United States
Environmental Protection
Agency
Office of Energy. Minerals, and
Industry
Washington DC 20460
EPA-600/7-78-155E
August 1978
Research and Development
Review of New Source
Performance Standards
for Coal-Fired
Utility Boilers
Volume I
Emissions and Non-
Air Quality
Environmental Impacts

Interagency
Energy/Environment
R&D Program
Report

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                RESEARCH REPORTING SERIES

Research reports of the Office of Research and Development, U.S. Environmental
Protection Agency, have been grouped into nine series. These nine broad cate-
gories were established to facilitate further development and application of en-
vironmental technology.  Elimination of traditional grouping was consciously
planned to foster technology transfer and a maximum interface in related fields.
The nine series are:

      1.  Environmental Health Effects Research
      2.  Environmental Protection Technology
      3.  Ecological Research
      4.  Environmental Monitoring
      5.  Socioeconomic Environmental Studies
      6.  Scientific and Technical Assessment Reports (STAR)
      7.  Interagency Energy-Environment Research and Development
      8.  "Special" Reports
      9.  Miscellaneous Reports

This report has been assigned to the INTERAGENCY ENERGY-ENVIRONMENT
RESEARCH AND DEVELOPMENT series.  Reports in this series result from the
effort funded  under the 17-agency Federal Energy/Environment Research and
Development Program. These studies relate to EPA's mission to protect the public
health and welfare from adverse effects of pollutants associated with energy sys-
tems. The goal of the Program is to  assure the rapid development of domestic
energy supplies in an environmentally-compatible manner by providing the nec-
essary environmental data and control technology. Investigations include analy-
ses of the transport of energy-related pollutants and their health and ecological
effects;  assessments  of, and  development of, control technologies for energy
systems; and  integrated assessments of a wide range of energy-related environ-
mental issues.
This document is available to the public through the National Technical Informa-
tion Service, Springfield, Virginia 22161.

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   REVIEW OF NEW SOURCE PERFORMANCE
       STANDARDS FOR COAL-FIRED
            UTILITY BOILERS

          VOLUME I: EMISSIONS
         AND NON-AIR QUALITY
        ENVIRONMENTAL IMPACTS
March 1978

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                                 DISCLAIMER

     This report has been reviewed by the Office of Research and Development,
U.S. Environmental Protection Agency, and approved for publication.  Approval
does not signify that the contents necessarily reflect the views and policies
of the U.S. Environmental Protection Agency, nor does mention of trade names
or commercial products constitute endorsement or recommendation for use.

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                                 ABSTRACT

This two volume report summarizes a study of the projected effects of several
different revisions to the current New Source Performance Standard (NSPS) for
sulfur dioxide (SO2) emissions from coal-fired utility power boilers.  The revision
is assumed to apply to all coal-fired units of 25 megawatts or greater generating
capacity beginning  operation  after  1982.   The  revised standards which are
considered are:  (I) mandatory 90 percent  SO- removal with an upper  limit on
emissions of  1.2 Ib SO- per million Btu; (2) mandatory 80 percent SO2  removal
with  the same upper limit; (3) no mandatory percentage removal with an upper
limit  of 0.5 Ib SO2 per million Btu. In addition, effects of revising the NSPS for
particulate emissions  from the current  value of O.I Ib per million BtO  down to
0.03 Ib  are  quantified.   Projections  of the  structure of the  electric utility
industry both with and without the NSPS revisions are given out to the year 2000.
Volume  I discusses air emissions, solid  wastes, water  consumption, and energy
requirements.  Volume II discusses economic and financial effects,  including
projections of pollution control costs and changes in electricity prices.

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                                 PREFACE

This report is one of several volumes being submitted by Teknekron to the U.S.
Environmental  Protection Agency under contract 68-01-3970,  "Review of  New
Source  Performance Standards for  Sulfur  Dioxide  Emissions  from Coal-Fired
Steam Generators."  This volume presents the  emissions  and non air-quality
environmental implications of alternative New Source Performance Standards as
they will  apply to the U.S.  electric utility industry.  Volume II discusses the
economic and  financial  implications of the various  SC>2  control alternatives
described herein and is being submitted concurrently with this  volume. A third
volume discussing the air quality implications of the emissions control alternat-
ives is  anticipated,  as is a final volume containing a series of "issue papers"
summarizing results which bear  on specific  policy  issues relating  to  EPA's
proposal to revise the current standard.


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                          CONTENTS
                                                            PAGE
PREFACE
CONTENTS	      "
LIST OF FIGURES  	      '"

LIST OF TABLES 	      iv

SUMMARY OF RESULTS 	      vi


1.0  INTRODUCTION AND BACKGROUND	      l-l
     I.I  Base Year Data	      l-l
     1.2  Specification of Scenarios 	      1-4


2.0  INDUSTRY PROJECTIONS	.....      2-1
     2.1  Capacity Mix in the Base Year  	      2-2
     2.2  Projections to 2000  	      2-6


3.0  AIR EMISSIONS, SOLID WASTES, WATER AND ENERGY	      3-1
     3.1  Baseline Emissions of SOj* NO  , and Participates	      3-2
     3.2  Emission Changes Due to NSPS Revisions 	    3-10
         3.2.1   Some Comments on the Alternatives	    _3-IO
         3.2.2   Emission Data	    3-11
     3.3  Solid Wastes	    3-22
     3.4  Water Requirements	    3-24
     3.5  Energy Requirements	•.	    3-30
REFERENCES	      4. j
APPENDIX: Description of Teknekron's Utility Simulation Model
           and Associated Data Bases	      A-1
                              -ii-

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                     UST OF FIGURES



                                                             PAGE

 2-1   Projections of Electric Utility Coal Consumption	    2-22


 3-1   National Power-Plant SC^ Emissions
      under the Baseline Scenarios  	     3-4


 3-2  National Power-Plant Particulate Emissions
      under the Baseline Scenarios	     3-5


 3-3  National Power-Plant NO Emissions
      under the Baseline Scenarios	     3-6


,3-4  National Power-Plant SCX Emissions under
      Alternative Control Scenarios, Moderate Growth	    3-16


 3-5  National Power-Plant SOj Emissions under
      Alternative Control Scenarios, High Growth	    3-17


 3-6  National Power-Plant Particulate Emissions,
      HighGrowth	    3-20
                             in

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                          LIST OF TABLES

                                                                  PAGE

 1-1   Key Scenario Elements Held Constant Throughout the Analysis .      I -5

 1-2   SIP SO9 Emission Limits for Coal-Fired Units Used in the
      NSPS Scenarios ..........................................      ' ~6
 1-3   County Designations ................. t • • • ..... • ..... • .....      ' "°

 1-4   National Electricity Demand Growth Rates ..................     ' - ' 3

 1-5   Alternative NSPS Scenarios ...............................     I- '5

2-1   Definition of Geographic Regions ........................ • •       2-3

2-2   Utility Industry Generating Capacity as of December 31, 1975. .      2-4

2-3   Scaled Energy Demand Growth Rates by Region ... ...........      2-5

2-4   Projected Capacity Mix for Selected Scenarios ...............      2-7

2-5   Projected Capacity Mix by Region for the Baseline Scenario
      with Moderate Growth .................. . ........... ......     2-10

2-6   Projected Coal-Fired Capacity by Regulatory Category .......      2-14

2-7   Projected Coal Capacity Using Flue Gas Desulfurization .......     2-16

2-8   Regional Breakdown of Installed FGD Capacity in 1995, Scenario
      H 1 .2(90)0.03 .............................................     2-19

3-1   National Emissions of SO7, NO , and Particulates in 1976
      and 1980 .............. . ---- . ............................      3-3

3-2   Aggregate SO7 Emissions for Fossil-Fueled Generation by
      Category of Unit .........................................      3-9

3-3   Regional and National SO^ Emissions ..... ..................      3-12

3-4   Regions with Higher than Average Emission Reductions in 1990
      due to Mandatory Ninety Percent SO« Removal ..............      3-18

3-5   National Projections of Particulate and NO  Emissions, High
      Growth Scenarios ...................... . ...... ...........      3_ 1 9

3-6   Projections of Sludge Produced by FGD Systems ..............     3-23
                                 IV

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3-7  Cumulative Land Area Needed for Sludge Disposal, 1990-2000..    3-25

3-8  Total Coal Ash Production	    3-25

3-9  Water Consumed by FGD Systems	    3-26

3-10 Water Discharged by Coal-Cleaning Plants	    3-29

3-11 Energy Consumed by FGD Systems in 1995	    3-31

3-12 Teknekron Coal Supply Regions	    3-33

3-13 Coal Demand Nodes	    3-34

3-14 Energy Consumed in Transporting Coal to Electric Generating
     Plants	    3-34
                                 -v-

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                          SUMMARY OF RESULTS


Several alternative New Source Performance Standards have been evaluated In

terms of their implications for the U.S. electric utility Industry.  The projected

development  of the industry through the year 2000 under alternative NSPS for

two different national electricity demand growth rates Is discussed in Section 2

(moderate growth: 5.8% per year  before  1985, 3.4% per year after 1985; high
growth: 5.8% before 1985, 5.5% after  1985). The revised NSPS examined In this

study are assumed to  affect coal plants coming  on  line after  1982 with  the

current NSPS assumed to apply to plants coming on line between 1977 and 1982.

Baseline scenarios  with no revisions to  the  current NSPS have also been
examined.  The air emissions, solid wastes, water and  energy requirements for

each of these alternatives are  presented in Section 3.  Salient features of these

results are summarized as follows:
     •    The U.S. electric utility industry will grow from 507 GW
          net capability in 1976 to about 750 GW  in  1985 and to
          1085 or 1310 GW in 1995 under the specified moderate and
          high growth rates, respectively.

     •    Given  the  coals selected for consumption by utilities as
          used  in  this  analysis  and  the present SCU  emission
          limitations, the  installed  flue gas desulfurizaTion (FGD)
          capacity will amount to approximately  17 percent of net
          coal-fired generating capacity by 1985 and will remain at
          approximately that  relative  level for the following de-
          cade.


     •    In the high demand growth  case under a revised NSPS
          requiring 80 percent post-combustion SO^ removal and an
          emissions  upper bound of 5l6ng/J (I.Zlb/IO  Btu) the
          installed FGD  capacity will  be  191 GW by  1990  and
          351 GW by  1995.  This compares to  59 GW  in  1990 and
          77 GW in 1995 under a continuation of the current NSPS.


     •    Increasing  the  SO-  removal requirement   from 80 to
          90 percent  will increase the installed FGD capacity by 10
          to 15 percent by 1995, depending on the post-1983 growth
          rate.   For  the high growth case net coal-fired capability
          will be 580 GW  nationally In 1995, FGD capacity about
          403 GW.

                                    vi

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•    The regions  of the country  with the highest installed
     scrubber capacities by  1995, assuming a 90 percent SO^
     removal requirement,  are West  South Central (84 GW£
     East North Central (82 GW), and South Atlantic (76 GW).
     These   three  regions  contain 60 percent of  the total
     installed FGD capacity in 1995 in  the high growth case.


•    Utility  coal  consumption will  increase from  404 million
     metric  tons  (445 million  U.S. tons)  in  1976 to  about
     910 million metric tons in 2000 for the moderate growth
     case or to 1670 million metric tons in 2000 for the high
     growth  case.

•    National emissions of SCX from all electric power plants
     will increase from 1976 partial compliance levels (about
      13.6 million metric tons) at  about two percent per year
     until  1985, if electricity demand  grows at 5.8 percent per
     year.


•    Under  high demand growth  after  1985  (5.5 percent per
     year in total  demand and roughly six percent per year in
     coal-fired  generation)  natiortal   SO^  emissions  under
     current  standards   will   increase   at   approximately
     2.5 percent per year.   A revised NSPS with 90 percent
     required removal  will slow this  growth in national SC^
     emissions to  less  than  I  percent per year between 1985
     and 2000.

•    Under  moderate  demand growth  and present emission
     standards  national  SO^  emissions  will  increase  at
     approximately 0.4 percent per year from 1985 to 2000. A
     revised NSPS with 90 percent removal will bring about a
     net decrease  in national SCU emissions after 1985. By the
     year 2000 national SC^ emissions will be approximately
     equal to or below the  1976  partial compliance level for
     SO* emissions.


•    In  1995 SC>2  emissions in the high demand case  will be
     reduced from the baseline projections (current NSPS) by
      17 percent  for mandatory  80 percent  post-combustion
     removal and by 27 percent for mandatory 90 percent post-
     combustion removal.  In 2000 the reduction of  national
     SO^  emissions  is  projected to be 35 percent  with
     90 percent removal, 21 percent with 80 percent removal.
                            -VII-

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A reduction in the electricity demand growth  rate after
1985 to 3.4 percent per year along with a continuation of
the current NSPS SO,  standard will result in  a  national
SO, emissions level m  2000 comparable  to  the  level of
emfssions achievable under a 5.5 percent per year demand
growth rate after 1985  with the 90 percent SO,  removal
standard. There are, however, regional differences in the
distribution of emissions in these cases.

In all years the predominant source of S02 emissions will
be those units subject to SIP (State Implementation Plan)
emission limits.  Seventy-three percent of S02 emissions
in 1995 in the moderate growth  case will be due to SIP
plants (those plants on line prior to 1977), six percent due
to plants on-line between  1977 and 1982 (subject to the
current NSPS) and 21 percent due to plants on-line after
1982 (those plants assumed to  be  subject to a revised
NSPS).

The revised SO, standards will have the greatest relative
impact in those regions which do  not presently  have a
large base of coal-fired generation.  In  1990 a  90 percent
removal standard under high growth reduces national  SO,
emissions by 3.3 million metric  tons (19 percent).   The
West South Central region  (56 percent), North Mountain
region  (53 percent), South Mountain  region (47 percent),
Pacific region  (42 percent) and  the New England region
(23 percent)  have  the  greatest  percentage  emissions
reductions over current NSPS. In terms of tonnages, the
West  South  Central,  East  North  Central,  and  South
Atlantic   regions   have   the  largest  SO,  emissions
reductions.

Given  the coal sulfur  levels used  in  this  analysis the
amount of SO, emitted  under the  80 percent  removal
standard  and tne 215  ng/J (0.5 Ib/IO Btu) standard are
nearly  the same  in most regions.   Nationally emissions
differ at  most by four  percent.  In the Mountain states
where relatively low sulfur coals are used, the  80 percent
removal  requirement  further reduces SO, emissions by
about 30  percent in 2000.

Assuming the  moderate growth  rate,  total  particulate
emissions will increase  only slightly above the I960 full
compliance level (0.8 million metric tons per year) and
will  remain  nearly constant thereafter.  High  demand
                        -VIII-

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     growth  would  lead  to  further growth in  particulate
     emissions in  the  1990s, to about I.I  million metric tons
     per year.

•    Revising the NSPS for particulates downward to 13 ng/J
     (0.03lb/l06Btu)  from 43 ng/J  (0.10 Ib/106 Btu)  reduces
     national  aggregate emissions by 11  percent in 1990 and
     22 percent in 2000.  Particulate emissions from post-1982
     units will be reduced by a greater percentage, which may
     have important local impacts.

•    Emissions of NO   from electric power generation will
     increase  substantially  under  current  standards,   even
     assuming  an effective  electricity  demand conservation
     program.  Under high demand growth NO  will increase
     from 5.7 million metric tons in I960 to 15.6 million metric
     tons  in  2000;  under moderate  demand growth to 8.6
     million metric tons in 2000.

•    Under the high growth case the tons of sludge on  a dry
     basis generated by FGD systems will be  12 million metric
     tons nationally in  1995 for the current  NSPS, 46 million
     metric  tons for  an 80 percent removal   standard  and
     55 million metric tons for a 90 percent removal standard.

•    The cumulative land area  required  to  a  depth  of nine
     meters  for disposal of this FGD sludge between  1990 and
     2000 will be 15.1 krri (5.8 mi ) and 91.5 krn  (35 mr) for
     the  current  NSPS and the 90 percent removal standard,
     assuming high growth.

•    Total coal  ash  production  in  1995  will be  101 million
     metric  tons  about  eight percent by  weight of total coal
     burned.  Between  1990  and 2000 cumulative storage of
     this ash Jo a depth of nine meters would require 176 km
     (67.8 mi  ).

•    Assuming full scrubbing  of  all post-1982 coal-fired  units
     national water consumption by FGD systems is estimated
     to be 387 million cubic  meters  in  the year 2000 in the
     moderate demand  growth  case, and 927  million  cubic
     meters  with higher growth.  In comparison the rate of
     water consumption by generating plant cooling systems is
     twenty-two   times  the  consumptive  rate projected for
     scrubbers.    Whether  or  not  these  water  demands
     constitute a significant impact will depend on regional and
     local conditions.
                             -IX-

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     •    Direct energy consumption by FGD systems in  1995  will
          increase from less than one percent of the total  Btu input
          for coal-fired generation under the current NSPS to as
          much as 3.8 percent under a 90 percent removal standard.


     •    Fuel consumed in  transporting coal will  be  reduced with
          the imposition of more stringent controls, primarily due to
          a shifting of demand away from western coals delivered to
          states bordering and  east of the Mississippi River.   The
          energy  savings in  1995.  50 x 10* MJ (4.7 x \Ql* Btu)  and
          120 x 10* MJ (I.I x 10'^Btu), are about 10 percent of the
          direct FGD energy requirements projected for that year,
          (588xlO*MJ and  M50xlO*MJ)  in  the moderate  and
          high growth cases, respectively.

Details of Teknekron's analysis of alternative New Source Performance Standards
are presented in the following sections.
                                  -x-

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                  1.0  INTRODUCTION AND BACKGROUND

This study reviews for the Environmental Protection Agency several alternative
standards of performance for sulfur dioxide (SO-) emissions from  coal-fired
electric  generating units.   Teknekron's analysis has  included  the  following
elements:
     •    Projections  of  the physical configuration and economic
           state of the  electric utility industry to the year 2000
     •    Estimates of the  costs  of  meeting  different revised
           standards
     •    Calculations of  the changes in sulfur dioxide and other
           emissions resulting from  compliance with revised stan-
           dards
     •    Corresponding air quality changes
     •    Identification and  illumination  of the major  issues
           involved in  weighing the  relative benefits  of  different
           revisions
The basic tools used to  provide  quantitative data  were Teknekron's  Utility
Simulation Model, a large-scale computer model which simulates the response of
the electric  utility industry to specified economic conditions, energy policies,
and regulatory  constraints, and Teknekron's  Air Quality Impact Assessment
Model,  which  links  the  emissions to  the  atmosphere,  as  projected by  the
Simulation Model, to  ambient air-quality changes.  Detailed descriptions of the
Simulation Model  are available elsewhere:    a brief description is given in the
appendix to this volume.  The air quality modeling process will be described in an
anticipated third volume of this report.

I.I  BASE YEAR DATA

The results  presented  here  were projected  from a  data base  containing a
description of every  electric  generating unit (nuclear, oil and gas-fired, hydro,
geothermal  and  combustion  turbine,  as  well as coal-fired)  operating  as of

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31 December  1975,   plus   announced   plans   for   new   units   through 1986.
Beyond 1986, the model creates new generating units and sites them by county as
needed to meet projected demand.  In order to simulate the industry's response to
a pollution control regulation,  including a particular  new source  performance
standard (NSPS) for SO2 emissions from  coal-fired units, a  minimum  set  of
"scenario parameters" must be specified.  Key among these are;

      •    The future growth rate in peak and average power demand
      •    "Future  mix   fractions"  for  each  state,  giving  the
           breakdowns of new generating  capacity beyond 1985  by
           type of generation
      •    The kinds of coal to be burned by each coal-fired unit,
           including sulfur and ash content

Other non air-pollution related variables  which must be specified  include  an
overall inflation rate,  new  plant construction costs,  costs of water pollution
controls, assumptions about the rate of phase-out of natural gas as a  utility
boiler fuel, the minimum generating reserve margin to be maintained, the size
and thermal efficiency of future generating units,  fuel prices  and price trends,
and the order  in which each utility system  will "dispatch" the available units in
order to meet the projected demand.*
Variables which relate directly to the costs and effectiveness of air pollution
controls  include specification  of  the sulfur  dioxide (SO-),  particulate, and
nitrogen  oxide (NO ) emission limits that must be met by both old and new units
                  J\
and the costs of the pollution-control devices used to insure compliance (flue gas
desulfurization  (FGD)  systems,  electrostatic precipitators  and fabric  filters,
modified boiler  configurations for NO  control), and constraints on siting future
                                    XV
      A "utility" in the model is formed by merging data from all investor owned
      and ail publicly owned utilities within each state, so that there are at most
      two "utilities" per state.  These are referred to as "state firms."

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units  due to air quality considerations.  Much of these data — e.g., the demand
projections, future mix fractions, and coal assignments — vary state by state.
Others, such as the parameters used in the pollution control cost models, are
uniform nationally - although the emission limits which the control devices must
be designed to meet may vary by state — in fact by county.

The basic categories of results which the simulation produces are:

      I.    Economic and financial impacts at the state level
           •    Capital requirements for new  generating units and
                for pollution controls
           •    Electricity prices and utility revenues
           •    Utility operating costs
           •    Return on utility equfty

      2.    Industry composition and fuel  consumption down to the
           county level
           •    Generating mix
           •    Fuel consumption
           •    Reserve margins and capacity factors

      3.    Environmental residuals at the county level
           •    Emissions  of  SC^,  NO , and particulates to the
                atmosphere*           x
           •    Solid  wastes (mainly FGD sludge)
           •    Water  consumption  for  condenser cooling,  coal
                cleaning, and FGD makeup
      Emissions of twelve trace elements are also calculated, but these have not
      been analyzed in this study.
                                    1-3

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 1.2  SPECIFICATION OF SCENARIOS

 The set of key input variables which must be specified before a simulation can be
 run  collectively define  one  "scenario"  for  which  estimates  of costs  and
 environmental benefits can be quantified. These variables can reflect both broad
 national policies such as those outlined in the President's National Energy Plan ,
 or very region-specific assumptions such as the fraction of post 1985 base-load
 generating  capacity in  a particular state that will be  nuclear.   The  key
 assumptions which are common to all scenarios analyzed to date are summarized
 in Table l-l.

 Assumptions about State Implementation Plan (SIP) standards, although invariant
 among scenarios, are critical in defining the "baseline" emission levels against
 which changes due to the NSPS revisions are to be measured.  The SIP limits for
 coal-fired  units that were used in this analysis were based on unit-by-unit data
 supplied by EPA's  Office  of Planning and  Evaluation in August 1977.   Some
 simplifications to the data were made. First, those  limits which varied within a
 state were simplified to only two values, a more stringent limit, referred to as a
 "Metropolitan SIP",  and  a  less stringent limit,  referred to  as  a "Non-Metro-
 politan SIP".  All counties within each state were so designated. The numerical
 limits  were chosen  to  approximate the  means of  the  generally  bi-modal
 distribution of actual  SIP limits within states.   Second,  judgment  was used to
convert those limits which were expressed in terms of concentrations of SC^ in
 the  stack  gas,  or ambient air  concentrations, into equivalent emission rates
(nanograms per joule or pounds per million Btu). Third, limits for several western
states  were tightened below those  currently being  applied to  reflect  EPA's
judgments  about  probable   SIP revisions  due  to  "prevention  of  significant
 deterioration" and attempts to protect visibility in the relatively pristine western
 regions.  As a result, there are several western states  in which the SIP  limits for
 502 em'ss'ons are more stringent than the current new source standard. In these
 cases the SIP  takes precedent: i.e., it  is applied to all  affected units coming on-
 line before 1983.   Tables 1-2  and  1-3 give the  SIP SO2  limits and  county
                                   1-4

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                                                 Table i-l

                   Key Scenario Elements Held Constant Throughout the Analysis
Air Pollution Regulations;
State Implementation Plan emission standards (as of 8/77) for SO, and participates
applied to all units on-line before  1977. Full compliance assumed By 12/31/79.

Current (1977) NSPS far fossil-fueled units applied to ail units on-line between 1977
and  1982,   Values  for  coal are:   SI6ng/J  (1.2 Ib/I0*fltu) for SO-,,  43ng/J
(0.1 Ib/IITBtu)  for  particulates, and  301  ng/J  (0.7 Ib/I068tu) for NO .   Com-
pliance assumed at inception.
Siting Restrictions!
Conversions and Rerates:
Coal and  oil-fired units  beyond those already  announced are excluded from  any
county containing a portion of an Air Quality Control Region qualifying for Man-
datory Class I or Nan-Attainment status.


Conversions from oil and gas to coat, as per Prohibition Orders issued by the Fedg
eral Energy Administration as  of June 30, 1977, are assumed effected by 1985.
Additional gas  phase-outs based upon FEA  estimates published in  1975 are also
included.  All gas-fired units are retired by 1996.

No new oil or gas-fired generating capacity is built after  1984.

Announced uprates, derates, and retirements as per FPC Order 383-4, I April 1977.
Water Pollution Regulations!
Full compliance with chemical and  thermal  emission  limits promulgated for the
steam electric power industry in 1974 is assumed by 1977 and 1981, respectively.
Populations
Census Bureau Series II Projections.
        Mandatory Class I areas are defined in accordance with the Clean Air Act Amendments of 1977: wilderness
        areas and memorial parks exceeding 5,000 acres, national parks exceeding 6,000 acres.  Non-attainment areas
        are those counties with a recorded violation of any National Ambient Air Quality Standard in 1975.

        Oil and gas-fired units which began operation before 1977 but convert to coal in 1977 or later are assumed to
        be subject to the applicable SIP coal limit, not the NSPS.
                                                   1-5

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Table 1-2
(Pounds SC
STATE
Alabama
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Idaho
. Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland & D.C.
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
)2 per million Btu heat input)
Met SIP
1.8
0.34
1.2
0.8
0.2
0.8
1.6
1.5
0.56
1.6
1.8
1.2
5.5
3.0
1.2
4.2
2.4
1.6
I.I
2.0
3.2
2.4
2.9
2.0

Non-Met SIP
4.0
0.34
1.2
4.7
0.2
0.8
No Limit
6.2
5.3
1.6
6.0
No Limit
5.5
No Limit
5.7
4.2
4.0
1.6
2.7
2.0
4.2
4.8
6.4
2.0
  1-6

-------
Td>le 1-2
(Continued)
STATE
Met SIP
Non-Met SIP

Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
t
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia N
Washington
West Virginia
Wisconsin
Wyoming
2.5
0.2
4.7
0.32
0.34
0.4
1.6

3.0
1.4
2.0
2.1
0.7
I.I
2.3
3.0
1.2
2.0
0.2
1.6
1.4
3.3
2.8
2.0
0.2
2.5
0.2
4.7
1.6
1.4
4.3
1.6

3.0
4.5
2.0
2.1
3.0
I.I
3.5
3.0
4.4
2.0
0.2
1.6
3.5
3.3
2.8
2.0
0.2
1-7

-------
                              Table 1-3

                         County Designations
STATE
Met
Counties
Non-Met
Counties
No
Different-
iation
— -- • 	 	 	 • 	 	 . 	
Alabama
Arizona
Arkansas
California


Colorado
Connecticut
Delaware

Florida


Georgia
Idaho
Illinois

Indiana


Kansas
AQCR #5
Jefferson County
Jackson County
AQCRs #27,28,30
25, 32, 24, 29, 33
and 23
New Castle
County

Escambia, Duval
and Hillsborough
Counties

Dougherty,
Chatham, Cobb,
Camden, Bibb,
Cherokee and
Fulton Counties
AQCR #65, 67,
and 70
All others
AQCR #94, 95,
and 96
AQCR 1,2,3,4,6
+ Colbert, Cullman,
Dekalb, Franklin,
Lauderdale, Lawrence
Limestone, Madison,
Marion, Marshall,
Morgan and Winston
Counties
AQCRs #31 and 26
All others


All others



All others
All others


Greene, Clinton,
Cass and Sullivan
Counties

AQCR #97, 98, 99,
and 100
                                              X
                                              X
                                              X
                                              X
                               1-8

-------
                             Table 1-3
                             (Continued)
STATE
Met
Counties
Non-Met
Counties
No
Different-
iation

Kentucky

Louisiana
Maine
Maryland
 &D.C.
Massachusetts

Michigan
Minnesota
Mississippi

Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
AQCR #78 and
McCracken County

AQCR #110
AQCRs#ll8, 120,
and Suffolk County
AQCR #131
Washington and
Harrison Counties
AQCR #70
All others
AQCR #14
Bronx, Kings,
Queens, New York,
Nassau,  Rock land,
Westchester, Rich-
mond and Suffolk
Counties
All others


AQCR #107, 109


All others


All others
All others

All others
X

X


X
                                             X
                                             X
                                             X
                                             X
Atlantic, Cape May
Cumberland, Hunter-
don, Ocean, Sussex,
and Warren Counties
All others
All others   .
                               1-9

-------
                              Table 1-3
                             (Continued)
  STATE
     Met
   Counties
    Non-Met
    Counties
   No
Different-
  iation
North Carolina
North Dakota

Ohio
Oklahoma

Oregon

Pennsylvania
                                               X
                                               X
Muskingum, Cler-
mont, Ashtabula,
Greene, Rich land,
Allen, Ottawa,
Stark, Wood, Adams,
Hamilton, Butler,
Montgomery, Lake,
Cuyahoga, Morgan,
Franklin, and
Lorain Counties
Beaver, Hancock,
Brook, Washington,
Allegheny,
Westmoreland,
Somerset,
Cambria, Blair,
Perry,
Cumberland,
Adams, York,
Dauphin, Lancaster,
Chester, Delaware,
Montgomery, Bucks,
Lehigh,
Northhampton,
Luzerne,
Lackawanna,
Susquehanna,
Philadelphia, and
Armstrong
Counties
All others
                                               X

                                               X
All others
                               1-10

-------
                               Table 1-3
                              (Continued)
STATE
Met
Counties
Non-Met
Counties
No
Different-
iation

Rhode Island
S. Carolina


S. Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington


West Virginia
Wisconsin
Wyoming
                                               X
Charleston, Aiken,
and Anderson
Counties
Humphreys, Polk,
Maury, Sullivan,
and Roane
Counties
All others
All others
                                               X

                                               X

                                               X
AQCR #47

Wahtcom, Skagit,
San Juan, and
Island Counties
All others

All others
                                               X
                                               X

                                               X

-------
designations  which were  used  for  coal-fired units in this  study.  Limits  for
particulate  and for  oil-fired  units  were  not  changed  from  those used  in
                                        2
Teknekron's earlier modeling work for EPA.

The key elements which vary among the scenarios are the assumed growth rate in
demand for electricity  and  the revised NSPS being analyzed, the latter being
applied only to coal-fired units of at least 25 Mw on-line in 1983  or later.  Table
 1-4 summarizes the two sets of demand growth scenarios which were considered.
The revised NSPS which were considered involve one change in the particulate
and NO  standards, combined with three different S02 standards:

     SOj      .1.   Ninety percent mandatory  post-combustion SO2 removal
                     with an  upper limit  ("cap")  on  emissions of 5l6ng/J
                     (l.2lb/!06Btu).
               2.   Eighty percent mandatory post-combustion SO^ removal
                     with  an   upper  limit  on   emissions   of  516ng/J
                     (l.2lb/!06Btu).
               3.   No  mandatory percentage post-combustion  SO~ removal,
                     with  an  upper   limit  on   emissions  of   2l5ng/J
                     (0.5lb/l06Btu).

 Particulates   No mandatory percentage  removal, with an  upper limit  on
               emissions of 12.9 mg/J (0.03 Ib/IO6 Btu).

     NOx      No mandatory percentage  removal, with an  upper limit  on
               emissions of 258 ng/J (0.6 Ib/IO6 Btu).

Both the demand  growth  assumptions  and  the candidate NSPS revisions  were
specified by the Environmental Protection Agency. The "moderate" growth cases
are meant to reflect a successful energy conservation effort as envisioned by the
                                  1-12

-------
                              Table 1-4
               Notional Electricity Demand Growth Rates
                          (percent per year)
                               1975-1985                (986-2000
                           Peak     Average        Peak     Average
"Moderate11 Growth           5.8        5.8           3.4       3.4
"High" Growth               5.8        5.8           5.5       5.5
                               i-13

-------
National Energy Plan.  (Our assumptions about natural gas phase-outs and oil and
gas conversions to coal are also designed to reflect the goals of the N.E.P.)
Additional scenarios in which we impose no Clean Air Act related air pollution
regulations are also contemplated: these will be used to calculate the total cost
of air pollution control as opposed to the incremental costs incurred in complying
with a revised new source performance standard.

The  nomenclature  used to  label results  from  the  nine different scenarios
presented is as follows:  the letter "MM or "H" first indicates "moderate" or "high"
electric demand growth.  This is followed by three numbers which specify the
S07  emission  "cap" (in  Ib/IO  Btu)j the required percent SO9 removal, and the
                           (\
particulate  limit  (in Ib/IO  Btu).    Since  the  NOx  limit  was  set  at
258ng/J(0.6 Ib/IO6 Btu) in all cases  except the "baseline" scenarios (no NSPS
revisions), its value is not indicated explicitly. The scenarios are summarized in
Table 1-5.
                                  1-14

-------
                              Table 1-5

                      Alternative NSPS Scenarios
        Scenario Label
      Revised NSPS
       In Ib/1C6 Btu
       (% Removal)
Ml.2(0)0.1
(Baseline with moderate growth)
HI.2(0)0.1
(Baseline with high«growth)


Ml.2(90)0.1
HI.2(90)0.1

Ml.2(90)0.03



HI.2(90)0.03



Ml.2(80)0.03




HI.2(80)0.03

M0.5(0)0.03
       S09 =  1.2  (0)
       NO; =  0.7
Participates? =  O.I
Same as above
       SO, =  1.2  (90)
       NCT =  0.6
Particulates =0.1


Same as above


Same as Ml.2(90)0.1 but with
Particulates =0.03


Same as HI.2(90)0.1  but with
Particulates =  0.03
       SO, =  1.2  (80)
       NO; =  0.6
Particulates =0.03
Same as above
       SO,  =  0.5 (0)
       Ntf  =  0.6
Particulates  =  0.03
                                1-15

-------
                       2.  INDUSTRY PROJECTIONS
This chapter sets the stage for the simulations by first characterizing the utility
industry* in the base year (1975), and then projecting that configuration forward
in time.  The characteristics which we focus on are the capacity mix, i.e. aggre-
gate generating capacity broken down by type of generation (coal, oil, nuclear,
etc.), the distribution of generating units by regulatory category (SIP, NSPS, or
revised NSPS), and the amount of capacity using FGD.

Because the Utility Simulation  Model takes into account many of the complex
interactions which occur among utilities' pollution control compliance strategies
and their other planning and dispatching decisions, projections of characteristics
like capacity mix are not independent of the particular pollution control scenario
being considered.  To illustrate, a  decision to comply with an SC^ emission limit
through use of  FGD will result  in  a generating capability reduction which must
eventually be compensated for somewhere in the system.  If that utility system's
reserve margin is ample, then the lost  capacity can  be compensated for in  the
short term by running the existing units at higher levels. If the reserve is already
near the safe minimum, however, the  utility must plan for increased capacity
additions,  either by  building more  combustion turbines  in the short term, or
accelerating planned building schedules in the  longer term. Regardless  of  the
particular  system,  more capacity  will have to be  added in the  long run if a
substantial number  of units are forced to use FGD because of a new  air emissions
regulation.  Fuel  consumption as well varies with emissions control strategy.  For
example, increased use of FGD in the Midwest and East will tend  to encourage
the use of  locally available medium  and high sulfur coals at the expense of more
distant supplies of  low sulfur western  coal.  This in turn changes the average
heating value of  the fuel, resulting in a change in the tonnage of coal burned by
      The investor  owned sector and the publicly owned sector (municipal sys-
      tems plus the Tennessee Valley Authority and other federal projects) are
      treated together in this volume.  Differences between these sectors from a
      financial perspective are discussed in Volume II.

                                   2-1

-------
the industry.*  Such interactions are important characteristics  of the electric
utility industry which cannot be ignored in a realistic assessment  of "the costs of
pollution control."  Unfortunately, they also make comparisons among scenarios
more difficult, because several variables that influence costs may be changing
simultaneously.
2.1  CAPACITY MIX IN THE BASE YEAR

Table  2-1 defines the geographical regions used in  reporting capacity mix and
other  industry characteristics.   Table 2-2  shows  the electrical  generating
capacity as  of December 1975 included in Teknekron's data base.  Two key
scenario variables  involved  in projecting  this base-year capacity  mix to any
future year are the. electrical demand growth rates that apply to each region, and
the future fractions used in  adding new units once the files of announced units
for a given state  have been exhausted.  State-level growth rates are scaled from
the national average values shown  in Table 1-4 according to population growth.
States whose growth  is projected  to be higher or lower than the national level
will  have higher  or lower demand growth rates, respectively, with the scaling
being done so as  to maintain the originally specified national energy demand (or
average power) growth.** Average compound growth rates for the periods  1976-
1985 and 1986-1995 derived by this process are given  in Table 2-3.

There is no tractable  decision rule for predicting the proportions of  future units
built beyond  1985 which will be nuclear or coal.  Future-mix fractions for each
state firm are therefore specified exogenously to the model. These may be made
to vary with the emissions control scenario, or held constant. In accordance with
     The amount of coal  that must be burned to yield one kilowatt-hour  of
     electrical energy  is given by  the unit's heat rate (a way of expressing
     thermal conversion efficiency)  divided by the coal's heating value.  It takes
     about one pound of coal to produce one kilowatt-hour from a modern coal-
     fired boiler.  Variations  in  tonnage burned among the control scenarios
     described here were not significant.
 **  A national peak growth rate has less physical meaning since the time of
     peak power demand varies widely across the country.
                                    2-2

-------
                                 Table 2-1

                       Definition of Geographic Regions
New England (NE)  Mid-Atlantic (MA)     S. Atlantic (SA)   EJM Central (ENC)

    CT                NY                  DE                Wl
    Rl                PA                MD/DC              Ml
    MA                NJ                  VA                 IL
    NH                                    WV                 IN
    VT                                    NC                OH
    ME                                    SC
                                          GA
                                          FA
E.S. Central  (ESC)            W.N. Central (WNC)            W.S. Central (WSC)
   KY                         ND                           TX
   TN                         SD                           OK
   MS                         NB                           AR
   AL                         KS                           LA
                                IA
                               MO
                               MN
N. Mountain  (NM)             S. Mountain (SM)               Pacific (PA)
    ID                          NV                         WA
   MT                         UT                         OR
   WY                         CO                         CA
                               AZ
                               NM
NOTE;  The first seven and the last region are identical to the Bureau of the Census
        regions.
                                 2-3

-------
N;
                                                    Table 2-2

                           Utility Industry Generating Capacity as of December 31. 1975°
(Gigawatts)
Region5
Nuclear
Coal
Oil
Gas
Hydro
Combustion
Turbine
Other0
Total

NE
MA
SA
EMC
ESC
WNC
WSC
NM
SM
PA
Nation
5.0
10.5
8.5
8.8
2.1
3.4
0.8
0.
0.
2.3
41.4
0.6
18.5
46.3
62.2
27.9
13.2
2.6
3.9
13.3
1.4
189.9
11.5
22.3
17.8
4.8
1.3
0.2
3.2
0.07
1.4
19.1
81.7
0.03
0.04
1.6
1.7
2.9
6.3
50.1
0.02
2.7
3.0
68.4
2.5
6.7
6.0
3.1
5.9
3.1
2.3
2.9
3.1
30.0
65.6
I.I
10.4
8.0
4.4
0.5
3.0
1.8
0.
I.I
I.I
31.4
0.4
0.2
0.8
2.3
2.2
I.I
0.2
O.I
0.6
0.7
8.6
21.1
68.6
89.0
87.3
42.8
30.3
61.0
7.0
22.2
57.6
487.0
          b

          c
Average of summer and winter capabilities.   The total  is 96% of the name-plate capacity
reported by the Edison Electric Institute.
See Table 2-1 for definitions.

Geothermal + combined cycle + internal combustion (diesel) generators.

-------
                          Table 2-3
         Scaled Energy Demond Growth Rotes, by Region
        (Average compound growth rate in percent per year)
 "Moderate" Growth Scenarios
REGION0 1976-1985   1986-1995
"High" Growth Scenarios
 1976-19851986-1995
NE
MA
SA
ENC
ESC
WNC
WSC
NM
SM
PA
Nation
5.6
5.5
6.2
5.6
6.0
5.2
5.6
4.6
6'.3
5.7
5.8
3.4
3.3
3.7
3.3
3.4
3.0
3.3
2.8
3.8
3.4
3.4
5.6
5.5
6.2
5.6
6.0
5.2
5.6
4.6
6.3
5.7
5.8
5.5
5.4
5.9
5.4
5.5
5.1
5.4
4.8
5.9
5.5
5.5
     See Table 2-1
                           2-5

-------
EPA's directives, the fractions used in deriving the results presented here were
supplied to Teknekron by ICF, Inc., another contractor supporting EPA's study.
(Coal assignments and coal-unit dispatch orders, by regulatory category, were
also taken from data supplied by ICF.) The approach used by ICF was to hold the
amount (megawattage) of nuclear capacity in 1995 constant - i.e. independent of
both the post-1985 growth rate and the control scenario.  The rationale used to
justify  keeping  the nuclear capacity the same under the moderate  and  high
growth  cases  is that a variety of regulatory and other constraints are operating
which would hinder  the acceleration  of nuclear building schedules beyond those
currently envisioned by 1990, and that the amount of building we are assuming  is
already set  at an "optimistic" level.  The reason for not attempting to quantify
the shift to nuclear that might occur as a  result of the  imposition of more
stringent emission standards on coal units beyond 1990 is related:  we  feel that
this issue is too complex to model realistically, at least within the context of the
current study, because:   (I) many  of the important determinants of a utility's
decision whether to "go nuclear" are not quantifiable (e.g., the expected licensing
period);  (2) those measures which are in principle  quantifiable, such as relative
power generating costs,  are impossible to predict  accurately  in the 1990 time
frame due to  great uncertainties in the cost data.  (This issue  is discussed more
fully in  Volume II, "Economic and Financial Impacts".)
2.2  PROJECTIONS TO 2000

                                                           f-
Capacity mixes for the two baseline scenarios (Ml.2(0)0.1 and Hi.2(0)0.1) and the
two 90 percent control scenarios (Ml.2(90)0.1  and H1.2(90)0.1) are shown in Table
2-4.  Note that although the total capacity in 1995 does not vary when the more
stringent SO- controls are imposed, there is a slight  increase in nuclear capacity
with a corresponding  decrease in coal-fired capacity.  Note again that this shift
is not due  to conclusions about  the relative  economiqs of coal  vs.  nuclear
generation  in the  future.   One factor  which does  operate is  that  capacity
penalties incurred when FGD systems are applied to coal-fired units, are, over
                                   2-6

-------
                                                              Table 2-4

                                              Projected Capacity Mix for Selected Scenarios

                                              (Net capability, Gigawatts)


Coal
Oil & Gas
Comb. Cycle
Hydro
Turbine
Geothermol
Nuclear
TOTAL
1985
a
285.
159.
B.OO
86.1
68.8
1.70
138.
747.
A
283.
159.
8.00
86.1
69.0
1.70
138,
745.
b
285.
159.
8.00
86.1
68.9
1.70
137.
746.
B
28/1.
159.
B.OO
86.1
68.8
1.70
139.
747.
1995
a
417.
125.
8.00
87.9
78.1
1.90
365.
1083.
A
403.
125.
8.00
86.2
80.0
1.90
378.
1082.
b
601.
125.
10.6
90.5
101.
1.90
379.
1309.
B
589.
125.
10.7
86.5
108.
1.90
387.
1308.
Additions (1977-1995)
a
219.
-32.3
6.80
20.5
36.2
1.60
358.
610.
A
204.
-32.3
6.80
18.8
38.1
1.60
338.
575.
b
403.
-32.3
9.40
23.1
59.0
1.60
339.
803.
D
390.
-32.3
9.50
19.1
66.0
1.60
347.
801.
ISJ
      Legend:   a=  Ml.2(0)0.1  (Moderate growth baseline)
                A  •-  MT. 2(90)0. I/O.03   (Moderate growth, 90 percent SO2 removal on post-1982
                                        units, either particulate limit)
                b -  HI.2(0)0.1   (High growth baseline)
                D =  HI .2(90)0.1/0.03  (High growth, 90 percent SO? removal on post 1982 units,
                                       either participate limit)

-------
the long term, partially compensated for by increased nuclear capacity.  Note
that the  tabular values are  net  "capability,"  i.e., generating  capacity  after
reducitons due to all pollution control devices are taken into account: these may
amount to as  much as ten percent of the "name-plate" capacity. If name-plate
values were shown, the  values  for  coal  capacity under  the  more stringent
controls scenarios would increase by roughly five percent in 1995. Since nuclear
units have only water pollution controls, the name-plate capacities of the nuclear
units are  greater by a smaller fraction, and that fraction is independent of the
SC>2 controls assumed.

Two other aspects of the planning algorithms used by the model to create new
capacity once the announcements data file for a given state has  been exhausted
bear upon the amount of nuclear capacity added in  the 1990s.*  New base-load
units are added in discrete sizes, not in the  exact amount of capacity needed to
bring the reserve margin up to the minimum.**  Secondly, the specified future
fractions  are  applied in a probabilistic sense.  For example, specifying that 70
percent of the post-1985 capacity  built in a New England state will be nuclear is
interpreted by the model as a seven out of ten probability that a new unit will be
nuclear. As a result, the exact amount of nuclear capacity installed by any year
beyond  1985 cannot be "clamped" exogeneously.  While this  reflects  planning
uncertainties  in the  real world, it does  complicate  the process of isolating the
impacts of changing  standards applied to fossil-fueled  units.  Aggregate nuclear
capacity can  be adjusted  by trial and error;  this was in  fact done for  the
HI.2(90)0.03 scenario,  in which the initial model  runs produced higher nuclear
values than shown in these results.
     Announced  units are not necessarily put into operation  at  the  date the
     utility has projected:  units are deferred if the specified demand growth
     does not justify  operation until a  later date.  We assume, however, that
     steam plant construction schedules may not be accelerated and that com-
     bustion turbines  will be built in the short term, if demand requires and if
     more announced units are planned for a later year.
V «*
     The simulated sizes are:  nuclear - 1,200 Mw,  coal - 600 Mw,  oil -
     500 Mw.
                                   2-8

-------
Table 2-5 shows capacity mix by geographic region for the baseline scenario with
moderate growth (M1.2(0)0.1). The last column gives the capacity additions over
the years 1985-1995,  the period over which new builds are determined primarily
by the future-mix fractions.

The age distribution  of  coal-fired units is important in this study because we
apply the revised  new  source  standards  only to those units  that came into
commercial operation  in  1983 or later.*  The following summarizes  the key
dates used to categorize all fossil-fired units by applicable emission standard:
        On Line                 Applicable Category of Emission Standards
   1976 or earlier                State Implementation Plan (SIP)
     1977-1982                  New Source Performance Standards (NSPS)
    1983 or later                 Revised New Source Performance Standards
 Table 2-6 gives the age breakdown, by category in five year intervals from 1980
 to  1995. In 1985, the first year for which we will be discussing emission changes
 due to a NSPS revision, the fraction of coal-fired capacity affected is  only 11.5
 percent. In the lower growth rate case,  less than half of the coal-fired capacity
 would be subject to the revised standard by 2000, the last year of the simulation.
 With higher growth, the fraction affected in that year is 69 percent.
      The Clean Air Act stipulates that the revised standard will apply to those
      units whose construction commences after  publication of  the proposed
      revision. The definition of "commence construction" is somewhat at issue,
      and construction periods vary: we assume a fixed year of implementation,
      1983.
                                   2-9

-------
                  Table 2-5
with Moderate Growth
(Net generating capability, Gigawatts)
New England
Coal
Oil & Gas
Comb Cycle
Hydro
Turbine
Geothermal
Nuclear
TOTAL
MuTAtlantic
Coal
Oil & Gas
Comb Cycle
Hydro
Turbine
Geothermal
Nuclear
1976
0.58
11.9
0.08
2.53
1.52
0.0
4.14
20.8
1976
20.3
24.5
0.13
6.69
10.6
0.0
7.38
1985
MMMMM^
1.34
13.2
0.31
2.53
2.28
0.0
9.87
29.5
1985
24.5
25.0
0.13
8.05
13.1
0.0
21.5
1995
3.97
13.1
0.31
2.53
2.28
0.0
20.0
42.2
1995
38.2
24.1
0.13
8.05
13.1
0.0
51.6
1985-1995
2.63
-0.10
0.0
0.0
0.0
0.0
10.13
12.7
1985-1995
13.7
-0.9
0.0
0.0
0.0
0.0
30.1
TOTAL
69.6
92.3
135
42.9
South Atlantic
 1976
 1985
 1995
 1985-1995
Coal
Oil & Gas
Comb Cycle
Hydro
Turbine
Geothermal
Nuclear
TOTAL
41.2
22.4
0.0
5.74
9.10
0.0
9.67
88.1
53.8
24.1
1.40
9.72
15.1
0.0
27.5
132
80.6
23.6
1.40
9.78
15.5
0.0
72.0
203
26.8
-0.5
0.0
0.06
0.4
0.0
44.5
71.3
                         2-10

-------
Table 2-5 (cent.)
Projected Capacity Mix. by Reqion, for
the
Baseline Scenario,with Moderate Growth
(Net
East North Central
Coal
Oil & Gas
Comb Cycle
Hydro
Turbine
Geothermal
Nuclear
TOTAL
East South Central
Coal
Oil & Gas
Comb Cycle
Hydro
Turbine
Geothermal
Nuclear
TOTAL
West North Central
Coal
Oil & Gas
Comb Cycle
Hydro
Turbine
Geothermal
Nuclear
TOTAL
generating
1976
69.1
7.28
0.0
3.13
6.80
0.0
8.69
95.0
1976
30.5
4.32
0.0
5.98
2.69
0.0
2.30
45.8
1976
18.5
4.96
0.0
3.00
4.81
0.0
4.00
35.3
capability,
1985
89.5
8.62
0.0
3.17
11.7
0.0
28.8
142
1985
37.0
4.63
0.0
7.53
3.06
0.0
18.0
70.2
1985
31.7
2.77
0.09
4.00
7.88
0.0
6.28
52.7
Gigawatts)
1995
104.3
8.59
0.0
3.17
12.0
0.0
79.3
207
1995
44.6
4.33
0.0
7.53
3.13
0.0
39.0
98.6
J99S
42.7
2.74
0.09
4.00
8.50
0.0
14.0
72.0

1985-1995
14.80
-0.03
0.0
0.0
0.30
0.0
50.5
65.6
1985-1995
7.60
-0.30
0.0
0.0
0.07
0.0
21.0
28.4
1985-1995
11.0
-0.03
0.0
0.0
0.62
0.0
7.72
!9.3
2-11

-------
                     Table 2-5 (cont.)
           Proiected-Copoclty Mix, by Region, for the
           Baseline Scenario with Moderate Growth
           (Net generating capability, Gigawatts)
West Sooth Central
Coal
Oil & Gas
Comb Cycle
Hydro
Turbine
Geothermal
Nuclear
TOTAL
N. Mountain
Coal
Oil & Gas
Comb Cycle
Hydro
f
Turbine
Geothermal
Nuclear
TOTAL
1976
2.78
57.1
0.23
2.32
2.78
0.0
0.90
66.1
1976
1.27
0.07
0.0
3.15
0.08
0.0
0.0
4.57
1985
19.6
57.0
0.46
2.57
5.83
0.0
9.03
94.5
4985
3.03
0.07
0.0
3.89
0.60
0.0
0.0
7.59
1995
58.4
25.6
0.46
2.57
12.4
0.0
34.0
133
1995
5.27
0.07
0.0
3.93
0.61
0.0
0.0
9.88
1985-1995
38.8
-31.4
0.0
0.0
6.57
0.0
25.0
38.9
1985-1995
2.24
0.0
0.0
0.04
0.01
0.0
0.0
2.29
S. Mountain
1976
1985    1995
1985-1995
Coal
Oil & Gas
Comb Cycle
Hydro
Tufa Turbine
Geothermal
Nuclear
TOTAL
12.8
3.50
0.23
3.14
1.75
0.0
0.0
21.4
19.5
3.26
0.51
3.67
2.73
0.0
0.67
30.3
27.1
2.18
0.51
3.67
2.83
0.0
7.73
44.0
7.6
-1.08
0.0
0.0
0.10
0.0
7.06
13.7
                           2-12

-------
                       Table 2-5 (cent.)

            Projected Capacity Mix, by Region, for the
            Baseline Scenario-with Moderate Growth
            (Net generating capability, Gigawatts)
Pacific               1976       1985      1995      1985-1995

Goal                 1.37       4.51       12.3          7.8
Oil & Gas          21.4       20.7       20.5         -0.2
Comb Cycle          0.57       5.08      5.08         0.0
Hydro              31.7       41.0       42.6          1.6
Turbine              1.77       6.56      7.66         I.I
Geothermal           0.32       1.72      1.93         0.21
Nuclear              3.39      16.2       47.0         30.8

TOTAL             60.5       95.8      137           41.3
                              2-13

-------
Table 2-6.
(Net generating capability, Gigawatts)
Year
I960
1985
1990
1995
2000
SIP Units
206.8
(87.4%)
212.5
(74.7%
212.1
(59.7%)
212.1
(50.8%)
212.1
'43.5%)
Moderate Growth
NSPS Units
29.8
(12.6%)
39.3
(13.8%)
39.3
(11.1%)
39.3
(9.4%)
39.3
(8.1%)
Scenarios
Revised NSPS Units
0.0
(0%)
32.7
(11.5%)
103.9
(29.2%)
1 66.0
(39.8%)
236.4
(43.5%)
Total
237
285
355
417
488
High Growth Scenarios
Year
1980
1985
1990
1995
2000
SIP Units
206.9
(87.4%)
212.6
(74.7%)
212.3
(50.3%)
212.3
(35.3%)
212.3
(25.8%)
NSPS Units
29.8
(12.6%)
39.3
(13.8%)
39.3
(9.3%)
39.3
(6.5%)
39.3
(4.8%)
Revised NSPS Units
0.0
(0%)
32.7
(11.5%)
170.8
(40.4%)
349.7
(58.2%)
570.1
(69.4%)
Total
237
285
422
601
822
    2-14

-------
Table 2-7 gives projections of flue gas desulfurization ("scrubber") capacities for
all the S02 control variants, assuming the revised particulate limit of  12.9 ng/J
(0.03  lb/!06Btu).  The  numbers listed  under "Capacity of FGD Systems" are
measures of the size of the scrubbers, not of the units being scrubbed. These two
capacities can differ, because the pollution  control module allows for partial
scrubbing of the flue gas.  More specifically, we assume full scrubbing only when
the required SC^ removal equals or exceeds  90 percent.  Less than 90 percent
removal  is achieved by scrubbing less than 100 percent  of  the gas at 90 percent
removal  efficiency. The "capacity" of the FGD system  for an individual boiler is
therefore the generating unit's name-plate capacity, times the fraction of the
gas scrubbed (a number  between 0.3 and 1.0).* This is a  measure of the design
size of  the scrubber  module.  Finally, note  that  the figures reported under
"Generating Capability" include all pollution control related capacity penalties:
this explains why the FGD capacities exceed the "Revised  NSPS" net generating
capabilities for units subject to the 90 percent removal requirement.

The variations in the required FGD capacities for SIP and NSPS units in 1985 are
due to differences  among the scenarios  in the sulfur levels of coals assigned to
SIP and  NSPS units.  The sulfur content and region  of origin of coals used in all
the scenarios were derived from the output of a coal supply model developed by
ICF, Inc.5

Table 2-8 shows  a regional breakdown of installed  FGD capacity in 1990 under
the high growth scenario with the 90 percent removal requirement (H1.2(90)0.03).

Salient features of  these results are:
      Assumed coal sulfur  values  were adjusted downward to the  compliance
      level whenever less than 30  percent SOj removal was required to comply
      with the applicable limit.   This  precludes the building  of  unrealistically
      small scrubbers.
                                   2-15

-------
                               Table 2-7
    Projected Coal Capacity Usina Flue Gas Oesulfurizdtion
(Gigawatts)
Scenario
Ml. 2(0)0.1



Ml. 2(90)0. 03b
(Ml. 2(90)0.1)



Hi. 2(0)0.1



Year
1985
1990
1995
2000
1985
1990
1995
2000
1985-
1990
1995
2000
Capacity of
Unit Category Generating Capability FGD Systems
SIP and NSPS
All
SIP and NSPS
All
SIP and NSPS
All
SIP and NSPS
All
SIP and NSPS
Revised NSPS
All
SIP and NSPS
Revised NSPS
All
SIP and NSPS
Revised NSPS
All
SIP and NSPS
Revised NSPS
All
SIP and NSPS
All
SIP and NSPS
All
SIP and NSPS
All
SIP and NSPS
All
285
285
355
355
417
417
487
487
252
31.2
283
252
94.8
347
252
151
403
252
212
464
285
285
422
422,
602
602
822
822
52.5
52.5
61.3
61.3
67.1
67.1
75.1
75.1
38.7
35.5
74.2
38.7
106
145
38.7
168
207
38.7
236
275
45.6
45.6
59.4
59.4
76.5
76.5
99.7
99.7
a See text, page 2-13.
b Differences in these results for the two different participate scenarios are insignificant.
                                   2-16

-------
                   Table 2-7 (continued)
 Projected Cool Capacity Using Flue Cos Desulfurization
                           (Gigawatts)
Scenario Year Unit Category
Hl.2(90)0.03b 1985 SIP and NSPS
(HI. 2(90)0.1) Revised NSPS
All
1990 SIP and NSPS
Revised NSPS
All
1995 SIP and NSPS
Revised NSPS
All
2000 SIP and NSPS
Revised NSPS
All
M 1 .2(30)0.03 1 985 SIP and NSPS
Revised NSPS
All
1990 SIP and NSPS
Revised NSPS
All
1995 SIP and NSPS
Revised NSPS
All
2000 SIP and NSPS
Revised NSPS
All
Generating Capacity
253
39.2
292
253
167
420
253
336
589
253
543
796
252
40.3
292
252
94.7
347
252
151
403
252
212
464
Capacity of
FGD Systems
31.0
34.0
65.0
31.0
185.0
216.0
31. CT
372.0
403.0
31.0
602.0
633.0
38.7
31.6
70,3
38.7
93.3
132
38.7
149
138
38.7
209
248
a See text, page 2-13
b Differences in these results for the two different participate scenarios are insignificant.
                                2-17

-------
                      Table 2-7 (continued)
    Projected Coql Capacity Using Flue Gas Destdfurizotion
                             (Gigawatts;
Scenario Year
Hl.2(80)0.03b 1985
1990
1995
2000
M0.5(0)0.03 1985
1990
1995
2000
Unit Category
SIP and NSPS
Revised NSPS
All
SIP and NSPS
Revised NSPS
All
SIP and NSPS
Revised NSPS
All
SIP and NSPS
Revised NSPS
All
SIP and NSPS
Revised NSPS
All
SIP and NSPS
Revised NSPS
All
SIP and NSPS
Revised NSPS
All
3iP and NSPS
Revised NSPS
All
Generating Capacity
253
40.5
292
253
167
420
253
336
589
253
543
796
252
40.5
292
252
95.9
348
252
152
404
252
212
464
Capacity of
FGD^Systems0
30.0
30.1
61.0
30.0
161.
191
30.0
321
351
30.0
527
557
39.7
31.6
71.3
33.7
93.5
132
38.7
149
138
38.7
208
247
a See text, page 2-13.
b Differences in these results for the two different particulate scenarios are insignificant.
                                2-18

-------
                                Table 2-8
Regional Breakdown of Installed FGD Capacity in 1995. Scenario HI.2(90)0.03
                               (GJgawatts)
 Region13                     Net Coal-Fired Capacity              FGD Capacity
NE
MA
SA
ENC
ESC
WNC
WSC
NM
SM
PA
Nation
6.75
59.2
102
158
54.4
50.6
87.5
13.9
32.4
25.2
589
6.52
42.5
75.5
81.5
23.2
31.5
84.1
13.9
24.5
20.1
403
     See Table 2-1.
                                   2-19

-------
     •    Given the coal assignments used in this analysis and the
          present SC>2 emission limitations, installed FGD capacity
          would amount to  16 to  18 percent  of  net coal-fired
          generating capacity by 1985, remaining at approximately
          that level for the following decade.

     •    Under the "high growth" scenario, the 80 percent removal
          requirement increases installed FGD capacity from 59 Gw
          under the current standard to 191 Gw by 1990, and from
          77 Gw to 351 Gwby 1995.

     •    Increasing the removal requirement from 80 to 90 percent
          further increases the installed FGD capacity by 10 to 15
          percent  by  1995, depending  upon the  post-1983  growth
          rate.

     •    The amount of FGD  installed  in response  to  a  revised
          NSPS  standard of 215 ng/J (0.5 Ib/IO6  Btu)  is nearly the
          same  as  that  projected under the 80  percent removal
          scenario.

     •    The regions of the  country with the highest installed
          scrubber  capacities  by  1995,  assuming  a  90 percent
          removal  requirement, are West South  Central (84 Gw),
          East  North Central  (82 Gw), and South  Atlantic (76 Gw).
          These three  regions  contain 60 percent  of  the  total
          installed scrubbing capacity in that year.


As indicated  on the previous tables, our projections of capacity mix and scrubber

usage (and, as we show in the next chapter, SCK emissions), are not sensitive to a
revision of the current new source standard for particulates.  This is because the

coal  assignments, capacity penalties, future-mix fractions and dispatch orders

remain the same. The costs of control do increase — but not enough to affect

these key determinants of industry behavior.  The small size of the cost increase

is due partially  to  the assumption, stipulated by  EPA, that  units burning low

sulfur western coals would use fabric filters rather than precipitators to comply

with new  source standards.  Given the control costs models used in this study,

universal  use of  precipitators would increase the  costs of meeting the revised

particulate standard.
                                  2-20

-------
Projections of utility coal consumption are shown in Figure 2-1 for the moderate
and the high growth scenarios. (Variations in coal  consumption due to the dif-
ferent 502 contro' assumptions are too small to be significant.)  The curve starts
in 1976 at 404 million metric  tons (445  tons), which is very close to the actual
utility "burn" in that year as reported by the Federal Power Commission,7 406
million metric tons  (448 million tons).*  In the year 2000 differences in electric
demand growth rates after  1985 (3.4 to 5.5  percent) and in the percentage of
coal-fired capacity added lead to a dramatic difference in coal consumption, 910
metric tons  and 1,670 metric tons  in  the moderate and  high demand growth
cases, respectively.

 The  simulation model  accounts for differences between  coal mined and  coal
 burned due to tonnage  loss in coal preparation plants. (Changes in utility stock-
 piles  are not  considered.)   For  the sulfur levels of the coals  assigned and our
 assumptions about  the minimum  sulfur levels which are available in uncleaned
 coals, the model projects that 32 million metric tons of coal would have had to
 be mined in  1976 to account for refuse from producing  114  million metric tons
 (126 million  tons) of  cleaned coal,  assuming dense media separation  processes
 with 80 percent weight recovery.  This  compares with the U.S. Bureau of Mines'
 estimate of 79 million metric tons (87  million tons) of  steam and metallurgical
                                                                 Q
 coals that were cleaned by dense media  separation processes in  1975.
      The FPC reports both deliveries and consumption.  These may differ in any
      given year due to changes in stockpile levels.
                                    2-21

-------
    2000 n
     1800 '
o
v
O
Q.
tn
0
5
 8
2    1000
2
*—
o.
O
j
O
u
     1600
     1400
     1200
      800
      600
                                  "HIGH GROWTH" SCENARIOS
      400 -
                                                         "MODERATE GROWTH"
         1975
                       1980
1985
1990
1995
2000
                                           Year
               Figure 2-1.  Projections of electric utility coal consumption.
                                      2-22

-------
         3.0 AIR EMISSIONS, SOLID WASTES, WATER AND ENERGY

Emissions of the "criteria pollutants," S02, NOX and particulates, from all fossil-
fueled generating  units  under  each of the scenarios are summarized in this
section, using  the geographic regions defined in Chapter 2.  The implications of
these emissions for ambient air quality will be discussed in Volume III.

Solid wastes  considered are  the  sludges resulting from  the use  of FGD
("scrubber") systems.  Following EPA's directives, there were three generic FGD
systems  considered:  lime and  limestone nonregenerable,  and  magnesium-oxide
regenerable. The choice  among these types for an individual generating unit was
made on a random basis  with the distribution of selections having the following
probabilities:


               Probability that a unit installing FGD will choose;

Region                Lime               Limestone               Mag-Ox
New England*           0                      0                     100%
All others               38%                   57%                    5%
The  residuals  module  of  the  simulation  model  also  calculates  the water
evaporated by cooling systems, water used  by coal cleaning facilities,  and  the
make-up water demanded by FGD systems. (FGD make-up replaces water lost by
evaporation as well as that contained in the settled sludge.)  Water data reported
in this chapter will emphasize the FGD makeup component.

Like  other  pollution control devices, the  use of FGD on a generating unit
consumes energy and  reduces  the net generating capability of  the unit. The
energy  requirement ranges  from  three  to  ten percent of  the  boiler  input,
depending upon the kind of system used, the coal characteristics, and the level of
     See Table 2-1.
                                    •J~ I

-------
control.   Generating capability  penalties average  about five percent of the
uncontrolled value, again depending upon the particular system and the operating
conditions. Parameters relating to energy and capability penalties, as well as the
costs of  FGD and particulate controls, were adjusted  for  this  study to  be
consistent with those developed for EPA by Pedco Environmental, Inc., another
contractor supporting the NSPS review effort.
3.1 BASELINE EMISSIONS OF SO2, NOx, AND PARTICULATES

National emissions of S07, NO , and particulates  from fossil-fueled  electric
                         £     X
generating units in 1976, the first year simulated, are shown in Table 3-1.  Also
shown are some estimates of emissions from other references.

In comparing the results of these simulations in the years before  1983 with data
from  other sources, it is important to keep in mind the assumptions we have used
regarding compliance with emission regulations.  It was noted in  Table  I—I that
full compliance with State Implementation Plan (SIP) limits is not achieved in the
                                                                        s •
model until  1980.  In particular, retrofitting of high  efficiency electrostatic
precipitators* and FGD systems  for purposes of  compliance with  SIP  limits
occurs over the  period 1977 through  1979. This compliance schedule  causes the
particulate levels shown  in Table 3-1 to decrease  dramatically between  1976 and
1980, even though the amount of electrical  energy generated from coal and oil
steam plants increases by approximately 23 percent over that period.  Units that
comply with  their SIP limit by use of low sulfur coal, rather than by  retrofit of
FGD, are in  compliance as of the first year of the simulation.  Since only a
      Particulate controls of varying degree were imposed upon most coal-fired
      generating  plants  even before passage  of the original  Clean  Air  Act
      Amendments  in 1970.  Because of this,  we assume that  cyclone devices
      were used by all units on-line by the base  year for the simulation (1975).
      Collection efficiencies are assumed to be 50 percent (mass basis)  for units
      on-line before 1950, and 85 percent for newer units.  "Uncontrolled" emis-
      sions of particulates include these assumptions.
                                   3-2

-------
                                  Table 3-1
  Notional Power-Plant Emissions of SOy NO^, and Particulates in 1976 and 1980
 	( Million Metric Tons )	
             Calculated   Calculated  ,
              Emissions    Emissions  l973 Emissions
Pollutant
in 1976
in I960   from Source I1
1975 Emissions
from Source 2°
so2
NO
X
Particulates
13.6
4.6

4.9
14.4
5.6

0.8
17.6
6.3

3.3
12.1
6.1

2.4
a   One ton (2000 Ib) = 0.9070 metric ton.
    U.S. Environmental Protection Agency, 1973 Nationol Emissions Report 450/2-76-007,
     1976.
c   U.S. Energy Research and Development Administration, Regional Air Emissions
     Analysis of Alternative Energy Policies in 1985, 1977 (EPA data).    :
    relatively small fraction of SIP-controlled coal-fired units will use FGD (about
    23 percent) and since oil-fired units in the model comply with all SOo emission
    limits through  use of  low sulfur  oil,  the effect  of  the  1980  deadline  for
    compliance is less important in comparing the S02 numbers. The observed rise in
    S02  is due to the  increase in fossil-fired generation between  1976  and 1980.
    Finally,  very  few states have SIP  limits  for NO , so the-assumed compliance
    period is  not a factor  in comparing the NO values with other estimates.  As can
            •*                               J\
    be seen the other estimates indicated compare well  with  the Utility Simulation
    Model results.

    Projections over time  of aggregate emissions for the three criteria pollutions are
    shown in Figures 3—1, 3-2, and 3-3, assuming  no  change in  the current NSPS.
    These curves define  the "baseline"  projections against which  reductions  in
    emissions due to imposition of different revised standards can be weighed. The
                                      3-3

-------
         30 n
         25-
 D
 
-------
     5.0
 §

 I
 O
to
(£

5
LU

UJ
t-
<
_i

y
i—
cr
<
0.
4,0
     2.0
1.0
                                 a= H \3 (0) 0.4 scenario


                                 b= M 1.2 (0) O.I scenario
         1975
                I960
1985
1990
1995
2000
             Figure 3-2.  National power-plant participate emissions under

                         baseline scenarios.
                                    3-5

-------
    16.0,
    15.0-
    14.0-
     I2.C-
    10.0-
 s
 &
 o


     8.0
     6.0
to
=?   4.0
UJ
       t
       1975
                                         o=H 1.2(0)0.1 scenario

                                         b=M 1^(0)0.1 scenario
1980
1985
1990
1995
2000
                                     YEAR
                Figure 3-3. National power-plant NOy emissions under
                           the baseline scenarios.
                                     3-6

-------
results lead to the following conclusions about aggregate emissions from electric

power generation:


     •     National emissions of S02 from electric power plants will
           increase  from  1976 partial  compliance  levels  (about
           13.6 million metric tons) at about 2 percent per year until
           1985, if electricity demand grows at 5.8 percent per year
           until 1985.

     •     Under  high  demand  growth after 1985 (5.5 percent per
           year in total demand and roughly 6 percent per year  in
           coal-fired generation) national 862 emisisons  under cur-
           rent standards will increase at approximately 2.5 percent
            per  year.    A revised NSPS  with  90 percent  required
           removal will slow this growth in national SC^ emissions to
           less than one percent per year between  1985 and 2000.

     •     Under  moderate demand growth and the present emission
           standards national SO? emissions will increase at approxi-
           mately 0.4% per year Trom 1985 to 2000. A  revised NSPS
           with 90 percent removal will  bring about a net  decrease
           in national SOj emissions after 1985.   By the year 2000
           national SOU emissions will be approximately equal to  or
           below  1976 aggregate SCU emissions.

     •_    In 1995 SO? emissions  in the high demand case will  be
           reduced from the baseline projections  (current NSPS)  by
            17 percent   for  mandatory  80 percent post-combustion
           removal and by 27 percent for mandatory 90  percent post-
           combustion  removal.  In 2000 the reduction of national
           SO-  emissions  is  projected  to be  35 percent with the
           90 percent  removal  standard,  21  percent  with the  80
           percent removal standard.

     •     A reduction in  the electricity demand growth rate after
            1985 to 3.4 percent per year, along with a  continuation of
           the  current  NSPS S02 standard, will result  in a national
           S0?  emissions  level  m  2000  comparable to the  level  of
           emissions achievable under a 5.5 percent per year demand
           growth rate after 1985 and the 90 percent SO2 removal
           standard. There are, however, regional differences in the
           distribution of emissions in these cases.

     •     Assuming  the  moderate growth  rate, total  particulate
           emissions will increase only slightly above the present full
           compliance  level, and wiH remain nearly constant there-
                                    3-7

-------
           after, again assuming full compliance with existing emis-
           sion  limitations.  High demand growth by the mid-1980s
           would  lead  to further growth  in particulate  emissions
           throughout the 1990s to about I.I  million metric tons per
           year.
           Emissions of  NO   from power generation will  increase
           substantially undei current standards,  even assuming  an
           effective  electricity demand conservation program. Ex-
           tensive deployment of  new combustion  technologies (such
           as fluidized bed), would be needed  in order to slow the rise
           in nationwide NO  emissions in the 1990s.
In  1976  the  national average capacity  factor*  simulated for  all coal-fired
generating units was 0.54. Because of increasing demand the simulated capacity
factor rises to 0.59 in 1985. This increase  is reasonable because of falling utility
reserve margins  in the early 1980s and the emphasis on  coal-fired generation.
Since existing coal units are generally cheaper than newer units to  operate and
since existing coal units are subject to SIP emission limits which are usually less
stringent than the current new source limits of 516 ng/J (1.2 Ib/IO  Btu) for coal
and 413 ng/J (0.8 Ib/IO  Btu) for oil  units, this increase in capacity factors for
existing units will have adverse air quality impacts. Indeed plants subject to SIP
regulation  account fqr the bulk of $©2 emissions as shown in Table 3—2.  This
data suggests that tighter standards for SIP plants may eventually be needed to
substantially reduce SO2 emissions in some regions.

In the Utility Simulation Model  each type  of generating unit is constrained by an
availability and a maximum capacity factor for each state.  This  reflects the
fact that  all units need to be out of commission for scheduled maintenance and
unanticipated down-time.   The  projections  reported  here  assume  a  yearly
      The  capacity  factor  measures  the  extent to which  a generating unit is
      utilized. It is calculated as the ratio of the energy actually generated in a
      given year to  that which would have been generated if the unit had run at
      full rated capability throughout the entire year. "Base-load" units normally
      have capacity factors between 0.5 and 0.8.

                                     3-8

-------
                                Table 3-2
Aggregate SO^ Emissions from Fossil-Fueled Generation, by Category of Unit
                           (10  metric tons/year)
Year
1985
1995
2000
a
b
c
Scenario M 1
SIP
Units
13.3 (89%)
11.5 (73%)
10.5 (66%)
.2(0)0.1°
NSPS
Units
I.I (7%)
1.0 (6%)
1.0 (7%)
Scenario HI. 2(0)0. lb
Post
I982C
Units
0.7 (4%)
3.3 (21%)
4.4 (27%)
Moderate growth baseline. (Chapter 1, Table
SIP
Units
14.1 (89%)
12.3 (61%)
11.7 (49%)
1-4)
NSPS
Units
1.0 (7%)
I.I (5%)
I.I (5%)

Post
I982C
Units
0.6 (4%)
6.9 (34%)
11.0 (46%)

High growth baseline.'
These are assumed
NOTE: See Table 2-6
to be subject to any revision to the
current NSPS

for corresponding generating capacities.
  availability of 0.85 for coal units and base-loaded coal  units may be dispatched
  up to a maximum capacity factor of 0.77.  Daily load  curves and a  least-cost
  dispatch order always  lead to lower aggregate capacity  factors for each class of
  unit  for  each  state  and  year.   However,  it has  been  argued that  future
  availabilities  of coal  units  with FGD  systems will be  less than  present
                                          i,
  availabilities.  The question of availabilities and of the expected capacity factors
  is of  importance, particularly in the  early  1980s when  a number of states will
  have reduced reserve margins. Further work is anticipated to test the sensitivity
  of the absolute levels of emissions to our assumptions of future availabilities and
  maximum allowable capacity factors.
                                    3-9

-------
    EMISSION CHANGES DUE TO NSPS REVISIONS

     3.2.1 Some Comments on the Alternatives

As detailed in Chapter I,  there  are three alternative forms of a revised New
Source Performance Standard for S02 emissions from coal-fired boilers which
are discussed in this report:

     •     Mandatory  90 percent post-combustion SO, removal  with
           an upper limit on emissions of 516 ng/J  (I.z Ib/IO  Btu).
     •     Mandatory  80 percent post-combustion S02 removal  with
           the same upper  limit.
     •     An upper limit of 215 ng/J  (0.5 Ib/IO6 Btu) with no postu-
           lated minimum percentage removal.

Depending upon the circumstance, either the percentage removal requirement or
the  emission  "cap" can be  the controlling  factor.  Consider an  "average"
midwestern coal  with a sulfur  content  of 3.5 percent and  a heating value of
25,600 kJ/kg (11,000 Btu/lb).  The rate of uncontrolled SO2 emissions in this case
would be 2,580 ng/J (6.0 Ib/IO6 Btu).*  Emissions under the 90 percent removal
requirement would be 258 ng/J  (0.6 Ib/IO6 Btu), and 516 ng/J  (1.2 Ib/IO6 Btu)
with the 80 percent variation. In both cases, the 516 ng/J cap is not controlling -
- and in fact it would not be controlling for all coals whose sulfur content is equal
to or less than about 1,370 nanogram sulfur per Joule (3.2 Ib/IO   btu), which are
the bulk of the utility steam coals currently being burned.  Note also that for the
example coal  just considered, 80 percent removal  would be dictated  by the
current NSPS of  516 ng/J.  Hence, utilities subject to the current  NSPS and
      We assume an emission factor, K, of 0.95 for bituminous coals and 0.85 for
      subbituminous  coals.   Uncontrolled emissions of  SO,  are  calculated as
      (2KS(%))/(HV/IO  ), where HV is the coal heating value (English units).
                                   3-10

-------
burning coals where sulfur levels are at least  1,370 ng/J (3.2 Ib sulfur/106 Btu)
would  incur  no  additional S02 control costs in complying with the 80 percent,
516 ng/J "cap" standard, assuming the averaging times used to define compliance
and monitoring requirements were the same.
 The third type of revised standard, a limit of 215 ng/J with no minimum removal
 requirement, would  amount to a  less stringent  standard than the 90 percent
 removal case for many coals, namely those with sulfur levels less than 1,130 ng/J
 (2.63 Ib/10  Btu). For a good quality bituminous coal with two percent sulfur and
 a heating value of 27,900 kJ/kg (12,000 Btu/lb), an emission limit of  215 ng/J
 (0.5 Ib/IO Btu) and an 80 percent removal requirement are nearly equivalent, all
 other factors being equal.

 Quantitative projections of SO^ and participate emissions by geographic region
 under the present standard and the candidate NSPS revisions  are  given in the
 next section. Projections of NO emissions are not shown, since all alternatives
                                              ft
 assumed  the same  limit (258 ng/J or 0.6 Ib/IO  Btu),, and because the changes
 from the baseline projections are very small (less than  10 percent decrease in the
 year 2000).   Variations in sulfur emissions  brought about by  a change in the
 particulate limit are also small, and therefore not all  combinations of revised
 particulate and  SQ^ limits are  shown.  Finally, the reader is reminded that  we
 have assumed in this study that the NSPS revisions  apply  only to coal-fired
 generating  units of  25 Mw or greater rated capacity which begin  operation  in
 1983 or  later.   As a result,  variations caused by  revised controls are zero or
 negligible before  1985.   (Refer to Chapter 2,  Table 2-6 for a breakdown of
 generating capacity by SIP, NSPS, and revised NSPS categories.)
      3,2.2 Emission Data

                                                                 •^
 National and regional projections  of  SC^ emissions under  all the SC>2 control
 variants  are given  in  Table 3-3,  including  the  baseline scenarios.   National
 emissions are plotted in Figures 3-4 and 3-5.  (Results for scenario M0.5(0)0.03)
                                    3-11

-------
                                 Table 3-3

                   Regional ond Notional Power-Plant SCX Emissions

                        (Million metric tons per year)
 Scenario Ml.2(0)0.1

 Region           1976        1985        1990        1995        2000

  NE              .23       0.25        0.31        0.25        0.26
  MA             2.06        |.70         1.66        1.62        1.69
  SA             3.09       3.62        3.53        3.73        3.80
  ENC           3.50       3.96        3.79        3.69        3.61
  ESC            2.64       2.44        2.38        2.28        2.00
  WNC           1.32        |.6I         1.58        1-70        1.83
  WSC           O.I I        0.95         1.52        1.73        1.91
  NM             0.12       o.09        0.13        0.18        0.24
  SM             0.34       o.23        0.30        0.28        0.28
  PA             0.20       o.3l        0.31        0.33        0.29
  National       13.6         15.2        15.5         15.8         15.9
Scenario Ml.2(80)0.03

Region           1985         1990         1995        2000

 NE              .24        0.29         0.22        0.22
 MA             |.68      '  1.59         1.52        1.53
 SA             3.93        3.82         3.82        3.68
 ENC            4.36        3.96         3.64        3.22
 ESC            2.44        2.39         2.28        2.05
 WNC           |.43        1.37         1.53        1.76
 WSC            0.78        1.02         1.12        1.14
 NM             0.07        0.07         0.09        0.1 I
 SM             0.20        0.20         0.20        0.18
 PA             0.27        0.25         0.21        0.16
 National        15.4        15.0         14.3         14.1
                                  3-12

-------
            Table 3-3 (continued)



Regional and National Power-Plant SO., Emissions

Scenario Ml. 2(90)0.03
Region
NE
MA
SA
ENC
ESC
WNC
WSC
NM
SM
PA
National
Scenario M0.5(OX).03
Region
NE
MA
SA
ENC
ESC
WNC
WSC
NM
SM
PA
National
(Million

1985
0.23
1.65
3.88
4.30
2.44
1.43
0.74
0.06
0.19
0.26
15.2

1985
0.23
1.65
3.88
4.30
2.44
1.43
0.79
0.08
0.21
0.28
15.3
metric tons per

1990
0.25
1.49
3.60
3.90
2.35
1.35
0.84
0.05
0.17
0.22
14.3

1990
0.26
1.49
3.61
3.90
2.36
1.41
1.08
0.09
0.23
0.27
14.7
	 i
year)

1995
0.18
1.36
3.49
3.58
2.25
1.49
0.79
0.06
0.16
0.19
13.6

1995
0.19
1.37
3.50
3.59
2.25
1.53
1.20
0.12
0.25
0.24
14.3


2000
0.18
1.29
3.24
3.17
2.00
1.69
0.76
0.07
0.13
0.13
12.7

2000
0.18
1.30
3.26
3.17
2.01
1.75
1.23
0.16
0.25
0.19
13.5
                   3-13

-------
                                  Table 3-3 (cont.)



                      Regional and National Power-Plont SQ^ Emissions



                                (Million metric tons per year)
Sc«ncrioH 1.2(0)0. 1
Region
NE
MA
SA
ENC
ESC
WNC
WSC
NM
SM
PA
National
1985
0.25
1.67
4.04
4.29
2.43
1.56
0.94
0.07
0.23
0.32
15.9
1990
0.26
1.62
4,19
4.75
2.28
1.63
1.84
0.14
0.31
0.43
17.5
1995
0.32
1.72
4.67
5.45 •
2.26
1.93
2.71
0.28
0.38
0.60
20.3
2000
0.44
1.87
5.18
6.14
2.44
2.29
3.49
0.42
0.56
0.90
23.8
Scenario Hi.2(80)0.03
Region
NE
MA
SA
ENC
ESC
WNC
WSC
NM
SM
PA
Motional
]985
0.24
0.00
3.75
3.66
2.40
1.30
0.75
0.06
0.20
0.26
14.3
1990
0.24
1.67
3.96
4.11
2.30
1.34
0.98
0.09
0.20
0.26
15.2
1995
0.29
1.97
4.04
4.78
2.25
1.65
1.22
0.12
0.21
0.26
16.8
2000
0.38
2.16
4.09
5.56
2.51
1.91
1.44
0,15
0.24
0.32
18.8
                                   3-14

-------
              Table 3-3 (coot,)
Regional and National Power-Plant SO-> Emissions
        (Mi IIion "metric tons per year)
Scenario HI. 2(90)0.03
Region
NE
MA
SA
ENC
ESC
WNC
WSC
NM
SM
PA
National
19
1
3
6
4
3
1
2
0
0
1
24
1985
0.23
1.65
3.70
3.60
2.39
1.30
0.73
0.06
0.19
0.25
14.1
1990
0.20
1.54
3.62
3.91
2.27
1.31
0.82
0.07
0.17
0.24
14.2
1995
0.22
1.59
3.46
4.29
2.37
1.59
0.90
0.08
0.15
0.22
14.9
2000
0.24
1.60
3.27
4.67
2.47
1.75
0.98
0.09
0.15
0.24
15.5
                      3-k5

-------
         30-i
         25-
o
v

I
20-
o
o
         15-
to
g
to
to
LLl
 (N
O
CO
         10-
                        a = M 1.2(0)0.1 scerKirio
                        b = M 1.2(80) 0.03 scenario
                        c = M 1.2(90) 0.03 scenario
 5-
           1975
              1980
1985
1990
1995
                                                                           2000
                   Figure 3-4.  National power-plant SO- emissions
                   under alternative control scenarios, moderate growth.
                                    3-16

-------
         30
         25-
o
0)

fc
a.
0)
o
         20-
         15 -
to

O
co
CO
LU
 C
O
CO
10 -
                         a = H 1.2(0)0.1 scenario
                         b = H 1.2(80) 0.03 scenario
                         c = H 1.2(90) 0.03 scenario
          5  -
            1975
               I960
1985
1990
1995
2000
                      Figure 3-5. National power-plant SO^ emissions under
                      alternative control scenarios, high growth.
                                     3-17

-------
             Table 3-4
Regional Emission Reductions in 1990 Due
to Mandatory

90 Percent S>O? Removal — High Growth Scenarios





(Million metric tons emitted)
Region
South Mountain
West South Central
North Mountain
Pacific
New England
West North Central
East North Central
South Atlantic
Mid Atlantic
East South Central
National
HI. 2(0)0.1
0.32
1.85
0.15
0.43
0.26
1.64
4.75
4.20
1.63
2.28
17.5
H 1.2(90)0.03
0.17
0.82
0.07
0.25
0.20
1.31
3.91
3.63
1.54
2.27
14.2
Change in SO2 Emissions
I06 Tonnes
- .15
-1.03
- .08
- .18
- .06
- .33
- .84
- .57
- .09
- .01
-3.3
Percent
-47%
-56%
-53%
-42%
-23%
-20%
-18%
-14%
- 6%
- 0%
-19%
                   3-18

-------
are not shown because the results are close to those for scenario M1.2(80)0.03;
see Table 3-3.)

The revised standards  have  the greatest relative impact  in  those geographic
areas which do not presently have a large base of coal-fired generation. This is
particularly true of the West  South  Central region in which 87 percent of the
base-year (1975) generating capacity was oil and gas-fired.  For the 90 percent
control scenario with high growth Table 3-4 shows aggregate emission reductions
in 1990 by region.

In  1990 a ninety percent removal standard reduces  national SOj emissions by
3.3 million metric tons (19%),  while the  West South   Central  region (56%),
North Mountain region (53%), South Mountain region (47%), Pacific region (42%)
and the New England region  (23%) have  the  greatest percentage  emissions
reductions.. In terms of total tonnage emission reduction the West South Central,
East North Central and South  Atlantic regions have the largest SC^  emissions
removal.

National projections  of  particulate  and NOX emissions, assuming the higher
growth rate, are shown in Table 3-5 and Figure 3-6.
                                   3-19

-------
                              Table t-5a
           Regional and National Power-Plant NO  Emissions
                     (Million metric tons per year)

Scenario Hl.2(90)0.03
Region           1985         1990          1995         2000
NE
MA
SA
ENC
ESC
WNC
WSC
NM
SM
PA
National
.11
.69
1.23
1.66
.62
.75
1.08
.19
.45
.33
7.17
.13
.80
1.58
2.02
.65
.91
1.81
.31
.56
.56
9.33
.17
1.10
1.85
2.57
.81
1.32
2.61
.47
.66
.73
12.29
.26
1.34
2.13
3.18
1.03
1.78
3.61
.62
.82
1.17
15.93

-------
                           Table 3-5b

      Regional and National Power-Plant Particulate Emissions

                  (Million metric tons per year)




Scenario Hl.2(0)0.1

Region           1985          1990          1995        2000

NE               .016          .018          .023         .034
MA               .14          .12          .11          .10
SA               .26          .28          .34          .39
EMC              .25          .27          .31          .36
ESC              .11           .11          .11          .12
WNC             .10          .12          .14          .15
WSC              .06          .08          .09          .11
MM               .005          .006          .009         .Oil
SM               .044          .045          .043         .042
PA               .033          .037          .040         .055
National         1.02          1.09          1.22        1.38
Scenario Hl.2(90)0.03

Region           1985          1990          1995        2000

                                                        .015
                                                        .11
                                                        .21
                                                        .28
                                                        .14
                                                        .137
                                                       1.05
                                                        .012
                                                        .031
                                                        .048
                                                       1.08
NE
MA
SA
ENC
ESC
WNC
WSC
NM
SM
PA
National
.015
.14
.24
.24
.12
.070
.04
.005
.042
.030
.94
.012
.12
.23
.25
.12
.096
.06
.007
.037
.035
.97
.013
.11
.22
.27
.13
.120
.08
.010
.031
.037
1.03

-------
    5.0 T
x

to
Q.
ID
O
to

O
to
LU
LJ
<
_J

u
h-
tr
<
CL
4.0 -
    3.0 -
    2.0  •
1.0 •
                                     1.2(0)0.1
                               b = H 1.2(90)0.03
        1975
                    1980             1985            1990            1995
                                          YEAR
2000
                     Figure 3-6. National power-plant particulate emissions,
                                 high growth
                                          3-20

-------
These results show that tightening the participate NSPS for coal-fired units from
the current 43 ng/J (0.1 lb/!06Btu)  to 13 ng/J  (0.03 Ib/IO6 Btu) reduces total

particulate  emissions  from  power generation by II percent by  1990 and by
22 percent by  2000,  assuming a  5.5 percent per  year  energy demand growth
after 1985.   (Corresponding results  for  the  lower growth  rate  scenarios are
9.0 percent  and 12 percent, respectively.)  Changes in  aggregate emissions of
N0x due  to  a revised NSPS value of 258 ng/J  (0.6 lb/!06Btu) are negligible,
since emissions from the  large base of unaffected (pre 1983) units swamp the
14 percent reduction achieved by individual post 1982 units. (Similarly, it should
be  remembered that the  revised particulate standard  would reduce  emissions
from individual post-1982 units to one-third, which might have a more substantial
effect at the local level than the national aggregate numbers imply.)


Salient features of these data can be summarized  as follows:
      •    The  maximum  reduction in national SO, emissions from
           the level projected with the current NSPS is projected to
           be  35 percent,  obtained  in  the  year 2000  under  high
           growth conditions  with a 90 percent removal revised
           standard.

      •    Relaxing the SC^ removal requirement from 90 percent to
           80 percent reduces the maximum projected reduction to
           21 percent.

      •    Assuming a  moderate electricity demand growth  rate
           after 1985,  the  maximum projected  reduction in  SC>2
           emissions in 2000 at the national level is 20 percent.

      •    More stringent new source  standards have a more substan-
           tial impact at the regional level: emissions of SC^ in the
           Mountain and  West Central  states will be  reduced  by
           49 percent and 39 percent by 1990, respectively, assuming
           the 90 percent removal requirement.

      •    Given the coal sulfur levels used in this analysis,  the
           amount of SO7  emitted  under the 80 percent removal
           standard and 1T»e 2l5ng/J (0.5 Ib/IO* Btu) standard are
           nearly the same in most regions.  Nationally,  emissions
           differ by a  maximum  of four percent.  In the  Mountain
           states,  where relatively low sulfur coals are  used, the
           80 percent removal requirement further reduces  emissions
           by about 30 percent in  2000.

                                     3-21

-------
     •     Revising  the new source standard for participates down-
           ward to  13 ng/J (0.03 lb/10  Btu) reduces national aggre-
           gate emissions by  a maximum  II percent in 1990  and
           22 percent in 2000.

3.3 SOUD WASTES

Since this  analysis assumes that lime and  limestone FGD systems will be the
predominate  technology  used  to meet  the revised SO2 emissions standards,
quantifying the solid  wastes  generated  by  them is an important part of the
impact  assessment.*  The  principal  chemical constituents of FGD sludge are
calcium  sulfite  (CaSO.0,  calcium  sulfate  (CaSOj,   and  calcium  carbonate
(limestone, CaCO.0.  Sludge solids  also contain various trace  elements with
concentrations  ranging up to 100 mg/l. Some of these, such as soluble species of
mercury, are considered toxic.  (Arsenic, lead, and selenium are also of concern.)
The  potential environmental problems associated with sludge disposal, and the
available techniques that may be used to solve these problems, are discussed in
another report commissioned by EPA.

Tons of sludge generated by FGD systems under the high growth scenarios are
shown  in Table 3-6.  Note that the figures are expressed on a dry basis.  The
actual  mass of sludge that has to be disposed is double the tonnage shown since
the settled waste product is approximately 40-50 percent water.  (Also, collected
fly ash is not included in these figures.)
     Our assumptions  about the distribution of different types of FGD systems
     are given at the beginning of Chapter 3.
                                    3-22

-------
                                   Table  3-6
                    Projections of Sludge  Produced by FGD Systems
                        (Million metric tons, dry basis)
                  Year  = 1990
                                                   Year =  1995
Region0
NE
MA
SA
ENC
ESC
WNC
WSC
NM
SM
PA
Nation
HI. 2(0)0.1
negligible
0.52
1.8
2.0
0.14
0.
0.89
0.18
0.82
0.18
8.1
HI. 2(80)0.03
negligible
3.6
7.9
5.0
0.43
0.48
3.6
0.67
1.2
0.64
24.
HI. 2(90)0.03
negligible
4.5
9.0
5.7
0.50
0.59
4.1
0.77
1.4
0.88
27.
H 1.2(0)0.1
negligible
0.38
1.5
4.7
0.044
0.
0.90
0.18
0.76
3.7
12.
HI. 2(80)0.03
negligible
8.3
13.
II.
1.3
1.8
6.8
I.I
1.5
I.I
46.
HI. 2(90)0.03
negligible
10.
15.
13.
2.0
2.2
7.8
1.3
1.8
1.4
55.
a
b
See Table 2-1.
See discussion at beginning of this chapter:  wastes produced by regenerable
systems are neglected.
                                       3-23

-------
Estimates of the land requirements for sludge ponding are shown in Table 3-7,
assuming  that the  settled sludge  is allowed  to accumulate to  a depth  of
9.1 meters (30 feet), and that it is 47 percent water with a density of 1.4 g/cc.'
The areas shown are cumulative for the period 1990 to 2000.

The  solid  waste besides  scrubber sludge  which  is  produced  in quantity at a
generating plant is coal ash. Approximately 80 percent of the ash is carried with
the flue gas (fly ash), the remaining being bottom  ash. All but a few percent  of
the fly ash must be captured to satisfy even the SIP emission  limits (limits for
particulates averaging about 86 ng/J, or 0.2 Ib/IO   Btu), and therefore essentially
all of the coal ash appears as solid waste. Since the particulate limits considered
here are in terms of emission rates (grams per Joule or  pounds per  million  Btu)
rather than percent removals,  ash production depends mainly  on the growth  in
coal consumption.  Thus variations among the different SC^ control options are
not significant.  Values for 1990, 1995, and 2000 are shown in Table 3-8.  By
dividing these figures  by the  total coal  tonnages  consumed in  these years
(cf. Figure 2-1) we infer an average coal ash content of about eight percent  by
weight.

Assuming an ash storage requirement of 1.54 cubic meters per  metric ton of ash
and a storage depth of nine meters,   cumulative ash production over the years
1990-2000 under the high growth assumption would require 176 square kilometers
        o
(68.0 mi ) of  storage area.    This  compares with  the  91.5 square kilometers
        o
(35.3 mi ) for sludge disposal shown in Table 3-7.
3.4  WATER REQUIREMENTS

Table 3-9 gives the regional breakdown of water consumed by FGD systems under
the  moderate and high growth scenarios, assuming full scrubbing of all post 1982
coal-fired  units  (90 percent SO2  removal requirement), and then 89 percent
scrubbing  (80 percent   removal  requirement:  cf.  discussion  in  Chapter 2,
Section 2.2).
                                    3-24

-------
                               Table 3-7
       Cumulative Land Area Needed for Sludge Disposal, 1990-2000°
                          (square kilometers)

Scenario
Ml. 2(0)0.1
Ml. 2(80)0.03
Ml. 2(90)0.03
HI. 2(0)0.1
HI. 2(80)0.03
HI. 2(90)0.03
Land
15.0
39.2
43.8
15.1
80.7
91.5
Area
(5.8 mi2)
(15 mi2)
(17 mi2)
(5.8 mi2)
(31 mi2)
(35 mi2)
At a depth of nine meters (30 feet).
                              Table 3-8
                      Total Coal Ash Production

Growth Rate
moderate
high
(Millions of
1990
61.9
73.5
metric tons)
1995
68.1
101

2000
74.9
135
                                  3-25

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                            Table 3-9
                   Water Consumed by FGD Systems
(Millions cubic meters per year)*
Scenario Ml. 2(0)0.1
Region
NE
MA
SA
EMC
ESC
WNC
WSC
NM
SM
PA
Nation
Scenario Ml. 2(90)0.03
Region
NE
MA
SA
EMC
ESC
WNC
WSC
NM
SM
PA
Nation

1990
3.99
26.5
16.8
15.3
7.07
negligible
14.1
6.26
24.7
negligible
115

1990
4.73
25.3
47.0
20.1
5.54
7.13
72.1
13.8
40.7
9.65
241

1995
4.74
28.5
13.9
15.7
6.90
negligible
14.1
6.80
23.3
negligible
114

1995
5.48
33.2
64.7
19.3
6.86
13.2
111
19.6
37.1
12.1
322

2000
5.73
31.6
13.0
15.9
5.76
negligible
14.2
6.61
21.2
negligible
114

2000
6.63
44.7
80.5
16.8
7.52
23.6
133
24.1
38.5
11.7
387
One acre-foot = 1,234 cubic meters
                               3-26

-------
                            Table 3-9  (continued)
                       Water Consumed by FGD Systems

Scenario HI. 2(0)0. 1
Region
NE
MA
SA
ENC
ESC
WNC
WSC
NM
SM
PA
Nation
(Millions

1990
4.65
11.5
18.0
17.0
1.13
negligible
13.9
6.65
24.6
negligible
94.5
cubic meters per year)*

1995
8.04
8.13
14.2
36.0
0.348
negligible
14.2
6.71
22.6
negligible
110


2000
14.7
5.07
15.3
59.8
0.106
negligible
14.2
6.78
20.7
negligible
137
Scenario H1.2(90)0-03
Region
NE
MA
SA
ENC
ESC
WNC
WSC
NM
SM
PA
Nation
1990
5.43
39.7
63.9
37.5
73.91
13.5
92.7
19.9
37.8
22.2
337
1995
9.40
75.0
103
82.2
13.2
35.0
174
31.8
46.4
36.6
607
2000
18.5
105
143
134
30.2
65.4
258
42.3
.57.5
71.9
927
   One acre foot =  1,234 cubic meters.
                                 3-27

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                                Table 3-9
                   Water Consumed by FGD Systems
(Millions cubic meters per year)
Scenario HI. 2(80)0.03
Region
ME
MA
SA
ENC
ESC
WNC
WSC
NM
WS
PA
Nation

1990
4.92
32.9
58.4
33.7
3.54
12.1
83.9
17.5
34.3
17.8
299

1995
8.53
64.7
92.8
72.9
9.37
30.1
158
27.8
39.9
32.0
534

2000
16.4
91.8
127
121
25.3
57.0
232
37.1
51.0
63.6
823
One acre foot = 1,234 cubic meters.
                                 3-28

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Whether or  not  the water demands  shown  in  the table would  constitute  a
significant impact on an area's water  supplies of course depends on the region
and locale within the region.  Parts of the South and North Mountain areas and
southern and central inland California are critical areas.  However, it helps to
put the FGD consumption quantities in perspective by comparing them with the
other major consumptive use of water by power plants:  condenser cooling.  The
rate  of  evaporation   by  generating  plant  cooling  systems  under  scenario
Ml.2(90)0.03 is projected to be 6.84 million acre-feet per year by 2000 - twenty-
two times the consumptive rate projected for scrubbers.

A final water use which  the simulation model quantifies is the amount of highly
polluted "black water" discharged by coal preparation plants which clean coal for
sulfur removal.  Based on the coal sulfur levels which were supplied to Teknekron
for this study,  judgments  were  made as  to  which coals should be considered
cleaned - tonnages  of cleaned coal consumed varied from 29 percent of the total
in the early years of the simulations to 11 percent in the later  years with the
revised NSPS in effect.  Generally, a  mandatory SO 2 removal of 80 percent or
more  discourages the use of cleaned coals: this  effect  is evident in the water
data  shown  in Table 3-10.  These  data should  not be considered definitive,
however, because of the judgmental factors involved in labeling a coal cleaned or
uncleaned.  (For example, ICF, Inc., the EPA contractor who  supplied the coal
data  for  this study considers  only  about one percent  of the coals  to be "deep
cleaned" for sulfur removal with the revised standards in effect. )

           Table 3-10  Water Discharged by Coal Cleaning Plants in 1995*
                              (Millions cubic meters per year)

Goal Supply Region0                Scenario HI.2(0)0.1             Scenario HI.2(90)0.1

Appalachia                                 151                           90.0

Midwest                                   70.5                         67.4

Nation                                   221                          157

   a The coal supply  regions are defined in more detail in Section 3.4.
* See cautionary note in text. One acre foot = 1,234 cubic meters.
                                    3-29

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    ENERGY REQUIREMENTS

The  energy requirements of  FGD systems hove  two  components:   (I) the
electrical power consumed in operating  the system (between  three and four
percent for a 500 Mw unit with full scrubbing of a high sulfur coal);  (2) fuel
consumed in reheating the flue gas after scrubbing (done in cases where the gas
is scrubbed to insure adequate plume dispersion and to prevent condensation and
corrosion).''  An indirect  "penalty" also is incurred because of the reduction in
net generating capability  — approximately five percent  for full scrubbing.  This
effect has been discussed in Chapter 2: data presented in this chapter address
only the "direct" energy requirements.

Assumptions  about scrubber  energy demands  are those developed  by Pedco
Environmental, Inc.   Steam is used for reheat on all units subject to current and
revised new source standards.  Units subject to SIP limits are assumed to require
retrofit of the scrubber, and oil is used for  reheat in these cases. (Oil is also
used in operating the new mag-ox systems.  The  amount of energy consumed in
both ways is small compared to the energy used for reheat on the newer units.)

Table 3-11 gives the energy consumed by FGD systems in 1995 for the 80 percent
and  90 percent  removal  standard  and  the baseline  cases,  as well as  the
percentage of  total coal energy consumed.

A second energy impact which could be significant if a revised standard resulted
in large shifts in coal supplies is the change in the energy consumed by railroads
and barges in transporting the coal.*  A shift away from the use of western coal
in the Midwest in favor of more local supplies, for example, would be expected to
reduce coal transport energy.
     A small amount of coal is also transported over short distances by trucks
     this mode is ignored in our calculations.
                                  3-30

-------
                                   Table 3-11
                         Energy Consumed by FGD Systems in 1995
                     Energy             Capacity            Fraction of Coal
Scenario       Consumption for FGD     Used for FGD       Energy for Generation
                (I(T Megajoules)           (GW)
Ml.2(0)0.1           187                  3..6S                   0.95%
Ml.2(80)0.03         534                  10.5                   2.7%
Ml.2(90)0.03         588                  11.6                   3.0%
HI.2(0)0.I           214                  4.21                   0.71%
HI.2(80)0.03         944                  18.6                   3.1%
HI.2(90)0.03         1150                 22.6                   3.8%
                                     3-31

-------
The  Utility Simulation Model estimates energy consumed In  coal transport by
assuming  supply  "nodes" (cities)  in  coal-supply regions and  centrally located
nodes (cities) in each  consuming state.  Rail and barge transport distances are
then associated with each possible supply-demand nodal pair, using rail and barge
routing maps. The coal supply regions used by Teknekron and the nodal cities are
shown  in Tables 3-12 and 3-13.

Calculations of fuel-energy consumed by rail and barge were made assuming the
following modal energy  intensities: rail = 366 Btu per ton-mile; barge = 296 Btu
per  ton-mile.     Results for  the 90 percent  control scenarios are shown in
Table 3-14.

These  results show a significant reduction  in fuel  consumed with imposition of
the  more stringent controls, due primarily to a shifting of demand  away from
western coals delivered to  states bordering and east of the Mississippi River.
Note in particular that  the energy savings in 1995,  50 I09 MJ   (4.7 10l3 Btu)
and  120 I09 MJ  (I.I   10'* Btu), serve to offset about 10 percent of the direct
FGD energy requirements projected for that year (588 I09 MJ and 1150  I09 MJ)
for moderate and high  growth respectively.

-------
CO
Co
10
                                                 Table 5-12

                                          Teknekron Cool Supply Regions

Region
Northern Appalachia
Central Appalachia
Southern Appalachia
Interior East
Interior West
Northwest
Central West
Southwest
Texas
Coal Type
bituminous
bituminous
bituminous
bituminous
bituminous
subbituminous
lignite
bituminous
subbituminous
subbituminous
lignite
Symbol
NA/B
CA/B
SA/B
IE/B
IW/B
NW/SB
NW/L
CB/B
CB/SB
SW/SB
TX/L
States Encompassed
OH.PA
WV,VA,KY(east)
TN.AL
IL.IN.KY (west)
IA,KS,MO,OK
MT.ND
MT,ND
UT, CO
WY
AZ.NM
TX
Nodal City
Pittsburgh, PA
Charleston, WV
Chattanooga, TN
Mattown, IL
Kansas City, MO
Billings, MT
Williston, ND
Grand Junction, CO
Casper, WY
Gallup, NM
Palestine, TX

-------
   Table 3-13



Coal Demand Nodes

Consuming State
AL
AR
AZ
CA
CO
CT
DL
FL
GA
IA
ID
IL
IN
KS
K.Y
LA
MA
MD/DC
ME
Ml
MN
MO
MS
MT

Enerqy Consumed in
Nodal City
Birmingham
Little Rock
Phoenix
Sacramento
Denver
Hartford
Dover
Orlando
Atlanta
Des Moines
Boise
Springfield
Indianapolis
Topeka
Frankfort
Baton Rouge
Boston
D.C.
Augusta
Lansing
Minneapolis
Jefferson City
Jackson
Billings
Table 3- 14
Transporting Coal to
Consuming State
NC
ND
NE
NM
NH
NJ
NV
NY
OH
OK
OR
PA
Rl
SC
SD
TN
TX
UT
VA
VT
WA
Wl
WV
WY

Electric Generating
Nodal City
Raleigh
Bismark
Lincoln
Concord
Trenton
Albuquerque
Carson City
New York
Columbus
Oklahoma City
Salem
Harrisburg
Providence
Columbus
Pierre
Nashville
Austin
Salt Lake City
Richmond
Montpelier
Olympic
Madison
Charleston
Casper

Plants
Q
(10 Megajoules)

Scenario
Year Ml. 2(0)0.1
1976 100
1990 250
1995 300
2000 350
Scenario
ML2(90X>.I
100
230
250
260
Scenario
HI. 2(0)0.1
100
370
560
780
Scenario
HI. 2(90)0.1
100
320
440
580
        3-34

-------
                              REFERENCES
I.    Teknekron,   Inc.,   Berkeley,   California,  An  Integrated   Technology
     Assessment of Electric Utility Energy Systems, Vol. I, The Assessment, and
     Vol.  II,  Components of the Impact Assessment Model.   Draft First Year
     Report.  Prepared for the Office of Energy, Minerals and Industry, Office
     of Research  and  Development,  U.S.  Environmental Protection  Agency.
     January  1977.   (See also:  "Electric  Utility  Energy Systems  Integrated
     Technology Assessment," Dr.  Lowell  Smith,  in Energy/Environment II,
     Proceedings of the Second National Conference on  the  Interagency R&D
     Program,  U.S.  Environmental  Protection  Agency, Office of  Energy,
     Minerals and  Industry.  November 1977.)

2.    Communication from the President of  the United States, National Energy
     Act, House of Representatives, 95th Congress, Document No. 95-138, April
     29, 1977.

3.    U.S.  Department  of  Commerce,  Bureau  of  Census, February   1975.
     Projections of the Population of the United States by Age and Sex, 1975 to
     2000, with Extension of Total  Population to 2025.   Advance Report,
     Series P-25, No. 541.  Washington, D.C.

4.    Edison Electric  Institute.  Statistical  Year Book  of the Electric Utility
     Industry for 1976.  October 1977.

5.    ICF,  Incorporated,  Effects of  Alternative  New  Source Performance
     Standards for Coal-Fired Electric Utility Boilers on  the Coal Markets and
     on Utility  Capacity Expansion Plans, Draft Executive Summary, November
     23, 1977. (Full report to be submitted in January 1978.)

6.    Pedco Environmental, Inc.  Particulate and Sulfur Dioxide Emission Control
     Costs for Large Coal-Fired Boilers. Preliminary draft report submitted to
     the  U.S.  Environmental  Protection  Agency,  Emission  Standards, and
     Engineering Division, November 1977.

7.    Staff Report by the Bureau of Power, Federal Power Commission. Annual
     Summary of Cost and  Quality  of Electric  Utility Plant Fuels,  1976,
     May 1977.

8.    U.S.  Department  of the  Interior, Bureau of  Mines,  Washington, D.C.
     Mineral  Industry  Surveys, Coal  -   Bituminous  and  Lignite  in  1975,
     February 1977.

9.    Radian Corporation, The Effect of Flue Gas Desulfurization Availability on
     Electric Utilities, Draft Report, submitted to Environmental  Protection
     Agency,  Industrial Environmental Research Laboratory, December 1977.
                                  4-1

-------
10.'   Aerospace Corporation, Civil Operations Division, the Solid Waste Impact
      of  Controlling  SO-  Emissions   from  Coal-Fired Steam Generators,
      Volume II:  Technical Discussion,  Report submitted to U.S. Environmental
      Protection   Agency,   Industrial   Environmental   Research  Laboratory,
      Research Triangle Park, North Carolina, October 1977.

11.    Radian Corporation.  An Assessment of Energy Penalties for Controlling
      S02 Emissions  from Coal-Fired Electric Generating Plants, Preliminary
      Draft  Report,  submitted  to  U.S.   Environmental Protection  Agency,
      Emission Standards  and Engineering Division, Industrial  Research Labora-
      tory, Research Triangle Park, North Carolina, August 1977.

12.    Private communication from Dr. Andrew Loebl, Transportation Energy
      Conservation Program,  Oak  Ridge  National Laboratory,  Oak Ridge,
      Tennessee, September  18,  1977.  The barge figure is for  inland waterways,
      average for upstream and downstream  traffic.
                                   4-2

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        APPENDIX

DESCRIPTION OF TEKNEKRONS
     ELECTRIC UTILITY
    SIMULATION MODEL
          AND
  ASSOCIATED DATA BASES

-------
                          APPENDIX
      TEKNEKROWS ELECTRIC UTILITY SIMULATION1MODEL
                 AND ASSOCIATED DATA BASES
                                                             PAGE
I.    MODEL DESCRIPTION	,     A-l
         Components of Teknekron's Electric Utility
         Simulation Model 	     A-6

     A.  Demand Module	     A-7
     B.  System Planning Module 	     A-9
            Coal Assignment Model	    A-13
            Coal Transportation Cost Model 	*	    A-14
            SO2 Control Technology and Cost Model 	    A-14
            Particulate Control Technology and Cost Model	    A-15
     C.  Dispatch Module .;	    A-17
     D.  Financial Module	,	    A-19
     E.  Residuals Module	    A-21
     F.  Regional Air Quality Analysis  	    A-23

                                                           «
2.    DATA BASE DESCRIPTION	    A-25

     A.  Demand Module	    A-26
     B.  Planning-Dispatch Module	    A-27
     C,  Financial Module	    A-34
     D.  Residuals Module	    A-37
     E.  Air Quality Models and Data Bases	    A-38
                              A-i

-------
                          I.  MODEL DESCRIPTION

For the Environmental  Protection Agency's review of New Source Performance
Standards Teknekron has applied its Electric Utility Simulation Model.   This
section describes the components of that model and their integration into the
overall model  framework.    Teknekron's  Electric  Utility  Simulation  Model
examines the  implications of  investment and operating decisions  made by
electric  utility firms  as  these decisions  may be influenced by  energy and
environmental  policies,  technology  choices,  and economic conditions.  These
implications include forecasts by county for:

      •    Capacity expansion
      •    Electricity generation
      •    Fuel consumption
      •    Pollutant generation

and  forecasts by state  for various measures of economic and financial  costs
arising from each set of decisions.

This highly flexible model — developed and reviewed by experts in electric utility
technology, operations,  and  regulation — makes it possible  to investigate the
impacts of numerous  alternative policies while  coherently and consistently
accounting for the many technical, economic, energy, and environmental factors
that directly influence decisions made by utility companies.

Teknekron's Electric Utility Simulation Model consists of a number of intercon-
necting computer modules and  data bases that simulate decisions for system
planning and operation, utility finance, and the operation of individual technical
processes.  The model  is  driven by a set of  exogenous scenario  elements that
include electricity  demand levels, financial market conditions, fuel prices and
availabilities,  advanced  technology deployment, and environmental regulations.
For  each scenario,  the  model calculates the following by geographical region
(county or state) for future years up to 2010:
                                    A-1

-------
     •     Factor demands, including
           —    fuel use, by type and by region of origin
           —    electricity generated
           —    capital requirements, by source (e.g., debt, common
                equity, preferred equity)
           —    plant and equipment requirements
           —    releases  of air and water pollutants and generation
                of solid wastes
     •     Financial statistics for utility firms
     •     Average electricity prices

In order to produce these calculations at the required level of detail, the model
considers generating unit sites located in each county where electricity is pro-
duced, fuel and water are consumed, and pollutants are released. Since utilities
operate  as integrated systems, the model presently simulates joint operation
(i.e., dispatching) of all generating units within a state. Finally, the responses of
utility firms to the external environment in which they function may be changed
by  the  model  user by modifying present data bases or specifying alternate
choices for future system  planning and system operation.  For  example,  the
particular scenarios evaluated in the New Source Performance Standards Review
encompass a range of futures for electricity  demand, fuel selection, choices of
technology, and pollution control regulations as specified by the U.S. Environ-
                                               *F*
mental Protection Agency.

Figure I  is a simplified diagram of Teknekron's Electric Utility Simulation Model.
The model includes the following major components:

     •     Demand projection, including
           -   retail and wholesale sales and purchases
           —   energy generation, i.e., average load growth
           —   peak load growth

                                    A-2

-------
                           Figure I


             TEKNEKRON'S ELECTRIC UTILITY SIMULATION MODEL
>
              DEMAND
                 . %.Mv»

                 T
              PLANNING
\  DISPATCH
   " * ":>.  "•-.  -. ^ ••

;-  RESIDUALS
                         V  *• N A
                                 1JI,

                                J
                                MM^fcWj fcM *»!***«
FINANCIAL
              REGIONAL AIR
              QUALITY ANALYSIS

-------
System planning, including

—   choice of generating unit type

—   choice of fuel type, quality, and region of origin

—   choice of pollution control technology

—   expansion of transmission and distribution networks

—   siting of generating units


Dispatch, including

—   calculation of unit  capacity factors for each typical
     day of operation, by class of unit

—   calculation of total fuel, operation, and maintenance
     expenses for electricity generation

—   projection of fuel consumption, by type and region of
     origin

—   pollution control costs  and  operating characteristics
     for the various types of pollution control devices


Financial,  including

—   integration of  projected production expenses  with
     construction expenditures

—   projection of the firm's balance sheet, income state-
     ment, sources and  uses of funds,  and other financial
     statistics

—   calculation of revenue requirements and electricity
     prices
Residuals, including

—   projection of release rates at the generating unit site
    for numerous air and water pollutants and  for  solid
    wastes

—   projection of consumption of water and  other re-
    sources
                         A-4

-------
          Regional Air Quality Analysis, including

          —   forecasts of  counties  having  high  emissions from
               utility and industrial boilers

          —   analysis  of  historical meteorological  data to yield
               preferred paths for downwind transport of emissions
               from source locations

          —   analysis  of emissions, air quality, and meteorological
               data to develop source-receptor relationships for S0~
               emissions and sulfate concentrations
          —   application of air quality models  to determine ambi-
               ent concentrations of  S09,  NO  , particulates,  and
               sulfates             -      L     *
The following sections briefly describe the major components of the model and

their  associated data  bases.  Use of  the  model requires  that a set of scenario

elements be defined. These characterize the issues the user may wish to address,

such as choice of fuel, pollution controls, siting, or the economic viability  of

alternative generation technologies.
                                    A-5

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COMPONENTS OF TEKNEKRON-S ELECTRIC UTILITY SIMULATION MODEL
This section provides a summary description of each component of Teknekron's
Electric Utility Simulation Model. The current version of the model operates on
a geographical region equivalent to a state by treating all investor-owned firms
and all  non-investor-owned firms as two  individual firms  that own the assets
owned by the actual companies in that state.  System planning, dispatching, and
financial simulations are carried out  on a state basis separately for the two
classes of firms.  Simulations of residuals  generation and resource consumption
are carried  out  for generating units located at the county  level.   Thus, it is
possible to forecast fuel consumption and pollutant release rates by  county and
economic impacts by state.  Impacts are then aggregated to state, regional, and
national levels.
                                  A-6

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A.   DEMAND MODULE


The Demand module,  depicted in Figure 2, projects the future electricity
demands that must be met by utility firms.  The module now uses 1975 base-year
information,  net  generation,  purchases,  net  interchanges,  and  retail  and
wholesale sales  for each utility company. These data are aggregated to obtain
state-by-state demands for both investor-owned and non-investor-owned utilities.
Alternative  growth  rates  may  be  specified  to  develop  different  demand
projections  for analysis.  The module uses  base-year data for load  factors and
monthly generation characteristics to construct seasonal load curves that can be
varied in future years.  A variety of data  sources are used to determine each
projection.   These sources include Regional  Electric Reliability Council  fore-
casts, FPC Electric Power Statistics, and OBERS population projections.
                                    A-7

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                                       Figure 2

                                   DEMAND MODULE
>
00
NET GENERATION
PURCHASES
INTERCHANGES
SALES BY UTILITY

SEASONAL
LOAD CURVES



	 >.

1
1

FUTURE
ELECTRICITY
DEMANDS
I^MM


" 1
1
1
1
, J
ALTERNATIVES
                   • GROWTH RATES IN PEAK AND AVERAGE DEMAND
                   • LOAD FACTORS
                   • MONTHLY GENERATION
                     CHARACTERISTICS

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B.   SYSTEM  PLANNING  MODULE

The System Planning module, depicted in Figure 3, projects the composition of
the state system; estimates construction requirements for generation, transmis-
sion, and distribution facilities; simulates fuel choice; and determines pollution-
control needs in response to environmental regulation and the costs for alternate
compliance strategies.   Steam-generating facilities (both nuclear and fossil) are
treated on a unit-by-unit basis.  Nonsteam facilities are treated on an aggregated
basis.   Each utility system must  be able to meet  its  peak  demands  with  an
adequate reserve margin, and the availabilities for its classes of generating units
must allow the seasonal  loads to be met.

In simulating the composition of the state systems, the System Planning module
uses announced plans of the individual utilities, aggregated to form the state-
firms, on a unit-by-unit  basis through 1985, the last year  for which reliable data
are available.  For  subsequent years it uses the utilities' projections of the
composition of new additions, or it may vary additions by scenario.  Announced
units are treated as subject to modification in line with  scenario specifications
(higher or lower demand levels, higher or lower additions  of nuclear capacity, of
oil-fueled capacity, etc.).  Units' fuel conversion, retirements, and reratings are
also included.  Future units beyond 1986 are sited according to county-specific
siting  weights  developed  by  Teknekron for each  county in  the contiguous
48 states.

Since  there is uncertainty  about the relative  growth rates of  peak and average
demand and about the impact of load management policies on hourly and  seasonal
loads,  the System Planning module is able to change the  shape of load curves by
specifying separate growth  rates for both peak and average demand.

Environmental regulations  for  air  and water pollution represent both  existing
regulations and proposed levels of  control — for example, thermal and chemical
controls  for  discharges to water,  State Implementation  Plans,  New Source
Performance Standards  (NSPS), and Best Available Control Technology (BACT)

                                    A-9

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                            Figure 3
                     SYSTEM PLANNING MODULE
TECHNOLOGICAL  ELEMENTS:
FUEL TYPE AND SUPPLY SOURCES
POLLUTION CONTROL DEVICES
                                            TRANSMISSION &
                                            DISTRIBUTION
sss-ass^^ss::^^
WATER IN
                    SCENARIO    ENERGY POLICY
                    ELEMENTS:   ENVIRONMENTAL POLICY
                                ECONOMIC CONDITIONS


              PLANNING FOR COST-EFFECTIVE OPERATION
           FUEL CHOICES AND SUPPLY SOURCE
           GENERATING TECHNOLOGIES
           REGULATIONS
           PLANT CHARACTERISTICS
COSTS
                             A-10

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air-emission  limits.   In  accordance  with scenario specifications,  compliance
schedules can be adjusted and various  optional new levels of control may or may

not  be  imposed.   Fuels  are  selected  from  the available alternatives  by

considering a trade-off between premium-priced clean fuels, the costs of pre-

combustion cleaning, and the costs of the different types of pollution controls
necessary to utilize cheaper fuels and still comply with regulations.  Pollution

control costs are determined in detail on a unit-by-unit basis and  include capital

outlays, increased operating  costs,  and  losses of capacity  that  make new

construction  necessary  in  order to  maintain system performance.  Detailed
engineering process models and data bases are utilized. All costs are calculated

as functions  of  fuel composition, plant characteristics, and the required level of
pollution control.


To make these projections, the System Planning module requires a number of
data bases. Some of these are:
      •    Existing Steam Units.  Description   of   steam  units  in
           operation in the base year including ownership, county of
           location, capacity, age, fuel type, etc.


      •    Announced Units.  Steam and nonsteam units announced
           as  under  construction,  with  their projected  dates  for
           coming on line. Also  includes announced retirements and
           reratings.

      •    Conversion Plans.  A number, of alternative files  of unit-
           by-unit conversion plans in  response to possible modes of
           natural gas curtailment and conversion from oil.


      •    System Data.  Extracts from FPC Form I  and Form 1M
           and other sources for  utility systems, merged to describe
           the aggregated state-firms.  Included are data on  existing
           non steam generating  capacity; data on  the operation and
           maintenance  costs  experienced  for  various classes of
           equipment;  data  on  expenditures  for  transmission  and
           distribution  systems,  matching  energy  and  capacity
           growth; and data on  general and administrative costs.
                                   A-ll

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      •     Construction Costs. Costs  for various types of capacity
           and schedules of expenditures.


      •     Fuels Data Base. Prices, sources, and physical and chemi-
           cal  properties of fuels used for electricity production in
           each state.


      •     Thermal Controls Data Base. For existing units and those
           under construction, estimates  are given  of  the likelihood
           of exemption from forced conversion to closed-cycle cool-
           ing  under  thermal  pollution-control  regulations.   For
           future units, estimates  are also  provided  of the likely
           choices among cooling alternatives.


      •     Unit Parameters, Technical parameters to  be  used  for
           steam units  when data on a unit's specific technical char-
           acteristics are not available. These parameters are based
           on  the most common characteristics for  age  and  fuel
           class.


      •     Future Capacity Mix. Fractions representing the ratios of
           new coal, oil, nuclear, and combustion turbine capacity,
           etc., after 1985 in each state.


      •     Siting Weights. Weights  for each county  reflecting the
           relative likelihood of siting coal, mine-mouth cool, oil,
           gas, or nuclear steam units  in the future in each county.


      •     Emission Regulations.  Regulations and their year of ap-
           plication for  air  pollutants (primarily  SO-,  NO , and
           particulates), including State Implementation Plan?,  New
           Source Performance Standards,  and proposed Best Avail-
           able Control Technology standards.
A  number of sophisticated codes  and computer subroutines contribute to the

System Planning module.  As examples, we describe briefly the Coal Assignment

Model  and three  of  its  subroutines: the coal transportation cost model, the

particulate control cost  model,  and the SO- control cost model.   These are

related primarily to the selection of coal supply and appropriate pollution control
devices.
                                  A-12

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COAL ASSIGNMENT  MODEL   (ASSIGN)

ASSIGN  is an interactive program that finds the least-cost coal delivered
to utility or industrial boilers in every state, subject to  applicable sulfur
dioxide  and particulate  emission limitations.   The  basic  data are the
properties and mine-mouth prices of coals from 11 major producing regions
of the country; the costs and efficiency of physical coal cleaning; premiums
associated with very  low sulfur eastern coals; transportation  routes, and
cost  algorithms for  transportation of  coal  by  barge,  rail,  and slurry
pipeline.  A  "default" data  base may  be  modified to  incorporate user
judgment or to examine the sensitivity of assumptions about such key data
as coal prices, transport costs,  pollution control costs, and coal character-
istics.

The product is  a list of coals,  by state or point of  end-use, that can be
burned at least cost, including the cost of any emission controls required to
comply with federal and state  emission  limitations.  For example, results
for power plants located near  Harrisburgh, Pennsylvania,  might show for
one set  of conditions that  (a) the older generating units  would burn local
(Northern  Appalachian) uncleaned coal costing 90 cents per  million Btu
delivered to  the plant, (b) the newer units subject  to New Source Per-
formance Standards would burn  Appalachian cleaned coal costing 140 cents
per  million Btu, and  (c) the future units subject to BACT requirements
would also use the  local coals  with  flue  gas scrubbing.   Each  coal  is
                                         v
characterized by region of origin, delivered cost (in cents per million Btu
and dollars per ton), and effective cost, which is the actual cost of burning
the coal, including  the annualized costs of pollution controls.  Penalties
associated with derating boilers designed for higher-rank coals  are also
included  in the  effective  cost.  In addition,  the  output  indicates the
emission limit that each category of boiler has to meet, the boiler's actual
emissions, and,  where scrubbing is the chosen option, the  fraction of flue
gas scrubbed iri order to meet the limit. Other results of ASSIGN show how
each selected coal would  move from the  mine or  source  region  to the
                              A-13

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consumer.   These results  for a  specific set  of assumptions,  i.e., for a
scenario, may be fed into the System Planning module for evaluation in our
dynamic simulation model.

COAL TRANSPORTATION COST MODEL

Teknekron's coal transportation cost model is structured to calculate coal
transport costs from the 11 major U.S. coal-producing regions to each of
the 48 contiguous states. The model can easily be modified to calculate
coal transport costs from specific coal mines to specific boiler locations if
that level of accuracy is required.

Witnin the model, coal can be transported by  railroad, river bprge, Great
Lakes steamer, slurry pipelines, or any combination of the four modes of
transport.  Four railroad, ten water, and three pipeline tariffs are used in
calculating transportation costs depending, for instance, on the river used
for  transport and  whether or  not coal* is  being carried upstream  or
downstream.

The coal transportation  cost model is used in conjunction with our SO-
Control Cost Model and our Particulate Control  Cost  Model to determine
the  most economic source of coal assuming compliance with emission
control regulations.

SO2 CONTROL TECHNOLOGY AND COST MODEL

Teknekron's SO-  Control Cost Model  is structured to calculate  capital
costs, fixed operating costs,  variable operating  costs, and capacity pen-
alties for limestone, lime, and magnesium oxide flue gas desulfurization
(FGD) systems installed on new boilers or retrofitted onto  existing boilers.
The FGD systems are modular, with module sizes of between 100 and 150
MW each, except for systems of less than 100 MW. The model is able to
calculate costs  for FGD systems from 25 MW to over 1,000 MW in size. All
systems of  100 MW or more include a spare module for  added reliability.

                            A-14

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Inputs required by the model include unit size and heat ratej coal properties
(C, H, 0, N, S, H20, ash, heating value); SCL emission limit (Ib/MBtu or
percentage  removal); and year the  FGD system  is to be  built.  Model
outputs include capacity penalties and costs escalated (in  constant  1975
dollars) to the year the FGD system is to be built.

In calculating  FGD system costs and penalties, the model considers both
the gas flow rate and the quantity of SCL  to be  removed.  This level of
sophistication  makes it  possible, for instance, to compare FGD costs for
the same coal at various emission limits, or to compare FGD costs for
various coals with the same sulfur content but different heating values.

PARTICULATE CONTROL  TECHNOLOGY AND  COST MODEL

Teknekron's Particulate  Cost Model is structured to calculate capital costs,
fixed operating costs, variable operating costs, and capacity penalties for
hot-side electrostatic precipitators, cold-side electrostatic precipitators,
and  fabric  filters installed on new boilers or retrofitted onto  existing
boilers.   The  model calculates the costs for each of three  particulate
control devices and selects the device having the lowest annual cost.  The
model is able to calculate costs for particulate control devices of between
25 MW and 1,000 MW in size.

Inputs required by the model include  plant size; capacity factor; heat rate;
coal  properties (C,  H,  O,  N,  S, HLO, ash, heating value);  particulate
emission limit; economic factors (capital recovery factor, electricity cost);
and year the device is to be built. Model outputs include capacity  penalties
and costs escalated (in constant  1975 dollars) to the year the device is to be
built.

In calculating electrostatic precipitator costs, the model considers the coal
sulfur content, ash resistivity, and gas flow rate through the precipitator.
Fabric filter costs are based primarily on gas flow rate alone. This level of
sophistication, along with the ability to compare total annual costs and

                             A-15

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select  the most  economical device, makes it possible, for instance, to
select  the  most  economic  pTticulate  control  device  for  coals with
differing sulfur contents.
                             A-16

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C.   DISPATCH MODULE

The function of  the Dispatch  module, depicted  in  Figure 4, is  to allocate
electricity production among  the  various generating facilities  available.   The
allocation is performed on the basis of least cost, considering  hourly loads for
typical days, limitations on unit availability, and total energy output for  the
various types of facilities.  In  order to project hourly loads for future years, it is
necessary to  modify current  load  shapes to conform to projected load factors,
and our dispatching algorithm allows this flexibility. For example,  suppose the
user wants to simulate the supply of electricity  under  a load management
scenario  in which peak demand grows more slowly than average  demand. In this
case,  the  daily  load  curve  would  become progressively  flatter, and  the
dispatching  algorithm  would allocate an  increasing  portion  of  the  energy
production  to  the more  efficient baseload  units.     For  the  New Source
Performance Standards  Review both peak and average demand were assumed to
grow at the same growth rate.

As a  result  of  the allocation of electricity production, capacity  factors  are
calculated for each class of unit.  Using unit heat  rates,  the Dispatch  Module
calculates fuel consumption,  operation and maintenance costs, and production
expenses and forwards these to the Financial Module.  Although it is possible to
treat the unit heat rate as a function of capacity factor, data requirements make
 it desirable to assign a single heat rate to each unit, varying the heat rate only
with the age of the facility  and  the  presence or absence of pollution control
devices.

Two data bases are utilized by DISPATCH:
      •     Typical daily load curves for both week days and weekend
            days in  each of two seasons  for each public or private
            state firm.

      •     Generating  unit availability, production limits, heat rates,
            and fuel and operation and maintenance costs.
                                   A-17

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                                          Figure 4

                                     DISPATCH MODULE
>
00
   PEAK
AVAILABILITY OF
GENERATING PLANTS
   INTER-
   MEDIATE
   BASE
   LOAD
  COMBUSTION
  TURBINES
  NUCLEAR
  GEOTHERMAL
  COAL
COAL-FIRED STEAM
- »*•

OIL-FIRED STEAM
i


_r

t—
                         V-r
                                                           UTILITY LOAD
DISPATCH
FUNCTION
                                                 J
                                               L
                                        CAPACITY
                                        FACTORS
                                                        _L
     PROD.
     COSTS
                                                           JL
FUEL
CONSUMED

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D.   FINANCIAL MODULE

The Financial module, shown in Figure 5,  simulates the financial performance ot
firms that are operating to  meet consumer demands and incurring the operating
expenses and costs of expansion and pollution control estimated by the Dispatch
and System Planning modules.  The data base required for FINANCIAL consists
of  the financial parameters for all the corporate entities being modeled.  These
parameters define initial financial conditions for the simulation, which proceeds
by  determining for each future year new prices, new needs for  capital from
external sources, new earnings  levels, and the  like, under projected regulatory
constraints and tax policies. The term corporate entity refers to a single utility
firm or group of firms whose assets and production facilities have  been merged
to,  the state level for the purpose of the simulation.   Investor-owned and non-
investor-owned firms are treated separately  in the Financial module because of
the fundamentally different financial structure of these two classes of firms and
the dominant  influence of  financing costs and  tax  considerations  in  utility
decision making.
                                   A-19

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                               Figures
                          FINANCIAL MODULE
PLANNING
DISPATCH
              COSTS:
              INVESTMENT
              PRODUCTION
BASE
YEAR
STATISTICS
                                FINANCIAL
                                 MODEL
                                   I
                            ELECTRICITY
                            PRICES
                            SOURCES AND USES
                            OF FUNDS
EXOGENOUS
ELEMENTS
                    1
                 INCOME
                 STATEMENT
                 AND
                 BALANCE SHEET

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E.   RESIDUALS MODULE
The Residuals module, shown in'Figure 6, receives the production levels from
DISPATCH  and  associates them with individual units  whose fuel  choices and
pollution  control  methods  are projected by  PLANNING.   RESIDUALS then
utilizes this association and its own data base in order to:
           Aggregate  usage levels for fuels, water, and  other  re-
           sources.
           Determine production levels for air and water pollutants
           and for solid wastes, estimating seasonal  emissions on a
           unit-by-unit basis.
 The Residuals module employs two principal data bases. One is the same Fuels
 Data Base used in System Planning.  The other is  the file of generating units,
 sited by  county.   Fuel  choice, capacity factor,  and pollution controls then
 determine the level of residuals.  Over 20 individual residuals, including trace
 metals and scrubber sludge, may be calculated.

 The component modules described above provide a consistent framework  for the
 examination of specific questions.  Certain subroutines and  submodels may be
 used independently of the entire simulation model.  Changes to input parameters
 or assumptions can easily be made.
                                  A-21

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                                         Figure 6

                                    RESIDUALS MODULE
                                                         ELECTRICITY
                                                         GENERATED
                                                DISPATCH
N)
NJ
             RESOURCE
             CONSUMPTION

            "1          T
             FUEL     WATER
                                              I
                                        GENERATING PLANT
      I
POLLUTANT
RELEASES
                                         •  AIR
                                         •  LAND
                                         •  WATER

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F.   REGIONAL AIR QUALITY ANALYSIS

Teknekron's  Integrated Assessment capabilities extend to air quality  analysis.
Our general  approach is shown schematically in Figure 7.   Emission forecasts
provided by the Electric Utility Simulation Model determine those counties with
high emission densities now and in the future.  Meteorological  analysis, using
data gathered from many sources, allows us to determine the preferred paths for
the downwind transport of the projected emissions.  Teknekron's  meteorological
analyses have  also identified the weather conditions likely to give rise  to  the
long-range transport of pollutants and to high concentrations of sulfates.

Local  and regional-scale air quality models  predict the dispersion  of  airborne
emissions and  identify simple source-receptor relationships  for  specific pollu-
tants.   Previously a number of data  bases  and model  capabilities have been
applied to examine specific questions of air quality.  Air quality impacts assessed
so  far include ambient air  concentrations for SO2, NO ,  TSP, trace metals,
sulfates,  nitrates,  and oxidants; visibility  degradation; and  acid precipitation.
For the New Source  Performance  Standards  Review Volume III will discuss  the
air quality implications.
                                  A-23

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                               Figure 7

                    REGIONAL AIR QUALITY ANALYSIS
         EMISSION FORECASTS
      POWER PLANT EMISSIONS
     /INDUSTRIAL EMISSIONS
            OTHER EMISSIONS
EMISSION CONTROL REGULATIONS
   AND SITING RESTRICTIONS
      PLANNED GROWTH
  EXISTING AIR QUALITY DATA
            i
     LOCAL AND
   REGIONAL SCALE
   METEOROLOGICAL
        DATA
LOCAL AND
REGIONAL
SCALE
AIR QUALITY
MODELS
FORECASTS OF LOCAL AND REGIONAL
      AIR QUALITY IMPACTS

    • AMBIENT AIR CONCENTRATIONS
      SO2, N0x, TSP, TRACE METALS
      SULFATES, NITRATES, OXlDANTS

    • VISIBILITY DEGRADATION

    • ACID PRECIPITATION

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                       2. DATA BASE DESCRIPTION


This section  describes many of the data bases used by  the  Electric Utility
Simulation Model.   Where desirable,  these data  bases may  be  modified to
accommodate new or more specific information.  Drawing from many sources,
Teknekron continually refines and updates the data.
                                   A-25

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A.   DEMAND MODULE

DEMAND DATA — a file specifying net generation, purchases, net interchanges,
retail and wholesale  sales,  pumped storage energy, and size (MW) of existing
generating capacity,  by individual utility company. These data are merged to
describe the aggregated state firms.
Data Sources: "Statistics of Privately  Owned  Electric Utilities in the  United
States,"  and "Statistics of Publicly  Owned Electric Utilities in the  United
States,"  for the year ending December 31,  1975, based  on FPC Form I  and
Form IM magnetic tapes.

ANNUAL AVERAGE TO PEAK RATIOS — for each state firm, aggregate annual
load factors derived from combined utility data submitted to the FPC.  These
load factors are used in calculating capacity needed and load duration curves for
dispatching.

MONTHLY FRACTIONS —  monthly peak loads as a fraction of the annual peak
and the percentage of yearly energy generated in each month, by  state.  These
data are used for seasonal load curves and dispatching.
Data Source: 1975 FPC Monthly Electric Power Statistics.

YEARLY GROWTH RATES —  peak and average electricity demand growth rates
in percent by year, either nationally, by Electric Reliability Council, or by state.
These rates are specified by the user.

U.S. POPULATION PROJECTIONS - OBERS projections by state, by year.

CONTRACTS—  interstate purchases or sales in future years in addition to those
projected by DEMAND.
                                 A-26

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B.   PLANNING-DISPATCH MODULE

EXISTING UNITS —  a file  of  individual steam electric generating  units as of
December 31, 1975.  Variables  include name of the unit; state and county code?
size (capability in MW); type of cooling; alternative fuel type capability; primary
fuel type; date the unit came on line; and joint ownership data.
Principal Data Sources: "Steam Electric Air and Water Quality Control Data for
the  year ending  December 31,  1975;  Regional  Reliability  Council  Reports;
Electrical World Directories.

ANNOUNCED UNITS (Form 383-3) —a  file of individual units  (all  generating
types) for the period from 1976 to 1986 ("announced"). Variables include name of
the  unit; fuel type; size  (MW); state and county of location; state  of  primary
owner and percentage of ownership; year the unit will come on line; primary fuel
type; and type of cooling.
Principal Data Sources: FPC  published  reports  pursuant  to  FPC order 383-4
(Docket R-362), April I, 1977;  Regional  Reliability Council Reports; and Elec-
trical World Directories.

EXISTING UNITS (Forms I,  IM)— a  file containing  the size (MW)  of  existing
steam and nonsteam generating capacity.  Includes operating and maintenance
costs, asset value of transmission and distribution and general and administrative
expenses (including  intangibles), by  individual  utility  firm.   These data  are
merged to describe the aggregated state firms.

RERATES — a file of announced uprates,  derates, and retirements as per J-PC
order 383-4 (Docket R-362), April I, 1977.

CONVERSION — a file of orders to gas and oil burners to convert to  coal as per
FEA data  (June 1977).  The file also contains a  schedule for  curtailment of
natural gas and substitute fuel planned on a unit-by-unit basis.
                                   A-27

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FUTURE MIX —  a file containing the generation mix, by state, of new unit*
(coal, oil, nuclear,  combined cycle, hydro, pumped storage, geothermal, com-
bustion turbines, etc.) to be built after  1986.  These may be varied by scenarios.

RESERVES— a  specified  reserve  margin  is  maintained  throughout   the
simulation for each state.

PLANT MODEL PARAMETERS — a file of the typical heat rate for each type of
unit.  The efficiency, heat rate, and type of particulate control mechanisms are
defined as follows:
Year Unit Came
on Line
Heat
Rate
Particulatw
Type
Efficiency

before 1950
1950-1966
1966 onwards
12,500
10,600
9,200
Cyclone
Cyclone
Precip.
50%
85%
As Required
FUEL COMPOSITION —  a file defining the composition of 19 kinds of coal from
11 supply  regions, 4 kinds of residual  oil, and I  kind of gas.  Each fuel is
described  as  follows:   by  heating  value,  higher  heating value,  fractional
enhancement of heating value (cleaned coals only), fractional'weight yield from
cleaning, ash content, sulfur content cleaned, sulfur content uncleaned, nitrogen
content, carbon content, hydrogen content, moisture content, oxygen content.  In
addition trace element composition is  provided for  the following:  Na, N, Ni, Sb,
As, Ba, Be, B, Cd, Ca, Cl, Cr, Cu, F, Fe, Pb, Mg, Mn, Mo, Hg, Zn,  Se, Ag, Ti, Tl.
This file can be updated from the ASSIGN program.

FUEL USED —  a file of fossil fuels used, sulfur content, and prices, containing
6 kinds of coal and 4 kinds of oil available to each state.  For this data set, 4
                                    A-28

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least-cost coals must be specified:  a MET-SIP coal, a NON-MET-SIP coal, an
NSPS-complying coal, and a BACT-complying coal. The coal (oil) sulfur content
need not be sufficiently low to meet the applicable emission limit.  If it is not,
the PLANNING module will build a scrubber to reduce the emissions.

FUEL PRICES—  a  file  specifying  the  delivered price of every  fuel used
(including coal, residual oil, distillate oil, natural gas, etc.),  by state, in 1975
dollars. The file is updated from the ASSIGN program.

PRICE TRENDS— a file  of price trends, excluding inflation, for coal, oil, gas,
and nuclear fuels and for various types of construction for all years of the simu-
lation.

CONSTRUCTION COSTS —  typical  construction  costs  for each type of elec-
trical energy source.

COST SPREADS —  a file specifying the spread of capital expenditures for each
construction element (energy source, transmission, distribution).

WATER POLLUTION CONTROL REGULATIONS — chemical    and    thermal
regulation parameters for water pollution control.

CUTOFF — a date by which retrofitting  is determined. Plants operating before
the date  require retrofitting; plants  operating  after  the date  require  no
retrofitting.
DUE — date by which everyone must comply.
COMPLY — an integer  defining the number of years before the date by which
plants will begin to comply.  The plants that comply are distributed evenly among
the number of comply years.
OPDATE— similar  to CUTOFF. This is an operational date to determine if  a
regulation will apply to a pcu rtcular plant.
                                   A-29

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CHEMICAL CONTROL REGULATIONS
              CHEM-CUTOFF:  1980
              CHEM-DUE:   1977
              CHEM-COMPLY:  2

MSCHEM REGS:     MSCHEM is a more stringent chemical control  scenario.
Options are "T" (true) or "F" (false).
                   MSCHEM DUE:   1985
                   MSCHEM COMPLY:  5

THERMAL CONTROL REGULATIONS
              THERM: Thermal controls
              THERM-CUTOFF:  1980
              THERM-DUE: 1981
              THERM-COMPLY:  3

SIZES— simulated  units  derived from  FUTURE after  1985 may  be built
according to the following sizes:
              Nuclear   =    I200MW
              Coal      =    600 MW
              Oil        =    600 MW
These may  also be modified by the user.

HEAT BREAK — this parameter is used to determine whether the coal assigned
to a unit is of high or low heating value, for  the purpose of choosing a construc-
tion cost. HEATBRK = 9,600 Btu/lb.

SIP REGS—  a file  containing parameters pertaining to  regulations for  air
pollution control scenarios.
                               A-30

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               SIP:  State Implementation Plan
               SIP-OPDATE:  1977
               SIP-DUB  1980
               SIP-COMPLY:  4

NSPS LIMITS— an array containing New Source Performance Standards for
SOX, NOX, and particulates on a national basis, measured in #/IO  Btu.  These
limits affect plant units coming on line on or after SIP-OPDATE above.
               NSPS-SOX-COAL         1.2
               NSPS-SOX-OIL           0.8
               NSPS-SOX-GAS           O.I
               NSPS-NOX-COAL         0.7
               NSPS-NOX-OIL           0.3
               NSPS-NOX-GAS           0.2
               NSPS-PART-COAL        (Default is O.I)
               NSPS-PART-OIL          O.I
               NSPS-PART-GAS         O.I

SIP-COAL — by state, current  SIP emission rates allowed for SO , NO , and
particulates, expressed in #/IO Btu.  Each pollutant has a stringent  and less
stringent limit depending  on the  location of the generating unit.  Available are a
list of current SIPs and a  list of more stringent SIPs.

SIP-OIL — similar to coal.

BACT-SOX — Best Available Control Technology for SO control. Two plans are
available.
          PLAN O:   No regulations.
          PLAN I:   Regulations as  specified by BACT-SOX-MIN, BACT-SOX-
                    LID below.
BACT-OPOATB   1983
BACT-TSP-LIM:   A particulate limit if Plan I  is chosen. Specified by scenario.
Currently 0.03///106 Btu.

                                A-31

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BACT-SOX-LID:  Emission limit (#/!06Btu) not to be exceeded, even if SOX-
MIN efficiency must be increased. Currently I.2///IO Btu.

MS NOX: A more stringent NO  control scenario.  Used if MS-NOX-FLAG = T;
not used if MS-NOX FLAG = F.
MSNOX-ANNDATE:   Announced date of this scenario.  Currently 1980.
MSNOX-OPDATE:  1985
MSNOX-DUB  1990
MSNOX-COMPLY: 4
MSNOX-BEFORE:  #/106 Btu allowable before limits are imposed.
MSNOX-AFTER:  ///106 Btu allowable after limits are imposed.

CONVERT $ — $/kW to convert  oil  and gas units to coal and oil ($65 and $5,
respectively)..

THERMAL EXEMPTIONS - a file containing:
3I6A-RETRO:   Percentages  of  existing plants that will not qualify for the
compliance under 3l6(a), by state. These plants will need retrofitting.
EXEMPT:  Number of plants that will qualify for exemption under 3l6(a).
ECON:  Number of plants that will  add cooling towers for economic and tech-
nical reasons.
POLL:  Number  of plants that  will add  cooling  towers for pollution  control
reasons.
3I6A-NEW:  A file containing percentages of new plants that will  qualify for
compliance under 3l£(a), by state. These plants will not need retrofitting.
Data Source:  Appendix D of "Water Pollution Control for the Steam Electric
Power Industry," for NCWQ, December 15,  1975, by Teknekron, Inc.
                                                                       \

COUNTY — a file containing jand-use data and EPA classification on a county-
by-county basis for each of the  48  contiguous states.  The following data are
included:
                                  A-32

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     I.   County name and UTM coordinates.
     2.   Siting weights: site-specific  economic  and engineering
          assessment of the suitability of siting a new power plant
          in that county.  Separate weights are provided for the
          following plant types: coal, mine-mouth coal, residual oil,
          nuclear.
     3.   The county's environmental status code vis-a-vis preven-
          tion of significant deterioration  and attainment of am-
          bient air quality standards.

DISPATCH STATE POINTERS —  an array defining region of dispatch order for
a state.
DISPATCH ORDER —  the Dispatch Module utilizes its generation mix accord-
ing to the Dispatch Order, a vector of ranks for N capacity classes.  A least-cost
dispatch order may be recalculated each year for each state.

DAILY MAXIMUM CAPACITY FACTORS -  for each  unit type,  the capacity
factor limits (i.e., the capacity factor that cannot be exceeded).

AVAILABILITY —  the availability limit for each unit type. This limit constrains
the capacity factor assignable for any hour of a typical  day.

DAYSHAPES —  a block data set containing  normalized  hour-by-hour dayshape
curves,  by state.  Contains data for two seasons (summer  and winter) and for all
hours of the day.   Monthly or seasonal  peak and average are supplied by the
Demand module.   Weekends and  weekdays are separately dispatched in  both
summer and winter seasons from load duration curves.

DEMAND-PLAN DATA —  processed data passed  from DEMAND.   Includes
peak demand and electrical energy to be generated, determined from retail sales,
purchases, and wholesale sales.   From  monthly fractions, seasonal  peak and
average generation demands are passed through.
                                   A-33

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C.   FINANCIAL MODULE

DEMAND-FINANCIAL DATA —  includes DEM-TO-FIN, a file  containing pro-
jections of Kwh sales (retail and wholesale) as generated by DEMAND, and PLJM-
TO-FIN, a file generated by PLANNING containing simulation values for:

      I.   Schedule of expenditures for plants coming on line in  each
          year, by asset class
     2.   New  additions to the construction work  in progress ac-
          count, by asset class
     3.   Expenses for nuclear fuel, fossil fuel, operation,  mainte-
          nance, and pollution control O&M, by year

FINDATA ~  extracts from FPC  Forms I and IM detailing data for the, individual
utility systems,  merged to describe  the aggregated  state firms.  Included are
data on the operation and maintenance costs experienced for various classes of
equipment; data on expenditures for  transmission and distribution systems; and
data on general and administrative costs.

BOOK DEPRECIATION
a.   Steam Plant and Equipment, not including pollution control equipment: 35-
     year life; rate = .028571.
b.   Nuclear Plant and  Equipment,  not including pollution  control equipment:
     30-year life; rate = .033333.
c.   Hydro Plan and Equipment, not including pollution control  equipment: 65-
     year life; rate = .015385.
d.   Other Depreciable Assets:  30-year life; rate = .033333.
e.   Transmission:  35-year life;  rate = .028571.
f.   Distribution:  25-year life;  rate = .040000.
g.   Pollution Control Equipment:   5-year life;  rate = .200000.
                                  A-34

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TAX DEPRECIATION —   All  assets except  pollution  control  equipment are
depreciated using the Double  Declining  Balance Method.   Pollution Control
equipment is depreciated using the Straight Line Method over a 5-year life for
both tax and book purposes.
a.    Steam Plant and Equipment, not including pollution control equipment: 28-
      year life; rate= .035714.
b.    Nuclear Plant and Equipment, not including pollution control equipment:
      20-year life; rate = .0.50000.
c.    Hydro Plant and Equipment, not including pollution control equipment: 50-
      year life; rate = .020000.
d.    Other Depreciable Assets:  20-year life; rate = .050000.
e.    Transmission: 30-year life; rate = .033333.
f.    Distribution:  30-year life; rate = .033333.
g.    Pollution Control Equipment:  5-year life; rate = .200000.

TAX RATES
a.    Federal   =    .48
b.    State     =    Varies by state, about .05

STOCK/DEBT FINANCING MIX
a.    50% Long-Term Debt
b.    15% Preferred Stock
c.    35% Common Stock
      Common Stock "risk" factor over the bond rate = .04
      Preferred Stock "risk" factor over the bond rate = .01
                                   A-35

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BOND RATES
                       1976        1977        1978        1979        1 980 on
                      .0867       .0856      .0886       .0849       .0884
Utilities              '°566       -0529       '°546       *°522      *°544
Inflation Rate (all years) = .055

Interest coverage ratio limit in public financing = 2.00

Debt service limit in public financing = 1.75

Rate of repayment of long-term debt = 0.04

Investment Tax Credit tax rate = 1 0%

Amortization rate = .033333

Coefficients of costs in rate base formula = .125

Construction work in progress  interest rate (calculated endogenously)

100% of firms are assumed to "normalize" for tax depreciation and tax credit

Return on common equity = .13

Coefficient  of operating expenses in formula for rate base = 0.125

Coefficient  of income tax in formula for rate base = 0.06

Debt/Equity ratio limit = 0.65

                                   A-36

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D.   RESIDUALS MODULE

PROJECTED SYSTEM - a file of steam units resulting from simulation ordered
by state-year with dispatched capacity factors for 16 classes.

UNIT INFORMATION -  year on line; size; FPC ID; owner state; location state;
county; fuel; controlled SO  , particulate, and NOV emissions; control device and
                        *v                  X
efficiency; applicable air pollution regulation limit; how unit entered system
(EXISTING,  ANNOUNCED,  FUTURE); how sited; and other physical quantities
related to pollution control.

FUEL —  fuel composition data for coal, oil, and gas.  Includes heating value;
sulfur, moisture, and ash content, plus trace and radioactive elements, if any.

REGIONAL METEOROLOGICAL AND COOLING SYSTEM  -     region-specific
coefficients used to calculate water consumed in evaporative  cooling.

NONSTEAM HEAT RATES -  heat  rates for  combustion turbines,  combined
cycle, and geothermal units.

TRANSPORT - coal transportation route miles for water, rail, slurry pipeline.
Used in computing transportation energy consumed and in evaluating coal choices
in ASSIGN.
                                  A-37

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E.   AIR QUALITY MODELS AND DATA BASES

Teknekron's Meteorology Group uses a number of data bases and air quality
models that together provide a powerful tool for integrated assessment.  Outputs
of the Electric Utility Simulation Model can be used in conjunction with these
resources, which are listed below. The air quality data bases are categorized in
terms of  emissions, meteorology,  air  quality,  and effects.  The  models are
categorized  as  models  of simple  source-receptor  relationships, as simple
phenomenological models, and as advanced dispersion models.

                         EMISSIONS DATA BASES

I.   National Emissions Data System (NEDS)-EPA
     a.    1972, by state and Air Quality Control Region
     b.    1973, by county, state, and Air Quality Control Region
     c.    1975, by county and source category.  (This is the state of the art for
           NEDS.  Teknekron  assisted EPA in building this data base over the
           past summer.)
     d.    State and local agencies
           i.     Six Ohio River Basin states
          ii.    Eight Rocky Mountain states
         iii.     Ohio — used in EPA revision of SIP (August 1977)
     e.    Special NO  emissions tests results
2.   Emissions Projections from Teknekron's Electric Utility'Simulation Model
     a.    Emissions by county and state, projected from 1976 to 2000.
3.   Strategic Environmental Assessment System (SEAS) DOE/EPA
     a.    National Energy Plan Scenarios
     b.    NSPS Review scenarios
                                    A-38

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4.    Master Industrial County Data Base DOE/EPA

      a.    Existing Major Fuel-Burning Installations (MFBI)

      b.    Planned Industrial Boilers - American Boiler Manufacturers Associa-
           tion (ABMA)

      c.    County Siting Weights for Future Steam Electric Plants

      d.    Class I and Nonattainment Status for Individual Counties

      e.    Regional Coal Assessment Siting Weights

      f.    Various Geographic Location Codes



                      METEOROLOGICAL DATA BASES


I.    Inversion and Mixing Height Files - EPA (Holzworth)

      a.    1960-1964

      b.    1972-1976

      c.    1977-1978 — selected periods on order

2.    TDF  14 Data for National Weather Service Stations

      a.    1948-1974 hourly and 3-hourly observations at more than ISO stations

      b.    Stability Array (STAR) outputs from more than 150 stations

      c.    Generalized Persistence (GPER) outputs from more than ISO stations

           i.    Extreme-persistence cases for 22.5° sectors

          i i.    Extreme-persistence cases for 45° sectors

3.    Number/Format Data  for Canadian Environment Service Stations

      a.    1966-1976 hourly observations at ten stations

      b.    Stability Array (STAR) outputs from ten stations
                                   A-39

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     c.   Generalized Persistence (GPER) outputs from ten stations
          i.     Extreme-persistence cases for 22.5° sectors
          i i.     Extreme-persistence cases for 45° sectors
4.   Special Data from Towers
     a.   Ten Sulfate Regional Experiment Locations, 4/74-3/75
     b.   Three TVA locations, 1974-1976
     c.   Fifteen locations in the Commonwealth of Pennsylvania, 1975
     d.   Thirteen locations  in the Rocky Mountain Region (EPA Region VIII)

                        AIR QUALITY DATA BASES
I.   National Air Sampling Network (NASN), I960 — present, at more than  100
     selected locations
     a.   Sulfur Dioxide
     b.   Su I fates
     c.   Total Suspended Part jculates
2.   TVA Regional Trends Network, 5 stations, 1973-1976
3.   Annual Monitoring and Trends Analysis Reports, EPA, 1970-1975
4.   Trace Metals, EPA,  1965-1974
5.   Sulfate Regional Experiment, EPRI
     a.   4/74-3/75
     b.   1977-1978 on order
6.   Canadian Atmospheric Environment Service Intensive Sulfate Study, August
     1976
7.   American Electric Power, 10 networks,  1974-1976, on order
                                   A-40

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                           EFFECTS DATA BASES
 I.    Atmospheric Turbidity, EPA (Flowers), 1960-1975

 2.    Visibility (visual range), 1948-1976; for ISO locations, noontime visual range
      and relative humidities

 3.    Precipitation chemistry (acid rain)

      a.    World Meteorological Organization, 1972-1975

      b.    Canadian Atmospheric Environment Service Intensive Sulfate Study,
           August 1976
                           AIR QUALITY MODELS
I.    Simple source-receptor relationships — developed and  applied  to  areas
      where:

      a.    emission data are plentiful  and emissions can be ascribed to a pre-
           dominant source category (e.g., power plants or industrial facilities)

      b.    air quality data are plentiful for primary (i.e., SO~) and/or secondary
           (i.e., SOJ  pollutants and are relatively free from  local source in-
           fluences

      c.    meteorological data are plentiful and the results of analysis provide a
           convincing link between (a) and (b)  above in terms of prevailing winds,
           most frequent extreme-persistence sectors, etc.

      d.    the time periods and areas satisfying (a)-(c) above are, respectively,
           long (i.e., annual) and large (i.e., several air quality control regions)

2.    Simple phenomonological models

      a.    EPA Users Network for Applied Modeling of Air Pollution (UNAMP)
           interactive computer terminal

      b.    Teknekron Sector Box Model with Source Intensification (SBSI)
                                    A-41

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3.   Advanced dispersion models

     a.   EPA Single Source (CRSTER) and Valley Models

     b.   Teknekron  Pseudo   Spectral  Three-dimensional  Grid  Model   for
          Regional Su I fates (in preparation)
                                  A-42

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                                   TECHNICAL REPORT DATA
                            (I lease read Inatnictions on the reverse before completing)
  REPORT NO.
                              2.
                                                           3. RECIPIENT'S ACCESSION NO.
 .TITLE AND SUBTITLE
 Review of New Source Performance Standards for Coal-
 Fired  Utility Boilers, Volume  1:  Emissions and Non-
 Air  Quality Environmental Impacts
                           5. REPORT DATE
                             March 1978
                           6. PERFORMING ORGANIZATION CODE
 7. AUTHOR(S)
                                                           8. PERFORMING ORGANIZATION REPORT NO
 9. PERFORMING ORGANIZATION NAME AND ADDRESS
  Energy and Environmental  Engineering Division
  Teknekron, Inc.
  2118 Milvia Street
  Berkely,  California  94704	
                           10 PROGRAM ELEMENT NO.

                           	•    1NE 624
                           11. CONTRACT/GRANT NO.
                             68-01-1921
 12. SPONSORING AGENCY NAME AND ADDRESS
     U.S. Environmental Protection Agency
     Office of  Energy,  Minerals, and Industry
     Office of  Research and Development
     Washington,  D.C.   20460
                           13. TYPE OF REPORT AND PERIOD COVERED
                           14. SPONSORING AGENCY CODE

                                 EPA-ORD
 15, SUPPLEMENTARY NOTES
     This project is part of the EPA-planned and coordinated Federal Interagency
     Energy/Environment  R&D  Program.
 16. ABSTRACT
       two volume report summarizes a study of the projected effects of  several
 different revisions to the~-eurrent New Source Performance Standard (NSPS)  for sulfur
 dioxide (S02)  emissions from  coal-fired utility power boilers.  The revision is  as-
 sumed to apply to all coal-fired units of 25 megawatts or greater generating capacity
 beginning operation after 1982. I The revised standards which are considered  are:  (1)
 mandatory 90 percent S02 removal with an upper limit on emissions of 1.2 Ib  S02  per
 million Btu; (2) mandatory  80 percent S02 removal with the same upper  limit;  (3)  no
 mandatory percentage removal  with an upper limit of 0.5 Ib S02 per million Btu.   In
 addition, effects of revising the NSPS for particulate emissions from  the  current
 value of 0.1 Ib per million Btu  down to 0.03 Ib are quantified.  Projections of  the
 structure of the electric utility industry both with and without the NSPS  revisions
 are given out to the year 2000.   Volume 1 discusses air emissions, solid wastes,
 water consumption, and energy requirements.  Volume 11 discusses economic  and
 financial effects, including  projections of pollution controlrcosts and changes  in
 electricity prices.
            (Circle One or More)
KEY WORDS AND DOCUMENT ANALYSIS
                  DESCRIPTORS
     Earth Atmosphere
     Combustion
     Energy  Conversion
                                              b.lDENTIFIERS/OPEN ENDED TERMS
               Energy Cycle: 'Energy
                 Conversion
               Fuel:  Coal
                                           COSATI Field/Group
                                                                         6F
                                                   8F
10A  10B
                                                                         7B       13B
                                                                         97A 97F 97G
 3. DISTRIBUTION STATEMEN1

  Release to public
               unclassified
                                                            (This Report)
                                           130
              20. SECLLHITY CLASSj'TViijpage!
                unclassified
                                        22. PRICE
EPA Form 2220-1 (9-73)
                           4 U.S. 60VBWMEHTPRINTIK6 OFFICE: 1978—260-880/97

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