EPA's Climate Rules
On June 18, 2014 the Environmental Protection Agency released the "Clean Power Plan," a set of proposed regulations, that will regulate carbon dioxide (CO2) emissions from existing “fossil fuel-fired” power plants using Clean Air Act (CAA) § 111(d).
EPA is targeting a 30 percent reduction in CO2 emissions from the “fossil fuel-fired” power fleet by 2030, as measured on a 2005 baseline. EPA is projecting that its “Clean Power Plan” will reduce coal-based electricity to approximately 31 percent of the energy mix by 2030. EPA’s proposal is based on a national framework formula that has different targets for different states based on previous state actions and their current energy mix, by:
- Reducing the carbon intensity of generation at individual affected Electric Generating Units (EGUs) through heat rate improvements (Heat Rate Improvement);
- Reducing emissions from the most carbon-intensive affected EGUs in the amount that results from substituting generation at those EGUs with generation from less carbon-intensive affected EGUs (including Natural Gas Combined Cycle units under construction) (Natural Gas Load Shifting/Redispatch);
- Reducing emissions from affected EGUs in the amount that results from substituting generation at those EGUs with expanded low- or zero-carbon generation(Renewable Generation Increases); and
- Reducing emissions from affected EGUs in the amount that results from the use of demand-side energy efficiency that reduces the amount of generation required (System Wide End Use Energy Efficiency).
Rules Effect on Tennessee:
- Wholesale electricity prices will spike as high as 19.2%.
- Households will pay as much as $116.49 more a year.
- Industrial customers will pay as much as $116,019.95 more a year.
- Between 2020-2030 households and businesses will pay an additional $1.072 billion for natural gas.
- % Electricity Generated by Coal: 42%
- Direct and Indirect Coal Jobs: 8,130
- Manufacturing Jobs: 11,500
Learn more about EPA's Clean Power Plan:
- EPA's Climate Rules
- Pushing the Electric Grid Over the Edge
- Map of Impact of Coal Plant Retirements on Winter Power Prices
- Study: Impact of Early Coal Retirements on Key Power Markets
- Grid Reliability Fact Sheet
- EPA Policies Impose Regressive Tax
- Polls Reveal Americans Worried About Impacts of EPA Power Plant Rules
- Partnership for Affordable Clean Energy: Will the U.S. Learn from Germany, Australia?