U.S. Senators Shelley Moore Capito and John Barrasso have called on the Federal Energy Regulatory Commission (FERC) to work with the Environmental Protection Agency (EPA) to improve the proposed Clean Power Plan 2.0 and address potential threats to electric reliability. In a letter to FERC Chairman Willie L. Phillips and Commissioners James Danly, Allison Clements, and Mark C. Christie, the Senators expressed concerns about the impact of the plan on electric reliability and urged the Commission to engage with the EPA to ensure that the final rule does not jeopardize the stability of the electric grid.

The Senators highlighted the need for a more comprehensive analysis of the potential impact of the Clean Power Plan 2.0 on electric reliability. They emphasized that the Technical Conference held by FERC was a positive step, but more work is needed to fully understand the implications of the proposed rule. The Senators also noted that the EPA itself has acknowledged the need for further analysis and engagement with FERC to address concerns regarding electric reliability.

In their letter, the Senators cited the testimony of Mr. Joseph Goffman, Principal Deputy Assistant Administrator of EPA's Office of Air and Radiation, who admitted that the EPA lacks the expertise to determine the impact of its proposed rule on electric reliability. They stressed that it is the responsibility of FERC to take the lead in protecting reliability and ensuring that the final rule does not pose a threat to the electric grid.

The Senators also raised concerns about the pace of retirements driven by the Clean Power Plan 2.0 and the potential impact on financing for traditional resources. They noted that the EPA has not performed a credible analysis of how affected Electric Generating Units (EGUs) will be able to obtain financing for the compliance costs. The Senators emphasized that timelines for compliance are irrelevant if the affected EGUs cannot secure the necessary funding.

The Senators called for a more robust engagement between FERC and EPA on the issue of electric reliability. They urged FERC to formally file the record of the Technical Conference in EPA Docket No. EPA-HQ-OAR-2023-0072-0007, including all comments to the Commission and the 2023 Long Term Reliability Assessment issued by the North American Electric Reliability Corporation. The Senators stressed that the Technical Conference should be the beginning, not the end, of the dialogue between FERC and EPA.

In conclusion, the Senators expressed their hope that EPA will continue to engage with FERC to address concerns about the Clean Power Plan 2.0 and its potential impact on electric reliability. They urged FERC to remain involved in the process and keep them informed of any progress. The Senators warned that if FERC does not use its expertise to dissuade the EPA from its current course, they will bear responsibility for any blackouts and brownouts that occur as a result of electric resource shortages caused by compliance with a final rule resembling the Proposed Clean Power Plan 2.0.

The full letter can be read here.

For additional details, please follow this link: https://www.epw.senate.gov/public/index.cfm/press-releases-republican?ID=73EB57F0-FE99-466E-872B-F3D770A5A822