FOR IMMEDIATE RELEASE
On August 31, 2018, the U.S. Environmental Protection Agency (EPA) proposed the Affordable Clean Energy (ACE) rule to address greenhouse gas emissions from existing coal-fired power plants. This rule would replace the Obama Administration's Clean Power Plan (CPP) rule and provides greater flexibility for states in addressing emissions from existing power plants.
The American Foundry Society has expressed opposition to the Clean Power Plan (CPP) from its inception. Through its Air Quality Committee, AFS submitted comments asserting that the CPP would impose significant negative impacts on metalcasting operations because the rule would force the closure of most coal-fired utilities, thereby disrupting energy grid reliability and imposing higher electricity costs. In addition, the CPP exceeded EPA’s statutory authority to regulate emissions from existing power plants.
In proposing the ACE rule, EPA has provided a clearer definition of best system of emission reductions (BSER) by identifying a list of heat-rate efficiency improvements. States are allowed to determine which heat-rate efficiency improvements are most appropriate on a unit-by-unit basis and to provide incentives to existing power plants to implement efficiency improvements without triggering more stringent new source review (NSR) requirements. The proposed approach does not require fuel switching at existing power plants, and focuses exclusively on environmental policy and not energy policy.
The proposed rule also allows states up to three years to develop their state implementation plans (SIPs) for CO2 emissions reductions. EPA has also issued clarification regarding what is needed for a complete SIP and provided 12 months to act on a complete SIP.
The proposed ACE rule would continue to decrease CO2 emissions by 34 percent below 2005 levels (which is similar to the targets of the CPP). The proposed rule would result in $3.4 billion in net benefits and could avoid $6.4 billion in compliance costs compared to the CPP. Unlike the CPP, the proposed ACE represents a thoughtful, responsible, and cost effective approach to reducing CO2 emissions from existing power plants through requirements that are within the authority provided by the Clean Air Act.
AFS plans to submit comments on the proposed ACE through the public notice and comment process. If you have any questions or would like additional information on this issue, please contact Jeff Hannapel with the AFS Washington Office at jhannapel@thepolicygroup.com.
View the AFS Advocacy video here.
The American Foundry Society is a dynamic technical and advocacy organization that serves and represents the $33 billion metalcasting industry. AFS is the only association serving the entire industry, including all metals and processes, with a three-part focus on advocacy, education, and innovation. AFS also publishes Modern Casting and Metal Casting Design & Purchasing magazines and presents Metalcasting Congress and CastExpo, the largest metalcasting trade events in North America. Founded in 1896, the organization is based in Schaumburg, Illinois, with an advocacy office in Washington, D.C. More information is available at afsinc.org.