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## EPA FACT SHEET: Proposed Carbon Pollution Standard for New Power Plants

On March 27, 2012, the Environmental Protection Agency (EPA) proposed a Carbon Pollution

Standard for New Power Plants. This common

Ͳ sense step under the Clean Air Act would, for the

first time, set national limits on the amount of carbon pollution power plants, built in the

future, can emit.

EPA’s proposed standard reflects the ongoing trend in the power sector to build cleaner plants

that take advantage of American

Ͳ made technologies. The agency’s proposal, which does not

apply to plants currently operating or new permitted plants that begin construction over the

next 12 months, is flexible and would help minimize carbon pollution through the deployment

of the same types of modern technologies and steps that power companies are already taking

to build the next generation of power plants. EPA’s proposal would ensure that this progress

toward a cleaner, safer and more modern power sector continues.

Power plants are the largest individual sources of carbon pollution in the United States and

currently there are no uniform national limits on the amount of carbon pollution that future

power plants will be able to emit. Consistent with the US Supreme Court’s decision, in 2009,

EPA determined that greenhouse gas pollution threatens Americans' health and welfare by

leading to long lasting changes in our climate that can have a range of negative effects on

human health and the environment.

FUTURE POWER PLANTS

x The nation’s electricity comes from diverse and largely domestic energy sources,

including fossil fuels, nuclear, hydro and, increasingly, renewable energy sources. The

proposed standard would not change this fact, and EPA put a focus on ensuring this

standard provides a pathway forward for a range of important domestic resources,

including coal with technologies that reduce carbon emissions.

x The proposed rule would apply only to new fossil

Ͳ fuel

Ͳ fired electric utility generating

units (EGUs). For purposes of this rule, fossil

Ͳ fuel

Ͳ fired EGUs include fossil

Ͳ fuel

Ͳ fired

boilers, integrated gasification combined cycle (IGCC) units and stationary combined

cycle turbine units that generate electricity for sale and are larger than 25 megawatts

(MW).

x EPA’s proposal reflects the ongoing trend in the power sector—a shift toward cleaner

power plants that take advantage of modern technologies that will become the next

generation of power plants. EPA’s proposed rule would ensure this progress continues.

x New plants can choose to burn any fossil fuel to generate electricity, including natural2

gas as well as coal with the help of technologies that reduce carbon emissions..

x The proposal would not apply to:

o Existing units including modifications such as changes needed to meet other air

pollution standards

o New power plant units that have permits and start construction within 12

months of this proposal; or units looking to renew permits that are part of a

Department of Energy demonstration project, provided that these units start

construction within 12 months of this proposal. These units are called

“transitional” units.

o New units located in non

Ͳ continental areas, which include Hawaii and the

territories.

o New units that do not burn fossil fuels (e.g., burn biomass only).

PRACTICAL, FLEXIBLE, ACHIEVABLE

x EPA’s proposed standard reflects the ongoing trend in the power sector to build cleaner

plants, including new, clean

Ͳ burning, efficient natural gas generation, which is already

the technology of choice for new and planned power plants.

x At the same time, the rule creates a path forward for new technologies to be deployed

at future facilities that would allow companies to burn coal, while emitting less carbon

pollution.

x EPA is proposing that new fossil

Ͳ fuel

Ͳ fired power plants meet an output

Ͳ based standard

of 1,000 pounds of CO 2 per megawatt

Ͳ hour (lb CO 2 /MWh gross).

x New natural gas combined cycle (NGCC) power plant units should be able to meet the

proposed standard without add

Ͳ on controls. In fact, based on available data, EPA

believes that nearly all (95%) of the NGCC units built recently (since 2005) would meet

the standard.

x New power plants that are designed to use coal or petroleum coke would be able to

incorporate technology to reduce carbon dioxide emissions to meet the standard, such

as carbon capture and storage (CCS).

x Some states, including Washington, Oregon and California, currently limit GHG

pollution. Other states, including Montana and Illinois, currently require CCS for new

coal generation.3

x As part of our focus on ensuring continued use of a diverse range of domestically

produced fuel sources, the proposed standard provides flexibilities for new power

plants to phase in technology to reduce carbon pollution. New power plants that use

CCS would have the option to use a 30

Ͳ year average of CO 2 emissions to meet the

proposed standard, rather than meeting the annual standard each year.

o Plants that install and operate CCS right away would have the flexibility to emit

more CO 2 in the early years as they learn how to best optimize the controls.

o A company could build a coal

Ͳ fired plant and add CCS later. For example, a new

power plant could emit more CO 2 for the first 10 years and then emit less for the

next 20 years, as long as the average of those emissions met the standard.

o CCS is expected to become more widely available, which should lead to lower

costs and improved performance over time.

x EPA, DOE, and industry projections indicate that, due to the economics of coal and

natural gas among other factors, new power plants that are built in over the next

decade or more would be expected to meet this proposed standard even in the absence

of the rule.

x Because this standard is in line with current industry investment patterns, this proposed

standard is not expected to have notable costs and is not projected to impact electricity

prices or reliability.

POWER PLANT CARBON POLLUTION IMPACTS PUBLIC HEALTH AND THE ENVIRONMENT

x This standard ensures that power companies investing in long

Ͳ lived new fossil fuel fired

power plants will use clean technologies that limit harmful carbon pollution.

x Carbon pollution stays in the atmosphere and contributes to climate change, which is a

threat to public health and the environment for current and future generations.

x EPA is taking common

Ͳ sense steps to limit these emissions, by addressing emissions

from fossil

Ͳ fired power plants, which are the largest new sources of carbon pollution.

x Unchecked greenhouse gas pollution threatens Americans' health and welfare by

leading to long

Ͳ lasting changes in our climate, with impacts that could include:

o Increased ground level ozone pollution, otherwise known as smog. Exposure to

ground level ozone is linked to asthma and premature death.

o Longer, more intense and more frequent heat waves.

o More intense precipitation events and storm surges.

o Less precipitation and more prolonged drought in the West and Southwest.4 o More fires and insect pest outbreaks in American forests, especially in the West.

x The health risks from climate change are especially serious for children, the elderly, and

those with heart and respiratory problems.

OPEN, TRANSPARENT PROCESS

x In early 2011, EPA held several listening sessions to gain important information and

feedback from key stakeholders and the public before initiating the rulemaking process

to set Carbon Pollution Standard for new power plants. Each listening session included a

round table discussion and public comments. EPA also solicited written comments. EPA

considered these comments when drafting this proposal.

x The EPA will accept comment on this proposed rule for 60 days following publication in

the Federal Register

.

x EPA will hold public hearings on this proposal. The dates, times, and locations of the

public hearings will be available soon. They will be published in the Federal Register and

also listed on www.epa.gov/carbonpollutionstandard

BACKGROUND

x On April 2, 2007, in a landmark decision in Massachusetts v. EPA, the Supreme Court

determined that greenhouse gases, including carbon dioxide, are air pollutants under

the Clean Air Act and EPA must determine if they threaten public health and welfare.

x On December 15, 2009, the EPA Administrator found that the current and projected

concentrations of greenhouse gases endanger the public health and welfare of current

and future generations.

x On December 23, 2010, EPA announced a proposed settlement agreement to issue rules

that would address GHG pollution from certain fossil fuel

Ͳ fired EGUs. This agreement

addressed, in part, EPA’s September 2007 remand of its February 2006 final decision not

to set standards for boilers.

HOW TO COMMENT

x EPA will accept comment on the proposal for 60 days after publication in the Federal

Register. Comments on the proposed standard should be identified by Docket ID No. EPA

Ͳ

HQ

Ͳ OAR

Ͳ 2011

Ͳ 0660. All comments may be submitted by one of the following methods:

x www.regulations.gov: Follow the on

Ͳ line instructions for submitting comments.5

x E

Ͳ mail: Comments may be sent by electronic mail (e

Ͳ mail) to a

Ͳ and

Ͳ r

Ͳ Docket@epa.gov.

x Fax: Fax your comments to: 202

Ͳ 566

Ͳ 1741.

x Mail: Send your comments to: Air and Radiation Docket and Information Center,

Environmental Protection Agency, Mail Code: 2822T, 1200 Pennsylvania Ave., NW,

Washington, DC, 20460.

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

3334, 1301 Constitution Ave., NW, Washington, DC, 20460. Such deliveries are only

accepted during the Docket’s normal hours of operation, and special arrangements

should be made for deliveries of boxed information.

x EPA will hold public hearings on this proposal. The dates, times, and locations of the public

hearings will be available soon. They will be published in the Federal Register and also

listed on www.epa.gov/carbonpollutionstandard

FOR MORE INFORMATION

x The proposed rule called “Standards of Performance for Greenhouse Gas Emissions for

New Stationary Sources: Electric Utility Generating Units” is posted at:

www.epa.gov/carbonpollutionstandard.