Will Congress Halt the EPA’s Climate Policy?

Two weeks ago, the Supreme Court announced it would review a small part of the Environmental Protection Agency’s (EPA) agenda for regulating greenhouse gases under the Clean Air Act. Yesterday, two members of Congress (Rep. Ed Whitfield, R-KY, and Sen. Joe Manchin, D-WV) floated a bill that would substantially limit EPA’s authority to regulate GHGs under the Act, opening up a new avenue of attack on the agency’s agenda.

This move is mostly about politics and appears extremely unlikely to become law – even if it made it through the Congress’s backlogged calendar and received enough votes to pass, the President would surely veto it. It’s also not a new move – other bills with the same general objective have been floated in both the House and Senate over the last few years, without success. But the new bill is worth a look since it shows what parts of EPA’s agenda are the highest-priority targets for its coal-state opponents. The bill would essentially limit EPA in three ways:

1. No CCS requirement.

EPA’s proposed performance standards for new fossil fuel power plants, which effectively require carbon-capture-and-storage, would be thrown out. Replacement proposals could only be based on technologies already deployed at at least 6 commercial plants. This requirement would prevent EPA from using performance standards to do any real technology forcing.

2. No existing-source rules without express Congressional consent.

EPA guidelines for future standards on existing sources, which the President has directed the agency to propose by next summer, would not enter into effect without specific new legislation. Since few coal plants are likely to be built regardless of what new-source standards look like, existing source standards are much more important. In fact, they are likely the single most important component of federal climate policy for the foreseeable future.

Given Congress’ current inability to take action on any substantive policy issue, much less a politically controversial one like climate policy, the bill would doom existing-source standards. The Clean Air Act remains the vehicle for federal climate policy because of Congress’ inability to act, either by replacing it or stripping out authority over GHGs. By requiring Congressional action for Clean Air Act policy to proceed, the bill would reverse this relationship.

3. Different standards for lignite coal, and for coal and gas generally.

For new and existing sources, EPA would have to issue separate standards for coal plants that burn lignite, which has greater emissions relative to its energy output. More importantly, EPA would be required to issue separate standards for coal and gas plants. In so forcing EPA to divide (or in legal terms, “subcategorize”) the emissions sources subject to standards, the bill would significantly undermine the power of flexible standards to achieve emissions reductions at low cost.

Standards that allow trading across different types of sources result in emissions reductions at those sources where they are cheapest. Fragmenting sources into smaller markets means costlier reductions (or fewer reductions at the same cost). But there are winners and losers. Trading between more- and less-efficient sources implies a transfer payment between those sources. If the policy that’s most cost-effective for society results in losses for coal (and in particular lignite) and gains for gas, then it’s not surprising that coal interests will oppose it. This bill is direct evidence of that.

About Nathan Richardson

Nathan Richardson is a Resident Scholar at RFF, and Co-Editor of Common Resources. A lawyer by training, Nathan's research focuses on energy and climate policy, particularly regulatory tools available under US law.

Views expressed above are those of the author. Resources for the Future does not take institutional positions on legislative or policy questions. All information contained on Common Resources is intended for informational and educational purposes and may only be used for these purposes. Please see RFF's Terms of Use for further information.

Comments
One Response to “Will Congress Halt the EPA’s Climate Policy?”
  1. James Singmaster, III, Ph.D. says:

    Only one action can save the future for our kids. WE HAVE TO MAKE THE SUN OUR SOLE ENERGY-POWER SOURCE!!!!!!!! That’s TOTALLY NON-POLLUTING ENERGY-POWER having no emissions; no torn up land that is stopped from having plant growth to take up CO2, no radiation escapes , no meltdowns, no oil pipeline messes, no fracking around to spoil ground water, etc. etc.. RFF NEEDS TO CALL FOR MAKING THE SUN OUR SOLE ENERGY-POWER SOURCE AND IT WILL LAST FOREVER!!!!!!!!!!!!!!

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