The Environmental Protection Agency’s (EPA) power plant rule, finalized last week, poses a serious threat to America’s energy supply. Under the new rule, all coal plants planning to remain open beyond 2039 and any new natural gas plant must cut or capture 90% of their carbon dioxide emissions by 2032. Plants expecting to retire by 2039 face less stringent standards but must still capture some emissions. While existing natural gas plants are currently exempt, any new plant will have to adhere to these regulations.
The rule’s reliance on carbon capture and sequestration (CCS) is particularly concerning. CCS involves capturing carbon dioxide, transporting it, and storing it in underground wells. Despite decades of research and development, CCS remains extremely expensive and largely unsuccessful. Only a handful of functioning CCS facilities operate worldwide, and they capture only a small fraction of what experts had projected.
The lack of progress in CCS technology is not the only impediment to the EPA’s rule. The House Climate Solutions Caucus recently expressed deep concerns about the delays in permitting underground CO2 storage, which are hindering the deployment of clean energy and carbon capture infrastructure. Without timely permitting, the EPA’s rule could exacerbate the existing backlog and further hinder progress.
The EPA’s rule appears to be part of a larger agenda to phase out fossil fuels, which have been under attack since President Biden took office. The forced closure of power plants will undoubtedly contribute to this goal. However, a study published last year concluded that switching to a mostly renewable electric grid would cause electricity prices to soar more than threefold. Restricting the supply of hydrocarbons would only lead to sustained increases in oil and gas prices, harming Western economies.
Fossil fuels provide reliable, cost-effective, and resilient energy, supporting economic activity. Renewables are not a viable or sound replacement, as their intermittence and unreliability have already caused significant issues. Several recent weather events, such as Winter Storm Uri and Storm Elliot, have highlighted the importance of fossil fuels in maintaining grid stability. California, with its ambitious green agenda and significant reliance on wind and solar, has also experienced its share of rolling blackouts.
According to the North American Electric Reliability Corporation (NERC), the risks of blackouts are increasing across America due to mandates for carbon-free electricity. Potential energy deficiencies are projected in areas where the future resource mix may fail to deliver the necessary supply of electricity under constrained conditions. Coal-heavy regions like the Midcontinent Independent Systems Operator (MISO) are at very high risk.
The EPA’s rule will likely face legal challenges, similar to the West Virginia v. EPA verdict, where the agency’s authority was questioned. Lawsuits may allege that the emissions rule exceeds the EPA’s legal authority and violates administrative law.
Fossil fuels will continue to be the reliable backbone of the energy grid for the foreseeable future. We cannot rely on technologies that currently lack commercial viability. The EPA’s final rule will undoubtedly impact grid reliability and put American safety and livelihoods at risk.
