Biden's prom day for the planet

Your guide to the political forces shaping the energy transformation
May 11, 2023 View in browser
 
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By Jean Chemnick and Arianna Skibell

Environmental Protection Agency Administrator Michael Regan speaks

EPA Administrator Michael Regan speaks about new proposed limits on greenhouse gas emissions from coal- and gas-fired power plants. | AP Photo/Nathan Howard

The Biden administration finally rolled out its much-awaited greenhouse gas limits for power plants today, at an event one attendee called the “Clean Air Act prom.”

The endlessly awaited draft rule is a big deal: It would set the strictest power plant standards in U.S. history. Its reduction requirements are tougher even than the Obama administration’s signature Clean Power Plan, which received a posthumous blow from the Supreme Court last year.

This time, EPA says its new standards stay within the lines of the high court’s interpretation of the Clean Air Act. Instead of trying to cut pollution across the power sector by reducing coal’s market share in favor of renewables like wind and solar, it sets limits on carbon emissions from individual plants. They’re strict enough that many fossil fuel plants would either need to install devices to capture their carbon pollution or shut down by 2040.

The catch(es): The rule comes with sizable exceptions, however.

All coal plants, and large natural gas plants that run most of the time, would have to capture 90 percent of their emissions. But those requirements wouldn’t take effect until the 2030s. Neither would an alternative pathway in which gas-burning plants could comply by adding high levels of so-called green hydrogen to their fuel mix.

The rule’s unusually long lead time risks missing President Joe Biden’s commitment of an 80 percent clean energy grid in 2030, and a zero-carbon one five years later. EPA estimates relatively few annual cuts in planet-warming pollution until 2030 — and then steep reductions until 2040.

The rule also applies lighter requirements for coal plants that retire before 2040. And it effectively exempts the thousand-plus gas plants that run at 20 percent or less of capacity — providing power during periods of peak demand — though EPA is exploring a future rule for them.

EPA Administrator Michael Regan promised today that the regulations would benefit communities of color who suffer disproportionately from air pollution. But some advocates say the carve-out for intermittent “peaker” gas plants could mean marginalized communities remain stuck with hazardous air pollution.

“A much higher percentage of the population is impacted by peaker plants than by baseload [plants], and they’re going to continue to be impacted because these rules are not going to do anything for their emissions,” said Shelley Robbins, project director at the Clean Energy Group.

Many environmental justice groups also worry that carbon capture and hydrogen will throw fossil fuels plants a lifeline.

Legal outlook: Republican attorneys general already plan to sue over the rule, arguing that EPA’s objective is to undermine coal — and the grid reliability that comes with steady fossil fuel power.

“This rule appears to utterly fly in the face of the rule of law,” West Virginia Attorney General Patrick Morrisey said in a statement this morning.

Last year, Morrisey led the states whose litigation successfully buried the Clean Power Plan. Today, he said, “we expect that we would once again prevail in court against this out-of-control agency.”

 

It's Thursday — thank you for tuning in to POLITICO's Power Switch. I'm your host, Arianna Skibell. Power Switch is brought to you by the journalists behind E&E News and POLITICO Energy. Send your tips, comments, questions to askibell@eenews.net.

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Today in POLITICO Energy’s podcast: Josh Siegel breaks down the complicated politics behind Biden’s new rule to curb climate pollution from power plants.

The Manchin Show: Climate rule

Sen. Joe Manchin (D-W.Va.) arrives for a vote at the U.S. Capitol on Wednesday.

Sen. Joe Manchin (D-W.Va.) arrives for a vote at the Capitol on Wednesday. | Francis Chung/POLITICO

Hitting close to home — When Sen. Joe Manchin upbraided EPA on Wednesday for requiring power plants to reduce their carbon emissions, he didn’t mention that the agency’s rules could threaten his personal income, writes Scott Waldman.

The rule's risk to one plant, in particular, could jeopardize a lucrative source of money for the West Virginia Democrat.

His family business, Enersystems Inc., delivers waste coal to the Grant Town power plant, a financially struggling coal facility near Manchin’s hometown that he has spent much of his political career protecting.

 

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Power Centers

A large tanker is pushed by smaller ships toward Cheniere Energy Inc.'s Corpus Christi LNG export facility in Texas.

Cheniere Energy Inc. exports liquefied natural gas via its Corpus Christi facility (pictured) in Texas and its Sabine Pass facility in Louisiana. | Business Wire

Export rich
The United States sent more liquefied natural gas overseas last year than ever before — and energy companies want the total to keep climbing, writes Miranda Willson.

But that has led to an escalation of debates over how federal regulators should review new projects, with some lawmakers advocating for quicker approvals of terminals and climate hawks calling federal assessments of greenhouse gas emissions inadequate.

Made in Europe
French President Emmanuel Macron plans to propose new financial incentives for drivers to buy electric cars and trucks made in Europe, write Giorgio Leali and Joshua Posaner.

The new measures will be included in an upcoming "green industry bill" and mark Macron's first concrete step toward rebutting the U.S.'s "Buy American" subsidies.

In Other News

Perspective: Biden's power plant crackdown shows his 2035 grid goals may be out of grasp.

Impacts: Extreme heat will take an unequal toll on tribal jails.

 

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New Mexico Gov. Michelle Lujan Grisham (D) speaks in Santa Ana Pueblo, N.M.

New Mexico Gov. Michelle Lujan Grisham (D) is accused in a lawsuit of failing to uphold the constitutional right to a healthy environment. | Susan Montoya Bryan/AP Photo

A coalition of environmental groups, Indigenous people and youth climate activists filed a landmark lawsuit against New Mexico for failing to curb oil and gas pollution.

California officials are reasserting their right to protect state-owned beaches as rising oceans shift the line between public and private land — a move likely to increase tensions with coastal homeowners.

Energy Department researchers are teaming up with Idaho Power to explore whether excess electricity from existing hydropower plants can produce hydrogen.

That's it for today, folks! Thanks for reading.

 

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