UNITED STATES ENVIRONMENTAL PROTECTION AGENCY 

WASHINGTON, D.C 20460 

OFFICE OF 

AIR AND RAOIATIOI\: 

MEMORANDUM 

Subject: 

From: 

To: 

Summary of Stakeholder Meetings 

Carissa Cyran 

Dockets EPA-HQ-OAR-20 13-0602. EPA-I IQ-OAR-20 13-0603, and EPA-HQOAR-20 13-0495 

This memorandum summarizes meetings with stakeholders during the week of April 6, 2015. 

On April 6. Administrator Gina McCarthy, Acting Assistant Administrator for Air and Radiation 

Janet McCabe and Associate Assistant Administrator for Climate and Senior Counsel for Air and 

Radiation Joseph Goffman spoke with Fred Krupp of the Environmental Defense Fund. 

On April 7. Acting Assistant Administrator for Air and Radiation Janet McCabe and Associate 

Assistant Administrator for Climate and Senior Counsel for Air and Radi ation Joseph Goffman 

met with representatives from Western utilities. including Basin Electric Power Cooperative, 

Black Hills Corporation, YEnergy. Berkshire Hathaway Energy (Pac ifiCorp). Pacific Gas & 

Electric, PNM Resources, Salt River Project, Portland General Electric. Tri-State Generation and 

Transmission, Tucson Electric Power, and Xcel Energy, organized by the Center for the New 

Energy Economy. List of attendees and handouts from the meeting are attached. 

On April 7. Associate Assistant Administrator for Climate and Senior Counsel for Air and 

Radiation Joseph GoiTman met with representatives from Sanford C. Bernstein & Co., LLC. 

Sign-in sheet attached. 

On April 8. Associate Assistant Administrator for Climate and Senior Counsel for Air and 

Radiation .Joseph Goffman met with representati ves from the Natural Resource Defense Council. 

Sign-in sheet attached. 

On April 9. Associate Assistant Administrator for Climate and Senior Counsel for Air and 

Radiation Joseph Goffman met with representatives fi·om the Canadian Electric Association. 

Sign-in sheet attached. 

Internet Address (URL) • http 1/W>Nw epa gov 

Recycled/Recyc lable • Pnnted w1th Vegetable 0 11 Based Inks on 100% Pos1consumer Process Chloflne Free Recycled Paper 
Date: 

Meeting: 

Rule(s) Discussed: 

Written Material: 

N~1me 

Lyle Witham 

.Jafar Karim 

Starla Lacy 

Cathy Woollums 

Melissa Lavinson 

Sania Radcliffe 

Maureen Gannon 

Kara Montalvo 

Paul Griffin 

Erik Bakken 

Frank Prager 

Bill Ritter 

Dennis Arfmann 

Patrick Cummins 

Joe Goffman 

.Janet McCabe 

Ap1il 7. 2015 

Meeting with representatives from Western Utilities 

CPP 

Yes 

Organization 

Basin Electric Power Cooperative 

Black Hills Corporation 

NV Energy 

Berkshire Hathaway Energy (PacifiCorp) 

Pacific Gas & Electric 

Portland General Electric 

PNM Resources 

Salt River Project 

Tri-State Generation and Transmission 

Tucson Electric Power 

Xcel Energy 

CNEE 

CNEE 

CNEE 

EPA 

EPA 
lf[MA n Power Plan 

I( 1 Rate-to-Mass Conversion 

• The EPA mass calculations in the November 2014 TSD produce more stringent targets for Arizona 

• Arizona rate-based goals premised on transit ion of coal to natural gas by 2020 

• EPA mass calculations assume between 2020 and 2029 that EE and RE displace natural gas- a 

significant change from the rate-based goal calculations 

• Allowance for growth in calculat ion option t hat includes new sources provides little benefit; EPA 1.31% 

growth rate is below SRP's 1.56% growth rat e 

Rate-Based Goal Calculation 

Lbs C0 2 46,947 46,947 46,947 46,947 46,947 46,947 46,947 46,947 46,947 46,947 

(million) 

GWh 60,367 6 1,338 62,237 63,070 63,840 64,550 65,205 65,807 66,36 1 66,869 

Lbs/MWh 778 765 754 744 735 727 720 713 707 702 

• C02 emissions are after re-dispatch in 2020 

• C02 emission levels do not change 2020-2030 

• Growth in GWh is due to EE andRE, which drive down the overalllbs/MWh rate shown here 

Mass-based Goal Calculation 

Lbs/MWh 778 765 754 744 735 727 720 7 13 707 702 

GWh 55,688 55,688 55,688 55,688 55,688 55,688 55,688 55,688 55,688 55,688 

Lbs C0 2 

(million) 43,308 42,622 42,006 4 1,452 40,952 40,501 40,095 39,728 39,396 39,097 

• Begins with lbs/MWh derived in rate-based target 

• Rate is multiplied 2012 generation levels to get mass-based cap 

• C0 2 emission levels are reduced 2020-2030 

• EE/RE growth is embedded in rate, effectively is now displacing t he re-dispatched natural gas GWh 
Lbsj MWh Comparison: 

Using same GWh as Rate-based 

ff•~lil•l'DI5fliY__HIIfl•lf~l ~t·l'~~ ~, ,, ,p·: <... -~r::::s: ... c·· ·' .. , 

20"2T5· 1· ()~~.:~] 2b27 . ~?j

· ·'" .'<:..·

-= . 

Lbs C02 

(million) 43,308 42,622 42,006 41,452 40,952 40,501 40,095 39,728 39

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

Massbased 717 694 674 657 641 627 614 603 5

lbs/ MWh 

Ratebased 778 765 754 744 735 727 720 713 7

Lbs/ MWh 

o/o -8% -9% -1 1% -12% -13% -14% -15% -15% - 

Reduction 

Recommendations 

• Ensure translated mass-based goals are not more stringent that rate-based goals 

• Modify rate-to-mass calculations such that EE and REdo not directly displace natural gas resources 

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

0 Continue to exclude natural gas resources with low capacity factors 

• Develop mechanism for states to adjust mass calculations to accommodate state-specific growth rates 
11 i/7 

Carbon Dioxide (C02 ) Emission Reductions Required in New Mexico 

EPA Clean Power Proposal 1800 ....---- ----------- --_____;;._ _________ _ 

Current (2012} Emissions 

1,586 lb/MWh 

EPA takes action on state 

plans in 2017 / 

1600 ----------------------

--------

----------------------------------------

-----

* EPA assumes all in-state coal-fired generation 

will be replaced by other generation resources 

by 2020 to meet Interim Goal 

- 1400 ~ ~ :2 

....... ~ C1l ~ 1200 

c 

0 

·v; 

"' ·e 

w 

d' 

u 1000 

800 

Interim Goal .?! 

Alternative Renewable 

Technical Pot ential 

9431b/MWh 

EPA Interim Goal* 

(2020-2029 Average} 

1,107 lb/MWh 

EP

1,

EPA 20

Alternative Renewa

Technical Pot en

600 72 1blnQ

2012 2014 2016 2018 2020 2022 2024 2026 202
Date: T uesday, April 7, 2015 

Meeting: Bernstein Inquiry 

Rule(s) Discussed: {_ p P 

Written Materials? Yes~ 

Name Organization Phone N um ber 

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Date: April 8, 2015 

Meeting: General Discussion (NRDC) 

Rule(s) Discussed: LfP 

Written Materials? Y esrP 

Name 

I 

Organi zation Phone N urn ber 

I 

_l --------l 

I 
Date: April 9, 2015 

Meeting: Canadian Electric Power CEOs Meeting 

Rule(s) Discussed: (/( ~ 

Written Materials?~ 

Name Organization Phone N urn ber 

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