Baseload Reliability Protection Act

This bill amends the Federal Power Act to prohibit the retirement or fuel-source conversion of certain baseload electric generating units located in areas served by a Regional Transmission Organization or Independent System Operator that the North American Electric Reliability Corporation categorizes as at elevated or high risk of electricity supply shortfalls. It establishes an exemption process, criteria for granting exemptions, and provisions for Department of Energy grants or loans to keep units operating if retirement would harm reliability.

Sec. 2, Prohibition on retirements and conversion: Operators or owners of covered electric generating units in covered areas may not retire the unit or convert its fuel source. Covered units are dispatchable units with at least 25 megawatts of nameplate capacity, interconnected to the bulk-power system, and not primarily fueled by intermittent renewable sources. Covered areas are those served by an RTO or ISO and categorized as elevated or high risk in the most recent long-term reliability assessment.

Exemptions: An operator or owner may petition the Federal Energy Regulatory Commission for an exemption within 90 days of the risk assessment. The Commission must decide within 90 days generally, or 180 days for petitions based on unprofitability or financial losses. Exemptions may be granted if compliance would cause unprofitability, sustained financial losses, or safety risks; or if retirement would not hinder reliable operation, or if the unit is replaced with one of comparable reliability, or if fuel conversion does not diminish dispatchability or peak availability.

DOE grants or loans: If the Commission finds retirement would hinder reliability, it refers the petition to the Secretary of Energy, who may use unobligated funds from the Infrastructure Investment and Jobs Act or Public Law 117-169 to make grants or loans for continued operation, upgrades, or lifespan extension. If a grant or loan is provided within 180 days, the petition is deemed denied.

Other provisions: The Commission may not consider greenhouse gas emissions in exemption decisions. Actions taken to comply with the prohibition are treated as compliance with an order under section 202(c) of the Federal Power Act, protecting operators from certain penalties. The Electric Reliability Organization must publish standardized criteria for risk categorization within 60 days. Judicial review of Commission decisions is available in the D.C. Circuit or the relevant circuit court. The Federal Energy Regulatory Commission must report to Congress within one year on enforcement sufficiency.