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EPA’s Response to the 2000/2001 Energy Crisis

EPA’s Response to the 2000/2001 Energy Crisis. Keeping the Lights on Protecting Air Quality. The Issues. New (ultraclean) Baseload Powerplants New Clean Peakers Old Powerplants with Restrictions RECLAIM (very dirty) BackUp Generators Other non-California Examples. The Context.

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EPA’s Response to the 2000/2001 Energy Crisis

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  1. EPA’s Response to the2000/2001 Energy Crisis Keeping the Lights on Protecting Air Quality

  2. The Issues • New (ultraclean) Baseload Powerplants • New Clean Peakers • Old Powerplants with Restrictions • RECLAIM • (very dirty) BackUp Generators • Other non-California Examples

  3. The Context • California has worst Air Quality in U.S. • California fifth largest economy in world • Domino Effect • Peak Power demand = Peak Ozone levels • CA Diesel Risk Reduction Plan

  4. Baseload Powerplants • Many in permitting queue in 2000 • Issues • Offsets • Difficult to find quality offsets in CA/AZ nonattainment areas • BACT • Small issues, eg 2.0 vs. 2.5 ppm NOx • Modeling • Very clean plants rarely isssue • Community Concerns • Most difficult

  5. New Peakers • Davis Executive Order • Permitting Issues

  6. Gov. Davis Executive Orders • Lift restrictions on power plants • Ie fuel use, operating hours • 21 day permit for peakers

  7. Peakers • Permit Template • Joint EPA/CAPCOA/CARB/CEC/ISO effort • BACT • Offsets • Permit Conditions • Timing/Public Notice • EPA Offer: AOCs • Several Issued

  8. Older Powerplants with Restrictions • Not Many • Mostly old peakers with hours of operation limits • EPA offered AOCs • A few issued • NOT Considered: Relaxation of BACT, other emission limits

  9. RECLAIM • What is RECLAIM? • Cap and Trade System for NOx and PM • Declining cap • For portion of stationary sources in SCAQMD

  10. RECLAIM II • The Crisis • Many sources had delayed installing controls • Utilities! • IPPs inherited problem • Increased production, declining cap, delayed controls=market crisis • Solution • Temporarily isolate power producers from rest of RECLAIM sources • Require controls on schedule • Forward fund reductions, ensure environmental

  11. BUGs • Thousands in State • Very Dirty • Source of Electricity • EPA letter 1 • Context: Title V • Abuses • ISO encourages sources to run BUGS • NOT in emergency situation

  12. Other Examples • Hawaii • Load Demand in chunks • Outer Islands, Resort Driven • Careful management of pre-construction activities • Arizona • SCR for generator lost in Atlantic • Local AOC, no Federal Action requested • Substation fire • APCO allows use of BUGs • Analysis of AQ impact?

  13. Lessons Learned • Clean Air Act has mechanisms to accommodate a crisis • Planning is still essential • Public Health protection paramount • Environmental and Energy Regulators need better mutual understanding

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