EPA Regulatory Primer on GHG Regulations

8/12/2019 EPA Regulatory Primer on GHG Regulations

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555J\MNew Source Performance Standards (NSPS) for Greenhouse Gases (GHGs) from

new fossil sources, burning at least 50% coal or 50% natural gas

Coal-Fired Units: less than 1,100 lbs CO2/MWh

Reference: New Super Critical: 1,800-2,000 lbs CO2/MWh

Coal may comply with ~ 40% capture

Gas NGCC:1,000 lbs CO2/MWh

Gas simple cycle 1,100 CO2/MWh

- Compliance is on a 12 month rolling basis- Captured CO2may be sent for geologic storage- EOR may be used with appropriate reportingTimeline:Proposed Regulation: November, 2013

Final Regulation expected November 2014 January 2015 (1 year after proposal)Note: 111(b) must be final before 111(d) is final!


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555J$Mc 72YY%#1Approach:

1.) Develop Building Blocks to guide emission reductions2.) Set state targets for 20303.) Request State implementation plans by 2016-2017

4.) Gradual reduction over 12 years, with binding cap in 2030

EPA defines the best system as the Electricity system as a whole.

Therefore, new non-emitting sources can be used

EPA is seeking to provide as much flexibility to states as possible to

develop individual plans

Published concurrently with Modified source rule (Modified sources under111(b). Note that this counts as a precursor to 111(d) regulations, as does

the New Source Performance Standards, also under 111(b)

111(d) has only been used 5 times before for smaller rules. This is new

legal territory for EPA.


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State Implementation Plans:

- SIPs due in June, 2016, unless states opt in to a multi-state approach- Multi-State Plans due in June, 2017.- Plans will be evaluated based on 4 criteria:

- Enforceable Measures- Emission Performance- Quantifiable and Verifiable Emission Performance- Reporting and Corrective Action

EPA will be publishing guidelines to aid states in developing SIPs

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Draft Rule: Today! (June 2)

Final NSPS: November 2014 January 2015

Final Rule: June, 2015 (Per Presidents Directive)

State Plans: June, 2016

Multi State Plans: June, 2017

Initial Reductions: 2018

SIPs shall set interim goals to assess performance over the time period

from 2018-2030

Binding State Goals: 2030; 3-year rolling average thereafter.

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Class II- Enhanced Oil Recovery: injecting brine, water, steam, polymers, or carbon

dioxide into oil-bearing formations to recover residual oil- Does not cover hydraulic fracturing- Injection and disposal of associated water- Hydrocarbon storage wellsClass VI:- New class of well created for injection of CO2into deep saline formations- Finalized: December, 2010- Reporting, monitoring, and verification methods identified for tracking subsurface

CO2

- First Permit expected: Archer Daniels Midland ARRA project-

CO2Capture from Ethanol facility- Injection of 1 million tons / year

- Can also govern Enhanced Oil Recovery projects when CO2is reduced forpurposes of 111(d)

- Guidance for transition from II to VI recently published


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Cross-Cutting ResearchCrosscutting technology development program

Major Goals: 2016: advance 2ndgen materials, sensors, modelingtechnologies to applied programs

2020: develop distributed communication sensor networks(transformational tech.)

CO2StorageSafe, permanent storage of CO2from power and industry

Major Goals: 2020: technologies and tools available to measure and accountfor 99% of injected CO2

2020: CCS best practices and protocols completed based uponRCSP Phase III activities

CO2Capture and CompressionCost effective capture for new and existing plants

Major Goals: 2016: complete 2nd

gen field tests (~1.0 MW scale)2020: complete 2ndgen pilot tests (10 to 25 MW)

2025: complete transformational tech. field tests (~ 1.0 MW)

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Then

CCS Program Initiated

(1997)

Now

Progress to-Date

Future

CCS Broad Commercial Deployment

CaptureR&D

CO2 capture technologieswere very expensive and

energy intensive with

little insight into potential

pathways for reduction

when applied to fossil

energy plants

Greater confidence in CO2 capturetechnologies costs has been achieved with

emerging developments achieving

reduction to ~$60/tonne captured

Significant pathways to $40/tonnecaptured and below have been identified

and research underway to developtechnologies to MW scale testing.

Advances in multiple CO2separation andcompression technologies critical to

achieving targets.

Scale-up promising technologies in parallelto get on real gas streams.

$40/tonne doable by 2020


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$150+/Tonne(NOAK)

~ $60/Tonne(NOAK)

$40/Tonne(NOAK)

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7"2=],#& E"YQ%&1 7,#O)74% complete;>6,100construction workers on site

! CO2 off-take agreements signed! Lignite mine under development

! Subsystems (water treatment, coolingtowers) to begin pre-commissioning

! Combustion turbine startup: Aug 2013! Gasifier heat-up: Dec 2013

Key Dates

! Project Awarded: January 2006! Project moved to MS: December 2008

! Construction: July 2010! NEPA ROD: August 2010! Operations: May 2014

Kemper County, MS 582 MWe (net) IGCC: 2 Gasifiers, 2 Siemens

Combustion Turbines, 1 Toshiba SteamTurbine

Mississippi Lignite Fuel ~67% CO2capture (Selexol process)3,000,000 tons CO2/year

EOR Denbury Onshore LLC, TreetopMidstream Services LLC

Total Project: $4.12 BillionDOE Share: $270 Million (7%)


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Regulation of NOx, SO2, and Particulate emissions from upwind states

Sets Assurance Provisions within each state, allows limited trading ofemission allowances

Replacement of CAIR

(Clean Air Interstate Rule)

Timeline:Final Regulation: July, 2011Supreme Court ruled in favor of EPA

May signal additional authorityFor 111(d)


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Activated Carbon Injection (ACI): Commercially available technology in use at 100s of units for state mercury limits

Inject activated carbon into flue gas duct & collect particles downstream 12-18 months design, construction, testing; no outage

Dry Sorbent Injection (DSI): Commercially available technology in use at 90 units, primarily for SO2 /SO3

Inject sorbent (hydrated lime, trona, sodium carbonate) & collect particlesdownstream

Shown to reduce acid gases w/particulate controls & some coal types

Limited public data on HCl performance; not yet required to measure/report Some companies question efficacy for HCl MACT limit

Others installed, testing, or announced plans to install for MACT compliance Testing shows some Powder River Basin coal meets HCl limit without any control

9-12 months design / construction, no outage

Existing Wet FGD + Baghouse/Fabric Filter

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EPA Regulatory Primer on GHG Regulations

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