# EPA’s	CLEAN	POWER	PLAN

Sustainability	Series Mi/ga/ng	and	Adap/ng	to	Climate	Change	in	Colorado August	5,	2014

## Proposed	June	2,	2014.
Published	in	Federal	Register	June	18, 2014,	which	began	120	public	comment period	through	October	16.
EPA	used	its	authority	under	sec/on 111d	of	the	Clean	Air	Act	to	write	the proposed	rule.

2 

# EPA’s	Clean	Power	Plan

# U.S.	Electricity	Genera<on	Capacity in	2013	–	3,000	units	covered

3 Source: VENTYX Velocity Suite

# U.S.	Electricity	Genera<on	in	2012

45 

# Colorado	Electricity	Genera<on	in	2012

## The	proposed	rule	establishes	individual	state	goals in	lbs	CO2/ MWh based	on	a	consistent	na/onal formula.
It	applies	to	fossil	fuel-fired	units > 25MW.
State	goals	are	based	on	the	Best	System	of Emissions	Reduc/on	(BSER)	=	four	building	blocks.

6 

# 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 (including hydro)

• New nuclear energy

• Relicensing of at-risk nuclear facilities

4. Demand-Side Energy Efficiency - 1.5% per year • Residential, commercial, agricultural, and industrial energy efficiency

• Transmission efficiency

7 

# State	Goal	Building	Blocks

# State	Goal-SeNng	Formula

8 

### Approach	for	seXng	state	emission rate	goals	uses historical	statelevel data	as	a	basis	for	applying the	relevant	building	blocks Currently	using	2012	data	for state-level	net	genera/on	and emissions	for	coal,	O/G	steam
and	NGCC Will	rely	on	EPA eGrid data
which	combines	emission	data reported	under	EPA	programs
with	EIA	data	for	units	not covered	under	EPA	programs EE	goals	based	on	ramping	up from	historic	performance (using	EIA/u/lity	data)	to
achievable	levels	in	2020-2030 based	upon	experience	from leading	states

Benefits:

► Aggregate –	use	of	aggregate
state-level	fossil	data	reducesthe	goal’s	vulnerability	to	unitspecific	limita/ons;	for example,	we	do	not	have	to defend	the	no/on	that	every NGCC	unit	can	ramp	up	to 70%,	only	that	this	can	be
achieved	at	the	state’s	fleet level	(e.g.,	some	units	could	be at	60%,	some	at	80%)

► Historical –	measured, monitored,	and	reported	data



## 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	Genera/on 

## 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	Genera/on	+ RE MWh +	N MWh +	EE MWh9 

## State 2012	Rate Final	Goal %	Reduc<on

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% 

# State	Goals	in	lbs	CO2/ MWh10 

# Renewable	Energy	Regions11 

# Renewable	Energy	Targets	By	Region

# State	Plans

States	have	broad	flexibility	to	implement measures	across	the	power	sector	to	get reduc/ons.
They	can	rely	on	EPA’s	building	blocks,	or	on other	measures.
They	can	work	individually,	or	with	other	states.

12 __________________________________________________________

# States	Have	Flexibility

Basis	for	state	goal

– Potential	e missions 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

13Carbon emissions from affected powerplants in an example state As	an	example,	states	could	do	less	in	the	early	years,	and	more	in	the	later years,	as	long	as	on	average	it	meets	the	goal

Timing of Power Plant Emission Reductions

# Deadline	for	State	Plans

EPA	will	finalize	the	rule	in	June	2015 States	must	submit	an	ini/al	plan	by	June	2016 State	may	request	a	one	year	extension	for individual	state	plans	to	June	2017 State	may	request	a	two-year	extension	for	mul/- state	plans	to	June	2018

14 __________________________________________________________15 

# Results	of	the	Proposal

__________________________________________________________ 

## Applica/on	of	the	BSER	will	result	in	a	reduc/on 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.16 

# Results	of	the	Proposal

__________________________________________________________ 

## Addi/onally,	emissions	of	PM2.5,	SO2,	and	NO2 are	es/mated	to	be	cut	by	over	25%	in	2030. Electricity	bills	are	es/mated	to	be	down	by	~8% by	2030	due	to	energy	efficiency	measures.

The	climate	and	health	benefits	are	worth	an es/mated	$55	to	$93	billion	per	year	in	2030.17 

# EPA’s	Public	Hearings

EPA	held	4	public	hearings	the	week	of	July	28	in Denver,	Atlanta,	Piksburgh,	and	Washington,	D.C. 2,784	people	akended	in	total,	762	in	Denver 1,322	people	spoke	in	total,	388	in	Denver

# How	to	Comment	on	the	Proposed	Rule

See	the	following	website	for	more	informa/on	and details	on	how	to	comment	on	the	proposed	rule: hkp://www2.epa.gov/carbon-pollu/on-standards

• Federal eRulemaking portal

• Email	A-and-R-Docket@epa.gov

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

• Mail :	Environmental	Protec/on	Agency,	EPA	Docket	Center	(EPA/DC),	Mail	Code	28221T, Aken/on	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	Cons/tu/on	Ave.,	NW,	Washington,	DC,	20460.

18 Be sure to reference Docket ID: EPA-HQ-OAR-2013-0602

# Thank	you!

Laura	Farris, EPA	R8	Climate	Change	Coordinator

19