POWER October 2014 - 66

REGULATIONS
A U.S. Power Industry Regulatory
Update
The U.S. power sector has seen a number of developments on the regulatory
front in recent months. Here's where major federal rules stand today.
GHG RULES
New power plants. The Environmental Protection Agency (EPA) in September 2013
revised a 2012 proposal to limit carbon emissions from new coal- and natural gas-fired
power units. The New Source Performance Standards developed under Section 111(b) of the
Clean Air Act (CAA) require new gas plants of 100 MW or more to emit no more than 1,000
pounds of carbon dioxide/MWh of power produced (as achievable with the latest combined
cycle technology), but calls for smaller gas plants to achieve a less-stringent standard of
1,100 pounds CO2
soon after startup (to achieve a 12-month average emission rate of 1,100 lb CO2
/MWh. Coal plants can either use carbon capture and storage technology
/MWh) or
after seven years of startup to achieve a seven-year average emission of between 1,000 and
1,050 lb CO2
Existing power plants. As directed by President Obama's Climate Action Plan, the EPA on June 2
proposed its " Clean Power Plan " emissions guidelines for existing power plants under the CAA Section
111(d). The proposal sets state-specific, rate-based goals and relies on four " building blocks " to
establish the best approach for each state to slash power sector CO2
emissions by 30% from 2005 levels
by 2030.
BACT for GHG emissions. The U.S. Supreme Court on June 23 reversed the EPA's Tailoring Rule but
affirmed the agency's authority to regulate greenhouse gases (GHGs) under the CAA's Prevention of
Significant Deterioration permit program. Specifically, the high court said the EPA could permissibly
require sources that are obligated to obtain permits " anyway " (because of their emission of non-GHG
pollutants) to adopt GHG Best Available Control Technology (BACT).
MERCURY AND AIR TOXICS STANDARDS (MATS)
The U.S. Court of Appeals for the D.C. Circuit on Apr. 15 upheld MATS, rejecting numerous
challenges from industry, states, and environmental petitioners. Over July and August, at least
23 states and two energy industry groups petitioned the U.S. Supreme Court to review the
decision, arguing the rule would drive up power prices and harm the coal industry. The rule
requires all existing coal- and oil-fired power units to meet specific, numeric emission limits
for mercury, particulate matter, and acid gases by Apr. 15, 2015, unless granted a one-year
extension.
CROSS-STATE AIR POLLUTION RULE (CSAPR)
The U.S. Supreme Court on Apr. 29 reversed and remanded the D.C. Circuit's 2012 decision that
vacated CSAPR. The high court concluded that the EPA's approach in issuing the CSAPR as a
federal implementation plan first was lawful. However, the D.C. Circuit's stay of CSAPR remains
in effect, and the case now goes back to the appeals court to address substantive issues left
open by the Supreme Court. More legal process is required before CSAPR is put back into
effect, including certain debate over timing and compliance deadlines.
316(B) COOLING WATER RULE
The agency on Aug. 15 published its final rule establishing requirements under Section 316(b)
of the Clean Water Act for all existing power generating facilities that withdraw more than two
million gallons per day of water and use at least 25% of the water they withdraw exclusively
for cooling purposes-about 540 power plants. The rule goes into effect on Oct. 14, 2014.
66
www.powermag.com
POWER | October 2014
/MWh.
EPA
EPA
EPA EPA

http://www.powermag.com

POWER October 2014

Table of Contents for the Digital Edition of POWER October 2014