CLEAN POWER PLAN

OVERVIEW The final rule released in August 2015: Sets first-ever limits on carbon pollution from power plants Sets achievable standards to reduce carbon dioxide emissions by 32 percent from 2005 levels by 2030 Establishes national carbon dioxide emissions performance rates for existing coal- and gas-fired power plants

OVERVIEW CONT’D Provide significant public health benefits. In 2030, it will: Prevent up to 3,600 premature deaths Prevent 1,700 non-fatal heart attacks Prevent 90,000 asthma attacks in children Save the average American family ~$85/year on their energy bills Save consumers $155 billion from

OVERVIEW CONT’D State specific targets based on a best system of emission reduction reflecting pollution reduction potential Provides flexibility to states to choose how to meet carbon standards State implementation plans Early incentive program Targeting energy efficiency and renewable energy in low income- communities

STATE IMPLEMENTATION PLANS Emission standards plan Mass based approach State issues emission allowances equal to the number of tons of emissions allowed in the state Rate based approach Uses emission rate credits: credits for shifting generation to cleaner sources or improving end- use energy efficiency Power companies create credits by reducing emissions within its own company, contracting with another company to do so, or by purchasing credits created by others State measures plan Measures implemented by the state ex: renewable energy standards, state laws, etc. Regional Trading

FEDERAL IMPLEMENTATION PLAN If states do NOT submit a state implementation plan, a Federal Implementation Plan will be put in place: Model that states can use in designing their plans Lays out both rate-based and mass- based options Not final

STATE COMPLIANCE According to Union of Concern Scientists findings: At least 31 states are on track to be more than halfway toward meeting their 2022 targets thanks to existing commitments to clean energy At least 21 states are on track to surpass their 2022 emission reduction targets At least 16 states are on track to achieve their 2030 targets based on existing clean energy commitments

AugSepOctNovDecJanFebMarAprMayJunJulAugSepOctNovDec Final rules Petitions for review filed Motions for stay briefed & decided Merits briefed Oral arguments Merits decision by D.C. Circuit Note: Litigation timelines are difficult to predict. This timeline only roughly approximates the windows during which each stage of the litigation may occur. Anticipated D.C. Circuit Litigation Timeline Final Power Plant Rules, Requests for Supreme Court review follows merits decision

Expected Approach to CPP Compliance AK, HI & VT have no CPP targets Source: State Hub Publicly committed (13) Silent; likely to submit a plan (15) Negative; likely to submit a plan (6) Negative; unclear if state will submit a plan (12) Publicly opposed; won’t submit a plan (1) Governor:

CLEAN POWER PLAN QUESTIONS?