Petition for Rulemaking by Alliance for Tribal Clean Energy

Consultation Information

FERC will convene two virtual consultations on the Petition for Expedited Rulemaking to Adopt Commercial Readiness and Withdrawal Penalty Rules for Tribal Energy Development Organizations filed by the Alliance for Tribal Clean Energy on August 9, 2024.

The virtual consultations will take place at the following times:

• Session 1 will be from 2:00 p.m. to 4:00 p.m. ET on Monday, October 28, 2024.
• Session 2 will be from 2:00 p.m. to 4:00 p.m. ET on Monday, November 4, 2024.

For more information and to participate in the consultation, please see the Tribal Leader Letter or email TribalRelations@ferc.gov.

Background Information

Interconnection and Tribal Energy Projects

On August 9, 2024, the Alliance for Tribal Clean Energy (ATCE) requested that FERC address possible barriers for Tribal energy development in the Commission’s generator interconnection rulemaking, Order No. 2023.

Generator interconnection refers to the process in which new energy resources are connected to the existing transmission system (sometimes referred to as the electric grid or grid).  Because the transmission system is the backbone of the U.S. electricity system, adding new resources must be done in a safe manner that does not impact the reliability of the transmission system.

Recent data show that the number of generator-interconnection requests is growing, and the capacity on the grid to accept these new projects is limited. As a result, the queue (or “line”) for connecting these projects on the grid is growing to the point where it can take up to five years for a new project to make it through this interconnection queue. Additionally, several projects in the queue are “speculative” and therefore unlikely to be built.

To address these issues and reduce the interconnection queues, the Federal Energy Regulatory Commission in July 2023 issued a new set of rules, Order No. 2023, to speed up the process, while reducing the number of speculative projects taking up space in the queue by requiring financial commitments and levying fines for companies that back out of the queue.

Interconnection Reforms

FERC Order No. 2023 included measures to reduce the number of projects that begin the interconnection process but likely will not be built. These projects – sometimes referred to as “speculative” interconnection requests – can cause delays and sometimes increase costs for others. Order 2023 measures include: (1) requirements to submit financial security in the form of commercial readiness deposits at the beginning of each of four steps in the process; and (2) mandating withdrawal penalties if the withdrawal of an interconnection customer has a material impact on the cost or timing of other interconnection requests. These greater financial requirements were meant to improve certainty and enable viable projects to move more quickly through the interconnection process.

The Petition

ATCE’s petition requests FERC review the process for how power plants are interconnected to the electric grid, and asks that Tribal nations be exempt from submission of the first three commercial readiness deposits and a portion of the withdrawal penalties. ATCE claims that these requirements are unnecessary because Tribal Nations are not submitting speculative interconnection requests.

ATCE also argues that Tribal Nations face unique and unreasonably burdensome challenges to providing high levels of financial security. Thus, ATCE has asked FERC to start a new rulemaking proceeding to revisit rules about the impacts of financial requirements for Tribal Nations, including the commercial readiness deposit and withdrawal penalty framework.

Participation Options

In addition to the scheduled consultations, federally recognized Tribes may provide input on the petition by submitting comments into Docket No. RM24-9. The deadline is 5:00 p.m. ET on November 18, 2024.

There are three options for submitting comments to FERC. FERC encourages electronic filing of comments and has staff available to assist you at 866-208-3676 or FercOnlineSupport@ferc.gov.

1. If you are filing comments as an individual and not for an organization, file comments electronically by using the eComment application, located on FERC’s website under the link to FERC Online.  With eComment, an individual can comment by typing as many as 10,000 text characters directly into a comment box. If you are not filing as an individual or if you are filing a motion to intervene, you must use FERC's eFiling feature as described next.
2. File comments electronically by using eFiling, located on FERC’s website under the link to FERC Online.  You can provide comments in a variety of formats by attaching them as files with your submission. All new eFiling users must first create an account by clicking on “eRegister.”  You will be asked to select the type of filing you are making; a comment on a particular rulemaking is considered a “Comment on a Filing”. 
3. File a paper copy of comments by mailing them to FERC.  Reference Docket No. RM24-9-000 on your letter. 

Submissions sent via the U.S. Postal Service must be addressed to:

Debbie-Anne Reese, Secretary
Federal Energy Regulatory Commission
888 First Street NE, Room 1A
Washington, DC  20426

Submissions sent via any other carrier must be addressed to:

Debbie-Anne Reese, Secretary
Federal Energy Regulatory Commission
12225 Wilkins Avenue
Rockville, MD 20852

To learn more about this consultation and how to participate, please reach out to TribalRelations@FERC.gov or by phone at 202-502-6850.