On October 10, 2017, the U.S. Environmental Protection Agency (EPA) proposed to repeal the Clean Power Plan for Existing Power Plants. EPA presented the rule to the public as designed to drastically reduce greenhouse gas emissions from existing utilities. AFS has argued that the rule would hurt U.S. metalcasters with dramatically increased energy costs.
In acting now to repeal the Clean Power Plan, the EPA noted the rule exceeded the agency’s statutory authority under the Clean Air Act. In fact, in a February 2016 ruling termed “historic” and “unprecedented,” the U.S. Supreme Court issued a stay of the rule pending further legal review.
AFS has opposed the Clean Power Plan from its inception. AFS submitted comments on the proposed rule through its Air Quality Committee, asserting it would impose significant negative impacts on metalcasting operations, such as disrupting energy grid reliability and higher electricity costs because the rule would force the closure of most coal-fired plants.
Since 2015, AFS has provided funding to a business coalition, with over a dozen industry groups including the U.S. Chamber of Commerce and the National Association of Manufacturers, and participated in litigation to overturn the Clean Power Plan.
EPA noted in the proposed repeal the previous administration’s estimates and analysis of cost and benefits of the rule were “highly uncertain and/or controversial” in many areas. Repealing the plan would save $33 billion in compliance costs by 2030 and “facilitate the development of U.S. energy resources and reduce unnecessary regulatory burdens associated with the development of those resources,” according to EPA’s analysis. This is consistent with President Trump’s Executive Order Promoting Energy Independence and Economic Growth that instructed EPA to rewrite rules limiting carbon from new and existing power plants.
AFS will continue to support the proposed repeal of the Clean Power Plan through the public notice and comment process. EPA is also expected to propose a replacement rule for the Clean Power Plan consistent with the 2009 “endangerment finding” on greenhouse gas emissions. EPA intends to issue an “Advanced Notice of Proposed Rulemaking (ANPRM) that will be reflective of a thoughtful and responsible approach to regulatory action grounded within the authority provided by the statute.”
If you have any questions or would like additional information on this issue, please contact Jeff Hannapel with the AFS Washington Office at jhannapel@thepolicygroup.com.