Strengthening the Reliability and Security of the United States Electric Grid
This executive order addresses the strain on the US electric grid caused by increased energy demand.
It aims to strengthen grid reliability, resilience, and security.
Key actions include streamlining processes for issuing orders under the Federal Power Act, developing a standardized methodology for analyzing reserve margins, and establishing protocols to retain critical generation resources.
The order emphasizes utilizing all available power generation resources to meet growing demand and prevent grid failure.
Arguments For
Intended benefits: Enhance the reliability and security of the US electric grid, preventing widespread outages and supporting economic stability and technological advancement.
Evidence cited: The order cites an unprecedented surge in electricity demand due to technological advancements and increased domestic manufacturing, highlighting the risk to national and economic security.
Implementation methods: Streamlining processes for issuing orders under the Federal Power Act, developing a uniform methodology for analyzing reserve margins, establishing a process for identifying and retaining critical generation resources.
Legal/historical basis: The order is issued under the authority vested in the President by the Constitution and laws of the United States, referencing Executive Order 14156 declaring a national energy emergency.
Arguments Against
Potential impacts: Increased costs for electricity generation and transmission, potential delays in projects due to increased regulatory oversight. Potential for unintended consequences if resource allocation isn't carefully managed.
Implementation challenges: Coordination among multiple federal agencies, ensuring the methodology for reserve margin analysis is accurate and effective, and balancing the need for grid stability with other competing concerns.
Alternative approaches: Investing further in renewable energy and grid infrastructure modernization, promoting energy conservation to reduce overall demand. Developing more robust risk assessment models with a broader consideration of resilience factors such as cyber security.
Unintended effects: Overregulation could stifle innovation or investment in the energy sector, preferential treatment towards certain energy sources might trigger legal challenges or distort the market.
By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered:
This opening statement asserts the President's legal authority to issue the order, grounding it in the Constitution and US law.
Section 1. Purpose. The United States is experiencing an unprecedented surge in electricity demand driven by rapid technological advancements, including the expansion of artificial intelligence data centers and an increase in domestic manufacturing. This increase in demand, coupled with existing capacity challenges, places a significant strain on our Nation’s electric grid. Lack of reliability in the electric grid puts the national and economic security of the American people at risk. The United States’ ability to remain at the forefront of technological innovation depends on a reliable supply of energy from all available electric generation sources and the integrity of our Nation’s electric grid.
This section establishes the order's rationale.
It explains the rapidly increasing demand for electricity due to technological advancements and manufacturing, emphasizing the resultant strain on the existing grid and the resulting threat to both national and economic security.
Sec. 2. Policy. It is the policy of the United States to ensure the reliability, resilience, and security of the electric power grid. It is further the policy of the United States that in order to ensure adequate and reliable electric generation in America, to meet growing electricity demand, and to address the national emergency declared pursuant to Executive Order 14156 of January 20, 2025 (Declaring a National Energy Emergency), our electric grid must utilize all available power generation resources, particularly those secure, redundant fuel supplies that are capable of extended operations
This section outlines the core policy goals: ensuring the reliability, resilience, and security of the nation's electric grid.
It further mandates the utilization of all available power generation sources, especially those with secure and reliable fuel supplies, to meet growing demand and address the national energy emergency declared in Executive Order 14156.
Sec. 3. Addressing Energy Reliability and Security with Emergency Authority. (a) To safeguard the reliability and security of the United States’ electric grid during periods when the relevant grid operator forecasts a temporary interruption of electricity supply is necessary to prevent a complete grid failure, the Secretary of Energy, in consultation with such executive department and agency heads as the Secretary of Energy deems appropriate, shall, to the maximum extent permitted by law, streamline, systemize, and expedite the Department of Energy’s processes for issuing orders under section 202(c) of the Federal Power Act during the periods of grid operations described above, including the review and approval of applications by electric generation resources seeking to operate at maximum capacity. (b) Within 30 days of the date of this order, the Secretary of Energy shall develop a uniform methodology for analyzing current and anticipated reserve margins for all regions of the bulk power system regulated by the Federal Energy Regulatory Commission and shall utilize this methodology to identify current and anticipated regions with reserve margins below acceptable thresholds as identified by the Secretary of Energy. This methodology shall: (i) analyze sufficiently varied grid conditions and operating scenarios based on historic events to adequately inform the methodology; (ii) accredit generation resources in such conditions and scenarios based on historical performance of each specific generation resource type in the real time conditions and operating scenarios of each grid scenario; and (iii) be published, along with any analysis it produces, on the Department of Energy’s website within 90 days of the date of this order. (c) The Secretary of Energy shall establish a process by which the methodology described in subsection (b) of this section, and any analysis and results it produces, are assessed on a regular basis, and a protocol to identify which generation resources within a region are critical to system reliability. This protocol shall additionally: (i) include all mechanisms available under applicable law, including section 202(c) of the Federal Power Act, to ensure any generation resource identified as critical within an at-risk region is appropriately retained as an available generation resource within the at-risk region; and (ii) prevent, as the Secretary of Energy deems appropriate and consistent with applicable law, including section 202 of the Federal Power Act, an identified generation resource in excess of 50 megawatts of nameplate capacity from leaving the bulk-power system or converting the source of fuel of such generation resource if such conversion would result in a net reduction in accredited generating capacity, as determined by the reserve margin methodology developed under subsection (b) of this section.
This section details the specific actions to be taken.
The Secretary of Energy is directed to streamline processes for efficient energy resource allocation during grid emergencies(a).
A uniform methodology for assessing reserve margins will be created and published (b), along with a protocol to identify and maintain critically needed power generation resources in at-risk regions (c).
This involves leveraging legal tools (like section 202(c) of the Federal Power Act) to ensure their operational capability.
A key focus is preventing the reduction or loss of certain higher-capacity generation resources during times of grid weakness.
Sec. 4. General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect: (i) the authority granted by law to an executive department or agency, or the head thereof; or (ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals. (b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations. (c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
DONALD J. TRUMP
THE WHITE HOUSE, April 8, 2025.
These are general provisions that clarify the order's scope and limitations.
It states the order does not override existing legal authority (a), is subject to budgetary constraints (b), and doesn't create any new legal rights or entitlements (c).
The order is signed by Donald J. Trump, dated April 8, 2025.