|EPA Proposes Model Federal Plan for Clean Power Plan|
On August 3, in addition to releasing the final Clean Power Plan (CPP), EPA also proposed a federal plan to limit CO2 emissions from power plants for states that do not submit approvable CPP implementation plans. The proposal, which will be open for comment for 90 days once it is published in the Federal Register, includes both a rate-based trading federal plan and a mass-based trading federal plan. EPA has indicated that it intends to finalize only one of those approaches and has requested comment on the issue.
To avoid a federal plan, the CPP requires states to submit an approvable implementation plan or a request for a two-year extension by September 6, 2016. States granted an extension would have until September 6, 2018 to submit a plan. Even if a federal plan is imposed, EPA has proposed flexibilities to help states retain some control over plan implementation. For example, states may choose to accept the delegation of some administrative authorities or submit partial state plans to implement parts of the federal program. States may also adopt complementary measures outside the plan to aid with compliance and cost reductions. Further, the proposed plan includes pathways for states to exit the federal plan if they submit one of their own.
The proposal includes both rate- and mass-based model trading language for states to consider in their state CPP plans. The model trading language also includes stand-alone modules addressing evaluation, measurement and verification procedures states can use to create emission rate credits that affected sources can trade and/or count toward compliance. If adopted by a state, EPA proposed that the language would be presumptively approvable. Beyond the proposed federal plans and model plans, the proposal also includes changes to the framework 111(d) regulations at 40 C.F.R. part 60, subpart B. These changes include, among others, new procedures for the submittal and approval of partial state plans, a process allowing EPA to notify states of the need for plan revisions and completeness criteria for state plan submittals. For more information, go to http://www2.epa.gov/cleanpowerplan/clean-power-plan-existing-power-plants#federal-plan.