This summer, the U.S. Environmental Protection Agency announced a new proposal to reduce greenhouse gas, or GHG, emissions by regulating, on a state-by-state basis, how and where electricity is generated. Under its Clean Power Plan, the EPA has proposed new emissions standards and guidelines for states to accomplish targeted reductions in GHG emissions. This article will give an overview of the plan as well as some of the ways in which Pennsylvania has already positioned itself as a leader in green development incentives and emissions reductions. It will highlight certain challenges and uncertainties clients should be aware of as they prepare to take advantage of the development-friendly environment created by the Clean Power Plan.
Under the plan, the guidelines for reducing GHG emissions generally consist of the following: (1) increasing the efficiency of existing power plants; (2) favoring natural gas over coal electricity production; (3) using renewable resources to generate solar, wind, nuclear or hydro power instead of fossil fuel-fired generation; and (4) expanding existing energy-efficiency programs, thereby decreasing user demand for power.
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