Clean Power Plan Takes Slight Step Back from Emissions Reduction "Cliff" in Arkansas and Creates Increased Opportunity for Renewable Energy Sector

While the final Clean Power Plan released on Monday by the Obama administration and the U.S. Environmental Protection ("EPA") agency spells even tighter emission reduction goals for the rest of the country, it backs away somewhat from the goals originally proposed for Arkansas.  On the national level, the final Plan targets a 32% decline in carbon emissions by 2030 which is more stringent than the 30% reduction goal that was proposed in 2014.  In comparison, Arkansas has seen a slight relaxation between the emissions goal first proposed for the state and what has been included in the final Clean Power Plan.   The original target proposed for Arkansas would require an approximately 45% reduction in carbon emissions, which was significantly above the Plan's national goal.  This is reduced in the final Plan to a state goal of approximately 37%.

Despite this change to Arkasnas goals, some have expressed continuing concerns about the final Clean Power Plan in general.  Both Governor Asa Hutchinson and Attorney General Leslie Rutledge have indicated that, though Arkansas will comply with the rule, they will continue to fight it.  Attorney General Rutledge yesterday issued a statement that her office has joined with fifteen other states in requesting that EPA stay the final Plan pending a legal challenge that is soon to be filed.

As to how emission reductions are to be achieved, the final Clean Power Plan continues to place a strong emphasis on renewable energy and is anticipated to create new opportunitities within that industry.  Under the Plan, the Obama administration projects that renewable energy sources will account for 28% of the nation's capacity by 2030, an increase from the 22% in the original proposal.  

In a release issued by the Arkansas Advanced Energy Association (AAEA) earlier this week, Executive Director Steve Patterson described the final Plan as an opportunity to modernize the state electric power system.  Patterson stated, "By building on existing trends in the use of advanced energy technologies such as renewable energy and natural gas electricty generation by state power companies, Arkansas will be able to lower costs, improve reliability, and increase consumer choice as it reduces emissions."  AAEA and its member companies were described as "ready to help Arkansas regulators develop a plan that meets EPA's target for our state and improves electric power service for business and residential customers at the same time."