EnergyEnvironmentHuman HealthStatus ofClean Air Interstate Rule Implementationand Outreach for Replacement RulesEPA’s Clean Air Act Advisory Committee MeetingWashington, D.C.May 13, 2009Sam NapolitanoU.S. EPA Clean Air Markets DivisionClean Air Interstate Rules (CAIR)Remain In EffectState Responses to CAIR•All states have chosen the regional trading program•Some states still working on SIPsand NOxallocation•NOxallocation methodology–About 1/3 use model rule approach–Remaining 2/3 chose their own approach•Varies from permanent allocation to annual updating (after initial 3year block)•Compliance Supplement Pool for Annual NOxProgram–2 out of 23 states chose not todistribute–EPA administers in six states–Issued as 2009 annual NOxallowances–Discussing with states expediting CSP awardsState Flexibilities under CAIR•Opt-ins–13 states chose to include opt-in provisions–16 states chose not to include opt-ins•Expanding applicability to include major non-power sectorsources (like in NOxSIP Call) in the CAIR ozone seasontrading program–14 out of 20 states chose to expand applicabilitySource Response to CAIR•Sources established Designated Representatives for CAIRprograms•Facility allowance accounts have been established andallocations recorded•Sources began monitoring and reporting emissions–Jan. 1, 2008 for NOx–Jan. 1, 2009 for SO2•Some sources have earned early reduction credits in theannual NOxprogram (awarded as CSP allowances)•Vast majority of sources have NOxallowances for 2009and 2010 and most have additional years–General concern exists over trading allowances after 2010–“Buyer beware”language posted on EPA web siteProgress under the Acid Rain, NOxBudgetTrading, and CAIR ProgramsAnnualSO2Emissions211.210.28.97.715.70510152019902000200520072008

SO 2 E m is s i o n s ( m ill io n t o n s )preliminary** Based on initialdatasubmissionsinearly2009 thatarecurrentlyunderEPAreviewand revisionasneeded.2.FromallAcidRainProgramsourcesthatincludeover3,500electricgeneration unitsthatusefossilfuels.emissionscapOzoneSeasonNOxEmissions11,9241,256481506609-5001,0001,5002,0002,50019902000200420072008

NO x E m is s i o n s ( t h o u s a nd t o ns )emissions cap1.FromallNOxBudgetTradingProgramsourcesincludingabout2,600unitsfromtheelectricpowerindustryandotherlargestationarysources.State-by-State Annual SO2Emission Levels for AcidRain Program Sources, 1990-2008024681012141618199019952000200520072008Year

SO 2 Emi s sions (mil lion t ons)

.2008 data are preliminaryEmissions fromover 3,500electricgenerationunits that use fossilfuels that areinthe AcidRainProgram(ARP).State-by-State Annual NOxEmission Levels for AcidRain Program Sources, 1995-20080123456719952000200520072008Year

NO X Emissi on s ( m illio n to ns ) .2008 data are preliminaryEmissions fromover 3,500electricgenerationunits that use fossilfuels that areinthe AcidRainProgram(ARP).State-by-State Ozone Season NOXEmission Levels forNOXBudget Trading Program Sources, 1990-20080.00.51.01.52.02.519902000200520072008Year

O z on e Se as o n NO X (m i llio n to n s )

.2008 data are preliminaryEmissions fromabout2,600electricgenerationunits thatuse fossilfuels andother large stationarysourcesinthe NOXBudgetTradingProgram(NBP).2008 Coal Controls for SO2and NOXSource: Updated NEEDS andData&Maps, EPA,2009Virtuallyallcoal-fired unitshaveelectrostatic precipitators, baghouses,orother advancedcontrolsfor highlevelsofparticulate removal.SO2and NOXEmissions Ratesfor Coal-fired Generation01020304050607080900-0.10.1-0.20.2-0.30.3-0.40.4-0.50.5-0.75>0.752008 OzoneSeasonNOXRate(lbs/MMBtu)

Ca pa c i ty (GW )Uncontrolled*LNB OnlySNCRSCR*Includessomeunitswhich did notreportusing LNB,though may beusing other technologiesthatreduceNOXemissions(e.g., OFA)0204060801001201400-0.50.5-11-1.51.5-22-2.52.5-3>32008 Annual SO2Rate(lbs/MMBtu)

Ca pa c i ty (GW )Non-FGDFGDSource:EPA,ARP dataFGD includesunitswith fluegasdesulfurizationand fluidized bed units, andNon-FGD includes all other unitswhich inlimited cases have induct andothercontrols and have switchedorblendedcoals to lower SO2emissions rates.Outreach on Rules to Replace CAIR•Over the last two months, EPA staff have held extensive“listening sessions”with major stakeholders on the rules toreplace CAIR–National Association of Clean Air Agencies (NACAA)–Lake Michigan Air Directors Consortium (LADCO)–Ozone Transport Commission (OTC)–Central States Air Resource Agencies (CENSARA)–Southeastern States Air Resource Managers (SESARM)–State of Texas–Non-Governmental Organizations (environmental and health)–Council of Industrial Boiler Owners (CIBO). American Forest ProductsAssociation, Automobile Alliance, American Chemistry Council andrelated industries–Electric power industry and related industries and organizationsEnergyEnvironmentHuman HealthVisit the Clean Air Markets web site to view:•Emissions data•Allowance transfers•Program rules and guidelines•Studies and reports•Clean Air Markets www.epa.gov/airmarketsNew updated portion of web site:http://www.epa.gov/captradeEnergyEnvironmentHuman HealthAppendixOverview ofElectric Power Sector and Air EmissionsSources of Data•Initial emissions maps are based on Acid Rain Program (ARP) and NOxBudgetTrading Program (NBP) compliance data reported to EPA’s Clean Air MarketsDivision. All data are final, except annual SO2and NOxpreliminary emissions datafor 2008.•For pollution controls shown in the map inthe main body of thispresentation andfor maps in this appendix, EPA has based this on its draft 2009 data in NationalElectric Power Emissions Data System (NEEDS) that is used for setting up theIntegrated Planning Model (IPM) and EPA ARP emissions and facility data.–Includes existing federal controls for ARPand NBP,state controls, NSRsettlements,Court decisions, and controls reported to beunderway because construction is occurringor binding contracts are in place from broad,although not comprehensive recent surveywork. States (through their Regional Planning Organizations)have reviewed andcommented on much of the NEEDS data usedin this analysis. Notably, plans couldchange for companies participating in survey.–Additional controls from CAIRreplacement rules or other federalactions, such asupcoming MACTregulations or State regional haze SIPS are not included.•Note that in some cases future controlsfor SO2may potentially not operate controlswhere economic analysis now suggests its cheaper to use SO2allowances thanoperate controls. EPA has not seen clearevidence of this occurring to date and isaware of some countervailing factors that could inhibit this.Selected Facts on Coal-fired Generation: 2008•Electric Generation Units,Capacity, and Power Plants–All units: 1,279 electric generation units and 310 gigawattsof capacity atabout 500 power plants–Units >25MW: 1,083 electricgeneration units and 307 GWof capacity at about 450 power plants–Active units in the Acid Rain Program: 988 electric generation units and296 GW of capacity at closeto 400 power plants•For all units the average age of coal-fired generationcapacity is 35 years. Quartile distribution ofcapacity:–Oldest: Over 50 years old (on line 1929-1967)–Older Middle:34-50 years old (on line 1967-1974)–Younger Middle: 27-34 years old (on line 1974-1981)–Youngest: Less than 28 years old (on line 1981-2008)•Vast majority of coal-fired generation capacity has advanced pollution controlsfor direct particulatecontrols (mostly electrostaticprecipitators and somebag houses) that states required before 1990.•At least 234 GW of coal-fired capacity has some form of low NOx burners. About 106 GW of capacity hasSelective Catalytic Reduction (SCR) and 27 GW ofcapacity have SelectiveNoncatalyticReduction(SNCR) pollution control technology.•For SO2emissions control, there is 136 GW of totalcapacity thathas flue gas desulfurization (FGD),“scrubbers”and close to 6 GW of fluidized-bed capacity, where the combustion process behaves like ascrubber. Notably, about 80 GW of capacityhave both scrubbers and SCR/SNCRson them. About 42percent of the capacity has scrubbers or is a fluidized-bed unit east of the Mississippi River, and about 53percent of the capacity west of theMississippi has these advance controls.•Early in 2008, owners of coal-fired generation and other sources reported serious activities to retrofit anadditional 33 GW of FGD capacityand 9 GW of SCR/SNCRcapacity at existing facilities by the end of2010.2000 Coal Controls for SO2and NOXSource: Updated NEEDS andData&Maps, EPA,2009Virtuallyallcoal-fired unitshaveelectrostatic precipitators, baghouses,orother advancedcontrolsfor highlevelsofparticulate removal.2005 Coal Controls for SO2and NOXSource: Updated NEEDS andData&Maps, EPA,2009Virtuallyallcoal-fired unitshaveelectrostatic precipitators, baghouses,orother advancedcontrolsfor highlevelsofparticulate removal.2010 Coal Controls for SO2and NOXSource: Updated NEEDS andData&Maps, EPA,2009Virtuallyallcoal-fired unitshaveelectrostatic precipitators, baghouses,orother advancedcontrolsfor highlevelsofparticulate removal.2012 Coal Controls for SO2and NOXSource: Updated NEEDS andData&Maps, EPA,2009Virtuallyallcoal-fired unitshaveelectrostatic precipitators, baghouses,orother advancedcontrolsfor highlevelsofparticulate removal.2014 Coal Controls for SO2and NOXSource: Updated NEEDS andData&Maps, EPA,2009Virtuallyallcoal-fired unitshaveelectrostatic precipitators, baghouses,orother advancedcontrolsfor highlevelsofparticulate removal.State-by-State Annual CO2Emission Levels for AcidRain Program Sources, 1995-20082.172.452.542.562.520.00.51.01.52.02.53.019952000200520072008Year

CO 2 Emis sio n s (b illi on t o n s )

.2008 data are preliminaryEmissions fromover 3,500electricgenerationunits that use fossilfuels that areinthe AcidRainProgram(ARP).