HB , Clean Air/Clean Jobs Act

Transcription

1 National Governors Association Governors Energy Advisors Policy Institute HB , Clean Air/Clean Jobs Act Martha E. Rudolph Director of Environmental Programs Colorado Department of Public Health and Environment Rocky Mountain National Park 1

2 Passed in 2010 Stated Purpose of Act: Clean Air/Clean Jobs Act A coordinated plan of emission reductions from coal-fired power plants will enable Colorado rate-regulated utilities to meet the requirements of the federal [Clean Air] act and protect public health and the environment at a lower cost than a piecemeal approach. A coordinated plan of reduction of emissions for Colorado s rateregulated utilities will also result in reductions in many air pollutants and promote the use of natural gas and other lowemitting resources to meet Colorado's electricity needs, which will in turn promote development of Colorado's economy and industry. Great Sand Dunes National Park & Preserve 2

3 How was purpose achieved? CACJ required Public Service: to submit to the PUC an emission reduction plan addressing a minimum of 900 megawatts of its coal-fired generation resulting in full implementation no later than December 31, 2017 Prior to filing the plan, Public Service: was required to consult and work with CDPHE to design a plan to meet the current and reasonably foreseeable requirements of the federal [Clean Air] act and state law in a cost-effective and flexible manner. 3

4 How was purpose achieved? The Public Utilities Commission: was required to consider whether the CDPHE found that the plan is likely to achieve at least a seventy to eighty percent reduction in annual NOx emissions was prohibited from approving the plan unless the CDPHE determined that the plan is consistent with the reasonably foreseeable requirements of the CAA CACJ also included acknowledgement of and expectations around process to include appropriate elements from the plan into the Regional Haze SIP due to EPA January,

5 Timing March 15, 2010 CACJ introduced into the House April 8, 2010 CACJ passed both House and Senate On April 19, 2010 CACJ signed into law The PUC opened its docket on May 7, 2010 Public Service submitted its plan on August 13, 2010 PUC was required to review the plan and enter an order approving, denying or modifying the plan by December 15, 2010 Air Quality Control Commission scheduled hearing on Regional Haze SIP - December 16,

6 Final Plan Public Service submitted multiple scenarios but identified its preferred plan PUC adopted a modified plan Regional Haze elements of PUC s adopted plan were adopted by the Air Quality Control Commission and submitted to EPA 6

7 Final Adopted Plan Arapahoe Unit 3: Shutdown by 12/31/2013 Arapahoe Unit 4: Natural Gas Operation by 12/31/2014 Cherokee Unit 1: Shutdown by 7/1/2012 Cherokee Unit 2: Shutdown by 12/31/2011 Cherokee Unit 3: Shutdown by 12/31/2016 Cherokee Unit 4: Natural Gas Operation by 12/31/2017 Pawnee NOx: 0.07 lb/mmbtu (SCR) by 12/31/2014 SO2: 0.12 lb/mmbtu (LSD) by 12/31/2014 Valmont Unit 5: Shutdown by 12/31/2017 SO2: 21,493 tons per year NOx: 15,995 tons per year 7

8 How did CACJ pass? Worked on for over a year Identified key players and what it would take to get them to the table Natural Gas preference for natural gas Environmental groups reduction in emissions + prior natural gas regulations Public Service pre-approved cost recovery + longterm gas contract Legislature jobs + economy + public health & environment 8

9 How did CACJ pass? Creates legislation that directs PUC considerations Need to meet reasonably anticipated future requirements Minimum size 900 megawatts Goals: 70-80% reduction in Nox Public health and environment protections Economics and job creation Short timeframe: Regional Haze deadlines Economics cost savings and jobs Colorado gas Public health benefits Minimize opposition 9

10 Current and Foreseeable Air Quality Requirements Applicable to Coal-Fired Plants ( ) Near Term Regional Haze, BART (SO2, NOx) Regional Haze, Reasonable Progress (SO2, NOx) Ozone Non-Attainment (Primary Stnd. 8/31/2010) (NOx) NO2 Primary Standard recently revised and tightened by EPA (4/2010) (NOx) Nitrogen Deposition Reduction Plan, Colorado/EPA/Nat l Park Service (NOx) Colorado Mercury Reduction Regulation for EGUs (2012, 2014, 2018) (Hg) Carbon Dioxide, emissions reporting regulation (2010) (CO2) 10

11 Current and Foreseeable Air Quality Requirements Applicable to Coal-Fired Plants ( ) Longer Term (scope and impact of each is uncertain) SO2 Primary Standard to be revised by EPA (final 6/2010) (SO2) Fine Particulate (PM2.5) Standard to be revised by EPA (final 7/2011) (SO2, NOx, PM) Carbon Monoxide Primary Stnd. to be revised by EPA (final 5/2011) (CO) MACT for Utilities in preparation, EPA (final 11/2011) (Hg, Acid Gases, HAPs) Greenhouse Gases (CO2) Expected regulation under the Clean Air Act (1/2011) PSD, Title V, NSPS Federal program requirements depending upon Congressional action Price for carbon emissions ($/ton) 11

12 Electric Generating Unit Repowering Coal-Fired Power Plant (550 MW) NOx 9,326 tons/year SO2 5,837 tpy CO 411 tpy VOC 48 tpy PM 173 tpy Hg 106 pounds Pb 63 pounds CO2 4.3 million tpy Natural Gas-Fired Power Plant (550 MW)* NOx 355 tons/year SO2 13 tpy CO 177 tpy VOC 20 tpy PM 59 tpy Hg 0 Pb 0 CO2 1.2 million tpy * 75% Capacity Factor 12

13 How to repeat? Clear Purpose Key players Cross-section of interests with recognized incentives Tight timeframes to get it done Clear legislative direction Harness public interest Clean Air Clean Jobs Economics Jobs Local resource Public health and environment Older facilities 13

14 Questions? Maroon Bells-Snowmass Wilderness Area 14