A U.S. Power Industry Regulatory Update

<!doctype html> <html> <head> <meta http-equiv="X-UA-Compatible" content="IE=edge"> <title>A U.S. Power Industry Regulatory Update</title> <meta charset="utf-8"> <meta name="viewport" content="width=device-width, minimum-scale=1.0, initial-scale=1.0, maximum-scale=1.0, user-scalable=no, minimal-ui"> <meta name="description" content=""> <meta property='og:title' content='A U.S. Power Industry Regulatory Update'> <meta property='og:description' content=""> <meta property='og:url' content='http://powermag.com/long-form-stories/bw-power/'> <meta property='og:site_name' content='Power Magazine'> <meta property='og:image' content='images/bw-bg.jpg'> <meta http-equiv="X-UA-Compatible" content="IE=9"> <link rel="icon" href="images/favicon.ico" /> <link rel="shortcut icon" href="images/favicon.ico" /> <link href="https://maxcdn.bootstrapcdn.com/font-awesome/4.1.0/css/font-awesome.min.css" rel="stylesheet"> <link href="../skrollstrapv1/css/bootstrap.min.css" rel="stylesheet" type="text/css" /> <link href="../skrollstrapv1/css/skrollstrap.css" rel="stylesheet" type="text/css" /> <link href="css/style.css" rel="stylesheet" type="text/css" />     <script type="text/javascript" src="//s7.addthis.com/js/300/addthis_widget.js#pubid=ra-51925d400ba68cbb"></script>   <script>(function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start': new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0], j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src= 'https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f); })(window,document,'script','dataLayer','GTM-WWWKPH3');</script>  </head> <body>  <noscript><iframe src="https://www.googletagmanager.com/ns.html?id=GTM-WWWKPH3" height="0" width="0" style="display:none;visibility:hidden"></iframe></noscript>  <header>  <div class="header-logo-container"> <a href="https://www.powermag.com/" onClick="_gaq.push(['_trackEvent', 'BW Power Regulatory cascade', 'Clicks', 'Power logo header left']);" target="_blank"> <img class="header-power-logo" src="images/power-logo.png" alt="Power Magazine"/> </a> </div> <div> <span class="header_headline">A U.S. Power Industry Regulatory Update</span> </div> <div class="header-logo pull-right"> <span class="">Presented By</span><br> <a href="http://www.babcock.com/" onClick="_gaq.push(['_trackEvent', 'BW Power Regulatory cascade', 'Clicks', 'BW logo header right']);" target="_blank"><img class="header-bw-logo" src="images/bw-logo.png" alt="B&W"></a> </div> <div id="share-tools" class="addthis_sharing_toolbox header_social pull-right"> <a class="addthis_button_twitter social_link"><span><i class="fa fa-twitter"></i></span></a> <a class="addthis_button_facebook social_link"><span><i class="fa fa-facebook"></i></span></a> <a class="addthis_button_linkedin social_link"><span><i class="fa fa-linkedin"></i></span></a> <a class="addthis_button_google_plusone_share social_link"><span><i class="fa fa-google-plus"></i></span></a> <a class="addthis_button_email social_link"><span><i class="fa fa-envelope"></i></span></a> </div> </header> <div class="scroll-hud"> <div class="scroll-hud-a"></div> <div class="scroll-hud-b"></div> </div> <div class="bg force3x2" id="bg-layer"></div> <div class="fence background-full" id="fence"></div> <div class="nuc-bg background-full" id="nuc-bg"></div> <div class="bg-fade" id="bg-fade"></div> <div id="scroll-arrow-down">Scroll to Continue<span class="fa fa-arrow-down"></span></div> <div id="skrollr-body" class="desktop-skrollr-body"> <section class="section0"> <div class="col-sm-8 col-md-6 col-sm-offset-1 col-xs-10"> <h1>A U.S. Power Industry Regulatory Update</h1> <p>By Sonal Patel<br>October 1, 2014</p> <div class="presented-by"> <p>Presented By:</p> <div class="intro-logo"> <a href="http://www.babcock.com/" class="presented-logo ir" onClick="_gaq.push(['_trackEvent', 'BW Power Regulatory cascade', 'Clicks', 'BW logo intro']);" target="_blank">B&W <img src="images/bw-logo.png" alt="B&W"></a> </div> </div> </div> </section> <section class="section1"> <div class="content"> <div class="container"> <div class="row"> <div class="col-sm-7 col-sm-offset-4"> <h3>Editor’s Note</h3> <p>Delayed rules, challenged rules, reinstated rules. . . . The history of federal regulations affecting U.S. power plants, especially in recent years, is complex and sometimes confusing. Coal-fired power plants are affected by the largest number of the new regulations proposed and finalized by federal agencies, but other regulations cut across fuels and technologies. Any time multiple new operating parameters are proposed or finalized in quick succession, they are bound to have major interdependencies for plant owners and operators.</p> <p>To help you keep track of all the moving pieces, here’s a concise overview of where all the major federal power industry regulations stand as of Labor Day. Regulations are categorized by the agency involved as well as the main environmental or operational context—air, water, waste streams, radiation, and security.</p> <p><strong>Gail Reitenbach, PhD, Editor</strong></p> </div> </div> </div> </div> </section> <section class="section2 epa"> <div class="flipper"> <div class="card"> <h3 class="card-title">GHG Rules</h3> <div id="card1" data-card="Card01: GHG Rules" class="card-copy"> <p><strong>New Power Plants.</strong> The Environmental Protection Agency (EPA) in September 2013 revised a 2012 proposal to limit carbon emissions from new coal- and natural gas–fired power units. The New Source Performance Standards developed under Section 111(b) of the Clean Air Act (CAA) require new gas plants of 100 MW or more to emit no more than 1,000 pounds of carbon dioxide/MWh of power produced (as achievable with the latest combined cycle technology) but call for smaller gas plants to achieve a less-stringent standard of 1,100 pounds CO<sub>2</sub>/MWh. Coal plants can either use carbon capture and storage technology soon after startup (to achieve a 12-month average emission rate of 1,100 lb CO<sub>2</sub>/MWh) or after seven years of startup to achieve a seven-year average emission of between 1,000 and 1,050 lb CO<sub>2</sub>/MWh.</p> <p><strong>Existing Power Plants.</strong> As directed by President Obama’s Climate Action Plan, the EPA on June 2 proposed its “Clean Power Plan” emissions guidelines for existing power plants under the CAA Section 111(d). The proposal sets state-specific, rate-based goals and relies on four “building blocks” to establish the best approach for each state to slash power sector CO<sub>2</sub> emissions by 30% from 2005 levels by 2030.</p> <p><strong>BACT for GHG Emissions.</strong> The U.S. Supreme Court on June 23 reversed the EPA’s Tailoring Rule but affirmed the agency’s authority to regulate greenhouse gases (GHGs) under the CAA’s Prevention of Significant Deterioration permit program. Specifically, the high court said the EPA could permissibly require sources that are obligated to obtain permits “anyway” (because of their emission of non-GHG pollutants) to adopt GHG Best Available Control Technology (BACT).</p> </div> <div class="card-agency"> <div class="card-agency-label">Environmental Protection Agency</div> <hr> <div class="card-icon"></div> </div> </div> </div> </section> <section class="section3 sponsored"> <div class="flipper"> <div class="card"> <span class="card-title-sponsored">Sponsored by</span> <a href="http://www.babcock.com/" onClick="_gaq.push(['_trackEvent', 'BW Power Regulatory cascade', 'Clicks', 'BW logo Sponsor Card 1']);" target="_blank"><h3 class="card-title ir">B&W</h3><img class="sponsored-logo-card" src="images/bw-logo.png" alt="B&W"></a> <div id="sponsored1" data-card="Sponsored1: Carbon Capture Technologies" class="card-copy"> <p class="card-intro">Babcock & Wilcox Power Generation Group, Inc. (B&W) continues to develop and demonstrate carbon capture technologies for commercial, coal-fired power generation and industrial applications. These technologies, designed to capture and purify CO<sub>2</sub> for permanent storage, include oxy-coal combustion, post-combustion scrubbing and chemical looping.</p> <h4>Oxy-coal combustion</h4> <p>Oxy-coal combustion injects nearly pure oxygen with recycled CO<sub>2</sub> in place of air in the combustion process. This results in a flue gas exhaust stream that contains concentrated CO<sub>2</sub>. Together with Air Liquide, B&W is a technology supplier for the U.S. Department of Energy’s (DOE) FutureGen 2.0 oxy-combustion CO<sub>2</sub> capture and storage demonstration project in Meredosia, Illinois. The project is currently in the front-end engineering and design phase. B&W’s scope of work includes the design of the oxy-coal combustion system, gas quality control system, boiler, steel and other balance of plant equipment.</p> <h4>RSAT™ scrubbing</h4> <p>B&W’s Regenerable Solvent Absorption Technology (RSAT™) post-combustion scrubbing process uses a liquid solvent to remove CO<sub>2</sub> from the plant’s flue gas stream. Once captured, CO<sub>2</sub> can be separated from the solvent and the solvent recycled back to the process. Pilot-scale tests at the U.S. DOE’s National Carbon Capture Center in Alabama were very positive in regard to CO<sub>2</sub> capture performance and solvent regeneration energy.</p> <h4>Chemical looping</h4> <p>B&W is collaborating with The Ohio State University to develop a coal-direct chemical looping (CDCL) process, an innovative CO<sub>2</sub> capture technology. Lab-scale testing and process and economic simulations have proven that the CDCL process is capable of achieving greater than 90 percent carbon capture efficiency while meeting the U.S. DOE’s target of less than a 35 percent increase in the cost of electricity as compared to base pulverized coal electric generation. The CDCL process consists of a unique moving bed reactor where coal is reacted with iron-based oxygen carrier particles, producing an exhaust gas stream of essentially pure CO<sub>2</sub>.</p> </div> <div class="card-agency cct"> <div class="card-agency-label">Carbon Capture Technologies</div> <hr> <div class="card-icon"></div> </div> </div> </div> </section> <section class="section4 epa"> <div class="flipper"> <div class="card"> <h3 class="card-title">Mercury and Air Toxics Standards (MATS)</h3> <div id="card2" data-card="Card02: Mercury and Air Toxics Standards (MATS)" class="card-copy"> <p>The U.S. Court of Appeals for the D.C. Circuit on Apr. 15 upheld MATS, rejecting numerous challenges from industry, states, and environmental petitioners. Over July and August, at least 23 states and two energy industry groups petitioned the U.S. Supreme Court to review the decision, arguing the rule would drive up power prices and harm the coal industry. The rule requires all existing coal- and oil-fired power units to meet specific, numeric emission limits for mercury, particulate matter, and acid gases by Apr. 15, 2015, unless granted a one-year extension.</p> </div> <div class="card-agency"> <div class="card-agency-label">Environmental Protection Agency</div> <hr> <div class="card-icon"></div> </div> </div> </div> </section> <section class="section5 sponsored"> <div class="flipper"> <div class="card"> <span class="card-title-sponsored">Sponsored by</span> <a href="http://www.babcock.com/" onClick="_gaq.push(['_trackEvent', 'BW Power Regulatory cascade', 'Clicks', 'BW logo Sponsor Card 2']);" target="_blank"><h3 class="card-title ir">B&W</h3><img class="sponsored-logo-card" src="images/bw-logo.png" alt="B&W"></a> <div id="sponsored2" data-card="Sponsored2: Technologies for MATS Compliance" class="card-copy"> <p>The EPA’s Mercury and Air Toxics Standards (MATS) rule established limits on mercury (Hg), particulate matter (PM), hydrogen chloride (HCl) and other hazardous air pollutants (HAPs). From standalone or integrated additives and injection systems to equipment upgrades, B&W can offer a proven, customized solution to meet your needs. Your equipment arrangement and fuel source will determine whether one or a combination of technologies can be utilized:</p> <ul> <li>Dry sorbent injection (DSI)</li> <li>Activated carbon injection (ACI)</li> <li>Scrubber additives, such as B&W’s patented Absorption Plus (Hg)™ system</li> <li>Fuel additives, such as B&W’s Mitagent™ additive</li> <li>Halogen injection </li> <li>Particulate control system additions and upgrades, including electrostatic precipitators (ESPs) and fabric filters (FFs)</li> <li>Wet or dry flue gas desulfurization (FGD) system additions or upgrades</li> </ul> <p>Possible equipment scenarios include, but are not limited to:</p> <div class="ad-chart"> <img src="images/tech-options-chart.png" alt="Technology Options by Fuel and Plant Configuration"> </div> <p>Email <a href="/cdn-cgi/l/email-protection#53363d253a213c3d3e363d27323f13313231303c30387d303c3e" onClick="_gaq.push(['_trackEvent', 'BW Power Regulatory cascade', 'Clicks', 'Email BW Sponsor Card 2']);" target="_blank"><span class="__cf_email__" data-cfemail="64010a120d160b0a09010a10050824060506070b070f4a070b09">[email protected]</span></a> to learn how we can provide a customized MATS solution for your plant.</p> </div> <div class="card-agency mats"> <div class="card-agency-label">Technologies for MATS Compliance</div> <hr> <div class="card-icon water"></div> </div> </div> </div> </section> <section class="section6 epa"> <div class="flipper"> <div class="card"> <h3 class="card-title">Cross-State Air Pollution Rule (CSAPR)</h3> <div id="card3" data-card="Card03: Cross-State Air Pollution Rule (CSAPR)" class="card-copy"> <p>The U.S. Supreme Court on Apr. 29 reversed and remanded the D.C. Circuit’s 2012 decision that vacated CSAPR. The high court concluded that the EPA’s approach in issuing the CSAPR as a federal implementation plan first was lawful. However, the D.C. Circuit’s stay of CSAPR remains in effect, and the case now goes back to the appeals court to address substantive issues left open by the Supreme Court. More legal process is required before CSAPR is put back into effect, including certain debate over timing and compliance deadlines.</p> </div> <div class="card-agency"> <div class="card-agency-label">Environmental Protection Agency</div> <hr> <div class="card-icon"></div> </div> </div> </div> </section> <section class="section7 epa"> <div class="flipper"> <div class="card"> <h3 class="card-title">PM (2.5) Standard</h3> <div id="card4" data-card="Card04: PM (2.5) Standard" class="card-copy"> <p>The EPA in December 2012 strengthened the primary annual final particle (PM2.5) national ambient air quality standard from 15.0 micrograms per cubic meter (μg/m<sup>3</sup>) to 12.0 μg/m<sup>3</sup>. On Aug. 19, the agency designated 14 areas in six states as “nonattainment” and all other areas of the country as “unclassifiable/attainment.” States must submit state implementation plans to meet the PM2.5 standard by fall 2016.</p> </div> <div class="card-agency"> <div class="card-agency-label">Environmental Protection Agency</div> <hr> <div class="card-icon"></div> </div> </div> </div> </section> <section class="section8 epa"> <div class="flipper"> <div class="card"> <h3 class="card-title">Ozone Standard</h3> <div id="card5" data-card="Card05: Ozone Standard" class="card-copy"> <p>A California federal judge this April ordered the EPA to propose primary and secondary national ambient air quality standards for ozone by Dec. 1, 2014, and finalize them by October 2015. The rule’s last revision in 2008 set the ozone standard of 75 parts per billion (ppb). But before the EPA could finalize a rule proposed in 2010 to set a stricter standard of between 60 ppb and 70 ppb, President Obama in 2011 scuttled the rule to reduce regulatory burdens and uncertainty. An August-released EPA final policy assessment provides “strong support” for revising the standard within the range of 60 ppb to 70 ppb.</p> </div> <div class="card-agency"> <div class="card-agency-label">Environmental Protection Agency</div> <hr> <div class="card-icon"></div> </div> </div> </div> </section> <section class="section9 epa"> <div class="flipper"> <div class="card"> <h3 class="card-title">316(b) Cooling Water Rule</h3> <div id="card6" data-card="Card06: 316(b) Cooling Water Rule" class="card-copy"> <p>The agency on Aug. 15 published its final rule establishing requirements under Section 316(b) of the Clean Water Act for all existing power generating facilities that withdraw more than two million gallons per day of water and use at least 25% of the water they withdraw exclusively for cooling purposes—about 540 power plants. The rule goes into effect on Oct. 14, 2014.</p> </div> <div class="card-agency"> <div class="card-agency-label">Environmental Protection Agency</div> <hr> <div class="card-icon"></div> </div> </div> </div> </section> <section class="section10 epa"> <div class="flipper"> <div class="card"> <h3 class="card-title">Effluent Limitation Guidelines</h3> <div id="card7" data-card="Card07: Effluent Limitation Guidelines" class="card-copy"> <p>A consent decree between environmental groups and the EPA reached this April suggests the final rule establishing national technology-based effluent limitation guidelines and standards to reduce wastewater discharges of pollutants from nuclear and fossil power plants will likely be delayed until September 2015. Current rules, last updated in 1983, do not “adequately” address the pollutants being discharged and have not kept pace with power sector changes, the agency says.</p> </div> <div class="card-agency"> <div class="card-agency-label">Environmental Protection Agency</div> <hr> <div class="card-icon"></div> </div> </div> </div> </section> <section class="section11 sponsored"> <div class="flipper"> <div class="card"> <span class="card-title-sponsored">Sponsored by</span> <a href="http://www.babcock.com/" onClick="_gaq.push(['_trackEvent', 'BW Power Regulatory cascade', 'Clicks', 'BW logo Sponsor Card 3']);" target="_blank"><h3 class="card-title ir">B&W</h3><img class="sponsored-logo-card" src="images/bw-logo.png" alt="B&W"></a> <div id="sponsored3" data-card="Sponsored3: Effluent Limitation Guidelines and ORP" class="card-copy"> <p>Wet flue gas desulfurization (WFGD) system process streams are being increasingly subjected to stricter wastewater regulations. System oxidation-reduction potential (ORP) is not only an important factor for predicting WFGD absorber chemistry, but also may be a predictor of process equipment corrosion and wastewater treatment requirements. <a href="https://www.powermag.com/orp-as-a-predictor-of-wfgd-chemistry-and-wastewater-treatment/?pagenum=1" onClick="_gaq.push(['_trackEvent', 'BW Power Regulatory cascade', 'Clicks', 'Learn More Sponsor Card 3']);" target="_blank">Click to learn more.</a></p> </div> <div class="card-agency elg"> <div class="card-agency-label">Effluent Limitation Guidelines and ORP</div> <hr> <div class="card-icon water"></div> </div> </div> </div> </section> <section class="section12 epa"> <div class="flipper"> <div class="card"> <h3 class="card-title">Coal Combustion Residuals</h3> <div id="card8" data-card="Card08: Coal Combustion Residuals" class="card-copy"> <p>Though proposed more than four years ago, rules governing the disposal of coal combustion residuals— including fly ash, boiler slag, and flue gas desulfurization waste products—remain in limbo. But on Oct. 29, 2013, the D.C. Circuit directed the EPA to establish a timeline for reviewing coal combustion residue regulations, and on Jan. 29, a consent decree between the agency and environmental groups was reached that requires the EPA to issue a proposed revision to its rules no later than Dec. 18, 2014.</p> </div> <div class="card-agency"> <div class="card-agency-label">Environmental Protection Agency</div> <hr> <div class="card-icon"></div> </div> </div> </div> </section> <section class="section13 ferc"> <div class="flipper"> <div class="card"> <h3 class="card-title cip">Critical Infrastructure Protection (CIP) Reliability Standards</h3> <div id="card9" data-card="Card09: Critical Infrastructure Protection (CIP) Reliability Standards" class="card-copy"> <p><strong>Cybersecurity Standards.</strong> The Federal Energy Regulatory Commission (FERC) on Nov. 21, 2013, approved with modifications the North American Electric Reliability Corp.’s (NERC’s) Version 5 CIP reliability standards, calling for the first time for all cyber assets to be categorized as low-, medium-, or high-impact assets and approving 12 new requirements with new cybersecurity controls.</p> <p><strong>Physical Security Standards.</strong> FERC proposed to approve NERC’s submitted rule to enhance physical security for the most critical bulk power system facilities on July 17. In a March 7 order, FERC determined that existing CIP reliability standards did not address physical attacks.</p> </div> <div class="card-agency"> <div class="card-agency-label">Federal Energy Regulatory Commission</div> <hr> <div class="card-icon"></div> </div> </div> </div> </section> <section class="section14 epa"> <div class="flipper"> <div class="card"> <h3 class="card-title">Radiation Protection Standards for Nuclear Plants</h3> <div id="card10" data-card="Card10: Radiation Protection Standards for Nuclear Plants" class="card-copy"> <p>The EPA on Feb. 4 proposed a thorough review of these standards, given changes in the industry and in scientific knowledge. In contrast to tightened standards for other risks, the draft version for exposure from radiological incidents proposes to substantially relax existing limits. The current standards were promulgated in 1977 to limit radiation releases and doses to the public from nuclear power plants and uranium fuel-cycle facilities.</p> </div> <div class="card-agency"> <div class="card-agency-label">Environmental Protection Agency</div> <hr> <div class="card-icon"></div> </div> </div> </div> </section> <section class="section15 nuclear"> <div class="flipper"> <div class="card"> <h3 class="card-title">Continued Storage of Spent Nuclear Fuel</h3> <div id="card11" data-card="Card11: Continued Storage of Spent Nuclear Fuel" class="card-copy"> <p>Finalized on Aug. 26, this rule replaces the 2010 Waste Confidence Rule that was vacated by a federal court in 2012 and confirms that nuclear fuel from commercial reactors can be safely managed in reactor fuel storage pools in the short term and in steel and concrete storage containers for longer timeframes. The Nuclear Regulatory Commission (NRC) on Aug. 26 also lifted a suspension on final decisions on 19 pending reactor license applications.</p> </div> <div class="card-agency"> <div class="card-agency-label">Nuclear Regulatory Commission</div> <hr> <div class="card-icon"></div> </div> </div> </div> </section> <section class="section16 credits-container"> <div class="content"> <div class="container"> <div class="row"> <div class="col-xs-12 credits"> <p>Presented By</p> <a class="ir" href="http://www.babcock.com/" target="_blank" onClick="_gaq.push(['_trackEvent', 'BW Power Regulatory cascade', 'Clicks', 'BW Logo Credits']);">B&W<img class="credits-logo" src="images/bw-logo.png" alt="B&W"> </a> <p>Sonal Patel is a POWER associate editor<br><a class="credits-twitter-link" href="https://twitter.com/POWERmagazine" target="_blank" onClick="_gaq.push(['_trackEvent', 'BW Power Regulatory cascade', 'Clicks', 'Twitter Link @POWERmagazine']);">@POWERmagazine</a>, <a href="https://twitter.com/sonalcpatel" class="credits-twitter-link" target="_blank" onClick="_gaq.push(['_trackEvent', 'BW Power Regulatory cascade', 'Clicks', 'Twitter Link @sonalcpatel']);">@sonalcpatel</a></p> <p class="ai">Design, Layout and Interactive:<br>The Digital Development Team @ AI</p> <p class="copyright">Copyright © 2014. 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A U.S. Power Industry Regulatory Update