Regulatory Affairs news highlights: July 2024

 

Recent regulatory headlines we’re tracking include:

FERC accepts new cold weather standard and directs modifications 

On June 27, FERC approved an order accepting NERC’s proposed Reliability Standard EOP-012-2 (Extreme Cold Weather Preparedness and Operations). The order also directs modifications within nine months: 

• To address concerns related to the term “Generator Cold Weather Constraint,” to make it objective and detailed enough for entities to understand what is required (and remove phrases such as “reasonable [or] unreasonable costs” and “good business practices” in favor of “objective, unambiguous and auditable terms”); 
• For NERC to evaluate and confirm the validity of each Generator Cold Weather Constraint invoked by a Generator Owner to ensure that the declaration can’t be used to avoid mandatory compliance with the Reliability Standard or obligations in a corrective action plan; 
• To shorten and clarify corrective action plan implementation timelines and deadlines in Requirement R7; and 
• To implement more frequent reviews of Generator Cold Weather Constraint declarations to verify that the constraint declaration remains valid. 

 

FERC approves NERC Rules of Procedure revisions on inverter-based resource registration 

On June 27, FERC also approved an order accepting NERC’s proposed Rules of Procedure (ROP) revisions on registration of owners and operators of inverter-based resources (IBRs) that are connected to the Bulk Power System (BPS) and have an aggregate material impact on BPS reliability. More specifically, the revisions formalize the threshold for registration to include entities that own or operate non-BES IBR resources that: “(1) have or contribute to an aggregate nameplate capacity greater than or equal to 20 MVA; and are (2) connected through a system designed primarily for delivering such capacity to a common point of connection at a voltage greater than or equal to 60 kV.” In NERC’s filing, NERC noted that this would result in about 97.5% of BPS IBRs being subject to registration and compliance with applicable Reliability Standards.   

The order also directs NERC to submit a compliance filing within 60 days explaining whether the revisions would apply to the registration of owners and operators of battery storage resources, fuel cells, and all other IBR technologies (and if not, what NERC’s plan is to include those resources).    

 

FERC issues advance notice of proposed rulemaking on dynamic line ratings requirements 

 On June 27, FERC staff presented (and the Commissioners approved) an Advance Notice of Proposed Rulemaking (ANOPR) on dynamic line ratings requirements for transmission providers. (Transmission line ratings represent the maximum transfer capability of each transmission line, which can change based on weather conditions. Dynamic line ratings are transmission line ratings that reflect updated forecasts of weather conditions, such as ambient air temperature, wind, and solar heating).  FERC staff discussed how dynamic line ratings are more accurate, which allows for more efficient power flow, increased reliability, and reduced congestion. The ANOPR proposes requiring dynamic line ratings that reflect: 1) solar heating based on the sun’s position and forecasted cloud cover, and 2) forecasts of wind speed and direction for specific transmission lines in windy and congested areas. Before moving forward, FERC will collect more information on dynamic line ratings based on specific questions it asks in the ANOPR, with comments due in 90 days. Additional information can be found here. 

 

President signs bill supporting nuclear energy 

In late June, the U.S. Senate passed new nuclear legislation, the “Accelerating Deployment of Versatile, Advanced Nuclear for Clean Energy (ADVANCE) Act of 2024” as part of the Fire Grants and Safety Act (S. 870), with broad bipartisan support. On July 9, President Biden signed the bill into law. The law aims to bolster the country’s nuclear capabilities (and add to the existing nuclear fleet) in several ways: 

• Supporting the development and deployment of new nuclear technologies by 1) reducing regulatory costs for companies licensing advanced nuclear reactor technologies; 2) incentivizing the deployment of next-generation reactor technologies; and 3) requiring the Nuclear Regulatory Commission (NRC) to develop a pathway for timely licensing microreactors and nuclear facilities at brownfield and retired fossil-fuel energy generation sites. 
• Strengthening the U.S. nuclear energy fuel cycle and supply chain infrastructure by 1) directing the NRC to enhance its ability to qualify and license accident-tolerant and advanced nuclear fuels for existing reactors and the next generation of advanced reactors; and 2) directing the NRC to evaluate advanced manufacturing techniques to build nuclear reactors. 
• Improving the NRC’s efficiency by 1) allowing the NRC flexibility to better manage and invest its resources in activities that support its modernization efforts and address staffing issues; and 2) giving the NRC Chair more tools to hire and retain well-qualified individuals to review and process applications for advanced nuclear reactor licenses.