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U.S. EPA’s CHP Partnership: Supporting CHP in the Midwest

U.S. EPA’s CHP Partnership: Supporting CHP in the Midwest. Midwest Cogeneration Association Bimonthly Meeting November 28, 2001 Joe Bryson Team Leader, CHP Partnership, U.S. EPA. Overview. CHP is key item on the federal government’s energy/environmental policy radar

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U.S. EPA’s CHP Partnership: Supporting CHP in the Midwest

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  1. U.S. EPA’s CHP Partnership:Supporting CHP in the Midwest Midwest Cogeneration Association Bimonthly Meeting November 28, 2001 Joe Bryson Team Leader, CHP Partnership, U.S. EPA

  2. Overview • CHP is key item on the federal government’s energy/environmental policy radar • U.S. EPA’s CHP Partnership: EPA-industry initiative to recognize & promote CHP projects and their benefits • Midwest is leading region targeted for attention • Need your input

  3. Bush’s National Energy PolicyMay 2001 “CHP is environmentally preferred, cost effective, efficient, and reliable.” • Directs EPA/Treasury to promote CHP • EPA • at brownfields sites • through flexible permitting • with greater clarity & shortened permitting times • Treasury • evaluate shortened tax lives or investment tax credits

  4. National Energy & Environmental Challenges • Energy Challenges • Reliable • Low-cost • National security • Environmental Challenges • Human health • Local/regional environment • Global environment

  5. CHP Characteristics • Distributed: located where energy is used • Increases reliability • Avoids T/D line losses • Highly efficient: reduces fuel consumption • Lowers costs ==> increased competitiveness • Less fuel combusted ==> reduced emissions • Employs waste fuels • Lowers costs • Avoids disposal issues

  6. Efficiency of U.S. Electricity Generation Is Low and Stagnant • Fossil-fired power plants have not improved their efficiency in last four decades: ~32% (before line losses) • Amount of energy U.S. wastes each year is greater than Japan’s entire annual energy use • CHP is 60-90% efficient

  7. MW 1 100 Large CHP Opportunity Still Exists % 100 80 60 40 20 0 10 25 50 100 200 300 400 500 1000 >1,000 Steam Draw (1000 lbs/hr) 10 Opportunity Saturation Source: General Electric

  8. Commercial & Institutional 9% Other Industrial Other Industrial 19% Paper 29% Chemicals 29% 30% Metals 5% Metals Refining 8% Food 9% Paper 16% Food 13% Refining 13% Chemicals 9% 11% Existing : 48 GW Potential: 88 GW CHP Opportunity in Industrial Sector

  9. Other 11% Other Colleges Education Lodging 20% 29% 27% 7% Water/ Waste Food Sales/ Service 8% 10% Hospitals District Energy 10% 20% OfficeBuildings Government HealthCare 13% Source: Onsite Energy 21% 24% CHP Opportunity in Commercial & Institutional Sectors Potential: 75 GW Existing: 5 GW

  10. U.S. Lags Europe in Realizing CHP Opportunity

  11. EPA’s CHP Partnership • Voluntary program to foster accelerated development of CHP projects • EPA-Industry Partnership including -- Industrial, commercial and institutional endusers -- Project developers and equipment suppliers -- Local distribution utilities -- Federal, state, and local policymakers -- Nonprofits • Within Climate Protection Partnerships Division -- ENERGY STAR Label (enduse efficiency) -- New Clean Energy partnerships: CHP & Green Power

  12. EPA’s CHP Partnership: The Basics • Partners agree to • work with EPA to promote the benefits of CHP and support development of new projects • report data on existing and newly developed CHP projects • provide input to EPA-developed tools/services • employ tools/services to develop and promote new projects • EPA will • promote understanding/recognition of CHP benefits • with partner input, develop tools/services to accelerate project development and recognize partners’ projects

  13. Founding Partners Texaco Power and Gasification International Trigen Energy Co. U.S. Steel Verizon Communications Weyerhaeuser College of New Jersey NY State Energy R&D Authority (NYSERDA) UNC at Chapel Hill Abbott Laboratories Archer Daniels Midland Bethlehem Steel Caterpillar Energy Products Group Dow Chemical Co. ExxonMobil General Motors International Paper Real Energy Solar Turbines

  14. Founding Partners • Leading entities, diverse representation • Largest current CHP users: chemical, refining, steel and paper • Diverse end-users: industrial, commercial, district energy, and power reliability • Diverse stakeholders: end-users, equipment suppliers, project developers, and state agencies • > 5,800 GWs & >10% of U.S. CHP capacity • Annual environmental/energy benefits: > 8 million tons CO2 > 29,000 tons of NOX > 19 million barrels of oil

  15. Sample Tools/Services • Regulatory/Policy Support • Educate policymakers on CHP benefits and environmental policies for recognizing them • Permitting handbook and project-specific assistance • Web-based State Best Practices, links, and analysis • Public Recognition • ENERGY STAR CHP Awards • Ribbon-cutting ceremonies • Press kits

  16. Sample Tools/Services- Continued • Outreach/Education • Web-based partner profiles and case studies • Participation in regional CHP initiatives • Market Development • Web-based “yellow pages” for service/equipment providers • State profiles of CHP installations & opportunities • Technical • Emissions impact calculator

  17. Pilot Initiatives in Target Markets • Regional markets • NY/Northeast (NYSERDA) • IL/Midwest (Midwest CHP Initiative, MCA) • Texas (TNRCC) • End-user markets • Small/medium industry (gas/industry trades) • District energy (IDEA) • Hospitals, office buildings, & hotels (ENERGY STAR label for buildings)

  18. ENERGY STAR Buildings Label • Top 25% within Market Based Upon ENERGY STAR Benchmarking Tool (Btu/sq.-ft.) • Completed: office space, supermarkets and grocery stores, K-12 schools, and hospitals • Beta testing: hotels and convenience stores • http://www.energystar.gov • Click on “Benchmark your building’s energy performance”

  19. ENERGY STAR CHP Award • Recognize exceptional CHP facilities • Requires one year of operating data • Use 5% less fuel than state-of-the-art separate heat-and-power generation • http://www.epa.gov/appdstar/news.html

  20. Draft GuidanceSource Determinations for CHP • Under New Source Review and Title V Programs of the Clean Air Act • Clarifies treatment of third-party CHP facilities providing energy to host • 30-day comment period closes 11/14/01 • http://www.epa.gov/ttn/nsr/whatsnew.html

  21. Reactions. Input. Ideas.How Can EPA Contribute in Midwest? • Reactions to proposed products/activities • Ideas for new products/activities • Discussion of what would make a difference in midwestern CHP markets • Follow-up: Joe Bryson Team Leader U.S. EPA’s CHP Partnership (202) 564-9631 bryson.joe@epa.gov

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