El-2 Resolution on Increased Flexibility with Regard to the EPA’s Regulation of Greenhouse 

Gas Emissions from Existing Power Plants

WHEREAS, A reliable, affordable energy supply is vital to the nation’s future economic 

growth, security, and quality of life; and

WHEREAS, Compliance with expected environmental regulations regulating greenhouse gas 

(GHG) emissions will affect ratepayers differently depending upon each State’s existing 

generation, energy resources, electricity market and State commission decisions; and

WHEREAS, States have jurisdiction over the reliability and affordability of electricity provided 

to retail customers; and

WHEREAS, Incorporating flexibility in the implementation of EPA regulations to allow for 

unique State or regional strategies can lessen generation cost increases because of improved 

planning, greater use of energy efficiency and demand-side resources, and orderly decisionmaking; and

WHEREAS, NARUC at this time takes no position regarding the merits of EPA rulemakings for 

the purpose of regulating GHG from new or existing power plants; and

WHEREAS, In 2009, President Obama made a pledge that by 2020, America would reduce its 

greenhouse gas emissions in the range of 17 percent below 2005 levels; and

WHEREAS, The Regional Greenhouse Gas Initiative implemented by nine States is recognized 

as reducing emissions and provides a net consumer and economic benefit; and

WHEREAS, Ten States have successfully implemented market-based emissions trading systems 

applicable to the electrical power sectors for the purpose of reducing emissions; and

WHEREAS, Many States have: 1) implemented mandatory and/or voluntary renewable 

portfolio/energy standards, 2) implemented energy efficiency and/or peak load reduction 

programs, 3) experienced significant retirements of coal based generating plants and/or 4) 

mandated emission reductions programs; all of which have already contributed to a reduction in 

GHG emissions; and

WHEREAS, It may be in the best interest of ratepayers to maintain the operation of certain 

existing coal-based electricity generating plants that meet environmental performance 

requirements for priority pollutants for a period of time; and

WHEREAS, On June 25, 2013, the President issued a memorandum to the U.S. EPA 

Administrator directing the EPA to:

• Issue proposed carbon pollution standards, regulations, or guidelines, as appropriate, for 

modified, reconstructed, and existing power plants by no later than June 1, 2014;

• Issue final standards, regulations, or guidelines as appropriate for modified, reconstructed 

and existing power plants by no later than June 1, 2015; 
• Include in the guidelines addressing existing power plants a requirement that States 

submit to the U.S. EPA the implementation plans required under Section 111(d) of the 

Clean Air Act and its implementing regulations by no later than June 30, 2016; and

WHEREAS, The President instructed the EPA, in its efforts to address GHG emissions from 

modified, reconstructed and existing power plants to engage directly with States, and expressly 

recognized that States “will play a central role in establishing and implementing standards for 

existing power plants;” and

WHEREAS, The President instructed the EPA to work with State agencies to “promote the 

reliable and affordable provision of electric power through the continued development and 

deployment of cleaner technologies and by increasing energy efficiency, including through 

stronger appliance efficiency standards and other measures;” and

WHEREAS, Section 111(d)(1)(A) requires the EPA to establish a procedure under which each 

State shall submit to the Administrator a plan which establishes standards of performance for 

existing sources; and

WHEREAS, Section 111(d)(1)(B) requires: (1) the plan submitted by the State to provide for 

the implementation and enforcement of such standards of performance and (2) the Administrator 

to permit a State, in applying such standards of performance, “to take into consideration, among 

other factors, the remaining useful life of the existing source to which such standard applies;” 

and 

WHEREAS, The States rely on EPA to issue a procedure under Section 111(d) that reflects the 

best system or systems of emission reductions that has been adequately demonstrated at affected 

facilities; and 

WHEREAS, State utility regulators have jurisdiction over decisions regarding integrated 

resource planning and/or resource adequacy, processes which ultimately determine the mixes of 

fuels and resources in State generation portfolios, which differ from State to State; and

WHEREAS, States have different mixes of fuels and resources in their existing generation 

portfolios; and

WHEREAS, States have achieved different levels of GHG reductions to date, and have diverse 

economies and face different economic conditions, including States with energy intensive 

manufacturing industries that provide goods for the entire nation; now, therefore be it

RESOLVED, That the National Association of Regulatory Utility Commissioners, convened at 

its 125th Annual Meeting in Orlando, Florida, urges the EPA, in developing any emissions 

guidelines for regulating carbon emissions from existing power plants, to recognize the primacy 

of States to rely on both State utility and environmental regulators to lead the creation of 

emission performance systems that reflect the policies, energy needs, resource mix, economic 

conditions of each State and region; and be it further
RESOLVED, That the guidelines should be flexible enough to allow States individually or 

regionally to take into account, when establishing standards of performance, the different 

makeup of existing power generation in each State and region; and be it further

RESOLVED, That the States need EPA under the relevant statutory factors, to issue guidelines 

that avoid GHG emissions reductions that are not feasible; and be it further

RESOLVED, That the guidelines should provide sufficiently flexible compliance pathways or 

mechanisms that recognize State and regional variations to achieve the most cost-effective 

emissions reductions in each State; and be it further

RESOLVED, That the guidelines recognize and credit States’ emissions reduction achievements 

to date, recognize any and all existing State emission reduction programs, and shall not intrude 

on the States’ jurisdiction over decisions regarding integrated resource planning and/or resource 

adequacy or otherwise mandate specific modifications to the mix of fuels and resources in 

existing and future State generation portfolios.

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Sponsored by the Committee on Electricity

Recommended by the NARUC Board of Directors November 19, 2013

Adopted by the NARUC Committee of the Whole November __, 2013.