Dive Brief:
- The White House has updated the timelines for several regulatory actions, including the release of a final carbon trading model that will give states a roadmap for compliance with the Clean Power Plan (CPP).
- Greenwire reports that the latest revision to the government's unified regulatory agenda targets August for a final carbon trading model; a preliminary model was issued last month.
- The CPP gives states choice of how to comply, and most state regulators appear to lean toward a mass-based approach for its ease of inclusion in emissions trading and the potential for more liquid markets. The agency did not indicate when it will finalize a federal implementation plan for states that do not file acceptable plans under the CPP.
Dive Insight:
The Obama administration has updated its unified regulatory agenda with Greenwire reporting that, in addition to setting the schedule for a trading model, it has answered a few questions about federal implementation plans.
Should states adhere to the government's trading model, their plans would likely be approved for CPP compliance. States which do not file a state plan will have a federal plan implemented, but EPA is still working on the specifics. The agency also said it will not finalize a federal plan for a state unless the state has explicitly said it will not comply or its plan is deficient.
States can choose a mass- or rate-based approach, the latter of which places carbon limits per MWh of energy production. A mass-based plan appears to have caught on with states, largely because it will make regional trading easier. The White House has stressed that states can band together to develop successful compliance strategies.
A growing number of studies has found regional compliance options are the most likely to save consumers money. The Southwest Power Pool, PJM Interconnection and the Midwest Intercontinental System Operator have all released analysis showing states will save billions of dollars if they work together.
