WILCOX & FETZER LTD. 

In The Matter Of: 

State of Delaware Department of 

Natural Resouces and Environmental 

Control 

Proposed Revision on 7 DE Admin Code 1142 

Section 2 

September 30, 2009 

Wilcox _ Fetzer, Ltd. 

Phone: 302-655-0477 

Fax: 302-655-0497 

Email: depos@wilfet.com 

Internet: www.wilfet.com 
Wilcox 

STATE OF DELAWARE 

DEPARTMENT OF NATURAL RESOURCES 

AND ENVIRONMENTAL CONTROL 

In re: ) 

Proposed Revision on ) 

7 DE Admin Code 1142 Section 2 ) 

Division of Air & Waste Management 

391 Lukens Drive 

New Castle, Delaware 

Wednesday, September 30, 2009 

6:00 p.m. 

BEFORE: ROBERT P. HAYNES, ESQ., 

SENIOR HEARING OFFICER 

PRESENT: 

FRANK F. GAO, DNREC 

RON AMIRIKIAN, DNREC 

C. RAVI RANGAN, DNREC 

BRUCE STELTZER, DNREC 

BOB WOJEWODZKI, VALERO 

THOMAS S. GODLEWSKI, JR., VALERO 

WILCOX & FETZER, LTD. 

1330 King Street - Wilmington, Delaware 19801 

(302) 655-0477 

www.wilfet.com 

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1 HEARING OFFICER HAYNES: This is the 

2 time and the place for a public hearing on a 

3 proposed regulation to amend 7 Delaware 

4 Administrative Code 1142 Section 2, Control of 

5 Nitrogen Oxide Emissions from Industrial Boilers 

6 and Process Heaters at Petroleum Refineries. 

7 My name lS Robert Haynes. I have 

8 been assigned to preside over this hearing and to 

9 prepare a report of recommendations for the 

10 Secretary of the Department of Natural Resources 

11 & Environmental Control, Collin O'Mara. 

12 Tonight's hearing is to receive 

13 public comments either orally or in writing from 

14 the public. I note for the record we do have 

15 members of the public here, which is probably the 

16 only member of the public that's probably 

17 impacted by this proposed regulation. So I think 

18 they're the only people other than the Department 

19 representatives who are in the hearing room. 

20 With that, I will turn it over to the 

21 Department's representative, who will introduce 

22 himself, and anybody else who wants to be 

23 introduced and make comments, and we'll develop 

24 the hearing record. Very good. 

wilcox Fetzer, Ltd. Registered Professional Reporters 

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MR. GAO: Okay. As the Hearing 

Officer said, tonight's hearing is to address the 

proposed revision on Section 2 of 7 DE Admin Code 

1142 titled "Control of NOx Emissions from 

Industrial Boilers and Process Heaters at 

Petroleum Refineries." 

My name is Frank Gao. I'm an 

environmental engineer in the planning branch of 

the Air Quality Management Section of DNREC, and 

I am the project coordinator for the proposed 

revision. 

First, I would like to submit to the 

Hearing Officer the following exhibits: 

Exhibit 1, copies of notice for 

publishing the proposed revision of 

7 DE Admin Code 1142 Section 2 in Delaware 

Register of Regulations; and 2, proposed 

revisions of 7 DE Admin Code 1142 Section 2 as 

published in Delaware Register of Regulation on 

September 1st, 2009. 

HEARING OFFICER HAYNES: I will mark 

that as DNREC Exhibit 1. 

(DNREC Exhibit No. 1 was received in 

evidence. ) 

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MR. GAO: Exhibit 2, copies of 

affidavits from News Journal, Sunday News 

Journal, and the Delaware State News of 

publication of legal notice announcing the public 

hearing to be held on September 30th, 2009, for 

the proposed revision of 7 DE Admin Code 1142 

Section 2 and legal notice, notice of public 

hearing. 

HEARING OFFICER HAYNES: I will mark 

that as DNREC Exhibit 2 and admitted. 

(DNREC Exhibit No. 2 was received in 

evidence. ) 

MR. GAO: Exhibit 3, copy of legal 

notice mailed to the Department's mailing list 

notifying the addressees of the public hearing to 

be held on September 30th, 2009, for the proposed 

revision of 7 DE Admin Code 1142 Section 2. 

HEARING OFFICER HAYNES: Okay. We'll 

mark that as DNREC Exhibit 3. And I would 

request also to be provided a list of the people 

that it was mailed to so we can have that in the 

record. 

(DNREC Exhibit No. 3 was received ln 

evidence. ) 

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1 MR. GAO: Sure. We will 

2 HEARING OFFICER HAYNES: We'll add 

3 that as a supplement to it. It doesn't have to 

4 be identified as anything separate. 

5 MR. GAO: Sure, we will do that. 

6 Exhibit 4, copy of settlement 

7 agreement regarding the Premcor Refining Group 

8 Inc. appeal of Regulation No. 1142, as signed by 

9 DNREC Secretary and Premcor General Manager. 

10 HEARING OFFICER HAYNES: Mark that as 

11 DNREC Exhibit 4. 

12 (DNREC Exhibit No. 4 was received in 

13 evidence. ) 

14 MR. GAO: Now, I would like to give a 

15 brief background overview of the proposed 

16 revision. In November 2005, the Department 

17 started a rule-making process to develop a new 

18 section, that is, Section 2, of 7 DE Admin Code 

19 1142, to control NOx emissions from large 

20 industrial boilers and process heaters in 

21 petroleum refineries in Delaware because those 

22 boilers and heaters were determined as 

23 significant NOx emission sources contributing to 

24 the Delaware's ozone nonattainment problem. In 

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1 February 2006, the Department's Air Quality 

2 Management Section staff and representatives from 

3 eight stakeholders formed a review committee for 

4 rule development. From March 2006 to october 

5 2006, the review committee held five committee 

6 meetings and one public workshop. As a result of 

7 the committee's work, and after a public hearing 

8 on March 6th, 2007, Section 2 of 7 DE Admin Code 

9 1142 was created and finalized with an effective 

10 date of July 11, 2007. The rule sets up NOx 

11 emission limits and compliance schedules for 

12 seven units at Delaware City Refinery, owned and 

13 operated by Premcor Refining Group Inc. The new 

14 section also places two other units at Delaware 

15 City Refinery in a reserved status. 

16 On July 20, 2007, Premcor Refining 

17 Group Inc. filed with the Environmental Appeal 

18 Board an appeal of Section 2 of 7 DE Admin Code 

19 1142. In August 2009, Premcor and the Department 

20 reached a settlement agreement to resolve 

21 Premcor's appeal of July 2007. The proposed 

22 revision being addressed today is a result of 

23 this settlement agreement. 

24 The proposed revision revises NOx 

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emission limits for three units among the nine 

units being covered by Section 2 of 7 DE Admin 

Code 1142. Specifically, for the Boiler 1, its 

emission limit is revised from 0.04 pounds per 

million BTU to .015 pounds per million BTU and 

for Boilers 3 and 4, the requirement of 

cease-operation is revised to a NOx emission 

limit of .015 pounds per million BTU. The 

Department believes that the revised limits are 

adequate for achieving necessary and timely NOx 

emission reductions that will aid Delaware 

attainment of the ozone standards. 

The proposed revision has been 

available for public review and comments in the 

Department's Air Quality Section offices in Dover 

and New Castle since August 23rd, 2009. The 

proposed revision was also published in Delaware 

Register of Regulations on September 1st, 2009 

for public review. A legal notice regarding the 

availability and pUblication of the proposed 

revision was announced in the Sunday News Journal 

and the Delaware State News on August 23, 2009. 

This legal notice was also distributed among 

relevant stakeholders on the Department mailing 

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list. 

Finally, we want to point out that 

Delaware's Regulatory Flexibility Act shall not 

apply hereto since this proposed regulation does 

not impact any individuals or small businesses. 

That concludes the Department's 

statement. We now are back to the Hearing 

Officer. 

HEARING OFFICER HAYNES: Okay. Thank 

you. Very comprehensive review of this. This is 

the time to hear from the public. And the 

representatives are here from Premcor, I believe, 

who have some either oral comments or written 

comments you'd like to present. 

MR. WOJEWODZKI: We have some written 

comments we would like to present. If we may, we 

need to confirmation either get a stamp or 

something on this we can take back. We have this 

court reporter that will mark this as -- do you 

go by Valero or Premcor? I know it's Premcor 

Refining Group. 

MR. WOJEWODZKI: Premcor is a --

HEARING OFFICER HAYNES: Local name? 

MR. WOJEWODZKI: That's our name, 

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1 yes. 

2 HEARING OFFICER HAYNES: Okay. Mark 

3 this as Premcor 

4 MR. WOJEWODZKI: This is the 

5 submittal. This is one I would like to get back. 

6 HEARING OFFICER HAYNES: You have 

7 writing on it then. 

8 MR. WOJEWODZKI: That's okay. 

9 HEARING OFFICER HAYNES: You don't 

10 trust us? 

11 MR. WOJEWODZKI: I do. 

12 HEARING OFFICER HAYNES: There are I 

I 13 trust issues here. You are dealing with the 

14 Department too much. Would you like me to write 

15 " received. " 

16 MR. WOJEWODZKI: "Received 9/30/09." 

17 HEARING OFFICER HAYNES: We have it 

18 down in the transcript and everything. 

19 MR. WOJEWODZKI: Thank you very much. 

20 HEARING OFFICER HAYNES: We'll mark 

21 this as Premcor Exhibit 1, and I'd ask that you 

22 send me the -- there are several copies of it. 

23 You can have some more. 

24 Well, do you have them? 

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I just need one. Could you send me 

the electronic version, too? 

MR. WOJEWODZKI: Yes, we can. We've 

sent it to someone. Forgive me for not 

remembering the distribution. 

(Premcor Exhibit No. 1 was received 

In evidence.) 

HEARING OFFICER HAYNES: If somebody 

In the Department already has it, they'll send it 

to me. Very fine. Nothing else? 

I did get a heads-up that this was 

coming. I have a question for you. It seemed 

like because I think I was a Hearing Officer 

when this regulation was done the first time, 

right. That was a distant memory. I try to 

brainwash myself out of these things, but. What 

happened that's causing you to change what 

apparently was an agreement? 

MR. WOJEWODZKI: I'm on the record? 

HEARING OFFICER HAYNES: You are on 

the record. You don't have to answer. You are 

not Mr. Covert. Why don't you identify yourself. 

MR. WOJEWODZKI: My name is Robert 

Wojewodzki. I'm the environmental manager at the 

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Delaware City Refinery. And you may have seen in 

the News Journal and other publications that the 

refinery is undergoing a significant change due 

to economic conditions, and, as the letter 

states, and I think it's hopefully 

self-explanatory, that there are some certain 

changes that have been made in the refinery that 

compel us to submit some written comments for you 

to consider. 

HEARING OFFICER HAYNES: Do the 

Department representatives have any comments, 

have questions? I am not as familiar with the 

engineering of what's involved in all this. 

MR. AMIRIKIAN: We haven't had a 

chance to review the comments yet to understand 

exactly what's being proposed. 

HEARING OFFICER HAYNES: Why don't 

you introduce yourself? 

MR. RANGAN: I'm Ravi Rangan, 

engineer with the Air Quality Management Section. 

MR. STELTZER: Bruce Steltzer, 

engineer, Environmental Engineering and 

Compliance. 

HEARING OFFICER HAYNES: Anything 

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1 else for the record? We'll, is there any time 

2 pressure for a decision on this? 

3 MR. AMIRIKIAN: I believe the consent 

4 agreement has a date in there that the 

5 Secretary's committed to that. 

6 MR. RANGAN: I believe October 14th. 

7 I believe the agreement has October 14th as a 

8 date, too. 

9 MR. GAO: August 1st. Ravi, you mean 

10 the settlement agreement? 

11 MR. RANGAN: Yes. 

12 MR. GAU: August the 14th. 

13 MR. RANGAN: It's paragraph 1 of the 

14 agreement. 

15 HEARING OFFICER HAYNES: Paragraph 1. 

16 No, the date to act on the proposed regulation. 

17 MR. RANGAN: That's right. 

18 HEARING OFFICER HAYNES: Well, that's 

19 not going to happen. What is it? 

20 I just got your written comments, and 

21 I didn't see any specific language that you would 

22 like changed in the proposed regulation. I am 

23 just saying that to you. Is there specific 

24 language? Obviously, the settlement agreement 

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wants an order by October 14th, 2009. 

MR. WOJEWODZKI: If I may read you to 

a sentence or two? 

HEARING OFFICER HAYNES: Yes. 

MR. WOJEWODZKI: The second 

paragraph, first page. The sentence beginning 

with "To the extent these other sources are 

viable options for obtaining NOx emissions, 

Premcor respectfully requests that the Department 

consider a proposed NOx emission limit for 

Boilers 1, 2, 3, 4 of 0.04 pounds per million 

BTUs." 

HEARING OFFICER HAYNES: So you would 

be looking on page 3 of the settlement agreement 

under subparagraph B where -- that's what you 

would seek to have changed? 

MR. WOJEWODZKI: As well as the 

follow-up statement that says, "We also request 

'that consideration be given to an adjusted 

compliance schedule for achieving the 0.04 pounds 

per million BTU limit with Premcor providing 

additional reductions from other NOx sources at 

DCR," which is Delaware City Refinery. 

HEARING OFFICER HAYNES: Where is 

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that language in the proposed regulation? 

MR. WOJEWODZKI: I'm sorry. It 

continues from the first sentence to the second 

page, top of the page. 

HEARING OFFICER HAYNES: Where is 

that language on the proposed regulation on the 

compliance schedule? It is not subject to the 

proposed regulation change, is it? That's in 

the. 

MR. GODLEWSKI: There are dates in 

the proposed regulation as to when the limit 

becomes effective, which would be, for Boilers 3 

and 4, May 1st, 2011, and I believe for Boiler 1, 

it's December 31st, 2008. 

HEARING OFFICER HAYNES: Is that in 

the proposed regulation or in the current 

regulation? 

MR. AMIRIKIAN: It's in the current 

regulation. 

HEARING OFFICER HAYNES: It's not 

subject to amendment. 

MR. AMIRIKIAN: And there's no dates 

that are being proposed to be changed. 

HEARING OFFICER HAYNES: So that's 

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not even subject to this proposed regulation. 

You understand that. That would have to be done 

in a whole separate proceeding. 

The only thing that's really subject 

to this proceeding, if I read this agreement 

which is was signed in August of '09, is the 

proposed changes to Section 2.3, and then 2.3.5 

and then Section 2.3.3. Is that all the changes? 

MR. RANGAN: That's correct. 

HEARING OFFICER HAYNES: Thank you. 

That helps me understand this. 

And with that, I will adjourn the 

record. I will keep the record open for possible 

staff report to provide me the technical 

assistance as needed to prepare my report of 

recommendations. 

To the extent that we have any need 

to have further hearing or further dialogue, I 

will state on the record that I will only deal 

with the persons that are in attendance, which 

will be limited to Premcor so we don't have to 

provide any public notice to the world. I think 

that is something I can do. 

All right. Thank you. we are now 

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adjourned. 

(Premcor 

(Hearing adjourned at 6:20 p.m.l 

NO. 

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NO. 

1 

I N D E X 

DNREC EXHIBITS 

Notice of publication 

in Delaware Register and 

proposed regulation revision 

Copies of affidavits of 

publication for News Journal, 

Sunday News Journal 

and Delaware State News 

Copy of legal notice mailed to 

Department's mailing list 

Copy of settlement agreement 

PREMCOR EXHIBIT 

9/30/09 letter to F. Gao 

from P. Covert, Valero 

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REC'D 

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