For more information: Kay LaCoe – Vice President of Marketing & Communications O: 701.355.2194 | C: 701.400.6757 kay.lacoe@lignite.com FOR IMMEDIATE […]
June 2014 – The Environmental Protection Agency (EPA) proposed the Clean Power Plan (CPP), calling for carbon dioxide (CO2) emissions reductions from existing power plants by 2030.
August 2015 – The EPA finalized CPP using the same timeline but increased overall CO2 reductions.
National target CO2 reduction increased from 30% as proposed to 32% in the final rule.
ND’s target CO2 reduction increased from 11% as proposed to 45% in the final rule.
States given until September 2016 to submit initial State Implementation Plan (SIP)
What does the CPP mean for North Dakota?
A 45% reduction in CO2 emissions could result in shutting down some coal-fired generation and replacing it with other non-emitting generation resources to fully comply.
Retiring power plants means associated coal mines will also likely close.
In 2014, the ND lignite industry accounted for over $3 billion in total economic activity.
Decreased tax revenue will impact the state and local communities.
The CPP fails to recognize the role and value of efficient, reliable and affordable baseload power generationutilized in North Dakota and exported across the region.
Baseload power would likely be replaced with intermittent, renewable sources, impacting grid management,
performance, reliability and the operation of wholesale electric markets.
Is there a solution?
Legal Action
North Dakota has filed a lawsuit because the final rule quadrupled our emissions goal, we export much of the
power we produce, and lignite is unique.
Lawsuits can take years to conclude, and a stay from the courts could mean the rule wouldn’t go into effect.
North Dakota State Implementation Plan
Should be reasonable, and achievable, without sacrificing existing coal generation, impacting reliability, and
resulting in economic harm.
Should be as flexible as possible, not focusing on the interim goals, to give the state through 2030 to work
towards CO2 goals.
Should recognize constraints, and allow for appropriate time to develop technology and infrastructure to
meet the rule.
Should account for load growth in North Dakota – need to keep existing plants in operation, as well as
facilitate new generation to provide for the growing power needs of the state.
Technology
The industry has invested over $2 billion in the last two decades to reduce emissions of pollutants.
North Dakota is one of only 7 states that meet all federal national ambient air quality standards.
The lignite industry continues to invest millions of dollars into research and development of carbon capture
technology, but EPA’s mandated timeline doesn’t allow time for development.
The final rule needs to be reconciled with efforts to deploy CO2 capture, utilization and sequestration
technologies, not freeze future investments for these technologies.