The Massachusetts Approach to Power Plant Clean-upPolicy Making and Standards Setting to Reach Clean Air

Sonia Hamel Massachusetts Executive Office of Environmental Affairs

Presentation to the National Governor’s Association Center for Best Practices Conference; Taking the Lead:

State Innovations to Reduce Greenhouse Gases

Air quality issues to be addressed

• Climate Change

• Acid Deposition

• Mercury Emissions and other metals

• Nitrification and eutrophication

• Ozone

• PM 2.5

• Regional Haze

• Visibility

Massachusetts Approach: Integrate policies across programs

• 4 Pollutant Bill (addressed here)• Green Restructuring policies (Renewables Portfolio

Standards, Renewable Trust and Efficiency Funds, New Siting Rules for Clean Plants, Emissions Disclosure for consumers)

• Section 126 petition

• SIP Call and OTC NOx MOU for the northeast

• Generation Information System

Massachusetts Integrated 4 Pollutants into one Regulation

• Commonsense but ground-breaking• 4 Pollutant regulation sets comparable air

emission standards, based on electric output• Annual NOx limits address deposition, • Make significant additional sulfur reductions

beyond Clean Air Act, • First Mercury controls for power plants and • First CO2 regulations nationally

These facilities need additional regulation because their emissions are responsible for:

• 48% of the sulfur dioxide (SO2) emissions in the

state and 99% of the SO2 emissions from power

plants in our state;

• 20% of the NOx emissions in the state and 80% of

the NOx emissions from power plants in state;

• 87% of the carbon dioxide (CO2)emissions from

power plants in state;• 30% of the mercury emissions in the state.

Massachusetts 1996 SO2 EmissionsSectoral Breakdown

On-Road

6%

Other Electric

Generation

1%

Area

34%

Aff ected

Facilities

48%49

Other Point

11%

Off Road

1%

Comparison of Output-based NOx Emission Rates

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

Typical ActualCoal

(Mt. Tom,Somerset)

Typical ActualOil

(Mystic)

FederalStandard forNew Utility

Boilers

Basis forProposed

Annual Cap

Typical ActualGas

(New Boston)

7.28 O3 seasoneffective

allocation rate

RecentlyPermitted Gas

(ANPBellingham)

lbs

NOx/

MW

h

Comparison of Output-based SO2 Emission Rates

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

20.00

Salem Mt. Tom Somerset Brayton Canal Mystic Basis forProposed

Annual Cap

New Boston

lbs

SO2/

MW

h ba

sed

on '9

7 ac

tual

Mercury Clean-up Requirements

• Beginning immediately, the plant owners must begin stack testing for mercury and reporting these results to the DEP.

• By December 1, 2002, the DEP will complete an evaluation of technology options for mercury control, in accordance with the regional Mercury Action Plan.

• Within six months of completing this feasibility evaluation, the DEP will propose emissions standards for mercury, to be met by October 1, 2006.

CO2 Emissions and Clean-up

Requirements

• The six facilities covered under the regulation are responsible for 87% of the CO2 emissions from in-

state power plants.

• The average annual CO2 emission rate for a new

power plant is 760 lbs per mega-watt hour;

• the average annual CO2 emission rate from the six

facilities is nearly 2,000 lbs per mega-watt hour.

CO2 Emissions and Clean-up

Requirements (cont.)

• The rule will both cap total CO2 emissions and

create an emission standard of 1,800 pounds of carbon dioxide per megawatt-hour for these old plants. The standard represents a reduction of 10% below the current average CO2 emissions rate

(as measured by the average of 1997-99 output). (We do not advocate this as an ideal standard, merely as 10% below existing rate.)

CO2 Emissions and Clean-up

Requirements (cont.)• The new standards can be met either by increased

efficiency at the plant or by the purchase of credits from other CO2 reduction programs, provided that the DEP determines that such reductions are real, surplus, verifiable, permanent, and enforceable.

• DEP is creating an emissions trading program for the exchange of these credits during 2002. (First stakeholder meeting at the end of January).

8-hr O3 Exceedance Days & Total Exceedances 1987-1999 Ozone exceeded the 8-hour standard (0.085 ppm)

748059 61

243

82 84 98136

397581 85

2420 2326 24 121522 2021 2043 22

050

100150200250

1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

Year

Day

s

# Exceedances

# Exceedance Days

1-hr Ozone exceedances are down but 8-hour readings are still a problem

Ozone exceedences regarding the 1-hour standard(0.125 ppm)

101

9

30

1114 12

367 18 10 17

2 68 6 9 49

6 82 4 2

0

20

40

60

80

100

1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

Year

Day

s

# Exceedances

# Exceedance Days

35

4

What do the Regulations require?

• Facilities must meet overall limits of 1.5 lbs./MWh for NOx and 3.0 lbs./MWh for SO2

• This represents approximately a 50% reduction in NOx emissions over all other current requirements and

• a 53% to 74% reduction in SO2.

What do the Regulations require? (cont.)

• Reductions of NOx beginning as early as 2003 and being completed by 2008.

• Reductions in mercury by the maximum amount feasible with state of the art equipment

• A cap on CO2 emissions today and a 10%

reduction in CO2 emissions through

efficiency changes or the purchase of offsets by 2006/8.

Summary of Compliance Paths and Dates

Emission Standard Standard Pathway

Compliance Dates

Repowering Pathway Compliance Dates

NOx 1.5 lbs. Oct. 1, 2004 Oct. 1, 2006

SO2 6.0 lbs. Oct. 1, 2004 Oct. 1, 2006

SO2 3.0 lbs. Oct. 1, 2006 Oct. 1, 2008

CO2 1800 lbs./MWhr annual avg. Oct. 1, 2006 Oct. 1, 2008

Related Policy ObjectivesObtain the benefits while increasing the total

electrical generating capacity of these 6 facilities by almost 50% through the addition of several new units at these facilities (to approximately 2200 MW).

Prevent pollution by encouraging companies to reach emissions targets by investing in cleaner, more efficient energy generation.

Allow us to continue pushing for reduction strategies to reduce ozone transport (clean hands principle).

1999 Summer NOx Emissions from Electric Utilities

Source: Preliminary Emissions Data from US EPA

0

50

100

150

200

250

NESCAUMRegion

IL IN KY NC OH PA WV

1999 S

um

mer

NO

x (

1000 t

on

s)

NOx: A Regional Problem• Midwestern coal- and oil-fired electric

generators are a major source of NOx

• Midwest NOx emissions dwarf eastern emissions and contribute to the ozone problem in the Northeast

• Reducing NOx levels regionally reduces ozone levels regionally

• Massachusetts emissions affect coastal Maine and cause exceedances there

Previous CO2 Offset Requirements

There is an offset requirement (1-3% of the 20-Year CO2 emissions at $1.50 per ton) - contributions to cost-effective programs for CO2 mitigation.

• Programs are selected in consultation with the Energy Facilities Siting Board.

• A pump-priming mechanism for future offsets.• Plants nearing completion will generate $3 million

to fund cost-effective CO2 mitigation projects, as an offset for their emissions.

Summary and Implementation

• Plans for each of the plants were filed by December 31, 2001.

• Public review of all plans now underway

• Mercury testing is underway.

• CO2 trading group will meet to begin to develop rule on January 30th