EPA’s new pollution limits on coal-fired power plants will impact grid reliability, experts say

The newly finalized package of rules released today by the U.S. Environmental Protection Agency (EPA) limiting coal-fired power plant emissions could further strain grid reliability in the United States, say stakeholders.

“EPA’s suite of new regulations will affect the generation sources that will be used to reliably power America’s increasingly electricity-dependent economy,” said Dan Brouillette, president and CEO of the Edison Electric Institute (EEI), which represents the nation’s investor-owned electric companies.

“We remain concerned that EPA’s final rule fails to properly consider grid reliability and the need for new natural gas plants to maintain that reliability,” said Dustin Meyer, senior vice president of policy, economics and regulatory affairs for the American Petroleum Institute (API), which represents all segments of America’s natural gas and oil industry.

“We hear rhetoric from regulators and policymakers about their commitment to reliability, but rulemaking is where the rubber meets the road,” said Todd Snitchler, president and CEO of the Electric Power Supply Association (EPSA), which represents America’s competitive power suppliers.

Specifically, the EPA’s package of rules includes a final rule that directs existing coal-fired and new natural gas-fired power plants to reduce 90 percent of their greenhouse pollution by 2039.

The EPA also imposed three additional regulations on coal-burning power plants: stricter limits on their emissions of mercury; tighter restrictions on their seepage of toxic ash into water supplies; and reductions in their pollutants discharged through wastewater by more than 660 million pounds per year.

Rather than setting these new rules, said API’s Meyer, the Biden administration should instead be focused on removing barriers to building new generation capacity and fixing the nation’s broken permitting process to allow for the development of critical infrastructure — including carbon capture and storage (CCS) and hydrogen technologies.

Brouillette agreed, saying that while EEI appreciates and supports EPA’s work to develop a clear path for the transition to cleaner resources, “we are disappointed that the agency did not address the concerns we raised about CCS.”

CCS is not yet ready for full-scale, economy-wide deployment, nor is there sufficient time to permit, finance, and build the CCS infrastructure needed for compliance by 2032, he said. 

“While CCS and other 24/7 clean energy technologies could be important tools for reducing emissions in the future,” added Brouillette, “EPA’s record does not support a finding that CCS is demonstrated today.”

EPSA also pointed out that the EPA’s rule setting “onerous emissions limits” on new power plants will place significant restrictions on new natural gas power plants at a time when reliability experts — including the Federal Energy Regulatory Commission, the North American Electric Reliability Corporation, and nearly all of the grid operators — are flashing warning signs about the loss of dispatchable capacity during a time of surging electric demand.

And while the final rules reflect adjustments to the initial EPA proposal, including exempting existing natural gas plants, EPSA’s Snitchler says the package relies on unavailable technology and will stymie much needed investment in new, more efficient, and cleaner power resources as older units retire.

“While EPSA welcomed the EPA’s announcement that it had removed existing gas plants from its proposed emissions regulations, the final rule released today is still a painful example of aspirational policy outpacing physical and operational realities,” said Snitchler.

“The almost certain result will be higher prices, diminished reliability, and even increased emissions, by stymying investment in new, highly efficient natural gas facilities to displace older, higher emitting, and/or more expensive resources,” he said.

When developing future rulemakings, EPSA also urged the EPA to engage with the actual owners and operators of those plants — including EPSA member companies — in order to understand and appreciate why the Best System of Emissions Reduction in the rule “is unrealistic and unachievable,” added Snitchler.

Likewise, API’s Meyer pointed to the need for policies that harness all of America’s resources, including natural gas and renewables, to power the future economy and help ensure energy is affordable. 

EEI’s Brouillette added that electric companies across the country are investing in carbon-free technologies to ensure they satisfy industry performance requirements and support reliability at costs that are affordable for customers.

“Affordable, reliable, and resilient clean energy is essential for America’s economic security, and we appreciate EPA’s efforts to include additional compliance flexibilities that will help EEI’s members address reliability concerns in the years ahead,” said Brouillettee, noting that EEI will remain engaged with the EPA and state agencies as they implement the new regulation. 

“We also will continue to work constructively with EPA as it develops a new proposal for existing natural gas turbines,” he said.