Developers have dropped plans for the White Stallion Energy Center about 90 miles southwest of Houston, signaling the end of a once heady rush to build several new coal-fired power plants across Texas.
White Stallion is the latest abandoned coal-burning project amid record low prices for natural gas and increased environmental scrutiny. The decision announced Friday means that Texans might not see another coal plant built after an 800-megawatt unit near Waco comes online in April.
The demise of the White Stallion project “hopefully represents the last dying gasp of ‘new’ coal plants in Texas proposing to employ technologies from the last century,” said Jim Marston, who leads the energy program for the Environmental Defense Fund.
Texas now has 19 coal plants, but once had plans for more. In 2005, Gov. Rick Perry issued an executive order that put their permits on the fast track, but most approved projects were never built.
The natural gas boom, driven by low prices on natural gas, is the single biggest reason why White Stallion and many other proposed coal plants were scrapped, and the main reason why there are no new coal plants on the horizon after the Waco plant was built. But that wasn’t the only factor – the Environmental Protection Agency did its job, too.
White Stallion had run afoul of new federal limits on emissions of mercury and other toxic pollutants. The project’s developers had asked the U.S. Court of Appeals for the District of Columbia Circuit to review the regulations, but the case is on hold.
The project also faced the EPA’s first-ever limits on emissions of carbon dioxide and other gases linked to global warming from new power plants.
And it did not have the support of many locals.
See here for the last update I had regarding litigation over the EPA’s regulation of greenhouse gases. As State Impact notes, White Stallion was in danger of seeing its state permit expire before getting an answer one way or another from the courts, and that would have meant needing to start over, which wasn’t going to happen. Pulling the plug was their only choice. While this is very good news for clean energy proponents, it’s not all good:
“The only downside of this shift to natural gas is that it has made the challenge for renewable energy to be competitive without subsidies even greater,” Rep. [Mark] Strama says. “Because any time that lower-priced natural gas power electricity displaces coal, for the same reason it tends to displace wind and solar. I think this story highlights again the need for a renewable strategy in Texas.”
To that end, Strama has advocated for state incentives and subsidies for more solar and coastal wind projects, which could help the state during hot summer days when demand for electricity is at its peak. He has filed legislation to that end, and is more hopeful that it stands a chance this legislative session.
“Let me put it this way,” Strama says. “We were really close in 2009 to passing meaningful legislation around renewables. [Then] we didn’t come very close in 2011. But this year feels a little more receptive to having a discussion.”
Some of what needs to be done to promote renewable energy in Texas is regulatory and not legislative, but either way there are things to do. In the meantime, let’s celebrate a win for a cleaner tomorrow. The Environmental Defense Fund has more.