The Clean Power Plan Explained

For all of the legal questions surrounding the CPP, utilities continue their preparation to comply with the regulation. Whether in the form of the CPP or some other regulation, power plant owners are making decisions that assume carbon constraints at some point during the 20-40-year lifespan of a power plant. The lack of a clearly defined policy on this matter from the government forces utilities to assume the most stringent scenarios, making for inefficient planning.

The government needs to better define the role of the EPA, what regulations will be present in the future, and provide clarity for market participants. The CPP’s finalized rule was far from the initial proposal, surprised obligated parties, and denied stakeholders any voice in the rulemaking process. The administration’s attempt to use the Clean Air Act as a vehicle for sweeping regulation on power sources is not an effective way of developing energy policy, particularly as America transitions from energy scarcity to energy abundance.

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