1 August 3, 2015

**EPA-DOE-FERC Coordination on Implementation of the Clean Power Plan** 

This document describes how the U.S. Environmental Protection Agency (EPA), the U.S. Department of Energy (DOE), and the Federal Energy Regulatory Commission (FERC) will coordinate efforts to help ensure continued reliabl e electricity generation and transmission during the implementation of the Clean Power Plan ( CPP). It describes one of several mechanisms that the three agencies, working indepen dently or jointly, can rely on to support the industry’s ongoing actions to ensure electricit y reliability during the implementation of the CPP. The CPP was developed and promulgated by EPA under Clean Air Act §111(d) to limit carbon dioxide emissions from fossil fuel-fired ele ctric power plants. Working together, the three agencies will make reasonable efforts to: (1) monitor the progress of states as they develop single-state or multi-state plans to meet t he requirements of the CPP; (2) monitor the implementation of state plans or, where applicable, a federal plan, to maintain awareness of any potential electric reliability effects; and (3) ensure coordination, as appropriate, to address any issues concerning reliability that may arise.
This document highlights only those activities the agencies may undertake jointly or in coordination with respect to reliability impacts re lated to the CPP. It creates no restrictions on other actions that the three agencies may take indi vidually or in concert. This is a living document, subject to change as determined by the ag encies. It reflects the thinking of the staff of the three agencies as of this date, August 3, 20 15. The agencies expect to revisit and revise this document as appropriate during the compliance period for the CPP. This effort is based on the successful working relationship that the three agencies established through their joint effort to work together to monitor reliability duri ng the implementation of the Mercury and Air Toxics Standards.2

**Background**
On June 2, 2014, EPA issued the proposed Clean Powe r Plan (CPP), consisting of emission guidelines for states to follow in develop ing plans to address greenhouse gas emissions from existing fossil fuel-fired electric generating units. Following careful consideration of public comments as well as extensi ve outreach with stakeholders and other federal and state agencies, the EPA Administrator s igned the final CPP on August 3, 2015. In the final guidelines, EPA provided state-specific g oals for carbon dioxide emissions from affected electric generating units, as well as guid elines for states to follow in developing plans to achieve the state-specific goals. Further, under the final CPP, each state must meet an interim emissions goal from 2022 to 2029 and a fina l goal starting in 2030.
In early 2015, FERC held a series of technical conf erences to discuss implications of compliance approaches to the CPP proposed rule. Sp ecifically, the Commission held a National Overview technical conference and three regional te chnical conferences. The technical conferences provided a forum for stakeholders to di scuss how to address any FERC-related issues that may arise in the context of potential s tate and regional compliance approaches to EPA’s CPP.

Under the final CPP, each state is required to subm it a plan that establishes source requirements and other measures that will achieve t he state’s goal. EPA’s CPP was designed to allow each state to tailor its plan to meet the nee ds and attributes of the power sector in the state and to take advantage of the opportunities th at each state has to reduce emissions. State and regional organizations and utilities responsibl e for ensuring reliability have various tools that they have been using, and can and will continu e to use, in carrying out their collective mission. In states that do not have an approved st ate plan, the federal plan will be implemented.3

**Monitoring Strategy**
During the development of the CPP, EPA consulted wi th DOE and FERC staff. The three agencies will continue to coordinate while the stat e plans are developed and implemented in order to help ensure that state plans can be implem ented in a manner that is fully compatible with the power sector’s ability to maintain electri c reliability.
The key to this monitoring effort will be frequent communications and coordination among the three agencies. EPA, DOE, and FERC will continue to meet and will share relevant new information on the development and implementati on of state plans. Further, the agencies will continue to discuss ongoing coordination, moni toring, and outreach activities. Each agency has designated an internal team or working g roup that focuses on these issues and has identified key staffers that can be contacted shoul d issues arise between interagency meetings.
EPA, DOE, and FERC each have contacts and outreach underway that will help to identify any areas of concern for electricity reliability th at may arise. Each of the agencies will continue to engage with stakeholders including:

• Utility trade associations and generation owners wi th fleets affected by EPA regulations;

• Organizations of state agencies relevant to the CPP including but not limited to NACAA, AAPCA, ECOS, NARUC and regional groups of regulator s, NASEO and others;

• Regional Transmission Organizations (RTOs), Indepen dent System Operators (ISOs), planning authorities and other utilities affected b y EPA regulations;

• The North American Electric Reliability Corporation (NERC) and affiliated regional reliability entities in regions affected by EPA reg ulations; and

• Additional entities that participate in reliability planning and execution.
EPA will engage with states as they develop their p lans. EPA Headquarters and Regional Office staff will work with each state to respond t o questions and issues as states assess options to meet the guidelines. These issues will be tracked by an EPA implementation team, which will then share any information related to re liability with FERC and DOE. Throughout the development of the state plans, EPA will encourage the state environmental offices, which have4

primary authority to develop state plans, to coordi nate closely with the state economic regulatory agencies (e.g. public utility commission s), state energy offices, and the grid planners and operators. EPA will maintain contact with thes e entities as well. After state plans are submitted, approved and put into effect, the implem entation team will maintain contact with states, in case the need arises for plan revisions.
DOE will provide technical and other assistance to states, their representative organizations, regions, and tribes to inform their compliance plan development, generally based upon their request for assistance. 1 DOE will continue to support stakeholder-convened discussions and workshops regarding the CPP to prov ide opportunities for discussion between state agencies and others. Further, DOE will conti nue to develop technical assistance resources that can inform state and multi-state plan developm ent. DOE will also provide its technical expertise to EPA, as requested, to inform any quest ions or decisions EPA has regarding the reliability implications of compliance plans.

FERC will continue to focus on issues related to th e CPP involving the reliability of the power grid, the efficient operation of wholesale el ectricity markets and the potential need for additional energy infrastructure, especially new el ectric transmission and natural gas interstate pipelines. FERC will also stay informed about the development of state plans so that it will be able to respond to Bulk-Power System reliability is sues that might arise. FERC will continue to engage with EPA on these issues, including providin g assistance on reliability and other matters as requested.
The three agencies will meet frequently, no less th an quarterly, to discuss what they are learning about the developing state plans and any p otential reliability concerns. Where potential reliability issues of concern are identif ied with elements of a developing plan from a state or group of states, EPA, DOE, and FERC will m eet to determine an approach to resolving the issues, which may include meeting with the stat e or states that are developing the plan

1 Technical assistance will be provided based on the resources available. For some DOE programs, techni cal assistance is provided upon request from eligible e ntities. For more information, see http://energy.gov/technicalassistance.5

along with the relevant planning authorities and/or reliability coordinators. EPA Regional Offices can help to organize and manage these meeti ngs.
Once state (or multi-state) plans are approved or a federal plan is imposed the three agencies anticipate continuing their coordinated ef fort to monitor implementation of the CPP and to address any issues related to electric relia bility. A more precise description of that coordinated effort will be developed as a timely re vision to this document. At a minimum EPA anticipates that that the expertise of both DOE and FERC will be key to addressing any reliability

concerns.