H. Rpt. 119-306 accompanies the "State Planning for Reliability and Affordability Act" — legislation that falls within the Budget Committee's jurisdiction. Committee reports serve as the official legislative history of a bill, documenting what the legislation would do and why the committee recommends passage. Reports of this kind include the committee's section-by-section analysis, any amendments adopted during markup, the Congressional Budget Office cost estimate, dissenting views from minority members, and the legal basis for the legislation. Courts and agencies consult committee reports when interpreting enacted laws, making these documents important beyond the immediate legislative moment.
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House Report 119-306 - STATE PLANNING FOR RELIABILITY AND AFFORDABILITY ACT
[House Report 119-306]
[From the U.S. Government Publishing Office]
119th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 119-306
=======================================================================
STATE PLANNING FOR RELIABILITY AND AFFORDABILITY ACT
----------------
September 19, 2025.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
----------------
Mr. Guthrie, from the Committee on Energy and Commerce,
submitted the following
R E P O R T
together with
MINORITY VIEWS
[To accompany H.R. 3628]
The Committee on Energy and Commerce, to whom was referred
the bill (H.R. 3628) to amend the Public Utility Regulatory
Policies Act of 1978 to add a standard related to State
consideration of reliable generation, and for other purposes,
having considered the same, reports favorably thereon without
amendment and recommends that the bill do pass.
CONTENTS
Page
Purpose and Summary.............................................. 2
Background and Need for Legislation.............................. 2
Committee Action................................................. 5
Committee Votes.................................................. 5
Oversight Findings and Recommendations........................... 7
New Budget Authority, Entitlement Authority, and Tax Expenditures 7
Congressional Budget Office Estimate............................. 7
Federal Mandates Statement....................................... 7
Statement of General Performance Goals and Objectives............ 7
Duplication of Federal Programs.................................. 7
Related Committee and Subcommittee Hearings...................... 7
Committee Cost Estimate.......................................... 9
Earmark, Limited Tax Benefits, and Limited Tariff Benefits....... 9
Advisory Committee Statement..................................... 9
Applicability to Legislative Branch.............................. 9
Section-by-Section Analysis of the Legislation................... 9
Changes in Existing Law Made by the Bill, as Reported............ 9
Minority, Additional, or Dissenting Views........................ 24
Purpose and Summary
H.R. 3628, the ``State Planning for Reliability and
Affordability Act'', was introduced by Representative Evans on
May 29, 2025, and referred to the Committee on Energy and
Commerce on May 29, 2025. H.R. 3628 amends section 111(d) of
PURPA to require each state regulatory authority to consider
implementing requirements for utilities to analyze their
reliable generation portfolio as part of their integrated
resource plans over a 10-year planning period.
Background and Need for Legislation
After decades of modest growth in electricity demand, the
bulk-power system of the United States is undergoing its most
transformative period since WWII. Increasing electricity
demands, driven by the rise of artificial intelligence and
reshoring of domestic manufacturing facilities, are coinciding
with an alarming rate of premature retirements of baseload
power and insufficient replacement of generating resources.
Data centers alone could consume upwards of 132 GW by 2028.\1\
The North American Electric Reliability Corporation (NERC)
projects peak demand to grow by 151 GW by 2034.\2\ At the same
time, NERC reports that as much as 115 GW of thermal generation
has announced to retire within the same period.\3\ NERC has
stated that ``[e]nvironmental regulations and energy policies
that are overly rigid and lack provisions for electric grid
reliability have the potential to influence generators to seek
deactivation despite a projected resource adequacy or operating
reliability risk; this can potentially jeopardize[e] the
orderly transition of the resource mix.''\4\ A recent report
from the Department of Energy finds that the level of projected
demands from next generation industries coupled with the
accelerated rate of retirements of baseload generating units
could increase the risk of power outages by 100 times by
2030.\5\
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\1\Arman Shehabi et al., 2024 United States Data Center Energy
Usage Report, Lawrence Berkely National Laboratory (Dec. 20, 2024),
[https://escholarship.org/uc/item/32d6m0d1].
\2\North American Reliability Corp. (NERC), 2024 Long-Term
Reliability Assessment (Dec. 2024, updated Jul. 15, 2025), https://
www.nerc.com/pa/RAPA/ra/Reliability%20Assessments
%20DL/NERC_Long%20Term%20Reliability%20Assessment_2024.pdf.
\3\Id.
\4\NERC, 2023 Long-Term Reliability Assessment (Dec. 2023), https:/
/www.nerc.com/pa/RAPA/ra/Reliability%20Assessments%20DL/
NERC_LTRA_2023.pdf.
\5\U.S. Dep't. of Energy, Evaluating the Reliability and Security
of the United States Electric Grid (Resource Adequacy Report), at 1
(Jul. 2025), https://www.energy.gov/sites/default/files/2025-07/
DOE%20Final%20EO%20Report%20%28FINAL%20JULY%207%290.pdf.
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During the 119th Congress, the Energy Subcommittee of
Energy and Commerce has held several hearings to better
understand the ongoing reliability crisis facing our nation.
Through expert witness testimony from grid operators,
engineers, and experts in the energy industry, the Committee
finds that states have played an outsized role in driving pre-
mature retirements of baseload generating units. In many cases,
it is actions taken to fulfill clean energy mandates that are
undermining reliability and raising costs on ratepayers.
There are currently 29 states that have clean energy
standards, renewable portfolio standards, or other related
measures that require utilities and power producers to have
increasing shares of their generation come from preferred clean
energy sources or otherwise designate specified dates to meet
emission reduction goals. Accordingly, of the ten states with
the highest electricity prices, all but two have the most
aggressive forms of clean energy standards.\6\ Meanwhile, of
the eighteen states with the most affordable electricity rates,
only one has a renewable portfolio standard.\7\ The one state
referenced in the most affordable electricity rates with a
renewable portfolio standard is Washington, home to the largest
forms of reliable, baseload hydropower facilities in the
country.
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\6\Mario Loyola et al., Why Electricity Prices are Soaring in Blue
States, Heritage Found. (Oct. 23, 2024), https://www.heritage.org/
sites/default/files/2024-10/BG3867.pdf.
\7\Id.
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Higher reliance on intermittent energy resources could
inherently drive up costs on ratepayers because their
intermittent nature requires back up power and they have higher
land usage. Intermittent energy resources also have locational
constraints necessitating additional transmission
infrastructure, and require rate-based cost-recovery of
stranded assets that have high capital costs. Contrary to
claims of the affordability of intermittent energy resources,
grid operators such as ISO-NE, have found that the
profitability of such resources is reliant on state policies
and additional revenue streams outside of those found in
wholesale markets.\8\ In 2024, it had been estimated that
renewable energy would receive $1.2 trillion in subsidies over
the following ten years.\9\ The true costs of intermittent
resources are socialized amongst the broader system to install
necessary infrastructure.
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\8\ISO-New England Inc. Internal Market Monitor, 2024 Annual
Markets Report, ISO-New England (May 23, 2025), https://www.iso-ne.com/
static-assets/documents/100023/2024-annual-markets-report.pdf.
\9\Mario Loyola et al., supra note 6.
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Concerningly, some of the states that are implementing the
most aggressive forms of clean energy standards and driving out
baseload generating units are the same states that have the
highest amounts of electricity imports of firm generation from
neighboring states that continue to maintain sufficient
baseload and dispatchable generating units.\10\ As load growth
from next generation industries are tightening markets across
the country, leading utilities in states such as Colorado have
found that growing imports are an unsustainable strategy for
long-term reliability.\11\
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\10\U.S. Energy Info. Admin. (EIA), Virginia was the top net
electricity recipient of any state in 2023, Energy Information
Administration: In Brief Analysis (Dec. 20, 2024), https://www.eia.gov/
todayinenergy/detail.php?id=64104.
\11\Letter from Xcel Energy to Public Service Company of Colorado
(Feb. 11, 2025), https://i2i.org/wp-content/uploads/PSCO-Letter-on-
Resource-Adequacy.pdf.
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Many states require utilities to develop Integrated
Resource Plans (IRP) that detail methodical plans over a
defined time period for electricity procurement, future
investments into energy infrastructure, and provide a road map
to cost-effective management of their system. The idea of an
IRP process was borne out of the energy crises of the 1970's,
cost over-runs of generating facilities, and the passage of the
Public Utilities Regulatory Policies Act (PURPA) of 1978. PURPA
sought to promote energy conservation and promote competition
in the power sector. Currently, more than 35 states require
utilities to file IRP's with state officials and vary in terms
of their requirements, planning time horizon, and frequency of
filings.\12\
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\12\Alan Cooke, Integrated Resource Planning in the U.S. Overview,
Pacific Northwest National Laboratory, U.S. Dep't. of Energy (Mar. 1,
2021) https://eta-publications.lbl.gov/sites/default/files/
sc_commission_day_1_irps_in_us_review_of_requirements_final.pdf.
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At its core, IRP's were initially designed as a reliability
and resource adequacy centric tool to secure long-term
stability of the power sector and affordable costs on
ratepayers. However, the emergence of state clean energy
standards and aggressive environmental regulatory approaches
have shifted IRP priorities away from its core mission. In the
previous administration, federal agencies, namely the
Environmental Protection Agency, encouraged these sentiments,
even though the agencies lack the requisite expertise when it
comes to the bulk power system. As a recent example, in 2022,
the EPA issued a comprehensive guide with a roadmap for states
to commandeer the focus of IRP's to prioritize climate change
mitigation, public health considerations, and societal equity
and inclusion goals. While seemingly laudable, usurping
foundational needs of IRP's disregards the views of those
charged with overseeing reliability of the bulk power system
and fulfills the wishes of environmental groups, all of which
is done at the expense of the ratepayer. Absent from this
roadmap is the consideration of brownouts, blackouts, and
rising electricity prices stemming from insufficient baseload
and dispatchable generating units, or how the failure of
critical infrastructure could undermine the general health and
wellness of the American population.
Given the state of our electric reliability crisis, now
more than ever it is imperative for states to take
responsibility for the impact of increasing reliance on
intermittent resources and efforts to drive out reliable
generating resources without sufficient replacements. As a part
of the authorities provided under PURPA, section 111(d)
establishes an opportunity for Congress to encourage state
public utility commission to consider certain policies.\13\ As
part of this process, state commissions, and in some cases non-
regulated utilities, are required to give consideration to
provisions passed by Congress in an open meeting format. This
provision is not a mandate for states, who generally control
decisions related to resource adequacy within their
jurisdiction.
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\13\16 U.S.C. Sec. 2621(d).
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The State Planning for Reliability and Affordability Act
seeks to encourage states, under 111(d), to take larger
consideration of the needs for reliable generating resources,
which are defined as having critical attributes to essential
reliability services and specifically account for known and
commercially available types of natural gas, coal, nuclear, and
hydropower facilities and contractual agreements, both firm and
non firm, to ensure sufficient generation during times of need.
Under current law, section 111(d) includes requirements for
states to consider implementing IRP's.\14\ However, given the
growing emergence of state and federal actions that undermine
foundational needs for IRP's, the Committee finds that the
current statutory provisions are insufficient to address the
growing reliability crisis and consideration for reliable
generation must be encouraged. In some cases, recent resource
plans have even included undefined reliable generation
technologies or otherwise account for unidentified resource
types, acknowledging uncertainty of future clean dispatchable
options.\15\ In developing IRP's that include specific
considerations of maintaining sufficient reliable generation,
H.R. 3628 would encourage long-term planning over a 10-year
period utilizing realistic assumptions of reliable generation
to incentivize stronger considerations of reliability and
affordability of the power sector.
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\14\16 U.S.C. Sec. 2621(d)(7), (16).
\15\Electric Policy Research Institute, State of Electric Company
Resource Planning (Dec. 21, 2023), https://www.epri.com/research/
products/3002026243.
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Committee Action
On April 30, 2025, the Subcommittee on Energy held a
legislative hearing on H.R. 3628. The Subcommittee received
testimony from:
Mike Goff, Acting Undersecretary of Energy,
U.S. Department of Energy;
David L. Morenoff, Acting General Counsel,
Federal Energy Regulatory Commission;
Terry Turpin, Director, Office of Energy
Projects, Federal Energy Regulatory Commission;
Jim Matheson, Chief Executive Officer,
National Rural Electric Cooperative Association;
Amy Andryszak, President and Chief Executive
Officer, Interstate Natural Gas Association of America;
Todd A. Snitchler, President and Chief
Executive Officer, Electric Power Supply Association
and;
Kim Smaczniak, Partner, Roselle LLP.
On June 5, 2025, the Subcommittee on Energy met in open
markup session and forwarded H.R. 3628, without amendment, to
the full Committee by a voice vote. On June 25, 2025, the full
Committee on Energy and Commerce met in open markup session and
ordered H.R. 3628, without amendment, favorably reported to the
House by a record vote of 25 yeas and 23 nays.
Committee Votes
Clause 3(b) of rule XIII requires the Committee to list the
record votes on the motion to report legislation and amendments
thereto. The following reflects the record votes taken during
the Committee consideration:
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Oversight Findings and Recommendations
Pursuant to clause 2(b)(1) of rule X and clause 3(c)(1) of
rule XIII, the Committee held hearings and made findings that
are reflected in this report.
New Budget Authority, Entitlement Authority, and Tax
Expenditures
Pursuant to clause 3(c)(2) of rule XIII, the Committee
finds that H.R. 3628 would result in no new or increased budget
authority, entitlement authority, or tax expenditures or
revenues.
Congressional Budget Office Estimate
Pursuant to clause 3(c)(3) of rule XIII, at the time this
report was filed, the cost estimate prepared by the Director of
the Congressional Budget Office pursuant to section 402 of the
Congressional Budget Act of 1974 was not available.
Federal Mandates Statement
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act.
Statement of General Performance Goals and Objectives
Pursuant to clause 3(c)(4) of rule XIII, the general
performance goal or objective of this legislation is to
encourage states, under PURPA 111(d), to consider implementing
requirements for Integrated Resource Plans to include
sufficient reliable generation.
Duplication of Federal Programs
Pursuant to clause 3(c)(5) of rule XIII, no provision of
H.R. 3628 is known to be duplicative of another Federal
program, including any program that was included in a report to
Congress pursuant to section 21 of Public Law 111-139 or the
most recent Catalog of Federal Domestic Assistance.
Related Committee and Subcommittee Hearings
Pursuant to clause 3(c)(6) of rule XIII, the following
related hearing was used to develop or consider H.R. 3628:
On February 5, 2025, the Subcommittee on Energy held a
hearing on H.R. 3628, titled ``Powering America's Future:
Unleashing American Energy.'' The Subcommittee received
testimony from:
Amanda Eversole, Executive Vice President
and Chief Advocacy Officer, American Petroleum
Institute;
Brigham McCown, Senior Fellow and Director,
Initiative on American Energy Security, The Hudson
Institute;
Gary Arnold, Business Manager, Denver
Pipefitters Local 208 and;
Tyler O'Connor, Partner, Crowell & Moring
LLP.
On March 5, 2025, the Subcommittee on Energy held a hearing
on H.R. 3628, titled ``Scaling for Growth: Meeting the Demand
for Reliable, Affordable Electricity.'' The Subcommittee
received testimony from:
Todd Brickhouse, CEO and General Manager,
Basin Electric Power Cooperative;
Asim Haque, Senior Vice President for
Governmental and Member Services, PJM;
Noel W. Black, Senior VP of Regulatory
Affairs, Southern Company and;
Tyler H. Norris, James B. Duke Fellow, Duke
University.
On March 25, 2025, the Subcommittee on Energy held a
hearing on H.R. 3628, titled ``Keeping the Lights On: Examining
the State of Regional Grid Reliability.'' The Subcommittee
received testimony from:
Gordon van Welie, President and Chief
Executive Officer, ISO New England;
Richard J. Dewey, President and Chief
Executive Officer, New York Independent System
Operator;
Manu Asthana, President and Chief Executive
Officer, PJM Interconnection LLC;
Jennifer Curran, Senior Vice President for
Planning and Operations, Midcontinent ISO;
Lanny Nickell, Chief Operating Officer,
Southwest Power Pool;
Elliot Mainzer, President and Chief
Executive Officer, California Independent System
Operator and;
Pablo Vegas, President and Chief Executive
Officer, Electric Reliability Council of Texas, Inc.
On April 9, 2025, the Committee on Energy and Commerce held
a hearing on H.R. 3628, titled ``Converting Energy into
Intelligence: The Future of AI Technology, Human Discovery, and
American Global Competitiveness.'' The Committee received
testimony from:
Eric Schmidt, Chair, Special Competitive
Studies Project;
Manish Bhatia, Executive Vice President of
Global Operations, Micron Technology;
Alexander Wang, Founder and Chief Executive
Officer, Scale AI, and;
David Turk, Distinguished Visiting Fellow,
Center on Global Energy Policy, Columbia University.
On April 30, 2025, the Subcommittee on Energy held a
legislative hearing on H.R. 3628, titled ``Assuring Abundant,
Reliable American Energy to Power Innovation.'' The
Subcommittee received testimony from:
Mike Goff, Acting Undersecretary of Energy,
U.S. Department of Energy;
David L. Morenoff, Acting General Counsel,
Federal Energy Regulatory Commission;
Terry Turpin, Director, Office of Energy
Projects, Federal Energy Regulatory Commission;
Jim Matheson, Chief Executive Officer,
National Rural Electric Cooperative Association;
Amy Andryszak, President and Chief Executive
Officer, Interstate Natural Gas Association of America;
Todd A. Snitchler, President and Chief
Executive Officer, Electric Power Supply Association
and;
Kim Smaczniak, Partner, Roselle LLP.
Committee Cost Estimate
Pursuant to clause 3(d)(1) of rule XIII, the Committee
adopts as its own the cost estimate prepared by the Director of
the Congressional Budget Office pursuant to section 402 of the
Congressional Budget Act of 1974. At the time this report was
filed, the estimate was not available.
Earmark, Limited Tax Benefits, and Limited Tariff Benefits
Pursuant to clause 9(e), 9(f), and 9(g) of rule XXI, the
Committee finds that H.R. 3628 contains no earmarks, limited
tax benefits, or limited tariff benefits.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Section-by-Section Analysis of the Legislation
Section 1. Short title
Section 1 provides that the Act may be cited as the ``State
Planning for Reliability and Affordability Act''.
Section 2. State consideration of reliable generation
Section 2 amends section 111(d) of PURPA to include a
provision for states to consider requiring utilities include
sufficient reliable generation over a 10-year planning period
in integrated resource plans. This section also includes
conforming amendments for how states must consider implementing
requirements of this section.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italics, and existing law in which no
change is proposed is shown in roman):
PUBLIC UTILITY REGULATORY POLICIES ACT OF 1978
* * * * * * *
TITLE I--RETAIL REGULATORY
POLICIES FOR ELECTRIC UTILITIES
* * * * * * *
Subtitle B--Standards For Electric Utilities
SEC. 111. CONSIDERATION AND DETERMINATION RESPECTING CERTAIN
RATEMAKING STANDARDS.
(a) Consideration and Determination.--Each State regulatory
authority (with respect to each electric utility for which it
has ratemaking authority) and each nonregulated electric
utility shall consider each standard established by subsection
(d) and make a determination concerning whether or not it is
appropriate to implement such standard to carry out the
purposes of this title. For purposes of such consideration and
determination in accordance with subsections (b) and (c), and
for purposes of any review of such consideration and
determination in any court in accordance with section 123, the
purposes of this title supplement otherwise applicable State
law. Nothing in this subsection prohibits any State regulatory
authority or nonregulated electric utility from making any
determination that it is not appropriate to implement any such
standard, pursuant to its authority under otherwise applicable
State law.
(b) Procedural Requirements for Consideration and
Determination.--(1) The consideration referred to in subsection
(a) shall be made after public notice and hearing. The
determination referred to in subsection (a) shall be--
(A) in writing,
(B) based upon findings included in such
determination and upon the evidence presented at the
hearing, and
(C) available to the public.
(2) Except as otherwise provided in paragraph (1), in the
second sentence of section 112(a), and in sections 121 and 122,
the procedures for the consideration and determination referred
to in subsection (a) shall be those established by the State
regulatory authority or the nonregulated electric utility.
(c) Implementation.--(1) The State regulatory authority (with
respect to each electric utility for which it has ratemaking
authority) or nonregulated electric utility may, to the extent
consistent with otherwise applicable State law--
(A) implement any such standard determined under
subsection (a) to be appropriate to carry out the
purposes of this title, or
(B) decline to implement any such standard.
(2) If a State regulatory authority (with respect to each
electric utility for which it has ratemaking authority) or
nonregulated electric utility declines to implement any
standard established by subsection (d) which is determined
under subsection (a) to be appropriate to carry out the
purposes of this title, such authority or nonregulated electric
utility shall state in writing the reasons therefor. Such
statement of reasons shall be available to the public.
(3) If a State regulatory authority implements a
standard established by subsection (d)(7) or (8), such
authority shall--
(A) consider the impact that implementation
of such standard would have on small businesses
engaged in the design, sale, supply,
installation or servicing of energy
conservation, energy efficiency or other demand
side management measures, and
(B) implement such standard so as to assure
that utility actions would not provide such
utilities with unfair competitive advantages
over such small businesses.
(d) Establishment.--The following Federal standards are
hereby established:
(1) Cost of service.--Rates charged by any electric
utility for providing electric service to each class of
electric consumers shall be designed, to the maximum
extent practicable, to reflect the cost of providing
electric service to such class, as determined under
section 115(a).
(2) Declining block rates.--The energy component of a
rate, or the amount attributable to the energy
component in a rate, charged by any electric utility
for providing electric service during any period to any
class of electric consumers may not decrease as
kilowatt-hour consumption by such class increases
during such period except to the extent that such
utility demonstrates that the costs to such utility of
providing electric service to such class, which costs
are attributable to such energy component, decrease as
such consumption increases during such period.
(3) Time-of-day rates.--The rates charged by any
electric utility for providing electric service to such
class of electric consumers shall be on a time-of-day
basis which reflects the costs of providing electric
service to such class of electric consumers at
different times of the day unless such rates are not
cost-effective with respect to such class, as
determined under section 115(b).
(4) Seasonal rates.--The rates charged by an electric
utility for providing electric service to each class of
electric consumers shall be on a seasonal basis which
reflects the costs of providing service to each class
of consumers at different seasons of the year to the
extent that such costs vary seasonally for such
utility.
(5) Interruptible rates.--Each electric utility shall
offer each industrial and commercial electric consumer
an interruptible rate which reflects the cost of
providing interruptible service to the class of which
such consumer is a member.
(6) Load management techniques.--Each electric
utility shall offer to its electric consumers such load
management techniques as the State regulatory authority
(or the nonregulated electric utility) has determined
will--
(A) be practicable and cost-effective, as
determined under section 115(c),
(B) be reliable, and
(C) provide useful energy or capacity
management advantages to the electric utility.
(7) Integrated resource planning.--Each electric
utility shall employ integrated resource planning. All
plans or filings before a State regulatory authority to
meet the requirements of this paragraph must be updated
on a regular basis, must provide the opportunity for
public participation and comment, and contain a
requirement that the plan be implemented.
(8) Investments in conservation and demand
management.--The rates allowed to be charged by a State
regulated electric utility shall be such that the
utility's investment in and expenditures for energy
conservation, energy efficiency resources, and other
demand side management measures are at least as
profitable, giving appropriate consideration to income
lost from reduced sales due to investments in and
expenditures for conservation and efficiency, as its
investments in and expenditures for the construction of
new generation, transmission, and distribution
equipment. Such energy conservation, energy efficiency
resources and other demand side management measures
shall be appropriately monitored and evaluated.
(9) Energy efficiency investments in power generation
and supply.--The rates charged by any electric utility
shall be such that the utility is encouraged to make
investments in, and expenditures for, all cost-
effective improvements in the energy efficiency of
power generation, transmission and distribution. In
considering regulatory changes to achieve the
objectives of this paragraph, State regulatory
authorities and nonregulated electric utilities shall
consider the disincentives caused by existing
ratemaking policies, and practices, and consider
incentives that would encourage better maintenance, and
investment in more efficient power generation,
transmission and distribution equipment.
(10) Consideration of the effects of wholesale power
purchases on utility cost of capital; effects of
leveraged capital structures on the reliability of
wholesale power sellers; and assurance of adequate fuel
supplies.--(A) To the extent that a State regulatory
authority requires or allows electric utilities for
which it has ratemaking authority to consider the
purchase of long-term wholesale power supplies as a
means of meeting electric demand, such authority shall
perform a general evaluation of:
(i) the potential for increases or decreases
in the costs of capital for such utilities, and
any resulting increases or decreases in the
retail rates paid by electric consumers, that
may result from purchases of long-term
wholesale power supplies in lieu of the
construction of new generation facilities by
such utilities;
(ii) whether the use by exempt wholesale
generators (as defined in section 32 of the
Public Utility Holding Company Act of 1935) of
capital structures which employ proportionally
greater amounts of debt than the capital
structures of such utilities threatens
reliability or provides an unfair advantage for
exempt wholesale generators over such
utilities;
(iii) whether to implement procedures for the
advance approval or disapproval of the purchase
of a particular long-term wholesale power
supply; and
(iv) whether to require as a condition for
the approval of the purchase of power that
there be reasonable assurances of fuel supply
adequacy.
(B) For purposes of implementing the provisions of
this paragraph, any reference contained in this section
to the date of enactment of the Public Utility
Regulatory Policies Act of 1978 shall be deemed to be a
reference to the date of enactment of this paragraph.
(C) Notwithstanding any other provision of Federal
law, nothing in this paragraph shall prevent a State
regulatory authority from taking such action, including
action with respect to the allowable capital structure
of exempt wholesale generators, as such State
regulatory authority may determine to be in the public
interest as a result of performing evaluations under
the standards of subparagraph (A).
(D) Notwithstanding section 124 and paragraphs (1)
and (2) of section 112(a), each State regulatory
authority shall consider and make a determination
concerning the standards of subparagraph (A) in
accordance with the requirements of subsections (a) and
(b) of this section, without regard to any proceedings
commenced prior to the enactment of this paragraph.
(E) Notwithstanding subsections (b) and (c) of
section 112, each State regulatory authority shall
consider and make a determination concerning whether it
is appropriate to implement the standards set out in
subparagraph (A) not later than one year after the date
of enactment of this paragraph.
(11) Net metering.--Each electric utility shall make
available upon request net metering service to any
electric consumer that the electric utility serves. For
purposes of this paragraph, the term ``net metering
service'' means service to an electric consumer under
which electric energy generated by that electric
consumer from an eligible on-site generating facility
and delivered to the local distribution facilities may
be used to offset electric energy provided by the
electric utility to the electric consumer during the
applicable billing period.
(12) Fuel sources.--Each electric utility shall
develop a plan to minimize dependence on 1 fuel source
and to ensure that the electric energy it sells to
consumers is generated using a diverse range of fuels
and technologies, including renewable technologies.
(13) Fossil fuel generation efficiency.--Each
electric utility shall develop and implement a 10-year
plan to increase the efficiency of its fossil fuel
generation.
(14) Time-based metering and communications.--(A) Not
later than 18 months after the date of enactment of
this paragraph, each electric utility shall offer each
of its customer classes, and provide individual
customers upon customer request, a time-based rate
schedule under which the rate charged by the electric
utility varies during different time periods and
reflects the variance, if any, in the utility's costs
of generating and purchasing electricity at the
wholesale level. The time-based rate schedule shall
enable the electric consumer to manage energy use and
cost through advanced metering and communications
technology.
(B) The types of time-based rate schedules that may
be offered under the schedule referred to in
subparagraph (A) include, among others--
(i) time-of-use pricing whereby electricity
prices are set for a specific time period on an
advance or forward basis, typically not
changing more often than twice a year, based on
the utility's cost of generating and/or
purchasing such electricity at the wholesale
level for the benefit of the consumer. Prices
paid for energy consumed during these periods
shall be pre-established and known to consumers
in advance of such consumption, allowing them
to vary their demand and usage in response to
such prices and manage their energy costs by
shifting usage to a lower cost period or
reducing their consumption overall;
(ii) critical peak pricing whereby time-of-
use prices are in effect except for certain
peak days, when prices may reflect the costs of
generating and/or purchasing electricity at the
wholesale level and when consumers may receive
additional discounts for reducing peak period
energy consumption;
(iii) real-time pricing whereby electricity
prices are set for a specific time period on an
advanced or forward basis, reflecting the
utility's cost of generating and/or purchasing
electricity at the wholesale level, and may
change as often as hourly; and
(iv) credits for consumers with large loads
who enter into pre-established peak load
reduction agreements that reduce a utility's
planned capacity obligations.
(C) Each electric utility subject to subparagraph (A)
shall provide each customer requesting a time-based
rate with a time-based meter capable of enabling the
utility and customer to offer and receive such rate,
respectively.
(D) For purposes of implementing this paragraph, any
reference contained in this section to the date of
enactment of the Public Utility Regulatory Policies Act
of 1978 shall be deemed to be a reference to the date
of enactment of this paragraph.
(E) In a State that permits third-party marketers to
sell electric energy to retail electric consumers, such
consumers shall be entitled to receive the same time-
based metering and communications device and service as
a retail electric consumer of the electric utility.
(F) Notwithstanding subsections (b) and (c) of
section 112, each State regulatory authority shall, not
later than 18 months after the date of enactment of
this paragraph conduct an investigation in accordance
with section 115(i) and issue a decision whether it is
appropriate to implement the standards set out in
subparagraphs (A) and (C).
(15) Interconnection.--Each electric utility shall
make available, upon request, interconnection service
to any electric consumer that the electric utility
serves. For purposes of this paragraph, the term
``interconnection service'' means service to an
electric consumer under which an on-site generating
facility on the consumer's premises shall be connected
to the local distribution facilities. Interconnection
services shall be offered based upon the standards
developed by the Institute of Electrical and
Electronics Engineers: IEEE Standard 1547 for
Interconnecting Distributed Resources with Electric
Power Systems, as they may be amended from time to
time. In addition, agreements and procedures shall be
established whereby the services are offered shall
promote current best practices of interconnection for
distributed generation, including but not limited to
practices stipulated in model codes adopted by
associations of state regulatory agencies. All such
agreements and procedures shall be just and reasonable,
and not unduly discriminatory or preferential.
(16) Integrated resource planning.--Each electric
utility shall--
(A) integrate energy efficiency resources
into utility, State, and regional plans; and
(B) adopt policies establishing cost-
effective energy efficiency as a priority
resource.
(17) Rate design modifications to promote energy
efficiency investments.--
(A) In general.--The rates allowed to be
charged by any electric utility shall--
(i) align utility incentives with the
delivery of cost-effective energy
efficiency; and
(ii) promote energy efficiency
investments.
(B) Policy options.--In complying with
subparagraph (A), each State regulatory
authority and each nonregulated utility shall
consider--
(i) removing the throughput incentive
and other regulatory and management
disincentives to energy efficiency;
(ii) providing utility incentives for
the successful management of energy
efficiency programs;
(iii) including the impact on
adoption of energy efficiency as 1 of
the goals of retail rate design,
recognizing that energy efficiency must
be balanced with other objectives;
(iv) adopting rate designs that
encourage energy efficiency for each
customer class;
(v) allowing timely recovery of
energy efficiency-related costs; and
(vi) offering home energy audits,
offering demand response programs,
publicizing the financial and
environmental benefits associated with
making home energy efficiency
improvements, and educating homeowners
about all existing Federal and State
incentives, including the availability
of low-cost loans, that make energy
efficiency improvements more
affordable.
(18) Consideration of smart grid investments.--
(A) In general.--Each State shall consider
requiring that, prior to undertaking
investments in nonadvanced grid technologies,
an electric utility of the State demonstrate to
the State that the electric utility considered
an investment in a qualified smart grid system
based on appropriate factors, including--
(i) total costs;
(ii) cost-effectiveness;
(iii) improved reliability;
(iv) security;
(v) system performance; and
(vi) societal benefit.
(B) Rate recovery.--Each State shall consider
authorizing each electric utility of the State
to recover from ratepayers any capital,
operating expenditure, or other costs of the
electric utility relating to the deployment of
a qualified smart grid system, including a
reasonable rate of return on the capital
expenditures of the electric utility for the
deployment of the qualified smart grid system.
(C) Obsolete equipment.--Each State shall
consider authorizing any electric utility or
other party of the State to deploy a qualified
smart grid system to recover in a timely manner
the remaining book-value costs of any equipment
rendered obsolete by the deployment of the
qualified smart grid system, based on the
remaining depreciable life of the obsolete
equipment.
(19) Smart grid information.--
(A) Standard.--All electricity purchasers
shall be provided direct access, in written or
electronic machine-readable form as
appropriate, to information from their
electricity provider as provided in
subparagraph (B).
(B) Information.--Information provided under
this section, to the extent practicable, shall
include:
(i) Prices.--Purchasers and other
interested persons shall be provided
with information on--
(I) time-based electricity
prices in the wholesale
electricity market; and
(II) time-based electricity
retail prices or rates that are
available to the purchasers.
(ii) Usage.--Purchasers shall be
provided with the number of electricity
units, expressed in kwh, purchased by
them.
(iii) Intervals and projections.--
Updates of information on prices and
usage shall be offered on not less than
a daily basis, shall include hourly
price and use information, where
available, and shall include a day-
ahead projection of such price
information to the extent available.
(iv) Sources.--Purchasers and other
interested persons shall be provided
annually with written information on
the sources of the power provided by
the utility, to the extent it can be
determined, by type of generation,
including greenhouse gas emissions
associated with each type of
generation, for intervals during which
such information is available on a
cost-effective basis.
(C) Access.--Purchasers shall be able to
access their own information at any time
through the Internet and on other means of
communication elected by that utility for Smart
Grid applications. Other interested persons
shall be able to access information not
specific to any purchaser through the Internet.
Information specific to any purchaser shall be
provided solely to that purchaser.
(20) Demand-response practices.--
(A) In general.--Each electric utility shall
promote the use of demand-response and demand
flexibility practices by commercial,
residential, and industrial consumers to reduce
electricity consumption during periods of
unusually high demand.
(B) Rate recovery.--
(i) In general.--Each State
regulatory authority shall consider
establishing rate mechanisms allowing
an electric utility with respect to
which the State regulatory authority
has ratemaking authority to timely
recover the costs of promoting demand-
response and demand flexibility
practices in accordance with
subparagraph (A).
(ii) Nonregulated electric
utilities.--A nonregulated electric
utility may establish rate mechanisms
for the timely recovery of the costs of
promoting demand-response and demand
flexibility practices in accordance
with subparagraph (A).
(21) Electric vehicle charging programs.--Each State
shall consider measures to promote greater
electrification of the transportation sector, including
the establishment of rates that--
(A) promote affordable and equitable electric
vehicle charging options for residential,
commercial, and public electric vehicle
charging infrastructure;
(B) improve the customer experience
associated with electric vehicle charging,
including by reducing charging times for light-
, medium-, and heavy-duty vehicles;
(C) accelerate third-party investment in
electric vehicle charging for light-, medium-,
and heavy-duty vehicles; and
(D) appropriately recover the marginal costs
of delivering electricity to electric vehicles
and electric vehicle charging infrastructure.
(22) Ensuring electric reliability with reliable
generation facilities.--
(A) In general.--Each State regulated
electric utility that employs integrated
resource planning shall establish, as part of
such integrated resource planning, measures,
sufficient to ensure the reliable availability
of electric energy over a 10-year period, to
maintain--
(i) the operation of reliable
generation facilities; or
(ii) the procurement of electric
energy from reliable generation
facilities.
(B) Reliable generation facility defined.--In
this paragraph, the term ``reliable generation
facility'' means an electric generation
facility that ensures the reliable availability
of electric energy by--
(i) having operational
characteristics to enable the
generation of electric energy on a
continuous basis for a period of not
fewer than 30 days;
(ii) having--
(I) adequate fuel, or a
continuously available energy
source, on-site to enable the
generation of electric energy
on a continuous basis for a
period of not fewer than 30
days; or
(II) contractual obligations
that ensure adequate fuel
supply to achieve the
generation of electric energy
on a continuous basis for a
period of not fewer than 30
days;
(iii) having operational
characteristics to enable the
generation of electric energy during
emergency and severe weather
conditions; and
(iv) providing essential services
related to the reliable availability of
electric energy, including frequency
support and voltage support.
SEC. 112. OBLIGATIONS TO CONSIDER AND DETERMINE.
(a) Request for Consideration and Determination.--Each State
regulatory authority (with respect to each electric utility for
which it has ratemaking authority) and each nonregulated
electric utility may undertake the consideration and make the
determination referred to in section 111 with respect to any
standard established by section 111(d) in any proceeding
respecting the rates of the electric utility. Any participant
or intervenor (including an intervenor referred to in section
121) in such a proceeding may request, and shall obtain, such
consideration and determination in such proceeding. In
undertaking such consideration and making such determination in
any such proceeding with respect to the application to any
electric utility of any standard established by section 111(d),
a State regulatory authority (with respect to an electric
utility for which it has ratemaking authority) or nonregulated
electric utility may take into account in such proceeding--
(1) any appropriate prior determination with respect
to such standard--
(A) which is made in a proceeding which takes
place after the date of the enactment of this
Act, or
(B) which was made before such date (or is
made in a proceeding pending on such date) and
complies, as provided in section 124, with the
requirements of this title; and
(2) the evidence upon which such prior determination
was based (if such evidence is referenced in such
proceeding).
(b) Time Limitations.--(1) Not later than 2 years after the
date of the enactment of this Act (or after the enactment of
the Comprehensive National Energy Policy Act in the case of
standards under paragraphs (7), (8), and (9) of section
111(d)), each State regulatory authority (with respect to each
electric utility for which it has ratemaking authority) and
each nonregulated electric utility shall commence the
consideration referred to in section 111, or set a hearing date
for such consideration, with respect to each standard
established by section 111(d).
(2) Not later than three years after the date of the
enactment of this Act (or after the enactment of the
Comprehensive National Energy Policy Act in the case of
standards under paragraphs (7), (8), and (9) of section
111(d)), each State regulatory authority (with respect to each
electric utility for which it has ratemaking authority), and
each nonregulated electric utility, shall complete the
consideration, and shall make the determination, referred to in
section 111 with respect to each standard established by
section 111(d).
(3)(A) Not later than 2 years after the enactment of this
paragraph, each State regulatory authority (with respect to
each electric utility for which it has ratemaking authority)
and each nonregulated electric utility shall commence the
consideration referred to in section 111, or set a hearing date
for such consideration, with respect to each standard
established by paragraphs (11) through (13) of section 111(d).
(B) Not later than 3 years after the date of the enactment of
this paragraph, each State regulatory authority (with respect
to each electric utility for which it has ratemaking
authority), and each nonregulated electric utility, shall
complete the consideration, and shall make the determination,
referred to in section 111 with respect to each standard
established by paragraphs (11) through (13) of section 111(d).
(4)(A) Not later than 1 year after the enactment of
this paragraph, each State regulatory authority (with
respect to each electric utility for which it has
ratemaking authority) and each nonregulated electric
utility shall commence the consideration referred to in
section 111, or set a hearing date for such
consideration, with respect to the standard established
by paragraph (14) of section 111(d).
(B) Not later than 2 years after the date of the
enactment of this paragraph, each State regulatory
authority (with respect to each electric utility for
which it has ratemaking authority), and each
nonregulated electric utility, shall complete the
consideration, and shall make the determination,
referred to in section 111 with respect to the standard
established by paragraph (14) of section 111(d).
(5)(A) Not later than 1 year after the enactment of
this paragraph, each State regulatory authority (with
respect to each electric utility for which it has
ratemaking authority) and each nonregulated utility
shall commence the consideration referred to in section
111, or set a hearing date for consideration, with
respect to the standard established by paragraph (15)
of section 111(d).
(B) Not later than two years after the date of the
enactment of the this paragraph, each State regulatory
authority (with respect to each electric utility for
which it has ratemaking authority), and each
nonregulated electric utility, shall complete the
consideration, and shall make the determination,
referred to in section 111 with respect to each
standard established by paragraph (15) of section
111(d).
(6)(A) Not later than 1 year after the enactment of
this paragraph, each State regulatory authority (with
respect to each electric utility for which it has
ratemaking authority) and each nonregulated utility
shall commence the consideration referred to in section
111, or set a hearing date for consideration, with
respect to the standards established by paragraphs (16)
through (19) of section 111(d).
(B) Not later than 2 years after the date of the
enactment of this paragraph, each State regulatory
authority (with respect to each electric utility for
which it has ratemaking authority), and each
nonregulated electric utility, shall complete the
consideration, and shall make the determination,
referred to in section 111 with respect to each
standard established by paragraphs (16) through (19) of
section 111(d).
(7)(A) Not later than 1 year after the date of
enactment of this paragraph, each State regulatory
authority (with respect to each electric utility for
which the State has ratemaking authority) and each
nonregulated electric utility shall commence
consideration under section 111, or set a hearing date
for consideration, with respect to the standard
established by paragraph (20) of section 111(d).
(B) Not later than 2 years after the date of
enactment of this paragraph, each State regulatory
authority (with respect to each electric utility for
which the State has ratemaking authority), and each
nonregulated electric utility shall complete the
consideration and make the determination under section
111 with respect to the standard established by
paragraph (20) of section 111(d).
(8)(A) Not later than 1 year after the date of
enactment of this paragraph, each State regulatory
authority (with respect to each electric utility for
which the State has ratemaking authority) and each
nonregulated utility shall commence consideration under
section 111, or set a hearing date for consideration,
with respect to the standard established by paragraph
(21) of section 111(d).
(B) Not later than 2 years after the date of
enactment of this paragraph, each State
regulatory authority (with respect to each
electric utility for which the State has
ratemaking authority), and each nonregulated
electric utility shall complete the
consideration and make the determination under
section 111 with respect to the standard
established by paragraph (21) of section
111(d).
(9)(A) Not later than 1 year after the date of
enactment of this paragraph, each State regulatory
authority (with respect to each State regulated
electric utility for which the State has ratemaking
authority) shall commence consideration under section
111, or set a hearing date for consideration, with
respect to the standard established by paragraph (22)
of section 111(d).
(B) Not later than 2 years after the date of
enactment of this paragraph, each State regulatory
authority (with respect to each State regulated
electric utility for which the State has ratemaking
authority) shall complete the consideration and make
the determination under section 111 with respect to the
standard established by paragraph (22) of section
111(d).
(c) Failure To Comply.--Each State regulatory authority (with
respect to each electric utility for which it has ratemaking
authority) and each nonregulated electric utility shall
undertake the consideration, and make the determination,
referred to in section 111 with respect to each standard
established by section 111(d) in the first rate proceeding
commenced after the date three years after the date of
enactment of this Act respecting the rates of such utility if
such State regulatory authority or nonregulated electric
utility has not, before such date, complied with [subsection
(b)(2)] subsection (b) with respect to such standard. In the
case of each standard established by paragraphs (11) through
(13) of section 111(d), the reference contained in this
subsection to the date of enactment of this Act shall be deemed
to be a reference to the date of enactment of such paragraphs
(11) through (13). In the case of the standard established by
paragraph (14) of section 111(d), the reference contained in
this subsection to the date of enactment of this Act shall be
deemed to be a reference to the date of enactment of such
paragraph (14). In the case of the standard established by
paragraph (15) of section 111(d), the reference contained in
this subsection to the date of enactment of this Act shall be
deemed to be a reference to the date of enactment of that
paragraph (15). In the case of the standards established by
paragraphs (16) through (19) of section 111(d), the reference
contained in this subsection to the date of enactment of this
Act shall be deemed to be a reference to the date of enactment
of such paragraphs. In the case of the standard established by
paragraph (20) of section 111(d), the reference contained in
this subsection to the date of enactment of this Act shall be
deemed to be a reference to the date of enactment of that
paragraph (20). In the case of the standard established by
paragraph (21) of section 111(d), the reference contained in
this subsection to the date of enactment of this Act shall be
deemed to be a reference to the date of enactment of that
paragraph (21). In the case of the standard established by
paragraph (22) of section 111(d), the reference contained in
this subsection to the date of enactment of this Act shall be
deemed to be a reference to the date of enactment of that
paragraph (22).
(d) Prior State Actions.--Subsections (b) and (c) of this
section shall not apply to the standards established by
paragraphs (11) through (13) and paragraphs (16) through (19)
of section 111(d) in the case of any electric utility in a
State if, before the enactment of this subsection--
(1) the State has implemented for such utility the
standard concerned (or a comparable standard);
(2) the State regulatory authority for such State or
relevant nonregulated electric utility has conducted a
proceeding to consider implementation of the standard
concerned (or a comparable standard) for such utility;
or
(3) the State legislature has voted on the
implementation of such standard (or a comparable
standard) for such utility.
(e) Prior State Actions.--Subsections (b) and (c) of this
section shall not apply to the standard established by
paragraph (14) of section 111(d) in the case of any electric
utility in a State if, before the enactment of this
subsection--
(1) the State has implemented for such utility the
standard concerned (or a comparable standard);
(2) the State regulatory authority for such State or
relevant nonregulated electric utility has conducted a
proceeding to consider implementation of the standard
concerned (or a comparable standard) for such utility
within the previous 3 years; or
(3) the State legislature has voted on the
implementation of such standard (or a comparable
standard) for such utility within the previous 3 years.
(f) Prior State Actions.--Subsections (b) and (c) of this
section shall not apply to the standard established by
paragraph (15) of section 111(d) in the case of any electric
utility in a State if, before the enactment of this
subsection--
(1) the State has implemented for such utility the
standard concerned (or a comparable standard);
(2) the State regulatory authority for such State or
relevant nonregulated electric utility has conducted a
proceeding to consider implementation of the standard
concerned (or a comparable standard) for such utility;
or
(3) the State legislature has voted on the
implementation of such standard (or a comparable
standard) for such utility.
(g) Prior State Actions.--Subsections (b) and (c) shall not
apply to the standard established by paragraph (20) of section
111(d) in the case of any electric utility in a State if,
before the date of enactment of this subsection--
(1) the State has implemented for the electric
utility the standard (or a comparable standard);
(2) the State regulatory authority for the State or
the relevant nonregulated electric utility has
conducted a proceeding to consider implementation of
the standard (or a comparable standard) for the
electric utility; or
(3) the State legislature has voted on the
implementation of the standard (or a comparable
standard) for the electric utility.
(h) Other Prior State Actions.--Subsections (b) and (c) shall
not apply to the standard established by paragraph (21) of
section 111(d) in the case of any electric utility in a State
if, before the date of enactment of this subsection--
(1) the State has implemented for the electric
utility the standard (or a comparable standard);
(2) the State regulatory authority for the State or
the relevant nonregulated electric utility has
conducted a proceeding to consider implementation of
the standard (or a comparable standard) for the
electric utility; or
(3) the State legislature has voted on the
implementation of the standard (or a comparable
standard) for the electric utility during the 3-year
period ending on that date of enactment.
(i) Other Prior State Actions.--Subsections (b) and (c) shall
not apply to the standard established by paragraph (22) of
section 111(d) in the case of any State regulated electric
utility in a State if, before the date of enactment of this
subsection--
(1) the State has implemented for the State regulated
electric utility the standard (or a comparable
standard);
(2) the State regulatory authority for the State has
conducted a proceeding to consider implementation of
the standard (or a comparable standard) for the State
regulated electric utility; or
(3) the State legislature has voted on the
implementation of the standard (or a comparable
standard) for the State regulated electric utility
during the 3-year period ending on that date of
enactment.
* * * * * * *
Subtitle C--Intervention and Judicial Review
* * * * * * *
SEC. 124. PRIOR AND PENDING PROCEEDINGS.
For purposes of subtitle A and B, and this subtitle,
proceedings commenced by State regulatory authorities (with
respect to electric utilities for which it has ratemaking
authority) and nonregulated electric utilities before the date
of the enactment of this Act and actions taken before such date
in such proceedings shall be treated as complying with the
requirements of subtitles A and B, and this subtitle if such
proceedings and actions, substantially conform to such
requirements. For purposes of subtitles A and B, and this
subtitle, any such proceeding or action commenced before the
date of enactment of this Act, but not completed before such
date, shall comply with the requirements of subtitles A and B,
and this subtitle, to the maximum extent practicable, with
respect to so much of such proceeding or action as takes place
after such date, except as otherwise provided in section
121(c). In the case of each standard established by paragraphs
(11) through (13) of section 111(d), the reference contained in
this section to the date of enactment of this Act shall be
deemed to be a reference to the date of enactment of such
paragraphs (11) through (13). In the case of the standard
established by paragraph (14) of section 111(d), the reference
contained in this section to the date of enactment of this Act
shall be deemed to be a reference to the date of enactment of
such paragraph (14). In the case of each standard established
by paragraph (15) of section 111(d), the reference contained in
this section to the date of enactment of the Act shall be
deemed to be a reference to the date of enactment of paragraph
(15). In the case of the standard established by paragraph (20)
of section 111(d), the reference contained in this section to
the date of enactment of this Act shall be deemed to be a
reference to the date of enactment of that paragraph (20).In
the case of the standard established by paragraph (21) of
section 111(d), the reference contained in this section to the
date of enactment of this Act shall be deemed to be a reference
to the date of enactment of that paragraph (21). In the case of
the standard established by paragraph (22) of section 111(d),
the reference contained in this section to the date of
enactment of this Act shall be deemed to be a reference to the
date of enactment of that paragraph (22).
* * * * * * *
MINORITY VIEWS
H.R. 3628, the ``State Planning For Reliability and
Affordability Act,'' amends section 111(d) of the Public
Utility Regulatory Policies Act of 1978 (PURPA) to require
state public utility commissions to consider mandating that
utilities include measures to procure non- intermittent
electricity in their integrated resource plans.
This bill is a thinly veiled attack on clean energy and is
unnecessary. The definition of ``reliable generation facility''
used in the bill is designed to exclude clean energy resources
and energy storage technologies. If this bill becomes law, it
would require state utility commissions to consider revising
integrated resource planning requirements to include ``reliable
generation facilities,'' which the majority rightly points out
in their report includes natural gas and coal facilities. This
is particularly concerning given the potential for clean energy
coupled with energy storage to help utilities meet rapid load
growth, a problem the majority claims it is trying to solve
with this bill.
Additionally, the bill will create confusion for utilities
as it is not clear whether integrated resource plans that are
revised or created under this new standard would be required to
maintain operation of existing facilities in perpetuity, even
as technologies evolve or as facilities become expensive to
operate. The bill does not require the inclusion of cost-
benefit assessments, and could result in ineffective and
expensive facilities remaining online. H.R. 3628 is poorly
drafted and requires additional clarity.
In addition to our above concerns, H.R. 3628 is ultimately
unnecessary because PURPA already contains a definition of
integrated resource planning which encompasses reliability.
PURPA defines integrated resource planning as:
``. . . a planning and selection process for new energy
resources that evaluates the full range of
alternatives, including new generating capacity, power
purchases, energy conservation and efficiency,
cogeneration and district heating and cooling
applications, and renewable energy resources, in order
to provide adequate and reliable service to its
electric customers at the lowest system cost. The
process shall take into account necessary features for
system operation, such as diversity, reliability,
dispatchability, and other factors of risk; shall take
into account the ability to verify energy savings
achieved through energy conservation and efficiency and
the projected durability of such savings measured over
time; and shall treat demand and supply resources on a
consistent and integrated basis.''\1\
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\1\16 U.S.C Sec. 2602.
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Utilities that engage in integrated resource planning
already consider reliability. H.R. 3628 only politicizes this
process by adding constraints to how a utility configures its
generating mix.
Over the course of the 119th Congress, House Republicans
and the Trump Administration have repeatedly attacked and
targeted clean energy resources. Republicans' One Big Beautiful
Bill is projected to raise electricity prices by 61 percent
over the next decade.\2\ Additionally, President Trump's
determination to prolong the lifespan of retiring fossil fuel
plants could cost Americans up to $6 billion a year.\3\
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\2\Energy Innovation, Economic Impacts of U.S. Senate ``One Big
Beautiful Bill Act'' Energy Provisions (June 29, 2025).
\3\Grid Strategies, The Cost of Federal Mandates to Retain Fossil-
Burning Power Plants (August 2025).
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Republicans proceeded with these actions all while the
House Energy and Commerce Committee received testimony from
numerous witnesses who argued that clean energy resources and
distributed energy resources could be deployed quickly and are
critical to help meet rapid load growth.\4\ One witness
included in their written testimony the following endnote:
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\4\House Committee on Energy and Commerce, Testimony of Tyler
O'Connor, Partner, Crowell & Moring LLP, Hearing on Power America's
Future: Unleashing American Energy, 119th Cong. (Feb. 5, 2025).
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``Numerous utilities across the country have engaged
in planning processes to evaluate their needs in light
of retirements, demand growth projections, and other
relevant conditions. Many planners have determined that
the least-cost portfolio of resources that will
reliably meet electricity demand includes only modest
quantities of dispatchable resources.''\5\
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\5\House Committee on Energy and Commerce, Testimony of Kim
Smaczniak, Partner, Roselle LLP, Hearing on Assuring Reliable and
Abundant American Energy, 119th Cong. (April 30, 2025).
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H.R. 3628 is a disingenuous proposal that targets clean
energy projects, doubles down on fossil fuels, and does not
seriously attempt to address concerns of load growth or grid
reliability. Utilities that engage in integrated resource
planning are already considering reliability and should be
allowed to consider the generating mix that best fits their
needs. For the reasons stated above, I oppose this legislation.
Frank Pallone, Jr.
Ranking Member.
[all]