# OAR Box 1781 Prepped by Ollie Stewart



### Document

Number: 

# 47 ) ll-K-4
Docket Number: 

# A-90-3 7

Printed 10/29/200810:46:20AM Sheet 47 of 142 P. 1REA

D 1 P. 2

E.LILLI S (EPA6246 ) R.MCCALLUM

(EPA1150 ) Delivered : Tu e 30-May-8 9 12:1 6 ED T Sy s 16 3 To : From : (186 ) Subject : Foste r Wheele r Passaic , Inc . Mai l Id : IPM-163-890530-11041091 7 Acknowledgmen t Sen t

* * CHRONICL E * * MA Y- AUGUS T 198 9

1 . Texac o Refinin g an dMarkin g Inc . RCR A Appea l No . 88-2 6 2 . RCR A Permi t Appeals/Statu s Repor t 3 . MEMO - K00 1 Bottom Sedimen t Sludg e Docke t No . F-88WPDP-FFFF F 4 . Fina l Decisio n- Brow nWoo dPreservin g Compan y RCR A Appea l No . 86- 4 : Docke t No . 84-16- R 5 . Albuquerqu e Utilitie s Corporatio n NPDE S Appea l No . 88- 4 6 . Envirosaf e Service s o f Ohio , Inc . RCR A Appea l No . 88-4 0 7 . Sinclai r Oi l Corporation , Sinclair , Wyomin g EP A I D No . WY D 07 9 95 9 18 5

BEFOR E TH E ADMINISTRATO R U.S . ENVIRONMENTA L PROTECTIO N AGENC Y WASHINGTON , D.C . 

## M 25199 5 Wj EPAAIRDOCXETi i

Inth e Matte r of : Foste r Wheele r Passaic , Inc .

Applican t DE P I D Numbe r [TO B E ASSIGNED ] PS D Appea l No . 89- 1

NOTIC E O F DECISIO N

T O REVIE W

PERMI TP. 3

O nApri l 26 , 1989 , th e New Jerse y Departmen t o f Environmenta l Protectio n(DEP ) issued a Preventio no f Significan t Deterioratio n(PSD ) permi t that , upo nbecomin g effective , woul d authoriz e Foste r Wheele r Passaic , Inc . (the "permi t applicant" ) t o construc t a propose d resourc e recover y facilit y

i nPassaic , New Jersey . DE P mad e it s determinatio npursuan t t o a delegatio n

o f authorit y

fro m th e U.S . Environmenta l Protectio nAgenc y (EPA) , Regio nII , New

York , New

York . Becaus e o f th e delegation , DEP' s authorit y

t o issu e PS D permit s i s subjec t t o th e review provision s o f 4 0 C.F.R . 124.1 9 (1988) , an d an y permi t i t issue s wil l b e a

nEP A issue d permi t fo r purpose s o f federa l law . 4 0 C.F.R . 124.41 ; 4 5 Fed . Reg . 3341 3 (Ma y 19 , 1980) . Th e rule s authoriz e m e t o revie w permi t determination s eithe r upo nth e receip t o f a petitio nfo r revie w fro m a n qualifie d petitione r o r upo nm y ow ninitiativ e i f th e circumstance s appea r t o warran t it . 4 0 C.F.R . 124.19(a ) an d (b) . Th e regulation s provid e tha t th e review o f a permi t a t th e reques t o f a petitione r i s justifie d i f th e permi t decisio ni s clearl y erroneou s o r involve s a matte r o f discretio no r polic y tha t i s importan t an

d therefor e warrant s review . 4 0 C.F.R . 124.19(a)(1 ) an

d (2) . Th e regulation s d o no t specif y whe ni t i s appropriat e fo r m e t o revie w a permi t o

nm y ow ninitiative . Se e 4 0 C.F.R . 124.19(b) . However , i t woul d appea r tha t th e sam e circumstance s tha t justif y th e revie w

o f a permi t a t th e reques t

o f a petitione r woul d als o justif y th e review

o f a permi t o

nm yP. 4

ow ninitiative . Thus , a clearl y erroneou s decisio no r on e tha t raise s a nimportan t questio no f polic y o r discretio nwoul dals o justif y th e revie w

o f a permi t o

nm y ow ninitiative . Some o r al l

o f thos e circumstance s exis t here . DE P ha s conclude dtha t combustio ncontrol s rathe r tha n selectiv e non-catalyti c reductio n(SNCR ) o f NO xemission s i s th e appropriat e contro l technolog y t o mee t th e "bes t availabl e contro l technology " (BACT ) requiremen t fo r thi s permit . I n Pennsauke nCounty , Ne w Jerse y Resourc e Recover y

Facility , PS D Appea l No . 88- 8 (RemandOrder , Novembe r 10 , 1988) , EPA determine d tha t SNC Ri s th e appropriat e an davailabl e contro l technolog y fo r NO xcontrol , unles s a lesse r degre e o f contro l i s determine dt o represen t BAC T afte r performin g th e "to pdown " analysi s required b y EPA fo r suc ha demonstration . Suc ha nanalysi s woul dhav e t o demonstrat e significan t technica l defect s i nth e technolog y

o r substantia / loca l economic , energy , o r environmenta l factor s o r othe r cost s t o warran t us e o f a contro l technolog y les s stringen t tha nSNCR . I

nthi s case , DE P claim s tha t significantl y highe r cost s hav e bee ndemonstrated , an dtha t ther e ar e significantl y greate r safet y

concern s tha ni

nothe r use s o f thi s technology . Th e conclusion s a s t o highe r cost s are , fo r th e mos t part , base dona metho do f analysi s tha t appear s t o hav e artificiall y double dth e cost s o f usin g SNC Rwhe ncompare dt o analyse s i n othe r simila r case s -- Pennsauken , fo r example . Othe r tha nthi s differen t metho do f analysis , DE P ha s no t identifie dan y othe r factor s tha t woul daccoun t fo r highe r cost s a t thi s facility . InP. 5

brief , DE P calculate dth e cost-effectivenes s o f SNC Rb y usin g a n NO xemission s rat e muc hlowe r tha nth e maximum potentia l rat e fo r th e propose dfacilit y

usin g combustio ncontrol s alone , i.e. , 30 0 part s pe r millio n(ppm ) ona dr y basis , correcte dt o 7 % 02 . Us e

o f a rat e lowe r tha nth e maximum potentia l rat e represent s a deviatio nfrom

norma l practic e an

dha dth e effec t o f producin g a dollar-per-to ncos t fo r SNC Rtha t i s roughl y doubl e th e amoun t tha t woul dhav e resulte dhadDE P instea duse dth e maximum rat e o f 30 0 ppm . DE P di dno t explai nit s reason s fo r usin g thi s metho d

o f analysis , no r di di t compar e it s cost-effectivenes s figure s fo r thi s facilit y

wit hthos e from

othe r facilitie s usin g th e same metho do f analysis . Inaddition , DEP' s cos t analysi s wa s base d

o na relativel y

low contro l efficienc y

(30 % versu s 35 % a t Pennsauken) , whic hals o ha dth e effec t o f reducin g th e cos t effectivenes s o f SNC Ra t thi s facility . DE P di dno t explai nit s
reason s fo r th e downwar dreductio ni ncontro l efficiency . Wit hregar dt o safet y

concerns , DE P ha s no t demonstrate dan y tha t ar e unusua l o r uniqu e t o thi s resourc e recover y facility . Th e transportatio nan

dus e o f ammoni a indensel y populate darea s i s no t uncommo nfo r man y o f th e facilitie s i

nwhic hSNC Ri s being employe do r wil l b e employe di nth e nea r future , a s wel l a s fo r

man y othe r industria l user s o f ammonia . Base donth e reason s cite dabove , I findtha t ground s exis t fo r reviewin g th e permi t onm y ow ninitiative , or , mor e precise ly , fo r reviewin g th e conclusio ntha t combustio ncontrols , rathe r tha nSNCR , i s BAC T fo r NO xcontro l fo r thi s project . Moreover , J \P. 6

th e resul t i s inconsisten t wit hth e decisio nenunciate di nth e Reman dOrde r i

nPennsauken . I intendt o establis ha briefin g schedul e i nth e nea r futur e

an dt o identif y

th e specifi c issue s tha t DE P an dth e permi t applican t shoul daddress . Whe nthi s i s done , DE P shal l b e responsibl e fo r givin g publi c notic e o f today' s decisio na s directe db

y 4 0 C.F.R . 124.10 . Unti l revie w i s completed , th e permi t applican t i s withou t a neffectiv e permi t an

dconstructio n

canno t lawfull y

commence . S o ordered .

Dated : 5/26/8 9 /s / F . Henr y Habich t I I Actin g Administrato rP. 7

CERTIFICAT E O F SERVIC E
I hereby certif y

tha t copie s o f th e foregoin g Notic e o f Decisio nt o Revie w

Permi t i

nth e matte r o f Foste r Wheele r Passaic , PS D Appea l No . 89-1 , wer e sen t t o th e followin g person s i nth e manne r indicated : By 1s t clas s mail , postag e prepaid : William J . Muszynsk i Actin g Regiona l Administrato r U.S . EPA , Regio nI I 2 6 Federa l Plaz a New York , N

Y1027 8 Rober t J . Burcin , Presiden t Foste r Wheele r Passaic , Inc . Perryvill e Corporat e Par k Clinton , N

J 08809-400 0 Christophe r J . Dagget t Commissione r New Jerse y Dep't . o f Environmenta l Protectio n 40 1 Eas t Stat e Street , CN-02 7 Trenton , N

J 0862 5
Dr . Icla l Atay , Actin g Chie f Burea u o f Engineerin g & Regulator y Developmen t Divisio no f Environmenta l Qualit y New Jerse y Dep't . o f Environmenta l Protectio n 40 1 Eas t Stat e Street , CN-02 7 Trenton , N

J 0862 5

Dated : 5/30/8 9 

## N Brend a H . Selden , Secretar y t o th e Chie f Judicia l Office r Disposition: A Z