H.R. 8738 – REDUCE Act

AI-Generated Summary

Updated February 8, 2026 at 5:20 PM UTC

The REDUCE Act (Responsive Energy Demand Unlocks Clean Energy Act) requires transmission organizations to accept bids from aggregators that pool the demand‑response of retail customers served by utilities that delivered more than 4 million megawatt‑hours in the prior fiscal year. It overrides any existing rules that might block such bids and directs the Federal Energy Regulatory Commission to issue implementing regulations within 90 days. The bill affects transmission organizations, aggregators, large utilities, and the retail electricity customers they serve.

Key Provisions

Transmission organizations must allow bids from aggregators representing demand response of retail customers of utilities that sold over 4 million MWh in the previous fiscal year, even if existing retail regulators prohibit such bids.
FERC must begin a rulemaking process within 90 days of enactment to establish the required procedures.
Provides definitions for “electric retail regulatory authority” and “transmission organization.”

Legislative Activity

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1 earlier action

HouseIntro Referral Latest Action

Referred to the House Committee on Energy and Commerce.

Energy and Commerce Committee

August 23, 2022

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HouseIntro Referral

Introduced in House

August 23, 2022

HouseIntro Referral

Referred to the House Committee on Energy and Commerce.

Energy and Commerce Committee

August 23, 2022

Bill Text

Latest available legislative text

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Introduced in HouseIssued August 23, 2022

I

117th CONGRESS

2d Session

H. R. 8738

IN THE HOUSE OF REPRESENTATIVES

August 23, 2022

Mr. Casten (for himself, Mr. Krishnamoorthi, Ms. Bonamici, Mr. Levin of California, Mr. Soto, and Mr. Tonko) introduced the following bill; which was referred to the Committee on Energy and Commerce

A BILL

To require Transmission Organizations to allow bids from aggregators of certain retail customers, and for other purposes.

1.

Short title

This Act may be cited as the Responsive Energy Demand Unlocks Clean Energy Act or the REDUCE Act.

2.

Aggregator bidding into organized power markets

(a)

In general

Notwithstanding any prohibition established by a relevant electric retail regulatory authority with respect to who may bid into an organized power market, each Transmission Organization shall allow any bid from an aggregator of retail customers that aggregates the demand response of the customers of utilities that distributed more than 4 million megawatt-hours in the previous fiscal year.

(b)

Rulemaking

Not later than 90 days after the date of enactment of this section, the Federal Energy Regulatory Commission shall initiate a rulemaking to carry out the requirements of subsection (a).

(c)

Definitions

In this section:

(1)

Electric retail regulatory authority

The term electric retail regulatory authority means an entity that establishes retail electricity prices and retail competition policies for customers.

(2)

Transmission Organization

The term Transmission Organization has the meaning given such term in section 3 of the Federal Power Act (16 U.S.C. 796).