Reliable Power Act
- Sponsor
- Sen. Cotton, Tom [R-AR]
- Committees
- Energy and Natural Resources Committee (primary)
- Last action
- Apr 15, 2026
Bottom line
This bill grants FERC and the ERO new authority to review and potentially veto federal agency regulations that could impact the reliability of the bulk-power system, particularly concerning electricity generation, aiming to prevent future energy supply shortfalls.
What it actually does
This bill amends the Federal Power Act to mandate that the Electric Reliability Organization (ERO) conduct annual long-term assessments of the bulk-power system's reliability, including generation adequacy. If the ERO determines there's a risk of generation inadequacy, the Federal Energy Regulatory Commission (FERC) must notify other federal agencies, such as the Department of Energy and the Environmental Protection Agency. These agencies are then required to submit relevant proposed or under-consideration regulations that affect generation resources to FERC for review and comment. Crucially, these agencies cannot finalize such regulations until FERC determines they are not likely to have a significant negative impact on bulk-power system reliability.
Proponents argue
Proponents argue this bill is crucial for preventing future electricity supply shortfalls and blackouts, especially given increasing demand and the retirement of certain generation resources. They contend it ensures that environmental or other federal regulations do not inadvertently jeopardize grid stability, prioritizing reliability through expert review by FERC and the ERO, thereby safeguarding the nation's power supply.
Opponents contend
Opponents might argue that this bill grants undue power to FERC and the ERO, potentially allowing them to obstruct or delay important environmental or public health regulations. They may contend it could be used to favor certain types of generation over others, hindering the transition to cleaner energy sources, and that existing processes are sufficient to balance reliability with other policy goals.
The bill is short and relatively straightforward, allowing for a quick and informed assessment by any interested reader.
Section 2(1), amending FPA Section 215(g)
Mandate for Annual Long-Term Bulk-Power System Assessment
This provision requires the Electric Reliability Organization (ERO) to conduct an annual long-term assessment of the bulk-power system's ability to reliably supply electricity. This assessment must consider the generation resource mix, transmission development, and demand trends, and analyze the risk of supply shortfalls under normal and extreme weather conditions across different regions.
Supporters argue
Supporters argue this assessment is vital for proactive identification of reliability risks, allowing for timely interventions to prevent energy crises. They believe it provides a comprehensive, expert-driven view of grid health.
Critics contend
Critics might argue this adds another layer of bureaucracy and data collection burden without necessarily guaranteeing effective solutions, or that existing assessments are already sufficient.
Tradeoffs
Balances the need for comprehensive reliability planning against potential increased reporting burdens on industry.
Section 2(1), amending FPA Section 215(g)(3)
ERO Notification of Generation Inadequacy
If the ERO's annual assessment determines that the bulk-power system is at risk of not having enough generation resources to maintain reliability, the ERO is required to publicly notify the Federal Energy Regulatory Commission (FERC) that the system is in a 'state of generation inadequacy.'
Section 2(3), inserting FPA Section 215(h)(2)
FERC Notification to Federal Agencies Regarding Generation Inadequacy
Upon receiving a 'state of generation inadequacy' notification from the ERO, FERC is mandated to promptly inform the Department of Energy (DOE), the Environmental Protection Agency (EPA), and any other relevant federal agency about this inadequacy. This notification serves as a trigger for subsequent review processes.
Section 2(3), inserting FPA Section 215(h)(3)
Federal Agency Submission of Covered Regulations to FERC for Review
Federal agencies that receive a generation inadequacy notification from FERC must submit any 'covered agency action' (regulations affecting bulk-power system generation resources) to FERC for review and comment. This submission must occur at specific points in the rulemaking process, such as when the action is sent to OMB or 90 days before public publication, or within 60 days if already published.
Section 2(3), inserting FPA Section 215(h)(4)
FERC's Review and Recommendations on Covered Agency Actions
FERC, in consultation with the ERO and transmission organizations, is required to provide comments on the submitted covered agency actions. These comments may include an assessment of the regulation's effect on rates, terms, and conditions for services, and can include recommendations for modifications to prevent significant negative impacts on bulk-power system reliability.
Section 2(3), inserting FPA Section 215(h)(5)
Conditions for Finalizing Covered Agency Actions
A federal agency cannot finalize a covered agency action until it responds in writing to FERC, explaining how it modified or why it chose not to modify the regulation based on FERC's comments. Crucially, the agency also cannot finalize the action until FERC determines that the regulation is 'not likely to have a significant negative impact on the ability of the bulk-power system to supply sufficient electric energy to maintain an adequate level of reliability.'
Section 2(3), inserting FPA Section 215(h)(6)
Transparency for FERC Comments and Agency Responses
Federal agencies are required to include FERC's comments, recommendations, and their own written responses in any submission of the covered agency action to the Federal Register for publication, and wherever else the action is made publicly available.
Defines 'covered agency action' as a regulation that (i) relates to or directly affects any generation resource in the bulk-power system, AND (ii) is under development or consideration in a rulemaking proceeding when the agency receives FERC's inadequacy notice.
Section 2(3), inserting FPA Section 215(h)(1)(A)
Why it matters:Standard legislative practice to define terms upfront, but its specific wording is highly consequential for the bill's reach.
Case for: Supporters would argue this definition is precise, ensuring FERC's review is focused only on regulations directly impacting generation resources, thereby preventing overreach.
Case against: Critics might argue the definition is broad enough ('relates to, or otherwise directly affects') to encompass a wide range of regulations, potentially giving FERC too much discretion to intervene in other agencies' mandates.
Estimated impact: This definition dictates the entire scope of regulations from other federal agencies that will be subject to FERC's review and potential veto, making it central to the bill's impact on inter-agency power dynamics.
Defines 'Federal agency' as an Executive department (as defined in 5 U.S.C. 101) or any other Executive agency whose head holds a Cabinet-level position.
Section 2(3), inserting FPA Section 215(h)(1)(B)
Why it matters:Standard legislative practice.
Case for: Supporters would argue this limits the scope of FERC's oversight to major federal agencies, avoiding entanglement with smaller, less impactful entities.
Case against: Critics might argue this still encompasses a significant number of agencies and that the 'Cabinet-level' distinction is arbitrary for determining regulatory impact on the grid.
Estimated impact: This definition determines which specific federal agencies will be subject to FERC's new review and potential veto power, focusing the bill's inter-agency impact on the highest levels of the Executive Branch.