In 2011, Tennessee was party to a federal court settlement of an enforcement action under the federal Clean Air Act that resulted in a Consent Decree with the Tennessee Valley Authority (TVA). The Consent Decree obligates TVA to provide Tennessee $26.4 million over a five-year period to fund environmental mitigation projects that best result in a reduction of air emissions and pollutants in the state. The Clean Tennessee Energy Grant (CTEG) program was subsequently established to select and implement these projects.
In the fall of 2012, the state awarded CTEG funding to assist with environmental mitigation projects at four Tennessee colleges and universities. One notable case study among these recipients is the project currently underway at Tennessee Technological University (TTU), located in Cookeville.
TTU received $250,000 for a retrofit of its existing coal fired steam plant. The retrofit will involve a complete transition from coal to natural gas. Electrical consumption by the university's steam plant will also be reduced by eliminating a large air compressor currently needed for coal transport and ash removal. Primary improvements in boiler efficiency will come from a 10% to 14% reduction in stack loss.
Completion of the project should result in a total annual cost savings of approximately $378,330, based on projected reductions in fuel, electricity and labor, and elimination of ash disposal and bag house usage fees. These estimated annual cost savings will result in an extremely rapid payback of 1.76 years.
Anticipated energy savings include 29,200 MMBtu/year of boiler fuel and 497,568 kWh/year of electricity. Major air pollutants will be reduced 93.5%, along with a 59.3% reduction in greenhouse gas emissions. Hence, TTU's project utilizes new and diverse technologies to significantly reduce harmful emissions while also accruing substantial cost savings.
