Chief energy regulator lays out FERC’s Clean Power Plan role at Press Club Luncheon

The Federal Energy Regulatory Commission’s (FERC) role in implementing a plan to reduce power plant carbon emissions is to bring together stakeholders and help them overcome market and infrastructural challenges, FERC Chairman Cheryl LaFleur told a National Press Club Luncheon Jan. 27.

A big part of FERC's role, LaFleur said, is navigating the changing landscape of the bulk electric system as the Environmental Protection Agency hands down its Clean Power Plan rule, setting new requirements for power plants to reduce carbon emissions on a state-by-state basis.

FERC will engage the EPA and other government and industry stakeholders on implementation of the plan, which is expected to be finalized later this year, LaFleur said, emphasizing that state and local partners will also be invited to the conversation. “All politics are local,” she said. “Making progress requires real conversations.”

The agency, which has received wide-ranging feedback on the controversial plan, will host several conferences nationwide next month to promote a community effort on reducing carbon emissions, involving government, industry, and environmental activist groups. “We take views of all stakeholders seriously,” LaFleur said at the Luncheon.

However, welcoming diverse views on the issue will not deter the agency from taking unpopular actions to address the emerging environmental issues, LaFleur said. “We can’t be afraid to say unpopular things,” she said.

Once the EPA finalizes its rule, FERC, an independent federal agency, hopes to continue fostering dialogue and assist with implementing the rule, LaFleur said.

FERC will focus its efforts on infrastructure and electric markets, LaFleur said, noting FERC will perform environmental reviews and help the proper infrastructure be put in place to reduce emissions at power facilities.

Particularly, LaFleur said the agency’s role in building a natural-gas infrastructure is “essential” to implementing the Clean Power Plan, as is dealing with a different economic model for electricity, due to differing state requirements under the plan.

“The Clean Power Plan is a whole different ballgame,” LaFleur said.

FERC currently regulates the market for the bulk power system, but as states individually determine how they will reduce emissions, the agency will have to make “significant changes” to the accommodate the market.