American Coal - Issue 2, 2015 - (Page 39)

The Final Clean Power Plan EPA's Carbon IRP Process, State Plan Options and Implications for 2016 State Legislative Sessions By Raymond L. Gifford, Gregory E. Sopkin and Matthew S. Larson The Environmental Protection Agency (EPA) renovated the final Clean Power Plan rule in August, sparking discussion of changed Building Blocks, new emission targets, state-based and national cap-and-trade, "just say no," and lots of number-crunching by environmental and utility attorneys ill-equipped to handle such complicated equations. Deep in the 1,500 pages of the final rule is what the final rule means for state policymakers and legislators in upcoming 2016 sessions. Because even EPA concedes that this state legislation will be necessary to implement the final rule in many instances, the upcoming legislative sessions will be crucial for how the rule gets treated in the states.1 Background: EPA's national carbon resource planning Integrated resource planning is historically done by state utility commissions, which oversee and ultimately approve integrated resource plans (IRPs) submitted by regulated utilities. In wholesale market regions, "planning" is done by the market and demand for electricity in the given region. In many states, the process of resource planning involves months of administrative litigation, including discovery and live hearings, to craft plans suited to the utility in question and with express consideration of costs to customers and system reliability. Environmental regulators, with a few limited exceptions2, are not involved in the IRP process in any material way. Superseding the traditional authority of state utility commissions, EPA candidly engages in a national resource planning process to craft the final rule and determine the "best system of emission reduction," the operative legal standard under Section 111(d) of the Clean Air Act.3 At a high-level, EPA conducted an extensive review of the actions of utilities in their specific IRP contexts and used them to formulate a nationwide "Carbon IRP." This Carbon IRP gives rise to stringent emission standards for coalfueled power plants and natural gas combined cycle units under the final rule, and the ultimate result of EPA's Carbon IRP is a final rule that is far more punitive on coal-centric states ➤ | Issue 2 2015 | American Coal * 39

Table of Contents for the Digital Edition of American Coal - Issue 2, 2015

Editor’s Note
Coal Buzz
From the President
From the CEO
ACC Membership Has Benefits
ACC Welcomes its New Members!!
ACC Champion, Patron and Advocate Sponsors
ACC Event Dates
ACC Vision and Mission Statement
2015 ACC Board of Directors
ACC Member Companies
ACC Committee Updates
Coal’s Place in the Energy and Electricity Space
Fossil Fuel Producers Must Begin to Work Together
The EPA’s Proposed Ground Ozone Standard
The Final Clean Power Plan
Long-term Thermal Coal Markets
Seaborne Thermal Coal – The Next Bull Market
EPA’s Clean Power Plan Does Not Deserve Judicial Respect
Using Coal Futures to Manage Uncertainty
Index to Advertisers

American Coal - Issue 2, 2015