Senate Republicans propose EPA CO2 plan rollback

OREANDA-NEWS. May 14, 2015. US Senate Republicans today introduced a bill to kill the Environmental Protection Agency's (EPA) proposals to limit greenhouse gas emissions from the power sector.

The Affordable Reliable Electricity Now Act (ARENA), introduced by senator Shelley Moore Capito (R-West Virginia), brings together provisions from previous legislation to block the EPA regulations and includes new proposals, focusing largely on the proposed Clean Power Plan for existing power plants.

The bill would give state governors the authority to opt-out of the Clean Power Plan if they determine that complying would harm their state's ratepayers or over grid reliability concerns alone. It would also extend compliance deadlines through the conclusion of judicial review of the EPA regulation, borrowing from a bill introduced by representative Ed Whitfield (R-Kentucky) last month.

"States know best," Capito said. "The Clean Power Plan is basically the federal government setting a one-size-fits-all standard for every state, and this bill gives the states the voice they need that they do not have."

The Clean Power Plan would require each state to meet a CO2 emissions rate target by 2030, with interim targets for 2020-29. The proposal would require states to submit plans for meeting the targets by the end of June 2016. EPA plans to finalize the regulations this summer.

The bill would restrict EPA from setting a single emission standard for new and modified power plants fueled by coal and natural gas, while requiring the agency to set a separate standard for power plants that burn coal with an average heat rate below 8,300 BTU/lb, a provision from a bill introduced by senator John Barrasso (R-Wyoming) last year. EPA has proposed a CO2 limit of 1,100lb/MWh for new coal-fired plants and 1,000-1,100lb/MWh for new gas-fired units.

Among the new ideas, the bill would requires EPA to draft individual model plans for each state to demonstrate the costs associated with the Clean Power Plan, the bill's sponsors said.

The bill is co-sponsored by 26 Republicans and one Democrat, senator Joe Manchin of West Virginia.

While the bill is unlikely to gain much Democratic support, Manchin said there may be potential votes if the bill is amended to help the US Department of Energy's research and development programs for coal generation and carbon capture and sequestration.

"The bottom line is that you will have some Democrats that will co-sponsor," he said.

The bill is likely to be vetoed by President Barack Obama if it makes it through Congress.

Environmental groups said the bill would make regulation of greenhouse gases from power plants impossible.

"This bill is a big polluters' wish list, designed to kill the first-ever plan to limit carbon pollution from our power plants," National Resources Defense Council climate and clean air program director David Doniger said.