EPA’s CLEAN POWER PLAN

South Dakota Public Utilities Commission

July 31, 2014
Proposed June 2, 2014.

Published in Federal Register June 18, 

2014, which began 120 public comment 

period.

Will reduce CO2 emissions from the 

power sector by approximately 30% by 

2030 from 2005 levels.

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EPA’s Clean Power Plan
U.S. Electricity Generation Capacity

in 2013 – 3,000 units covered

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Source: VENTYX Velocity Suite
The proposed rule establishes individual state goals 

in lbs CO2/MWh based on a consistent national 

formula.

State goals are based on the Best System of 

Emissions Reduction (BSER) = four building blocks.

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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 and 

biomass)

• 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

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State Goal Building Blocks
State Goal-Setting Formula

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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 Generation

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 Generation + RE MWh + N MWh + EE MWh
State Goals

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State 2012 Rate 

with RE

Final Goal % Reduction

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%

Note: Does not include affected facilities in Indian Country at this time.

State Goals in lbs CO2/MWh
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Renewable Energy Regions
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Renewable Energy Targets By Region
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Energy Efficiency Targets

South Dakota’s goal is based on ramping up energy 

efficiency from its 2012 level of 0.13% starting in 

2017 and reaching the 1.5% goal in 2024, which is 

held for every year thereafter through 2030.

This is projected to achieve a cumulative savings of 

10.52% in 2030 equal to 1,362 GWh.

Demonstration of compliance is in GWH of net 

cumulative savings as a % of retail sales.
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Energy Generation in South Dakota
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Affected Facilities in South Dakota

Facility Nameplate

Capacity

Type # of 

Units

Other

Ben 

French

25MW Coal 

Steam

5

4 of 5 are low 

utilization natural gas 

turbines

Big Stone 456MW Coal 

Steam

1

Utilizes co-generation

Deer 

Creek

170MW

154MW

NGCC

NGCC

2

2012 capacity factor 

was 1%
State Plans

States have broad flexibility to implement 

measures across the power sector to get 

reductions. 

They can rely on EPA’s building blocks, or on 

other measures. 

They can work individually, or with other states.

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__________________________________________________________
States Have Flexibility

Basis for state goal –

Potential emissions 

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

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Carbon emissions from affected power 

plants 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

States must submit an initial plan by June 30, 2016

State may request a one year extension for individual 

state plans to June 30, 2017

State may request a two-year extension for multi-state 

plans to June 30, 2018

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Next Steps

See the following website for more information and details on 

how to comment on the proposed rule: 

http://www2.epa.gov/carbon-pollution-standards

EPA is holding 4 public hearings the week of July 28:

Denver, Atlanta, Pittsburgh and Washington, D.C.

The 120-day public comment period goes from June 18 through 

October 16.

Conduct outreach to traditional and non-traditional stakeholders.

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