One of the things to watch, because it will hold significant impact on the future of this industry and its model, is the Clean Power Plan. This plan was a cornerstone of the Obama administration's focus, on mitigating climate change. It has also has been a lightening rod. As you may recall from a previous lesson where we touched on it, the plan called for cutting carbon dioxide emissions from coal-fired electric plants by 32 below 2005 levels. And states needed to meet this goal by 2030. A really critical part of the plan, is that the EPA plans to regulate power plant emissions under this act. Each state has it's own specific goals to meet under the Clean Power Plan. Almost half of the states in the US are suing. And the case against the Clean Power Plan, is compromised of 38 separate cases. I know you're thinking that math doesn't add up, but the states aren't the only ones suing. Utilities and coal companies have also issued lawsuits. The states believe this plan is illegal and even unconstitutional, and feel that it is a way to reorganize the US electric grid. They also believe, it's an all out attack on the coal industry that will drive electricity costs, sky high. The EPA fired back saying, the plan will lead to lower residential bills. Remember how earlier we talked about the fact, that states had jurisdiction over electricity generation and distribution? Well, this gets to the very heart of the controversy. The states are protecting their authority, to regulate carbon emission for their states. New Jersey Environmental Protection commissioner, sums up many of their concerns in three words, unprecedented regulatory overreach. >> With the EPA, they're clearly looking at increasing and more restrictive standards, specifically on coal fire generation. But not just coal. When you look at where regulation are on the extractive industries, well that impacts any sort of base load power we have in this country. And it drives cost. One of the frustrations I think the industry has with the EPA right now, is sort of the laundry list of regulations. Before one is finalized, you are met with an additional regulation. And there's no harmony between them. And the cross counting of benefits, counting the benefits of one regulation under the requirements of another. And really, that is an area where I think our country is really ripe for some reforms, and just some common sense rethinking. That you can accomplish the same goals and achieve the same ends, without as being disruptive to industry and business as we are right now. because frankly, a lot of companies when they're looking at making long term resource decision, their hands are tied. Because you just don't know what the regulatory future looks like in this country, because of the volume and diversity of regulations coming at US EPA right now. >> The EPA defends it's position saying, carbon emissions from coal fire plants represent a huge threat to the health and welfare of the US citizens, because of the impact on climate change. They support their right to do this, because they have regulated other forms of air pollution from power plants, and other sources for decades. Now, in the other hand some states, cities, and scientists support the plan. And they say that since pollution and emissions don't respect state borders, that the EPA's plan will help ensure emissions are truly reduced across the US. In February of 2016, the US Supreme Court issued a stay of the Clean Power Plan. A legal stay means that a judicial proceeding is temporarily stopped. They can either be temporary or indefinite. This means that the Environmental Protection Agency is not allowed to enforce any of the rules requirements, until all of the lawsuits against it have been resolved. The outcome of this controversy will have considerable impacts on all of us. Meeting the standards would mean more renewables, greater promotion of energy efficiency and a greater reliance on natural gas. Of course, you know that natural gas is not without its own controversy, namely fracking. There's no magic bullet and the sound bites that come out of the media and social media, just don't do this issue justice. It's one that bears a closer look by all of us, since the impact will be so significant.