U.S. Power Plant Owners Warn Biden Administration Over Carbon Emissions Plan
August 8, 2023
Power plant owners in the United States have raised concerns over the Biden administration’s plan to reduce carbon emissions from the electricity sector. The plan, which aims to achieve net-zero emissions by 2035, heavily relies on expensive and unproven technologies, according to the Edison Electric Institute (EEI), the top utility trade group.
In a public comment released on Tuesday, the EEI urged the U.S. Environmental Protection Agency (EPA) for revisions of the proposed power plant standards. The group argues that the plan’s reliance on technologies such as carbon capture and storage (CCS) and low-emissions green hydrogen is “not legally or technically sound.”
The power plant owners expressed doubts about the timeline, performance, and cost requirements associated with the new technologies designated by the EPA. They are concerned that the proposed standards for new and existing fossil-based generation may not be achievable within the given timeframe.
The resistance from the EEI and other energy-related groups poses a significant challenge to the Biden administration’s climate agenda. The plan to slash carbon emissions from the electricity sector is a central part of the U.S. commitment to halve greenhouse gas output by 2030 as part of the global fight against climate change.
West Virginia, which previously led a lawsuit against the Obama-era Clean Power Plan, also voiced opposition to the proposed standards. The state and 20 others argue that the regulations would force coal plant operators to close, leaving them with no alternative options.
The proposed limits for both new and existing power plants require the use of CCS technology or hydrogen as a fuel to reduce carbon dioxide emissions. The EPA argues that recent legislation supporting these technologies makes them cost-effective and viable.
Environmental groups such as the Clean Air Task Force and the Natural Resources Defense Council support the proposed guidelines. They argue that the plan allows sufficient time for implementation and compliance without causing reliability issues.
However, industry players have raised concerns about retrofitting existing natural gas power plants with CCS or hydrogen due to space constraints and other limitations. The biggest power grid operators, including PJM Interconnection, have warned that the “needed technologies are not widely commercialized in time” to replace retiring dispatchable generation.
The EPA’s proposal calls for large existing gas-fired plants to install carbon capture technology by 2035 or co-fire with hydrogen by 2032. The EEI has requested the agency to reconsider the rules for existing gas plants.
While some utility companies, such as Constellation, support the EPA’s proposed guidelines, the National Rural Electric Cooperative Association opposes them. The association argues that the rules compromise reliability and affordability.
Labor unions, including the United Mine Workers of America and the International Brotherhood of Electricity Workers, have also criticized the EPA’s reliance on CCS. They contend that this approach puts jobs at risk.
The EPA’s proposal was formulated in response to constraints imposed by the Supreme Court, which ruled that the Obama-era Clean Power Plan went too far in shifting from fossil fuels to renewable energy.
The Biden administration now faces significant pressure to address the concerns raised by power plant owners and industry stakeholders. Balancing the need for emissions reductions with the practicality and economic viability of the proposed technologies will be a key challenge in achieving the administration’s climate goals.
Reporting by Nichola Groom in Los Angeles and Valerie Volcovici in Washington, with additional reporting by Deep Vakil in Bengaluru. Editing by Marguerita Choy and Matthew Lewis.