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H.R. 271, Resolving Environmental and Grid Reliability Conflicts Act of 2013 1 (May 17, 2013)

handle is hein.congrec/cbo11100 and id is 1 raw text is: CONGRESSIONAL BUDGET OFFICE
COST ESTIMATE
May 17, 2013
H.R. 271
Resolving Environmental and Grid Reliability Conflicts Act of 2013
As ordered reported by the House Committee on Energy and Commerce
on May 15, 2012
CBO estimates that H.R. 271 would have no significant impact on the federal budget. The
bill would amend existing law regarding actions taken by electric utilities when the
Department of Energy (DOE) determines that the electric power system is experiencing
emergency conditions. Under current law, during a designated emergency, DOE can
require firms to produce or supply electricity to avoid or resolve blackouts or other risks to
the electric power system. If those actions violate other regulatory requirements, such as air
pollution limits, the affected firms may be liable for penalties under those laws. H.R. 271
would revise this framework by establishing new procedures for ensuring compliance with
environmental standards during designated emergencies. The bill also would exempt firms
from certain civil and criminal liability if the actions taken to comply with DOE's
emergency orders violate environmental or other regulatory standards.
Pay-as-you go procedures apply to this legislation because it could affect revenues and
direct spending. CBO estimates, however, that the impact on the federal budget would be
insignificant over the 2013-2023 period. According to DOE, it has issued emergency
orders to electric utilities six times since 1978, and none of those transactions resulted in
the payment of penalties. Based on that historical experience, CBO estimates that revenues
from such penalties would not be significant over the next 10 years under current law; as a
result, CBO estimates that reducing firms' liability for such penalties would not result in
any significant loss of federal revenues.
Similarly, CBO estimates that enacting H.R. 271 would have no significant net effect on
direct spending by the federal power agencies (such as the Tennessee Valley Authority)
that could be liable for such penalties. Finally, we estimate that implementing the bill
would have no significant effect on spending subject to appropriation.
The bill would impose an intergovernmental mandate as defined in the Unfunded
Mandates Reform Act (UMRA) by preempting state and local environmental and liability
laws. Energy facilities would be exempt from complying with such laws if those laws
conflict with an emergency order issued by the Federal Energy Regulatory Commission
(FERC) to provide temporary connections of public facilities for electrical transmission.

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