Electric Generation on High Electric Demand Days

Tonalee Carlson Key New Jersey Dept. of Environmental Protection New Jersey Clean Air Council Annual Public Hearing April 1, 2009

Overview

High Electric Demand Day Generation and Air Quality The Regional Effort The New Jersey Response The Other Pieces of High Electric Demand Day Generation

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High Electric Demand Day Generation and Air Quality : On High Electric Demand Days, NO

x

Emissions From EGUs Go Up

3

NO x on Ozone and Non Ozone Exceedance NJ NYC CT RI SE MA (June 1 High Electric Demand Days Correspond with High Ozone Days

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The Mix Of Generating Units in Operation Varies By Day And Region

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NJ Electrical Generating Units Ozone Season Use 2005-07

100% 90%

Not all units run every day

80% 70%

Baseload

60% 50% 40% 30% 20% 10%

Peakers - Peaking Units & Load Following Boilers

0% Mercer Generating Station7001 Glen Gardner8001 Cedar Station4001 EFS Parlin Holdings, LLC1001 Essex12001 Linden Generating Station2201 AES Red Oak3 E F Kenilworth, 6

Fuel Types Comprising the Daily NO x Emissions sorted by NO x Mass from NJ & NYC EGUs June 1 - September 15, 2005 Source of high electric demand day NO x different throughout the OTR emissions is In New York City and New Jersey the source of NO x primarily gas and diesel fired combustion turbines is

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Fuel Types Comprising the Daily NO x sorted by NO x Emissions Mass from New England EGUs June 1 - September 15, 2005 In New England the source is primarily residual oil fired load following boilers

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Baseload EGUs Getting Cleaner But Emissions on HEDD Remain High NO x Emissions (TPD) Typical Summer 8/7/2002 6/4/2005 992

D

623 High Electric 8/12/2002 7/26/2005 1615 551 798 1349

Baseload units are getting cleaner Delta getting larger- HEDD units have a more profound effect

Emissions for units In 6 States: CT,NY, NJ,PA,DE,MD

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The Air Quality Implications

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High Electric Demand Day Units Adjusted in the Sensitivity Modeling

Facilities with High Electric Demand Day Units

State Facilities Units

CT 12 56 DE 1 4 MA MD ME 6 5 2 37 16 4 NJ NY PA 20 11 11 119 97 51

Total

68 384 11

Maximum 8Hr Ozone Reductions (ppb) from High Electric Demand Day Units NO x = 0.1 lb/ mmBtu Modeling Episode- Aug 1-15, 2002

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The Regional Effort

Process & Accomplishments

Over a year long, multiple meeting process (2006-2007) Robust stakeholder process (RTOs, PUCs, Generating Co., EPA, State Staff) Reductions formalized in OTC MOU 14

The New Jersey Response: The H

igh

E

lectric

Rule D

emand

D

ay

Signed by Commissioner 3/20/09

Implementation

Two Phases

Short Term – Reductions from: 5/19/2009 – 9/30/2014 Reductions to aid attainment of the 1997 8-hour ozone standard Allow electric generating companies to develop and implement long term strategy to meet 2015 performance standards – Based on OTC MOU (NJ committed to 19.8 TPHEDD reductions relative to the 7/26/05 base HEDD) – Applies to each HEDD unit that: For CTs: not controlled by water injection or SCR For boilers: not controlled by SCR or SNCR For all: had NOx emission rate of ≥ 0.15 lbs/MMBTU 16

Implementation - Short Term - continued

– The owner or operator will prepare a 2009 HEDD Emission Reduction Compliance Demonstration Protocol Applicable measures to obtain required emission reductions: – Control the HEDD unit

Units in NJ, PA,

– Reduction in HEDD unit usage – Control non-HEDD unit – For duel fueled: combust NG on HEDD – Implement:

DE or MD

energy efficiency measures demand response measures renewable energy measures – Other measures approved by the Department 17

Implementation - Long Term - continued

Long Term – Performance standards applicable 5/1/2015:

HEDD Boilers Fuel Type lb/MWh HEDD Turbines Fuel Type lb/MWh

Coal Heavier than No. 2 fuel oil No. 2 & lighter fuel oil 1.50 2.00 1.00 Simple cycle gas Simple cycle oil Combined cycle gas 1.00 1.60 0.75 Gas 1.00 Combined cycle oil Regenerative cycle gas Regenerative cycle oil 1.20 0.75 1.20 New, reconstructed or modified turbines must meet SOTA, LAER & BACT, as applicable – Estimated emission reductions in 2015: 64 TPD (relative to the 7/26/05 base HEDD) 18

Rule Status

Rule Status: – Final Rule Published in NJ Register: April 20, 2009 – Operative Date: May 19, 2009 Final Rule Document: (after April 20 th ) http://www.nj.gov/dep/rules/adoptions.html

Regional Record: http://www.otcair.org/document.asp?fview=meeting 19

The Other Pieces of High Electric Demand Day Generation

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R

egional

T

ransmission

O

rganizations (3) – ISO-NE, NYISO, PJM – Taught us about alerts, electricity distribution, pricing of electricity, demand response, and capacity payments

P

ublic

U

tility

C

ommissions – Taught us about energy planning-goals-requirements at the state level – In NJ: Energy Master Plan was being developed Generators – The parties that operate daily under the requirements of all three organizations – environmental, PUC, RTO – ‘Reality’ glue 21

HEDD DEP Team Members

Chris Salmi Tonalee Key Tom McNevin Mike Hogan Yogesh Doshi Danny Wong Shan He 22

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Additional Information

Regional Emission Reductions in the OTC MOU

State CT DE MD NJ NY PA Total (tons per day)

11.7

7.3

23.5

19.8

50.8

21.8

134.9

from HEDD Units

25% 20% 32% 28% 27% 32% 25