Please note that this is a technical evaluation of current federal regulations. On June 19, 2019, the US EPA issued the final Affordable Clean Energy (ACE) rule replacing and repealing the Obama administration’s Clean Power Plan (CPP). ACE establishes emission guidelines for states to use when developing plans to limit carbon dioxide (CO2) at their coal-fired electric generating units (EGUs). ACE will allow states to set emissions standards for coal-fired plants. CPP, in effect since 2015, developed national standards to address CO2 emissions from power plants, allowing for a transition to cleaner sources of energy by 2030. The US EPA then projected that CPP would result in $26 billion to $45 billion net climate and health benefits, including the avoidance of 300,000 missed work-days and school-days, 90,000 asthma attacks, 1,700 heart attacks, and 3,600 premature deaths annually.

Instead, the new rule, ACE, will relieve the power industry of meeting these emission standards. This will, in particular, benefit the coal industry. ACE will likely face court challenges from several states, as well as environmental groups who see the repeal of CPP and adoption of ACE as steps backward from fighting to reduce greenhouse gas emissions, an accepted Clean Air Act pollutant. Shortly after adoption of the new rule, several state attorneys general signaled their intent to sue the US EPA over ACE.

ACE establishes that efficiency improvement of an electric generating unit is an acceptable approach for emissions reduction of CO2, giving coal-fired plants more options to reduce carbon intensity. The US EPA would consider technical feasibility, cost, non-air quality health and environmental impacts, and energy requirements in determining the most appropriate ways to reduce CO2 emissions. States will establish unit-specific “standards of performance” that reflect the emission limitation achievable through application of improving efficiency. ACE believes that the US EPA’s role is to be a technical advisor of potential strategies to minimize greenhouse gas emissions. The states’ role is to develop plans that establish unit-specific standards of performance that reflect application of best efforts to control emissions, taking into consideration, among other matters, the remaining life of the electric-generating unit. States must submit plans to the US EPA that establish their standards of performance and include measures that provide for the implementation and enforcement of such standards, due in three years. Therefore, states do not have to have any standards currently (CPP has been repealed) and by the time a plan is approved, it can be much longer.

CCES has the experts to provide technical advice on federal, state and local energy and environmental regulations so that you better understand how they impact you. Contact us today at 914-584-6720 or at karell@CCESworld.com.