“from plant to plug” a legal and policy critique of 111(d) conference of western attorneys...
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“From Plant to Plug” A Legal and Policy Critique of 111(d) Conference of Western Attorneys General July 22, 2014. Karl R. Moor Senior Vice President & Chief Environmental Counsel Southern Company. Unveiling Climate Action Plan - PowerPoint PPT PresentationTRANSCRIPT
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“From Plant to Plug”A Legal and Policy Critique of 111(d)
Conference of Western Attorneys GeneralJuly 22, 2014
Karl R. MoorSenior Vice President &
Chief Environmental CounselSouthern Company
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Unveiling Climate Action Plan
“I’m also directing the EPA to develop [standards for existing power plants] in an open and transparent way, to promote flexibility to different states with different needs . . .”
Remarks by the President on Climate ChangeJune 25, 2013
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Elements of “Clean Power Plan”
• Focal point of President’s Climate Action Plan• Establishes CO2 emissions standards for existing
power plants under Section 111(d) of the Clean Air Act
• Requires 30% reduction of CO2 emissions from power sector from 2005 levels by 2030
• States must show “meaningful progress” by 2020
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Legal Hurdles for 111(d)“ . . . EPA’s authority under the Clean Air Act is limited to developing a procedure for states to establish emissions standards for existing sources. EPA, if unchecked, will continue to implement regulations which far exceed its statutory authority to the detriment of the States . . .”
Letter from 17 State Attorneys General to EPA Administrator McCarthy
September 11, 2013
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“ . . . a standard of performance of performance under section 111(d) cannot be established for any air pollutant – HAP and non-HAP – emitted from a source category regulated under section 112.”
“ . . . if EPA is regulating source category X under section 112, section 111(d) could not be used to regulate any HAP emissions from that particular source category.”
U.S. Environmental Protection AgencyMarch 29, 2005
Legal Hurdles for 111(d)
(cont’d)
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D.C. Circuit Rejects EPA Reading of Section 111
“ . . . EPA has attempted to change the basic unit to which [Section 111] appl[ies] from a single building, structure, facility, or installation – the unit prescribed in the statute – to a combination of such units. The agency has no authority to rewrite the statute in this fashion.” (emphasis added)
ASARCO v. EPA, 1978
Legal Hurdles for 111(d)
(cont’d)
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BSER – “Inside”Performance standards reflective of emission limitation achievable through application of “best system of emission reduction” at single source
BSER – “Outside”“ . . . is based on a range of measures that fall into four main categories”(1)efficiency(2)environmentally-manipulated
dispatch(3)renewable and nuclear power(4)demand-side efficiency
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BSER “Building Blocks” Erode State Flexibility
• Assumes 6% efficiency improvement at each coal-fired unit on a continuous basis
• Increases natural gas combined cycle dispatch to 70% capacity factor
• Assumes unprecedented increases in renewables and penalizes states currently constructing low- and zero-emitting generation projects
• Applies selective and un-sustained demand side energy efficiently to all 50 states
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Electricity Generation by Fuel Type, 1993
Coal -- 53%
Nuclear -- 19%
Hydro/Renewables -- 11%
Natural Gas -- 13%
Oil and Other Liquids -- 4%
Source: U.S. Energy Information Administration 2013 Annual Energy Outlook
Changes in the U.S. Fuel Mix
Electricity Generation by Fuel Type, 2011
Coal -- 42%
Nuclear -- 17%
Hydro/Renewables -- 13%
Natural Gas -- 25%
Oil and Other Liquids -- 1%
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Structural Hurdles for States• Carbon Integrated Resource Plan (Carbon IRP)• In vertically-integrated states, coops, munis and
IPPs must be brought into dispatch process• Who will control dispatch process – PUC or DEQ?• Carbon IRP leads to reshuffling dispatch order• Changes to generation portfolios take years• Decisions must be made now
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Structural Hurdles for States (cont’d)
• “Acceptable” SIPs require regulatory structures that are non-existent in many states
• Multi-state plans necessitate interstate compacts; require state legislative approval and comply with Compact Clause
• SIPs due by June 2016• Clock is ticking
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