Change Environmental Regulatory Policy to Foster R&D and Cost Effectiveness
The recent Supreme Court ruling in the U.S. remanding the air toxic rules due to
lack of cost consideration is a wakeup call. The message is that the whole
system is flawed. It discourages rather than encourages R&D. Invariably
the cost estimates prior to regulation turn out to be wrong. So regulations are
rarely cost-effective.
EPA recognized that setting arbitrary limits is not cost-effective and so
created a “Cap and Trade” system. The trade aspect of this policy was sound, but
the cap aspect merely duplicated the problems with conventional regulations
where there is no incentive to do better than is required.
All that is needed is to move from “Cap and Trade” to “Create and Trade.”
Those power plants ranking in the lower 50 percent would pay fees to be divided
among those in the top 50 percent. The payments and receipts would be
based on ranking. These payments provide great incentive for the industry
to “create” cost-effective solutions.
Mercury reduction would be a very good demonstration of the power of “Create and
Trade.” There are new mercury removal technologies which are much more
cost-effective than the ones available at the time of the cost determination.
It was concluded that to move from 85 percent mercury reduction to 95 percent
reduction would cost $30,000/lb. Now the cost may be as low as $1,000/lb.
If the “Create and Trade” rule stated that any company removing more than 85
percent of the mercury would be paid $15,000/lb. for each additional pound
removed, there would be a great incentive for power plants to install the most
efficient equipment.
Ultimately the most cost-effective technologies would be installed.
Initially the bar would be set at 85 percent removal but, if it turns out that
some companies are making huge profits by obtaining 95 percent efficiency, then
it would be time to raise the bar to 90 percent.
There is almost no supplier generated air pollution control research in the U.S.
The creation of a back-end mercury module for high efficiency is a
fortuitous anomaly. The creation of a “Create and Trade” system would
generate many new cost-effective technologies. It would also make the U.S. again
the center of air pollution technology. This is a position it is ceding to
China presently.
The concept is equally valid for the upcoming EPA rules on CO2
emissions. Coal-fired power plants can make effective reductions in CO2
emissions by increasing efficiency. So there are ways to make
cost-effective reductions in CO2 emissions per unit of power
produced. Rather than set arbitrary limits a “Create and Trade” system
would encourage R&D and use of the most cost-effective technologies. The
national strategy is to continue to operate some 200,000 MW of coal-fired power
plants. An incentive program to increase efficiency would result in significant
reduction of CO2 emissions and be positive rather than negative for
the economy.
For more information on this subject click on
5AB Air
Pollution Management.
Headlines for Utility E-Alert – June 26, 2015
UTILITY E-ALERT
#1229– June 26, 2015
Table of Contents
COAL – US
·
LA Dept. of Water & Power ready to sell its Percentage in Arizona Coal-fired
Power Plant
·
Safe Basin closure Update by Duke Energy
·
Arizona Public Service settles Pollution Suit over Navajo Coal-fired Power Plant
·
Alabama Power reaches Coal-fired Power Plant Emissions Control Settlement
COAL – WORLD
·
BHEL commissions 250 MW
Unit
of NTPC's Bongaigaon
Power
Plant
in India
·
Sharyn Gol JSC (Mongolia) announces the Commissioning of its Coal Wash Plant and
Execution of an Agreement to Export Washed Coal to South Korea
·
Pakistan approves construction of 1,400 MW Coal-based Power Project in Thar
GAS/OIL – US
·
Wisconsin Public Service seeking Air Permit to upgrade Two Units at Fox Energy
Center
GAS/OIL – WORLD
·
AP Transco buys out GVK Power's Plant in Andhra Pradesh
·
Lotte E&C wins US$230 Million Order from Indonesia
·
Siemens supplying a Gas and Steam Turbine Package to Ciner Kazan Soda in Turkey
NUCLEAR
·
EDF granted Permission to operate Unit 3 of Tricastin Nuclear Power
·
DOE issues remaining $1.8 Billion Nuclear Loan Guarantee for Plant Vogtle
BUSINESS
·
Novinda names Michael Rosenberg New CEO
·
Entergy New Orleans in line to get Low-cost Power from Arkansas Power Plant
·
PetroVietnam acquires Chevron’s Assets in Vietnam
·
Hearing set on 1,050 MW Gas-fired Power Plant for Salem Township, PA
·
$20 Billion Market for Air Pollution Solutions
HOT TOPIC HOUR
·
Hot Gas Filter Discussion will be continued on July 2
·
“Total Solutions” is the Hot Topic Hour on August 6
·
Upcoming Hot Topic Hours
For more information on the Utility Tracking System, click on:
http://home.mcilvainecompany.com/index.php/databases/2-uncategorised/89-42ei
McIlvaine Hot Topic Hour Registration
On Thursdays at 10:00 a.m. Central time, McIlvaine hosts a 90 minute web meeting
on important energy and pollution control subjects. These Webinars are
free of charge to owner/operators of the plants. They are also free
to McIlvaine Subscribers of Power Plant Air Quality Decisions and Utility
Tracking System. The cost for others is
$300.00 per webinar.
See below for information on upcoming Hot Topic Hours. We welcome your
input relative to suggested additions.
DATE |
SUBJECT |
DESCRIPTION |
July 2, 2015 |
Hot Gas Filtration |
|
July 23, 2015 |
Mercury Removal Options |
|
August 6, 2015 |
Gas Turbine Emission Control |
|
August 20, 2015 |
Total Solution Options |
Click here
for the
Subscriber
and Power Plant or Cement Plant
Owner/Operator
Registration Form
Click here
for the
Non-Subscribers
Registration Form
----------
You can register for our free McIlvaine Newsletters at:
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Bob McIlvaine
President
847-784-0012 ext 112
rmcilvaine@mcilvainecompany.com
www.mcilvainecompany.com