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New Source Review and coal plant efficiency gains: How new and forthcoming air regulations affect outcomes

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  • Adair, Sarah K.
  • Hoppock, David C.
  • Monast, Jonas J.

Abstract

Forthcoming carbon dioxide (CO2) regulations for existing power plants in the United States have heightened interest in thermal efficiency gains for coal-fired power plants. Plant modifications to improve thermal efficiency can trigger New Source Review (NSR), a Clean Air Act requirement to adopt of state-of-the-art pollution controls. This article explores whether existing coal plants would likely face additional pollution control requirements if they undertake modifications that trigger NSR. Despite emissions controls that are or will be installed under the Mercury and Air Toxics Standards (MATS) and Clean Air Interstate Rule (CAIR) or its replacement, 80% of coal units (76% of capacity) that are expected to remain in operation are not projected to meet the minimum NSR requirements for at least one pollutant: nitrogen oxides or sulfur dioxide. This is an important consideration for the U.S. Environmental Protection Agency and state policymakers as they determine the extent to which CO2 regulation will rely on unit-by-unit thermal efficiency gains versus potential flexible compliance strategies such as averaging, trading, energy efficiency, and renewable energy. NSR would likely delay and add cost to thermal efficiency projects at a majority of coal units, including projects undertaken to comply with forthcoming CO2 regulation.

Suggested Citation

  • Adair, Sarah K. & Hoppock, David C. & Monast, Jonas J., 2014. "New Source Review and coal plant efficiency gains: How new and forthcoming air regulations affect outcomes," Energy Policy, Elsevier, vol. 70(C), pages 183-192.
    • Handle: RePEc:eee:enepol:v:70:y:2014:i:c:p:183-192
    DOI: 10.1016/j.enpol.2014.03.036
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    References listed on IDEAS

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    2. Thomson, Vivian E. & Huelsman, Kelsey & Ong, Dominique, 2018. "Coal-fired power plant regulatory rollback in the United States: Implications for local and regional public health," Energy Policy, Elsevier, vol. 123(C), pages 558-568.
    3. Grant, Don & Running, Katrina & Bergstrand, Kelly & York, Richard, 2014. "A sustainable “building block”?: The paradoxical effects of thermal efficiency on U.S. power plants’ CO2 emissions," Energy Policy, Elsevier, vol. 75(C), pages 398-402.
    4. Yung-Hsiang Lu & Ku-Hsieh Chen & Jen-Chi Cheng & Chih-Chun Chen & Sian-Yuan Li, 2019. "Analysis of Environmental Productivity on Fossil Fuel Power Plants in the U.S," Sustainability, MDPI, vol. 11(24), pages 1-27, December.
    5. Sovacool, Benjamin K., 2015. "The political economy of pollution markets: Historical lessons for modern energy and climate planners," Renewable and Sustainable Energy Reviews, Elsevier, vol. 49(C), pages 943-953.
    6. Germeshausen, Robert, 2018. "The European Union emissions trading scheme and fuel efficiency of fossil fuel power plants in Germany," ZEW Discussion Papers 18-007, ZEW - Leibniz Centre for European Economic Research.
    7. Zhou, Yishu & Huang, Ling, 2016. "Have U.S. power plants become less technically efficient? The impact of carbon emission regulation," Energy Economics, Elsevier, vol. 58(C), pages 105-115.

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