# Presentation: 151451

## Montgomery
County, MD

Regional Wind Power Purchase

Ann Elsen
Energy Planner

**County, MD**
** **
**Regional Wind Power Purchase**
**Ann Elsen**
**Energy Planner**

- Montgomery County Department of Environmental Protection

**Notes:**
Contact Information:

Ann Elsen
Energy Planner
Montgomery County Department of Environmental Protection
255 Rockville Pike, Suite 120
Rockville, MD  20850
240.777.7754
Ann.Elsen@montgomerycountymd.gov

## .    It’s not easy being green   .

- Montgomery County Department of Environmental Protection

**Notes:**
State and local governments are a key market for renewable energy.

Renewable Energy has never before been approved as a pollution control measure under a SIP.
We needed:
New EPA Guidance
Integration with State NOx allowance allocations

## We’ll pay more for power when...

- Montgomery County Department of Environmental Protection

**Notes:**
Montgomery County is a member of the International Council for Local Environmental Initiatives’ Cities for Climate Protection (CCP) campaign.  As a member, we have made a commitment to reduce our local greenhouse gas emissions.  A large wind energy purchase represents a significant step towards meeting our goal under the CCP program.

Montgomery County is also a member of EPA’s Green Power Partnership.

Recently, our County Council and County Executive passed a joint resolution that commits the County’s electricity buying group to purchase a minimum of 5% of its electricity supply from new zero-emissions renewable energy sources.

Even so, purchasing “green” power at a price premium is a difficult undertaking during a particularly tight budget year.

## State Implementation Plans

**State Environmental Department**

**SIP Requirements**

**State Implementation Plans**

- Montgomery County Department of Environmental Protection

**Notes:**
Renewable energy becomes cost-effective when considered as an air quality improvement measure.  Incorporating a renewable energy purchase in a SIP provides:

Compliance with Clean Air Act
Reduce ground-level ozone by reducing precursors: NOx and VOC
Safeguard  of federal transportation dollars

## So, this improves our air quality?

- Montgomery County Department of Environmental Protection

**Notes:**
Quantifying local air quality improvements from renewable energy is a challenge.  However, many of the perceived complexities of the electricity grid have been exaggerated to mythic proportions.  Publicly available information provides most or all of the data needed to conduct a detailed analysis of power plant dispatch and emissions offsets produced by renewable generation.

## Emissions

**Emissions**

***tons per year***

**Source: MDE, 1999 U.S. EPA data**

**Notes:**
Environmental benefits of renewable energy can be demonstrated in terms of local air quality improvements.

This graph shows levels of emissions of ozone precursors in Maryland and neighboring states.

## Ground-Level Ozone

**Ground-Level Ozone**

**# Days above     1-hour standard**

**Source:   MDE, 2002 (MD data from Baltimore monitor)**

**Notes:**
Ground-level ozone measurements in Maryland are higher than would be suggested by local emissions of precursors.

The Washington DC Metropolitan area is in severe non-attainment for ozone.  

## So, where does the ozone come from?“Ozone Transport”

- Montgomery County Department of Environmental Protection

**Notes:**
Emissions from sources out-of-state make compliance difficult or impossible.

Emissions reductions from traditional control measures largely exhausted in many areas. 

MDE works in partnership with the University of Maryland – College Park to measure and analyze pollution being transported into Maryland.

On our worst days we measure ozone at 110 parts per billion (ppb) floating into the state from the West.  [The 1-hour standard is 125 ppb]

## Maryland Department of Environment

**Maryland Department of Environment**

- Montgomery County Department of Environmental Protection

**Notes:**
Research conducted by the University of Maryland provides insight into the sources of NOx emissions in Maryland.

Maryland’s location places us at the “air pollution crossroads” when if comes to transport.
Air pollution floats to us from the west and the south.
Sometimes the air pollution we transport to the north actually “re-circulates” back to us.
Power plants, cars and area sources are all involved in the transport process 

## Maryland Department of Environment

**Maryland Department of Environment**

- Montgomery County Department of Environmental Protection

**Notes:**
Major NOx point sources lie to the West of the Washington Metropolitan region.

In Maryland, our technical analyses show that local reductions are not very good at reducing local ozone.
In other areas, like Atlanta, local reductions seem to be much more effective
Local versus regional benefits are a function of each areas weather

## Locations of 50 Largest Power Plants in US

|                                                                                  |  |
| --- | --- |

**Source:  NOAA**

- Montgomery County Department of Environmental Protection

**Notes:**
Primary point sources for NOx affecting Maryland are coal fired electricity generating plants.

The elevated ozone reservoir above Maryland is a complex mix of pollution that originates in the west (primarily power plants) and the south (cars, area sources and stationary sources)

## PJM Control Area

**PJM Control Area**

**NY**

**MD**

**WV**

**DE**

**OH**

**NJ**

**PA**

**VA**

- Montgomery County Department of Environmental Protection

**Notes:**
The Metropolitan Washington Council of Governments (COG) is shown in green.  COG is the organization that coordinates a regional approach to SIPs.

PJM Interconnection is the Independent System Operator and Regional Transmission Organization that coordinates the movement of electricity in all or parts of Delaware, Illinois, Maryland, New Jersey, Ohio, Pennsylvania, Virginia, West Virginia and the District of Columbia.

## Partners in Buying Group

- “Big Six” Montgomery County Agencies:
- 	**32.8 million kWh/year**
- Plus thirteen other jurisdictions:
- 	**5.6 million kWh/year**
- Total purchase of
**	****38.4 million kWh/year**

- Montgomery County Department of Environmental Protection

**Notes:**
Agency					Yearly kWh	Cost / year		Total Annual	
						wind power	Wind only			Consumption	
Housing Opportunities Commission	1,226,649		$18,375.20			24,532,980	
Montgomery College			1,286,259		$19,268.16			25,725,180	
Montgomery County Government	7,397,796		$110,818.98			147,955,920	
Montgomery County Public Schools	9,818,022		$147,073.97			196,360,440	
Park & Planning Commission		2,542,190		$38,082.01			50,843,800	
Water & Sewer Authority		10,500,000		$157,290.00			210,000,000	
Chevy Chase Village			14,344		$214.87			286,880	
Chevy Chase Sect. 5			1,979			$29.65			39,580	
City of Rockville				760,272		$11,388.87			15,205,440	
College Park					74,041		$1,109.13			1,480,820	
Gaithersburg				351,349		$5,263.21			7,026,980	
Glenn Echo					4,088			$61.24			81,760	
Prince George's				4,270,276		$63,968.73			85,405,520	
Rockville Housing Authority		51,411		$770.14			1,028,220	
Somerset					8,753			$131.12			175,060	
Takoma Park 				83,490		$1,250.68			1,669,800	
Town of Kensington			19,114		$286.33			382,280	
Town of Laytonsville			1,747			$26.17			34,940	
Total						38,411,780	$575,408.46			768,235,600	

## Big dogs eat first.

- Montgomery County Department of Environmental Protection

**Notes:**
Montgomery County is the leader of an electricity buying group, consisting of thirteen jurisdictions.  Membership in the buying group is conditional upon joining the renewable energy procurement.  All member of the group have purchased wind power in an amount equal to 5% of their annual electricity usage.

The size of the buying group enabled Montgomery County to obtain a premium environmental product at a reasonable price.  The purchase also helps to drive the renewable energy market and promote additional wind projects in the region.

## A Closer Look at RECs

- Montgomery County Department of Environmental Protection

**Notes:**
“Designer” RECs (Renewable Energy Credits):

We buy wind attributes from area where NOx emissions occur (ozone transport) – requires definition of geographic area.
Wind power “offsets” some coal power generation – requires knowledge of power plant dispatch and emissions.
MDE (or equivalent) awards NOx “allowances” – requires existence of “set-aside” pool.
Allowances are retired
Credit for “allowances” taken in SIP
0.05 tpd ~ 5.75 allowances

Contract language must be very specific, and provide transfer of ownership of all environmental attributes that exist or might come into existence during the term of the contract.

## Total Purchase

- Two year contract began July 1
- At a price of $0.01498 per kWh
- Total aggregate cost of $575,408/yr
- Equivalent to about 15 MW capacity
- Largest local government purchase of wind in the US.

- Montgomery County Department of Environmental Protection

**Notes:**
NOx Allowances:

From Maryland “set-aside” pool (5% = 726 allowances)
SIP proposed “dispatch methodology” for calculating amount of allowances.
New MD regulations incorporate methodology using average for base-load plants in MD.
MW capacity during ozone season x 1.7 (factor representing average allowance per MW) = number of allowances.
~ 5 x 1.7 = 8.5 allowances

## Cost-Effective NOx Reduction Measure (not to be confused with the cost of a NOx Allowance)

| Control Measure | 
Cost (ton/year) |
| --- | --- |
| Wind Energy | $32,000 |
| CNG Refueling Stations | $54,701 |
| 55 CNG Busses | $103,063 |
| 1967 Bike Lockers | $247,111 |

**Cost-Effective NOx Reduction Measure**** ****(not to be confused with the cost of a NOx Allowance)**

- Montgomery County Department of Environmental Protection

**Notes:**
Many of the control measures included in the Maryland SIP are expensive and difficult to verify.  Wind energy compares very favorably both in terms of economics and quantifiable emissions reductions.  

## New EPA Guidance

- Encourages the use of renewable energy as a control measure
- Sites the Montgomery County wind energy purchase as an example (see Maryland example).
- Provides an explanation of dispatch-based methodology for calculating emissions reductions.
- Is easier to apply in states with NOx set-aside, but can be applied in any location where power plant emissions are a significant contributor to ground-level ozone.

- Montgomery County Department of Environmental Protection

**Notes:**
Summarizes from Guidance:

The calculation method begins by estimating which power plants would reduce their operations when the wind farm comes online.  The estimated electricity generation at the wind energy power plant was based on an estimated schedule of the wind power production for the summer ozone season (by time of day, week, and month), actual wind anemometer measurements and actual meteorological data.  The annual capacity factor for this analysis is estimated at 37 percent and the summer season capacity factor of the wind facility is estimated at 20 percent.
The prospective calculation used actual dispatch information and actual and real renewable plant specifications.  Dispatch information from plants located in the PJM West power control area were used to estimate which plants would be affected by the wind power generation.  The analysis resulted in energy displacement occurring at 10 facilities (3 facilities in Maryland, 6 facilities in West Virginia, and one facility in Pennsylvania).  Generation data was taken from the most recent U.S. Energy Information Administration data from these plants.  The emission rate information was taken from the most recent continuous emission monitors information reported to the U.S. Environmental Protection Agency.  The estimated generation-weighed emission rate of the displaced electricity was 5.72 pounds of NOx per MWh.

Taking a conservative approach, the amount of proposed SIP credit was one half of the calculated emission reductions, with a projected reduction (to be used as SIP credit) of 0.05 tons per day of NOx during the ozone season.  Additionally, a retrospective analysis of power plant activities after the new wind energy plants come online will be performed.

## The End

- Montgomery County Department of Environmental Protection

**Notes:**
For information of the Montgomery County Wind Purchase, contact:
Ann Elsen
Energy Planner 
Montgomery County Department of Environmental Protection
240.777.7754
Ann.Elsen@montgomerycountymd.gov

For information on the Maryland NOx set aside, contact:
Tad Aburn
Maryland Department of Environment
gaburn@mde.state.md.us

For information on the dispatch based methodology for calculating emissions reductions, contact:
Colin Haller
ICMA
(292) 962-3616
challer@ICMA.org

For information on incorporation of renewable energy programs into State Implementation Plans, contact:
Debra Jacobson
George Washington University Law School
(703) 356-7448
Deb1703@aol.com