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TENTHINGSBUMPERSTICKERSTELLUSABOUTTHE

CLEANPOWERRULE

Eric Groten

Texas P!"ic Po"ic# $on%ation

&'t(Anna" Po"ic# Orientation )or t(e TexasLe*is"atre

+anar# ,- ./&0

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1. NRDC Wrote the Rule.

PLAGIARISMISCOP1ING$ROM

ONESOURCE2RESEA

RCHIS

COP1ING$ROMTWOO

RMORE

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2.Its energy policy, notenvironmental policy.

EnergyPolicy

Agency

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Q: Who said?

The great thing about this [Clean PowerRule] proposal is that it really is aninvestment opportunity. This is not about

pollution control. Its about increasedeciency at our plants! no matter whereyou want to invest. Its about investmentsin renewables and clean energy. Its about

investments in peoples ability to lowertheir electricity bills by getting good! clean!ecient appliances! homes! rental units."

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A: The person who signed the CleanPower Rule:

#P$ $dministrator %ina &cCarthy'(uly )*! )+,-! testimony beorethe /enate #nvironment andPublic 0or1s Committee.2

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3. Its centrally planned energy

policy, to boot!

Practicesafegovernment.Usekingdoms.

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EPA dictates its optimal mix for each State

from four Building Blocks:

1. Improve theaverage heatrate of coal-fired plants by

6%

2. Displace coalplants byincreasing

generation fromexisting NGCC to

70% utilization

3. Delayed nuclear

plant retirementsand increaserenewable portfolio

standards

4. Increasing statedemand-side energy

efficiency efforts toreach 1.5% annualelectricity savings inthe 20202029period

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Texas: From 1292 lb CO2/MWh in 2012 to 791 lb CO2/MWh in 2030

Block Decrease in Intensity

(lb/MWh)

Contribution to

Reduction in Overall

State-wide Intensity

1. Heat rate

improvements

49 4%

2. Gas-favored

dispatch

258 20% (by increasing

CCGT utilization to

70% from 45%

3. Increase renewables 124 10% (assuming 20%RPS)

4. Demand side

management

70 5% (by annual 1.5%

increments over 10

years

TOTAL 501 39%

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EPA Re-slices TexasElectricity Pie

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The blocks come tumblingdown

1.Asifcoal

plantoperators

arent

motivatedand

smarteno

ugh

torun

efficiently

2.Tenpercentof

NGCCplantsrunat70%

capacityinthe

eraof$3/MCFgas

3. Assumptionsbased on

regionalaverages of RPS,not individualstate capabilitiesor politicaljudgments

4.EPA

forecas

tsgross

electricity

demandto

DECREA

SE

from2020

to

2030!

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Generation Made Simple

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4. Texas Gets Hit Hardest

(ustbecauseyoureparanoid

doesntmeantheyrenotateryou.

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5. Its illegal on many levels, and will

not be sustained.

QuestionAuthority

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Choose your favorite fatal

flawSection 112 displacement

States as stationary sources

ESPS stricter than NSPS, covering differentsources

Dont use it is the BSER

Lack of EPA authority to do what it asks ofthe states

Etc., etc., etc.

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Section 111(d) is thin ice on which to skate a

national energy policy

Title IV 111(d)

0

5000

10000

15000

20000

25000 23725

301

Clean Air Act Word CountTitle IV Acid Rain Programshows how Congress directsnational regulation of powerplant emissions to achieve

regional objectives: Source-specific down to eachpower plant

SO2 only, for a statedCongressional purpose

Comprehensive in detail Budgets based onachievability of limits usingavailable controls

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Supreme Court Skepticism

When an agency claims to

discover in a long-extant

statute an unheralded power

to regulate a significant

portion of the Americaneconomy, we typically

greet its announcement with

a measure of skepticism. We

expect Congress to speak

clearly if it wishes to assignto an agency decisions of vast

economic and political

significance.

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6. Prohibiting usage is deemed the

best system of emission reduction.

&y 3ther Car is a4icycle

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7. EPA Demands What it Cannot

Deliver.

NOTHINGISIMPOSSIBLE

TOTHEPERSONWHO

3OESN4THA5ETO3OIT6

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8. EPA cant sanction statesfor refusing to play.

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9. EPA Doesnt Explain How Our Climate

Will Differ.

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10. Best State policy?,. 5R6C wrote it

). Its #P$ acting as the #nergy Policy $gency

*. Its bad energy policy

-. That hits Te7as especially hard8. Its illegal and eventually will be overturned

9. Its precedent or #P$ controlling production

:. /tates as1ed to do that which #P$ cannot

;. I states reuse! #P$ cant sanctionect on climate

,+. /o whats the best policy response?@

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If youre not appalled,you havent been paying

attention.