The Clean Power Plan was an Obama administration policy aimed at combating climate change that was first proposed by the Environmental Protection Agency (EPA) in June 2014.
[13] The final version of the plan aimed to reduce carbon dioxide emissions from electrical power generation by 32 percent by 2030 relative to 2005 levels.
According to the League of Conservation Voters, in 2015, the Clean Power Plan "established the first national limits on carbon pollution from existing power plants—our nation's single largest source of the pollution fueling climate change" and was "the biggest step" the United States had "ever taken to address climate change.
In four major studies conducted on the economic impact of the CPP, findings varied widely due to the assumptions made and the variables analyzed.
M.J. Bradley & Associates rely on data from National Renewable Energy Laboratory (NREL) and reported generally optimistic findings, with large decreases in costs due to the CPP.
Lower-income households may disproportionately experience increases in expenditures due to a large share of their consumption falling into the energy-intensive category, including products and services like electricity, heating, and gasoline.
In order to combat any negative impact of the CPP, states may choose to allocate roughly 10% of their carbon pricing revenue to protect low-income communities.
[34] Furthermore, the EPA's proximity analysis concludes that a higher percentage of minority and low-income communities live near power plants when compared to the national averages, increasing risk of disease and death due to toxic particulate matter emissions and air pollution.
According to the EPA fact sheet on the Clean Power Plan, climate change is responsible for everything from stronger storms to longer droughts and increased insurance premiums, food prices and allergy seasons.
[34] As aforementioned, a major part of the Clean Power Plan's mission is to regulate and reduce greenhouse gas emissions from industry.
In his announcement, Obama stated that the plan includes the first standards on carbon dioxide emissions from power plants ever proposed by the Environmental Protection Agency.
"[21] In response to Obama's 2015 announcement, hundreds of businesses voiced support for the plan, including eBay, Nestlé, and General Mills.
[42] The 460-page rule (RIN 2060–AR33) titled "Carbon Pollution Emission Guidelines for Existing Stationary Sources: Electric Utility Generating Units" was published in the Federal Register on October 23, 2015.
24), a “Resolution of Disapproval” under the Congressional Review Act, which would have permanently blocked the Clean Power Plan and prohibited the EPA from developing “substantially similar” standards.
AFP said the Clean Power Plan would have a "devastating effect on the economy" and that the resolution would send a "clear signal to the Paris climate negotiators that President Obama's expansive green energy agenda does not have support on Capitol Hill.
[49] After the U.S. Supreme Court in King v. Burwell upheld the Affordable Care Act on June 25, 2015, however, the EPA adopted a more aggressive statutory interpretation.
[48] Peabody Energy hired Laurence Tribe, President Obama's mentor at Harvard Law School, to author a brief which was later acclaimed on the Senate floor.
"[52] Challengers argue that EPA overstepped its legal authority in issuing the CPP, in regards to the power plants covered by the plan, and that the scope of the "building blocks" for action goes beyond standards applied to specific electric generating units, as called for by the Clean Air Act.
[53] Eighteen states (California, Connecticut, Delaware, Hawaii, Illinois, Iowa, Maine, Maryland, Massachusetts, Minnesota, New Hampshire, New Mexico, New York, Oregon, Rhode Island, Vermont, Virginia and Washington) have joined the litigation in support of the EPA's plan.
[56] As of July 2016, several states – including Republican-held ones such as Wyoming, South Carolina, Virginia, Arizona, Idaho, and New Jersey – are moving forward to meet the Plan's requirements although sometimes indirectly, regardless of open opposition.
[7] President Donald Trump's proposed 2018 United States federal budget defunded the Clean Power Plan.
[60] On March 28, 2017, President Trump signed an executive order directing EPA Administrator Scott Pruitt to review the Clean Power Plan.
[64] Because the Clean Power Plan was a significant part of how the United States intended to meet the emission targets it set for the Paris Agreement, this action may discourage other countries from upholding their own commitments.
[65] Janet McCabe, an Obama Administration EPA department head, stated that the decision completely disregards the impacts of climate and the cost and benefits associated with the started programs.
According to her it will lead to several more years of uncertainty and potentially lost opportunity as well as a worsening public image of the United States internationally.
[68] Likewise, The Washington Post and CNN reported that the EPA would repeal the plan and limit the alternatives to advice for local utilities on October 10.
[69][70][71] Then-EPA Administrator Scott Pruitt signed a proposed rule to repeal the Clean Power Plan on that day.
[73] The EPA held a hearing, titled, "Proposal to Repeal the Clean Power Plan", on Nov. 28–29, 2017 in Charleston, West Virginia.