Oct 22 - Knight Ridder/Tribune Business News - John G. Edwards Las Vegas Review-Journal

California is considering a rule that could affect the feasibility of coal-fired power plants in the Silver State, a top Golden State energy official said this week.

During a meeting at The Mirage with the Nevada Renewable Energy and Energy Conservation Task Force, Joseph Desmond, chairman of the California Energy Commission, late Thursday outlined alternatives under consideration for the so-called greenhouse gas performance standard.

The standard would set requirements for reducing greenhouse gas emissions from power generation plants.

The standard could affect coal-fired power plant development in Nevada and other Western states because the standard would restrict the kinds of coal-fired power plants from which California utilities could buy under long-term contracts, said Jon Wellinghoff, a Las Vegas attorney for Western Resource Advocates, an environmental organization. A power plant developer probably would need to sell at least some electricity to California utilities given the size of the state, he said.

Desmond outlined several options for reducing the impact of greenhouse gas emissions from coal-fired plants. Carbon dioxide, one of the greenhouse gases, could be sequestered or collected and stored in liquid form underground. Coal-fired plants could employ offsets, which curtail greenhouse gas production. Power from coal could be blended with biomass to reduce the impact. Another approach would be to contract for a combination wind and cleaner energy programs.

Wellinghoff concluded that "California seems committed to reduce carbon in some manner. It's going to have a very significant impact on the type of coal plants that can be built, if any, (in Nevada)."

Don Soderberg, chairman of the Public Utilities Commission, said he gets mixed messages on California's position on use of coal to generate electricity. Some people seem to accept it, but others say "no coal, no how, no way."

Desmond responded: "We get almost 20 percent of our power from coal." California recognizes the need to use a diverse mix of fuels to create electricity, Desmond added.

California wants to take a leadership role in managing energy technology, Desmond said. He spoke of developing a nondiscriminatory standard for controlling pollution from energy production. "We can't extend our jurisdiction beyond our border," Desmond said.

The California commission will hold a hearing onon the Integrated Energy Policy Report, which includes the greenhouse gas performance standard. The commission is expected to vote on adopting part or all of the report on.