Discussion:
- Feedback on Plan
- Next Steps
Holly Bressett, JD
Deputy Director – Central Region
Beyond Coal Campaign
Impact of New EPA Regulations on Electric Utilities
Wisconsin Public Utility Institute
Madison, WI
January 26, 2012
CLEAN AIR ACT: 1-HR SO2 NAAQS
RULE DESCRIPTION: The new rule replaces the previous 24-hour and 3-hour
standards. The ambient standard is achieved when the design value does not exceed
75 ppb. The value is determined based on the 99th percentile of annual distribution
of daily maximum 1-hour concentrations over a 3-year average. Fossil fuel
combustion is 73% of emissions. Monitoring and modeling will determine
compliance.
RELEVANT DATES: Final June 2010; June 2011 states submit initial designations;
June 2012 EPA issues designations; June 2013 monitoring network improved; June
2013 maintenance plans required; February 2014 Nonattainment area plans due;
August 2017 all areas attain standard.
IMPACT ON UTILITY SECTOR: 1-hour emissions limit; controls in nonattainment
areas.
CITATIONS: 42 U.S.C. 7407; 7408; 7409. 75 Fed. Reg. 35520 (June 22, 2010),
Appendix W Clarification Memo 8-23-2010
CLEAN AIR ACT: 1-HR NO2 NAAQS
RULE DESCRIPTION: Primary ambient standards are set to protect public health
based on latest scientific information. New ambient standard for nitrogen dioxide is
100ppb per hour based on the 3-year average of the 98th percentile of the yearly
distribution of daily 1-hour maximum concentrations. This is in addition to the
annual standard. The rule will add monitors to a woefully inadequate monitoring
network. Monitors are required for Madison and Milwaukee.
RELEVANT DATES: Final Rule February 9, 2010. State designations on existing
network by January 2011; Designations by January 2012; Monitoring network in
place by 2013; NAAQS review completed by 2015; Potential non-attainment
designations (2016-2017); All areas attain by 2021/2022.
IMPACT ON UTILITY SECTOR: 1-hour emissions limits to protect the NAAQS, controls
required in non-attainment areas.
CITATIONS: 42 U.S.C. 7407; 7408; 7409, 75 Fed. Reg. 6474 (February 9, 2010),
Appendix W Clarification memo 6-28-2010; Additional Clarification 3-1-2011
CLEAN AIR ACT: GREENHOUSE GAS NSPS
RULE DESCRIPTION: NSPS for coal-fired power plants was reviewed in 2006 but EPA
declined to establish GHG standards as part of the revision. State and
environmental petitioners sued, EPA took a voluntary remand after Massachusetts.
A standard of performance for pollutants reflects emission limitation that is
achievable through the application of the best system of emission reduction that
has been adequately demonstrated. 42 U.S.C. 7411(a)(1).
RELEVANT DATES: Consent decree originally required a proposed rule in June, 2011.
The agreement was modified to delay the proposed rule until September, 2011. The
final rule is still due by May 2012. EPA has signaled a late Jan release.
IMPACT ON UTILITY SECTOR: The NSPS will impact new (111(b)) and existing
sources (111(d))differently. Remaining useful life considered. The standard could
allow market-based approach, efficiency upgrades, fuel substitutions, and/or
technological control.
CITATIONS: 42 U.S.C. 7411; 40 C.F.R. Part 60; Avoiding the Glorious Mess; A Sensible
Approach to Climate Change and the Clean Air Act. Duke University.
CLEAN WATER ACT: 316(B) REGULATION
RULE DESCRIPTION: “Any standard established pursuant to section 1301 of this title
or section 1316 of this title and applicable to a point source shall require that the
location, design, construction, and capacity of cooling water intake structures reflect
the best technology available for minimizing adverse environmental impact.” EPA’s
proposed rule fails to set a “standard” and instead opts for minimal controls on
impingement and no controls for entrainment. Heavy reliance on cost-benefit
analysis that does not account for all benefits and perpetuates a case-by-case
approach to control.
RELEVANT DATES: The proposed rule is out. Final due July 27, 2012 (smt).
IMPACT ON UTILITY SECTOR: The rule applies to all power plants (and industrial
users) that have a NPDES permit regardless of fuel type. Impingement control
deadline of 2018 (traveling screens) and open-ended entrainment deadline. ClosedCycle cooling, which is undoubtedly the best technology available, costs around
$175-$200/kw capital.
CITATIONS: 33 U.S.C. 1326; 76 Fed. Reg. 22174 (April 20, 2011).
CLEAN WATER ACT: EFFLUENT GUIDELINES
RULE DESCRIPTION: Despite the fact that the CWA requires review of industrial
category guidelines annually, the last ELGs for the steam industry were written in
1982. EPA’s re-write, which is supported by detailed analysis of steam plant effluent
will set limits for “constituents and chemical, physical, and biological characteristics
of pollutants” that represent reductions consistent with “best practicable control
technology.” Focus is on pollution from scrubbers, which was not considered in the
1982 regs. Selenium, arsenic, cadmium, lead, mercury, and other metals.
RELEVANT DATES: July 2012 (proposed); January 2014 (final). Case-by-case
evaluations in the interim.
IMPACT ON UTILITY SECTOR: Many operators are going to dry ash handling to
accomplish both compliance with CCR and ELG regulation. The cost of control
depends heavily on how ash is disposed and whether the plant’s units have FGDs.
EEI estimates wastewater treatment at $80 million (non-FGD) and $200 million
(FGD). Treatment includes physical, chemical, and biological.
CITATIONS: 33 U.S.C. 1314(b); 40 C.F.R. 423; 2009 EPA Steam Effluent Study
RCRA: COAL ASH REGULATION
RULE DESCRIPTION: Coal-fired power plants in the U.S. produce more than 136
million tons of ash per year. EPA’s proposed rule requests comment on two
alternative regulatory scenarios under RCRA: Subtitle C hazardous waste and
Subtitle D solid waste. Beneficial re-use would remain.
RELEVANT DATES: Proposed rule is out and the final rule has been delayed. Last
week, several environmental organizations sent EPA notice of intent to sue the
agency for its failure to issue regulations under RCRA. NOI highlights EPA’s duty to
review and revise regulations every 3 years under RCRA. 42 U.S.C. 6912(b).
IMPACT ON UTILITY SECTOR: Cost will depend on subtitle D or C regulation. EEI
Estimates $23M/unit and $20M/unit for dry fly and bottom ash respectively, and
$80M (non-FGD) and $200M (FGD) for wastewater treatment. O&M is in addition
to that. EEI also includes Subtitle C costs in addition to those above.
CITATIONS: 42 U.S.C. 6912(b); 75 C.F.R. 35127 (June 21, 2010); Potential Impacts of
Environmental Regulation on the U.S. Generation Fleet. January 2011. EEI.
EPA’s Side-by-Side for Subtitle C and D
Subtitle C
Subtitle D
Effective Date
1-2 years
6 months
Enforcement
RELEVANT DATES
State and Fed
Citizens and states
Corrective Action
States and EPA
Self-implementing
RULE DESCRIPTION
IMPACTAssurance
ON UTILITY SECTORYes
Financial
No
Requirements for storage
Yes
No
Surface impoundments
existing
Remove solids, meet land
disposal requirements, liner.
Remove solids, liner.
Surface impoundments new
Effectively phases out new.
Install composite liners
Landfills existing
Groundwater monitoring
Groundwater monitoring
Landfills new
Liner and groundwater mon.
Liner and groundwater mon.
Closure requirements
Yes, states and EPA
Yes, self-implementing
Environmental Analysis for Regulators & Operators:
All-In Forward-Going Economic Analysis
Discussion:
- Feedback on Plan
- Next Steps