June 27, 2013 Version for OMB

1

**Proposed New Source Performance**  **Standards for New**  **Residential Wood Heaters, Residential Hydronic**  **Heaters (Outdoor Wood Boilers or Indoor Wood Boilers**  **),**

**Forced -** **Air Furnaces and Residential Masonry Heaters**  **BACKGROUND**  The U.S. Environmental Protection Agency ( EPA ) issued New Source Performance Standards (NSPS) for residential wood heaters in 1988. Those standards apply to adjustable burn rate wood stoves and will remain in effect until this proposal becomes a final rule, likely 1 ye ar after proposal.  The 1988 standards were developed through a regulatory negotiation process that included representatives of the environmental community, consumer groups, state air pollution control and energy agencies, industry and the EPA.  Wood smoke is made up of a mi xture of gases and fine particle s that are produced when wood and other organic matter burns. The fine particles in smoke

– also called fine particle pollution or PM 2.5 – can get deep into the lungs, harming both your lungs and your heart. People with hear t or lung disease, older adults and children are the most at risk. **CURRENT ACTION**   The EPA is proposing amendments to its standards for new residential wood heaters that would strengthen its emissions standards for wood stoves, while establishing standards for outdoor and indoor wood boilers (also known as hydronic heaters) for the first time **.**  The proposed standards would also set emission limits for new pellet stoves, wood - fired forced - air furnaces, masonry wood heaters and a ty

pe of previously

unregulated woodstove known as a “single burn rate” stove. The proposed standards w ould not affect heaters that are fueled solel y b y oil, gas or coal .  The proposal would not apply to woodstoves and other wood heating appliances currentl y in use in people’s homes.  The proposed rule would significantl y reduce emissions of fine particle pollution from newly manufactured stoves and other wood heating appliances . Emissions of volatile organic compounds , carbon monoxide , hazardous air pollutants and greenhouse gases also would drop as a result of the rule.  In addition to being cleaner, the units would be more efficient than older ones, meaning homeowners will get more heat from the wood they burn.  The EPA will take public comment on the proposal for 90 day s after the proposed rule is published in the Federal Register . The agency is planning to hold two public hearings on the rule.  Some of the regulatory options in the proposal have the potential for a significant economic impact on a number of small entities . The EPA convened a Small Business Regulatory Enforcement Fairness Act p anel on August 4, 2011. As a result of those conversations, this proposal incorporates reasonable time for all manufacturers to develop cleaner models by allowing a phased approach. In addition, this proposal includes additional time for small - volume manufacturers of some devices.June 27, 2013 Version for OMB

2 **SUMMARY OF PROPOSED REQUIREMENTS**  The Clean Air Act requires the EPA to set NSPS for industrial categories that cause, or significantl y contribute to, air pollution that may endanger public health or welfare. The law requires the EPA to review these standards every 8 years.  Residential wood combustion is a significant source of fine particle pollution, emitting more than 350,000 tons of fine particles in 2008, according to the EPA’s N ational Emissions Inventory .  The EPA is proposing that each typ e of new residential wood heater (except masonry heaters) meet s PM emission limits in a two - step approach to require all manufacturers to make the improvements that can be done immediately , and also to provide manufacturers time for additional research and development (R&D) and testing to adapt to the best systems of emis sion s reduction . Under the proposed approach, manufacturers would need to meet Step 1 limits immediately upon promulgation and the final Step 2 emission limit s 5 ye ars after promulgation.  In addition, the EPA is taking comment on a three - step a pproach ( a longer compliance timeframe ) to allow an interim Step 2 emission s level 3 ye ars after promulgation , particularly for small manufacturers that may need more time for R&D and testing before meeting the final S tep 3 emission limit 8 ye ars after promulgation . The EPA’s proposed S tep 2 emission limit ( 5 years after promulgation) would be identical to the S tep 3 emission limit ( 8 ye ars after promulgation) for this other approach . **ANTICIPATED PUBLIC AND STAKEHOLDER RESPONSE**  State and local agencies are anxious to see these standards promulgated as soon as possible. Some states need these wood heater standards to help them meet their PM 2.5 national ambient air quality s tandard (NAAQS) requirements . The National Association of Clean Air Agencies, Western States Air Resources Council, Central States Air Resources Agencies, Lake Michigan Air Directors Consortium, Mid - Atlantic Regional Air Management Association, and Northeast States for Coordinated Air Use Management all strongl y support strengthened s tandards, especially removing the exemptions for single - burn - rate stoves and furnaces and adding stringent requirements on hydronic heaters .  Environmental groups strongl y support strengthened standards overall and especiall y string ent limits on hydronic heaters because they emit a large volume of PM emissions and are negativel y impacting the health and welfare of citizens across the country .  Most public feedback supports strong regulations , especiall y for hydronic heaters, which are considered a large nuisance for those living nearb y these units .  Industry

groups agree that standards are needed for hydronic heaters and forced - air furnaces and that it is appropriate to update the wood heater standards to the state of Washington levels.  Some industry

groups question the cost effectiveness and potential economic impacts of some of the stronger proposed options.  At least one fireplace manufacturer questions why the Agency is not proposing standards for new fireplaces.