The "Baseload Reliability Protection Act" amends the Federal Power Act to prohibit the retirement or conversion of fuel sources for baseload electric generating units in specific regions. This prohibition applies to areas served by Regional Transmission Organizations (RTOs) or Independent System Operators (ISOs) that the North American Electric Reliability Corporation (NERC) categorizes as at elevated risk or high risk of electricity supply shortfalls. The primary goal is to safeguard the reliability of the bulk-power system in vulnerable areas by preventing the loss of essential generation capacity.

Operators or owners of affected units can petition the Federal Energy Regulatory Commission (FERC) for an exemption from this prohibition. Exemptions may be granted if compliance would lead to unprofitability, sustained financial losses, or elevated safety risks. Additionally, an exemption can be approved if the retirement or conversion would not hinder bulk-power system reliability, or if the unit is replaced by one with comparable or greater reliability attributes.

If FERC determines that a unit's retirement due to unprofitability would compromise bulk-power system reliability, the petition is referred to the Department of Energy (DOE). The DOE is authorized to provide grants or loans to support the continued operation of such critical units, utilizing existing federal funds. The bill also stipulates that FERC cannot consider greenhouse gas emissions when evaluating exemption petitions and provides protection from penalties for operators complying with the prohibition.

To ensure consistent application, the bill mandates the Electric Reliability Organization (ERO) to develop and publish standardized criteria and methodology for categorizing electricity supply risk. A "covered electric generating unit" is defined as a dispatchable unit of 25 megawatts or more, interconnected to the bulk-power system, and not primarily powered by intermittent renewable sources.