[House Report 119-301]
[From the U.S. Government Publishing Office]
119th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 119-301
======================================================================
STATE ENERGY ACCOUNTABILITY ACT
_______
September 17, 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. 3157]
[Including cost estimate of the Congressional Budget Office]
The Committee on Energy and Commerce, to whom was referred
the bill (H.R. 3157) to amend the Public Utility Regulatory
Policies Act of 1978 to add a standard related to the
evaluation of State intermittent energy policies, 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................................................. 4
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....................................... 8
Statement of General Performance Goals and Objectives............ 8
Duplication of Federal Programs.................................. 8
Related Committee and Subcommittee Hearings...................... 8
Committee Cost Estimate.......................................... 9
Earmark, Limited Tax Benefits, and Limited Tariff Benefits....... 10
Advisory Committee Statement..................................... 10
Applicability to Legislative Branch.............................. 10
Section-by-Section Analysis of the Legislation................... 10
Changes in Existing Law Made by the Bill, as Reported............ 10
Minority, Additional, or Dissenting Views........................ 20
Purpose and Summary
H.R. 3157, the ``State Energy Accountability Act'', was
introduced by Representative Langworthy on May 1, 2025, and
referred to the Committee on Energy and Commerce on May 1,
2025. H.R. 3157 amends section 111(d) of the Public Utility
Regulatory Policy Act of 1978 (PURPA) to require each state
regulatory authority to consider implementing requirements to
evaluate the reliability and resource adequacy impacts of
complying with Renewable Portfolio Standards, Clean Energy
Standards, or other state policies that require utilities to
designate a share of their electricity sold to be generated
from intermittent resources.
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, is coinciding
with an alarming rate of premature retirements of baseload
power and insufficient replacement 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\
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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.
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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.\5\ Meanwhile, of
the eighteen states with the most affordable electricity rates,
all but one have a renewable portfolio standard.\6\ 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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\5\Mario Loyola et al., Why Electricity Prices are Soaring in Blue
States, Heritage Found. (Oct. 23, 2024), https://www.heritage.org/
sites/default/files/202410/BG3867.pdf.
\6\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, higher land usage
and locational constraints of resources that require additional
transmission infrastructure, and stranded assets that have high
capital costs which are recovered through a utility's rate
base. 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.\7\ In 2024, it had been estimated that
renewable energy would receive $1.2 trillion in subsidies over
the following ten years.\8\ The true costs of intermittent
resources are socialized amongst the broader system and
attributes of infrastructure that provide essential reliability
services necessary to maintain reliability.
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\7\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.
\8\Mario Loyola et al., supra note 5.
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Expansive mandates of states that seek to replace fossil
fuel are incurring the consequences. The New York Independent
System Operator's (NY-ISO) annual report on the state of the
bulk power system stated, ``[a]s traditional fossil-fueled
generation deactivates in response to decarbonization goals and
tighter emissions regulations, reliability margins on the grid
are eroding''.\9\ Reliability margins are critical to meeting
peak demands and avoiding outages, particularly during extreme
weather or response to sudden disturbances. New York's Climate
Leadership and Community Protection Act, one of the nation's
most aggressive climate mandates, is driving a disorderly
transition to zero emission generating fleet. Recently,
business leaders and unions in New York state penned an open
letter to Governor Hochul requesting additional scrutiny and
transparent reporting on cost and reliability impacts stemming
from New York's Climate Leadership and Community Protection
Act.\10\
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\9\NY-ISO, 2025 Power Trends, the New York ISO Annual Grid and
Markets Report, New York Independent System Operator, Inc. (June 2025),
https://www.nyiso.com/
documents/20142/2223020/2025-Power-Trends.pdf/51517a1b-36fa-4f3d-d44d-
eabe23598514?t=1748866865402.
\10\The Business Council of New York State, Statement Regarding
CLCPA Letter Calling for Answers to Key Policy Concerns (Jul. 2024),
https://www.bcnys.org/news/statement-regarding-clcpa-letter-calling-
answers-key-policy-concerns; see https://www.bcnys.org/sites/default/
files/2024-07/Final%20CLCPA%20%20sign%20on%20letter%20.pdf (for text of
letter to Gov. Hochul).
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Independent System Operator New England (ISO-NE) is facing
similar issues as a result of burdensome state mandates,
political opposition to pipeline infrastructure development,
and modest renewable integration as a result of weather
patterns and regional geology. ISO-NE highlighted the cost of
carbon emissions, as part of the mandated cap-and-trade
programs, as a key driving factor for high electricity prices
in the region.\11\ As a result of a lack of adequate energy
infrastructure, ISO-NE CEO Gordon Van Weile testified before
the Committee that the region is not seeing comparable
increases in electricity demands from data centers and domestic
manufacturing. The Committee finds that states must take a
larger role in analyzing the reliability and affordability
impacts of aggressive climate mandates.
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\11\ISO-NE, supra note 7.
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The Public Utility Regulatory Policy Act (PURPA), passed in
1978 amidst the oil embargoes from the Middle East, sought to
promote energy conservation and drive competition in the power
sector. This law included a provision, section 111(d), that
provides Congress with an opportunity to encourage state public
utility commission to consider certain policies. 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.
The State Energy Accountability Act seeks to bring enhanced
transparency and accountability to states that implement
intermittent energy standards. Specifically, the bill would
encourage, as part of the process of PURPA 111(d), states to
consider the impact these policies have on costs on ratepayers
and impacts on reliability and provide transparent public
reports of their findings.
Committee Action
On April 30, 2025, the Subcommittee on Energy held a
legislative hearing on 14 pieces of legislation, including H.R.
3157. 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. 3157, 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. 3157, without amendment, favorably reported to the
House by a record vote of 27 yeas and 20 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:
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. 3157 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, the following is
the cost estimate provided by the Congressional Budget Office
pursuant to section 402 of the Congressional Budget Act of
1974:
H.R. 3157 would amend the Public Utility Regulatory
Policies Act of 1978 to require state regulatory authorities,
within one year of enactment, to decide whether to evaluate
policies related to intermittent energy--such as solar- and
wind-generated power. The evaluation would need to address
criteria specified in the bill, and the regulatory agency would
need to make those findings publicly available. The evaluation
would apply to states that require some portion of electricity
used in the state to come from facilities that cannot generate
or procure power without interruption for at least 30
consecutive days, including during extreme weather conditions.
Enacting the bill would not change federal
responsibilities; thus, CBO estimates that implementing H.R.
3157 would not affect the federal budget.
H.R. 3157 would impose an intergovernmental mandate as
defined in the Unfunded Mandates Reform Act (UMRA) by requiring
state utility commissions to decide whether to evaluate the
extent to which policies concerning intermittent energy affect
the reliability of the electrical power system in their state.
The requirement would expand an existing intergovernmental
mandate by increasing those entities' responsibilities under
the Public Utility Regulatory Policies Act. CBO estimates that
the mandate would result in a small incremental increase in
administrative costs that would not exceed the threshold
established in UMRA for intergovernmental mandates ($103
million in 2025, adjusted annually for inflation).
The bill would not impose private-sector mandates as
defined in UMRA.
The CBO staff contacts for this estimate are Emilia Oliva
(for federal costs) and Brandon Lever (for mandates). The
estimate was reviewed by H. Samuel Papenfuss, Deputy Director
of Budget Analysis.
Phillip L. Swagel,
Director, Congressional Budget Office.
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 direct
state public utility commissions, through section 111(d) of the
Public Utility Regulatory Policies Act, to consider providing
public reporting on the impact intermittent energy standards
have on reliability and affordability of the bulk-power system.
Duplication of Federal Programs
Pursuant to clause 3(c)(5) of rule XIII, no provision of
H.R. 3157 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 hearings were used to develop or consider H.R. 3157:
On February 5, 2025, the Subcommittee on Energy held a
hearing on H.R. 3157, 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. 3157, 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. 3157, 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. 3157, 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. 3157, 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.
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. 3157 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
Energy Accountability Act''.
Section 2. Consideration of effects of state policies on reliable
availability of electric energy
Section 2 amends section 111(d) of the Public Utility
Regulatory Policy Act of 1978 (PURPA) to require each state
regulatory authority to consider implementing requirements to
evaluate the reliability and resource adequacy impacts of
complying with Renewable Portfolio Standards, Clean Energy
Standards, or other state policies that require utilities to
designate a share of their electricity sold to be generated
from intermittent resources.
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 (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) Evaluation of effects of state policies on
reliable availability of electric energy.--
(A) In general.--Each State regulatory
authority that implements an intermittent
energy policy shall conduct, and make publicly
available, a general evaluation of--
(i) the effects of implementing the
intermittent energy policy on the
reliability of the bulk-power system in
the State, including an assessment of
the adequacy of available electric
energy resources over a 10-year period;
(ii) the ability of electric energy
resources that comply with the
requirements of the intermittent energy
policy to meet electric energy demand
during emergencies, periods of high
demand, or extreme weather events;
(iii) the effects of implementing the
intermittent energy policy on rates
charged by electric utilities;
(iv) whether reliable generation
facilities that are removed from
service in order to comply with the
requirements of the intermittent energy
policy can be replaced with sufficient
electric generation facilities meeting
such requirements, which have a
capacity accreditation that is
equivalent to the capacity
accreditation of the removed
facilities, to maintain the reliability
of the bulk-power system in the State;
and
(v) the extent to which
implementation of the intermittent
energy policy requires electric
utilities in the State to use
replacement electric energy supplies
that are generated by reliable
generation facilities located outside
the State in order to maintain the
reliability of the bulk-power system in
the State.
(B) Prior state actions.--Notwithstanding
section 124 and paragraphs (1) and (2) of
section 112(a), each State regulatory authority
shall consider and make a determination
concerning the standard set out in 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.
(C) Time limitation.--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 standard set out
in subparagraph (A) not later than 1 year after
the date of enactment of this paragraph.
(D) Public availability.--A State regulatory
authority that has made a determination
concerning whether to implement, and is
implementing, the standard set out in
subparagraph (A) shall make publicly available
the general evaluation described in such
subparagraph--
(i) if the applicable State has
adopted an intermittent energy policy
before the date on which the State
regulatory authority makes such
determination, not later than 1 year
after such date of determination; and
(ii) if the applicable State adopts
an intermittent energy policy after the
date on which the State regulatory
authority makes such determination, not
later than 1 year after the date of
such adoption.
(E) Definitions.--In this paragraph:
(i) Bulk-power system.--The term
``bulk-power system'' has the meaning
given that term in section 215 of the
Federal Power Act (16 U.S.C. 824o).
(ii) Intermittent energy policy.--The
term ``intermittent energy policy''
means any requirement of a State,
enforced by a State regulatory
authority, that a State regulated
electric utility ensure that a
specified portion of the electric
energy sold by such electric utility is
generated by facilities that are not
reliable generation facilities.
(iii) Reliable generation facility.--
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--
(aa) 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
(bb) 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.
* * * * * * *
MINORITY, ADDITIONAL, OR DISSENTING VIEWS
H.R. 3157, the ``State Energy Accountability Act,'' amends
section 111(d) of the Public Utility Regulatory Policies Act of
1978 (PURPA) to require state public utility commissions in
states with clean energy or renewable portfolio standards to
consider making public a study of the effects of the standard
on reliability and electricity prices.
H.R. 3157 is a thinly veiled attack on clean energy and is
duplicative of requirements already imposed by states. Clean
energy standards, or renewable portfolio standards, are
requirements or goals for energy producers to supply energy
from low- or zero-emission sources.\1\ State programs can range
in structure and enforcement mechanisms, as well as timelines
for implementation. As of April 2025, 28 states and the
District of Columbia have renewable portfolio standards, 11
states have clean energy standards, and 14 states have either
renewable portfolio or clean energy goals.\2\
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\1\U.S. Energy Information Administration, Renewable Energy
Explained (July 30, 2024) (https://www.eia.gov/energyexplained/
renewable-sources/portfolio-standards.php).
\2\DSIRE Insight, Renewable & Clean Energy Standards (April 2025)
(https://ncsolarcen-prod.s3.amazonaws.com/wp-content/uploads/2025/09/
RPS CES April2025.pdf).
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Due to the diverse nature of these standards and goals,
implementation of a PURPA 111(d) standard related to assessing
reliability and impact on prices would yield mixed results
depending on the state. Moreover, verification, compliance, and
enforcement of these clean energy and renewable portfolio
standards often already consider the factors prioritized in the
text of this bill.
H.R. 3157 does not ask for a study of the effects of
keeping fossil fuel generating sources online or of including
fossil fuel resources in integrated resource planning. If the
Majority was serious about the impacts of energy policies on
reliability and electricity prices, they would similarly call
for studies into the impacts of President Trump's decision to
continue operating outdated fossil fuel plants, the pauses and
rescissions of funding for energy projects and transmission
projects, and the impacts of increased climate disasters on the
grid. Instead, the Majority has spent the 119th Congress
supporting policies that will increase consumer prices and
increase demand on the grid, such as rescinding funding and
gutting energy efficiency standards. Republicans' One Big
Beautiful Bill is projected to raise electricity prices by 61
percent over the next decade.\3\ Additionally, President
Trump's determination to prolong the lifespan of retiring
fossil fuel plants could cost Americans up to $6 billion a
year.\4\ Rather than critically examining and opposing these
policies, the Majority is instead choosing to target clean
energy policies, many of which have been in place for years.
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\3\Energy Innovation, Economic Impacts of U.S. Senate ``One Big
Beautiful Bill Act'' Energy Provisions (June 29, 2025).
\4\Grid Strategies, The Cost of Federal Mandates to Retain Fossil-
Burning Power Plants (August 2025).
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H.R. 3157 is a disingenuous proposal that targets clean
energy and does not seriously attempt to address concerns of
reliability or energy prices. For the reasons stated above, I
oppose this legislation.
Frank Pallone, Jr.,
Ranking Member.
[all]