The U.S. Environmental Protection Agency (EPA) has been making a lot of moves recently. Just in April, it released a draft of vehicle emission standards, and yesterday (11th) it proposed a draft to regulate carbon dioxide emissions from coal-fired and gas-fired power plants. If passed, it is expected to reduce carbon emissions by more than 600 million metric tons by 2042, equivalent to the annual emissions of 137 million vehicles. Coal-fired power plants that do not meet the standards may also be retired early.
Last year (2022), the US Supreme Court ruled that the Environmental Protection Agency lacked the authority to broadly restrict greenhouse gas emissions from coal-fired power plants, severely damaging the morale of the Biden team. The EPA is making a comeback this time, adopting a more cautious approach to legal regulations, but a strong backlash from industry and Republicans is expected.
New regulations promote the use of new technologies and the early closure of old coal-fired power plants
The EPA's proposed bill not only limits carbon emissions from existing power plants but also requires higher energy efficiency standards for new power plants (primarily gas-fired). This is expected to reduce carbon dioxide emissions by 617 million metric tons by 2042, equivalent to the annual emissions of 137 million vehicles. It will also generate $85 billion in public health and carbon reduction benefits.
The EPA noted that in addition to significantly reducing carbon emissions, the draft will also reduce air pollutants such as PM2.5, sulfur dioxide, and nitrogen oxides. It is expected to reduce 300,000 cases of asthma and 1,300 premature deaths by 2030. The draft does not specify which carbon reduction technologies must be used, but it is expected to encourage more power plants to adopt carbon capture and storage (CCS) technology or mix hydrogen with combustion gases.
The EPA explained that the standards were formulated based on mature, feasible technologies that are gradually being adopted by the industry, and also took into account factors such as the Best System for Reduction (BSER), cost, and energy supply and demand.
Environmental groups welcomed the policy, but expected strong backlash from power companies and Republican-leaning states. According to the Associated Press, Rich Nolan, president of the National Mining Association, criticized it as a "violent attack" on the power industry aimed at forcing coal-fired power plants to close early.
Environmental Protection Agency Administrator Michael Regan denied the claim, but acknowledged that some coal-fired power plants could be retired early as a result.
With the presidential election approaching, there is a risk of a Conservative backlash.
Coal-fired power accounts for 20% of U.S. electricity generation, while natural gas accounts for 40%. The power sector currently accounts for approximately 25% of total U.S. greenhouse gas emissions, second only to the transportation sector. Jim Matheson, CEO of the National Rural Electric Cooperative Association (NRECA), believes the new regulations will put pressure on power supply and dispatch.
Former President Barack Obama also tried to regulate carbon emissions from power plants, but his Clean Power Plan was scrapped by former President Donald Trump in 2017.
At the end of June 2022, the U.S. Supreme Court limited the government's authority to use the Clean Air Act to regulate carbon emissions from power plants, and the EPA was particularly cautious in drafting its proposal.
After the draft is made public for 60 days, the EPA will hold a public hearing to solicit feedback and make adjustments before finalizing it. The US presidential election is approaching in November next year, and the success and implementation of the series of carbon reduction policies proposed by the Biden administration before the election remains uncertain.
Source: Environmental Information Center (https://e-info.org.tw/node/236740)
