1. Electric Generation on High Electric Demand Days New Jersey Clean Air Council Annual Public Hearing April 1, 2009 Tonalee Carlson Key New Jersey Dept. of Environmental Protection

2. 2 Overview High Electric Demand Day Generation and Air Quality The Regional Effort The New Jersey Response The Other Pieces of High Electric Demand Day Generation

3. 3 On High Electric Demand Days, NO x Emissions From EGUs Go Up High Electric Demand Day Generation and Air Quality : High Electric Demand Day Generation and Air Quality :

4. 4 High Electric Demand Days Correspond with High Ozone Days

5. 5 The Mix Of Generating Units in Operation Varies By Day And Region

6. 6 NJ Electrical Generating Units Ozone Season Use 2005-07 Not all units run every day Percentage Operated During Ozone Season Baseload Peakers - Peaking Units & Load Following Boilers

7. 7 NO x Emission from Nj/NY EGUs (tons) Fuel Types Comprising the Daily NO x Emissions sorted by NO x Mass from NJ & NYC EGUs June 1 - September 15, 2005 In New York City and New Jersey the source of NO x is primarily gas and diesel fired combustion turbines Source of high electric demand day NO x emissions is different throughout the OTR

8. 8 NO x Emission from New England EGUs (tons) Fuel Types Comprising the Daily NO x Emissions sorted by NO x Mass from New England EGUs June 1 - September 15, 2005 In New England the source is primarily residual oil fired load following boilers

9. 9 Baseload EGUs Getting Cleaner But Emissions on HEDD Remain High Baseload units are getting cleaner Delta getting larger-- HEDD units have a more profound effect 551 1615 1349 623 798 Emissions for units In 6 States: CT,NY, NJ,PA,DE,MD

10. 10 The Air Quality Implications

11. 11 High Electric Demand Day Units Adjusted in the Sensitivity Modeling Facilities with High Electric Demand Day Units

12. 12 Maximum 8Hr Ozone Reductions (ppb) from High Electric Demand Day Units NO x = 0.1 lb/ mmBtu Modeling Episode- Aug 1-15, 2002

13. The Regional Effort

14. 14 Process & Accomplishments Over a year long, multiple meeting process (2006-2007) Robust stakeholder process (RTOs, PUCs, Generating Co., EPA, State Staff) Reductions formalized in OTC MOU

15. The H igh E lectric D emand D ay Rule The New Jersey Response: Signed by Commissioner 3/20/09

16. 16 Implementation Two Phases Short Term –Reductions from: 5/19/2009 – 9/30/2014 Reductions to aid attainment of the 1997 8-hour ozone standard Allow electric generating companies to develop and implement long term strategy to meet 2015 performance standards –Based on OTC MOU (NJ committed to 19.8 TPHEDD reductions relative to the 7/26/05 base HEDD) –Applies to each HEDD unit that: For CTs: not controlled by water injection or SCR For boilers: not controlled by SCR or SNCR For all: had NOx emission rate of 0.15 lbs/MMBTU

17. 17 Implementation - Short Term - continued –The owner or operator will prepare a 2009 HEDD Emission Reduction Compliance Demonstration Protocol Applicable measures to obtain required emission reductions: –Control the HEDD unit –Reduction in HEDD unit usage –Control non-HEDD unit –For duel fueled: combust NG on HEDD –Implement: energy efficiency measures demand response measures renewable energy measures –Other measures approved by the Department Units in NJ, PA, DE or MD

18. 18 Long Term –Performance standards applicable 5/1/2015: –Estimated emission reductions in 2015: 64 TPD (relative to the 7/26/05 base HEDD) Implementation - Long Term - continued

19. 19 Rule Status Rule Status: –Final Rule Published in NJ Register: April 20, 2009 –Operative Date: May 19, 2009 Final Rule Document: (after April 20 th ) http://www.nj.gov/dep/rules/adoptions.html Regional Record: http://www.otcair.org/document.asp?fview=meeting

20. 20 The Other Pieces of High Electric Demand Day Generation

21. 21 R egional T ransmission O rganizations (3) –ISO-NE, NYISO, PJM –Taught us about alerts, electricity distribution, pricing of electricity, demand response, and capacity payments Generators –The parties that operate daily under the requirements of all three organizations – environmental, PUC, RTO –Reality glue P ublic U tility C ommissions –Taught us about energy planning-goals-requirements at the state level –In NJ: Energy Master Plan was being developed

22. 22 HEDD DEP Team Members Chris Salmi Tonalee Key Tom McNevin Mike Hogan Yogesh Doshi Danny Wong Shan He

23. 23

24. Additional Information

25. 25 Regional Emission Reductions in the OTC MOU