No Big Fossil Bailouts on Your Power Bill Act

Bill Number

S. 4337

Origin Chamber

Senate

Congress

119th Congress, Session 2

Policy Area

Energy

Status

Introduced

Latest Action

2026-04-16: Read twice and referred to the Committee on Energy and Natural Resources.

Last Updated

2026-05-12T20:54:44Z

AI-Generated Summary

Purpose

The "No Big Fossil Bailouts on Your Power Bill Act" (S. 4337) aims to restrict the Federal Energy Regulatory Commission's (FERC) emergency powers under the Federal Power Act to keep fossil fuel-powered electric generating facilities or power plants operational. It emphasizes environmental protections, public transparency, cost analysis for consumers, and prioritizing alternatives to fossil fuels during grid emergencies.

Key Provisions

• Narrowed Emergency Triggers: Limits FERC orders to specific electric supply shortages, removing vague "other causes" and expedited procedures without notice or hearings.
• Alternative and Environmental Review: Requires FERC to consider options that address emergencies while minimizing environmental harm.
• Enhanced Procedures for Environmental Conflicts:
• Public hearings before renewing or reissuing orders.
• Analysis of rate increases for customers and conflicts with environmental laws.
• Consultation with state/local agencies and environmental regulators in affected areas.
• Prohibition on Delaying Retirements:
• Bans orders that prevent retirement/closure of fossil fuel facilities or require generation from already retired ones.
• Exception only if no other solution exists and the regional Transmission Organization (a grid operator) requests it in writing.
• Public Transparency and Reporting:
• Mandatory online public docket, notices, and publication of orders/requests.
• Accompanying reports on emergency causes, alternatives, and cost estimates (fuel, maintenance, capital, labor) passed to utilities/customers.
• Full compliance for renewals; best-effort for initial orders.
• Utilities must notify customers within 60 days of impacts, including links to orders and cost details.

Significant Changes to Existing Law

Amends Section 202(c) of the Federal Power Act (FERC's emergency authority):

• Removes procedural shortcuts (e.g., no-notice orders).
• Adds prohibitions on fossil plant bailouts/retention.
• Mandates public processes, multi-agency consultations, ratepayer impact studies, and customer notifications—absent in prior law.
• Treats similar-emergency orders for the same facility as "renewals," triggering stricter rules.

Potential Impacts

• Government Agencies: Increases FERC workload with hearings, reports, and consultations; limits flexibility for grid emergencies, potentially straining reliability if fossil plants retire without replacements.
• Citizens/Ratepayers: Enhances transparency on costs (e.g., higher bills from keeping plants open); protects against "bailouts" but risks shortages if alternatives unavailable.
• Electric Sector: Promotes faster fossil plant retirements, pushing renewables/storage; Transmission Organizations gain veto-like role via requests.
• No direct international relations impacts noted.

Main Stakeholders Affected

• FERC: Core regulator with constrained authority and new duties.
• Fossil Fuel Plant Operators/Utilities: Harder to extend operations; must disclose costs to customers.
• Transmission Organizations: Must request exceptions in writing.
• State/Local Regulators and Environmental Agencies: Expanded consultation/input on conflicts.
• Consumers/Ratepayers: Receive notices on costs/impacts.
• Environmental Groups: Benefits from minimized impacts and retirement protections.

Notable Legal, Constitutional, or Political Implications

• Legal: Strengthens environmental law compliance in emergencies; may face challenges if seen as unduly limiting FERC's grid reliability mandate under the Federal Power Act.
• Constitutional: No direct issues; aligns with congressional oversight of agency powers.
• Political: Signals shift toward decarbonization, potentially polarizing along energy transition lines—proponents see consumer/environmental safeguards, critics may argue reliability risks.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Sen. Markey, Edward J. [D-MA]

Cosponsors (4)

Sen. Welch, Peter [D-VT], Sen. Van Hollen, Chris [D-MD], Sen. Merkley, Jeff [D-OR], Sen. Blunt Rochester, Lisa [D-DE]

Recent Actions

• 2026-04-16: Read twice and referred to the Committee on Energy and Natural Resources.
• 2026-04-16: Introduced in Senate

Bill Versions

• No Big Fossil Bailouts on Your Power Bill Act — issued 2026-04-16 — PDF (8 pages)