EPA’s CLEAN POWER PLAN

RM Association of Energy Engineers

September 18, 2014
Mandated by the President’s Climate Action 

Plan

Proposed June 2, 2014.

Published in Federal Register June 18, 2014, 

which began a 120-day public comment 

period – extended 45 days to December 1.

EPA used its authority under Section 111d 

of the Clean Air Act to write the proposed 

rule. 

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EPA’s Clean Power Plan
Will reduce CO2 emissions from the 

power sector by approximately 30% by 

2030 from 2005 levels.

Will continue progress already under 

way to lower the carton intensity of 

power generation, and build on existing 

state programs. 

Promote long-term multi-state planning 

among various parties.

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EPA’s Clean Power Plan
U.S. Electricity Generation Capacity

in 2013 – 3,000 units covered

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Source: VENTYX Velocity Suite
U.S. Electricity Generation by Source

in 2012

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Colorado Electricity Generation in 2012
The proposed rule establishes individual state goals in 

lbs CO2/MWh based on a consistent national formula.

Interim goals must be met beginning in 2020 – with a 

final goal to be met in 2030.

State goals are based on the Best System of Emissions 

Reduction (BSER) = four building blocks.

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Summary of the Proposal

__________________________________________________________
Building Blocks Used to Set State Goals Examples of State Compliance Measures

1. CO2 Emission Reductions in Coal Fleet

- 6% 

• Efficiency improvements

• Co-firing with natural gas

• Carbon capture & storage

• Coal retirements

2. Re-Dispatch to Existing Natural Gas 

Combined Cycle (NGCC) Plants 

- 70%

• Utilize existing NGCC units at a higher 

capacity

• New NGCC units

3a. Renewable Energy (non-hydro)

- Varies by state based on region

3b. Nuclear Energy 

- Varies by state based on capacity

• New renewable energy

• New nuclear energy

• Relicensing of at-risk nuclear facilities

4. Demand-Side Energy Efficiency

- Varies by state based on reaching a 

1.5% annual incremental savings rate

• Residential, commercial, agricultural, and 

industrial energy efficiency

• Transmission efficiency

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State Goal Building Blocks
State Goal-Setting Formula

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First, the historical fossil emission rate is set using 

2012 emission rate data (lbs CO2/MWh):

(Coal gen. x Coal emission rate)+ (OG gen. x OG emission rate) + (NGCC gen. x NGCC emission rate)

Total Fossil Generation

The building blocks are then applied to the formula 

above (lbs CO2/MWh):

(Coal gen. x Coal emission rate)+ (OG gen. x OG emission rate) + (NGCC gen. x NGCC emission rate)

Total Fossil Generation + RE MWh + N MWh + EE MWh
Note: Does not include affected facilities in Indian Country at this time. 10

State Goals in lbs CO2/MWh

State 2012 

Historical 

Rate

Final Goal Percent 

Reduction

CO 1,714 1,108 35%

MT 2,246 1,771 21%

ND 1,994 1,783 10%

SD 1,135 741 35%

UT 1,813 1,322 27%

WY 2,115 1,714 19%
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Colorado’s Affected Facilities
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Renewable Energy Regions
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Renewable Energy Targets By Region
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Renewable Energy – Colorado’s Goal

According to the BSER:

Colorado’s renewable energy generation in 2012 = 

12%, and would reach 21% by 2026.

This is based on a 6% growth factor per year 

applied to the 2012 rate starting in 2017.

At 21%, Colorado’s generation would be equal to 

10,839,820 MWh per year.
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Energy Efficiency – Colorado’s Goal

According to the BSER:

Colorado’s incremental energy savings rate in 2012 

= 0.84%, and would reach the 1.5% rate by 2021. 

This is based on a .2% per year increase to the 

2012 savings rate starting in 2017.

Colorado would reach a cumulative energy savings 

rate of 11.01% in 2029 = 57,717,063 MWh.
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Energy Efficiency Compliance Options

States can utilize energy efficiency programs 

(including EERS), building energy codes, state 

appliance standards (for appliances without federal 

standards), tax credits, and benchmarking 

requirements for building energy use.

Demand-side EE measures in a state plan must be 

enforceable and include an EM&V plan per EPA 

guidance.
State Plans

States have broad flexibility to implement 

measures across the power sector to get 

reductions. 

They can rely on EPA’s building blocks, or on 

other measures. 

They can work individually, or with other states.

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__________________________________________________________
States Have Flexibility

Basis for state goal –

Potential emissions 

pathway reflecting 

EPA’s analysis

 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029

 

A state can choose any trajectory 

of emission improvement as long 

as the interim performance goal is 

met on average over 10 years, and 

the final goal is met by 2030

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Carbon emissions from affected power 

plants in an example state

Timing of Power Plant Emission Reductions
Deadline for State Plans

States must submit an initial plan by June 30, 2016.

State may request a one year extension for individual 

state plans to June 30, 2017.

State may request a two-year extension for multi-state 

plans to June 30, 2018.

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__________________________________________________________
Clean Power Plan in Colorado 

Colorado Department of Public Health & 

Environment = lead state agency.

Air Quality Control Commission

Colorado State Legislature

Public Utilities Commission (supporting state agency) 

= oversee EE/RE programs, and their EM&V.

State Energy Office (supporting state agency) = 

develop policies, programs/initiatives, and 

implement standards.

Obligated Parties = utilities, local government, 

developers, manufacturers, etc.

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Results of the Proposal

__________________________________________________________

Application of the BSER will result in a reduction 

of CO2 emissions from the power sector by 

approximately 30% by 2030 from 2005 levels.

This is equivalent to 730 million metric tonnes of 

CO2 per year, or the annual emissions from 

more than 150 million cars. 
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Results of the Proposal

__________________________________________________________

Additionally, emissions of PM2.5, SO2, and NO2 

are projected to decrease over 25% in 2030.

Electricity bills are projected to decrease ~8% by 

2030 due to energy efficiency measures.

The climate and health benefits are worth an 

estimated $55 to $93 billion per year in 2030.
Coal & Natural Gas Remain Leading 

Sources of Electricity Generation

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Each more than 30% of projected generation in 2030

Coal

31%

Natural Gas

32%

Other Fuel

37%
How to Comment on the Proposed Rule

See the following website for more information and 

details on how to comment on the proposed rule: 

http://www2.epa.gov/carbon-pollution-standards

• Federal eRulemaking portal

• Email A-and-R-Docket@epa.gov

• Fax: Fax your comments to: 202-566-9744.

• Mail: Environmental Protection Agency, EPA Docket Center (EPA/DC), Mail Code 28221T, 

Attention Docket ID No. OAR–2013-0602, 1200 Pennsylvania Avenue, NW, Washington, 

DC 20460.

• Hand Delivery or Courier: Deliver your comments to: EPA Docket Center, Room 3334, 

1301 Constitution Ave., NW, Washington, DC, 20460. 

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Be sure to reference Docket ID: EPA-HQ-OAR-2013-0602
Thank you!

Laura Farris, 

EPA R8 Climate Change Coordinator

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