Clean Power Plan Clean Air Act Section 111d

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Clean Power Plan Clean Air Act Section 111(d) 1

Clean Power Plan Clean Air Act Section 111(d) 1

Clean Power Plan Purpose • Boost the economy • Spark investment in clean power

Clean Power Plan Purpose • Boost the economy • Spark investment in clean power • Maintain an affordable, reliable energy system. • Lead to health & climate benefits worth an approx. $55 -$93 billion in 2030. • Protect public health and environment • Cut harmful particle pollution, sulfur dioxide and nitrogen oxides as a co-benefit. • Provide important health protections to the most vulnerable. • Every $1 invested through the Clean Power Plan – will yield up to $7 in health benefits. • Fight climate change • By 2030, reduce nationwide carbon dioxide (CO 2) emissions, from the power sector by approximately 30% from 2005 levels. 2

US EPA Proposing Rules to Implement Clean Power Plan 1. Called for in President’s

US EPA Proposing Rules to Implement Clean Power Plan 1. Called for in President’s Climate Action Plan 2. EPA had and continues strong outreach • US EPA expecting millions of comments! 3. Accepting public comment on plan through 10/16/14 Question for Environment Committee. Should we comment on the plan? 4. Final plan due 6/1/15 5. Illinois submits plan to USEPA 6/1/16 • Extensions allowed for legislative and regional approaches 3

Draft Clean Power Plan Rules Only: 1. Sets individual state CO 2 emission reduction

Draft Clean Power Plan Rules Only: 1. Sets individual state CO 2 emission reduction goals • Expected to be 33% reduction in CO 2 emission rate by 2030 Rate = lbs CO 2/MWh from existing, affected fossil-fueled fired sources 2. Provides framework for the development of state plans • Framework provides flexibility for state plans 4

1 Improvements at Coal-Fired Power plants 4 Building Blocks 2 Re-dispatch to High Efficiency

1 Improvements at Coal-Fired Power plants 4 Building Blocks 2 Re-dispatch to High Efficiency Natural Gas Combined Cycle Inside the Fence. Line 6% 3 New Renewable Energy & Nuclear 4 Energy Efficiency (EE) Outside the Fence. Line 27% Demand-side EE 5 5

Step 4 Building Block 3 Building Block Goal (lbs CO 2/MWh) % Reduced Cumulative

Step 4 Building Block 3 Building Block Goal (lbs CO 2/MWh) % Reduced Cumulative % BB #3 New Renewable Energy (RE) & Nuclear Baseline 1, 895 1 1, 784 6% 6% 2 1, 614 9% 15% 3 1, 476 7% 22% 4 Total Build new RE and Nuclear - 115% increase in RE by 2030 - 4% of IL generation in 2012 to 9% in 2030 7% 6

Step 5 Building Block 4 Building Block Goal (lbs CO 2/MWh) % Reduced Cumulative

Step 5 Building Block 4 Building Block Goal (lbs CO 2/MWh) % Reduced Cumulative % BB #4 Energy Efficiency (EE) Baseline 1, 895 1 1, 784 6% 6% 2 1, 614 9% 15% 3 1, 476 7% 22% 4 1271 11% 33% Total Demand-side EE 33% Increase demand-side EE results in avoided generation from affected coal and other fossil-fuel EGUs • 11. 6% increase in EE (avoided generation) + 0. 9% line loss 11% 7

Goal Building Block Goal (lbs CO 2/MWh) % Reduced Cumulative % 0 Unadjusted Baseline

Goal Building Block Goal (lbs CO 2/MWh) % Reduced Cumulative % 0 Unadjusted Baseline 2, 189 Baseline 1, 895 13% 1 1, 784 6% 6% 5. 5% (18. 5%) 2 1, 614 9% 15% 5. 5% (24%) 3 1, 476 7% 22% 8% (32%) 4 1, 271 11% 33% 10% (42%) Total 1, 271 33% 42% 1 2 3 4 8

Illinois – Background (cont. ) 2012 Net Electricity Generation Source Percent of Total Nuclear

Illinois – Background (cont. ) 2012 Net Electricity Generation Source Percent of Total Nuclear 49% Coal-Fired 41% Natural Gas. Fired Renewable Energy 6% 4% 9

Illinois Power – Background • 17 coal-fired power plants • 17, 000 MW •

Illinois Power – Background • 17 coal-fired power plants • 17, 000 MW • Variety: • 4 to > 60 years old • 74 MW to > 800 MW • Variety of coal types • most are well-controlled. • 30 Natural-gas fired plants • 3 of which are Natural Gas Combined Cycle (NGCC), ~ 2, 230 MW • 6 Nuclear Plants, ~ 12, 000 MW 10

111(d) – State Plan Development Power Plants/Affected Sources Facilitator, Collaborative Groups Governor’s Office DCEO

111(d) – State Plan Development Power Plants/Affected Sources Facilitator, Collaborative Groups Governor’s Office DCEO -EEPS -Demand-Side EE -RE Environmental Groups/NGO’s IEPA -Inside the fence-line requirements -Plan Assembler & Submitter State Plan Legislative Liasion -EEPS -RPS -Clean Energy IPA RPS ICC -Re-dispatch to NGCC -RPS -RE -Enforcement RTOs & ISOs: -PJM -MISO Clean Energy Providers: RE + EE Utilities/Distributors: -Com. Ed/Exelon -Ameren EE 11