There is debate about whether the agency will rely on carbon capture to achieve emissions reductions
CLIMATEWIRE | It has been seven years since EPA finalized a rule requiring new coal-fired power plants to capture and store a share of their carbon emissions. Despite litigation and a proposed repeal by the Trump administration, it is still in place.
Jeff Holmstead, a partner at Bracewell LLC, said that EPA might have released the white paper to signal to industry that it would eventually promulgate a rule requiring steeper carbon cuts through a technology like CCUS, which is currently a focus of Energy Department research and development. DOE received more than $2.5 billion for a CCUS demonstration program in the infrastructure law last year. The spending will support at least two pilot projects at natural gas generators.
A proposal is expected later this year with a final rule due in 2023. Unlike EPA’s draft rule for existing power plants — also expected this year — the new source standard triggers compliance requirements upon proposal. A standard based on efficiency improvements might be significantly more stringent for gas than the Obama-era rule, he said, but if it paves the way for gas to remain a large share of U.S. generation for decades to come, it could undermine net-zero objectives.“It’s less of an issue in competitive markets where the risk of a new build is on the natural gas plant, and if there are cheaper alternatives the utility that built that plant bears the risk of early retirement,” said O’Boyle.
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