Ray Chalmers - EPA Region III

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1 Ray Chalmers - EPA Region III

2 On December 16, 2011 EPA finalized the Mercury and Air Toxics Standards, the first national standards to reduce emissions of mercury and other toxic air pollutants from new and existing coal- and oil-fired power plants. EPA published the MATS rule in the Federal Register on February 16, EPA published revisions regarding limits on new power plants on April 24, Standards create uniform emissions-control requirements based on proven, currently in-use technologies and processes. Standards will reduce power plant emissions of: Metals, including mercury (Hg), arsenic, chromium, and nickel Acid gases, including hydrogen chloride (HCl) and hydrogen fluoride (HF) Particulate matter and SO 2 (reduced as co-benefits of HAP controls) 2

3 Reducing power plant emissions of air toxic pollutants such as mercury, arsenic, other metals, and acid gases will help reduce many adverse health effects. Uncontrolled releases of mercury from power plants damage children s developing nervous systems, which can reduce their IQ and impair their ability to think and learn. Mercury and many of the other toxic pollutants pollute our nation s lakes and streams, and contaminate fish. Other metals such as arsenic, chromium, and nickel can cause cancer. Acid gases cause lung damage and contribute to asthma, bronchitis and other chronic respiratory disease, especially in children and the elderly. 3

4 Power plants also emit particles and SO 2, which are criteria pollutants that have long been of concern due to their adverse health and environmental effects. Power plant installations of air toxic emission controls will in many cases have the co-benefit of further reducing these emissions. The value of the improvements to health alone total $37 billion to $90 billion each year for those health benefits we were able to quantify. The estimated annual costs of this final rule are $9.6 billion. This means that for every dollar spent to reduce this pollution, we will get $3-$9 in health benefits.

5 The MATS rule requires existing sources to comply by April 16, 2015, three years after the MATS rule s effective date, unless they receive a compliance extension. Existing sources are those that commenced construction or reconstruction on or before May 3, Under the Clean Air Act, state permitting authorities can also grant an additional year as needed for technology installation. New sources are required to comply by April 16, 2012 or upon startup, whichever is later. New sources are those that commenced construction or reconstruction after May 3, EPA is also providing a clear pathway for reliability critical units to obtain a schedule with up to an additional year to achieve compliance. This pathway is described in a separate enforcement policy document. The EPA believes there will be few, if any situations, in which this pathway will be needed.

6 Proven control technologies to reduce these emissions such as scrubbers, fabric filters, and activated carbon injection are widely available. Many units already use one or more of these technologies. As a result of this standard, some power plants will upgrade existing controls (especially particulate matter controls like electrostatic precipitators). Power plants may also install new controls (such as fabric filters, dry sorbent injection, or activated carbon injection). 6

7 Any Effect On Future Electricity Costs Will Be Small and Within Normal Historical Fluctuations The graph shows the effect MATS may have on future electricity prices. The blue line shows historical electricity rates and what projected electricity rates would be without MATS (both from EIA). The green line shows how cleaning up power plants under MATS may lead to a slight increase in these prices in the future. However, the effect is small and keeps costs well within the normal historical fluctuation of electricity prices. In fact, even with MATS, electricity rates are projected to stay below historical highs. Sources: EIA Historical (Annual Energy Review October 2011); EIA Projected (Annual Energy Outlook 2011 ); EPA modeling of projected price increases using the Integrated Planning Model 7

8 Meet Applicable Emission Limits for New or Reconsructed Units as Specified in Table 1 or Limits for Existing Units in Table 2. Meet Work Practice Requirements in Table 3. -Conduct tune-ups every 36 calendar months (or every 48 months if combustion optimization software is used). Also, follow specified startup and shutdown procedures. Conduct Performance Tests, Monitor as Specified, Submit Notices & Reports, Keep Records, Meet General Requirements, as specified in Tables 4 to 9.

9 Region had 81 coal-fired plants operating as of 2011, the latest date for available TRI data. 50 plants plan to continue to use coal after the MATS compliance date. 18 plants have either already shutdown or plan to shutdown by the MATS compliance date. 13 plants have either already switched or plan to switch to gas or biomass fuel.

10 39 plants operational in plants >100 MW are staying with coal 8 plants > 100 MW have shutdown or are scheduled to shutdown 5 plants > 100 MW have switched or plan to switch to gas or biomass fuel. 13 are smaller plants < 100 MW. Little information found regarding their compliance plans.

11 16 plants operational in plants > 100 MW are staying with coal. 2 plants > 100 MW have shutdown or are scheduled for shutdown. 4 plants > 100 MW have switched or plan to switch to gas or biomass fuel. 3 are smaller plants < 100 MW. All are converting to biomass fuel.

12 17 plants operational in plants > 100 MW are staying with coal. 7 plants > 100 MW have shutdown or are scheduled to shutdown. 2 are smaller plants < 100 MW. One of these is scheduled for shutdown.

13 7 plants operational in plants > 100 MW are staying with coal. (These have previously been required to comply with MD s Healthy Air Act which sets requirements for control of mercury and other pollutants from coal-fired power plants.)

14 2 plants operational in plant > 100 MW will keep one boiler in operation that is already equipped with a scrubber, and will shutdown its other boilers. 1 smaller plant has switched to gas.

15 PA 3486 lbs. to 2213 lbs. 37% VA 430 lbs. to 93 lbs. 78% WVA 1445 lbs. to 1263 lbs. 13% MD 128 lbs. to 128 lbs. 0% Del 15 lbs. to 3 lbs. 80% Regional Totals 5707 lbs. to 3572 lbs. 37%

16 For more information on the Mercury and Air Toxics Standards see:

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