[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]
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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.
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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.
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\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.
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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\
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\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.
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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.
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\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.
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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\
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\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.
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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