Affordable Clean Energy Rule a major shift from Obama-era regulations

August 27th, 2018 by Dakota Software Staff

The Environmental Protection Agency recently announced plans for a major shift in its approach to regulating greenhouse gas emissions from power plants that use coal as a major fuel source. The new rules, which in essence allow individual states to set limits on emissions from such power plants using guidelines provided by the EPA, stands in sharp contrast to the central planning approach and stronger regulations previously enforced. The proposed effort, called the Affordable Clean Energy Rule, is the result of a general order from the White House to review existing regulations and policies, according to Waste 360.

Coal-fired power plants will now follow suggested emission guidelines enforced by states under a new EPA rule.

Proposed EPA power plant rule includes admissions of health issues

One aspect of the potential rule, revealed along with associated analysis in a nearly 300-page report issued by the EPA in mid-August, is the possibility of increased health concerns for Americans. The likely increase in pollutants in the environment would lead to more premature deaths, according to CBS News. The specific figure provided was a range between 470 and 1,400 premature deaths on a yearly basis by 2030.

Additional health issues mentioned in the report were an increase in exacerbated asthma cases in the U.S., with the top end of the estimate reaching 96,000 by 2030. The health problems associated with increased pollution could also lead to nearly 150,000 sick days for U.S. students and tens of thousands of missed work days for adults on a yearly basis.

The Clean Power Plan, seen as a signature decision of the Barack Obama administration, required states to follow federally mandated limits for greenhouse gas emissions from qualifying power plants. The rule was a major change in the utility industry and also faced a variety of pushback from states, professional organizations and a few labor unions. Many of those opponents viewed the rules as an overreach on the part of the EPA.

"The ACE Rule would restore the rule of law and empower states to reduce greenhouse gas emissions and provide modern, reliable and affordable energy for all Americans," said Andrew Wheeler, EPA acting administrator, in a statement. "Today's proposal provides the states and regulated community the certainty they need to continue environmental progress while fulfilling President Trump's goal of energy dominance."

CNN pointed out that the new rule is expected to draw legal challenges from a variety of groups as well, including environmental activists. The groups expected to go to court over the new rule generally support stronger, more thorough environmental regulations, but the legal challenges could create a similar situation to the CPP. A sustained court case could lead to a series of appeals and, most importantly for businesses in the utility industry, a lack of clarity on which policies to follow and to incorporate into planning for the future.