Last week, the Environmental Protection Agency (EPA) held a public hearing on the proposed repeal of the Greenhouse Gas Emissions Standards for Fossil Fuel-Fired Electric Generating Units, also known as the Clean Power Plan 2.0. Michelle Bloodworth, President and CEO of America’s Power, emphasized the urgent need to finalize the repeal to preserve grid reliability, maintain an affordable electricity supply, and protect the energy security of the United States.
“The rule is a threat to grid reliability, but the EPA did not conduct a proper reliability analysis,” she said, echoing concerns by a wide range of stakeholders that the EPA under previous administrations overlooked the real-world implications of the Clean Power Plan 2.0 and other, similar rules on the reliability of the U.S. power grid.
For example, the rule depends heavily on carbon capture and storage (CCS), a technology that Bloodworth described as “exorbitantly expensive and not yet adequately demonstrated.” Additionally, the mandate for 40% natural gas co-firing is “not feasible for most coal-fired power plants,” a fact that poses further risks given the greater volatility of natural gas pricing.
U.S. electricity demand is exploding, fueled by the growth of artificial intelligence, data centers, electrification, and advanced manufacturing. Estimates suggest the country will need 128,000 to 149,000 megawatts of new generating capacity over the next five to ten years.
Yet, this rising demand coincides with premature retirements of dispatchable energy sources. “Utilities have announced plans to retire 52,000 megawatts by 2029 and 80,000 megawatts by 2035,” Bloodworth noted. The carbon rule, if not repealed, would “cause the retirement of the entire coal fleet,” stripping the grid of crucial reliability attributes. “EPA did not consider the loss of attributes when the agency issued the carbon rule last year,” Bloodworth stated.
Coal also plays a stabilizing role in electricity prices. During the January polar vortex, for example, “coal-fired generation limited the volatility of prices caused by volatile natural gas. Without coal-fired generation, PJM consumers could have paid upwards of $1.4 billion more for electricity,” Bloodworth said.
Coal remains a cornerstone of America’s energy mix, providing dependable capacity and price stability at a time of growing demand and increasing grid fragility. “We urge the agency to issue a final rule repeal that provides as much certainty as possible.”