
MEMORANDUM

DATE: 11/20/14

FROM: 		Ken Mitchell/EPA Region 4

TO:CLEAN POWER PLAN FOR EXISTING POWER PLANTS; DOCKET ID: OAR - 2013-0602

SUBJECT:DISCUSSION OF THE CLEAN POWER Plan with Kentucky Energy and Environment Cabinet

SUMMARY:        
REGION 4 PROVIDED INFORMATION ON THE CLEAN POWER PLAN to the Kentucky Energy and Environment 
Cabinet on August 25, 2014.  The Clean Power Plan for Existing Power Plants was proposed on 
June 2, 2014.  
ATTENDEES:

EPA
Ken Mitchell/EPA R4
Keith Goff/EPA R4
Other EPA HQ Staff

External Stakeholders
Sean Alteri/Kentucky Energy and Environment Cabinet
John Lyons/Kentucky Energy and Environment Cabinet


ATTACHMENT

Advance Questions for Discussion of the Clean Power Plan with the Kentucky Energy and Environment 
Cabinet on 8/25/14

1. If a state utilizes a mass-based approach, does that state have to convert back to the rate-based goal in 2030 to demonstrate compliance?  

2. Does EPA plan to revise state-specific goals if the court vacates a building block that was used to establish BSER, in light of the severability language in the proposed rule?

3.  EPA has stated that new NGCC can be used as a compliance option in meeting the state-specific goal.  Will a state be able to use the emission rate of new NGCC in meeting the state-specific goal or just the incremental reductions that go above and beyond the 111(b) standard?

4. Can retirements that occur between 2014 and 2020 be used as emission reduction credits to meet the state-specific goal? 

5. In a state without an RPS, can a state use power purchase agreements, where RECs are tied to electricity consumed, as an enforceable mechanism for imported renewables as part of the state plan?

6. After reviewing the proposal in greater detail, Kentucky is prepared to conduct a state-specific call with Region 4.  Obviously, our review of the proposal is on-going; however, one aspect that remains unresolved is the conversion from the state rate-based CO2 emissions performance goal to a mass-based CO2 emissions performance goal.  EPA's interpretation of the following proposed regulatory citation will assist Kentucky greatly in understanding our obligations under the proposal:  
 
   § 60.5770 What is the procedure for converting my state rate-based CO2 emissions performance goal to a mass-based CO2 emissions performance goal?  (d) The conversion must represent the tons of CO2 emissions that are projected to be emitted by affected EGUs, in the absence of emission standards contained in the plan, if the affected EGUs were to perform at an average lb CO2/MWh rate equal to the rate-based goal for the state identified in Table 1 of this Subpart.
 
   The basic question is:  "Will the remaining affected EGUs in 2030 be required to meet the final rate-based goal based on the generation in 2012 or 2030?"
 
   As an example: In 2012, Kentucky's emissions from affected EGUs is ~91 M tons of CO2, based on our emission rate of 2,166 lbs CO2/MWh.  Using the same calculation and MWh generated in 2012, applying the rate of 1763 lbCO2/MWh (final goal) would result in CO2 emissions of 74 M tons from the existing fleet. Does this ~17M ton reduction constitute an equivalent mass reduction goal that must be met in 2030?  Or will the affected EGUs remaining in 2030 be required "to perform at an average lb CO2/MWh rate equal to" 1763 lbsCO2/MWh?   

