An unlikely coalition of fossil fuel and renewable energy groups are pushing back against the Trump administration’s plan to create new rules to prop up nuclear and coal-fired power plants, which have been suffering economically from increased competition from low-cost natural gas.
The coalition on Monday formally opposed the proposed plan that Energy Secretary Rick Perry sent to the Federal Energy Regulatory Commission Friday.
Perry directed the commission to enact new pricing rules for the electricity market to preserve the nation’s diverse mix of energy resources to keep the grid afloat, citing the recent hurricanes in Texas and Florida as reasons for creating new rate structures for coal and nuclear.
The industry’s message to the administration was firm, laying out a plethora of problems with Perry’s proposed action in a motion that resembled a legal filing.
The crux of the industry’s opposition involves the pace at which Perry suggests the commission must act. The coalition argues that if FERC were to follow Perry’s guidance, it would be violating the Administrative Procedures Act, a law governing regulatory process and procedure.
“The [Perry] letter does not justify its suggestion that the commission should issue an interim final rule within the narrow provision for such rules in the Administrative Procedure Act … and as a result, the commission should not pursue this alternative,” the motion read.
“The law allows an agency to issue an interim final rule without first publishing a proposed rule only when it can show ‘good cause’ for doing so,” the motion added. “To demonstrate good cause, an agency must establish: the existence of an emergency; that prior notice would subvert the underlying statutory scheme; or that Congress intended to waive notice and comment rulemaking requirements.
“None of these circumstances exists such that the extraordinary use of an interim final rule would be justified, and the letter does not even attempt to suggest they do,” the industry motion argued.
The coalition also argued that Perry’s suggested comment period for groups to respond to any proposed rule are wholly inadequate.
“Given the importance and complexity of this issue, the Energy Trade Associations recommend that the Commission provide at least 90 days for interested parties to provide initial comments on any proposed rule, as well as affording an opportunity for reply comments, to ensure reasoned decision-making and a robust record to help inform the Commission in developing any final rule,” the motion read.
The groups that filed the motion included the American Council on Renewable Energy, a large renewable energy industry umbrella group, the American Petroleum Institute, representing the oil and natural gas industry, the utility sector group American Public Power Association, the American Wind Energy Association, the Electricity Consumers Resource Council that represents large industrial users of electricity, the Electric Power Supply Association, Interstate Natural Gas Association of America, National Rural Electric Cooperative Association, the Natural Gas Supply Association and the Solar Energy Industries Association.
Groups such as the Electric Power Supply Association have been leading the fight against state programs that look to protect coal and nuclear power plants. The group represents a segment of natural gas power plant owners that argue that the state programs constitute market-distorting subsidies for nuclear power plants. The American Petroleum Institute has joined that fight in recent months.
