Clean Air Act Section 111(d) Clean Power Plan Clean Air Act Section 111(d) Environment Committee Briefing 9/16/14, Edith Makra MMC

Clean Power Plan Purpose Boost the economy Spark investment in clean power Maintain an affordable, reliable energy system. Lead to health & climate benefits worth an approx. $55 -$93 billion in 2030. Protect public health and environment Cut harmful particle pollution, sulfur dioxide and nitrogen oxides as a co-benefit. Provide important health protections to the most vulnerable. Every $1invested through the Clean Power Plan – will yield up to $7 in health benefits. Fight climate change By 2030, reduce nationwide carbon dioxide (CO2) emissions, from the power sector by approximately 30% from 2005 levels. Environment Committee Briefing 9/16/14, Edith Makra MMC

US EPA Proposing Rules to Implement Clean Power Plan Called for in President’s Climate Action Plan EPA had and continues strong outreach US EPA expecting millions of comments! Accepting public comment on plan through 10/16/14 Question for Environment Committee- Should we comment on the plan? Final plan due 6/1/15 Illinois submits plan to USEPA 6/1/16 Extensions allowed for legislative and regional approaches

Draft Clean Power Plan Rules Only: Sets individual state CO2 emission reduction goals Expected to be 33% reduction in CO2 emission rate by 2030 Rate = lbs CO2/MWh from existing, affected fossil-fueled fired sources 2. Provides framework for the development of state plans Framework provides flexibility for state plans

1 3 4 2 6% 27% 4 Building Blocks Inside the Fence-Line Improvements at Coal-Fired Power plants 4 Building Blocks Re-dispatch to High Efficiency Natural Gas Combined Cycle 2 3 New Renewable Energy & Nuclear 4 Energy Efficiency (EE) Demand-side EE Inside the Fence-Line 6% Outside the Fence-Line 27% 5 Environment Committee Briefing 9/16/14, Edith Makra MMC

7% Building Block 3 Step 4 Build new RE and Nuclear Goal (lbs CO2/MWh) % Reduced Cumulative % Baseline 1,895 1 1,784 6% 2 1,614 9% 15% 3 1,476 7% 22% 4 Total BB #3 New Renewable Energy (RE) & Nuclear Build new RE and Nuclear - 115% increase in RE by 2030 - 4% of IL generation in 2012 to 9% in 2030 7% Environment Committee Briefing 9/16/14, Edith Makra MMC

Step 5 Building Block 4 Building Block Goal (lbs CO2/MWh) % Reduced Cumulative % Baseline 1,895 1 1,784 6% 2 1,614 9% 15% 3 1,476 7% 22% 4 1271 11% 33% Total BB #4 Energy Efficiency (EE) Demand-side EE Increase demand-side EE results in avoided generation from affected coal and other fossil-fuel EGUs 11.6% increase in EE (avoided generation) + 0.9% line loss improvement 11% Environment Committee Briefing 9/16/14, Edith Makra MMC

1 2 3 4 Goal Total 42% Building Block Goal (lbs CO2/MWh) % Reduced Cumulative % Unadjusted Baseline 2,189 Baseline 1,895 13% 1 1,784 6% 5.5% (18.5%) 2 1,614 9% 15% 5.5% (24%) 3 1,476 7% 22% 8% (32%) 4 1,271 11% 33% 10% (42%) Total 42% 1 2 3 4 Environment Committee Briefing 9/16/14, Edith Makra MMC

Illinois – Background (cont.) 2012 Net Electricity Generation Generation Source Percent of Total Nuclear 49% Coal-Fired 41% Natural Gas-Fired 6% Renewable Energy 4% Environment Committee Briefing 9/16/14, Edith Makra MMC

Illinois Power – Background 17 coal-fired power plants 17,000 MW Variety: 4 to > 60 years old 74 MW to > 800 MW Variety of coal types most are well-controlled. 30 Natural-gas fired plants 3 of which are Natural Gas Combined Cycle (NGCC), ~ 2,230 MW 6 Nuclear Plants, ~ 12,000 MW Environment Committee Briefing 9/16/14, Edith Makra MMC

111(d) – State Plan Development Power Plants/Affected Sources Facilitator, Collaborative Groups Governor’s Office DCEO -EEPS -Demand-Side EE -RE Environmental Groups/NGO’s State Plan IEPA -Inside the fence-line requirements -Plan Assembler & Submitter RTOs & ISOs: -PJM -MISO IPA RPS Legislative Liasion -EEPS -RPS -Clean Energy ICC -Re-dispatch to NGCC -RPS -RE -Enforcement Clean Energy Providers: RE + EE Utilities/Distributors: -ComEd/Exelon -Ameren EE Environment Committee Briefing 9/16/14, Edith Makra MMC