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CLEAN POWER PLAN: AN UNPRECEDENTED STAY OF THE EPA RULE SCOTTMADDEN, INC. | 26 The Supreme Court agrees to review EPA’s Clean Power Plan (or CPP), extending—for a time— uncertainty in the utility and power generation sectors about the rule’s validity and timing. Supreme Court Stay Puts Clean Power Plan in Flux • On February 9, the U.S. Supreme Court stayed enforcement of the EPA’s Clean Power Plan in a 5-4 vote. This was widely viewed as unprecedented since, until now, the Court has not stayed a rule while challenges were pending in a lower court • Some posit that the Court’s majority voted to stay the applicability of the CPP because of EPA’s “four corners” offense on MATS, effectively forcing utilities into compliance while they litigated the MATS rule’s validity • The D.C. Circuit will hear challenges to the CPP in June, with a decision widely expected by Fall 2016 and a certain appeal to the Supreme Court expected for its 2017 docket CPP Milestones vs. Potential Litigation Timing* Potential Timing of Legal Outcomes Circuit Court Case Circuit Court Decision 2016 Supreme Court Appeal and Case 2017 Supreme Court Decision 2018 2019 *All dates and timelines shown are subject to CPP litigation outcomes. 2020 2021 2022 2023 2024 2025 2026 Key Dates and Milestones (Final Rule) 2016 February 9, 2016 Supreme Court stay of Clean Power Plan June 2, 2016 Arguments scheduled for D.C. Circuit Court September 6, 2016 States submit implementation plans or request extension 2017 September 6, 2017 States with extensions submit progress report 2018 September 6, 2018 States with extension submit implementation plan 2022 January 1, 2022 Begin first interim compliance period 2025 January 1, 2025 Begin second interim compliance period 2027 2028 2029 2030 NOTES: Utility MATS is EPA’s final rule on mercury and air toxics standards for coal- and oil-fired electric utility steam generating units, issued in November 2014. 2028 January 1, 2028 Begin third interim compliance period 2030 January 1, 2030 Begin full compliance Sources: Industry news; Sidley Austin; ScottMadden analysis