EPA Proposes New Limits On Emissions From Coal-Fired Plants

A lawyer that represents utilities argues in an editorial the EPA’s Cross-state Air Pollution Rule enacted in 2011 causes lesser polluting states to subsidize some of the pollution reduction in states that emit greater volumes of harmful pollutants. The lesser polluting states also tend to have higher electricity costs and would thus be unfairly impacted by the EPA’s enforcement policy. “The EPA’s rule covers 27 states. Of those states, the 10 most-polluting pay an average electric rate of 8.6 cents per kilowatt hour (kWh), or about 20% less than the nationwide average. The 10 least-polluting states pay an average rate of 10.7 cents per kWh, or about 5% higher than the nationwide average. So, although the EPA’s approach might cost less overall, its rule will cause the lesser polluting states to subsidize the more-polluting states, even though the more-polluting states are already paying some of the lowest electric rates in the country. This seems like bad policy to me.” [Wall Street Journal]

Oil market watchers are concerned with the situation unfolding in South Sudan where roughly a quarter million barrels per day could be shut in due regional fighting. The cumulative African outages primarily from Libya (1.1 mmb/d) and Nigeria (350k b/d) surpass the incremental output from the US this year. [Financial Times]

TransCanada CEO Russ Girling is “very confident” that Keystone XL will be approved and he’s 100% sure the project would enhance energy security, create jobs and bring economic benefits to both countries. If only he and TransCanada shareholders were 100% confident in the project’s approval. [The Hill]