On Monday, the Obama Administration announced it has finalized a rule to regulate carbon dioxide (CO2) emissions from coal, oil and natural gas fired electric power plants. Originally proposed in June 2014, the final rule known as the Clean Power Plan (CPP), aims to reduce emissions from covered power plants by 32% below 2005 levels by 2030, equaling 870 million less tons of carbon emissions. The proposal had originally placed the reduction at 30%. The CPP hinges on states and regions devising their own approaches to meeting the reduction levels and deadlines or risk having the Environmental Protection Agency (EPA) to it for them.

Last November, NRMCA voiced its opposition to the proposal stating, "the association objects to the proposal’s strong probability to cause undue economic hardship to ready mixed concrete producers and their customers. NRMCA believes EPA has failed to adequately take into consideration the downstream costs associated with the proposal. As well, NRMCA does not believe EPA has taken the necessary steps to adequately determine the economic burden the proposal will place on small entities, as is required under the Regulatory Flexibility Act." NRMCA’s comments continued, "the clear language in EPA’s proposal stating doubts about the rule’s impact on electric utility companies and their customers, contrary third party analysis, EPA’s reliance on 'illustrative estimates,' and the lack of consideration for small entities begs the question of how and why EPA can in good faith and conscience proceed with finalizing such a proposal without all the requisite and proper information? NRMCA recommends EPA withdraw the proposal and reevaluate its true impacts until they have comprehensively been determined."

Avenues for contesting the final rule unfortunately are limited, however Congressional action, legal challenges, and next year’s election will likely all play a part in determining the final rule’s outcome. The CPP will become effective 60 days after it is published in the Federal Register.

Click here to view the final rule and accompanying fact sheets. For more information, contact Kevin Walgenbach at kwalgenbach@nrmca.org.