The U.S. Environmental Protection Agency (EPA) took another shot at regulating the amount of carbon dioxide that can be emitted from fossil fuel power plants with the announcement of the new proposed rule last week. EPA’s proposed rule comes less than a year after the Supreme Court ruled in West Virginia v. EPA that EPA cannot set a greenhouse gas source standard based on generation shifting. However, the opinion was widely interpreted to affirm the EPA’s ability to regulate carbon dioxide emissions at new and existing power plants.
So, that is the approach of the new regulation which lays
out a range of proposed requirements for power plants that are fueled by
natural gas or coal. This new rule will be challenged in court for its reliance
on new and unproven technologies to meet emissions goals that are intended to force
the closure of more coal-fired power plants and limit the use of gas-powered
electricity. I have a particular interest in this because the expansion of the data
center industry in Virginia has taken control of the demand for electricity
here. In the next decade it is forecast that data centers will account for more
than half the electricity used in Virginia and has made all Virginians dependent
on the fossil fuel generated power from West Virginia and Pennsylvania as well as our own fossil fuel plants.
To comply with the new rule large coal-fired power plants that
plan to operate beyond 2040 would need to use carbon-capture and sequestration
technology (CCS) to reduce their emissions by 90%. “Major” gas-fired plants
could either utilize CCS or transition to clean hydrogen as a fuel source to meet emission reductions. Section
111 of the Clean Air Act under which this rule is being promulgated
allows EPA to regulate pollutants from stationary sources through the “best
system of emission reduction” that is “adequately demonstrated.” These
technologies may not meet that standard in the here and now.
Installation of controls such as CCS for coal and gas
plants, and low-GHG hydrogen co-firing for gas plants are reported by the EPA to
be more cost-effective for power plants that operate at greater capacity, more
frequently, or over longer time periods. The proposed standards and guidelines
take this into account by establishing standards for different subcategories of
power plants according to characteristics such as their capacity, their
intended length of operation, and/or their frequency of operation. This would seemingly
allow the existence of emergency peak load generation for weather extremes or
other disruptions.
EPA’s argument makes sense, since usually, there are
economies of scale; but none of these types of plants exist. These mandated
technologies have not yet proven economical at scale. In addition, the need for pipelines to move
the carbon captured for permanent storage
or use is not addressed. These technologies are not yet a proven option. The proposed
rule is more than 600 pages long and I have not read it all. I will leave that
to the Utilities and Virginia Energy.
EPA will accept comments on these proposals for 60 days
after publication in the Federal Register. EPA will also hold a virtual public
hearing and will make additional information available on their website.
Registration for the public hearing will open after the proposal is published
in the Federal Register.
In the legal Challenges that will follow the core questions
will be whether CCS is an economically viable technology or has this EPA rule
been designed to push electric utilities away from fossil fuels and towards
cleaner energy sources. The challenges will be filed soon enough.
It is becoming clear that decarbonization will have an
impact on the quality of our lives and grid reliability. We are not yet capable
of having unlimited green energy available 24/7. We need to have an honest
discussion of costs, sacrifices in quality of life and standard of living and
the real benefits to the planet that this will bring. None of this is free and
all wealth is limited. We may increase economic disparity for environmental disparity.
- approximately 1,300 premature deaths (0.038% of annual deaths);
- more than 800 hospital and emergency room visits (0.0006% of annual emergency room visits);
- more than 300,000 cases of asthma attacks;
- 38,000 school absence days;
- 66,000 lost workdays.”
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