UNITED STATES ENVIRONMENTAL PROTECTION AGENCY 

WASHINGTON, D.C. 20460 

OFFICE OF 

AIR AND RADIATION 

MEMORANDUM 

Subject: 

From: 

To: 

Summary of Stakeholder Meetings 

Carissa Cyran 

Dockets EPA-HQ-OAR-20 13-0602, EPA-HQ-OAR-20 13-0603, and EPA-1-IQOAR-2013-0495 

This memorandum summarizes meetings with stakeholders during the week of March 23, 2015. 

On March 24, Acting Assistant Administrator for Air and Radiation Janet McCabe met with Sue 

Kelly, President and CEO for American Public Power Association. 

On March 24, Associate Assistant Administrator for Climate and Senior Counsel for Air and 

Radiation Joseph Goffman met with representatives from the National Energy and Utility 

Affordability Coalition. Sign-in sheet attached. 

On March 25. Administrator Gina McCa11hy spoke with Nick Akin of American Electri c Power. 

On March 26, Associate Assistant Administrator for Climate and Senior Counsel for Air and 

Radiation Joseph Goffman met with representatives from the Industrial Energy Consumers of 

America. Sign-in sheet and handouts are attached. 

On March 26. Associate Assistant Administrator for Climate and Senior Counsel for Air and 

Radiation Joseph Goffman met with representati ves from Western Resource Advocates. Sign-in 

sheet attached. 

On March 27, Associate Assistant Administrator for Climate and Senior Counse l for A ir and 

Radiation Joseph Goffman met with representatives from General Electric's Energy Financial 

Services team regarding the Homer City faci lity and the Clean Power Plan. Sign-in sheet 

attached. 

Internet Address (URL) · http //www epa gov 

Recycled/Recyclable • Pnnted w1th Vegetable 011 Based Inks on 100% Postconsumer. Process ChloMe Free Recycled Paper 
Date: March 24, 2015 

Meeting: NEUAC Meeting 

Rule(s) Discussed: C P P 

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Date: Mar ch 26, 2015 

Meeting: IECA Meeting Re: EPA's Clean Power Plan 

R~le(s) Discussed: G{J P 

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IECA/EPA Meeting 

Joseph Goffman, Associate Assistant Administrator & Senior Counsel 

EPA Proposed Clean Power Plan 

March 26, 2015 

Key Points: 

1. IECA does not oppose action to reduce GHG emissions so long as it is cost-effective. 

Primary concerns with CPP are related to costs, precedent setting and potential 

reliability problems. 

2. Reduce competitiveness impact to manufacturing! 

a. More time is needed to comply and keep costs low. 

b. Remove 2020 interim target. 

c. More time to develop and submit SIPs. 

d. Use 2005 as the baseline. 

e. With more time to comply, reliability concerns diminish. 

3. Significant linkages of three major issues: 

a. Specifically include language that makes it clear that "out-side the fence-line" EGU 

regulation does not set precedent for the industrial sector. Support manufacturing jobs. 

Manufacturing has a proven history that it can reduce GHG intensity without regulation. 

b. "Ratable" versus "mass-based" emission reductions. (Growth versus no-growth.) With 

a mass-based policy re-shoring will not continue and industrial GHG leakage will become 

the norm, like in the EU . 

c. Educate states on Energy Intensive Trade Exposed (EITE) GHG leakage issues. 

• Include section in final rule that addresses implications of industrial GHG leakage, 

a federal recognized GHG policy issue. 

• Complete a study on the impacts to EITE industries. Do annually. 

• Complete border adjustment study. Evaluate solutions. Create industry advisory 

group. 

• Acknowledge GHG emissions via industrial imported goods. Two thirds of imports 

are from China. If we cannot produce them here, higher GHG content product 

will be imported. 

4. Industrial energy efficiency. 

a. Make clear that industrial electricity-related energy efficiency GHG reductions or 

avoided emissions should be credited to the industrial. 

b. GHG reductions and avoidances should not lower the industrial company baseline. 
c. Industrial energy efficiency credits sold to EGU entities to comply with CPP, must be 

voluntary. 

d. Do not impose ISO 50001 certification. 

e. Demand response: Credited to the industrial. 

f. Measurement and verification, a state responsibility. 

5. Industrial CHP/WHP: (both existing and new facilities). 

a. Should be classified as an "eligible compl iance option". 

b. For CHP, allow industrial CHP air emission permits budgets to apply against the EGU 

emission budget, provide full t hermal credit and increase line loss credit. 
EPA's Clean Power Pla

"Industrial Perspective

March 26, 2015 

Paul N. Cicio 

President 

Industrial Energy Consumers of America 
Industrial Energy Consumer

America 

• The Industrial Energy Consumers of America is 

association of leading non-partisan manufacturi

companies with $1 trillion in annual sales. More 

million employees. 

• Focused exclusively on availability, use and cost 

energy, power. 

• IECA membership represents a diverse set of mo

energy-intensive industries including: steel, iron 

aluminum, commodity and specialty chemicals, 

fertilizer, paper, refining, food processing, glass, 

and plastics. 
Manufacturing is Importan

U.S. Economy 

• Contributed $2.09 trillion to the eco

up from $1.73 trillion in 2013. 

• 12.0 percent of GDP. 

• Supports 17.6 million jobs, one in six 

private sector jobs (12 million direct 

percent). 
Manufacturing's Multiplier E

For every one dollar- returns $1.35 in indirect economi

Manufacturing 1 I I I 

Agriculture, Forestry, Fishing, and Hunting 

Construction 

0·97 

Transportation and Warehousing 

Information ~ $1'95 $0.88 

1 I I I Arts, Entertainment, Recreation, Accomodation, and Food Services 

I I I 

$0.84 

Mining 

Government 

Other Services, Except Government 

Educational Services, Health Care, and Social Assistance 

Finance, Insurance, Real Estate, Rental, and Leasing 

I I so.82 

I $r 

I $0.67 

1 $0.66 ~ $0.63 

Wholesale Trading 

J so.58 

Retail Trade 

Professional and Business Services 

Utilities 

1 

$0.55 

I 

{ $~·55 J 1 I $0. 2 

Source: Bureau of Economic Analysis, 2010 Annual Input-Output Tables 
A Success Story: Industrial Energy Consu

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• 29% of total U.S. natural gas 

• s% of total U.S. coal 

• Energy-Intensive Trade-Exposed (

industries consume 82% of the en

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Source: Energy Information Administration 

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The Energy-Intensive Indus

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• The only sector that requires globally 

co1npetitive energy. 

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• Co1npete globally and in an environiTient 

unfair co1npetition I Other countries sub

energy and Inanufacturing. 

• Unlil<e other sectors- shift production o

relocate facilities to be co1npetitive. 
Energy Price Sensitive Product

Essential for Economic Grow

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Glass 20-25% 

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Cement 25-35% 

Refining 15-20% (fuel only
Industrial Electricity Consump

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Energy Prices Significantly Contribute

Loss of 5.3 Million Manufacturing Jobs 

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Coal GasCC Gas Steam G
Thank You! 

Industrial Energy Consum

of America 

177 6 K Street, NW, Suite 720 

Washington, DC 20006 

202-223-1661 

r;>cicio@ieca-us.org 
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