THIS WEEK AT A GLANCE
The Energy Subcommittee held a hearing on lessons from Winter Storm Fern, with NERC’s CEO characterizing the event as a “near-miss” and warning that reliability risk is rising as firm generation retires faster than new dispatchable capacity is added. Natural gas and coal carried the grid during peak demand; the Northeast’s pipeline constraints were exposed as a systemic vulnerability.
On the supply front, DOE executed the first tranche of the Strategic Petroleum Reserve release — an 86-million-barrel exchange — and separately invoked the Defense Production Act to restart California’s Santa Ynez oil facility. DOE also authorized a 13% increase in LNG exports from the Plaquemines terminal and extended its emergency order keeping a coal plant in Centralia, Washington operational. FERC approved three new cybersecurity and reliability standards. For Puerto Rico specifically, the White House issued a 60-day Jones Act waiver, allowing foreign vessels to deliver fuel and cargo as the Iran war continues to drive up shipping and energy costs.
ENERGY SUBCOMMITTEE HEARING
Winter Storm Fern Lessons: Supplying Reliable Power to Meet Peak Demand
Date: March 17, 2026 | Rayburn 2123, 10:00 AM ET
Chair: Rep. Bob Latta (R-OH) | Ranking Member: Rep. Kathy Castor (D-FL)
The Energy Subcommittee examined the grid reliability lessons from Winter Storm Fern, which struck the eastern United States in late January 2026. Four witnesses testified, representing grid reliability, natural gas infrastructure, electric utilities, and energy policy analysis. The hearing’s framing — established by Chairmen Guthrie and Latta — centered on the indispensable role of dispatchable, baseload generation in keeping the lights on during extreme weather events.
James Robb, President & CEO, North American Electric Reliability Corporation (NERC):
José Costa, President & CEO, Northeast Gas Association:
Brett Mattison, President & COO, Southwestern Electric Power Company (SWEPCO):
Michael Goggin, Executive VP, Grid Strategies:
Puerto Rico Connection: The hearing reinforced what the data from Winter Storm Fern already showed nationally: when the grid is under sustained stress, dispatchable generation — gas, coal, nuclear, oil — carries the load. Variable resources alone cannot guarantee reliability during prolonged peak demand events. This argument is directly applicable to Puerto Rico’s resource adequacy planning, where the mix of firm versus intermittent capacity is an active policy debate. NERC’s warning about the pace of generator retirements outrunning new firm capacity deserves close attention from Puerto Rico’s energy regulators.
AGENCY WATCH: DOE & FERC
DOE Initiates 86-Million-Barrel SPR Exchange — First Tranche of 172-Million-Barrel Release
Date: March 13, 2026
DOE issued a Request for Proposal to exchange 86 million barrels of crude oil from the Strategic Petroleum Reserve (SPR) — the first delivery tranche of the 172-million-barrel release authorized in response to the Iran war and announced last week. The transaction is structured as an exchange, not a sale: companies borrow the oil and return it later with additional barrels as a premium, meaning no net cost to taxpayers and a net gain for the reserve. Deliveries are expected to begin from three SPR sites by end of the week of March 16.
DOE Invokes Defense Production Act to Restart California’s Santa Ynez Oil Facility
Date: March 13, 2026
Secretary Wright directed Sable Offshore Corp. to restore operations at the Santa Ynez Unit and pipeline system in California, invoking the Defense Production Act. The action is framed as a national security measure: over 60% of oil refined in California comes from overseas, much of it through the Strait of Hormuz. Santa Ynez can produce approximately 50,000 barrels per day — a 15% boost to California’s in-state output. West Coast military installations also depend on California’s refining capacity, adding a defense rationale to the economic one.
DOE Authorizes 13% LNG Export Increase at Plaquemines Terminal
Date: March 13, 2026
DOE approved a 13% increase in LNG export capacity at Venture Global’s Plaquemines LNG terminal in Louisiana, in direct response to the Middle East supply disruption and the global LNG shortage triggered by the effective closure of the Strait of Hormuz. The authorization continues the administration’s posture of maximizing U.S. LNG export capacity as a tool of energy security for allies and trading partners.
Why This Matters for Puerto Rico: Plaquemines LNG is a Gulf Coast terminal — the same supply corridor that serves Puerto Rico’s primary LNG supplier, New Fortress Energy (NFE). Expanded export authorizations for U.S. Gulf Coast terminals reinforce the robustness of the domestic LNG supply chain that Puerto Rico depends on. More U.S. export capacity also strengthens the price signal that keeps Henry Hub — the benchmark for Puerto Rico’s gas costs — insulated from the global spot price spikes driven by the Hormuz crisis.
DOE Extends Emergency Order Keeping Centralia Coal Plant Online Through June 2026
Date: March 16, 2026
Secretary Wright issued an emergency order directing TransAlta to keep Unit 2 of the Centralia Generating Station in Washington State operational through June 14, 2026. Unit 2 was originally scheduled to shut down at the end of 2025; a prior emergency order issued December 16, 2025 had already extended its operation, and this order continues that extension. DOE cited its Resource Adequacy Report, which projected that blackouts could increase 100-fold by 2030 if reliable generation continued to be retired ahead of adequate replacement capacity. The action is part of the administration’s broader effort to reverse coal plant closures nationwide.
FERC Approves Three New Cybersecurity and Reliability Standards
Date: March 19, 2026
FERC unanimously approved three actions to strengthen grid reliability and cybersecurity:
OTHER DEVELOPMENTS
White House Issues 60-Day Jones Act Waiver
Date: March 18, 2026
The White House issued a 60-day waiver of the Jones Act — the Merchant Marine Act of 1920, which requires goods shipped between U.S. ports to travel on U.S.-built, U.S.-owned, and U.S.-crewed vessels. The waiver allows foreign vessels to deliver oil, natural gas, fertilizer, coal, and other cargo to U.S. ports for the duration of the waiver, in response to the supply disruptions and price increases caused by the Iran war. Press Secretary Karoline Leavitt stated the waiver will “allow vital resources like oil, natural gas, fertilizer, and coal to flow freely to U.S. ports for sixty days.”
Analysts caution that the price impact will be modest for most of the country — estimates suggest a reduction of roughly 3 cents per gallon nationally. The greatest benefit will accrue to states and territories that rely heavily on maritime shipping and have limited pipeline access: California, Hawaii, Alaska, and Puerto Rico.
Puerto Rico Connection: Puerto Rico is the most directly affected U.S. jurisdiction by the Jones Act, given the island’s complete dependence on maritime shipping for fuel, food, pharmaceuticals, and consumer goods. The 60-day waiver provides meaningful short-term relief by allowing foreign-flagged vessels to deliver cargo more cheaply and efficiently than the constrained U.S.-flagged fleet. It does not, however, address the long-term structural cost disadvantage the Jones Act creates for Puerto Rico. The waiver will expire well before any durable policy reform could take effect — making this a relief measure, not a solution. Puerto Rico’s government and congressional delegation should use this moment to advance the case for a permanent energy exemption or broader Jones Act reform.
DOE Announces $500 Million for Critical Mineral Processing
Date: March 13, 2026
DOE announced $500 million to expand domestic critical mineral processing, battery manufacturing, and recycling — framed as a national security and supply chain priority to reduce U.S. reliance on foreign sources. Letters of intent are due March 27, full applications due April 24, with an informational webinar scheduled March 26 at 1:00 PM ET.
LOOKING AHEAD
No Energy Subcommittee hearings have been announced for the week of March 23. Agency activity related to the Iran war energy response — including SPARK application progress and ongoing SPR delivery operations — remains the primary area to monitor.
On Our Radar:
NEED MORE DETAIL?
For questions about any item in this briefing, or to schedule a consultation, contact:
Anthony O. Maceira, Managing Member
amaceira@mzls.com
© 2026 Maceira Zayas Law & Strategy. All rights reserved. This briefing is provided for informational purposes only and does not constitute legal advice.
