Law360, New York (June 27, 2014, 11:04 AM EDT) -- Cap and trade may play a major role in the U.S. Environmental Protection Agency's recent proposal to cut carbon dioxide emissions from existing fossil-fueled electric generating facilities. On June 2, 2014, the EPA issued a proposed rule under Section 111(d) of the Clean Air Act that would establish state-by-state carbon dioxide emission-reduction targets for existing electric generating units. Under the proposal, the EPA establishes both an interim compliance period from 2020 through 2029, as well as a final performance level that must be met by 2030 and maintained thereafter. EPA projects that once all states meet their emission goals, the cumulative reductions will equal a 26 percent to 30 percent reduction from 2005 emission levels for the power sector by 2030....