CALIFORNIA AIR REGULATORY PROCESS FOR POWER GENERATING UNITS

1
CALIFORNIA AIR REGULATORY PROCESS FOR POWER
GENERATING UNITS

• Forbes Energy Power Conference
• April 17, 2002
• San Francisco, CA

California Environmental Protection Agency
AIR RESOURCES BOARD
2
Topics of Discussion

• Air Permit Responsibilities for New/Expanded
  Units
• Air Permit Relation to CEC Siting Process
• Emissions Standards for Power Generating Units
• Offset Requirements
• Costs Associated with Air Permits
• Power Plant Permitting History
• ARBs Ongoing Energy-Related Activities

3
Air Permit Responsibilities

• Regulatory Driver is Attainment of National and
  State AAQS
• Responsibility to Control Air Pollutant Emissions
  Sources
• Mobile Sources - Air Resources Board
• Stationary Sources - Local Air Districts
• Construction Permits Required for New/Expanded
  Thermoelectric Power Plants
• California Energy Commission if ?50 MW
• Local Air Districts if lt50 MW

4
Local Air District Role inCEC Siting Process

• Prepare Determination of Compliance (DOC) with
  Applicable Air Pollution Control Requirements
• Includes New Source Review
• Equivalent to Districts Engineering Evaluation
  and Authority to Construct
• Contained in CECs Staff Assessment
• Issue District Operating Permit
• Normal Compliance Activities

5
Air Resources Board Role inCEC Siting Process

• Technical Assistance to Local Districts and CEC
• Power Plant Siting Guidance Document
• 22 Power Plant Projects Under Review
• Review and Comment on the District DOC

6
Performance Standards Guidance for NewCentral
Station/Peaker Plants

• Combined-Cycle and Cogeneration Turbines
• NOx 2.5 ppmvd, 1-hr rolling average
• CO 6 ppmvd, 3-hr rolling average
• VOC 2 ppmvd or 0.0027 lb/MMBtu
• Simple-Cycle Turbines
• NOx 5 ppmvd, 3-hr rolling average
• CO 6 ppmvd, 3-hr rolling average
• VOC 2 ppmvd or 0.0027 lb/MMBtu
• For PM10 and SOx, Level Equal to Natural Gas
  Combustion

7
Performance StandardsDistributed Generation
Program

• Two-tiered Emissions Standards for DG Units
  Exempt from District Permit, Certified at
  Manufacturer Level
• Phase I (Jan. 1, 2003) Emission requirements
  based on BACT
• Phase II (Jan. 1, 2007) Emission requirements
  based on central station power plant levels
• Technology review by July 2005
• BACT Guidance for DG Units Subject to District
  Permit Requirements

8
Offset Requirements

• Offsets Needed for New/Expanded Sources that
  Trigger District Thresholds
• Recommended Milestones for Securing Offsets for
  Power Plant Projects
• Complete Offset Package Identified and Quantified
  at Application Submittal
• Letters of Intent Signed by Preliminary DOC
• Option Contracts Signed by Final DOC
• Secured and in Place Prior to Operation

9
Example Air Pollution Control Costs

• 500 MW Combined-Cycle Plant
• Total Plant Capital Cost 250 to 300 Million
• Typical Offset Costs
• NOx 3.3 to 5.9 Million ? PM10 1.0 to 17.8
  Million
• CO 2.4 to 8.9 Million ? SOx 0.1 to 0.6
  Million
• VOC 0.1 to 2.0 Million
• Typical BACT Capital Cost
• 6.5 to 7.5 Million
• Annual OM Cost for Plant Air Pollution
  Equipment
• 1.4 Million

10
Power Plant Projects Approved By Year (1976 to
2002)
5,848 MW
4,230 MW
Megawatts (MW)
2,143 MW
Based on data from the California Energy
Commission
11
Electricity Production - NOx Trends
Pounds per MMBTU Heat Input
12
ARBs Future Energy-Related Activities

• Continue Coordination with Districts, CEC, ISO,
  and U.S. EPA
• Expedite Power Plant Project Reviews
• Distributed Generation Certification Program and
  Guidance Updates
• SB 28X Power Plant Retrofit Regulation
• Power Plant Guidance Update