Massachusetts Department of Environmental Protection 310 CMR 7.29 - Final Regulations Restructuring Roundtable - April, 2001 Nancy L. Seidman Massachusetts Department of Environmental Protection

Background on 310 CMR 7.29 Context for the Regulation Framework for Regulation changes from July public hearings Other Issues of Interest Reliability Fuel Diversity

310 CMR 7.29: FOCUS Acid Deposition Climate Change Mercury Nitrification, Eutrophication Ozone PM 2.5 Regional Haze Visibility CO2 - utilities = 30% Hg - utilities = 11%, highest after MWC which we’ve regulated

Installed capacity in MW

310 CMR 7.29: Major Provisions Standards Compliance schedules Output-Based Rates - SO2, NOx, CO2 Cap for CO2 Data collection for future Mercury proposal Compliance schedules Later dates than draft Dates depend on compliance method

310 CMR 7.29: Major Provisions Standards - SO2 and NOx 2 phase SO2 requirement 6.0 lb/MWh at 1st compliance date 3.0 lb/MWh at 2nd date 1.5 lb/MWh for NOx at first compliance date 12 month rolling average and monthly average at 2nd date

310 CMR 7.29: Major Provisions Standards - CO2 Compliance Dates facility cap based on three years of data at first compliance date facility rate of 1800 lb/MWh at second compliance date compliance measured as a 12 month rolling average Compliance Dates standard path - 10/04 and 10/06 repowering path - 10/06 and 10/08

310 CMR 7.29: Major Provisions Compliance Flexibility Two Compliance Options - standard and repowering No averaging across facilities Early reduction credit for SO2 Use of SO2 Allowances Off-site Reductions for CO2 Monitoring/Enforcement

310 CMR 7.29: ISSUES Timelines Averaging Trading CO2/Offsite Reductions Reliability Fuel Diversity Reliability DEP believes that changes in compliance schedules and options available to facilities will ensure that will not be an issue ISO announcement this week on this summer Biewald/Synapse report on reliability thanks to DTE and DOER - we are fortunate that New Eng has set model for interagency cooperation will continue to work closely with them and ISO as reg moves forward; we will keep the lights on in New Eng Fuel Diversity in eye of the beholder - changes depends on who’s looking at it in >20 years in New Eng have seen lots of swings in how power utility facilities many reasons why new capacity coming on line is NG - turn key facilities, low labor, cost to manufacture, efficiency in production of electricity - all ahead of environmental reasons continue to work with DTE/DOER will work with facilities who want to have oil back-up (and not all do) DEP will work with folks who want to burn coal but we will also ensure that a new facility is most efficient and clean as it can be, as our regs require

For a copy of the final regulation and documents: http://www.state.ma.us/dep/bwp/daqc/ daqcpubs.htm#regs