Dive Brief:
- In a move that could affect utilities, the Department of Energy upheld the use of an updated measure of the social cost of carbon emissions, a measure used in rulemaking decisions.
- The Landmark Legal Foundation, a conservative group, had asked DOE to reverse itself on new conservation standards for microwave ovens that were partly justified based on the carbon cost estimate.
- Several gas and electric companies as well as trade groups supported the Landmark petition. The groups oppose the updated carbon cost estimate, which was increased this year to $35/metric ton from $21/mt. Xcel Energy, Koch Industries, Edison Electric Institute, PEPCO, Southern Company and Duke Energy are some of the companies and organizations that have lobbied against the updated social costs for carbon.
Dive Insight:
The groups contend that the updated costs will make it more expensive to run coal-fired and natural gas-fired power plants. Expect to see action on the issue of the social cost of carbon in court and in Congress in 2014.