CleanWaterActSectionProposalSection316(b)ProposalRegulationsforCoolingWaterIntakeStructuresatExistingFacilitiesApril62011,Background•Section316(b)oftheCleanWaterAct(CWA)requiresthatNationalPollutantDischargeEliminationSystem(NPDES)permitsforfacilitieswithcoolingwaterintakestructureshhl id iidifhflensuretatteocaton,esgn,constructon,ancapactyotestructuresreectthebesttechnologyavailable(BTA)tominimizeharmfulimpactsontheenvironment.•Withdrawalofcoolingwaterremovesaquaticorganisms,includingfish,fishlarvaeandeggs,crustaceans,shellfish,seaturtles,andmarinemammals,fromwatersoftheU.S.eachyear.•Mostimpactsaretoearlylifestagesoffishandshellfishthroughimpingementandentrainment.•Impingementhappenswhenfishandotherorganismsaretrappedagainstscreenswhenwaterisdrawnintothefacility’scoolingsystem.•Entrainmenthappenswhenorganismsaredrawnintothefacility,resultingintheirexposuretopressureandhightemperatures.•EPAestimatesthat2.1billionfish,crabs,andshrimponanage‐1equivalentbasisarekilledannuallybyimpingementandentrainment.2RulemakingHistory•Underaconsentdecreewithenvironmentalorganizations,thesection316(b)rulemakingwasdividedintothreephases:rulemakingdividedphases:•PhaseIaddressedallnewfacilitiesexceptoffshoreoilandgasexplorationfacilities(December2001)•Phaseaddressedexistingelectric‐generatingfacilities(February2004)IIaddressedexistinglargeelectricgeneratingfacilities(February•PhaseIIIaddressedexistingsmallelectric‐generating,allmanufacturingfacilities,andnewoffshoreoilandgasexplorationfacilities(June2006)•EPAconductedaBusinessAdvocacyrulemakingconductedSmallBusinessAdvocacyReviewPanelforthisrulemakingin2004,andincorporatedanumberofrecommendationsofSERsintheexistingfacilitiesproposal•PhaseIIandtheexistingfacilityportionofPhaseIIIwereremandedtoEPAforreconsideration•Thisproposal,calledtheExistingFacilitiesproposal,combinesPhasesIIandIIIintooneruleandprovidesaholisticapproachtoprotectingaquaticlifeimpactedbycoolingwaterintakes3ScopeofRule•Potentiallyaffectedfacilitiesareexistingpowerplantsandmanufacturingfacilitiesthatgenerateelectricityormanufactureothergoodsandthatwithdrawatleast2milliongallonsperday(MGD)ofcoolingwater,atleast25percentcoolingpurposespercentofwhichisforcoolingpurposes•Theproposedrulecoversroughly1,260existingfacilitiesthatdissipatewasteheatthroughwaterwithdrawals•Approximately590aremanufacturers•Other670arepowerplants•Approximately74facilitieslrtechnologieshrliklmlwiho ate y0ac t esa eadyusetec o og est ata ee ytoco p yttheimpingementrequirementsoftheproposal4IdentificationofBestTechnologyAvailable•InselectingtheBTA,anumberoffactorswereconsidered:•Availabilityandfeasibilityofvarioustechnologies•Costsincludingpotentialcoststofacilitiesaswellashouseholds,andeconomicimpactsofdifferenttechnologies•Efficacyoftechnologiesinreducingimpingementandentrainmentmortality,includingcost‐effectivenessrelationships•Age,size,andtypeoffacility•Non‐waterqualityeffectsofdifferenttechnologiesonenergyproductionandavailability•Electricityreliability•Potentialadverseenvironmentaleffectsfromtheuseofthedifferentcontrols•USSupremeCourt’sdecisioninEntergyCorp.v.Riverkeeper,Inc.,etal.,thatEPAhastheauthoritytobalancecostsandbenefitsinpromulgating316(b)regulations5IdentificationofBTAforImpingementMortalityhf hf dldf dlhf hh dld•Teuseofis‐rienymoiietraveingscreenswitaisaninganreturnsystemorreducedintakevelocityisproposedasBTAforimpingementmortality•EPA’srecordshowsmodifiedtravelingscreensareavailableforallfacilities,whereasreducedvelocityavailablelocationsreducedintakevelocitymaynotbeavailableatalllocations–Facilitywoulddeterminetechnologybestsuitedtomeetingthelimit–Subjecttoanupperlimitonhowmanyfishcanbekilledbythefacilitythroughimpingement–impingementmortalitytoexceed:impingementimpingementmortalitynotexceed:•12%onanannualaverage•31%onamonthlyaverage•Requiresfacilitytosampleandholdupto48hourstodeterminemortality–Alternately,facilitycouldreducetheirintakevelocityto0.5feetpersecond•Dataindicatethatatthisvelocity,thereisasignificantreductioninthepotentialforimpingementandimpingementmortalitytoalevelequalto/betterthanthenumericimpingementmortalityrestrictionsmortalityrestrictions•Mostfishcanswimawayfromthecoolingwaterintakeofthefacilityatthisvelocity•Facilitycancomplyeitherthroughanengineeringdesigndemonstration,orthroughmonthlymonitoringandreportingofvelocity6IdentificationofBTAforEntrainmentMortality•Forentrainment,nosingletechnologythatrepresentedBTAforallfacilitiescouldbeidentified•Fourkeyfactorssupportdeterminingentrainmentmortalitycontrolsonasite‐specificbasis(exceptwithrespecttonewunits)inlieuofanationalbasis:energyreliability,increasedairemissions,landavailability,andremainingusefullife•Instead,EPAisproposingtoadoptregulationsthatestablishaprocessforthepermittingauthoritytodetermineentrainmentBTAcontrolsonasite‐specificbasis•Permittingauthoritycouldconsidersocialcostsandbenefitsonasitespecificbasisinestablishingadditionalentrainmentmortalitycontrols,ifany•FacilitiesactualintakeflowarerequiredtosubmitadditionalFacilitiesabove125MGDrequiredadditionalstudiestopermitauthority,andhavestudiespeerreviewed•Facilitiesmayhavetomeetimpingementrequirementsbeforelearningwhataretheirentrainmentrequirements•Permittingprocessincludesopportunityforpublicinput7IdentificationofBTAforNewUnitsatExistingFacilities•Closedcyclecooling(orwetcoolingtowers)areproposedasBTAforbothimpingementmortalityandentrainmentmortalityfornewunitsatexistingfacilities–Appliesonlytonewunitportionoffacility,nottoentirefacility–Capitalcostsforclosed‐cyclecoolingarelowerthancapitalcostsforonce‐throughcoolingwhenconstructinganewunit–Requirementsforentrainmentmortalityrequirethefacilitytoreducetheirintakeflowtoalevelsimilartoaclosedcyclecoolingsystem–Alternately,facilitycoulddemonstratetopermittingauthoritythatithasinstalled,andwilloperate/maintaintechnologiescapableachievingentrainmentmortalityoperate/maintaintechnologiescapableofachievingentrainmentmortalityreductionsequaltoatleast90%ofthereductionachievablethroughcompliancewiththeintakeflowreductionrequirement•ProposalestablishesJanuary17,2002asthedatefordistinguishinggexistingfacilitiesfromnewfacilitiesbecausethatistheeffectivedateofthePhaseInewfacilityrule8Compliance•RequirementswouldbeappliedtoindividualcoolingwaterintakestructuresthroughNPDESpermitsissuedbyauthorizedStatesorEPA•Regulationswouldbecomeeffective60daysafterFRpublicationofthepromulgationnotice(~July2012+60days)•TechnologiesimpingementrequirementsTechnologiestomeettheimpingementrequirementsoftherulewouldhavetobeimplementedassoonaspossiblebutfacilitiesmayrequestadditionaltime(nottoexceed8years)•Mostfacilitiesshouldbeabletocomplywithinin5years•Existingfacilitiessubjecttoentrainmentrequirementswouldhavetocomplyassoonaspossibleunderascheduleofcomplianceestablishedbythepermittingauthority•Newunitshavetocomplybythetimetheybeginoperating9Benefits&CostsofProposedRule•Proposalwouldreduceimpingementandentrainmentmortalityby615millionfish,onanage‐1equivalentbasis,oftotalof2.2billionlosttoI&Emortality•Annualmonetizedbenefitsareestimatedat$17 6million(2009$;3%discountrate)monetizedbenefitsestimated.million(2009$;discount•Annualizedsocialcostsareestimatedat$384million(2009$;3%discountrate)•ElectricGeneratorssegmentoftheproposedruleaccountsforthemajorityoftotalcost(directcompliancecostsof$319milliondiscountincludingstudies)(directcompliancemillionat3%discountrate,includingcostofstudies)•Annualcostsofclosedcyclecoolingatnewgeneratingunitsareestimatedseparatelyas$15million,butbenefits,eveninage‐1equivalentterms,cannotbecalculated•Estimatesdonotincludecostsassociatedwithcomplyingwithpermitauthoritydeterminationsonsite‐specificBTA•Majorityoffacilities(86%)andparententities(89%)thatwouldbesubjecttotheproposedruleareestimatedtoincurannualizedcostsoflessthan1%ofrevenue(assumingzerocostpass‐through)(assumingthrough)•Nationalcompliancecostofproposedrule,onaverage,isestimatedtobe0.013¢perKWh(assumingfullcostpass‐through)•FortypicalShouseholdproposedestimated41atypicalU..household,proposedruleisestimatedtoresultincostsof$1.perhouseholdperyear(assumingfullcostpass‐through)10