EPA Foes Vow To Block Power Plant Rules. It May Not Matter

Regardless of whether the rule stands or falls, the standards it sets could happen anyway.

The U.S. Environmental Protection Agency issued its final rule to limit carbon dioxide emissions from power plants Thursday, and the reaction from state officials was swift.

West Virginia Attorney General Patrick Morrisey said he’d take the case to court. Republican U.S. Sen. Shelley Moore Capito said she’d introduce a repeal resolution in the Senate. Democrat Joe Manchin, who’s not running for re-election, said he’d support her measure.

Regardless of whether the rule stands or falls, the standards it sets could happen anyway.

Morrisey was successful in his bid to block President Barack Obama’s Clean Power Plan. The U.S. Supreme Court sided with him in West Virginia v EPA two years ago.

The policy never took effect. But as Amanda Levin, director of policy analysis for the Natural Resources Defense Council, points out, the goals it set were met, and earlier than planned.

“That was also a rule at that time, there were concerns about whether or not the power sector would be able to achieve it, and it ended up achieving those standards 11 years early, even though the rule was stayed,” she said.

Now, as then, critics of the rules, including some in the electric power sector, say they can’t be achieved. Manchin points to the 2021 winter storm in Texas that caused deadly power outages.

“We saw what happened in Texas, how many people’s lives were lost, how much was disrupted in the economy, went to heck in a handbasket down there when their gas lines froze up.” he said.

The failures in Texas, and more recently in the eastern United States in late 2022, were mostly of fossil fuel infrastructure, especially natural gas. Renewables and battery storage helped hold the Texas power grid through last summer’s heat.

Levin says the new EPA rules come at a time when electric utilities are rapidly building wind, solar and battery storage. They’ve already surpassed coal and even nuclear.

“Clean energy sources are now the cheapest and fastest growing source of new power generation,” she said.

Even West Virginia is building more solar and will soon begin building storage batteries.

Mon Power activated the largest solar facility in the state in January in Monongalia County and is building another one in Harrison County.

Form Energy is building a long-duration storage battery plant in Weirton. Other companies coming to West Virginia, including steelmaker Nucor, wanted access to renewable power.

Phil Moye, a spokesman for Appalachian Power, which operates three coal plants in West Virginia, says the company is looking at the EPA rules to see how they affect plant operations and future investments.

“The development of new dispatchable generation resources and storage technologies will be critical in determining how quickly the industry can meet the requirements of the new rules,” he said.

Appalachian Power is an underwriter of West Virginia Public Broadcasting.

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.

Coal Production Lags In First Two Weeks of April, Federal Data Show

U.S. coal production fell below 8 million tons the first two weeks of April, according to the U.S. Energy Information Administration.

Coal has seen a slump in production this month, according to federal data.

U.S. coal production fell below 8 million tons the first two weeks of April, according to the U.S. Energy Information Administration.

A year ago, the United States produced about 10 million tons of coal during the first half of the month. Year to date, coal production is down more than 16 percent.

Coal was once the dominant fuel for producing electricity but it has been overtaken in recent years by natural gas and increasingly renewables such as wind and solar.

Further data show that coal’s market share for U.S. electricity has been under 15 percent for the past two months.

At its peak in 2008, the country produced 23 million tons a week and it commanded more than 40 percent of U.S. electricity generation.

The sector will lean more heavily on exports, the Energy Information Administration reported, though the temporary closure of the Baltimore export terminals will dent those numbers as well.

Production in West Virginia is down 14.5 percent from a year ago, according to the agency, and 13.5 percent in Appalachia.

A mild winter can cut into electricity demand, and natural gas prices are lower as well, eroding coal’s competitiveness.

Pumped Storage Power Project Could Be Coming To Northern W.Va.

Rye Development, of Portland, Oregon, on Thursday announced a $1.3 billion investment in a pumped storage power generation facility in Bell County, Kentucky.

An energy company that’s making a big investment in southeast Kentucky also has its sights set on northern West Virginia.

Rye Development, of Portland, Oregon, on Thursday announced a $1.3 billion investment in a pumped storage power generation facility in Bell County, Kentucky.

The same company has also applied for a preliminary permit with the Federal Energy Regulatory Commission to study locating a similar facility in Hardy and Grant counties.

The proposed Cabin Run Pumped Storage project could generate up to 230 megawatts of electricity. For comparison, the largest solar facility in West Virginia generates 19 megawatts.

It works by taking electricity during off-peak hours to pump water into a reservoir. During the hours of peak demand, the water is released, generating hydroelectric power.

The U.S. Department of Energy is kicking in an $81 million grant for the Kentucky project.

Rye Development’s permit application is currently pending before the commission.

Mon Power Building 2nd Solar Facility In State In Marion County

Jim Myers, president of Mon Power parent FirstEnergy’s West Virginia operations, said the property is a former coal ash disposal site.

Mon Power has started construction on its second solar facility in the state.

The company will build a 5.5 megawatt solar farm on 27 acres in Marion County near a coal-burning power plant that closed in 2012.

Jim Myers, president of Mon Power parent FirstEnergy’s West Virginia operations, said the property is a former coal ash disposal site.

“We believe the energy generated by our West Virginia solar sites will continue to encourage economic development in the state because a growing number of companies require a portion of the electricity they purchase to be generated by renewable sources,” he said.

In January, Mon Power activated its first solar facility in West Virginia in Monongalia County. It generates 19 megawatts on about 80 acres near two active coal plants.

The Marion County site, and another in Berkeley County, are expected to start operating by the end of the year.

Mon Power and Potomac Edison are seeking Public Service Commission approval to begin construction on two more solar facilities, one in Tucker County and one in Hancock County.

Together, the solar sites represent a small but growing renewable energy sector in the state.

Does Biden’s Permitting Pause Squeeze U.S. LNG Exports? Experts Say No

To hear what impact the decision has on U.S. LNG exports, Curtis Tate spoke with Sam Reynolds and Ana Maria Jaller-Makarewicz of the Institute for Energy Economics and Financial Analysis.

A recent decision by the Biden administration to suspend permitting for new export terminals for liquefied natural gas has drawn criticism from West Virginia lawmakers. 

To hear what impact the decision has on U.S. LNG exports, Curtis Tate spoke with Sam Reynolds and Ana Maria Jaller-Makarewicz of the Institute for Energy Economics and Financial Analysis, an organization that favors a faster transition away from fossil fuels.

This interview has been edited for length and clarity.

Tate: What does the pause on permitting for new LNG export terminals really mean?

Reynolds: Just for perspective, the U.S. is currently the largest global LNG exporter worldwide, we export about 86 million tons of liquefied natural gas a year. That’s more than Qatar and Australia, which are the next two largest. The U.S. currently has five projects under construction to export more LNG that would nearly double that amount over the remainder of the decade. Now, the U.S. pause on permitting, does not affect any of the existing or under construction projects. So that’s really important for consumers around the world to know that the U.S. is still on pace to nearly double its export capacity, and it’s already the largest worldwide. 

Right now, in Asia, the U.S.’s largest customers are Japan and South Korea, and a lot of these new export facilities in the U.S. are justified under the impression that our customers need more of this LNG. In fact, if you look at these two largest buyers, Japan and South Korea, both are reducing their natural gas and LNG demand, and actually quite dramatically. So in Japan, LNG exports peaked in 2014 and have declined ever since. And they actually fell 8 percent last year, which is more than double the rate of decline in previous years. Japan is upping its nuclear and renewables capacity, and actually doesn’t want any more of this very expensive fuel, that is LNG. It’s opting for cheaper resources. and South Korea is very similar. LNG demand fell 4 percent last year, as it brings on cheaper energy sources like renewables and nuclear. 

Tate: What about Europe? Didn’t Putin’s invasion of Ukraine cause European countries to become more reliant on U.S. LNG?

Jaller-Makarewicz: So while the U.S. was thinking, ‘Oh, Europe is in a big crisis, and we really need to step in to supply all the LNG that they need,’ at the same time Europe was working on their strategies to reduce gas demand. So what we see today, at the beginning of 2024, is a different reality than at the beginning of 2022. So what we have been saying in Europe, and I think that’s also the concern for the U.S. is that we need to analyze today’s conditions. For example, the gas demand in Europe reduced 20 percent In the last two years. Nobody could expect that. We could agree in certain instances, there’s some part of gas demand destruction. Part of it. But a great majority of it has been implementation of energy efficiency measures on gas demand management, on renewables. The mentality in Europe has changed now. 

Tate: Can countries turn to other sources for LNG?

Reynolds: The growth, if you look at the growth markets for LNG demand, where is demand actually increasing? And the largest sources of growth for this product are in South Asia, India, Bangladesh, Pakistan, and Southeast Asia, Vietnam, Philippines, Thailand, Singapore. Now, these are much more price sensitive countries, they don’t have the same amount of wealth that Europe, Japan and South Korea have to spend on this relatively expensive product that is U.S. LNG. 

And in fact, our main competitors for supplying these markets are Qatar and Australia, which are much cheaper sources of supply to this region. So they’re going to be making an economic decision about where to buy LNG. And actually, since the pause, we’ve seen a spate of deals announced with Qatar to buy more of their LNG. So it’s not necessarily that these countries are turning away from the U.S. specifically, because of the Biden pause. But there is an economic calculation to be made. Qatari LNG can often come in five to six times cheaper than U.S. LNG, which has to be shipped all the way around the world.

Jaller-Makarewicz: So I want to add something here. When the crisis started in Europe, Europe realized the dangers of depending so much on one supplier. That was the main problem that Europe was facing. So I don’t think they’re going to allow the same thing to happen. They are saying we need diversification of sources. So there will be up to a point where they will say that’s it. We need to diversify. We cannot accept more U.S. LNG, because we need to have more sources supplying the gas and LNG to Europe. So that also comes into play. Europe is under a lot of pressure for not repeating the mistakes of the past.

Tate: Has the Russia-Ukraine war accelerated the adoption of renewables and energy efficiency in Europe?

Jaller-Makarewicz: I can say that. And for example, in energy efficiency, before we were not talking about that topic, and suddenly, look, in September of 2022, I was in Madrid for an event. And it was hot. And they had a law that they couldn’t have the air conditioners, they had to have them up to a certain level, because they didn’t want to use more energy. We also got lots of talk here, the thermostats in the winter would have just one degree less, so they started to think about us as consumers, we could also do something to reduce it with our consumption. And it was not talked about like that before. Now it was decided, we need to speed up the renewables, we need to reduce all the problems with the bureaucracy and all that to allow those tax breaks to come into operation. So they accelerated that. I can say that they accelerated that.

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