Utility MACT Rules Issued by EPA with Some Significant Changes to Proposal
The Utility MACT rule was promulgated yesterday with a compliance date of 2015.
However a fourth year provision was included. This will be available to counter
problems such as localized reliability. The limit for particulate was originally
based on the total which includes condensibles. The final standard includes a
limit for discrete particulate only. The rationale is that since this limit is a
surrogate for individual toxic metal limits and since most toxic metals are
discrete particles, it is not necessary to also limit condensibles.
Selenium is the one condensible particulate (other than mercury) which is
covered. EPA believes that this will be adequately controlled due to the acid
gas limits. The scrubbers will not only remove the acid gases but also the
selenium.
The other major change was in making limits for new plants less severe.
This may seem to be important but the reality is that the actual permits issued
for new power plants in recent years have been much tougher than NSPS.
Developers have agreed to low limits in order to move the projects forward. Each
time a project has been permitted at a lower emission limit, it becomes the
template for the next project even if it is in a different state.
There will be some problems with delivery of certain components just as there
were back in the 2004-5 timeframe. The Cement MACT and a general upturn in the
economy are resulting in order backlogs for suppliers. If China can build
100,000 MW of FGD systems in one year, it would seem that the U.S. could do so
in three or four years.
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Here are the Headlines for the December 15, 2011 – Utility E-Alert
UTILITY E-ALERT
#1054 – December 15, 2011
Table
of Contents
COAL – US
COAL – WORLD
GAS / OIL – US
GAS / OIL – WORLD
CO2
§
International Climate Negotiators agree on “Roadmap” to replace Kyoto Protocol
NUCLEAR
BUSINESS
HOT TOPIC HOUR
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Upgrade Tracking System, click on:
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RFPs a Driver for Renewable Energy Projects
Utility Requests for Proposals (RFPs) are a driver for renewable energy projects
in the United States. A sampling of the RFPs covered in recent issues of
McIlvaine’s Renewable Energy Update and Projects is shown below.
*****
Mississippi Power announced a request for proposals (“RFP”) for renewable energy
resources. The company will actively seek renewable power resources that will
offer low-cost energy and exceptional value to the company and its customers.
The company is seeking power generated through the use of renewable fuel
resources such as solar, wind, low impact-hydro, biomass, landfill gas and other
renewable sources.
Resources located within the service territory of Mississippi Power are
preferred, although proposals offered outside this area will also be considered.
Consideration will be given to any renewable energy project of a size greater
than 500 kW and capable of providing a minimum annual energy delivery of 100 MWh
per year to the company.
*****
Arizona Public Service Co. announced a Request for Proposal (RFP) from solar
developers and installers to construct a 17-MW solar photovoltaic facility —
financed by APS through the company’s AZ Sun Program.
Projects must employ commercially-proven technology. When completed in 2013, the
new solar facility, part of the AZ Sun Program, will be owned and operated by
APS and is expected to provide electricity to more than 4,000 Arizona homes.
With AZ Sun, APS is investing in the development of 100 MW of solar photovoltaic
power plants across Arizona. APS is partnering with third-party developers and
equipment providers to design and construct the facilities, increasing the
opportunity for more developers to participate since project financing is
provided by APS.
*****
FirstEnergy Corp. announced that a Request for Proposal (RFP) will be conducted
to secure 10-year Renewable Energy Credits (RECs) and Solar Renewable Energy
Credits (SRECs) for customers of its Ohio utilities — Ohio Edison, Cleveland
Electric Illuminating and Toledo Edison — to help meet the renewable energy
benchmarks established under Ohio’s energy law.
The RFP seeks delivery of 5,000 SRECs and 20,000 RECs produced by generating
facilities in Ohio for each calendar year beginning in 2011 and continuing
through 2020. RECs and SRECs represent the environmental attributes of renewable
and solar renewable electricity generation, respectively. For every megawatt
hour of renewable or solar renewable electricity generated, an equivalent amount
of RECs or SRECs are produced.
No energy or capacity will be purchased under the RFP. The number of individual
bidders is not limited. Participants must meet and maintain specific credit and
security qualifications, and must be able to prove their RECs and/or SRECs
generating facilities are certified or in the process of becoming certified by
the State of Ohio.
*****
The Tennessee Valley Authority and local power distributors are making sure one
of the Southeast’s most successful renewable energy initiatives will continue to
be available for smaller renewable producers in the future. The Generation
Partners’ pilot program, which fueled an unprecedented but unsustainable solar
industry boom in the region in 2010, shifted its maximum project size from 200
kW to 50 kW after September 16, 2011.
The action focuses Generation Partners’ resources primarily toward small-scale,
renewable projects and is a key initial step in the long-term plan to provide
locally-produced renewable generation at the lowest cost possible.
Generation Partners was launched by TVA and local power distributors as a pilot
plan in 2003 with TVA paying premium incentives to spur small-scale renewable
generation. It is supported by revenues from renewable power “blocks” sold
through TVA’s Green Power Switch program.
The region’s tremendous solar growth in 2010 caused the pilot to quickly outgrow
Green Power Switch. The shift back to the original focus on small-scale
installations will restore the balance of supply and demand necessary to allow
Generation Partners and Green Power Switch to continue as long-lasting,
successful endeavors.
TVA had 619 Generation Partners working projects through July, totaling more
than 23 MW of solar, wind and biomass generation. Another 213 projects,
representing another 45 MW of power, are approved by TVA and in various stages
of construction.
*****
Duke Energy Carolinas is issuing a request for proposals for energy and
renewable energy certificates produced from wind generation that can be
delivered to the Duke Energy Carolinas transmission system. The company will
also accept bids for the renewable energy certificates, without the associated
energy, from qualifying wind generation facilities located within North
Carolina.
The company is purchasing the energy and renewable energy certificates as part
of its compliance with the North Carolina Renewable Energy and Energy Efficiency
Portfolio Standard.
*****
The Sacramento Municipal Utility District (SMUD) released a Request for Offers
(RFO) for the development of its Sacramento Solar Highways project. Proposals
were due October 3, 2011.
SMUD is soliciting qualified offers to develop the first phase of its Sacramento
Solar Highways project. The demonstration project will serve as a model to guide
the development of future highway solar installations.
The intent of this RFO is to select a developer to design, construct, finance,
own and operate new photovoltaic (PV) and concentrating (CPV) systems located in
two specified sites within the CalTrans right-of-way along U.S. Highway 50
within the SMUD service territory. SMUD plans to purchase the electrical output.
Therefore, proposals were to include power purchase offers of 25 years.
The project has received $1,670,800 in grant funding from the U.S. Department of
Energy (DOE) as part of SMUD’s Community Renewable Energy Deployment program. An
additional $125,000 is available from the California Energy Commission in
matching funds. SMUD intends to distribute the DOE grant funding to the
successful project developer as key milestones are achieved to subsidize the
development of the project.
For more information on Renewable Energy Projects and Update
please visit
http://www.mcilvainecompany.com/brochures/Renewable_Energy_Projects_Brochure/renewable_energy_projects_brochure.htm
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Bob McIlvaine
President
847-784-0012 ext 112
rmcilvaine@mcilvainecompany.com
www.mcilvaine@mcilvainecompany.com
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