Energy Policy and Air Quality

Joseph Hower, P.E., DEE

Managing Principal

ENVIRON International Corporation

Los Angeles, California

ENERGY POLICY and AIR QUALITY

Air quality issues have historically had little impact on energy policy

Recent events have changed that dramatically

PM2.5 and climate change will drive this much faster

ENERGY POLICY and AIR QUALITY

Energy Policies affect all combustion sources of air pollution, both mobile and stationary

ENERGY POLICY and AIR QUALITY

Combustion Sources emit:– Primary PM, comprised mainly of elemental and

organic carbon that forms from the carbon in fuel– Precursor gases that are the main components of

secondary PM:SOx which can form sulfatesNOx which can form nitrates(To a lesser extent ammonia, commonly a by-

product of NOx control equipment, which can neutralize both nitrate and sulfate to form salts in the solid phase)

Energy and Air Policy Interplay

Air Quality is directly affected by Energy Policy, Air Quality considerations historically had less

influence on Energy Policy than other economic and political factors such as:– energy efficiency– domestic and foreign fuel availability, and – foreign policy

Air policies and the need for emissions controls increasingly affect economics of using certain fuels to generate power

NRDC has a formal program to oppose every new coal-fired power plant

California’s energy policy increasingly driven by AB32 and diesel exhaust cancer concerns

PM2.5 Policies and the Energy Industry

New Source Review and PSD: Goal to reduce major stationary sources of pollutants to meet National and State AAQS. – Limited direct focus on energy

Utilities and other combustion sources are significant sources of primary PM2.5 and secondary PM precursors.

NSR program not yet developed for PM2.5

Regional Haze: Goal to improve visibility in Parks and Wilderness areas. Major source of degraded visibility is long range transport of PM and secondary PM from point sources

California Policies/History with Energy and Air Quality

Energy shortages in the 70s’s– Primary concern was energy, little thought of environmental

issues

2000/2001 energy shortage – Governor Davis Executive Orders to expedite Power Plant Permits, in 30 days

Power crisis caused many facilities to run diesel generators

Power crisis and lack of planning led to RECLAIM crisis in the South Coast AQMD

Affected non-power sector RECLAIM facilities

Some power plants curtailed operations to avoid air permit and/or RECLAIM violations, then were prosecuted for price manipulation

California Policies/History with Energy and Air Quality (cont)

AB32 – should lead to energy efficiency gains through reduced fuel use and thus lower levels of emissions. PM2.5 impact of switching to renewable fuels is unclear

ARB’s Zero-Emissions Vehicle mandate: EV’s need electricity. Mandate may have led to more hybrids and Partial ZEV (PZEVs), which lowers NOx emissions per vehicle and thus likely less nitrates

Environmental issues starting to drive energy conservation in other ways– LEED buildings– Driving vehicle fuel economy improvements– Need more direct linkage between conservation and

environmental

Natural Gas?

Natural gas often viewed as clean-burning but…

Burning natural gas still produces enough PM10 that offsets are sometimes needed, which are often difficult to obtain– Drove amendments to Rule 1309.1

SB 1368 Requires that new base load generation generate no more GHG emissions than a gas-fired combined cycle plant, likely drive more such plants, both in and out of CA

Switching to natural gas is a strategy to reduce diesel generated PM from mobile sources – but when accounting for leaks and unburned methane, this switch could result in higher GHG emissions compared to diesel due to the methane emitted

Natural Gas? (cont)

Natural gas demand growing and domestic supply shrinking

Prices rising, affecting consumers directly and indirectly

LNG terminal development has been difficult– SES turned down by City of Long Beach, court– Other proposed facilities facing fierce opposition– SCAQMD concerned about “hot gas”

Energy Policy Act of 2005

Preemption of State Authority over Liquefied Natural Gas (LNG) Terminals

Limitation on State Authority to Require Clean Fuels for Motor Vehicles

Section 1541 effectively bars a state from adopting a new requirement for cleaner burning fuel unless: – (1) the fuel would not increase the total number of fuel

formulations in existence in 2004 and – (2) use of the same fuel is already required elsewhere in

that petroleum distribution district. In practice, this would block state requirements for any new and innovative type of clean burning fuels.

Section 1541 allows EPA to suspend existing state clean fuel requirements under “extreme and unusual fuel and fuel additive supply circumstances.”

Some tax credits for biofuels and other technologies http://oversight.house.gov/bills.asp?ID=35 House Oversight Committee

Renewable Fuels

Many pushing use of renewable or biofuels

Subsidies and requirements for ethanol

Initial assumption is that biofuels are carbon neutral because the carbon release from combustion was absorbed during the plant growth cycle– Ignores what would have happened without fuel crops– Ignores refining emissions, which can also be

significant– Land clearing operations can release huge amounts of

CO2

Concerns that biofuels are driving up food prices

Contact Information

Joseph Hower, PE, DEEManaging Principal ENVIRON International Corporation707 Wilshire Blvd. Suite 4950Los Angeles, CA 90017

(213) 943-6319(949) 798-3646jhower@environcorp.com

Also see www.environcorp.com