U.S. Environmental Protection Agency's (EPA) Power Plant Regulations
As an industry leader, our charge is to expand energy access for families living without power, maintain a reliable supply to satisfy existing needs and plan for long-term growth.
We all share the goals of affordable energy, strong economies and a clean environment. Keeping electricity costs low is why coal is essential to the energy mix. And yet, the U.S. administration is forcing its carbon agenda to reduce coal use at a time when coal is used to generate electricity in 47 states.
A NERA Economic Consulting study concludes that the Clean Power Plan will increase energy sector expenditures $220 to $292 billion form 2022 - 2033. It will also increase the average U.S. retail electricity rate up to 14 percent each year over the same period. The government should not impose artificial carbon caps or renewable mandates that will hurt people and cripple economies for negligible environmental benefit.
Regarding emissions progress for coal, this begins with deployment of high efficiency, low emissions (HELE) power stations using technology that is available today. Longer-term investments in next generation carbon capture, use and storage (CCUS) technologies are necessary to transition to the ultimate goal of near zero emissions from coal-fueled power. HELE and CCUS technologies must be part of the solution to achieve goals of substantial reductions in greenhouse gas emissions.
Throughout 2015, Peabody joined other industry participants and officials from 29 states and state agencies to contest the legality of the administration’s regulations, which would raise U.S. power costs and damage reliability of the electricity grid with no significant global environmental benefit. In February 2016, the U.S. Supreme Court voted to temporarily halt implementation of the EPA’s Clean Power Plan while the Court continues to review the rule’s legality at the U.S. Court of Appeals for the District of Columbia. Peabody applauded the Supreme Court’s decision to protect affordable energy for families and businesses across the United States.
U.S. Energy Information Administration, Electric Power Monthly, February 2016.
NERA Economic Consulting, “Energy and Consumer Impacts of EPA’s Clean Power Plan, November 2015.
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