ClimateChangeWorkGroupReporttotheCAAACMark MacLeod – EDFEric Svenson – PSEGPeter Tsirigotis – EPAFebruary 2nd& 3rd, 2010Agenda•TheCharge•Caveats•OrganizingtheWork•WorkGroupRecommendations•RecommendtheReporttoEPA•ThoughtsonPhaseIITheCharge•IdentifythemajorissuesandpotentialbarrierstoimplementingthePSDProgramundertheCAAforgreenhousegases.[PhaseII]•IdentifyinformationandguidancethatwouldbeusefulforEPAtoprovideconcerningthetechnical,economic,andenvironmentalperformancecharacteristicsofpotentialBACToptions.[PhaseI]•IdentifyapproachestoenablestateandlocalpermittingauthoritiestoapplytheBACTcriteriainaconsistent,practicalandefficientmanner.[PhaseI]CaveatsOrganizingtheWork•DefiningtheSource:WhatisthesourcethatisbeinganalyzedforBACTcontrols?•CriteriaforDeterminingFeasibleControlTechnologies:Whichtechnologiesaredemonstratedinpracticeandwhatcriteriashouldbeusedtodeterminethetechnologicalfeasibilityofacontrolmeasure?•CriteriaforEliminatingTechnologies:HowdotechnologiesgeteliminatedfromconsiderationintheBACTanalysisbasedoncost,energy,environmentalorotherimpacts?•NeedsofStatesandStakeholders:–WhataretheStates’ technicalinformationanddataneedsregardingGHGscontrolandmitigationmeasuresinthecontextofdeterminingBACT?–Whatstepscanbetakentoexpedite,streamlineorprovideadditionalcertaintyintheBACTprocess,especiallyforexistingsourcesgiventhatmostPSDpermittinginvolvesexistingsourcesratherthannewgreenfieldsources?Highlights•GuidancerequestedfromEPA•DiscussiononDefiningtheSource•AffirmingthattheuseoftheexistingEPAapprovedpermittingauthorityBACTprocessforGHGsdoesnotcreateanewprocess•NeedsofStatesandStakeholdersRecommendationsScopeofAnalysis:Definingthe“Source”DonNeal,CalpineCriteriaforDeterminingFeasibleControlTechnologiesJohnMcManus,AEPCriteriaforEliminatingTechnologiesAnnWeeks,CATFNeedsofStatesandStakeholdersJohnPaul,RAPCARecommendtheReporttoEPAPhaseIIWeseektheadviceoftheCAAACandEPAoncontinuationoftheWorkGroupforasecondphasetoaddressarangeoftopics,whichcouldinclude,butnotbelimitedto,thefollowing:•thescopeofapplicabilityofPSDandBACTtoGHGsources,•theappropriatenessofusingpresumptiveBACTstandardsforsome/allGHGsourcecategories,•whetheritispermissibleandappropriatetouseaveragingortrading(e.g.,tradingofqualifiedoffsets)eitherasaBACTmechanismitselforasacomplianceflexibilityoption,•thepotentialtocredittowardsBACTcompliance(orfornetting) appropriatereductionsincarbonintensity,increasedenergyefficiencyordemandreductionsatotherunitswithinafacility(oramongcommonly‐ownedoroperatedfacilities),acrossalargerrangeofsources(e.g.,aregionalelectricitygridortransportationsystem)oratthecustomerlevel(e.g.,througha smartgridstrategyandsimilarmeasures),•howshouldBACTreviewsbeconductedandpermitconditionsestablishedtoencouragethedevelopmentandpromotetheuseofinnovativecontroltechnologiesforGHGs, and•evaluatingenergyefficiencyprocessesandpracticesaspartofthetop‐downBACTdeterminationprocess,including:benchmarkingtohelpguidetheconsiderationofenergyefficiency;potentialuseofoutputbasedstandardsandpolicydesignedtoprovideincentivesformoreefficientsolutions,suchascombinedheatandpower,combinedcycleturbinesandequipment;and,identifyingpracticesandprojectsthatareleadersindeployingefficientandlow‐emittingsolutions.