MemoMemorandumObama · D

Presidential Memorandum

Power Sector Carbon Pollution Standards

President Obama directed the EPA to develop and issue carbon pollution standards for power plants, including new plants (with a new proposal due by September 20, 2013) and existing/modified/reconstructed plants (proposed by June 1, 2014, final by June 1, 2015, with state implementation plans due June 30, 2016). The memorandum emphasized flexible, market-based approaches and collaboration with states, industry, and other stakeholders.

Impact dates

  1. State implementation plans for existing power plants under section 111(d)

  2. Proposed standards, regulations, or guidelines for modified, reconstructed, and existing power plants

  3. New proposal for future power plant carbon pollution standards

Key directives

  • Issue new proposal for future power plant standards by September 20, 2013
  • Issue final rule for future power plants after public comment
  • Use Clean Air Act sections 111(b) and 111(d) authority for existing/modified/reconstructed plant standards
  • Issue proposed standards for existing/modified/reconstructed plants by June 1, 2014
  • Issue final standards for existing/modified/reconstructed plants by June 1, 2015
  • Require state implementation plans by June 30, 2016
  • Engage states, power sector, labor, NGOs, tribal officials, and public
  • Tailor regulations to reduce costs
  • Allow market-based instruments and performance standards
  • Ensure continued reliance on range of energy sources and technologies
  • Ensure reliable and affordable electric power
  • Work with DOE on cleaner technologies and energy efficiency

Who is ordered

Timeline

Immediate

  • EPA directed to issue new proposal for future power plants
  • EPA directed to begin developing standards for existing/modified/reconstructed plants

Near term (90d)

  • New proposal for future power plants due by September 20, 2013

Long term

  • Proposed standards for existing/modified/reconstructed plants by June 1, 2014
  • Final standards for existing/modified/reconstructed plants by June 1, 2015
  • State implementation plans due by June 30, 2016

Risks & tensions

  • Tight timeline for new proposal (87 days) may strain regulatory capacity
  • Balancing state flexibility with federal standards creates federalism tension
  • Market-based approaches vs. performance standards may generate industry disputes
  • Reliability and affordability mandates may conflict with aggressive carbon reduction targets
  • Clean coal technology inclusion may satisfy some stakeholders while disappointing environmental advocates
  • Legal challenges to Clean Air Act authority likely
Presidential Memorandum: Power Sector Carbon Pollution Standards · Executive Orders