Clean Power Plan

By Emma Penrod - Utility Dive, April 26, 2021

Dive Brief:

• Existing federal programs have up to $38 billion in unspent funds available that could be used to spur job creation in communities impacted by the decline of the coal industry, according to a report released Friday by the White House Interagency Working Group on Coal and Power Plant Communities and Economic Revitalization.

• President Joe Biden "is taking real steps to address the problems head on and not gloss over and say everything's going to be fine for workers because we're going to create a bunch of jobs," said Carol Zabin, director of the Green Economy Program at UC Berkeley's Center for Labor Research and Education. "He's saying everything can be fine, if we make those jobs union."

• While likely necessary to maintain public support for cutting carbon emissions, it remains to be seen whether the policies outlined in the report will spur economic recovery in affected communities, according to Zabin and Ed Crooks, vice-chair of Americas for energy research and consulting firm Wood Mackenzie.

By Dennis Higgins - Truthout, January 19, 2018

The Clean Power Plan (CPP) was proposed by President Obama's Environmental Protection Agency (EPA) in 2014 to mitigate human-caused factors in climate change. It focused principally on carbon dioxide (CO2) emissions. The plan was much heralded by environmental groups. Not surprisingly, in October 2017, Trump's appointed EPA head, Scott Pruitt, signed a measure meant to repeal this plan. 

Several states attorneys general and many national environmental groups are pushing back. However, in censuring Trump's attack on the CPP, valid criticisms of the plan itself have been ignored. No one remembers to mention that promoting gas was always at the heart of the CPP.

The current US gas boom is due to hydraulic fracturing of shale beds. This extreme extraction mechanism jeopardizes human aquifers, uses millions of gallons of water per well, and produces toxic flowback whose disposal is linked to water contamination and earthquakes. The product of fracturing is often referred to as "fracked gas." In short, the CPP supports the use of "natural" (fracked) gas.

Under Obama, the EPA, aided by the gas industry, declared "natural gas" to be "clean." Gas is mostly methane, and "fugitive methane" -- the gas that leaks by accident or through intentional venting, from well-head to delivery -- was discounted in the CPP. Noting the only factor in methane's favor (it generates less carbon dioxide on combustion than coal or oil), the field is tilted in favor of gas-burning power plants. In an article entitled, "Did the 'Clean Natural Gas' lobby help write EPA's Clean Power Plan?" Cornell scientist Robert Howarth points out a fundamental flaw in the CPP. The plan, "addresses only carbon dioxide emissions, and not emissions of methane... This failure to consider methane causes the Plan to promote a very poor policy -- replacing coal-burning power plants with plants run on natural gas ... "

Only at leakage rates lower than 1 to 3 percent (depending on usage) is gas cleaner than coal. But methane leaks at rates between 2 and 12 percent, and its climate impact -- or global warming potential (GWP) -- is 86 times that of CO2 over 20 years. (The GWP means a pound of methane in the atmosphere has the warming equivalent of 86 pounds of CO2 over 20 years. Of course, we're not talking about pounds here, but about millions of tons per year.) In a review of the CPP, Howarth said, "Converting to natural gas plants, which is what this latest rule is likely to do, will actually aggravate climate change, not make things better. It's well enough established to suggest the EPA is on the wrong side of the science."

It should be noted that the Intergovernmental Panel on Climate Change (IPCC), the Paris accord and New York State all use the year 1990 as a baseline from which to measure greenhouse gas (GHG) reductions. But, perhaps disingenuously, Obama's EPA chose to use 2005, at which time recession had already achieved significant carbon reduction, rendering the plan's proposed cuts to CO2 even less significant.

In August 2015, James Hansen, head of NASA's Goddard Institute for three decades and one of the first to sound the alarm about global warming, described the CPP as "almost worthless" in that it failed "to attack the fundamental problem." Hansen stated bluntly: "As long as fossil fuels are allowed to be the cheapest energy, someone will burn them." Of the steps the CPP claimed to be taking to address global warming, Hansen said, "It is not so much a matter of how far you go. It is a matter of whether you are going in the right direction." That same year, the US Energy Information Administration came to the same conclusion that others had: Under the CPP, the natural gas industry would benefit before renewables did.

Anthony Ingraffea of Cornell University also examined the efficacy of the CPP. He told Truthout that instead of using the IPCC's global warming potential for methane of 86 pounds over 20 years, the CPP assessed methane's impact (GWP) at 25 pounds over 100 years. This factor, its failure to fully assess fugitive methane, as well as its curious 2005 baseline, mean that the projected 32 percent reduction in CO2 from power plants by 2030 would have the net effect of reducing those greenhouse gas emissions by only 11 percent. The CPP "more than compensates for the elimination of coal CO2 with additional CO2 and methane," according to Ingraffea. "If this is all we manage in the power sector in the next 13 years, we are screwed," he said.

By staff - Kentuckians For The Commonwealth, December 11, 2017

In the final week of November, KFTC members Russell Oliver, Stanley Sturgill, Henry Jackson, Teri Blanton, Roger Ohlman, Mary Dan Easley and Mary Love converged in Charleston, West Virginia – alongside hundreds of other concerned people – to testify to the U.S. Environmental Protection Agency (EPA) against the agency’s proposed repeal of the Clean Power Plan.

“Now that we have cleaner, safer and cheaper ways to generate energy, the only question should be: how can we create more of those new jobs right here and right now in Appalachia? I know this because not only have I lived it, I’m still trying my best to keep living it,” said Stanley Sturgill of Harlan County, a retired coal miner and KFTC member.

Sturgill and others urged the EPA not to eliminate the Clean Power Plan rule. Issued in 2014, the plan is an Obama administration regulation that calls on states to develop plans for modestly reducing their carbon pollution. Most would do that through energy efficiency programs, development of solar and wind power, and reducing the amount of coal burned. States have lots of flexibility on how they choose to meet the standard.

Kentucky’s utilities would be required to reduce their carbon dioxide pollution by 31 percent by 2030 from the baseline of 2012 – something that will mostly be achieved anyway through coal plant retirements that have already happened or have been recently announced.

But, to meet or exceed the standard, the state also needs to adopt some new policies and strategies to reduce energy consumption and get more from renewable energy.

Instead, the EPA is proposing to do away with the rule, which has never actually been implemented due to court challenges. What’s more, the EPA’s proposed repeal of the Clean Power Plan has not followed the in-depth public engagement process that went into creating the plan.

KFTC member Mary Love pointed this out in her testimony to the EPA.

By Kevin Ridder - Appalachian Voices, December 1, 2017

Scott Pruitt has been trying to get rid of the Obama administration’s Clean Power Plan even before he was head of the U.S. Environmental Protection Agency. And in October, he unveiled his proposed repeal, telling a crowd of eastern Kentucky coal miners that the Clean Power Plan “was not about regulating to make things regular. It was about regulating to pick winners and losers.”

But by repealing the plan and his management of the EPA in general, what is Pruitt doing if not favoring fossil fuels over renewables?

For the proposed repeal, it seems a cornerstone of his strategy is to make sure the public has as little voice as possible in the process. While the Obama administration held 11 public listening sessions and four public hearings nationwide before finalizing the Clean Power Plan in 2015, Pruitt has scheduled only one public hearing for its proposed repeal.

By Ben Ishibashi - Common Dreams, October 11, 2017

Donald Trump and his Environmental Protection Agency chief, Scott Pruitt, think undoing all that has gone before them is something to celebrate. With no real accomplishments of their own, they revel in their power to destroy, rather than defend.

This is what Pruitt wants out of his bid to repeal the Clean Power Plan, the Obama Administration’s signature effort to cut carbon emissions from electric power generation by 32 percent by 2030.

“The war on coal is over,” Pruitt crowed at a press conference on Monday in Hazard, Kentucky, beaming. as if easing restrictions on dirty generators will magically bring back jobs to the state’s ravaged coalfields. It will not.

Allowing power companies to pump more carbon into the atmosphere won’t create jobs, nor will it revitalize the economy, even if Pruitt and Trump claim it as a big win.

But their bid to repeal the Clean Power Plan may have one silver lining: It gives all of us who care about climate justice a new opportunity to make our voices heard, and to fight for our planet’s future.

By Trevor Houser, Jason Bordoff, and Peter Marsters - Columbia Center on Global Energy Policy, School of International and Public Affairs, and the Rhodium Group, April 2017

From the introduction: Six years ago, the US coal industry was thriving, with demand recovering from the Great Recession, and global coal prices at record highs along with the stock prices of US coal companies. By the end of 2015, however, the industry had collapsed, with three of the four largest US miners filing for bankruptcy along with many other smaller companies. While coal mining employment has been on the decline for decades – from a peak of more than 800,000 in the 1920s to 130,000 in 2011 – the pace of job loss over the past six years has been particularly dramatic. After campaigning on a promise to end what he called his predecessor’s “War on Coal,” President Donald Trump signed an Executive Order in March 2017 ordering agencies to review or rescind a raft of Obama-era environmental regulations, telling coal miners they would be “going back to work.”

This paper offers an empirical diagnosis of what caused the coal collapse, and then examines the prospects for a recovery of US coal production and employment by modeling the impact of President Trump’s executive order and assessing the global coal market outlook. In short, the paper finds:

• US electricity demand contracted in the wake of the Great Recession, and has yet to recover due to energy efficiency improvements in buildings, lighting and appliances. A surge in US natural gas production due to the shale revolution has driven down prices and made coal increasingly uncompetitive in US electricity markets. Coal has also faced growing competition from renewable energy, with solar costs falling 85 percent between 2008 and 2016 and wind costs falling 36 percent.
• Increased competition from cheap natural gas is responsible for 49 percent of the decline in domestic US coal consumption. Lower-than-expected demand is responsible for 26 percent, and the growth in renewable energy is responsible for 18 percent. Environmental regulations have played a role in the switch from coal to natural gas and renewables in US electricity supply by accelerating coal plant retirements, but were a significantly smaller factor than recent natural gas and renewable energy cost reductions.
• Changes in the global coal market have played a far greater role in the collapse of the US coal industry than is generally understood. A slow-down in Chinese coal demand, especially for metallurgical coal, depressed coal prices around the world and reduced the market for US exports. More than half of the decline in US coal company revenue between 2011 and 2015 was due to international factors.
• Implementing all the actions in President Trump’s executive order to roll back Obama-era environmental regulations could stem the recent decline in US coal consumption, but only if natural gas prices increase going forward. If natural gas prices remain at or near current levels or renewable costs fall more quickly than expected, US coal consumption will continue its decline despite Trump’s aggressive rollback of Obama-era regulations.
• While global coal markets have recovered slightly over the past few months due to supply restrictions in China and flooding in Australia, we expect this rally to be short-lived. Slower economic growth and structural adjustment in China will continue to put downward pressure on global coal prices and limit the market opportunities for US exports. Indian coal demand will likely grow in the years ahead, but not enough to make up for the slow-down in China. The same is true for other emerging economies, many of whom are negatively impacted by decelerating Chinese commodities demand themselves.
• Under the best case scenario for US coal producers, our modeling projects a modest recovery to 2013 levels of just under 1 billion tons a year. Under the worst case scenario, output falls to 600 million tons a year. A plausible range of US coal mining employment in these scenarios ranges from 70,000 to 90,000 in 2020, and 64,000 to 94,000 in 2025 and 2030 -- lower than anything the US experienced before 2015.

These findings indicate that President Trump’s efforts to roll back environmental regulations will not materially improve economic conditions in America’s coal communities. As such, the paper concludes with recommendations for steps that the federal government can take to safeguard the pension and health security of current and retired miners and dependents and support economic diversification. Attracting new sources of economic activity and job creation will not be easy, and even at its most successful will not return coal country to peak levels of past prosperity.

But responsible policymakers should be honest about what’s going on in the US coal sector—including the causes of coal’s decline and unlikeliness of its resurgence—rather than offer false hope that the glory days can be revived. And then support those in America’s coal communities working hard to build a new economic future.

Read the text (PDF).