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Overview of Environmental Performanceof Power Plants in Texas
May 2010
Legislative advertising paid for by: John W. Fainter, Jr. • President and CEO Association of Electric Companies of Texas, Inc.1005 Congress, Suite 600 • Austin, TX 78701 • phone 512-474-6725 • fax 512-474-9670 • www.aect.net
2
AECT Principles
• AECT is an advocacy group composed of member companies committed to:
- Ensuring a modern, reliable infrastructure for the supply & delivery of electricity.
- Supporting efficient competitive markets that are fair to customers and market participants.
- Supporting consistent and predictable oversight and regulation that will promote investment and ensure the stability of Texas’ electric industry.
- Promoting an economically strong and environmentally healthy future for Texas, including conservation and efficient use of available resources.
• AECT member companies remain dedicated to providing Texas customers with reliable service and are committed to the highest standards of integrity.
The Association of Electric Companies of Texas, Inc. (AECT) is a trade organization of investor-owned electric companies in Texas. Organized in 1978, AECT provides a forum for membercompany representatives to exchange information about public policy, and to communicate withgovernment officials and the public. For more information, visit www.aect.net.
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A common refrain is that CO2 emissions generated in Texas are higher than inother states. However, it is critical to view that in the context of other truths:
− Texas generates more electricity than any other state; in fact, Texas produces almost80% more electricity than the next most generating state.1
− Much of the CO2 emitted in Texas results from the generation of “products” that arevery significant to our state and nation. For example, Texas produces about:
− 60% of petrochemicals produced in the U.S.− 30% of gasoline and diesel refined in the U.S.− 10% of electricity generated in the U.S.
− The dollars of gross product produced in Texas per ton of CO2 emitted is high, and itincreased by more than 1000% between 1963 and 2001.
− The ratio of the amount of CO2 emitted per MWh of electricity generated in Texas islower than half of the states that have more than a nominal amount of coal-fired or oil-fired electricity generation (see previous slide).
CO2 Emissions in
Context of Texas’ Economy
1Source: EIA, 2008 State Electricity Profiles
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Technical Feasibility of
CO2 Reductions
Technology EIA 2008 Reference Target
Efficiency Load Growth ~ +1.05%/yr Load Growth ~ +0.75%/yr
Renewables 55 GWe by 2030 100 GWe by 2030
NuclearGeneration 15 GWe by 2030 64 GWe by 2030
Advanced CoalGeneration
No Heat Rate Improvementfor Existing Plants
40% New Plant Efficiency by 2020–2030
1-3% Heat Rate Improvementfor 130 GWe Existing Plants
46% New Plant Efficiencyby 2020; 49% in 2030
CCS None Widely Deployed After 2020
PHEV None 10% of New Light-Duty VehicleSales by 2017; 33% by 2030
DER < 0.1% of Base Load in 2030 5% of Base Load in 2030
Chart Source: EEI and EIA
5Source: EPA Clean Air Markets Division – 2008 Acid Rain Program Data
0.103Texas0.222National
2008 NOx EmissionRate Averages
(lbs/mmBtu)Area
Over 80% of the fossil-fueledelectricity produced in Texas
comes from East Texas.
0.395NM
0.103TX
0.247OK 0.223
AR
0.156LA
Texas has the largest emissions of any state since it produces ~80% more power than the next ranked state.
Texas Is Already Leading the Way
in Clean Power Plants
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– HGA SIP- 86% overall reduction from 1997
– DFW SIP- 88% overall reduction from 1997
– Beaumont SIP- 45% reduction from 1997
– East Texas SIP- 51% reduction from 1997
Electric Generator-NOx Reductions Achieved Under
TCEQ 1-hr Ozone SIP Rules
Between 2000 and 2005, electric generatingcompanies in Texas spent over $1 billion on NOx
emission reductions alone.
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Texas’ Electric Generating
Plants Among Lowest NOx
Emitters in the Nation
NOx
0.000
0.100
0.200
0.300
0.400
0.500
0.600
0.700
0.800
SD
ND
NM
NE
OH
UT
KY
WY
IN
MN
TN
PA
DE
MI
MT
KS
MD
CO
DC
OK
AL
VA
MS
MO
WV IL
AR
GA IA
AZ FL
WI
SC LA
NC
VT
WA
NV
OR
NY
TX
NH
NJ
MA
CT
ME
ID RI
CA
Source: EPA Clean Air Markets Division – 2008 Acid Rain Program Data
Texas has the 9th
lowest average NOxemissions rate.
NO
x (
lb/
MM
Btu)
U.S. Average-0.222 lb/mmBtu
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Notes:NOx Emission Rates for New Coal-Fired Power Plants range from 0.05 to 0.08 pounds per million BtuNOx Emission Rates for New Gas-Fired Power Plants are approx. 0.015 pounds per million BtuSource: EPA Clean Air Markets Division – 2008 Acid Rain Program Data
NO
x (
lb/
MM
Btu)
Average Emissions Rates of NOx fromExisting Texas and U.S. Power Plants
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Texas’ Electric Generating
Plants Among Lowest SO2
Emitters in the Nation
SO2 Rank
0.000
0.200
0.400
0.600
0.800
1.000
1.200
1.400
1.600
1.800
MD
PA
GA
OH
DE
IN
MI
ND
NH
AL
TN
WV
VA KY
SC
MO
SD
DC NE
NC
WI
IA IL
KS
AR
MN
MS
MA FL
WY
TX
OK
LA
CO NY
NJ
MT
OR
NM
AZ UT
CT
NV
ME
WA
VT
CA RI
ID
Source: EPA Clean Air Markets Division – 2008 Acid Rain Program Data
Texas has the 19th
lowest average SO2emissions rate.
SO
2 (
lb/
MM
Btu)
U.S. Average-0.564 lb/mmBtu
10
Average Emission Rates of SulfurDioxide from Existing Texas andU.S. Power Plants
SO
2 (
lb/
MM
Btu)
Source: EPA Clean Air Markets Division – 2008 Acid Rain Program Data
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1995-2008 Emission Rate Trends
Nitrogen Oxides(NOx)
lb./mmBtu
Sulfur Dioxide(SO2)
lb./mmBtu
0.1030.2220.3160.56420080.1030.2370.3210.64420070.1110.2550.3380.70220060.1160.2680.3490.75320050.1240.2860.3530.77920040.1420.3200.3900.81520030.1730.3480.3840.79420020.2210.3730.3850.84320010.2610.3990.3800.87520000.2860.4400.4810.99919990.3070.4810.4851.05819980.3100.5090.5231.09319970.3140.5180.5271.09619960.3130.5510.5171.0861995TexasNationTexasNationYear
1995 - 2002 data are from the Acid Rain Program Scorecard Table B12003 - 2006 data are from the Clean Air Markets Division database for the Acid Rain Program
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Federal Clean Air Interstate Rules (CAIR)− Requires additional NOx and SO2 emissions reductions from power plants in
2009, 2010, and again in 2015, with a cap and trade program.− The NOx and SO2 emissions from all new units must “fit” under the 2009, 2010,
and 2015 caps; such emissions are not in addition to those caps.− TCEQ has recently revised its rules to implement CAIR.
Regional Haze− Requires reductions in NOx, SO2, and Particulate Matter (PM) emissions based
on best available retrofit technology (BART) for different types of facilities,including electric generating units, industrial boilers, and refineries.
− EPA has decided that NOx and SO2 emissions reductions made for CAIR willsuffice for the NOx and SO2 emissions reduction requirements under RegionalHaze.
− The TCEQ is developing rules to implement BART.
AdditionalEmission Reductions
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Giving Back to theEnvironment
• AECT member companies help to improve our environment through stewardship,support for new technologies and partnership with other agencies.
Environmental Stewardship- Reducing releases of chlorofluorocarbons fromelectrical equipment- Recycling coal combustion products- Educating schools and communities aboutrenewable energy- Designating land and reservoirs for publicrecreational use- Preserving and restoring forests by plantingmillions of trees- Helping other industries adopt pollution-prevention plans- Launching education campaigns to helpcommunities save energy- Creating wetlands and wildlife habitats oncompany properties- Reclaimed water utilization- Offering renewable energy products to retailcustomers
Environmental Partnerships
- Climate Challenge Program- Energy Star- Energy Smart Schools- Environment Research Program
- EPA SF6 Partnership program
- Mickey Leland Internship Program-TCEQ Teaching Environmental Science- Green Lights- Habitat Protection- Learning From Light!- Millennium Council- Million Solar Roofs- National Energy Education Development(NEED) Project- Natural Gas Star
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Selected EnvironmentalPrograms and Fees
• The electric industry is among the most heavily regulated in the nation, complyingwith hundreds of regulations and paying millions of dollars in fees annually.
Selected Current
Environmental Programs
- Compliance with National Ambient Air QualityStandards- State Implementation Plan- NOx reductions for electric generating units- Clean Air Interstate/Clean Air Mercury Rules- New Source Review (NSR)Prevention of Significant Deterioration- Non-attainment NSR, including offset- State Minor NSR- Title V and Acid rain permits- Compliance Assurance Monitoring- Continuous Emissions Monitoring Systems- Toxic Release Inventory- Monitoring cooling water- Mass Emission Cap and Trade Program
Selected Current
Environmental Fees
- Title V federal operating permit fees- Air inspection fees- Air quality permit fees- Air quality permit renewal fees- Wastewater inspection fees- Wastewater permit application fees- Water quality fees- Potable water fees- Water use permit application fees- Hazardous waste generation fees- Non-hazardous waste fees- Low level radioactive waste fee- Injection well fee
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Q&A
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