UNITED STATES ENVIRONMENTAL PROTE C TION AGEN C Y WA S HI N GTO N , D
. C 20460

O FF I CE O F A I R AND RA OI A TIO I\: 

### M E MORAND UM Subject: F rom: To: S u mmar y of Stakeholder Meet ing s Carissa Cyran Docket s E PA-HQ
- OA R -20 13-0602. EPA- I IQ-OAR-20 13-0603, and EPA -H QOAR-20 1 3 -0495 This mem o r a ndum s ummarizes meeting s with s takeh o ld e r s during the wee k of April 6, 2015. On April 6. Administrator Gina McCarthy, Acting Ass i s t a nt Admini s trat o r for Air and Radiation J a net McCabe a nd Associa te Ass istant Adminis trato r for Cl im a t e and Se ni o r Counsel for Air and Radiation J osep h Goff man s p o ke w ith Fred Krupp of the Env iron mental Defense Fund. On Apr il 7. Ac tin g Assis t ant A dmini st rator f o r Air a nd R ad iati o n J a ne t McCabe and Assoc iate Ass i s t a nt Ad mini st rator for Cl imate and Senior Co un se l for A ir and Radi ati on Jo se ph Goffman me t w ith r e prese nt a tiv es f ro m Western utiliti es . includin g B as in E lec tric Power Cooperative, Bla c k Hill s Co rp o ration , YEnerg y . Berk s hire Hathaw ay E ne rgy ( Pac i fiCorp )
. Pacific Gas & E lec tric , PNM Re so urce s, Sa lt River P roject , P ortland General E l ec tric. Tri

- State Generat ion and Tran s mi ss io n , Tucson Electric Power , and Xcel E nerg y, o rga ni ze d b y the Center fo r the New E

ne rgy Eco no my. List of attendees and handout s f r om the mee ting are attached. On Apr i l 7. Associate Assistant Administrato r for Clima t e and Se nior Co unsel for A ir a nd Radiati o n J osep h GoiTman met w ith represe n tat ives fr om Sa n f o r

d C
. Be rn s te in & Co., LLC. Sign-in s heet attached. On A pril 8. Assoc iate Assistant Administrator for C lim at e a nd Se ni or Co un se l for A ir and Rad ia ti o n .J osep h Gof fm an m et with repres en ta ti ves from th e Natural R eso urce Defen se Council. S i

g n-in s hee t att ac hed. On Ap ril 9 . A s soci at e Assistan t Ad mini stra t o r fo r Cl imat e and Sen io r Co un se l for Air and R ad iatio n Joseph Goffman me t w ith represe ntati ves fi·om th e Ca n ad i a n E lec tric Assoc iation
. S ig n-in s hee t a tt ached.

I nternet Add r e ss ( URL ) • h tt p 1/ W>Nw epa gov Recyc l e d / R ec y c labl e • Pnnted w1th Vegetable 0 11 B as ed I nk s o n 1 00 % Pos 1 c o n sumer Process Chlo fl ne F ree Recyc l e d Pape rD a t e: M ee tin g : Rul e(s) Di s cu sse d : Writte n M at e rial:

**N~ 1m**  **e** Lyle Wi tham .Jafa r Ka ri m Starla Lacy Cathy Woollum s Meli ssa Lavin son Sania Radcliffe Maureen Ga nn on Kara Montalvo Paul Griffin Erik Bakken Frank Prager Bi ll Ritter De n n i s A r fmann Patrick C umm in s Joe Goffman .Janet Mc Cabe Ap1il 7. 2015 Meeting with representative s from Western Utilities CPP Yes Organization Basin Elec tr ic Power Cooperative B l ack Hi ll s Co r po r a tio n NV Energy B erkshi re Hathaway Energy ( PacifiCorp) Pacific Gas & E lectric Portland Gene ral Electric P

NM Reso urces Salt Ri ve r Project Tri-State Generation and Transmission Tucson Electric Power Xcel Energy CNEE CNEE CNEE E PA E PA

# lf[MA**n** Power Plan 

# I( 

# 1 Rate
- to - Mass Conversion

• The EPA ma s s calcu l ations in the November 2014 TSD produce more stringe n t targets for Ar i zo n a • Ar i zona rate-based goa l s prem i sed o n trans i t i on of coa l to n a tu ra l gas b y 2020 • EPA mass calcu l at i ons assume between 2020 and 2029 that EE and RE d i sp l ace natura l gas- a significant cha n ge from the rate-based goa l ca l c ul ations • Allowanc e fo r growt h in ca l c ul a t ion option t h at i ncludes new sou rces p rovides l i tt l e benef i t; EPA 1.31 % growth rate i s below SRP's 1.56 % growth ra t e 

### Rate
- Based Goal Calculation

Lb s C 0 2 46,947 46,947 46,947 46,947 46,947 46,947 46,947 46,947 46,947 46,947 ( milli o n) 

### GW h 60,367 6 1 ,338 62,237 63,070 63,840 64,550 65,205 65,807 66,36 1 66,869 L

bs/MW h 778 765 754 744 735 727 720 713 707 702



## • C0 2 em i ss i ons are after re-dispatc h i n 2020 

## • C0 2 e mi ss ion l e v e ls do n o t chang e 20 2 0 -2 030 • Growth i n GWh i s due to EE andRE , which dr i ve down t h e overa lll bs/MWh rate shown here 

### Mass-based Goal Calculation

L

bs/MW h 778 765 754 744 735 727 720 7 1 3 707 702 

### GW h 55,688 55,688 55,688 55,688 55,688 55,688 55,688 55,688 55,688 55,688 

### Lb s C 0 2 (milli on ) 43,308 42,622 42,006 4 1 ,452 40,952 40,50 1 40,095 39,728 39 , 396 39,097

• Be g ins with l bs/MWh der i ved in rate-based target • Rate is mu l tipl i ed 2012 generat i on l evel s to get mass - based cap • C 0 2 emissi on leve ls are redu ce d 2020 - 203 0 • EE/RE g r owth i s embedded i n rate, effective l y i s now disp l aci n g t h e re-d i spatc h ed natura l gas GW hLbs j MWh Comparison : Using same GWh a s Rate - based **ff•~lil•l'DI5fliY__HIIfl•lf~l ~t·l'~~**  **~,** ,, ,p·: <... **-~r::::s:** ... c·· ·' .. , . ,_ ...... .

20 " 2 T 5 · 1 · **()~~ .:~]**  2b27 . **~?j 2~**  **?:·** 2029 I

· ·'" .'<:..·er·:.-., .: 30

-= . .-::: \ \-··

Lbs C0 2 (million) 43,308 42,622 42,006 41,452 40,952 40,501 40,095 39,728 39,396 39,097

GWh 60,367 61,338 62,237 63,070 63,840 64,550 65,205 65,807 66,36 1 66,869

Massbased 717 694 674 657 641 627 614 603 593 584

l bs / MWh Rate based 778 765 754 744 735 727 720 7 1 3 707 702

L bs / MWh o/o -8 % -9% -1 1 % -12% -13% -14% -15% -15% - 1 6% -17%

Reduction Recommendations

• Ensure translated mass - based goals are not more s tringent that rate -base d goa l s

• Modify rate -t o - ma ss calculations such that EE and REdo not directly di s p l ace natural gas resources

0 Allow states to use EE and RE to meet future growth and not just offset existing fossi l emissions

0 Continue to exclude natural gas resources with low capacity factors

• Develop mechanism for states to adjust mass calculations to accommodate sta te- spec ific growth rates11 i/7 Carbon Dioxide (C0

2 ) Emission Reductions Required in New Me x ico

EPA Clean Power Propos a l

1800 ....--- - ---------- - --_____;;._

__ __ ____ _ _

Current

(2 0 12} Emission s

1 , 586 lb/MWh E PA takes act i on on sta t e plan s in 2017
/

1600 **---------------------- --------**  **------------------------ ----**  **------------ --------**  **-----**

* EPA assumes all in -s tate coal - fired generation

wi ll be replaced by other genera t ion resource s

by 2020 to meet Interim Goal

- 1400 **~ ~**  :2 ....... **~** C1l **~** 1200

c 0 · v; "' · e w d ' u 1000 800 I nterim Go a l .?!

Al t e r n a t i ve R e n ewa bl e

T ec hnica l P o t e nti a l 9431b /M W h EPA I nterim Goal * (2020 - 2029 Average}

1 , 1 07 lb/MWh EPA 2030 Goa l

1 , 048 lb/MWh EPA 2 0 3 0

Al te rn a ti ve R e n ewa bl e

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