State Responses to the Clean Power Plan: Legal Challenges

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UNIVERSITY OF SAN DIEGO SCHOOL OF

LAW 2015 CLIMATE AND ENERGY LAW

SYMPOSIUM

State Responses to the Clean Power Plan: Legal

Challenges

K

EVIN

P

OLONCARZ

LEGAL CHALLENGES

The Pregame Show

 In re Murray Energy Corp ., 788 F.3d 330 (D.C. Cir. 2015)

The Super Bowl

 West Virginia v. EPA , No. 15-1363 (D.C. Cir.)

 22 petitions, including 26 states

 Coal industry; utilities/electrical cooperatives; Chamber and other industry

 On the other side, 18 states, several municipalities, all major environmental NGOs, three renewable energy associations and several power companies

 Six stay motions (at press time); 20 pages each; hundreds of declarations.

 Claims of immediate harm by states in preparing initial submittal (Sep. 6, 2016) and final plan (2018)

 New infrastructure requiring long lead-time and irreversible commitments

 Near-term retirements of coal plants projected

 Harm to coal industry/lost profits revenues/declining sales

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LEGAL CHALLENGES

Arguments on the merits

 EPA doesn’t have authority to regulate CO2 under CAA § 111(d), i.e., the § 112 exclusion.

 CPP is dramatic, sweeping initiative to transform nation’s energy system, transforming EPA from air regulator to energy czar.

 EPA can’t invoke long-extant statute as basis for unheralded power to regulate significant portion of the American economy. Util. Air Reg. Grp. v. EPA , 134 S.Ct. 2427, 2444

(2014).

 When Congress wishes to assign question of deep economic and political significance to an agency, it speaks “expressly”.

King v. Burwell , 135 S. Ct. 2480, 2489 (2015).

 EPA cannot define BSER by reductions achievable throughout electricity grid; BSER must be limited to “source”.

 Fatal that no coal plant could achieve sub-category limit and limits are lower than NSPS.

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LEGAL CHALLENGES

 CPP contravenes federalism, infringing on traditional state domain over grid regulation, which belongs to states and FERC.

 CAA § 111(d) does not contain clear statement authorizing federal measures that invade areas traditionally reserved by states.

 Regardless that states need not do anything and no sanctions to them, CPP violates anti-commandeering principle and coerces states.

 To avoid constitutional infirmities, BSER must be given plain meaning as inside-the-fenceline measures

 EPA circumventing political process by legislating through regulation.

 1990 CAA Amendments Acid Rain Program

 H.R. 2454 (Waxman-Markey)

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