Summary of the Environmental Protection Agency’s Clean Power Plan, Emissions Trading and Clean Energy Incentive Program
The Environmental Protection Agency’s (EPA) Clean Power Plan (CPP) sets state-specific CO2 emission reduction standards on existing fossil-fuel generating units (EGUs) to be achieved by 2030. The final CPP sets uniform national standards for EGUs based on averaging the emissions rates within the three interconnections (Eastern, Western and Texas) and sets performance standards for EGUs based on the “best system of emission reduction,” or BSER, Building Blocks 1-3. Building Blocks 1 and 2 account for efficiency improvements and increased dispatch (peaking) of existing power plants. Building Block 3 accounts for new renewable generation and estimates total penetration of domestic renewable capacity at 28% by 2030.