PRESEN PRESENTA TATION TION TO TO TH THE GOVERN E GOVERNOR ORS - PowerPoint PPT Presentation

PRESEN PRESENTA TATION TION TO TO TH THE GOVERN E GOVERNOR’ OR’S S EXECUTIVE ORDER EXECUTIVE ORDER 57 57 WORK ORKGROUP GROUP VIRGINIA’S CARBO RBON N REDU REDUCTI TION N EFFO EFFORTS RTS Depa Department of of En Environ ironmental l Qualit lity August 31, 31, 2016 2016 1

 Where Where we’ we’ve b ve been een ◦ Carbon emission trends in Virginia ◦ Regulations and factors affecting carbon emissions ◦ Virginia’s fossil fuel power plants  Where we a Where we are re ◦ GHG permitting for major sources ◦ Virginia’s Permit By Rule for small solar and wind projects  Status us of f EPA’ EPA’s s Clea Clean Po n Power Pla wer Plan ◦ Potential pathways for additional carbon emission reductions 2

VIRGINI NIA POWER ER SECTO CTOR R CO2 2 EMISSI SIONS NS 50.0 47.5 47.0 46.1 46.1 46.0 45.5 45.2 45.0 41.0 40.2 40.0 37.8 34.5 34.1 35.0 32.7 31.4 Tons 30.0 27.8 ric T Metric 25.0 of M lions o Millio 20.0 15.0 10.0 5.0 .0 0.0 .0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 3

Virgin inia ia Power r Sector r CO2 2 Emis issio ion Rate 250 500. 0.0 2,007 2, 007 1, 980 1, 1,987 987 1,980 920 1, 1,937 937 1, 1, 1,917 917 1, 913 1, 1,920 1,913 1,903 903 1, 1,905 905 200 000. 0.0 1,774 1, 774 1, 1,728 728 tt Hour 1,623 1, 623 1, 1,544 544 1, 1,543 543 Megawatt H 1, 1,404 404 150 500. 0.0 ds Per M 100 000. 0.0 Pounds 50 500. 0.0 0.0 .0 2000 20 00 20 2001 01 2002 20 02 2003 20 03 2004 20 04 20 2005 05 20 2006 06 2007 20 07 2008 20 08 20 2009 09 2010 20 10 2011 20 11 20 2012 12 2013 20 13 2014 20 14 4

2015 CO 2015 CO2 2 EM EMISSIONS NS FRO ROM VI VIRG RGINI NIA POWER WER PLA LANTS NTS 8,000, 8, 000,000 000 7,000, 7, 000,000 000 6, 6,000, 000,000 000 5,000, 5, 000,000 000 4,000, 4, 000,000 000 3,000, 3, 000,000 000 2,000, 2, 000,000 000 1,000, 1, 000,000 000 0 5

 NOx regulations to achieve ozone National Ambient Air Quality Standard (NAAQS) ◦ NOx SIP Call (1998) ◦ Clean Air Interstate Rule (CAIR) (2005) ◦ Cross State Air Pollution Rule (CSAPR) (being implemented)  Mercury Air Toxics Rule (MATS) aimed at reducing toxics emissions from EGUs (2015-2016)  Sulfur Dioxide NAAQS (being implemented)  Falling natural gas prices ◦ $9.00 per million Btu 2008 ◦ $2.00 per million Btu 2016 6

Pla lant Na Name Ch Change I In Oper eration/ n/Fue uel Year Ye ar Altavi vist sta Pow ower S Sta tation on ( (Coa oal) Conve nverted t d to bi biomas mass (wood) d) 2012 2012 Brem emo Blu luff ( (Co Coal) Conve nverted t d to nat natur ural al ga gas 2014 2014 Chesapea eake ( e (Coal) Coal al uni units pe perma manent ntly shut hut do down wn 2015 2015 Clinch Riv Clin River ( r (Co Coal) 1 coal al uni unit shut hut do down/ wn/2 c conv nverting ng to g to gas 2015 2015 Gle len Ly Lyn (Coal) l) Facility ty pe perman manent ntly c y closed 2015 2015 Hop opewell P Pow ower S Sta tati tion on ( (Coa oal) Con onverted to to biom omass (wood ood) 2013 2013 Por orts tsmou outh th Genco co (Coal) l) Curre Cu rrently close sed/possi ssible b e biomass ss conver versi sion 2015 2015 Potom otomac Riv River ( r (Co Coal) Facility ty pe perman manent ntly c y closed 2012 2012 Sout uthampt hampton Pow ower S Sta tati tion ( (Coa oal) Conve nverting ng t to bi biomas mass ( (wood) 2013 2013 Warre Wa rren Co County (NG NGCC) CC) Cons nstruc ucted and d and be began an operatio tion 2014 2014 Bruns unswick Co County ( (NG NGCC) CC) Cu Curre rrently unde under cons nstruc uction 2016 2016 Yor Yorktow ktown ( (Coa oal) Pendi nding ng c coal al s shut hutdow own 2017* 2017* Greensvil ille Co County ( (NG NGCC) CC) Permit is Per issued in in June 2016 2016 2019 2019 * Pending transmission line issue resolution 7

VI VIRG RGINIA EL ELEC ECTR TRICITY GEN ENERATION 2014 2014 To Total G l Genera ration 77 Mill 77 illion M Mega gawatt Ho Hours rs 5% 1% 1% 27% Coal Natural Gas Nuclear Petroleum 39% Hydroelectric Other 27%

 Where we Where we are are ◦ GHG permitting for major sources ◦ Virginia’s Permit By Rule for small solar and wind projects 9

 EPA Tailoring Rule – Effective January 2, 2011  GHGs - 6 different compounds including Carbon Dioxide (CO2) and Methane (CH3)  Limited to Major Sources of Pollution ◦ Sources must be major for a pollutant other than GHG ◦ Must be major for GHG >100,000 tons per year (tpy) ◦ GHG expressed as Carbon Dioxide Equivalents (CO2(e))  Requires a Best Available Control Technology (BACT) analysis  Few add-on controls exist for GHGs  Emissions related to combustion efficiencies 10

 Dominion Brunswick – 1400 MW Natural Gas Combined-Cycle ◦ Permit Issued 03/12/2013 ◦ 920 lbs/MWh CO2(e) Limit  Panda Stonewall LLC – 750 MW Natural Gas Combined-Cycle ◦ Permit Issued 04/30/2013 ◦ 903 lbs/MWh CO2(e) Limit  Dominion Greensville – 1600 MW Natural Gas Combined- Cycle ◦ Permit Issued 06/17/2016 ◦ Tiered Limit ◦ 812 lbs/MWh CO2(e) first 6 years ◦ Increases in 6 year increments ◦ Final Limit (years 31 & later) – 890 lbs/MWh ◦ MO MOST T STR TRINGENT GHG HG LIMITS IN THE THE NATION 11

 40 CFR Part 60 Subpart TTTT - New Source Performance Standard (NSPS) for Greenhouse Gas Emissions for New or Modified Electric Generating Units ◦ Applies to Fossil-Fuel Power Plants ◦ Commenced construction after January 8, 2014  40 CFR Part 60 Subpart OOOOa – NSPS for Crude Oil and Natural Gas Facilities Constructed or Modified after September 18, 2015 ◦ Applies to gas wells and compressor stations ◦ Implementation of rule is pending 12

 DEQ shall develop, by regulations to be effective as soon as practicable, but not later than July 1, 2012, a permit by rule or permits by rule if it is determined by the Department that one or more such permits by rule are necessary for the construction and operation of small renewable energy projects, including such conditions and standards necessary to protect the Commonwealth's natural resources. If the Department determines that more than a single permit by rule is necessary, the Department initially shall develop the permit by rule for wind energy, which shall be effective as soon as practicable, but not later than January 1, 2011. 13

 As used in this article, "small renewable energy project" means (i) an electrical generation facility with a rated capacity not exceeding 100 megawatts that generates electricity only from sunlight, wind, falling water, wave motion, tides, or geothermal power, or (ii) an electrical generation facility with a rated capacity not exceeding 20 megawatts that generates electricity only from biomass, energy from waste, or municipal solid waste. 14

 Thr hree s ee sol olar ar pr proj ojec ects per permitt tted ed ◦ Amazon, Eastern Shore, 80 MW ◦ Buckingham Firestone, Buckingham Co., 20 MW ◦ Hecate Energy Cherrydale. Northampton Co., 20MW  Over 20 r 20 Notice ces o of Intent su submitted ◦ 710 projected total MW  At t leas east f t four our s sol olar ar appl applicat ations ex expec pected ted by by mid d Septem eptember ber totaling a an additional 160 160 MW  Wind r d regul egulat ation l liti tigati ation r res esol olved s ved suc ucces essfully i in n favor avor of of DE DEQ ◦ Karr, et al., v VDEQ , (Record No. 1715-15-2, Court of Appeals of Virginia, Judge Humphreys, August 9, 2016) 15

 htt ttp: p://ww www.de deq. q.virgi irginia ia.go .gov/P v/Progra grams/R /Renewa wable leEn Energy.a y.asp x  https://www.google.com/maps/d/viewer?mid=1XZyl- JGFb2B9uAbuXCXfxUrb31k  http://www.deq.virginia.gov/Programs/RenewableEnergy/Pub licNotices.aspx 16

 The Sta Statu tus s of E of EPA PA’s ’s Cle lean Pow Power Pla Plan ◦ Potential pathways for additional carbon emission reductions 17

 Whil hile e fut uture ure of f CPP CPP unc uncer ertain, it it pro rovid ides wid wide ra e rang nge o e of f co comp mpli liance ce o optio ions a and nd a alt lter ernativ ive reg regula ulatory ry st stru ructures, inclu including: ◦ Opti Option to to use es e esta tabli lished ov overall ll r rate or ate or mas ass g goals oals or or spe pecif ific rate rate/m /mass g goals oals for or spe pecif ific s sou ources ◦ Opti Option to to in incl clude on only ly ex existi isting or or ex exis isti ting & & new ew sou ources ◦ Opti Option to to part particip ipate in in in intra tra or or in inter terstate tradi trading ◦ Cou Could ld in inclu lude m mix ixtu ture re of m measu sures es im implem plemented by by th the s e stat tate in incl cludin ing ren renewable en energ ergy an and en d ener ergy ef effic icie iency s stan tandard rds or or other er m measu sures es  CPP CPP and nd it its o s optio ions ha have ve a alrea lready b been een sub subjec ect t to muc much deb ebate a e and nd a ana naly lysis 18

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