S.J. Res. 24 – Disapproval of Existing Power Plant Rule
Noteworthy
Background: Senator Capito introduced S.J. Res. 24, a joint resolution providing for congressional disapproval under the Congressional Review Act of the Environmental Protection Agency’s final rule governing greenhouse gas emissions from existing power plants. The Environment and Public Works Committee discharged the resolution today. The resolution has 48 bipartisan cosponsors. The House Energy and Commerce Committee’s Subcommittee on Energy and Power forwarded H.J. Res. 72, an identical resolution, to the full committee by a vote of 15 to 12 on November 3, 2015.
Floor Situation: This week, the Senate is expected to conduct a roll call vote on the motion to proceed to S.J. Res. 24.
Executive Summary: The resolution disapproves the final rule published by the Environmental Protection Agency on October 23, 2015. It deems that the rule shall have no force or effect. It prohibits the rule from being reissued in substantially the same form.
Overview of the Issue
The EPA’s rule governing carbon dioxide emissions from existing power plants requires states to reduce carbon dioxide emissions from the electricity sector by 32 percent below 2005 levels over the next 15 years.
According to a September 22, 2015 Congressional Research Service report:
“In 2014, EPA proposed regulations to reduce [greenhouse gas] emissions from fossil-fueled (coal, oil, and natural gas) power plants, which EPA refers to as electric generating units (EGUs). The agency proposed standards for new EGUs in January 2014 and for existing and modified units five months later. It finalized these rules August 3, 2015. EGUs are the source of one-third of the nation’s GHG emissions, so it is difficult to envision a regulatory scheme that reduces the nation’s GHGs emissions without addressing their contribution. At the same time, affordable and reliable electric power is central to the nation’s economy and to the health and well-being of the population…
“Of the six [greenhouse] gases, carbon dioxide (CO2), produced by combustion of fossil fuels, is by far the most prevalent, accounting for 80% of annual emissions of the combined group when measured as CO2 equivalents.
“Members from both sides of the aisle, including a majority of the House in the 112th – 114th Congresses, have expressed concerns about EPA proceeding with GHG regulations that could have major economic impacts. Some argue that the case for GHG controls has not been proven. Others maintain that EPA should delay taking action until Congress more explicitly authorizes it.”
S.J. Res. 23 was filed under the Congressional Review Act. This statute provides fast-track procedures for Senate consideration. Most notably, it cannot be filibustered, enabling passage by two simple majority votes – first on the motion to proceed, then on final passage. If the motion to proceed is agreed to, the resolution of disapproval is subject to a maximum of ten hours of debate before a vote on final passage. Amendments are not permitted. If the Senate and House pass these resolutions, and if the president signs them into law, the CO2 rules will not take effect and cannot be issued in “substantially the same form” as the disapproved rules.
Considerations on the Resolution
The CO2 rule for existing power plants is designed to shut down existing coal-fired power plants by requiring states to reduce carbon dioxide emissions from the electricity sector by 32 percent below 2005 levels over the next 15 years. The rule cuts coal, which today provides about 39 percent of the nation’s electricity. It relies heavily on renewables, which currently only provide 5 percent of energy despite significant investments by federal and state taxpayers. It eliminates the move toward natural gas that has supported a manufacturing renaissance and created thousands of jobs across the country.
This month, a NERA Economic Consulting study concluded that all of the lower 48 states will experience higher electricity prices under the rule. Forty states could experience double-digit electricity price increases. The rule could reduce household spending power by $64 billion to $79 billion.
The study estimated that compliance costs will total between $220 billion and $292 billion from 2022 through 2033. That does not include potential costs for electricity transmission and distribution, and for natural gas infrastructure. The American Action Forum has predicted that the rule will eliminate 125,800 jobs across the country.
Lawsuits against the CO2 rule for existing power plants now include 106 parties. A total of 27 states have filed lawsuits against the rule in the U.S. Court of Appeals for the D.C. Circuit. That includes a lawsuit by a coalition of 24 states led by West Virginia.
Notable Bill Provisions
Joint Resolution
Resolves that “Congress disapproves the rule submitted by the Environmental Protection Agency relating to ‘Carbon Pollution Emission Guidelines for Existing Stationary Sources: Electric Utility Generating Units’ (published at 80 Fed. Reg. 64662 (October 23, 2015)), and such rule shall have no force or effect.”
Administration Position
The administration has not issued a Statement of Administration Policy at this time.
Cost
CBO has not issued a cost estimate at this time.
Amendments
Amendments are not permitted on Congressional Review Act resolutions of disapproval in the Senate.