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On April 4, 2017, the EPA announced it is reviewing the Clean Power Plan (CPP), found at 40 CFR part 60, subpart UUUU. This action proposes to withdraw the CPP on grounds that it exceeds the statutory authority provided under section 111 of the Clean Air Act.

Statement of Need:

The EPA has conducted its initial review of the CPP, as directed by Executive Order 13783, and has concluded that suspension, revision, or rescission of [the CPP] may be appropriate on the basis of the agency’s proposed reinterpretation of the statutory provisions underlying the CPP.

Summary of the Legal Basis:

The EPA proposes to return to a reading of CAA section 111(a)(1) (and its constituent term, best system of emission reduction) as being limited to emission reduction measures that can be applied to or at an individual stationary source. The EPA believes that this interpretation is consistent with the CAA’s text, context, structure, purpose, and legislative history, as well as with the Agency’s historical understanding and exercise of its statutory authority.

Alternatives:

Not yet determined.

Anticipated Costs and Benefits:

Repealing the CPP could lead to up to $33 billion dollars in avoided compliance costs in 2030. EPA presents a wide range of analysis scenarios meant to address numerous concerns and uncertainties associated with the previous approach to analyzing costs and benefits in the Clean Power Plan.

Risks:

The CPP as originally finalized raised concerns that it would necessitate changes to a state’s energy policy, such as a grid-wide shift from coal-fired to natural gas-fired generation, and from fossil fuel-fired generation to renewable generation and that it exceeded the agency’s statutory authority.