Return to Blog

Obama admin. finalizes Clean Power Plan: Deeper CO2 cuts, more time to comply

In what many are calling the strongest federal action to combat climate change in U.S. history, President Obama will announce regulations Monday morning aimed at cutting carbon dioxide emissions from the electric power sector 32% nationwide by 2030.

The final rules are a strengthened version of a draft proposal released last June, which called for a 30% reduction in CO2 emissions from 2005 levels. Among several significant changes made to the draft proposal, the final rules will give states and electric utilities more time to implement the regulations, extending the initial compliance deadline to 2022, two years longer than originally proposed.

The final rules will also require states and utilities to use more renewable energy, raising the share of generation that renewables should account for from 22% to 28% by 2030. New coal units could only meet the standards with technologies that capture carbon emissions or convert coal into a synthetic gas for cleaner burning. Efficiency standards and under-construction nuclear plants were left out of state goals under the plan, but are still available as compliance options, according to a White House fact sheet on the regulations.

When word got out last week that the Obama administration was going to give states and utilities more time to comply with new carbon regulations under the final Clean Power Plan, many environmentalists wondered if the finalized rules would be enough to meet the Obama administration’s climate change goals.

The administration acted quickly to quell the concerns, insisting through Chief of Staff Denis McDonough that the final rule would be stronger than the one proposed last year, despite the extended timeframe.

It appears McDonough wasn’t just telling the environmental community what they wanted to hear, as the finalized Clean Power Plan requires deeper emissions cuts and an increased reliance on renewable resources. The revised plan keeps its original structure — setting out three “building blocks” for states to follow in reducing emisisons — but jettisons the fourth building block, which pushed states to reduce electricity consumption through energy efficiency.

Read more at: utilitydive.com

This document is the property of, and is proprietary to, TFS Energy Solutions, LLC and/or any of its members, affiliates, and subsidiaries (collectively “TFS”) and is identified as “Confidential.” Those parties to whom it is distributed shall exercise the same degree of custody and care afforded their own such information. TFS makes no claims concerning the validity of the information provided herein and will not be held liable for any use of this information. The information provided herein may be displayed and printed for your internal use only and may not be reproduced, retransmitted, distributed, disseminated, sold, published, broadcast or circulated to anyone without the express written consent of TFS. Copyright © 2025 TFS Energy Solutions, LLC d/b/a Tradition Energy. Although the information contained herein is from sources believed to be reliable, TFS Energy Solutions, LLC and/or any of its members, affiliates, and subsidiaries (collectively “TFS”) makes no warranty or representation that such information is correct and is not responsible for errors, omissions or misstatements of any kind. All information is provided “AS IS” and on an “AS AVAILABLE” basis, and TFS disclaims all express and implied warranties related to such information and does not guarantee the accuracy, timeliness, completeness, performance, or fitness for a particular purpose of any of the information. The information contained herein, including any pricing, is for informational purposes only, can be changed at any time, should be independently evaluated, and is not a binding offer to provide electricity, natural gas and/or any related services. The parties agree that TFS’s sole function with respect to any transaction relating to this document is the introduction of the parties and that each party is responsible for evaluating the merits of the transaction and the creditworthiness of the other. TFS assumes no responsibility for the performance of any transaction or the financial condition of any party. TFS accepts no liability for any direct, indirect, or other consequential loss arising out of any use of the information contained herein or any inaccuracy, error, or omission in any of its content.