Citizens Action Coalition Education Fund

Unlike other air emissions, carbon dioxide emissions from coal-fired power plants are not currently regulated in the United States, meaning there is no limitation, nor cost to power plants, for releasing CO2 into the atmosphere. However, this will likely change in the very near future. Most developed nations have responded to the overwhelming evidence linking greenhouse gas emissions to global warming by ratifying the Kyoto Protocol, which requires them to reduce their CO2 emissions. The United States has thus far failed to do so, but as the world’s largest emitter of greenhouse gases, it is under increasing international pressure to act.

"It is now virtually inevitable that America will adopt a federal law limiting global warming pollution from power plants. Indeed, given the momentum of emerging policy responses to global warming on the local, state and regional levels in the United States (as well as internationally), federal legislation will probably be adopted within the next five years."

"It is widely expected that future CO2 regulations will take the form of a 'cap-and-trade' system, similar to the national law for controlling sulfur dioxide (SO2) emissions that cause acid rain. Such a system would establish a national cap on CO2 emissions, and power plant operators would have to own an ‘allowance’ for each ton of CO2 they emit. Operators could buy and sell these allowances for a price established by market forces. Economists believe such a cap-and-trade system would provide the flexibility and incentives to meet a given CO2 cap at the lowest cost."

Despite its advantages over traditional coal-fired electric generation, at present IGCC electric generation is an imperfect solution to the global warming crisis because:

• Without incorporating carbon capture and sequestration technology into the design, new IGCC plants will increase the level of greenhouse gas emissions significantly – an average of 4 million tons of CO2 per plant per year – beyond current, unacceptable levels.


• Indiana residents already face significant rate increases with impending CO2 regulations, as 95% of our electricity comes from coal-fired power plants, and any regulatory scheme is likely to pass these costs onto ratepayers. New electric generating plants that emit more CO2 into the atmosphere will only add to these costs.


• Retrofitting a conventional coal plant with carbon capture and storage technology is itself costly – it is estimated to increase the cost of electricity from the plant by at least 68%.


• Retrofitting an IGCC plant with carbon capture and storage technology is also significant – it is estimated to increase the cost of electricity from the plant by at least 30%.


• In view of the significant costs associated with carbon capture and storage, and the fact that its commercial viability is unknown and still 15 years away, it is imprudent to invest in IGCC technology when less expensive, and cleaner, technologies, such as renewable electricity resources, are available to meet any short term growth in electric demand.

• Freese, Barbara; Clemmer, Steve, Union of Concerned Scientists, Gambling with Coal: How Future Climate Laws Will Make New Coal Power Plants More Expensive, p. 1 (September, 2006).
• Testimony of James E. Rogers, Volume I-Petitioner’s Case-In-Chief, IURC Cause No. 43114, p. 12-13 (October 24, 2006).