There are a lot of uncertainties about the carbon cuts proposed this week by the Obama administration.
Will electricity rates go up? or not? Will the coal industry die a slow death? or not?
The move has created a tremendous amount of buzz among politicians, lobbyists and the energy industry. But what does it all mean for you? Well, we do know this carbon crackdown is arguably the biggest step this country has ever taken to combat the effects of climate change --and depending on who’s talking, it signals anything from economic opportunity to catastrophe. Dan Boyce with our Inside Energy team takes a look.
“Hi everybody, I’m here at Children’s National Medical Center in Washington D.C.”
It's President Obama’s weekly address to the nation. He's visiting kids with breathing problems like asthma. Problems often aggravated by air pollution.
“Pollution from the same sources that release carbon and contribute to climate change. And for the sake of all our kids, we’ve got to do more to reduce it.”
So here’s what he wants to do. Cut carbon dioxide levels from the nation’s power plants 30 percent by 2030. That’s compared with 2005 levels.
These new rules from the Environmental Protection Agency are in the proposal stage--open for public comment right now. And they’re probably going to face lawsuits and definitely lots of blowback. And that’s because they’ll be hitting the dirtiest and cheapest energy sources the hardest. Especially Coal-fired power plants.
The EPA has the authority to release these rules without the approval of congress--and lawmakers from coal-producing states are not happy.
“Hello, this is Senator Mike Entzi from Wyoming…”
Like Senator Entzi in the GOPs response to the President. He, like many Republicans, says the administration is waging a war on coal.
“If it succeeds in death by regulation, we’ll all be paying a lot more money for electricity, if we can get it.”
Wyoming is the nation’s largest coal producer--burning coal gives the state almost 90 percent of its electricity and it exports a lot of its stockpile to other states. Right now, Wyoming has the cheapest power in the country. That’s likely to change under the new guidelines.
The EPA is trying to help out states like Wyoming, that are so reliant on coal. The overall national goal may be reducing the rate of emissions by 30 percent, but Wyoming won’t have to reduce that much. And North Dakota will have to reduce emissions less than any other state--11 percent reductions by 2030.
As for states that are already making this carbon cutting game work--the EPA is pointing to Colorado.
“I hope you’ll welcome secretary Moniz and listen to what he has to say.”
U.S. Energy Secretary Ernest Moniz spoke at a forum at the Colorado School of Mines last week. He describes the state’s energy policy as really inclusive, really diverse. Lots of coal but also plenty of natural gas and wind.
“That’s very much the President’s philosophy, it’s my philosophy.”
Still, what is all of this going to mean for your power bill? Well, it’s tough to tell right now.
Ethnie Treick works with Colorado’s biggest electric utility, Xcel energy.
“We’re still evaluating the rules, so I can’t tell you today what the impact might be specific to the rule…”
These rules are brand new, and super long. It’s a 645 page document. But here’s what she can say.
Colorado enacted legislation four years ago to start cutting pollution...by requiring more energy from renewables and rolling out energy efficiency programs for consumers. And through these changes, Xcel says it already has plans in place to reduce its own emissions 35-percent by 2020. As for the consumers?
“We’re maintaining rates that are below the national average.”
Of course that’s just one big electricity provider, not the whole state… Still, Colorado energy regulators predict the state’s early action to begin cutting carbon means these new rules won’t mean a big rate hike.
It also could mean good news for renewable energy. Here’s the President and CEO of the Solar Energy Industries Association, Rhone Resch.
“I think there’s no doubt this sends a very clear signal to the markets that solar is going to be an important part of our energy mix going forward.”
Monday’s announcement is just the beginning. Public Comment lasts for the next four months. There will be hearings and there will be lawsuits. The rules will be finalized next year, and states will have until 2016 to come up with their own plans for following them.
