pwr_january-2024 - 19

LEGAL & REGULATORY
A Review of Air
Quality Rules and
a Look at 2024
Greg Munson and Phil Sliger
ederal regulators in 2023 proposed a variety of new air
quality rules, and 2024 is likely to see these proposals become
final and enforceable. Here's a look at the past year,
and a look ahead at the major air regulations that will impact
power generation in 2024.
The U.S. Environmental Protection Agency (EPA) in May 2023
F
unveiled its proposed greenhouse gas (GHG) rule, likely to be
the most impactful new regulation for electric power generators.
The measure establishes new source performance standards
(NSPS) for fossil fuel-fired stationary combustion turbines
(CTs) as well as emission guidelines (EGs) for large, frequently
used existing fossil fuel-fired stationary CTs and existing fossil
fuel-fired steam generating electric generating units (EGUs).
The emission reductions required would be achieved
through implementation of the EPA's proposed Best System of
Emission Reduction (BSER), which relies primarily on a combination
of carbon capture and sequestration (CCS) and co-firing
hydrogen to encourage low-GHG fuel sources, improving EGU
efficiency, and reducing GHG emissions. The proposed standards
would be phased in as follows:
■ New and reconstructed fossil fuel-fired stationary CTs would
be subject to a BSER based on unit capacity (such as low
load, intermediate load, and baseload). Low-load units would
be required to use low-emitting fuels such as natural gas.
Intermediate-load units, in addition to adopting highly efficient
simple cycle generation, would be required to generate
with 30% low-GHG hydrogen co-firing beginning in 2032.
Baseload units, in addition to highly efficient combined cycle
generation, would be required to either generate with 30%
low-GHG hydrogen co-firing beginning in 2032 and ratcheting
up to 96% by 2038, or generate with CCS with 90%
capture by 2035.
■ Large, frequently used existing fossil fuel-fired stationary
CTs (that is, larger than 300 MW with a capacity factor
greater than 50%) would be required to either adopt highly
efficient generation coupled with CCS with 90% capture by
2035, or adopt highly efficient generation coupled with 30%
low-GHG hydrogen co-firing by 2032, ratcheting up to 96%
by 2038.
■ Existing fossil fuel-fired steam generating EGUs would be
subject to a BSER based on the unit's federally enforceable
retirement date. Units retiring prior to 2032, and units retiring
prior to 2035 that commit to operating at a capacity
factor of less than 20%, may maintain routine operations,
as long as there is no increase in emission rates. Units retiring
prior to 2040 would be required to generate with 40%
low-GHG hydrogen co-firing, achieving a 16% reduction in
emissions by 2030. Units retiring after 2040 are required to
generate with CCS with 90% capture, achieving an 88.4%
reduction in emissions by 2030.
January 2024 | POWER
■ Modified coal-fired units would be required to generate with
CCS with 90% capture, achieving an 88.4% reduction in
emissions, immediately upon modification.
While the proposed rule's compliance deadlines are years
away, and despite the lengthy lawsuits certain to follow its
finalization, the regulated community needs to make important
investment decisions soon, while planning for future
generation demand.
The EPA in April 2023 released an update to the Mercury
and Air Toxics Standards (MATS) for coal- and oil-fired EGUs.
Notable is the proposed change to the emissions standard for
filterable particulate matter (fPM), employed as a surrogate for
non-mercury metals, to 1.0E-02 lb/MMBtu, down from 3.0E-
02 lb/MMBtu. Units would have three years from the final effective
date to comply. The EPA also proposes to require that all
coal-fired EGUs comply with the new fPM emission standard
by mandating the use of particulate matter (PM) continuous
emission monitoring systems (CEMS) for the roughly twothirds
of the national fleet not currently employing it.
The EPA announced other initiatives not limited to power generation.
The agency in August released an updated Air Emission
Reporting Requirements (AERR) rule that includes dozens of
proposed changes, small and large, to Hazardous Air Pollutants
(HAPs) emission reporting. Significantly, major sources would be
required to report " all HAP " emissions directly to the EPA, unless
the state regulatory agency chose to report HAPs on behalf of the
state's HAP sources. The AERR also includes a per- and polyfluoroalkyl
(PFAS) emission reporting proposal.
In September, the EPA released an updated proposal for
Reclassification of Major Sources as Area Sources, better
known as the Once-In, Always-In (OIAI) rule. OIAI provides for
reclassification to area source status, but only through federally
enforceable safeguards that would effectively allow for no
increase in the HAP standard at the time of reclassification.
Meanwhile, the PM National Ambient Air Quality Standard
(NAAQS) is likely to be revised downward, and litigation about
state regional haze plans continues.
In addition to new air regulations, power generators are
grappling with the proposed Coal Combustion Residuals (CCR)
rule that would expand the existing CCR to inactive impoundments
at inactive facilities, as well as the new Effluent Limitation
Guidelines, proposing zero discharge as the best available
technology for flue-gas desulfurization wastewater and bottom
ash transport water. While each of these regulations is significant
on its own, their cumulative impact is sure to shape the
power generation industry for decades to come. ■
-Greg Munson is a shareholder with Gunster and represents
regulated industries in areas of state and federal environmental
law. Phil Sliger is an associate in Gunster's Orlando, Florida,
office, and a member of the firm's Environmental & Land
Use Law practice group.
www.powermag.com
19
http://www.powermag.com
pwr_january-2024

Table of Contents for the Digital Edition of pwr_january-2024
