Power Generation Sector: C02 Emission Standards ~ Oregon C02 Emission Standards for New Power Plants In June 1997, the state of Oregon adopted into law a C02 standard for new energy facilities. The legislation authorizes the state's Energy Facility Siting Council to set C02 standards for base load natural gas plants, non-base load power plants (all fuels), and non-generating energy facilities (all fuels). Pursuant to the legislation, the Council set up the rules to implement the standard in March of 1999. For generating plants (both base load and non-base load), the Council set the initial stan- dard at a net rate of 0.7 pounds of C02 per kWh, which is 17% below the emissions of the most efficient plants currently available. For non-generating facilities, the rate is 0.522 pounds of C02 per horsepower-hour. In order to strike a balance between the C02 stan- dard and the cost to developers, the standard cannot add more than 1.8% to the cost of a new power plant. Compliance with the C02 standard may be met through plant efficiency improvements, co- generation, and offset projects (e.g., tree planting). Furthermore, it is possible to meet the standard by paying a fee ($0.57 per ton of C02, plus administrative costs) to an offset projects fund (this approach is referred to as the "monetary path"). Funds from the monetary path are then used to finance qualified independent organizations. Results: Thus far, three new power plant projects have provided strategies for meeting the new C02 standard. The project strategies described here represent projected emissions and offsets over a 30-year period. Construction and offsets are expected to begin in the summer of 1999. The Hermiston Power Project is expected to have gross C02 emissions (i.e., over 30 years) of 50.2 million metric tons (MMT) (13.7 MMTCE). The C02 standard offsets required for this project are 5.5 MMT C02 (1.5 MMTCE) and will be met through a monetary path offset value of $3.6 million. The Coyote Springs Cogeneration Project is expected to have gross C02 emissions of 22.7 MMT (6.2 MMTCE), which requires an offset of 3.7 MMT C02 (1.0 MMTCE) with a monetary path offset value of $2.5 million. Lastly, the Klamath Cogeneration Project is expected to have gross C02 emissions of 44 MMT (12.0 MMTCE). Total offsets required are 12.2 MMT (3.3 MMTCE), which will be met through 4.1 MMT (0.97 MMTCE) in cogeneration offsets, 6.5 MMT (1.5 MMTCE) in project offsets, and 1.7 MMT (0.46 MMTCE) in monetary path offsets. The monetary path offset value is $1.0 million and the total offset project costs are $6.1 million. Annually, these three projects represent emission reductions of approximately 194,500 MTCE*. Principal Actors: The Oregon Carbon Dioxide Emission Standards were instituted by the Oregon Energy Facility Siting Council. The rules apply to all new power plants in Oregon and will be enforced by the Oregon Office of Energy. Offset projects funded through the monetary path are implemented by independent non-profit organizations, such as the Oregon Climate Trust. Additional Information: Sam Sadler, Oregon Office of Energy, 503-373-1034, samuel,r.sadler@state.or,us; Gabriela Goldfarb, Oregon Climate Trust, 503-233-7040, goldfarb@climatetrust.org. The siting bill and the Report of the Oregon Energy Facility Siting Task Force axe available at: http://www.cbs.state.or.us/external/ooe/nucsafe/facility.htm. This case study is based on information provided by Sam Sadler, Oregon Office of Energy. * Original data have been converted from metric tons of C02 to Metric Tons of Carbon Equivalent (MTCE). offset projects implemented by Greenhouse Gas Reductions 194,500 MTCE*/yr (total for three projects) ------- Sam Sadler, Oregon Office of Energy, 503-373-1034, samuel.r.sadler@state.or.us; Gabriela Goldfarb, Oregon Climate Trust, 503-233-7040, goldfarb@climatetrust.org. The siting bill and the Report of the Oregon Energy Facility Siting Task Force are available at: http://www.cbs.state.or.us/external/ooe/nucsafe/facility.htm. This case study is based on information provided by Sam Sadler, Oregon Office of Energy. * Original data have been converted from metric tons of CO2 to Metric Tons of Carbon Equivalent (MTCE). ------- |