Thursday, February 10, 2011

Greenhouse gas regulations: Fact or fiction?

To what can greenhouse gas standards for fossil-fuel fired plants be compared? Remember the children’s story Jumanji? Perhaps you saw the 1995 Robin Williams’ movie based on the story. Two kids play an old magic board-game that releases a man trapped for decades, as well as a number of dangers that can only be ended by finishing the game. But as long as the kids follow the instructions and complete the game, they are promised survival.

Such is the state of the fossil-fuel fired sector when it comes to complying with greenhouse gas regulations. But compliance is no game, and the road to it is far from fiction.

“Read the instructions and follow the rules, and things can get pretty hair-rising. But if you follow the rules, you can survive it,” said a power industry representative on Feb. 4, comparing emissions regulatory compliance with Jumanji. This was one of the many comments made during the EPA-hosted listening session on greenhouse gas standards for fossil-fuel fired power plants and petroleum refineries. This first of five listening sessions was intended for electric power industry representatives.

Much of the commentary centered on a push for a sector-wide generation performance standard. Some industry representatives said EPA should offer a fleet-wide approach to allow averaging and the use of offsets. Some suggested that an emissions rate-based approach would be the most innovative and least burdensome way to implement a performance standard.

Gina McCarthy, assistant administrator for the EPA office of air and radiation, said that EPA’s goal is not to decide on a number for greenhouse gases that ought to be reached. “It’s not a cap and trade program. We do not have a greenhouse gas number that we’re looking to achieve.”

While the greenhouse gas facet of the Clean Air Act is in question, other regulations have already taken a toll on the industry. A representative from FirstEnergy Corp. mentioned retrofits recently made at the W.H. Sammis Plant in Stratton, Ohio. Efficiency on the units was lost after scrubbers were installed, the representative said. “How do we maintain our efficiency as we go forward?” Price signals help FirstEnergy and other merchants determine how to invest in their fleet, the representative said, urging EPA to set a price signal.

New Source Performance Standards (NSPS) are also a topic of debate. A representative from the American Public Power Association urged the EPA to take its time “to get NSPS right,” adding that EPA is not under a court under to have standards finalized by July.

“I will not tell you what the breadth of the New Source Performance Standard is going to look like,” McCarthy said. “EPA is interested in walking before running.”

“Walking before running” – could this be an implication that EPA will take its time in finalizing NSPS? The listening sessions and public commentary may lead EPA to prolong decisions that have many in the power industry have been rushed. Time will tell. Until then, coal-fired power producers will continue to jump through hoops, fight monsters, and weather the storms that come with living the stranger than fiction story that is emissions control compliance.

If you are unable to participate in one of the listening sessions, EPA is accepting written comments on the planned rulemakings until March 18, 2011.