Abby L. Harvey
GHG Monitor
6/5/2015
Lawmakers from coal states pressed Secretary of Energy Ernest Moniz this week on potential reliability issues that could result from projected coal plant retirements in coming years during a House Subcommittee on Energy and Power hearing on the Energy Department’s recently released Quadrennial Energy Review. Several factors, including environmental regulations and low cost natural gas, are expected to lead to an increase in coal plant retirements, causing concerns that new infrastructure will not be able to be built in time to avoid decreased reliability. “The gas lines aren’t there. We are seeing four years to … just simply get a permit to install a gas line. Unless there’s power plants that are being built that I’m not aware of in my region, then I believe there is going to be a significant challenge to meet the power needs,” Rep. Markwayne Mullin (R-Okla.) said during the hearing.
Moniz said that DOE analysis suggests that the fuel switching likely to result from the implementation of the Environmental Protection Agency’s proposed carbon emissions standards for existing coal fired power plants may cause localized issues, but nationally, the effect will be small. The regulations are due to be finalized in August and would require states to meet federally set emissions reductions goals. States may choose how to meet these goals through any number of means, included switching to lower-carbon fuel sources. “There will be local issues that have to be resolved in some places with new infrastructure,” Moniz said. “What I’m saying is that obviously all the local planning authorities will have to do the planning, but at the macro level we are not seeing that the likelihood of enormous challenges. We are being cautious. We have to wait for the final rule to come into place.”
Where Does the Funding Come From?
In order to meet energy needs in the face of coal retirements, some new infrastructure will need to be built or replaced, Rep. Morgan Griffith (R-Va.) said during the hearing. “Pipelines are going everywhere. But I’ve noticed in the QER you noted the need for pipeline replacements for existing pipelines and that you suggested a DOE run grant program designed to allow states to receive funds to aid in improvements to pipeline infrastructure,” Griffith said.
However, such funding was not included in the half of a billion dollars included in DOE’s fiscal year 2016 budget request earmarked to address various QER recommendations. “You know, we have in the past, of course had many examples of raising resources in various ways for major infrastructure projects,” Moniz said. “I think that’s the discussion we need to have with the Congress.”
