OFFICE OF THE SECRETARY STATE OF DELAWARE DEPARTMENT OF NATURAL RESOURCES AND ENVIRONMENTAL CONTROL 89 KINGS HIGHWAY DOVER, DELAWARE 19901

Secretary's Order No. 2009-A-0038 PHONE: (302) 739-9000 FAX: (302) 739-6242

Re: Revision to Section 2 of7 DE Admin Code 1142 Relating to NOx Control

Technology for Industrial Heaters & Process Boilers at Petroleum Refineries Date ofIssuance: October 14, 2009 Effective Date: November 11, 2009 Background Under the authority granted to the Secretaryofthe Department ofNatural Resources & Environmental Control ("Secretary") under 7Del. 

### C. § 6006 and 29 Del. C. Chapter 101, the Secretary enters this Order. This Order concludes a process to revise and repromulgate Section 2 of7 DEAdmin Code 1142 relating to NOx control technology for industrial heaters and process boilers at petroleum refineries. Discussion In July of2007, Section 2 of7 DE Admin Code 1142 was adopted to reduce NOx emissions from industrial heaters and process boilers at petroleum refineries. ThePremcor Delaware CityRefinery owned by Valero appealed DNREC's July 2007 adoption ofRegulation 1142. On or about August 15,2009, DNREC and Valero finalized a settlement agreement where DNREC agreed to propose for adoption and receive public comment onthe adoption ofan agreed to version ofthe regulation. DNREC agreed to adopt the exact language set out in thesettlement agreement unless comment from the public persuaded DNREC that these changes should not be made. As set out in the settlement agreement, the proposed version ofthe regulation is intended to provide for Premcorto implement altemative pollution control projects for the purpose ofachieving NOx emission reductions from boilers at the Delaware City Refinery. These reductions in NOx emissions are intended to achieve improvements in air quality. Public Hearing 

### On September 30,2009, apublic hearing was held on the proposed Section 2 of7 DE Admin Code 1142. Robert Haynes, a Hearing Officer, presided over the hearing at which public comment was taken. A copy ofthe transcript ofthe public hearing is attached hereto as Exhibit A. The Department submitted a copy ofthe notice ofpublication in the Delaware Register as DNREC Exhibit 1, a copy ofwhich is also attached to this Order as Exhibit B. DNREC Exhibit 2 consisted ofcopies ofthe affidavits ofpublication for the News Joumal, SundayNews Joumal and the Delaware State News. A copy ofthe legal notice mailed to the Department's mailing list was submitted as DNREC Exhibit 3. DNREC Exhibit 4 consisted ofa copy ofthe settlement agreement between DNREC and Premcor. The DNREC representative noted that the proposed regulation does not impact any individuals or small businesses and so Delaware's Regulatory FlexibilityAct did not applyto theproposed action. Robert Wojewodzki, the environmental manager at the PremcorDelaware CityRefinery, attended the public hearing

..He submitted a letter stating that significant changes at the Refinery

were occurring and asking DNREC to reconsider a greaterNOx emissions limit and to adjust the compliance schedule. A review ofthis short letter indicates that Premcor's suggestions are notsupported by sufficient documentation orjustification (0 make any modifications (0 the proposed regulation at this (ime. This letter was submitted into the hearing record as Premcor Exhibit 1. Findings ofFact & Conclusions ofLaw 1. A public hearing was held pursuant to 7 Del. C. § 6006 and 29 Del. C. Chapter 101 on September 30, 2009, on the repromulgation and revision ofSection 2 of7 DE Admin Code 1142. 2. Propernotice ofthe hearing was provided as required bylaw. This Order describes the public hearingrecord. 3. No members ofthe general public attended the hearing or submitted any comments. A representative ofValero onbehalfofPremcor's Delaware CityRefinery did attend and submitted a letter with comments on the Department's proposed action. The suggestions in Premcor's Exhibit 1 were not supported bysufficient documentation to reasonablyjustify making anymodifications to the proposed regulation at this time. 4. Theproposed revisions to the regulation are intended to result in the implementation ofpollution control projects for the purpose ofachieving improvements in air qualitybyreducing emissions ofNOx fi'om boilers at the Delaware City Refinery. 5. The record as a whole supports repromulgation and revision ofthe Regulations as published in the Delaware Register ofRegulations and as attached hereto as Exhibit B. Orde,' Based on the record identified and discussed in this Order, IT IS HEREBY ORDERED that the proposed Section 2 of7 DEAdmin Code 1142 is adopted in the form attached hereto as Exhibit B. ReasonsThe record supports repromulgation and revision ofSection 2 of7 DE Admin Code 1142. This action will resolve a pending appeal ofthe existing version ofthe regulation and is intended to achieve reductions in NOx emissions and air quality. Thus, the promulgation ofSection 2 of7 DE Admin Code 1142 will further the policies and purposes of7Del. C. Chapter 60, which require DNREC to conserve and protect our air resources.

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# EJC(:~:j**G~** lin P. O'Mara Secretary