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| To enact section 3704.20 of the Revised Code to | 1 |
| require the Director of Environmental Protection | 2 |
| to adopt rules establishing standards of | 3 |
| performance for carbon dioxide emissions from | 4 |
| existing coal-fired and natural gas-fired electric | 5 |
| generating units and to specify factors on which | 6 |
| the standards must be based. | 7 |
| Section 1. That section 3704.20 of the Revised Code be | 8 |
| enacted to read as follows: | 9 |
| Sec. 3704.20. (A) If the United States environmental | 10 |
| protection agency adopts regulations or issues guidelines for | 11 |
| reducing carbon dioxide emissions from existing coal-fired or | 12 |
| natural gas-fired electric generating units under section 111(d) | 13 |
| of the federal Clean Air Act, the director of environmental | 14 |
| protection, in accordance with Chapter 119. of the Revised Code, | 15 |
| shall adopt rules establishing standards of performance for carbon | 16 |
| dioxide emissions from existing coal-fired electric generating | 17 |
| units in compliance with division (B) of this section and from | 18 |
| existing natural gas-fired electric generating units in compliance | 19 |
| with division (C) of this section to the maximum extent | 20 |
| permissible under the United States environmental protection | 21 |
| agency regulations or guidelines. | 22 |
| (B) Except as provided in division (D) of this section, | 23 |
| standards of performance for existing coal-fired electric | 24 |
| generating units shall be based on all of the following: | 25 |
| (1) The best system of emission reduction that, taking into | 26 |
| account the cost of achieving that reduction and any non-air | 27 |
| quality health and environmental impact and energy requirements, | 28 |
| has been adequately demonstrated for coal-fired electric | 29 |
| generating units that are subject to the standards of performance; | 30 |
| (2) Reductions in emissions of carbon dioxide that can | 31 |
| reasonably be achieved through measures undertaken at each | 32 |
| coal-fired electric generating unit; | 33 |
| (3) Efficiency and other measures that can be undertaken at | 34 |
| each coal-fired electric generating unit to reduce carbon dioxide | 35 |
| emissions from the unit without changing from coal to other | 36 |
| lower-carbon fuels, co-firing other fuels with coal, or limiting | 37 |
| the economic utilization of the unit. | 38 |
| (C) Except as provided in division (D) of this section, | 39 |
| standards of performance for existing natural gas-fired electric | 40 |
| generating units shall be based on all of the following: | 41 |
| (1) The best system of emission reduction that, taking into | 42 |
| account the cost of achieving that reduction and any non-air | 43 |
| quality health and environmental impact and energy requirements, | 44 |
| has been adequately demonstrated for natural gas-fired electric | 45 |
| generating units that are subject to the standards of performance; | 46 |
| (2) Reductions in emissions of carbon dioxide that can | 47 |
| reasonably be achieved through measures undertaken at each natural | 48 |
| gas-fired electric generating unit; | 49 |
| (3) Efficiency and other measures that can be undertaken at | 50 |
| each natural gas-fired electric generating unit to reduce carbon | 51 |
| dioxide emissions from the unit without changing from natural gas | 52 |
| to other lower-carbon fuels or limiting the economic utilization | 53 |
| of the unit. | 54 |
| (D) In establishing a standard of performance for an existing | 55 |
| coal-fired or natural gas-fired electric generating unit, the | 56 |
| director shall consider whether to adopt less stringent standards | 57 |
| or longer compliance schedules than those established in | 58 |
| applicable federal regulations or guidelines based on all of the | 59 |
| following: | 60 |
| (1) Consumer impacts, including any disproportionate impacts | 61 |
| of energy price increases on lower income populations; | 62 |
| (2) Unreasonable costs of reducing emissions resulting from | 63 |
| plant age, location, or basic process design; | 64 |
| (3) Physical difficulties with or the impossibility of | 65 |
| implementing emission reduction measures; | 66 |
| (4) The absolute cost of applying the performance standard to | 67 |
| the unit; | 68 |
| (5) The expected remaining useful life of the unit; | 69 |
| (6) Impacts of closing the unit, including economic impacts | 70 |
| such as expected job losses, if the unit is unable to comply with | 71 |
| the performance standard; | 72 |
| (7) Impacts on the reliability of the state's electrical | 73 |
| grid; | 74 |
| (8) All actual reductions in carbon dioxide emissions | 75 |
| beginning January 1, 2005; | 76 |
| (9) Any other factors specific to the unit that make | 77 |
| application of a less stringent standard or longer compliance | 78 |
| schedule more reasonable. | 79 |
| (E) The director may implement, to the maximum extent | 80 |
| permissible, the standards of performance established in rules | 81 |
| adopted under this section through mechanisms that provide | 82 |
| flexibility in complying with the standards. | 83 |
| (F) Any plan establishing standards of performance for | 84 |
| existing coal-fired or natural gas-fired electric generating units | 85 |
| developed under this section shall be prepared in consultation | 86 |
| with the public utilities commission of Ohio created in Chapter | 87 |
| 4901. of the Revised Code, the Ohio air quality development | 88 |
| authority created in Chapter 3706. of the Revised Code, and any | 89 |
| other relevant agency to ensure that the plan does not threaten | 90 |
| the affordability of electric power to all classes of electricity | 91 |
| consumers, takes full advantage of the federal Clean Air Act to | 92 |
| minimize impacts to the cost and reliability of electricity, and | 93 |
| minimizes the impacts on current and future industrial, | 94 |
| commercial, and residential consumers. | 95 |
| (G) The director shall consider the provisions of this | 96 |
| section, to the extent practicable, in the development of a plan | 97 |
| to be submitted to the United States environmental protection | 98 |
| agency under section 111(d) of the federal Clean Air Act. | 99 |
| (H) Any plan establishing standards of performance for | 100 |
| existing coal-fired or natural gas-fired electric generating units | 101 |
| developed under this section ceases to operate if applicable | 102 |
| regulations adopted or guidelines issued by the United States | 103 |
| environmental protection agency under section 111(d) of the | 104 |
| federal Clean Air Act are withdrawn by the agency or invalidated | 105 |
| by a court. | 106 |