1. MCIC Workshop 2012 Complying with NC Air Quality Regulations Boiler MACT/GACT and 112j Steve Schliesser Division of Air Quality Environmental Engineer March 2012 1

2. Topics to be Covered Background - EPA Boiler MACT and GACT Effects of Vacatur on EPA Stay of Boiler Rules Current vs. Proposed 5D Boiler MACT Current vs. Proposed 6J Boiler GACT 2

3. Background on EPA Boiler MACT Rules Clean Air Act Requires National Emission Standards for Hazardous Air Pollutants (HAP) – Maximum Achievable Control Standards (MACTs) for major facilities emitting one HAP > 10 ton/yr or multiple HAPS > 25 ton/yr – Generally Available Control Standards (GACTs) for non-major facilities 3

4. Boiler MACT Impact in North Carolina Affects 98 facilities and ~1,000 boilers All but one facility has 112(j) permit, shielding MACT compliance up to 8 yrs (2018/2019) NC has 2 nd highest projected cost impact from Boiler MACT -- > $1 billion 4

5. Boiler MACT Rulemaking Process Timetable EPA Proposed Rule in Jan 2003 EPA Promulgated Final Rule in Sept 2004 U.S. Court Vacated and Remanded Final Rule in June 2007 EPA Proposed Rule in June 2010 U.S. Court Denied EPA Time-Extension Request in Jan 2011 EPA Promulgated Final Rule in March 2011 EPA Stayed Effective Date of Final Rule in May 2011 EPA Proposed Amendments to Final Rule in Dec 2011 U.S. Court Vacated EPA Stay in Jan 2012 EPA Expects to Promulgate Final Rule by May 2012 5

6. Recently (Re)Proposed Boiler MACT (BM) EPA stayed March Boiler MACT final rule in May 2011 U.S. Court vacated EPA stay in Jan 2012 - EPA had authority, just did not follow procedure Slight national impact, but one NC facility with huge impact -- lost 112(j) permit since rule’s restored effective date occurred before permit was issued DAQ submitted comments on re-proposal in Feb 2012 EPA expects to finalize Boiler MACT in May 2012 6

7. MACT procedure sets bar of top 12% -- for each boiler type/fuel sub-category and each HAP -- for others to meet Re-proposal offer more flexibility, less cost impact, with offsetting increases/decreases in HAP emissions Highlights of proposed changes – Added new sub-categories for total of 19 – New and alternative HAP emissions limits – New work practice standards and provisions Recently (Re)Proposed Boiler MACT 7

8. Proposed Changes to Final March 2011 Boiler MACT New subcategories for light and heavy industrial fuel oil to reflect boiler design disparity and improve achievability. New emissions limits for PM specific for each solid fuel (biomass, coal) to reflect actual differences. Alternative total selective metals emission limits in addition to using PM as surrogate, improving flexibility. New CO emissions limits and averaging time with new data showing high variability in short- and long-term measurements. Replace dioxin emission limits with work practice standards given most data were below detection. Removed PM CEMS requirements for biomass units given variability in PM characteristics 8

9. MACT Floor Methodology Pool of top performers (average of top 12%) will set MACT floor for each sub-category - Review MACT floor pool test reports for valid data - Finding invalid data or re-categorizing will produce another pool and MACT floor Account for performance variability of top 12%; - previously variability factor ranged from of 3-10. MACT emission limit = Floor average * Variability factor 9

10. HAP/ Fuel - Design Units2004 “Final” 2010 Proposal 2011 “Final” 2011 Proposal Mercury - Biomass lb / Trillion Btu No limit0.9 4.63.1 - Coal 93 - Oil No limit43.526 Hydrogen chloride - Biomass lb / Million Btu No limit 0.006 0.0350.022 - Coal 0.02 - Oil 0.00090.00340.0012 Particulate - Biomass Wet Stoker lb / Million Btu 0.070.020.039 0.029 - Biomass Dry Stoker 0.32 - Coal Stoker 0.028 - Heavy Liquid Oil No limit0.0040.0075 0.062 - Light Liquid Oil 0.0034 Short List of Boiler MACT Emission Standards for Existing Units 10

11. Boiler MACT Particulate Matter Emission Limits 11

12. Existing Boiler MACT CO Emission Limits 12

13. Existing Boiler MACT Hydrogen Chloride Emission Limits 13

14. Boiler MACT Mercury Emission Limits 14

15. Why Mercury Limit High for Existing Liquid Fuel Oil Boilers? MACT floor based on 10 sources burning 2, 4, 6, recycle oil Fuel oil floor avg = 0.37 lb/TBtu, MACT limit = 26 - Variability factor = 70, outside normal range of 3-10 Solid fuel floor avg = 0.40, MACT limit = 3.1 - Variability factor = 8, within normal range of 3-10 Previous MACT fuel oil limits = 3.5 – 4.0 Mercury in virgin fuel oil -- <1.0 lb/TBtu Of 71 fuel oil sources for which EPA has data, only 4 would reduce mercury emissions. 15

16. (Re)Proposed Boiler GACT GACT procedure uses generally available (not maximum achievable) control technologies or management practices Re-proposal eases burden without changing emissions, costs, benefits Affects 300 permitted facilities and 600 boilers in NC > 90% burn gas, oil, or biomass will conduct only periodic tune-ups and some perform one-time energy assessment Remaining that burn coal must meet mercury and CO limits. Delay March 2012 tune-up deadline 1-year until March 2013. - EPA no-action-assurance memo delays tune-up deadline til Oct 2012 16

17. Boiler GACT Emission and Work Practice Standards Source Category Fuel Category Heat Input, MMBtu/hr PM, lb/MMBtu/h r Mercury, lb/MMBtu/h r CO, ppm Work Practice Standard All< 10None Tune-up every 2 years Existing Coal ≥ 10None 4.8E-6 400 @7% O 2 One time energy assessment Biomass None Boiler tune-up Oil New Coal ≥ 10 < 300.42 4.8E-6 400 @3% O 2 No energy assessment ≥ 300.03 Biomass ≥ 10 < 300.07 None Boiler tuneup ≥ 300.03 Oil ≥ 10 < 300.03 ≥ 300.03 For more details see http://www.epa.gov/airquality/combustion/docs/20111202asboilersfs.pdfhttp://www.epa.gov/airquality/combustion/docs/20111202asboilersfs.pdf 17

18. Boiler MACT and GACT Future Schedule Rules promulgated (3 rd time) in May 2012 Effective 60 days after Fed Reg publication (~July ‘12) Expect litigation, possibly from both sides Compliance date for 112(j) permitted facilities : ◦ May be > MACT rule compliance date (~July ‘15) ◦ Must be within a reasonable period of time; and ◦ Cannot exceed 8 years from (last) promulgation date. 18

19. DAQ Comment on EPA NESHAP Rules EPA submittals on Boiler MACT, GACT, CISWI and Non Hazardous Solid Waste Definition Focus on implementation, compatibility, and program management issues Few comments helped to effect rule changes Sent NACAA letter stating their comments do not reflect DAQ interests and concerns 19

20. Questions? Steve Schliesser Environmental Engineer 919-707-8701 Steve.Schliesser@ncdenr.gov http://www.ncair.org/ EPA boiler rules website: http://www.epa.gov/airquality/combustion/index.html http://www.epa.gov/airquality/combustion/index.html EPA Boiler MACT docket, go to www.regulations.govwww.regulations.gov then enter EPA–HQ–OAR–2002–0058 20