2015 Environmental Report
Transcription
2015 Environmental Report
20 15 Environmental Sustainability Report Five Points, a retail and entertainment district near the University of South Carolina in Columbia, S.C., is one of many vibrant communities where SCE&G provides customers with electricity and gas. A Message to Our Friends and Community Members As an energy company, we are focused on building, operating and maintaining the electric and natural gas infrastructure needed to provide our customers with safe, reliable service. I believe we do a tremendous job at that. But what really distinguishes us as a leader in the energy industry is our people, and their commitment to doing what’s right. We are committed to demonstrating environmental stewardship, and ensuring that natural resources are preserved for future generations. We are committed to supporting the communities we serve through philanthropy and volunteerism. We are committed to complying with the many local, state and federal regulations that pertain to our business. And we are committed to communicating in an open, transparent manner, to ensure our customers and other stakeholders understand what we’re doing, how we’re doing it, and why. I am pleased, then, to share the following report with you, which we hope will provide more insight into our company’s unrelenting commitment to building a clean, safe and reliable energy future for the customers we serve. Thank you, Kevin Marsh Chairman and Chief Executive Officer, SCANA Corporation If severe weather strikes, SCE&G crews are ready to respond, serving customers by safely and quickly restoring power. Contents Letter from the Chairman/CEO 1 Company Profile 3 Balanced Energy Solutions Nuclear 4 Fossil Fuels 4 Nuclear Offers Energy Diversity, Reliability 6-7 Environmental Footprint Air Greenhouse Gases Air Emission Challenges Life After Coal: Urquhart Station Water Recycling Nuclear Safety U.S. EPA Toxic Release Inventory Clean Power Plan 8 8 10-11 12-13 14 14-15 16 16 17 Conserving Resources for the Future Solar Energy Customer-Scale Solar Community Solar Utility Solar SCE&G Energy Innovation Center Home Energy Check-ups Neighborhood Energy Efficiency Program Small Business Energy Solutions Program SCE&G Unveils First Utility-Scale Solar Facility 18 18 18 18 18 19 19 19 20-21 Commitment to Our Community UNC Jaycee Burn Center South Carolina Aquarium Camp Leopold Riverbanks Zoo One80 Place Sustaining Our Seniors of S.C. USS Yorktown Foundation SCE&G Responds to 1,000-Year Flood 22 22 23 23 24 25 25 26-27 SCANA Environmental Policy SCANA employees had the top fundraising team for the American Heart Association’s 2015 Midlands Heart Walk. Each year, the company gives away tree seedlings as part of its Lake Murray Shoreline Habitat Enhancement Project. 2015 | SCANA 28Environmental Sustainability Report | 2 While fostering economic activity near its Cayce, S.C. headquarters, SCANA has helped to preserve the rich Native American, Colonial and Confederate histories of the area. Company Profile Headquartered in Cayce, S.C., SCANA is an energy-based holding company principally engaged in electric and natural gas utility operations and other energy-related businesses. The company serves approximately 698,000 electric customers in South Carolina and more than 1.3 million natural gas customers in South Carolina, North Carolina and Georgia. SCANA’s primary subsidiaries include: South Carolina Electric & Gas PSNC Energy SCANA Energy SCE&G is a regulated public utility engaged in the generation, transmission, distribution and sale of electricity to approximately 698,000 customers in 24 counties in the central, southern and south-western portions of South Carolina. The company also provides natural gas service to approximately 347,000 customers in 35 counties in the state. Headquartered in Gastonia, N.C., PSNC Energy is a regulated public utility engaged primarily in purchasing, transporting, distributing and selling natural gas to approximately 534,000 residential, commercial and industrial customers in a service area covering 12,000 square miles in the north central, Piedmont and western regions of North Carolina. As a leading certified natural gas marketer in Georgia since 1998, SCANA Energy serves approximately 450,000 residential, commercial and industrial customers statewide. SCANA Energy remains the second largest natural gas marketer in Georgia. 2015 | SCANA Environmental Sustainability Report | 3 Balanced Energy Solutions Key Highlights • Nuclear facilities in construction will reduce SCE&G’s greenhouse gas (GHG) emissions. • Moving rapidly to drop emissions of sulfur dioxide and nitrogen oxides and other pollutants SCE&G and its partner place the 2.4-million pound CA01 module that will house a number of major components in the first of two new nuclear units at V.C. Summer Station. The module is a multi-compartment steel structure within the Unit 2 containment vessel. SCE&G’s energy portfolio includes a diverse mix of electricity generation. This strategy relies upon increasing amounts of non-GHG emitting nuclear and renewable electric generation, as well as existing fossil-fuel fired plants with proven emissions controls. SCE&G, PSNC Energy and SCANA Energy also provide clean, efficient natural gas to consumers throughout South Carolina, North Carolina and Georgia. Nuclear Fossil Fuels Nuclear power is important to fulfill South Carolina’s growing energy needs. In 2012, SCE&G began to retire six coal-fired generating units at three locations. These units represent approximately 730 megawatts of coal-fired generation that will be retired or converted to clean-burning natural gas. In late 2012, Unit 3 at the Urquhart Plant near North Augusta discontinued burning coal and instead now burns natural gas. In 2012 and 2013, three coal units at Canadys Station near Walterboro were permanently closed. The two units, located at the McMeekin Plant in Irmo, will convert from coal to natural gas in April 2016. Two of SCE&G’s remaining coal plants, Cope & Williams Stations, year after year, are ranked in the 20 most efficient coal plants in the United States. More than half of the electricity currently produced in South Carolina comes from nuclear power, and SCE&G’s V.C. Summer Nuclear Station Unit 1 near Jenkinsville, South Carolina, has been providing power safely and reliably for three decades. In order to meet the future energy needs of our customers in South Carolina, SCE&G, in partnership with Santee Cooper, is building two new units at V.C. Summer Nuclear Station. When Units 2 and 3 are completed and online, SCE&G will have lowered carbon emissions to approximately 46 percent of its 2005 levels and is expected to produce approximately 60 percent of its system electricity from sources without GHG emissions. This energy will be critical for serving the needs of customers and the economic development of the state. Nuclear power is the best option available today to provide reliable, large-scale electricity production without emitting greenhouse gases. With the planned retirement of these coal units and the addition of its two new nuclear units, SCE&G anticipates that the available electric generation will be a balanced mix of nuclear, coal and gas. These changes will help the company meet the increasingly stringent environmental regulations facing the industry and should position SCE&G to be a leader in non-emitting generation. 2015 | SCANA Environmental Sustainability Report | 4 2021 Projected Generation Mix 2015 Generation Mix 3.6% 24% Non-emitting 1.6 % 3% 2% 60% Non-emitting 2% 19.9% 34.1 % 55% 40.8% 18% 20% Note: The “Generation Mix” charts (above) show the relative amounts of electricity generated at SCE&G by each fuel source. The 2015 chart shows the amounts actually generated in that year. The 2021 chart shows the predicted use of fuels to generate electricity. For example, coal plants generated 40.8% of SCE&G’s 2015 electricity, but are expected to produce only 20% of 2021’s generation. NUCLEAR HYDRO BIOMASS NATURAL GAS COAL SOLAR ALT. SOURCES 2021 Capacity Mix 12% 29% 26% 3% 30% Note: The “Capacity Mix” chart (right) shows the capability of SCE&G’s generation sources, and the diversity of fuels available in the future. “Alternate Sources” refers to the sum of solar and biomass capacity. 2015 | SCANA Environmental Sustainability Report | 5 Nuclear Offers Energy Diversity, Reliability V.C. Summer Station Unit 1 has been providing safe and reliable nuclear power to customers since 1984. Construction of Units 2 and 3 at V.C. Summer Nuclear Station in Fairfield County, S.C., continues at a steady pace. The guaranteed substantial completion dates of the new units are August 2019 and August 2020 to serve customers alongside already operational V.C. Summer Unit 1. Together, the nuclear units will provide a clean, safe and reliable source of power to serve South Carolina’s growing energy needs for decades to come. When the new units are complete, SCE&G’s generation mix will be about 30 percent nuclear, 30 percent natural gas, and 30 percent scrubbed coal, with the balance in hydro, solar and biomass. Approximately 60 percent of SCE&G’s generation will be non-emitting. Steve Byrne, president of generation and transmission and chief operating officer for SCE&G, recently talked with the Nuclear Energy Institute about the importance of nuclear energy for energy diversity. Below is an excerpt from that Q&A session, and the full article is available at this link: http://ow.ly/Y7LcR Q: How does SCANA define energy diversity? Byrne: We define energy diversity as having a diverse set of energy options and the fuel sources to go with it. For us, energy diversity is fuel diversity because, in the final analysis, we are making electricity for our customers. Now, when you are operating at peak demand—when it’s really cold in the wintertime and really hot in the summertime—chances are you’re going to be running all of your available resources, but when you’re off-peak, you really have options as to what to run. So you dispatch those, based either on economic or environmental considerations. More and more, the economic dispatch is becoming the environmental resource. So what we want to do is swap to the fuel source that is favorable economically and environmentally. We certainly see nuclear as an environmentally friendly option. We like the clean power aspect of nuclear. We also like the baseload aspect of nuclear. When you build a fleet, you want to see a variety of different types of generators. Some generators are good for baseload power; certainly, nuclear does that. There are other generators that provide intermediate power and others that provide peaking power. The peaking power plants you would not run until it is really hot or really cold. The peaking plants just shave those peaks. They are less efficient—either oil or natural gas generators. Natural gas can act in any capacity. The combined cycle natural gas units can run in a baseload capacity. Whether it makes sense to run a natural gas unit as baseload really depends on the cost of gas. Coal and nuclear plants generally will be baseload. Renewable energy is self-dispatching—when the wind blows or the sun shines, those generators make electricity. The challenge for us, and the challenge for most utilities, is how to compensate for the self-dispatching nature of renewables. In our case, we have hydro capabilities and a pumped storage facility, so we will pump up a lake to store energy when renewables are plentiful. 2015 | SCANA Environmental Sustainability Report | 6 To see construction progress in action, view SCE&G’s latest nuclear construction updates at YouTube.com/scegnews. Q: Does SCANA consider energy diversity an actual value to be pursued or a more abstract principle to be considered after other factors are weighed? Byrne: We absolutely consider fuel diversity to be real. That is one of the reasons we’re building out our nuclear assets at V.C. Summer. Those new AP1000 reactors will be able to follow load better than the existing nuclear fleet. Once we’ve built out those facilities, our mix of fuel sources will be about 30 percent coal, 30 percent natural gas and 30 percent nuclear. The remainder is going to be hydro and renewables. The first of two steam generators for unit 2 arrived at SCE&G’s V.C. Summer AP1000 construction site Jan.4, 2015. The component was sent from the Port of Charleston by rail on the specially designed Schnabel car. The steam generator weighs 1,373,480 pounds, is 20 feet in diameter, and almost 82 feet long. 2015 | SCANA Environmental Sustainability Report | 7 Environmental Footprint Key Highlights Since 2005: • Greenhouse Gas (GHG) emissions down 30 percent • Reduced system-wide total NOx emissions by 78 percent •SO2 emissions down by 95 percent Wateree Station, which uses scrubbers to reduce SO2 emissions, is one of the three coal-fired units owned by SCE&G. All of SCE&G’s fossil and hydroelectric generating plants are ISO 14001 Environmental Management System registered. SCANA is sensitive to the impact of its operations to the air, water and land. Air SCE&G’s investment in clean air technologies has been a high priority. Since 1994, SCE&G has spent more than $1.1 billion in system and equipment additions to reduce emissions at its coal-fired plants, including $970 million in systems to reduce air emissions. Nitrogen Oxides To reduce NOx emissions, SCE&G has equipped all of its natural gas plants with low-NOx burners and installed state-of-the-art selective catalytic reduction (SCR) equipment at its three largest coal plants — Wateree Station in Eastover, S.C.; Williams Station in Charleston, S.C.; and Cope Station near Orangeburg, S.C. Through these investments, SCE&G has reduced NOx emissions by about 78 percent across our system since 2005. Once the new nuclear units come online, SCE&G’s total nitrogen oxide emissions are expected to have decreased by more than 88 percent from 2005 levels. Sulfur Dioxide SCE&G has installed scrubbers to reduce SO2 emissions produced during the coal combustion process at Cope, Wateree and Williams Stations. The company is scheduled to fuel McMeekin Station with natural gas beginning in 2016, which will further reduce SO2 emissions. Through these efforts, and the construction of two new nuclear units, SCE&G expects to reduce SO2 emissions by about 98 percent from 2005 levels. Greenhouse Gases Reducing the nation’s carbon footprint is an increasing priority of the environmental regulatory policies in the United States. With the addition of two new nuclear units, SCE&G is on track to lower carbon emissions by approximately 56 percent from 2005 levels. New nuclear power is expected to enable SCE&G to produce approximately 60 percent of its electricity from non-GHG emitting sources. 2015 | SCANA Environmental Sustainability Report | 8 NOx Emissions SO2 Emissions CO2 Emissions 2021 2.3 5.1 2015 2014 16.8 2021 631 2015 1136 2014 1230 2013 1135 2012 1222 2005 1447 Measured in lbs/MWh 2021 8.5 2015 13.5 2014 14.6 2013 13.2 2012 15.6 2013 19.3 CO2 Intensity Measured in millions of tons 2005 19.2 2012 27.9 2005 108.1 Measured in thousands of tons 2021 3.2 2015 5.8 2014 7.6 2013 7.0 2012 9.2 2005 26.9 Measured in thousands of tons Projected 2015 | SCANA Environmental Sustainability Report | 9 Air Emission Challenges On July 6, 2011, the Environmental Protection Agency (EPA) issued the Cross-State Air Pollution Rule (CSAPR) to reduce emissions of nitrogen oxides (NOx) and sulfur dioxide (SO2) from power plants in the eastern half of the United States. CSAPR requires a total of 28 states to reduce annual SO2 emissions, annual NOx emissions and/or ozone season NOx emissions to assist in attaining the 1997 ozone and fine particle National Ambient Air Quality Standards (NAAQS). The rule establishes an emissions cap for SO2 and NOx for each utility within the 28 states. It is expected that coal-fired generators will need to have a combination of flue gas desulfurization, selective catalytic reduction and fabric filters in order to comply with the standards. SCE&G generation is in compliance with the allowances set by CSAPR. Air quality control installations that SCE&G has already completed have positioned the company to comply with the rule. The first of these rules amends the new source performance standards (“NSPS”) for EGUs and will establish the first NSPS for GHG emissions. Carbon dioxide emissions from natural gas-fired EGUs are limited to 1,000 lbs CO2/MWh. Coal-fired EGUs carbon dioxide emissions are limited to 1,400 lbs. CO2/MWh. The company has no plans to add new coal-fired generation. The Mercury and Air Toxics Standard (MATS) rule set numeric emission limits for mercury, toxic metals and acid gases. MATS became effective on April 16, 2012, and compliance with MATS was required by April 2015. After receiving numerous petitions for reconsideration of this rule, on Nov. 19, 2014, the EPA modified the MATS provisions applicable during startup and shutdown. SCE&G initially applied for and received a one-year extension from SCDHEC for both McMeekin and Canadys. With the retirement of Canadys in the fourth quarter of 2013, only McMeekin has a waiver that allowed the continued use of coal until April 2016. Due to the additional requirements of the reconsideration rule issued in late 2014, extensions were also granted by SCDHEC for Cope, Wateree, and Williams Stations. These extensions, which also expire in April 2016, allow time to install additional pollution control devices that will enhance the control of certain MATS-regulated pollutants. In August 2015, the EPA issued two rules addressing the emission of greenhouse gases from electric generating units (EGU), one for existing units and one for new or modified units. These rules were issued in response to the President’s June 2013 Climate Action Plan. The second rule published in August 2015, was issued under the authority of Section 111(d) of the Clean Air Act and governs existing power plants. The EPA has determined a “Best System of Emissions Reduction” (BSER) for these existing plants. The BSER includes three “Building Blocks,” including heat rate reduction at coal-fired plants, redispatch of electric generation from coal to natural gas plants, and substituting zero-emission generation for existing coal-fired plants. The final rule differs from the 2014 proposed rule, which did not give proper credit to new nuclear units being constructed in South Carolina and several other states. The August 2015 final rule does give proper credit to those nuclear units. 2015 | SCANA Environmental Sustainability Report | 10 Cope Station and Jasper Generating Plant (pictured here) were built with closed-cycle cooling systems to help minimize their water usage. Using this BSER, the EPA established targets for each state covered by the 111(d) rule and has proposed various pathways for each state to comply with those targets. Those pathways include rate-based compliance plans, wherein each EGU would be required to meet an emission rate target. Alternatively, a state may select a mass-based compliance plan, in which an EGU would be allocated a CO2 cap. In both the rate and mass-based plans, EGUs would have the opportunity to purchase credits or allocations to assist in meeting those targets. SCE&G has no plans to add new coal-fired generation but is currently constructing two new nuclear generation units. The new nuclear credit in addition to the company’s plans to add renewables and energy efficiency measures are expected to help it achieve compliance with the Clean Power Plan. However, it is not known what specific measures and requirements may be promulgated in the final State Implementation Plan. Currently, there is a Supreme Court stay of the Clean Power Plan, so the next compliance steps for South Carolina and SCE&G are not certain. 2015 | SCANA Environmental Sustainability Report | 11 Urquhart Station began burning natural gas exclusively in 2012, allowing the plant to demolish and remove its coal-handling equipment. Life After Coal: A Visible Transformation at Urquhart Station Urquhart Station began operating in 1953 as a coal-fired generating station in Beech Island, S.C., and remained a key part of SCE&G’s coal fleet for half a century. But over time, coal is being replaced as a fuel as regulators and utilities seek to reduce greenhouse gas emissions. In 2002, the coal-fired boilers on Urquhart Units 1 and 2 were retired, and the units were repowered to burn natural gas with the installation of two gas turbines and heat recovery steam generators. This reduced the plant’s emissions and helped SCE&G meet emissions requirements. Then, in 2012, Urquhart Unit 3 began burning natural gas exclusively, again reducing the company’s emissions and ending the plant’s use of coal. Until recently, despite a dramatic transformation in how it generates electricity, Urquhart Station’s years as a coal plant were still visible to the eye, especially on the exterior. But over the last several years, through a series of projects completed in 2015, the landscape has significantly changed. After the plant stopped burning coal, it was time to decommission the retired coal yard, said Ray Ammarell, an engineer with SCE&G’s Fossil Hydro group. “It needed to be cleared, and the coal handling system demolished, so it wouldn’t become a deteriorating problem,” Ammarell said. “There were transfer towers, coal unloading equipment, railroad spur line – all the things we once needed to run a coal plant.” The space where a railroad once stood for coal delivery now serves as a pathway between different areas of the plant’s campus. As the clearance was in process, SCE&G’s Fossil Hydro group decided it was also the right time to enhance the plant’s oil-containment infrastructure to reduce the potential for 2015 | SCANA Environmental Sustainability Report | 12 Pictured on this page starting at the bottom: The coal receiving area and railroad spur were removed in stages, eventually leaving a grassy field as shown in the top photo on page 12. spillage into the nearby Savannah River. By redesigning containment ponds and diverting storm water runoff, SCE&G has prepared Urquhart Station to limit its impact to soil and groundwater into the future. Dave Jerome, Urquhart Station plant manager, said the inside of the main building looks much the same as it always has, but those who work there every day know the difference. “It’s certainly a different plant now to people who have worked here for 25 years,” Jerome said. “And if you look where the coal yard used to be, that’s radically different. It’s a flat area with green grass growing.” Jerome said the plant continues to look toward the future in terms of upgrades and improvements. “We’re still a valuable generating asset and we’re happy to be that, and we will likely be a valuable generating asset for years to come,” Jerome said. “We’re happy to still be here and be a part of SCE&G’s generation portfolio.” With fields of grass where coal yards once were, and a footpath where rail cars once parked, Urquhart Station stands as an example of SCE&G’s commitment to protect the environment while delivering safe, reliable electricity to customers. 2015 | SCANA Environmental Sustainability Report | 13 Water Today, SCE&G’s fossil-fuel plants are withdrawing 125 billion fewer gallons of water each year than just five years ago thanks to water conservation efforts, the use of closed cooling and plant retirements. SCE&G’s newest plants, Cope Station and Jasper Generating Plant, were built with closed-cycle cooling systems. The Cope plant also primarily draws its water from groundwater sources, reducing demand on the South Fork Edisto River. The two new units being built at the V.C. Summer Nuclear Station will also have closed-cycle cooling systems. SCE&G’s Wateree Station installed a closed-cycle cooling system that has reduced the need to withdraw water from the Wateree River by nearly 90 percent since 2005. Plant Water Withdrawals for Coal, Natural Gas & Nuclear Generating Units Measured in billions of gallons In October 2011, SCE&G and the South Carolina Department of Health and Environmental Control entered into an agreement regarding ash storage at Wateree Station. To fulfill our obligation, SCE&G has installed systems at Wateree to be able to handle ash in a dry manner and send it directly to recycling or a landfill without discharge to an ash pond. The company also began work in 2012 to remove ash from the pond - work that started well before the Coal Combustion Residual (CCR) rule required that work to take place. To date, more than 875,000 tons of ash has been removed. Standards for Water In May 2014, the EPA published the Intake Structures Rule (316(b)), which requires the use of “best technology available” at cooling water intake structures to help minimize impact to aquatic life. SCE&G is well positioned to meet this rule through the use of closed-cycle cooling towers at Jasper Generating Plant, Cope, Wateree, and V.C. Summer Units 2 and 3. At V.C. Summer Unit 1, cooling water is withdrawn from Lake Monticello, which was designed and intended to be a dedicated source of cooling water for this unit. At Urquhart and Williams Stations, SCE&G has begun studies of the cooling water systems, to determine what, if any, changes to water withdrawal are needed. 2014 470 2015 452 2013 529 2012 531 2010 578 2011 526 On September 30, 2015, the EPA amended the Effluent Limitation Guideline for Steam Electric Power Generators. The standards under this rule were set to match the “Best Available Technology” for wastewater produced at this type of electric generating facilities. The most significant and difficult water to treat is flue-gas desulfurization (FGD) wastewater. FGD wastewater is generated at Wateree and Williams Stations. Under the Clean Water Act, compliance with applicable limitations is achieved under State-issued National Permit Discharge Elimination System (NPDES) permits. Now that the rule is effective, state environmental regulators will modify the NPDES permits to match more restrictive standards, thus requiring utilities to retrofit each facility with new wastewater treatment technologies. Compliance dates will vary by type of wastewater and some will be based on a plant’s five-year permit renewal cycle and thus may range from 2018 to 2023. Based on the proposed rule, SCE&G expects that wastewater treatment technology retrofits will be required at Williams and Wateree at a minimum. 2015 | SCANA Environmental Sustainability Report | 14 Recycling Ongoing recycling efforts help SCANA and its subsidiaries reduce impact on the environment. These initiatives include the recycling of used oil and coal combustion residuals (CCR). SCE&G’s used oil recycling program, Power Production Opportunities with Energy Recovery (P2POWER Program), accepts oil from SCE&G operations and consumes it as fuel for SCE&G power plants to reduce the amount of coal burned. Each year, the company combusts, or sells to others for recycle, approximately 275,000 gallons of used oil to help generate energy, saving approximately 1,500 tons of coal. Beneficial Use of CCR SCE&G’s plants consume about 4.6 million tons of coal per year, yielding approximately 600,000 tons of CCRs annually. CCRs are the materials produced from the combustion of coal in electric power plants. CCRs include coal ash (which includes bottom and fly ash) and gypsum. CCRs can be used for a variety of construction and building purposes, including wallboard, brick, block, concrete and cement. CCRs used in construction products save significant Annual CCR Management Measured in thousands of tons quantities of construction raw materials and enable SCE&G to save 400,000 to 500,000 cubic yards of landfill space each year. Every ton of CCR used as a direct replacement for cement in concrete eliminates the creation of approximately one ton of carbon dioxide. Local market demand, price and availability of competing raw materials, and transportation costs limit the ability to recycle more at this time. Closely Managing Coal Combustion Residuals The management of coal combustion residuals among utilities has come under recent scrutiny, and in April 2015, the EPA published a rule that will change how CCRs are managed. SCE&G controls CCRs in permitted facilities that comply with all standards, and we are installing technology to provide additional safeguards. The newly constructed dry landfills at the Williams, Wateree and Cope plants meet all CCR Rule requirements and use the most up-to-date storage technology. SCE&G has permanently closed landfills at Urquhart and McMeekin Stations. The in-ground ponds at Canadys Station will also be closed as soon as practical. CCRs delivered for Beneficial Use 2010 117 273 2011 178 307 2012 213 354 2013 223 407 2014 192 387 2015 225 336 2015 250 387 336 2010 573 2011 505 2012 384 2013 271 2014 321 407 354 273 307 Measured in thousands of tons Current Year to Disposal CCRs removed from storage for beneficial use Current Year to Beneficial Reuse Current Year to Beneficial Reuse 2015 | SCANA Environmental Sustainability Report | 15 SCE&G has also committed to decommissioning all wet ash ponds and handling facilities. Accomplishing this will require a considerable undertaking on the company’s part during the next eight years. Nuclear Safety Buildings containing nuclear equipment are specially built to ensure that radiation is safely contained. V.C. Summer’s design ensures the reliability of plant systems, provides redundancy and diversity of key safety systems, and incorporates other safety features to prevent incidents that could pose a threat to public health and safety. The combination of robust structures, a wellarmed professional security force and multiple backup safety systems provides layer upon layer of safety. Plant personnel also use state-of-the-art technology to monitor plant operations and various aspects of the surrounding environment such as fish, water, air and plants to ensure radiation stays in its place. V.C. Summer currently uses a used fuel pool to safely and securely store nuclear fuel. The company has managed used nuclear fuel and other nuclear waste byproducts safely and efficiently for three decades. V.C. Summer’s current fuel pool has enough capacity to safely store used fuel. SCE&G will soon begin dry storing used nuclear fuel in dry containers – robust, steel-lined, concrete containers. These containers are one of the storage methods used by nuclear stations across the United States. As we have done safely for years with the existing unit, SCE&G will store on site used fuel from the new reactors. The new nuclear units will have their own fuel storage facilities, and dry storage is an option for longer term storage for the new units as well. Although SCE&G supports the construction of a permanent federal repository for used nuclear fuel, the company is able to safely store the used fuel on site. U.S. EPA Toxic Release Inventory Each year, U.S. utilities submit Toxic Release Inventory reports to the EPA that quantify the amount of certain chemical emissions, in excess of an established threshold, released off site each year. Electric utility releases are largely the byproducts of combustion of coal and other fossil fuels and are released to the air upon combustion or to water or land as they are managed or stored. In the past several years, SCE&G has reported a significant drop in releases, primarily because of the scrubbers added at the Williams and Wateree Stations. Toxic Release Inventory Total All Plants, All Compounds (lbs) 8,686,922 2009 5,451,635 2010 4,478,471 2011 2012 2013 2014 3,482,717 2,769,641 1,484,955 2015 Available July 2016 2015 | SCANA Environmental Sustainability Report | 16 SCANA, South Carolina and the Clean Power Plan In 2015, the Environmental Protection Agency enacted the Clean Power Plan (CPP), which required U.S. electric utilities to reduce carbon dioxide (CO2) emissions from fossil fuel power plants 32 percent by 2030, compared to 2005 emission levels. South Carolina government agencies, environmental organizations and electric utilities began meeting in 2013 to discuss how the state could meet this aggressive goal. Under the CPP, states must select a “mass-based” or “ratebased” compliance plan, which is then applied to regulated electric generating units within the state. Under the massbased compliance plan, South Carolina must decrease CO2 emissions from the 2012 baseline year from 35 to 26 million tons per year. The final rule sets a rate-based goal of 1156 #CO2/MWh for SC that is 36 percent below the state’s 2012 baseline rate. Although the Supreme Court has put a hold on implementation of the rule for now, SCANA intends to continue to participate in South Carolina’s CPP stakeholder group. 120 ERCs Generated 2022-2030 90 Measured in millions of ERCs 60 The Clean Power Plan gives states and utilities flexibility in how they reduce CO2 emissions. Here are some ways SCANA is already lowering emissions: • Building two new nuclear units at V.C. Summer Station. These units will not only reduce the dependence on fossil fuel energy generation, but they will provide carbon-free generation to meet future energy demand. • Substituting natural gas for coal at Urquhart Unit 3 and McMeekin Units 1 & 2, cutting CO2 intensity by one-third at these units. 30 0 Storing energy at Fairfield Pumped Storage facility allows the remainder of SCE&G’s generating units to operate more efficiently with lower emissions. VCS 2&3 EE RE Under a rate-based compliance pathway, carbon-free electric generating units such as new nuclear, wind and solar, will generate one Emission Reduction Credit (ERC) for every MWh generated. Energy efficiency projects can also create ERCs – one for every MWh saved. This chart illustrates the projected ERCs that will be created in South Carolina by V.C. Summer Units 2 & 3, Energy Efficiency, and Renewable Energy over the CPP’s 2022 through 2030 compliance period. While the EE and RE actuals could be higher, this chart illustrates how valuable V.C. Summer Units 2 & 3 will be in meeting CPP compliance targets. South Carolina will have a surplus of ERCs, which means that it can comply with the Clean Power Plan, and may be able to sell ERCs to other states. • Helping customers use less energy by offering energy efficiency (EE) programs. Since launching the Demand Side Management (DSM) Programs in 2011, SCE&G has invested more than $76M in its DSM/EE portfolio resulting in more than 400,000 MWh in energy savings and over 70 MW in demand savings. • Installing utility-scale solar installations to take advantage of South Carolina’s sunshine. • Using pumped storage to store off-peak energy to later displace on-peak demand. Off-peak energy is potentially lower emitting. 2015 | SCANA Environmental Sustainability Report | 17 Conserving Resources for the Future Key Highlights • • • SCE&G unveiled first utility-scale solar facility in North Charleston, S.C. World’s most advanced wind turbine drivetrain testing facility at SCE&G Energy Innovation Center Targeted energy efficiency programs to help customers reduce energy consumption The landmark 2014 Distributed Energy Resource Program Act has fostered increased generation of solar electricity in South Carolina. SCANA continues to support innovative ways to preserve energy sources and promote energy efficiency, including an increased focus on growing our renewable energy efforts and new demand side management programs aimed at reducing overall energy consumption. Solar Energy Home Energy Savings Program In 2014, SCE&G worked collaboratively with a statewide group of environmental, utility and solar business stakeholders to develop comprehensive consensus legislation, ultimately yielding the landmark Distributed Energy Resource Program Act (Act 236), which helped pave the way for increased solar generation across the state. Since then, SCE&G has unveiled utility-scale solar generation and established solar incentive programs for both residential and non-residential customers. For a detailed look at SCE&G’s solar progress in 2015, please see p. 20. In June 2015, SCE&G, Boeing and The Sustainability Institute launched a new pilot weatherization program, the Home Energy Savings Program, aimed at helping low to moderate income and fixed income customers in the Charleston area. SCE&G Energy Innovation Center Home weatherization projects through the new Home Energy Savings Program will make homes safer and more energy efficient. Weatherization measures for homes in the pilot program will include air sealing, wrapping water heater and hot water pipes, CFL bulb installation, smoke detector and carbon monoxide detector installation, attic and crawlspace insulation and duct system repair or replacement. Dedicated in 2013 as part of the Clemson University Restoration Institute (CURI) campus in North Charleston, the SCE&G Energy Innovation Center is an advanced energy systems testing and research center. The center includes the world’s most advanced wind turbine drivetrain testing facility, which is capable of full-scale highly accelerated mechanical and electrical testing of advanced drivetrain systems for wind turbines. A drivetrain takes energy generated by a turbine’s blades and increases the rotational speed to drive the electric generator, similar to the transmission in a car. The versatility of the CURI facilities will enable Clemson engineers to engage in an array of mechanical and electrical systems testing for a broad range of energy markets. The new program, which is also receiving support from Social Venture Partners and AmeriCorps, will provide participants with personalized energy savings, energy improvement, and energy education for their homes and will seek to weatherize a total of 80 homes in two years. The program is part of the South Carolina Energy Conservation Corps, which recruits, trains, certifies and provides job placement services for veterans and at-risk young adults aged 18-25 in the energy efficiency industry. 2015 | SCANA Environmental Sustainability Report | 18 Small Business Energy Solutions Program The Small Business Energy Solutions Program is a turnkey program, tailored to help owners of small businesses manage energy costs by providing incentives for energy efficiency lighting and refrigeration upgrades. The program is available to SCE&G’s small business and small nonprofit customers with an annual energy use of 250,000 kWh or less. Pecknel Music in Columbia, S.C. last year completed a successful lighting upgrade through the program. Having been in the same building since 1969, manager Paul Morgan said the business was looking at a lighting upgrade both for energy-savings and aesthetic reasons. As a showroom for musical instruments, Pecknel’s front windows are tinted to protect the instruments from sun damage, creating a dimming effect that old, incandescent light bulbs weren’t adequately lighting. Morgan also said the business could stand to benefit from saving money on energy bills. The total cost of Pecknel’s lighting upgrades was $4,460, with SCE&G covering $3,303 of that amount. Morgan said his company is on track to get a return on its portion of the investment in the seven-month period estimated in the proposal. Pecknel is already looking at ways to invest the savings back into the business, such as other interior upgrades or new inventory. The wind turbine drive-train testing facility at the SCE&G Innovation Center is capable of simulating 20 years of field conditions in just months. Key features of the Small Business Energy Solutions Program include: • • • • • Free, on site energy use analysis Simple, cost-effective options and easy-to-follow recommendations to help manage lighting and refrigeration related expenses Financial incentives that cover 80 percent of the total cost (up to $4,000) for most lighting and refrigeration retrofit projects Fast return on investment Removal, and environmentally friendly disposal, of old fluorescent lamps and ballasts 2015 | SCANA Environmental Sustainability Report | 19 SCE&G Unveils First Utility-Scale Solar Facility and Grows Customer-Scale Solar Generation through Incentive Programs Representatives of SCE&G and TIG Sun Energy together unveiled the Jerry Zucker Solar Park. – Photo by John D. Smoak III In January 2016, SCE&G and TIG Sun Energy unveiled the first utility-scale solar facility under South Carolina’s Distributed Energy Resource Program Act, which came online in December 2015. Located on Leeds Avenue in North Charleston, the 500-killowatt facility was developed by South Carolinabased TIG Sun Energy III, a member of The InterTech Group. The facility was named Jerry Zucker Solar Park after the late founder and CEO of The InterTech Group. It is located on land formerly used by SCE&G for office space. Using more than 2,000 solar panels, the facility will generate approximately 946 megawatt hours of clean energy a year – enough energy to power 80 homes. “This is a significant moment in our move toward more renewable energy generation,” said Danny Kassis, vice president of customer relations and renewables for SCE&G. “By adding utility-scale solar capacity to our system, we take another step toward building a clean energy future for South Carolina.” SCE&G is also working to develop a solar installation in Cayce, adjacent to SCANA’s corporate headquarters off Interstate 77, which will have a generating capacity of approximately 2 MW. The company plans to announce additional power purchase agreements for utility-scale solar power in 2016. “We’re creating a balanced energy portfolio that can serve the needs of customers who want the benefits of alternative forms of generation,” said Kassis. SCE&G plans to add 42 megawatts of utility-scale solar generation to its system, with an additional 42 MW of customer-scale solar generation, for a total of 84 MW by 2020. The company expects 30 MW of that to come online by the end of 2016. As of early 2016, SCE&G had 700 residential solar customers, a number that has increased recently as a result of the incentive programs that were issued in fall 2015. Residential customers may take advantage of a Performance Based Incentive (PBI), which started in fall 2015 at 4 cents per kilowatt hour (kWh) for all of the solar production output of their system. This incentive will be in addition to existing Net Energy Metering agreements, and will last for a period of 10 years, ultimately leading to shorter payback periods for customers interested in installing solar on their rooftops. As more solar capacity is added to the system, the incentive amount will decrease for subsequent solar customers. Learn more at www.sceg.com/solar. 2015 | SCANA Environmental Sustainability Report | 20 Located on Leeds Avenue in North Charleston, the 500 kW Jerry Zucker Solar Park is SCE&G’s first utility-scale solar facility. “The combination of a new performance-based incentive along with the existing net energy metering will help customers significantly realize the benefit of investing in solar generation,” said John Raftery, general manager of renewable products and services for SCE&G. “This means residential customers could potentially pay off their rooftop solar investments in as little as six years.” For nonresidential customers, a Bill Credit Agreement incentive will allow SCE&G to credit all of a customer’s solar electricity production directly on that customer’s utility bill based on the size of the system. A special Bill Credit Agreement has also been developed for churches, schools and municipalities. Learn more about nonresidential solar programs: www.sceg.com/BusinessSolar. Residential customers and certain nonprofit organizations, such as schools, churches and municipalities, will also begin to have opportunities to participate in SCE&G-managed Community Solar farms starting in 2016. Community Solar is the most economical entry into solar power and provides customers an opportunity to invest in off site solar instead of rooftop solar. It also opens up solar energy to residential customers who rent their homes. SCE&G plans to add 84 MW solar energy to its system by 2020, including both utilityand customer-scale solar generation. 2015 | SCANA Environmental Sustainability Report | 21 Commitment to Our Community Key Highlights • • • Response to community needs after historic flooding event in South Carolina Support for innovative environmental education programs at S.C. Aquarium and Camp Leopold Bringing the stories of U.S. military veterans to life through USS Yorktown’s War Stories Elementary students helped present a gift at the South Carolina Aquarium to support educational programs there. Giving back to our community is a part of SCANA’s core values, and 2015 brought unique challenges and opportunities to the employees and communities we serve. From the tragedy at Emmanuel A.M.E. Church in Charleston to the historic flooding that affected much of South Carolina, the company had opportunities to support our communities in ways we never had before. It was also a year during which SCANA employees gave of themselves in unprecedented ways; they gave a record amount to United Way, had the top fundraising team for the American Heart Association’s Midlands Heart Walk and moved their annual holiday food drive to earlier in the year to help meet local hunger needs. Here’s a look at some more of SCANA’s 2015 community-focused projects. which is named after the parent of a former PSNC Energy employee who was a patient at the center. In December, PSNC Energy employees decorated the burn center for the Christmas holidays, and will continue its partnership with the burn center. PSNC Energy funds UNC Jaycee Burn Center Play Therapy Room Elementary students help SCE&G present gift to South Carolina Aquarium For almost a decade, PSNC Energy has supported the North Carolina Jaycee Burn Center at UNC Health Care. In October 2015, PSNC made a $200,000 donation to the burn center for a much needed play therapy room to help child burn victims. In April 2015, fourth graders from Knightsville Elementary who were visiting the aquarium to learn about aquatic habitats, food chains and adaptations, helped SCE&G present the South Carolina Aquarium with a $100,000 gift to support its educational school programs, which are donation-funded and free to schools. “Although this is just a small place in a huge hospital, when you come here, see the patients, and you see the people that work here and what they do— this playroom is very important to them,” said Rusty Harris, vice president of gas operations. The playroom is equipped with toys that allow children to improve their dexterity, including a reading corner, The Jaycee Burn Center at UNC Health Care is a 36-bed facility and one of the few in the U.S. that is American Burn Association-verified for adult and pediatric care. The center was recertified in 2012 and found to be one of the best comprehensive burn centers in the world. The aquarium helps carry out its mission “to inspire conservation of the natural world by exhibiting and caring for animals, by excelling in education and research, and by providing an exceptional visitor experience” through educational programs, which help bring the experience and learning opportunities into the community. Some of these programs include: 2015 | SCANA Environmental Sustainability Report | 22 PSNC Energy’s donation to the NC Jaycee Burn Center will provide a much needed play therapy room to help child burn victims. through hands-on lessons focusing on wildlife, wetland • Sea Turtle Rescue Program – this is the only rehabilitation facility of its kind in South Carolina; • Structured School Program – award-winning, state standards-aligned STEM (science/technology/engineering/ math) education program mainly serving students and teachers in Title I schools; • Rovers Educational Outreach Program – a STEM education program with a curriculum designed for preschoolers and adults that travels to remote and rural areas of the state with live animals and a natural science curriculum; • High School Intern Program – a four-month training course offered to 20 Charleston-area high school juniors in Title I schools that includes mentorship in resumebuilding, cover letter writing and interviewing skills. SCE&G supports Camp Leopold’s mission of environmental education A $30,000 gift from SCE&G to the South Carolina Waterfowl Association (SCWA) will allow third through seventh grade students to take field trips to Camp Leopold and participate in camp activities designed to help them achieve academic standards in science, reading and math and upland ecology. Operated by the SCWA, Camp Leopold is held at the nation’s largest youth wildlife and natural resource conservation education center. More than 4,000 campers will participate in Camp Leopold during the school year. Camp Leopold is helping meet a tremendous need for outdoor natural resource conservation education in South Carolina and across the United States. SCE&G supports Riverbanks Zoo expansion SCE&G and Riverbanks Zoo have had a unique relationship since before the zoo opened in 1974. A special 99-year lease agreement between SCE&G and the City of Columbia, providing approximately 20 acres of land for $1 per year, helped make the zoo a reality. Riverbanks Zoo in Columbia has greatly evolved since it opened, but its mission to foster appreciation and concern for all living things remains the same. Riverbanks has recently undergone the largest expansion in its history— 2015 | SCANA Environmental Sustainability Report | 23 SCE&G employee volunteers helped build a new children’s playground at One80 Place homeless shelter in Charleston. Destination Riverbanks. Highlights of the $36-million development project include a new entrance plaza to accommodate more guests, a state-of-the-art guest services center, additional ticket booths, a lost and found, a private area for nursing mothers and a larger gift shop. In support of this expansion, SCE&G made a $225,000 donation toward the new guest services building. Additionally, as part of SCE&G’s ongoing commitment to renewable energy, a $25,000 donation was made to help the zoo invest in solar energy. This gift partially matches the $50,000 grant that the Zoo received in 2014 from Palmetto Clean Energy (PaCE), a South Carolina nonprofit that promotes renewable energy resources. Through the grant, the Zoo will be able to install solar panels on its new guest services building. Employees help build One80 Place Playground SCE&G employee volunteers prepared the area outside One80 Place for playground installation. Nationally and locally, the number of homeless families continues to increase. Charleston’s One80 Place provides food, shelter and critical supportive services to help homeless individuals, veterans and families turn their lives around. The effects of homelessness can be devastating for anyone, but children are especially helpless. In 2015, SCE&G provided a donation of $31,000 to One80 Place, and 20 employee volunteers helped build the SCE&G Family Center Playground. The playground is designed to be an outlet for children living there, in turn boosting their developmental skills and helping combat the effects of living in a shelter. 2015 | SCANA Environmental Sustainability Report | 24 USS Yorktown Aircraft Carrier docked at Patriot’s Point Naval & Maritime Museum, Charleston, South Carolina. The SCE&G Family Center Playground is located directly in front of the Family Center, in a safe and secluded spot where mothers and children can play together and feel secure. SCE&G also helped support One80 Place’s 30,000 sq. ft. facility in downtown Charleston that opened in late 2014. Donation and vehicles help repair homes of seniors To help further support the needs of senior citizens in South Carolina, SCE&G in October presented a $50,000 donation to Sustaining Our Seniors of S.C., a nonprofit organization aimed at promoting independence, wellness and a better quality of life for seniors. SCE&G’s contribution helped Sustaining Our Seniors of S.C. further assist seniors in need, particularly those who were impacted by the historic flooding. SCE&G also presented two vehicles to Home Works of America, a partner organization of Sustaining Our Seniors of S.C., to support the organization’s efforts to repair the homes of elderly or disadvantaged residents in South Carolina. Gift to USS Yorktown Foundation brings war stories to life SCE&G presented a $125,000 donation to the USS Yorktown Foundation to fund the preservation of veteran war stories and oral histories by the Patriots Point Naval & Maritime Museum. The donation enabled the museum to expand its already popular video series titled “War Stories” and purchase the equipment needed to record video archives of veteran stories that will help bring the museum to life. “By detailing and preserving these very personal stories of courage and sacrifice of these American servicemen and women critical to our country’s history can we maintain the foundation for future liberty and freedom,” said Keller Kissam, president of retail operations for SCE&G. “It is not only an honor, but something we deem a responsibility for our company on behalf of our employees.” Patriots Point’s video archiving projects are produced inside a recently built studio aboard the USS YORKTOWN. They will be presented through touch-screen kiosks on museum tour routes, as well as through social media and future educational symposiums. 2015 | SCANA Environmental Sustainability Report | 25 Flood waters in North Charleston’s Pepperhill subdivision created an extra challenge for SCE&G crews working to restore electricity. SCE&G Responds to 1,000-Year Flood The first weekend of October 2015 brought historic levels of rain to much of South Carolina. When it finally stopped raining, more than 11 trillion gallons of rain had fallen on the state, causing unprecedented floods and widespread destruction. Across South Carolina, dozens of dams were breached and more than 360 roads and 165 bridges were closed, including sections of three major interstate highways. At peak, there were approximately 15,000 weatherrelated electric outages in SCE&G’s service territory. The flood waters presented our employees with unique conditions, but they worked throughout the event to safely maintain system infrastructure and restore power. In North Charleston, electric crews braved flood waters to de-energize affected sections of the Pepperhill subdivision so that power could then safely be restored to those homes. As SCE&G electric outage restoration was wrapping up, we also began to use our unique resources and equipment to assist with other types of flood recovery. In northeast Richland County, we worked alongside the National Guard, local agencies and residents to help secure Beaver Dam. Using a crane truck to position large sandbags, this group effort helped prevent flooding that a dam breach would have caused. A breach of the historic Columbia Canal compromised the reservoir that serves as the source of drinking water for hundreds of thousands in the Columbia area, and SCE&G was also called upon to work with the National Guard and City of Columbia to help with repairs. Serving our community is one of SCE&G’s core values, and our employees quickly stepped up to help with flood recovery. When the flood increased need among South Carolina food banks, SCE&G employees responded by moving their annual holiday food drive to earlier in the year, donating 6,788 lbs. of food, an increase of 55 percent from the previous year, to help food banks around the state. Power Delivery employees held a barbecue fundraiser that raised more than $9,000 for local food banks. The company made donations to the American Red Cross of the Palmetto SC Region, United Way of the Midlands and The Trident United Way to assist with relief efforts. 2015 | SCANA Environmental Sustainability Report | 26 SCE&G helped the National Guard, local agencies and residents secure Beaver Dam in northeast Richland County. Sandbags were used to help secure Beaver Dam in Richland County. SCE&G employees de-energized affected sections of a North Charleston neighborhood so power could safely be restored. Rising waters forced many residents of Pepperhill subdivision to evacuate. 2015 | SCANA Environmental Sustainability Report | 27 The Gervais Street Bridge spans the Congaree River, which flows between South Carolina’s capital city, Columbia, and the City of Cayce, home of SCANA’s corporate headquarters. SCANA Environmental Policy SCANA recognizes the environment is a precious and fragile resource, and we accept our social responsibility to conduct business in a way that protects it. While we are committed to our mission to provide energy and related products to retail markets in the Southeast, it is also our pledge to do so in an environmentally sensitive manner. SCANA is committed to: • Utilizing innovation and cost-effective technology to minimize waste and improve the quality of our air emissions and water discharges; • Supporting projects that foster stewardship of natural resources; • Meeting all local, state and federal environmental laws, regulations and other requirements; • Training employees on general environmental awareness and environmental aspects of their work; • Establishing objectives and targets to improve environmental performance; • Continually seeking improvements to processes, procedures and systems to manage environmental impacts; and • Enhancing open communication with stakeholders to build respect and trust for SCANA. Therefore, we value: Preventing pollution Respecting the environment Observing environmental laws and regulations Training employees Establishing environmental objectives and targets Continually improving environmental management Transparent communication 2015 | SCANA Environmental Sustainability Report | 28 100 SCANA Pkwy | Cayce, SC 29033-3712 | 803-217-9000