FOR IMMEDIATE RELEASE
Contact: Stuart C. Ross
914-649-5037 cell
[email protected]
CLEAN AIR TASK FORCE RELEASES PLAN TO ACHIEVE
SIGNIFICANT REDUCTIONS IN CARBON POLLUTION FROM
EXISTING POWER PLANTS AT AFFORDABLE COST
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“POWER SWITCH” REPORT PRESENTED TO
ENVIRONMENTAL PROTECTION AGENCY TO AID IN
DRAFTING CARBON POLLUTION RULE FOR POWER
PLANTS
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“EFFECTIVE, AFFORDABLE APPROACH” TAKES
ADVANTAGE OF UNDERUTILIZED NATURAL GAS PLANTS
TO DISPLACE HIGHEST-EMITTING COAL PLANTS VIA A
MODEL INTERSTATE CREDIT TRADING RULE
WASHINGTON, February 27, 2014 – Significant reductions in greenhouse gas
emissions from existing fossil-fueled power plants can be effectively and affordably
achieved through EPA performance standards and guidelines, issued by EPA under
Clean Air Act section 111(d), that result in displacement of power generation from
the highest-emitting coal-fired power plants by generation from under-utilized,
efficient natural gas plants, at minimal cost. That’s the lead finding of a new study
from Clean Air Task Force, offered as a viable way forward as the U.S.
Environmental Protection Agency (EPA) drafts its carbon pollution rule for existing
power plants under the Clean Air Act as the linchpin of President Obama’s Climate
Action Plan.
The report, which is being presented to EPA as it works to meet its June 2014
deadline for an existing power plants draft rule, was authored by Conrad Schneider,
Advocacy Director for CATF based on economic modeling analysis prepared by The
NorthBridge Group.
“What we’ve learned from this analysis,” said Schneider, “is that the U.S. can achieve
significant CO2 emissions reductions from the fleet of existing fossil-fueled power
plants at minimal cost simply by taking greater advantage of currently underutilized
natural gas plants to displace power from the highest-emitting coal plants. We
recommend that EPA tap this potential by issuing carbon pollution standards and
offer states a model emission credit trading rule to facilitate implementation. The
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NorthBridge Group analysis shows that our proposed policy could cut power plant
carbon pollution by 27 percent from 2005 levels by 2020 while holding increases in
electric rates to 2 percent. These findings counter claims by opponents that cutting
carbon pollution must be expensive and disruptive,” Schneider said.
“We encourage EPA to take a close look at our recommendations, because we see
this plan as providing a feasible, legally-defensible pathway to reduce emissions from
existing plants as part of a strategy to help the Administration to its overall
greenhouse gas emissions reduction target of 17% from 2005 levels by 2020,”
Schneider added.
The report recommends that EPA:
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Set separate emission rate standards for fossil-fueled utility boilers at 1,450 lbs
CO2/MWh and natural gas combustion turbines at 1,100 lbs CO2/MWh; and
Facilitate least-cost implementation for states by issuing a model interstate
emission credit trading rule with the opportunity to use the free allocation of
allowances to protect electric retail ratepayers of all classes.
When put in place, these strategies will protect system reliability, grid stability and
fuel diversity by relying on proven, existing fossil electric units that are already in
operation and available today.
“If EPA follows these recommendations, we can expect meaningful emissions
reductions at minimal costs” said Bruce Phillips, Director, The NorthBridge Group.
“We’ve done the math, and the results are enormously encouraging. Our calculations
suggest the following:
• “By 2020, we will see a decrease of 27%, or 636 million metric tons of CO2,
from 2005 levels;
• “By reducing coal consumption in favor of natural gas utilization, this plan
will reduce sulfur dioxide (SO2) emissions and nitrogen oxides (NOx)
emissions by over 400,000 tons each in 2020 resulting in over 2,000 avoided
premature deaths and 15,000 asthma attacks annually;
• “An increase in average nationwide retail electric rates of only 2% in 2020
which, based on Energy Information Administration forecasts, should result in
no net increase in monthly bills;
• “Monetized health and climate benefits of $34 billion, which is over three
times the cost of compliance.”
How it would work
Central to the application of an existing plants rule, under this proposed regimen, is
the establishment of an emission budget-based “model” interstate emission credit
trading rule by EPA that can easily be implemented by the states. The rule would
facilitate states participating in cost-saving emissions credit trading and allow states
to mitigate retail electric rate impacts through free allowance allocations. The rule
would also allow states to compensate merchant coal generators for losses in asset
value that may occur as a result of the program. The net result of this system,
NorthBridge found, would be to create incentives for operators to shift generation to
existing under-utilized natural gas units and reduce reliance on the highest-emitting
coal units.
“Our analysis shows that by 2020, almost 70 percent of the emissions reductions
under this approach will be achieved through changes in fossil dispatch,” said
Schneider. “Combined with heat rate improvements, some older coal plant
retirements and demand reduction, we will see a remarkable decrease in CO2
emissions from the power sector simply by optimizing the existing fossil electric
system to use the most efficient power plants first.”
The way forward
“We recognize that our plan is only a first step in reaching the Administration’s longterm goal of an 80% reduction in greenhouse gas emissions across all sectors by
2050. By that date, every remaining fossil fuel power plant – coal or natural gas -must have carbon capture and storage technology. So in future years, EPA must
ratchet down the 1,450 and 1,100 limits on emissions, consistent with its proposed
performance standards for new fossil power plants, and broaden its emission trading
programs.”
“We think our common-sense approach for existing power plants is a responsible
first step in that direction, and we strongly recommend that EPA adopt it or a similar
approach to begin to reduce greenhouse gas emissions, and give the planet a bit of
breathing room.”
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Clean Air Task Force is a nonprofit environmental organization with offices across
the U.S. and in China. CATF works to help safeguard against the worst impacts of
climate change by catalyzing the rapid global development and deployment of low
carbon energy and other climate-protecting technologies through research and
analysis, public advocacy leadership, and partnership with the private sector. For
more information, please visit www.catf.us.