TRAVERSE CITY, Mich. (AP) — Michigan must quicken its
pace at developing renewable power sources such as wind while becoming
more efficient with energy to meet requirements outlined Monday by the
Obama administration for reducing carbon dioxide emissions from
coal-fired electric plants.
A plan drafted by the U.S.
Environmental Protection Agency would require Michigan to reduce carbon
output by 31.5 percent from 2012 levels, when its utilities pumped 63
million metric tons into the atmosphere — 11th highest among the states.
Coal-fired power plants are the leading source of greenhouse gases
pushing the climate toward warming that scientists say could produce
catastrophic damage.
Coal is the primary fuel for electricity in
Michigan, as in neighboring states in the industrial Midwest. Michigan
gets 49 percent of its power from coal, 26 percent from nuclear plants
and 20 percent from natural gas.
Even so, state regulators and
power companies acknowledge the need for change. Many coal-fired plants
are being phased out, and Republican Gov. Rick Snyder announced a
"no-regrets" energy policy last December that included less reliance on
coal and greater use of natural gas and renewables.
"Unlike a lot
of states that just come out of the chute in opposition to this, we
support the goal" of the Obama plan, said Dan Wyant, director of the
Michigan Department of Environmental Quality. "That’s good for the
environment and long-term good for Michigan. Yet we need the flexibility
and timeliness to make a smooth transition. We do not want to put
Michigan ratepayers and businesses at a competitive disadvantage
compared to other states."
He said the department was awaiting
more detail about how the rule would work, including deadlines and how
much credit Michigan would receive for greenhouse gas reductions already
achieved. Until then, he said it was unclear how big a challenge the
plan would pose or what it might cost ratepayers.
EPA estimates
that about 6 percent of emission reductions could be achieved through
greater efficiency at coal-fired plants. Other means include using less
coal, greater reliance on renewables and reducing consumer demand.
Michigan
law requires utilities to produce 10 percent of their power from
renewable sources by the end of 2015. Voters rejected a ballot
initiative two years ago pushed by environmental groups that called for a
25 percent requirement by 2025, which opponents said would boost
electric bills.
Wind farms have proven unpopular in some
locations, where nearby residents complain that turbines are noisy and
cause health problems. Proposals to locate them offshore in the Great
Lakes have stirred objections about marring views.
Those hurdles
illustrate how difficult it may be to achieve the EPA goal, which is
certain to be a political target as well. Terri Lynn Land, the likely
Republican nominee in the battle for the U.S. Senate seat being vacated
by Democrat Carl Levin, labeled the rule part of an Obama administration
"war on Michigan."
But reaction from state officials and
businesses — including Consumers Energy and DTE Energy, Michigan’s two
top electricity providers — was cautious.
Consumers announced
plans this year to retire its seven oldest coal-burning plants by 2016.
The utility also is constructing its second wind park. Spokesman Dan
Bishop said Consumers will study the EPA rule but intends to cut carbon
emissions 20 percent by 2025.
DTE has spent nearly $2 billion on
emissions control equipment at its Monroe Power Plant in southeastern
Michigan, the third-largest coal-fired generator in North America, and a
similar amount on renewable projects, spokesman Alejandro Bodipo-Memba
said.
"We know that coal will continue to be an important fuel for
energy production," he said, adding that the company will continue
reducing carbon pollution and retiring older coal plants while working
with EPA and state officials on a plan suitable for Michigan.
Jason
Geer, energy and environmental policy director for the Michigan Chamber
of Commerce, said there was "no question" the rule would cost jobs and
boost energy costs but said much depends on how much flexibility EPA
grants states for implementation.
Environmental groups roundly praised the plan.
"By
investing in clean energy, we can keep more hard-earned dollars cycling
through Michigan’s economy instead of sending it to other states," said
Jim Dulzo, energy policy adviser with the Michigan Land Use Institute.