CATF Et Al Carbon Standards Review Comments

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CATF Et Al Carbon Standards Review Comments March 18, 2018 Submitted via regulations.gov U.S. Environmental Protection Agency EPA Docket Center Docket ID No. EPA-HQ-OAR-2013-0495 Mail Code 28221T 1200 Pennsylvania Ave., NW Washington, DC 20460 Re: Review of Standards of Performance for Greenhouse Gas Emissions from New, Modified, and Reconstructed Stationary Sources: Electric Utility Generating Units, Proposed Rule, 83 Fed. Reg. 65,424 (Dec. 20, 2018) Clean Air Task Force (CATF), Natural Resource Defense Council (NRDC), Conservation Law Foundation (CLF), Clean Wisconsin and Minnesota Center for Environmental Advocacy (MCEA) submit the enclosed comments on the U.S. Environmental Protection Agency’s (EPA’s) above-captioned Proposal to revoke the current 1,400 lbs. CO2/MWh standard for new coal-fired power plants and replace it with standards of 1,900 – 2,200 lbs. CO2/MWh. The Proposal is based on the Agency’s determination that “the most efficient demonstrated steam cycle,” not partial carbon capture and sequestration, is the best system of emission reduction for new coal-fired power plants. We vigorously oppose this Proposal, which has no basis in the record and fails to fulfill the Clean Air Act’s statutory mandate, as explained in detail in the enclosed comments. Founded in 1996, CATF seeks to help safeguard against the worst impacts of climate change by working to catalyze the rapid global development and deployment of low carbon energy and other climate-protecting technologies, through research and analysis and public advocacy leadership. NRDC is a national nonprofit environmental organization representing more than three million members and online activists. NRDC uses law, science, and the support of its members to ensure a safe and healthy environment for all living things. One of NRDC’s top priorities is to reduce emissions of the air pollutants that are causing climate change. CLF protects New England’s environment for the benefit of all people. We use the law, science and the market to create solutions that preserve our natural resources, build healthy communities, and sustain a vibrant economy. Since 1970, Clean Wisconsin has been the voice for the environment, working for clean air, clean water and clean energy and to protect the places we all love. To achieve this, we work on a wide range of issues and in a number of venues to protect our natural resources and the health of all Wisconsinites, now and for generations to come. MCEA’s mission is to use law, science and research to protect Minnesota's environment, natural resources and the health of its people. Our organizations also join the comments submitted to this docket today by “Joint Environmental and Public Health Commenters” pertaining to EPA’s basis for regulating carbon pollution from electric generating units under section 111 of the Clean Air Act; and concerning climate science and climate change. CATF, et al. submit separate comments today on the treatment of biomass in this rulemaking. Respectfully submitted, Jay Duffy, Attorney Lissa Lynch, Staff Attorney Clean Air Task Force Climate & Clean Energy Program (802) 233-7967 Natural Resources Defense Council [email protected] (202) 717-8296 [email protected] John Thompson, Director, Ben Longstreth, Senior Attorney, Fossil Transition Project Climate & Clean Energy Program Bruce Hill, Chief Geoscientist Rachel Fakhry, Policy Analyst, Deepika Nagabhushan, CCS Policy Climate & Clean Energy Program Associate Briana Mordick, Senior Scientist Conrad Schneider, Advocacy Director Land & Wildlife and Climate Programs Katie Nekola Greg Cunningham General Counsel Vice President and Program Director Clean Wisconsin Clean Energy and Climate Change 634 W. Main St., Suite 300 Conservation Law Foundation Madison, WI 54703 53 Exchange Street, Suite 200 (608) 251-7020 ext. 14 Portland, ME 04101 (207) 210-6439 [email protected] Kevin P. Lee Climate and Energy Program Director Minnesota Center for Environmental Advocacy 1919 University Ave. W., Suite 515 St. Paul, MN 55104 (651) 287-4865 [email protected] I. Introduction ............................................................................................................................................... 3 II. If finalized as proposed, this rulemaking would not comport with the Clean Air Act or the requirements for reasonable decision-making. .............................................................................. 4 A. EPA must ground its action in the Clean Air Act, which demands that emission standards are based on the best system of emission reduction. ...................................................... 4 B. Agencies must engage in reasoned decision-making. ...................................................................... 6 C. Finalizing this Proposal would be contrary to the statute and would not be reasoned decision-making. ................................................................................................................................... 7 III. CCS is the best system of emission reduction. ..................................................................................... 8 A. Carbon capture is adequately demonstrated. .................................................................................. 11 1. CCS projects ..................................................................................................................................... 12 2. Vendor guarantees .......................................................................................................................... 26 3. Literature review .............................................................................................................................. 29 B. Sequestration is adequately demonstrated and available. ............................................................. 30 1. EPA’s standard for availability is illegal and unworkable. ......................................................... 31 2. Geologic sequestration is technically feasible and available throughout most of the United States. .................................................................................................................................. 34 a. The Proposal underestimates geologic sequestration opportunities. ................................... 35 b. Pipeline networks can transport captured CO2. ...................................................................... 51 c. New power plants can be sited closer to storage sites and provide electricity to customers through transmission lines. ..................................................................................... 60 3. There are several policy determinations or logistical considerations that would limit the location of a new coal-fired power plant. ............................................................................ 61 C. The cost of partial-CCS was reasonable in 2015 under conservative assumptions and continues to decline. .......................................................................................................................... 63 1. The current standard imposes limited, if any, costs. .................................................................. 65 2. EPA’s reliance on outdated levelized cost of electricity figures for CCS is unreasonable. .................................................................................................................................. 65 3. EPA determined that CCS costs were reasonable even under very conservative assumptions. ................................................................................................................................... 66 a. CCS costs are declining. ............................................................................................................. 66 b. EPA failed to consider EOR revenue and the recent expansion to CCS tax credits. ....... 71 c. NRDC’s modeling confirms that the Proposal mischaracterizes CCS by failing to consider factors affecting the technology’s costs. .................................................................. 75 d. CCS is still in line with the LCOE for the other baseload low-emission technology. ...... 78 4. CCS costs are comparable to costs imposed by previous rulemakings. .................................. 81 5. EPA’s proposed upward adjustments to outdated cost figures are unjustified. .................... 83 a. Cost of transportation and sequestration ................................................................................. 83 1 b. EPA’s capacity factor adjustment is unreasonable. ................................................................ 86 6. Taking into account revenue and incentives and correcting EPA’s flawed cost inflation, the cost of full-CCS is reasonable even without expected future cost declines. ........................................................................................................................................... 87 7. BACT determinations are irrelevant to this rulemaking. ........................................................... 89 D. The current standards reduce emissions. ........................................................................................ 90 E. The current standard is achievable. ................................................................................................. 92 F. CCS will not result in increased water consumption. ................................................................... 94 IV. Co-firing is available and can be used to meet current standard. ...................................................
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