Obama Targets Coal In New Electric Grid Regulations

One of the chief criticisms against electric cars is coal-powered electric grids can mar their net results, but today something fairly radical was done to curtail this scenario.

In a “historic” move by the U.S. Environmental Protection Agency, the first federal limits on state carbon emissions from the nation’s grids was introduced by the Clean Power Plan.

SEE ALSO: Why An Electric Car Is Greener Cradle to Grave

Hosted by President Barack Obama and EPA Administrator Gina McCarthy, the plan’s “moral” priority is founded on grave concerns over climate change, and these are being said to justify a speeding up an already underway shift toward renewable energy.

Under the rule, consumption of coal would be cut 23 percent by 2020 which has the coal industry and its supporters expressing dismay. Legal challenges are predicted to follow, though observers say the EPA has done what it can do stave off opponents in court.

Overall, the rule mandates a 32 percent reduction in powerplant carbon dioxide emissions by 2030 compared to levels from 2005 levels. This is an increase from a target of 30 percent proposed last year.

The rule requires states to submit plans for cutting carbon output by 2018 and their first targets for reductions must be met by 2022.

Critical Action

Over the coming weeks as the massive document is analyzed further, it is expected to polarize opposition, including along the lines of Republican and Democratic presidential lines.

Ironically, some of the voices that are quick to lambaste electric cars and their “dirty little secret” of coal-fired grids may also oppose the aggressive timeline to clean up the grid.

Even today, op-eds began springing up, but the Obama administration justifies the action as best for the country, the environment, and even the economy.

Today only China pollutes more than the U.S., and the U.S. is responsible for double the carbon dioxide compared to all other large economies.

Coal is the largest contributor today of electricity at around 38 percent. It has been dwindling as old powerplants have been shuttered, but remains responsible for 77 percent of carbon emissions according to the U.S. Energy Information Administration.

Climate Action Legacy

Political commentators are viewing this largely also as the president wishing to leave a legacy of having done something major to combat climate change. He will be meeting with Pope Francis in September who has written an encyclical on a moral obligation the Obama administration says it recognizes.

Actually, the message from the White House is more dire than that saying this is the first generation to notice changes predicted to be potentially cataclysmic and the last generation that can do anything about them.

We have a moral obligation to leave our children a planet that’s not polluted or damaged. The effects of climate change are already being felt across the nation. In the past three decades, the percentage of Americans with asthma has more than doubled, and climate change is putting those Americans at greater risk of landing in the hospital. Extreme weather events – from more severe droughts and wildfires in the West to record heat waves – and sea level rise are hitting communities across the country.

In a speech today, the president said carbon levels are higher today than they have been in 800,000 years. He said 2014 was the planet’s warmest year on record planet, and 14 of 15 warmest years on record were in first 15 years of this century.

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Meanwhile coal industry stakeholders, and other state leaders are warning of major costs that will cost jobs, hurt the mining industry, and more.

If this is true, one might surmise it comes down to whether the emergency of climate change justifies strong action to preserve the interests of many more in the global population versus constituencies within the United States.

But the Obama administration does not put things in these terms, and instead warrants an accelerated shift to renewable energy.

According to EPA Administrator Gina McCarthy, the estimated annual cost of the rule would be $8.4 billion by 2030 but would pay off to the tune of $34 billion to $54 billion per year by then.

These include all benefits, including to public-health, and are outlined below:

• Provide significant public health benefits – The Clean Power Plan, and other policies put in place to drive a cleaner energy sector, will reduce premature deaths from power plant emissions by nearly 90 percent in 2030 compared to 2005 and decrease the pollutants that contribute to the soot and smog and can lead to more asthma attacks in kids by more than 70 percent. The Clean Power Plan will also avoid up to 3,600 premature deaths, lead to 90,000 fewer asthma attacks in children, and prevent 300,000 missed work and school days.

• Create tens of thousands of jobs while ensuring grid reliability;

• Drive more aggressive investment in clean energy technologies than the proposed rule, resulting in 30 percent more renewable energy generation in 2030 and continuing to lower the costs of renewable energy.

• Save the average American family nearly $85 on their annual energy bill in 2030, reducing enough energy to power 30 million homes, and save consumers a total of $155 billion from 2020-2030;

• Give a head start to wind and solar deployment and prioritize the deployment of energy efficiency improvements in low-income communities that need it most early in the program through a Clean Energy Incentive Program; and Continue American leadership on climate change by keeping us on track to meet the economy-wide emissions targets we have set, including the goal of reducing emissions to 17 percent below 2005 levels by 2020 and to 26-28 percent below 2005 levels by 2025.

Key Features

The final Clean Power Plan takes into account the unprecedented input EPA received through extensive outreach, including the 4 million comments that were submitted to the agency during the public comment period. The result is a fair, flexible program that will strengthen the fast-growing trend toward cleaner and lower-polluting American energy. The Clean Power Plan significantly reduces carbon pollution from the electric power sector while advancing clean energy innovation, development, and deployment. It ensures the U.S. will stay on a path of long-term clean energy investments that will maintain the reliability of our electric grid, promote affordable and clean energy for all Americans, and continue United States leadership on climate action. The Clean Power Plan:

• Provides Flexibility to States to Choose How to Meet Carbon Standards: EPA’s Clean Power Plan establishes carbon pollution standards for power plants, called carbon dioxide (CO2) emission performance rates. States develop and implement tailored plans to ensure that the power plants in their state meet these standards– either individually, together, or in combination with other measures like improvements in renewable energy and energy efficiency. The final rule provides more flexibility in how state plans can be designed and implemented, including: streamlined opportunities for states to include proven strategies like trading and demand-side energy efficiency in their plans, and allows states to develop “trading ready” plans to participate in “opt in” to an emission credit trading market with other states taking parallel approaches without the need for interstate agreements. All low-carbon electricity generation technologies, including renewables, energy efficiency, natural gas, nuclear and carbon capture and storage, can play a role in state plans.

• More Time for States Paired With Strong Incentives for Early Deployment of Clean Energy: State plans are due in September of 2016, but states that need more time can make an initial submission and request extensions of up to two years for final plan submission. The compliance averaging period begins in 2022 instead of 2020, and emission reductions are phased in on a gradual “glide path” to 2030. These provisions to give states and companies more time to prepare for compliance are paired with a new Clean Energy Incentive Program to drive deployment of renewable energy and low-income energy efficiency before 2022.

• Creates Jobs and Saves Money for Families and Businesses: The Clean Power Plan builds on the progress states, cities, and businesses and have been making for years. Since the beginning of 2010, the average cost of a solar electric system has dropped by half and wind is increasingly competitive nationwide. The Clean Power Plan will drive significant new investment in cleaner, more modern and more efficient technologies, creating tens of thousands of jobs. Under the Clean Power Plan, by 2030, renewables will account for 28 percent of our capacity, up from 22 percent in the proposed rule. Due to these improvements, the Clean Power Plan will save the average American nearly $85 on their energy bill in 2030, and save consumers a total of $155 billion through 2020-2030, reducing enough energy to power 30 million homes.

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• Rewards States for Early Investment in Clean Energy, Focusing on Low-Income Communities: The Clean Power Plan establishes a Clean Energy Incentive Program that will drive additional early deployment of renewable energy and low-income energy efficiency. Under the program, credits for electricity generated from renewables in 2020 and 2021 will be awarded to projects that begin construction after participating states submit their final implementation plans. The program also prioritizes early investment in energy efficiency projects in low-income communities by the Federal government awarding these projects double the number of credits in 2020 and 2021. Taken together, these incentives will drive faster renewable energy deployment, further reduce technology costs, and lay the foundation for deep long-term cuts in carbon pollution. In addition, the Clean Energy Incentive Plan provides additional flexibility for states, and will increase the overall net benefits of the Clean Power Plan.

SEE ALSO: Here’s Why Electric Cars Are Always Greener Than Gas

• Ensures Grid Reliability: The Clean Power Plan contains several important features to ensure grid reliability as we move to cleaner sources of power. In addition to giving states more time to develop implementation plans, starting compliance in 2022, and phasing in the targets over the decade, the rule requires states to address reliability in their state plans. The final rule also provides a “reliability safety valve” to address any reliability challenges that arise on a case-by-case basis. These measures are built on a framework that is inherently flexible in that it does not impose plant-specific requirements and provides states flexibility to smooth out their emission reductions over the period of the plan and across sources.

• Continues U.S. Leadership on Climate Change: The Clean Power Plan continues United States leadership on climate change. By driving emission reductions from power plants, the largest source of U.S. greenhouse gas emissions, the Clean Power Plan builds on prior Administration steps to reduce emissions, including historic investments to deploy clean energy technologies, standards to double the fuel economy of our cars and light trucks, and steps to reduce methane pollution. Taken together these measures put the United States on track to achieve the President’s near-term target to reduce emissions in the range of 17 percent below 2005 levels by 2020, and lay a strong foundation to deliver against our long-term target to reduce emissions 26 to 28 percent below 2005 levels by 2025. The release of the Clean Power Plan continues momentum towards international climate talks in Paris in December, building on announcements to-date of post-2020 targets by countries representing 70 percent of global energy based carbon emissions.

• Sets State Targets in a Way That Is Fair and Is Directly Responsive to Input from States, Utilities, and Stakeholders: In response to input from stakeholders, the final Clean Power Plan modifies the way that state targets are set by using an approach that better reflects the way the electricity grid operates, using updated information about the cost and availability of clean generation technologies, and establishing separate emission performance rates for all coal plants and all gas plants.

• Maintains Energy Efficiency as Key Compliance Tool: In addition to on-site efficiency and greater are reliance on low and zero carbon generation, the Clean Power Plan provides states with broad flexibility to design carbon reduction plans that include energy efficiency and other emission reduction strategies. EPA’s analysis shows that energy efficiency is expected to play a major role in meeting the state targets as a cost-effective and widely-available carbon reduction tool, saving enough energy to power 30 million homes and putting money back in ratepayers’ pockets.

• Requires States to Engage with Vulnerable Populations: The Clean Power Plan includes provisions that require states to meaningfully engage with low-income, minority, and tribal communities, as the states develop their plans. EPA also encourages states to engage with workers and their representatives in the utility and related sectors in developing their state plans.

• Includes a Proposed Federal Implementation Plan: EPA is also releasing a proposed federal plan today. This proposed plan will provide a model states can use in designing their plans, and when finalized, will be a backstop to ensure that the Clean Power Plan standards are met in every state.