US Clean Power Plan missed opportunity for nuclear

US president Barack Obama's newly revealed plan to reduce carbon emissions from power plants misses an opportunity by failing to recognize the carbon-abatement value of existing nuclear units, according to the Nuclear Energy Institute (NEI).

The Clean Power Plan, announced yesterday by Obama and the US Environmental Protection Agency (EPA), builds on a climate change action plan launched in June 2013 and plan establishes the first-ever national standards to limit carbon pollution from US power plants and will significantly affect all players in the US generation sector. It aims to cut carbon pollution from the US power sector by 32% below 2005 levels in 2030. The reduction is greater than a previous target announced by Obama in November 2014, but with a longer timescale: the previous figure saw a decrease to 26%-28% below 2005 levels in 2025.

Obama described the plan as the most important step ever taken by the USA to combat climate change and noted that until now, there had been no limits on the amounts of carbon that US power stations could "dump" into the environment. "For the sake of our kids, for the health and safety of all Americans, that's about to change," he said.

States must develop and implement their own tailored plans to ensure they meet the standards - called carbon dioxide emission performance rates - either individually, together or in combination with other measures such as improvements in energy efficiency. This, says the White House, provides states with flexibility to include strategies such as emission trading and demand-side energy efficiency in their plans. All low-carbon electricity generation technologies including renewables, natural gas, nuclear and carbon capture and storage can play a role in state plans.

States have until September 2016 to draw up their individual plans but after making their initial submissions can request an extension of up to two years before submitting their final plan. The EPA has drawn up two proposed plan types to help states draw up their own plans. The EPA would implement the federal plan in any state that does not submit an approvable plan.

NEI president Marvin Fertel welcomed the recognition of the future contribution of nuclear power plants currently under construction and the contribution of future nuclear power uprates to compliance, but expressed disappointment in the final rule's failure to incorporate the carbon abatement value of existing nuclear power plants, some of which are at risk of premature shutdown for economic reasons.

"In the final rule, EPA notes correctly that 'existing nuclear generation helps make existing CO2 emissions lower than they would otherwise be, but will not further lower CO2 emissions below current levels.' What the final rule fails to recognize is that CO2 emissions will be significantly higher if existing nuclear power plants shut down prematurely", he said.

He also noted that the final rule appeared to give no credit for licence extensions at nuclear power plants as contributing to new capacity. "Nuclear power plant operation beyond 40 years, and certainly beyond 60 years, cannot be treated as a foregone conclusion," he said, noting that licence renewal is a major investment decision comparable to the cost of building a new combined cycle gas unit - in the range of $500 million to $1.5 billion, depending on the components that must be replaced.

International reach

United Nations Secretary-General Ban Ki-moon welcomed the Clean Power Plan as showing "the determination of the United States to address global warming while also saving money and growing the economy." The Secretary-General's spokesman Stéphane Dujarric described the plan as an example of the "visionary leadership" necessary to reduce emissions and to tackle climate change. "President Obama's leadership by example is essential for bringing other key countries on board and securing a universal, durable and meaningful agreement in Paris in December," he said, referring to the upcoming UN climate talks.

However, the plan has not received such acclamation from all parties closer to home. Oklahoma governor Mary Fallin, who earlier this year issued an order committing the state not to file an implementation plan, said it represented "one of the most expansive and expensive regulatory burdens ever imposed on US families and businesses". Meanwhile, Former Florida governor and Presidential hopeful Jeb Bush dismissed the plan as "irresponsible and overreaching".

Researched and written
by World Nuclear News