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EPA’s Clean Power Plan and the Supreme Court’s Stay of the Rule April, 2016 Carol Kemker U.S. Environmental Protection Agency Atlanta, Georgia Modified March, 2017, RC Paul Climate Change is a Threat • Public health risks include: • Increase in heat stroke and heat-related deaths • Extreme heat events are the leading weather-related cause of death in the U.S. • Worsening smog (also called ground-level ozone pollution) and, in some cases, particle pollution • Increasing intensity of extreme events, like hurricanes, extreme precipitation and flooding 2 • Increasing the range of insects that spread diseases such as Lyme disease and West Nile virus The President’s Climate Action Plan • President Obama’s Climate Action Plan takes a series of ambitious steps to combat climate change • Cuts carbon pollution in America through domestic policies that involve both voluntary and regulatory action • Prepares our country for the impacts of climate change • Leads international efforts to address global climate change • Advances the Science 3 https://www.whitehouse.gov/climate-change What EPA is Doing Advancing the Science • EPA contributes to world-class climate research through: • The U.S. Global Change Research Program • The Intergovernmental Panel on Climate Change • The National Research Council of the National Academies of Science • EPA's Office of Research and Development conducts research to understand the environmental and health impacts of climate change and to inform sustainable solutions for adapting to and reducing the impact from a changing climate 4 http://www2.epa.gov/climate-research What EPA is Doing Partnering With States, Localities, and Tribes • EPA's State and Local Climate and Energy Program provides technical assistance, analytical tools, and outreach support to state, local, and tribal governments • Identifies/documents cost-effective policies and initiatives that address climate change, including those that promote renewable energy, energy efficiency, and related clean technologies • Measures/evaluates the environmental, economic, and public health benefits of climate change and clean energy initiatives • Offers tools, guidance, and outreach support for assessing the options and benefits of actions to reduce greenhouse gas emissions • Fosters peer exchange opportunities for state and local officials to share information on best practices and lessons learned about innovative policies and programs 5 http://www.epa.gov/statelocalclimate/ What EPA is Doing Partnering Internationally • EPA is engaged in a variety of international activities to advance climate change science, monitor our environment, and promote activities that reduce greenhouse gas emissions • EPA establishes partnerships, provides leadership, and shares technical expertise to support these activities • EPA participates in bi-and multilateral partnerships, providing leadership, technical expertise, and capacity building support UN Framework Convention on Climate Change As a party to the Framework, the U.S. is committed to working with the international community to promote the convention’s key objective: stabilizing greenhouse gas concentrations in the atmosphere at a level that prevents dangerous humaninduced interference with the climate system http://epa.gov/climatechange/EPAactivities/internationalpartnerships.html 6 What EPA is Doing Helping Communities Adapt • Across the United States and the world, climate change is already affecting communities, livelihoods, and the environment • In response, many parts of the federal government are taking action to help Americans adapt to current and potential risks • For example, EPA's Climate Ready Estuaries and Climate Ready Water Utilities programs help coastal resource managers and water utility managers, respectively, plan and prepare for climate change http://epa.gov/climatechange/impacts-adaptation/fed-programs.html 7 Supreme Court Stays the Clean Power Plan • February 9, 2016 – The Supreme Court stayed implementation and enforcement of the Clean Power Plan pending judicial review • Implementation and enforcement are on hold EPA firmly believes the Clean Power Plan will be upheld when the merits are considered because the rule rests on strong scientific and legal foundations • State submittals not required on September 6, 2016 For the states that choose to continue to work to cut carbon pollution from power plants and seek the agency’s guidance and assistance, EPA will continue to provide tools and support • EPA will continue to work with states that want to work with us on a voluntary basis o • • • Key Points The Court’s decision was not on the merits of the rule EPA will provide additional information as it is available The remainder of this presentation describes the various components of the CPP for existing sources as they were on February 9, 2016, and is presented only for informational purposes – implementation and enforcement of the CPP for existing sources is on hold pending judicial review 8 Presented for informational purposes only; the CPP for existing sources is stayed pending judicial review 10 HITTING “PAUSE” ON CLIMATE ACTION The Supreme Court’s Stay of the Clean Power plan Jan. 21, 2016 – D. C. District Court Panel denies blockage of EPA enforcement Feb. 9, 2016 Supreme Court Stay of EPA Enforcement Feb. 13, 2016 - Judge Antonin Scalia Dies Summary On August 3, 2015 EPA announced three actions that will significantly reduce carbon pollution from the power sector, the largest source of carbon pollution in the US o Carbon Pollution Standards – new, modified and reconstructed sources IN EFFECT; NOT STAYED • 80 FR 64509; October 23, 2015 o Clean Power Plan (CPP) – existing sources STAYED • 80 FR 64661; October 23, 2015 o Federal Plan proposal and model rules Proposed, not finalized • 80 FR 64965; October 23, 2015 When the stay is lifted EPA’s actions will o Achieve significant pollution reductions o Deliver an approach that gives states and utilities plenty of time to preserve ample, reliable and affordable power www.epa.gov/cleanpowerplan Presented for informational purposes only; the CPP for existing sources is stayed pending judicial review 16 The Clean Power Plan Presented for informational purposes only; the CPP for existing sources is stayed pending judicial review What sources? 17 Category-Specific Performance Rates Power plants are subject to the same standards no matter where they are located. Emission Performance Rates (application of BSER) X Unique State Generation Mix = Unique State Goal Rates Mass Equivalents EPA established carbon dioxide emission performance rates for two subcategories of existing fossil fuel-fired electric generating units (EGUs): • Fossil fuel-fired electric generating units (generally, coal-fired power plants) and • Natural gas combined cycle units. Emission performance rates have been translated into equivalent state goals. In order to maximize the range of choices available to states, EPA provided state goals in three forms: • rate-based goal measured in pounds per megawatt hour (lb/MWh), • mass-based goal measured in short tons of CO2 and • mass-based goal with a new source complement (for states that choose to include new sources) measured in short tons of CO2. Presented for informational purposes only; the CPP for existing sources is stayed pending judicial review 18 Choosing the Glide Path to 2030 • Phased-in glide path (compliance timelines currently stayed) • The interim period runs from 2022-2029 and includes three interim performance periods creating a reasonable trajectory (smooth glide path) • Interim steps (currently stayed) • Step 1 – 2022-2024 • Step 2 – 2025-2027 • Step 3 – 2028-2029 • Provided that the interim and final CO2 emission performance rates or goals are met, for each interim period a state can choose to follow EPA’s interim steps or customize their own • Renewables and energy efficiency can help states meet their goals • Investments in renewables can help states under all plan approaches to achieve the Clean Power Plan emission goals while creating economic growth and jobs for renewable manufacturers and installers, lowering other pollutants and diversifying the energy supply • Energy efficiency improvements are expected to be an important part of state compliance across the country and under all state plan types, providing energy savings that reduce emissions, lower electric bills, and lead to positive investments and job creation Presented for informational purposes only; the CPP for existing sources is stayed pending judicial review 19 20 Presented for informational purposes only; the CPP for existing sources is stayed pending judicial review 21 Electric Utilities switching to Natural Gas 22 Coal Mining Jobs 23 Mountain Top Removal 24 Memphis TN 2011 25 Wildlife Effects NC Fish Kill Fish exposed to Selenium 26 Plant Scherer Juliette GA 27 Progress Rept/Plan Type Interim Step 1 Interim Step 3 Source: RAP from modified Nicholas Institute graphic 2031 2030 2029 2028 2027 2026 2025 2024 2023 2022 2021 2020 Clean Energy Incentive Program 2019 2018 Final Plan Submission Interim Step 2 2017 2016 Initial State Submission CPP Compliance Timing