Overview of MISO’s Analysis of the EPA’s CSAPR Update Rule October 2016 Overview • • • • Why am I here? What is CSAPR? What have we done so far? Where are we now? Overview of MISO’s study of the CSAPR Update Rule 2 Proposed CSAPR Update Rule More stringent seasonal NOx emissions • • EPA proposed Cross State Air Pollution Rule (CSAPR) Update (80 FR 75705; December 3, 2015) Interstate transport (or “good neighbor”) requirements come from the Clean Air Act and states must prevent emissions which: – Contribute significantly to nonattainment, or – Interfere with the maintenance of the NAAQS, in any other state • The following measures implementable in 23 states (11 states in MISO) effective May 1, 2017 – Fully operate/optimize exiting control technologies (SCRs or SNCRs) that are installed and operational but underutilized or idled – Install modern combustion controls (e.g. low NOx burners + over-fire air) – Shift generation to lower NOx emitting units – Displace coal by dispatching in-state natural gas e.g., increase utilization of natural gas combined cycle (NGCC) Overview of MISO’s study of the CSAPR Update Rule 3 MISO’s study of the proposed CSAPR Update Rule • PLEXOS model, which produces optimal hourly economic dispatch considering generation, transmission, and environmental constraints – Focused on 2017 scenario, also performed 2025 and 2030 – Scenarios ranged from one in which states must meet their budget alone with no emission trading and another in which all Eastern Interconnection states can trade emission allowances • Major modeling assumptions: - Includes only currently used emission control technology - Compliance achieved through energy and emission trading only • Takeaways – In 2017, the seasonal NOx budget can be met in MISO states through redispatch (IA and AR have toughest compliance) – Regional energy and emission trading eases implementation of the CSAPR update in MISO Overview of MISO’s study of the CSAPR Update Rule 4 Final Rule Updates STATE North Carolina Wisconsin Tennessee Virginia Iowa West Virginia Arkansas Alabama Pennsylvania Illinois Louisiana Ohio New York Mississippi Missouri New Jersey Kentucky Maryland Texas Kansas Michigan Indiana Oklahoma CHANGE* LESS STRINGENT • The Final Rule’s seasonal NOx limits are overall less stringent than originally proposed, but individual state impacts may vary • North Carolina no longer has a seasonal NOx budget under the Final Rule MORE STRINGENT *Percentage change in reference to proposed budget Overview of MISO’s study of the CSAPR Update Rule 5 Energy changes lessen in MISO under final CSAPR Update Rule • Individual states like MI and IN now have more stringent seasonal NOx targets % Change in MWh May 1 – Sep 30 Proposed CSAPR Update Final CSAPR Update IN -2.6 -3.0 MI +6.1 -1.7 MISO states +3.6 +2.6 – Energy changes indicate potential compliance pathways with emission trading (changes are greater with no emission trading but compliance is still achievable) – Compliance achieved through shifting coal to gas, increasing import from non-CSAPR states • Major model assumption: only currently utilized emission control technology included – Emission production rates based on historical performance Overview of MISO’s study of the CSAPR Update Rule 6 Contact • Jordan Bakke [email protected] • Jesse Phillips [email protected] Overview of MISO’s study of the CSAPR Update Rule 7
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