U.S. Environmental Protection Agency has proposed regulations
covering new coal-fired power plant greenhouse gas emissions, a
move that will increase energy costs for steel producers and
manufacturers, Ross Eisenberg, vice president of energy and
resources policy at the National Association of Manufacturers,
"Energy starts going
up when you have to take things down and build new things," he
said at the American Wire Producers Association meeting last
week in Washington. "We are not saying dont do anything
about climate change. We are saying this is not a good way to
proposed limits on carbon emissions from new coal-fired power
plants is 1,100 pounds of carbon dioxide per megawatt hour,
while new small natural gas-fired turbines would need to meet a
limit of 1,000 pounds of carbon dioxide. That compares with
1,700 pounds of carbon emissions at the most efficient and
cleanest coal-powered plants that exist today, Eisenberg
Coal power generates
about 40 percent of the electricity in the United States,
making it a crucial power source that impacts steelmakers
"It will set
completely unreasonable and unfeasible standards for coal-fired
power plants," Eisenberg said. "This obviously impacts your
cost of energy."
The proposed rules
would apply only to new coal-fired power plants, but the EPA is
set to issue standards for existing plants June 1, 2014, he
said, which would increase costs for all U.S. manufacturers.
The proposed regulations, released Sept. 20, will likely set a
strong precedent for future emissions limits.
The EPA has cited a
plant in Mississippi that will partially capture and sequester
65 percent of carbon dioxide as a model, but the plant is $2
billion over costs, Eisenberg said.
announced his plan to reduce carbon emissions from coal-fired
power plants in a speech earlier this year. The American Iron
and Steel Institute protested at the time, saying the plan
would increase costs for manufacturers.
"Were seeing a
lot of companies, particularly energy intensive ones, move back
to the states," Eisenberg said. "But at the same time, we have
this dysfunction where you have environmental regulations
pushing the other way."
There will be a 60-day
comment period on the proposal following publication in the