EPA’s CLEAN POWER PLAN

EPA’s Proposal to Reduce 

Carbon Pollution From 

Existing Power Plants

ARPA-e FOCUS Meeting

June 25, 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.

2

EPA’s Clean Power Plan
EPA’s Clean Power Plan

3
U.S. Electricity Generation Capacity

in 2013 – 3,000 units covered

4

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

in lbs/MWh based on a national formula calculated 

with state-specific information for 2012.

State goals are based on the Best System of 

Emissions Reduction (BSER) = four building blocks.

5

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

- Varies by state based on region

3b. Nuclear Energy 

- Varies by state based on capacity

• New renewable energy

• New nuclear energy

• Relicensing of at-risk nuclear facilities

4. Demand-Side Energy Efficiency

- Varies by state based on best 

practices

• Residential, commercial, and industrial energy 

efficiency

• Transmission efficiency

6

State Goal Building Blocks
State Goals (lbs/MWh)

7

State 2029

Interim Goal

2030

Final Goal

Colorado 1,159 1,108

Montana 1,882 1,771 

North Dakota 1,817 1,783 

South Dakota 800 741 

Utah * 1,378 1,322 

Wyoming 1,808 1,714 

* Does not include affected facilities in Indian Country.
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

8

__________________________________________________________
Each state’s goal was based in part on 

RE potential.

The proposed RE method uses 

regionally-averaged RPS targets as a 

metric for growing each state's 

generation from existing levels.

The alternate RE method uses technical 

potential to determine benchmark RE 

capture rates.

9

Factoring RE into State Goals
10

Factoring RE into State Goals
11

Factoring RE into State Goals
RE measures in state plans must be 

quantifiable, non-duplicative, 

permanent, verifiable, and enforceable.

Existing RE may be creditable if it meets 

this criteria as a result of RE measures in 

state plans.

State have the option of developing 

multi-state plans involving interstate 

trading of RE.

12

Using RE to Meet State Goals
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

13

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

14
Sources of Electricity Generation in 2030

15

Coal

31%

Natural Gas

32%

Other Fuel

37%
Next Steps

The proposed rule and information about how to 

comment are available online at: 

http://www.epa.gov/cleanpowerplan

EPA will hold 4 public hearings the week of July 28th

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

R8 will reach out to diverse external stakeholders to 

get comments on the proposal. 

16