Clean Water Act §316(b): Forecasting Power Generation Industry Impacts Dave Bailey RFF Modeling Workshop July 19, 2011 Final Rule Delayed EPA announced yesterday that an agreement has been reached with the Riverkeeper for a one year delay in the §316(b) Final Rule – New Date is July 27, 2013. © 2007 Electric Power Research Institute, Inc. All rights reserved. 2 Overview • EPA Considered four Regulatory Options – any could be selected for the §316(b) Final Rule • For Proposed Rule and NODA: – Entrainment to be decided on a sitespecific basis – Impingement, based on NODA has six possible compliance alternatives • Outcomes in terms of potential premature unit retirements highly dependent on: 1. EPA option selected 2. Impingement mortality reduction requirements 3. Region of the U.S. 4. Waterbody type © 2007 Electric Power Research Institute, Inc. All rights reserved. EPA Staff touring Chalk Point Cooling Towers 3 Inventory of Potentially Affected Units • Any facility having at least one once-through cooling unit and using >50 million gal/day • Surveyed potentially impacted facilities for unit specific MW, flow and capacity info • Responses returned by – 75% of fossil units – 95% of nuclear units # Facilities # Units MW Fossil 389 1093 252,392 Nuclear 39 63 59,931 Total 428 1156 312,323 © 2007 Electric Power Research Institute, Inc. All rights reserved. 4 EPA Considered Four Options • All options required IM reductions: – 3 options required for design flows >2 MGD – 1 option required for design flows >50 MGD • For entrainment two options required closed-cycle cooling: – One option required for all facilities >2 MGD – One option required for facilities >125 MGD – Entrainment for other two options sitespecific • All options required closed-cycle cooling for new units at existing facilities © 2007 Electric Power Research Institute, Inc. All rights reserved. 5 Estimated Retrofit Cost (includes capital cost, O&M, extended outages, heat rate and energy penalties) Cost (Billions) Nuclear Fossil Total Net Present Value1 $31.9 $63.3 $95.2 Annualized Cost $2.3 $4.7 $7.0 1 Assumes © 2007 Electric Power Research Institute, Inc. All rights reserved. a 30 year system life. 6 Summary of Units and Capacity at Risk of Premature Retirement if Closed-cycle Cooling Retrofits Designated as BTA (EPRI Technical Report 1022751) Region All Waterbody Types Units at Risk MWs at Risk PJM 21 3,250 ERCOT 25 5,458 ISO-NE 12 2,561 7 906 NYISO 11 3,325 SERC 38 3,044 FRCC 21 2,196 SPP 20 1,475 WECC 18 2,699 MRO 8 328 RFC 33 816 214 26,058 Midwest ISO Totals © 2007 Electric Power Research Institute, Inc. All rights reserved. 7 Note EPRI estimates an additional 15,600 MW may be lost due to inadequate space to retrofit or permitting issues for a total of ~42,000MWs at risk Basic Requirements for Entrainment Control • Required for all facilities using >2 MGD; however, information requirements apply only to facilities that use >125 MGD actual intake flow • Compliance determined by permitting authority on a caseby-case basis and may range from: – existing intake is BTA, to – closed-cycle cooling © 2007 Electric Power Research Institute, Inc. All rights reserved. 8 Facilities Most Likely to Be at Risk of ClosedCycle Cooling Retrofit for Entrainment • Facilities in the Northeast (ex. Massachusetts, New York, New Jersey, New Hampshire, Connecticut, Delaware,) • Facilities withdrawing from oceans, estuaries, tidal rivers and some Great Lakes (due to commercial fisheries and depressed populations for some species) • Only those facilities using >125 MGD AIF required to submit entrainment studies • BTA Considerations include: Cost-benefit Energy system impacts Environmental impacts of retrofits Adequate land availability © 2007 Electric Power Research Institute, Inc. All rights reserved. 9 Based on NODA Six Compliance Alternatives Now Under Consideration for Impingement • Direct biological monitoring with traveling water screens (88% annual and 69% monthly reduction in impingement mortality required) • Reducing through screen velocity to not exceed 0.5 fps • “Streamlined” (pre-approved) approach based on modified traveling water screens (NEW) • Use of a “defined” technology – closedcycle cooling or velocity cap (NEW) • Site-specific approach – same approach used for entrainment either generally or based on a demonstration (NEW) • Exemption for low levels of impingement (NEW) © 2007 Electric Power Research Institute, Inc. All rights reserved. 10 Cost of Meeting Impingement Mortality Reduction Requirements • EPRI has evaluated 18 intakes in terms of compliance cost based on the proposed rule and NODA: $8.7 million avg. cost of modified traveling water screens $47.5 million avg. cost to expand intake to not exceed 0.5 fps $19.5 million avg. cost of wedgewire screens to not exceed 0.5 fps $1.9 million avg. cost for barrier nets to achieve 0.5 fps (only practical for 50% of facilities evaluated and many require a pilot study) • Majority of evaluated facilities on freshwater © 2007 Electric Power Research Institute, Inc. All rights reserved. 11 Questions? Dave Bailey dbailey@epri.com 571-226-0614 Doug Dixon ddixon@epri.com 804-642-1025 © 2007 Electric Power Research Institute, Inc. All rights reserved. 12