State Energy Sovereignty Act
The State Energy Sovereignty Act ensures that local energy resources prioritize the needs of state residents and businesses by prohibiting utilities from selling electricity to neighboring states. This legislation aims to enhance energy independence, maintain affordable energy prices, and protect the state’s economic stability. Limited exceptions are allowed for federally declared emergencies, mutual aid agreements, and federally mandated interconnections. Regulatory oversight and economic impact assessments ensure compliance and transparency.
Key Provisions
Prohibition on Energy Exports: Utilities are prohibited from selling or transmitting electricity generated in the state to neighboring states, covering both wholesale and retail transactions.
Exceptions: Federally declared emergencies; Mutual aid agreements for temporary power shortages; Federally mandated interconnection agreements.
State Priority: Utilities must prioritize the energy needs of state residents, businesses, and public services over external sales.
Regulatory Oversight and Enforcement: The State Public Utility Commission oversees compliance, requiring utilities to submit quarterly reports on energy usage and transactions. Violations incur fines of up to $500,000 per incident, with repeat violations risking suspension or revocation of operating licenses.
Economic Impact Analysis: The State Energy Department must publish annual reports on the Act’s effects on energy prices, availability, reliability, and economic growth.
Model Language
Section 1. Short Title: This Act may be cited as the “State Energy Sovereignty Act.”
Section 2. Findings and Purpose
(a) Findings:
The availability of affordable and reliable energy is critical to the state’s economic stability and quality of life.
Selling power to neighboring states can strain local resources, increase energy costs for residents, and compromise the state’s energy independence.
To ensure the state’s energy needs are prioritized, restrictions on exporting power to neighboring states are necessary.
(b) Purpose: To prohibit utilities operating within the state from selling power to neighboring states, thereby ensuring that local energy resources are used to benefit state residents and businesses first.
Section 3. Definitions
Utility: Any company, corporation, cooperative, or entity that generates, transmits, or distributes electric power within the state.
Neighboring State: Any state that shares a border with this state.
Export of Power: The transmission or sale of electricity generated within the state to entities located outside the state.
Section 4. Prohibition on Power Sales to Neighboring States
(a) General Prohibition:
Utilities operating within the state are prohibited from selling or transmitting electricity to entities located in neighboring states.
This prohibition applies to both wholesale and retail electricity transactions.
(b) Exceptions: The prohibition shall not apply in cases of:
Federally declared emergencies requiring cross-state power transfers.
Mutual aid agreements designed to address temporary, unforeseen power shortages in neighboring states.
Federally mandated interconnection agreements under the jurisdiction of the Federal Energy Regulatory Commission (FERC).
(c) State Priority: Utilities must prioritize the needs of state residents, businesses, and public services when allocating energy resources.
Section 5. Regulatory Oversight and Enforcement
(a) Regulatory Authority:
The [State Public Utility Commission or equivalent body] shall oversee compliance with this Act.
Utilities must submit quarterly reports detailing power generation, usage, and transactions, with verification that no power was exported in violation of this Act.
(b) Penalties for Non-Compliance:
Utilities found to be in violation of this Act shall face fines of up to $500,000 per incident.
Repeat violations may result in the suspension or revocation of the utility’s operating license within the state.
Section 6. Economic Impact Analysis
(a) State Benefit Report: The [State Energy Department] shall publish an annual report assessing the impact of this Act on:
Local energy prices.
Energy availability and reliability.
Economic growth within the state.
(b) Review of Exceptions: The report shall include an analysis of all instances where exceptions to the prohibition were invoked and their impact on the state’s energy resources.
Section 7. Severability: If any provision of this Act is held invalid, the remaining provisions shall remain in full force and effect.
Section 8. Effective Date: This Act shall take effect 180 days after passage.