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PA Chamber of Business and Industry Meeting Harrisburg, PA September 25, 2008

Air Quality Topics Covered. Clean Air Interstate Rule (CAIR)Boiler Maximum Achievable Control Technology (MACT) UpdateEPA's Final PM2.5 New Source Review RuleDiesel Idling Rulemaking UpdateProposed Rulemakings: NOx Controls for Cement Kilns/Glass Melting Furnaces. Federal Clean Air Interstate Ru

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PA Chamber of Business and Industry Meeting Harrisburg, PA September 25, 2008

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    1. PA Chamber of Business and Industry Meeting Harrisburg, PA September 25, 2008 Joyce E. Epps Director, Bureau of Air Quality PA Department of Environmental Protection 400 Market Street Harrisburg, PA 17105-8468 717-787-9702 jeepps@state.pa.us

    2. Air Quality Topics Covered Clean Air Interstate Rule (CAIR) Boiler Maximum Achievable Control Technology (MACT) Update EPA’s Final PM2.5 New Source Review Rule Diesel Idling Rulemaking Update Proposed Rulemakings: NOx Controls for Cement Kilns/Glass Melting Furnaces

    3. Federal Clean Air Interstate Rule The U. S. Environmental Protection Agency (EPA) found that 28 states and the District of Columbia contribute significantly to nonattainment in downwind PM2.5 and 8-hour ozone nonattainment areas. May 12, 2005 — EPA promulgated the Clean Air Interstate Rule (CAIR) to mitigate the transport of sulfur dioxide (SO2) and nitrogen oxide (NOx) emissions from electric generating units (EGUs) of 25 megawatts or greater.

    4. Federal Clean Air Interstate Rule April 28, 2006 — EPA issued CAIR Federal Implementation Plans (FIPs) which established annual and ozone season NOx caps with 2009 and 2015 compliance dates; SO2 caps with 2010 and 2015 compliance dates were also established. September 11, 2006—State Implementation Plan (SIP) revisions were due to EPA. April 12, 2008 — Pennsylvania’s CAIR final rulemaking was published in the Pennsylvania Bulletin; a revision to the SIP was subsequently submitted to EPA for approval.

    5. Federal Clean Air Interstate Rule July 11, 2008 — the U.S. Court of Appeals for the District of Columbia issued its decision in North Carolina v EPA vacating and remanding the CAIR and FIPs to EPA for revisions consistent with the opinion. The Court continued the NOx SIP Call or NOx Budget Trading Program in effect to minimize any disruption that might result from the CAIR vacatur. September 24, 2008 — EPA intends to file a petition seeking reconsideration en banc of the Court’s decision. If the petition is denied, the Court will issue the mandate vacating the CAIR and FIPs.

    6. Implications of the Clean Air Interstate Rule Vacatur In Pennsylvania, the CAIR vacatur has far-reaching implications including the following: The eight-hour ozone attainment demonstration for the Philadelphia Area relied on CAIR reductions; EPA is expected to propose disapproval. Draft PM2.5 demonstrations relied on CAIR reductions; additional modeling and trend analyses will be necessary. The draft Regional Haze SIP revision relied on CAIR reductions; BART determinations for NOx and SO2 emissions from electric generating units (EGUs) will now be required.

    7. Implications of the Clean Air Interstate Rule Vacatur (Cont’d) Section 110 (a)(2)(D) SIP revisions (transport SIPs) relied on CAIR reductions and are no longer approvable. Failure to submit findings or a disapproval of SIP revisions will trigger a mandatory 18-month sanctions clock under Section 179 of the Clean Air Act. EPA is also evaluating the impact on approved redesignation requests, maintenance plans and transportation budgets. An expedited rulemaking is necessary to prevent the termination and retirement of NOx Budget Allowances in January 2009.

    8. PA CAIR Final-Omitted Rule September 16, 2008 — the Environmental Quality Board approved a final-omitted rulemaking repealing all changes to 25 Pa. Code Chapters 121, 129 and 145, except Section 129.204(b)(2) (relating to alternative calculations and recordkeeping requirements). The final-omitted was adopted in accordance with the Commonwealth Documents Law. Section 204(3) provides that an agency may omit proposed rulemaking if the agency finds for good cause that the notice of proposed rulemaking is in the circumstance impracticable, unnecessary or contrary to the public interest. The rulemaking harmonizes the Pennsylvania Code provisions with the State Implementation Plan and ensures that the NOx Budget allowances are not terminated and retired on January 1, 2009.

    9. Boiler MACT Update September 13, 2004 — EPA promulgated the Industrial, Commercial and Institutional Boilers and Process Heaters MACT rule at 40 CFR 63 Subpart DDDDD. June 8, 2007 — The U.S. Court of Appeals for the D.C. Circuit issued its decision in Natural Resources Defense Council v. EPA, vacating and remanding the rule. July 30, 2007 — The Court issued the mandate vacating and remanding the Boiler MACT rule to EPA. EPA has indicated that the vacatur triggers the applicability of Section 112(j) of the Clean Air Act (CAA), the “MACT Hammer” provision.

    10. Boiler MACT Update Implementation of Section 112(j) has been delayed in PA and many other states pending EPA’s release of guidance for Boiler MACT sources. Part 1 Applications will be due within 30 days following notification by PADEP. Part 2 Applications will be due within 60 days following the Part 1 Application deadline. The Section 112 (j) requirements will be incorporated as applicable requirements in Title V permits.

    11. Boiler MACT Update August 2008 — EPA mailed Section 114 letters under Information Collection Request (ICR) No. 2286.01 to more than 2,500 major and non-major facility owners requesting responses to an Internet survey on emissions, controls, and work practices for various types of boilers. The survey must be submitted to EPA within 45 days of the date of the ICR letter; requests for an extension of the deadline can be sent to Jim Eddinger (eddinger.jim@epa.gov) at EPA. If the facility is shutdown or will shutdown by May 2009, send an email including facility name and address, the letter tracking number and the date the facility ceased or will cease operation to combustionsurvey@erg.com.

    12. Boiler MACT Update In June 2008, the National Association of Clean Air Agencies (NACAA) developed guidance entitled Reducing Hazardous Air Pollutants from Industrial Boilers: Model Permit Guidance to assist state and local agencies in establishing case-by-case MACT determinations for certain boiler categories including coal, gas, oil and wood-fired boilers. The guidance includes emission limits (lb/MMBtu) for carbon monoxide, hydrogen chloride, mercury and particulate matter. U.S. EPA intends to issue a proposed Boiler MACT Rule in August 2009; the final rule is expected in August 2010. 

    13. EPA’s Final PM2.5 NSR Rule (73 FR 28321) May 16, 2008 — EPA issued the final rule entitled “Implementation of the New Source Review (NSR) Program for Particulate Matter Less Than 2.5 Micrometers (PM2.5).” June 15, 2008 — effective date of PSD and Nonattainment NSR rules. The final rule established major source thresholds, significant emission rates, and offset ratios for PM2.5, interpollutant trading for offsets and the applicability of NSR to PM2.5 precursors.

    14. EPA’s Final PM2.5 NSR Elements (73 FR 28321) NNSR Applicability to PM2.5 Precursors SO2 in for NSR and PSD. NOx presumed in for NSR and PSD. VOC presumed out for NSR and PSD. NH3 presumed out for NSR; out for PSD. Any State or EPA may rebut the presumption or demonstrate a need to include certain precursors for specific nonattainment areas.

    15. EPA’s Final NSR PM2.5 Elements A transition period is provided for condensable PM2.5 emissions. State and local permitting authorities are not required to consider PM10 / PM2.5 condensables in applicability determinations until January 2011 or adoption of a federal “test method” rule, whichever is earlier. The rule does not, however, prohibit permitting authorities from considering condensables.

    16. EPA’s Final NSR PM2.5 Elements Control Technology: BACT and LAER Applies to direct PM2.5, SO2 emissions, and other precursors. PSD Air Quality Impact Analyses Compliance with national ambient air quality standards and air quality related values required. Significant Impact Levels and monitoring concentrations scheduled to be released in December 2008. Nonattainment NSR Offsets Applies for direct PM2.5 emissions and precursors at a minimum ratio of 1:1. Interpollutant Offset Trading Preferred Trading Ratios (i.e. automatic approval) 200 Tons NOx = 1 Ton PM2.5 40 Tons SOx = 1 Ton PM2.5

    17. EPA’s Final NSR PM2.5 Elements Interpollutant Offset Trading – Cont’d Different ratios for specific nonattainment areas may be included in SIP if supported by adequate modeling/technical demonstrations. Case-by-Case demonstrations on an individual permit basis will not be allowed. Interpollutant trading will not be allowed for “netting” purposes.

    18. Implementation of EPA’s PM2.5 NSR Elements The PSD provisions in 40 CFR 52.21 are adopted and incorporated by reference in their entirety in 25 Pa. Code, Chapter 127, Subchapter D; effective July 15, 2008. PADEP will implement Appendix S requirements until NNSR amendments to Chapter 127, Subchapter E are adopted. Appendix S only allows use of SO2 as a precursor. NNSR SIP revisions are due to EPA by May 16, 2011.

    19. Diesel Vehicle Idling Final Rulemaking October 2006 — the Clean Air Board of Central PA (CAB) petitioned EQB to adopt regulation imposing idling restrictions on diesel vehicles. January 2007 — the EQB accepted the petition for rulemaking. October 2007 — the EQB approved the proposed rulemaking which added definitions to Chapter 121 and new Subchapters F and G to 25 Pa. Code Chapter 126. January 12, 2008 — the proposed rulemaking was published in the Pa. Bulletin; three public hearings were held. March 17, 2008 — the public comment period closed. September 16, 2008 — EQB approved the final-form regulation; regulatory review process ongoing. The final rulemaking will be submitted to EPA as a revision to the State Implementation Plan.

    20. Diesel Vehicle Idling Rulemaking Update Applies to diesel-powered highway vehicles 10,001 pounds or more gross vehicle weight rating; applicable to most commercial diesel trucks, buses and most school buses. Not applicable to farm-related motor vehicles or motor homes. Restricts idling to a total of 5 minutes in any 60 minute period. Exemptions and longer idling periods are provided, if necessary. The owners of locations with 15 or more parking spaces must post no idling signs. The final rulemaking is expected to annually reduce PM2.5 and NOx emissions by 30 and 1,600 tons, respectively.

    21. Proposed Rulemakings: Control of NOx Emissions from Cement Kilns and Glass Melting Furnaces February 19, 2008 — the EQB approved the proposed cement kiln and glass manufacturing rulemakings designed to reduce NOx emissions and provide alternative compliance options. April 19, 2008 —the proposed rulemakings were published in the Pa. Bulletin; three public hearings were held. June 23, 2008 - the public comment periods closed. September 18, 2008– reviewed a summary of the comments during the Air Quality Technical Advisory Committee Meeting; comment and response document under development. The owner or operator of a glass furnace shall determine allowable emissions during the interval from May 1 through September 30, 2009, and each year thereafter, by multiplying the tons of glass pulled by each furnace by: (1) 4.0 pounds per ton of glass pulled for container glass furnaces. (2) 7.0 pounds per ton of glass pulled for pressed or blown glass furnaces. (3) 4.0 pounds per ton of glass pulled for fiberglass furnaces. (4) 7.0 pounds per ton of glass pulled for flat glass furnaces. The owner or operator of a Portland cement kiln shall determine allowable emissions of NOx by multiplying the tons of clinker produced by the Portland cement kiln for the period from May 1 through September 30, 2009, and for each year thereafter by: (1) 3.88 pounds of NOx per ton of clinker produced for long wet-process cement kilns. (2) 3.44 pounds of NOx per ton of clinker produced for long dry-process cement kilns. (3) 2.36 pounds per ton of clinker produced for: preheater cement kilns and for precalciner cement kilns.The owner or operator of a glass furnace shall determine allowable emissions during the interval from May 1 through September 30, 2009, and each year thereafter, by multiplying the tons of glass pulled by each furnace by: (1) 4.0 pounds per ton of glass pulled for container glass furnaces. (2) 7.0 pounds per ton of glass pulled for pressed or blown glass furnaces. (3) 4.0 pounds per ton of glass pulled for fiberglass furnaces. (4) 7.0 pounds per ton of glass pulled for flat glass furnaces. The owner or operator of a Portland cement kiln shall determine allowable emissions of NOx by multiplying the tons of clinker produced by the Portland cement kiln for the period from May 1 through September 30, 2009, and for each year thereafter by: (1) 3.88 pounds of NOx per ton of clinker produced for long wet-process cement kilns. (2) 3.44 pounds of NOx per ton of clinker produced for long dry-process cement kilns. (3) 2.36 pounds per ton of clinker produced for: preheater cement kilns and for precalciner cement kilns.

    22. Comments on Proposed Rulemaking: Control of NOx Emissions from Cement Kilns Applicability of the emission limitations. Applicability of the May 2009 compliance deadline. Limiting system-wide emissions averaging to facilities under common control. Use of CAIR NOx allowances as a compliance option. Applicability of Selective non-catalytic reduction control technology for long dry and wet kilns. Data substitution for continuous emission monitoring systems.

    23. Comments on Proposed Rulemaking: Control of NOx Emissions from Glass Melting Furnaces. Applicability of proposed emission limits. Applicability of the May 2009 compliance deadline. Use of CAIR NOx allowances as a compliance option. Limiting system-wide emissions averaging to facilities under common control. Alternatives to the continuous emission monitoring requirement. Use of 2007 NESHAP definitions rather than older NSPS definitions.

    24. Questions ???? Thank You.

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