Regulatory Affairs news highlights: September 2024

 

Recent regulatory headlines we’re tracking include:

FERC announces annual reliability technical conference

The Federal Energy Regulatory Commission (FERC) has announced it will be holding its annual reliability technical conference on Oct. 16 from 10 a.m. – 12 p.m. EST. The conference will take place at FERC’s Washington, D.C., headquarters but will also be available to stream online. The purpose of the technical conference is to discuss policy issues related to the reliability and security of the bulk power system, and a more detailed agenda will be released in the future.

 

FERC to hold technical conference focused on colocation of large electric loads at generating facilities

FERC also recently announced that it will be holding a technical conference to discuss issues related to the colocation of large electric loads (such as data centers or large manufacturing plants) at generating facilities. The conference will take place on Nov. 1 from 10 a.m. – 3 p.m. EST at FERC’s Washington, D.C., headquarters, and there will be a live webcast. Since the rise in data centers and their high demand on the grid, many (including U.S. lawmakers) have expressed concerns that the colocation of data centers with generating facilities will take reliable and needed sources of generation off the market. FERC stated that the issues to be explored at the technical conference include whether co-located loads require the provision of wholesale transmission or ancillary services, related cost allocation issues, and potential resource adequacy, reliability, affordability, market, and customer impacts.

 

DOE releases electricity demand growth resource hub

The Department of Energy (DOE) released a new resource hub on how to meet rising energy demand from data centers, electric vehicles, and manufacturing, while ensuring reliability, affordability, and security. The resource hub contains a variety of DOE reports and resources on topics such as resource adequacy, how AI can help clean energy meet growing demand, and how to support data center electricity needs. It also includes information on upcoming DOE webinars and workshops related to demand growth.

 

New energy bill advances in U.S. Senate

U.S. Senate Energy and Natural Resources Committee Chair Joe Manchin (I-WV) and Ranking Member John Barrasso’s (R-WY) new Energy Permitting Reform Act of 2024 (S.4753) recently advanced from the Senate floor. The bipartisan bill’s goal is to speed up the permitting process for critical U.S. energy and mineral projects. It includes provisions regarding onshore and offshore oil and gas leasing and permits, natural gas exports applications, and hydropower licenses. Notably, the bill also includes provisions on electric transmission permitting and planning, and a section (Section 501 of the bill) where FERC may issue orders for the ERO to assess and report on the potential reliability impacts of regulations proposed by other federal agencies. As part of this assessment and reporting process, the ERO would also need to consider available ways to mitigate potential reliability impacts, and allow for technical input from affected RTOs/ISOs.

Manchin has made numerous comments during committee hearings about the need for permitting reform legislation, and both he and Barrasso have stated that there was a long period of behind-the-scenes work and negotiation on the draft bill before it was publicly released in late July. A one-page summary of the bill from the committee can be found here.