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# OAR Box 1781 Prepped by Ollie Stewart



### Document

Number: 

# 88 ) IV-C- 2
Docket Number: 

# A-90-3 7

Printed 10/29/200810:46:22 A M Sheet 88of 142P. 2

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\ UNITE D STATE S ENVIRONMENTA L PROTECTIO N AGENC Y

RESEARC H TRIANGL E PARK . N C 2771 1 

# COPY
%^o/ SE P I 8 199 7 AI R QUALIT Y PLANNIN G AN D STANDARD S



### Mr
. Michael J
. Sangiacomo Presiden t & Chie f Executiv e Office

r f 

### • Q Norca l Wast e Systems , Inc
. ! Fiv e Thoma s Mello n Circl e - ; ; ; "~— Sa n Francisco , Californi a94134-250 1 EPAsi.- s UOCXE J 

### Dea r Mr
. Sangiacomo : You r lette r date d Augus t

22,199 7 to Caro l Browne

r ha s been referre dt o m e fo r response . I n you r lette r you urg e th e Unite d State s Environmenta l Protectio n Agenc y (EPA ) t o tak e int o consideratio n th e impact s tha t new sourc e revie w (NSR) regulation s hav e o n controllin g air emission s fro

mmunicipa

l soli d waste landfills
. Your majo r concer n i s th e NS Roffse

t implication s associate d wit h complyin g wit

h EPA' s new sourc e performanc e standard s (NSPS) , 4 0 CF RSubpart s WW

W and Cc , which generally requir e th e collectio n o f

non-methan e an

d methane emission s and tha

t non-metlian e emission s b e reduced
. Yo u urg e EP A i n th e upcoming fina l NS RRefor

mregulation s t o codif

y a s propose dth e genera

l exemptio n o f

pollutio n contro l project s frommajo

r NS Rapplicabilit

y an dt o seriously conside

r option s tha

t provid e mor

e flexibilit y fo r applyin g th e NS Rrequirement s a t landfills , includin g no t

requirin g an

y NS R offsets fo r pollutio n contro l project s a t landfills
. You als o expres s concern s abou t emission s estimatio n an

d measuremen

t a t landfill s andho w thes e complicat e complyin g wit

h NS Roffse

t requirements
. A s aresult o f th e collectio n andcontro l requirement s o f th e NSPS , emission s o f greenhous e gase s and ozone-formin g gase s ar e significantly reduce dfro

mlandfill s throug h combustion
. However , combustio n o f thes e emission s a

t landfill s ma

y als o result

i n emission s increase s o f

nitroge n oxide s (NOx) , carbo n monoxide (CO) , sulfu r dioxide (S02) , an

d particulates
. Under

EPA' s policie s o n pollutio n contro l projects , EPA' s implementin g regulations , an

d th e propose d NS RRefor

mrulemaking , which implemen t sectio n 17 3 o f

th e Clea n Ai r Act (Act) i n nonattainmen

t areas , significan

t emission s increase s o f

non-attainment pollutant s a

t majo r stationar y sources , includin g emission s fro mcombustio n device s a

t landfills , mus t b e mitigate d b y offsettin g emission s reductions
. Thi s offse t requirement

i s neede ds o tha

t existin g publi c healt

h relate d ai

r qualit y problem s are not

worsene db y significan

t increase s o f nonattainmen

t pollutant s or

precursor s to non-attainmen t pollutants
. Th e EP

A understand s you

r offse t concerns , includin g issue s o f cos t an davailability
. However , EP A believe s tha

t th e requiremen

t to mitigate th e potentiall y advers e impact s fro msignifican

t emission s increase s o fP. 3 

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pollutant s fo

r whic h a n are ai s nonattainmen

t i s anecessar

y environmenta

l safeguard
. B e assured tha

t EPA i s committe d to allowin g flexibl e solution s to securin g NS Roffset s a s allowe d unde r th e Act
. Copie s o f your letter hav e been forwardedt o th e appropriat e EP A office s s o tha

t the y ar e awar e o f th e issue s yo u hav e raised
. I f you hav e an

y question s you ma

y contac t Mike Sewell a

t (919)541-0873
. I appreciat e thi s opportunit

y to b e o f servic e an dtrus t thi s informatio n wil l b e helpfu l to you . Sincerely ,
\JohfiSS
. Seit

z 4 s Director Office c f Air Qualit y Plannin g an dStandard sP. 4


### OAQP S CORRESPONDENC E TRACKING SHEE T

CONTRO L N O : AX97883 3

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ADMINISTRATO

R IP A CONSIDER . IMPACT

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CONTRO L NO : STATUS :

FROM : ORG : SALUTATION : CONSTITUENT : TO : T O ORG : SUBJECT : ASSIGNED : COMMENTS : SIGNATURE : INSTi :
ADDTN' L JNST : CCK -

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PENDIN G DU E DATE : ORIG . DUE DATE : 09/18/9 7
CORREiDATE : OS/22/9 7 RECEIVE

D DATE ; 08/26/9 7 ASSIGNED DATE : 09/04/9 7 CLOSE D DATE : SANGIACOM

O MICHAE

L J

• • NORCA L WAST E SYSTEMS , INCORPORATE D DEA RM RSANGIACOM

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ADMINISTRATO

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R SOLI D WAST E & EMER

G RES P REGIO N 0 9 SHARIT A SHA W EARLIN E MILL S

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AX CorrwparukftC 4 - Contro l No : AX-970883 3P. 7 / . -

PtopU 'Service •Environment NORCA L WAST E SYSTEMS

, INC .

Augus t22,199 7 Ms . Caro l M Browne r Administrato r U.S . Environmenta l Protectio n Agenc y Watersid e Mall , Roo m W120 0 40 1 M Street , S W Washington , D.C . 2046 0 Dea r Administrato r Browner : W e writ e t o urg e yo u t o ensur e tha tth e ongoin g deliberation s t o refor m th e Ne w Sourc e Revie w (NSR ) regulation s betwee n EP A ofiRce s involve d wit h soli d wast e management , globa l climat e change , an d ai r qualit y regulator y matter s tak e int o consideratio n th e impact s curren tNS R regulation s hav e o n controllin g ai r emissio n fro m municipa l soli d wast e landfills . Norca l Wast e Systems , Inc. , i s a California-based , employee-owne d compan y tha tprovide s soli d wast e collection , recyclin g an d disposa l services , includin g disposa l i n landfills , i n 3 8 citie s an d countie s i n California . Specifically , w e as k yo u t o rais e th e issu e o f amelioratin g th e NS Rrequiremen to f obtainin g emissio n offset s fo r project s installe d a tlandfill s t o reduc e emission s o f greenhous e an d ozone-formin g gasse s throug h combustion . Thi s requiremen tunde r th e curren tNS Rregulation s woul d no tb e modifie d b y th e pendin g NS Rreform proposa l publishe d i n th e Federa l Registe r o n Jul y 23. 199 7 an d woul d frustrate th e goal s o f EPA' s Landfil l Methan e Outreac h Program . Th e proble m wil l becom e mor e acut e a s EP A move s forwar d wit h implementatio n o f th e ne w Nationa l Ambien tAi r Qualit y Standard s fo r ozon e an d PM2.S . Backgroun d T n 1987 , EP A conclude d tha t"emission s from existin g o r propose d landfill s withou tga s collectio n system s ar c t o b e considere d fugitiv e emissions" 1 and therefor e no tsubjec tt o th e 198 0 NS Rregulations . I n 1994 , EP A reverse d it s decisio n an d conclude d tha tlandfil l emission s "are

' se e memorandu m entitle d "Emissjp n from Landfills" , from Geral d A Emison , Director , Offic e o f Ai r Qualit y Plannin g an d Standards , t o Davi d P . Howekamp , Director , Ai r Managemen t Division , Regio n IX , date d Octobe r 6 , 1987 .

FIV E THOUA S UllWH

CfftCL E . SA N FRAWClSCO . C A 94134-2501 . TELEPHON E (415 ) 330-100 0 CORPORAT E FAX

(415 ) 330-1124/1134/111 5 . HUMA N RESOURCE S fiU (415 ) 330-1217 . MI S B W (415 ) 330-118 8

An Emplqyce~'OwTuJ

Company MifT Ki i Herei n utr i \<MM > A W _LS

_ -TT-. nmwi uuili X KUU1 U 

## J
Ms . Browne r

August s 199 7 Pag e 2

no tfugitiv e an

d shoul d b e considere d i n determinin g whethe r a majo

r NS Rpermi

ti s required" 1
. In drawing thi s conclusion , EP A cite d th e fac

ttha tga s collectio n technologie s had evolve d t o a poin twher e the y wer e reasonabl e fo r installation t tlandfills an d tha tth e agenc y wa s i n th e proces s o f

promulgatin g Ne w Sourc e Performanc e Standard

s an d Emissio n Guideline s (NSPS/EG ) fo r landfills which woul d requir e such collectio n systems . Unti l th e reversa

l o f polic y in 1994 , ga s emission s from landfills , a s are a sources , wer e no tinclude d in th e emissio n inventorie s o f

Stat e Implementatio n Plans , precluding th e opportunity , in tb e future , for th e landfil l operato r t o apply fo r pollutio n reductio n credits . Th e NSPS/E G regulation s fo r landfills issue d b y EP A o n Marc

h 12,199 6 (Titl e 4 0 CFR, Par t60 , Subpart

s WW W an d Cc ) requir

e tha tnon-methane an

d methane emission s b e collecte d an d tha tnon-methan e organi c contaminant s (NMOCs) , which include s volatil e organi c compound s (VOCs) , b e reduced b y 98 % throug h open flare

s o r enclose d combustio n devices , includin g I C engines , ga s turbines an d th e like . Th e agency i n th e preamble o f th e regulation s note d th e benefito f

controllin g VO C emission s o n reducing formation o f ozon e an d th e benefits o f methan e contro l o n reducin g globa l climat e change . Th e agenc y note d tha tmethan e i s 2 0 t o 3 0 time s more potent , o n a molecula r basis , a s a greenhous e ga s tha n C02 , th e othe r major ga s o f concern i n th e global climat

e change debate . Th e agency als o note d th e byproduc temission s generate d b y th e combustio n device s use d t o reduc e landfil l ai r emissions , NOx , CO , SO x an d particulate^ , ar

e ver y lo w compared t o th e achievabl e NMO C an d methan e emission s reductions . In promulgating th e NSPS/E G regulations , EPA note d tha tlandfil l ga s contro l system s woul d b e subjec

tt o PS D an

d NS Rcompliance . However , th e agency' s cos tanalysi s o f th e NSPS/E G regulation s di

d no tinclud e tb e cos to f

compliance wit

h PS D an d NS Rrequirements , especiall y th e requiremen to f obtainin g offsets fo r combustio n byproductemissions . A i discusse d furthe r below , th e cos to f

offset s fo r NO x an

d C O ca n b e considerabl e an

d ha s raise d a

n obstacl e t o th e installatio n o f

projects tha

tbeneficially us e th e collecte d landfil l ga s t o generate electricit y an d reduc e th e nee d t o bur

n fossi l fuels . Installation o f thes e project

s i s a ke y objectiv e o f

EPA' s Landfil l Methan e Outreac

h Progra m whic h provide s assistanc e t o landfil l owner s wh o mus t compl y wit

h th e NSPS/E G regulations . Th e NS RRefor

m Proposal EPA i n it s propose d rule fo r reformin g th e existin g NS Rprogra m (6 1 F R38250 , Jur

y 23 , 1996 ) state s it s intentt o reduc e cost s an d regulator

y burdens fo r permi

tapplicants , whil e ensurin g tha temission s from ne w o r modifying majo r stationar

y source s o f

ai r pollutant

s wil l no tinterfere wit h effort s t o attain an

d maintai n th e nation' s ai

r qualit y standard

s an d goals . T o thi s end , th e NS Rrefor

m proposal woul d expan

d th e curren

texclusio n from majo

r NS Rfo r pollutio n contro l 3 se e memorandu

m entitle d "Classificatio

n o f Emission s from Landfills fo r NS R Applicabilit

y Purposes" , fro

m Joh n S . Seitz , Director , Offic e o f Ai r Qualit

y Planning an

d Standards , to Director s o f th e Ai r Division s i

n EPA' s Regiona

l Offices , dated Octobe r 21 . 1994 ._P. 9 .

Ms . Browne r Augus t22 , 199 7 Pag e 3 projects undertake

n b y utilitie s t o cove r al

l type s o f pollutio n contro l projects . I n tpolic y statementissue d b y EP A Jur y 199 4 settin g fort

h interi m guidanc e (until EPA take s final actio n t o revis e it s NS Rrules ) o s applyin g th e pollutio n contro l projec texclusion , (h e agenc y recognize s landfil l ga s contro l system s which flare th e ga s o r us e H t o recove r energ y a s pollutio n contro l projects 3
. Base d o n discussion s wit h EP A staff , w e understan

d tha tth e NS Rrefor

m proposal doe s no talte r th e eligibilit y o f suc h contro l system s t o qualif y a s pollutio n contro l projects . (Norca l strongl y urge s tha tthi s concept , whic

h currentl y exist s onl y a s guidance , b e incorporate d i n th e final NS Rrefor

m regulations. ) Accordingly , projects installe d a tlandfill s t o compl y with th e NSPS/E G regulations , shoul d als o qualif y a s pollutio n contro l projects exclude d from majo r NS Rrequirements . Bot h th e July 199 4 polic y statemen tan d th e NS Rrefor

m proposal , stat e tha

tcollateral "significant " increase s o f

a criteria pollutan

ti n a non-attainmen

tare a fo r th e pollutantresultin g from a pollutio n contro l projec tmustb e mitigated throug h offsets fo r th e criteri a pollutant . Th e exampl e give n i n th e July , 199 4 policy statemen twa s a pollutio n contro l projecta ta landfil l whic h woul d reduc e VO C emission s b y 100 0 tpy an d generate electricit

y wit h th e collecte d gas , resultin g in th e emissio n o f 10 0 tp y o f

NOx , an d would , consequently , b e required t o obtai n NO x offsets . Th e "Offsets " Proble

m Iti s th e requiremen

tt o obtai n emissio n offsets fo r collatera l emission s i n th e NS Rrefor m proposal , an

d th e problems itcreate s fo r landfil l owners , tha

tNorcal believe s mustb e reconcile d b y EP A wit h th e overall benefitt o th e environmen ttha ti tdesire s t o achiev e through th e NSPS/EG , an

d throug h its Landfil

l Methane Outreac

h Progra m (LMOP) . Th e LMO P has a s it s objectiv e th e installatio n o f ga s t o energy project

s t o reduce combustio n o f fossi l fuels . Th e cos t o f offsets fo r NO x an

d CO , depending o n th e degre e o f non-attainmen

to f a n area , range s from 15,00 0 t o J 15,00 0 pe r to n pe r year (tpy) . A ton e Norca l landfil l facilit y th e cos to f

NO x offset s alon e woul d cos talmos t$1,000,000 . Thi s i s a considerabl e cos tan d i s likel y t o increas e a s EP A implement

s th e ne w NAAQ S fo r ozon e an d PM2.5 . Th e cos to f

NO x offsets woul d b e eve n mor e i f th e collecte d ga s wa s use d a s a fue l t o generat

e electricit

y wit h a n I C engin e o r ga s turbine . Norca l believe s tha

tthes e cost s frustrate , an

d ma y surely delay , implementation fo r th e NSPS/E G an d ar e a majo r disincentiv e t o installatio n o f energy recovery systems . EP A has determined tha

tNSPS/E G contro l requirement s produc e a netenvironmenta l benefitsinc e collatera

l emission s from combustio n ar e very lo w compared t o th e achievabl e

1 se c Exampl e 5 i

n memorandu

m from Joh

n S . Seitz , Director , Office o f Ai r Qualit

y Plannin g an

d Standards , t o Director s o f Ai r Division s i

n al l EP A Regiona

l Offices , entitle d 'Pollutio n Control Project s an d Ne w Sourc e Revie w (NSR ) Applicability" , date d Jur y I , 1994 .P.1 0

. «*V05/fi 7 FR I 12:4 1 FA I 80 2 40 1 05O S OA R 1 0 .**» SAND Y CAHIL L Q01 2

Ms . Browne r Augus t22,199 7 Pag e 4 NMO C an

d methane emissio n reductions . Ye ti thas no tattempted t o addres s th e possibility o f VOC-NO x nettin g an

d trading i n th e NS Rrefor m proposa

l fo r pollutio n contro l projects . Ther e i s a n elemento f

unfairnes s t o this . During , as wel l as before , th e seve n year s betwee n th e conflictin g agenc y conclusion s o n th e fiigitrve/non-fugrtive natur e o f landfil l emissions , thos e emission s wer e no tsubjectt o permi trequirement

s an d landfil l openior i ba

d no reaso n t o measur e th e quantit

y o f emissio n from landfills . Th e ga s emission s from landfills , a s are a sources , wer e no t include d i n th e emissio n tnvemorie s o f Stat e Implementation Plans . Th e facttha tther e i s likel y no actua l emission s baseline s fo r a landfU L has preclude

d th e opportunit

y fo r a landfil

l operato r t o no w apply fo r pollutio n reductio n credit s fo r emissio n reduction s achieve d by th e ga s contro l projects . Ther e ar e als o complication s in applyin g NS Rrequirement

s for establishin g th e number o f necessary offset s fo r pollutio n control project s a tlandfills . Unlik e a

ttypica l industria

l emissio n sources , i ti s no tpossibl e t o measur e th e actua

l emission s a

ta landfill . Landfil

l emission s hav e unti l recently bee n based o n a n engineer' s estimat

e wit h accuracies o f

+/ - 25% . EPA' s ne w estimatio n model , o n th e othe r hand , has been demonstrate d by Norcal t o overestimate landfil l ga s emission s b

y a n order o f

magnitude . A n additiona l complicatio n i s that

, unlike emission s from a typica l industria

l sourc e whic

h ar e relatively constan

tunde r norma l operatin g conditions , landfil l emission s ar

e negligibl e a

tfirst, bu tslowl y buil

d u p ove r time an

d then eventuall y tape r of f ove r time. Th e rat

e o f emission s i s als o entirely a function o f th e unique characteristics o f th e landfill , suc h a s th e dept

h o f buria l an d moistur e contento f

th e waste . Thes e complication s buttres s th e difficult y tha tlandfil l operators fac e i

n complyin g wit

h th e NS Roffse trequirements . Conclusio n Norca l i s please d tha

tEP A intend s t o refor

m it s NS Rregulations . W e als o supportth e agencie s effort

s t o assis tlandfil

l owner s i n implementin

g th e NSPS/E G t o reduc e greenhous e gassc s throug

h it s Landfil l Methane Outreac

h Program. However . EPA shoul d attemp tt o reconcil e conflict s i

n it s effort

s t o develo p sound soli d wast e managemen tprograms , maintain ai r quality , an

d addres s global climat

e change . Norcal believe s tha tth e mos tsignifican

to f thes e conflicts i s pose d b y th e NS Roffsetrequirement s for municipa

l soli d wast e landfills . W e urg e EP A t o seriousl y conside r option s suc h a s no trequirin g an y offsets a

tlandfills , a s th e Sout

h Coas t Ai r Qualit

y Managemen

tDistricti

n our stat e ha s don e i n recognitio n o f

th e "essentia

l publi c service " aspects o f

thos e facilities ; VOC-NO x netting an d tradin g fo r landfil

l ga s emissio n contro l projects ; allowin g offse trequirement s t o trac k actua l landfil l ga s emission s a

s they slowl y increas e the n decreas e ove r time ; an

d t o allo w adoption o f

emissio n measurin

g method s which tak e int o consideratio n the uniqu e characteristics whic h a teac h landfill . Ata minimum, EP A shoul d adop t a polic y tha tprovide s flexibilit

y i n th e application o f

NS Rrequirement

s a tlandfills . Suc h a polic y will allo w th e NS Rrequirement s t o b e implemente

d i n a manne

r by which a

n optimu m economi c efficienc y an d environmenta

l benefi tca n b e realize

d i n th e concurren

timplementatio n o f

th e agency' s soli d wast e management , ai r qualit y an d greenhous e ga s control programs .P.1 1 OS/05/8 7 FR I 12:4 1 FA X 20 l M

#5l5OA R 1 0 -•••- • SANDY CAHIL L I^Olj l

Ms . Browne r Augus t22 , 199 7 Pag e 5 W e sincerel y appreciat e you r consideratio n o f

thi s nutter. I f

yo u woul d lik e additiona l information o r hav e an

y question s regardin

g thi s information , pleas e contactDo n Gambelin at (415)330-1194 . Very trul y yours . 

# /kuJuu/ Michae l J . Sarkrico r Presidentk Chie f

Executiv e Office r
cc : Do n Gambelin , Norcal Wast e Systems , Inc . MJS/e p