Citing “immediate risks” to national security, public health, and the economy, the Obama Administration adopted ambitious regulations and policies to implement its Clean Power Plan, establishing the first ever national standards to limit greenhouse gas (GHG) emissions from existing power plants. The final rule, issued by the U.S. Environmental Protection Agency (EPA) on August 3, 2015, requires states to reduce carbon emissions from power plants 32 percent below 2005 levels by 2030. If fully implemented, the rule will have significant implications for how energy is generated, transmitted, and consumed in the United States.

EPA’s proposed rule faced withering criticism on legal and policy grounds by the coal industry, various states, market participants, and others. Certain of EPA’s modifications from the proposed to the final rule appear to be a well-orchestrated attempt to shore up the agency’s legal defenses in the face of an anticipated fusillade of legal challenges. At the same time, the final rule makes certain emission reduction requirements more stringent.