EPA Proposes Clean Air Act Standards
The U.S. Environmental Protection Agency today proposed Clean Air Act standards to cut carbon pollution from new power plants in order to combat climate change and improve public health.
In addition, EPA has initiated broad-based outreach and direct engagement with state, tribal, and local governments, industry and labor leaders, non-profits, and others to establish carbon pollution standards for existing power plants and build on state efforts to move toward a cleaner power sector.
Today’s proposal achieves the first milestone outlined in President Obama’s June 25 Memorandum to EPA on “Power Sector Carbon Pollution Standards,” a major part of the President’s Climate Action Plan.
“Climate change is one of the most significant public health challenges of our time. By taking commonsense action to limit carbon pollution from new power plants, we can slow the effects of climate change and fulfill our obligation to ensure a safe and healthy environment for our children,” EPA Administrator Gina McCarthy said. “These standards will also spark the innovation we need to build the next generation of power plants, helping grow a more sustainable clean energy economy.”
Under today’s proposal, new large natural gas-fired turbines would need to meet a limit of 1,000 pounds of CO2 per megawatt-hour, while new small natural gas-fired turbines would need to meet a limit of 1,100 pounds of CO2 per megawatt-hour.
New coal-fired units would need to meet a limit of 1,100 pounds of CO2 per megawatt-hour, and would have the option to meet a somewhat tighter limit if they choose to average emissions over multiple years, giving those units additional operational flexibility.
These proposed standards will ensure that new power plants are built with available clean technology to limit carbon pollution, a requirement that is in line with investments in clean energy technologies that are already being made in the power industry.
Additionally, these standards provide flexibility by allowing sources to phase in the use of some of these technologies, and they ensure that the power plants of the future use cleaner energy technologies -- such as efficient natural gas, advanced coal technology, nuclear power, and renewable energy like wind and solar.
In response to recent information and developments in the power sector and more than 2.5 million public comments, including those from the power sector and environmental groups, today’s proposal sets separate standards for new gas-fired and coal-fired power plants.
Power plants are the largest concentrated source of emissions in the United States, together accounting for roughly one-third of all domestic greenhouse gas emissions. Currently, nearly a dozen states have already implemented or are implementing their own market-based programs to reduce carbon pollution. In addition, more than 25 states have set energy efficiency targets, and more than 35 have set renewable energy targets. While the United States has limits in place for arsenic, mercury and lead pollution that power plants can emit, currently, there are no national limits on the amount of carbon pollution new power plants can emit.
In 2009, EPA determined that greenhouse gas pollution threatens Americans' health and welfare by leading to long lasting changes in the climate that can have a range of negative effects on human health and the environment. Taking steady, responsible steps to cut carbon pollution from new and existing power plants will protect children’s health and will move the country toward a cleaner, more stable environment for future generations, while supplying the reliable, affordable power needed for economic growth.
The agency is seeking comment and information on today’s proposal, including holding a public hearing, and will take that input fully into account as it completes the rulemaking process. EPA’s comment period will be open for 60 days following publication in the Federal Register. In a separate action, EPA is rescinding the April 2012 proposal.
Separately, EPA has initiated outreach to a wide variety of stakeholders that will help inform the development of emission guidelines for existing power plants. EPA intends to work closely with the states to ensure strategies for reducing carbon pollution from existing sources are flexible, account for regional diversity, and embrace common sense solutions, allowing the United States to continue utilizing every fuel source available. In accordance with the June 25 Presidential Memorandum, EPA will issue proposed standards for existing power plants by June 1, 2014.
Ofwat allows retailers to raise prices from April
Retailers can recover a portion of excess bad debt by temporarily increasing prices from April 2022, according to an Ofwat statement.
The regulator confirmed its view that levels of bad debt costs across the business retail market are exceeding 2% of non-household revenue, thereby allowing "a temporary increase" in the maximum prices. Adjustments to price caps will apply for a minimum of two years to reduce the step changes in price that customers might experience.
Measures introduced since March 2020 to contain the spread of Covid-19 could lead to retailers facing higher levels of customer bad debt. Retailers’ abilities to respond to this are expected to be constrained by Ofwat strengthening protections for non-household customers during Covid-19 and the presence of price caps.
In April last year, Ofwat committed to provide additional regulatory protection if bad debt costs across the market exceeded 2% of non-household revenue.
Georgina Mills, Business Retail Market Director at Ofwat said: “These decisions aim to protect the interests of non-household customers in the short and longer term, including from the risk of systemic Retailer failure as the business retail market continues to feel the impacts of COVID-19. By implementing market-wide adjustments to price caps, we aim to minimise any additional costs for customers in the shorter term by promoting efficiency and supporting competition.”
There are also three areas where Ofwat has not reached definitive conclusions and is seeking further evidence and views from stakeholders:
- Pooling excess bad debt costs – Ofwat proposes that the recovery of excess bad debt costs is pooled across all non-household customers, via a uniform uplift to price caps.
- Keeping open the option of not pursuing a true up – For example if outturn bad debt costs are not materially higher than the 2% threshold.
- Undertaking the true up – If a 'true up' is required, Ofwat has set out how it expects this to work in practice.
Further consultation on the proposed adjustments to REC price caps can be expected by December.
"While it’s great that regulators are helping the industry deal with bad debt in the wake of the pandemic, raising prices only treats the symptoms. Instead, water companies should head upstream, using customer data to identify and rectify the causes of bad debt, stop it at source and help prevent it from occurring in the first place," she said.
"While recouping costs is a must, water companies shouldn’t just rely on the regulator. Data can help companies segment customers, identify and assist customers that are struggling financially, avoiding penalising the entire customer in tackling the cause of the issue."
United Utilities picks up pipeline award
A race-against-time plumbing job to connect four huge water pipes into the large Haweswater Aqueduct in Cumbria saw United Utilities awarded Utility Project of the Year by Pipeline Industries Guild.
The Hallbank project, near Kendal, was completed within a tight eight-day deadline, in a storm and during the second COVID lockdown last November – and with three hours to spare. Principal construction manager John Dawson said the project helped boost the resilience of water supplies across the North West.
“I think what made us stand out was the scale, the use of future technology and the fact that we were really just one team, working collaboratively for a common goal," he said.
Camus Energy secures $16m funding
Camus Energy, which provides advanced grid management technology, has secured $16 million in a Series A round, led by Park West Asset Management and joined by Congruent Ventures, Wave Capital and other investors, including an investor-owned utility. Camus will leverage the operating capital to expand its grid management software platform to meet growing demand from utilities across North America.
As local utilities look to save money and increase their use of clean energy by tapping into low-cost and low-carbon local resources, Camus' grid management platform provides connectivity between the utility's operations team, its grid-connected equipment and customer devices.