Greenhouse Gas Performance Standards for New Stationary Sources

4 Apr

On March 27, 2012, Lisa Jackson (the EPA Administrator) signed a notice that the agency will propose a new rule to implement Greenhouse Gas (GHG) performance standards for new electric utility generating units which the agency has dubbed a “Proposed Carbon Pollution Standard for New Power Plants.”  The proposed regulation has not yet been published in the Federal Register and, thus, the notice period for comments has not commenced.  That being said, EPA has already made the draft language publicly available as well as provided summary fact sheets.

As noted above, the rule would only apply to new plants and would not apply to currently operating and newly permitted plants that begin construction over the next year.  Furthermore, the plant would only apply to fossil-fuel electrical utility generating units (EGUs), inlcuding fossil-fuel-fired boilers, integrated gasification combined cycle units and stationary combined cycle turbine units that generate electricity for sale and are larger than 25 megawatts.  Thus, EGUs burning other fuels, such as biomass would not be regulated under this rule.

EPA is considering an output-based standard of 1,000 lbs of CO2 per megawatt-hour.  The agency notes that approximately 95% of new natural gas combined cycle power plants already meet this standard without additional emissions controls.  Power plants utilizing coal would require some sort of carbon capture and storage, although this would not impose an additional burden upon utilities in states that already include carbon capture and storage (including Montana and Illinois).

In order for facilities to implement and optimize their control technology, EPA is proposing to allow facilities to use their 30-year average CO2 emissions to determine compliance.  Utilizing a 30-year average instead of an annual standard would allow new facilities time to tweak the performance of their equipment since initial emissions exceedences could be offset by subsequent compliance.

If you have any questions regarding the Proposed Carbon Pollution Standard for New Power Plants or other environmental regulation of utilities, contact us at 773-609-5320, [email protected], or through our web contact form.

Disclaimer: This article cannot, and does not, create any attorney/client or consultant/client relationship.

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