Transcript Reciprocating Internal Combustion Engine (RICE 4Z) Rule

Emissions Reductions Beyond the
Clean Smokestacks Act (CSA)
Environmental Management Commission & Air Quality Committee
November 2013
Sushma Masemore, PE
Planning Section Chief
Division of Air Quality
Department of Environment and Natural Resources
CSA Background

Session Law 2002-4
AN ACT TO IMPROVE AIR QUALITY IN THE STATE BY IMPOSING LIMITS ON THE EMISSION
OF CERTAIN POLLUTANTS FROM CERTAIN FACILITIES THAT BURN COAL TO GENERATE
ELECTRICITY AND TO PROVIDE FOR RECOVERY BY ELECTRIC UTILITIES OF THE COSTS OF
ACHIEVING COMPLIANCE WITH THOSE LIMITS.
http://www.ncleg.net/Sessions/2001/Bills/Senate/HTML/S1078v5.html
An early action state program to control air
pollution from coal-fired power plants.
 Set entity-wide emission limits for nitrogen oxide
(NOx) and sulfur dioxide (SO2).

 NOx is the main cause of ozone formation.
 SO2 is the main cause of fine particulate pollution, haze, and acid rain.
2
CSA Background

Emission Limits
 NOx: 245,000 tons in 1998
60,000 tons by 2007 (76% reduction)
56,000 tons by 2009 (78% reduction)
 SO2: 489,000 tons in 1998
250,000 tons by 2009 (49% reduction)
130,000 tons by 2013 (74% reduction)
Emission cuts achieved through actual reductions –
not by buying or trading credits from utilities in
other states.
 Cost recovery provision for installing new pollution
controls.

3
Affected Plants & Operating Status
Jan. 2014
4
2013 Annual CSA Report

Jointly prepared by DENR and NC Utilities Commission
All permitting, construction, and equipment testing
completed

Net environmental compliance cost = $2.89 billion

2014 Predicted
= 28,832 tons
-Duke Power
2014 Predicted
= 21,884 tons
-Duke Power
5
CSA – one of contributing programs to
help achieve declining Ozone levels
6
Other Impacts

Attainment of fine particulate matter (PM2.5) National Ambient Air
Quality Standard (NAAQS)
 CSA related SO2 reductions supported redesignation demonstration for the
Hickory and Greensboro, Winston-Salem, & High Point areas
 EPA adopted CSA emission caps into N.C. State Implementation Plan



Regional Haze 5-Year Progress Report concluded that N.C.’s national
parks and wilderness areas are on track to meet visibility goals
NC Utilities well positioned to comply with federal rules: Clean Air
Interstate Rule (CAIR), Cross State Air Pollution Rule (CSAPR), Mercury
& Air Toxics Rule (MATS)
Compliance costs for Duke Energy and Progress Energy spread out over
11 years

Other utilities will have 3-5 years to comply
7
Recent Studies

Benefits of Early State Action in Environmental
Regulation of Electric Utilities: North Carolina’s Clean
Smokestacks Act, July 2012
David Hoppock, Sarah K. Adair, Brian Murray, and Jeremy Tarr, Duke University Nicholas
Institute for Environmental Policy Solutions
http://nicholasinstitute.duke.edu/sites/default/files/publications/ni_wp_12-05.pdf

Dynamic of air quality and respiratory mortality in North
Carolina in 1992-2010
J. Kravchenko, I. Akushevich, A.P. Abernethy, S. Holman, W.G. Ross, Jr, and H. K. Lyerly
Currently under peer review with PLoS ONE
8
Beyond CSA Study

Section 11
 EMC to report the need for further NOx and SO2 reductions
 Biennially starting Sept. 1, 2011

Sept. 1 2011 Report Findings
 Many pending actions at local, regional and national levels
could influence the EMC’s recommendations




CSA units still adding controls, being retired, or converted to natural gas
TVA settlement with N.C. still being implemented
Pending litigation with EPA’s interstate transport rules (CAIR and CSAPR)
MATS for new and existing coal and oil fired plants still being implemented
 Recommended further state actions to be presented on Sept.
1, 2013
9
Beyond CSA Sept. 1, 2013 Report

Key federal judicial decisions and rulemaking
actions remain undetermined
CSAPR: Supreme Court to hear oral arguments on Dec.10, 2013
CAIR: temporarily reinstated pending CSAPR outcome
MATS: implementation on-going
Revised Ozone NAAQS: delayed until 2015
New1-hour SO2 NAAQS: Implementation rule expected in late
2013; threshold based requirements will affect larger coal-fired electric
generating units (EGUs)
 Carbon Pollution Standards: EPA rules affecting new and existing
power plants expected in 2014/2015





10
Beyond CSA 2013 Report

EMC Recommendations
 NC EGUs – Significant reductions in NOx and SO2 already achieved;
On course to meet CAIR and MATS rules
 EGUs in Neighboring States – significant emission reductions
expected due to installation of new pollution controls and closing of
smaller plants to comply with MATS rule by March 2015
 Impact of these reductions on future ozone NAAQS will depend on
the level of the final standard set by EPA in 2015.
 Biannual report is no longer necessary.
 Upon issuance of a new NAAQS, DENR will evaluate the need for reductions
beyond CSA to attain and maintain the NAAQS.
 If additional controls are necessary, DENR will initiate necessary rules changes, or
open air permits to include new emission limitation, or both.
11
Questions?
12