# EPA’S GHG REGULATIONS FOR POWER PLANTS

Shutsu Wong U.S. EPA, Region 1 July 23, 2015 Northeast Energy and Commerce Association Conference

# OVERVIEW
 President’s Climate Action Plan  Clean Air Act Section 111  Carbon Pollution Standards (New Sources)  Clean Power Plan (Existing Sources)  Benefits  Other GHG Regulations

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# PRESIDENT OBAMA’S CLIMATE ACTION PLAN  Reinforces the federal commitment to:  Cutting harmful pollution,  Protecting out country from the impacts of climate change, and  Leading an international effort to address a changing climate  EPA’s Role  Reducing carbon pollution from power plants  Building a 21 st century transportation sector  Cutting energy waste in homes, businesses, and factories  Reducing methane and HFCs  Preparing the U.S. for the impacts of climate change  Leading international efforts to address global climate change 3

# CARBON POLLUTION IS THE BIGGEST DRIVER OF CLIMATE CHANGE

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# CAA SECTION 111: NEW SOURCE PERFORMANCE STANDARDS  

### EPA develops federal standards for new sources under 111(b).  

### Standards are determined based on the Best System of Emission Reduction (BSER) .  

### Setting New Source Performance Standards (NSPS) for new sources under 111(b) leads to regulating existing sources under 111(d) .  

### EPA develops guidelines for states. States use these guidelines to develop equivalent state plans tailored to their unique circumstances.

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# TIMELINE SUMMER 2015  Final New Source Performance Standards – 111(b)  Final Performance Standards for Modified and Reconstructed Sources – 111(b)  Final Existing Source Guidelines– 111(d)  Proposed Federal Plan for Existing Sources – 111(d) 

### SUMMER 2016  Initial State Plans Due – 111(d)

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# BSER: BEST SYSTEM OF EMISSION REDUCTION Key Factors in BSER Determination  Feasibility System of emission reduction must be technically feasible  Costs Costs of the system are reasonable  Size of Reductions EPA may consider the amount of emission reductions the system would generate  Technology Designed to promote the implementation and further development of technology

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# CARBON POLLUTION STANDARDS: 111(b) PROPOSAL FOR NEW SOURCES
 Separate standards for natural gas -fired turbines and coal -fired units. Proposed Limits (lb CO 2/MWh -gross) Natural Gas Combined Cycle Large

(> 850 mmBtu/hr) 1,000 Small (≤ 850 mmBtu/hr) 1,100 Fossil Fuel -fired Boilers and Integrated Gasification Combined Cycle (coal fired) 12 operating month (1 year) 1,100 84 operating month (7 years) 1,000 – 1,050 (in this range)
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# States and Communities with Programs that Reduce

Carbon Pollution

State programs that reduce carbon include carbon cap and trade programs and energy efficiency and renewable energy standards or goals.10



# 111(d) PROPOSED CLEAN POWER PLAN: 

# Best System of Emissions Reduction (BSER)

Proposed Limits (lb CO 2/MWh -gross) Natural Gas Combined Cycle Large

(> 850 mmBtu/hr) 1,000 Small (≤ 850 mmBtu/hr) 1,100 Fossil Fuel -fired Boilers and Integrated Gasification Combined Cycle (coal fired) 12 operating month (1 year) 1,100 84 operating month (7 years) 1,000 – 1,050 (in this range) Building Block Strategy EPA Used to Calculate the State Goal Maximum Flexibility: Examples of State Compliance Measures 1. Make fossil fuel -fired power plants more efficient Efficiency Improvements Efficiency improvements Co -firing or switching to natural gas Coal retirements Retrofit CCS (e.g.,WA Parish in Texas) 2. Use lower-emitting power sources more Dispatch changes to existing natural gas combined cycle (CC) Dispatch changes to existing natural gas CC 3. Build more zero/lowemitting energy sources Renewable Energy Certain Nuclear New NGCC Renewables Nuclear (new and up - rates) New coal with CCS 4. Use electricity more efficiently Demand - side energy efficiency programs Demand - side energy efficiency programs Transmission efficiency improvements Energy storage

# STATE PERFORMANCE GOALS – lbs/MWh

State 2012 Fossil

Emission Rate 2012 Fossil, RE,

Nuclear Rate Interim Goal

(2020 - 2029 average ) Final Goal (2030

and thereafter) Connecticut 844 765 597 540 Maine 873 437 393 378 Massachusetts 1,001 925 655 576 New Hampshire 1,119 905 546 486 Rhode Island 918 907 822 782 11 

### Timing:

 

### Up to 15 -year window in which to plan for and achieve reductions in carbon pollution.  

### U p to two or three years to submit final plans.  

### Form of goal: States can use either a rate - based or mass - based goal.  

### Single or multi -state plans: States can collaborate and develop plans on a multi - state basis.  

### Selection of measures :  

### States will choose how to 

### meet the goal through whatever collection of measures reflects its particular circumstances and policy objectives.  

### State measures may impact and, in fact may be explicitly designed to reduce, CO 2 

### emissions from utilities on a regional basis.  

### EPA would support building off existing reduction programs.
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# FLEXIBILITIES AVAILABLE TO STATESSource: RGGI, Inc.

70 75 80 85 90 95

2014 2015 2016 2017 2018 2019 2020 CO2 Emissions Budget (million short tons)

RGGI Emissions Cap Data Source: RGGI, Inc. 

### Regional Nine State CO2 Emissions Budget 

# REGIONAL GREENHOUSE GAS INITIATIVE (RGGI)24% 12%

- 20%

- 71%

- 93% -100% -80% -60% -40% -20% 0% 20% 40%

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 

### New England Economic Growth and ISO New England

System Emissions, 1999 - 2012

New England GDP Total Generation CO2 Emissions NOx Emissions SO2 Emissions Data Sources: 2012 ISO New England Electric Generator Air Emissions Report,

US Department of Commerce, Bureau of Economic Analysis 14When these rules are implemented, Americans will:

Source: Whitehouse.gov

# ELECTRICITY BILLS DOWN 8% IN 2030

16 $0 $20 $40 $60 $80 $100 $120

1990 1995 2000 2005 2010 2015 2020 2025 2030

Monthly Residential Electricity Bills (2011$)

Historical - Converted to 2011$ Base Case Clean Power Plan

# NEXT STEPS

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### Milestones Dates Final Standards for New Sources Summer 2015 Final Standards for Modified & Reconstructed Sources Summer 2015 Final Emissions Guidelines for 

### Existing Sources Summer 2015 Proposal for Federal Plan Summer 2015 Initial State Plans due Summer 2016

# OTHER GHG REGULATIONS Greenhouse Gas Reporting Rule, 40 CFR Part 98  Subpart C – General Stationary Combustion  Subpart D – Electricity Generation  Subpart W – Petroleum & Natural Gas Systems  Subpart DD – Use of Electric Transmission and Distribution Equipment  Subpart NN – Suppliers of Natural Gas and Natural Gas Liquids New Source Review (NSR) – Prevention of Significant Deterioration (PSD) Permits CO 2 Best Available Control Technology (BACT) analysis required if:  an “anyway” source* emits or has potential to emit 75,000 tons per year of CO 2e * “Anyway” sources are sources required to obtain a PSD permit based on emissions of NSR pollutants other than CO2 18

# THANK YOU For more information, visit: http://www2.epa.gov/carbon - pollution - standards Shutsu Wong U.S. EPA, Region 1 wong.shutsu@epa.gov 

### 617-918- 1078
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