Supreme Court Decision on EPA Clean Air Act: Follow Up

In a follow up story to a previous article I wrote on the regulation of greenhouse gas emissions by the Environmental Protection Agency (EPA) via the Clean Air Act the Supreme Court announced their ruling today. The Court ruled, in a close decision, to allow the EPA to continue to oversee the regulation of greenhouse gases particularly in the industry areas of energy and other industrial manufacturing.

 

The decision from the high court did place some limitations on the authority of the EPA, but for the most part, it upheld the notion that the EPA had the authority to regulate the air emissions policies relative to current and future proposed manufacturing plants.

 

In my initial article on this subject, the industry leaders in many segments related to energy and other industrial manufacturing groups were upset regarding the requirements instituted by the EPA relative to the construction of new coal plants and other energy generating facilities.

 

These groups maintained then, and their position has not changed despite the ruling today, that the EPA overreached their authority in interpreting the Clean Air Act and that the proposed limits on carbon dioxide emissions would require new technology which was cost prohibitive. They argued that only Congress, and not the EPA, had the authority to enact any such regulations on their business.

 

Furthermore, these industry groups asserted that these changes would result in a decrease in new coal plant construction and a net loss in jobs. They challenged the EPA in multiple lawsuits which were combined and heard as one case by the Supreme Court, which reached the final verdict earlier today.

 

Big Impact

 

The ruling today will have a big impact moving forward on the future of coal and other energy producing plants. The industry is looking at having to adapt and change their normal business practices, which will have a cost both in time and money to those respective manufacturers.

 

I had mentioned in my prior article that these energy producers may attempt to pass along the increase in the cost of these plant upgrades to the consumer. That would mean increased energy costs for many already cash-strapped American families.

 

The one section of today’s ruling where the Supreme Court provided some limitations to the EPA was with regard to the size of the industry types they could regulate within the confines of the Clean Air Act.

 

Initially, the EPA was seeking to regulate entities which emitted 100 – 250 tons of greenhouse gases and had to increase that amount to 75,000 – 100,000 tons of emissions in order to adequately address the issues with air quality. The Supreme Court decision today reinforced that methodology in their opinion the EPA does not have the authority to start mandating that business across a wide scale have to endure a permitting process.

 

In response to the assertion that the agency did not have the proper authority to require these changes to the policy, the Court wrote that, in essence, the EPA was acting in the best interests of Congress and the American people by regulating this area and saving the costs of creating a separate government program or regulatory entity to do so.

 

This decision has huge positive environmental protection ramifications because it provides the EPA with the authority to regulate the entities which contribute the most carbon emissions into our air. The effective management of these emissions will have a dramatic impact on the protection of the ozone layer and reverse the negative aspects of global warming and climate change.

 

The Future

 

The EPA, through the ruling today, will be able to regulate the entities responsible for 83 percent of greenhouse gas emissions in the United States. The industry groups involved and their representative interest groups are obviously unhappy with the decision today, and they will mobilize a concerted effort to file more legal suits and injunctions in an effort to reverse this decision.

 

In the end, whether you think the EPA overreached its authority or not, the vast emissions of huge amounts of carbon dioxide and other greenhouse gases has been linked in numerous scientific studies to have a negative effect on the quality of our air.

 

I also think that the government should look into some sort of cap on the amount the energy industry could potentially raise on rates to the consumer. I understand they have to maintain profitability, but it would be patently unfair to pass along a large percentage of the cost to the average American family based on these new potential regulatory requirements.

 

A government sanctioned regulatory process, whether it is via the EPA or Congress, was bound to be instituted based on the evidence at hand. I know I would like our children and future generations to be able to take a deep breath when they turn 30, and I think we all have a vested interest in having cleaner air. If you disagree with that sentiment, then this society has more problems than I initially thought we had.

 

(Statistics and some background information courtesy of The Washington Post and Associated Press)

 

 

Follow Up: EPA Regulations on Power Plants

I recently covered the EPA ruling on the regulations for new power plants in order to curb the further emissions of greenhouse gases. This story was prevalent in the news again today with coverage by both The Associated Press and USA Today.

Those news agencies reported that the EPA ruling will be reviewed by The Supreme Court to determine whether or not the EPA has the authority to regulate the emissions of the power plants (www.ap.com).

 

The main issue is whether the 2007 Supreme Court ruling which allowed the EPA to regulate the emissions from automobiles under The Clean Air Act could be used to extend their authority to regulating the emissions from power plants (www.ap.com).

 

Both Sides

 

The environmental groups are downplaying the decision today by The Supreme Court to hear the case. They feel that the unanimous decision the EPA received supporting the regulation in the federal appeals court will help their position.

 

The EPA believes they have a strong case as well, reporting to the AP that they have the right to protect the general public from pollution within the scope of The Clean Air Act.

 

 

The environmental groups also point to the fact that the Supreme Court rejected calls to overturn the 2007 decision as a good indication that the Supreme Court is setting the boundaries of the argument by the energy industry into a very tight frame (www.ap.com).

 

Conversely, the energy industry feels that the decision by The Supreme Court to allow the case to be heard is a positive development in their cause. In my first article on this matter, I detailed the C.C.S. technology and the high cost it would require for implementation in a new power plant. In addition, the energy industry contends that the technology is unproven and they should not be required to implement it until it has been proven to be an effective technology.

 

The energy industry also feels that the Supreme Court could use this case to rule that the EPA has no right to regulate emissions from standing sources, such as power plants, at all (www.ap.com).

 

The Stakes

 

According to reports, the EPA was going to use the cap on emissions for new power plants as a measuring stick for extending regulations of emissions on other standing sources of pollution. The Supreme Court ruling could either greatly enhance the EPA in this process, or greatly inhibit the EPA moving forward in that regard.

 

The AP reported that President Obama was giving the EPA a year to come up with standards for emissions on existing power plants. Subsequently, the Court decision could have drastic ramifications on that process as well. If it rules against the EPA, then they will have a tough legal battle trying to regulate existing power plants.

 

The energy industry has a great deal at stake here as well. If they lose their case, they obviously cannot appeal it any further, and it would have to follow the EPA regulations in any new plants by installing the C.C.S. system.

 

Moreover, they would be faced with certain new regulations on the existing power plants and the emissions from those facilities. Other standing sources of pollution would face similar regulations by the EPA, except this time it would be backed by Supreme Court precedent and The Clean Air Act.

 

These regulations, as I detailed in my earlier article, would have an impact on the American consumer, as it would drive up the cost of energy.

 

Environmental Implications

 

The environmental implications are very steep here as well. The evidence is there to suggest a link between greenhouse gas emissions, particularly of carbon dioxide, and climate change.

 

All of these other implications aside, we have a responsibility to our environment and we need to be much more effective at lowering carbon emissions and other pollutants. We need to protect our planet for future generations. It goes beyond the courts, the costs, and the designation of the role of government.

 

This issue is an issue of humanity, a question of:  what kind of conditions in our environment do we want for our children and our grandchildren? That is a big question, one which will transcend this case and needs to be a part of a much deeper conversation.

EPA Limits on New Power Plants

Analyzing the Issue from Both Sides

 

The recent EPA (Environmental Protection Agency) ruling regarding the future requirements for the energy industry to build new power plants in the U.S. has reinvigorated the issue of “clean” energy. Both the environmental groups and the interest groups and executives representing the energy industry have very strong feelings on this issue. This article will explain the ruling, compare the new requirements to the current standards used in the energy industry and detail the potential ramifications of the changes as they would impact the consumer.

 

 

The Ruling

 

The EPA announced a ruling where the amount of heat-trapping greenhouse gas emissions from new power plants would be capped (www.usatoday.com). The coal-fired plants will not meet this new standard without costly technology enhancements to capture and store carbon emissions.

 

This new technology is called the Carbon Capture and Sequestration (C.C.S.) system. This technology has never been used in a coal plant, though two plants with this technology are currently under construction in Canada (www.usatoday.com).

 

Two sides to the issue

 

The EPA stated in the announcement that the cap on the emissions from these power plants is a “necessary step to address a public health challenge”.

 

The coal industry responded, and it was widely reported in the media, that it is not legal for the EPA to require the use of technology that is commercially unproven.

 

The coal industry leaders continued by explaining that the EPA usually requires that new technology be cost effective and that the C.C.S. system is not cost effective (www.usatoday.com).

 

I have a vested interest in the environment, and these statements and reports in the media clearly signal to me a growing potential conflict between the EPA and the coal industry.

 

In my past dealings with the EPA, I have found their representatives to be very fair and professional. I found that I generally agree with their assessments regarding the changes we need to make to our business practices to increase sustainability. The agency has made great strides to improve the compliance of the federal government with regard to their product procurement protocols by introducing more green alternative products into the purchasing system.

 

The C.C.S. System

 

The C.C.S. system is a technology which utilizes equipment to capture the greenhouse gas emissions. It then compresses the captured carbon. Then, the compressed material is sequestered by being transported via pipeline and stored underground (www.usatoday.com).

 

The energy industry is balking at the price tag associated with the installation of the C.C.S. system, and the EPA maintains that the government will not allow the construction of new power plants without this system in place.

 

The Cap

 

The EPA cap on the emissions from power plants is now being set at 1,100 pounds of carbon dioxide per megawatt hour (www.usatoday.com). The measurement for emissions for a new power plant without the C.C.S. technology is 1,800 pounds of carbon dioxide per megawatt hour.

 

Therefore, every new plant is going to be required to install the C.C.S. technology in order to be compliant with the new emissions cap. The coal industry intends to take legal action to fight this new emissions ruling.

 

The coal industry has stated to the USA Today that the C.C.S. rules will lead to coal plant closures and a halt in new coal plant construction. This combination will lead to higher electric bills for the consumer.

 

It is widely known that the coal plants are responsible for the majority of electric energy produced in the U.S. and that this ruling from the EPA could have a drastic effect on the supply of that energy, which will lead to an increase in electric energy prices.

 

The Future

 

This is a potentially contentious issue because you have the EPA, which is clearly trying to follow their mandate and enforce some type of standards to limit the amount of carbon emissions from these plants. Those same carbon emissions can have a dramatic impact on the environment and our ecosystems.

 

The energy industry has some reservations about the cost and also the implementation and the effectiveness of the C.C.S. technology. They contend that they could install this system and it may not work to adequately address the issue, and they could be then forced to pass along some of the install costs to the consumer.

 

The consumers are caught in the middle and many are dealing with rising costs for everything, flat wages, a sluggish economy, and many are also concerned with our environment. Now, those consumers are going to be told that the cost of electricity could increase, and that will have a dramatic impact on their everyday lives.

 

I am very concerned about the environment, and I think the carbon emissions cap is a good idea. I think the federal and state governments need to get involved and mediate this situation to protect the environment, make sure that the new technology works by incentivizing a few plants to install the equipment, and to protect the consumer from an increase in energy costs.

 

This is an issue that concerns our environmental sustainability and could have big implications on how we continue to consume energy for our everyday living activities. I hope a resolution can be reached that will be satisfactory to all parties involved. If not, we are all in for some long, difficult days ahead.