EPA proposes reducing CO2 emissions by 30% by 2030 for electric power plants

Fossil fuel-fired electric generating units (EGUs) are, by far, the largest emitters of GHGs, primarily in the form of CO2, among stationary sources in the U.S. On JUne 2, 2014 the U.S. Environmental Protection Agency (EPA) issues the Carbon Pollution Emission Guidelines for Existing Stationary Sources: Electric Utility Generating Units.

The EPA is proposing state-specific rate-based goals for carbon dioxide emissions from the power sector.  Under the authority of Clean Air Act (CAA), the EPA is proposing emission guidelines for states to follow in developing plans to reduce greenhouse gas (GHG) emissions from existing fossil fuel-fired electric generating units (EGUs).   Nationwide, by 2030, this rule would achieve CO2 emission reductions from the power sector of 30 % compared to CO2 emission levels in 2005.

The EPA projects that, in 2030, the reductions in carbon pollution and in other air pollution would result in net climate and health benefits of $48 billion to $82 billion.  Coal and natural gas would remain the two leading sources of electricity generation in the U.S., with each providing more than 30 percent of the projected generation.

The proposal has two main elements: 1) state-specific emission rate-based CO2 goals and 2) guidelines for the development, submission and implementation of state plans.  Each state will have the flexibility to design a program to meet its goal in a manner that reflects its particular circumstances and energy and environmental policy objectives.  The building blocks are:

1. Reducing the carbon intensity of generation at individual affected EGUs through heat rate improvements.
2. Reducing emissions from the most carbon-intensive affected EGUs in the amount that results from substituting generation at those EGUs with generation from less carbon-intensive affected EGUs (including NGCC units under construction).
3. Reducing emissions from affected EGUs in the amount that results from substituting generation at those EGUs with expanded low- or zero-carbon generation.
4. Reducing emissions from affected EGUs in the amount that results from the use of demand-side energy efficiency that reduces the amount of generation required.

 President Obama issued a Presidential Memorandum that directed the EPA to complete carbon pollution standards for modified, reconstructed and existing power plants by June 1 2015.The EPA expects to finalize this rulemaking by June 1, 2015. The Presidential Memorandum also calls for a deadline of June 30, 2016, for states to submit their state plans. The EPA is proposing that each state must submit a plan to the EPA by June 30, 2016.  No less than every two years, beginning January 1, 2022,  each state will be required to compare emission performance achieved by affected EGUs in the state with the emissions performance projected in the state plan, and report that to the EPA.