PolicyBrief
H.R. 164
119th CongressJan 15th 2025
POWER Act of 2025
HOUSE PASSED

The POWER Act of 2025 amends the Stafford Act to allow electric utilities to conduct hazard mitigation activities alongside power restoration using federal disaster relief funds. It ensures that receiving power restoration assistance does not disqualify utilities from receiving hazard mitigation assistance.

Valerie Hoyle
D

Valerie Hoyle

Representative

OR-4

PartyTotal VotesYesNoDid Not Vote
Republican
21820927
Democrat
21521005
LEGISLATION

POWER Act Supercharges Disaster Relief: Funds Can Now Be Used for Grid Resilience

The POWER Act of 2025—officially the "Promoting Opportunities to Widen Electrical Resilience Act of 2025,"—makes a significant change to how disaster relief funds can be used by electric utilities. Instead of just restoring power after a disaster, utilities can now also use these funds for hazard mitigation. That means upgrading infrastructure before disaster strikes, to make the grid more resilient. Think: stronger power lines, burying cables, and other proactive measures, all paid for with disaster relief money, alongside the usual post-disaster repairs.

Powering Up Prevention

The core change is to the Robert T. Stafford Disaster Relief and Emergency Assistance Act. Previously, funds were primarily for getting the lights back on. Now, utilities can use the same funds to make the system tougher in the first place. Section 2 of the POWER Act explicitly states that receiving emergency power restoration assistance doesn't disqualify a facility from also getting hazard mitigation assistance, as long as it meets the usual requirements (under section 406 of the Stafford Act).

Real-World Resilience

What does this mean on the ground? Imagine a coastal town repeatedly hit by hurricanes. Instead of just replacing downed power lines each time, the utility could use these funds to bury them, reducing the chance of outages in the next storm. Or consider a rural area prone to wildfires. Funds could be used to clear vegetation around power lines, reducing fire risk and improving grid reliability. It's about being proactive, not just reactive. For a farmer relying on electric irrigation, this could mean fewer disruptions. For a small business owner, it's less chance of losing power, and therefore, money. The change applies to funds allocated from the date the POWER Act is enacted.

Potential Pitfalls

While the POWER Act aims for efficiency, there are a few things to keep an eye on. Utilities might prioritize projects that benefit their bottom line more than overall community resilience. It's crucial to ensure that funds are used for the most effective mitigation efforts, not just the most convenient ones for the utility. Transparency in how these funds are allocated and spent will be key.

The Big Picture

This amendment to the Stafford Act is a step toward a more resilient energy infrastructure. By allowing for proactive hazard mitigation, it could reduce long-term costs and improve service reliability. It's a shift from simply reacting to disasters to preparing for them, which, in theory, saves money and headaches down the line.