# EPA’s CLEAN POWER PLAN

State Health Officials Meeting October 2 , 2014 Callie Videtich Acting Assistant Regional Administrator EPA R8

### Mandated by the President’s Climate Action Plan Proposed June 2, 2014. 

### Published in Federal Register June 18, 2014, which began a 120- day public comment period – extended 45 days to December 1.
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### EPA’s Clean Power Plan

### Will reduce CO2 emissions from the power sector by approximately 30% by 

### 2030 from 2005 levels . Will continue progress already under 

### way to lower the carbon intensity of power generation, and build on existing state programs. Promote long-term multi - state planning among various parties. 3



### EPA’s Clean Power Plan

### U.S. Electricity Generation Capacity in 2013 – 3,000 units covered

4 Source: VENTYX Velocity Suite

### U.S. Electricity Generation by Source in 2012

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### Coal & Natural Gas Remain Leading

Sources of Electricity Generation

6 Each more than 30% of projected generation in 2030 Coal 31% Natural Gas 32% Other Fuel 37%The proposed rule establishes individual state goals in lbs CO2/ MWh based on a consistent national formula. Interim goals must be met beginning in 2020 – with a final goal to be met in 2030. State goals are based on the Best System of Emissions Reduction (BSER) = four building blocks.

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### Summary of the Proposal

__________________________________________________________Building Blocks Used to Set State Goals Examples of State Compliance Measures 1. CO2 Emission Reductions in Coal Fleet

- 6% • Efficiency improvements • Co -firing with natural gas • Carbon capture & storage • Coal retirements 2. Re - Dispatch to Existing Natural Gas Combined Cycle (NGCC) Plants

- 70% • Utilize existing NGCC units at a higher capacity • New NGCC units 3a. Renewable Energy (non - hydro)

- Varies by state based on region 3b. Nuclear Energy

- Varies by state based on capacity • New renewable energy • New nuclear energy • Relicensing of at- risk nuclear facilities 4. Demand - Side Energy Efficiency

- Varies by state based on reaching a 1.5% annual incremental savings rate • Residential, commercial, agricultural, and industrial energy efficiency • Transmission efficiency 8 

### State Goal Building Blocks

### State Goal -Setting Formula

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### First, the historical fossil emission rate is set using 

### 2012 emission rate data (lbs CO2/ MWh ): ( C oal gen. x Coal emission rate)+ (OG gen. x OG emission rate) + (NGCC gen. x NGCC emission rate) Total Fossil Generation 

### The building blocks are then applied to the formula above (lbs CO2/ MWh ): ( Coal gen. x Coal emission rate )+ ( OG gen . x OG emission rate) + ( NGCC gen . x NGCC emission rate) Total Fossil Generation + RE MWh + N MWh + EE MWh10

Note: Does not include affected facilities in Indian Country at this time. 

### State Goals in lbs CO2/ MWh State 2012 

### Historical Rate 

### Final Goal Percent



### Reduction CO 1,714 

### 1,108 35% 

### MT 2,246 1,771 

### 21% ND 1,994 1,783 10% SD 1,135 741 35% UT 1,813 

### 1,322 27% 

### WY 2,115 1,714 

### 19%11 

### Renewable Energy Targets By Region12 

### Energy Efficiency Compliance Options States can utilize energy efficiency programs (including EERS), building energy codes, state appliance standards (for appliances without federal 

### standards), tax credits, and benchmarking requirements for building energy use. 

### D emand - side EE measures in a state plan must be enforceable and include an EM&V plan per EPA guidance.

### State Plans States have broad flexibility to implement measures across the power sector to get reductions. They can rely on EPA’s building blocks, or on other measures. They can work individually, or with other states.

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### Deadline for State Plans States must submit an initial plan by June 30, 2016. State may request a one year extension for individual state plans to June 30, 2017. State may request a two -year extension for multi - state plans to June 30, 2018.

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### Results of the Proposal

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### Application of the BSER will result in a reduction 

### of CO2 emissions from the power sector by approximately 30% by 2030 from 2005 levels . 

### This is equivalent to 730 million metric tonnes of CO2 per year, or the annual emissions from 

### more than 150 million cars.16



### Results of the Proposal E missions of criteria air pollutants and hazardous air pollutants will be reduced, including: PM2.5, SO2, NO2, CO, ground - level ozone, mercury, and hydrogen chloride. 

### Chapter 4 of the Regulatory Impact Analysis describes the quantified/ monitized and unquantified health and welfare co - benefits in 

### detail.17



### Results of the Proposal Quantified Co - Benefits Reducing exposure to particle pollution and ozone 

### in 2030 will avoid a projected: 2,700 to 6,600 premature deaths 140,000 to 150,000 asthma attacks in children 340 to 3,300 heart attacks 2,700 to 2,800 hospital admissions 470,000 to 490,000 missed school and work days18



### Results of the Proposal Unquantified Co - Benefits Reducing exposure to other pollutants by 2030 will 

### result in a reduced incidence of: Neurologic and cardiovascular effects of methylmercury Central nervous system and respiratory effects of CO Respiratory effects from exposure to hydrogen chloride Asthma hospital admissions from exposure to NO2 P remature mortality from exposure to SO219



### Results of the Proposal

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### Electricity bills are projected to decrease ~8% by 

### 2030 due to energy efficiency measures. The climate and health benefits are worth an 

### estimated $55 to $93 billion per year in 2030. Benefits outweigh the costs that are estimated 

### to be $7.3 to $8.8 billion.

### How to Comment on the Proposed Rule See the following website for more information and details on how to comment on the proposed rule: http://www2.epa.gov/carbon - pollution - standards

• Online : Via the Federal eRulemaking Portal • Email : A- and - R- Docket@epa.gov • Fax : 202 - 566 -9744. • Mail : Environmental Protection Agency, EPA Docket Center (EPA/DC), Mail Code 28221T, Attention Docket ID No. OAR–2013 -0602, 1200 Pennsylvania Avenue, NW, Washington, DC 20460. • Hand Delivery or Courier : EPA Docket Center, Room 3334, 1301 Constitution Ave., NW, Washington, DC, 20460.

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Be sure to reference Docket ID: EPA- HQ-OAR-2013-0602

## Thank you!

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