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REGULATION OF AIR POLLUTANT EMISSIONS FROM POWER GENERATING UNITS

REGULATION OF AIR POLLUTANT EMISSIONS FROM POWER GENERATING UNITS. Western Interstate Energy Board Western Governors’ Association Workshop on North American Energy Trade May 1-2, 2002 San Diego, California. California Environmental Protection Agency. AIR RESOURCES BOARD. Topics of Discussion.

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REGULATION OF AIR POLLUTANT EMISSIONS FROM POWER GENERATING UNITS

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  1. REGULATION OF AIR POLLUTANT EMISSIONS FROM POWER GENERATING UNITS Western Interstate Energy Board Western Governors’ Association Workshop on North American Energy Trade May 1-2, 2002 San Diego, California California Environmental Protection Agency AIR RESOURCES BOARD

  2. Topics of Discussion • Air Permits • New Source Review • Recent Power Plant Permitting History • Air Quality Impacts from Power Plants • Air Pollution Control Options • Cost of Emission Controls • Emissions Standards for Power Generating Units • Closing Remarks

  3. Air Permits:Federal Requirements • Pre-Construction Permits for New or Modified Sources • For Sources Above a Given Size Threshold • NSR - in Non-Attainment Areas (Exceed NAAQS) • PSD - in Attainment Areas (Attain NAAQS) • Operating Permits (Title V Permits) • For Sources Above a Given Size Threshold • Includes All Air Pollution Requirements that Apply to the Source • Permits Typically Issued by State or Local Air Pollution Agency - EPA Issues Some Permits

  4. Air Permits:California Requirements • Regulatory Driver is Attainment of National AAQS and More Stringent State AAQS • Responsibility to Control Air Pollutant Emissions Sources • Mobile Sources - California Air Resources Board • Stationary Sources - 35 Local Air Districts • Construction Permits Required for New/Expanded Thermoelectric Power Plants • California Energy Commission if 50 MW • Local Air Districts if <50 MW

  5. New Source Review:Federal Requirements • Attainment Areas • PSD - Prevention of Significant Deterioration of Air Quality • Requires Best Available Control Technology (BACT) • Non-Attainment Areas • Designed to Allow Growth While Limiting Emissions from New or Expanding Sources • Requires Lowest Achievable Emission Rate (LAER) • Requires Emission Increases to be Offset by Emission Decreases for Net Air Quality Benefit • Facility Size Trigger Levels Vary With Severity of Pollution

  6. New Source Review:California Requirements • More Stringent than Federal NSR • Required in Areas that Do Not Attain More Stringent California AAQS • Requires Application of Best Available Control Technology (BACT) - Similar to Federal LAER • BACT Threshold Based on Daily Emissions Rather than Annual Emissions • Requires Emission Increases to be Offset by Emission Decreases • Facility Size Thresholds Lower than Federal Thresholds and Vary With Severity of Pollution

  7. Best Available Control Technology: California • Requires Application of the Most Advanced Control Technology Available • Achieves the Lowest Possible Emission Rate (CA BACT akin to federal LAER) • Determined on a Case-by-Case Basis by the Local Air Districts • CARB Maintains a BACT Clearinghouse (www.arb.ca.gov/bact/bact.htm)

  8. Offsets • Emission Reductions from Existing Sources to Counterbalance Emission Increases from New and Expanding Sources • Reductions Must be Real, Enforceable, Quantifiable, Surplus, and Permanent • Emission Reductions Can Come From Stationary, Mobile, and Area Sources • Districts Maintain Emission Reduction Credit Banks • Preserve Reductions forFuture Use • Sell to Another Party

  9. Permitting History:Power Plant Projects Approved (1976 to 2002) 5,848 MW 4,230 MW Megawatts (MW) 2,143 MW Based on data from the California Energy Commission

  10. Permitting History:New Power Generation • Since 1999, 61 Projects Approved, Totaling 13,945 MW • 22 Plants On-Line So Far - 2,535 MW • 22 Currently Under Construction • 26 Projects Under Review • 54 Projects Announced or Planned

  11. Air Quality Impacts from Power Plants • NOx Combustion Emissions • Contribute to Ozone Formation • Contribute to Secondary PM10 • CO Combustion Emissions • Sulfur Dioxide and PM10 Emissions, Depending on Fuel Type and Quality • PM10 Emissions from Wet-Cooling Towers

  12. Air Pollution Control Options • Dry Low NOx Burners without Additional Controls: 9 to 25 ppm NOx • Dry Low NOx Burners with Selective Catalytic Reduction (SCR): 2 to 5 ppm NOx • CO Oxidation Catalyst: 6 ppm • CO Catalyst Also Removes VOC

  13. Cost Of Emission Controls • Typical 500 MW Plant Costs $250 to $300 Million • Cost of Controls $6.5 to $7.5 Million • Percent of Capital Cost Less than 3% • Additional Cost Less than 1 cent per kWh

  14. Performance Standards: CARB Guidance for NewCentral Station/Peaker Plants • Combined-Cycle and Cogeneration Turbines: • NOx: 2.5 ppmvd, 1-hr rolling average or 2.0 ppmvd, 3-hr rolling average • CO: 6 ppmvd, 3-hr rolling average • VOC: 2 ppmvd or 0.0027 lb/MMBtu • Simple-Cycle Turbines: • NOx: 5 ppmvd, 3-hr rolling average • CO: 6 ppmvd, 3-hr rolling average • VOC: 2 ppmvd or 0.0027 lb/MMBtu *ppmvd limits at 15% O2

  15. Performance Standards: CARB Guidance for NewCentral Station/Peaker Plants (continued) • Currently Working on an Update to the Guidance to Assess Lower Achievable Emission Limits • Also Working on a Regulation to Control Existing Power Plants to Level at/near BACT

  16. NOX BACT Trends in California:Combined-Cycle/Cogeneration Configurations

  17. Closing Remarks • Advanced Emission Controls Critical In California to Attain and Maintain Health-Based Air Quality Standards • Technology-Based Programs Very Effective • Most Effective at Pre-Construction Phase • Controls Can Be Very Cost-Effective

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