EPA finalizes Affordable Clean Energy rule as electric, natgas utilities move forward on cutting emissions
Electric and natural gas utilities reiterated their commitment to reducing carbon dioxide emissions after the U.S. Environmental Protection Agency (EPA) on Wednesday issued the final Affordable Clean Energy (ACE) rule to replace the Obama-era Clean Power Plan.
The new rule is the result of a review of the Clean Power Plan that was done in response to President Donald Trump’s Executive Order on Promoting Energy Independence and Economic Growth. The ACE rule establishes emissions guidelines for states to use when developing plans to reduce CO2 emissions at coal-fired power plants.
The Edison Electric Institute (EEI), which represents all U.S. investor-owned electric companies, noted on Wednesday that its member companies collectively are already on a path to cut CO2 emissions 50 percent by 2030 from 2005 levels.
The ACE rule identifies heat rate improvements as the best system of emission reduction for CO2 from coal-fired power plants, and the improvements can be made at individual facilities. States will have three years to submit their plans. The rule also contains new implementing regulations for ACE and future existing-source rules under the Clean Air Act. These guidelines will inform states as they set unit-specific performance standards, the EPA said.
“Today, we are delivering on one of President Trump’s core priorities: ensuring the American public has access to affordable, reliable energy in a manner that continues our nation’s environmental progress,” EPA Administrator Andrew Wheeler said on Wednesday. “Unlike the Clean Power Plan, ACE adheres to the Clean Air Act and gives states the regulatory certainty they need to continue to reduce emissions and provide a dependable, diverse supply of electricity that all Americans can afford.”
The EPA anticipates that the ACE rule when fully implemented, along with additional expected emissions reductions based on long-term industry trends, will result in as much as a 35 percent reduction in CO2 emissions from the electric sector by 2030 from 2005 levels.
U.S. Sen. Tom Carper (D-DE.), the top Democrat on the Senate Environment and Public Works Committee, noted that four years ago the Clean Power Plan set the first targets to lower carbon emissions from power plants.
“Back then, critics of the plan – and there were plenty – argued that those targets were too ambitious, and would result in some kind of economic fallout that would beleaguer us all. Today, we know just how wrong those critics were. As it turns out, America’s utilities are already on track to meet and surpass the goals set by the Clean Power Plan, and Americans are reaping the benefits with lower utility bills,” Carper said.
EEI said it is reviewing the details of the Affordable Clean Energy rule, and will be working with its members to determine what the rule means for its companies, the power sector and customers.
“EEI’s member companies are united in their commitment to get as clean as they can, as fast as they can, while keeping reliability and affordability front and center as always,” EEI said in a written statement.
“EEI’s member companies operate in very diverse markets, and many pathways can lead to the same collective result. Our industry already has made significant progress in reducing carbon dioxide (CO2) emissions, and this impressive trend is expected to continue,” EEI added.
In the gas sector, the American Gas Association (AGA), which represents more than 200 local energy companies, noted that it “supports federal regulations that recognize the value and the role of natural gas in providing affordable and reliable energy while reducing emissions.”
“Natural gas will continue to be foundational in our energy landscape because it is abundant, affordable and delivered safely and reliably to homes, businesses, factories and power plants,” AGA President and CEO Karen Harbert said. “America’s natural gas utilities are committed to achieving our shared goal of reducing emissions while maintaining affordability, reliability and the quality of life that Americans enjoy.”
According to the EPA, by 2030 the ACE rule is projected to reduce CO2 emissions by 11 million short tons, sulfur dioxide emissions by 5,700 tons and nitrogen oxide emissions by 7,100 tons. The EPA also projects that ACE will lead to annual net benefits of $120 million to $730 million, including costs, domestic climate benefits and health co-benefits.
