State ready for EPA emissions rule’s changes, officials say

1st stakeholder meeting to develop reduction plan set

Meaningful environmental

policies can coexist with

economic development, Arkansas’

Department of Environmental

Quality director

said Monday about the state’s

planning for compliance

with the U.S. Environmental

Protection Agency’s Clean

Power Plan.

Department of Environmental

Quality Director

Becky Keogh added at a

news conference jointly hosted

with Arkansas Public Service

Commission Chairman

Ted Thomas that the state

should pursue “plentiful and

diverse energy resources” as

a part of a “balanced energy

future.”

“I believe we’re ready,”

Thomas told the room filled

with state, industry and environmental

leaders and reporters.

The public service

commission has a team that

has already been looking into

the plan, he added.

The first stakeholder

meeting will be Oct. 9, and

the state has about another

year after that to submit a

plan for implementing the

rule, which targets carbon

dioxide emissions related to

climate change.

State officials can also request

an extension in a year,

as long as they provide a

progress report. Emissions

reductions must start in

2022, but states can be rewarded

for reducing them

earlier.

Keogh and Thomas said

the state had gotten most of

what it wanted in an earlier

lawsuit against the Clean

Power Plan’s first draft,

which would have had Arkansas

facing some of the

highest mandated carbon

dioxide reductions.

Litigation, as well as continued

dialogue with the

EPA, helped the state end up

in the middle of the pack in

terms of emissions reduction

requirements nationwide,

Keogh and Thomas said.

Arkansas was previously in

the top five states needing to

reduce emissions.

Now, the state faces a 36

percent reduction in emissions,

instead of 45 percent

— a reduction Thomas called

a “relief” when he heard

about it. But the state already

anticipates reducing carbon

dioxide emissions without

any Clean Power Plan-related

controls by as much as

12.7 percent by 2020, Keogh

said.

The plan affects 56 generation

units at 19 plants across

the state, although some of

those plants are not consistently

in operation and are

considered standby facilities,

Keogh and Thomas said.

Nationwide, the biggest

reductions are required in

most of the central states and

the Rust Belt.

Entergy Arkansas’ proposal

to quit using coal at its

White Bluff plant near Redfield

would have a “significant”

further impact on what

the state has to do to reduce

emissions, Keogh said.

But whether that proposal

will go through depends

on the resolution of the 1999

Regional Haze Rule’s implementation

in Arkansas, which

is being disputed among EPA

and Arkansas Department of

Environmental Quality officials.

The state was granted

a motion to intervene in the

case, which led to a federal

implementation plan for Arkansas,

on Monday. Entergy

Arkansas plans to replace

coal at the White Bluff plant

with natural gas, solar and/

or wind power.

“I think it will get us to

landing that goal in 2030,”

Keogh said, referring to the

Clean Power Plan’s ultimate

date for reducing carbon dioxide

emissions.

The startup of Big River

Steel in Osceola could add

problems to the state’s effort

to reduce emissions, however,

Thomas said.

In response to the news

conference, the Sierra Club’s

Arkansas chapter — which

favored the Clean Power

Plan — released a statement

supporting the Department

of Environmental Quality

and Public Service Commission

for working together to

comply with the rule.

“By working together with

all stakeholders, Arkansas

can take charge of writing its

own plan that will dramatically

improve our health, our

environment, and our economy,”

the statement reads.

Arkansas Attorney General

Leslie Rutledge has joined

several states in a lawsuit

against the EPA over the

final Clean Power Plan issued

Aug. 3, but Keogh and

Thomas said their agencies

did not ask for the lawsuit

and are instead monitoring

it as they move forward with

plans to implement the new

carbon rule.

“We have to be ready either

way,” Thomas said. At

this point, Keogh and Thomas

said they’re waiting to

see if the lawsuit will clarify

questions about state and

federal authority in implementing

the plan.

“We hope that it will …

move in favor of Arkansas,”

Keogh said.

Exactly what the state’s

energy future will look like

will depend on stakeholder

input and future prices,

Thomas said. He said he’d

like the state to take an approach

that would help natural

gas be a big player in

the state. He also said that if

prices of solar power generation

keep dropping, the state

could invest in major projects

there, too.

The state’s final plan must

be approved by the Arkansas

Legislature, which this year

passed Act 382, barring the

Department of Environmental

Quality from submitting a

state compliance plan on the

Clean Power Plan to the EPA

without Legislative Council

or governor approval.

Before that, the agency

will co-host the stakeholder

meetings to decide how

to proceed with the plan in

Arkansas.

“The stakeholder process

is important,” Thomas said

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