# CLEAN POWER PLAN

Proposed Carbon Pollution Standards For Existing 

# Power Plants Shutsu Wong 

### EPA Region 1 Regional P2, Assistance and Sustainability Meeting

October 28, 2014

# Outline

• President’s Climate Action Plan • Background on Clean Air Act Section 111(d) 

## • Setting State Goals • Flexibilities Available to States • State Plans • How to comment

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# President’s Climate Action Plan

• Reduce carbon pollution from power plants

• Prepare the U.S. for the impacts of climate change

• Lead international efforts to 

## address global climate change

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# This Proposal Deals With the Largest Source of GHG Emissions in the U.S.

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# Reducing Carbon Pollution From Power Plants President’s Directive to EPA: Develop carbon pollution standards, regulations or guidelines, as appropriate, for: 1. New power plants • Proposed: January 8, 2014 

## 2. Modified and reconstructed power plants • Proposal: June 2014 • Final : June 2015 

## 3. Existing power plants • Proposed Guidelines: June 2014 • Final Guidelines: June 2015 • State Plans due: June 2016

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## • Lays out different approaches for new and existing sources • New sources under section 111(b) • Federal standards for new, modified and reconstructed sources 

## • Existing sources under section 111(d) • State programs for existing sources that are equivalent to federal guidelines 

## • Applies the “Best System of Emissions Reduction ” (BSER) • Feasibility • Costs • Technology • Size of Reductions 6 

# EPA’s Regulatory Approach Clean Air Act Section 111Building 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 7

# State Performance Goals (lbs/ MWh )

State 2012 Fossil

Emission Rate 1 Interim Goal (2020 - 2029 average) 2 Final Goal (2030

and thereafter) 2 Connecticut 844 597 540 Maine 873 393 378 Massachusetts 1,001 655 576 New Hampshire 1,119 546 486 Rhode Island 918 822 782
8 1 From Goal Computation Technical Support Document, Appendix 5 – 2012 Emissions Rate and Building Block Application 2 From Table 1 to Subpart UUUU of Part 60 – State Rate-Based CO2 Emission Performance Goals, Proposed

# Flexibilities Available To States

• 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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# State Plans & Criteria

• The EPA will evaluate the sufficiency of each plan based on the plan 

### addressing twelve plan components and on four general criteria to determine whether a state’s plan is “satisfactory” under CAA section 111(d)(2)(A )



### • Four general criteria 1. A state plan must contain enforceable measures that reduce EGU CO 2 emissions from affected EGUs 2. Measures in the plan must be projected to achieve emission performance equivalent to or better than the applicable state -specific CO 2 goal on a timeline equivalent to that in the emission guidelines 3. EGU CO 2 emission performance under the state plan must be quantifiable and verifiable 4. The state plan must include a process for state reporting of plan implementation (at the level of the affected entity), CO 2 emission performance outcomes, and, if necessary, implementation of corrective measures 10 See FR 34909-34911 for more detail

# Required State Plan Components 1. Identification of affected entities (affected EGUs and other responsible parties) 2. Description of plan approach and geographic scope 3. Identification of required emission performance level for affected EGUs 4. Demonstration that plan is projected to achieve required emission performance level 5. Identification of milestones 6. Identification of corrective measures 7. Identification of emission standards and any other measures 8. Demonstration that each emission standard is quantifiable, non - duplicative, permanent, verifiable, and enforceable 9. Identification of monitoring, reporting, and recordkeeping requirements 10. Description of state reporting 11. Certification of hearing on state plan 12. Supporting material 11 See FR 34911 -34915 for more detail

# Toolbox for States

12 http://www2.epa.gov/cleanpowerplantoolbox

# Next Steps

• The proposed rule, as well as information about how to comment 

### and supporting technical information, are available online at: http://www.epa.gov/cleanpowerplan



### • Comments on the proposal should be identified by Docket ID No.

EPA- HQ- OAR- 2013 -0602 .
• Comment period closes: December 1, 2014

• Final guidelines: June 1, 2015

• State plans due: June 30, 2016

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# For more information

http:// www.epa.gov/cleanpowerplan