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EPA Includes Carbon Tax in Final Power Plant Rule


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EPA Includes Carbon Tax in Final Power Plant Rule

WASHINGTON -

Yesterday, the Environmental Protection Agency finalized a rule to reduce carbon pollution from existing power plants, under the Clean Air Act. The final rule has explicitly allowed a carbon tax as a means of complying with the Clean Power Plan (p. 899). If states do decide to adopt a carbon tax as their compliance mechanism, they will also need to put forward a back-up option in case their primary plan does not result in the promised emissions reductions.

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