Minnesota is likely to adopt a trade-based compliance strategy under the Clean Power Plan (CPP), should the regulation survive legal challenge and come into force, according to an outline sent to state lawmakers last week. “At this time, Minnesota is considering primarily the trading ready approaches, including subcategorized rate targets and mass targets for existing sources alone as well as including the new source complement,” says the outline of the initial Clean Power Plan submittal now being developed by the state Department of Commerce and Pollution Control Agency.
The state is moving forward with compliance planning for the CPP, even while the U.S. Supreme Court has stayed the regulation and it remains unknown when, or if, it will take force. Under the stay, the Environmental Protection Agency cannot enforce the rule, which requires states to develop action plans to meet federally set emissions reduction goals.
While the EPA’s hands are tied, states may still move forward with planning, as Minnesota has elected to do. Under the rule, the state must reduce its carbon emissions by 40 percent from 2012 levels by 2030.
“The MPCA and Commerce are reviewing the implications of the stay, but plan to continue engagement efforts on the rule in order to ensure that Minnesota is well‐positioned to respond in a timely manner to any possible outcomes of Clean Power Plan litigation,” a letter accompanying the outline explains.
The Clean Power Plan set a September 2016 deadline for states to submit initial compliance plans or requests for a two-year extension. That deadline has also been put on hold by the stay. The outline is what the state regulators intended to submit for the initial deadline.