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Efficiency Is the “ACE” to
Greenhouse Gas Compliance
Daniel R. Wilkus, P.E. Director, Air Programs, Evergy
AndRobynn Andracsek, P.E.
Associate Environmental Engineer, Burns & McDonnell
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Design-Build Project Delivery
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Today’s Discussion
• The Storied History of Greenhouse Gas (GHG) Regulations
• Affordable Clean Energy (ACE) Rule Overview
• ACE Compliance Implementation
• Potential Impediments to Compliance
• GHG Emission Trends for Affected ACE Units
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The Storied History of GHG Regulations
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2007 Massachusetts v. EPA: GHGs are covered by CAA and can be regulated if determined to be a danger to human health
2009 Endangerment Finding: Six GHGs threaten current and future humans
2010 Tailpipe Rule: Fuel efficiency standards for light vehicles
Tailoring Rule: Exempts facilities
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ACE Rule Overview
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• States are instigators; EPA is oversight• State plans due July 8, 2022 (three years from
publication of final rule)• EPA has 6 months from date of state plan submission to
determine completeness • EPA has 12 months from completeness determination
to approve a plan submission• Compliance schedules for designated facilities must
initiate within 24 months after a state plan submission
Latest initiation of facility changes: July 8, 2024
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ACE Compliance Timeline
ACE Rule Overview
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EPA’s “candidate technologies” for Heat Rate Improvement (HRI) include: • Neural Network/Intelligent Sootblower• Rebuild/Replace Boiler Feed Pumps • Air Heater and Duct Leakage Control • Variable Frequency Drives • Steam Turbine Blade Path Upgrades • Redesign/Replace Economizer • Implement Best Operating and Maintenance (O&M)
Practices8
Innovative Engineering Solutions - Best System of Emission Reduction (BSER) - “The ACE to Compliance”
ACE Rule Overview
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Benefits: • Increased efficiency means lower greenhouse gas
emission per power output (lb/MW-hr basis)• BACT-type analysis allows for plant specific differences• Each state will determine its own limits for each unit
Challenges• Can trip PSD• Some improvements are difficult to measure• What is the compliance method?
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Innovative Engineering Solutions
ACE Rule Overview
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• State must set an emission rate (likely lb/MW-hr, net or gross) and specify how these limits will be verified (CEM data, annual test, other)
• Summary of how each standard of performance was determined• Evaluation of each of the 8 HRI for each facility• Demonstration that each designated facility’s standard of
performance is: 1. Quantifiable, 2. Permanent, 3. Verifiable, and 4. Enforceable
• Cost and remaining unit life can be considered
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What must States include in their Plan submittal?
ACE Rule Overview
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ACE Compliance Implementation
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Evergy Overview
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Evergy Overview
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Step 1 - Determine historical CO2 baseline emissions• 5 year or 10 year look back?
Step 2 - Evaluate status of BSER technologies for each affected unit.• Rule does not require installation of these technologies
Step 3 - Calculate unit-specific emission limitationStep 4 - Establish future compliance averaging period
• 12, 24, or 36 months?Step 5 - Determine methodology for demonstrating ongoing compliance
• Continuous Emission Monitors (CEMs)• Periodic stack testing• Startup/Shutdown• Bias adjusted data
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Steps to compliance
ACE Compliance Implementation
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• Some States are very active while others are not• Requesting data from each affected source
• Historical CO2 emissions data, generation, fuel data, etc.• Status of BSER technologies
• Meeting with stakeholders• Holding public meetings/hearings• Evaluating mechanism to ensure federal enforceability of unit-
specific emission limitations• Determining internal approval process
• Legislative involvement
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What are the States doing nation-wide?
ACE Compliance Implementation
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Missouri
• The Missouri Department of Natural Resources (MDNR) is the lead agency
• MDNR has an established group working on ACE Implementation
• Prepared/submitted two information requests to affected units
• Held stakeholder and public meetings
• Establish unit-specific emission limitation by the end of 2020
Kansas
• The Kansas Department of Health and Environment (KDHE) is the lead agency
• KDHE has several individuals assigned to ACE compliance
• Held stakeholder and public meetings
• The affected units have hired a third party consultant for ACE implementation
• Establish unit-specific emission limitation by the end of 2020
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What are the States doing locally?ACE Compliance Implementation
Information Request for Missouri Designated Facilities under the Affordable Clean Energy (ACE) Rule Heat Rate Improvement (HRI) Analysis
Please review the following information request. An optional spreadsheet has been provided for facilities to provide the information requested with regards to the facility baseline and future plan sections below. The spreadsheet should not be used to provide the information requested in the upgrade studies section.
Facility Baselines:
Facilities should provide information about each individual electric generating unit at their facility that meets the applicability criteria for a designated facility as found in the ACE rule at 40 CFR 60.5775a (hereafter referred to as “affected units”).
A. Current Heat Rate Technology and Practices a. Discussion of current technology/work practices for each affected unit with
comparisons to the BSER candidate technologies/work practices listed in section III.E.2.d. of the ACE Rule (starting at 84 FR 32538). The response should provide the date when the technology or work practice was first installed, upgraded, and/or or implemented. The response should also provide the capital cost incurred for installing or upgrading any currently installed technology, and a discussion about the remaining useful life and/or replacement schedule for the technology. The response should also provide the ongoing operating maintenance costs for any current technologies or work practices for each unit.
i. Neural Networks/Intelligent Sootblowers 1. Neural Networks 2. Intelligent Sootblowers
ii. Boiler Feed Pumps iii. Air Heater and Duct Leakage Control iv. Variable Frequency Drives (VFDs)
1. VFDs on Induced Draft Fans 2. VFDs on Boiler Feed Pumps
v. Blade Path Upgrade (Steam Turbine) vi. Redesign/Replace Economizer
vii. HRI Techniques – Best Operating and Maintenance (O&M) Practices 1. Adopt HRI Training for O&M Staff 2. Perform Onsite Appraisals to Identify Areas for Improved Heat Rate
Performance 3. Improved Steam Surface Condenser Cleaning
For items B and C below, facilities should provide this information for the calendar years 2014-2018 for each affected unit at the facility. For facilities that measure, record, and/or report this information using different methods than those listed below, the facility may provide multiple sets of this
Information Request for Missouri Designated Facilities under the Affordable Clean Energy (ACE) Rule Heat Rate Improvement (HRI) Analysis
Please review the following information request. An optional spreadsheet has been provided for facilities to provide the information requested with regards to the facility baseline and future plan sections below. The spreadsheet should not be used to provide the information requested in the upgrade studies section.
Facility Baselines:
Facilities should provide information about each individual electric generating unit at their facility that meets the applicability criteria for a designated facility as found in the ACE rule at 40 CFR 60.5775a (hereafter referred to as “affected units”).
A. Current Heat Rate Technology and Practices
a. Discussion of current technology/work practices for each affected unit with comparisons to the BSER candidate technologies/work practices listed in section III.E.2.d. of the ACE Rule (starting at 84 FR 32538).
The response should provide the date when the technology or work practice was first installed, upgraded, and/or or implemented. The response should also provide the capital cost incurred for installing or upgrading any currently installed technology, and a discussion about the remaining useful life and/or replacement schedule for the technology. The response should also provide the ongoing operating maintenance costs for any current technologies or work practices for each unit.
i. Neural Networks/Intelligent Sootblowers
1. Neural Networks
2. Intelligent Sootblowers
ii. Boiler Feed Pumps
iii. Air Heater and Duct Leakage Control
iv. Variable Frequency Drives (VFDs)
1. VFDs on Induced Draft Fans
2. VFDs on Boiler Feed Pumps
v. Blade Path Upgrade (Steam Turbine)
vi. Redesign/Replace Economizer
vii. HRI Techniques – Best Operating and Maintenance (O&M) Practices
1. Adopt HRI Training for O&M Staff
2. Perform Onsite Appraisals to Identify Areas for Improved Heat Rate Performance
3. Improved Steam Surface Condenser Cleaning
For items B and C below, facilities should provide this information for the calendar years 2014-2018 for each affected unit at the facility. For facilities that measure, record, and/or report this information using different methods than those listed below, the facility may provide multiple sets of this information for each affected unit based on the various methods used by the facility. For each set of information provided, the facility should provide an explanation of the method used to measure, record, and/or report this information along with the purpose and/or requirement for using such method. Similarly if the data set includes substituted data for missing time periods, the facility may identify all the substituted data in the submission.
B. CEMS Data
a. Hourly heat input (mmBTU) from 2014 – 2018
b. Hourly CO2 emissions (lbs) from 2014-2018
c. Hourly energy generation (MWh) both gross and net
C. Fuel input data
a. Monthly mass of coal input (tons) from 2014-2018
b. Monthly average heat content of coal used (mmBTU/ton) from 2014-2018
c. Monthly mass input of other fuel types (provide the unit of measurement) from 2014-2018
d. Monthly average heat content of other fuel types (mmBTU/unit) from 2014-2018
e. Monthly calculated CO2 emissions (tons)
f. Monthly energy generation (MWh) both gross and net
Upgrade Studies:
For each of the seven BSER technology categories in ACE, the facility should provide the following analysis for each affected unit at the facility. The facility should provide this information and discuss the feasibility and impact of each technology upgrade, even if the particular technology upgrade will have a negligible heat rate improvement. If the current unit is already meeting the BSER description in ACE for the current technology, and information regarding the current technology or work practice has already been provided in response to the facility baseline questions, no additional study or information for that particular technology or work practice is needed at this time.
The following information should be provided based on previously performed engineering feasibility studies if such studies are available. For previous studies, the facility should provide the date the study was performed and the company that performed the study. If such previous studies are not available, facilities may defer to the charts in the federal ACE rule. Alternatively, facilities may perform new feasibility studies if no previous study is available and the facility does not wish to use the charts provided in the ACE rule for any of the seven candidate technology. For any previous or new study provided, the study should provide an evaluation of the following factors assuming the current unit is upgraded in order to meet the description for BSER described in the ACE rule for each of the seven BSER technology categories. When provided the anticipated heat rate improvement potential of a project, the study should assume each upgrade is installed or implemented independently of any other upgrades. The facility should provide any calculations and engineering analysis needed to justify the responses provided.
a. Feasibility
b. Detailed cost estimate of upgrading the current unit (capital cost)
c. Detailed explanation of the ongoing operating and maintenance costs associated with the upgrade
d. Anticipated percent improvement in heat rate
e. Anticipated degradation of the technology and the impact of the anticipated degradation on heat rate for the unit
f. Anticipated useful life of the upgrade
Interactive Effects
If any of the technology upgrade options or work practice improvements identified in the upgrade study would have interactive effects that would impact the cumulative percent heat rate improvement such that the improvement would not just be a sum of the independent heat rate improvements, please provide a discussion of these interactive effects. Please include along with this discussion the appropriate calculations and reasoning for such anticipated interactive effects.
Future Plans
Discuss future plans for the facility. Include the following, and any other relevant information.
a. Projections and discussion of future electrical generation at each unit, with particular regard to increases or decreases in generation/utilization.
b. Planned upgrades which are not part of BSER as identified in ACE which may have impact on either gross or net heat rate (e.g. if a new emission control technology upgrade is planned that will draw auxiliary load from the facility, thus affecting net heat rate).
c. Plans to change fuel sources or ratios in the next 10 years if such plans exist.
d. Plans to retire the facility in the next 10 years if such plans exist.
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Potential Impediments to Compliance
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• Final Rule did not include NSR exemption• Lack of exemption could subject affected units to NSR
• Construction permit• Best Available Control Technology (BACT)
• Substantially increases the costs of BSER technologies• Steam turbine blade path upgrades • Redesign/replace economizer
• Impacts the remaining useful life of the affected unit
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New Source Review (NSR) Exemption
Potential Impediments to Compliance
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GHG Emission Trends for Affected Units
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Since 2005 GHG emissions have:
• Decreased by 10 percent from all sources
• Decreased by 27 percent from electricity generation
• At the same time the economy has grown by 25 percent
• Global GHG emissions have grown by 24 percent
Source U.S. EPA
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GHG Emission Trends for Affected UnitsNation-wide Emissions Trend
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Evergy’s Downward Emissions Trend
GHG Emission Trends for Affected Units
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GHG Emission Trends for Affected UnitsInstalled Wind Power Capacity (MW)
2005 2019
Total Installed Capacity: 105,583 MWTotal Installed Capacity: 9,174 MW
Source: Global Energy Concepts (DNV-GEC) Database
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Evergy’s Shift to Renewables
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Energy Produced
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Summary
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Summary
• The Clean Power Plan would have achieved CO2 emissions reductions through energy shifting while ACE will accomplish reductions through energy efficiency at the affected unit
• The ACE Rule will establish unit-specific CO2 emission limitations for each affected unit
• The States are obligated to take the lead with ACE compliance implementation working with the affected sources in their state
• Whether ACE or other GHG regulations are implemented, affected sources have/will achieve substantial GHG emission reductions
• Affected units likely would achieve greater CO2 emission reductions if there were sufficient NSR exemptions
• All bets could be off depending on the election outcome in November 2020
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Efficiency Is the “ACE” to Greenhouse Gas ComplianceSlide Number 2Today’s DiscussionThe Storied History of GHG RegulationsThe Storied History of GHG RegulationsACE Rule OverviewACE Rule OverviewACE Rule OverviewACE Rule OverviewACE Rule OverviewACE Compliance ImplementationEvergy OverviewEvergy OverviewACE Compliance ImplementationACE Compliance ImplementationACE Compliance ImplementationPotential Impediments to CompliancePotential Impediments to ComplianceGHG Emission Trends for Affected UnitsGHG Emission Trends for Affected UnitsGHG Emission Trends for Affected UnitsGHG Emission Trends for Affected UnitsEvergy’s Shift to RenewablesSummarySummary?s