Responding to over 4 million comments received on its June 2014 proposed rule, the United States Environmental Protection Agency (EPA) has made changes to its controversial plan to regulate carbon dioxide (CO2) emissions from existing fossil fuel-fired power plants—the Agency’s “Clean Power Plan,” which it released August 3, 2015. While some changes may ease implementation for the 49 states subject to the rule, the final rule arguably retains certain vulnerabilities and legal challenges are expected. Even as it moves forward with this rulemaking, EPA’s enforcement arm continues to pursue the Administration’s carbon strategy through its national enforcement initiative aimed at the power sector, securing commitments to reduce CO2 emissions by shutting down coal-fired boilers or repowering them to combust natural gas, as well as investments in renewable energy.

Overview of the Final Rule -

Pursuant to Section 111(d) of the Clean Air Act, EPA’s Clean Power Plan establishes final statewide CO2 emission standards for existing fossil fuel-fired electric generating units that will reduce CO2 emissions by 32% as measured from a 2005 baseline. The rule specifies state goals in three forms: a rate-based goal measured in lbs/MWh, and two mass-based goals measured in total short tons of CO2. The rule also specifies interim performance rates, which are to be achieved from 2022 through 2029, with the final rate effective in 2030.