UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

REGION IX AIR DIVISION

Technical Support Document

for

EPA ’ s Direct Final Rulemaking

for the California State Implementation Plan

South Coast Air Qualit y Management District Rule 1146 and 1146.1 Emissions of Oxides of Nitrogen from Industrial, Institutional, and Commercial

Boilers, Steam Generators

, and Process Heaters

And Emissions of Oxides of Nitrogen from Small Industrial, Institutional, and Commercial Boilers, Steam Generators, and Process Heaters

Prepared by: Nicole Law Reviewed by: Andrew Steckel

July 2014 2



Agency: South Coast Air Quality Management District (SCAQMD)

SIP Approved Rule s : Rule 1146

- Emissions of Oxides of Nitrogen from Industrial, Institutional, and Commercial Boilers, Steam

Generators and Process Heaters

Amended

– November 17, 2000
Submitted

– May 8, 2001 EPA Approved

– April 8, 2002 ( 67 FR 16640 )

Rule 1146.1

- Emissions of Oxides of Nitrogen from Small Industrial, Institutional, and Commercial Boilers, Steam Generators, and Process Heaters

Amended

– May 13, 1994
Submitted

– July 13, 1994 EPA Approved

– September 6, 1995 (60 FR 46220)

Superseded Submittals: Rule 1146

Amended

- September 5, 2008

Submitted

– July 20, 2010

Rule 1146.1

Amended

– September 5, 2008

Submitted

– July 20, 2010

Subject s of this TSD: Rule 1146

Amended

– November 1, 2013
Submitted

– May 13, 2014

Rule 1146.1

Amended

– November 1, 2013
Submitted

– May 13, 2014

BACKGROUND

– EPA previously proposed a limited approval and limited disapproval of both SCAQMD Rule s 1146 and 1146.1 as submitted on July 20,

2010

. The basis for our proposed limited disapproval was inconsistency with
Clean Air Act (CAA) requirements for enforceability and the national credible evidence rule from 1997 (62 FR 8314). The proposed rule making was never finalized, therefore the current rule revisions in the SIP are those approved on April 8, 2002 and September 6 , 1995. SCAQMD has since revised its rules to

address the deficiencies identified in our proposed limited approval/disapproval and submitted them to EPA on May 13, 2014. This TSD addresses the rules as submitted on May 13, 2014.

RULE SUMMARY

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Rule s 1146 and 1146.1 were amended to strengthen the NOx emission limits

, update compliance determination , and address EPA’s enforceability deficiencies

. A Compliance Schedule section was also added to Rule 1146 and updated in

Rule 1146.1

. Rule s 1146 and 1146.1 do not apply to RECLAIM facilities

. Changes from the approved SIP rule s include:

For Rule 1146:

1. Added several definitions in Section ( b ) and made numerous other editorial changes to improve clarity.

2. Revised the requirements in Section (c) to ad d tables for Standard Compliance Limits and Schedule and Enhanced Compliance Limits and

Schedule. Both tables introduce lower NOx emission limits as well as compliance deadlines.

3. Added a formula in Section (c) to address how a weighted limit is

calculated for dual fuel co

- fired combustion units, a dded requirements for maintaining records on tune

- up s , and a dded requirements for the owners and operators of Group II or II I units to submit a compliance plan.

4

. R evised the compliance determination Section (d) to limit source testing after tuning or servicing of units, clarify approved test methods, add testing frequency, and allow portable analyzers for diagnostic emissions checks.

This section was also revised to address EPA’s enforceability deficiencies.

5. Added a Section (e) Compliance Schedule to specify when operators and owners need to comply with specific rule provisions.

For Rule 1146.1 :

1. Added several definitions in Section (b) and made numerous other editorial changes to improve clarity.

2. Revised the requirements in Section (c) to add an emission s limit table with lower NOx emission limits and compliance dates.

3. Added a formula in Section (c) to address how a weighted limit is

calculated for dual fuel co

- fired combustion units. This section also added

a CO limit for natural gas fired units and requirements for maintaining

records of tune

- ups.

4. Revised the compliance determination Section (d) to limit source testing after tuning or servicing of units, clarifying approved test methods, add 4

 frequency of testing, and allow portably analyzers for diagnostic emissions.

This section was also revised t o address EPA’s enforceability deficiencies.

5. Revised Section (e) Compliance Schedule to update the applicable compliance dates.

EVALUATION CRITERIA

- The following criteria were used to evaluate the

submitted rule s

.

1. Enforceability

- The Bluebook ( Issues Relating to VOC Regulation Cutpoints, Deficiencies, and Deviations , EPA, May 25, 1988) and the Little Bluebook ( Guidance Document for Correcting Common VOC & Other Rule Deficiencies, EPA Region 9, August 21, 2001) were used to help evaluate complian ce with the CAA § 110(a)(2)(A) requirement for enforceability.

2. Stringency

- EPA ’ s Alternative Control Techniques Document (ACT ) titled, “NOx Emissions from Industrial/Commercial/Institutional (ICI) Boilers” (EPA

45 3 / R

- 94

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, March 1994 ), CARB ’ s RACT/BARCT guidance titled, “Determination of Reasonably Available Control Technology and Best Available Retrofit Control Technology for Industrial, Institutional, and Commercial Boilers, Steam Generators, and Process Heaters” (July 18, 1991), and other state and local rules for this category were used to help evaluate the RACT requirements of CAA § 182(b)(2) and § 182(f).

3. SIP Relaxation

- CAA § 110(l) prohibits EPA from approving any SIP revision that would interfere with any applicable requirement concerning attainment and reasonable further progress (RFP) or any other applicable requirement of the CAA. In addition, CAA § 193 prohibits the modifi cation of any SIP

approved control requirement in effect before November 15, 1990, in a

nonattainment area.

EPA EVALUATION

- A summary of our evaluation of the three criteria follows.

1. The rule requirements and applicability are clear, and the testing

, recordkeeping, reporting and other provisions sufficient ly ensure that affected sources and regulators can evaluate and determine compliance

with Rules 1146 and 1146.1 consistently.

2. The submitted rule s are more stringent than CARB ’ s RACT/BARCT

g uidance and other California District rules for this category , including San Joaquin Valley Unified Air Pollution Control District (SJVUAPCD) Rules

430 6 and 4307 and Sacramento Metropolitan Air Quality Management District (SMAQMD) Rule 411 . The rule requirements are also comparable

to those described in EPA’s 1994 ACT . As a result, we have determined

that this rule is as stringent as other California District rules for this category

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3. W e propose to determine that our approval of the submittal would comply
with CAA §§ 110(l) and 193 because (1) the proposed SIP revision would

not interfere with the on

- going process for ensuring that requirements for RFP and attainment of the NAAQS are met, and (2) the emission limits in

the submitted r ule are more stringent than the existing SIP

- approved control requirements that they would replace.

Additional discussion of specific issues follows.

1. RACT discussion

- The submitted rules 1146 and 1146.1 are only applicable to sources that are not subject to RECLAIM, as is described in the applicability section of the rules and Table 1 in SCAQMD Rule 2001. RECLAIM covers all major NOx sources, therefore rules 1146 and 1146.1 are not required to fulfill RACT requirements. However, even if RACT were required, we believe these two SCAQMD rules would likely implement RACT for NOx emissions. The emission limits are comparable to emission

limits in SJVUAPCD Rules 4306 and 4 307 and SMAQMD Rule 411. Additionally, the submitted rules are as stringent as CARB’ s RACT/BARCT guidance and there is no CTG for this category.

2. RACM discussion

- CAA §172(c)(1) requires implementation of all reasonable available control measures (RA CM) for Ozone and PM2.5 as expeditiously as practicable in SCAQMD. As described above, we believe that the NOx emission limits in the submitted rules implement RACT for NOx. As a result, we believe that this demonstration is sufficient to

determine that the rule r equires all measure s that are “reasonably available” within the meaning of RACM under CAA §172(c)(1). In separate rulemakings, EPA will take action on the State’s RACM demonstration for

PM2.5 and Ozone based on evaluation of the control measures submitted as a whole and their overall potential to advance the applicable attainment
dates in the South Coast area.

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. Enforceability discussion

- The previously submitted amendments of rules
1146 and 1146.1 were not finalized into the SIP due to rule deficiencies regarding enforceability and the national credible evidence rule from 1997. The rules precluded the use of both source test data and portable analyzers test results from being used to prove a violation of the emission standards in the complia nce determination sections (d) in both rules. The

rules now clarify that emission checks of NOx emissions, CO, and oxygen analyzers done by the operator or owner are used as a diagnostic tool for monitoring purposes, while diagnostic emission checks condu cted by

District staff will be used to determine rule violations. Additionally, the language stating that source tests shall not constitute a violation has been removed. We agree that the District has addressed the enforceability and

credible evidence co ncerns in th e s e new rule amendment s

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RULE DEFICIENCIES

- We have identified no deficiencies with Rules 1146 and 1146.1 sufficient for EPA to propose less than full approval.

ADDITIONAL RECOMMENDATIONS FOR THE NEXT RULE REVISION

- The following revisions are not currently the basis for rule disapproval, but are

recommended for the next time the rule is amended.

1. To improve clarity and enforceability of section (d)(2) in rules 1146 and

1146.1 , consider defining the terms “as

- f ound operating condition,” “unscheduled repair,” “start

- up,” and “shutdown.” As they pertain to this

rule. These definitions should be consistent with EPA Excess Emission Guidance (September 20, 1999), where appropriate. Please also consider adding reco rdkeeping requirements to this provision to demonstrate unscheduled repairs and operating hours.

EPA ACTION

- The submitted Rule s 1146 and 114 6 .1 strengthen the SI P by lowering NOx emission limits and clarifying rule provisions . The 2008 final staff

repo rt for Rule 1146 projected the rule would reduce NOx emissions by approximately 1.2 tons per day beginning in 2015 and the 2008 final staff report for Rule 1146.1 projected the rule would reduce NOx emissions by approximately 0.29 tons per day beginning in 2015. The rule s fulfill the relevant CAA § 110 and part D requirements

. Therefore, EPA staff recommends a full approval of Rule s 1146 and 1146.1 pursuant to CAA § 110(k)(3) and § 301(a). 7

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REFERENCES

-

1. SCAQMD Rule 1146

, Emissions of Oxides of Nitrogen from Industrial, Institutional, and Commercial Boilers Steam Generators and Process

Heaters

, as amended on November 1, 2013 and submitted to EPA on May 13, 2014

. 2. SCAQMD Rule 1146.1

, Emissions of Oxides of Nitrogen from Small Industrial, Institutional, and Commercial Boilers, Steam Generators, and

Process Heaters , as amended on November 1, 2013 and submitted to EPA

on May 13, 2014

. 3. SCAQMD Rule 1146

, Emissions of Oxides of Nitrogen from Industrial, Institutional, and Commercial Boilers Steam Generators and Process

Heaters

, as amended on September 5, 2008 and submitted to EPA on July 20, 2010

. 4. SCAQMD Rule 1146.1

, Emissions of Oxides of Nitrogen from Small Industrial, Institutional, and Commercial Boilers, Steam Generators, and

Process Heaters , as amen ded on September 5, 2008 and submitted to

EPA on July 20, 2010

. 5. SCAQMD Rule 1146

, Emissions of Oxides of Nitrogen from Industrial, Institutional, and Commercial Boilers Steam Generators and Process

Heaters

, as approved into the SIP on April 8, 2002.

6. SCAQMD Rule 1146.1

, Emissions of Oxides of Nitrogen from Small Industrial, Institutional, and Commercial Boilers, Steam Generators, and

Process Heaters , as approved into the SIP on September 6, 1995.

7. “NOx Emissions from Industrial/Commercial/Institution al (ICI) Boilers,”

EPA

- 45 3 / R

- 94

- 022, March 1994.

h ttp://www.epa.gov/glo/SIPToolkit/ctg_act/199403_nox_epa453_r

- 94

- 022_ici_boilers.pdf

8. “Determination of R easonably Available Control Technology and Best Available Retrofit Control Technology for Industrial, Institutional, and Commercial Boilers, Steam Generators, and Process Heaters,” CARB, July 18, 1991. http://www.arb.ca.gov/ractbarc/boilers.pdf

. 9

. “ Issues Relating to VOC Regulation Cutpoints, Deficiencies, and Deviations, ” (a.k.a., Bluebook) EPA OAQPS, May 25, 1988 (web citation ).

10

. “ Guidance Document for Correcting Common VOC & Other Rule Deficiencies, ” (a.k.a., Little Bluebook), EPA Region 9, Augu st 21, 2001 (http://www.epa.gov/region09/air/sips/littlebluebook2001.pdf ).