Earlier today, President Obama officially authorized the U.S. Environmental Protection Agency (EPA) to proceed with unprecedented regulations on the emissions of carbon dioxide from power plants.
The final Clean Power Plan rule being issued by the EPA on Monday will target an almost one-third (32 percent) reduction in carbon emissions from our nation’s power plants by 2030. The rule assigns states’ reduction responsibilities based on three criteria: heat-rate improvements at coal plants; a shift from coal to natural gas use; and renewable energy. States are required to submit final implementation plans to EPA by 2018 with the rule taking effect in 2022.
There were several big changes in the final rule as compared to the proposal from last June, none of which were positive. The Administration raised the target from 30% up to 32%. The Administration also chose to now include a series of incentives that promote solar energy and wind over natural gas in the final rule, which could significantly impact the natural gas market as well.
There will likely be numerous lawsuits and other challenges from states, coal producers, and utilities to this rule as it stands to cost billions of dollars to implement, which will likely have serious consequences on the overall economy and cost jobs.
To view the rule, click here
To view the White House Fact Sheet, click here