Truth in Electricity Generation Labeling Act

Model Bill Info
Bill Title	Truth in Electricity Generation Labeling Act
Date Introduced	July 25, 2024
Date Finalized	August 30, 2024
Type	Model Policy
Status	Final
Task Forces	Energy, Environment and Agriculture
Keywords	energy

Truth in Electricity Generation Labeling Act

SECTION 1. Legislative Findings

The legislature of [name of state] finds that:

American families and industries depend on reliable and affordable electricity for everything they do, from lifesaving medical equipment to lifesaving climate control in homes and workplaces; Nameplate electricity plant ratings are often presented in a confusing manner. This is because those who promote Green energy publicize its optimal output under ideal conditions, not its maximum “on demand” capacity. Such fudging makes it more likely to overpromise renewable energy’s ability to meet our electricity needs; Electricity demand must be met with electricity supply instantly, or interruptions of service result; The North American Electric Reliability Corp. (NERC), the Regional Transmission Organizations (RTOs) MISO, and PMJ have warned that large swathes of the United States face elevated risks of electricity shortfalls now and in the future; Clarification of nameplate value, capacity, and firm capacity is necessary for planning, public, legislative, and regulatory understanding; A failure to manage the grid properly, which is hampered by a poor understanding of nameplate capacity of the various energy sources feeding it, can lead to disruptions in the supply of electricity that jeopardize reliability and affordability, and could ultimately cause a failure of service; Electric usage in the United States has remained flat for the last 20 years, yet investments in new generation has accelerated. This acceleration is occurring at a time when there is scant information on the reliability of the renewables replacing the traditional sources of generation. Rising electricity prices and decreased reliability contribute to overall inflation, unemployment, and economic hardship; Affordable and reliable electricity is of major importance to the poor who spend a disproportionate percentage of their income on energy. They are harmed the most by expensive, unreliable electricity.

SECTION 2. Definitions

As used in this section:

(a) “Dispatchable” or on demand power means a source of electricity that is readily available for use on demand and can be dispatched upon request of a power grid operator, or one that can have its power output adjusted according to market needs, except for routine maintenance or repairs;

(b) “Nameplate value” is the estimate of the maximum amount of electricity that can be generated by the electricity unit under ideal conditions.

(c) “On Demand or Firm power” includes dispatchable power generation, as well as battery storage in excess of 8 hours. On demand or firm power does not include power that is not dispatchable.

(d) “Capacity factor” is the amount of electricity estimated or historically produced annually in the same units of nameplate value. Capacity shall include the electricity that could have be generated if it were not curtailed to meet demand. Capacity does not include amounts curtailed because of transmission congestion.

(e) “Electric generation facility” means a facility that uses water, coal, natural gas, wind, solar, or nuclear to generate electricity for the owner or customers;

SECTION 3. Providing accuracy in electric generation nameplate, capacity and on demand labeling

(a) Electricity generation sources shall provide nameplate, capacity and on demand values in the description of their product. It shall be listed in the first five (5) sentences of any description of the product.

(b) When electricity generation sources are described by their nameplate value, the capacity and on demand amounts shall also be included. This extends to any marketing material.

SECTION 4. Penalties

(a) Violators of this section shall pay a $5,000 fine for each violation.

SECTION 5. Severability

Each section, paragraph, and portion of each paragraph of this Act is severable. If one or more sections, paragraphs, or portions of one or more paragraphs of this Act are held invalid on their face or as applied to particular facts, then the remaining portions and applications of the Act shall be given full effect to the greatest extent practicable.

SECTION 6. Applicability and Effective Date

This Act applies to all electric generation sources offered for sale or proposed to be decommissioned after [DATE].