In June 2013, President Obama announced an ambitious Climate Action Plan, to reduce greenhouse gas (GHG) emissions and mitigate the impacts of climate change. To implement the Plan, the United States Environmental Protection Agency (EPA) has initiated or completed a series of significant rulemakings this summer, all of which are controversial. As a capstone, President Obama is initiating numerous actions to “accelerate America’s transition to cleaner sources of energy and ways to cut energy waste.” Loan guarantees and energy efficiency grants of over $12 billion are now available to further reduce GHG emissions in the United States. Each of these actions affects the cost of energy, transportation and construction across the United States.

These actions include the following:

Clean Power Plan

• The hotly debated rule, signed August 3, 2015, sets ambitious state goals to shift generation away from existing coal-fired power plants to natural gas and renewable energy, with the goal of achieving a 32% reduction in CO₂ emissions from the power sector nationally by 2030. The new rule relies on either rate-based or mass-based trading programs to achieve the goal, a new development in the final rule. Numerous challenges will address the legality of the rule, particularly the EPA’s authority to shift generation from a regulated source to an unregulated source and the significant changes from the draft rule.

  • The Clean Power Plan is accessible here.

CO₂ Emission Limits On New, Modified and Reconstructed Plants

• On August 3, 2015, EPA set standards to limit CO₂ emissions from new, modified and reconstructed power plants.  EPA requires new natural gas combustion turbines to achieve their standard through natural gas combined cycle technology, and requires new coal-fired power plants to achieve their standard through the implementation of partial carbon capture and sequestration (CCS), an emerging and controversial technology.

  • The new, modified, and restructured CO₂ rule is accessible here.

Oil and Gas Emissions Reduction Rules

• On August 18, 2015, EPA proposed a suite of rules seeking to reduce methane emissions from oil and gas sector by 40 to 45 % from 2012 levels by 2025. One rule requires methane and VOC reductions from hydraulically fractured oil wells, reducing emissions from previously unregulated equipment in the natural gas transmission sector, and requiring owners/operators to find and repair leaks.

  • The proposed oil and gas methane rule is accessible here.

• EPA proposed a new rule seeking to “clarify” air permitting rules for the oil and gas industry. EPA does this by providing two definitions for the term “adjacent” – one based on proximity and the other based on proximity or function - for the purpose of determining whether oil and gas equipment/activities are subject to major source permitting requirements.

  • The air permitting clarification rule is accessible here.

• EPA proposed a Federal Implementation Plan (FIP) for Indian Country Minor New Source Review. EPA required tribes administering the Clean Air Act to establish minor New Source Review programs in 2011.  This FIP will be imposed in areas where acceptable programs have not been implemented. Because many oil and gas well sites are “minor” new sources, the FIP will provide guidance on air permitting for drilling in tribal territories.

  • The Indian Country FIP proposal is accessible here.

Municipal Solid Waste (MSW) Landfill Methane Emissions Rule

• The rule, proposed on August 14, 2015, updates EPA’s 1996 Emission Guidelines for MSW Landfills, requiring the landfills to begin collecting and controlling methane-rich landfill gas at emission levels almost a third lower than current requirements. The rule seeks to reduce methane emissions from MSW landfills by about 436,000 metric tons per year beginning in 2025.

  • The proposed MSW landfill methane rule is accessible here.

Endangerment Finding Regarding Greenhouse Gas Emissions from Aircraft

• On July 1, 2015, EPA proposed to find that GHG emissions from certain commercial aircraft contribute to the air pollution that causes climate change and endangers public health and welfare. The endangerment finding also included an Advanced Notice of Proposed Rulemaking (APNR) to notify the public that EPA intends to adopt prospective International Civil Aviation Organization CO₂ emission standards for the aircraft industry in the future. EPA held a public hearing on its endangerment finding and APNR on August 11, 2015.

  • The endangerment finding and APNR is accessible here.

Renewable Fuel Standards

• On June 10, 2015, EPA proposed to establish the annual percentage standards for cellulosic biofuel, biomass-based diesel, advanced biofuel, and total renewable fuels that apply to all gasoline and diesel produced or imported in years 2014, 2015, and 2016. EPA also proposed the applicable volume of biomass-based diesel that would be required in 2017. EPA proposed volumes which were below the volumes originally set by Congress, but would increase renewable fuel use in the U.S. above historical levels and provide for steady growth going forward.

  • The proposed standards are accessible here.

Fuel Efficiency Standards for Medium and Heavy-Duty Vehicles

• On July 13, 2015, EPA and the Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) jointly proposed Phase 2 of their fuel efficiency standards for medium and heavy-duty vehicles, beginning in the model year 2021 and culminating in standards for model year 2027, with the goal of reducing GHG emissions by 1 billion metric tons and conserving about 1.8 billion barrels of oil.

  • The proposed standards are accessible here.

New Rule Prohibiting Certain Hydrofluorocarbons (HFCs) and HFC-Containing Blends

• The rule, finalized on July 20, 2015, bans a number of previously acceptable HCFs in the aerosols, refrigeration and air conditioning, and foam blowing sectors, and also bans certain hydrochlorofluorocarbons (HCFCs) being phased out under the Montreal Protocol. The rule is part of EPA’s Significant New Alternatives Policy (SNAP), under which EPA continuously reviews alternatives to ozone-depleting substances to find substitutes that pose less risk to human health and the environment.

  • The HFC rule is accessible here.