CHEAPER AND CLEANER: Using the Clean Air Act to Sharply Reduce Carbon Pollution from Existing Power Plants, Delivering Health, Environmental and Economic.

Slides:

Advertisements

Similar presentations

EPA’S DRAFT GUIDELINES TO STATES FOR THE DEVELOPMENT OF STATE 111(d) PLANS MIDWESTERN POWER SECTOR COLLABORATIVE JUNE 17, 2014 FRANZ LITZ PROGRAM CONSULTANT.

Advertisements

KEEA Conference October 2013 Carbon Pollution Standards for Power Plants under Section 111 of the CAA: How Energy Efficiency Can Help States Comply 1 Jackson.

Hal T. Interactions between Carbon Regulation & Renewable Energy Policies  Thoughtpiece: The CATF is in a position to consider program.

EPA’s Clean Power Plan Proposed Rules for Reducing GHG Emissions from Power Plants Presentation to ACPAC June 16,

Prospective new EPA rules on existing source greenhouse gas emissions National Lieutenant Governors Association Oklahoma City, OK July 19, 2013 Eugene.

EPA Clean Power Plan. Emission Targets StateInterim Goal Final Goal 2030 AECI 2013 Net Rate Interim Reduction Final Reduction Missouri 1,6211,5441, %21.3%

Clean and Affordable Energy Future in Northwest U.S. Nancy Hirsh NW Energy Coalition October 1, 2014.

Update on EPA Activities MOPC July 15-16, Current Known Impacts –Retirements –De-ratings –Outage Impact Studies Proposed Clean Power Plan 2 Topics.

The Massachusetts Approach to Power Plant Clean-up Policy Making and Standards Setting to Reach Clean Air Sonia Hamel Massachusetts Executive Office of.

Toward a Sustainable Future Name of Conference, Event, or Audience Date Presenter’s Name | ©2011 Synapse Energy Economics Inc. All.

Northwest Power and Conservation Council Effects of Alternative Scenarios on Sixth Power Plan Northwest Power and Conservation Council Whitefish, MT June.

EPA Rulemakings to Set GHG Emission Standards for Power Plants National Hydropower Association Webinar Kyle Danish February 14, 2014.

Economic Issues in Climate Change Kathleen Segerson Department of Economics University of Connecticut.

EPA Basics on Clean Air Act Sec. 111(d) Reducing Carbon Emissions from Existing Power Plants NW Energy Coalition May 2, 2014.

1 Regulatory Concepts Related to the Control of NOx and SOx From Fossil- fired Electric Generating Units Air Quality Technical Advisory Committee Meeting.

Energy Efficiency in the Clean Power Plan Opportunities for Virginia Mary Shoemaker Research Assistant Spring 2015 VAEEC Meeting May 11, 2015.

Indiana Energy Association Environmental Issues Impacting Coal Fired Power Plants September 12, 2013 Thomas W. Easterly, P.E., BCEE, Commissioner IN Department.

Federal Policies for Renewable Electricity: Impacts and Interactions Anthony Paul Resources for the Future (RFF) December 3, 2010 Fourth Asian Energy Conference.

Renewable Energy: Legal and Policy Issues Frank Prager Vice President, Environmental Policy Xcel Energy November 20, 2009 Frank Prager Vice President,

Welfare Decomposition of a Clean Technology Standard: 3 Steps to a Carbon Tax by Anthony Paul, Karen Palmer, Matt Woerman

Can CCS Help Protect the Climate?. Key Points Climate Protection requires a budget limit on cumulative GHG emissions. Efficiency, Renewable Electric,

A Balanced Energy Plan for Alaska’s Railbelt Opportunities for End-Use Efficiency/Conservation and Renewable Energy Prepared for the Alaska Clean.

CLEAN ENERGY TO PROMOTE CLEAN AIR & IMPROVE ELECTRICITY PRICE STABILITY Alden Hathaway, ERT Debra Jacobson, GWU Law School April 6, 2006.

Congressional Gridlock Congressional Gridlock Executive Action Executive Action.

OPTIONS FOR STATES IMPLEMENTING CARBON STANDARDS FOR POWER PLANTS ARKANSAS STAKEHOLDER MEETING MAY 28, 2014 FRANZ LITZ PROGRAM CONSULTANT.

EPA’s Final Clean Power Plan: Overview Steve Burr AQD, SIP Section September 1, 2015.

Northwest Power and Conservation Council Slide 1 The Role of Efficiency In Meeting PNW Energy Needs Tom Eckman Manager, Conservation Resources Northwest.

OPSI Panel Climate Change Sonny Popowsky Consumer Advocate of Pennsylvania October 1, 2009 Annapolis, MD PA Office of Consumer Advocate 555 Walnut Street.

EPA’s Proposed Clean Power Plan U.S. Environmental Protection Agency.

Investing in America’s Electric Future Morry Markowitz Group Director, External Affairs New Mexico Utility Shareholders Alliance October 7, 2009.

Preliminary Results with the Regional Portfolio Model Michael Schilmoeller for the Northwest Power and Conservation Council Generation Resource Advisory.

Northwest Power and Conservation Council Slide 1 Accelerating Energy Efficiency To Reduce the PNW Power System's Carbon Footprint Tom Eckman Manager, Conservation.

Developing a Framework for Offset Use in RGGI Opportunities and Risks Dale Bryk, NRDC and Brian Jones, MJB&A – Northeast Regional GHG Coalition RGGI Stakeholder.

EPA’s Clean Power Plan: Compliance Options and Engagement Opportunities Vicki Arroyo, Executive Director Gabe Pacyniak, Mitigation Program Manager Lissa.

EPA’s Proposed Clean Power Plan House Committee on Natural Resources and Environment February 12, 2015 Tegan B. Treadaway Assistant Secretary Office of.

California Energy Commission IEPR Lead Commissioner Workshop University of California, Irvine August 17,

CLEAN POWER PLAN PROPOSAL Reducing Carbon Pollution From Existing Power Plants Kerry Drake,Associate Director Air Division, US EPA, Region 9 California.

June 26, Background of Federal GHG Regulation Supreme Court determines greenhouse gases (GHGs) are “air pollutants” under the Clean Air Act U.S.

Allocation of CO 2 Emission Allowances in RGGI Dallas Burtraw, Karen Palmer, Danny Kahn Resources for the Future Presentation to RGGI Stakeholder Meeting.

California Public Utilities Commission CPUC Climate Change Activities Paul Clanon Executive Director August 28, 2007 Presentation to the Senate Energy,

Presentation to RGGI Stakeholder Group September 21, 2005.

Clean Power Plan: Overview of Proposed Federal Plan and Model Rules Clean Power Plan: Overview of Proposed Federal Plan and Model Rules Air Quality Committee.

Northwest Power and Conservation Council A Look At The Council’s Conservation Planning Methodology and Assumptions A Look At The Council’s Conservation.

Clean Power Plan – Now What? OCTOBER 16, 2015 FALL PR-MR & MARKETING MEETING.

Clean Power Plan TENNESSEE MINING CONFERENCE AGENDA November 3, 2015 John Myers Director, Environmental Policy and Regulatory Affairs.

Sometimes externality problems can’t be solved by private bargaining (transaction costs are too big). Public policy toward externalities. “Command-and-control”

Northwest Power and Conservation Council Overview of Draft Sixth Power Plan Council Meeting Whitefish, MT June 9-11, 2009.

FINAL CLEAN POWER PLAN Before the Virginia Energy Efficiency Council Virginia Department of Environmental Quality November 12, 2015.

2/27/ % below 2005 by 2020 cap and trade 11/15/2007 set emissions targets by 11/15/08 ~60-80% cuts by ???? (2040?) cap and trade; C inventory, reporting.

Economic Assessment of Implementing the 10/20 Goals and Energy Efficiency Recommendations – Preliminary Results Prepared for : WRAP, AP2 Forum Prepared.

Impacts of Environmental Regulations in the ERCOT Region Dana Lazarus Planning Analyst, ERCOT January 26, 2016.

Clean Air Act Section 111 WESTAR Meeting Presented by Lisa Conner U.S. Environmental Protection Agency Office of Air and Radiation November 6, 2013.

Balancing the Carbon – Wind Equation: How Carbon Policy(ies) is/are shaping large scale renewable deployment and vice versa Seth Kaplan Senior Manager,

Slide 1 Overview of Conservation in the Pacific Northwest Energy Efficiency Options in the Northwest Post-2011Meeting March 4, 2008.

111D OPTIONS AND OPPORTUNITIES FOR MISSOURI David Weiskopf Sustainable Energy Fellow Natural Resources Defense Council October 28 th.

ENERGY & CLIMATE ASSESSMENT TEAM National Risk Management Research Laboratory U.S. Environmental Protection Agency Office of Research.

Missouri Public Service Commission Workshop on EPA’s Clean Power Plan February 4, 2016 Andy Knott Sierra Club Beyond Coal Campaign

© 2015 Haynes and Boone, LLP Overview of the EPA Clean Power Plan Suzanne Beaudette Murray February 19, 2016 Tulane Environmental Law Summit.

Viability of Carbon Capture and Sequestration Retrofits for Existing Coal- fired Power Plants under an Emission Trading Scheme CEDM Annual Meeting May.

Clean Power Plan Kyra Moore Director, Air Pollution Control Program Prepared for: Midwest Energy Policy Conference October 6, 2015.

EFFICIENCY FIRST FOR MISSOURI’S ENERGY FUTURE Becky Stanfield, NRDC October 21, 2014 MPSC Statewide Collaborative Meeting.

The Clean Power Plan.  Standards of Performance for GHG Emissions from New, Modified, and Reconstructed Stationary Sources (111(b)).  Carbon Pollution.

Western State Targets and Key Issues Patrick Cummins, CNEE September 10, 2015.

State and Regional GHG Initiatives What are the individual states doing to mitigate GHG emissions? What are the common elements? and regional differences?

1 Long Range Transport of Air Pollution Air pollution can travel hundreds of miles and cause multiple health and environmental problems on regional or.

© 2016 Portland General Electric. All rights reserved. I NTEGRATED R ESOURCE P LAN 2016 OPUC Meeting April 21, 2016.

CLOSING THE POWER PLANT CARBON POLLUTION LOOPHOLE:

Integrated Resource Plan 2016

NSPS Rulemakings for Greenhouse Gas Emissions

Regional Climate Alliances Spring 2008

Presentation transcript:

CHEAPER AND CLEANER: Using the Clean Air Act to Sharply Reduce Carbon Pollution from Existing Power Plants, Delivering Health, Environmental and Economic Benefits March 2014 Update

“We limit the amount of toxic chemicals like mercury and sulfur and arsenic in our air or our water, but power plants can still dump unlimited amounts of carbon pollution into the air for free. That’s not right, that’s not safe, and it needs to stop.” -President Obama, June 25th, 2013 CLOSING THE POWER PLANT CARBON POLLUTION LOOPHOLE: SMART WAYS THE CLEAN AIR ACT CAN CLEAN UP AMERICA’S BIGGEST CLIMATE POLLUTERS 2

THE TIMELINE January 20 th End of President Obama's second term January 20 th Start of President Obama's second term. June 25 th President Obama announces Climate Action Plan. September 20 th EPA proposes carbon pollution standards for future power plants May 9 th End of public comment period for future power plant proposal. June 1 st EPA to propose guideline for carbon pollution standards for existing power plants. June-September Public comment period on existing power plant proposal June 1 st EPA to finalize power plant carbon pollution standards June 30 th States to submit implementation plans for existing power plants to EPA. July-DecemberEPA reviews state plans for compliance with its guideline

EPA proposes “emission guideline” June 2014, final June Guideline includes performance standard and compliance provisions. States have until June 2016 to adopt and submit state plans. If a state submits no plan, or one EPA cannot approve, EPA must issue a federal plan. EPA CO2 Emissions Guideline & State Plans THE CLEAN AIR ACT AND EXISTING POWER PLANTS THE “101” ON 111 (d) “Source-based” approach limited to options plants can do “within the fenceline” (e.g. heat-rate improvements) – yields limited reductions, higher costs “System-based” approach includes all options that reduce emissions –yields deeper reductions, lower costs Heat-rate improvements Shifting generation from coal to gas Increasing zero -emission power (renewables and nuclear) Increasing energy efficiency “Best System of Emission Reduction” 4

State-specific fossil-fleet average CO2 emission rates (lbs/MWh) for 2020 and 2025 Calculated by applying benchmark coal and gas rates to each state’s baseline ( ) fossil generation mix Averaging allowed among all fossil units in state (including new units subject to the 111(b) standard) States may opt in to interstate averaging or credit trading Credit for incremental renewables and energy efficiency (equivalent to adding MWhs to denominator in calculating emission rate for compliance purposes) NRDC PROPOSAL SYSTEM-BASED, STATE SPECIFIC STANDARDS States may adopt alternative plans, including mass-based standards, provided they achieve equivalent emission reductions 5

STATES ALLOWED FLEXIBLE COMPLIANCE OPTIONS Heat rate reductions Cleaner power sources More renewablesInvestments in efficiency 6

Reference Case Moderate Case, Constrained Efficiency Ambitious Case, Full Efficiency Ambitious Case, Constrained Efficiency, PTC Ambitious Case, Constrained Efficiency Moderate Case, Full Efficiency NRDC SPECIFICATIONS LIST OF SCENARIOS 7

AEO 2013 demand projections Onshore wind costs: DOE/LBL 2012 Wind Technologies Report Nuclear units re-licensed All Cases NRDC SPECIFICATIONS LIST OF SCENARIOS Full Efficiency Cases: 482 TWh available in 2020 (Synapse) Constrained Efficiency Cases: 241 TWh available in 2020 Efficiency AssumptionsAmbition Assumptions 8

9 EE Program Costs (cents/kWh) Low Middle High Same energy efficiency potential (maximum MWhs saved) as in 2012 analysis Divided evenly into three cost blocks in each region, 482 TWh in total Energy Efficiency Quantity Assumptions Costs apply nationwide, do not vary across regions Derived based on utility program costs from Synapse and relative values from LBNL cost curve to estimate costs of each block Middle cost block is equal to the Synapse utility program cost Customer contribution at 45% of total cost is included in cost-benefit calculations Energy Efficiency Cost Assumptions NRDC SPECIFICATIONS SIMPLE ENERGY EFFICIENCY SUPPLY CURVE

2012 Actual 2020 Reference NRDC POLICY CASES vs REFERENCE CASE GENERATION MIX: 2012 vs REFERENCE CASE 10

NRDC POLICY CASES vs REFERENCE CASE PROJECTED GENERATION MIX IN

12 NRDC POLICY CASES vs REFERENCE CASE EMISSIONS Historical Reference Case Moderate, Constrained Efficiency Moderate, Full Efficiency Ambitious, Constrained Efficiency Ambitious, Full Efficiency Ambitious, Constrained Efficiency, PTC ,000 1,500 2,000 2,500 3, CO 2 Emissions (short tons)

NRDC POLICY CASES vs REFERENCE CASE EMISSIONS REDUCTIONS IN 2020: CO 2 SO 2 NO x 13

NRDC POLICY CASES vs REFERENCE CASE COSTS AND BENEFITS FROM REDUCED EMISSIONS IN

STATE EMISSION RATE TRAJECTORIES UNDER NRDC POLICY AMBITIOUS CASES 2020 AND

WESTERN REGIONAL RESULTS GENERATION MIX IN

WESTERN REGIONAL RESULTS EMISSION REDUCTIONS IN 2020: CO 2 SO 2 NO x 17

PNW AND CA+OTHERWEST REGIONAL RESULTS CO2 CREDIT PRICES ($/Ton) Moderate Full Efficiency CA + OTHERWEST PNW Moderate Constrained Efficiency CA + OTHERWEST PNW Ambitious Full Efficiency CA + OTHERWEST PNW Ambitious Constrained Efficiency CA + OTHERWEST PNW Ambitious Constrained Efficiency, PTC CA + OTHERWEST PNW

Exporter states Importer states A multi-state compliance agreement would allow each state to plan around utility portfolios, whether or not they cross state lines INTERSTATE ISSUES FOR CONSIDERATION 19 Power leaves the state, emissions remain States exporting to CA: emissions already counted under AB-32? Ability to select compliance pathways potentially limited by decisions in exporting states Changes in out of state purchases reflected? Out of state renewables and REC purchases?

The Northwest Power and Conservation Council analyze three pathways to ~35% emissions reductions by 2029 for the region, including imported power All scenarios included 5900 MW of additional Energy Efficiency HIGHER AND LOWER COST OPTIONS TO REACH THE SAME EMISSIONS LEVELS: NORTHWEST EXAMPLE 20 $45/ton carbon tax: 14% revenue requirement increase Cap and trade with free allocation: 2% revenue requirement increase Phased coal retirement: 15% revenue requirement increase