EPA’s Response to the 2000/2001 Energy Crisis

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Presentation transcript:

EPA’s Response to the 2000/2001 Energy Crisis Keeping the Lights on Protecting Air Quality

The Issues New (ultraclean) Baseload Powerplants New Clean Peakers Old Powerplants with Restrictions RECLAIM (very dirty) BackUp Generators Other non-California Examples

The Context California has worst Air Quality in U.S. California fifth largest economy in world Domino Effect Peak Power demand = Peak Ozone levels CA Diesel Risk Reduction Plan

Baseload Powerplants Many in permitting queue in 2000 Issues Offsets Difficult to find quality offsets in CA/AZ nonattainment areas BACT Small issues, eg 2.0 vs. 2.5 ppm NOx Modeling Very clean plants rarely isssue Community Concerns Most difficult

New Peakers Davis Executive Order Permitting Issues

Gov. Davis Executive Orders Lift restrictions on power plants Ie fuel use, operating hours 21 day permit for peakers

Peakers Permit Template Timing/Public Notice Joint EPA/CAPCOA/CARB/CEC/ISO effort BACT Offsets Permit Conditions Timing/Public Notice EPA Offer: AOCs Several Issued

Older Powerplants with Restrictions Not Many Mostly old peakers with hours of operation limits EPA offered AOCs A few issued NOT Considered: Relaxation of BACT, other emission limits

RECLAIM What is RECLAIM? Cap and Trade System for NOx and PM Declining cap For portion of stationary sources in SCAQMD

RECLAIM II The Crisis Solution Many sources had delayed installing controls Utilities! IPPs inherited problem Increased production, declining cap, delayed controls=market crisis Solution Temporarily isolate power producers from rest of RECLAIM sources Require controls on schedule Forward fund reductions, ensure environmental

BUGs Thousands in State Very Dirty Source of Electricity EPA letter 1 Context: Title V Abuses ISO encourages sources to run BUGS NOT in emergency situation

Other Examples Hawaii Arizona Load Demand in chunks Outer Islands, Resort Driven Careful management of pre-construction activities Arizona SCR for generator lost in Atlantic Local AOC, no Federal Action requested Substation fire APCO allows use of BUGs Analysis of AQ impact?

Lessons Learned Clean Air Act has mechanisms to accommodate a crisis Planning is still essential Public Health protection paramount Environmental and Energy Regulators need better mutual understanding