ERCOT Environmental Regulations Overview
ERCOT's grid reliability is affected by various environmental regulations such as the Cross-State Air Pollution Rule (CSAPR), Mercury and Air Toxics Standards (MATS), and more. These regulations set limits on emissions, disposal requirements, and compliance dates for power plants in ERCOT. This overview provides insights into the impact of these regulations on the energy sector.
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Presentation Transcript
Environmental Regulations Overview Dana Lazarus Planning Analyst, ERCOT July 29, 2015
Environmental Regulations There are several proposed and recently finalized environmental regulations that could impact grid reliability in ERCOT: Cross- State Air Pollution Rule (CSAPR) Mercury and Air Toxics Standards (MATS) Regional Haze Federal Plan Clean Water Act Section 316(b) Ash Clean Power Plan Disposal Rule Costs to: Coal units Natural gas units Compliance Date: April 2015 2020-2029; 2030 January 2015 2018-2022 2015-2018* 2018-2020** Requires controls on air emissions to improve visibility in national parks Addresses cross-state air pollution through a cap and trade program Sets limits on hazardous air pollutant emissions at power plants Places requirements on disposal of coal ash Requires controls to limit impacts to aquatic life at cooling water intake structures Sets carbon dioxide emissions limits for existing units Color key: No or low costs Moderate costs High Costs *Longer timeframes for facilities required to close. Does not include the proposed Steam Electric Effluent Limitation Guidelines (ELG) rule. **Subject to timing of final rule 1
Cross-State Air Pollution Rule Addresses cross-state air pollution through a cap and trade program Cross- State Air Pollution Rule (CSAPR) Mercury and Air Toxics Standards (MATS) Regional Haze Federal Plan Clean Water Act Section 316(b) Ash Clean Power Plan Disposal Rule Costs to: Coal units Natural gas units Compliance Date: April 2015 2020-2029; 2030 2018-2022 January 2015 2015-2018* 2018-2020** Status Final rule Compliance Requirements Purchase allowances, upgrade controls, or reduce production to comply Next Milestone Litigation pending at U.S. Court of Appeals Color key: No or low costs Moderate costs High Costs *Longer timeframes for facilities required to close. Does not include the proposed Steam Electric Effluent Limitation Guidelines (ELG) rule. **Subject to timing of final rule 2
Mercury and Air Toxics Standards Sets limits on hazardous air pollutant emissions at power plants Several units in ERCOT have compliance extensions to April 2016 Cross- State Air Pollution Rule (CSAPR) Mercury and Air Toxics Standards (MATS) Regional Haze Federal Plan Clean Water Act Section 316(b) Ash Clean Power Plan Disposal Rule Costs to: Coal units Natural gas units Compliance Date: 2020-2029; 2030 April 2015 January 2015 2018-2022 2015-2018* 2018-2020** Status Final rule Compliance Requirements Install control technologies to comply (e.g., activated carbon injection) Next Milestone Case sent back to U.S. Court of Appeals Color key: No or low costs Moderate costs High Costs *Longer timeframes for facilities required to close. Does not include the proposed Steam Electric Effluent Limitation Guidelines (ELG) rule. **Subject to timing of final rule 3
Ash Disposal Rule Regulates disposal of coal ash in impoundments and landfills Steam-Electric Effluent Limitation Guidelines is related rulemaking Cross- State Air Pollution Rule (CSAPR) Mercury and Air Toxics Standards (MATS) Regional Haze Federal Plan Clean Water Act Section 316(b) Ash Clean Power Plan Disposal Rule Costs to: Coal units Natural gas units Compliance Date: April 2015 2020-2029; 2030 January 2015 2018-2022 2018-2020** 2015-2018* Status Final rule Compliance Requirements Requirements for siting, design, post-closure care, groundwater monitoring, etc. Next Milestone Compliance Color key: No or low costs Moderate costs High Costs *Longer timeframes for facilities required to close. Does not include the proposed Steam Electric Effluent Limitation Guidelines (ELG) rule. **Subject to timing of final rule 4
Regional Haze Requires controls on air emissions to improve visibility in national parks Cross- State Air Pollution Rule (CSAPR) Mercury and Air Toxics Standards (MATS) Regional Haze Federal Plan Clean Water Act Section 316(b) Ash Clean Power Plan Disposal Rule Costs to: Coal units Natural gas units Compliance Date: April 2015 2020-2029; 2030 January 2015 2018-2022 2015-2018* 2018-2020** Status Proposed rule Compliance Requirements Certain coal-fired units would be required to upgrade or install scrubbers Next Milestone Final rule (projected Dec. 2015) Color key: No or low costs Moderate costs High Costs *Longer timeframes for facilities required to close. Does not include the proposed Steam Electric Effluent Limitation Guidelines (ELG) rule. **Subject to timing of final rule 5
Regional Haze Affected Units in ERCOT Monticello 3 Monticello 1, 2 Martin Lake 1, 2, 3 Big Brown 1, 2 Sandow 4 Limestone 1, 2 San Miguel Coleto Creek 6
Cooling Water Intake Structures Rule Requires controls to limit impacts to aquatic life at cooling water intake structures Cross- State Air Pollution Rule (CSAPR) Mercury and Air Toxics Standards (MATS) Regional Haze Federal Plan Clean Water Act Section 316(b) Ash Clean Power Plan Disposal Rule Costs to: Coal units Natural gas units Compliance Date: April 2015 2020-2029; 2030 January 2015 2018-2022 2015-2018* 2018-2020** Status Final rule Compliance Requirements Install or upgrade modified traveling screens and fish return systems Next Milestone Compliance Color key: No or low costs Moderate costs High Costs *Longer timeframes for facilities required to close. Does not include the proposed Steam Electric Effluent Limitation Guidelines (ELG) rule. **Subject to timing of final rule 7
Clean Power Plan Sets carbon dioxide emissions limits for existing sources EPA separately proposed emissions limits for new/modified sources Cross- State Air Pollution Rule (CSAPR) Mercury and Air Toxics Standards (MATS) Regional Haze Federal Plan Clean Water Act Section 316(b) Ash Clean Power Plan Disposal Rule Costs to: Coal units Natural gas units Compliance Date: April 2015 2020-2029; 2030 January 2015 2018-2022 2015-2018* 2018-2020** Status Proposed rule Compliance Requirements Uncertain, but likely to result in significant reductions in output from coal units Next Milestone Final rule (projected summer 2015) Color key: No or low costs Moderate costs High Costs *Longer timeframes for facilities required to close. Does not include the proposed Steam Electric Effluent Limitation Guidelines (ELG) rule. **Subject to timing of final rule 8
Ozone National Ambient Air Quality Standards Would tighten the national ozone standard Not shown in timeline; potential impacts would begin in early/mid 2020s Cross- State Air Pollution Rule (CSAPR) Mercury and Air Toxics Standards (MATS) Regional Haze Federal Plan Clean Water Act Section 316(b) Ash Clean Power Plan Disposal Rule Costs to: Coal units Natural gas units Compliance Date: April 2015 2020-2029; 2030 January 2015 2018-2022 2015-2018* 2018-2020** Status Proposed rule Compliance Requirements Potential requirements for additional emissions controls; tightening of CSAPR Next Milestone Final rule (projected Oct. 2015) Color key: No or low costs Moderate costs High Costs *Longer timeframes for facilities required to close. Does not include the proposed Steam Electric Effluent Limitation Guidelines (ELG) rule. **Subject to timing of final rule 9
Current ERCOT Fleet SCR = Selective catalytic reduction SNCR = Selective non-catalytic reduction 10
CREZ Reactive Study Questions? 12