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# OAR Box 1875 Prepped by Ollie Stewart



### Document

Number: 

# 58 ) ll-F- 5 Docket Number: 

# A-90-1 9

Printed 12/1/200811:12:47AM

Sheet 58of 86P. 2 

# A-90-1 9 ll-F- 5

Jul y28 , 199 2

NOT E TO : Tro yHillie r Bruc e aske d m e t o sen d yo u thes e tw o memo s fro mth e member s o f th e Nationa l Governor s Association' s (NGA's ) Ai r Implementatio n Tas k Forc e HO NWor k Group . Bot h memo s discus s th e us e o f a discoun t facto r i n HO Nemission s averaging . W e wil l hav e a chanc e t o discus s thes e ideas , an d othe r idea s tha t th e . state s hav e abou t emission s averaging , i n ou r meetin g nex t week . Daphn e McMurre r 2 Attachment s cc : (w/ o attachments ) Dou g Bel l Lind a Herrin g Bruc e Jorda n Ja n Meye r Lydi a Wegma n 

## jj ) 

## B 6 E 0 w DE C EP A AI R DOCKE T

199 2 H wP. 3 

## /NATIONA L GOVERNOR S ASSOCIATIO

N Joh n Ashcrof t Governo ro f

Missour i Chairma n Ro y Rome r Governo ro f

Colorad o Vic e Chairma n 

### TU&$ 

## ./«iz *&***+

V Raymon d C.^Seheppac h Executiv e Directo r Hal l ofth e State s •*•»• * Nort h Capito l Stree t Washington . DC . :000I-I5" : Telephon e CO^ I &:•»•

< JO) 

# * + * +

**** * Jun e 1 , 199 2

MEMORANDU M TO : Willia mG
. Rosenber g FROM : Joh n Thomasiari^
. »*Vr ' '**>*+, Heid i Snc)^^^ ^ RE : Stat e Consensu s o n th e HO N Attache di s abrie f

summary o f

th e stat e environmenta l commissioners ' consensu s on HO N emission s averaging
. A s yo u recall , durin g ou r May conferenc e cal l th e commissioner s agree dt o participat e i n aseparat e conferenc e cal l an dmeetin g wit h Bruc e Jorda n an dhi s staf

f durin g th e mont h t o discus s th e HO N Rule
. Th e attache dconsensu s wa s reache dafter

further discussio n o f

thes e issue s amon g th e commissioner s prio r to th e State/EP A Operation s Committe e Meetin g o n May 28
. I n general , th e commissioner s support th e concep t

o f averagin g an dbeliev e i

t shoul db e pursue dif

certai n problem s ca n b e overcome . With regar dt o tw o o f thes e issue s - - interpollutan t

averagin g an dth e discoun t facto r —th e commissioner s wis h to wor k wit h EP A t o develo p acceptabl e solutions
. Th e State/EP A Operation s Committe e agree don Ma y 2 8 that

NG A woul dorganiz e aHO N workgrou p consistin g o f afe w Air Implementatio n Tas k

Forc e members , thei r

ai r directors , an dSTAPP A representative s to addres s thes e issues
. Th e grou p wil l work with EP A ove r

m e nex t month t o develo p a syste mfor

interpollutan t

tradin g an dajustifiabl e discoun t facto r tha t state s an dEPA ca

n support . Pleas e le t u s kno w i

f yo u hav e any question s abou t th e commissioners ' positio n or the HO N workgroup
.
cc : To mKiema n Jef f Clark ,/Bruc e Jorda n Bil l Becke r

### SUMMAR Y OF STATE CONSENSU S O N HON EMISSION S AVERAGING *

• Averagin g Perio d Th e stat e environmenta l commissioner s endors e th e curren t proposal' s averagin g perio d(three-mont h rollin g averag e measure do n amonthl y basis)
. The y believ e i t represent s areasonabl e compromis e o f industry an denvironmenta l concerns .
• Averagin g Amon g Existin g Source s Th e stat e environmenta l commissioner s endors e averagin g amon g existin g source s o f toxics , a s lon g a s othe r

enforceabl e requirement s (e.g
. performanc e standards ) remai n i n plac e a s well
. The y believ e thi s typ e o f averagin g wil l benefi t

th e environmen t an dprovid e industr y wit h th e flexibility neede dt o mee t environmenta l objectives
.

• Averagin g Amon g Ne w Source s Th e stat e environmenta l commissioner s d o no t endors e asyste mo f

emissio n averagin g amon g ne w sources . I t i s mos t cost-effectiv e t o pu t

state-of-the-ar t control s o n auni t

i s whe n i t

i s new . Moreover , m e commissioner s believ e MAC T allow s n o roo mfor

"unde r control " o n ne w units
. I n sum , di e commissioner s believ e toxi c emission s averagin g fo r ne w source s i s inconsisten t wit h m e Clea n Ai r

Act' s intent
.

• Interpollutan tAveragin g Th e stat e environmenta l commissioner s canno t endors e th e curren t

proposa l allowin g interpollutan t

averaging , eve n thoug h th e proposa l recognize s tha t ther e ar e potentia l healt h an denvironmenta l problem s associate dwith thi s averaging
. The y believ e tha t unti l acredibl e syste mthat assure s "ris k

equivalency " i s developed , interpollutan t averagin g shoul dnot

b e a n option
. Th e commissioner s propos e establishin g aworkgrou p t o work with EP A t o attemp t

t o develo p amutuall y acceptabl e syste mfor assurin g "ris k

equivalent " interpollutan t averaging
. " *

• Discoun tFacto r Th e commissioner s support th e concep t

o f adiscoun t

facto r t o accoun t

for th e uncertaint y associate dwith averagin g an dt o ensur e that th e margina l cost s o f reducin g pollutant s ar e share damon g industry an dth e environment
. However , the y ar e uncertai n whethe r

asingl e percentag e o r

asyste mmat

account s for

th e variatio n o f uncertaint y with eac h averag e shoul db e utilized
. Th e commissioner s propos e usin g th e above-mentione dworkgrou p t o attemp t t o develo p (with EPA ) a

n acceptabl e discoun t

factor
.

• The consensus was reached among state environmental commissioners participating in the State/EPA Operations Committee Meeting, May 28,1992.

Nationa l Governors ' Associatio n Jun e 1.199 2P. 5 

## NATIONA L ; OOVIRNOR S t ASSOCIATION Joh n Ashcrnf t Governo ro f

Missour i Chairma n Ro y Rome r Governo ro f

Colorad o Vic e Chairma n Ravmon d C Scheppac h Executiv e Directo r Hal l ofth e State s •»•»• » Nort h Capito l Stree t .Washington . DC . .'0O0I-I5 " Telephon e i JO- • ISJ4.5JU O 

# + + * + Jul y 21 , 199 2

MEMORANDU

M TO : Ai r Implementatio n Tas k Forc e FROM : Heid i Sno

v RE : HO

NWorkgrou

p Activitie s
O n Jul y2 0 Ta d Aburn , Kare n Olson , Bil l 0'Sulliva n an d I ha d a conferenc e cal l t o discus s th e discoun t facto r fo r emission s averagin g unde r the HON . Th e four o f u s agree d t o pu t fort h th e attache d discoun t facto r proposa l fo r you r review . A s indicated , th e syste mapplie s a discoun t facto r base d upo n whethe r us e o f th e HA P i s eliminate d an d ho w emissio n reductio n credit s ar e quantified . I n addition , give n stat e experienc e wit h emissio n modelling , th e grou p fel t tha t averaging shoul d b e use d t o overcontro l emission s fro munit s wit h shorte r effectiv e stac k heights . Th e grou p als o agree d tha t wastewate r emission s wer e ver y simila r t o fugitiv e emissions , an d sinc e fugitiv e emission s ar e exclude d fro

mth e averaging system , wastewate r shoul d b e treate d likewise . Relativ e impact s fo r emissio n average s wer e calculate d b y Kare n Olso n t o addres s concern s abou t dispersio n rate s an d abilit y t o predic t emission s fro mvariou s sourc e types . Result s o f thes e calculation s ar e attached . Pleas e revie

w th e ..attache

d proposa l an

d le t m

e kno w i f yo u hav e an y objection s t o presentin g i t t o EP

A tomorro

w durin g th e meetin

g wit h Bil l Rosenberg . I ca n b e contacte d a t 202/624-5384 .P. 6

' SE. M B

Y VJDE- E 21-3 2 ll'4'A M AI R 'JU L I T V RE G - '-'. , 2':-24Tor.o.. : 2 ' 4

Scott A . Weine r Commissioner

TO :

FROM : SUBJECT : SUtm of Ne w Jerse

y Departmen t

of Environmenta l Protectio n an dEnerg y Ai r Qualit y Regulatio

n Progra m CN02 7 Trenton . N

J 0862S-OO2 7

Jul y 21 , 199 2 MEMORANDU M Ai rImplementation Task Forc e HO N Workgroup Scot tWeiner , Commissioner , NJDEP E Ke n Alkema , Executiv e Director , Uta h Divisio n o f Environmenta

l Healt h Ta d Aburn , Marylan

d Ai rManagemen

tDivisio n Kare n Olsen , Texa s Ai rContro l Boar d Do n Theile rWisconsi n AirManagemen tBurea u (STAPP A representative ) Barbar a Kwetz , Mass . DE P Bil l Becker/Mar

y Sullivan Douglas , STAPPA/ALAPC O Heidi Snow , NG

A William O'Sullivan , NJDEP 4 Strategy t

o Discoun tAi rToxic s Emissio n Credit s to rEmissio n Averagin g Willia m OSullivan . P E Administrator

Attached i s a revise d strateg y a s resulto f

the 7/2 0 conferenc e call betwee n Kare n Olsen , Ta

d Aburn , Bil l O'Sulliva n an d Heidi Snow . I recommend tha

tthi s strateg

y b e share

d wit h Bruce Jorda

n ot * EP A a tthe 7/2 2 NG

A meetin g an

d discusse d wit

h Bil l Rosenberg o f

EP A a tth e 7/2 7 NGA meeting . Thi s ca n b e characterize d as a commo n sens e strategy , based o n technical considerations , bu

tsimpl e enough t

o b e workabl e an

d predictable . Th e mostcontroversial aspects o f

the recommendatio n ar e the "incentiv e to overcontro l shor tstacks " an

d the disallowanc e o f

credits forwastewate rtreatmen tove rcontrol . WOS/d f Attachment
c : AssistantCommissione rWeingar t Directo rWittenberg AssistantDirecto rElsto n Joan n Hel d

N<wj*n*y Ktn LfJtl Opportunity

UrfiU^m fecydetf Pipe/P. 7



### NG A CAA A Implementation Task Force HON Workgrou

p Recommended Discountin g Strateg y far A,i rToxic s Emissio n Reduction Credit s idr?
A . Discountin g Emissio n Reductio n Credit s Discountin g Facto r 0 %

10 %

20 % Applicabilit y Eliminat e us e o f HA P (Pollutio n Prevention) 0 

### '
Reductio n credits quantified by emissio n testing*2 1 

### Reductio n credits quantified b

y othe rmeans' 3 

### ' Rational e

Multimedi a benefit

s Certai n reductio n i n HA P Tes tresult

s generall y accurat e withi n 10 %
Sam e discoun tfacto ras in EP A emission s tradin g policy . Greateruncertaint

y in actua l reduction , i.e . calculatio n o f

storag e tan k contro l emissio n reductions . (1 ) No tincludin g sourc e shutdowns (productio n reductions) . (2 ) Stac

k tests o rcontinuou s emissio n monitoring . (3 ) Wastewate rtreatmen temission s reduction s ma y no tb e used forcredi tbecause ofth e ver y high uncertaint y (wel l ove r20% ) i n determinin g such emissions .P. 8

*
.
Industry' s Issu e

Baselin e fo r Determinin g Credit s Draf t doe s no t allo w credi t fo r control s installe d afte r promulgation , except : 1 ) Control s i n Earl yReduction s commitments ; an d 2 ) Pollutio n Preventio n measure s take n afte r 1987 . Reason s fo r thi s genera l credi t policy : 1 ) Emission s averagin g shoul d achiev e th e sam e o r greate r emission s reduction s a s poin t bypoin t compliance ; Creditin g control s i n plac e befor e promulgatio n woul d increas e emission s unde r averagin g relativ e t o poin t bypoin t compliance ; an d 2 ) Credit s shoul d onl yb e generate d whe n a sourc e ha s chose n t o g o abov e an d beyon d th e requirement s i n th e HON ; Emissio n reduction s fro mcontrol s i n plac e befor e promulgatio n woul d b e achieve d an d continue d wit h o r withou t th e HON . Reason s fo r th e exception s t o thi s credi t policy : 1 ) Incentiv e fo r Earl yReduction ; an d 2 ) Rewar d fo r innovation . Industr yconcerns : 1 ) Preceden t settin g disincentiv e fo r voluntar y controls ; an d 2 ) Inequitabl e —"dirty " plant s hav e mor e opportunit y fo r credits . Industr yidea : 1 ) Lis t som e specifi c inclusion s b ykin d o f poin t an d contro l devic e 2 ) Lis t som e specifi c inclusion s byprogra m(Earl y Reductions , 33/50 )P. 9

J C M Ii i .• j i'0CO' - 4 4



### B
. [nativ e t o Qverrnntro l Short Stark e 

## Inamiiye . Th e effectiv e stac

k heigh to f

air toxic s source s generatin g emissio n reductio n credits mustb e les s tha n th e effectiv e stac

k heigh to f

the source s wit

h les s tha n maximu

m achievabl e control technolog y (MACT ) withi n the MAC T average . Rationale . -Overcontroll in g lowe rstacks ca n caus e greaterairqualit

y benefit s tha n overcontro l of

highe rstacks . -Avoidin g di e control o f

lowe rstack s woul d resulti n ne

tadvers e ai rqualit

y effects. -Becaus e o f

order s o f magnitude difference s i n ai rqualit y effects , discountin g emissio n credits t o accountfo rstac

k heigh tdifference s i s no tuseful . -Effectiv e stac

k heigh ti s easil y calculated . Therefore , thi s provisio n i s easil y applied . -Stac k heigh tconsideration s can appropriately b e addresse d in a control technolog y rul e (analogou s t

o EPA' s Goo d Engineerin g Practic e stack heigh tpolicy) .



# JP.1 0

RELATIV E IMPACT S FO

R EMISSIO

NAVERAGE *
Emission s = 1 Ton/Quarter . STACK : Heigh t = 50 '

Diamete r = 2 ' Temperatur e = 140° F Velocit y= 2 5 feet/secon d Emission s = 20001b/mont h / da y 3 mo . /3 1 days / 24hr . = °' 9 lb/hour . 55. 6 microgram s pe r cubi c meter . TANK : Heigh t =18 '

Diamete r = 3 ' Temperatur e = 90° F Velocit y= 0.00 1 feet/secon d Emission s = 20001 b

23. 3 mo . = 85 ' 8 lb/hour . Assume : 2 turnover s pe r quarter .

10,00 0 BB 1 tan

k 60 0 gp

m 2 /lO.OOO / 4 2 / I /600/6 0 = 23. 3 hour s pe r quarter , 78,88 0 microgram s pe r cubi c meter . LOADING : Heigh t =10 '

Diamete r = 3 ' Temperatur e = 90° F Velocit y= 0.00 1 feet/secon d Emission s = 62.81 b /8000ga l

1000gal | hou r = 502 ' 4 lb/hour . Assume : •» L L = 12.4 6 spm/ T 

### J 55 0 = 62. 8 hour s pe r 100 0 gal . loading . 

### 12.4 6 A e A.o/e e
50 0 gal/minut e divide d b y1 5 minute s pe r hou r i s abou t 800 0 gallong s loading pe r hour . 535,20 0 microgram s pe r cubi c meter . KASTBWATB : Heigh t = 1 '

Diamete r = 3 ' Temperatur e = 90° F Velocit y= 0.00 1 feet/secon d Emission s =0. 9 pound s pe r hou r 101 7 microgram s pe r cubi c mete r wit h dounwash . 1.22x1 0 microgram s pe r cubi c mete r withou t downwash .

* Estimate s generate d b yKare n Olson , Texa s Ai r Contro l Board .