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POLICY


AS EPA READIES CLIMATE RULE, OBAMA AND TRUMP ERAS LINGER


REPORTS SAY IT WILL INCLUDE TECHNOLOGY TO CAPTURE CARBON EMISSIONS FROM FOSSIL
FUEL SMOKESTACKS

Sen. Sheldon Whitehouse, D-R.I., said he hopes the regulation considers the
"terrible social cost of carbon emissions." (Bill Clark/CQ Roll Call file photo)
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By Benjamin J. Hulac and David Jordan
Posted May 1, 2023 at 12:38pm

The Biden administration will propose a rule this month to cut greenhouse gas
emissions from power plants, a central plank to meet its climate targets, and if
enacted, a first in U.S. history.

The proposal is expected to include provisions to require the installation of
emissions-trapping equipment known broadly as "carbon capture" technology on
utilities' smokestacks. 

A regulation that matches the description of the EPA rule is pending at the
White House's budget office after being discharged from the agency in March,
according to federal meeting logs.

An EPA spokeswoman, Khanya Brann, said last week the agency would propose its
rule in May.

The federal government has never implemented regulations to specifically limit
greenhouse gas pollution from power plants that generate electricity, the
country's second-largest source of carbon emissions, following the
transportation sector.



The Biden administration set an objective to cut overall national emissions in
half by 2030, from 2005 levels, and wipe them out altogether by 2050.

Before the EPA, during the Obama administration, could carry out a federal
proposal to cut power-sector emissions, the Supreme Court stayed the rule, which
never went into effect.

The Trump administration then proposed a weaker rule before a federal court in
Washington, D.C., struck it down in January 2021.

In June 2022, the Supreme Court ruled, 6-3, with the three liberal justices
dissenting, that the EPA does not have authority under the Clean Air Act to
regulate carbon pollution from power plants through a system to cap emissions
because Congress did not specifically authorize it to do so.

The ruling was based on an arcane legal theory, called the "major questions
doctrine" and lately popularized in conservative legal circles, that federal
agencies cannot act on big decisions without specific direction from Congress.



Sen. Sheldon Whitehouse, D-R.I., said he hopes the regulation considers the
"terrible social cost of carbon emissions."

The federal government uses what's called a "social cost of carbon" — a metric
placing a dollar figure on the societal and environmental damage of pollution —
to scrutinize rules it writes.

That figure is currently set at $51 per ton of emissions, though the EPA has
proposed raising it to $190, and a study by researchers at the University of
California, Berkeley, and the nonpartisan Resources for the Future published
last year in Nature estimated the cost should be $185.

"The Supreme Court decision, although it launched the previously non-existent
'major questions doctrine,' actually left very broad range for the EPA to
continue to try to regulate carbon emissions," Whitehouse said in an interview. 

Asked about the prospects of basing the proposal around carbon capture,
Whitehouse said the technology is proven. "It's real. There is enormous
bipartisan support for it. And I think it's high time that the EPA took that
remedy into consideration," he said.




2022 LEGISLATION



Democrats included language in the 2022 climate, health care and tax law to
bolster EPA's authority to regulate greenhouse gases under the Clean Air Act,
building on a 2007 Supreme Court ruling that made the same finding.

That was an "often overlooked but incredibly important provision" of the law,
Rep. Mike Levin, D-Calif., said in an interview.

"I think that the ability for EPA to regulate combustion plants under the Clean
Air Act, and actually address carbon emissions —that's a game-changer," said
Levin, an environmental lawyer before coming to Congress. "That's a game-changer
that we needed."

Electric power is responsible for 25 percent of U.S. greenhouse gas emissions,
according to EPA data.

Holly Burke, a spokesperson for Evergreen Action, a climate advocacy group, said
though transportation generates more emissions, cutting carbon pollution from
the electricity sector is vital to lower emissions from other portions of the
economy, like industry.



"While they're also making big important moves on things like transportation
rules, the power sector really is at the heart of so much of tackling the
climate crisis," Burke said of the coming EPA rule. 

"We have to make sure that the power that is being used to power those electric
cars and those electric stoves or what have you, is coming from cleaner sources
and producing fewer emissions."

In interviews last week, Republicans criticized the yet-to-be-released proposal
and rules from the 2022 climate law, which established an EPA program to limit
methane emissions from oil and gas industry sources.

House Republicans' legislation to narrow environmental laws and expand fossil
fuel production, much of which was folded into the debt limit bill the House
passed last week, would cut the EPA methane program. 

"These rules are going to shut down gas-fired and coal-fired energy before we
have a legitimate dispatchable, reliable replacement for that energy," Rep. Bill
Johnson, R-Ohio, said in an interview. "This is just mind-boggling crazy, that
they're moving this fast."



Johnson and other Republicans said renewables, broadly considered to be wind,
hydropower and solar, are too unreliable to trust as stable power sources.


GROWING SOURCE

Though wind and solar are intermittent sources, large battery systems can store
electricity for down periods, and renewables last year surpassed nuclear power
as a larger source of electricity, according to the Energy Information
Administration.

Renewables, which the EIA considers wind, hydropower, solar, geothermal and
biomass, generated about 22 percent of electricity in the country last year,
more than nuclear (18.2 percent) or coal (19.5 percent).

Rep. Tom Tiffany, R-Wis., said his home district, in the state's north, is not
ideal for wind or solar power. "We're not in a windy region, and we don't have
sun for a significant amount of the year," Tiffany said. "It just isn't the best
place for these intermittent sources of power."

The areas of the country with the strongest potential for wind power are the
regions that stretch from the U.S.-Canada border, through the Great Plains
states and down to Texas.



Tiffany cited a May 2022 report from North American Electric Reliability
Corporation, a private sector organization that monitors the stability of the
country's power grids, as a reason to keep fossil fuel-fired power plants
online. 

That report found heat and the retirement of coal plants, among other forces,
placed the northern Midwest at risk of blackouts.

House Natural Resources Chairman Bruce Westerman, R-Ark., said two coal plants
in Arkansas, including an Entergy-run plant in his district, are closing, in
part because of federal climate regulations.

The proliferation in recent years of gas, often more efficient than coal, as a
fuel source for power plants is also behind coal plant closures, Westerman said.

"Gas burns more efficiently. So for every unit of input you put into a gas
turbine, you're getting more electrical output," he said. 



The infrastructure law of last Congress provided $62 billion for a variety of
emissions-cutting programs at the Energy Department, including more than $10
billion for carbon capture technology, and the 2022 climate law included carbon
capture tax credits plus $2 billion in funding for carbon dioxide removal
technology, a related but separate field to carbon capture.

Jay Duffy, litigation director for Clean Air Task Force, an environmental group
with offices in Boston and the Netherlands, said carbon capture hardware hasn't
been installed widely on power plants in America because there has been scant
financial incentive to do so.

"The technology is out there and available," Duffy said in an interview. "But no
one's going to control their pollution until they're required to do it." Duffy
said his organization wants a carbon capture standard for power plants that
provide constant electricity, also known as "baseload" power.

With federal tax incentives and money, power plant operators could install new
mechanisms to cut their emissions sharply at minimal cost, he said. "The time is
now. We've never really had quite the opportunity to dramatically reduce
emissions from our power fleet at virtually no cost."

There are about 12,000 utility-scale power plants in the country, according to
the EIA, a fraction of which are equipped with carbon capture technology.



While the Obama-era rule never went into effect, its legacy lingers in
lawmakers' minds. 

Sen. Shelley Moore Capito, R-W.Va., the top Republican on the Senate Environment
and Public Works Committee, voted Wednesday in committee against an EPA nominee,
Joe Goffman, over his work on those rules and Biden-era rules.

"This onslaught of regulations on power plants has one clear goal: drive a stake
in the coal industry and squeeze natural gas use," Capito said.

Industry surpassed the climate targets the Obama administration set in its
proposal years in advance, as high-emitting coal plants closed and renewables
and gas grew.

Sen. Edward J. Markey, D-Mass., said in an interview that Obama-era proposal,
called the Clean Power Plan, "so lifted the gaze of the utility industry that by
2021 and 2022, they had already exceeded what the goals were in the Obama plan."



Markey, who helped write amendments to the Clean Air Act in the early 1990s to
address acid rain, said there is no "linkage" between economic growth and
emissions cuts, noting that states in the Regional Greenhouse Gas Initiative,
which includes New England and mid-Atlantic states, have grown their economies
in recent years as they've lowered emissions.

"I think that the higher they set the goals, the more likely that the utility
industry will meet and exceed what the goals are," Markey said of the EPA.

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