Yesterday, the Environmental Protection Agency announced new limits for carbon dioxide emissions from existing power plants. While limits already exist for mercury, arsenic, and a range of other pollutants, this is the first time carbon pollution from existing power plants will be regulated. The new standards are a key part of the Obama Administration’s Climate Action Plan. Supporters argue the standards will make the U.S. the world leader in clean energy production and jobs. Critics say the new standards will hurt the economy and cause manufacturers to move jobs overseas.

State-by-State Effort

The standards the EPA proposed on June 2 would set state-specific carbon rate reduction goals, with the effect of achieving a nationwide 30 percent carbon intensity reduction from 2005 levels by 2030. Each state will have its own target and develop an individual plan to achieve the reduction.

Flexibility to Meet the Standard

The EPA suggests using a combination of making fossil-fuel plants more efficient, prioritizing the lowest carbon generation, investing in low- or zero-carbon sources, and reducing overall energy demand through energy-efficiency improvements. But these are only suggestions and each state can decide what approach will be most successful for them.

Timeline

  • June-September, 2014: After the proposed standards are published in the Federal Register, the public can comment on the proposal for 120 days, which will then be reviewed by the EPA.
  • June 2015: The EPA issues the final standards, which will be followed by a second comment period.
  • June 30, 2016: States must submit an initial implementation plan. States may request a one-year extension if legislative complications prevent submission of the plan by the deadline, and a two-year extension if participating in a regional partnership.
  • 2020-2029: States must begin making meaningful progress by meeting interim targets.
  • 2030: States must meet their final carbon intensity reduction targets.

What You Can Do

Business leaders can help in the development of the final standards by submitting comments to the EPA. The EPA is holding public hearings in Atlanta, Denver, Pittsburgh, and Washington the last week of July. After the standards are finalized, businesses can help states develop their implementation plans, ensuring these plans aggressively target carbon emissions while pursuing the most cost-effective approach. Businesses can directly contribute by making energy-efficiency investments that reduce their own energy usage.