EPA’s	CLEAN	POWER	PLAN	

Colorado	Agriculture	Stakeholders	

July	15,	2014	
Proposed	June	2,	2014.	

Published	in	Federal	Register	June	18,	

2014,	which	began	120	public	comment	

period.	

Will	reduce	CO2	emissions	from	the	

power	sector	by	approximately	30%	by	

2030	from	2005	levels.	

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EPA’s	Clean	Power	Plan	
U.S.	Electricity	Genera<on	Capacity	

in	2013	–	3,000	units	covered	

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Source: VENTYX Velocity Suite 
The	proposed	rule	establishes	individual	state	goals	in	

lbs/MWh	based	on	a	consistent	naOonal	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	

ReducOon	(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 

- 1.5% per year in compliance period 

• Residential, commercial, and industrial energy 

efficiency 

• Transmission efficiency 

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State	Goal	Building	Blocks
State	Goal-SeNng	Formula	

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First,	the	historical	fossil	emission	rate	is	set	using	

2012	emission	rate	data	(lbs/MWh):	

(Coal	gen.	x	Coal	emission	rate)+	(OG	gen.	x	OG	emission	rate)	+	(NGCC	gen.	x	NGCC	emission	rate)	

Total	Fossil	GeneraOon	

The	building	blocks	are	then	applied	to	the	formula	

above	(lbs/MWh):	

(Coal	gen.	x	Coal	emission	rate)+	(OG	gen.	x	OG	emission	rate)	+	(NGCC	gen.	x	NGCC	emission	rate)	

Total	Fossil	GeneraOon	+	RE	MWh	+	N	MWh	+	EE	MWh
Note: Does not include affected facilities in Indian Country at this time. 7 

State	Goals	in	lbs/MWh

State 2012	

Historical		

Rate

Final	Goal Percent	

Reduc<on

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%
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Renewable	Energy	Regions	
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Renewable	Energy	Targets	By	Region	
State	Plans

States	have	broad	flexibility	to	implement	

measures	across	the	power	sector	to	get	

reducOons.		

They	can	rely	on	EPA’s	building	blocks,	or	on	

other	measures.		

They	can	work	individually,	or	with	other	states	

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__________________________________________________________ 
States	Have	Flexibility	

Basis	for	state	goal –

Potential	emissions	

pathway	reflecting	

EPA’s	analysis

		2020												2021														2022														2023														2024															2025										 					2026								 							2027															2028								 					2029

			

A	state	can	choose	any	trajectory	

of	emission	improvement	as	long	

as	the	interim	performance	goal	is	

met	on	average	over	10	years,	and	

the	final	goal	is	met	by	2030

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Carbon emissions from affected power 

plants in an example state 

Timing of Power Plant Emission Reductions 
Deadline	for	State	Plans

States	must	submit	an	iniOal	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	mulOstate	plans	to	June	30,	2018	

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Treatment	of	Biomass

In	the	proposed	approach	for	RE	target	seXng,	

biomass	is	included	as	a	renewable	energy	

resource	in	regional	and	state	targets.	

The	proposed	rule	allows	states	to	use	other	

measures	to	reduce	CO2	emissions	from	EGUs,	

such	as	the	use	of	biomass	derived	fuels	at	

affected	EGUs.		

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Other	Impacts	

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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	ResidenOal	Electricity	Bills	(2011$)	

Historical	-	Converted	to	2011$		 Base	Case	 Clean	Power	Plan	
Next	Steps	

See	the	following	website	for	more	informaOon	and	details	on	

how	to	comment	on	the	proposed	rule:		

hip://www2.epa.gov/carbon-polluOon-standards

EPA	will	hold	4	public	hearings	the	week	of	July	28:	

Denver,	Atlanta,	Piisburgh	and	Washington,	D.C.	

The	120-day	public	comment	period	goes	from	June	18	through	

October	16..

Conduct	outreach	to	tradiOonal	and	non-tradiOonal	

stakeholders.	

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