UNITED STATES ENVIRONMENTAL PROTECTION AGENCY 

WASHINGTON, D.C. 20460 

OFFICE OF 

AIR AND RADIATION 

MEMORANDUM 

SUBJECT: 

FROM: 

THRU: 

TO: 

Correction of Inadvertent Errors in the Proposed Carbon Pollution Emission Guidelines 

for Existing Stationary Sources: Electric Utility Generating Units 

Janet G. McCabe ~G(._(....Q..._ 

Acting Assistant Administrator (6101A) 

Lorie Schmidt ;// ~# Associate General Counsel 

Air and Radiation Law Office (2344A) 

Office 

Joel 

Associate 

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Admimstrator 

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Gina McCarthy 

Administrator (11 01A 

Several inadvertent errors were made in the process of preparing the signature package for the proposal 

titled "Carbon Pollution Emission Guidelines for Existing Stationary Sources: Electric Utility 

Generating Units" signed on June 2, 2014. The attached proposal is a redline and strikeout version that 

identifies these errors and shows the corrected text. All of the significant corrections are listed below, 

with page numbers cited to the attached redline and strikeout version. 

First, it is important to highlight a key correction that is needed. Much of section X. G., titled "What are 

the benefits of the proposed goals?" was inadvertently omitted. This section describes the methods used 

to estimate the monetized climate benefits and health co-benefits of the proposed guidelines and 

provides the results, including 6 tables ofbenefits information, and is shown on pages 551-572 ofthe 

attachment. The regulatory impact analysis (RIA) also provides this and more extensive information. 

Second, edits are needed (on page 128) to correctly reflect that the EPA intends to: 1) publish a 

supplemental proposal that establishes goals for areas of Indian country with affected EGUs and for U.S. 

territories rather than plans, and 2) take final action on the proposal by June 2015. Conforming edits are 

needed (on pages 115 and 3 7 5) to reflect that "if the EPA determines that a CAA section 111 (d) plan is 

necessary or appropriate," the EPA has the responsibility to establish a CAA section 111 (d) plan for that 

area of Indian country where affected sources are located unless the tribe on whose lands an affected 

source (or sources) is located seeks and obtains authority from the EPA to establish a plan itself, 

pursuant to the Tribal Authority Rule. 

Internet Address (URL) • hltp"//www epa gov 

Recycled/Rec yclable • Pnnted w1lh Vegetable Oil Based Inks on 100% Postconsumer. Process Chlorine Free Recycled Paper 
Third, the addition of text (on page 407) to better represent Congress' possible intention regarding the 

permanence of emission performance of improvements would include that, through silence, Congress 

authorized the EPA to reasonably require permanence. 

Fourth, the addition of a footnote (#249 on p. 322) that is included in the Legal Memo, which describes 

an alternative way to justify why the emission standards that the states include their 111(d) state plans 

meet the CAA requirements as "standards of performance." 

Other corrections to the preamble and the regulatory text are listed below. 

Preamble 

• Page 2- Revised to reflect public hearing information for Washington, DC. 

• Pages 3-4- Revised to reflect that the REAL ID Act will be effective (beginning July 21, 2014) and 

to specify valid forms of identification for entering federal buildings. 

• Pages 4 and 49 (footnote 11)- Corrected website address to "www2.epa.gov/cleanpowerplan/" 

• Pages 43 & 44- Changes to reflect proposed annual reporting (while we are requesting comment on 

biennial reporting). 

• Page 58 - Made a correction from "78,000 jobs" to "78,800 jobs" 

• Page 110 - Edited to conform with the building block descriptions throughout preamble. 

• Page 112 - Removed inaccurate information about an April 2016 letter of intent replaced with 

accurate information about the June 2016 submittal that conforms with information elsewhere in the 

preamble. 

• Page 117 - Added "already been" to" ... the EPA is proposing two alternative BSER for fossil fuelfired EGUs, each of which is based on methods that have already been employed ... " 

• Pages 122-123 -Adding missing sentence in, to also reflect House version of amendment CAA 

section 111(d)(1)(A)(i) (in addition to the Senate version) and to correctly relocate to the footnote 

(footnote 87) to this sentence. 

• Page 128- Added text to clarify that we will propose goals for territories (instead of plans) by June 

20 15; the territory will establish the plan. 

• Page 164- Corrected to interpret that "the EPA estimated," as opposed to Sargent & Lundy or their 

study, as reflected in "Based on the study, the EPA estimated that ... " 

• Page 166- Edited footnote 124 on heat rate improvements for conformity with statements elsewhere 

in preamble by removing " ... because we have less data from which to estimate these improvements" 

and adding text to identify that we are requesting comment on that aspect of the proposal. 

• Page 189- Made a clarifying edit regarding the degree of emission reductions achievable through 

re-dispatch. 

• Pages 248-249- Edited for clarity and conformity with usage elsewhere in preamble, to read: " ... 

the combination of all four building blocks provides the basis for satisfying the legal criteria to be 

considered the BSER." 

• Page 294 - Deleted "compliance" from "in formulating their compliance plans," for consistency in 

terminology. 
• Pages 309 and 310 -Corrected to add "part of'' to read "reduced generation in specified amounts ... 

is part of the 'best' system of emission reduction ... " 

• Page 371 - Removed "directly;; from "requirements that apply directly to entities other than affected 

EGUs" to avoid any confusion about direct/indirect measures. 

• Page 379 - Removed "once approved into a plan" and replaced with "if included in an approved 

plan" for clarification and to avoid confusion. 

• Page 390- Changed "regulated entity" to "affected entity" as a conforming edit. 

• Page 400- Edits to clarify that eligible rate adjustments are not limited just to EE/RE (e.g., could 

include adjustments related to incremental or "at risk" nuclear). 

• Page 407- Added citation as footnote 280 - CAA section 411 (b). 

• Page 411 - Corrected "economic growth" to "electricity demand" to read ''two options for 

addressing any perceived need for emissions flexibility in light of anticipated electricity demand 

growth after 2029." 

• Page 411 - Removed the "new" from discussion about how states design their plans to achieve both 

the interim and final goals, as the reference to "new" is extraneous and may cause confusion. 

• Page 425 - Added clarifying text to make a distinction for self-correcting plans that reads "the EPA 

proposes that each plan must have the following twelve components, except as indicated otherwise 

for self-correcting plans ... " 

• Page 440 - Deleted incorrect statement about request for comment in the CAA section 111 (b) new 

source proposal and retained correct statement about the request for comment in the CAA modified 

and reconstructed source proposal. 

• Page 441 - Deleted duplicative sentence. 

• Page 447 - Deleted footnote 289, as it is already explained in the body of the text with which it was 

associated. 

• Page 488- Replaced "the compliance period" with "a plan performance period." 

• Page 488 - Added "under a mass-based approach," for clarification and accuracy, to read "under a 

mass-based approach, any measure that reduces affected EGU emissions- even if not included in 

the state plan -- will, if implemented during a plan performance period, help to achieve actual 

emissions performance that meets the required level." 

• Page 489 - For accuracy and consistency, replaced "a state compliance demonstration" with "a state 

plan demonstration of emission performance." 

• Pages 520-521 - Revised text to reflect that the proposed CW A section 316(b) rule has been 

finalized and to accurately reflect the final rule requirements. 

Regulatory text 

• Page 615 (60.5700) - Replaced "standards of performance" with "emission standard" to be 

consistent with the preamble and the CAA. 

• Page 622 (60.5745) - Replaced "States may submit a multi-state plan that:" with" A multi-state 

plan, if submitted by a state, must:" The change clarifies the intent that a state that does elect to 

submit a multi-state plan "must" submit the element in the section. 

• Page 638 (60.5805) - Deleted "to the delegated authority" as it is redundant, not needed for this rule 

and could cause confusion. 
The redline and strikeout shown on pages of the preamble and rule identify all of the errors described 

above and show the corrected text. These preamble and rule changes are shown on the pages identified 

above. Minor clarifications to terms, and grammatical corrections, and corrections to table numbering, 

formatting, and citations to preamble sections are also shown. 

We recommend correction of these inadvertent errors and approval of these changes by signing and 

dating below. 

Gina McCarthy, 

Administrator. 

Attachment 

cc: Amy Hambrick/OA (I lOlA) 

Dated