The Impact of Air Quality Regulations on Distributed ... - NREL

TABLE OF CONTENTS
Executive Summary i
Chapter 1. Introduction and Methodology 1
1.1 INTRODUCTION......................................................................................................................1
1.2 APPROACH ............................................................................................................................1
1.3 KEY REGULATORY ISSUES ....................................................................................................2
1.4 KEY DG APPLICATIONS AND TECHNOLOGIES .......................................................................3
1.5 ORGANIZATION OF REPORT...................................................................................................4
Chapter 2. Overview <strong>of</strong> Distributed Generation 5
2.1 WHAT IS DISTRIBUTED GENERATION? ..................................................................................5
2.2 APPLICATIONS OF DISTRIBUTED GENERATION ......................................................................5
2.2.1 Combined Heat and Power 6
2.2.2 Waste and By-product Fuels 8
2.3 DISTRIBUTED GENERATION TECHNOLOGIES .........................................................................8
2.4 BENEFITS OF DISTRIBUTED GENERATION............................................................................10
2.4.1 Economic and Operational Benefits 10
2.4.2 <strong>Air</strong> <strong>Quality</strong> Benefits <strong>of</strong> DG 11
2.5 NOX CONTROL TECHNOLOGIES FOR DG .............................................................................17
2.5.1 Low-NOx Combustion Technologies 17
2.5.2 Post-Combustion NOx Control Technologies 17
Chapter 3. <strong>Air</strong> <strong>Quality</strong> Regulation <strong>of</strong> Power Generation in the United States 21
3.1 FEDERAL LAWS AND REGULATIONS APPLICABLE TO POWER GENERATION ........................21
3.1.1 Federal New Source Permits in Attainment Areas 24
3.1.2 Federal New Source Permits in Nonattainment Areas. 25
3.1.3 State Emission Permits for Minor New Source Review 25
3.2 STATE DISTRIBUTED GENERATION REGULATIONS ..............................................................25
3.2.1 California 25
3.2.2 Texas 27
Chapter 4. Findings 29
4.1 INTRODUCTION....................................................................................................................29
4.2 NO EMISSIONS CREDIT FOR CHP ........................................................................................30
4.3 NO CREDIT FOR AVOIDED OR DISPLACED EMISSIONS .........................................................31
4.4 COMPLEX CASE-BY-CASE PERMITTING PROCESS IS INCOMPATIBLE WITH THE APPLICATION
OF SMALL, STANDARDIZED DG TECHNOLOGIES ................................................................33
4.5 NO CONSIDERATION OF VERY HIGH UNIT COSTS OF STRINGENT EMISSION LIMITS FOR
SMALL, CLEAN GENERATORS.............................................................................................35
4.6 NO CREDIT FOR POLLUTION PREVENTION IN DETERMINATION OF CONTROL REQUIREMENTS
...........................................................................................................................................36
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