WEBINAR SERIES
EPA’s Final Clean Power Plan
August, 25, 2015
Abby Fox, Policy Manager
Southeast Energy Efficiency Alliance | www.seealliance.org
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SEEA Serves the Southeast
The Southeast Energy Efficiency Alliance (SEEA) promotes energy efficiency as a catalyst
for economic growth, workforce development and energy security. We do this through
collaborative public policy, thought leadership, outreach programs, and technical advisory
activities.
Regional Energy
Efficiency Organization
Eleven-state
footprint
Non-profit,
non-partisan
Southeast Energy Efficiency Alliance | www.seealliance.org
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GoTo Webinar Instructions
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Southeast Energy Efficiency Alliance | www.seealliance.org
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Cyrus Bhedwar
Policy Director
[email protected]
Southeast Energy Efficiency Alliance | www.seealliance.org
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SEEA’s Clean Power Plan Portal
www.seealliance.org
Southeast Energy Efficiency Alliance | www.seealliance.org
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Abby Fox
Policy Manager
[email protected]
Southeast Energy Efficiency Alliance | www.seealliance.org
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Today’s Agenda
 Mechanics of the Rule
 Southeastern Targets
 Implementation
 The Role of Energy Efficiency
 Q&A
Southeast Energy Efficiency Alliance | www.seealliance.org
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Mechanics of the Rule
A Two-Step Process
STEP 1:
EPA sets stringency
guidelines for states
Southeast Energy Efficiency Alliance | www.seealliance.org
STEP 2:
States develop and
implement compliance
plans
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Steps in Target-Setting Process
Starting Regional
Rate Averages for
Fossil Steam/NGCC
Units
• Apply “Best System
of Emission
Reduction” (BSER)
Post-BB Regional
Rate Averages for
Fossil Steam/NGCC
Units
• Select Least Stringent Regional
Goals for Each Sub-Category
Nationally Uniform
Rate Averages for
Fossil Steam/NGCC
Units
• Weight by State
Generation Mix
State-Specific
Targets
Southeast Energy Efficiency Alliance | www.seealliance.org
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Three BSER Building Blocks
Building Block 1:
Heat Rate Improvements—reducing the carbon intensity of
generation at coal steam units through region-specific heat rate
improvements.
Building Block 2:
Re-dispatch to Natural Gas Combined-Cycle (NGCC)—redispatching generation from higher to lower emitting units.
Building Block 3:
Renewable Energy — greater use of new renewable energy, based
on historical RE deployment.
Southeast Energy Efficiency Alliance | www.seealliance.org
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Southeastern Targets
Rate Reductions for Southeastern States
(lbs CO2/MWh)
2,500
Range Under
Draft Rule
2,000
1,500
1,000
500
0
KY
TN
SC
NC
Historic 2012
AR
LA
Interim Rate Goal
Southeast Energy Efficiency Alliance | www.seealliance.org
GA
AL
MS
VA
FL
Final Rate Goal
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Mass Reductions for Southeastern States
(Millions of Tons of CO2 Emissions)
120
100
Millions
80
60
40
20
AL
AR
FL
GA
Historic 2012
Southeast Energy Efficiency Alliance | www.seealliance.org
KY
LA
MS
Interim Mass Goal
NC
SC
TN
VA
Final Mass Goal
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Mass Reductions with New Source Complement
(Millions of Tons of CO2 Emissions)
120
Millions
100
80
60
40
20
AL
AR
FL
GA
KY
Historic 2012
Final Mass Goal w/New Source Complement
Southeast Energy Efficiency Alliance | www.seealliance.org
LA
MS
NC
SC
TN
VA
Interim Mass Goal w/New Source Complement
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Learn More at Our Conference!
Southeast Energy Efficiency Alliance | www.seealliance.org
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Implementation
Implementation Timeline
Submittals
▪ September 6, 2016: All states submit final plans, or initial submittal with an
extension request.
▪ September 6, 2017: States that receive an extension submit progress update.
▪ September 6, 2018: Deadline to submit final state plans, for states with
maximum two-year extension.
▪ July 1, 2021: States submit milestone (status) report.
INTERIM AND FINAL GOAL PERIODS
▪ 2022-2024: Interim step one period (Reporting: July 1, 2025).
Clean Energy
Incentive Program
(2020-2021)
▪ 2025-2027: Interim step two period (Reporting: July 1, 2028).
▪ 2028-2029: Interim step three period (Reporting: July 1, 2030).
▪ 2030: Start of final goal compliance period (Reporting: July 2, 2032 and every
two years beyond).
Southeast Energy Efficiency Alliance | www.seealliance.org
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Stepped “Glide Paths”
Source: U.S. EPA
Southeast Energy Efficiency Alliance | www.seealliance.org
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State Plan Approaches
▪ Emission Standards: Assigns all requirements to affected EGUs.
▪ State Measures (mass): Contains a mix of measures that may
apply to affected EGUs and state-enforceable measures that apply
to other entities, with a backstop of federally-enforceable
standards on affected EGUs.
▪ Various Permutations: Rate vs. mass, distribution of compliance
obligations across units, use of new source complement, trading,
etc.
Southeast Energy Efficiency Alliance | www.seealliance.org
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The Role of Energy Efficiency
Specific Functions of Energy Efficiency
Depending on the type of plan, energy efficiency can:
▪ Generate tradeable, bankable credits.
▪ Serve as a state-enforceable measure within a compliance plan
(mass only).
▪ Serve as a complementary, non-enforceable, cost-reducing
measure.
Southeast Energy Efficiency Alliance | www.seealliance.org
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Clean Energy Incentive Program
▪ 2020-2021 “early action”
▪ Pool of federal credits or allowances up to 300 million short tons
of CO2 emissions
▪ Reserve for energy efficiency projects in low-income communities
and matching credits/allowances (also renewables)
Southeast Energy Efficiency Alliance | www.seealliance.org
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Clean Power Plan Resource Paper Series
Southeast Energy Efficiency Alliance | www.seealliance.org
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Follow-up Materials
▪ Clean Power Plan Portal link
▪ Webinar recording/slides
▪ SEEA Conference materials
▪ NEW: Regional primer
Southeast Energy Efficiency Alliance | www.seealliance.org
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Questions and Answers
Southeast Energy Efficiency Alliance | www.seealliance.org
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Southeast Energy Efficiency Alliance | www.seealliance.org
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Other Key Changes
▪ EGUs are the only entities with federally enforceable
requirements
▪ Reliability safety valve
▪ Additional flexibility and guidance on interstate trading
▪ Release of draft federal plan
▪ Release of draft EM&V guidance
Southeast Energy Efficiency Alliance | www.seealliance.org
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Rate-Based Approaches
Approach
Sub-Categorized
Emission Rates
Type
Emission Standards
Treatment of EE
May be used in generating Emission
Rate Credits (ERCs).
State Emission Rates Emission Standards
May be used in generating ERCs.
Emission Standards
May be used in generating ERCs.
Differing Emission
Rates
Southeast Energy Efficiency Alliance | www.seealliance.org
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Mass-based Approaches
Approach
Type
Treatment of EE
Mass Goal for Existing
Units
Emission Standards Energy efficiency as a strategy for meeting
limit at lesser cost, but complementary to
the plan.
Mass Goal for Existing
and New Units (Mass
Complement)
Emission Standards Energy efficiency as a strategy for meeting
limit at lesser cost, but complementary to
the plan.
State Measures: Mass
Goal for Existing Units
State Measures
Could include energy efficiency policies and
programs that are enforceable under state
law.
State Measures
State Measures Mass
Goal for Existing and New
Units (Mass Complement)
Could include energy efficiency policies and
programs that are enforceable under state
law
Southeast Energy Efficiency Alliance | www.seealliance.org
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