UNITED STATES ENVIRONMENTAL PROTECTION AGENCY WASHIN GT ON , D . C . 20460

O FFICE OF AIR AND RADIATION 

### MEMORANDUM

ubject: From: To: Summar y of Stakeho ld er Meeting s Cari ssa Cyra n Docket s EP/\-HQ-OAR-20 1 3-0602. E PA-HQ-O A R- 20 13-0603. and E PA-HQOAR- 2 0 13-0495 Thi s memorandum s ummarizes meeting s with s takehold e rs during the w e ek o f .Jul y 20 . 2015. On .July 21 , Associate A ss i s t ant Administrator for Climate and Senior Coun s el for Air and Radiation Joseph Goffman met with representative s from the Nationa l Rural E l ec tri c Coope rative Association. S ig n-in s heet a nd handout arc attac hed. On Jul y 23. Administrator Gina McCarthy. Acting Assistant Administrator l o r A ir and Radiation Janet McCabe , and A ss oc i ate Assistant Administrator for Climate and Senio r Counse l for Air and Radiation Joseph Goffman met w ith President Richard Trumka and other representatives from the AFL
- C IO. On Jul y 24. Senior Advi s or for Congressional and International Affairs to r Air and Radiation William Niebling and Se ni or Policy Advisor for Air and Radiation Deborah J o rd an met with r ep r ese ntative s from Ari z ona·s Public Service Compa n y. Sign -in sheet attached.

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erne t Address (URL) • nnp //www epa gov R ecycled / Recy c labl e · Pnnteo with Vegetable 011 Based I nks on 100 % Postconsumer Process Chlor•ne Free Recyc l ed Paper

### Date: July 21 , 2015 Meet in g: Rural Utiliti es Rule(s) Discussed: 

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### CPP Extended Compliance Averaging/Borrowing Plan Option to Avoid Sma ll System Stranded G eneration A sse ts Problem Many s mall e r sys tem s have t ew options 

### to m eet CPP comp li a nce becau se they lac k the div erse ge n e rati o n so ur ces of larger utilitie s . For these s mall sys t ems clo s ure of eve n o ne coal-fired unit premature c los ure wo uld d ep ri ve them of a ve ry su b s tanti a l portion if not the b ulk ofthe system's gene rat io n capac ity. Pre mature closure of a unit with an out s tanding debt obligation could put a s mall utility in financial s tress by forcin g it to fund new generation while at the same tim e se r v icin g th e outstanding d ebt for a stranded ass et no lon ger useful as a gene ration so urce. In essence the syste m wou ld be paying twice for a s ignifi cant p o rti o n of its t ota l gener at i o n requirements. 

### Option To reduc e the risk th a t s mall e r s ystems wi ll not b e thru s t into financial s tress due to CP P compli ance ob li gations that force unit premature s hutdowns, E PA could in co rp orate an extended co mplian ce averag ing plan o ption into the C PP to allow tho se se lect un i ts who choose t o take advantage of th e option to ope rate lon g e n o ug h to pay off unit debt while a t th e same tim e e nsurin g th a t CPP C02 miti gation goals are ultimately achi eve d. Under this vo ltLntary option: • The unit taking advantage of the extended compliance averag ing option m ay not operate beyo nd th e year in w hi c h th e unit 's debt ob ligation is fu ll y me t. • The 

### extend ed comp li ance averaging p e riod cannot ex te nd b eyo nd th e 

### unit's projected remaining e ng ineerin g usef ul lif e . • A unit 's sh utdown ob li gat ion mu s t b e e nforceab le and the averaging plan requirem e nt s mu s t b e included in the unit ' s operatin g pe rmit and in the CPP impleme nta tion plan. • Taking into account the avoided e mi ss ions re s ultin g from the retirement o f the unit s before their pro j ec ted re maining e ngi n ee ring u se ful li fe, an approvable ave raging p lan wou ld ensure 

### emiss ions ne utrality d e fined as demon st rating total emiss ion reduction s ove r the averaging p e riod eqtLa l to or greate r than the e mj ss ion re ducti o n s the llnit would b e s ubj ec t to unde r th e C PP.

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