# 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

3 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 5 

## 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/MWh8



## Renewable Energy Regions9 

## Renewable Energy Targets By Region10



## 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.11 

## Energy Generation in South Dakota12 

## 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

14 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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