Energy In-depth: McDaniel Calls For EPA Rule Withdrawal

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GOV.-ELECT HUTCHINSON, STAKEHOLDERS WEIGH IN ON EPA RULE AS DEADLINE PASSES: As the federal Environmental Protection Agency’s public comment period ended Monday on the controversial proposed rules to cut the nation’s carbon emissions, Gov.-elect Asa Hutchinson made it clear he does not plan to go along with President Obama’s far-reaching action that targets Arkansas’ fleet of coal-fired power plants.

In a letter to EPA administrator Gina McCarthy on Dec. 1, Hutchinson urged the administration to postpone the president’s so-called “Clear Power Plan,” which proposes a 30% reduction in carbon dioxide emissions from existing power plants by 2030 from 2005 levels.

Unlike current Gov. Mike Beebe, who largely remained neutral on the EPA’s new rules handed down in early June, Hutchinson is keeping his campaign promise that he will side with coal-friendly opponents who say that the Obama administration’s environmental mandate will drive up costs, reduce jobs and lower the standard of living for most Arkansans. Read more here on the subject, including a response from the EPA.

AG McDANIEL CALLS FOR EPA RULE WITHDRAWAL: Outgoing Attorney General Dustin McDaniel also had sharp words in a 12-page letter he sent to the EPA as part of the comment offering on the carbon emissions rule. McDaniel, who leaves office in January, outlined concerns about the deadlines for state plans and implementation; questions about data availability; the late response from the EPA for additional information; and concerns about enforcement.

“I therefore urge EPA to consider my comments as well as the comments submitted by other Arkansas stakeholders and to either withdraw the proposed rule or amend it to reduce the enormously disproportionate adverse impact on Arkansas,” McDaniel wrote. “Even if EPA had the authority to promulgate a rule of this breathtaking scope, the unrealistic goals imposed upon Arkansas in the proposed rule are arbitrary and unfair and they should be reconsidered.” Talk Business & Politics is working on an additional story regarding this letter and other stakeholder comments.

PSC’S HONORABLE HAS FIRST SENATE CONFIRMATION HEARING: Arkansas Public Service Commission chairwoman Colette Honorable testified before the Senate Energy Committee on Thursday, and by all accounts, is expected to sail through her full Senate confirmation hearing to be appointed to the powerful Federal Energy Regulatory Commission. The timing of that confirmation will be the bigger question. Honorable received bipartisan praise for her nomination, but a packed Senate calendar, lame-duck Congress, and scheduling conflicts will require a big effort to approve her bid. Read more on Thursday’s hearing here.

ARKANSAS NOW NATION’S FOURTH-LARGEST SHALE GAS PRODUCER: As the nation’s shale gas inventories touched an all-time high in 2013, Arkansas is now the fourth-largest shale gas producer in the U.S. behind only Texas, Louisiana and Pennsylvania, the U.S. Energy Information Administration (EIA) announced in a new report released last week. What’s been driving the production boom, how has it impacted Arkansas’ tax coffers, and what questions may threaten the good drilling news? Read our full report here.

ELECTRIC COOPS INK DEAL TO ADD MORE WIND TO ‘GREEN POWER’ ENERGY MIX: Arkansas Electric Cooperative Corp. (AECC) announced last week that it plans to add 150 megawatts of potential “green power” to its energy portfolio after reaching a long-term purchase agreement with an Oklahoma wind producer.

Already operational and providing commercial power, the deal with The Origin Wind Farm located in Murray and Carter counties in southeast Oklahoma will enhance the Arkansas cooperative’s long-term commitment to “generation diversity,” said Duane Highley, president and CEO of AECC. Read more on this energy development at this link.