111(d) basics - NW Energy Coalition

Report
EPA Basics on Clean Air Act Sec. 111(d)
Reducing Carbon Emissions from
Existing Power Plants
NW Energy Coalition
May 2, 2014
Reducing Carbon Pollution From Power Plants
President’s Directive to EPA Under the Climate Action Plan:
• Reduce carbon pollution from power plants by setting Carbon
Pollution Standards and Guidelines using the Clean Air Act
• Focus on these elements when developing the
standards/guidelines
– Engage stakeholders including States, leaders in the power sector,
labor leaders, non-governmental organizations, consumer groups,
tribal officials, members of the public
– Focus on making the program flexible, including market-based
instruments, performance standards, others
– Tailor regulations and guidelines to reduce costs, including
performance standards and market-based mechanisms
– Recognize the continued importance of relying on a range of
energy sources and cognizant of other regulations that affect the
power sector
2
EPA’s Task
• Develop carbon pollution standards, regulations
or guidelines, as appropriate, for:
1. New power plants
2. Modified and reconstructed power plants
3. Existing power plants
3
Clean Air Act Section 111
Lays out different approaches for new and existing
sources
– New sources under section 111(b)
Federal standards for new, modified and reconstructed
sources
 Proposal signed September 20, 2013
 Draft – 1100lbs/MWh new coal, 1000lbs/MWh new gas
 Public Comment Period extended until May 9, 2014
– Existing sources under section 111(d)
State programs for existing sources that are equivalent
to federal guidelines
4
Clean Air Act Section 111 (cont.)
Section 111(d) is broad by design
• Section 111(d) is broad and allows for collaboration between
EPA and states to address pollutants that endanger the public
health and welfare.
• Section 111 (d) provides greater flexibility to EPA and states to
design a program in consultation with diverse range of
stakeholders – flexibility is driven by the recognition that
existing sources do not have as much flexibility as new ones.
• EPA will issue guidelines for states to use in developing plans
implementing standards of performance for the affected
sources
5
THE CLEAN AIR ACT AND EXISTING POWER PLANTS
THE “101” ON 111 (d)
“Best System of Emission Reduction”
“Source-based”
approach limited to options plants can do
.
“within the fenceline” (e.g. heat-rate improvements) – yields
limited reductions, higher costs
“System-based” approach includes all options that reduce
emissions –yields deeper reductions, lower costs
Heat-rate improvements
Increasing zero -emission power (renewables)
Increasing energy efficiency
Shifting generation from coal to non-emitting resources
6
THE TIMELINE
2013
2014
2015
2016
January 20th
Start of President Obama's second term.
th
June 25
President Obama announces Climate Action Plan.
September 20th
EPA proposes carbon pollution standards for future power plants.
May 9th
June 1st
End of public comment period for future power plant proposal.
EPA to propose guideline for carbon pollution standards for existing
power plants.
June-September
Public comment period on existing power plant proposal.
June 1st
EPA to finalize power plant carbon pollution standards.
June 30th
States to submit implementation plans for existing
power plants to EPA.
July-December EPA reviews state plans for compliance with its guideline.
January 20th
End of President Obama's second term.
2017
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