Reality Sets In - MACT for Mercury If You Want To Build

See bottom of article for update (12-10-2008).

The writing is on the wall, if you want to have any chance of building a new coal fired EGU in the United States, you better spec in MACT controls for mercury, and even that may not be enough. A large Texas utility, Energy Future Holdings (formerly TXU Corp.), has decided it is better to switch than fight.

In a sign of the times Energy Future Holdings signed a negotiated deal with Sierra Club to go forward and finish the construction of two plants in Texas. These plants were permitted by TCEQ already and potentially could have fought to go forward without the deal. But the sentiment in the country witnessed by the recent ruling in North Carolina with Duke Energy is, CAMR was a misguided regulation, and without further delay, environmentalists through the courts are going to force MACT as stipulated in the Clean Air Act.

A few excerpts from the Dallas News article by Elizabeth Souder follows;

The deal, also negotiated by Public Citizen, marks the second time Energy Future Holdings has struck agreements with environmental groups over plans to build coal-fired power plants. Environmental groups have targeted coal plants as major polluters and carbon dioxide emitters and have won several battles as politicians become more sensitive to environmental arguments.

Luminant, EFH’s power generation business, agreed to meet so-called “maximum achievable control technology” for mercury emissions on two coal units it is building at the Oak Grove site. That plant, which is under construction, already has air permits from the Texas Commission on Environmental Quality.

The company will file for MACT determination with the commission this week.

EFH lawyer Rob Walters said the company won’t change the design of the plants or slow down construction. Instead, the TCEQ will determine whether the plant may operate at full capacity and still meet MACT standards, or whether Luminant must dial down a bit.

When a plant doesn’t operate at full capacity, the plant doesn’t make as much power, but it also doesn’t emit as much pollution.
[...]
Luminant has already received air permits stating that the company will use so-called “best available control technology” on the plants. But since the TCEQ awarded those permits, rules on mercury emissions have changed.

The Sierra Club told Luminant it intended to sue the company because it wouldn’t meet the new standards. Mr. Walters believes the company doesn’t have to meet the new standards, since it received permits under a different set of standards.

The company chose to negotiate a deal rather than risk delaying the new plants because of a lawsuit.

I am sort of surprised Sierra Club yielded to the approach EFH is proposing since it doesn't appear that carbon injection or any other active mercury control is being sought. Limiting power output will reduce emissions and closing other older plants is really at the heart of all good policy. But how long will it be until power demand increases and forces these existing newer assets to produce what they were designed to produce. Perhaps at that point mercury controls will be more mainstream and agreements exist that they will be implemented at that time, although there is no mention of this in the article.

Since these plants were already under construction following an earlier deal EFH cut with Environmental Defense Fund and NRDC the construction will go on with these passive MACT assurances in place. The issue of greenhouse gases is set aside in this case and getting an agreement on mercury when the utility didn't really have to do so is what compromise is all about. I for one, would like to see formal assurances of active mercury control whenever possible.

Update (12-10-2008) - Apparently EFH is installing carbon injection systems at the facilities. This was clarified in another article in the Dallas Business Journal, excerpt below;

Luminant says, at the moment, the Oak Grove plant is installing sorbent injection systems that will use carbon to control the output of mercury emissions.

“This agreement gives us greater legal and regulatory certainty as we complete the Oak Grove generating station, which will help meet growing Texas electricity demand,” said Bill Moore, general counsel for Luminant. “We’re confident that our state-of-the art emissions control technology will continue to meet or exceed all regulatory requirements, reflecting our ongoing commitment to environmental stewardship.”