Last Friday I posted excerpts from a Richmond-Time Dispatch article on the Virginia State Corporation Counsel’s (SCC’s) blunt comments on the Clean Power Plan – EPA’s proposed rule to reduce carbon dioxide (CO2) emissions from state electric power sectors. To recap, SCC staff argue the Plan exceeds EPA’s statutory authority, raises “alarming regional reliability concerns,” and would “substantially” increase consumer electric bills.
Over the weekend, a colleague sent me the SCC comment letter. Although 57-pages long, the letter is accessible and well worth reading. The SCC has been regulating Virginia electricity markets for more than 110 years to ensure reliable service at reasonable prices. These folks know whereof they speak. Today’s post delves into the SCC staff’s argument.
First, some quick background. EPA proposes to establish, for each state, existing source performance standards (ESPS) for power-sector CO2 emissions. The statewide standards, expressed in tons CO2 per megawatt hour, translate into a statewide CO2 reduction targets. Clean Air Act §111(a)(1) defines “standard of performance” as:
a standard for emissions of air pollutants which reflects the degree of emission limitation achievable through the application of the best system of emission reduction which (taking into account the cost of achieving such reduction and any nonair quality health and environmental impact and energy requirements) the Administrator determines has been adequately demonstrated [emphasis added].
SCC staff identify six main reasons EPA’s proposed CO2 reduction targets for Virginia are not valid performance standards.