EPA To Require Coal And New Gas Power Plants To Cut Emissions

The power plant rules align with changes that have been happening in the sector in the past decade. Electric utilities have moved sharply away from coal, largely switching to natural gas.

The U.S. Environmental Protection Agency on Thursday rolled out its final rules to cut emissions from existing coal-fired and new gas power plants.

Those plants will have to ultimately cut their carbon dioxide emissions by 90 percent or shut down.

The new rules include updated limits on mercury and other toxic pollutants from plants that burn coal. They also include changes to how power plants dispose of the wastewater that results from treating coal emissions to remove toxic pollutants.

Finally, the rules require the cleanup of coal ash disposal sites that were closed prior to 2015.

“By developing these standards in a clear, transparent, inclusive manner, EPA is cutting pollution while ensuring that power companies can make smart investments and continue to deliver reliable electricity for all Americans,” said EPA Administrator Michael Regan.

The power plant rules align with changes that have been happening in the sector in the past decade. Electric utilities have moved sharply away from coal, largely switching to natural gas.

“This year, the United States is projected to build more new electric generation capacity than we have in two decades – and 96 percent of that will be clean,” said White House Climate Adviser Ali Zaidi.

Renewables such as wind and solar account for an increasing percentage of power generation and have surpassed coal.

Still, fossil fuel producing states, and some industry groups, are expected to challenge the new rules. Some will argue that the rules will have a negative economic impact on power plant communities. Others will say the rules will make the power grid less reliable.

“We will be challenging this rule,” said West Virginia Attorney General Patrick Morrisey in a statement issued soon after the new rules were published. “The U.S. Supreme Court has placed significant limits on what the EPA can do—we plan on ensuring that those limits are upheld, and we expect that we will once again prevail in court against this out-of-control agency.”

Morrisey, who’s running in West Virginia’s Republican primary for governor, led a successful challenge of the Obama administration’s Clean Power Plan. The Supreme Court’s ruling in West Virginia v EPA two years ago constrained the EPA’s rulemaking process. Morrisey and others are likely to argue that the agency still overstepped its authority.

Others say the grid simply isn’t ready for a massive shift away from traditional baseload power to more intermittent sources of energy such as wind and solar.

“This barrage of new EPA rules ignores our nation’s ongoing electric reliability challenges and is the wrong approach at a critical time for our nation’s energy future,” said Jim Matheson, CEO of the National Rural Electric Cooperative Association.

Adding to the uncertainty, a change in administrations after this year’s election could result in a rollback of the new rules.

If the rules hold up, the EPA projects $370 billion in climate and public health benefits over the next two decades. The agency’s analysis predicts a reduction of 1.38 billion tons of CO2 through 2047, the equivalent of the annual emissions of 328 million gasoline powered cars.

The EPA is also gathering public input on a proposal to cut emissions from existing gas-fired power plants. Natural gas is currently the nation’s top source of electricity, and though it produces lower carbon emissions than coal, the production and transportation of gas emits methane, a more powerful heat-trapping gas than CO2.

The EPA’s principal solution for coal and gas plants to comply with the new rules is carbon capture and storage. But the technology has not been deployed successfully on a commercial scale, and power plant operators say that the rules will force fossil fuel plants to effectively shut down.

“It is obvious that the ultimate goal of these EPA regulations is to stop the use of fossil fuels to produce reliable energy in the United States by forcing the premature closure of coal plants and blocking new natural gas plants,” said U.S. Sen. Joe Manchin, D-West Virginia, chairman of the Senate Energy and Natural Resources Committee.

Another powerful foe of the EPA rules vowed Thursday that she’d introduce a bill to repeal them.

“To protect millions of Americans, including energy workers, against executive overreach that has already been tried and rejected by the Supreme Court,” said U.S. Sen. Shelley Moore Capito, R-West Virginia, “I will be introducing a Congressional Review Act resolution of disapproval to overturn the EPA’s job-killing regulations announced today.”

Capito is the senior Republican on the Senate Environment and Public Works Committee, which oversees the EPA and confirms its administrator.

Warned By Treasurer, 2 Banks Avoided List Of Restricted Institutions

Treasurer Riley Moore added HSBC, Citigroup, TD Bank and Northern Trust to its list of financial institutions barred from state contracts. BMO and Fifth Third were not added to the list.

West Virginia’s Treasurer added four banks to a list of restricted institutions this week, but two more were left off.

Treasurer Riley Moore added HSBC, Citigroup, TD Bank and Northern Trust to its list of financial institutions barred from state contracts.

They join five others that Moore determined were boycotting fossil fuel investments.

However, two more banks that received warning letters from Moore in February, BMO and Fifth Third, were not added to the list.

Both banks replied to Moore that they were not shunning such investments. Senate Bill 262, enacted two years ago, enabled the Treasurer to review banks’ environmental, social and governance, or ESG policies. 

Of the nine banks now on the list, six are among the top banks financing coal-burning utilities, according to the Sierra Club.

They are Goldman Sachs, Chase, Morgan Stanley, Wells Fargo, Citigroup and TD. 

Other states, including Kentucky and Texas, have passed similar laws in opposition to ESG policies that are perceived to discourage fossil fuel investments.

BlackRock, another bank blacklisted from state contracts, is financing EQT, the biggest natural gas producer in the state and the biggest customer of the nearly finished Mountain Valley Pipeline. EQT announced last month it is buying the builder of the $7.5 billion pipeline, Equitrans Midstream.

Experts Weigh In On Permitting Suspension For Liquefied Natural Gas, This West Virginia Morning

On this West Virginia Morning, a recent decision by the Biden administration to suspend permitting for new export terminals for liquefied natural gas (LNG) has drawn criticism from West Virginia lawmakers. To hear what impact the decision has on United States LNG exports, Curtis Tate spoke with Sam Reynolds and Ana Maria Jaller-Markarewicz of the Institute for Energy Economics and Financial Analysis.

On this West Virginia Morning, a recent decision by the Biden administration to suspend permitting for new export terminals for liquefied natural gas (LNG) has drawn criticism from West Virginia lawmakers. To hear what impact the decision has on United States LNG exports, Curtis Tate spoke with Sam Reynolds and Ana Maria Jaller-Markarewicz of the Institute for Energy Economics and Financial Analysis.

Also, in this show, the U.S. has seen a huge buildout in plants using fossil fuels to make plastics over the last decade. A new report finds those plants routinely break environmental laws, even though they receive major subsidies from taxpayers. The Allegheny Front’s Reid Frazier reports Shell’s ethane cracker in Beaver County, Pennsylvania was given over $1 billion in tax breaks yet violated its air pollution permit even before opening.

West Virginia Morning is a production of West Virginia Public Broadcasting which is solely responsible for its content.

Support for our news bureaus comes from Shepherd University.

Eric Douglas is our news director and producer.

Listen to West Virginia Morning weekdays at 7:43 a.m. on WVPB Radio or subscribe to the podcast and never miss an episode. #WVMorning

State Blacklisted BlackRock. But Guess What It’s Financing?

A report earlier this month from the Sierra Club shows that in 2022 and 2023, BlackRock bought more than $45 million in bonds issued by EQT Corporation.

One of the banks barred from state contracts by the Treasurer’s Office is financing the Mountain Valley Pipeline.

In 2022, following the enactment of Senate Bill 262, Treasurer Riley Moore issued the first list of “restricted financial institutions” he determined were not friendly to fossil fuels.

One of those was BlackRock. Moore accused the firm of putting China’s interests over West Virginia’s and encouraging companies to move away from coal, oil and natural gas.

“Any company that thinks Communist China is a better investment than West Virginia energy or American capitalism clearly has a bad strategy,” Moore said in 2022. “We will continue to give our state’s business to people who aren’t simultaneously trying to destroy our economy.”

Two years later, BlackRock is still on the list. 

“It’s one of the largest shareholders of publicly traded fossil fuel companies on the planet,” said Ben Cushing, director of the Sierra Club’s Fossil Free Finance campaign.

A report earlier this month from the Sierra Club shows that in 2022 and 2023, BlackRock bought more than $45 million in bonds issued by EQT Corporation.

Not only is EQT one of the largest gas producers in Appalachia, it also is poised to be the biggest user of the Mountain Valley Pipeline.

Once the pipeline becomes operational this year, EQT plans to use it to ship 1.2 billion cubic feet of gas per day 303 miles from north central West Virginia to southern Virginia. That’s two-thirds of the pipeline’s total capacity.

Environmental groups and landowners have long opposed the pipeline. The state’s leading elected officials have been its biggest champions.

Cushing said BlackRock’s earlier public commitments to address climate change may have made it a target.

“Lots of speculation, I suppose as to why they’ve been particularly attacked, I think, because they are the biggest and one of the best well, well known and that they have at least nominally stated their commitment to climate action, has put them in the crosshairs of this climate denial movement,” he said. “But the fact remains that many of those commitments have not actually been implemented, and they continue to be one of the largest investors in fossil fuels in the world.”

Five banks are on the original list. Moore sent letters this week to six more. They have 45 days to prove they’re not boycotting fossil fuels, or they will be added to the list.

Jared Hunt, a Treasury spokesman, said SB 262 allows any company to petition the Treasurer to be removed from the list. None has asked to be removed, Hunt said. 

State Treasurer Warns 6 Banks They May Be Added To ‘Restricted’ List

Treasurer Riley Moore has sent letters to six financial institutions warning them their environmental, social and governance policies could cost them state contracts.

West Virginia’s treasurer has warned a new set of banks they may be barred from engaging in contracts with the state.

Treasurer Riley Moore has sent letters to six financial institutions warning them their environmental, social and governance policies could cost them state contracts.

The restricted financial institutions list arose from Senate Bill 262, which became law in 2022.

Moore initially placed five banks on the list: BlackRock, Goldman Sachs, JPMorgan Chase, Morgan Stanley and Wells Fargo.

Kentucky enacted a similar law the same year, though the Kentucky treasurer’s office has different banks on its list.

Through a Freedom of Information Act Request, the banks that received the new letters are: BMO Bank, Citibank, Fifth Third, Northern Trust, TD Bank and HSBC.

They have 45 days to prove they are not engaged in a boycott of fossil fuel companies, or they will be added to the list.

A report last year from the Sierra Club showed that four of the five banks originally on the West Virginia Treasurer’s list – Goldman Sachs, Chase, Morgan Stanley and Wells Fargo – are among the top providers of financing to utility companies that burn coal.

Citibank and TD Bank are also among the companies supporting coal-burning utilities.

Three of the banks on the combined list – Chase, Citi and Wells Fargo – are among the top six providers of financing to coal-burning utilities.

The three banks have committed to align their financing with the Paris Agreement and the Net Zero Banking Alliance yet have injected billions of dollars into coal-consuming utilities since 2016.

Bill To Raise Taxes On Wind Turbines Advances In Senate

If Senate Bill 231 becomes law, wind turbines would be taxed as real property, not as personal property.

A Senate committee approved a potential tax increase on wind turbines Tuesday.

If Senate Bill 231 becomes law, wind turbines would be taxed as real property, not as personal property.

According to an attached fiscal note, that would increase revenue by $6.1 million annually, funds that would flow to schools, county commissions and the state’s general fund.

However, industry advocates say the move would make wind power less competitive in West Virginia and drive investment to other states.

Wind and solar are currently the cheapest forms of electricity. Supporters of the change say it helps fossil fuels compete with renewables.

The Senate Energy, Industry and Mining Committee approved SB 231 with little debate. The bill now goes to the Finance Committee.

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