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Obama Unveils Power Plant GHG Limits   08/03 14:02

   WASHINGTON (AP) -- Calling it a moral obligation, President Barack Obama 
unveiled the final version of his plan to dramatically cut emissions from U.S. 
power plants, as he warned anew that climate change will threaten future 
generations if left unchecked.

   Touting the plan at a White House event on Monday, Obama said the 
unprecedented carbon dioxide limits are the "the single most important step" 
America has ever taken to fight climate change. He warned that because the 
problem is so large, if the world doesn't get it right quickly, it may become 
impossible to reverse, leaving populations unable to adapt.

   "There is such a thing as being too late when it comes to climate change," 
Obama said.

   The final version of Obama's plan imposes stricter carbon dioxide limits on 
states than was previously expected: a 32 percent cut by 2030, compared with 
2005 levels, the White House said. Obama's proposed version last year called 
only for a 30 percent cut.

   It also gives states an additional two years --- until 2022 --- to comply, 
yielding to complaints that the original deadline was too soon. States will 
also have an additional year to submit their implementation plans to Washington.

   Obama was joined in the East Room by Environmental Protection Agency 
Administrator Gina McCarthy and by parents of asthma patients. The Obama 
administration has sought to draw a connection between climate change and 
increased respiratory illness in vulnerable populations.

   "This is an especially wicked-cool moment," said McCarthy, wielding a 
colloquialism from her hometown of Boston.

   The pollution controls form the core of Obama's ambitious and controversial 
plan to drastically reduce overall U.S. emissions, as he works to secure a 
legacy on fighting global warming. Yet it will be up to Obama's successor to 
implement his plan, which has attracted strong opposition from the field of 
Republican presidential candidates.

   Opponents announced immediately that they will sue the government, and will 
ask the courts to put the rule on hold while their legal challenges play out. 
Many Republican governors have said their states simply won't comply.

   The Obama administration estimated the emissions limits will cost $8.4 
billion annually by 2030. The actual price won't be clear until states decide 
how they'll reach their targets. But energy industry advocates said the 
revision makes Obama's mandate even more burdensome, costly and difficult to 


   Power Plant Winners and Losers

   WASHINGTON (AP) -- President Barack Obama is mandating even steeper 
greenhouse gas cuts from U.S. power plants than previously expected, while 
granting states more time and broader options to comply.

   The tweaks to Obama's unprecedented emissions limits on power plants, to be 
unveiled at the White House on Monday, aim to address a bevy of concerns raised 
by both environmentalist and the energy industry. The Environmental Protection 
Agency received more than 4 million public comments after Obama announced the 
proposed version last year, and opponents of the plan attempted unsuccessfully 
to stop it in Congress and in the courts.

   Some of the changes Obama is making in the final version of the plan go even 
further in cutting the heat-trapping gases blamed for global warming. Other 
changes delay implementation and eliminate certain options that states could 
use to show they're cutting emissions, making it harder to comply.

   All states are eagerly awaiting word of changes to the individual emissions 
reduction targets that Washington is assigning each state. Some states will be 
given a more lenient target than they were assigned under the proposed version, 
while others will have tougher targets to meet. The Obama administration has 
yet to disclose those state-specific targets.

   A look at potential winners and losers in Obama's final plan:



   To the delight of environmental groups, Obama tightened the emissions 
requirements in his final plan. That means power plants will have to attain an 
even lower level of carbon dioxide pollution to be in compliance. Obama's 
proposal from last year set the target as a 30 percent nationwide cut by 2030, 
compared to the levels in 2005. His revamped plan calls for a 32 percent cut in 
the same time period.

   Left unchanged is Obama's overall goal for U.S. emissions cuts from all 
sources of pollution, including cars and trucks. As the U.S. commitment to a 
major global climate treaty that Obama is championing, the U.S. committed to 
cutting its emissions 26 percent to 28 percent by 2030, compared to 2005.


   Many of the complaints directed at Obama's plan over the last year centered 
on the amount of time states would have to figure out how to meet their 
targets. Plans for how states will comply are technically due next year, but 
there's no penalty to asking for a two-year extension, so most states are 
expected to delay. Under the earlier plan, the rock-bottom deadline was 2017, 
but that's being pushed back to 2018.

   And while states previously had until 2020 to achieve their targets, they'll 
now have an extra two years --- until 2022.


   Obama's revised plan relies more heavily on renewable energy sources like 
wind and solar replacing dirtier coal-fired power plants. Obama now wants the 
U.S. to get 28 percent of its power from renewables by 2030, compared to 22 
percent in his earlier proposal.

   In a new element, the administration now intends to offer pollution credits 
to states that drive up renewable energy generation in 2020 and 2021 ahead of 
the compliance deadline. States that invest early in wind and solar can store 
away those credits to offset pollution emitted after the compliance period 
starts in 2022.



   Although the administration predicts the plan will actually lower the 
average U.S. energy bill by almost $85 in 2030, companies that produce and 
distribute electricity aren't buying it. The savings come from increased use of 
wind, power and hydro plants, which operate at a cost of close to zero after 
they're installed. But acquiring and constructing renewable power sources is 
still very costly, making it less cost effective in many circumstances.

   The National Association of Manufacturers, the American Coalition for Clean 
Coal Electricity, the National Mining Association, the American Energy Alliance 
and the National Rural Electric Cooperative Association all predicted the rule 
would drive electricity bills up.


   The earlier version of Obama's plan sought to accelerate the ongoing shift 
from coal-fired power to natural gas, which emits far less carbon dioxide. But 
the final rule aims to keep the share of natural gas in the nation's power mix 
the same as it is now.

   EPA Administrator Gina McCarthy said government estimates show renewable 
energy has ticked upward even since the rule was proposed last year, but that 
natural gas remained an important part of the U.S. energy mix.


   The tweaks eliminate an option for states to get credit for using efficiency 
programs to persuade energy consumers to use less power, one of the so-called 
"beyond the fence" measures to cut overall emissions that don't directly 
involve how power plants are operating. Because the administration is 
specifically regulating power plants under the Clean Air Act, the inclusion of 
such measures in the proposal raised concerns that they'd likely be invalidated 
in court.

   Even so, McCarthy said U.S. energy statisticians are seeing significant and 
consistent reductions in the demand for energy in the U.S. The revised power 
plant rule does offer polluting credits to states that deploy energy efficiency 
programs in poorer communities.  


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