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October 11, 2011 American Public Power Association Timothy Hunt

Boiler MACT, CISWI and Definition of Non-Hazardous Secondary Materials. October 11, 2011 American Public Power Association Timothy Hunt. Overview. Boiler MACT concerns Non Hazardous Secondary Material important Cost implications Review three part strategy –EPA, Hill and courts.

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October 11, 2011 American Public Power Association Timothy Hunt

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  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

  3. Recent Actions • Rules published March 21 – effective May 20th • EPA reconsidering portions of rule – proposal Oct 31st • 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 ???

  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

  5. Boiler MACT Capital Costs for Forest Products for Final Rules – if most materials are fuels

  6. Boiler MACT Capital Costs for Forest Products for Final Rules – if most materials are waste

  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

  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 can’t reliability meet Hg, HCl, and PM; discourages replacement of older boilers/modernization • Solution: test methods can’t 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)

  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

  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”

  11. Executive Branch Strategy • 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

  12. Legislative Branch Strategy • 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

  13. Judicial Branch Strategy • 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?

  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

  15. Boiler MACT Trade Group Supporters (Cont’d) 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

  16. Boiler MACT Trade Group Supporters (Cont’d) 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

  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

  18. Questions Tim Hunt AF&PA and American Wood Council tim_hunt@afandpa.org thunt@awc.org

  19. More Time is Critical for Testing

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

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