The following is an excerpt of an article published by the National Rural Electric Cooperative Association (NRECA) detailing proposed federal regulations and how each could impact electric cooperatives’ ability to provide reliable electricity to their members.
American families and businesses expect the lights to stay on at a cost they can afford. But that’s no longer a guarantee. Nine states saw rolling blackouts last December as the demand for electricity exceeded available supply. And new environmental rules will exacerbate the problem.
Ozone Transport Rule
The rule is aimed at reducing ozone-forming emissions of nitrogen oxides from power plants and industrial facilities that cross state boundaries. The final rule requires additional emissions controls by 2026 for electric utilities in 22 “upwind states” to help assure “downwind states” can meet the Environmental Protection Agency's (EPA) limits for ozone concentrations in ambient air.
Impact on Co-ops: Affected co-ops in covered states must install a selective catalytic reduction (SCR) system or take equivalent measures to reduce nitrogen oxide emissions in order to attain thresholds set by EPA-mandated state emissions budgets. Units that already have SCRs will need to optimize them starting in 2023.
Mercury and Air Rule
The rule is aimed at reducing mercury and particulate matter emissions from power plants. The proposed rule requires coal plants to install additional emissions controls to reduce emissions of these pollutants.
Impact on Co-ops: The proposal requires significant reductions in allowable emissions from facilities, which could require some plants to install expensive emissions technologies like baghouses (fabric filters).
Clean Air Act Section 111(b)
New Power Plant Greenhouse Gases Rule
The rule is aimed at reducing greenhouse gas emissions from covered coal and natural gas-fired power plants. It requires new, modified, and reconstructed natural gas units to have hydrogen capability or carbon capture and storage. Specific requirements depend on unit usage.
Impact on Co-ops: Co-ops seeking to build new natural gas units to provide baseload power need to co-fire hydrogen by 2032 or equip units with CCS (carbon capture and storage) by 2035. The proposal raises reliability concerns because of the uncertainty that these technologies will be ready when required by EPA. Many units may opt to curtail their production rather than hope the technologies become commercially viable in time.
Clean Air Act Section 111(d)
Existing Power Plant Greenhouse Gases Rule
The rule is aimed at reducing greenhouse gas emissions from existing coal- and natural gas-fired power plants. It is EPA’s latest attempt to stay within the legal limits of how the agency can limit greenhouse gas emissions from existing fossil fuel units. The Supreme Court ruled in 2022 that EPA is limited to measures that take place within the electric generating unit.
Impact on Co-ops: Coal units operating past 2040 must be able to meet 90% carbon capture and storage by 2030. Those retiring earlier face other requirements. Existing gas units that provide baseload power will need to co-fire hydrogen or meet CCS standards.
Regional Haze Rule
The rule is aimed at improving visibility in 156 national parks and wilderness areas. State plans for the second planning period covering 2018-2028 were due in July 2021. In August 2022, EPA issued a finding that 15 states failed to submit adequate implementation plans. EPA has two years from that finding to issue federal implementation plans for these states. More states may be included.
Impact on Co-ops: Co-ops in affected states may be required to install equipment and systems to reduce visibility-harming pollutants.
Read the full article, including four other proposed regulations and what they could mean for electric co-ops, as well as what NRECA is doing in terms of advocacy and next steps concerning all nine of the regulations, in Nine Regulations Threatening Reliability - America's Electric Cooperatives.
