EPA ESPS for OUC Chip Merriam Vice President - Legislative, - - PowerPoint PPT Presentation

RELIABLE • AFFORDABLE • SUSTAINABLE

EPA ESPS for OUC

Chip Merriam

Vice President - Legislative, Regulatory & Compliance July 8, 2015

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RELIABLE • AFFORDABLE • SUSTAINABLE

RELIABLE • AFFORDABLE • SUSTAINABLE

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Emission Changes

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Possible Timeline for Environmental Regulatory Requirements for the Utility Industry

Ozone PM2.5

'08 '09 '10 '11 '12 '13 '14 '15 '16 ‘20

Beginning CAIR Phase I Seasonal NOx Cap HAPs MACT proposed rule Implement CSAPR Seasonal NOx Begin CAIR Phase I Annual SO2 Cap Beginning Cross State Air Pollution Rule & NOx Caps Next PM-2.5 NAAQS Revision Next Ozone NAAQS Revision SO2 Primary NAAQS SO2/NO2 Secondary NAAQS NO2 Primary NAAQS

SO2/NO2

New PM-2.5 NAAQS Designations CAMR & Delisting Rule vacated

Hg/HAPS

Final EPA Nonattainment Designations PM-2.5 SIPs due (‘06) Proposed CAIR Replacement Rule Expected HAPS MACT final rule expected CAIR Vacated HAPS MACT Compliance 3 yrs after final rule CAIR Remanded

CAIR/ CSAPR

Begin CAIR Phase I Annual NOx Cap PM-2.5 SIPs due (‘97) 316(b) proposed rule expected 316(b) final rule expected 316(b) Compliance 3-4 yrs after final rule Effluent Guidelines proposed rule expected

Water

Effluent Guidelines Final rule expected Effluent Guidelines Compliance 3-5 yrs after final rule Waters of The US final rule Begin Compliance Requirements under Final CCB Rule (ground water monitoring, double monitors, closure, dry ash conversion)

Ash

Proposed Rule for CCBs Management Final Rule for CCBs Mgmt Final CAIR Replacement Rule Expected Compliance with Cross State Air Pollution Rule

CO2

CO2 Regulation Reconsidered Ozone NAAQS Clean Power Plan Revised Ozone NAAQS

• - adapted from Wegman (EPA 2003) Updated 2.15.10

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Of Course, It’s Easy

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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

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• Zero stormwater discharge to waters of the

United States

• 6% efficiencies already in place. Units come
• ff-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

Understanding Impacts (cont.)

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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

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Overall emission rate change

1,200 lbs CO2/MWh

740 ¡lbs ¡CO2/Mwh ¡

Emission Formula ¡

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2020 Cliff ¡

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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 ¡

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Coal-Burning Power Plant Countdown ¡

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Questions?

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