US EPA moves to address power sector emissions

In June 2014, the United States Environmental Protection Agency (EPA) published its Clean Power Plan to address greenhouse gas emissions in the power sector, the first major initiative of its kind on the US federal level. The proposed rule aims to reduce emissions in the sector by about 30% by 2030 from a 2005 basis. States are given rate-based reduction goals for CO2 emissions according to their respective energy mixes; it is then up to state governments to decide on their own policy instruments to reach the goals. The targets and corresponding expected policies draw on what the EPA calls “building blocks” of process efficiency, fuel switching, renewable energy, and energy efficiency. States can also convert their targets to absolute reductions and establish their own cap-and-trade programs or join existing schemes such as RGGI or that of California. The proposed rule, which is now subject to a public comment period, is to be finalized by June 2015. States will then have to submit implementation plans by June 2016.