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Boiler MACT, CISWI and Definition of Non-Hazardous Secondary Materials October 11, 2011 American Public Power Association Timothy Hunt.

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Presentation on theme: "Boiler MACT, CISWI and Definition of Non-Hazardous Secondary Materials October 11, 2011 American Public Power Association Timothy Hunt."— Presentation transcript:

1 Boiler MACT, CISWI and Definition of Non-Hazardous Secondary Materials October 11, 2011 American Public Power Association Timothy Hunt

2 Overview Boiler MACT concerns Non Hazardous Secondary Material important Cost implications Review three part strategy –EPA, Hill and courts 2

3 Recent Actions Rules published March 21 – effective May 20 th EPA reconsidering portions of rule – proposal Oct 31 st May 2011 stay of Boiler MACT and CISWI now in jeopardy Full court press with EPA, White House, and Hill Connecting billions in costs to thousands of jobs at risk Legislation in House and Senate EPA changes for all rules ??? 3

4 Improvements from Boiler MACT Proposal Combination Boilers – coal and biomass subcategories merged for fuel based HAPs (PM, Hg, and HCl) higher limits for mercury and HCl, only modestly better PM Work practices for area sources (GACT) Work practices for startups and shutdowns Expanded gas fired work practices to other clean gases 4

5 Boiler MACT Capital Costs for Forest Products for Final Rules – if most materials are fuels 5 HAP or Surrogate PM/ metals Acid gases Carbon Monoxide (CO) Mercury/ Dioxin* NOxTotal Boiler MACT (proposal cost) $ 1.9B ($2.4B) $ 1B ($2.9B) $ 944M ($502M) $ 494M ($497M) NA $4.3B ($6.3B) CISWI Boilers $208M ($140M) $237M ($160M) $29M ($40M) $17M ($20M) $0M ($80M) $491M ($440M) GACT Boilers – tune-ups and energy audits only, no control costs $0 Total Boiler Rules Cost for Forest Products$4.8B

6 Boiler MACT Capital Costs for Forest Products for Final Rules – if most materials are waste 6 HAP or Surrogate PM/ metals Acid gases Carbon Monoxide (CO) Mercury/ Dioxin* NOxTotal Boiler MACT $ 1.6B ($2.4B) $ 949M ($2.9B) $ 407M ($502M) $ 789M ($497M) NA $3.7B ($6.3B) CISWI Boilers $496M ($140M) $484M ($160M) $79M ($40M) $113M ($20M) $131M ($80M) $1.3B ($440M) Add GACT Boilers burning NHSM to CISWI$1.3B Add WP dryers burning NHSM to CISWI$663M Total Boiler Rules Cost for Forest Products$7B

7 Jobs Impacts for Paper Mills Fisher International Study mill by mill assessment using URS cost estimates for Boiler MACT and other air rules where mill costs assigned ~20,000 direct jobs at risk at mills (Boiler MACT only) ~85,000 total jobs in communities and in value chain Rural communities especially hard hit 7

8 Boiler MACT: Unachievable Unachievable biomass limits for Carbon Monoxide Problem: Many biomass boilers cannot consistently meet CO limit Solution: set feasible short term limits and alternative longer-term limits that reflect data variability; allow time for boiler testing Unachievable New Source Limits Problem: non-gas boilers cant reliability meet Hg, HCl, and PM; discourages replacement of older boilers/modernization Solution: test methods cant measure at these levels so adjust limits Unachievable limits for Dioxin Problem: Data is below where methods can accurately measure, results are meaningless at extremely low levels (less than one ounce nationwide); limits are more stringent than any MACT; see table Solution: Adopt work practice as law allows OR set much higher emission limits (>0.3 ng/dscm) 8

9 Other Boiler Issues Health-based alternative for HCl and PM-TSM - off table at EPA Source-based vs. HAP by HAP Good issue in principle but not very helpful for limits Energy Audits - Annoyance but livable Back pedaling from proposal - no third party, no benchmarks, no obligation to implement projects Monitoring feasibility – PM CEMS 9

10 NHSM: Major Concerns Legitimacy criteria – contaminant level must be comparable to traditional fuel (clean biomass and fossil fuel) Many biomass residuals would flunk; construction debris? Implications: Comply with CISWI – 3 times more expensive Landfill material and replace fuel - $660 million/year Path forward – guidance or modify rule Greater flexibility in applying legitimacy test – Benchmark Framework from July Concept Paper List of non-waste fuels? Petition process to qualify as fuel 10

11 Administration appreciating impact of excessive regulation? Lessens of Ozone NAAQS deferral – jobs and costs Boiler-CISWI Meetings to press top issues – details unclear until 10/31 NPRM OMB outreach AF&PA and AWC conducting CO testing – $100Ks, time limited NHSM – press for regulatory solution Prepare for comments – broaden list of non-waste fuels Devil in the details – legal scrutiny Executive Branch Strategy 11

12 Bipartisan and bicameral is key HR 2250 (EPA Regulatory Relief Act of 2011) introduced 6/21 – expected to pass week of 10/10; White House veto threat S. 1392 introduced on July 17 – very similar to House; 32 cosponsors; get more co-sponsors Key provisions Timing: Legislative stay, 15 months to revise; 5 years to comply Boiler directives – achievable, source-based/real world boiler NHSM directives – list of materials or discard approach Legislative Branch Strategy 12

13 Boiler-CISWI Court holding in abeyance while reconsideration is ongoing Sierra Club challenging stay in District Court – same Judge that rejected EPA extension request asserting jurisdiction; decision very soon NHSM Briefing schedule not set but case proceeding slowly If EPA modifies rule then hold in abeyance? Judicial Branch Strategy 13

14 Boiler MACT Legislation Trade Group Supporters (79) American Architectural Manufacturers Association American Chemistry Council American Coatings Association American Coke & Coal Chemicals Institute American Composites Manufacturers Association American Fiber Manufacturers Association American Forest & Paper Association American Foundry Society American Frozen Food Institute American Home Furnishings Alliance American Loggers Council American Municipal Power American Petroleum Institute American Sugar Cane League American Wood Council APA - The Engineered Wood Association Association of American Railroads Association of Independent Corrugated Converters Beet Sugar Development Foundation Biomass Power Association Brick Industry Association Business Roundtable Cement Kiln Recycling Coalition Composite Panel Association Construction Materials Recycling Association Corn Refiners Association Council of Industrial Boiler Owners Creosote Council 14

15 Forest Landowners Association Forest Resources Association Inc. Forging Industry Association Hardwood Federation Hardwood Manufacturers Association Hardwood Plywood and Veneer Association Industrial Energy Consumers of America Industrial Fasteners Institute Industrial Minerals Association - North America Kitchen Cabinet Manufacturers Association Maple Flooring Manufacturers Association Metal Treating Institute Metals Service Center Institute Motor & Equipment Manufacturers Association National Association for Surface Finishing National Association of Manufacturers National Association of Trailer Manufacturers National Concrete Masonry Association National Council of Farmer Cooperatives National Council of Textile Organizations National Federation of Independent Business National Lumber and Building Material Dealers Association National Oilseed Processors Association National Solid Wastes Management Association National Spinning Company NORA, National Oil Recyclers Association 15 Boiler MACT Trade Group Supporters (Contd)

16 North American Die Casting Association North American Wholesale Lumber Association Partnership for Affordable Clean Energy Pellet Fuels Institute Pile Driving Contractors Association Portland Cement Association Precision Machined Products Association Railway Tie Association Rubber Manufactures Association Society of Chemical Manufacturers and Affiliates Southeastern Lumber Manufacturers Association Southern Forest Products Association Southern Pressure Treaters' Association Steel Manufacturers Association Textile Rental Services Association The Association for Hose & Accessories Distribution (NAHAD) The Carpet and Rug Inst. The International Association of Machinists and Aerospace Workers The United Brotherhood of Carpenters and Joiners of America Treated Wood Council U.S. Beet Sugar Association U.S. Chamber of Commerce USA Rice Federation Window and Door Manufacturers Association Wood Machinery Manufacturers of America 16 Boiler MACT Trade Group Supporters (Contd)

17 Wrap-up Tens of billions of dollars will translate into tens and probably hundreds of thousands of jobs – labor unions engaged No other country is forcing these controls on such a wide swath of industries – harm competitiveness Pushes energy policy towards natural gas which will drive up prices for everyone Alternative rule could reduce costs and maintain benefits 17

18 Questions Tim Hunt AF&PA and American Wood Council 18

19 More Time is Critical for Testing


21 21 LQLQ LDLD LCLC Cannot differentiate from background LCLC LDLD LQLQ Critical Level Limit of Detection Limit of Quantitation Can differentiate from background. Low confidence in detection. Analyte is detectable. Low confidence in quantity. The analyte is quantifiable with a known level of precision and bias Analyte Concentration Test Method Sensitivity and Achievable Limits (All dioxin detections are here -- below the level of confidence that the number is accurate)

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