LANSING – The
U.S. Environmental Protection Agency on Monday released its long-awaited final
rule on carbon emissions for all states, and an analysis from the EPA shows
Michigan has one of the more moderate state goals compared to other states.
The plan,
named the Clean Power Plan, has been two years in the making and is the
“single most important step America has ever taken in the fight against
global climate change,” President Barack Obama said in a speech on the
plan Monday afternoon.
Prior to the
Clean Power Plan, there had never been federal limits on the amount of carbon
power plants can put into the air, he said, and currently those power plants
are the source of about one-third of the nation’s carbon pollution alone.
During that
time, Obama said, levels of carbon dioxide have reached historic highs, making
14 of the last 15 years some of the warmest on record. Asthma rates have also
more than doubled over the last three decades, he said.
“We’re
the first generation to feel the impact of climate change and the last
generation that can do something about it,” Obama said. “I believe
there is such thing as being too late (on climate change). … This is one of
those rare issues, because of its magnitude, because of its scope, that if we
don’t get it right, we may not be able to reverse.”
The EPA
first released a draft of the Clean Power Plan in June 2014 and, since then,
received and reviewed more than 4 million public comments, including comments
from the Michigan Economic Development Corporation, the Department of
Environmental Quality and the Public Service Commission.
And in
March, Governor
Rick Snyder laid out his vision for what the state’s energy mix would be in 2025
without the issuance of this rule. Due to the expected retirement of a large
portion of Michigan’s coal fleet due other regulations and age, even if this
rule had not been issued, he said between 30 percent and 40 percent of
Michigan’s power should be coming from its cleanest sources (energy waste
reductions and renewable energy) by 2025.
Indeed, the
Clean Power Plan calls for cutting carbon pollution by an average of 32 percent
by the year 2030 compared to a state’s 2005 level. That represents an increase
of 9 percent from the previous target.
But the
revised plan also extends compliance times. States will have until 2022 to
phase in their emissions cuts, though the plan rewards states and utilities
that move quicker to expand their renewable efforts, especially wind and solar.
States are also able to appeal for extensions or other relief, though that
process is less clear at this point. There are also incentives to construct
renewable projects in poorer neighborhoods.
The Clean
Power Plan has two source-specific carbon emission rates for power plants: one
performance rate for coal steam and oil steam plants, and the other a
performance rate for natural gas plants.
According to
a state-specific analysis by the EPA, the final plan�s goals
for Michigan are different, but not necessarily bad. In fact, the 2030 goal
looks less stringent, and the interim goal does as well.
Michigan�s
specific megawatt-hour (how electricity is measured) goal is in the middle of
the range, though, giving Michigan one of the moderate goals compared to other
states. Its “step one” interim goal was changed so as to provide a
smoother glide path and less of a cliff at the beginning of the program, as one
regional official with the National Resources Defense Council had previously
anticipated (See Gongwer
Michigan Report, July 20, 2015)
The EPA’s
Clean Energy Incentive Program not only will reward early investments in
certain renewable energy projects but also through demand-side energy
efficiency projects generating carbon-free electricity or a reduction in
end-use energy demand during 2020 and 2021, it said, though state participation
in that program is optional.
That could
bode well for those seeking to encourage energy efficiency before specific
mandates, especially because the EPA intends to make emission rate credits or
allowances available to states to encourage early reductions from renewable
energy and energy efficiency projects, the EPA noted in a summary
document.
“Michigan
can crush its clean energy target under the Clean Power Plan by continuing its
current path toward clean, efficient electricity resources,” Becky
Stanfield, deputy director for policy for the Natural Resource Defense
Council’s Midwest Program, said in a news conference. “The investments
already made in clean renewable energy and energy efficiency have lowered
bills, reduced pollution and put thousands of Michiganders to work. Doing more
of this, as part of a national effort, will also mean that our kids won’t
inherit a planet that is beyond saving.”
And she said
that renewable energy other than wind or solar could still qualify under this
proposal.
“The
definition that matters here is the carbon emission reduction, so it’s not
strictly wind and solar, but any kind of electricity that reduces carbon
emissions will be part of the solution,” she said.
Though many
environmental groups praised the proposal and even Consumers Energy approached
its announcement with caution (see separate story), House Majority
Floor Leader Aric Nesbitt (R-Lawton) ripped the proposal, calling it
“unprecedented overreach” that will hinder job growth and raise
energy rates.
“The
proposal unveiled today goes well beyond what our founding fathers envisioned
when it comes to the role of the federal government in state issues and creates
a burdensome roadblock to those looking to craft an affordable, adaptable
energy policy,” he said in a statement.
Nesbitt
encouraged an energy plan that ensured reliability and efficiency while still
being cost-effective, and to that end pointed to legislation he introduced
earlier this year that he said takes an “all of the above” approach
that considers such elements.
Mike Nofs (R-Battle Creek), chair of the Senate Energy and Technology
Committee, said the plan goes too far.
“I
think they’re pushing the limits on what they proposed originally,” he
said. “People told them it went too far and too fast, and then they
increased it by 9 percent. I think all that’s going to do is cost American
businesses money and we won’t be able to compete globally because we’ll paying
so much for energy.”
He said that
while the EPA gave an additional year for states to come up with a plan, one
year is “not enough” for the degree of increase it has now put in
front of the states.
House Minority
Leader Tim Greimel (D-Auburn Hills) was more optimistic.
“The
Clean Power Plan creates opportunities for Michigan to become a healthier,
cleaner state powered by energy sources that do not harm our communities and
our natural resources. Michigan is well-positioned to chart a course toward
meeting Clean Power Plan goals by increasing our renewable energy and energy
efficiency standards this year,” he said in a statement. “I look
forward to working with the governor and my colleagues in the Legislature to
ensure Michigan continues to provide affordable energy options for our families
and future generations while creating jobs.”
Most
stakeholders have already expected the rule to be litigated, and Nofs said he
too expects to see that happen. In light of that, he said he will go ahead with
his proposal (which does not include a specific renewable energy standard but
does speak to energy efficiency and renewable generation more generally).
Nofs’
legislation, currently, relies heavily on companies essentially meeting federal
emissions standards when it comes to sources of renewable energy, though. Asked
whether he thought that could now be changed given the circumstance, he said he
believes this process will take a “long, long time” to play out and
so it will likely not have a significant impact on language in his legislation.
“We’re
going to stick with our plan for a Michigan solution to a Michigan
situation,” he said.
States will
be required to submit a final plan, or an initial state plan with an extension
request, by September 6, 2016. If granted an extension, a complete state plan
would have to be submitted no later than September 6, 2018.
This story
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