CLEAN POWER PLAN PROPOSALReducing Carbon Pollution FromExisting Power PlantsDeborah JordanDirector, Air DivisionUS EPA, Region 9Regional Tribal Operations CommitteeOctober 15, 2014What is the Greenhouse Effect?2Causes of Climate ChangeHuman RoleThe atmosphericconcentration ofgreenhouse gases hasincreased over the pasttwo centuries, largelydue to human-generatedcarbon dioxide emissionsfrom burning fossil fuels.This increase hasamplified the naturalgreenhouse effect bytrapping more of theenergy emitted by theEarth. This changecauses Earth's surfacetemperature toincrease.34Average Temperatures in the Southwestern UnitedStates, 2000-2013 versus Long-Term Averagehttp://www.epa.gov/climatechange/science/indicators/download.htmlCarbon Pollution and Health•Public health risks include:–Increase in heat stroke and heat-related deaths•Extreme heat events are the leading weather-relatedcause of death in the U.S.–Worsening smog and in some cases particle pollution–Increasing intensity of extreme events, like hurricanes,extreme precipitation and flooding–Increasing the range of insects that spread diseases suchas Lyme disease and West Nile virus.5Climate Change and Tribes•Climate Change may affect:–Availability of culturally-important plants andanimals–Frequency of drought and wildfires–Agricultural productivity–Availability of hydropower6President Obama’s Climate Action Plan: EPA’s Role7•Reducing carbon emissionsfrom power plants•Building a 21stcenturytransportation sector•Cutting energy waste inhomes, businesses, andfactories•Reducing methane and HFCs•Leading international efforts toaddress global climate changeReducing Carbon Pollution from Power PlantsPresident’s Directive to EPA:Develop carbon pollution standards, regulations orguidelines, as appropriate, for:1. New power plants•Proposed: January 8, 20142. Modified and reconstructed power plants•Proposal: June 2014•Final: June 20153. Existing power plants•Proposed Guidelines: June 2014•Final Guidelines: June 2015•State Plans due: June 20168Why is EPA Proposing to Address CO2?9Proposed Clean Power Plan•In June, EPA proposed guidelines for states to followto reduce CO2emissions•The guidelines include state-specific goals for thepower sector that account for the unique mix ofpower sources in each state•States will be looking for opportunities andpartnerships for cleaner energy development10Proposed Clean Power Plan and Tribes•In June, EPA sent invitations to all Tribal leaderstoengage in government-to-government consultation•EPA met with several tribes that requestedconsultation•This fall, EPA intends to propose goals for areas ofIndian country and territories with affected powerplants•EPA will send invitations to all Tribal leaders followingthe supplemental proposal in the fall11Clean Power Plan: Process12States Choose How to Meet the Goals•Demand-side energy efficiencyprograms.*•Generating electricity fromlow/zero-emitting facilities.*•Expanding use of existing NGCCunits.*•Transmission efficiencyimprovements.•Energy storage technology.•Working with utilities to considerretiring units that are highemitting.•Energy conservation programs.•Retrofitting units with partial CCS.•Use of certain biomass.•Efficiency improvements at higheremitting plants.*•Market-based trading programs.•Building new renewables.•Dispatch changes.•Co-firing or switching to natural gas.•Building new natural gas combinedcycle units.*Measures EPA used in calculating state goals13Benefits and Costs•Nationwide, by 2030, this rule would help reduce CO2emissionsfrom the power sector by approximately 30% from 2005 levels•Also by 2030, reduce by over 25% pollutants that contribute to the soot and smogthat make people sick•These reductions will lead to public health and climate benefitsworth an estimated $55 billion to $93 billion in 2030•Proposal will avoid an estimated 2,700 to 6,600 premature deathsand 140,000 to 150,000 asthma attacks in 2030•Health and climate benefits far outweigh the estimated annualcosts of meeting the standards•Estimated at $7.3 billion to $8.8 billion in 2030•Proposal protects children and other vulnerable Americans from thehealth threats posed by a range of pollutants•Move us toward a cleaner environment for future generations•Ensures an ongoing supply of the reliable, affordable power neededfor economic growth14Affected Power Plants in Indian Country•EPA did not propose goals for areas of Indian countrywith affected power plants in the June 18 proposal•EPA is aware of four potentially affected power plants inIndian country–Four Corners Power Plant and Navajo Generating Station onNavajo tribal lands within New Mexico and Arizona–South Point Energy Center on Fort Mojave tribal lands withinArizona–Bonanza Power Plant on Ute tribal lands within Utah15Upcoming Supplemental Proposal•In the fall, EPA intends to publish a SupplementalProposal to establish CO2emission performance goalscovering areas of Indian country and territories withaffected EGUs•Public hearing will likely be held in Arizona•EPA intends to take final action by June 2015•EPA will send invitations to Tribal leaders to engage ingovernment-to-government consultation on theSupplemental Proposal16Questions for Consideration•How can tribes without affected power plants alsoparticipate in the program (e.g., through renewableenergy or energy efficiency programs) to help meetgoals?•Are there other issues we should be aware of?•Input can be provided to Pat Childers(childers.pat@epa.gov) or Laura McKelvey(mckelvey.laura@epa.gov) of the EPA Office of AirQuality Planning and Standards17Next Steps•The proposed rule, as well as informationabout how to comment and supportingtechnical information, are available online at:http://www.epa.gov/cleanpowerplan•The public comment period on the proposalclosesDecember 1, 2014•Comments on the proposal should beidentified byDocket ID No. EPA-HQ-OAR-2013-0602and may be submitted throughwww.regulations.gov•Supplemental Proposal in Fall 201418Other Actions under the President’sClimate Action Plan19Climate Action Champions Competition•Competition to identify, showcase, and invest in upto 15local and tribal governments taking action to cut carbonpollution and build resilience to the impacts of climatechange, e.g.,–installing renewable energy on buildings to provide reliableenergy source for emergency responders,–installing energy-efficient windows that are more stormresistant,–developing green infrastructure for carbon sequestration orflood protection•Application Period Open until October 27•https://eereexchange.energy.gov/Default.aspx#FoaId7078c60d-e5e7-46f3-9615-8294b14caa6a20Task Force on Climate Preparedness and Resilience•Executive Order dated November 1, 2013•Composed of state, local, and tribal leaders•To advise the Administration on how the FederalGovernment can respond to needs of communitiesnationwide that are dealing with the impacts ofclimate change•Opportunities for public engagement•http://www.whitehouse.gov/administration/eop/ceq/initiatives/resilience/taskforce21Optional Slides22•Applied Four Building Blocks to 2012 emission data•Building Block 1: Make fossil fuel-fired power plantsmore efficient•Building Block 2: Increased use of lower-emittingpower sources•Building Block 3: Increased use of zero or low-emittingenergy sources•Building Block 4: Use electricity more efficientlyThe Building Blocks23Building Block for BSER Strategy EPA Usedto Calculate theState GoalExamples of StateCompliance Measures1. Make fossil fuel-firedpower plants moreefficientEfficiencyImprovements• Efficiency improvements• Co-firing or switching to natural gas• Coal retirements• Retrofit CCS (e.g.,WA Parish inTexas)2. Use lower-emittingpower sources moreDispatch changes toexisting natural gascombined cycle (CC)• Dispatch changes to existingnatural gas CC3. Build more zero or lowemitting energysourcesRenewable EnergyCertain Nuclear• New Natural gas-fired CombinedCycle Units• Renewables• Nuclear (new and up-rates)• New coal with CCS4. Use electricity moreefficientlyDemand-side energyefficiency programs• Demand-side energy efficiencyprograms• Transmission efficiencyimprovements• Energy storage24* States are not limited to the Building Blocks and have flexibility todetermine how to meet their goalFlexibilities Available To StatesMeasures to meet Goal•States may implement any collection of measures thatreflect its particular circumstances and policy objectivesas long the collection achieves the goal•States can use a rate-based or a mass-based goal•States have the option to collaborate with other statesto develop multi-state plansTiming to Submit Plan and to Achieve Goal•States have up to two to three years to submit plans forEPA approval•States have up to a 15-year window in which to planforand achieve goals25States Have FlexibilityBasis for state goal–Potential emissionspathway reflectingEPA’s analysis2020 2021 20222023 2024 20252026 2027 2028 2029A state can choose any trajectoryof emission improvement as longas the interim performance goal ismet on average over 10 years, andthe final goal is met by 203026

Carbon emissions from affected power plants in an example stateAs an example, states could do less in the early years, and more in the lateryears, as long as on average it meets the goalTiming of Power Plant Emission Reductions27By June 30, 2016State submits initial multistate plan and request for 2-year extensionEPA reviews initial planand determines ifextension is warrantedby June 30, 2017State submits progressreport of planby June 30, 2018States submits multistate planState submits Negative DeclarationState submits complete implementation Plan by June30, 2016State submits initial Plan by June 30, 2016 and request 1-year extensionState submits initial multi-state Plan by June 30,2016 and request 2-year extensionEmissionGuidelinePromulgationJune 1, 2015by June 30, 2016State submits negativedeclarationEPA publishes FR noticeby June 30, 2016State submits planby June 30, 2016State submits initial planand request for 1-yearextensionEPA reviews initial plan anddetermines if extension iswarrantedby June 30, 2017State submits complete plan20152019Proposed Implementation TimelineComplianceperiod begins20202020EPA reviews plan andpublishes final decisionwithin 12 months onapproval/disapprovalEPA reviews plan andpublishes final decisionwithin 12 months onapproval/disapprovalEPA reviews plan andpublishes final decisionwithin 12 months onapproval/disapproval201620172018