The Environmental Protection Agency ("EPA") issued a new proposal differentiating the carbon pollution standards for new coal-fired and new natural gas-fired plants on September 20, 2013. While existing technology should generally allow new natural gas-fired plants to meet the emissions standards relatively easily, the stringent emissions levels in these new regulations may make it extremely difficult to construct a new coal-fired plant that does not include carbon capture
These final regulations mark the Obama administration meeting its first self-imposed deadline in its aggressive rulemaking agenda to address greenhouse gas emissions announced in June 2013.
The new rule will apply only to new fossil fuel-fired electric generating units. It will not apply to existing units, units undergoing modification, reconstructed units, or units that commenced construction prior to publication of the new proposed rule. For natural gas-fired stationary combustion turbines larger than 850 mmBtu/hr, the proposed standard is 1,000 pounds of CO2 per megawatt-hour ("lb CO2/MWh-gross"). For units smaller than 850 mmBtu/hr, the proposed standard is 1,100 lb CO2/MWh-gross. Depending on which standard best suits the unit, the proposed limits for fossil fuel-fired utility boilers and integrated gasification combined cycle are 1,100 lb CO2/MWh-gross over a 12-operating month period, or 1,000–1,050 lb CO2/MWh-gross over an 84-operating month (seven-year) period. The aim of the longer compliance period is to provide flexibility as carbon capture and storage use is phased in for each unit. The operator has the option to use some or all of the 84-operating month period to optimize the system. EPA is specifically seeking comments on what the standard should be within the proposed range The rules have been challenged on a Congressional level. Four hundred and ten current and former democrats sent a letter to President Obama citing "serious concerns" regarding the new standards and urging the President to balance investment in renewable energy resources with similar levels of investment in developing cleaner fossil fuel-generated energy. A proposed House Resolution would require EPA to hold additional "public listening sessions" in those states with the heaviest reliance on electricity generated by coal-powered power plants. The comment period for the proposed carbon pollution standards for new power plants will remain open for 60 days after publication in the Federal Register, which had not yet occurred as of EPA's October 17, 2013 website update. Comments submitted previously in response to the April 2012 rule will have no association with the new proposed rules and must reference docket ID: EPA-HQ-OAR-2013-0495. After the close of the comments period and after holding public hearings, EPA will likely move directly toward final analysis of its reasoning and conclusions on the rulemaking record, including the comments, scientific data, expert opinions, and facts accumulated during the pre-rule and proposed rule stages. If the rulemaking record contains persuasive new data, EPA may change aspects of the rule. If the changes are major, EPA will publish a supplemental proposed rule, but if the changes are minor or a logical outgrowth of the proposed rules, EPA will directly proceed with the final rule. Simultaneous to finalization of the current proposed rule for new power plants, the Obama administration aims to issue a proposed rule for existing power plants by June 1, 2014.
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