Requires the Federal Energy Regulatory Commission (the Commission) to notify the Department of Energy, EPA, and other federal agencies whenever the Electric Reliability Organization (ERO) reports the bulk-power system is facing a generation inadequacy. Those agencies must share draft regulations that affect generation resources with the Commission for review and comment before finalizing them. An agency cannot finalize a rule that affects generation resources until it responds in writing to the Commission’s comments and the Commission finds the rule is unlikely to cause a significant negative reliability impact.
If the ERO notifies the Commission that the bulk-power system is in a state of generation inadequacy, the Commission must promptly notify the Department of Energy, the Environmental Protection Agency, and any other Federal agency the Commission determines appropriate of that state of generation inadequacy.
Upon receiving the notice, the head of each Federal agency that received the notice must provide to the Commission for review and comment any 'covered agency action' either (A) on the first date the action is provided to the Office of Management and Budget or any other Federal agency for review, or (B) if not provided to OMB or another agency, not later than 90 days before the date the action is published in the Federal Register or otherwise made available for public inspection or comment.
The Commission, in consultation with the ERO and transmission organizations, shall issue an order to the agency head providing comments on the covered agency action; those comments may include an assessment of the effect of the action on rates, terms, and conditions for services under the Commission's authority under sections 201 and 206.
If applicable, the Commission may also provide recommendations for modifications to the covered agency action to prevent a significant negative impact on the bulk-power system's ability to supply sufficient electric energy necessary to maintain an adequate level of reliability.
A head of a Federal agency may not finalize a covered agency action submitted to the Commission under paragraph (2) until the agency head (A) responds in writing to the Commission explaining how the action was modified, or why it was not modified, in response to the Commission's comments and recommendations, and (B) the Commission finds the action will not be likely to have a significant negative impact on the bulk-power system's ability to supply sufficient electric energy to maintain adequate reliability.
Updated 6 days ago
Last progress December 16, 2025 (1 month ago)
Who is affected and how:
Federal regulatory agencies (DOE, EPA, and others): Must share draft rules that affect generation resources with the Commission early, prepare written responses to Commission comments, and may need to revise or delay final rules until the Commission issues a reliability finding. This increases administrative steps, coordination costs, and potential schedule impacts on rulemakings.
The Commission and the ERO (e.g., NERC): Gain a formal review role and an effective gating influence on any agency rule that the Commission determines could harm reliability during generation inadequacy events. This strengthens reliability-focused oversight.
Owners/operators of the bulk-power system and electric generating units (utilities, independent power producers): Could see fewer regulatory surprises that would harm near-term reliability, but may also face slower policy changes (for example, permitting, emissions or fuel-change rules) that affect operations and investment timing.
Environmental and public-health regulatory programs: Rules addressing emissions, pollution controls, or fuel transitions that affect generation resources may face additional scrutiny and possible delay if the Commission finds potential reliability risks.
State regulators and markets: May experience indirect effects through federal rule timing and changes to market or reliability requirements; coordination between federal and state actions could become more complex.
Overall trade-offs: The provision increases federal coordination to protect grid reliability during declared generation inadequacy, but it can slow or reshape regulatory actions by giving the Commission a formal review-and-clearance role. It may raise administrative and legal questions about agency independence and could shift the balance between reliability and other policy goals (environment, public health) during stressed periods.
3 meetings related to this legislation
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Last progress December 18, 2025 (1 month ago)
Introduced on May 29, 2025 by Troy Balderson
Received in the Senate and Read twice and referred to the Committee on Energy and Natural Resources.
