INDIANAPOLIS—The state of Indiana today joined 11 other states in a lawsuit against the carbon dioxide regulations the U.S. Environmental Protection Agency recently proposed.  The lawsuit charges that the EPA does not have the legal authority to regulate existing sources of air pollution.

“The EPA’s recent action regulating carbon dioxide emissions shows a complete disregard for the rule of law and will harm Indiana ratepayers,” said Governor Mike Pence. “Congress has already rejected legislation that would put limits on carbon dioxide emissions, and a law of this significance should be passed by the legislative branch. The State of Indiana is determined to use every legal means at our disposal to prevent the EPA from overstepping its authority and costing Hoosier jobs.”

On June 2, the EPA announced its proposed performance standards for reducing carbon dioxide emissions from existing power plants under the Clean Air Act, Section 111(d).  The proposed rule requires each state to reduce its carbon dioxide emissions rate from existing coal-fired power plants to meet state-specific standards starting in 2020, with a final rate for 2030 and beyond. The EPA estimates that the rule will achieve a 30 percent reduction in CO2 emissions from the U.S. electric power sector in 2030 relative to 2005 levels.  The proposal establishes a carbon dioxide reduction target of 20 percent from the 2012 emission rate for Indiana.

The Clean Air Act prohibits the EPA from regulating emissions from existing sources under Section 111(d) if that source is already regulated under Section 112. Power plants are already regulated under Section 112, so the EPA has no authority to regulate power plants under Section 111(d). The lawsuit filed by Indiana, West Virginia, Alabama, Kansas, Kentucky, Louisiana, Nebraska, Ohio, Oklahoma, South Carolina, South Dakota, and Wyoming asks the court to prohibit the EPA from finalizing its proposed rule.

The states filed suit in the United States Court of Appeal for the District of Columbia Circuit. The filing is attached.