Groups criticize EPA rulemaking on greenhouse gas emissions

The Environmental Protection Agency’s proposed rulemaking on greenhouse gas emissions from power plants has received broad feedback from those impacted by the proposal. The extended comment period closed on August 8, 2023, and several Indiana-based entities submitted feedback on the proposal.

The State of Indiana, represented by the Utility Regulatory Commission, Department of Environmental Management, and the Office of the Utility Consumer Counselor, raised several concerns. They emphasized the complexity of adopting state rules, suggesting an extension for the State Plan submission deadline. They seek clarity on which changes in the State Plan would require EPA's approval.

They also expressed reservations about the feasibility of the Remaining Useful Life and Other Factors (RULOF) provision, especially concerning carbon capture and sequestration/storage (CCS) units. The proposed co-firing with 40% natural gas by 2030 for certain coal steam units was questioned for its efficiency and environmental impact. The state also highlighted potential safety and infrastructure challenges with introducing hydrogen into natural gas pipelines. Lastly, the state underscored the importance of balancing environmental goals with the reliability and affordability of the electric generation system, while also pointing out the regulatory timelines in place for new generation facilities.

The Indiana Energy Association (IEA) and Indiana Utility Group (IUG) also voiced concerns to the EPA regarding its proposed rule. They argue that the proposal diverges from the Clean Air Act's framework, relying heavily on assumptions rather than concrete air quality data. The groups highlight technical challenges, emphasizing that the EPA's timelines don't align with the current pace of technology development, such as green hydrogen and carbon capture. They also stress potential threats to the electric grid's reliability and affordability, particularly for low-income communities. The IEA and IUG urge the EPA to recalibrate the proposal to better balance environmental goals with grid reliability and consumer affordability.

The Attorneys General of several states including Indiana, similarly shared feedback opposing the rulemaking. The states argue that the proposed rule would significantly impact the nation's energy generation mix. They emphasize that coal and natural gas power plants provide a significant portion of America's electricity. The states contend that the EPA's proposed rule relies on inadequately demonstrated technologies, such as carbon capture and sequestration, and high levels of co-firing. They also challenge the EPA's authority to regulate how hydrogen is procured for co-firing and argue that the rule unlawfully restructures the current mix of electricity generation. The states urge the EPA to withdraw the proposed rule due to these concerns.

MISO, a regional transmission organization, underscores the criticality of grid reliability in its comments to the EPA. They express deep concerns about the potential adverse effects of the proposed rule on grid stability, especially when combined with other recent EPA regulations. The organization believes these combined regulations could hasten the retirement of vital generation units, jeopardizing grid reliability. MISO's stance is that while the transition to cleaner energy sources is essential, it's crucial to ensure that the grid remains reliable during this transition. They advocate for a balanced approach, emphasizing the need for flexibility in the rule to both maintain grid stability and advance decarbonization objectives. MISO also highlights the importance of considering the cumulative impacts of regulations and basing standards on current technological and economic feasibilities.

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