The Environmental Protection Agency (EPA) has proposed rule changes designed to substantially reduce greenhouse gas (GHG) emissions from natural gas and coal-fired power plants.
The updates would strengthen the New Source Performance Standards (NSPS) for newly built gas-fired combustion turbines, and establish guidelines to curb carbon dioxide (CO2) emissions from existing coal and gas-fired steam-generating units.
The proposal also would cap emissions from large, frequently used existing fossil fuel-fired stationary combustion turbines, which generally are natural gas-fired.
“The proposed standards are based on technologies such as carbon capture and sequestration/storage (CCS), low-GHG hydrogen co-firing, and natural gas co-firing, which can be applied directly to power plants that use fossil fuels to generate electricity,” EPA said.
The proposed limits and guidelines would require “ambitious reductions in carbon pollution based on proven and cost-effective control technologies that can be applied directly to power plants,” according to regulators. “They also provide owners and operators of power plants with ample lead time and substantial compliance flexibilities, allowing power companies and grid operators to make sound long-term planning and investment decisions, and supporting the power sector’s ability to continue delivering reliable and affordable electricity.”
When Do Power Plants Need to Comply?
The compliance dates would depend on the category of power plant in question, and the decarbonization route pursued.
“Starting in 2030, the proposals would generally require more CO2 emissions control at fossil fuel-fired power plants that operate more frequently and for more years and would phase in increasingly stringent CO2 requirements over time,” EPA stated in a fact sheet on the proposal. “The proposed requirements vary by the type of unit (new or existing, combustion turbine or utility boiler, coal-fired or natural gas-fired), how frequently it operates (base load, intermediate load, or low load peaking) and its operating horizon (i.e., planned operation after certain future dates).”
For example, affected facilities in the base load category that follow the CCS pathway would be required to capture 90% of emissions by 2035. Those pursuing the hydrogen route would need to begin co-firing 30% low-GHG hydrogen in their combustion mix by 2032, ramping up to 96% by 2038.
The agency highlighted that the power sector was the largest stationary source of greenhouse gas (GHG) emissions in 2021, accounting for 25% of overall domestic emissions.
Readily Available Technologies
“By proposing new standards for fossil fuel-fired power plants, EPA is delivering on its mission to reduce harmful pollution that threatens people’s health and wellbeing,” said EPA Administrator Michael S. Regan. “EPA’s proposal relies on proven, readily available technologies to limit carbon pollution and seizes the momentum already underway in the power sector to move toward a cleaner future. Alongside historic investment taking place across America in clean energy manufacturing and deployment, these proposals will help deliver tremendous benefits to the American people—cutting climate pollution and other harmful pollutants, protecting people’s health, and driving American innovation.”
According to EPA, “power companies can implement the standards with a negligible impact on electricity prices, well within the range of historical fluctuations.”
States would be required to submit compliance plans for the new guidelines within two years of the rules taking effect.
The proposals to limit CO2 from the existing coal fleet and new natural gas plants would cut an estimated 617 million metric tons of CO2 through 2042 along with “tens of thousands of tons” of harmful air pollutants, according to the agency.
Separately, the proposed requirements for existing gas-fired combustion turbines and a strengthening of NSPS for power plants would drive an estimated cumulative reduction of 214-407 million metric tons of CO2 by 2042, EPA said.
“President Biden’s policy agenda has already kicked off a clean energy and manufacturing boom across the country and is adding momentum for technologies like carbon capture and storage (CCS) and clean hydrogen,” EPA said. “Today, thanks to this progress, the power sector has a broad set of tools to deploy clean, affordable energy, take advantage of ready-to-go advanced pollution reduction technologies, create and retain good-paying union jobs, and reduce energy costs for families and businesses.”
The public comment period for the proposal will last 60 days after its publication in the Federal Register.
Industry Reacts
Initial reactions to the proposal from energy sector stakeholders was mixed.
“Today’s proposed rules elevate the role of carbon capture by naming it as one of the available technologies for reaching emissions standards for new and existing fossil fuel-fired power plants,” said the Carbon Capture Coalition’s Jessie Stolark, executive director. “In addition to reducing carbon dioxide emissions, the deployment of carbon capture technologies at power plants may result in further reduction of conventional air pollutant emissions which are regulated by the EPA and recognized as harmful to human health.
“Our members agree that deploying carbon capture technologies in the power sector is absolutely critical to reduce emissions, provide affordable, reliable baseload power in a deeply decarbonized energy grid, as well as meet climate objectives.”
NET Power LLC, a clean energy company focused on decarbonizing gas-fired generation, offered praise as well.
“Today’s proposed EPA rules make clear that the agency is focused on achieving a low-carbon power future,” the company said. “As mentioned in the proposed rule, NET Power’s proven near-zero emission technology inherently captures carbon and emits no particulates, such as sulfur dioxide and nitrogen oxide.
“We look forward to working with local, state and federal agencies, including the EPA, to decarbonize the U.S. electricity grid with an unwavering commitment to deliver the energy trifecta: clean, reliable and low-cost power.”
The American Exploration and Production Council’s CEO Anne Bradbury was less enthusiastic.
“The primary reason that Americans have affordable and reliable electricity, and the US leads the world in emissions reductions is because of the role that natural gas plays in our power sector,” said Bradbury. “While we are still digesting the details and impacts of EPA’s proposal, we have concerns about any rule that relies on unproven and uneconomical technologies in an effort to diminish the critical role that natural gas plays in providing clean, affordable, and reliable energy to every American family and business.”
