Case by Case MACT under 112(g) Title V Permitting Meeting March 9-10, 2009

1. Case by Case MACT under 112(g)Title V Permitting MeetingMarch 9-10, 2009 Lee Page Air Toxics Assessment and Implementation Section EPA, Region 4, Atlanta, Georgia “Protecting Human Health and the Environment”

2. 112(g) Applicability: 63.40 • Constructed or reconstructed sources • New source must be major HAP source • Not specifically regulated or exempted from regulation

3. Prohibition: 63.42(c) • After effective date of 112(g) and Title V program, no person may begin actual construction of a major HAP source unless: • Specifically regulated or exempted • Final case by case MACT issued

4. 112(g) Roles and Responsibilities • Owner or Operator • Submit application with MACT proposal • Follow principles of MACT determination • State or Local Agency • Approve application/alternative limits • Issue MACT determination in writing • Provide public opportunity to comment • Issue permit • EPA • None

5. General Principals of Case by Case 63.43(d) • No less stringent than best controlled similar source as determined by Permitting Authority (PA) • Based on available information, shall achieve maximum degree of reductions, considering cost • PA can approve requirements other than emission limits • PA shall consider a proposed rule or presumptive MACT

6. Past Determinations in Region 4 • 112(g) Clearinghouse maintained by EPA Alabama - 4 Florida - 13 North Carolina - 6 South Carolina - 6 • Source Categories: Boat Mfg. Fiberglass Composites Metal Can Coating Plastic Composites Plywood & Wood Products Degreasers Paper & Other Web Coating Combustion Turbines

7. Two Current Examples • Birmingham – Southern Precision Sands • Sand coated with phenolic resins – molds for foundries • Similar sources in Chattanooga & Wisconsin • Adding new line (major HAP source) – no relevant MACT • Controls evaluated; cost prohibitive • Proposed MACT is limit on phenol in resins • Kentucky – LG&E • Adding new electric utility steam generating unit • Application submitted in 2004 (before MACT promulgation) • HAP limits in application based on MACT proposal • 112(g) applicable due to CAMR vacatur – 1/7/09 memo • Significant interest – major comments on MACT

8. Electric Utility Timeline and 112(g) • Dec. 20, 2000: Source category (SC) added to 112(c) list for regulation • Before 12/20/00, new sources exempted from 112(g) • After 12/20/00, new sources subject to 112(g) • Jan. 30, 2004: MACT & NSPS rules proposed • New sources continue to be subject to 112(g) • March 29, 2005: NSPS promulgated & MACT SC delisted • New sources comply with NSPS; no longer subject to 112(g) • March 14, 2008: NSPS vacated & MACT SC re-listed • New sources once again subject to 112(g) • New sources between 3/29/05 & 3/14/08 legally obligated to 112(g) requirements, per EPA memo dated 1/7/09

9. 112(g) & (j) for Utilities • Why 112(g) applies • 112(g): Where EPA has not established national emission standards, a major source is prohibited from construction or reconstruction unless State establishes case-by-case MACT • Awaiting 112(g) implementation guidance • Why 112(j) does not apply • 112(j): Applicable if EPA misses deadline for promulgation, pursuant to 112(e)(1) & (3) • 112(e)(1)&(3): EPA to regulate listed categories, pursuant to 112(c)(1)&(3), within 10 years of 1990 CAAA • 112(c)(1)&(3): EPA to list major and area source categories for regulation • 112(j) not applicable because category listed under 112(c)(5)

10. Additional Information • For air toxics information on: • Major Source Program • Residual Risk Program • Area Source Program • Many other areas • Go to: www.epa.gov/ttn/atw • Or call me: 404-562-9131 e-mail: page.lee@epa.gov