Infographic EPA’s Clean Power Plan: Breaking Down the Building Blocks In June, the US Environmental Protection Agency (EPA) announced a proposed rule for reducing carbon dioxide emissions from existing power plants. Using its authority under the Clean Air Act, EPA set state-specific targets for emissions rates reductions (Figure 1). However, many questioned how this proposed plan would impact actual emissions from the electricity sector and how these reductions could be achieved. Figure 1. EPA Clean Power Plan Emissions Rate Reduction Targets Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Virginia Washington West Virginia Wisconsin Wyoming Interim goal (2020–2029) 2012 historical average emissions rate Pounds per megawatt hour 750 1,500 Source: US Environmental Protection Agency, Office of Air and Radiation. 2014. Goal Computation Technical Support Document, Appendices 3 and 5. Washington, DC. 6 2,250 Figure 2. Possible Futures for CO2 Emissions from the US Electricity Sector How EPA’s building blocks stack up 1. More efficient coal boilers Projected baseline emissions 1,900 2. More use of existing natural gas combined cycle units 3. More clean energy (nuclear and renewables) 1,700 CO2 emissions (millions of metric tons) 2,100 2,300 Emissions reductions from EPA’s building blocks 4. More efficient use of electricity 1,500 EPA Clean Power Plan target 20202022 2024 2026 2028 2030 Source: Based on the Energy Information Agency’s Annual Energy Outlook 2014 Reference Case projection of electricity production. See more at http://common-resources.org/2014/epas-building-blocks/. 7 Infographic emissions outcome, but states and utilities would have to find ways to reduce emissions more if power generation increases. EPA also selected four “building blocks” as the “best system of emissions reduction” for states to meet their targets (Figure 2). But which building blocks will survive legal challenge? Figure 2 shows possible futures for emissions reductions if any of the building blocks fall. If just building block #1 survives, only the emissions reductions represented in light blue in Figure 2 will be made, and EPA will lose the opportunity to make meaningful reductions in emissions across the sector. In new analysis, RFF’s Anthony Paul and Sophie Pan estimated actual carbon dioxide emissions reductions by converting the proposed targets from emissions rates to tons of emissions (Figure 2). EPA gives states the option to convert their rate targets into mass (tons) targets, and their choices will be consequential. If a state adopts a rate target, the amount of carbon emitted will depend on how much electricity is produced. Power generation would increase with brisk economic growth or an influx of electric vehicles, and corresponding emissions would increase even while still complying with the rate target. A massbased target would ensure a consistent