July 20, 2015 Read More →

U.S. Lignite Coal Industry Seeks EPA Exemption

Molly Christian for SNL:

Representatives of lignite coal producers and consumers told the White House’s Office of Management and Budget that lignite-fired plants should be granted a “categorical exclusion” from the U.S. EPA’s Clean Power Plan given the “significant threat” it presents to their industry.

The Lignite Energy Council and Gulf Coast Lignite Coalition met with OMB officials on July 16 to discuss the EPA’s plan for lowering greenhouse gas emissions from the electric power sector. A final version of the rule, which is estimated to lower power section emissions by 30% from 2005 levels by 2030, is expected in August.

Most lignite-fired plants get their coal from adjacent mines. Lignite is lower in heat content than most other U.S. coals, making it less economic to sell further away. The proximity of mines to plants means potential retirements to comply with the Clean Power Plan will take a bigger economic toll on communities near that source of generation that are home to both mine and plant workers. In its integrated planning model for the Clean Power Plan, the EPA projected lignite unit closures could start as early as 2016 under the new rule.

Lignite Coal industry Pushes for Exclusion to US EPA’s Clean Power Plan ($)

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