Worldwide Pollution Control Association

Transcription

1 Worldwide Pollution Control Association WPCA- Southern Company Mercury Seminar October 30-31, 2012 All presentations posted on this website are copyrighted by the Worldwide Pollution Control Association (WPCA). Any unauthorized downloading, attempts to modify or to incorporate into other presentations, link to other websites, or to obtain copies for any other purposes than the training of attendees to WPCA Conferences is expressly prohibited, unless approved in writing by the WPCA or the original presenter. The WPCA does not assume any liability for the accuracy or contents of any materials contained in this library which were presented and/or created by persons who were not employees of the WPCA. Visit our website at

2 Environmental Regulatory Update Sarah S. Markham, P.E. October 30, 2012 Mercury Seminar, Birmingham, AL

3 Overview Southern Company Environmental Program Current Industry Challenges MATS Litigation and Reconsideration Timeline Main Issues Other Air Regulatory Drivers

4 Percent Change from 1990 Levels * Nominal M$ Southern Company Emission Reductions Historical through 2011, Base Year % 80% $8.3B $9,000 $8,000 60% 41% $7,000 40% 20% 30% $6,000 $5,000 0% $4,000-20% -40% -56% $3,000-60% -72% $2,000-80% -76% $1, % $0 SO2 Emissions Southern Company Generation Population Cumulative Environmental Capital Spending NOx Emissions Mercury Emissions* Carbon Dioxide Emissions * For Mercury, Percent Change from 2005 Levels

5 Challenges Facing the Industry Considerations Federal Policy MATS timing starts the decisions CSAPR/CAIR/NAAQS CCBs/Ash Water GHG Renewables Environmental justice Permitting Litigation Commodity Costs Natural Gas Coal Construction Issues Cost Uncertainty Labor Cost/Availability Materials NIMBY (Transmission issues) Technology Emission Controls Renewable Advancements CCS Disruptive Technology Reserve Margins Other Issues Decisions Control/Retrofit Coal Units? Retire Coal Units? Add Transmission? Install Gas? Invest in Energy Efficiency? Build Nuclear? Invest in Renewables? Hedge Fuel Prices? Challenges and Risks Coal prices Natural gas prices NSR/PSD permit requirements MATS compliance Extensions Final future environmental rules Compliance order requirements Reliability Customer impacts Regardless of business model, utilities are facing critical decisions with tremendous uncertainty.

6 Possible MATS Litigation & Reconsideration Schedule 30 Petitions for Review White Stallion Energy Center, LLC v. EPA New Source Severed 6/28 Expedited Scheduled July 27- Oct. 4 Abeyance 9/12 Summer 2013 Oral Argument (Decision 2014) 3 state (24 states total) 24 industry 3 private party Existing Source Schedule 8/24 Oct. 23- April 8 Oral Argument Decision Petitions for Recons. 1 state 17 industry New Source Granted 7/20 Stay 8/2 3 Month Admin. Stay Final Rulemaking March enviros Existing Source Issues??????

7 Major Issues Raised in Reconsideration Petitions Industry Startup and shutdown definitions a work practice standards Unachievable new source limits Appropriate and necessary finding Facility averaging for Hg Various errors in the rule Vendors Inability to accurately measure Hg, PM, and/or HCl for new units Environmental Groups Filterable PM standard Use of parametric monitoring for PM Facility averaging provisions Use of work practice standards for organics

8 Major Issues Raised in Existing Source Litigation Industry and States Appropriate and necessary finding Failure to distinguish area and major sources Existing source Hg standard Startup and shutdown work practice standards Refusal to set health-based standards for acid gases Denial of delisting petition Subcategories related to CFB, lignite, and pet-coke Public power specific issues Environmental Groups Facility wide emissions averaging alternative Monitoring for non-mercury metal HAPs

9 Possible MATS Litigation & Reconsideration Schedule 30 Petitions for Review White Stallion Energy Center, LLC v. EPA New Source Severed 6/28 Expedited Scheduled July 27- Oct. 4 Abeyance 9/12 Summer 2013 Oral Argument (Decision 2014) 3 state (24 states total) 24 industry 3 private party Existing Source Schedule 8/24 Oct. 23- April 8 Oral Argument Decision Petitions for Recons. 1 state 17 industry New Source Granted 7/20 Stay 8/2 3 Month Admin. Stay Final Rulemaking March enviros Existing Source Issues??????

10 Other Air Regulatory Highlights Cross-State Air Pollution Rule (SO 2 and NO X reductions) Final rule in July 2011 with compliance slated for 2012 August 21, 2012 CSAPR vacated by D.C. Circuit Court, EPA ordered to continue administering CAIR, and the proceeding remanded to EPA EPA appealed October 5; Petitioner replies due Nov. 16 Mandate has not issued National Ambient Air Quality Standards (NAAQS) Next Ozone NAAQS in 2014; EPA recommending a stringent standard New PM NAAQS in December 2012 Stringent SO 2 NAAQS finalized in 2010

11 Questions?