Wednesday, March 28, 2012

EEEPA!


Congratulations to the U.S. EPA for releasing the long awaited carbon pollution standards for new power plants.  As a former EPAer and having personally worked on the development of some of these carbon rules I was happy to see their release of this proposed rule in particular.  I am sure many a tweet, blog and press release have been flying around touting the benefits or detriments of this proposed rule.  Instead of simply adding a voice to the chorus I simply want to congratulate the EPA on this important first step.  Though I firmly believe that this is exactly that; a first step. 

The rule mandates requirements only for new power plants.  It does not affect existing power plants or our current energy supply.  If one believes, as I do, that it’s in our best interest as a country to diversify and modernize our power sector to be more reliable and cleaner, then the way you start is by regulating new sources to the sector.  Some may argue that this is too little or too much, but I think it provides a good practical first step to start the process of cleaning up our energy sector. 

Currently about 45% of our country’s electricity needs are met by burning coal, this is not going to change quickly.  Power plants take a long time to construct, and like many large construction projects new power plants are subject to multiple economic, regulatory and technological considerations that take time to plan and finance.  However, by setting a mandate on the expectations for the level of emissions from new power plants the EPA has provided a level of certainty – the bar that all new power plants must pass under.  I think this is the most important element of the rule, the certainty it offers.  One thing that utilities hate above all is uncertainty, especially in long term projects – now they can plan.  For the environmentalists there is now certainty that no matter the floor has been set, and if conditions change (which they always do) they can be comfortable knowing at least there is a solid clean energy line we can’t cross and we don’t go back to the days of dirty coal. 

As a quick aside, as I was writing this blog I pictured London as Charles Dickens described it and it reminded me of the reason that the EPA is here in the first place “Smoke lowering down from chimney-pots, making a soft black drizzle, with flakes of soot in it as big as full-grown snow-flakes”.  A vivid reminder.

Congratulations again EPA!!