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API Statement on Reported Revisions to EPA Power Plant Rule

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WASHINGTON, February 29, 2024 — The American Petroleum Institute (API) released the following statement today from API Senior Vice President of Policy, Economics and Regulatory Affairs Dustin Meyer in response to an announcement from Environmental Protection Agency (EPA) Administrator Michael Regan that existing natural gas power plants will not be included in the administration’s upcoming power plant rule:

“API welcomes EPA’s recognition of the critical role natural gas plays in maintaining electric grid reliability. The reported amendments to the proposed rule come at a time of rapid demand growth, with utilities and grid operators across the country reiterating the urgent need for reliable, dispatchable power supply. Natural gas is the backbone of U.S. electricity generation, complementing renewables and advancing innovations like carbon capture and hydrogen to further reduce greenhouse gas emissions. API will continue to work with EPA and other policymakers to ensure the outsized role of natural gas is recognized as part of commonsense policies that keep the lights on for American families and businesses.”

EPA’s announcement comes as many utilities have concerns about the reliability of America’s electric grid, especially as utilities continue to phase out coal-fired power generation. The North American Electric Reliability Corporation’s (NERC) long-term outlook found that power demand is growing at its fastest pace in 30 years but warned that supply is failing to meet this record demand. Without policies to bring new resources online, like permitting reform for critical energy infrastructure, the U.S. power grid could face severe reliability issues and force operators into rolling blackouts.

Natural gas is responsible for more than 40% of electricity generation in America, helping the U.S. lead the way in CO2 emissions reductions through fuel switching in the power sector and complementing variable renewable resources. The Midcontinent Independent System Operator (MISO) recently emphasized the continued need for dispatchable resources like natural gas “to keep the grid reliable every hour of the year,” but noted that operators are facing significant challenges in building new dispatchable resources thanks in part to government regulations and policies.

Amid rising U.S. electricity demand, we need an all of the above approach to America’s energy reality harness all of America’s vast energy resources, including oil and natural gas, while advancing much-needed energy infrastructure. A new national poll conducted by Ipsos shows two out of three American voters say the country is on the wrong track on energy policy, and following the administration’s recent pause on LNG export permits, the poll found nine in 10 Americans believe the U.S. should continue to supply natural gas to our allies overseas. With recent reports that the administration plans to impose a de-facto ban on new gas-powered vehicles, the poll found that the majority of Americans (75%) would oppose such regulations restricting consumer choice.<

API represents all segments of America’s natural gas and oil industry, which supports nearly 11 million U.S. jobs and is backed by a growing grassroots movement of millions of Americans. Our approximately 600 members produce, process and distribute the majority of the nation’s energy, and participate in API Energy Excellence®, which is accelerating environmental and safety progress by fostering new technologies and transparent reporting. API was formed in 1919 as a standards-setting organization and has developed more than 800 standards to enhance operational and environmental safety, efficiency and sustainability.


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