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AMERICAN PUBLIC prwr' R TM ASSOCIATION Powering Strong Communities ISSUE BRIEF January 2017 EPAs Final Rule to Regulate Carbon Dioxide Emissions from Existing Fossil Fuel-Fired Power Plants Summary power plants..."no later than June 1,2014.'Final standards On August 3,2015,the Environmental Protection Agency would have to be issued by June 1,2015,and any guidelines (EPA) released its final rule to establish emission guidelines for addressing existing power plants must include a requirement carbon dioxide(CO2)emissions from fossil fuel-fired power that state plans required under Section 111(d)of the CAA and plants. Called the Clean Power Plan(CPP)by EPA,the rule any implementing regulations be submitted to EPA by June 30, sets state-specific,rate-based goals for CO2 emissions from the 2016.Following the President's directive,on June 2,2014,EPA released its proposed emissions guidelines for CO2 emissions power sector,subcategory-specific CO2 emission performance from existing fossil fuel-fired power plants.It also released its rates,and state mass-based CO2 goals that represent the equiv- alent of each state's rate-based goal.The rule also establishes proposed guidelines for emissions from modified and recon- guidelines for the states to follow in developing plans to achieve structed power plants.On August 3,2015,EPA released its final the state-specific goals.According to the agency,the rule would "Carbon Pollution Emission Guidelines for Existing Stationary reduce CO2 emissions from the power sector by 32 percent by Sources:Electric Generating Units" (called the Clean Power 2030 from CO2 emission levels in 2005. Plan)as well as its final"Standards for Performance for Green- While EPA improved the final rule from its proposed rule, house Gas Emissions from New Stationary Sources:Electric the American Public Power Association(Association or APPA) Generating Units" (new plant rule)2 and final Carbon Pollution believes the final rule goes well beyond what is permissible Standards for Modified and Reconstructed Stationary Sourc- under Section 111(d)of the Clean Air Act(CAA or Act) and is es:Electric Generating Units.In addition,EPA proposed its strongly concerned about its potential impacts on some public Federal Plan Requirements for Greenhouse Gas Emissions from power utilities and their customers.Thus,the Association has Electric Generating Units;Model Trading Rules;Amendments challenged it in court.APPA believes we need to address climate to Framework Regulations(Federal Plan and Model Trading change,but not through the existing CAA,which was enacted Rules) on August 3(this was done in an effort to assist states to to address criteria pollutants for human health protection and develop implementation plans that rely on tradable compliance not CO2 or other GHG emissions.In spite of the obvious instruments).All three rules and the proposed Federal Plan and problems with regulating GHGs under the Clean Air Act,EPA Model Trading Rules were published in the Federal Register on decided to go forward with its efforts to regulate such gases from October 23,2015. existing fossil fuel-fired power plants under Section 111(d). Had The Clean Power Plan sets final emission guidelines in the EPA proposed a rule that sought to reduce emissions through form of nationally uniform CO2 emission performance rates heat rate improvements at fossil fuel fired electric generating for two kinds of fossil fuel-fired EGUs—steam generating units units(the affected source),its rule would be on solid legal (1,305 pounds CO2 per megawatt hour(lb CO2/MWh)) and ground. combustion turbines (771 lb CO2/MWh).It also finalizes 1 A copy of the Presidential Memorandum can be viewed at http://www.white- house.gov/the-press-office/2013/06/25/presiden tial-memorandum-power-sec- Backg round tor-carbon-pollution-standards. On June 25,2013,President Obama sent a memo to the Acting 2.While APPA has concerns with EPA's final rule to regulate CO2 emissions Administrator of EPA directing him to issue proposed"stare- from new power plants,this issue brief focuses exclusively on the existing plant dards,regulations,or guidelines,as appropriate,that address rule. carbon pollution from modified, reconstructed,and existing PublicPower.org 39 221