Overview of Environmental Performance of Power Plants in Texas

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  • 1. Overview of Environmental Performance of Power Plants in Texas May 2010 Legislative advertising paid for by: John W. Fainter, Jr. • President and CEO Association of Electric Companies of Texas, Inc. 1005 Congress, Suite 600 • Austin, TX 78701 • phone 512-474-6725 • fax 512-474-9670 • www.aect.net
  • 2. AECT Principles • AECT is an advocacy group composed of member companies committed to: - Ensuring a modern, reliable infrastructure for the supply & delivery of electricity. - Supporting efficient competitive markets that are fair to customers and market participants. - Supporting consistent and predictable oversight and regulation that will promote investment and ensure the stability of Texas’ electric industry. - Promoting an economically strong and environmentally healthy future for Texas, including conservation and efficient use of available resources. • AECT member companies remain dedicated to providing Texas customers with reliable service and are committed to the highest standards of integrity. The Association of Electric Companies of Texas, Inc. (AECT) is a trade organization of investor- owned electric companies in Texas. Organized in 1978, AECT provides a forum for member company representatives to exchange information about public policy, and to communicate with government officials and the public. For more information, visit www.aect.net. 2
  • 3. CO2 Emissions in Context of Texas’ Economy A common refrain is that CO2 emissions generated in Texas are higher than in other states. However, it is critical to view that in the context of other truths: − Texas generates more electricity than any other state; in fact, Texas produces almost 80% more electricity than the next most generating state.1 − Much of the CO2 emitted in Texas results from the generation of “products” that are very significant to our state and nation. For example, Texas produces about: − 60% of petrochemicals produced in the U.S. − 30% of gasoline and diesel refined in the U.S. − 10% of electricity generated in the U.S. − The dollars of gross product produced in Texas per ton of CO2 emitted is high, and it increased by more than 1000% between 1963 and 2001. − The ratio of the amount of CO2 emitted per MWh of electricity generated in Texas is lower than half of the states that have more than a nominal amount of coal-fired or oil- fired electricity generation (see previous slide). 1 3 Source: EIA, 2008 State Electricity Profiles
  • 4. Technical Feasibility of CO2 Reductions Technology EIA 2008 Reference Target Efficiency Load Growth ~ +1.05%/yr Load Growth ~ +0.75%/yr Renewables 55 GWe by 2030 100 GWe by 2030 Nuclear 15 GWe by 2030 64 GWe by 2030 Generation No Heat Rate Improvement 1-3% Heat Rate Improvement Advanced Coal for Existing Plants for 130 GWe Existing Plants Generation 40% New Plant Efficiency 46% New Plant Efficiency by 2020–2030 by 2020; 49% in 2030 CCS None Widely Deployed After 2020 10% of New Light-Duty Vehicle PHEV None Sales by 2017; 33% by 2030 DER < 0.1% of Base Load in 2030 5% of Base Load in 2030 Chart Source: EEI and EIA 4
  • 5. Texas Is Already Leading the Way in Clean Power Plants Texas has the largest emissions of any state since it produces ~80% more power than the next ranked state. 0.247 0.395 OK 0.223 NM AR 0.156 0.103 LA TX 2008 NOx Emission Rate Averages Area (lbs/mmBtu) National 0.222 Over 80% of the fossil-fueled electricity produced in Texas Texas 0.103 comes from East Texas. Source: EPA Clean Air Markets Division – 2008 Acid Rain Program Data 5
  • 6. Electric Generator- NOx Reductions Achieved Under TCEQ 1-hr Ozone SIP Rules – HGA SIP- 86% overall reduction from 1997 – DFW SIP- 88% overall reduction from 1997 – Beaumont SIP- 45% reduction from 1997 – East Texas SIP- 51% reduction from 1997 Between 2000 and 2005, electric generating companies in Texas spent over $1 billion on NOx emission reductions alone. 6
  • 7. Texas’ Electric Generating Plants Among Lowest NOx Emitters in the Nation NOx 0.800 0.700 Texas has the 9th lowest average NOx 0.600 emissions rate. NOx (lb/MMBtu) 0.500 0.400 0.300 U.S. Average- 0.222 lb/mmBtu 0.200 0.100 0.000 NJ ND NE OH UT IN TN IL FL NY NH NM MN WI WY DE SD KY PA MI MT MD OK AL MS MO WV GA IA LA NC VT WA NV OR TX MA ME RI ID KS CO DC VA AR AZ SC CT CA 7 Source: EPA Clean Air Markets Division – 2008 Acid Rain Program Data
  • 8. Average Emissions Rates of NOx from Existing Texas and U.S. Power Plants NOx (lb/MMBtu) Notes: NOx Emission Rates for New Coal-Fired Power Plants range from 0.05 to 0.08 pounds per million Btu NOx Emission Rates for New Gas-Fired Power Plants are approx. 0.015 pounds per million Btu 8 Source: EPA Clean Air Markets Division – 2008 Acid Rain Program Data
  • 9. Texas’ Electric Generating Plants Among Lowest SO2 Emitters in the Nation SO2 Rank 1.800 1.600 Texas has the 19th 1.400 lowest average SO2 emissions rate. SO2 (lb/MMBtu) 1.200 1.000 0.800 U.S. Average- 0.564 lb/mmBtu 0.600 0.400 0.200 0.000 NJ OH IN ND NH TN NE IL FL NY UT MN NM WI DE WY MD PA GA MI AL WV KY MO SD NC IA MS MA TX OK LA MT OR NV ME WA VT RI ID VA SC DC KS AR CO AZ CT CA 9 Source: EPA Clean Air Markets Division – 2008 Acid Rain Program Data
  • 10. Average Emission Rates of Sulfur Dioxide from Existing Texas and U.S. Power Plants SO2 (lb/MMBtu) 10 Source: EPA Clean Air Markets Division – 2008 Acid Rain Program Data
  • 11. 1995-2008 Emission Rate Trends Sulfur Dioxide Nitrogen Oxides (SO2) (NOx) lb./mmBtu lb./mmBtu Year Nation Texas Nation Texas 1995 1.086 0.517 0.551 0.313 1996 1.096 0.527 0.518 0.314 1997 1.093 0.523 0.509 0.310 1998 1.058 0.485 0.481 0.307 1999 0.999 0.481 0.440 0.286 2000 0.875 0.380 0.399 0.261 2001 0.843 0.385 0.373 0.221 2002 0.794 0.384 0.348 0.173 2003 0.815 0.390 0.320 0.142 2004 0.779 0.353 0.286 0.124 2005 0.753 0.349 0.268 0.116 2006 0.702 0.338 0.255 0.111 2007 0.644 0.321 0.237 0.103 2008 0.564 0.316 0.222 0.103 1995 - 2002 data are from the Acid Rain Program Scorecard Table B1 2003 - 2006 data are from the Clean Air Markets Division database for the Acid Rain Program 11
  • 12. Additional Emission Reductions  Federal Clean Air Interstate Rules (CAIR) − Requires additional NOx and SO2 emissions reductions from power plants in 2009, 2010, and again in 2015, with a cap and trade program. − The NOx and SO2 emissions from all new units must “fit” under the 2009, 2010, and 2015 caps; such emissions are not in addition to those caps. − TCEQ has recently revised its rules to implement CAIR.  Regional Haze − Requires reductions in NOx, SO2, and Particulate Matter (PM) emissions based on best available retrofit technology (BART) for different types of facilities, including electric generating units, industrial boilers, and refineries. − EPA has decided that NOx and SO2 emissions reductions made for CAIR will suffice for the NOx and SO2 emissions reduction requirements under Regional Haze. − The TCEQ is developing rules to implement BART. 12
  • 13. Giving Back to the Environment • AECT member companies help to improve our environment through stewardship, support for new technologies and partnership with other agencies. Environmental Stewardship Environmental Partnerships - Reducing releases of chlorofluorocarbons from - Climate Challenge Program electrical equipment - Energy Star - Recycling coal combustion products - Energy Smart Schools - Educating schools and communities about - Environment Research Program renewable energy - Designating land and reservoirs for public - EPA SF6 Partnership program recreational use - Mickey Leland Internship Program - Preserving and restoring forests by planting -TCEQ Teaching Environmental Science millions of trees - Green Lights - Helping other industries adopt pollution- - Habitat Protection prevention plans - Learning From Light! - Launching education campaigns to help - Millennium Council communities save energy - Million Solar Roofs - Creating wetlands and wildlife habitats on - National Energy Education Development company properties (NEED) Project - Natural Gas Star - Reclaimed water utilization - Offering renewable energy products to retail customers 13
  • 14. Selected Environmental Programs and Fees • The electric industry is among the most heavily regulated in the nation, complying with hundreds of regulations and paying millions of dollars in fees annually. Selected Current Selected Current Environmental Programs Environmental Fees - Compliance with National Ambient Air Quality - Title V federal operating permit fees Standards - Air inspection fees - State Implementation Plan - Air quality permit fees - NOx reductions for electric generating units - Air quality permit renewal fees - Clean Air Interstate/Clean Air Mercury Rules - Wastewater inspection fees - New Source Review (NSR) - Wastewater permit application fees Prevention of Significant Deterioration - Water quality fees - Non-attainment NSR, including offset - Potable water fees - State Minor NSR - Water use permit application fees - Title V and Acid rain permits - Hazardous waste generation fees - Compliance Assurance Monitoring - Non-hazardous waste fees - Continuous Emissions Monitoring Systems - Low level radioactive waste fee - Toxic Release Inventory - Injection well fee - Monitoring cooling water - Mass Emission Cap and Trade Program 14
  • 15. Q&A 15