U.S. EPA Issues Proposed New Source Performance Standard to Limit Carbon Dioxide Emissions from New Fossil Fuel Electricity Generating Power Plants

 
Client Advisory
February 6, 2014

This Client Advisory provides information regarding the United States Environmental Protection Agency’s (EPA) proposed rule following up on the participation of practice group partners Jeffrey M. Karp and Elias B. Hinckley in a teleconference with UBS power sector analyst Julien Demoulin-Smith.

Published for comment in the Federal Register on January 8th, EPA has proposed an emission limit of 1,100 lbs of carbon dioxide (CO2) per MWh of electricity produced (versus the best-in-class technologies for coal turbines that emit 1,700 lbs of CO2 per MWh produced). The rule essentially requires the inclusion of partial carbon capture technology for any future coal-powered facility to be constructed. The rule also places emission limits on gas-fired facilities, but the limits (1,000 lbs or 1,100 lbs, depending on the heat input of the generator) substantially exceed the best-in-class emission levels for new gas-fired facilities, which emit between 700 and 800 lbs of CO2/MWh. EPA is accepting comments on the rule until March 10, 2014.

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