WITH CO2 RULES ON TAP, BILL SETS COMPLIANCE FRAMEWORK

Jun 4, 2014 12:00 AM

2014-06-04T00:00:00


WITH CO2 RULES ON TAP, BILL SETS COMPLIANCE FRAMEWORK 
 
Pres. Barack Obama is expected to announce later today highly anticipated, new carbon 
pollution standards for existing coal-fired and natural gas-fired power plants. Already, the 
Ohio House is considering legislation, House Bill 506,that establishes reasonable 
guidelines for Ohio EPA to follow in developing its plan for achieving the new standards. 
The Ohio Chamber expressed our support for HB 506 in testimony submitted to the 
House Agriculture and Natural Resources Committee last week. 
 
The new standards are a central part of the president’s 2013 Climate Action Plan, and 
they could require existing power plants to reduce their carbon dioxide (CO2) emissions 
by as much as 20 percent. The regulations that will need to be developed to achieve 
compliance threaten to be among the most costly in the history of the federal EPA, and 
are likely to be most harmful to regions most dependent on coal for electricity – places 
like Ohio, where in 2013 coal was used to generate 70 percent of our electricity. 
 
U.S. EPA’s authority under the Clean Air Act is limited to issuing national emissions 
standards, along with guidelines for states to use in developing plans to implement them. 
But states possess primary responsibility for determining specific compliance methods. 
As a result, Ohio EPA will create the performance standards for CO2 emissions from 
existing Ohio power plants and submit a plan to U.S. EPA for approval by July 1, 2016. 
 
HB 506, sponsored by Reps. Andy Thompson and Jack Cera, sets some basic 
parameters for Ohio EPA to follow in an effort to minimize the harmful economic impacts 
of compliance. It requires the agency to set CO2 emissions standards based on what is 
achievable through efficiency improvements and other sensible measures that can be 
undertaken at individual electric generating units. It also permits Ohio EPA to adopt less 
stringent standards or utilize a longer compliance schedule than established by the 
federal government. Most importantly, it ensures that Ohio EPA takes into consideration 
energy reliability and cost to ratepayers. 
 
HB 506 is scheduled for a committee vote tomorrow, and could be on the floor for a vote 
by the full House later in the week. Ohio EPA has said the compliance plan it will craft 
may be the most complex state plan ever developed. Unfortunately, it is Ohio citizens 
and Ohio employers who will ultimately pay the price of these costly regulations. 
 
Ohio Chamber Staff Contact: Keith Lake, klake@ohiochamber.com