A perspective on clean power and the future of US energy politics and policy

United States energy policy is undergoing a historic transformation. For the first time, the federal government has taken the lead in aligning energy and environmental regulation. The Environmental Protection Agency has asserted itself under the auspices of an administrative rule known as the Clean Power Plan (CPP) that specifically targets electric utilities, most notably coal-fired utilities, for the express purpose of reducing carbon emissions. The CPP requires states, either individually or through multi-state arrangements, to submit compliance plans in either 2016 or 2018 if an extension is granted. The EPA has suggested three principal “building blocks” for formulating state compliance plans. In the wake of this new regulatory landscape, this paper describes the CPP, identifies the specific challenges facing the electric industry, and provides potential responses to those challenges. The paper concludes that the Clean Power Plan provides the necessary context for the US transition to a clean energy future.