| You will need Adobe Acrobat Reader, available as a free download, to view some of the files on this page. See EPA's PDF page to learn more about PDF, and for a link to the free Acrobat Reader. |
574KB PDF Version (16 pages)
Highlights
of Clear Skies in Maryland
- Maryland sources would reduce emissions of SO2 by 90%, NOx by
70%, and mercury by 69% by 2020 due to Clear Skies.
- The health benefits in Maryland would total $3.9 billion ($730
million under an alternative estimate) and include 500 fewer premature
deaths (300 under an alternative estimate) and 1,000 fewer hospitalizations/emergency
room visits for asthma.
- In addition, Maryland would receive significant environmental
benefits, including reductions in nitrogen deposition that would
benefit the Chesapeake Bay.
- Clear Skies does not significantly impact electricity prices.
With or without Clear Skies, electricity prices in the electricity
supply region that includes Maryland are expected to increase.
Clear Skies: An Innovative Approach to Improving Human Health
and the Environment
Why Clear Skies?
- Air quality has improved, but serious concerns persist
- Marylands citizens suffer ill effects from air pollution,
including asthma attacks and premature death
- Electricity generation sector remains a major emissions source
- Very cost-effective to control the power sector, relative
to other sources
- Sources are concerned about upcoming complex and burdensome
regulations
Advantages of the Clear Skies Approach
- Guarantees significant nationwide emissions reductions
beginning years before full implementation
- Maryland sources would substantially reduce emissions of SO2,
NOx, and mercury
- Delivers dramatic progress towards achievement of critical
health and environmental goals
- Uses proven, market-based flexible approach with incentives
for innovation
- Recognizes environmental needs as well as industry constraints,
allowing industry to better manage
its operations and finances while lowering risks to the public
- Sources are projected to install pollution controls to enable
continued reliance on coal
- Increases certainty across the board for industry, regulators,
and consumer
Under Current Clean Air Act Power Plants Would Face a Complex
Set of Requirements

For a larger image, click here.
Clear Skies Sets a Firm Timeline for Emission Reductions
| The existing Title IV SO2 cap-and-trade
program provides an incentive and a mechanism to begin reductions
upon enactment of Clear Skies years before regulatory action
under the current Act. |
2004: The NOx SIP call (summertime NOx cap in 19 Eastern
States + D.C.)
2008: Clear Skies NOx Phase I (2.1 million ton annual cap
assigned to two Zones with trading programs)
2010:
- Clear Skies Hg Phase I (26 ton annual cap with a national trading
program)
- SO2 Phase I (4.5 million ton annual cap with a national trading
program)
2018:
- Clear Skies NOx Phase II (1.7 million ton annual cap assigned
to two Zones with trading programs)
- Clear Skies Hg Phase II (15 ton annual cap with a national
trading program)
- Clear Skies SO2 Phase II (3.0 million ton annual cap with a
national trading program)
Emissions in Maryland under Clear Skies
|
Emissions in Maryland (2020) would be significantly reduced
from 2000 levels:
- 91% reduction in SO2 emissions
- 77% reduction in NOx emissions
- 71% reduction in mercury emissions
|
Emissions: Current (2000) and Existing Clean Air Act Regulations
(base case*) vs. Clear Skies in Maryland in 2010 and 2020
Note:
The base case using IPM includes Title IV, the NOx SIP Call, NSR
settlements, and state-specific caps in CT, MA, MO, NC, NH, TX,
and WI. It does not include mercury MACT in 2007 or any other potential
future regulations to implement the current air quality standards
or other parts of the Clean Air Act. Base case emissions in 2020
will likely be lower due to state and federal regulatory actions
that have not yet been promulgated.
Emission Reductions under Clear Skies
|
Emissions in Maryland and surrounding states would decrease
considerably. These emission reductions would make it much
easier for Maryland to comply with the national air quality
standards
|


Note: The base case
using IPM includes Title IV, the NOx SIP Call, NSR settlements,
and state-specific caps in CT, MA, MO, NC, NH, TX, and WI. It does
not include mercury MACT in 2007 or any other potential future regulations
to implement the current air quality standards or other parts of
the Clean Air Act. Base case emissions in 2020 will likely be lower
due to state and federal regulatory actions that have not yet been
promulgated. Emissions projected for new units in 2020 are not reflected.
Clear Skies Health Benefits in Maryland
Improve Public Health
| By 2020, Maryland would receive approximately
$3.9 billion in annual health benefits from reductions in fine
particle and ozone concentrations alone due to Clear Skies.(see
note 1) |
- Reduced ozone and fine particle exposure by 2020 would result
in public health benefits of:
- approximately 500 fewer premature deaths each year (see
note 1)
- approximately 300 fewer cases of chronic bronchitis each
year
- approximately 700 fewer non-fatal heart attacks each year
- approximately 1,000 fewer hospital and emergency room visits
each year
- approximately 63,000 fewer days workers are out sick due
to respiratory symptoms each year
- approximately 4,100 fewer school absences each year
- Reduced mercury emissions would reduce exposure to mercury through
consumption of contaminated fish, resulting in additional, unquantified
benefits for those who eat fish from Marylands lakes and
streams.
Counties Projected to Remain Out of Attainment with the PM2.5
and Ozone Standards in Maryland

1: Based on 1999-2001 data of counties
with monitors that have three years of complete data.
Note: The base case includes Title IV,
the NOx SIP Call, the Tier II, Heavy-Duty Diesel, and Nonroad Diesel
rules, final NSR settlements as of early spring 2003, and state-specific
caps in CT, MA, MO, NC, NH, TX, and WI. It does not include mercury
MACT or any other potential future regulations to implement the
current ambient air quality standards or other parts of the Clean
Air Act.
Clear Skies Would Help Maryland Meet Air Quality Standards
- Currently there is 1 county (Baltimore County) exceeding the
annual fine particle standard and 12 counties exceeding the 8-hour
ozone standard.
- Most of these counties are expected to be brought into attainment
under existing programs
- Clear Skies would significantly improve air quality in Maryland
further and more quickly than what is expected from existing programs,
bringing all remaining non-attainment counties into attainment
with both standards by 2020.
- By 2010, Clear Skies would bring Baltimore County (population
approximately 750,000) into attainment with the annual fine
particle standard.
- By 2020, Clear Skies would bring Harford County in Maryland
(population 220 thousand) into attainment with the 8-hour
ozone standard.
- In addition, Clear Skies would reduce ozone an fine particle
concentrations in counties throughout the state.
Note: Based on 1999-2001 data of
counties with monitors that have three years of complete data.
Clear Skies Environmental Benefits in Maryland
Clear Skies Would Provide Substantial Environmental Benefits
in Maryland
In comparison to existing programs,
- Visibility would improve perceptibly in Maryland.
- The value of improved visibility for Maryland residents
who visit National Parks and Wilderness areas throughout the
country would be $93 million each year by 2020.
- Sulfur deposition, a primary cause of acid rain, would decrease
by 30-60%.
- Oxidized nitrogen deposition to the Chesapeake Bay
watershed would be reduced by up to 20%.
- Chesapeake Bay States, including NY, VA, MD, PA, DE, WV
and DC, recently agreed to incorporate the nitrogen reductions
resulting from Clear Skies legislation as part of their overall
plan to reduce nutrient loadings to the Bay.
- Mercury deposition would decrease by 5-15% across much of the
state and up to 60% in some areas.
* These results are
based on modeling the Clear Skies mercury cap without the safety
valve.
Electricity Generation in Maryland under Clear SkiesCurrent and Projected Generation by Fuel Type in Maryland under
Clear Skies (GWh)
 |
Maryland's electricity growth is projected to be met
by increases in gas-fired and coal-fired generation. Clear
Skies does not significantly
alter this projection.
- Electricity from coal-fired generation will increase
by 18% from 1999 to 2020.
|
|
- Maryland's sources are projected to reduce their emissions
through the installation of emission controls, rather than
through a switch from coal to natural gas.
- In 2010, 82% of Maryland's coal-fired generation is
projected to come from units with advanced SO2 and/or
NOx control equipment that also substantially reduce mercury
emissions; in 2020, the percentage is projected to increase
to 94%.
|
Emission Controls in Maryland under Clear Skies
|
Under Clear Skies by 2020...
- 14% of coal-fired capacity would install SCRs
- 67% would install scrubbers
|
The major generation companies in Maryland
include:
- Constellation
- Mirant
- Allegheny Power
Total coal-fired capacity in Maryland is projected
to be 4,740 MW in 2010.
|
|
| Units in Maryland Projected
to Be Retrofitted Due to Clear Skies by 2020 |
| Plant Name |
Unit
ID |
Technology |
| C P CRANE |
1 |
Scrubber |
| C P CRANE |
2 |
Scrubber |
| CHALK POINT |
1 |
Scrubber* |
| CHALK POINT |
2 |
Scrubber* |
| DICKERSON |
1 |
Scrubber/SCR |
| DICKERSON |
2 |
Scrubber/SCR |
| DICKERSON |
3 |
Scrubber/SCR |
| HERBERT A WAGNER |
2 |
Scrubber/SCR |
| HERBERT A WAGNER |
3 |
Scrubber* |
| MORGANTOWN |
1 |
Scrubber* |
| MORGANTOWN |
2 |
Scrubber* |
|
Notes:
1. Retrofits and total coal-fired capacity apply to coal units
greater than 25 MW.
2. RP Smith unit 9 is projected to be removed from operation
by 2005 with Clear Skies due to excess gas-fired capacity in
the marketplace, unless otherwise needed for voltage purposes.
The recent overbuild of gas-fired generation reduces the need
for less efficient units operating at lower capacity factors.
These units are inefficient compared to other coal-fired plants
and newer gas-fired generation. Less conservative assumptions
regarding natural gas prices or electricity demand would create
a greater incentive to keep these units operational.
Electricity Prices in Maryland under Clear Skies
- With or without Clear Skies, retail prices in the
North American Electric Reliability Council (NERC)
MAAC region (the electricity supply region that contains
Maryland) are projected to increase between 2005 and
2020.
- With Clear Skies, retail prices are projected to
be approximately 2.1 4.2% higher between 2005
and 2020 than in the absence of the legislation
|


|
In 2000, the average retail electricity price in Maryland
was approximately 6.7 cents/kWh, which was the same
as the average national retail price of approximately
6.7 cents/kWh.
|
Note: The base case
using IPM includes Title IV, the NOx SIP Call, NSR settlements,
and state-specific caps in CT, MA, MO, NC, NH, TX, and WI.
It does not include mercury MACT in 2007 or any other potential
future regulations to implement the current air quality standards
or other parts of the Clean Air Act. Base case emissions in
2020 will likely be lower due to state and federal regulatory
actions that have not yet been promulgated. Costs and Benefits in Maryland under Clear
Skies
|
Clear Skies
.
- Guarantees significant emissions reductions
beginning years before full implementation
- Uses a proven and flexible market-based approach
with incentives for innovation.
- Increases certainty across the board for industry,
regulators, and consumers
|
Benefits Outweigh the Cost
- In Maryland, Clear Skies is projected to cost approximately
$305 million annually by 2020 while providing health benefits
totaling approximately $3.9 billion annually.
- The increases in production costs under Clear Skies represent
only a small percentage of total retail electricity sales
revenue in Maryland.
- Retail electricity sales revenue in Maryland was almost
$4.1 billion in 2000.
- Adjusting these sales revenues by the same growth
rate used for the modeling of costs would result in
revenues of over $6.3 billion annually in 2020.
- Nationwide, the projected annual costs of Clear Skies
(in $1999) are $4.3 billion in 2010 and $6.3 billion in
2020; the nationwide benefits of Clear Skies are expected
to be over $113 billion annually by 2020.
Note: Costs include
capital costs, fuel, and other operation and maintenance costs
(both fixed and variable) associated with the achievement
of the emissions caps in the legislation (for example, the
installation and operation of pollution controls). These state-level
production costs are estimates; they do not account for the
costs associated with the transfer of electricity across regions,
nor the costs or savings that could be associated with allowance
movement between sources.
Notes on EPA's Analysis
-
The information presented in this analysis
reflects EPA's modeling of the Clear Skies Act of 2003.
- EPA has updated this information to reflect modifications:
- Changes included in the Clear Skies Act of 2003.
- Revisions to the Base Case to reflect newly
promulgated rules at the state and federal level
since the initial analysis was undertaken.
- The Clear Skies modeling results presented include
the safety valve feature
-
This analysis compares new programs to
a Base Case (Existing Control Programs), which is typical
when calculating costs and benefits of Agency rulemakings.
- The Base Case reflects implementation of current
control programs only:
- Does not include yet-to-be developed regulations
such as those to implement the National Ambient
Air Quality Standards.
- The EPA Base Case for power sector modeling includes:
- Title IV, the NOx SIP Call, NSR settlements,
and state-specific caps in Vermont, Massachusetts,
Missouri, Vermont, North Carolina, Texas, and
Wisconsin finalized before March 2003.
- For air quality modeling, the Base Case also includes
federal and state control programs, as well as the
Tier II, Heavy Duty Diesel, and Non-Road Diesel rules.

State information based on EPA's modeling of the
Clear Skies Act of 2002 is presented here for archival
reasons.
|
1. Retrofits
and total coal-fired capacity apply to coal units greater
than 25 MW.
2. RP Smith
unit 9 is projected to be removed from operation by 2005 with
Clear Skies due to excess gas- fired capacity in the marketplace,
unless otherwise needed for voltage purposes. The recent overbuild
of gas- fired generation reduces the need for less efficient
units operating at lower capacity factors. These units are
inefficient compared to other coal- fired plants and newer
gas- fired generation. Less conservative assumptions regarding
natural gas prices or electricity demand would create a greater
incentive to keep these units operational.

top
|
|