On June 2, 2014, the USEPA, under President Obama’s Climate Action Plan, proposed a plan to cut GHG emissions from power plants. The Clean Power Plan (http://www.epa.gov/cleanpowerplan) is projected to help cut GHG emissions from the power sector nationally by 30% from 2005 levels.

Power plants are the largest source of GHG emissions in the US, accounting for about one-third of all domestic GHG emissions. The proposal will also cut PM and ozone precursor emissions by an additional 25% in 2030.

Specifically, the USEPA is proposing state-specific rate-based goals for carbon dioxide emissions from the power sector, as well as guidelines for states to follow in developing plans to achieve the state-specific goals.

The proposal has two main elements: 1) state-specific emission rate-based CO2 goals and 2) guidelines for the development, submission and implementation of state plans. To set the state-specific CO2 goals, the USEPA analyzed strategies that states and utilities are already using for the power sector, such as improvements in efficiency at carbon-intensive power plants, programs that spur private investments in, low emitting and renewable power sources, and programs that help consumers use electricity more efficiently. In calculating each state’s CO2 emission reduction goal, the USEPA took into consideration the state’s fuel mix, its electricity market and other factors.

The proposed rules do not prescribe how a state should meet its goal. Each state will have the flexibility to design a program to meet its goal in a manner that reflects its particular circumstances and energy and environmental policy objectives. Each state can do so alone or can collaborate with other states on multi-state plans that may provide additional opportunities for cost savings and flexibility. The proposed rule lays out guidelines for the development and implementation of state plans.

The USEPA believes that the Clean Power Plan will lead to climate and health benefits worth an estimated $55 billion to $93 billion by 2030, including avoiding 2,700 to 6,600 premature deaths and 140,000 to 150,000 asthma attacks in children. Interested parties have 120 days to submit comments from publication in the Federal Register.

While this proposed rule affect only power plants, more future rules are likely to come to reward or mandate GHG emission reductions from other source types. Planning is needed. CCES has the experience to help your entity estimate its GHG emissions and to develop cost-saving strategies to reduce these emissions, parlaying this into many financial benefits and putting you in good shape ahead of any future rules or pressure from the public to reduce. We have successfully addressed climate change for the direct benefit of many companies. Contact us at karell@CCESworld.com or at 914-584-6720.