On June 2, 2014, the U.S. Environmental Protection Agency (EPA) proposed a new rule under section 111(d) of the Clean Air Act that would lower CO2 intensity from fossil-fuel generators by 2030. Instead of a single requirement, the “Clean Power Plan” outlines state-specific carbon intensity requirements (lbs CO2/MWh). If all states meet the requirements, the EPA estimates CO2 emissions from the power sector will decline 30% from 2005 levels.
The rule marks a significant departure from prior policy as this is the first time EPA is regulating CO2 emissions from existing power plants. The rule may experience dramatic changes as the EPA incorporates public comment into a final rule, stakeholders challenge the rule in court, and states develop SIPs.
Bloomberg New Energy Finance Technical Summary: http://bit.ly/1pAyKa1
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