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1 [1] (February 12, 2016)

handle is hein.crs/govccxu0001 and id is 1 raw text is: FF. ' riE S-' $. h ,,,. , Updated February 12, 2016 The Clean Power Plan (CPP): The Treatment of Biomass Te t$an, Power Man On August 3, 2015, the Obama Administration issued its final rule for carbon dioxide (C02) emission reductions from existing fossil fuel-fired electric power plants, commonly referred to as the Clean Power Plan (CPP). The U.S. Environmental Protection Agency (EPA) administers the CPP under an authority granted to the agency in Section 11 (d) of the Clean Air Act (CAA; 42 U.S.C. 7411). In general, the CPP requires states to devise a plan that-by reducing CO2 emissions from the affected facilities in accordance with guidance established by EPA-allows them to reach a state-specific emission reduction goal by 2030. States are required to submit their plans by September 6, 2016, although they may request a two-year extension. A federal plan will be used to implement the CPP for states that do not submit a plan. Further, states are required to implement their plans in 2022. EPA says the CPP offers states broad flexibility and latitude in complying with their obligations by providing multiple strategies that states may undertake to meet their goal, including increased use of non-fossil fuel energy sources, such as renewable energy. On February 9, 2016, the Supreme Court granted a stay of EPA's CPP, pending the Court's consideration of whether to hear the case. EPA specifies that qualified biomass may be included in a state's plan. EPA defines qualified biomass as a biomass feedstock that has been demonstrated to be a method to control increases of CO2 levels in the atmosphere. EPA defines biomass as biologically based material that is living or dead above and/or below ground and is available on a renewable or recurring basis. EPA states that it will review the appropriateness and basis for determining qualified biomass feedstocks or feedstock categories in its review of the approvability of a state plan. While EPA explicitly states that not all forms of biomass are expected to be approvable as qualified biomass, it gives some indication as to what exactly may qualify (e.g., waste-derived feedstock, certain forest and agriculture-derived industrial byproducts). One reason EPA may be unable to give additional information about the specific biomass types that may qualify could be the agency's ongoing efforts to determine the carbon status of biomass (e.g., carbon neutrality). One such effort referred to in the final rule is the EPA Science Advisory Board (SAB) draft 2014 report Framework for Assessing Biogenic Carbon Dioxide for Stationary Sources (Framework). The Framework maintains that it is not scientifically valid to assume that all biogenic feedstocks are carbon neutral, but that the net biogenic CO2 atmospheric contribution of different biomass feedstocks can vary and depends on various factors, including feedstock type and characteristics, production practices, and, in some cases, the alternative fate of the feedstock. It is not known when a final Framework may be released. Another effort is the proposed federal plan for the CPP- the federal plan to be implemented if a state does not submit an approvable plan by the assigned deadline. It was released concurrently with the CPP final rule. The proposed federal plan requests comments on the inclusion of biomass and its treatment within the federal plan (e.g., a list of preapproved qualified biomass fuels). Comments received may impact which biomass types the EPA deems eligible for the CPP or why the use of biomass should be restricted. The CPP final rule requires additional accounting and reporting requirements should a state decide to use qualified biomass. For instance, states will have to submit the biomass type they propose to use and explain why this biomass should be considered qualified biomass, along with biomass monitoring, reporting, and verification measures. For some biomass types, the plan must include measures the state will take to verify the biomass type, its origin, and any associated sustainability practices. EPA asserts that the approval of biomass for a state plan is contingent upon whether the measures for qualified biomass and related biogenic CO2 benefits are quantifiable, verifiable, enforceable, non-duplicative and permanent. In the final rule, EPA announced a Clean Energy Incentive Program (CEIP)-an optional program in which states may participate. EPA says it is establishing the CEIP to encourage early investments in renewable energy (RE) and demand-side energy efficiency (EE) by the states. Biomass is excluded from the CEIP. While details about the program are forthcoming, EPA specifies that the only RE options available to states are power from wind and solar resources (see Figure 1 and Figure 2). Demand-side EE-generally described as a technique to affect consumer behavior that results in a reduction in electricity use-does not apply to energy supply activities such as producing power. It is not clear how pronounced a role biopower-the generation of electric power from biomass feedstocks-will play in state plans to meet state-specific emission reduction goals. First, EPA has placed the onus on states to demonstrate the eligibility of biomass for the CPP, with EPA making the final decision. Thus far, EPA has provided little direct guidance on biomass in the final rule. This could be due to multiple reasons, including a wait-and-see approach to find out what states propose, to review comments received about biomass for the proposed federal plan, or to obtain additional information from the SAB. The many requirements states must adhere to in order to include biomass in their plans, without clear direction on what will and will not be approved, may deter some states from .O 'T p\w -- , gnom goo mppm qq\ M , q 'M I 11LULANUALiM,

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