The Natural Gas Solution: API’s Modeling of EPA CPP
Market forces, public policy and environmental policy are driving the ongoing shift in our nation’s power generation mix. The challenge of ensuring environmental compliance, reliable generation and affordable electricity rests on states and regional transmission organizations that must consider the interests of electricity consumers as well as the overall well-being of the state economy. U.S. Environmental Protection Agency’s (EPA) Clean Power Plan (CPP) is a sweeping and complex rule affecting most power generation in the country, with the singular focus of environmental impact. Should the rule be upheld by the courts, states must carefully consider CPP implementation choices as they balance their need to meet emission requirements, maintain reliability and minimize costs. Natural gas generation meets all three objectives, providing a generation solution that is clean, reliable and affordable.
Even without the Clean Power Plan, natural gas is projected to continue driving emissions reductions in the power sector. Using more realistic natural gas resource assumptions provides over 350 million short tons of CO2 emission reductions compared to EPA’s Business-As-Usual case. U.S. Energy Information Administration (EIA) shows similar CO2 reduction in their 2016 cases when they use more realistic natural gas resource assumptions, clearly demonstrating the ability of natural gas generation to deliver significant emissions reductions.
Natural gas is clean-burning, reliable, cost-effective, and abundant. Over the past three years, actual U.S. natural gas production exceeded EIA AEO high gas resource case projections. Continued increases in reserve estimates, industry technological improvements since 2010, and the demonstrated robust production response to real market signals, make clear that reality aligns with a high natural gas resource. Most published assessments of the CPP do not reflect a resource consistent with this high resource reality. To understand the potential for natural gas utilization in the U.S., States and regions contemplating CPP implementation or generation planning must rely on assessments that reflect realistic natural gas resource assumptions.
Please see the documents below to read more about API’s modeling of EPA’s clean power plan considering a more realistic natural gas resource case.
File Size: .7 MB
File Size: .8 MB