Client Alert

| October 11, 2011

Coalition of New York Power Plants Presses EPA In Litigation and Continued Negotiations Concerning Major Federal Air Pollution Regulation

A coalition of most of the major electricity generation companies in New York State, has been in active negotiations with top ranking officials at the U.S. Environmental Protection Agency (“EPA”) headquarters in Washington, D.C., over its signature multi-billion dollar Cross State Air Pollution Rule (“CSAPR”). CSAPR, which was finalized on July 6, 2011 (76 Fed. Reg. 48208 (Aug. 8, 2011)), is the subject of intense nationwide, industry and Congressional interest. While the negotiations are scheduled to continue for the next several weeks, on October 7, 2011, the coalition filed a petition for review of the CSAPR rule in the U.S. Court of Appeals for the D.C. Circuit. These actions seek to increase the allocation to New York State electricity generators of allowances from the EPA that authorize the generators to emit two by-products of their generation process, oxides of sulfur and nitrogen. The stakes are high because the insufficient allocation of allowances from EPA to various electricity generating units threatens their ability to operate and could cause adverse economic effects in New York State.

This memorandum is intended only as a general discussion of these issues. It is not considered to be legal advice. We would be pleased to provide additional details or advice about specific situations. For additional information on this important topic, please feel free to call upon your Dewey & LeBoeuf relationship partner. No part of this publication may be reproduced, in whole or in part, in any form, without our prior written consent. For further information on Dewey & LeBoeuf, please visit www.dl.com. +1 888 532 6383