STATE OF DELAWARE DEPARTMENT OF NATURAL RESOURCES AND ENVIRONMENTAL CONTROL OFFICE OF THE 89 KINGS HIGHWAY PHONE: (302) 739-9000

SECRETARY DOVER, DELAWARE 19901 Eo:: (302) 739-6242 Secretary's OrderNo.: 2011-A-0019 RE: ApprovingFinalAmendments to Section2.0 of7 DEAdmin. Code 1142, ControlofNOx Emissions from IndustrialBoilers and Process Heaters at Petroleum Refineries; and Proposed StateImplementation Plan (SIP) revision,

"Demonstration thatAmendmentsto Section2.0 of7 DE Admin. Code 1142,

'ControlofNOx Emissions from IndustrialBoilers andProcess Heaters at PetroleumRefineries',Do Not Interferewith Any ApplicableRequirementofthe CleanAirAct (CAA)"

Dateoflssuance: March 16, 2011 EffectiveDate oftheAmendment: April 11,2011

Under the authority vested in the Secretary of the Department of Natural Resources and Environmental Control ("Department" or "DNREC") the following findings. reasons and conclusions are entered as an Order ofthe Secretary in the abovereferenced rulemaking proceeding. Background and Procedural History This Order considers proposed regulation amendments to Section 2.0 of 7 DE Admin. Code 1142, Control of NOx Emissions from Industrial Boilers and Process Heaters at Petroleum Refineries; and Proposed State Implementation Plan (SIP) revision, "Demonstrationthat Amendments to Section 2.0 of7 DE Admin. Code 1142, 'Control of NOx Emissions from Industrial Boilers and Process**Heater~** at Petroleum Refineries', Do Not Interfere withAny Applicable Requirement ofthe Clean Air Act (CAA)".Section 2.0 of7 DE Admin. Code 1142 was first promulgated on July 11,2007. Subsequently, Regulation 1142 was revised in 2009, consistent with a DNREClPremcor settlement agreement, and was then submitted to the EPA as a SIP revision. In 20I0, Section 2.0 ofRegulation 1142 was approved by the EPA into Delaware's SIP. In 2009, the operations of equipment at the Delaware City Refinery were discontinued, and in2010the refinery ownership changed from PremcorRefining Group, Inc., to Delaware City Refining Company, LLC ("DCRC"). Two actions related to this change in ownership impactDelaware's SIP:

• OnMay 28, 2010, the Departmentreached an enforcement settlementwith Premcor. This settlement, among otherthings, terminated the 2008 FCCU NOx Agreement which had required the Premcor fluid catalytic cracking unit CO boiler to meet a 20 parts per million (ppm) NOx emission limitation by May 1, 2009.

• On May 31, 2010, the Department and DCRC reached an agreement on DCRC's acquisition, restart and operation ofthe Delaware City Refinery. One element ofthat agreement provides that the Department will propose to revise Section 2.0 of7 DE Admin. Code 1142 to provide for a facilitywide NOx emission cap compliance alternative. This proposed promulgation seeks to revise Section 2.0 of 7 DE Admin. Code 1142 to (l) provide for the control ofNOx from the Fluid Catalytic Cracking Unit CO boilerto the level that was previously required by the 2008 consent agreement; and to (2) provide for a facility-wide NOx emission cap compliance alternative. Additionally, the Department is proposing a SIP document that demonstrates that these two revisions to



### 2Regulation 1142will not interfere with attainment or maintenance ofanyNAAQS, or any other applicable requirement oftheCAA. The Department's Division of Air Quality (DAQ) commenced the regulatory development process with Start Action Notice #2010-22. The Department published the proposed regulatory amendments in the January I, 2011 Delaware Register of Regulations and held a public hearing on February 1,2011. The Department's presiding hearing officer, Lisa A. Vest, prepared a Hearing Officer's Report dated March 11,2011 (Report). The Report recommends certain findings and the adoption of the proposed Amendments as attached to the Report as AppendixA. Findings and Discussion I find that the proposed Amendments are well-supported by the record developed by the Department, and adopt the Report to the extent it is consistent with this Order. The Department's experts in DAQ developed the record and drafted the proposed Amendments. It should be noted that the Department received public comment from the Delaware City Refining Company, LLC ("DCRC"), and provided thorough and wellreasoned responses to the same in the Department's original Technical Response Memorandum (TRM) ofFebruary 4, 20II, and again in its supplemental TRM ofMarch 10, 2011, both ofwhich were expressly incorporated into the Hearing Officer's Report generated in this matter. It should also be noted that the Department received no public commentswithregardto the proposed SIP document submission inthis matter. I find that the Department's experts in the DAQ fully developed the record to support adoption ofthese Amendments. These proposed amendments are based upon a May 31, 2010 agreement ("Agreement") between DNREC and the Delaware City

3Refining Company, LLC ("DCRC") which states that DNREC will propose to revise Section 2.0 of7 DE Admin. Code 1142 to provide for compliance with a facility-wide NOx emission cap as an alternative tothe existingunit specificNOxemission limitations. With the adoption ofthese regulatory amendments, Delaware will have the Department's regulations provide for compliance as stated above. Furthennore, with the adoption of the proposed SIP submission, Delaware will demonstrate that the revisions to Regulation 1142 as noted above will not interfere with attainment ormaintenance ofany NAAQS, or any other applicablerequirement ofthe Clean AirAct. In conclusion, the following findings and conclusions are entered: I.) The Department hasjurisdiction under its statutory authority to issue an Order adopting these proposedAmendments, and associated SIP document, as final; 2.) The Department provided adequate public notice of the proposed Amendments and associated SIP document, and provided the public with an adequate opportunityto comment on the same, including at apublichearing; 3.) The Department held a public hearing on February I, 2011 on the proposed Amendments and associated SIP document, in order to consider public commentsbefore making any final decision; 4) The Department's Hearing Officer's Report, including its recommended record and the recommended Amendments as set forth in Appendix A, are adopted to provide additionalreasons andfindings for this Order; 5.) The recommended Amendments do not reflect any substantive changes from the proposed regulationAmendments as publishedin the January 1,2011,Delaware Registerof Regulations;

46.) The recommended Amendments should be adopted as final regulation Amendments because said revisions to Section 2.0 of7 DE Admin. Code 1142 will (I) provide for the control ofNOx from the Fluid Catalytic Cracking Unit CO boiler to the level that was previously required by the 2008 consent agreement; and (2) provide for a facility-wide NOx emissioncap compliance alternative. Additionally, the adoption ofthe recommended SIP document submission will demonstrate that these two revisions to Regulation 1142 will not interfere with attainment ormaintenance ofany NAAQS, orany otherapplicablerequirement ofthe CAA; and that 7.) The Department shall submit this Order approving the final regulation to the 

### Delaware Register ofRegulations for publication in its next available issue, and provide such other notice as the law and regulation require and the Department determines is appropriate.

# &td~~ Collin P. O'Mara Secretary

hear\ Reg.1142.Sect2.0.Amndmts and SIP revision 20l1.0RDER

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