Electric Generation Electric Generation on High Electric on High Electric Demand DaysDemand Days

New Jersey Clean Air CouncilNew Jersey Clean Air Council

Annual Public HearingAnnual Public Hearing

April 1, 2009April 1, 2009

Tonalee Carlson KeyTonalee Carlson KeyNew Jersey Dept. of Environmental ProtectionNew Jersey Dept. of Environmental Protection

22

OverviewOverview

High Electric Demand Day Generation and High Electric Demand Day Generation and Air QualityAir Quality

The Regional EffortThe Regional Effort

The New Jersey ResponseThe New Jersey Response

The Other Pieces of High Electric Demand The Other Pieces of High Electric Demand Day GenerationDay Generation

33

On High Electric Demand On High Electric Demand Days, NODays, NOxx Emissions Emissions

From EGUs Go UpFrom EGUs Go Up

High Electric Demand High Electric Demand Day Generation and Day Generation and

Air Quality :Air Quality :

44

NONOxx Emissions Versus Peak Electricity Demand Emissions Versus Peak Electricity Demand on Ozone and Nonon Ozone and Non--Ozone Ozone ExceedanceExceedance DaysDays

NJNJ--NYCNYC--CTCT--RIRI--SE MASE MA(June 1 (June 1 -- September 15, 2002)September 15, 2002)

Electricity Demand (MW)Source: EPA Region 1

NONOxx Emissions Versus Peak Electricity Demand Emissions Versus Peak Electricity Demand on Ozone and Nonon Ozone and Non--Ozone Ozone ExceedanceExceedance DaysDays

NJNJ--NYCNYC--CTCT--RIRI--SE MASE MA(June 1 (June 1 -- September 15, 2002)September 15, 2002)

NONOxx Emissions Versus Peak Electricity Demand Emissions Versus Peak Electricity Demand on Ozone and Nonon Ozone and Non--Ozone Ozone ExceedanceExceedance DaysDays

NJNJ--NYCNYC--CTCT--RIRI--SE MASE MA(June 1 (June 1 -- September 15, 2002)September 15, 2002)

Electricity Demand (MW)Source: EPA Region 1

High Electric Demand Days

Correspond with High Ozone Days

55

The Mix Of Generating The Mix Of Generating Units in Operation Units in Operation

Varies Varies By Day And RegionBy Day And Region

66

NJ Electrical Generating UnitsNJ Electrical Generating Units Ozone Season Use Ozone Season Use

2005-072005-07

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Mercer GeneratingStation7001

Glen Gardner8001 Cedar Station4001 EFS ParlinHoldings, LLC1001

Essex12001 Linden GeneratingStation2201

AES Red Oak3 E F Kenilworth,Inc.2001

Not all units run every dayNot all units run every day

Pe

rce

nta

ge

Op

era

ted

Du

rin

g O

zon

e S

ea

so

n

BaseloadBaseload

Peakers - Peaking UnitsPeakers - Peaking Units& Load Following Boilers& Load Following Boilers

77

NO

x E

mis

sio

n f

rom

Nj/

NY

EG

Us

(to

ns)

Fuel Types Comprising the Daily NOFuel Types Comprising the Daily NOxx Emissions Emissions

sorted by NOsorted by NOxx Mass from NJ & NYC EGUs Mass from NJ & NYC EGUsJune 1 - September 15, 2005June 1 - September 15, 2005

In New York City and New Jersey the source of NOIn New York City and New Jersey the source of NOxx is is

primarily gas and diesel fired combustion turbinesprimarily gas and diesel fired combustion turbines

Source of high electric demand day NOSource of high electric demand day NOxx emissions is emissions is

different throughout the OTRdifferent throughout the OTR

88

NO

x E

mis

sio

n f

rom

New

En

gla

nd

EG

Us

(to

ns)

Fuel Types Comprising the Daily NOFuel Types Comprising the Daily NOxx Emissions Emissions

sorted by NOsorted by NOxx Mass from New England EGUs Mass from New England EGUsJune 1 - September 15, 2005June 1 - September 15, 2005

In New England the source is primarily residual oil fired In New England the source is primarily residual oil fired load following boilersload following boilers

99

Baseload EGUs Getting CleanerBaseload EGUs Getting CleanerBut Emissions on HEDD Remain HighBut Emissions on HEDD Remain High

Baseload unitsare getting

cleaner

Delta getting larger--HEDD units have a more profound effect

8/7/2002 6/4/2005 D 8/12/2002 7/26/2005992

Typical Summer High Electric NOx Emissions (TPD)

551

1615

1349

623

798

Emissions for units In 6 States: CT,NY,NJ,PA,DE,MD

1010

The Air Quality ImplicationsThe Air Quality Implications

1111

High Electric Demand Day UnitsHigh Electric Demand Day UnitsAdjusted in the Sensitivity ModelingAdjusted in the Sensitivity Modeling

State Facilities UnitsCT 12 56DE 1 4MA 6 37MD 5 16ME 2 4NJ 20 119NY 11 97PA 11 51

Total 68 384

Facilities with High Electric Demand Day Units

1212

Maximum 8Hr Ozone Reductions Maximum 8Hr Ozone Reductions (ppb)(ppb) from from High Electric Demand Day UnitsHigh Electric Demand Day Units

NONOxx = 0.1 lb/ mmBtu Modeling Episode- Aug 1-15, 2002 = 0.1 lb/ mmBtu Modeling Episode- Aug 1-15, 2002

The Regional EffortThe Regional Effort

1414

Process & AccomplishmentsProcess & Accomplishments

Over a year long, multiple meeting Over a year long, multiple meeting process process (2006-2007)(2006-2007)

Robust stakeholder process Robust stakeholder process (RTOs, PUCs, (RTOs, PUCs, Generating Co., EPA, State Staff)Generating Co., EPA, State Staff)

Reductions formalized in OTC MOUReductions formalized in OTC MOU

The HThe Highigh E Electriclectric D Demand emand DDayay RuleRule

The New Jersey The New Jersey Response:Response:

Signed by Commissioner 3/20/09Signed by Commissioner 3/20/09

1616

ImplementationImplementationTwo PhasesTwo Phases

Short TermShort Term– Reductions from: 5/19/2009 – 9/30/2014Reductions from: 5/19/2009 – 9/30/2014

Reductions to aid attainment of the 1997 8-hour ozone standardReductions to aid attainment of the 1997 8-hour ozone standard

Allow electric generating companies to develop and implement Allow electric generating companies to develop and implement long term strategy to meet 2015 performance standardslong term strategy to meet 2015 performance standards

– Based on OTC MOU Based on OTC MOU (NJ committed to 19.8 TPHEDD (NJ committed to 19.8 TPHEDD reductions relative to the 7/26/05 base HEDD)reductions relative to the 7/26/05 base HEDD)

– Applies to each HEDD unit that:Applies to each HEDD unit that:For CTs: not controlled by water injection or SCRFor CTs: not controlled by water injection or SCR

For boilers: not controlled by SCR or SNCRFor boilers: not controlled by SCR or SNCR

For all: had NOx emission rate of For all: had NOx emission rate of ≥ 0.15 lbs/MMBTU≥ 0.15 lbs/MMBTU

1717

Implementation - Short Term - continuedImplementation - Short Term - continued

– The owner or operator will prepare a 2009 HEDD The owner or operator will prepare a 2009 HEDD Emission Reduction Compliance Demonstration Emission Reduction Compliance Demonstration ProtocolProtocol

Applicable measures to obtain required emission Applicable measures to obtain required emission reductions:reductions:

– Control the HEDD unitControl the HEDD unit– Reduction in HEDD unit usageReduction in HEDD unit usage– Control non-HEDD unit Control non-HEDD unit – For duel fueled: combust NG on HEDDFor duel fueled: combust NG on HEDD– Implement:Implement:

energy efficiency measuresenergy efficiency measures

demand response measuresdemand response measures

renewable energy measuresrenewable energy measures– Other measures approved by the DepartmentOther measures approved by the Department

Units in NJ, PA, DE or MD

1818

Long TermLong Term– Performance standards applicable 5/1/2015:Performance standards applicable 5/1/2015:

– Estimated emission reductions in 2015: Estimated emission reductions in 2015: 64 64 TPD (relative to the 7/26/05 base HEDD)TPD (relative to the 7/26/05 base HEDD)

Implementation - Long Term - continuedImplementation - Long Term - continued

HEDD Boilers HEDD Turbines Fuel Type lb/MWh Fuel Type lb/MWh

Coal 1.50 Simple cycle gas 1.00 Heavier than No. 2 fuel oil 2.00 Simple cycle oil 1.60 No. 2 & lighter fuel oil 1.00 Combined cycle gas 0.75 Gas 1.00 Combined cycle oil 1.20 Regenerative cycle gas 0.75 Regenerative cycle oil 1.20 New, reconstructed or modified turbines must meet SOTA, LAER & BACT, as applicable

1919

Rule StatusRule Status

Rule Status:Rule Status:– Final Rule Published in NJ Register: April 20, 2009Final Rule Published in NJ Register: April 20, 2009– Operative Date: May 19, 2009Operative Date: May 19, 2009

Final Rule Document: (after April 20Final Rule Document: (after April 20 thth) ) http://www.nj.gov/dep/rules/adoptions.htmlhttp://www.nj.gov/dep/rules/adoptions.html

Regional Record: Regional Record: http://www.otcair.org/document.asp?fview=meetinghttp://www.otcair.org/document.asp?fview=meeting

2020

The Other Pieces of High The Other Pieces of High Electric Demand Day Electric Demand Day

GenerationGeneration

2121

RRegionalegional TTransmissionransmission OOrganizations (3)rganizations (3)– ISO-NE, NYISO, PJMISO-NE, NYISO, PJM– Taught us about alerts, electricity distribution, pricing of Taught us about alerts, electricity distribution, pricing of

electricity, demand response, and capacity paymentselectricity, demand response, and capacity payments

GeneratorsGenerators– The parties that operate daily under the requirements of all three The parties that operate daily under the requirements of all three

organizations – environmental, PUC, RTOorganizations – environmental, PUC, RTO– ‘‘Reality’ glueReality’ glue

PPublicublic UUtilitytility CCommissionsommissions– Taught us about energy planning-goals-requirements at the Taught us about energy planning-goals-requirements at the

state levelstate level– In NJ: Energy Master Plan was being developedIn NJ: Energy Master Plan was being developed

2222

HEDD DEP Team MembersHEDD DEP Team Members

Chris SalmiChris Salmi

Tonalee KeyTonalee Key

Tom McNevinTom McNevin

Mike HoganMike Hogan

Yogesh DoshiYogesh Doshi

Danny WongDanny Wong

Shan HeShan He

2323

Additional InformationAdditional Information

2525

StateNOx

(tons per day)Percent Reduction from HEDD Units

CT 11.7 25%DE 7.3 20%MD 23.5 32%NJ 19.8 28%NY 50.8 27%PA 21.8 32%

Total 134.9

Regional Emission Reductions in Regional Emission Reductions in the OTC MOUthe OTC MOU