05 Jun Carbon Regulations: How they’ll affect Austin

And the big news of the week is… carbon regulations. The Environmental Protection Agency introduced the country's first ever carbon regulations on Monday and ever since, a barrage of information (and misinformation) has been swirling over the new rules. So first things first, let's go over the basics:

• The new carbon rule is only a draft. The EPA is now accepting public comment and will spend the next year finishing the proposal before releasing the final rule in June of 2015. States will then have another year to submit their plans, detailing how they will comply with the new rule, or to apply for an extension.
• The rule will cut carbon pollution from power plants 30 percent from 2005 levels by 2030. 
• States will be given flexibility in implementing the rule and will get to decide how to reduce emissions in their state. For example, states can decide to shut down coal-fired power plants, implement energy efficiency measures, install renewable energy capacity, or create regional cap-and-trade programs. 
• Not every state will have to reduce emissions at the same rate. States like Kentucky and West Virginia that rely heavily on coal (which is a large carbon-polluter) will be required to cut their emissions at smaller rates than states that have already largely migrated away from coal. For example, the rule requires Kentucky to cut its plant emissions rate by 19 percent and Washington State (which only has one coal plant) to cut its emissions rate by 84 percent, according to the New York Times.
• President Obama has tied these new carbon rules to public health, and more poignantly, to the wellbeing of children. By shifting away from carbon dioxide, he noted, his administration is also shifting away from dirty fuels (like coal) that dump harmful pollutants into the air. 

So what does all of this mean for Texas?

• According to the Texas Tribune, under the EPA's current proposal, Texas will have to reduce its carbon emissions from power plants by 38 percent by 2030. Thirteen other states have to make bigger percentage reductions than Texas, including Washington, Oregon and New York. 
• The Texas Tribune also notes that Texas will most likely fare better than more coal-dependent states, like those in the Midwest. That is all thanks to Texas' fairly diverse energy portfolio. In 2013, natural gas produced 41 percent of the state's electricity, coal produced 37 percent, and wind produced 10 percent. 
• A lot of people across the country have raised the fear that these new carbon regulations will cost electricity consumers too much money. Organizations from all over the country have put out their own numbers predicting the cost of the new rule and they have varied wildly, with the EPA and the US Chamber of Commerce at such extreme odds it's hard to imagine that they are even talking about the same set of rules. As that debate plays out, in the meantime it might be helpful to look at what refusing to act on climate change is already costing us. This infographic published on Newsable earlier this week runs down all the economic harm that climate change has already cost Texans, while pointing out that the worst is still to come if we don't do anything to stop it. It is a good chart to share on social media, with friends or family, or with anyone you know who is worried about the new carbon regulations. 

And what does this mean for Austin?

• After the EPA's announcement, Austin City Council Member Mike Martinez released this statement:  “I am fully supportive of the EPA recommendation to reduce greenhouse gas pollution nationwide, which is why I am co-sponsoring with Council Member Tovo a resolution for Council to emphasize that Austin is ready to set our environmental standards even higher and reiterate our dedication to ending carbon pollution.”
• Austin Energy is still the part-owner of a coal-fired power plant in Fayette County. Earlier this year, at city council's behest, Austin Energy ran the numbers to see what it would cost the utility to abandon the Fayette Power Project. Their conclusion was that doing so would be prohibitively expensive. At this point, it is still unclear how or if the EPA's new rules will affect Austin Energy's calculations, but in the upcoming discussions over the city's new generation plan, it is sure to come up.