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Indiana’s leaders respond to national debate on coal

 

By SUSAN BLOWER
Indiana Correspondent

INDIANAPOLIS, Ind. — The debate ramped up again this week on President Obama’s Clean Power Plan after the Senate voted, 52-46, in favor of two resolutions that disapproved of EPA’s regulations of new and existing coal power plants.
Both of Indiana’s senators – Sen. Dan Coats, a Republican, and Sen. Joe Donnelly, a Democrat, - voted for the resolutions. Donnelly voted against his party on the resolutions. “As I’ve said before, I have serious concerns with this rule, and my vote this week reflects those concerns,” Donnelly said.
The new rules would clamp down on existing coal power plants and virtually block building any new plants.
Under the Congressional Review Act, the Senate and House can void rules issued by regulatory bodies, but President Obama has stated that he will veto these resolutions. The House is expected to pass its own versions of the resolutions.
The Indiana Farm Bureau (INFB) supports the Senate resolutions because of the potential rise in energy costs in Indiana. Indiana relies on coal for more than 80 percent of its energy.
“Close to 30 percent of all farm inputs are tied to energy and electricity. In lean years like this with slow price growth or depressed market prices, any additional cost is especially hard. Farmers can’t pass on their costs because they don’t set prices on the market,” said Kyle Cline, national policy advisor for INFB.
Biomass and other renewables, however, receive a boost through this plan.
“The Clean Power Plan is basically the first comprehensive U.S. energy policy that will promote the use of renewables, including biomass,” said Bob Cleaves, president of the Biomass Power Assoc., representing wood and ag interests. “There are still some questions about how the plan will be implemented, but we support the regulation and its acknowledgement of the role of biomass and other renewables in the nation’s energy portfolio.”
Under the Clean Power Plan, EPA projected that by 2030 carbon pollution from the power sector will be 32 percent below 2005 levels. EPA said fuel-fired power plants are by far the largest source of U.S. carbon dioxide emissions.
Under the final rule issued by EPA in August, Indiana will have to reduce carbon dioxide emissions from power plants by 39 percent.
Bruce Stevens, president of Indiana Coal Council, Inc., does not dispute that coal-fired plants produce emissions, but he does dispute the objective of the plan.
“This has nothing to do with climate. This final regulation will not affect global temperatures or the sea level. They believe if we do this, the rest of the planet will follow,” Stevens said. “This issue significantly impacts the interior of the country. It’s not about carbon dioxide reductions. It’s about harming the states that use coal as an energy source.”
Stevens cited a study by Energy Ventures Analysis, funded by the National Mining Association, that claims that consumers will pay $214 billion by 2030 in utility costs and Indiana’s wholesale electric price will increase by 13 percent by 2022.
However, the EPA has stated that electricity bills will be lowered, not raised. Jesse Kharbanda, executive director of the Hoosier Environmental Council, said that through the use of a combination of natural gas, wind, solar, and “very aggressive energy conservation programs,” lowering utility rates and meeting the objectives of the Clean Power Plan are achievable.
“The EPA estimates that, in addition to mitigating climate change and boosting public health, the Clean Power Plan will lower electricity bills nationwide by 7.0 to 7.7 percent by 2030 compared to a business-as-usual scenario,” Kharbanda said.
According to a study by Public Citizen, a non-profit organization with a climate program, Indiana is projected to see its electricity bills go down by 6.7 percent by 2025 under the Clean Power Plan.
“It’s cheaper to save a unit of energy than to pay for a unit of energy. Saving a unit of energy is half to one-fourth the cost of producing energy,” Kharbanda said.
Complying with the EPA rule will make energy more expensive for families and harder for businesses to compete in Indiana, according to Sen. Donnelly’s office.
Moreover, Indiana has made strides in energy diversification.
“Indiana already has one of the world’s cleanest coal-fired power plants, the world’s largest geothermal heating and cooling system, and has increased renewable energy generation eightfold since 2008,” Donnelly said in a statement.
He wants Indiana to return to public incentives and rebates to switch to high-efficiency appliances, better insulation, LED lighting, triple-pane windows, etc. He wants to require utilities to offer rebates to their customers for these conservation methods.
Stevens said Hoosiers are a common-sense lot.
“Hoosiers are concerned about clean air and clean water, but they understand the cost versus benefit. The costs on this program far outweigh the benefits. We hear from consumers all the time about concerns over costs, which have been increasing for the past 6-8 years,” Stevens said.
11/25/2015