USEPA Publishes Proposed Rule to Regulate New Power Plant GHG Emissions

The USEPA’s re-proposed a rule for greenhouse gas (GHG) emissions from new power plants, published in the Federal Register on Jan. 8, 2014. See: http://www.gpo.gov/fdsys/pkg/FR-2014-01-08/pdf/2013-28668.pdf. The agency’s 2012 attempt to regulate GHG emissions from fossil fuel-fired electric generating units (EGUs) was very controversial, resulting in over 2 million public comments. But given President Obama’s recent emphasis on climate change, such rules are more critical.

GHG emission limits in the proposed rule (for new power plants only) are as follows:

• Oil-fired utility boilers and integrated gasification combined cycle (IGCC) units:
o 1,100 lb CO2/MWh gross over each 12-operating month period, or
o 1,000-1,050 lb CO2/MWh gross over an 84-operating month (7-year) period

• Proposed natural gas-fired stationary combustion units:
o 1,000 lb CO2/MWh gross for large units (> 850 mmBtu/hr)
o 1,100 lb CO2/MWh gross for small units (≤ 850 mmBtu/hr)

While there are many similarities between this and the previous 2012 proposed rule, there are several notable differences, such as higher emission limits for boilers and IGCC units. The comments deadline on the new proposed rule is set for Mar. 10, 2014.

RGGI States Reduce GHG Emission Cap By 45%

The 9 northeastern states of the Regional Greenhouse Gas Initiative (RGGI) set its 2014 emission cap at 91 million tons — a 45% reduction from last year’s cap – and will decline 2.5% additionally each year from 2015 to 2020. By 2020, power plant GHG emissions in the RGGI states are estimated to be half of its 2005 levels. This change was prompted by the ease in which power plants met existing caps and the depressed market price for GHG credits. A reduction in cap size was felt to both be an impetus to resuscitate the market and a low cost opportunity to reduce GHG emissions further.

The first GHG auction under the new cap will take place on March 5, with 18.6 million CO2 allowances available with a reserve price of $2.

CCES has the technical expertise to advise you on how to comply with federal and state GHG and other energy and emission regulations for reliable compliance and to come out ahead by saving considerable money, as well. Contact us today at 914-584-6720 or at karell@CCESworld.com.