EPA passes new rules to cut power plant emissions, causing debate. How will these regulations impact the energy industry? Legal challenges discussed by Jody Freeman. Exploring grid reliability amidst energy transition and congressional roles in updating environmental laws.
EPA's new regulations target coal and fossil fuel plants, requiring carbon pollution control for long-term operation beyond 2039.
EPA's emphasis on carbon capture and sequestration technology aims to facilitate cleaner energy transitions for pollution reduction.
Deep dives
EPA's Comprehensive Rules for Power Plants
The Environmental Protection Agency introduced four new rules in April targeting fossil fuel-fired power plants, particularly coal power plants. These rules aim to reduce carbon pollution and address various pollution aspects from coal plants, like toxic metal emissions, wastewater pollution, and coal ash management. The EPA's goal is to provide a coherent roadmap to the industry for planning investments by integrating pollution control rules. Although the Biden administration and supporters see these rules as progress, opponents fear they could impact energy system reliability.
Transitioning Coal-Fired Power Plants and New Gas Plants
The EPA's new rules will require many existing coal and new gas power plants to control a significant portion of their carbon emissions, especially if they plan to operate beyond 2039. The regulation sets the most stringent pollution control standards for coal plants expected to operate long-term, incorporating carbon capture and sequestration technology. It offers flexibility based on retirement timing, encouraging cleaner energy transitions and pollution reduction.
Challenges and Concerns Over Carbon Capture
The utility and coal industry have raised concerns about the reliance on carbon capture and sequestration (CCS) due to perceived high costs and limited deployment in existing US coal plants. However, the EPA emphasizes that CCS technology has been demonstrated and is becoming more affordable due to incentives and evolving economic conditions. Critics may challenge the credibility and feasibility of EPA's CCS standards in legal battles.
Legal Context and Potential Regulatory Obstacles
Amid potential legal challenges, there is uncertainty regarding the Chevron doctrine and the major questions doctrine in legal interpretation. The court's stance on agency deference and statutory discretion could impact the EPA's regulatory authority. Moreover, the Congressional Review Act poses a risk of rule cancellation for regulations finalized close to a potential political shift, reflecting the dynamic nature of environmental policy implementation.
In April, the Environmental Protection Agency passed four new rules to reduce pollution from fossil fuel-fired power plants.
One of the new rules requires many new gas and existing coal power plants to control 90 percent of their carbon pollution if they plan to operate beyond 2039. The other three rules specifically target coal, requiring the industry to clean up various parts of the value chain including toxic metal emissions from power generation, wastewater pollution, and coal ash management.
And while the Biden Administration and other proponents consider the new rules a step in the right direction, opponents argue they will undermine the reliability of energy systems.
So, how will the EPA’s new regulations impact the energy industry? What makes these standards different from previous attempts to regulate energy emissions? And how might opponents try to overturn them?
This week host Bill Loveless talks with Jody Freeman about the technicalities of the new EPA power plant rules, and the legal avenues opponents might pursue to overturn them.
Jody is the Archibald Cox professor of law and the founding director of the Harvard Law School Environmental & Energy Law Program. From 2009-2010, she served as a counselor for energy and climate change in the Obama White House. Jody has also previously served on the Advisory Council of the Electric Power Research Institute and as an independent director of ConocoPhillips.
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