As expected, the EPA repealed the Clean Power Plan (CPP); asks industry to help write a new regulation

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Auvila_QN_2017_10_10_EPA_CPP_Repeal

Excerpt:

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  • CPP repealed: As expected, the Administrator of the US Environmental Protection Agency (EPA), Mr. Scott Pruitt, repealed the Obama-era CPP regulation aimed at forcing generators to reduce CO2 emissions by 32% from 2005 levels by 2030
  • CPP was like forcing car manufacturers to pay Tesla: The only way to achieve the CPP objective would have been for coal-fired generators to buy Renewable Energy Credits (REC) to offset CO2 emissions from its own plants, which is tantamount to subsidizing competitors’ generation
    • This would be equivalent to car manufacturers paying Tesla $X/car for every non-electric car that they sell to the consumers
  • EPA asks the industry for help in writing new regulations but what could be recommended? This was not expected. Regardless, we would expect that any proposed recommendations would involve inside-the-fence solutions
  • Conclusion: We are not surprised at the repeal of CPP; however, we are somewhat puzzled by the EPA’s request of the power industry to help it write new regulations regarding CO2.

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