Larson: Inflation Reduction Act tax credits are politically durable
John Larson · Unpacking EPA’s newly proposed power emissions rule · May 18, 2023 · at 38:08
Rhodium Group partner John Larson discusses the interaction between EPA power plant regulations and the long-term tax credits available under the Inflation Reduction Act.
0:00 / 0:11exact quote · 11.1s
720p mp4 · rendered on demand · StarZero watermark
“Like, you know, those rules are in place, those reg sorry, incentives are in there for 10 years, and although Congress has tried to repeal them, they're pretty, you know, politically durable.”
quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →
More from John Larson
EPA rule mandates 90% CCS or 96% hydrogen for large gas units
“The basics are the really big plants, meaning 300 megawatt nameplate units or larger, running at 50% capacity factor or more, need to meet a Standard equal to carbon, 90% carbon capture by 2035, or 96% hydrogen co-firing by 2038.”
Larson expects gas plant capacity factors to plummet by the mid-2030s
“We see that going down into, like, the twenties. Because wind and solar are coming on at such huge volumes in their variables. So you're running these gas plants in a much different way by the mid-twenty-thirties.”
Larson: Most gas plants will reduce capacity factors instead of installing CCS
“Most of the gas is just going to ramp down instead of installing carbon capture.”
Larson: EPA power plant rule poses very low risk to grid reliability
“Just the fact that peakers and you know, load following combined cycle units aren't touched at all says to me that that, that should be a very, very low concern, right, from a reliability perspective, because you've, all the stuff you're using to balance on th…”
Larson: EPA power plant rule faces immediate lawsuits and Supreme Court challenge
“And then as soon as that's in the federal register, then the lawsuits are going to start Flying. And they will presume they all, almost all will go to the D.C. Circuit, which will then eventually, you know, one, everybody expects something, some challenge on t…”
Larson says Trump power plant rules achieved almost no pollution reduction
“There's a little detour in between where the Trump administration revoked the Clean Power Plan and tried a different approach, which was basically like, we're only going to regulate
[637] John Larson: New and existing plants through efficiency improvements wh…”