WASHINGTON, July 29, 2014 /PRNewswire-USNewswire/
-- National Mining Association
(NMA) President and CEO Hal
Quinn testified this morning at the Environmental Protection
Agency's (EPA) public hearing in Washington, D.C. highlighting the flaws that
undermine the agency's proposed regulation for reducing greenhouse
gases from existing power plants. In the following statement,
Quinn summarizes why "this stunning attempt to remake the nation's
entire electric grid" will weaken the nation's manufacturing base
and grid reliability, burden households with high energy costs and
deprive states of the flexibility to manage their energy
economies:
"EPA's proposal is another step in this administration's
policies designed to eliminate low cost and reliable electricity
and replace it with more expensive and less reliable sources. By
reducing the diversity of our nation's electricity supply and
raising its costs, EPA will create a structural barrier for our
economic recovery and future growth.
"Entirely missing in action from this proposal is recognition of
the value of generation diversity to the stability of power
supplies and prices. Coal-based power plants were vitally important
this past winter, supplying 92 percent of the incremental demand
for power. When many of these plants are no longer available in
harsh winters to come, the nation will literally pay the price for
EPA's flawed rule.
"Higher electricity and gas prices will make U.S. manufacturing
less competitive and deprive families of disposable income as they
spend more to light, heat and cool their homes. In those regions
where coal generation serves as the primary source of electricity,
retail electricity rates are 30-50 percent lower than the regions
where coal generation is a lower share of electricity.
"EPA's proposal rests on a weak foundation. Among the
rule's assumptions – or 'building blocks' – are unrealistic
efficiency gains anticipated from coal-based power plants. Prior
EPA rules have made these plants less efficient. The present
proposal will force many coal plants to run at reduced or
sub-optimal levels.
"The more substantial efficiency gains possible in the coal
fleet are taken off the table by EPA's rule for new plants that
requires technology that actually reduces plant efficiency
by up to 25 percent. EPA's assumption of a 1.5 percent growth in
year-over-year energy efficiency gains nationwide illustrates the
gap between wishes and reality as states with the lowest retail
power prices will see the rising cost of the next increment of
energy efficiency.
"Similarly unrealistic is EPA's assumption that gas plants can
run at a 70 percent capacity factor. There is no technical or
economic evidence that they can sustain generation at this level.
EPA's goal for intermittent, renewable sources is not credible
either. These sources are called 'intermittent' for a reason: their
performance is highly variable daily and seasonally.
"EPA touts the flexibility it offers states. But as each of
these 'building blocks' crumbles, the rule places states into a
straightjacket forcing them to make increasingly painful and
economically risky adjustments to meet target reductions.
"Many questions must still be answered about this rule and its
implementation, but there is already one certainty: the costs and
risks are real and substantial; the benefits are not."
To view Quinn's entire statement, click here.
The National Mining Association (NMA) is the voice of the
American mining industry in Washington,
D.C. Membership includes more than 325 corporations involved
in all aspects of coal and solid minerals production including
coal, metal and industrial mineral producers, mineral processors,
equipment manufacturers, state mining associations, bulk
transporters, engineering firms, consultants, financial
institutions and other companies that supply goods and services to
the mining industry.
Contact:
Nancy Gravatt
(202) 463-2642
ngravatt@nma.org
Luke Popovich
(202) 463-2620
lpopovich@nma.org
SOURCE National Mining Association