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   Congressional                                                               _____
            *Research Service
   ~~hformrng the Iegista tive debate since 1914





EPA Repeals the Clean Power Plan and

Finalizes Affordable Clean Energy Rule



Updated October 4, 2019
The U.S. Environmental Protection Agency (EPA) finalized its repeal of the Clean Power Plan (CPP) and
promulgated new emissions guidelines in the Affordable Clean Energy (ACE) rule. EPA based these
actions on its conclusion that the CPP exceeded Clean Air Act (CAA) authority by using measures that
applied to the power sector as a whole rather than measures carried out within an individual facility.
Among other things, the final ACE rule establishes efficiency improvements as the best system of
emission reduction (BSER) for existing coal-fired power plant greenhouse gas (GHG) emissions.
Stakeholder views range from agreement with EPA's interpretation of its CAA authority and its BSER
determination to legal challenges of the rule. In August 2019, some states and non-governmental
organizations filed petitions challenging the rule in the D.C. Circuit.
This Insight summarizes the rulemaking and discusses potential considerations for Congress.


Background

In August 2018, EPA proposed ACE in response to Executive Order (E.O.) 13783, which directed federal
agencies to review existing regulations and policies that potentially burden the development or use of
domestically produced energy resources. Under E.O. 13783, EPA reviewed the CPP, which the agency
promulgated in 2015 to limit GHG emissions from existing fossil-fueled power plants. The CPP was the
subject of ongoing litigation and never went into effect.
EPA's review concluded that the CPP exceeded EPA's statutory authority. The agency therefore proposed
repeal of the CPP in 2017 and proposed ACE to replace it in 2018.
The ACE proposal applied a narrower interpretation than the CPP of the BSER, defining it as on-site heat
rate improvements for existing coal-fired units. EPA proposed two additional actions in ACE-one to
revise the general regulations that implement CAA Section 111 (d) and another to modify an applicability
determination for New Source Review (NSR), the CAA preconstruction permitting program for new and
modified stationary sources.




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