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EPA Proposes Greenhouse Gas Emission Limits for New Electric Generating Units

EPA Proposes Greenhouse Gas Emission Limits for New Electric Generating Units

On March 27, 2012, the Environmental Protection Agency (EPA) proposed to set a nationwide standard for emissions of carbon dioxide (CO2) from new fossil fuel electric generating units (EGUs). Under this proposed New Source Performance Standard (NSPS), new fossil fuel EGUs would be subject to a maximum CO2 emissions rate of 1,000 pounds per megawatt-hour (lb/MWh) − a rate that a new coal-fired EGU likely cannot meet without installing carbon dioxide capture technology (CCS equipment). The proposed NSPS also includes a narrowly drawn “alternative compliance option” allowing the construction of certain new coal-fired EGUs that commit to later install CCS equipment to capture and sequester CO2.

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