carbon emissions

Tennessee Valley Authority

On Thursday, Kentucky Gov. Matt Bevin announced his administration would seek an extension to comply with upcoming federal carbon dioxide regulations from power plans.

On the face of it, this isn’t surprising. Without an extension, the deadline to decide how Kentucky will reduce emissions is fast-approaching. It makes sense that the state would seek as much time as possible.

But piecing together the statement released by Bevin’s office and a brief interview I did with the Energy and Environment Cabinet raises more questions. While state regulators plan to ask the Environmental Protection Agency for two more years to consider their options, they seem opposed to every option that actually involves reducing the state’s carbon dioxide emissions.

The Clean Power Plan is calling for steep cuts in emissions from power plants. To do this, states have two options: Create a state plan or follow the federal plan.

There’s a third option Kentucky regulators are hoping for, which is that the judicial system overturns the regulation, and the EPA is forced to go back to the drawing board and spend years reformulating the regulations.

TVA

A lawsuit filed by Kentucky and several other states challenging the Environmental Protection Agency’s Clean Power Plan could be decided “any day now.”

Chief Deputy Attorney General Sean Riley briefed a legislative committee on the lawsuit Thursday.

The lawsuit argues that with the Clean Power Plan, the EPA is exceeding its authority under the law. The law—expected to be finalized this summer—will set state-specific goals for carbon dioxide reductions.

Riley said the three judge panel hearing the oral arguments in April seemed to agree with the states on the technical merits of their argument: that the sections of the Clean Air Act the EPA is using to regulate carbon dioxide are inappropriate.

“They were very receptive to the substantive argument that the EPA may have precluded its ability to regulate greenhouse gases under [section] 111d by operation of regulating them under [section] 112,” he said. “However, they did voice some skepticism about whether the timing of our lawsuit was procedurally proper.”

Kentucky’s regulators are making the case to the federal government that the commonwealth should be allowed flexibility in reducing its carbon dioxide emissions.

The Environmental Protection Agency plans to propose rules regulating carbon dioxide emissions from existing power plants next June. In a white paper sent to the EPA last month, the Kentucky Energy and Environment Cabinet argues the agency should require states to reduce emissions by a certain percentage, rather than set across-the-board limits for power plants.

Assistant Secretary for Climate Policy John Lyons says Kentucky can reduce its carbon dioxide emissions. But 97 percent of the state’s electricity comes from coal, and the commonwealth should be allowed flexibility and time to make reductions.

“If you were to prescribe a rate-based approach for existing facilities that coal couldn’t meet, you would have no choice but to shut down the coal plants," Lyons said. "That simply is not reasonable nor feasible when we look at the 200,000 manufacturing jobs that we have in this state. There needs to be time for transition.”

Lyons estimates Kentucky is already on track to see significant CO2 reductions in the next several years, because several of the state’s coal-fired power plants plan to close.