The Environmental Protection Agency ("EPA") proposed the "design details" of the Clean Energy Incentive Program ("CEIP"). The CEIP permits individual states to incentivize certain early emission reduction projects specified under the Carbon Pollution Emission Guidelines for Existing Stationary Sources: Electric Utility Generating Units (also known as the "Clean Power Plan Emission Guidelines"). Additionally, the EPA reproposed the CEIP-related aspects of the proposed rate-based and mass-based model trading rules that are referred to in the proposal as the "optional example regulatory text."

The EPA asserted that the proposal is consistent with the Supreme Court's orders that stayed the Clean Power Plan during judicial review. The EPA noted that the timing of the elements of the CEIP may be adjusted, if necessary, upon resolution of the petitions for review of the Clean Power Plan.

In order to examine the proposed CEIP design details, the EPA will hold a public hearing from 9:00 a.m. to 8:00 p.m. in Chicago, Illinois, on August 3, 2016.

Comments on the proposal must be submitted within 60 days after its publication in the Federal Register.

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