H.R. 3843 — Baseload Reliability Protection Act

This section establishes in the Federal Power Act (16 U.S.C. 824 et seq.) a prohibition preventing operators or owners of covered electric generating units located in covered areas—those categorized as at high or elevated risk of electricity supply shortfalls in the most recent long-term reliability assessment—from retiring such units or converting their fuel source. Operators or owners may petition the Federal Energy Regulatory Commission (FERC) for an exemption within 90 days of the assessment's publication, with FERC required to issue a final determination within 90 days (or 180 days for petitions based on unprofitability or sustained financial losses). FERC must grant an exemption if it determines that compliance with the prohibition would cause (1) unprofitability or sustained financial losses for the unit, (2) elevated worker or public safety risks, (3) in consultation with the relevant regional transmission organization or independent system operator, that retirement will not hinder bulk-power system reliability, (4) that the owner will replace the unit with one or more comparable or greater reliability units (considering dispatchability and peak availability) that are placed in service prior to retirement, or (5) that fuel source conversion will not diminish dispatchability, peak availability, or bulk-power system reliability. For unprofitability-based petitions where retirement would hinder reliability, FERC refers the petition to the Secretary of Energy, who may provide a grant or loan using available funds; receipt of such assistance within 180 days deems the petition denied, allowing continued operation.