EPAs Clean Power Plan

EPAs Clean Power Plan
Author: Joshua T. Graham
Publisher: Nova Science Publishers
Total Pages: 0
Release: 2016
Genre: Air
ISBN: 9781634848626

On 3 August, President Obama and the United States Environmental Protection Agency (EPA) announced the Clean Power Plan a historic and important step in reducing carbon pollution from power plants that takes real action on climate change. Shaped by years of unprecedented outreach and public engagement, the final Clean Power Plan is fair, flexible and designed to strengthen the fast-growing trend toward cleaner and lower-polluting American energy. With strong but achievable standards for power plants, and customised goals for states to cut the carbon pollution that is driving climate change, the Clean Power Plan provides national consistency, accountability and a level playing field while reflecting each state's energy mix. It also shows the world that the United States is committed to leading global efforts to address climate change. This book discusses the highlights and provides a review of the Clean Power Plan's implications.

State Perspectives

State Perspectives
Author: United States. Congress. House. Committee on Energy and Commerce. Subcommittee on Energy and Power
Publisher:
Total Pages: 130
Release: 2015
Genre: Carbon dioxide mitigation
ISBN:

EPA's Clean Power Plan

EPA's Clean Power Plan
Author: Melinda E. Taylor
Publisher:
Total Pages: 0
Release: 2015
Genre:
ISBN:

On June 2, 2014, the U.S. Environmental Protection Agency (EPA) proposed a plan to reduce carbon dioxide (CO2) emissions from existing fossil fuel power plants based on its authority under section 111(d) of the Clean Air Act (42 U.S.C. ยง 7411(d)). The proposal, known as the Clean Power Plan or 111(d) rule, will require each state to develop a plan for reducing the rate of CO2 emissions from its electric power system. As currently proposed, the Clean Power Plan requires states to meet interim emissions reduction targets beginning in 2020, with final targets to be achieved by 2030. The Clean Power Plan envisages that electric power companies will reduce their emissions by, among other things, switching to lower carbon fuel sources and increasing investment in energy efficiency. Currently, coal supplies approximately 40 percent of the electricity delivered to the grid in the U.S. Reducing the carbon intensity of the electric power system will mean increased reliance on natural gas and alternative sources of power, such as nuclear, wind, and solar. To some extent, this transition is already underway, even in the absence of federal standards. The U.S. Energy Information Administration estimates that, between 2004 and 2014, coal-fired electricity generation declined by nearly 20 percent. Over the same period, natural gas-fired generation increased by almost 58 percent and non-hydroelectric renewable generation by over 200 percent. The Clean Power Plan promises to accelerate this transition away from coal towards natural gas and renewables. Given this, the Clean Power Plan has been highly controversial. EPA received approximately two million public comments from states, industry leaders, environmental groups, and public citizens with a wide range of opinions on the best options to proceed with the Clean Power Plan. To help inform the on-going policy debate, from April to June 2015, the Kay Bailey Hutchison Center for Energy, Law, and Business at The University of Texas at Austin conducted a survey on key aspects of the Clean Power Plan. 66 valid survey responses were received. The survey respondents included power company executives, industry consultants, state environmental officials, state energy officials, utility regulator staff, and regional transmission organization staff from various locations. Responses were not collected from every state. Survey respondents were not asked whether they support or oppose the Clean Power Plan. Rather, the survey focused on issues relating to implementation of the Plan. The survey results are summarized in this report. Key findings of the survey include: (1) The overwhelming majority of survey respondents favored the development of state compliance plans rather than federally-developed plans. (2) There was broad support, among survey respondents, for mass-based trading programs. Support was found in both Democratic- and Republican-controlled states but was higher in the former than the latter. (3) Survey respondents were divided on the use of renewable portfolio standards and energy efficiency measures. These policies were popular among energy and environmental officials, particularly in Democratic-run states. However, few power company executives supported use of the policies. (4) Most survey respondents favored market-based compliance options. 68 percent of respondents indicated that they preferred mass-based trading over other market-based options. 11 percent of respondents listed rate-based trading as their preferred option. (5) Almost two-thirds of survey respondents favored adoption of mass-based emissions targets, arguing that they are easier to implement than the rate-based targets proposed by EPA. Others, however, expressed concern about the difficulties of converting any rate-based target into a mass-based form. There was also some concern about a mass-based target's perceived limits on future electricity growth. (6) The bulk of survey respondents supported interstate cooperation on the Clean Power Plan, with 90 percent arguing that states should develop multi-state plans or single-state plans that preserve the option to trade across state lines.

EPA's Clean Power Plan Proposal

EPA's Clean Power Plan Proposal
Author: Jonathan L. Ramseur
Publisher:
Total Pages:
Release: 2014
Genre:
ISBN:

On June 18, 2014, the Environmental Protection Agency (EPA) proposed regulations (the "Clean Power Plan") addressing carbon dioxide (CO2) emissions from existing fossil fuel-fired electric generating units. This report briefly discusses this proposal.

Epa?s Proposal to Repeal the Clean Power Plan

Epa?s Proposal to Repeal the Clean Power Plan
Author: Congressional Service
Publisher: Createspace Independent Publishing Platform
Total Pages: 26
Release: 2018-03-11
Genre:
ISBN: 9781986425582

In 2015, when the U.S. Environmental Protection Agency (EPA) promulgated the Clean Power Plan to reduce greenhouse gas emissions from fossil-fueled electric power plants, it concluded that the benefits of reducing emissions would outweigh the costs by a substantial margin under the scenarios analyzed. EPA estimated benefits ranging from $31 billion to $54 billion in 2030 and costs ranging from $5.1 billion to $8.4 billion in 2030, when the rule would be fully implemented. In proposing to repeal the rule in October 2017, EPA revised the estimates of both its benefits and costs, finding in most cases that the benefits of the proposed repeal would outweigh the costs of the proposed repeal. However, EPA found that under other assumptions, the costs of the proposed repeal would outweigh the benefits of the proposed repeal. This report examines the changes in EPA's methodology that led to the revised conclusions about how benefits compare to costs. Three changes to the benefits estimates of the proposed repeal drive the agency's new conclusions. First, it considered only domestic benefits of the Clean Power Plan in its main analysis, excluding benefits that occur outside the United States. Second, it used different discount rates, including one higher rate, than the 2015 analysis to state the present value of future climate benefits expected from the Clean Power Plan. Third, the analysis reduced some estimates of the human health "co-benefits"-that is, the benefits resulting from pollutant reductions not directly targeted by the Clean Power Plan. Specifically, several scenarios assumed no health benefits below specified thresholds for some air pollutants. EPA also changed the accounting treatment of demand-side energy efficiency savings. EPA's 2015 analysis treated savings from energy efficiency measures as a negative cost, whereas the 2017 analysis treated them as a benefit. Using the terminology of the proposed repeal, EPA moved energy savings from the cost savings estimate to the forgone benefits estimate. There was no change in the difference between benefits and costs because the benefits and costs increased by the same amount. This change took on more significance in a separate analysis that EPA conducted to analyze the cost savings of the proposed repeal. EPA based one set of benefit-cost estimates of the proposed repeal on its 2015 power sector modeling, which does not reflect changes that have since occurred in the power sector. EPA based the other set of benefit-cost estimates on more recent power sector projections from the Annual Energy Outlook 2017. The power sector changes subsequent to 2015 are potentially important and include changes in expected electricity demand, expected growth in electricity generation by renewable energy technologies, retirements of older generating units, changes in the prices and availability of different fuels and renewables, and state and federal regulations. While modeling differences render the two sets of estimates incomparable, both sets of estimates show a range of costs exceeding benefits (i.e., net costs), and benefits exceeding costs (i.e., net benefits) of the proposed repeal. EPA stated that it plans to update the power sector modeling and make it available for public comment before it finalizes the proposed repeal. This forthcoming analysis may show the extent to which updated power sector projections may change EPA's benefit-cost estimates.

EPA's Clean Power Plan for Existing Power Plants

EPA's Clean Power Plan for Existing Power Plants
Author: Congressional Research Congressional Research Service
Publisher: Createspace Independent Publishing Platform
Total Pages: 50
Release: 2016-10-12
Genre:
ISBN: 9781539688457

This report describes how EPA answered these and other questions. In addition to discussing details of the Clean Power Plan, the report addresses EPA's authority under Section 111 of the CAA, EPA's previous experience using that authority, and other background questions. The report discusses the ongoing litigation, including the stay granted by the Supreme Court. It also discusses challenges to the Clean Power Plan under the Congressional Review Act and other options that Congress has to influence EPA's action.

Strategic Policy Choice in State-Level Regulation

Strategic Policy Choice in State-Level Regulation
Author: James Busby Bushnell
Publisher:
Total Pages: 45
Release: 2015
Genre: Environmental policy
ISBN:

Flexibility in environmental regulations can lead to reduced costs if it allows additional abatement from lower cost sources or if policy tailoring and experimentation across states increases regulatory efficiency. The EPA's 2014 Clean Power Plan, which implements greenhouse gas regulation of power plants under the Clean Air Act, allows substantial regulatory flexibility. The Clean Power Plan sets state-level 2030 goals for emissions rates (in lbs CO2 per MWh) with substantial variation in the goals across states. The Clean Power Plan allows states considerable flexibility in attaining these goals. In particular, states can choose whether to implement the rate standards goals or equivalent mass-based goals (i.e., emissions cap and trade, CAT). Moreover, states can choose whether or not to join with other states in implementing their goals. We analyze incentives to adopt inefficient rate standards versus efficient CAT standards using both analytical and simulation models. We have five main results. First, we theoretically show that industry supply can be efficient under both CAT regulation and rate-based regulation. However, under rate-based standards the carbon price must equal the social cost of carbon and the rate standard must be equal across all the states. Second, we illustrate important differences in the incentives of a unified coalition of states and the incentives of a single state. Third, our simulation results show that when states fail to coordinate on a policy, the merit order can be "scrambled" quite dramatically leading to significant inefficiencies. Fourth, the Nash equilibrium of a game between coastal and inland western states is an inefficient policy for consumers and an uncoordinated policy for generators. Finally, we show that how new plants are treated under the Clean Power Plan has large effects on the scale and location of entry.

FERC Perspectives

FERC Perspectives
Author: United States. Congress. House. Committee on Energy and Commerce. Subcommittee on Energy and Power
Publisher:
Total Pages: 184
Release: 2015
Genre: Carbon dioxide mitigation
ISBN:

The Clean Power Plan

The Clean Power Plan
Author: Rachel Marlowe
Publisher:
Total Pages: 0
Release: 2014
Genre:
ISBN:

It is an interesting debate when two societal principles so integral to our long-term survival seem to come to a head. The Clean Power Plan, a new proposed rule by the EPA to reduce carbon emissions, appears to have sparked just such a battle. A clash seemingly between goals of environmental protection and protection of existing individual jobs is sure to garner public attention. However, this debate is less about jobs versus the environment and more about a shift in jobs from more traditional energy sectors to newer, less established sectors. This article explores the goals of the Clean Power Plan and how proponents and opponents alike frame the issue, especially in Pennsylvania, which is at the center of the changing energy landscape in the United States. President Richard Nixon signed the Clean Air Act into law on December 31, 1970. Many Federal environmental acts were signed into law in the 1970's as a result of growing citizen concern for the environment. The Clean Air Act authorized EPA to enact federal regulations and employ enforcement mechanisms that would control air emissions from both stationary and mobile sources. The Clean Air Act's main purpose has always been protecting the environment, although the cost of compliance and the impact of regulations on American industry were considered by Congress in conjunction with enactment of the Clean Air Act and its amendments. Additionally, any proposed rules, changes, or enforcement mechanisms are required to do the same. This article also addresses those impacts in the context of the recently proposed Clean Power Plan. The science community's knowledge about humans' impact on our climate has changed vastly since 1970 when we knew very little about the future of the world climate and were only beginning to realize that carbon dioxide emissions cause our planet to warm. In addition, coverage of this concept has also increased. These climate change stories have gone from being hidden in the back of technical journals to at the forefront of our mainstream media. In response to increasing concern about the current state of our environment and growing scientific consensus about global climate change, the EPA, on June 18, 2014, proposed a new rule establishing emissions guidelines for states to follow as they develop plans to address greenhouse gas emissions from fossil fuel electric generating units. This rule would mandate a thirty percent cut in carbon dioxide emissions from 2005 levels by the year 2030. This plan would develop state-specific goals for carbon dioxide emissions from power-related sources and continue progress already underway in reducing carbon dioxide emissions from fossil fuel-fired power plants.