EPA Withdraws Proposed Rules that Accompanied Clean Power Plan

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.