Addressing the Challenges of the New EPA Emissions Standards

We find ourselves at a pivotal moment as the Environmental Protection Agency (EPA) has released its final rule targeting existing coal-fired and new natural gas-fired power plants. This rule presents significant challenges for the electric industry across the nation, including our cooperative. The core issues and our stance on this pressing matter are outlined below.

Significant Concerns with the EPA's Final Rule

UNLAWFUL

The new EPA rule is seen as UNLAWFUL. It arguably exceeds the EPA’s granted authority, contravening not only federal law but also recent Supreme Court decisions. The law requires that major rules of economic and political significance receive explicit congressional approval, which this rule lacks. Its implementation could significantly increase electricity prices due to the expensive technologies it mandates.

UNACHIEVABLE

The rule is UNACHIEVABLE in its current form. By 2032, it requires that all operating coal-fired units and new baseload gas-fired units capture and sequester 90% of their CO2 emissions. The mandated carbon capture and sequestration (CCS) technology, involving the capture, transport, and underground storage of CO2, remains commercially unproven and prohibitively expensive, far from being "adequately demonstrated" as required by the Clean Air Act.

UNREALISTIC

We regard the rule as UNREALISTIC. The timeline for constructing necessary CCS pipeline networks is insufficient to meet the EPA’s stringent deadlines. Furthermore, the current rate of renewable energy installation is not on track to replace the energy capacity expected to be lost from retiring coal units swiftly. Estimates suggest it would take 45-55 years to replace all coal and natural gas generation with wind and solar power. Additionally, the North American Electric Reliability Corporation (NERC) has warned that over 110 gigawatts of reliable generation will retire by 2033, potentially leading to widespread blackouts in 19 states during peak times over the next five years.

Our Commitment and Actions Moving Forward

While we are committed environmental stewards, our members should never have to choose between sustainable practices and reliable energy. Western Cooperative and our partner in generation Sunflower Electric has joined forces with the National Rural Electric Cooperative Association (NRECA) in challenging this rule. The litigation will likely extend into the foreseeable future, but we are proactively planning for all possible outcomes to ensure our cooperative remains robust and reliable.

While our board and staff diligently analyze potential paths forward. We will continue to prioritize economic viability, reliability, and the integration of new technologies. As a complex issue, we must explore every option as we navigate this challenging landscape.

Stay Engaged and Informed

We value your involvement and support as we address these regulatory challenges. Your active participation is crucial. For those interested in further advocacy, I encourage you to join NRECA’s "Voices for Cooperative Power" at voicesforcooperativepower.com to help influence future energy policy decisions.

We will continue to keep you updated on progress and decisions regarding these issues. Thank you for your continued trust and engagement as we strive to serve you with the best possible energy solutions.