# EPA’s Proposed Clean

Power Plan

Lisa Conner U.S. EPA, Office of Air and Radiation Office of Air Quality Planning and Standards Sector Policies and Programs Division

October 16, 2014

# Clean Power Plan Summary ► 

# EPA’s proposed Clean Power Plan looks across our whole power sector to take important steps to 

# protect our health and environment, and fight climate change by: ► 

## Reducing nationwide carbon dioxide (CO 2

## ) emissions, from the power sector by approximately 30% from 2005 

## levels by 2030 ► 

## Maintaining an affordable, reliable energy system ► 

## Achieving significant co - benefits by cutting hundreds of thousands of tons of harmful particle pollution, sulfur 

## dioxide and nitrogen oxides ► 

## Providing important health protections to the most vulnerable, such as children and older Americans ► 

## Leading to health and climate benefits worth an 

## estimated $55 billion to $93 billion in 2030 2

# Clean Power Plan−How it Works ► 

## The agency’s proposal: ► 

### Was shaped by public input, presents trends and proven technologies ► 

### Recognizes the progress states, cities and businesses have already made ► 

### Builds on ongoing efforts ► 

## The proposal aims to cut carbon pollution and leverage cleaner energy sources by: ► 

### Setting achievable, enforceable state goals to cut carbon pollution per megawatt hour of electricity generated ► 

### Laying out a national framework that gives states the flexibility to chart their own, customized path to meet the goals in their state plans

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# Clean Power Plan: State Goals ► 

### EPA took an approach that viewed the Clean Air Act factors in determining Best System of Emission Reduction (BSER) in light 

### of the interconnected nature of power generation; the BSER factors are: ► 

### Costs ► 

### Size of reductions ► 

### Technology ► 

### Feasibility ► 

### To set the goals, EPA looked to see what states could reasonably accomplish by 2030, using the four strategies that we determined meet the definition of BSER: 1. Measures to make fossil fuel -fired plants more efficient 

### 2. Increased use of high efficiency, natural gas combined cycle (NGCC) units 

### 3. Generating electricity from low- or zero- emitting facilities 

### 4. Demand -side energy efficiency 4Building Block Strategy EPA Used to Calculate the State Goal Maximum Flexibility: Examples of State Compliance Measures 1. Make fossil fuel -fired power plants more efficient Efficiency Improvements Efficiency improvements Co-firing or switching to natural gas Coal retirements Retrofit CCS 2. Use lower- emitting power sources more Dispatch changes to existing natural gas combined cycle (CC) Dispatch changes to existing natural gas CC 3. Build more zero/lowemitting energy sources Renewable Energy Certain Nuclear New NGCC Renewables Nuclear (new and up - rates) New coal with CCS 4. Use electricity more efficiently Demand -side energy efficiency programs Demand -side energy efficiency programs Transmission efficiency improvements Energy storage
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# Clean Power Plan: State Goals (cont.)

# Examples of Regulatory Mechanisms ► 

## States can consider a variety of approaches to ensure that limits on carbon pollution are addressed in the course of 

## normal power sector planning and operation through: ► 

### Direct emission limits on power plants (rate - or mass - based) ► 

### Regional emission reduction agreements, such as multi -state emission budget trading programs ► 

### Legislation or regulations establishing EE resource standards (EERS) and/or renewable portfolio standards (RPS) ► 

### Integrated resource plan (IRP) -type approaches for reducing utility fleet CO 2 

### emissions that use multiple measures (e.g., “portfolio” approach)

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# Clean Power Plan: Timing Flexibilities

• Responding to input from 

## stakeholders, EPA proposed a flexible compliance timeline
 2030 compliance date
—giving states 10 - 15 years to meet 

### the goals  2020 -2029 glidepath, giving states time to ramp up programs and to be sensitive to reliability and enforceability issues

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# Design of State Plans
► 

### Emission guidelines provides a list of required state plan components that must be submitted to EPA for review/approval ► 

### Identification of affected entities ► 

### Description of plan approach and geographic scope ► 

### Identification of state emission performance level ► 

### Demonstration that plan is projected to achieve emission performance level ► 

### Identification of emission standards ► 

### Demonstration that each emission standard is quantifiable, non duplicative, permanent, verifiable, and enforceable ► 

### Identification of monitoring, reporting and recordkeeping requirements ► 

### Description of state reporting ► 

### Identification of milestones ► 

### Identification of backstop measures ► 

### Certification of hearing on state plan ► 

### Supporting material

813 By June 30, 2016 State submits initial multi state plan and request for 2- year extension EPA reviews initial plan and determines if extension is warranted by June 30, 2017 State submits progress report of plan by June 30, 2018 States submits multistate plan State submits Negative Declaration

State submits complete implementation Plan by June 30, 2016

State submits initial Plan by June 30, 2016 and request 1 -year extension

State submits initial m ulti -state P lan by June 30, 2016 and request 2 -year extension Emission Guideline Promulgation June 2015 by June 30, 2016

State submits n egative declaration EPA publishes FR notice

by June 30, 2016 State submits plan

by June 30, 2016 State submits initial plan and request for 1 -year extension EPA reviews initial plan and determines if extension is warranted by June 30, 2017 State submits complete plan 2015 2019 

# Proposed Implementation Timeline

Compliance period begins 2020 2020

EPA reviews plan and publishes final decision within 12 months on approval/disapproval

EPA reviews plan and publishes final decision within 12 months on approval/disapproval

EPA reviews plan and publishes final decision within 12 months on approval/disapproval 2016 2017 2018

# Input on the Proposed Plan ► 

### 165 -day public comment period open through December 1, 2014 ► 

### EPA held four public hearings ► Almost 3,000 attendees, with more than 1,300 speakers ► So far, the agency has received more than 750,000 public comments 

### ► 

### EPA Regional Offices ► Our regional offices are great resources on specific state issues; we encourage you to touch base with the 111(d) contact in each of the regions 

### ► 

### Outreach to States ► EPA continues to meet with states and other stakeholders to answer questions and get input ► As States work to develop state plans over the coming months and years, ideas about potential opportunities in your state’s plan can be addressed to state officials
• State environmental agencies
• State public utility commissions

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