On Wednesday, the Environmental Protection Agency (EPA) Administrator Andrew Wheeler signed the Affordable Clean Energy (ACE) Rule at a press event flanked by Department of Energy Secretary Rick Perry and Department of the Interior Secretary David Bernhardt, along with many congressional members and coal miners. The ACE Rule replaces the costly one-size-fits-all emissions regulations, known as the Clean Power Plan (CPP), for coal power plants issued by the previous administration.
The ACE rule establishes emission guidelines for states to use when developing plans to limit carbon dioxide (CO2) at their coal-fired electric generating units (EGUs). In the notice, the EPA also repealed the CPP and issued new implementing regulations for ACE and future rules under section 111(d). The previous rules unfairly targeted North Dakota and required a 45 percent reduction in the state’s carbon dioxide (CO2) emissions, well above the national average of 32 percent. The replacement rule gives states more leeway in deciding whether to require plants to make limited efficiency upgrades.
Wheeler said that the new rule is a sign that “fossil fuels will continue to be an important part of the mix” in the U.S. energy supply and that coal is essential to the reliability of the nation’s power grid. The rule will go into effect shortly after publication in the Federal Register.
Lignite Energy Council President and CEO Jason Bohrer released the following statement, “The Affordable Clean Energy Rule returns the EPA to a lawful framework for regulation of power plant emissions. The Clean Air Act created a system of shared authority by EPA and the states, and the ACE Rule appropriately reflects that relationship. Under ACE, states will again have primacy over regulating CO2 from power plants. The federal one-size-fits-all model, which characterized the Clean Power Plan, will be replaced by 50 state-specific plans. This will be good for North Dakota’s economy and our industry while reducing emissions. The ACE Rule replaces the Clean Power Plan, which was viewed by many as an illegal attempt to impose a political agenda on the country’s power system, and was stayed by the U.S. Supreme Court. The CPP would have had dire consequences for North Dakota’s lignite industry. Studies showed that that about half of the state’s power plants would have been retired under the draconian regulation that called for a 45 percent reduction in CO2 by 2030. The ACE Rule can accomplish the same goals as the CPP but do it in a more orderly business fashion instead of a federal top-down initiative.”
“The CPP was a broad overreach that we estimated could have resulted in $5 billion in increased costs for Basin and its members,” said Paul Sukut, CEO and general manager of Basin Electric Power Cooperative in Bismarck, North Dakota. “The ACE rule is more consistent with the EPA’s authority under the Clean Air Act and recognizes the role of states to work with utilities as they implement the rule.”
U.S. Senator John Hoeven (R-ND) commented, “We can reduce emissions while continuing to provide the affordable and reliable energy that families and businesses across our nation need. One-size-fits-all mandates cannot accomplish these goals. Rather, we need to invest in new technologies, like CCUS, and support states’ efforts to implement the solutions that work best for them. That’s what this replacement rule is all about, and I appreciate the administration for continually working with us to bring this priority across the finish line.”
North Dakota Governor Doug Burgum (R) also released a statement, “The Clean Power Plan was a federal overreach of the EPA’s authority that threatened to erode the baseload reliability of our nation’s power grid and hurt consumers with higher electric rates. This new rule proposes a more balanced approach that will enable states like North Dakota to pursue an all-of-the-above energy strategy in an environmentally sound manner without the burdensome constraints of a one-size-fits-all federal policy. North Dakotans want to utilize our energy resources efficiently and with common sense, and our coal industry is working to further curb emissions and add value to carbon dioxide through innovative technologies such as Project Tundra and the Allam Cycle as we continue to enjoy the second-cleanest air in the country. We thank the Trump administration and EPA for giving states the flexibility under this new rule to reduce emissions while providing affordable, reliable power and promoting job creation, economic growth and energy independence through more innovation, not regulation.”
Chief of the North Dakota Department of Health’s Environmental Health Section, Dave Glatt said, “First indications are that the new EPA proposed rule will promote the historical federal-state partnership where EPA establishes the procedures and the states determine the standard and appropriate implementation strategy. By emphasizing an inside-the-fence-line approach and utilizing available and applicable technology to reduce carbon dioxide emissions, the new rule would follow the historically established evaluation and implementation practices under the federal Clean Air Act.”
The ACE Rule builds upon the already strong relationship between the lignite industry and the state of North Dakota in being proactive with environmental regulations. Partnered with substantial investments from the lignite industry, the North Dakota Industrial Commission (NDIC) has committed $3.2 million to identify and reduce barriers to post-combustion capture of carbon dioxide and $1.5 million for CarbonSAFE, a carbon storage feasibility study. The state legislature has provided roughly $5 million for Allam Cycle research, and the U.S. Department of Energy awarded $6 million earlier this year to Project Tundra to retrofit the coal power plant near Center, ND with technology for capturing carbon dioxide that could be used for sequestration and enhanced oil recovery. NDIC has also committed $15 million toward a FEED study for Project Tundra pending a similar match from the Department of Energy. This will be coupled with industry investments.
Additional resources and background on the ACE Rule are included here at the EPA’s website. The link will provide you with a pre-publication version of the Federal Register notice, the regulatory impact analysis and fact sheets.