Power Plant Reliability Act of 2025
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Would require power plant owners to give at least five years' notice before retiring any large generating unit and would strengthen the Federal Energy Regulatory Commission's authority to order plants to stay open — for up to five years at a time — when their closure would threaten grid reliability.
The bill would also shield utilities that comply with those stay-open orders from liability under federal, state, and local environmental laws, a provision likely to draw scrutiny from environmental regulators and advocates.
What this bill would do
What it would do
The bill would amend Section 207 of the Federal Power Act to expand the circumstances under which FERC can require a power plant to remain in operation. Under the bill, both state utility commissions and transmission organizations (regional grid operators) could file complaints with FERC. If FERC finds that a utility's interstate service is inadequate — or likely to become so within five years — it could order the plant to keep running for up to five years, with extensions of up to five additional years available upon request by any affected state commission, transmission organization, or the utility itself. FERC would be required to set compensation rates covering the additional costs of continued operation and to allocate those costs.
The bill would also require owners or operators of generating facilities to notify FERC and affected state commissions or transmission organizations at least five years before a planned retirement of any electric generating unit of 5 megawatts or larger connected to the bulk power system. Emergency or catastrophic shutdowns would be exempt from this notice requirement. Critically, actions taken to comply with a FERC stay-open order — including voluntary compliance — would be exempt from all federal, state, and local environmental laws and regulations, shielding owners from civil or criminal liability or citizen suits arising from those actions.
Key provisions
- 1Would allow state commissions or transmission organizations to file complaints with FERC alleging that a utility's interstate service is, or within five years will be, inadequate or insufficient.
- 2Would authorize FERC to order a power plant to continue operating for up to five years to maintain grid reliability, with compensation to the owner for additional costs.
- 3Would allow any affected state commission, transmission organization, or public utility to request extensions of stay-open orders, each extension capped at five years.
- 4Would require FERC to determine the rate or charge necessary to compensate plant owners for continued operation costs and to allocate those costs.
- 5Would require owners or operators to notify FERC and affected parties at least five years before retiring any electric generating unit of 5 megawatts or more on the bulk power system.
- 6Would exempt from all federal, state, and local environmental laws any omission or action taken to comply with a FERC stay-open order, including voluntary compliance, shielding parties from civil, criminal, and citizen-suit liability.
Who would be affected
Owners and operators of large electric generating facilities (5 megawatts or more) connected to the bulk power system, who would face new retirement-notice requirements and potential FERC orders to keep plants running. Regional transmission organizations and state utility commissions that could file or respond to FERC complaints. Ratepayers who would ultimately bear costs allocated by FERC compensation orders.
Why it matters
Power plant owners could be compelled to continue operating aging or unprofitable facilities for up to five years — and potentially longer through extensions — while receiving FERC-set compensation. The environmental liability shield is especially consequential: a plant ordered to keep running could operate in ways that would otherwise violate air or water standards without facing penalties, citizen suits, or state enforcement action.
What would change
Changes to existing law
Amends Federal Power Act, Section 207 (16 U.S.C. 824f) (Sec. 2)
Rewrites Section 207 entirely: expands complaint standing to transmission organizations, caps stay-open orders at five years with extension procedures, mandates cost compensation and allocation, adds five-year retirement notice requirement, and creates environmental liability exemption for compliance actions.
Agencies directed to act
Funding and costs
Congressional Budget Office estimate
CBO estimates H.R. 3632 would have no significant effect on the federal deficit, with zero impact on direct spending or revenues over the 2025–2035 period, and negligible discretionary costs for FERC.
CBO estimates that H.R. 3632 would produce no change in direct (mandatory) spending, revenues, or the federal deficit over the 2025–2035 scoring window. Discretionary costs to the Federal Energy Regulatory Commission (FERC) — the agency that oversees the bulk power grid — would be negligible, because FERC is authorized to collect fees to offset its operating costs. The bill contains both intergovernmental and private-sector mandates as defined under the Unfunded Mandates Reform Act, but CBO cannot determine whether the costs of those mandates would exceed the statutory thresholds ($103 million and $206 million in 2025, respectively), because the ultimate cost would depend on FERC orders and rate decisions not yet made.
How implementation would work
FERC would process complaints from state commissions or transmission organizations, hold hearings within 90 days of receipt, and issue orders requiring continued operation. Each order must set compensation rates and allocate costs. Extension requests may be filed between 180 and 60 days before an order expires; FERC must notify affected parties within 14 days and act within 60 days. Plant owners must separately file five-year retirement notices with FERC and affected state commissions or transmission organizations; FERC must make those notices 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
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This bill modifies the process that the Federal Energy Regulatory Commission (FERC) uses to determine, upon a complaint from a state commission, whether a public utility (i.e., power plant) must remain open because the retirement of the power plant will make the bulk power system unreliable, including by allowing transmission organizations to also file complaints with FERC.
If FERC finds that any interstate service of any public utility is inadequate or insufficient, or is likely to become inadequate or insufficient within five years of receiving such complaint, then FERC must determine the proper, adequate, or sufficient service to be furnished through an order, rule, or regulation (order).
The bill specifies that FERC may order a power plant to remain open for up to five years. Any affected state commission, transmission organization, or power plant may request that FERC extend such order.
A FERC order must determine (1) any rate or charge necessary to provide compensation for the additional costs of the service, and (2) the cost allocation of any rate or charge.
A power plant owner or operator must notify FERC and affected state commissions or transmission organizations at least five years before any planned retirement of a unit of an electric generating facility except in the case of an emergency or similar event that renders a unit inoperable.
The bill exempts from federal, state, and local environmental laws and regulations any action taken by a generating facility to comply with such orders.
Legislative subjects
Alternative and renewable resources; Congressional oversight; Dams and canals; Electric power generation and transmission; Energy; Energy prices; Energy storage, supplies, demand; Government information and archives; Government studies and investigations
Committee report
H. Rept. 119-307,Part 2