Authored by Brent Bennett and colleagues, this section of "Mandate for Leadership: The Conservative Promise" evaluates the Federal Energy Regulatory Commission (FERC) and the Department of Energy (DOE), examining their current policies and proposing substantial reforms to enhance operational efficiencies, respect state rights, and ensure fair economic practices.
Summary of Proposed Changes to FERC and DOE Policies
FERC - Transmission Lines and Natural Gas Pipelines:
Transmission Lines:
Resource Neutrality:
Prioritize neutrality in transmission planning and interconnection processes to avoid preferential treatment of specific energy sources.
Cost Socialization:
Minimize cost socialization, especially for those not directly benefiting from transmission projects. Justifications for societal benefits, such as climate change mitigation, should be clearer.
State Interests in NIETCs:
Ensure that state interests are respected in the development of National Interest Electric Transmission Corridors (NIETCs), preventing these corridors from merely subsidizing renewable energy developers.
Natural Gas Pipelines:
Pipeline Certification:
FERC’s decision-making on pipeline certifications should strictly consider the necessity of natural gas, avoiding broader environmental considerations beyond direct pipeline impacts.
NEPA Analysis:
Constrain the National Environmental Policy Act (NEPA) analysis to direct impacts, avoiding the inclusion of upstream and downstream greenhouse gas emissions unless absolutely necessary.
Eminent Domain Protections:
Enhance protections and compensations for property owners affected by eminent domain for pipeline construction.
LNG Export Facilities:
Environmental Concerns:
Environmental concerns should not automatically preclude LNG projects. Prioritize timely development of pipelines for domestic and export purposes.
Streamlining Facilities:
Streamline LNG export facilities, especially for nations with free trade agreements, as these are deemed in the national interest by Congress.
Nuclear Regulatory Commission (NRC):
Modernizing Licensing Processes:
New Reactor Technologies:
Modernize licensing processes for new reactor technologies while ensuring expedited review of existing technologies like Light Water Reactors (LWRs).
Outcome-Based Regulations:
Shift the focus of regulations from being prescriptive to outcome-based, particularly in securing radiological sources and managing cybersecurity risks.
Extension Processes for Existing Reactors:
Simplifying Extensions:
Simplify the extension processes for existing reactors and ensure that NEPA reviews are targeted and efficient.
Implications
Enhanced Growth:
Focused Support
Clear and fair FERC and DOE policies can bolster energy sector engagement and compliance. However, issues may arise if regulations are perceived as overly restrictive, potentially discouraging participation.
Reduced Fraud and Waste
Improved oversight and guidance aim to minimize mismanagement and ensure the effective use of resources. The challenge lies in balancing stringent oversight with the risk of creating bureaucratic hurdles that could stifle innovation.
Operational Efficiency:
Modernized Policies
Adopting clear and updated regulations will enhance the ability to address energy challenges effectively. Ensuring these updates do not introduce new complexities or ambiguities that could create compliance difficulties is crucial.
Inclusive Support
Ensuring fair access to resources and support will promote competitiveness and transparency within the energy sector. Defining and implementing "fair access" can be contentious, as different stakeholders may have varying interpretations of fairness and inclusivity.
Political and Administrative Considerations:
Stronger Advocacy
Empowered FERC and DOE leadership can more effectively advocate for fair enforcement of energy policies. The potential issue is the risk of perceived partisanship, which could undermine credibility and effectiveness.
Regulatory Check
A robust policy framework can counteract excessive regulation, supporting freedom of operation and innovation. Striking the right balance between regulation and deregulation is crucial to avoid under-regulation that might lead to unchecked inefficiencies.
Conclusion
Reforming FERC and DOE policies to focus on core functions, improve accountability, and modernize operations will better support fair and transparent energy practices. These reforms aim to streamline regulatory processes, ensure fair cost distribution, and respect state sovereignty, enhancing energy security and efficiency. This balanced approach considers environmental impacts and economic needs, ensuring that energy policies are sustainable and equitable.
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