Coal generates nearly half the nation’s electricity—the largest share of any energy resource—and will remain the dominant rule for electricity generation through 2035, according to the U.S. Energy Information Administration (EIA).

Advances in clean coal technologies and more efficient combustion systems have enabled U.S. power plants to reduce their regulated emissions by more than 60 percent since 1970, while increasing electric power output over the same period by 140 percent.  Today’s new coal-fueled power plant emits 90 percent fewer emissions than the typical plant it replaces built in the 1970s.  Further emissions reductions are expected as new technology is developed and commercially deployed.

The use of coal for electricity generation involves regulation from the federal, state and local level, primarily through the Clean Air Act.  A few examples are:

National Ambient Air Quality Standards (NAAQS) are national levels for certain air pollutants set by the U.S. Environmental Protection Agency (EPA) in order to protect public welfare. EPA sets each NAAQS, and then designates whether or not a state or local area meets each standard. The NAAQS are the backbone of the Clean Air Act, and it is up to each state to determine how it meets the NAAQS. This “cooperative federalism” approach has let states choose which approaches work best for them.

The Utility Maximum Achievable Control Technology Rule (UMACT) is a rule that was finalized in February 2012, and targets emissions of mercury and other air pollutants from power plants. The rule imposes new numerical emission limits for mercury, particulate matter and hydrochloric acid at electric generating units that use coal or oil. According to the EPA and the Office of Management and Budget, the UMACT rule is projected to be the most expensive power plant regulation in history. EPA estimates the annual compliance costs to be $11 billion, but independent estimates project that the costs may be almost $18 billion a year. The UMACT will increase electricity prices for homes and businesses in the range of 12 to 24 percent and cost the American economy more than 1.4 million jobs. Within weeks of the release of the UMACT, utilities announced plans to retire more than 25,000 megawatts of coal-based capacity as a result of the rule. Independent projections forecast a potential closure of more than 60,000 megawatts of capacity.

Greenhouse Gas Regulation New Source Performance Standards (NSPS) for ‘fossil fuel-fired’ power plants were proposed by EPA in April 2012.  The emission levels mandated in this NSPS  cannot be met by new highly efficient coal technologies. NMA strongly opposes EPA’s proposal, and urged EPA to set a practical and achievable standard for coal fueled units that is in step with a true “All of the Above” energy strategy. This can be accomplished by:

• Enabling new advanced coal generation that pays both economic and environmental dividends by replacing old coal units with more efficient, supercritical coal plants;
• Acknowledging the economic benefits of a stable and diverse electric generation mix;
• Abandoning the proposed NSPS that will impair the diversity of our electricity generation mix and crush more American jobs.