EPA’s Final Clean Power Plan · Final Clean Power Plan • EPA Administrator McCarthy Signed Final Plan August 3, 2015 • EPA Teleconference for States • EPA Region 8 Call •

EPA’s Final Clean Power Plan

Select Federal Natural Resource Management Committee Meeting

September 29, 2015

Cheyenne, Wyoming

Todd Parfitt, Director

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Final Clean Power Plan

• EPA Administrator McCarthy Signed Final Plan August 3, 2015

• EPA Teleconference for States

• EPA Region 8 Call

• Region 8 State Air Administrators Meeting

• Region 8 State Directors Meeting

• Discussion with Utilities (PacifiCorp, Basin, Black Hills)

• Center for New Energy Economy (13 States)

• Public Utilities Commission

• Governors Office

• Minerals Committee

• Attorney Generals Office

• Publication of Final Clean Power Plan in Federal Register – Mid October

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EPA’s Three Regulatory Actions

• Final Clean Power Plan for Existing Power Plants: A state-based program under CAA

Section 111(d) for existing sources with EPA establishing guidelines. States design

programs that fit in those guidelines to get the needed reductions in CO2.

• Final Carbon Pollution Standards for New, Modified and Reconstructed Power Plants:

NSPS 111(b) establishes emissions standards of performance to address CO2 emissions

from new, modified and reconstructed power plants power plants. EPA proposed

performance standards for New units separately from Modified and Reconstructed units.

EPA is now addressing all three unit types in one action.

• Proposed Federal Plan for the Clean Power Plan: A proposed federal plan that can be

implemented if a state fails to submit state plan. It also serves as a model rule that states can

adopt themselves or it can provide guidance for an individualized state plan.

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• Final state goals are much more stringent

• EPA’s state goal analysis much broader than in the proposal

• EPA continued to apply beyond-the-fence regulation

• Broadened analysis for renewable energy development in Wyoming

• Renewable energy credits/allowances created before 2013 not usable

• Shifted burden to address system reliability or remaining useful life to the states

• Requests for time extensions are no longer based upon single-state or multi-state

plan

• EPA proposed guidance (Federal Plan) for developing state plans, including rate

vs. mass

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• Final state goals are much more stringent

Rate based goal for 2030 of 1,299 lbs. CO2/MWh

EPA Proposed Rule - 1,714

WY Calculated Achievable Goal 2,215 under Proposed Rule Method

Mass based goal of 31,634,412 tons of CO2

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Top 10 States for Emissions Reductions from Baseline

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State

2012

Baseline

(lbs CO2/MWh)

2030

Goal

(lbs CO2/MWh)

Percent

Reduction in

Emissions Rate

South Dakota 2,229 1,167 47.64%

Montana 2,481 1,305 47.40%

North Dakota 2,368 1,305 44.89%

Wyoming 2,331 1,299 44.27%

Kansas 2,319 1,293 44.24%

Illinois 2,208 1,245 43.61%

Iowa 2,195 1,283 41.55%

Wisconsin 1,996 1,176 41.08%

Kentucky 2,166 1,286 40.63%

Colorado 1,973 1,174 40.50%


Bottom 10 States for Emissions Reductions from Baseline

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State

2012

Baseline

(lbs CO2/MWh)

2030

Goal

(lbs CO2/MWh)

Percent

Reduction in

Emissions Rate

Nevada 1,102 855 22.41%

Mississippi 1,185 945 20.25%

Oregon 1,089 871 20.02%

New York 1,140 918 19.47%

Massachusetts 1,003 824 17.85%

Rhode Island 918 771 16.01%

California 963 828 14.02%

Maine 873 779 10.77%

Idaho 858 771 10.14%

Connecticut 846 786 7.09%


• States must meet Interim Goals and Final Goal

• Interim Goals Begin in 2022

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EPA’s Approach for Determining State Goals

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1,305 lbs. CO2/MWh

771 lbs. CO2/MWh

* From EPA Presentation “The Clean Power Plan 2015”


• EPA’s state goal analysis much broader than in the proposal

• EPA continued to apply beyond-the-fence regulation

• Broadened analysis for renewable energy development in Wyoming

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EPA’s Final Clean Power Plan Based on Electrical Grids

* From EPA Presentation “The Clean Power Plan 2015”


Developing a State Plan

Regulatory Milestones within the Plan

September 6, 2016 State Plan is due to EPA Region - Can Request Extension

September 6, 2017 Final State Plan or Progress Report due if Requesting Extension

September 6, 2018 Final State Plan is due

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Three components required in the 2016 initial submittal:

• An identification of final plan approach or approaches under consideration, including a

description of progress made to date;

• An appropriate explanation for why the state needs additional time to submit a final plan

beyond September 6, 2016;

• And a demonstration of how state has been engaging with the public, including vulnerable

communities, and a description of how the state intends to meaningfully engage with

community stakeholders.

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2017 update requires states address the following:

• A summary of the status with respect to required components of the final plan, including a

list of which components are not yet complete.

• A commitment to a plan approach (e.g., single or multi-state, rate or mass emission

performance level), including draft or proposed legislation and/or regulations.

• An updated comprehensive roadmap with a schedule and milestones for completing the

plan, including progress to date in developing a final plan and steps taken in furtherance of

actions needed to finalize a final plan.

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EPA’s Presumptive Approval

Submission of a state plan based on the EPA’s final model rule for a mass-based emission

trading program could be considered presumptively approvable.

EPA would still have to undertake a separate rulemaking on each state plan involving an

independent notice to approve and public comment period.

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EPA’s Federal Plan

EPA has proposed two Federal Plans and is taking comment on them for 90 days from the

Federal Register publication date. (Mid. October)

Both are emission trading programs, but one is rate based and the other is mass based. EPA

has indicated it prefers the mass based approach for ease of implementation and reduced

implementation costs.

If Wyoming does not submit an initial plan by September 6, 2016, then EPA can impose a

Federal Plan.

If Wyoming does not submit an acceptable plan in 2017 or 2018, then EPA can impose a

Federal Plan.

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Documents

EPA’s Final Clean Power Plan · Final Clean Power Plan • EPA Administrator McCarthy Signed Final Plan August 3, 2015 • EPA Teleconference for States • EPA Region 8 Call •