President Obama’s EPA will issue proposed greenhouse gas limits for existing power plants. By all accounts the rules will be a remarkable step forward in the fight against global warming, with the U.S. finally demonstrating significant leadership on an issue on which it has lagged behind for more than a decade. And yet from what we know about the proposed rules, they are market and business-friendly in a way that press accounts so far have yet to emphasize.
Megan Herzog has already done a terrific job describing the proposed rules and their potential legal vulnerability here. My own view is that EPA is on solid legal ground in moving away from a traditional plant-by-plant basis of regulation and instead allowing states to meet statewide emissions limits through a variety of mechanisms, including renewable energy, energy efficiency, demand response and cap-and-trade. In fact in the most recent pronouncement from the Supreme Court about EPA’s ability to regulate, the Court, joined by six justices including Chief Justice John Roberts, emphasized the discretion the agency should have to resolve ambiguous provisions of the Clean Air Act:
Read More →