GHG EGU 111(d)Emission Guidelines –State Plan ImplementationJune 24, 2014Deliberative – Do Not Cite or QuoteGeneral Overview of Proposal►Proposal sets an interim (2020-2029) and final goal(2030) for affectedEGUs in each state to reduce carbon pollution►Rate-based performance level (lb CO2/MWh)►EPA is not prescribing measures states need to implement to meet thegoal►States have flexibility to choose what goes into their plan – how andwhen to get the necessary reductions, provided thegoals are met inestablished timeframe►Choose form of goal (rate or translate to mass)►Choose what works best in a state, tailored to state needsand policyobjectives►Opportunity to build on existing energy efficiency and renewable energyprograms►Flexible over time and place – states can look across the electricitysystem to achieve reductions from affected EGUs, and have 10years tomeet the interim goal on average basis►Option to work with other states through multi-state plan, which canlower costs►Fits into existing state and utility electricity sector planning processes2Deliberative – Do Not Cite or QuoteTiming for State Plan Submittals►Individual and multi-state plans due June 30, 2016►Some states may reasonably need additional time tosubmit completeplans, due legislative approval process, rulemaking, complexitiesassociated with regional approaches►Providing states with additional time to submit complete plans ifjustified, and if states provide specific information►Proposed timing of extensions to submit a complete plan,if justified andsupported:•Individual state plans: a one-year extension (June30, 2017)•Multi-state plans: a two-year extension (June 30, 2018); would submit aprogress report on June 30, 20173Deliberative – Do Not Cite or QuoteBy June 30, 2016state submits initial multistate 111(d) plan andrequest for 2-year extensionEPA reviews initial 111(d)plan and determines ifextension is warrantedby June 30, 2017state submits progressreport on final 11(d) plandevelopmentby June 30, 2018states submits multistate 111(d) planState submits Negative DeclarationState submits complete Implementation Plan by June30, 2016State submits Initial Implementation Plan by June 30, 2016 and request 1-year extensionState submits Initial Multi-state Implementation Plan by June 30, 2016 and request 2-year extensionJune 1, 2015EPA Promulgatesfinal 111(d)EmissionGuidelinesby June 30, 2016state submits negativedeclarationEPA publishes FR noticeby June 30, 2016state submits 111(d) planby June 30, 2016state submits initial 111(d)plan and request for 1-yearextensionEPA reviews initial 111(d)plan and determines ifextension is warrantedby June 30, 2017state submits complete111(d) plan20152019111 (d) State Plan Timeline2020111(d)complianceperiod begins2020EPA reviews plan andpublishes final actionwithin 12 months onapproval/disapprovalEPA reviews plan andpublishes final actionwithin 12 months onapproval/disapprovalEPA reviews plan andpublishes final actionwithin 12 months onapproval/disapproval201620172018Deliberative – Do Not Cite or QuoteInitial Plan Content►If a state seeks an extension, must submit an initial plan withfollowing content by June 30, 2016:►Description of plan approach and progress made in developing complete plan►Initial quantification of the level of emission performance that will be achieved throughthe plan►Commitment to maintain existing measures that limitor avoid CO2emissions (e.g.,RPS, unit-specific limits on operation or fuel utilization), at least until the complete planis approved►Comprehensive roadmap for completing the plan, including process, analyticalmethods, and schedule (including milestones) specifying when all necessary plancomponents will be complete (e.g., projection of emission performance; implementinglegislation, regulations and agreements; necessaryapprovals)►Identification of existing programs state intends to rely on to meet its goal (if used)►Executed agreement(s) with other states (e.g., MOU), if regional approach is beingpursued►Commitment to submit a complete plan by the applicable required date and actionsthe state will take to show progress in addressingincomplete plan components►Description of steps already taken toward developing complete plan►Evidence of opportunity for public comment on the initial plan5Deliberative – Do Not Cite or QuoteEvaluating the Sufficiency of Plans►The EPA will evaluate the sufficiency of each planbased on theplan addressing twelve plan components and on fourgeneralcriteria to determine whether a state’s plan is “satisfactory” underCAA section 111(d)(2)(A)►Four general criteria1.A state plan must contain enforceable measures thatreduce EGUCO2emissions from affected EGUs2.Measures in the plan must be projected to achieve emissionperformance equivalent to or better than the applicable statespecific CO2goal on a timeline equivalent to that in the emissionguidelines3.EGU CO2emission performance under the state plan must bequantifiable and verifiable4.The state plan must include a process for state reporting of planimplementation (at the level of the affected entity), CO2emissionperformance outcomes, and, if necessary, implementation ofcorrective measures6Deliberative – Do Not Cite or QuoteRequired State Plan Components►State plans must include 12 components:1.Identification of affected entities (affected EGUs and otherresponsible parties)►A state may identify affected EGUs as the only entitiessubject torequirements in its state plan►A state plan may include other non-EGU affected entities that haveenforceable obligations under the plan2.Description of plan approach and geographic scope►A state may participate in a multi-state plan or develop a state-specific plan►A multi-state approach may provide participating states with greater flexibilityand options3.Identification of required emission performance level foraffected EGUs►Emission performance level must be equal to or better than state CO2emission performance goal for affected EGUs►A state may convert its goal from a rate basis to a mass basis, if appropriate►See “Projecting EGU Emission Performance in State Plans”TSD fordiscussion of considerations related to this translation7Deliberative – Do Not Cite or QuoteRequired State Plan Components (cont.)4.Demonstration that plan is projected to achieve requiredemission performance level►State plan must demonstrate that the suite of enforceable measures in theplan are projected to achieve the required emission performance level foraffected EGUs specified in the plan (on a rate or mass basis, as applicable)►During the initial 2020-2029 plan performance period, demonstration on anaverage basis (rate goal) or cumulative basis (massgoal),►Plan must demonstrate it will achieve the requiredfinal emission performancelevel in 2030►This demonstration includes a detailed descriptionof the analytic process, tools,and assumptions used to project future CO2emission performance►Considerations related to projecting the emission performance of affected EGUsunder a state plan are discussed in the “ProjectingEGU CO2EmissionPerformance in State Plans” TSD8Deliberative – Do Not Cite or QuoteRequired State Plan Components (cont.)5.Identification of milestones►Periodic programmatic milestones are required to demonstrate programimplementation (for plans that are not “self-correcting”)►“Self-correcting” plans inherently assure full achievement of the state plan’s required level ofemission performance through requirements that areenforceable against affected EGUs►Milestones must have specific achievement dates appropriate to theprograms and measures in the plan►State plan demonstration must also indicate the plan’s trajectory of emissionperformance improvement►State must compare the collective emission performance achieved by affected entities in thestate during the previous two-year period with performance projected in the state plan,beginning in 2022 and for each year during the interim performance period►See preamble Section VIII.B.2.d6.Identification of corrective measures►A plan without self-correcting mechanisms must specify corrective measuresthat will be implemented if the state plan fails to achieve its projectedemission performance trajectory by more than 10 percentof the plan’sprojection and a process and a schedule for implementingsuch measures►See preamble Sections VIII.B.2.d and VIII.B.2.e9Deliberative – Do Not Cite or QuoteRequired State Plan Components (cont.)7.Identification of emission standards and any other measures►State plan must identify the applicable emission standards for affectedentities (e.g., individual affected EGUs, groups of affected EGUs, all thestate’s affected EGUs in aggregate, affected entities that are not EGUs)►State plan must identify any implementing and enforcing measures for theemission standards, including the schedule for compliance for each affectedentity►Averaging times for emission standards for an affected entity:• Rate-based emission performance level – cannot exceed 12 months• Mass-based emission performance level – cannot exceed 3 years8.Demonstration that each emission standard is quantifiable,non-duplicative, permanent, verifiable, and enforceable►State plan must describe how each emission standard has thesecharacteristics, recognizing the non-traditional nature ofsome potentiallyaffected entities►An emission standard is quantifiable if it can be reliably measured usingtechnically sound methods in a replicable manner10Deliberative – Do Not Cite or QuoteRequired State Plan Components (cont.)9.Identification of monitoring, reporting, and recordkeepingrequirements►Plan must include monitoring and reporting requirements for CO2emissionsand energy output (if applicable) from affected EGUs►Plan must include monitoring and reporting requirements for other affectedentities if include in the plan►For additional information see Part 75 Monitoring and ReportingConsiderations TSD and State Plan Considerations TSD10.Description of state reporting►Annual reports, due six (6) months after calendar yearend►Must include all information in 40 CFR 60.5815 (Part75 reporting program)►EGUs may report emissions directly to EPA, if a state wants to incorporatethe Part 75 reporting program; this option may save state resources►State must report all information necessary to demonstrate planperformance and implementation, including programmatic milestones andimplementation of corrective actions (if relevant)►For additional information see Part 75 Monitoring and ReportingConsiderations TSD and State Plan Considerations TSD11Deliberative – Do Not Cite or QuoteState Plan Components (cont.)11.Certification of hearing on state plan►State plan must provide certification that it helda hearing on the state plan, a list ofwitnesses (with their organizational affiliation, if any) appearing at the hearing, and abrief written summary of each presentation or written submission, pursuant to therequirements of the EPA framework regulations at 40CFR 60.23-60.2912.Supporting material►State must provide supporting material and technical documentation forapplicable plan components•Must demonstrate that it has the legal authority for each implementation andenforcement component in its plan, as part of a federally enforceable emissionstandard, by providing material related to the state’s legal authority used toimplement and enforce each component of the plan, such as statutes,regulations, public utility commission orders, andany other applicable legalinstruments•Must provide analytical materials used in translating a rate-based goal to a massbased goal if a mass-based goal is used, analyticalmaterials used in projectingemission performance that will be achieved throughthe plan, relevantimplementation materials, and any additional technical requirements andguidance the state proposes to use to implement elements of the plan12Deliberative – Do Not Cite or QuoteSummary of Required State Plan Components►Identification of affected entities (affected EGUs and other responsibleparties)►Description of plan approach and geographic scope►Identification of state emission performance level►Demonstration that plan is projected to achieve emission performancelevel►Identification of milestones►Identification of corrective measures►Identification of emission standards and any other measures►Demonstration that each emission standard is quantifiable, nonduplicative, permanent, verifiable, and enforceable (recognizing nontraditional nature of some potentially affected entities)►Identification of monitoring, reporting, and recordkeeping requirements►Description of state reporting►Certification of hearing on state plan►Supporting material13Deliberative – Do Not Cite or QuoteClean Power Plan ToolboxGoal: Provide centralized, streamlined information to assist states with state plandevelopment and submittalCurrently:►Links to proposal and technical support documents►Federal resources to assist states in evaluating state plan approaches►Not required for state plan development►Information on current state policies and programsAfter the rule is finalized:►Additional information states will need to include intheir state plans►Checklist►Tools, if appropriateThis is a dynamic resource that will be updated periodically, and we are solicitinginformal feedback on additional information that would be helpful to states; statescan provide comments through the website14Deliberative – Do Not Cite or Quotehttp://www2.epa.gov/cleanpowerplantoolbox1516Regional ContactsRegion Name Email Phone1 Shutsu Wongwong.shutsu@epa.gov617-918-10782 Gavin Laulau.gavin@epa.gov212-637-37083 Mike Gordongordon.mike@epa.gov215-814-20394 Ken Mitchellmitchell.ken@epa.gov404-562-90655 Alexis Caincain.alexis@epa.gov312-886-70186 Rob Lawrencelawrence.rob@epa.gov214-665-65807 Ward Burnsburns.ward@epa.gov913-551-79608 Laura Farrisfarris.laura@epa.gov303-312-63889 Ray Saracinosaracino.ray@epa.gov415-972-336110 Madonna Narvaeznarvaez.madonna@epa.gov206-553-2117