P. 1 

# OAR Box 

# 1865 Prepped by Charmelle Mathews



## Document

Number: 

# 57 ) IV-H- 4 Docket Number: 

# A-83-2 7

Printed 12/3/20089:15:29AM

Sheet 57 of 105# — 

# RADIA N A " § 2 " ^

CORPORATIO N I V n H

Februar y19 , 198 8

MEMORANDU

M TO : Fil e (Docke t No . A-83-2 7 ) FROM : D.M . Whit e W«#I #

Radia n Corporatio n SUBJECT : Interagenc yRevie w Material s Th e attache d document s wer e receive d prio rt o promulgatio n b yth e Offic e o f Managemen t an d Budge t an d forwarde d t o th e U.S . Environmenta l Protectio n Agency , Offic e o f Ai rQualit yPlannin g an d Standard s fo r 

### inclusio n i n thi s rulemakin g docket . Attachment s

Progres s Center/320 0 E . Chape l Hil l Rd./Nelso n Hwy./P.O . Bo x13000/Researc h Triangl e Park , N.C . 27709/(919)541-910 0 P. 2



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# * N 

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# Ot.'l •I /* , 

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COUNCI L O F INDUSTRIA L BOILE R OWNERS



### Novembe r 5 , 198 7

Mr . Nichola s Garci a Offic e o f Managemen t & Budge t 72 6 Jackso n Place, . N W NEOB , Rm . 301 9 Washington , D C 2050 3 Dea r Mr . Garcia : Thi s wil l confirmm ydeliver yt o yo u o f th e following document s relatin g t o th e propose d NSP S (S0 2 

### ) fo r industria l boilers : 1 . Nationa l Coa l Counci l Report , 6/8 6 2 . CIB O comment s t o EPA , 10/ 8 6 3 . CIB O petitio n t o EPA , 1/8 7 * Lette r t o CIB O fro mESI , 9/1/8 7 5" - Lette r t o CIB O fro mESI , 10/5/8 7 6
- Lette r t o ES I fro mUnite d McGill , 10/1/8 7 7.Variou s trad e pres s article s (1986 )
an yqu e Pleas e cal l m e i f yo u wis h additiona l informatio n o r h uestions . av e

WBM:bj f cc : Crai g Potter , EPA Wend yGramm , OM B Sincerel yyours , 'Willia mB . Mar x 

# THI S ENCLOSUR E MA

YB E FOUN D I N DOCKE TITEM : Enclosur e Enclosur e Enclosur e Enclosur e Enclosur e Enclosur e A-83-27 , IV-D-2 8

A-83-27 , IV-D-5 0 A-79-02 , A-83-27 , A-83-27 , VI-D- 2

IV-D-10 7 IV-D-10 6 A-83-27 , IV-D-10 7

!»S7B;!.'keCe:i!rt;r'a.-w,-.! ) Biik e VifQi'-„; i ?.\; :P. 5 lo e Csioian? o



### i j 

# i /*pS > A » L i 

# HhAB1 

# ^ (fu n Piwti^wra l w^n pif s EP A introduce s 90 % SO

? reductio n t o ne

w industria l coal - an d oil-fire d units . A n estimate d 25 0 planne d boile rproject s ma yswitc h t o natura l ga s 8

S a resul t industria l boile

r ow-ner s burnin g oi ! o

r coa l fac e ver y Btrin
3 gen t SOrCmiJsio n controls , eccordin | l o th e Lates t Bfw
tourc e performanc e standard s (NSPS ) propose db y th e EPA . Th e agency current! ) i s receivin g comment s fromintereste d panic s Thes e ma

y bt incorporate dint o th e final rule s whe n the y are issued , n o bir r

tha n No v J , 19S7 . A publi c bearin g o n th e proposal s wil

l b e hel din Durham , N C Sept 4-5 . Th e NSPS wil

l regulat e onl y ne w an dmodifie dindustria l boilers , wit

h capacitie s greater

tha n 2 9 MW (!CC'-rnjJhb: o Biu/hr) . Thi s mean s that

larg e institutiona l sn dindustria l facilities , a s wel

l a s smal l utility boiler s (heretofore unregu lated ) wil l be subject

t o controls—assumin g ther e ar e in o Change s t o the NSPS befor e they'r e finalized. Speci6ca!iy , boiler s mus t

achiev e a9C5

i reductio n in SO ; emission s white thos e emission s leaving the stack mus t contai n m

o more tha n 1. 2 J b o f SQj/millio n Bt

u Boiler s firing either

coal o r oi ) ar e subjec t t o th e ne w standar dThi s regulation , calle dpcrccnt 8| e reduction , force s eve n alow-sulfur-fuel user t o instal l additiona l SO ; control s a t s powerplant . (Oil-fire dboiler s wit h emission s of

0. 2 lb/millio n Bt

u o r ks s ar e exempte d fro mpercentag e reduction. ) Utilit y boiler s greater than 250
- millio n Btu/h

r ar e already subjec t

t o percentag e reduction TM s s dictate db

y NSP S issue di n 1979 . I t i s generall y accepte d tha i thi s regulatio n was devise da n orde r t o kee p th e bigh
julfur-coal industr

y competitive . I n the industrial NSPS , EP A claim s it

i s encouragin g tb e us e o f coal , isinc e the agenc

y recognLze s tha i some user s may switc h S o natural gas i

f contro l cost s ge

t lo o bi^h . Aa

y boile r wsin £new , "unproven " emission-contro l technologies—suc h a s limeston e injection—mus t reduc t SO ; b y 50 V bu t

stac k emission s are limite dt o jus t 0. 6 l b o f SO^/millio n Biu A a EP A spokesma

n explaine dtha t

th e lowe r standard s ^tr e t o promot e development

o f ne w technologies , bu t

th e stricte r stack emission s woul drequir e tha t thes e system s operat e onl y on low-sulfu

r coals . Th e Energy Secretary' s advisory group , th e Nationa l Coal Council , claim s that

th e propositi NSP S will increas e th e cos t © f producin g stea

mb y a t leas t $0.?0/millio » Blu—abou t SS7/lon . Tb e standard s wil l induc t man y user s O

o owjic h So Bsatura ! gas , annuall y displacin g abou t S.^-miJlio n Coo

s o f <w>al . B y 3950 . a

t feast 70 % o f al l oc w industria l boile r

capaci
t y (abou t 77 0 units ) wil l b e gas-fired , Sh e couoci l predicts; . ©bou t hal f o f Shi s total will hav e switchc* 3 t o avoi dsosiaJliR j 0uc-gJs~desulfurin»o n equipmen t EP A concede s that

then * will b e considerabl e feel switching. ' h i-stimale s tha t ga s twil l fue l 60%.o f Sh e ration' s eaparily . Coa l will b e use di n onl y 30-4 0 of th e flew 72 0 anil s expecte dt o S x ordere din Sh

e mM thre e years . Accordin g t o WilliamB Marx , presiden t ofth e Counci l o f Industria l Boile

r Owner s (CIBO) . "W e (coal users ) simp! ) canno t liv e wit h thi s rule. " Percentag e reduction , h e explains , will force boiler

owner s l o take expensiv e measure s t o meet th e standard s I

f onl y 8 stack-emissio n figure w-r« required , user s woul dhav e th e optio n o f usin. r lowjj-r.ulrur

fuels . B y makin g coal us e &

o expensive , th e propose dNSP S essentiall y regulate th e choic e o f

fue l fo r boile r owner s Thi s i s no t

th e jo b ofth e EPA , Mar * says. . CIB O member s er e likel y t o tak e on e o f tw o options : 5

n orde r t o completel y avoi dinstallin g anew boiler re-quiring Iflue-gas-desulfurizatior

i equipment , man y wil

l keep repairin g thei r old , unregulate dunits . Marx siote s tha t ihi s may , i n hex, imped e improvement s i n ai r quality , sine s dirty boiler s will no t b e graduall y retired . Th e secon doptio n will b e fue l switchin g Her ? boiler

owner s ma y face aproble mwit h Sh e Fue l Us e Act , whic h prohibit s th e us e o f oi l md £a s i n new boiler s afte

r 199 0 Thi s la

w ha s neve r

bee n enforce dby th e Reagan Administration , an dCongres s ha s recentl y bee n makin g move s l o repea l i l (POWER , Jun e S9S6 , p ?) . 

# I I mi l tw o year s ago , i t teeme dunlikel y tha t

EP A woul d develo p NSP S regulatin g boiler s smalle r fcn 7 3 M

W (2>0-rni!lio n Biu/hr) . B

n 1964 , [however , tw o environmenta l group s filedsuit

agains t tii e EP A claimin g tha t

th e agenc y wa s dawdlin g ove r

issuin g regulation s o n al l industria l units , which—unde r

th e Cka n Ai r

A damendment s o f

1977— shoul dhav e bee n issue di n 197 8 (PQWEJI , May 1984 , p 9) . A s part o f thei r claim , th e environmentalist s calle dfo r control s o n an y boile r

wit h acapacity ove r

SOO-millio

n Btu/hr . CIBO—actin g a s a

n interveno r

i n th e case—argue dthn t th e Cka n Ai r

Ar t wa s concerne dmoinl y wit h jiii'ity boilers . Whe n EPA ranke dimajo r source s o f

pollutants- , industria l facilitie s were place dUth . Further , Sh e e o unti l contended , th e Act grant s Sh e administrato r

tb e powe r

s o %&.. int o COB
aideralior ! other,rooncnvironro.es)fa ! factors,8uc! h sscos t an d energ y requirements., wftc n wsuiji&NFPS . Tbes e ima y exemp t man y o f tii e smal l boiler s from S'Sgubuon . Tb e court , Ekowcvci , roledin Cave r ofth e environmenta l groups , an dlat e i n S9S 5 ordere dth e nrjency *o develo p an d publis h SO ; NSP S fo

r boiler s grealc ; tha n SCO-n-.ilJio n Bin / hi. Thes e MSPS fciall EPA' s instate . Pcw»» . Augus t ves *P. 6

<f<3 

# I 

# &£

m WW iiMOI H M

0 (PIDBW ^
so b «£»»snjsrtia l 11 0 WAL L STREET , W.V. , W . V . 1000 5 FRIDAY , SEPTEMBE R 5 , 103 6



# E ! X H E 1 * fH \

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### H\ 1 

## r Im C ^ I f H I ? S w

" & •S i 

# Emissio n Control s T o Forc e Fue

l Switch ? WASHINGTO

N - Tb e Council o

f Industria l Boiler

Owner s sai d propose dfedera l regulation s o n emission s a t

coal an doil-fire d boilers , wil l forc e tb e industria l secto r t o us e othe r

fuels . WilliamB . Man , tb e council' s president , tol dan Environmenta l Protectio n Agency bearin g i n Nortf o Carolin atha t

mos t o f U.S . industry "wil l b e force dt o g

o of f coa J «a doi l altogethe r

a s the y expan do r

replac e existin g boilers " becaus e o f tb e cos t o f compliance . He sai dth e Industrial secto r wif l hav e to instal l costly equipmen t t o clea n u p th e emission s fromcoal an d oil-fire dboiler s andthat

suc h machiner y ca n cos t

a s muc h s s tb e boile r itself. Industr y comment s o

n th e propose drule s ar e due Oc t 2 an d ER A coul dIssu e afina

l emission s plan in December .P. 7 

# i I f %ps!f<Cl ^ I T Y 6>£H J 

## JiLgj& L iiX^4; L (Ur

n V Xk^L>N^i l A FAI R ".MI L D BUSINES S NEWSPAPE R VOL . 1 1 NO . 34 « MONDAY . SEPTEMBE R 8 . 195 6 

# JT iMSiSl^JSli^ g 

# Gbo' T ains t

Strict Emission s Stmiclari s B y VIRGINI

A BI1NE S VASHINGTON-Propose din
dustria l boile r

emission s stan dard s wouldforc e boiler

owner s t o instal l exorbitantl y expensiv e scrubber s o r

limi t thei r fuel sources , al l fo

r miniscul e en vironmenta l improvements , Bill Marx presiden t

o f th e Council o

f Industria l Boile r Owner s (Cibo) , toldth e En
vironmenta l Protectio n Agenc y las t week . Marx wa s testifyin g o

n th e EPA' s propose dNe

w Sourc e Performanc e Standards , whic h wouldrequir e aS

O percen t re ductio n i n sulfur emission s b y new industria l boiler s tha t bur n oil o r coal an dhav e abeat

inpu t o f 10 0 millio n Bt

u o r more . Furthermore , th e ne

w boiler s wouldhav e an overal l emission s limi t o f 1. 2 pound s o

f sulfur pe r millio n Bt u o f hea t input . Mar x complaine dthat

util
ities , which produc e fa

r mor e sulfur pollutio n than industry , ar e onl y require dto lowe

r sulfu r emission s b

y 70 percen t

unde r curren t policy . Accordin g t o EP A estimates , industry con tribute s ©nh

y 1. 5 percen t

o f sulfur emission s i

n th e county . Scrubbe r system s cos t million s o f dollars , doublin g th e expens e o

f new boilers , Mar x noted . Additionally , scrubber s ar e a maintenanc e proble man dma y no t alway s mee t

th e emission s contro l performanc e standard s for whic h the y ar e d-esigned . B y makin g ns w boiler s a n Wiettractiv e alternative , • 8h a propose drul e tvU

l encourag e user s t o kee p thei r

old , d\riy boiler s in service , which wil l (ul
timatel y imped e progres s agains t ai r oollution , Marx p?e

> dieted . ' Cib o recommend s a n emiss
ion s limi t o f 1. 6 pound s o

f sulfu r pe r millio n Bt

u o f heat inpu t for industria l boiler s betwee n SC O sn d250 millio n Btu ; with th e mor e stringen t

EP A figur e o

f 1. 2 pound s applie donl y t o boiler s ove

r 25 0 millio n Btu . Cib o recommend s agains t per" centag e reduction s require
ments . Th e onl y alternativ e t o scrub
ber s i s switchin g to cleaner
burnin g fuels , bu t

"industr y need s mor e —no t less-flexibilit y to obtai n th e mos t economi c fue

l for it s boilers, " Mar

x noted . Th e typical alternativ e fuel woul db e natura l gas , bu t ther e ar e several " problem s with switchin g t o ga s including : suppl y uncertaint y cause dby th e regulatory ' dilemm ao f Orde r 436 ; th e fac t

tha t ga s i s technicall y prohibite da s a boile r fue l b y th e Fue l Us e Act ; an dth e fact

tha t it i s mor e ex pensiv e than coal o r

oil , Mar a explained . *EP A clearl y ha s not

though t tin s rul e throug h rationally, " Marx concluded .

. Th e measur e i s widel y op pose db y manufacturer s an d cogenerators , amon g others . Comment s on th e propesc- d standard s ar e du e a t

EP A Oc t S . Th e sgenc v will issu e th e final standard s Befor

e Bee . I.P. 8



# s 

# ,_ . Lw

— Tuesday , Sep!emt>e

r 9 , 398 6 cw-r i

' " J 

# I 91 5 15th Sneet . N W Suit e 400 - [: , \\ b Washington . D. C 2000 5 vA . W 202-638426 0 

## Volum e 14 , Number

27 3 

# Ne w EP A Emission s Standar d >ee n Edgin g Ou t

Coa l en dOil l 

## b> B Y BRIA N SAL A Smal l iDdcstrjal boiler s snlJ sto p burnin g coal an doil i f tb e Environmenta l Protectio n Agency' s rsrcend * propose dlacv i sourc e performanc e standard s or e implemented , representative s from hotte r owners , roanufsctorer* tun. coa l coi-spitnie s sai dlas ? wee k l aDurham , N.C . Tb e testimon y cam e 8 a r«pons e J

o apropose dEP A rul e requirin g new , smal l {10 0 t o 25 0 millio n Biu ) industria l boiler s t o anre t bot h a3. 2 pound s sulfur diosjd e pe

r millio n jB. u emission s standar daa dachiev e a9 0 percen t SO * emission s redoctjoa , EPA' s proposa l t o cu t

SO j emis
sion s b y 9 0 percen t

i s "regulator y overkill, " insiste dWilliamB . Marx , presiden t of th e Counci l o f

In
dustria l Boile

r Owner s (CIBO) . Th e proposa l doc s no t

meet "ih e stan dard s o f cos t effectivenes s an d reliabilit y cite db y th e courts " i n thei r interpretatio n ofth e Clea n Ai r Act , h e said , brandin g th e proposal s a s "uDfair , unrealisti c an d untenable. " Sai dJame s D . Beatty , a n en vironmenta l technolog y manage r fo r Procte r & Gamble : "Th e pro pose dstandard s ar e counterproduc
tive . The y will no t

achiev e ou r ujutua j goa j o l cleane r

air. " Th e standard , whic h woul dre quir e ne w industria l boiler s t o reduc t SO , emission s b y S

O percent , compare dt o onl y 7 0 percen t fo r utilit y boilers , ignor e economi c reality , Beatty said . " A recen t CIB O surve y showe dtha t § 0 percen t o f ne w industria l boiler s wer e replacemen t

units . Thes e replacement s wer e justifie db y economic s a s companie s retire d older , les s efficien t

an dmor e pollutin g units " with mor e efficien t unit s whic h pollute dless . "Thes e propose dregulation s increas e bot h th e capita l cos t

an dth e operatin g cos t o f areplacemen t 'boiler....[Replacement

j Infer s that ' [previousl y ma y hav e bee n economicall y justifie dno w wil l no t be/ ' Th e Nationa l Coa l Associatio n i s als o worrie dabou t

th e proposals , sai dNC A spokesma n Jerr y Lom
bard s Th e standard s woul ddiver t industria l boile r

operator s fromus in g coal , becaus e "afte r

1990 , ama jo r portio n o f

th e large-scal e stea m industria l boile r

populatio n will hav e reache dth e en do f it s usefu l lif e an dwil l b e replaced. " I

n orde r t o cop e wit

h th e standards , industr y wil l b e force dt o tur n t o natura l gas . Thi s wil l caus e coa l t o "los e amajo r portio n o f

it s existin g market " becaus e o f

th e cost s th e standard s woul dimpos e o n coa l users . Ga s coul dsoo n b e th e fuel o f choic e fo r industria l boilers , agree d WilliamAxtman , executiv e directo r o f th e Arlington , Va.-base d America n Boile r

Manufacturer s Associatio n (ABMA) . "Th e NSP S requirement s will driv e industria l fuel selectio n toward?gas, " b e said . "ABM A i s oppose dt o aregulatio n tha t drive s th e industria l fue l selec
tio n t o gas. " Bu t EP A disagrees . Althoug h fue l switchin g fro mcoa l an doil i s ex pected , sai dth e agency , "th e impac t o f thi s o n coal , oi l an dnatura l ga s market s woul db e small. " Th e propose dstandard s ar e pro jecte dt o reduc e SO s emission s fro m 53 0 t o 2,67 0 ton s ayear pa r steai a generatin g unit . EP A estimate s tha t b y th e fifth yea

r o f jmplenwatatioo , nationwid e emission s woul db e co t b y u p t o 320,00 0 ton s pe r year . Th e boilerrnake r associatio n question s EPA' s projections . AB
M A reckon s growth rate s for in
dustria l boiler

unit s are "wel l belo w EP A projections...land ] therefor e th e overal l effect

o f ai r quality im
provement s ar e mostl y overrated. " Typical small steamgeneratin g unit s wil l cos t fro m4 : 2 5 percen t mor e wit h th e new standard s tha n withou t them , accordin g t o EP A estimates . Annualize dcost s woul d increas e from6-22 percent . Nation
wide , say s EPA , fifth-year annualiz
e dcost s woul db t

abou t Si6 5 million—o r

4 percent—highe r

tha n at th e regulatory baselin e becaus e o f th e ne w standards . Th e boiler

owner s charg e tha t EP A i s mistake n t o plac e wha t ihe y see a s aheavy burde n o n America n industry" , particularl y considerin g that industria l SO.
- emission s hav e decline ddramaticall y ove r th e pas t decade—4 6 percen t

from1972-39S 4 accordin g t o CIB O data . "Industr y doe s no t believ e tha t

Congres s in
tendedth e 1977 Clean Air Ac t per cent reductio n requiremen t

t o appl y t o industria l units, " sai dCIBO' s Mars . "Eve n withou t furthe r regulation , [industria l boile r emis
sions ) woul dcontribut e les s tha n 1. 5 percent of th e tota l U.S . sulfu

r diox
ide emissions. " Adde dNCA' s Lombardo : "EP A ha s no t adequatel y demonstrate da technolog y for

coa l firedunit s afte r takin g int o consideratio n cos t an d encre v requirements , shor t o f simp
l y suggestin g us e o f

natura l ga s na tionwid e i n thi s categor y o f sources. " EP A i s simpl y "establishin g nationa l energy polic y withou t trul y considerin g o

r analyz
in g th e impac t

o f tha t decision, " ih

e said . CIBO' s EP A testimon y com? s on th e heel s o f

objection s i

t presente d t o th e Hous e Energ y rin

dCommerce ' Committe e regardin g propose d;>.c!& I T ai n legislatio n (H RC-S7) . Thi s oill seek s t o includ e industria l boii«*r $ unde r a1.2 pound s per

millio n Bt

u sulfur emission s standard . EP A i s schedule dl o issue
- .< • fina l standar dn o bte r

the n Decer

n L:< r 1 , 19S7 . Tii e agenc y i s -'ikin g for com ment « fi n »K>
- WIP ? .-tr,~i*^r*.ril

Si . <rv »P. 9 A McGraw-Hil l Publicatio n VOL . 1 2 NO . S£ Septembers . 18& S

ifvtuty^^ ^'•iwwiini * I' I » IT " rt i A n Inie'i.pt-nc e Servic e fo ' ERetuiivc n Covenn g U 5 Stea m Coa l Pntfc i Wa-teu . Politic * 6 Economi c , tJCESmt.rlJ'N.-WOIiKS a

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## O O VERNrV I Efo

f r NCA , BOILE R OWNER S ATTAC KEPA PROPOSA L O N SULFU R RESTRICTION S Representative s fromth e coal an dindustria l boiler industrie s las t week blaste dth e Environmenta l Protectio n Agency' s ne w indus
tria l boiler

standards , callin g o n EP A t o consider an dresubmi t aproposa l limitin g sulfur dioxid e emission s fo

r boiler s smalle r tha n 25 0 mrnBtu/hr . EPA' s curren t

proposa l woul drequire new or modifie dsteam generate dunit s o

f 10 0 rnmBtu/h r

or more t o mak

e a90 % reduc
tio n in sulfur , dioxid e emissions . Boiler s wit h scrubber s woul d hav e t o mak e a50 % cut . Th e rul e woul dappl y t o industna l boilers , larg e institutiona l an dcornmerciar-boiler s an dsmal l util
it y boilers . Th e Nationa l Coa l Assn. , alon g wit h th e Counci l o f

Industria l Boile r Owners , say s suc h astandar dwoul dforc e man y indus
tria l coal user s t o switch t o natura l ga s o r t o exten dth e live s of existin g boilers , whic h ar e ofte n dirtie r an dles s efficient

tha n ne w boiler s o n th e marke t today . Instead , NC A urge s EP A t o resubmi t aproposa l tha t

woul d limi t emission s only fro munit s larger tha n 25 0 mmBtu/hr . NC A say s tha t EP A shoul ddetermin e fro mpubli c commen t whethe r alimi t shoul db e impose do n unit s betwee n 100 an d25 0 mmBtu/hr . I n it s testimony , CIB O propose s th e followin g new sourc e per formanc e standar drequirements : continu e th e curren t emissio n limi t of 1.2 Ibs./mmBt u sulfu r

fo r industria l boiler s large r

tha n 25 0 mmBtu/hr ; appl y ane w limi t of 1. 6 Ibs./mmBt u sulfur

for boiler s betwee n 100-25 0 mmBtu/hr ; an dt o scra p th e ide ao f

a percentag e reductio n requirement . Comment s o n th e EP A proposa l ar e du e Oct . 2 . A standar di s t o b e issue db y Dec . 1,1987 .•ri r . P.1 0



# CHEMICA L MARKETIN G REPORTE R Septembe r

2 2 398 6 Iff , 

# lor Kuiesiai v p^i or* Environmenta l Protectio n Agency ts threatenin g l o handAmerican industr y a Hobs.on' 5 choic e betwee n unaffordabl e boiler emission s control s an

dlimite d fuel source s in orde r

l o obtai n miniscul c environmenta l improvements , agroup o f industria l boile r

owners - 5. 1 ys . Th e Council o l Industria l iVdle r Owners (CIBO) . representin g 5

0 U S industrial firm s tha t rel y o n avariety ol Joel source s Jo r their operations , say s tha

t propose dlimitation s o

n Sulfu r emission s fro

msmall , new . industrial boiler s tha t

bur n coa l o r oil ar e unfair , unre - alisti c anduntenable . The proposals . kno» n a s Ne w Sourc e Per
- formanc e Standard s (NSPS ) fo r industria l boilers , woul

drequir e 9

0 percent reduction s i n sulfu r emission s fro

mne w equipmen

t eve n though th e agenc y estimate s suc h equipment vil l contribut e a t

mos t only 1. 5 percent o f Iota) I' S sulfu

r emissions . CIB O say s Utilit y emissions , whic

h account fo r fa r mor e sulfu r i n th e air . ar e no

t a s lightl y regulated.CJB O adds . STRINGENT REGULATIONS Willia mB Mars , president

o f CIBO . says . "Th e only na y fo

r u s l o mee t

thes e regula
- tion s andstil l b e abl e t o bur n coa l o r oi l wil l b e to addextremel y costl y andunreliabl e desulfurizatio n scrubber s J o sne w boilers . Scrubber s cos ! a s much a s Ihe boile r itself — doubling Sh

e cos t o f eve n 3 smal l unit

l o perhap s H

millio n —andthey cannot hol du p t o th e 9 8 percen t

reliability deman do

f indus
- try " "Most o f American industr

y w ill be forced l o j o ol f coa t andoil altogethe r

a s they eip.indo r replac e existin g boil?rs. " Mr. Mara assert s "The y wil l b e force dt o bur

n natura l gas . e\e n ihoupMh e ability t o obtai n i t on s long
- term , non-mterruptibl e basi s i s amatte r o f dfbate . Furthermore , ttu

> 197 B Fur l Use Ac

t prohibit s th e us e o

f natura l ga s a s afcoiler luc l unles s a

n exemptio n t s obtaine dIndus
- try need s e&or

e —r>o t IK S —flexibilit

y t o obtai n th ? snos t

economi c lue l Jo

r it s toilers. " Ironically . Qh

e overl y stringen t

NSP S will encourag e eaduslr

y t o cnlerx l th-

r live s & f ?3
- iMinr. boilrn . uhicl i ar c dirtie r an dles s G»JIi
cicnt than &rw boiler s on th,
- marke t 5o<5ay , Mr . Mar asay s "Th e f»l 2 actuall y will kn
- ptnl c Improvement

SH I iii r quality. " he aays . "EP A elratly &ar

. uol though t llbi s ral e throug h ratKKially. " BOIIM Mj-reate-.siea

mfo r Mus t ry' s proces s us^s . spac e r.ealin

j p.a delectricity produc
- tio n The y bur n no l onl y fossi l fuel s bu t als o plant-generate dwaste s an daccoun t fo r abou t tw o third s o f th e fue l burne dh\ indus
- try . Th e proposa l discriminate s agains

t indus
- tr y $>) rrquwins ; i

l l o mm . . pfirrn t

sulfu r reductio n regardles s o

f th e fuel' s sulfu

r con- tent , whil e earlie r

NSI' S allowedutilitie s burnin g low-sulfu

r coa l l o redur e emission s b y onl y 7 0 percent , CIB O say s Utilit y boiler s ar e abou t 3 0 time s a s bi

£a s industrial units , andhenc e emi t

more . CIB O aLs o comment s tha

t utilit y boiler s hav e economie s o

f scal e tha t industrial unit s lack , makin g scrubber s proportionat e les s costl y fo r them , an dtha

t utilitie s d o no t nee d th e same reliabilit y industr y need s i n boiler s becaus e utilitie s hav e interconnection s throug h v . hic h to ge t emergenc y pov

i e r i n th e event tha t aboile r scrubber break s down , a s the y ofte n do . CIB O propose s Sh

e following ftSPS re - quirement s • Continuatio n o

f th e curren t

emission s limi t o t I 2 pound s sulfu

r pe r million Bl

u hea t input fo r industrial boiler s large r

tha n 25 0 millio n Bt u o A new . emission s limi t

o f 1 6 oound s sul
- fu r pe r millio n Bt

u fo r smal l boiler s (10

0 millio n l o 250 millio n Btu ) o N o percentag e reductio n requirement , thereb y allowin g industr y th e freedomt o choos e the mos t

economi c fue

l source s an d mos t appropriat e emissio n contro l technolo
- gie s —including emergin g technologie s —t o mee t th e emission s caps . "Thi s NSP S fail s l o meet

criteri aunde

r th e Clea n Ai r Ac t — reaffirme di

n cour t —Jo r EP A to bas e it s regulatio n © n acost-effec
- tive , achievable , reliabl e an dadequatel y demonstrate dcontro l technology. " M r Mant concludes .

### INDUSTRIA L BOILE R ± L 

### NE W SOURC E PERFORMANC E STANDAR D introductio n Aci d rai n proposal s hav e bee n a featur e o f th e congressiona l scen e fo r severa l years , th e mos t recen t bein g th e Sikorski
Waxma n Bill , H.R . 4 567 , no w befor e th e Hous e Energ yan d Commerc e Committee . Thi s proposa l woul d impos e stringen t emission s con trol s o n virtuall yth e entir e rang e o f industria l combustors , whethe r existin g o r new : boilers , heaters , kilns , furnace s an d ovens , a s wel l a s additiona l control s o n utilit yboilers . LES S KNOW NT O TH E BUSINES S COMMUNITY , HOWEVER , TH E ENVIRONMENTA L PROTECTIO NAGENC Y HA S JUS T PROPOSE D STANDARD S FO R TH E CONTRO L O F S0 2 

### EMISSION S FRO M NE W INDUSTRIA L BOILERS , EVE NMOR E STRINGEN T THA NTH E CURREN T UTILIT Y BOILE R STANDARD . THU S AMERICA NMANU FACTURER S AR E FACIN G TH E DOUBL E WHAMM Y O F ASTANDAR D FO R NE W BOILER S ONTO P O F TH E THREA T O F A NADDITIONA L STANDAR D REQUIRIN G EXPENSIV E CONTRO L O F EXISTIN G UNITS . Background Th e standar d propose d byEPAi n Jun e (Federa l Reg i ste r 6/19/86 ) woul d requir e expensiv e utilit ytyp e contro l equipmen t o n al l industria l boiler s abov e a certai n siz e (hea t inpu t capacit yo f 10 0 millio n BTU/hr ) eve n thoug h thei r mea n siz e i s les s tha n l/30t h tha t o f utilit ysteamgenerators . Thi s piec e o f regulator yoverkil l unfortunately , als o ignore s thes e facts :
° Industria l boiler s d o no t enjo yth e economie s o f scal e s o tha t th e America n consume r ttfil l pa yu p t o 5 x th e cos t pe r to n o f pollutan t removed , a s compare d t o th e les s expensiv e utilit ycontrol ?

### Sndustsria l Boiler-NSP S ~~— : 

### ;

pag e 2
* Industria l boiler s serv e manyfunctions , experienc e a rang e o f servic e loads , ©n d mus t b e abl e t o bur n a wid e variet yo f fuels , includin g process-generate d wastes ; ° Industria l boiler s d o no t hav e acces s t o th e back-up availabl e t o utilit ygenerators , i.e . th e electrica l grid , and thu s demand a highe r standar d o f boiler
contro l equipmen t syste mreliability ; ° Industr yoperate s i n a competitiv e marketplac e an d ca n suffe r irreparabl e financia l damag e whe n subjec t t o unwarrante d sever e regulation ; ° Industria l boile r emission s ar e insignificant ; eve n withou t furthe r regulatio n woul d contribut e les s tha n 1.5 % o f th e tota l U.S . sulfu r dioxid e emissions . Importanc e o f Industria l Steam ; Industria l Energ yDs e an d Bmission s Th e importanc e o f industria l steam i s clear : approximatel y 2/ 3 o f al l fue l burne d b yU.S . industr yi s consume d t o rais e steam . Virtuall you r entir e manufacturin g bas e depend s o n stea mt o produc e it s products , eithe r fo r proces s use , t o driv e mechanica l equipment , fo r spac e heating , o r fo r on-sit e electric
it ygeneration . Becaus e o f thes e manystea m uses , industr yi s abl e t o us e th e maximu mamoun t o f hea t presen t an d thi s fact , togethe r wit h vigorou s industria l energ yconservation , mean s tha t overal l industria l energ yefficienc yi s twic e tha t o f th e utili
ties . Thu s tota l industria l energyconsumptio n ha s actuall y decrease d fro m1972-1984 , accordin g t o th e Departmen t o f Energy . Concurrently * industria l SO 2 emission s i n th e sam e perio d hav s p.1 2. P.1 3



### Industria l Boile r NSP S pag e 3 decline d 465 , «

a fac t note d b

yth e "Join t Repor t o f th e Specia l Envoy s o n Aci d Rain. 9 1 

### Finally , industr ydoe s no t believ e tha t Congres s intende d th e 197 7 Clea n Ai r Ac t precen t reductio n requiremen t t o appl yt o industria l units , no r doe s th e proposa l mee t th e standard s o f cost-effectivenes s an d reliabilit ycite d b yth e courts . Th e frjeeds o f Industr yand th e Publi c Interes t N o singl e domesti c energ ysourc e ha s contribute d mor e tha n coa l toward s America n energ y(an d national ) security , an d ye t a s proposed , thes e Ne w Sourc e Performanc e Standard s (NSPS ) wil l sto p industria l coa l us e fo r ne w boiler s pushin g industr yonc e agai n toward s insecur e energ ysources . T o compet e i n inter
nationa l markets , industr ymus t b e assure d a reliabl e suppl yo f competitiv e fossi l fuels , thu s providin g essentia l fue l flexi
bility ; wit h promulgatio n o f thi s standar d an d th e consequen t forclosin g o f th e coa l option , industr ywil l los e thi s flexi
bility . Toda ymuc h o f U.S . industr yha s exces s steam-generatin g capacity , an d wil l add ne w boiler s largel yo n a replacemen t basis . Thes e ne w unit s wil l retir e existin g boilers , th e ne t effec t bein g a fla t o r declinin g U.S . boile r inventor yi n th e nea r future . Thu s investmen t i n mos t ne w installation s wil l b e mad e onl y •v/he n soun d financially . Becaus e thes e boiler s wil l generall y b e les s pollutin g tha n thos e the yreplace , a n automati c emission s reductio n wil l b e achieved . I t i s important „ therefore , that . regulatio n b e cost-effectiv e s o tha t thi s proces s no t ha„..„„ _ . _p

1 4 

### pag c 4 'impeded . I n mos t case s th e presen t proposa l wil l forc e th e fue l switchin g referre d t o above , counte r t o th e nation' s energ y policy . Kher e a compan ywishe s t o bur n coal , i t sma yb e force d t o us e flu e ga s desulfurizatio n (FGD o r "scrubber" ) systems , whic h d o no t mee t th e 98 % reliabilit ycriterio n routinel y demande d b yindustry . An unfortunat e sid e resul t wil l b e a dryin g u p o f fund s fo r th e developmen t o f promisin g emergin g contro l technologies , whic h ma yb e mor e cost-effectiv e whe n brough t t o th e commercia l stage . Conclusio n Sec . Il l o f th e Clea n Ai r Ac t require s th e EP AAdministrato r t o establis h NSP S "takin g int o consideratio n th e cos t o f achievin g suc h emissio n reduction" . Th e Distric t o f Columbi a Circui t Cour t ha s sai d tha t ".. . ..EPA.. . .mus t exercis e it s discre
tio n t o choos e a n achievabl e emissio n leve l whic h represent s th e bes t balanc e o f economic , environmenta l an d energyconsidera
tions... " Industr ybelieve s tha t i n proposin g thes e regulation s EP Aha s clearl yfaile d t o achiev e thi s balanc e an d i n s o doing , adde d a n unnecessar yregulator yburde n t o th e nation' s basi c industries, , no w facin g unprecedente d competitiv e threat s i n th e worl d marketplace . Thi s proposa l shoul d b e vigorousl yoppose d b yth e industria l community .