We analyze EPA’s novel proposal to regulate greenhouse gas emissions from existing power plants as it will shape its regulation of other industry sectors.

On June 2, 2014, EPA released its long-anticipated proposal to regulate carbon dioxide (CO2) emissions from existing power plants under Section 111(d) of the Clean Air Act (CAA). 1 EPA’s proposed Clean Power Plan (CPP) includes ambitious, mandatory CO2 reduction targets for each state, designed to achieve nationwide 30 percent CO2 emission reductions over 2005 levels by 2030. EPA has proposed a novel approach, extending regulations beyond the stationary source itself, which is where EPA has traditionally confined its authority. This rulemaking will set the stage for future greenhouse gas regulations in other industry sectors.