California s Success in Controlling Large Industrial Sources
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1 California s Success in Controlling Large Industrial Sources Endicott House 2006 Symposium Mike Scheible Deputy Executive Officer California Air Resources Board California Environmental Protection Agency AIR RESOURCES BOARD
2 Today s Presentation Background New Source Review in California Industrial Source NOx Control Overview Power Plants Oil/Gas Production and Refining Other Sources: Glass Manufacturing, Cement Manufacturing, Stationary Diesel Engines Questions
3 Background: California Regulatory Structure ARB regulates mobile sources, consumer products, and air toxics Local air districts regulate stationary sources and other emission sources 35 local air districts Responsible for permitting/prohibitory rules ARB has oversight authority
4 Background: 2005 Annual Average Emissions Category Statewide NOx (tpd) ROG (tpd) SOx (tpd) Total Stationary Sources 420 (13%) 473 (19%) 112 (37%) Total Fuel Combustion Total Waste Disposal 3 14 <1 Total Cleaning and Surface Coatings <1 210 <1 Total Petroleum Production & Marketing Total Industrial Processes Total Area-Wide Sources 112 (4%) 750 (31%) 11 (4%) Total Mobile Sources 2687 (83%) 1207 (50%) 179 (59%) TOTAL STATEWIDE 3,219 2, Source: ARB Almanac Emission Projection Data
5 Background: Statewide NOx Emission Trends 6000 ( ) NOx Emissions (tpd) Mobile Sources Area-Wide Sources 1000 Stationary Sources Year
6 Background: 2005 State Top 10 NOx Sources 2005 Annual Average Emissions Heavy Duty Diesel Trucks Light Duty Cars Ships & Commercial Boats Off-road Equipment (construction and mining) Trains Off-road (other) Farm Equipment (tractors) Manufacturing & Industrial (boilers, engines) Heavy Duty Gas Trucks Service & Commercial (boilers, engines)
7 Background: Industrial Source Statewide NOx Emission Trends ( ) NOx Emissions (tpd) Oil & Gas Production Power Plants Mineral Processes Glass & Related Products Petroleum Refining Year
8 NSR s Success in California California s NSR in effect over 20 years BACT is cornerstone California BACT akin to federal LAER Applied on emissions unit basis In severe areas, BACT at 10 lb/day; some areas have BACT triggers of 2 2 lb/day NSR contributes to air quality improvements NSR not deterrent to economic expansions
9 NSR Challenges: Offsets Offsets available in some areas, constrained in others 1999 power plant expansion impacted supply/cost Surplus criteria difficult due to air quality problems Focus now on non-traditional sources South Coast pilot credit rules are U.S. EPA approved for RECLAIM truck stop electrification and marine vessel repowering South Coast only district in California to modify NSR rules to allow use of limited-life life offsets
10 Statewide Average Offset Costs $ per transaction per ton of offsets $100,000 $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $ NOx HC PM10 SOx CO Prices for several pollutants rose with California energy crisis; significant increase in PM10 cost since 2001 Offset availability a factor in driving emission reductions
11 POWER PLANTS
12 California Power Mix (Based on Installed Capacity) Geothermal 5% WTE 2% Wind 3% Solar 1% Hydroelectric 26% Gas/Oil 54% Nuclear 8% Coal 1%
13 California In-State Fuel-Fired Fired Generation Distillate Oil 1.29% Coal/Petroleum Coke 1.80% Other 5.33% Oil Field Process Gas 1.56% Municipal Solid Waste 0.66% Landfill Gas 0.57% Natural Gas 91.58% Digester Gas 0.13% Diesel 0.16% Ag/Woodwaste 2.26%
14 Power Plant Projects Approved By Year (1976 to 2005) Megawatts (MW) Source: California Energy Commission
15 Power Plant NOx BACT Trend: Combined-Cycle/Cogeneration Cycle/Cogeneration Turbine Configurations NOx 15% O2) Water injection (WI) 97% Reduction Since 1982 WI + SCR WI or Steam injection (SI) + SCR WI or SI or DLN + SCR DLN + SCR Year
16 Typical Turbine NOx Requirements BACT (new units) BARCT (existing units) Turbine Configuration Simple cycle, gas-fired Combined cycle, gas-fired Simple cycle Simple cycle 877 hr/yr Combined cycle NOx 15% O 2 ) * (gas)/ 25 (oil) 25** (gas)/ 42** (oil) 5* (gas)/ 25 (oil) * Sources opting for extended compliance date must meet 3 (gas) ** Sources opting for extended compliance date must meet 5 (gas)/25 (oil) Common combustion controls: water/steam injection, dry low-nox combustors Common add-on controls: SCR, SCONOx
17 Cost of Emission Controls Typical 500-MW combined-cycle cycle plant costs $250 to $300 million Cost of NOx/CO controls $6.5 to $7.5 million Percent of capital cost less than 3% Additional cost of 0.2 per kwh generated
18 National vs. California Emissions For Thermal Electric Generation California (2005) South Coast air basin Western U.S.* U.S. Average* NOx lb/mwh SOx NOx 26, ,000 4,400,000 Tons/yr SOx 1, ,000 11,400,000 * Based on Energy Information Administration (EIA) data for 2004
19 Push for California-Level Controls in Border Region ARB comments on cross-border projects, both transmission and power generation projects Concern over poorly controlled power plants that transport emissions into California Two turbine plants that will export electricity to CA agreed to emission levels close to CA BACT 2.5 ppm NOx (SCR), 4 ppm CO (oxidation catalyst) 3.5 ppm NOx (SCR), 30 ppm CO
20 OIL & GAS PRODUCTION AND PETROLEUM REFINING
21 NOx Control History: Boilers, Steam Generators & Process Heaters NOx (lb/mmbtu) Gas-Fired Steam Gen., Mid- Size Gas-Fired Steam Gen., Large Gas-Fired Boilers & Heaters, Mid-Size Gas-Fired Boilers & Heaters, Large Oil-Fired Units, Mid-Size Oil-Fired Units, Large For gas-fired units, approximately 63% to 94% reduction since 1987 For oil-fired units, approximately 85% reduction since 1987
22 Boiler NOx BACT Based on most stringent CA BACT guidelines Size Rating <20 MMBtu/hr, natural gas or propane 20 MMBtu/hr, natural gas or propane NOx Emission Level 3% O 2 ) 12 ppm (0.015 lb/mmbtu) 7-99 ppm ( lb/mmbtu) Typical Technology Low NOx burner Low NOx burner, SCR or equivalent Dual fuel or oil 30 ppm or weighted Low NOx burner fired average (0.036 for gas and lb/mmbtu for oil) * Most stringent limit found in EPA RACT/BACT/LAER Clearinghouse Rest of U.S.* 0.03 lb/mmbtu lb/mmbtu
23 Refinery Process Heater NOx BACT Based on most stringent CA BACT guidelines Size Rating NOx Emission Level 3% O 2 ) Typical Technology Rest of U.S.* 50 0 MMBtu/hr, natural gas and/or LPG 30.0 ppm, achieved (0.036 lb/mmbtu) ppm, feasible ( lb/mmbtu) Low NOx burner Low NOx burner, low NOx burner + SCR 0.03 lb/mmbtu >50 MMBtu/hr, natural gas or treated refinery gas 9.0 ppm, achieved (0.011 lb/mmbtu) ppm, feasible ( lb/mmbtu) SCR LTO system, low NOx burner + SCR 0.08 lb/mmbtu * Most stringent limit found in EPA RACT/BACT/LAER Clearinghouse
24 Oilfield Steam Generator NOx BACT Based on most stringent CA BACT guidelines Size Rating 5 MMBtu/hr, natural gas, treated waste gas, or recovered gas NOx Emission Level (@ 3% O 2 ) 20.0 ppm (achieved) ppm (feasible) Typical Technology Low NOx burner Low NOx burner, SCR
25 Oilfield Steam Generator NOx BACT Trend NOx (lb/mmbtu) % Reduction Since /14/1984 8/11/1987 5/7/1990 1/31/ /28/1995 7/24/1998 4/19/2001 Date
26 OTHER SOURCES: Glass, Cement, Diesel
27 Typical Glass Furnace NOx Requirements Furnace Type Combustion Type NOx Limit (lb/ton glass pulled) CA BARCT (existing units) Container glass or fiberglass 100% air fuel fired, Oxygen assisted combustion 4.0 (24-hr block average) Flat glass 100% air fuel fired, Oxygen assisted combustion 9.2 (24-hr block average), 7.0 (30-day rolling average) RACT, Rest of U.S.* Container glass 5.5 CA BACT Container glass Using oxy-fuel system 3.0 (achieved in CA) Flat/float glass Using SCR system 3.70 LAER, Rest of U.S.* Float glass 6.5 BACT, Rest of U.S.* Flat/float glass 7.0 * From EPA RACT/BACT/LAER Clearinghouse
28 Cement Kiln NOx RACT/BARCT Type of Kiln Preheater-precalciner Long dry Short dry NOx Limit* 6.4 lb/ton clinker produced (30-day average) 6.4 lb/ton clinker produced (30-day average) 7.2 lb/ton clinker produced (30-day average) * Adjustment to NOx limit for systems that recover waste heat and generate electricity Typical controls: combustion controls, low NOx burners, staged combustion, NOx reducing fuels (includes tire-derived fuels)
29 Stationary Diesel Engines 1998: ARB identified diesel PM as a toxic air contaminant Diesel PM contributes >70% of state estimated potential cancer risk levels and contributes to premature death 2000: ARB adopted a Diesel Risk Reduction Plan Goal: 85% reduction in diesel PM by 2020
30 Stationary Diesel Engines February 2004: ARB adopts ATCM for stationary diesel engines Use best available diesel PM controls and lowest-emitting emitting diesel engines After-treatment treatment technology shown effective Diesel Particulate Filter: $38/hp capital cost Diesel Oxidation Catalyst: $10/hp capital cost 80% reduction in diesel PM from all stationary engines by 2020 relative to 2002
31 Summary NSR effective at time of installation Offsets are a continuing challenge Significant emission reductions achieved through cost-effective technology Controls applicable nationwide Future challenges exist to further reduce emissions due to ongoing air quality problems
32 QUESTIONS?
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