On August 3, 2015, the U.S. Environmental Protection Agency (EPA) unveiled the Clean Power Plan, through which the EPA, for the first time, seeks to reduce greenhouse gas emissions from existing power utilities, and which presents challenges to the states and the energy sector in determining what they need to do to comply with this new plan. Through the final rule –published in the Federal Register at 40 C.F.R. Part 60 – EPA seeks to reduce carbon dioxide emissions from power plants by as much as 32% below 2005 levels by 2030. Moreover, the EPA says that over that same time period emissions of sulfur dioxide and nitrogen oxides will fall by 90% and 72%, respectively, as a result of the Clean Power Plan.
Pursuant to its authority under the Clean Air Act, the EPA is proposing rules to regulate greenhouse gas emission from fossil-fuel-fired electric power plants, such as fossil-fuel electric utility steam generating units and stationary combustion turbines. For existing power plants, implementing the changes necessary to meet the new EPA-driven goals will undoubtedly seem daunting. Those in the utility power sector are not without options. EPA will provide flexibility to states and utilities who comply with the new rules. For example, power plants can expand renewable energy programs or nuclear energy programs, enact carbon pricing or switch from coal to natural gas. The EPA maintains that the changes should not compromise the reliability of our nation’s electric infrastructure, nor will the changes make electricity less affordable for consumers.
The final rule can be reviewed in on the EPA’s website at: http://www.epa.gov/airquality/cpp/cpp-final-rule.pdf
Corporations Must Stay Up to Date as New State Regulations Will be Proposed to Comply with the EPA’s Plans
States, as co-regulators, will be charged with the task of developing individual action plans to meet the guidelines for carbon dioxide emission rate reductions, which will also apply to new, modified and reconstructed power plants. While the states are required to submit initial plans in September of 2016, the EPA will grant extensions of up to two years. For those states that fail to submit an action plan, the EPA maintains it has crafted a federal plan that can – and will – be enforced. Implementation must begin by 2022 in order to satisfy the new mandate. However, utilities and states will also have until 2030 to meet the final goals of the new rules. Thus, the specific regulatory requirements at the state level for new and existing utilities may not be known for a few years.
This rule presents sweeping changes for the utility power sector. New Jersey environmental lawyers at Michelman & Bricker stay up-to-date on the changes in the Clean Air Act and state regulations and can help you understand how new rules and regulations will affect your business, and what you can do to comply with them.
New Jersey Environmental Lawyers at Michelman & Bricker, P.C. Advise Clients on All Aspects of the Clean Power Plan
Under the Clean Power Plan, power plants – both new and existing – will be held to new standards, and will be required to implement new controls and reporting requirements for carbon dioxide emissions. Whether you are a corporate client with an existing utility business or considering buying or starting a business in the energy sector seek the experienced counsel of the New Jersey environmental lawyers at Michelman & Bricker, P.C. Contact us online or call 215-557-9440 to schedule a consultation at our Cherry Hill, New Jersey office, where we advise in environmental compliance throughout the state as well as in Pennsylvania and Massachusetts.