CPP FS Federal Plan CLEAN 08 02 15.docx | US EPA ?· 2017-06-01 · known as the Clean Power Plan, which…

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    PROPOSEDFEDERALPLANANDPROPOSEDMODELRULES

    OnAugust3,PresidentObamaandEPAannouncedtheCleanPowerPlanahistoricandimportantstepinreducingcarbonpollutionfrompowerplantsthattakesrealactiononclimatechange.Shapedbyyearsofunprecedentedoutreachandpublicengagement,thefinalCleanPowerPlanisfair,flexibleanddesignedtostrengthenthefastgrowingtrendtowardcleanerandlowerpollutingAmericanenergy.Withstrongbutachievablestandardsforpowerplants,andcustomizedgoalsforstatestocutthecarbonpollutionthatisdrivingclimatechange,theCleanPowerPlanprovidesnationalconsistency,accountabilityandalevelplayingfieldwhilereflectingeachstatesenergymix.ItalsoshowstheworldthattheUnitedStatesiscommittedtoleadingglobaleffortstoaddressclimatechange.

    ACTION OnAugust3,2015,theEnvironmentalProtectionAgency(EPA)proposedafederalplanto

    implementemissionguidelinesforpowerplantsundersection111(d)oftheCleanAirAct,knownastheCleanPowerPlan,whichwasalsofinalizedAugust3,2015andappliestoaffectedpowerplantsthatbeganconstructiononorbeforeJanuary8,2014.

    TheCleanAirActcreatesapartnershipbetweenstates,tribesandthefederalgovernmenttoimplementairpollutionreductionprogramstoprotectpublichealthandtheenvironment.

    ThefederalplanandmodeltradingrulesdemonstrateareadilyavailablepathforwardforCleanPowerPlanimplementation,andpresentflexible,affordableimplementationoptionsforstates.

    ThemodelrulesprovideacosteffectivepathwaytoadoptatradingsystemsupportedbyEPAandmakeiteasyforstatesandpowerplantstouseemissionstrading.Itdoestheheavyliftingforstateswhomaychoosetouseamodelruleastheirstateplan.

    TheEPAwouldimplementthefederalplaninanystatethatdoesnotsubmitanapprovableplan.

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    FossilfuelfiredpowerplantsarethelargestsourceofU.S.carbondioxide(CO2)emissionsaccountingfor31percentofU.S.totalgreenhousegasemissions.

    ReducingCO2emissions,orcarbonpollution,frompowerplantsisanessentialstepinlesseningtheimpactsofclimatechangeandprovidingamorecertainfutureforourenvironment,ourhealthandfuturegenerations.

    EPAiscoproposingtwodifferentplantypesforafederalplantoimplementtheCleanPowerPlanemissionguidelinesaratebasedtradingplanandamassbasedtradingplan.

    Bothproposedplantypeswouldrequireaffectedelectricgeneratingunits(EGUs)tomeetemissionstandardssetusingtheCO2emissionperformanceratesintheCleanPowerPlan.

    ThesetwoproposedoptionsofferstatesmodeltradingrulesthatthestatescanfollowindevelopingtheirownplanstocapitalizeontheflexibilitybuiltintothefinalCleanPowerPlan.

    Thisproposalincludesfourdiscreteproposedactions: AratebasedfederalplanforeachstatewithaffectedEGUs; AmassbasedfederalplanforeachstatewithaffectedEGUs; Aratebasedmodeltradingruleforpotentialusebyanystate;and Amassbasedmodeltradingruleforpotentialusebyanystate.

    Theproposedfederalplanswillachievethesamelevelsofemissionsperformanceas

    requiredofstateplansundertheCleanPowerPlan. FederalplanswillbefinalizedonlyforthosestateswithaffectedEGUsthatEPA

    determineshavefailedtosubmitanapprovable111(d)stateplanbytherelevantdeadlinessetintheemissionguidelines.

    Evenwhereafederalplanisputinplaceforaparticularstate,thatstatewillstillbeabletosubmitaplan,which,ifapproved,willallowthestateanditssourcestoexitthefederalplan.

    Statesmaytakedelegationofadministrativeaspectsofthefederalplaninordertobecometheprimaryimplementers,orsubmitpartialstateplansinordertotakeovertheimplementationofaportionofafederalplan.

    Statesoperatingunderafederalplanmayadoptcomplementarymeasuresoutsideofthatplantofacilitatecomplianceandlowercoststothebenefitofpowergeneratorsandconsumers.

    Theproposalalsoincludesasamodelruleforthosestatesthataredevelopingtheirownstateplans.

    EPAintendstofinalizeboththeratebasedandmassbasedmodeltradingrulesinsummer2016.

    Astateprogramthatadherestothemodeltradingruleprovisionsspecifiedinthisrulemaking,whenfinal,wouldbepresumptivelyapprovable.

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    Therearestandaloneportionsofthemodeltradingrules,suchastheevaluation,measurementandverificationproceduresforemissionratecredits(ERCs),thatwouldbeapprovableevenifastateadoptedanapproachthatdiffersinotherrespectsfromthemodelrule.

    Thefederalplan,liketheCleanPowerPlanitself,isdesignedsoastonotinterferewiththeelectricutilitysectorsabilitytomaintainthereliabilityofthenationselectricitysupply.

    EPAcurrentlyintendstofinalizeasingleplantype(i.e.,eithermassbasedorratebased)foreverystateinwhichitfinalizesafederalplan.EPAinvitescommentonthisintheproposal,andwhichplantype,massbasedorratebased,shouldbeselectediftheEPAoptstofinalizeasingleapproach.

    ThefederalplanwouldbeimplementedonlyinthosestatesthatdonothaveafullyapprovedstateplanasrequiredunderthefinalCleanPowerPlan.Inthosestateswhereafederalplanmayberequired,afinalfederalplanwillimplementthesameemissionguidelinesforaffectedpowerplantsoutlinedintheCleanPowerPlan.Itwouldnotrequireadditionalcontrolrequirementsorimposeadditionalcosts.

    EPAisalsoproposinganumberofchangestothesection111(d)frameworkregulationsof40CFRpart60,subpartB.Theyarenotacomponentoftheproposedfederalplan,noraretheychangestotheCleanPowerPlan.Ifthesechangesarefinalized,theywillbeapplicabletoothersection111(d)rules.TheyareintendedtoprovideenhancementstotheprocessforstateplansubmissionsandthetimingofEPAactionsrelatedtostateplansandfederalplans,including:

    Availabilityofpartialapproval/disapprovalandconditionalapprovalmechanisms;

    AmechanismfortheEPAtonotifystatesoftheneedforplanrevisions; Anerrorcorrectionmechanism; CompletenesscriteriaandaprocessforEPAtodetermineifstateplansare

    complete;and ExtendingthedeadlinesforEPAaction,inparttoconformtothetimelinesinthe

    CleanPowerPlan.

    Inaddition,theproposalcontains: Afindingthatitisnecessaryorappropriatetoimplementasection111(d)

    federalplanfortheaffectedEGUslocatedinIndiancountry.CO2emissionperformanceratesforthesefacilitieswerefinalizedintheCleanPowerPlan.

    InformationonhowEPAwillreachouttocommunitiesthroughoutthecommentperiodandanoverviewoftheactionsEPAistakingtoensurevulnerablecommunitiesarenotbeingdisproportionatelyimpactedbythisrulemaking.

    Formoreinformation,pleasevisitwww.epa.gov/cleanpowerplan.

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    BACKGROUND In2009,EPAdeterminedthatgreenhousegaspollutionthreatensAmericans'healthand

    welfarebyleadingtolonglastingchangesinourclimatethatcanhavearangeofnegativeeffectsonhumanhealthandtheenvironment.Carbondioxide(CO2)istheprimarygreenhousegaspollutant,accountingfornearlythreequartersofglobalgreenhousegasemissionsand82percentofU.S.greenhousegasemissions.

    Climatechangeisoneofthegreatestenvironmentalchallengesweface.Fromstrongerstormsandlongerdroughtstoincreasedallergyseasons,insurancepremiums,andfoodprices,climateimpactsaffectallAmericanslives.Ourmostvulnerablecitizens,includingchildren,olderadults,peoplewithheartorlungdiseaseandpeoplelivinginpovertymaybemostatriskfromtheimpactsofclimatechange.

    TheCleanAirAct(CAA)section111(d)requiresstatestoestablishintheirstateplans,standardsofperformancethatreflectthedegreeofemissionlimitationachievablethroughtheapplicationofthebestsystemofemissionreduction(BSER).WhensettingBSER,theEPAmusttakeintoaccountthecostofachievingsuchreductionandanynonairqualityhealthandenvironmentalimpactandenergyrequirements,theAdministratordetermineshasbeenadequatelydemonstrated.

    ThisactionensuresthatthecarbondioxideemissionsreductionsrequiredinthefinalCleanPowerPlanareachieved.Thefederalplancontainsthesameelementsthatstateplansarerequiredtocontain,includingperformancestandards,monitoring,andreportingrequirements,aswellascomplianceschedulesthatincludemilestonesforprogress.

    EPAisrequestingpubliccommentonlyontheimplementationoftheCleanPowerPlanthroughtheproposedfederalplan.TheEPAwillnotaddresscommentsontheunderlyingCleanPowerPlanrules.

    HOWTOCOMMENT EPAwillacceptcommentsontheproposedfederalplanfor90daysfollowingpublicationin

    theFederalRegister.

    CommentsontheunderlyingCleanPowerPlanrulewillbeconsideredoutofscopeforthisaction.

    Commentsontheproposedfederalplanrequirements,identifiedbyDocketIDNo.EPAHQOAR20150199,canbesubmittedbyoneofthefollowingmethods:

    FederalRulemakingPortalwww.regulations.gov:Followtheonlineinstructionsforsubmittingcomments.

    Email:SendyourcommentsviaelectronicmailtoaandrDocketa@epa.gov,AttentionDocketIDNo.EPAHQOAR20150199.

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    Facsimile:Faxyourcommentsto(202)5669744,AttentionDocketIDNo.EPAHQOAR20150199.

    Mail:Sendyourcommentsto:EnvironmentalProtectionAgency,EPADocketCenter(EPA/DC),Mailcode:28221T,1200PennsylvaniaAve.,NW,Washington,DC20460,AttentionDocketIDNo.EPAHQOAR20150199.Inaddition,pleasemailacopyofyourcommentsontheinformationcollectionprovisionstotheOfficeofInformationandRegulatoryAffairs,OfficeofManagementandBudget,Attn:DeskOfficerforEPA,72417thStreetNW,Washington,DC20503

    HandDelivery:Deliveryourcommentsto:EPADocketCenter,Room3334,EPAWestBuilding,1301ConstitutionAve.,NW,Washington,DC,20004,AttentionDocketIDNo.EPAHQOAR20150199.SuchdeliveriesareacceptedonlyduringtheDocketsnormalhoursofoperation(8:30a.m.to4:30p.m.,MondaythroughFriday,excludinglegalholidays)andspecialarrangementsshouldbemadefordeliveriesofboxedinformation.

    FORMOREINFORMATION Todaysproposedruleandotherbackgroundinformationarealsoavailableeither

    electronicallyathttp://www.regulations.gov,EPAselectronicpublicdocketandcommentsystem,orinhardcopyattheEPADocketCentersPublicReadingRoom.

    ThePublicReadingRoomislocatedintheEPAHeadquartersLibrary,RoomNumber3334intheEPAWJCWestBuilding,locatedat1301ConstitutionAve.,NW,Washington,DC.Hoursofoperationare8:30a.m.to4:30p.m.easternstandardtime,MondaythroughFriday,excludingfederalholidays.

    Visitorsarerequiredtoshowphotographicidentification,passthroughametaldetectorandsigntheEPAvisitorlog.AllvisitormaterialswillbeprocessedthroughanXraymachineaswell.Visitorswillbeprovidedabadgethatmustbevisibleatalltimes.

    MaterialsforthisproposedactioncanbeaccessedusingD