Will EPA's Power Plants Rule Help Or Hinder The Energy Transition?

Addressing climate change requires transitioning to lower carbon energy sources. Well-designed regulation plays a critical role in accelerating this transition. But regulation with a high degree of litigation risk hinders rather than helps by creating uncertainty, instability, and public opposition.

For over a decade, EPA has wrestled with how to regulate greenhouse gas emissions from power plants. EPA issued two previous rules, but neither saw the light of day because the courts invalidated them. The Biden EPA was on the cusp of finalizing a power plants rule that, while still controversial, struck a balance between climate ambition and legal defensibility. The latest reports, however, indicate that EPA may once again be under pressure to push the boundaries of what courts may accept.