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Economic and Other Implications of Switching from Coal to Natural Gas at the Capitol Power Plant and at Electricity-Generating Units Nationwide

GAO-08-601R Published: May 01, 2008. Publicly Released: May 01, 2008.
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Highlights

Elevated concentrations of greenhouse gases--carbon dioxide, methane, nitrous oxide, and several synthetic chemicals--in the atmosphere resulting from the combustion of fossil fuels and other sources have the potential to cause significant changes in the earth's climate. These potential impacts include shifts in sea level and weather patterns and could pose threats to coastal and other infrastructure. Concerns about the potential impacts of climate change have led the Congress to consider legislation that would place binding, nationwide limits on greenhouse gas emissions, and the House of Representatives' leadership has initiated efforts to decrease emissions attributable to its operations. Nearly all of the greenhouse gas emissions from House operations consist of carbon dioxide and are associated with electricity purchased from utilities and the combustion of fossil fuels in the Capitol Power Plant (CPP), which provides steam and chilled water for heating and cooling the Capitol building and 23 surrounding facilities. The Architect of the Capitol (AOC) operates CPP. In June 2007, the Chief Administrative Officer (CAO) of the House of Representatives released the Green the Capitol initiative (the initiative) at the direction of the Speaker and the Majority Leader. Among other goals, the initiative calls for the House of Representatives to operate in a carbon-neutral manner by the end of the 110th Congress (December 2008). Based on an AOC estimate, the House's share of the cost of achieving the fuel-switching goal would total $2.75 million in fiscal year 2008. The Omnibus Appropriations Act for that year appropriated $85.3 million for CPP. The House Appropriations Committee Explanatory Statement directs $3.27 million of this amount to the Green the Capitol initiative. In addition to the House's efforts to implement the Green the Capitol initiative, the Congress is considering proposals that would create nationwide limits on greenhouse gas emissions from electricity-generating units and other sectors of the economy. Within this context, the House Committee on Appropriations directed GAO to determine, in consultation with the Department of Energy, (1) the expected increase in natural gas use for House operations and the associated costs at CPP that would result from the Green the Capitol initiative, and (2) the ability of existing U.S. coal-burning, electricity-generating units to switch to burning natural gas and the associated economic implications.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Architect of the Capitol Before adjusting the Capitol Power Plant's fuel mix beyond the level directed by the Green the Capitol initiative, the Acting Architect of the Capitol should consult with AOC's oversight committees in the Congress and evaluate the economic and environmental trade-offs associated with the use of each fuel at the plant, taking into account the efficiency of the plant's boilers, related fuel supply systems, and pollution control equipment.
Closed – Implemented
In June, 2008, the Architect of the Capitol issued a Report to Promote the Maximum Efficiency for the Operation of the U.S. Capitol Power Plant. This report included an analysis of the optimum operation of boilers in the plant to provide the most efficient operations possible under two scenarios: (1) without the requirements of the "Green the Capitol Initiative" that require the Architect to increase the use of natural gas and (2) with the requirements. This analysis showed that boiler operation would generally be more efficient under the first scenario. Congress has requested the Architect to convert from coal to natural gas as soon as possible. As a result, the Capitol Power Plant is maximizing th use of natural gas at the plant, and the Architect has requested funding to explore options to meet this requirement in an energy-efficient manner.

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Topics

Natural gasCoalEnergy costsFuel pricesFuelsEnergy consumptionCost analysisNatural gas pricesFuel suppliesElectricity restructuringElectric power generationEnergy conservationEnergy managementEnergy planningEnergy suppliesGreenhouse gasesCoal pricesIndustrial facilitiesCarbon dioxide