Ozone and Greenhouse Gases
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1 6/12/ Ozne and Greenhuse Gases The Cming Regulatry Strm Rss Eisenberg Vice President, Energy & Resurces Plicy Natinal Assciatin f Manufacturers reisenberg@nam.rg June 1
2 6/12/ 2
3 6/12/ Energy Bm Driving Manufacturing Renaissance In 2012, supprted mre than 2.1 millin jbs and cntributed $284 billin t GDP. By 2020 will supprt mre than 3.3 millin jbs and 3.9 millin jbs by Increase value f utput fr manufacturing f $258 billin in 2020, and $328 billin in annunced manufacturing plants representing a cumulative investment f $91 billin Manufacturers clsing factries in ther cuntries and returning t the United States 3
4 $/thusand cubic feet c/kwh 6/12/ Energy Bm Impact n Manufacturers Energy Csts U.S. Natural Gas Industrial Price Average U.S. Retail Price f Elecicity Industrial Cnsumers Surce: EIA 4
5 6/12/ EPA Rulemaking Timeline Sufficiently Sensitive Test Refinery Risk Rule Final 5/ Hazardus Waste Generatr Update NPDES Electrnic Reprting 12/ Water Quality Clarificatin Undergrund Strage Tanks Final Rule 5/ GHG Reprting Rule Effluent Limitatin Guidelines fr Cnstructin 2/ Ozne (2008 NAAQS) SIPs SIPs submittal required 5/ SO2 NAAQS Prpsal 3/ Fam MACT Hydraulic Fracturing TSCA Reprting 8/ Hazardus Waste Exprt-Imprt Revisins Rule Hazardus Waste Exprt Cathde Ray Tubes Clean Water Act Jurisdictin Rule Definitin f Slid Waste Rule RFS Requirement Final June Frmaldehyde Emissins fr Wd Prducts 9/ Drinking Water Standards Perchlrate 2015 Methds Update Rule Final 3/2015 SO2 SIPs SIPs submittal required by 1/2015 NPDES Lead NAAQS Update 2015 Hydrgen Chlride Emissin Mnitring Systems 2/2015 Recreatinal Vessel BMP 9/2015 MDI and TDI; Data Reprting under TSCA 1/2015 Aerspace Risk Rule 2/2015 Ozne NAAQS Final 11/2015 Review fr Ferrallys Prductin Rule 3/2015 Refinery Risk Rule Cmpliance 1/2015 Biler MACT fr Existing Surces Cmpliance Deadline 1/2016 CERCLA Financial Hard Rck Mining Prpsed Rule 8/2016 Carbn Mnxide NAAQS 1/2018 NO2 NAAQS Final 6/2017 Drinking Water- Lead and Cpper Rule 3/ PM NAAQS Final Tier 3 Gasline 2/ Biler GACT Cmpliance Deadline 3/ Effluent Limitatins Guideline Steam Electric Pwer Plants 5/ Kraft Mills Pulp NSPS 3/ Cling Water Intake Revisins t Petrleum and Gas GHG Reprting 8/ NSPS Review NSPS Grain Elevatrs RFS 2015 Requirement Prpsed June Ozne Car Air Cnditining Hazardus Waste Pharmaceuticals 8/ NSPS Electrnic Reprting Discharge Standards fr Armed Frces Vessels 10/ Fiberglass NESHAP Risk Rule 2/ Advanced Rulemaking fr Frest Rad Discharges 1/ Txic Release Inventry Nnylphenl PCB Other Uses GHG NSPS fr Existing Pwer Plants Prpsed June GHG NSPS fr New Pwer Plants Late NSPS EG fr Municipal Slid Waste Landfills 1/2015 Refinery NSPS GHG Rule 1/2015 Secndary Lead Smelting NESHAP Risk Review 2015 Utility Electric Generatrs NSPS GHG 2015 Standards f Perfrmance fr GHG Emissins Existing Surces 6/2015 Guidelines fr Testing Prcedures under the Clean Water Act 5/2015 Phsphric Acid NESHAP Risk Review 1/2015 Aluminum Risk Rule 6/2015 NESHAP frm ffsite Waste and Recvery Operatins 3/2015 Lead Renvatin fr Buildings 7/2015 Shale Gas Effluent Limitatin Guidelines Prpsed Rule 2016 Drinking Water Standard VOCs 6/2016 PM2.5 (2012 NAAQS) SIPs SIPs submittal required 6/2016 RFS Requirements Secndary NO2/SO2 NAAQS 1/2018 Air Quality Regulatins Fuel Regulatins GHG Regulatins Air Txic Regulatins Hazardus Materials Regulatins Water Quality Regulatins Updated March 5
6 6/12/ Greenhuse Gases: Overview Three Key Gals 17% reductin in carbn emissins frm 2005 t 2020 Prepare United States t adapt t climate change Take leadership rle in internatinal climate change effrts Wide Range f Issues Addressed Cmmitment t reduce carbn frm new and existing utilities Gvernment purchase and installatin f renewable energy Incentives and guarantees fr renewable energy Investments in infrastructure fr adaptatin 6
7 6/12/ Greenhuse Gases: Schedule f Regulatin NSPS fr New Fssil Fuel-Fired Pwer Plants Prpsed 9/20/13; cmment perid clsed May Three separate standards: new large natural gas plants, 1,000 lb/mwh; new small natural gas plants, 1,100 lb/mwh; new cal-fired pwer plants, 1,100 lb/mwh T meet cal standard, partial CCS will be required; cnventinal cal-fired pwer plants are essentially banned ging frward NSPS fr Existing Fssil Fuel-Fired Pwer Plants Prpsed 6/1/14; Final rule expected 6/1/15 111(d) SIP submittals due 6/30/2016; states may request ne-year extensin fr singlestate implementatin plans, tw-year extensins fr multi-state implementatin plans Massively cmplicated regulatin that ultimately requires 30 percent reductins frm 2005 levels by 2030 Pst-2015: Refineries, Nat Gas, industrials 7
8 6/12/ 111(d) Rule verview Determines each state s reductins by the state s capacity t implement fur blcks f reductin strategies: Blck 1: Reduce carbn intensity f cal generatin thrugh heat rate imprvements a 6% acrss-the-bard reductin Blck 2: Replace carbn-intensive cal generatin with existing and under-cnstructin NGCC facilities All NGCC facilities perate at 70% capacity Emissins reductins vary based n current dispatch levels Blck 3: Replace carbn intensive cal generatin with nuclear and renewable energy generatin Nuclear: cmplete all new cnstructin; avid prjected retirement f 5.8% f current fleet Renewable energy: increased generatin t achieve reginal average f current RPS mandates. Blck 4: Reduce demand fr carbn-intensive cal generatin thrugh demand-side efficiency imprvements. Average annual energy efficiency imprvements f 1.5% Then allws states t chse their cmpliance ptins: Inside the fence: nly fssil fuel EGUs are liable fr achievable reductins at the facility thrugh heat rate imprvements, fuel switching, CCS and c-firing Outside the fence: EPA allws states t hld ther entities t be legally respnsible fr actins under the plan that will, in aggregate, achieve the emissin perfrmance level. Includes displacing fssil fuels with renewable and nuclear energy, demand side management, and transmissin and distributin energy efficiency measures. Linking with existing state GHG regimes, such as AB32 (Califrnia ecnmy-wide cap and trade), RGGI (Nrtheast US utility-level cap and trade) and CO Clean Air, Clean Jbs Act Ohi is lking at abut a 22% reductin frm 2012 levels during the interim gal perid ( ) and a 28% percent reductin by Accrding t EPA, Ohi s 2012 emissin rate is 1,850 lbs/mwh gal fr Ohi is 1,338 lbs/mwh EPA prjects PJM t retire 4,622 MW f generating capacity by 2020 under these rules, all cal 8
9 6/12/ (2011 reprting perid) Includes nshre il and gas prductin; natural gas prcessing, transmissin, cmpressin and lcal distributin; ther il and gas systems. Includes prductin/manufacture f adipic acid, ammnia, HCFCs, hydrgen, nitric acid, petrchemicals, sda ash, phsphric acid, titanium dixide, and ther chemicals. Includes fd prcessing, ethanl prductin, undergrund cal mines, electrnics manufacturing. Includes municipal landfills, industrial landfills, wastewater treatment, and slid waste cmbustin. Includes prductin/manufacture f aluminum, irn and steel, magnesium and ther metals. Includes prductin/manufacture f cement, glass, lime and ther minerals. Surce: Envirnmental Prtectin Agency (ghgdata.epa.gv) 9
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11 6/12/ Surce: Envirnmental Prtectin Agency 11
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