Under the Clean Air Act, the EPA must consider the feasibility and cost of emerging technologies necessary to meet its proposed emissions standards.
The EPA’s projections for these technologies are often met with concerns from industry and other stakeholders, including that the technology is not ready and is not affordable.
Our analysis of four case studies finds that EPA has provided reasonable timelines for nascent technology to become widely available and cost-effective, for unexpected alternative solutions to take hold, or for sectors to become more proficient at using and deploying existing technology.
Key takeaways for policymakers, regulated industries, business groups, and other stakeholders:
The EPA works closely with industry and stakeholder groups and includes flexibility in its standards to address legitimate industry concerns.
Regulatory certainty spurs technological innovation that enables compliance.
Regulatory design and incentives can lead to novel technological innovations.
Unpredicted economic changes can shift the feasibility of compliance.
Projections based on new technologies often fail to capture operational efficiencies that businesses will adopt over time.