The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksRDSA.L Share News (RDSA)

  • There is currently no data for RDSA

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Stakeholders brace for White House move on power plant emissions

Sun, 23rd Jun 2013 16:29

By Valerie Volcovici

WASHINGTON, June 23 (Reuters) - Before President BarackObama unveils a plan to lower carbon emissions from thousands ofexisting U.S. power plants, stakeholders on all sides of theissue have attempted to make their mark on the regulations.

Electric utilities, environmental groups, large electricityconsumers, and states have been working furiously behind thescenes for months to have a say in new rules that will be laidout by the Environmental Protection Agency.

Obama, in a video released by the White House on Saturday,confirmed that he will deliver a major speech on climate changeon Tuesday. "I'll lay out my vision for where I believe we needto go - a national plan to reduce carbon pollution," Obama said.

Administration officials have said the White House will usethe Clean Air Act to tackle power plants, which account fornearly 40 percent of greenhouse gas emissions.

This comes as no surprise to the companies and states thatwill have to either comply with or carry out the regulations.For the past few months, they have been working behind thescenes to influence the EPA before it begins what could be amonths- or years-long rule-making process.

"The traditional industry response to EPA rule-making is -the EPA puts something out and then we respond to it," saidEmily Fisher, a director of legal affairs for energy andenvironment at electric industry lobby group Edison ElectricInstitute (EEI). "This is different in that we feel obligated tobe more engaged early on."

Fisher said the EPA will be in a "gray area" when it takesits first steps to regulate existing sources because the agencywill need to use a rarely used and broadly worded section of theClean Air Act, known as 111(d).

Under that statute the EPA would set federal emissionsguidelines and decide upon the best systems or technologies forreducing emissions. Each state would then be left to setperformance standards for its power plants and to determine howthe plants will meet those standards.

Because there is little legal precedent for the rule, theagency will rely on a range of external sources for input, saidDina Kruger, a former director of the EPA climate changedivision and now a regulatory consultant.

EARLY START

Environmental group the Natural Resources Defense Council(NRDC) has developed the most detailed proposal so far.

In December it unveiled a plan in which the EPA would setstate-specific emissions rates that would give the states mostreliant on coal-generated energy more time to comply.

Dan Lashof, NRDC's climate and clean air program director,said the group wrote the plan to "rehabilitate the reputation ofthe Clean Air Act," which critics say will raise electricityprices, "and show there is a flexible way to regulate carbon."

Under the plan, a state that currently gets more electricityfrom coal-fired power plants than cleaner-burning natural gas orrenewable energy would set an emissions rate target in 2020 thatis higher than for a state that is less coal-dependent. Stateswould then develop their own plans to meet the target.

The NRDC said its plan would cut carbon pollution 26 percentunder 2005 levels by 2020 and cost $4 billion, which it said wasa fraction of the cost of health and environmental damages fromnot acting on climate change.

But this approach may be vulnerable to legal challenges,said Robert Wyman, a lawyer at Latham and Watkins in Los Angeleswho heads up a coalition of major companies that are also tryingto influence the EPA rule-making.

The EPA "lacks the legal authority to differentiate amongstates in setting the eventual performance standards forspecific fuel and technology subcategories," Wyman said.

The National Climate Coalition, which includes companiessuch as Boeing , Shell and utilities NRG andMidwest Generation, has developed a framework for the EPA thatWyman feels would stand up to potential legal challenges.

Under their approach, the EPA would set separate emissionperformance standards for coal- and gas-fired power plants.

"The EPA would develop the basic building blocks forcoordinated state action while leaving to the states the choiceof approach," according to a summary of their plan.

The NCC approach would let utilities calculate averageemissions across their range of facilities, which in turn wouldenable states to use market-based mechanisms, such as trading ofemissions permits.

EARLY ACTORS

Several states and certain utilities that have already takensteps to lower carbon levels at their plants will lobby the EPAto get credit for emissions already reduced under states' carbonreduction or clean energy programs.

Xcel Energy, which operates in states with renewable energymandates including Colorado and Minnesota, estimates that itsgreenhouse gas reductions by 2020 will be three to four timesgreater than if it kept its fleet of coal plants and tried tomaximize their efficiency under future EPA regulations.

States such as California and the nine northeastern statesin the Regional Greenhouse Gas Initiative, which havemarket-based cap-and-trade systems in place, have also said theywill seek equivalency.

The EEI also warned in a white paper on existing power plantrules in 2012 that while the EPA should give companies "flexibleapproaches" to meet the standard, "some are concerned thatflexibility may open the door to more stringent standards."

More News
16 Dec 2021 22:13

UPDATE 2-Royal Dutch Shell confirms delay in sale of Texas refinery to Mexico's Pemex

(Adds approval expected by Jan. 13)By Stefanie Eschenbacher and Erwin SebaMEXICO CITY/HOUSTON, Dec 16 (Reuters) - Royal Dutch Shell on Thursday confirmed a Reuters report that the sale of its controlling interest in a Texas refinery to Mexican stat...

Read more
16 Dec 2021 14:42

Latin American oil auctions kick off after two-year lull

* 11 firms registered to bid in Brazil's auction on Friday* Competition expected to be fiercest since 2018* Seven Latin American nations to hold auctions in 2022-2023By Marianna Parraga and Sabrina ValleHOUSTON, Dec 16 (Reuters) - Latin America's oil...

Read more
15 Dec 2021 12:16

Five companies seek to develop CO2 storage off Norway

OSLO, Dec 15 (Reuters) - Five companies have applied to build carbon dioxide (CO2) storage on the Norwegian continental shelf, the country's oil and energy ministry said on Wednesday.The ministry proposed in September two offshore areas, one in th...

Read more
15 Dec 2021 10:10

UPDATE 2-FTSE dips as inflation surges to 10-year high

(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window)* IAG down on plans to cancel Air Europa acquisition* Rentokil falls for second day on M&A plans* Inflation jumped to 5.1% in Nov vs. 4.2% in...

Read more
15 Dec 2021 09:33

LONDON BROKER RATINGS: BofA starts Pod Point at Buy; Barclays cuts DCC

LONDON BROKER RATINGS: BofA starts Pod Point at Buy; Barclays cuts DCC

Read more
14 Dec 2021 09:40

LONDON BROKER RATINGS: JPMorgan raises Experian, cuts BAE Systems

LONDON BROKER RATINGS: JPMorgan raises Experian, cuts BAE Systems

Read more
13 Dec 2021 16:10

UK dividends calendar - next 7 days

UK dividends calendar - next 7 days

Read more
13 Dec 2021 11:48

Brazil's oil regulator approves Mero oilfield production agreement

SAO PAULO, Dec 13 (Reuters) - Brazilian state-run oil company Petrobras said on Monday that the country's oil regulator ANP has approved a production agreement for the Mero oilfield, deciding on which stake of its oil and gas output will be hold ...

Read more
13 Dec 2021 10:16

UPDATE 2-Energy, bank stocks drag London's FTSE 100; Omicron fears weigh

(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window)* Purplebricks plunges after delaying results* SThree drops as CEO steps down* FTSE 100 down 0.8%, FTSE 250 off 1.2% (Updates to close)By Ba...

Read more
13 Dec 2021 07:22

Qatar Energy acquires 17% stake in Shell-operated concessions in Egypt

DUBAI, Dec 13 (Reuters) - Qatar Energy will acquire a 17% stake in two Shell-operated concessions (Block 3 and Block 4) in Egypt's Red Sea region, Shell Egypt said on Monday.Shell will remain the main operator of the concessions, Shell Egypt's st...

Read more
12 Dec 2021 14:00

Activist group targets Exxon with shareholder climate resolution

* Follow This targets Exxon for first time* Dutch group also targets other energy companiesBy Ron Bousso and Sabrina ValleLONDON, Dec 12 (Reuters) - Climate activist group Follow This targeted Exxon Mobil Corp with a shareholder resolution urging i...

Read more
10 Dec 2021 23:26

UPDATE 1-Shell restarting Louisiana refinery crude unit after repairs from Hurricane Ida -sources

(Adds no reply from company)HOUSTON, Dec 10 (Reuters) - Royal Dutch Shell Plc was restarting on Friday the crude distillation unit (CDU) at its 230,811 barrel-per-day (bpd) Norco, Louisiana, refinery after completing repairs from Hurricane Ida, sa...

Read more
10 Dec 2021 20:44

Shell restarting Louisiana refinery crude unit after repairs from Hurricane Ida -sources

HOUSTON, Dec 10 (Reuters) - Royal Dutch Shell Plc was restarting on Friday the crude distillation unit (CDU) at its 230,811 barrel-per-day (bpd) Norco, Louisiana, refinery after completing repairs from Hurricane Ida, said sources familiar with pl...

Read more
10 Dec 2021 16:57

Can we still be friends? Shell sends Dutch PM parting note

By Toby SterlingAMSTERDAM, Dec 10 (Reuters) - On the day that shareholders of Royal Dutch Shell PLC voted to move the company's headquarters to London https://www.reuters.com/markets/europe/royal-dutch-shell-plc-shareholders-set-approve-move-london...

Read more
10 Dec 2021 15:29

Belarus oil firm cancels 2022 exports to Germany after EU sanctions - traders

MOSCOW, Dec 10 (Reuters) - Belarusian oil company Belorusneft has cancelled its 2022 export plans to Germany via the Druzhba pipeline following new European Union sanctions on the company, three traders familiar with the matter said on Friday.On ...

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.