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Analysis: U.S. industry sees carbon-capture as legal chink in EPA rules
By Valerie Volcovici
WASHINGTON | Fri Sep 20, 2013
(Reuters) - Faced with the Obama administration's new crackdown on power plant emissions, the coal and electric utility industry is honing a legal strategy it believes could derail the measures.
New rules governing the construction of fossil fuel power plants, unveiled by the Environmental Protection Agency on Friday, have closed one of the largest legal loopholes of the initial regulations put forward in 2012, by providing separate standards for gas- and coal-fired plants.
Now, opponents have another tactic in mind: challenging the idea that carbon capture and storage (CCS), a decades-old but commercially tenuous technology that will be a requisite for any company building a new coal-fired power plant, is a viable solution to curbing greenhouse gases.
Under the Clean Air Act, the basis for the newly proposed rule, the EPA is required to set pollution standards using the "best system of emission reduction" with technology that has been "adequately demonstrated."
That language is likely to sit at the core of any lawsuit that could be filed by industry lawyers at the end of what could be a months-long rulemaking process.
"They tried one approach that is legally flawed," said Jeff Holmstead, a lawyer representing coal industry groups for Bracewell & Giuliani, referring to the EPA. "They are doing something else that can be struck down in court."
The requirement to implement carbon CCS technology "does not in our view comport with the requirements of New Source Performance Standards under the Clean Air Act," the American Public Power Association, a group that represents electric utilities, said in a statement.
...
The Waxman-Markey bill, which would have created an economy-wide carbon cap-and-trade system, would have set aside a certain portion of emission permits to fund CCS. The bill passed the House in 2009 but a companion died in the Senate in 2010.
"It's as if they intentionally burned down their house and then complain about being homeless," said Daniel Weiss, director of climate strategy at the liberal Center for American Progress.
Analysis: U.S. industry sees carbon-capture as legal chink in EPA rules | Reuters
By Valerie Volcovici
WASHINGTON | Fri Sep 20, 2013
(Reuters) - Faced with the Obama administration's new crackdown on power plant emissions, the coal and electric utility industry is honing a legal strategy it believes could derail the measures.
New rules governing the construction of fossil fuel power plants, unveiled by the Environmental Protection Agency on Friday, have closed one of the largest legal loopholes of the initial regulations put forward in 2012, by providing separate standards for gas- and coal-fired plants.
Now, opponents have another tactic in mind: challenging the idea that carbon capture and storage (CCS), a decades-old but commercially tenuous technology that will be a requisite for any company building a new coal-fired power plant, is a viable solution to curbing greenhouse gases.
Under the Clean Air Act, the basis for the newly proposed rule, the EPA is required to set pollution standards using the "best system of emission reduction" with technology that has been "adequately demonstrated."
That language is likely to sit at the core of any lawsuit that could be filed by industry lawyers at the end of what could be a months-long rulemaking process.
"They tried one approach that is legally flawed," said Jeff Holmstead, a lawyer representing coal industry groups for Bracewell & Giuliani, referring to the EPA. "They are doing something else that can be struck down in court."
The requirement to implement carbon CCS technology "does not in our view comport with the requirements of New Source Performance Standards under the Clean Air Act," the American Public Power Association, a group that represents electric utilities, said in a statement.
...
The Waxman-Markey bill, which would have created an economy-wide carbon cap-and-trade system, would have set aside a certain portion of emission permits to fund CCS. The bill passed the House in 2009 but a companion died in the Senate in 2010.
"It's as if they intentionally burned down their house and then complain about being homeless," said Daniel Weiss, director of climate strategy at the liberal Center for American Progress.
Analysis: U.S. industry sees carbon-capture as legal chink in EPA rules | Reuters