U.S. EPA’s CHP Partnership:

Supporting CHP in the Midwest

Midwest Cogeneration Association Bimonthly MeetingNovember 28, 2001

Joe BrysonTeam Leader, CHP Partnership, U.S. EPA

OverviewOverview

• 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

Bush’s National Energy PolicyMay 2001Bush’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

National Energy & Environmental ChallengesNational Energy & Environmental Challenges

• Energy Challenges– Reliable– Low-cost– National security

• Environmental Challenges– Human health– Local/regional environment– Global environment

CHP CharacteristicsCHP 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

Efficiency of U.S. Electricity Generation Is Low and StagnantEfficiency 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

Large CHP Opportunity Still ExistsLarge CHP Opportunity Still Exists

0

20

40

60

80

100

10 25 50 100 200 300 400 500 1000 >1,000

SaturationOpportunity

%

Steam Draw (1000 lbs/hr)

10MW 1 100

Source: General Electric

Existing : 48 GW Potential: 88 GW

Existing : 48 GW Potential: 88 GW

Chemicals29%

Paper 16%Refining 13%

Food 9%

Metals 5%

Other Industrial

19%

Commercial & Institutional 9%

CHP Opportunity in Industrial Sector

Paper30%

Refining13%

Chemicals11%

Food9%

Metals8%

Other Industrial29%

CHP Opportunity in Commercial & Institutional Sectors CHP Opportunity in Commercial & Institutional Sectors

Colleges29%

District Energy20%Government

13%

Hospitals10%

Water/Waste

8%

Other20%

Source: Onsite Energy

Existing: 5 GW

Education27%

Health Care24%

Office Buildings21%

Food Sales/Service 10%

Lodging7%

Other11%

Potential: 75 GW

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

0% 5% 10% 15% 20% 25% 30% 35% 40%

Denmark

Finland

Netherlands

Czech Republic

Germany

Portugal

Hungary

Italy

Poland

Spain

United States

Sweden

United Kingdom

France

EPA’s CHP PartnershipEPA’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

EPA’s CHP Partnership: The BasicsEPA’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

Founding PartnersFounding Partners

Abbott Laboratories

Archer Daniels Midland

Bethlehem Steel

Caterpillar Energy Products Group

Dow Chemical Co.

ExxonMobil

General Motors

International Paper

Real Energy

Solar Turbines

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

Founding PartnersFounding 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

Sample Tools/ServicesSample 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

Sample Tools/Services- ContinuedSample 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

Pilot Initiatives in Target MarketsPilot 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)

ENERGY STAR Buildings LabelENERGY 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”

ENERGY STAR CHP AwardENERGY 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

Draft GuidanceSource Determinations for CHPDraft 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

• 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

Reactions. Input. Ideas.How Can EPA Contribute in Midwest?Reactions. Input. Ideas.How Can EPA Contribute in Midwest?