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North Carolina’s “Clean Smokestacks Act” NGA Conference on State Best Practices

North Carolina’s “Clean Smokestacks Act” NGA Conference on State Best Practices April 29-30, 2004. Brock Nicholson, P.E. Deputy Director N.C. Division of Air Quality. Why Was CSA Proposed and Enacted?. Public Health Concerns

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North Carolina’s “Clean Smokestacks Act” NGA Conference on State Best Practices

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  1. North Carolina’s “Clean Smokestacks Act” NGA Conference on State Best Practices April 29-30, 2004 Brock Nicholson, P.E. Deputy Director N.C. Division of Air Quality

  2. Why Was CSA Proposed and Enacted? • Public Health Concerns • Significant Visibility Degradation, Especially in the Mountains • Economic Well Being, both Currently and for the Future • Dedication of Individuals • Opportunity Was Right • “Alignment of the Stars”

  3. Clean Smokestacks Act Results from Broad Stakeholder Effort • Utility Companies • Legislative Sponsors • Environmental Community • Division of Air Quality / Dept. of Environment and Natural Resources • Governor’s Office • State Utilities Commission • Attorney Generals Office • Business and Industrial Community • Utility Rate Payers

  4. Daily SO4 Aerosol & its Change on July 15, 1995 for a 10% Reduction of 2010 Strategy A2 SO2 Emissions KY WV VA +0.15 +0.05 2010-A2 NC TN - 0.05 - 0.15 - 0.25 - 0.35 AL GA SC - 0.45 - 0.55 mg/m3 (Class 5 day)

  5. SAMIObservations: SO2 Sensitivity Maps State to State Comparison: • In general, the largest change in SO4 aerosol or SO4 deposition in a SAMI state is due to SO2 emissions changes in that state • Each SAMI state contributes to change in SO4 aerosol or SO4 deposition in neighboring SAMI states.

  6. -8.0 Other FL&MS -6.0 NE MW CN -4.0 WV VA TN SC -2.0 NC KY GA AL 0.0 Annual SO4 Aerosol Response to 10% Reduction in SO2 Emissions from 2010 A2 strategy SO4 Aerosol Sensitivity (%) Dolly Sods, WV Otter Creek, VA Linville Gorge, NC Look Rock, (Smokies), TN Shining Rock, NC Sipsey, AL Joyce Kilmer, NC Shenanhoah, VA James River Face, VA Cohutta, GA

  7. Creation of Clean Smokestack Act • In 1st Year: • Environmental Group Efforts • NOx SIP Rule • Legislative Sponsors Ownership • Real Reductions in NC • Concern with Mercury and CO2 • Deal on Pollutant Caps • Cost Recovery • SAMI Finding • Support by Utility Companies • In 2nd Year: • Leadership by Governor • Creativeness by Utilities Commission and Companies • Handling of “Credits” • Support of Industry Customers • Alignment of Stars

  8. North Carolina Clean Smoke Stacks Act, What does it Require? • NOx & SO2 Caps on Emissions • Tons / year • Caps per Company - They decide on Controls • Phased Compliance; 1 Jan ’07, ‘09, ‘13 • Actual Reductions in NC; About 75 % • Unique Cost Recovery Feature • Recommendations on Hg & CO2; Sep ‘05 • Reduction Credits Held by the State

  9. Utility Company Plans • Initial Plans Submitted • 20 + SO2 Scrubbers • 36 SCR / SNCR Units • Most with Combustion Controls • NOx Controls in Place Starting in 2001 • SO2 Scrubbers Scheduled to be in Starting in 2005

  10. Emissions Reductions Under Clean Smokestacks Bill 489,000 500,000 450,000 400,000 350,000 300,000 245,000 250,000 250,000 200,000 130,000 150,000 60,000 100,000 56,000 50,000 2007 2009 1998 1998 2013 2009 SO2 (tons/year) NOx (tons/year)

  11. Origin of Mercury and CO2 Provisions in CSA • Concern Over Public Health and Environment • Desire for Comprehensive Approach for Utilities • Concern Over State of Knowledge, Technical Issues and Costs • Expectations of Significant “Co-Benefits” of Mercury Reduction from Control of SO2 and NOx • In Light of Concerns, Agreed on SO2 and NOx Caps at Outset with Requirement to make Recommendations to Legislature on Issue of Further Controls for Mercury and CO2 Controls by a Future Date Certain • SO2 and NOx reductions are Actual in NC

  12. So, What Does this Mean WRT Mercury • Question: Will Clean Smokestacks SOx/NOx Control Co-Benefit be Enough? • “White Paper” on State of Knowledge/Science on Expected Co-Benefit of Controls, - September 2003 • Workshop April 2004 - September 2004 Report • Understand What Control Options Exist; Benefits and costs • Update Knowledge/Make Recommendations to Legislature on Whether Additional Controls are Necessary – September 2005 • If so how much and by when?

  13. WRT Carbon Dioxide • Report on State of Knowledge – September 2003 • Comprehensive Review • Full Range of Options Possible for Reducing CO2 • Consider Costs • What is Being Done Elsewhere? • What is being proposed? • Workshop April 2004 - September 2004 Report • Update Knowledge, Present Range of Options for consideration, Make Recommendations to Legislature on Reducing CO2 – September 2005

  14. North Carolina’s Efforts to Encourage Emissions Reduction in Other States • 2002 - 2003 • Governor Easley Sends Letter to other Governors • Attorney General’s Letter to other Attorneys General in Region • Southern Air Principle States’ Recommendations and Governors’ Letter to President Bush • SAMI Recommendation on Multi-pollutant Strategies • Meetings with other states • DAQ modeling analysis, e.g. 8-hour Ozone; Assess Impacts on North Carolina • DAQ, Letters to Other States in Eastern US • 2003 - 2004 • AG sends Letters to 13 States • 2004 • NC Files Section 126 Petition with EPA

  15. What Is Next? • April Status Reports on Compliance Progress • 2nd Report to Legislature on Implementation by Utilities • A Lot of Work by Utilities • 2nd Report to legislature on Hg and CO2 - September 1, 2004

  16. References • Text of Act: http://www.ncleg.net/html2001/bills/AllVersions/Senate/S1078vc.html • www.ncair.org • Brock.Nicholson@ncmail.net 919-715-0587

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