Dive Brief:
- A new report from the Natural Resources Defense Council (NRDC) indicates poorer Americans would benefit most from the Clean Power Plan, finding the new carbon rules will reduce power prices, improve health, lower costs and be a boon to the economy.
- The environmental group said greater use of renewable energy and energy efficiency can help the United States address health challenges associated with pollution while also helping consumers use less energy.
- Critics of the plan say it will force offline some older plants still needed for reliability, ultimately pushing energy prices higher while also making it more difficult for grid operators to reliably meet demand.
Dive Insight:
Environmental advocates have put out a new report finding that the lowest-income Americans are most susceptible to price swings in energy, the health impacts of pollution and extreme weather. The Obama administration's CPP, they say, will benefit the entire country but most directly those who are also most vulnerable.
“The effects of climate change present an enormous hurdle to those who work hard and play by the rules, but lack the resources to protect themselves,” Susan Casey-Lefkowitz, NRDC director of the CPP initiative, said in a statement.
That the NRDC strongly supports the rule should not come as a surprise, given its role in crafting the rule. In July of last year, the New York Times reported that key parts of the Clean Power Plan proposed by the EPA were modeled after policy proposals written by the NRDC. In October, Sen. David Vitter (R-La.) released emails he said showed the agency conspiring with the advocacy group to craft important aspects of the rule before 2011, when public comment was first allowed.
The EPA says it had no improper relationship with the organization and points out that more than 300 stakeholder groups had input on the proposed rule, set to be finalized this summer.
Key findings from the report show that clean energy is becoming more affordable and wind and solar are now cost-competitive; health care costs are rising due to carbon emissions' impact on the environment, and lowering consumption could help low-income consumers pay for their energy use.
NRDC also said that reducing carbon will lower energy costs and create jobs, ultimately leading to a more reliable electric sector.
“The poor and elderly already devote a large portion of their income to energy costs, but that doesn’t have to be the case,” report author Katharine McCormick said in a statement. “The reliability of fossil fuels has been overstated. When we diversify our energy portfolio and invest in efficient and renewable sources like solar and wind, we help improve reliability, decrease our dependence on the market, and insulate people — especially the poor — from unpredictable coal and gas price spikes.”
Last year the U.S. Environmental Protection Agency proposed to slash carbon pollution by 30%, but critics say the government's plan would mean too much change too quickly. The North American Electric Reliability Corp. warned last month that the plan could force up to 60 GW of generation offline, putting many grid operators at risk for potential shortages.