Michigan to create CO2 rule compliance plan

OREANDA-NEWS. September 04, 2015. Michigan says it will develop its own compliance plan for federal CO2 standards for the power sector in order to ensure state "retains control" of its energy policy, governor Rick Snyder (R) said today.

Creating its own plan is the best way for the state to protect its interests and address key priorities such as maintaining a reliable and affordable energy system, Snyder said.

"We need to seize the opportunity to make Michigan's energy decisions in Lansing, not leave them in the hands of bureaucrats in Washington, DC," he said.

While not fully satisfied with the final version of the Clean Power Plan, state energy officials said they were pleased with some of the changes that the US Environmental Protection Agency (EPA) included, such as allowing more time for compliance and recognizing some of the progress Michigan has made in reducing emissions from its power sector.

States have until September 2018 at the latest to submit compliance plans to EPA or they may be subject to a federal plan enforced by the agency. EPA has proposed using emissions trading for the federal plan.

The decision from Snyder comes as state attorney general Bill Schuette (R) is participating in legal efforts to overturn the regulations. Schuette is one of 15 state attorneys general that have asked the DC Circuit Court of Appeals to issue an emergency stay of the Clean Power Plan while it hears legal challenges. The Snyder administration does not intend to join the lawsuit.

"The attorney general is pursuing that case in its individual capacity," Michigan Agency for Energy executive director Valerie Brader said.

The Clean Power Plan requires Michigan to either reduce its power sector CO2 rate to 1,169lb/MWh by 2030, compared with a rate of 1,928lb/MWh in 2012, or cap emissions at 47.5mn short tons. The state power sector emissions totaled 69.9mn st in 2012 and EPA estimates it will cut emissions to 54.8mn st in 2020 even in the absence of the Clean Power Plan.

That state has a 10pc by 2015 renewable energy mandate that some lawmakers want increased to 20pc by 2022. Earlier this year, Snyder outlined an energy strategy that called for energy efficiency and renewables combined to account for 30-40pc of the state's power by 2025, up from about 16pc at the start of the year.

The energy agency said it would begin a stakeholder process to develop the plan by the end of the year, with more details to be announced soon.