice of generation inadequacy to FERC. FERC would then notify relevant cabinet agencies, triggering the submission requirement for covered regulations. FERC, consulting with the ERO and transmission organizations, would issue formal comments and recommendations by order. Agencies must respond in writing explaining their reaction to those recommendations, and FERC must affirmatively find no significant negative reliability impact before a regulation can be finalized. All comments, recommendations, and agency responses must be published alongside the regulation in the Federal Register or made publicly available.
Legislative status & sources
Latest action
Received in the Senate and Read twice and referred to the Committee on Energy and Natural Resources.
Official CRS summary
Show the CRS summaryHide the CRS summary
This bill directs the electric reliability organization (i.e., the North American Electric Reliability Corporation) to conduct annual long-term assessments of the reliability of electric power in the bulk-power system. It also establishes a process for the Federal Energy Regulatory Commission (FERC) to review federal regulations before they are finalized if the electric reliability organization finds that the system is at risk of not having sufficient electric generation to maintain reliability.
If the electric reliability organization finds that the system does not have sufficient generation to maintain reliability, it must notify FERC that the bulk-power system is in a state of generation inadequacy. FERC must then notify the Department of Energy, the Environmental Protection Agency, and any other appropriate federal agencies of the generation inadequacy. Upon receiving the notice, the federal agency must provide proposed regulations that affect any generation resource in the bulk-power system to FERC for review and comment. If applicable, FERC must provide recommendations to modify the regulations. Federal agencies may not finalize such a regulation until FERC finds that it will not be likely to have a significant negative impact on the ability of the bulk-power system to supply sufficient electric energy necessary to maintain an adequate level of reliability.
Legislative subjects
Congressional oversight; Electric power generation and transmission; Energy; Energy efficiency and conservation; Energy storage, supplies, demand; Government information and archives; Government studies and investigations
Committee report
H. Rept. 119-302,Part 2