Special Guest John Lyons, Kentucky Energy and Environment Cabinet (EEC) Assistant Secretary for Climate Policy, gave a presentation on August 13, 2014 to GLI members to discuss the potential impacts on Kentucky under the Greenhouse Gas (GHG) emissions standards within the proposed “Clean Power Plan” rule issued under the authority of Section 111(d) within the Clean Air Act on June 2, 2014.  Assistant Secretary Lyons was forthright in his assessment of the proposed rule’s ambitious goals stating “the scope of the proposed rule is unprecedented in size and its impact to US energy policy.” The progress needed for Kentucky to achieve the CO2 emission reduction requirements listed in the Clean Power Plan by 2030 is further complicated due to Kentucky’s ban on nuclear power generation (KRS § 278.605) and the limited economic viability of renewable energy electrical generation projects within the state. Kentucky’s electric generation portfolio is currently comprised of coal fired units for over 90% of the state-wide electrical generation capacity with approximately 50% of electrical generation being consumed by industrial/manufacturing business activities. In the current proposed rule, Kentucky’s GHG emission target for 2030 is to reduce the current GHG emission rate of 2,166 lb CO2 per MWh to 1,763 lb CO2 per MWh. In order to meet the 2030 and interim GHG emission targets many stationary sources will have to evaluate additional control measures and compliance strategies at existing facilities to comply with the Mercury and Air Toxics Standards (MATS) and the forthcoming CO2 reduction goals in the Clean Power Plan.

Important topics from the presentation included the following:

  1. Kentucky’s GHG reduction goal is the 2nd most lenient in the United States; Kentucky has the lowest GHG reduction goal for a top 10 energy producing state. (#9 in annual capacity) Thus, the EEC has limited options to formally comment that the Clean Power Plan is over burdensome and onerous for Kentucky.
  2. Mr. Lyons believes that Kentucky House Bill 388 limits the EEC’s ability to generate a State Action Plan meeting all requirements of Clean Power Plan. Thus, Federal agencies will decide the fate of Kentucky coal fired EGUs rather than regulators, citizens, and businesses of the commonwealth.
  3. Kentucky’s EEC has a short period of time to prepare a State Action Plan outlining the regulatory format it will adopt to meet the emission reduction goals of the proposed rule. Final State Action plans are due in June of 2016.
  4. Stakeholder comments will be crucial to ensure stationary source economic constraints will be considered in the Kentucky State Action Plan and in the Clean Power Plan proposed Rule.

EPA Comment Website: (Deadline to Comment is October 16, 2014)

http://www2.epa.gov/carbon-pollution-standards/how-comment-clean-power-plan-proposed-rule