ND Officials Praise SCOTUS Decision Blocking Clean Power Plan

BY KAYLA PRASEK AND MIKE NOWATZKI

North Dakota’s lignite coal industry, congressional delegation and state officials are praising a Feb. 9 U.S. Supreme Court decision blocking the Obama administration’s Clean Power Plan rules from taking effect until legal challenges are resolved.

Oral arguments for the rule’s legality in front of the D.C. Circuit Court of Appeals are set for June 2, 2016, with the final decision likely to be made by the U.S. Supreme Court, says Paul Sukut, CEO and general manager of Basin Electric Power Cooperative in Bismarck, N.D., one of the petitioners who filed the motion to stay the rule.

“This is a step in the right direction,” Sukut says. “The driving force in Basin Electric’s decision to litigate the rule is the well-being of our end-use member-consumers, those who will be left paying for compliance with this rule. We are hopeful that given time, ingenuity and federal/industry partnerships, we will create a viable future for all energy sources, one that strengthens rural America, doesn’t adversely impact our members and gets us down the road with innovative and achievable solutions.”

North Dakota is one of 27 states challenging the EPA rule released last August. Attorney General Wayne Stenehjem says he is “extremely pleased” with the Supreme Court’s decision, saying the Clean Power Plan would impose a particularly severe burden on North Dakota because most electricity in the state is generated by its seven lignite coal-fired plants.

The Clean Power Plan seeks to cut carbon dioxide emissions from the nation’s power sector by 32 percent by 2030. North Dakota officials say the rule singled out the state by requiring its existing coal-fired plants to cut emissions by nearly 45 percent below 2012 levels – roughly four times more than what the EPA originally proposed in its draft rule, Stenehjem noted.

“Financially, (Basin Electric) may have to spend more than $5 billion to comply with this rule as written,” Sukut says. “These billions of dollars would simply cover adding new generation and potentially impact the operations of our existing facilities. This does not even include the expense of additional electric or gas infrastructure to support new generation.”

Lignite Energy Council President and CEO Jason Bohrer, who has warned that the rule will shutter some coal-fired plants, calls the high court’s decision “welcome relief” to the coal industry but says the “true winners” are consumers who rely on affordable and reliable electricity.

“The EPA ignored our comments and suggestions about how to craft a carbon dioxide rule that could work for North Dakota and instead produced a flawed proposal that would have put our prosperity at risk,” he says.

Basin Electric’s year-end 2015 generation mix was 54.6 percent coal. “We have long acknowledged that we are moving to a carbon-constrained future,” Sukut says. “Over the last decade, Basin Electric and our membership have taken a leadership role in the development of renewable generation. We’ve added close to 1,000 megawatts of wind generation to our system, invested more than $1 billion in natural gas resources and have invested more than $1.5 billion in emissions control technology to make our already clean generation fleet even cleaner. Even more, our Dakota Gasification Co.’s Great Plains Synfuels Plant is home to the world’s largest carbon capture and sequestration project, capturing more than 30 million tons of carbon dioxide.”

The Clean Power Plan gives no credit to companies who have already undertaken initiatives like these, Sukut says. “We believe there is a better way, one where we can pursue technological innovations while protecting our rural consumers from senseless rate increases. We must do better for our people, and we are hopeful the justice system will take our arguments into account and rural America will prevail.”

North Dakota Public Service Commission chairwoman

Julie Fedorchak says the Supreme Court’s 5-4 decision is good news that will allow the process to work through the courts before utilities regulated by the PSC have to make changes.

“I think it really allows everybody to step back and consider what the EPA has proposed,” she says.

Members of the state’s congressional delegation have supported legislative efforts to thwart the rule, and Republican U.S. Sen. John Hoeven called the court’s decision “logical and welcome.

“Clearly, the cost to coal companies and utilities to comply would be crippling and costly to consumers,” he says in a statement.

With coal providing 80 percent of North Dakota’s electricity and supporting 13,000 jobs, U.S. Sen. Heidi Heitkamp, D-N.D., says it’s “irresponsible to put policies in place that don’t provide a viable path forward for coal.” Rep. Kevin Cramer, R-N.D., says Obama’s agenda “jeopardizes our state’s and our nation’s economic future.”

Nowatzki is a reporter for Forum News Service, which is a media partner of Prairie Business. PB

Kayla Prasek Staff Writer, Prairie Business 701.780.1187