Midwest states puzzle over regional CO2 rule plan
Washington, 2 April (Argus) — Midwest states are in talks about creating a regional plan for meeting power sector CO2 reduction targets proposed by the Environmental Protection Agency (EPA) but some worry the effort could be frustrated if states adopt divergent compliance approaches.
Indiana and Illinois are among the states within the midcontinent’s primary grid that are exploring the idea of writing a multi-state compliance plan for the proposed Clean Power Plan. Regional approaches are expected to have significant cost and administrative savings compared with individual state compliance plans.
But many questions remain unresolved. It is not clear how states that rely on a “rate-based” emissions target, measured in pounds of CO2 per megawatt hour, would trade carbon allowances with neighboring states that instead choose to work toward a “mass-based” cap measured in total pounds of power sector CO2. EPA has said either type of emission target would be acceptable in complying with the rule.