# EPA’s CLEAN POWER PLAN

RM Association of Energy Engineers September 18, 2014Mandated 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. 2



### 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. 3



### EPA’s Clean Power Plan

### U.S. Electricity Generation Capacity in 2013 – 3,000 units covered

4 Source: VENTYX Velocity Suite

### U.S. Electricity Generation by Source in 2012

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### Colorado Electricity Generation in 2012The 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 8 

### 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 ): ( C oal 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 MWh10

Note: Does not include affected facilities in Indian Country at this time. 

### 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%11 

### Colorado’s Affected Facilities12



### Renewable Energy Regions13 

### Renewable Energy Targets By Region14 

### 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.15 

### 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 .16 

### 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. 

### D emand - 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

18 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 stat e 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 . 2021



### 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.22



### Results of the Proposal

__________________________________________________________ 

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

### are projected to decrease over 25% in 2030. E lectricity 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

23 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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