AG Rutledge To Intervene In EPA Clean Power Plan Lawsuit

Arkansas Attorney General Leslie Rutledge said Friday she has filed a motion to intervene in a federal lawsuit against the Environmental Protection Agency’s (EPA) proposed 111(d) rule.

The rule, also known as President Obama’s Clean Power Plan, has been the subject of controversy among power companies, alternative energy supporters and business interests since last June when the rule was proposed.

The EPA regulation would cut existing power-plant carbon emissions from 2005 levels by 30% by 2030. Currently, Arkansas environmental and utility regulators are studying the potential impact in conjunction with various stakeholders with an interest in the new rule. Eventually, a state or regional plan to try to comply with the EPA edict will be submitted.

In August 2014, a dozen states originally filed an initial lawsuit to challenge the rule. Those states include West Virginia, Alabama, Alaska, Indiana, Kansas, Louisiana, Nebraska, Ohio, Oklahoma, South Dakota, Wyoming and Kentucky. Arkansas will become the 13th state, if allowed to intervene.

Rutledge, who campaigned to “push back against federal government overreach,” said the EPA carbon rule will have a negative impact on the state.

“The EPA should withdraw this rule immediately,” she said. “Arkansas is seeking to intervene in the suit against the EPA because of the significant and costly impact it would have on the Arkansas economy and its utility ratepayers.”

The Sierra Club of Arkansas, which contends the EPA rule would be good for the environment and citizens and would accelerate alternative energy development, quickly issued a statement in response to Rutledge’s lawsuit.

“Suing the EPA might make for good politics, but it’s not good for Arkansas,” said Sierra Club state director Glen Hooks. “The EPA’s Clean Power Plan can be a boon for Arkansas’s economy if we have the courage to handle it right.”

Hooks added, “Attorney General Rutledge has a choice to make: either embrace a future with clean energy jobs for Arkansas, or hold on to the same tired and dirty system that sends $675 million dollars out of Arkansas each year to buy Wyoming coal. Sierra Club urges our elected leaders to envision an Arkansas with cleaner energy, healthier citizens, and a booming economy. We have the opportunity – all we need now is the political will to make the smart decisions.”

Americans for Prosperity Arkansas also released a statement on the request for intervention.

“All Arkansans who care about reliable, affordable, and safe energy should thank Attorney General Rutledge for standing up to President Obama’s energy power grab,” said AFP-AR State Director David Ray. “These regulations will increase the cost of electricity bills for Arkansans, drive U.S. energy and production jobs overseas, and force a reliance on less reliable sources of energy. Even worse, the cost of these regulations will hit lower-income Arkansans the hardest.”

Utility companies and state business leaders contend the new EPA rule will cause Arkansas utility bills to soar. Engineering experts have worried that the EPA rule does not take into account electricity grid reliability.

Currently, coal-fired plants still supply nearly 53% of Arkansas’ electricity demand – relying entirely on coal deliveries via railcar from Wyoming, according to U.S. Energy Information Administration.

In 2013, U.S. coal mines produced just fewer than one billion short tons of coal, the lowest output level since 1993. More than 90% of this coal was used by U.S. power plants to generate electricity, EIA statistics show.

Yet, while coal has been the largest source of electricity generation in the United States for over 60 years, its annual share of total net generation declined from nearly 50% in 2007 to 39% in 2013 as some power producers switched to more competitively priced natural gas.