The House Energy and Commerce Committee unanimously approved two bills today that would streamline the permitting process for hydropower projects and shield utilities from environmental lawsuits and fines during power emergencies.

The panel unanimously approved by voice vote legislation that would protect utilities if the Energy Department orders certain units to run to protect electric reliability and the plant then violates clean air or water standards. Rep. Pete Olson's (R-Texas) bill, which has 18 bipartisan co-sponsors, was approved by a House subcommittee earlier this month (E&ENews PM, June 7).

Olson quelled Democratic opposition to his bill yesterday after he revised the measure to give environmental regulators a larger oversight role. The bill now requires DOE to consult with the appropriate regulators 90 days after issuing an emergency directive ordering a plant to run if the facility violates federal clean air or water standards. DOE would have the final say on whether the plant should be forced to continue operating, Olson said.

Rep. Henry Waxman (D-Calif.) said today that he supports the new version of the bill because it protects energy companies and the grid. Waxman had previously opposed the measure after EPA Assistant Administrator Gina McCarthy warned during a hearing last month that the bill could deter utilities from complying with new mercury and toxins standards.

Olson said during an interview today that he crafted the legislation because reliability of the electric grid is a pressing issue in the Lone Star State. If prolonged heat waves hit Texas this summer, the state could experience blackouts if the wind stops blowing or drought curbs the amount of water reaching power plants (Greenwire, May 30).

Olson said he was also approached on the subject by Mirant Corp., the predecessor of GenOn Energy. The Texas-based company is the only entity that DOE has twice ordered to operate to protect the grid and was later sued and fined for violating environmental regulations.

"Two parts of the government shouldn't put you guys in this pickle where you just have to decide whether or not you'll comply with one person's wishes and possibly get sued by somebody else," Olson said.

The congressman said that he has not yet reached out to counterparts in the Senate to craft a companion bill, but that Sens. Lisa Murkowski (R-Alaska), John Cornyn (R-Texas) and Kay Bailey Hutchison (R-Texas) are potential partners.

The committee also unanimously approved a bill from Reps. Cathy McMorris Rodgers (R-Wash.) and Diana DeGette (D-Colo.) that fosters the development of small hydropower and conduit projects (E&E Daily, June 20).

The legislation would direct the Federal Energy Regulatory Commission to study the feasibility of a streamlined two-year permitting process for pumped storage projects and nonpowered dams and allow the commission to extend the life span of preliminary permits for developers to investigate sites for new hydropower projects.

And the committee unanimously approved legislation that calls on the president to submit a report to Congress to outline a plan for promoting the U.S. manufacturing sector, and a bipartisan resolution that would establish a model for how the Internet should be governed.