PACE Speaks Out on CO2 Rule

This afternoon, in Atlanta, PACE sent a clear message to the Environmental Protection Agency: reconsider a new regulation on carbon dioxide that could raise power prices, hurt the American economy, and kill jobs.

See PACE’s Official Statement Here

“We are concerned that introducing new carbon dioxide regulations on existing power plants will signal the virtual end of using coal for electricity in the U.S.,” PACE Associate Director John Grimes told EPA officials. “And while some who will speak today and in other EPA sessions will applaud this, we believe that taking coal off the table for American power production is neither in the best interest of consumers nor good for the economy.”

At the heart of PACE’s concerns is the fact that significant U.S. action to curb carbon emissions from the power sector will have virtually no effect on climate.

“What exactly is the environmental benefit from aggressively regulating carbon emissions? Carbon emissions from the U.S. coal industry equate to just three percent of man-made carbon emissions; man-made emissions account for just six percent of all global carbon. Even if America’s coal-fired power fleet shut down today completely, the environmental impact would be minuscule since these plants produce only .18% of the world’s carbon,” PACE’s statement explains. “Taking into account the addition of coal-fired generation in nations like China and India, most of which lack environmental controls, any reduction in the U.S. will be quickly replaced with emissions from nations committed to growth and job creation.”

Low natural gas prices have emboldened some U.S. policy makers to escalate their efforts to shut down coal-fired power. Environmental groups likewise have argued that domestic natural gas prices have made coal unnecessary for power production.

“It is a mistake to think that our recent abundance of natural gas will be the silver bullet for U.S. energy forever. History has shown that natural gas prices will rise, and creating an energy infrastructure that relies too heavily on natural gas puts consumers at great risk,” Grimes told the EPA. “We simply cannot afford to out all of our eggs in one basket, but that’s exactly where this EPA regulation begins taking us.”