Future Looks Bright for New Coal Plants

Given the recent media attention on last week’s Utah ruling, you might be confused about the future of coal in America. If you have no idea what I’m talking about, here’s the skinny:

Responding to a lawsuit filed by the Sierra Club over plans to construct a new power plant in Utah, the Environmental Appeals Board (EAB) has ordered the Environmental Protection Agency (EPA) to reconsider whether to require carbon dioxide (CO2) best-available control technology (BACT) limits on new power plants.

However, in its ruling, the EAB did not hold that CO2 must be subject to regulation.

So what’s this all mean?   

First, it means that new power plants will still be able to receive permits for construction, which is critical to meeting America’s growing energy demand and adhering to more stringent emissions standards.

The Utah decision also underscores how difficult it is to site new electric generators these days, due in large part to the uncertainty about how to regulate greenhouse gas emissions. Accordingly, the EAB expressed a clear preference that CO2 regulation should be addressed via nationwide legislation rather than in the context of permit proceedings for individual facilities (on a case by case basis).

We supported mandatory federal carbon management legislation that protects U.S. energy security, promotes the creation of jobs and keeps energy costs affordable for Americans.

Another thing to remember is that the Utah decision came into play only because it was proposed on federal/tribal land. Most other plants require approval from state environmental permitting agencies, not the U.S. EPA. As a result, this decision does not affect most of the plants currently in the permitting phase.

 Stay tuned to Behind the Plug for more updates.