President Trump’s newest nominee to join a key panel of independent energy regulators vowed Thursday to be impartial when considering potential administration attempts to subsidize struggling coal and nuclear plants.
Critics have feared that Bernard McNamee, nominated to fill an open seat on the Federal Energy Regulatory Commission, would be biased in favor of Trump because he formerly worked as head of the Energy Department’s Office of Policy, which has spearheaded consideration of potential action to save coal and nuclear plants.
McNamee, in his confirmation hearing before the Senate Energy and Natural Resources Committee, said he “will be a fair, objective, and impartial arbiter” and that his “decisions will be based on the law and the facts; not politics.”
“Markets are the best way to allocate allocate resources and set prices and I am committed to continuing FERC’s independence in its decision making,” he said. “I don’t say this just because I’m trying to get your vote. It’s something I believe because I think the rule of law depends on the fact that people who are in the position of making decisions, that they listen.”
Sens. Lisa Murkowski of Alaska and Maria Cantwell of Washington, the committee’s chairwoman and top Democrat, respectively, both questioned McNamee about his involvement with the Energy Department’s efforts to help coal.
“We expect the Federal Energy Regulatory Commission to be that independent unbiased entity and to act in a manner where you are not picking winners and losers, you are not tipping the scales based on political perspective,” Murkowski said.
“I can honestly say I will an independent arbiter for issues that come before me,” McNamee responded. “It’s important to look at the law and facts and make decisions based on that.
Cantwell asked McNamee if FERC made the “right decision” in January when it voted unanimously to reject a proposal from Energy Secretary Rick Perry to provide special payments to struggling coal and nuclear plants in the name of resilience and reliability, saying the grid faces no immediate risk without them.
McNamee ducked answering directly, saying that FERC acted “within its authority.”
“I understand the difference in my role as a lawyer when I worked on [Perry’s] proposal and what the role of FERC is,” he said.
Sen. Martin Heinrich, D-N.M., later asked McNamee whether he thinks the grid is facing an “urgent threat” because of the retirement of coal and nuclear plants.
“It does not appear at this point on a general nationwide basis there is an emergency,” McNamee responded, agreeing with all of FERC’s sitting commissioners who have said the same thing.
Trump, even after FERC’s rejection of the Perry plan, has repeatedly pressed for action to save coal and nuclear plants, although the White House has reportedly stalled over an effort to use emergency executive authority to do so.
McNamee suggested he supported the administration’s decision not to act yet, saying he has “no reason to second guess,” Perry’s reluctance to use emergency power so far.
But Sen. Ron Wyden of Oregon and other Democrats challenged McNamee to recuse himself on issues related to helping coal and nuclear plants.
“This is like putting the fox inside the chicken coop,” Wyden said, referring to McNamee’s past role working on Perry’s proposal that FERC rejected. “Why should you be trusted to do anything different if you become commissioner? You ought to recuse yourself if you are chosen for this position.”
McNamee later would not commit to recusing himself on potential future coal and nuclear proposals, when asked again by Sen. Catherine Cortez Masto, D-Nev.
“I don’t know if anything is going to be proposed or will not be proposed,” he said. “The issue of [grid] resilience is constantly coming before FERC. I will consult with ethics counsel.”
Sen. Angus King, I-Maine, was not satisfied with that answer.
“I am surprised and disappointed you feel you have to consult with counsel on something that is so clear,” King told McNamee.
Murkowski, however, later told reporters that McNamee is taking the “appropriate course” by vowing to consult with lawyers before making a recusal decision. She said she was satisfied with McNamee’s promises that he could separate the work he did on behalf of the administration from the independent role he would have at FERC.
McNamee, if confirmed, would replace Republican FERC commissioner Robert Powelson, who vehemently opposed the coal and nuclear subsidy plan, saying it would disrupt competitive power markets that reward the lowest cost resource, and cause utility bills to increase.
He would fill a commission that has two Republicans, Chairman Neil Chatterjee and Kevin McIntyre, and two Democrats, Cheryl LaFleur and Richard Glick.
McNamee has been chief of DOE’s policy office since May. Before that, he led the Tenth Amendment center at the Texas Public Policy Foundation, a conservative think tank that opposes propping up coal and nuclear plants, and was a policy adviser for Sen. Ted Cruz, R-Texas.
He also has utility law experience, representing electric and gas utilities before state utility commissions in two stints at the firm McGuireWoods LLP.
In that role, McNamee stressed he worked for wide-ranging energy clients, including those that sought to build utility scale solar facilities, approve renewable portfolio standards, and one that sought to convert three coal plants to biomass power generators.
“I understand the important role renewables can play in the electricity mix,” he said.
