Gov. Rick Snyder administration will comply with EPA carbon rule while AG Bill Schuette sues to stop it

LANSING, MI -- Michigan will comply with the federal Environmental Protection Agency's Clean Power Plan by creating its own state-based carbon implementation plan, the Gov. Rick Snyder administration announced Tuesday.

The EPA in August announced the final rule, which requires power plants nationally to slash 32 percent in carbon emissions from 2005 levels by 2030. Under the rule states can choose to create their own mix of solutions toward meeting individual goals or follow a set of rules from the federal government.

Michigan plans to carve its own path.

"The best way to protect Michigan is to develop a state plan that reflects Michigan's priorities of adaptability, affordability, reliability and protection of the environment," Snyder said. "We need to seize the opportunity to make Michigan's energy decisions in Lansing, not leave them in the hands of bureaucrats in Washington, D.C."

Today's announcement represents yet another divide between Snyder's administration and Attorney General Bill Schuette, who is suing to stop the plan with the administration moves to comply.

"I am deeply concerned by yet another executive action taken by President Obama and the EPA that violates the Clean Air Act and causes the price of electricity to increase, placing jobs at risk and costing Michigan families more," Schuette said in a statement when the plan was released.

Valerie Brader, director of the Michigan Agency for Energy, said that consultation between state departments the administration determined a state-based plan with robust input from stakeholders would best fit Michigan's needs.

"We believe that a state plan will be far more beneficial to Michigan than any federal plan," Brader said.

Department of Environmental Quality Director Dan Wyant said that this approach "keeps decision making in Michigan's hands."

The EPA between its proposed and final rules did not take into account all the feedback that Michigan provided. For instance, more than half of the state's progress on renewable energy will not count because it was built too early, something Brader said was "absolutely the EPA rewarding delay over early action."

But some good news for Michigan is that it can continue to count on waste reduction as a compliance alternative. Brader pointed out that Snyder had focused on efficiency and waste reduction in his March energy plan. At the time of course he didn't know what the EPA final rule would be, but "nothing in this plan makes that look like a bad idea now," Brader said.

Schuette, for his part, is one of more than a dozen Attorneys General who seek a stay of the rule's deadlines.

Rodger Kershner is an attorney with expertise in energy who practices at Howard & Howard in Royal Oak. He said that procedurally it's very early to be filing for a stay of the rule, which does not take effect until 60 days after being printed in the federal register.

"You have to wonder what exactly is the rush? It seems to have a significant political component to it," Kershner said.

For Schuette and the other Attorneys General to get the stay, Kershner said, they would have to prove that implementing the rule would cause irreparable harm and that they have a chance of ultimately prevailing legally.

Back in Michigan, the Snyder administration is staying far away from that lawsuit.

"The Attorney General is pursuing that case in his independent capacity... there are no plans for the state to join the current challenges," Brader said.

Schuette spokesperson Andrea Bitely said "The Attorney General remains hopeful about the plan the Governor's office is developing. The Attorney General remains committed to stopping overregulation and excessive mandates from the EPA."

Groups including MI Air MI Health, the Natural Resources Defense Council, Christian Coalition, the Michigan Agri-Business Association, some businesses and the Michigan Conservative Energy Forum applauded the state's plan to move forward with compliance.

"As Governor Rick Snyder has now shown, conservatives can lead on Clean Energy and provide meaningfully to the discussion," said MCEF Leadership Council member Ed Rivet. "Conservatives have ideas and solutions to the energy challenges of today and tomorrow - I'm very happy that Governor Snyder is showing the leadership we need to transition the state towards a clean and renewable energy model which will build our future."

The state will have to work diligently to meet the EPA's Sept. 2016 deadline for plan submission, Brader said. She expects the state's proposal to go through the administrative rule-making process and not the legislature.

Emily Lawler is a Capitol/Business reporter for MLive. You can reach her at elawler@mlive.com, subscribe to her on Facebook or follow her on Twitter: @emilyjanelawler.

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