{ "id": "R43942", "type": "CRS Report", "typeId": "REPORTS", "number": "R43942", "active": false, "source": "EveryCRSReport.com", "versions": [ { "source": "EveryCRSReport.com", "id": 440848, "date": "2015-03-17", "retrieved": "2016-04-06T22:47:33.904043", "title": "EPA\u2019s Proposed Clean Power Plan: Conversion to Mass-Based Emission Targets", "summary": "The Environmental Protection Agency (EPA) proposed a rule in June 2014 that would require states to address carbon dioxide (CO2) emissions from existing fossil fuel-fired electric generating units. The proposal would create CO2 emission rate goals\u2014measured in pounds of CO2 emissions per megawatt-hour (MWh) of electricity generation\u2014for each state to achieve by 2030 and an interim goal in 2029, based on the average of a state\u2019s emission rates between 2020 and 2029.\nEPA\u2019s proposal would allow a state to establish its emission reduction requirements by converting the interim (2029) and final (2030) emission rate targets to mass-based targets\u2014measured in metric tons of CO2. A state might consider using a mass-based target for a variety of reasons, including the opportunity to link with existing mass-based programs or to continue existing, state emission reduction goals. In addition, this report indicates that the mass-based reduction requirements may be less stringent in some states than the emission rate requirements. \nIn November 2014, EPA provided technical information to help states with this conversion process. Converting to a mass-based target requires an estimate of electricity generation in future years (i.e., 2020-2029). EPA\u2019s November 2014 support document provides two possible approaches for creating such estimates. With each approach, EPA prepared state-specific mass-based targets, which, according to EPA, \u201ccould be considered equivalent to the proposed rate-based goals.\u201d \nThe first approach uses (1) 2012 baseline data\u2014emissions and electricity generation\u2014for each state\u2019s fossil fuel fleet and (2) specific results from parts of the emission rate methodology to calculate future electricity generation. The second approach is based on both historical emissions from existing sources and projected emissions from new, fossil fuel-fired electricity generation sources. To project emissions from new sources, EPA applied specific regional growth factors prepared by the Energy Information Administration.\nThis report compares the required percentage reductions (between the 2012 baseline and 2030 targets) using the emission rate targets to the percentage reductions using the mass-based targets (approach 1). As with the emission rate reduction requirements, the mass-based reduction targets vary by state. For the majority of states, the percentage reductions required by the emission rates match those required by the mass-based approach. However, the required reductions differ in some cases. \nThis report examines the reasons for these differences. For example, in nine states the differences relate to EPA\u2019s treatment of natural gas combined cycle (NGCC) units that are under construction. In EPA\u2019s mass-based conversion methodology, the agency includes under-construction NGCC units in the 2012 fossil fuel-fired generation baseline. However, in the emission rate methodology the generation from these units is not included in the 2012 baseline. This leads to different percentage reduction requirements. In four other states, the differences are related to EPA\u2019s treatment of renewable energy in its emission rate methodology.\nIn addition, this report compares the percentage reduction requirements resulting from mass-based approaches 1 and 2. As one might expect, all of the states have lower percentage reduction requirements in approach 2 than in approach 1, because approach 2 includes projected increases in electricity generation. However, the range of requirements varies considerably. Several factors may explain this outcome. For instance, the regional growth factors used to project electricity demand in future years vary significantly\u2014from 0.29% in the Northeast region to 1.31% in the Southwest region. In addition, EPA uses electricity sales data in 2012 to calculate future electricity demand, and the sales data contain electricity generation from all sources, including hydroelectric power. Including hydroelectric power appears to have a substantial impact in states that use it to generate a significant percentage of their electricity.", "type": "CRS Report", "typeId": "REPORTS", "active": false, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R43942", "sha1": "e5f38e748be8981a4b29988deee842a37bed7394", "filename": "files/20150317_R43942_e5f38e748be8981a4b29988deee842a37bed7394.html", "images": null }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R43942", "sha1": "6aabb904436746991e31ba808256570cb3aa2008", "filename": "files/20150317_R43942_6aabb904436746991e31ba808256570cb3aa2008.pdf", "images": null } ], "topics": [] } ], "topics": [] }