EPA Withdraws Proposed Rules that Accompanied Clean Power Plan

Date: April 3rd, 2017

Explanation: Regulatory action

Agencies: EPA

The Environmental Protection Agency (EPA) withdrew two proposed rules that would have supplemented the Clean Power Plan final rule and provided support for the development of state plans to reduce greenhouse gas emissions from existing power plants:

1 –  Federal Plan Requirements for Greenhouse Gas Emissions From Electric Utility Generating Units Constructed on or Before January 8, 2014; Model Trading Rules; Amendments to Framework Regulations, 80 Fed. Reg. 64966 (Oct. 23, 2015):  This rule would have established two types of federal implementation plans that could take effect where states failed to submit satisfactory plans for Clean Power Plan compliance – a rate-based emission trading program and a mass-based emission trading program. Both types of plans were also presented as model trading rules that states could adopt or tailor for implementation within their energy sector. The rule would have thus created a clear pathway for compliance with the Clean Power Plan.

2 – Clean Energy Incentive Program Design Details, 81 Fed. Reg. 42940 (June 30, 2016): This Clean Energy Incentive Program (CEIP) was originally established in the Clean Power Plan final rule to provide a mechanism whereby states could incentivize early investments in renewable energy and energy efficiency projects in low-income communities (and receive credit for these investments in their compliance plans). This rule would have established parameters for CEIP participation and implementation. For example, it would have established limits on the number of allowances or emission rate credits (ERCs) that could be allocated or issued by a state to a CEIP-eligible project per MWh generated or saved.

Carbon Pollution Emission Guidelines for Existing Stationary Sources: Electric Utility Generating Units

President Obama and EPA announced the final Clean Power Plan rule on August 3, 2015. The rule aims to reduce CO2 emissions from existing power plants by 30% below 2005 levels by 2030. To accomplish this, the rule establishes CO2 emission performance rates representing the best system of emission reduction (BSER) for fossil fuel-fired electric utility steam generating units and stationary combustion turbines within each state. States have the flexibility to reach these targets individually or at the regional scale, and to translate the rate-based targets into mass-based targets for compliance purposes. The rule also establishes guidelines for the development, submittal and implementation of state plans to achieve the CO2 emission performance rates.

Rule Documents:

Associated Rule Proposals:

Litigation: 

Industry groups and states immediately challenged the final rule in West Virginia v. EPA, No.15-1363 (D.C. Cir. 2015).  In February 2016, the U.S. Supreme Court stayed the Clean Power Plan pending review in the D.C. Circuit Court of Appeals. In January 2017, State opponents of the EPA’s Clean Power Plan filed a petition for a new lawsuit, asking the D.C. Circuit Court of Appeals to review EPA’s denial of requests for reconsideration of the rule (which were filed after the rule was finalized but before the Supreme Court stayed its implementation).

On April 4, 2017, EPA  submitted a motion to hold the case in abeyance  pending it’s reconsideration of the rule. On April 28, the court granted EPA’s request and ordered a 60-day stay of the litigation as well as supplemental briefings on whether the case should be remanded to the agency rather than held in abeyance. On August 8, the court issued an order prolonging the stay for another 60 days. On November 9, the court indicated that the stay would remain in effect for an additional 60 days.

Deregulatory Actions: 

On March 28, 2017, President Trump issued an executive order directing EPA to review the Clean Power Plan and to rescind or rewrite the rule as needed to promote the President’s goals of energy independence and economic growth. EPA immediately submitted a request to the D.C. Circuit Court of Appeals to hold the case in abeyance pending EPA’s reconsideration of the rule. On April 4, 2017, EPA published a notice in the Federal Register announcing that it is reviewing and, if appropriate will initiate proceedings to suspend, revise or rescind the rule.

The March 2017 executive order also directed EPA to review and rescind or re-write the proposed rule establishing federal implementation plans and model trading rules. On April 3, 2017, EPA officially withdrew that rule proposal as well as the rule proposal establishing details for the Clean Energy Incentive Program (CEIP).

On October 16, 2017, EPA published a proposal to repeal the Clean Power Plan. EPA did not specify whether it would promulgate a new rule, under section 111(d) of the CAA, to regulate carbon dioxide emissions from existing power plants.

On November 8, 2017, EPA announced that it was extending the comment deadline for the proposed repeal by 32 days to January 16, 2018.

OnDecember 28, 2017, EPA issued an advanced notice of proposed rulemaking to replace the Clean Power Plan in which it solicited comment on what the EPA should include in a potential new rule to regulate GHG emissions from existing power plants under CAA section 111(d).

Effects of Staying and Possibly Rescinding the Plan: If implemented, the Clean Power Plan would reduce carbon pollution from the power sector by 32% in 2030, amounting to 870 million tons less carbon pollution, the equivalent of taking 166 million cars off the road for a year. Climate and public health benefits would reach between $34 and $54 billion annually by 2030 and reduced emissions of toxic air pollutants such as sulfur dioxide would have resulted in the prevention of over 1,500 premature deaths annually. Learn more>>

Additional Clean Power Plan Resources

Fact Sheets:

Technical Support Documents:

Resources for States:

Additional Resources: