[Federal Register Volume 79, Number 219 (Thursday, November 13, 2014)]
[Proposed Rules]
[Pages 67406-67408]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-26900]


-----------------------------------------------------------------------

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 60

[EPA-HQ-OAR-2013-0602; FRL-9919-07-OAR]
RIN 2060-AR33


Carbon Pollution Emission Guidelines for Existing Stationary 
Sources: Electric Utility Generating Units

AGENCY: Environmental Protection Agency.

ACTION: Notice; additional information regarding the translation of 
emission rate-based CO2 goals to mass-based equivalents.

-----------------------------------------------------------------------

SUMMARY: The Environmental Protection Agency (EPA) is issuing this 
notice in support of the proposed rule, ``Carbon Pollution Emission 
Guidelines for Existing Stationary Sources: Electric Utility Generating 
Units,'' published on June 18, 2014 and the supplemental proposal, 
``Carbon Pollution Emission Guidelines: Existing Stationary Sources in 
Indian Country and U.S. Territories; Multi-jurisdictional 
Partnerships,'' issued on October 28, 2014, to provide further 
discussion of potential approaches for translating the emission rate-
based carbon dioxide (CO2) goals that the EPA has proposed 
for each affected jurisdiction to an equivalent mass-based metric.

DATES: Comments on the proposed rule published on June 18, 2014, along 
with the additional information presented in this notice, must be 
received on or before December 1, 2014.

ADDRESSES: Comments. Submit your comments, identified by Docket ID No. 
EPA-HQ-OAR-2013-0602, by one of the following methods:
    Federal eRulemaking portal: http://www.regulations.gov. Follow the 
online instructions for submitting comments.
    Email: [email protected]. Include Docket ID No. EPA-HQ-OAR-
2013-0602 in the subject line of the message.
    Facsimile: (202) 566-9744. Include Docket ID No. EPA-HQ-OAR-2013-
0602 on the cover page.
    Mail: Environmental Protection Agency, EPA Docket Center (EPA/DC), 
Mail code 28221T, Attn: Docket ID No. EPA-HQ-OAR-2013-0602, 1200 
Pennsylvania Ave. NW., Washington, DC 20460.
    Hand/Courier Delivery: EPA Docket Center, Room 3334, EPA WJC West 
Building, 1301 Constitution Ave. NW., Washington, DC 20004, Attn: 
Docket ID No. EPA-HQ-OAR-2013-0602. Such deliveries are accepted only 
during the Docket Center's normal hours of operation (8:30 a.m. to 4:30 
p.m., Monday through Friday, excluding federal holidays), and special 
arrangements should be made for deliveries of boxed information.
    Instructions: All submissions must include the agency name and 
Docket ID No. (EPA-HQ-OAR-2013-0602). The EPA's policy is to include 
all comments received without change, including any personal 
information provided, in the public docket, available online at http://www.regulations.gov, unless the comment includes information claimed to 
be Confidential Business Information (CBI) or other information whose 
disclosure is restricted by statute. Do not submit information that you 
consider to be CBI or otherwise protected through http://www.regulations.gov or email. Send or deliver information identified as 
CBI only to the following address: Mr. Roberto Morales, OAQPS Document 
Control Officer (C404-02), Office of Air Quality Planning and 
Standards, U.S. EPA, Research Triangle Park, North Carolina 27711, 
Attention Docket ID No. EPA-HQ-OAR-2013-0602. Clearly mark the part or 
all of the information that you claim to be CBI. For CBI information on 
a disk or CD-ROM that you mail to the EPA, mark the outside of the disk 
or CD-ROM as CBI and then identify electronically within the disk or 
CD-ROM the specific information you claim as CBI. In addition to one 
complete version of the comment that includes information claimed as 
CBI, you must submit a copy of the comment that does not contain the 
information claimed as CBI for inclusion in the public docket. 
Information so marked will not be disclosed except in accordance with 
procedures set forth in 40 CFR part 2.
    The EPA requests that you also submit a separate copy of your 
comments to the contact person identified below (see FOR FURTHER 
INFORMATION CONTACT). If the comment includes information you consider 
to be CBI or otherwise protected, you should send a copy of the comment 
that does not contain the information claimed as CBI or otherwise 
protected.
    The http://www.regulations.gov Web site is an ``anonymous access'' 
system, which means the EPA will not know your identity or contact 
information unless you provide it in the body of your comment. If you 
send an email comment directly to the EPA without going through http://www.regulations.gov, your email address will be automatically captured 
and included as part of the comment that is placed in the public docket 
and made available on the Internet. If you submit an electronic 
comment, the EPA recommends that you include your name and other 
contact information in the body of your comment and with any disk or 
CD-ROM you submit. If the EPA cannot read your comment due to technical 
difficulties and cannot contact you for clarification, the EPA may not 
be able to consider your comment. Electronic files should avoid the use 
of special characters, any form of encryption and be free of any 
defects or viruses.
    Docket: All documents in the docket are listed in the http://www.regulations.gov index. Although listed in the index, some 
information is not publicly available (e.g., CBI or other information 
whose disclosure is restricted by statute). Certain other material, 
such as copyrighted material, will be publicly available only in hard 
copy. Publicly available docket materials are available either 
electronically in http://www.regulations.gov or in hard copy at the EPA 
Docket Center, EPA WJC West Building, Room 3334, 1301 Constitution Ave. 
NW., Washington, DC. The Public Reading Room is open from 8:30 a.m. to 
4:30 p.m., Monday through Friday, excluding federal holidays. The 
telephone number for the Public

[[Page 67407]]

Reading Room is (202) 566-1744, and the telephone number for the Air 
Docket is (202) 566-1742. Visit the EPA Docket Center homepage at 
http://www.epa.gov/epahome/dockets.htm for additional information about 
the EPA's public docket.
    In addition to being available in the docket, an electronic copy of 
this notice will be available on the World Wide Web (WWW). Following 
signature, a copy of this notice will be posted at the following 
address: http://www2.epa.gov/cleanpowerplan/.

FOR FURTHER INFORMATION CONTACT: Ms. Amy Vasu, Sector Policies and 
Programs Division (D205-01), U.S. EPA, Research Triangle Park, NC 
27711; telephone number (919) 541-0107, facsimile number (919) 541-
4991; email address: [email protected] or Ms. Lisa Conner, Sector 
Policies and Programs Division (D205-01), U.S. EPA, Research Triangle 
Park, NC 27711; telephone number (919) 541-5060, facsimile number (919) 
541-4991; email address: [email protected].

SUPPLEMENTARY INFORMATION: Organization of This Document. The 
information presented in this notice is organized as follows:

    I. Background
    A. Proposed Rule
    B. Purpose of the Notice
    II. Additional Information on the Translation of Emission Rate-
Based CO2 Goals to Mass-Based Equivalents

I. Background

A. Proposed Rule

    On June 18, 2014, under the authority of Clean Air Act (CAA) 
section 111(d), the EPA proposed emission guidelines for states to 
follow in developing plans to address greenhouse gas (GHG) emissions 
from existing fossil fuel-fired electric generating units (EGUs)(79 FR 
34830). On October 28, 2014, the EPA also issued a supplemental 
proposal, ``Carbon Pollution Emission Guidelines: Existing Stationary 
Sources in Indian Country and U.S. Territories; Multi-jurisdictional 
Partnerships'' (79 FR 65481).
    One of the main elements of the proposals is the establishment of 
emission rate-based CO2 goals. To set these goals, the EPA 
analyzed practical and affordable strategies that states and utilities 
are already using to lower carbon pollution from the power sector. 
These strategies are incorporated into what the proposal describes as 
building blocks that comprise the best system of emission reduction 
(BSER).\1\ These strategies, which are already being deployed by states 
and companies across the country, include improvements in efficiency at 
carbon-intensive power plants; programs that enhance generation from, 
and spur private investments in, low emitting and renewable power 
sources; as well as programs that help homes and businesses use 
electricity more efficiently. The EPA has proposed goals for each 
state, area of Indian country and U.S. territory with affected EGUs, as 
a carbon intensity rate, in terms of CO2 per megawatt-hour 
generated. In calculating the emission rate-based goal, the EPA also 
took into consideration the area's fuel mix, electricity market and 
numerous other factors. Thus, each goal reflects the unique conditions 
of each state, area of Indian country and U.S. territory. The proposed 
rule also provides flexibility by authorizing each implementing 
authority to demonstrate achievement of the goal using a mass-based 
metric that is equivalent to its emission rate-based CO2 
goal. With the proposed rule issued on June 18, 2014, the EPA issued a 
TSD that demonstrates one potential way to translate the rate-based 
goal to a mass-based equivalent.
---------------------------------------------------------------------------

    \1\ CAA sections 111(d)(1) and (a)(1) direct the EPA to define 
BSER as the basis for state plans to reduce CO2 from the 
affected sources.
---------------------------------------------------------------------------

B. Purpose of the Notice

    Upon issuance of the proposed rule, the EPA continued the extensive 
outreach effort to stakeholders and members of the public that the EPA 
had engaged in for many months preceding the proposal. This outreach 
has provided opportunities for all jurisdictions with affected 
entities--both individually and in regional groups--as well as numerous 
industry groups and non-governmental organizations, to meet with the 
EPA and ask clarifying questions about, and give initial reactions to, 
the proposed components, requirements and timing of the rulemaking. 
This outreach has included individual meetings; attendance at 
conferences; webinars; conference calls; and other communications, 
during which the EPA has responded to hundreds of clarifying questions 
about the proposal and received numerous initial reactions in both oral 
and written form. This engagement has been designed to facilitate a 
better understanding of the rule by stakeholders so that they could 
provide more informed substantive comments for the EPA to consider for 
the final rule, as well as allow the EPA to consider stakeholders' 
initial reactions.
    During these discussions, many of the states, in particular, 
emphasized the importance of having more information and clarity on how 
the proposed rate-based goals could potentially be translated to a 
mass-based equivalent metric. Some states requested additional 
information about how they might calculate a mass-based equivalent 
metric, while other states requested that the EPA calculate and provide 
presumptive mass-based equivalent metrics.
    The purpose of this notice is to share additional information 
regarding potential methods for determining the mass that is equivalent 
to the emission rate-based CO2 goal that the EPA has 
proposed. With this notice, the EPA is also making available a TSD that 
provides detailed information to further inform and assist implementing 
authorities and stakeholders in understanding the proposal. This notice 
is consistent with the methodologies used to define BSER in the June 
18, 2014, proposal and October 28, 2014 supplemental proposal and does 
not reflect any type of response to the comments that we have received 
to date. Readers should also note that the TSD, and the illustrative 
numbers presented therein, are based on the emission rate-based goals 
as proposed; any calculations of mass equivalents would naturally yield 
different results if the emission rate-based goals themselves were to 
change in the course of developing the final rule.

II. Additional Information on the Translation of Emission Rate-Based 
CO2 Goals to Mass-Based Equivalents

    In the proposed rule published on June 18, 2014, the EPA proposed a 
set of state-specific emission rate-based CO2 goals (in 
pounds of CO2 per megawatt-hour of electricity generated). 
In addition, the EPA issued emission rate-based CO2 goals 
for areas of Indian country and U.S. territories with affected EGUs in 
a supplemental proposal on October 28, 2014. The proposals authorized 
each implementing authority to translate the form of the emission rate-
based goal to a mass-based form (i.e., goals expressed in terms of 
total tons of CO2 per year from affected sources), as long 
as the translated goal achieves the equivalent in stringency. Today's 
notice provides additional detail, and describes two potential 
methodologies for this translation. Today's notice is accompanied by a 
TSD titled ``Translation of the Clean Power Plan Emission Rate-Based 
CO2 Goals to Mass-Based Equivalents,'' which has been placed 
in the docket for the rule (Docket ID No. EPA-HQ-OAR-2013-0602). For 
purposes of illustrating two methodologies for potential use in making 
rate-to-mass translations,

[[Page 67408]]

today's notice and accompanying TSD identify two sets of mass-based 
values for each state, area of Indian country and U.S. territory with 
affected EGUs that could be considered equivalent to the proposed rate-
based goals, as discussed below: One that is based on historical 
emissions from existing sources, and a second that is based on 
historical emissions from existing sources and projected emissions that 
would result from demand growth that is reflected in generation at both 
existing and new sources in the event that an implementing authority 
may want to include new sources of generation in its compliance 
approach. Illustrative values for each state, area of Indian country 
and U.S. territory with affected EGUs (along with the underlying data) 
for each method are also presented in the TSD.
    In the proposed rule, the EPA intended to afford a considerable 
amount of flexibility in choosing the types of programs and measures 
needed to meet the goals established by the rulemaking. An important 
proposed element of this flexibility is allowing each implementing 
authority to demonstrate compliance with its interim and final rate-
based goals established in the proposal, or to establish equivalent 
mass-based metrics for purposes of demonstrating compliance with the 
provisions of the rule. The agency recognizes that implementing 
authorities can use a mix of measures and programs to meet their goals 
regardless of which form of the standard they choose to use to 
demonstrate compliance in the state plan, including both programs that 
use mass-based metrics, as well as measures that use rate-based 
measures. State plans submitted to the EPA will be required either to 
(i) demonstrate that their programs and measures meet the rate-based 
goals established by the rulemaking, or (ii) if they choose to 
translate the rate-based goals into mass-based equivalents, demonstrate 
achievement of the goals using the mass-based metrics.\2\
---------------------------------------------------------------------------

    \2\ Note that the metric for compliance is independent from the 
approaches that implementing authorities may adopt to achieve them. 
For example, a state could potentially adopt a mass-based program 
that achieves a rate-based goal, or adopt rate-based standards and/
or other measures and demonstrate that they have met the goal using 
a mass-based metric.
---------------------------------------------------------------------------

    In section VII of the preamble to the June 18, 2014 proposed rule, 
the EPA provides basic considerations necessary to translate the 
emission rate-based CO2 goals into mass-based equivalents, 
for state plan purposes (79 FR 34897). The EPA also included in the 
docket for the rule a TSD titled ``Projecting EGU CO2 
Emission Performance in State Plans,'' that discusses the 
considerations, data and technical approaches that can be considered 
when converting the emission rate-based CO2 goals into a 
mass-based equivalent metric, and focuses on one potential approach 
that implementing authorities could employ. The basic methodology 
presented in these documents is for the implementing authority to 
project for a given period the amount of generation by affected 
entities; to determine the amount of tons of CO2 that would 
be emitted by affected EGUS; and to assure that the ratio of affected 
EGU emissions to affected entity generation is equivalent to the 
emissions performance of the rate-based goal.
    The data, assumptions and methodological choices used for the 
estimation of generation by affected entities are of central importance 
for translation to a mass-based metric.\3\ For instance, uncertainties 
about future demand, the future inventory of EGUs and the relative 
amounts of generation among EGUs in light of, for example, fuel costs 
can influence the translation to a mass-based equivalent.
---------------------------------------------------------------------------

    \3\ Some stakeholders have observed that addressing potential 
translation to a mass equivalent could incorporate generation from 
``affected entities'' that include generators beyond ``affected 
EGUs.'' The proposal invited comment on how generation across 
``affected entities'' (including at ``affected EGUs'') should be 
considered when calculating mass equivalents.
---------------------------------------------------------------------------

    In response to requests by states, we are issuing this notice and 
the TSD, ``Translation of the Clean Power Plan Emission Rate-Based 
CO2 Goals to Mass-Based Equivalents,'' to present 
information about potential methods for translating the rate-based 
goals to mass-based equivalents. The TSD presents two additional 
possible methods for calculating mass-based equivalent metrics, the 
underlying data and shows the mass-based equivalent metric. The first 
method, based on historical data, produces mass-based equivalent 
metrics that apply to existing affected EGUs only. The second method, 
based on a combination of historical data and a projection of future 
electric demand, produces mass-based equivalent metrics that are 
inclusive of new fossil fuel-fired sources, in light of the fact that 
the rule takes comment on the inclusion of new, fossil fuel-fired 
sources as a component of state plans. As the starting point for these 
calculations, we use the proposed emission rate-based CO2 
goals set forth in the rulemaking. Also, to maintain consistency with 
the proposed rule, the calculations contain the same generation data 
used in setting the rate-based goals (i.e., 2012 eGRID data for 
historical generation, and Annual Energy Outlook 2013 for regional 
growth estimates) to project future levels of generation.\4\
---------------------------------------------------------------------------

    \4\ The Agency has received comments from some states about the 
accuracy of the 2012 data, as well as whether we should use more 
than a single year of data to determine the rate-based goals. We are 
reviewing all comments, information, and requests for data 
corrections received to date and will continue reviewing stakeholder 
input submitted to the docket by the close of the public comment 
period. Any changes to the emission rate-based goals and underlying 
data will be reflected in the final rule.
---------------------------------------------------------------------------

    The EPA is providing this additional information to states, U.S. 
territories, tribes, and other stakeholders to provide a better 
understanding of the proposed rule. It should be reiterated that the 
mass-based equivalent metrics presented in the TSD are not required 
mass-based emission limits that implementing authorities must meet; 
rather, they are illustrations of two potential options that 
implementing authorities may choose to adopt if they choose to use a 
mass-based form of the emission rate-based goal. The EPA presents them 
to provide stakeholders a better understanding of the methodology and 
mass outcomes associated with two possible ways of calculating mass-
based equivalent metrics.

    Dated: November 6, 2014.
Janet G. McCabe,
Acting Assistant Administrator, Office of Air and Radiation.
[FR Doc. 2014-26900 Filed 11-12-14; 8:45 am]
BILLING CODE 6560-50-P