Barry Wallerstein, D.Env Executive Officer, South Coast AQMD CFEE Workshop August 30, 2007
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The Intersection of Energy Reliability Objective and Other Environmental Policies and Programs, and the Role of Markets Barry Wallerstein, D.Env Executive Officer, South Coast AQMD CFEE Workshop August 30, 2007
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The Intersection of Energy Reliability Objective and Other Environmental Policies and Programs, and the Role of Markets. Barry Wallerstein, D.Env Executive Officer, South Coast AQMD CFEE Workshop August 30, 2007. Air Quality Challenges. Localized Exposure/Environment Justice Air Toxics - PowerPoint PPT Presentation
Transcript of Barry Wallerstein, D.Env Executive Officer, South Coast AQMD CFEE Workshop August 30, 2007
The Intersection of Energy Reliability Objective and Other Environmental
Policies and Programs,and the Role of Markets
The Intersection of Energy Reliability Objective and Other Environmental
Policies and Programs,and the Role of Markets
Barry Wallerstein, D.EnvExecutive Officer, South Coast AQMD
CFEE Workshop August 30, 2007
Air Quality ChallengesAir Quality Challenges
Localized Exposure/Environment Justice
– Air Toxics– Particulate Matter (PM2.5)
Regional Pollutants• Particulate Matter (PM2.5)• Ozone (Smog)
Climate Change
– GHG
Days Exceeding The Federal 1-Hour Ozone Standard
0
10
20
30
40
2005 2006 2007
Nu
mb
er
of
Da
ys
South Coast San Joaquin Houston
Maximum Observed Annual 1-Hour Ozone Concentration
0
50
100
150
200
2005 2006 2007
PP
B
South Coast San Joaquin Houston
Federal Standard
Days Exceeding the Federal 8-Hour Ozone Standard
0
20
40
60
80
2005 2006 2007
Num
ber
of D
ays
South Coast San Joaquin Houston
Maximum Observed Annual 8-Hour Ozone Concentration
0
50
100
150
200
2005 2006 2007
PPB
South Coast San Joaquin Houston
Federal Standard
PM2.5 Annual Maximum Concentration
0
5
10
15
20
25
2004 2005 2006Mic
rogr
ams
Per C
ubic
M
eter
South Coast San Joaquin Sacramento Bay Area
Federal Standard
PM2.5 Maximum 24-Hour Average Concentration
0
50
100
150
2004 2005 2006
Mic
rogr
ams
Per
Cubi
c M
eter
South Coast San Joaquin Sacramento Bay Area
Federal Standard
CO2 Emission Comparison(2002, In Million Metric Tones )
CO2 Emission Comparison(2002, In Million Metric Tones )
124251
37529
81
110
0
100
200
300
400
500
600
SCAQMD Others State Total
Other Sources Power Plants
153
332
485
Comparison of Emissions from Power Generation Units
Comparison of Emissions from Power Generation Units
0.16 0.42 0.8
4.4
7.0
(20-30)
(3.0 - 4.0)
(1.5 - 3.0)
(0.05-0.12)0
5
10
15
20
25
30
Controlled
Power Plant
(CC Turbine
or Boiler)
Controlled
Peaking
Turbine
Controlled IC
Engine or
Micro Turbine
Uncontrolled
Peaking
Turbine
Uncontrolled
Power Plant
(Boiler)
Uncontrolled
Power Plant
(Turbine)
Controlled
Emergency IC
Engine
Controlled
Diesel IC
Engine
Uncontrolled
Diesel
Emergency IC
Engine
NO
x (l
b/M
W-H
r) .
Actions Taken By SCAQMDDuring 2000-2001 Energy Crisis
Actions Taken By SCAQMDDuring 2000-2001 Energy Crisis
Issued SCAQMD Executive Orders Implemented Governor’s Executive Orders Modified Emergency ICE Permit Conditions Expedited New Power Plant Permitting Developed State Mitigation Fund for New Peakers Approved inter-district transfer of ERCs Amended RECLAIM Program Developed R1309.1
Electricity Generation ChallengesElectricity Generation Challenges In-Basin Aging Power Plants Scarcity of Emission Reduction Credits
(ERC) Transmission Line Limitations Reliability Facility Siting/ Env. Justice Concerns
Aging Power Plants in South Coast Area (as of 2010)
Aging Power Plants in South Coast Area (as of 2010)
Age of Power Plants
Generation Capacity (MW)
Total In-Basin
Generation% of Total
30 years or older 7,826 12,225 64%
35 years or older 7,201 12,225 59%
40 years or older 6,756 12,225 55%
45 years or older 4,112 12,225 34%
50 years or older 1,597 12,225 13%
PM ERC Market PricePM ERC Market Price
* Includes January through July 2007 data
Air Quality and Power Generation Intersections
Air Quality and Power Generation Intersections
Need Determination
– New Capacity Needed for Growth and Replacement
– Base load vs. peaking units Technology Selection
– DSM/Renewables vs. Fossil Siting
– System Stability vs. Localized/EJ Impacts
SCAQMD R1309.1 Priority Reserve
SCAQMD R1309.1 Priority Reserve
Tiered requirements based on location that reflect current air quality
Mitigation fees for ERCs to invest in pollution reduction projects
– $92,000/lb PM; $34,400/lb SOx ERCs to be issued for
– First 2700 MW units unless approved by the Board
– After CEC approval and long-term contracts except for serving native load
Proposed ProjectsProposed ProjectsProject Capacity
(MW)
AES Highgrove 300
BP Carson/Edison – Carson Hydrogen Power Project
500
CPV Ocotillo 850
El Segundo Repower 630
Reliant Energy 656
Riverside Energy Resource – City of Riverside
96
Sun Valley 500
Vernon Power Plant – City of Vernon
943
Walnut Creek 500
Total 4,975
Other IssuesOther Issues
Long Lead Time for Project Development
Uncertainty
–Regulatory–Business
Other SCAQMD CommitmentOther SCAQMD Commitment
Energy Resource Planning ($1,000,000)
– Initial RFP for $450,000 Feasibility/Pilot Study
– Advanced PM2.5 Control Technologies ($4,000,000)
Policy RecommendationPolicy Recommendation
Enhanced Energy Resource Planning
– Integrate Energy and Air Quality Policies–Develop a Master Plan –Determine Conformity to Master Plan–Establish Mandatory Retirement Schedule
for Aging Plants
echang
