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EPA

What Price, GHGs?

Renewable portfolio standards and other green energy rules put a price on environmental benefits. Calculating this price can help clarify the social value of GHG reductions.

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Figure 1 - Implied CO2 Externality Values of Carbon Reduction Policies
Figure 2 - Ranges of Implied CO2 Externality Values
Category: 
Business & Money
Author Bio: 

Philip Q Hanser is a principal with The Brattle Group, and Mariko Geronimo is an associate with the firm. The views in this article are theirs and not those of The Brattle Group or its clients.

Calculating the implied value of CO2 abatement in green energy policies.

Mitt Romney and You

The Republican nominee’s energy plan doesn’t say much about electricity or natural gas. But what it does say should sound familiar to anyone who’s followed energy policy for more than four years.
Category: 
Frontlines
Author Bio: 

Michael T. Burr is Fortnightly’s editor-in-chief. Email him at burr@pur.com

Bold plan for independence, or more partisan overreach?

Orchestrating Outages

Squeezing plant outage duration by days or even weeks can save the industry billions of dollars in lost running time. The San Onofre outage is just the most visible example of what’s at stake for the industry. New outage management technologies and processes allow generators to coordinate outages and get critical plants back online quickly and efficiently.

Category: 
Technology Corridor
Sidebar: 
Sidebar Title: 
Call of Duty: The Outage
Sidebar Body: 

According to the Entertainment Software Association (ESA), 72 percent of American households play computer or video games. Who cares?

Invensys does.

The company’s EYESIM virtual reality software allows goggle-wearing users to walk through a virtual power plant environment—like they might with a first-person video game. As a training system, it can be used to address virtually any outage scenario. It’s currently supporting an IGCC plant training demonstration program at the National Energy Technology Lab’s AVESTAR Center.

“We see this being used for outage planning,” says Peter Richmond, product manager with Invensys. “With a full 3-D view of the plant, planners will be able to visualize where the equipment is, where to place the scaffolding, where to place outage equipment, and even use it to determine the order in which the work will be performed.”

Further, as the ESA numbers clearly indicate, Invensys believes the next generation power plant workers will be familiar with video technology and consequently will embrace it over traditional training techniques. As such, Invensys is marketing its program for a variety of training purposes, including shut down and start up processes prior to an actual outage.

“A planned shut down and start-up doesn’t occur that often and plant personnel don’t usually get to practice the steps very often,” he says.

It’s a manual process—adjusting valves and controls. If you get it wrong, things can blow up.

“Our system will allow plant personnel to practice in a virtual environment,” Richmond says. “If they make a mistake, the system will tell them what could conceivably happen.”–SMG

Sidebar Title: 
Got Boilermakers?
Sidebar Body: 

When the U.S. Environmental Protection Agency (EPA) announced last December that it had finalized its Mercury and Air Toxics Standards, or MATS, it predicted thousands of American workers would be needed to build, install, and operate new power plant equipment to reduce emissions of mercury, acid gases, and other air pollutants.

With roughly four years to comply with the mandate, many within the electric power industry have predicted labor shortages, especially on the power plant installation and construction end of the equation. But as far as the Kansas City, Kansas-based International Brotherhood of Boilermakers is concerned, those fears are unfounded.

Some 10 years ago, when many in the industry were predicting a spike in coal-fired power plant construction, the union began gearing up its apprenticeship and recruitment programs in anticipation of the building boom. At that time it was predicted that enough Boilermakers would be needed to handle 50 million man-hours of construction work by 2010.

But the boom was a dud. Plans for roughly 100 new coal-fired generation units were scrapped. As a result, boilermaker man-hours peaked at 41 million in 2008, with about 31,000 members actively working, and man-hours have been in sharp decline ever since. Boilermakers worked 34 million man-hours in 2009, 29 million man-hours in 2010, and 27 million man-hours in 2011. About 25 million man-hours are projected for 2012.

According to Kyle Evenson, the union’s executive director of construction sector operations, some boilermakers decided to retire or seek other occupations during the industry downturn. “But the average $58 an hour in pay and benefits will bring them back. As the industry recovers, we will meet the needs of the contractors and owners with our apprenticeship and recruiting training programs,” he says.

In the meantime, the workforce should be ample for the expected project demand. “I recently had a guy doing research for a think tank ask, ‘What if 10 power plants all schedule new baghouse equipment installations at the same time?’ I told him that’s roughly 2,000 boilermakers and we have about three times that number right now who are either underemployed or unemployed.”–SMG

Sidebar Title: 
Got Boilermakers?
Sidebar Body: 

When the U.S. Environmental Protection Agency (EPA) announced last December that it had finalized its Mercury and Air Toxics Standards (MATS), it predicted thousands of American workers would be needed to build, install, and operate new power plant equipment to reduce emissions of mercury, acid gases, and other air pollutants.

With roughly four years to comply with the mandate, many within the electric power industry have predicted labor shortages, especially on the power plant installation and construction end of the equation. But as far as the Kansas City, Kansas-based International Brotherhood of Boilermakers is concerned, those fears are unfounded.

Some 10 years ago, when many in the industry were predicting a spike in coal-fired power plant construction, the union began gearing up its apprenticeship and recruitment programs in anticipation of the building boom. At that time it was predicted that enough boilermakers would be needed to handle 50 million man-hours of construction work by 2010.

But the boom was a dud. Plans for roughly 100 new coal-fired generation units were scrapped. As a result, boilermaker man-hours peaked at 41 million in 2008, with about 31,000 members actively working, and man-hours have been in sharp decline ever since. Boilermakers worked 34 million man-hours in 2009, 29 million man-hours in 2010, and 27 million man-hours in 2011. About 25 million man-hours are projected for 2012.

According to Kyle Evenson, the union's executive director of construction sector programs, some boilermakers decided to retire or seek other occupations during the industry's downturn. "But the average $58 an hour in pay and benefits will bring them back," he says. "As the industry recovers, we will meet the needs of the contractors and owners with our apprenticeship, recruiting, and training programs."

In the meantime, the workforce should be ample for the expected project demand. "I recently had a guy doing research for a think tank ask, 'What if 10 power plants all schedule new baghouse equipment instllations at the same time?' I told him that's roughly 2,000 boilermakers, and we have about three times that number right now who are either underemployed or unemployed."-SMG

Author Bio: 

Scott M. Gawlicki is Fortnightly’s contributing editor based in Hartford, Conn.

IT systems ease the pain of power plant restarts.

The Methane Myth

The EPA’s new method for measuring the amount of methane that escapes from natural gas wells is based on flawed data. Oklahoma’s attorney general says this misguided policy decision treads on state regulatory authority and stifles resource development.

Category: 
Op Ed
Author Bio: 

E. Scott Pruitt is attorney general of Oklahoma and chairman of the Republican Attorneys General Association.

Incompetence and overreach at the EPA.

Regulatory Gordian Knot

New environmental requirements under the Clean Water Act (CWA) will add to the already complex burden of compliance for power plants. As the Environmental Protection Agency moves forward with cooling water and effluent standards, utilities and generators will have to deal with overlapping rules and conflicting policy goals.

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Author Bio: 

Miranda Yost is an attorney in Hunton & Williams LLP’s Richmond office. Her practice focuses on environmental law and regulation.

EPA’s new water, waste, and air regulations complicate power plant compliance.

Climate Exposure

Collecting on GHG Damage Claims
A state supreme court ruled last fall that damage resulting from climate change allegedly caused by power plant emissions was “reasonably foreseeable,” and therefore litigation expenses were not covered under a general liability insurance policy. The ruling creates an unworkable standard and raises questions about insurance coverage for climate-change liabilities.

Going Once ...

Asset options in a fast-moving market.
Mergers and acquisitions can help companies balance their asset portfolios and improve their financial strength. But economic and regulatory forces are driving more buyers into the market, and the demand for attractive targets might soon outstrip the supply.

Cheap Gas Forever?

Demand Curve Points to Rising Prices
Even with recent large natural gas discoveries and strong inventories, the supply of natural gas isn’t elastic enough to handle significant demand increases. Rising gas prices will push coal back into the money despite coal plants’ high costs to comply with EPA regulations.

Up in Smoke

PJM auction jettisons 6.9 GW of coal-fired generation
Demand-side resources claim a growing share of the market, bringing lower costs and environmental benefits.

Managing Overgrowth

Vegetation Management and FERC Compliance
An integrated approach can trim the cost of keeping utility rights of way clean -- and green.

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