# EPA’s CLEAN POWER PLAN

Colorado Rural Electric Association August 28, 2014

### 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 through October 16. 

## EPA used its authority under Section 111d of the Clean Air Act to write the proposed rule. 2



## EPA’s Clean Power Plan

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

3 Source: VENTYX Velocity Suite

# U.S. Electricity Generation by Source in 2012

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## Colorado Electricity Generation in 2012

## 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 7 

## 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 MWh9

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%10 

# Colorado’s Affected Facilities11



## Renewable Energy Regions12 

## Renewable Energy Targets By Region13 

## Renewable Energy Capacity in Colorado

• Colorado added over 100 MW of solar PV in 2012, a 52% growth rate. • Colorado is home to one of the world’s largest concentrating PV facilities, the 30 MW Alamosa plant. • In October 2013, the BLM plans to hold the first competitive auction for public lands in two solar energy zones in Colorado, over 3,705 acres in size.14



## Energy Efficiency in Colorado EPA analyzed the 12 Energy Efficiency Resource Standards in the US in 2012 (including Colorado’s) to set the goal for building block 4. 

## Colorado’s incremental savings rate in 2012 = 0.84%, and is projected to reach the 1.5% rate by 2021. Colorado is projected to reach a cumulative savings rate of 11.01% in 2029 = 57,717,063 MWh .

## 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

15 __________________________________________________________

## States Have Flexibility

16 Carbon emissions from affected power

plants in an example state

Timing of Power Plant Emission Reductions

## 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

__________________________________________________________ 

## 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 .19



## Results of the Proposal

__________________________________________________________ 

## Additionally, emissions of PM2.5, SO2, and NO2 

## are projected to decrease over 25% in 2030. E lectricity 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.

## Results of the Proposal

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## Electricity bills down 8 % in 2030

$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

# Coal & Natural Gas Remain Leading

Sources of Electricity Generation

21 Each more than 30% of projected generation in 2030 Coal 31% Natural Gas 32% Other Fuel 37%

## 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

• Federal eRulemaking portal • Email A- and - R- Docket@epa.gov • Fax: Fax your comments to : 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 : Deliver your comments to: 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!

Laura Farris, EPA R8 Climate Change Coordinator

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