DWalker44/E+ via Getty Images
The leading U.S. electric utility trade association announced this week that it would participate in a lawsuit opposing the Biden administration’s new regulations aimed at reducing carbon emissions from pre-existing coal and new gas power plants.
The Edison Electric Institute expressed its agreement with the Environmental Protection Agency’s right to control greenhouse gas emissions from the power industry, yet its members disagree with the EPA’s stance that carbon capture and sequestration technology should be the “standard for compliance” with the regulation.
“CCS is a developing technology, and the EPA’s implementation schedules do not correspond with the present situation,” stated EEI President Dan Brouillette, emphasizing that no current coal or natural gas power plants meet the EPA’s CCS stipulations.
“Throughout the rulemaking procedure, we consistently voiced concerns that CCS is not fully prepared for comprehensive, industry-wide application, nor is there adequate time to authorize, fund, and construct the necessary infrastructure for compliance by 2032,” Brouillette mentioned.
The final power plant regulation released last month essentially mandates coal and new gas-fired plants to implement equipment in the upcoming decade to capture emissions before they are released into the atmosphere.
The EEI is aligning with Republican attorneys general from 27 states, the National Rural Electric Cooperative Association, and some of EEI’s independent members, including American Electric Power (AEP), Duke Energy (DUK), and Vistra (VST) in the litigation. The motion submitted in the D.C. Circuit is an initial move in a legal process that could span years.
A Politico analysis indicates that the regulation could expedite the downfall of the U.S. coal industry.
ETFs: (NYSEARCA:XLU), (ICLN), (QCLN), (PBW), (PBD), (ACES), (CNRG), (ERTH), (SMOG)