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Policy Options for Clean Air and Sustainable Energy in Texas

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Policy Options for Clean Air and Sustainable Energy in Texas Policy Options for Clean Air and Sustainable Energy in Texas January 2009 Prepared by: Daniel Cohan Birnur Buzcu-Guven Daniel Hodges-Copple Rice University Dan Bullock Ross Tomlin Houston Advanced Research Center Prepared for: Texas Business for Clean Air ii Acknowledgements The authors thankfully acknowledge the valuable contributions of Mr. Oviea Akpotaire. iii This page intentionally left blank. iv Table of Contents LIST OF TABLES ...................................................................................................................................................VII LIST OF FIGURES ............................................................................................................................................... VIII POLICY OPTIONS FOR CLEAN AIR AND SUSTAINABLE ENERGY IN TEXAS: ..................................X EXECUTIVE SUMMARY ........................................................................................................................................X CHAPTER 1 ................................................................................................................................................................1 THE AIR QUALITY CHALLENGE IN TEXAS ....................................................................................................1 1.1 OZONE ................................................................................................................................................................1 1.1.1 Ozone formation .........................................................................................................................................1 1.1.2 Impacts of Ozone .........................................................................................................................................4 1.1.3 Ozone Non-attainment, Controls, and Consequences ................................................................................5 1.2 PARTICULATE MATTER ......................................................................................................................................8 1.2.1 PM Composition and Source Apportionment in Texas ..............................................................................8 1.2.2 Impacts of Particulate Matter ...................................................................................................................10 1.2.3 PM Trends and Potential Reductions .......................................................................................................10 1.3 MERCURY ..........................................................................................................................................................12 1.3.1 Concentrations of mercury in Texas watersheds and fish .........................................................................12 1.3.2 Emissions and transport of mercury - role of power plants ......................................................................13 1.3.3 Impacts of Mercury ...................................................................................................................................14 1.3.4 Current efforts to control mercury emissions ...........................................................................................15 1.4 CLIMATE CHANGE ............................................................................................................................................15 1.4.1 Expected impacts of climate change in Texas............................................................................................15 1.4.2 Texas contribution to climate change ........................................................................................................16 CHAPTER 2 ..............................................................................................................................................................18 THE ELECTRICITY CHALLENGE IN TEXAS ..................................................................................................18 2.1 ELECTRICITY CONSUMPTION IN TEXAS ............................................................................................................18 2.2 ELECTRICITY SUPPLY IN TEXAS ........................................................................................................................20 2.2.1 Transmission and Distribution .................................................................................................................24 2.3 AIR POLLUTION FROM ELECTRIC GENERATION ..............................................................................................25 2.3.1 Power plant emissions ...............................................................................................................................25 2.3.2 Emission control technologies ...................................................................................................................28 2.4 PROJECTED SUPPLY AND DEMAND ...................................................................................................................30 2.4.1 ERCOT projections for demand and supply .............................................................................................30 2.4.2 Planned Electricity Generation Capacity in Texas ...................................................................................31 CHAPTER 3 ..............................................................................................................................................................36 TECHNOLOGIES FOR ADDRESSING THE ENERGY-AIR QUALITY CHALLENGE ...........................36 3.1 ENERGY EFFICIENCY AND CONSERVATION ......................................................................................................36 3.2.1 Status of Technology .................................................................................................................................39 3.2.2 Cost ...........................................................................................................................................................40 3.2.3 Wind power potential in Texas .................................................................................................................41 3.3 SOLAR POWER ..................................................................................................................................................44 v 3.3.1 Status of Technology .................................................................................................................................44 3.3.2 Cost ...........................................................................................................................................................45 3.3.3 Solar Potential for Texas ...........................................................................................................................46 3.4 OTHER RENEWABLE ENERGY SOURCES ............................................................................................................47 3.4.1 Geothermal Power .....................................................................................................................................47 3.4.2 Energy from Biomass ................................................................................................................................48 3.5 DEMAND RESPONSE .........................................................................................................................................49 3.6 COMBINED HEAT AND POWER /C OGENERATION ............................................................................................50 3.6.1 Technology ................................................................................................................................................50 3.6.2 Current and potential use of CHP in Texas ..............................................................................................51 3.6.3 Impacts on Energy and Environment .......................................................................................................51 3.7 AIR POLLUTANT EMISSION CONTROLS ...........................................................................................................52 3.8 CARBON CAPTURE AND STORAGE ...................................................................................................................53 Current status of CCS technology .....................................................................................................................53 Costs and the technical and economic potential of CCS ....................................................................................53 3.9 COMPARISON OF OPTIONS ...............................................................................................................................54 3.9.1 Cost-effectiveness for electricity generation ..............................................................................................54 3.9.2 Cost-effectiveness for peak power ..............................................................................................................57 3.9.3 Cost-effectiveness for emissions reductions ...............................................................................................59 CHAPTER 4 ..............................................................................................................................................................60 POLICY OPTIONS FOR ADDRESSING THE ENERGY – AIR QUALITY CHALLENGE .......................60
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