# 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

3 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

6 Approach	for	seXng	state	emission rate	goals	uses historical	statelevel data	as	a	basis	for	applying the	relevant	building	blocks Currently	using	2012	data	for state-level	net	generaOon	and emissions	for	coal,	O/G	steam
and	NGCC Will	rely	on	EPA eGrid data
which	combines	emission	data reported	under	EPA	programs
with	EIA	data	for	units	not covered	under	EPA	programs EE	goals	based	on	ramping	up from	historic	performance (using	EIA/uOlity	data)	to
achievable	levels	in	2020-2030 based	upon	experience	from leading	states
Benefits:
► Aggregate –	use	of	aggregate state-level	fossil	data	reducesthe	goal’s	vulnerability	to	unitspecific	limitaOons;	for example,	we	do	not	have	to defend	the	noOon	that	every NGCC	unit	can	ramp	up	to 70%,	only	that	this	can	be achieved	at	the	state’s	fleet level	(e.g.,	some	units	could	be at	60%,	some	at	80%)

► Historical –	measured, monitored,	and	reported	data



## 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 MWh7 Note: Does not include affected facilities in Indian Country at this time. 

# 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%8 

## Renewable	Energy	Regions9 

## 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	e missions 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

11Carbon emissions from affected powerplants 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	CO 2 

## 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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