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: 

  1. Reducing the carbon intensity of generation at individual affected Electric Generating Units (EGUs) through heat rate improvements (Heat Rate Improvement);
  2. 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);
  3. 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
  4. 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.

Tennessee Facts: 

  • % Electricity Generated by Coal: 42%
  • Direct and Indirect Coal Jobs: 8,130
  • Manufacturing Jobs: 11,500

Learn more about EPA's Clean Power Plan: