EPA ESPS for OUC Chip Merriam Vice President - Legislative, Regulatory & Compliance July 8, 2015 1 1 RELIABLE • AFFORDABLE • SUSTAINABLE RELIABLE • AFFORDABLE • SUSTAINABLE
2 RELIABLE • AFFORDABLE • SUSTAINABLE
Emission Changes 3 RELIABLE • AFFORDABLE • SUSTAINABLE
Possible Timeline for Environmental Regulatory Requirements for the Utility Industry Ozone SO 2 /NO 2 CAIR/ CSAPR Water Beginning SO 2 Primary CAIR Phase I NAAQS Reconsidered Effluent Guidelines Revised Seasonal Effluent Guidelines Proposed CAIR Ozone Final rule expected Ozone NOx Cap Compliance 3-5 yrs Replacement NAAQS NAAQS SO 2 /NO 2 Next Ozone Final CAIR after final rule Waters of Rule Expected Secondary NAAQS Revision CAIR Replacement The US final rule NAAQS Vacated Rule Expected 316(b) Compliance Effluent 316(b) final rule Clean 3-4 yrs after final rule Guidelines expected CAIR NO 2 Power CO 2 proposed rule Remanded Primary Plan Regulation expected NAAQS '11 '12 '13 '15 '16 ‘20 '08 '09 '10 '14 Begin PM-2.5 PM-2.5 Next Beginning Cross CAIR SIPs due Begin SIPs due Final New PM-2.5 NAAQS Implement PM-2.5 State Air Pollution Phase I (‘06) CAIR (‘97) Rule for Designations CSAPR NAAQS Rule & NOx Caps Annual Phase I CCBs Seasonal Revision CAMR & SO 2 Cap Annual HAPS MACT Begin Compliance HAPS MACT Mgmt NOx Delisting NOx Cap Compliance with final rule Requirements under Compliance 3 yrs Rule vacated HAPs MACT Proposed Cross State Air expected Final CCB Rule after final rule proposed Rule for CCBs Pollution Rule (ground water Final EPA rule Management monitoring, double Nonattainment 316(b) proposed monitors, closure, Designations CO 2 rule expected dry ash conversion) PM 2.5 Ash Hg/HAPS 4 4 RELIABLE • AFFORDABLE • SUSTAINABLE -- adapted from Wegman (EPA 2003) Updated 2.15.10
5 RELIABLE • AFFORDABLE • SUSTAINABLE
Of Course, It’s Easy 6 6 RELIABLE • AFFORDABLE • SUSTAINABLE
Understanding Impacts • Understanding Central Florida’s Customer Base • OUC is customer-owned. There are no Stockholders • Most Reliable Vertically Integrated Utility in the State of Florida 7 7 RELIABLE • AFFORDABLE • SUSTAINABLE
Understanding Impacts (cont.) • Zero stormwater discharge to waters of the United States • 6% efficiencies already in place. Units come off-line according to EPA’s 2025 Policy Case • Utilization of landfill gas displacing coal • Two pipelines into Florida • Proposed third pipeline to be constructed by IOU • Hurricane season realities from the 2004-2006 Hurricane Season 8 8 RELIABLE • AFFORDABLE • SUSTAINABLE
UNDERSTANDING IMPACTS (CONT.) • Newest of Florida Coal Plants would be retired with stranded costs due to age and improvements to meet Section 112 requirements • Florida is an island in regard to Transmission • No new Nuclear under construction • 20% Solar Capacity Factor • OUC has no authority to set rules outside our generation abilities • FDEP will have to seek legislative ratification to set new rules for Building Blocks 3 & 4 • Results in a 40-45% rate increase for OUC ratepayers 9 RELIABLE • AFFORDABLE • SUSTAINABLE
Emission Formula ¡ Overall emission rate change 1,200 lbs CO 2 /MWh 740 ¡lbs ¡CO 2 /Mwh ¡ 10 RELIABLE • AFFORDABLE • SUSTAINABLE
2020 Cliff ¡ 11 RELIABLE • AFFORDABLE • SUSTAINABLE
Suggestions ¡ • Work ¡with ¡States ¡to ¡Extend ¡the ¡Coal ¡Power ¡ Plant ¡dura?on ¡out ¡to ¡each ¡plant’s ¡capital ¡life ¡ cycle ¡ • Allow ¡for ¡real ¡construc?on ¡starts ¡and ¡limited ¡ labor ¡pool ¡for ¡new ¡construc?on. ¡ ¡Possibly ¡ use ¡date ¡of ¡plant ¡construc?on ¡to ¡set ¡a ¡ priority ¡ 12 RELIABLE • AFFORDABLE • SUSTAINABLE
Coal-Burning Power Plant Countdown ¡ 13 RELIABLE • AFFORDABLE • SUSTAINABLE
Questions? 14 RELIABLE • AFFORDABLE • SUSTAINABLE
15 RELIABLE • AFFORDABLE • SUSTAINABLE
Recommend
More recommend
