New EPA Coal Ash Rules:Update and Perspectives

Dr. Jack GroppoUniversity of Kentucky

Center for Applied Energy ResearchLexington, Kentucky

Ash Disposal Regulations Timeline

• Dec 22, 2008 Kingston impoundment failure» “Another day that will live in infamy”

• Jan 18, 2009 Earthjustice sues EPA on behalf of environmental and public health groups

• March 2009 EPA issues request to evaluate stability of surface impoundments• Dec 2009 New disposal regulations promised by EPA• June 2010 Proposed regulations released by EPA

» Regulation as ‘special’ (hazardous) under subtitle C of RCRA» Federal oversight

» Regulation as non-hazardous under subtitle D of RCRA» State oversight

• June 2010 Public comment period begins• Oct 2010 Public comment period extended• Nov 2010 Public comment period ends

>450,000 comments10,000 significant comments

Ash Disposal Regulations Timelinecont’d

• May 2011 Expected date of issue• Sept 2011 Expected date of issue• Oct 2011 House passes McKinley (R-WV) bill to prohibit

regulation under subtitle C» Ash dike rupture at We Energies Oak Creek Plant, WI» Was NOT attached to transportation bill extension passed 30 March 2012» Plans to be attached to long-term transportation bill within 90 days

• Dec 2011 Expected date of issue• Feb 2012 Expected date of issue• May 2012 Expected date of issue• Dec 2012 Expected date of issue• Soon! Expected date of issue• 2014 Final rule and judicial review completion

EPA Stability Evaluation of Surface Impoundments

Request Issued March 2009219 utilities, 584 impoundments

• EPA has provided copies of final report to each facility• EPA requested each facility

– implement recommendations – provide plans for taking action

• Should facilities fail to take sufficient measures– EPA will take sufficient measures– Will devote special attention to facilities receiving ‘poor’ rating

• Feb 11, 2011: Report Issued: – None of the impoundments studied for structural deficiencies

failed to meet rigorous standards set by EPA

49 High Hazard Potential UnitsState Company Facility Name Unit Name LocationAL TVA Colbert Ash Pond 4 Tuscumbia

TVA Widows Creek Gypsum Stack StevensonAZ Arizona Electric Pwr Coop Apache Station Ash Pond 4 Cochise

Arizona Electric Pwr Coop Apache Station Ash Pond 1 CochiseArizona Electric Pwr Coop Apache Station Ash Pond 3 CochiseArizona Electric Pwr Coop Apache Station Scrubber Pond 2 CochiseArizona Electric Pwr Coop Apache Station Scrubber Pond 1 CochiseArizona Electric Pwr Coop Apache Station Evaporation 1 CochiseArizona Electric Pwr Coop Apache Station Ash Pond 2 CochiseArizona Public Service Cholla Bottom Ash Pond Joseph City Arizona Public Service Cholla Fly Ash Pond Joseph City

GA Georgia Power Plant Branch E MilledgevilleIL Dynegy Midwest Havana East Ash Pond Havana

Dynegy Midwest Wood River East Ash Pond (2 cells) AltonIN AEP Tanners Creek Fly Ash Pond LawrenceburgKY AEP Big Sandy Fly Ash Louisa

Kentucky Utilities E W Brown Auxiliary Pond HarrodsburgKentucky Utilities E W Brown Ash Pond HarrodsburgKentucky Utilities Ghent Gypsum Stacking Facility GhentKentucky Utilities Ghent Ash Pond Basin 1 GhentKentucky Utilities Ghent Ash Pond Basin 2 GhentLouisville Gas & Electric Cane Run Ash Pond Louisville

MT PPL Montana LLC Colstrip Units 1 & 2 Stage Evap. Ponds (STEP) ColstripNC Duke Energy Allen Steam Plant Active Ash Pond Belmont

Duke Energy Belews Creek Active Ash Pond Walnut CoveDuke Energy Buck New Primary Pond SpencerDuke Energy Buck Secondary Pond SpencerDuke Energy Buck Primary Pond SpencerDuke Energy Dan River Secondary Pond EdenDuke Energy Dan River Primary Pond EdenDuke Energy Marshall Active Ash Pond TerrellDuke Energy Riverbend Secondary Pond Mount HollyDuke Energy Riverbend Primary Pond Mount HollyProgress Energy Carolinas Asheville 1982 Pond ArdenProgress Energy Carolinas Asheville 1964 Pond Arden

OH AEP Cardinal Fly Ash Reservoir 2 BrilliantAEP Gavin Fly Ash Pond CheshireAEP Gavin Bottom Ash Pond CheshireAEP Muskingum River Unit 5 Bottom Ash Pond ( WaterfordAEP Muskingum River Upper Fly Ash Pond WaterfordAEP Muskingum River Middle Fly Ash Pond Waterford

PA First Energy Bruce Mansfield Little Blue Run Dam ShippingportTN TVA Bull Run Fly Ash Pond and Stilling Basin Area 2 Clinton

TVA Cumberland Ash Pond Cumberland CityTVA Cumberland Gypsum Storage Area Cumberland City

WV Energy Pleasants McElroy's Run Embankment Willow IslandAEP John E Amos Fly Ash Pond St. AlbansAEP Mitchell Fly Ash Pond MoundsvilleAEP Philip Sporn Fly Ash Pond New Haven

Comparing OptionsC D

Bevill Amendment reversed Bevill Amendment upheldnew "special waste" category created

CCRs managed from point of generation to disposal CCRs managed art point of disposalCompliance enforced by Federal government Compliance enforced by State governments

Existing Landfills Existing LandfillsWill not require retrofitting Continue operation subject to wetlands and unstabe area restrictionsWill operate under Subtitle C

Monitor groundwater, corrective action, etc.

Existing surface impoundments Existing surface impoundmentsMust stop receiving CCRs within 5 years Must install composite linerMust close 2 years after that Must close within 5 years

New LandfillsMust be updraded to engineered systems

New surface impoundments New surface impoundmentsNot allowed Must adhere to composite liner and stability requirements

All water that contacts CCRs will be considered hazardous Companies must establish websitePlants needto convert to dry systems tomanage water Post all data and reports40 hrs. training for all employees All design, monitoring and operation reportsManage ubiquitous releases verified by independent PE

Federal standards are minimums Increased reporting frequency and standardsStates can add regulations

CCRs disposed in sand and gravel pits or other fills CCRs disposed in sand and gravel pits or other fills regulated as landfills regulated

New Issues

• Twelve environmental groups on January 19, 2012, notified EPA of their intent to sue to force a schedule for completing coal ash regulations

– Required 60-day advance notice– Novel legal argument that EPA has failed RCRA requirement to evaluate regulations

every three years– Seeking review of Subtitle C exemption for coal ash, Subtitle D open dump provisions,

and applicability of Toxic Characteristic Leaching Procedure

• New Anticipated Deadlines – April –Methodology (and review of?) encapsulated uses– Fall 2012 –Large scale structural fill guidance– 2nd Quarter 2014 –Methodology un-encapsulated uses

A Hypothetical TimelineJohn Ward, ACAA Governmental Affairs Committee

ACAA Winter 2011 Meeting

• March 2012 –EPA invites beneficial users to review results of encapsulated risk evaluations

• March 2012 –EPA and ENGOs approach the court with the lawsuit and a proposed settlement agreement calling for a November 30 deadline to promulgate coal ash regulations

• April 2012 –EPA publically announces that encapsulated beneficial uses are safe and therefore nobody should worry and stigma is no longer an issue for consideration

• October 15, 2012 –EPA delivers a Proposed Final Rule for Subtitle C to OMB along with the court order to issue a rule by November 30 –effectively limiting the opportunity for other agencies to influence the Final Rule

• November 30, 2012 –immediately after the election, EPA publishes a Proposed Final Rule calling for Subtitle C regulation

Environmental Council of the States (ECOS)

• National non-profit, non-partisan association of state and territorial environmental agency leaders

• Belief– State government agencies are the keys to delivering environmental protection afforded

by both federal and state law.– ECOS plays a critical role in facilitating a quality relationship between federal and state

agencies in the fulfillment of that mission.

• Role– Articulate, advocate, preserve and champion the role of the states in environmental

management– Provide for the exchange of ideas, views and experiences among states and with others– Foster cooperation and coordination in environmental management– Articulate state positions to Congress, federal agencies, and the public on environmental

issues.

States’ Position on Coal AshR. Steven Brown, Executive Director

Environmental Council of the States (ECOS)ACAA Winter 2011 Meeting

• ECOS agrees that numerous EPA studies showthat coal ash is not hazardous

• Agrees that sufficient state regulation is present• Supports the beneficial reuse• Believes a federal regulatory program under current RCRA

rules is unwarranted• Supports current bi-partisan efforts to address coal ash via

statute

Impacts of Proposed Regulations

• “Hazardous Waste” stigma already felt– Consumers removing coal ash from specifications– Manufacturers of competing products advertising warnings of “toxic”

and “hazardous waste”

• Commercial liability insurance exclusions appearing• Standard setting organizations warning of exclusions• EPA still claims “hazardous” designation will increase

recycling– Cites non-comparable products and industries– Relies on “increasing disposal cost” scenario

• ignores historical cause for increases in recycling rate • ignores regulatory certainty as “non-hazardous” material

Impacts of Proposed Regulations

C2P2 is gone!

Formed by EPA “to promote beneficial used of CCP’s and the environmental benefits that result from their use”

Recent Decreases in Utilization

Conversion of Wet to Dry Ash Disposal

Dry Bottom Ash CollectionAverage conversion cost ̴ $20M

Dry Fly Ash CollectionAverage conversion cost ̴ $10M to $15M

Cost of new landfill for the dry ash ̴ $30M to $50M

Sources: United ConveyorEdison Electric Group

The ‘New’ Structural FillAsheville, NC Runway and General Aviation Expansion

Project Partners: Progress Energy Carolinas, Inc.Charah,Inc.

Construction Period: 2009-2014Total Area: 53.5 acresFill Volume: 2.1M yd3

Liner Composition: Bentonite geocomposite clay between 2 layers of HDPE geotextile

Utility Fuel Prices (delivered)

0

1

2

3

4

5

6

7

8

9

1019

9119

9319

9519

9719

9920

0120

0320

0520

0720

0920

1120

1320

1520

1720

1920

2120

2320

2520

2720

2920

3120

3320

35

2008

$/M

btu

Steam Coal

Natural Gas

Source: EIA Annual Energy Outlook 2011

Regulation Ambiguity (and cheap natural gas) is changing things…

• NextEra Energy Inc. (NEE) has shelved plans for new U.S. wind projects next year

• Exelon Corp. (EXC) called off plans to expand two nuclear plants• CMS Energy Corp. (CMS) canceled a $2 billion coal plant after deciding it

wasn’t financially viable in a time of “low natural-gas prices linked to expanded shale-gas supplies,”

…even for ash!

• Regional supply shortages

Source: bloomberg.com