Va. is latest state to eye state-specific mercury reduction rules

Va. is latest state to eye state-specific mercury reduction rules

Washington (Platts)--10Nov2006

With the ball in its court after passage of springtime legislation mandating
emissions reductions, the Virginia Department of Environmental Quality is
crafting regulations to reduce mercury emissions from coal-fired power plants.

In April, the state's General Assembly passed legislation requiring electric
generating units to reduce sulfur dioxide, nitrogen oxide and mercury
emissions. While the legislation outlines what it wants for SO2 and NOx
reductions, it is vague on mercury reductions.

The legislation stipulates that electric generating units with a nameplate
capacity of more than 25 MW from January 2009 to January 2014 are collectively
allocated 36,074 short tons/year of NOx allowances and 15,994 st/year during
the NOx ozone season, which runs from May 1 through September 30.

From January 2010 to January 2014, they are allocated 63,478 st/year of SO2
allowances. Then, in January 2015, they are allocated 30,062 NOx allowances,
13,328 st and 44,435 SO2 allowances annually. The legislation also allows
utilities to participate in the Environmental Protection Agency's
cap-and-trade system.

No state-specific rules have been developed yet for mercury reduction, DEQ
spokesman Bill Haden told Platts on Thursday. Now, DEQ is taking public
comments on possible rules.

"At this point, it's fairly generic," Haden said. "Right now, we are asking
the public to look at what the General Assembly put together and tell us what
you think."

The legislation said that the number of mercury allowances set aside for new
sources shall not exceed 5% of the total state budget for each control period
during the first five years of the program and 2% thereafter beginning in
2009.

DEQ wants to know if part of the allowed mercury emissions should be set aside
for public-health considerations and whether to set aside a portion of the
emissions for new sources like renewable energy and if so, how to structure
it.

All comments must be received by 5 pm November 20.

Send comments to Mary Major, Environmental Program Manager, Office of Air
Regulatory Development, Department of Environmental Quality, P.O. Box 1105,
Richmond, VA 23218 or by e-mail: memajor@deq.virginia.gov.

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