TIM KAINE \wastancTon orice aaa Wnited States Senate Sa rons WASHINGTON, DC 20510-4607 December 1, 2014 U.S. Environmental Protection Agency EPA Docket Center (EPA/DC) Mail Code 28221 1200 Pennsylvania Avenue NW Washington, D.C. 20460 Attn: Docket ID No. EPA-HQ-OAR-2013-0602 appreciate the opportunity to submit comments on the proposed carbon pollution standard for electric generating units. My home state of Virginia is in the unique position of being both a coal production state and a iow-lying coastal state vulnerable to the effects of sea level rise and recurrent flooding caused in part by carbon pollution. I believe itis crucial to design a pollution standard that achieves significant reductions in CO2 emissions, while maintaining current levels of electricity affordability and reliability, and providing appropriate incentives to install clean energy and to produce fossil energy cleaner tomorrow than today. The issue of state-by-state equity is important to Virginia, a state whose balanced electricity portfolio, downward emissions trajectory, and reasonable electricity costs are a rough proxy for what is envisioned at the national level under this proposal. Using EPA's 2012 baseline, Virginia has reduced its power plant CO2 emissions 38 percent from a 2005 peak, transitioning steadily from coal to gas and relying on nuclear for 40 percent of its generation — twice the national average. Yet its emissions reduction target is proportionally stringent compared to those of states that have done less. While I acknowledge that a one-size-fits-all emissions target is impractical among states with vastly different power sectors, [ also believe it is good policy to reward states that have taken steps to reduce the carbon intensity of their power sectors, One key way to address this equity issue and properly reward states with balanced eleciricity portfolios is to include all zero-emitting capacity in the 2012 compliance baseline. Nuclear accounts for 40 percent of Virginia’s electricity portfolio, yet only 6 percent is factored into the state's target in the draft standard, Not including one third of Virginia's current overall generation significantly skews the picture of its electric sector. Furthermore, new nuclear capacity can come only after lengthy, complex regulatory and economic processes. For instance, according to Dominion Virginia Power, the construction of a 1,470 MW third reactor unit at the current 1,900 MW North Anna Power Station would not be complete until 2028 under ideal regulatory and economic conditions. These issues could lead to perverse incentives to install new CO2-emitting gas capacity to displace potentially at-risk zero- emitting nuclear capacityTunderstand that many utilities have submitted technical comments proposing way’ of building additional nuclear capacity into the baseline computation, as well as ideas for credit provided for regulatory decisions, such as Nuclear Regulatory Commission re-licensing, that will lead inexorably to more zero-emitting generation. I ask that you consider these proposals. On the broader equity issue, I encourage the agency to consider evaluating its broad approach to equity among state targets, whether by setting a baseline that is an average of several years rather ‘than one specific year, or by other means, On the important issues of affordability and reliability, I have seen a wide spectrum of projections of this rule’s impacts. While I make no pronouncements on the merits of various modeling systems, several factors suggest to me a potential for unforeseen developments. First, whichever projections one chooses to trumpet publicly, itis challenging to accurately project energy market trends 15 years out under any circumstances, Second, the conclusions drawn from various studies were reached via models whose inputs were designed with previous experience in mind. ‘There is limited experience with invoking Section L11(@) of the Clean Ait Act and even less with managing CO2, a unique pollutant in how it affects air ‘quality and in its ubiquity in both the atmosphere and the economy. Third, the success of this standard is contingent upon the smooth, interlocking decision-making among multiple agency actors — BPA in overseeing state plans, regional transmission operators in dispatching power plant generation, state public utility commissions in approving efficiency measures, and a host of agencies in siting and approving different zero-emitting electric generation projects in different areas, ‘Whatever impacts one projects this standard to have in 2030, I believe we must be realistic about our ability to read energy market tea leaves in coming decades. Therefore, I ptopose that EPA include a framework for providing appropriate flexibility to head off potential unforeseen impacts to electricity affordability and reliability. Such a framework may inelude an evaluation of the agency's current Jogal authority and discussion of the circumstances under which the agency would consider flexibility and the measures it would take to address a deleterious unforeseen circumstance. Such flexibility should be appropriately limited in order to minimize the potential for exploiting this “safety valve” rather than meeting the responsibility to reduce CO2 pollution. Finally, 1 would like to note the major presence of federal government infrastructure in Virginia, such as the Pentagon and Naval Station Norfolk. Reducing the electricity demand of federal installations could account for significant energy efficiency credit for states, While such potential is beyond EPA’s direct authority under the Clean Air Act, I request EPA analyze the energy savings potential of such facilities to provide a guidepost of the level of energy savings possible for states should there be favorable policy action and resolution of ongoing budget scoring issues. The 2014 Virginia Energy Plan calls for aggressive implementation of energy efficiency to reduce electricity consumption in state facitities 15% by 2017. I believe the federat government should likewise lead by example in this area,‘Thank you again for considering these comments and for your efforts to ensure that America generates electricity cleaner tomorrow than today. Sincerely, — ) ) ae JZ, Tim Kaine U.S. Senator