EPA Issues More Ambitious But Flexible Final Clean Power Plan

The Environmental Protection Agency’s (EPA’s) final Clean Power Plan will seek to tamp down the nation’s carbon dioxide (CO2) emissions from the power sector by 32% from 2005 levels by 2030—about 9% more ambitious than its original proposal. The first-ever final national standards to limit CO2 from power plants, released today—”the biggest, most important step we’ve taken to address climate change,” said President Obama—give states more time to develop and tailor plans. State plans are now due in September 2016, but states that need more time can make an initial submission and request extensions of up to two years for final plan submission. The compliance averaging period in the final rule begins in 2022 instead of 2020, and emission reductions are phased in on a gradual ‘glide path’ to 2030. According to documents released today, the Clean Power Plan is paired with a so-called “Clean Energy Incentive Program,” which is designed to drive “additional early deployment of renewable energy and low-income energy efficiency.” It will see credits for power generated from renewables in 2020 and 2021 be awarded to projects that begin construction after participating states submit their final implementation plans...more