The Obama Administration and US EPA are moving aggressively to regulate carbon emissions from power plants. It was only a matter time. Since 2007, carbon emissions from power plants and mobile sources, together with methane leaks from an aged natural gas pipeline infrastructure have come under greater scrutiny as severe weather events attributed to climate change have caused physical disruption, dislocation and financial pain to homeowners, businesses, and equally important investors.
US EPA has been working on the proposed power plant regulations now for some time. During the past year they have held hundreds of town hall and stakeholder meetings, and conducted substantial modeling to support the proposed regulations. In September 2013, US EPA proposed standards to limit carbon emissions from new power generation sources – the recently proposed regulations on existing plants is a logical extension. Next up will be additional new regulations on vehicles, including heavy duty trucks, based on the work conducted by the National Academy of Sciences, US DOE and US EPA – another logical extension.
The comment period for the proposed existing power plant regulations closes after a 120-day period following their release on June 2, 2014. Final rules are expected to be promulgated in June 2015. The proposed compliance timeline for existing plant regulations between the final rule and state implementation plan submittals is very short – as early as June 2016, unless an extension is granted.
So, are you a directly affected entity (utility/power generator)? Are you a state energy/environmental office responsible for developing a response strategy and state implementation plan? Do you understand the significant implications for your business or state operations? Do you have plans to submit comments by the October deadline? Have you identified the risks and potential rewards regarding compliance, and changing the lens through which you view your responsibilities for improving social, economic, and environmental sustainability? Do you have a plan to assess the risks, and identifying ways to manage the risks? Turning risks and threats into advantages and opportunities is where West Monroe Partners can unlock value.
If you are interested in answers to some of these questions, join us at our webinar this Wednesday (July 9th) by leaving a comment below, and we would be happy to get you signed up. Even if you cannot join us, we are interested in your thoughts and strategies for how you plan to address these carbon regulation compliance challenges. As always, we stand ready to help.