New EPA rule 111(d): Alaska rich in opportunity for compliance.

• Author: Rose, Chris
• Position: ENERGY - Environmental Protection Agency

In early June, the Environmental Protection Agency (EPA) released a new draft rule under the Clean Air Act intended to, for the first time, regulate the emissions of carbon dioxide from electric power plants in the United States. The rule applies to plants that are twenty-five megawatts or larger that send at least 30 percent of their power into the grid. Known now by many as simply "111(d)," the proposed rule is intended to bring down national C[O.sup.2] emissions by 30 percent by 2030, compared to 2005 levels.

Though 111(d) is based on the reduction of carbon emissions at power plants per megawatt hour produced, the EPA is providing broad flexibility to the states to develop plans to comply with the rule. To guide the states, the EPA has established four blocks of "best systems of emission reduction," or BSERs. Those four BSER blocks are: 1) improving the heat rate at existing fossil fuel plants; 2) shifting generation from coal to combined cycle natural gas plants; 3) increasing the use of zero emission renewable energy and nuclear power; and 4) increasing energy efficiency.

While states that are heavily dependent on coal fired electric generation will undoubtedly have to consider closing some of those plants, Alaska could comply with the proposed rule with a combination of more energy efficiency, renewable energy, and more efficient electric transmission systems.

Room to Do More

Alaska's clean energy programs are already saving consumers money while reducing emissions, and there is room to do much more. Since 2008, the residential energy efficiency programs administered by the Alaska Housing Finance Corporation have retrofitted nearly fifteen thousand homes, saving Alaskans the equivalent of an estimated 22.5 million gallons of fuel oil every year. So far, only about 15 percent of the state's homes have been weatherized, leaving a huge opportunity for Alaska to pick more low-hanging fruit. Meanwhile, the state's Renewable Energy Fund is estimated to be saving the equivalent of roughly 13 million gallons of diesel equivalent every year as communities dependent on diesel and natural gas construct wind, hydro, biomass, and other renewable projects. As more projects get built each year, this annual savings is growing steadily.

Another opportunity for Alaska to comply with 111(d) is by making electric transmission systems more robust and efficient. Today, the Alaska Energy Authority and a number of Railbelt utilities are considering the...