## 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.
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### EPA’s Clean Power Plan

### EPA’s Clean Power Plan

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### 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.

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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

- 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 )

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### 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

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### 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 Goals10



### Factoring RE into State Goals11



### 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

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

14Sources 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.

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