1

T o: M a

r y J o h n s o n

a n d B r i a n

S h r a g e r , E P A

/ S P P D

F r o m: A m a n d a S i n g l e t o n a n d R o y O o m m e n , E R G

D a t e: S e

p t e m b e r 20
, 2010

R e: M i n

u t e s o f A u g u s t 25 th 2010 M e e ti n g w i t h U SF S a nd U S DA

M ee t i n g A g e nd a

• M A C T / G A C T O v e r v i e w , M a r y J o h n s o n , E P A

/ SPP D

• I n t r o d u c t i o n a nd C o n c e r n s f

r o m t h e U .S. D e

p a r t m e n t o f A g r i c u l t u r e

a n d U .S. F o r e s t S e r v i c e ( U S D A / U SFS ) on N a t i o n a l B i o m a ss I n i t i a ti v e s , S t e v e M a r s h a ll
, U SFS

M ee t i n g A tt e nd ee s

M a r y J o h n s o n , E P A

/ SPP D S t e v e M a r s h a ll
, U SFS J u l i e T u c k e r , U SFS L e w M c C r e e r y , U SFS D e b b i e S t a c kho u s e , E P A

/ O I D J i m E d d i ng e r , E P A

/ S P P D K a r e n B l a n c h a r d
, E P A

/ O I D R o b i n D unk i n s , E P A

/ S P P D J oh n A v e r b a c k
, E P A OG C ( a r e a s o u r c e l e a d

) K e t a n Pa t e l
, E P A

/ S P P D B r i a n S h r a g e r , E P A

/ S P P D D a v e A t k i n s , M i zz o u l a

- U SFS T o m G u z o m

b a, M i zz o u l a

– U SFS M a r c i a P a tt on

- M a l l o r y

– U SFS W e s t e r n F o r e s t r y L e a d e r s h i p C o a l S a r a h B i ttl e m a n

– U S D A

S ec r e t a r y O ff

i c e L a r r y O r w i t h

– A d m i n i s t r a t o r ’ s O ff i c e f o r U S D A R oy O o mm e n , E R G A m a n d a S i n g l e t o n , E R G

Ms

. J o h n s o n d i s c u s s e d t h e c u rr e n t s c h e d u l e f o r t h e p r o m

u l g a ti o n p a c k a g e

a n d p r o v i d e d

a n ov e r v i e w o f E P A ’ s o b l i g a ti o n s f

o r m a x i m u m ac h i e v a b l e

c o n t r o l t e c hn o l og y ( M A C T ) f l o o r a nd g e n e r a ll y

a v a il a b l e

c o n t r o l t e c h no l og i e s ( G A C T ) u n d e r s e c t i o n 112 o f t h e C l e a n A i r A c t ( C AA )

. ( S e e a t t a c h m e n

t

. )

S t e v e M a r s h a ll p r e s e n

t e d c o n c e r n s a b o u t t h e p r o p o s e d a r e a s o u r c e b o il e r p r o p o s a l a s i t i m p a c t s b i o m a ss p r o j e c t s

. A f t e r p r ov i d i n g b a c k g r o u n d o n U S D A / U SFS p r og r a m s a f

f e c t i n g b i o m a ss bo il e r s , h e a n d o t h e r s

a dd r e s s e d c e r t a i n i ss u e s r a i s e d i n c o m m e n t s o n t h e p r op o s e d r u l e s , i n c l u d i ng c o n c e r n s w i t h t h e li mi t s f o r

n e w b i o m a ss bo il e r s a nd q u e s t i o n s r e g a r d i ng t h e M A C T f l o o r a p p r o a c h
, t h e t e s t i ng a n d m on i t o r i n g

r e q u i r e m e n t s , t h e u s e o f C O a s a s u

rr og a t e , t h e e s t a b l i s h m e n t o f a dd i ti o n a l s ub c a t e g o r i e s a nd / o r s e p a r a t e

r e q u i r e m e n t s f o r n e w s m a ll e r b o il e r s , a nd t h e a v a il a b ilit y o f d a t a f

o r s m a l l un i t s

. U S D A

/ U SFS p r o v i d e d

n o s i g n i f i c a n t n e w i n f o r m a t i o n n o t p r e v i o u s l y p r o v i d e d b y o t h e r c o mm e n t e r s

. A d d i t i o n a l d a t a m a y b e f o r t h c o m i n g f

r o m U S D A

/ U SFS r e g a r d i n g v a r i o u s t o p i c s i d e n t i f i e d b y c o m m e n t e r s

.

# M

A C T / GA C T 101 A r e a S o u r ce B io m a ss

- F i r e d B oi l e rs

U .S. E n v i r on m e n t a l P r o t ec ti o n A g e n cy

A u g u s t 25
, 2 0 102 

# R u l e m a k i ng

n 

### N a t i o n a l E m i ss i on S t an d a r d s f o r H a z a r dou s Ai r P o l l u t an t s ( N E S H AP ) f o r A r ea S ou r c e s : I ndu s t r i a l , C o m m e r c i a l

, a nd I n s t i t u t i o n a l B o i l e rs

q 

### B eing p r o p o s ed a s r e qui r ed b y s e c t i o n 1 1 2 o f t h e C le a n A i r A ct

n 

### S c he du le

q 

### Pr opo s al s i g ne d on A p r i l 29

, 2 010

n P ub l i s he d i n t he F e d e r a l R e g i ster on J un e 4

, 2010

q 

### 3 P ub l i c H ea r i ng s h e ld

q 

### P ubl i c C o mm e n t p e r i o d c l o s e d on A u gu s t 2 3

, 2 0 10

q 

### P r o m u l ga t i on

– D e c e m be r 16

, 2 0 10 ( C o u r t

- o r de r ed)3 

# O v e r v i e w o f S ec t io n 112

n 

### M a ndate s that EPA de v e l op s tanda r d s f o r h a z a r dou s a i r po ll utants ( H AP ) f o r

both m a j o r

and a r e a s ou r c es

q M a j o r s ou r ce i s a f ac il i t y t ha t e m it s o r ha s t he p o t e n ti a l t o e m it 1 0 t on s pe r y e a r ( t py ) o f s i ng l e H AP o r 2 5 t py o f t o t a l H AP

q A r ea s ou r ce i s a f a c i l it y t ha t i s n o t a m a j o r s ou r ce

n 

### S tate s that s tanda r d s a r e b a s ed on the m a x i m u m a c h i e v ab l e c ont r o l te c hno l o g y ( M A C T)

n 

### S et s m i n i m u m s t r i ngen c y c r i t e r i a ( M A C T F l o o r) t h at d is r e ga r d c o s t i m pa c ts

q F o r e x i s ti ng s ou r c e s:

n “ T he a v erage e mi s s i o n l i mi t a t i on a c h i e v ed b y t h e be s t per f o r m i ng 1 2 per c en t o f e x i s t i ng s our c e s ..”

q F o r ne w so u r c e s , t he M A C T fl o o r i s:

n “ T he e m i s s i on c on t ro l a c h i e v ed i n pra c t i c e b y t he b e s t c o n t ro ll e d s i m i l ar s our c e ...”

q M ay s e t “ be y o n d t h e fl oo r ” s t an d a r d s t ha t c on s i de r c o s t i m pa c ts

# O v e r v i e w o f S ec t io n 112

n 

### M A C T m a y d i f f e r f o r new a n d e xis t i ng s ou r c es

n 

### Cou r t h a s r u l ed t h at “ a c h i e v a b l e ” is de f i ned i n the s tatute a s be i ng

“ a c h i e v ed i n p r a c t ic e”

n 

### S e c t i on 112 r e q u i r e s EPA to pub lis h a lis t o f a r ea s ou r c e s that e m i t H AP

q L i s ti ngs

n 112( k ) area s our c e c a t egor y l i st

– requ i re s EP A t o l i s t enough area s our c e c a t egor i e s t o s u b j e c t 90 % o f t h e 3 0 l i s t ed urban H A P t o s t a ndard s:

q I ndu s t r i a l bo i l ers

q I n s t i t u t i ona l / c o mm er c i a l bo i l ers

n 112( c )(6) s our c e c a t egor y l i st

– r e qu i re s E P A t o l i s t enough m a j or a nd area s our c e c a t egor i e s t o s u b j e c t 9 0 % o f t he 7 l i s t ed p o t en t i a ll y b i o-a c c u m u l a t i v e H A P t o s t andar d s:

q I ndu s t r i a l bo i l ers

q I n s t i t u t i ona l / c o mm er c i a l bo i l ers

n 

### A ll ow s E PA to s ub c atego r iz e ba s ed on cl a ss , t y pe, o r si z e o f s ou r c e s i n e s tab lis h i ng s tanda r ds

45 

# O v e r v i e w o f S ec t io n 112

n 

### A ll ow s E PA to p r o m u l g ate a wo r k p r a c t ic e s tanda r d, i n li eu o f a n u m e r ic a l e m issi on li m i t, i f i t is not f ea si b l e to en f o r c e an e m issi on s tanda rd

q N o t f ea s i b le m e an s t h e a pp li c a ti on o f m ea s u r e m en t m e t h o do l o g y i s no t p r a c ti c ab l e d u e t o t e ch no l o g i c a l a n d e co no m i c li m it a ti ons

n 

### F l oo r s a n d v a r i ab ili ty

q S t r i c t ad h e r en c e t o l an g u a g e o f s e c ti on 1 12

q F o r va r i ab ilit y , m ay n o t g o ou t s i d e t he t op p e r f o r m i ng 1 2 p e r c en t o r t op pe r f o r m er

n 

### It is the end r e s u l t that m att e r s ( i .e., l owe s t e m issi on s to the at m o s ph e r e ) and not h ow y o u got the r e ( i .e., u s e o f a s pe c i f i c c ont r o l d e v ic e)

n 

### S tanda r d s a r e e ff e c t i v e on p r o m u l gat i on

q N e w s ou r c e s c o m p l y a t s t a r t

- up

q E x i s ti ng s ou r c e s ha v e 3 y ea r s t o c o m e i n t o c o m p li an ce6 

# S t a t u t o r y P r o v i s io n s f o r A r e a S o u r ces

n 

### S e c t i on 112 ( d ) ( 5 ) a ll ow s f o r a r ea s o u r c e s tand a r d s ba s e d on G A CT ( G e ne r a ll y A v a il ab l e C o nt r o l T e c hno l o g y)

q M a j o r s ou r c e s t anda r d s a r e b a s ed on M A CT

q U n d e r G A C T m a y c on s i de r c o s t s and e con o m i c i m pa c ts

n 

### F o c u s o f s tanda r d s is on the 30 U r ban H AP

n 

### EPA m a y e x e m pt a r ea s o u r c e s f r o m t i t l e V i f we dete r m i n e c o m p li an c e wou l d be i m p r a c t ic ab l e, i n f e a si b l e, o r unne c e ss a r il y b u r d en s o me

n 

### S e c t i on 112 ( c ) ( 6 ) r e q u i r e s lis ted c atego r i e s be s u b j e c t to M A CT

q B o t h m a j o r a n d a r e a s ou r c e i n d u s t r i a l bo il e r s and i n s tit u ti ona l/ co mm e r c i a l bo il e r s a r e on li s t o f 112 ( c )( 6 ) s ou r c e c a t ego r i e s ( f o r c oa l, w ood

, a n d o il
c o m bu s ti on)

n M e r c ur y

– all m a

jo r s o u r c e b oiler s a nd c oal

- f ire d are a s ou r c e boile rs

n Pol y c y c l i c organ i c m a t t e r ( PO M )

– a l l m a j o r an d are a s ou r c e boile rs

# B a

c k g r o u n d

- W h a t S o u r c e s W i ll T h e B o i l e r A r e a S o u r c e R u l e C o v e r?

n 

### W ill c o v e r

an e s t i m ated 1 83

, 000 bo il e r s at a r ea s o u r c e s at an e s t i m at e d 92,000 f a cili t i es

q T he a r ea so u r c e c a t e g o r y on l y i n c l ude s b o il e r s c o m bu s ti ng c oa l, b i o m a ss , o r o il

n I nd u s t ria l boile r s

– 14 %

n C o m m e r c ial boile r s

– 1 9%

n I n st i t u t iona l boile r s

– 67%

q T he r e a r e a n e s ti m a t ed 1

. 3 m ill i on ga s

- fi r ed bo il e r s l o c a t ed a t a r ea so u r c e s t ha t a r e no t i n c l u d ed i n t h e s ou r c e c a t ego ry

n 

### In cl ude s bo il e r s u s ed in

q c o mm e r c i a l e s t ab l i s h m en ts

n s t or e s /m all s, laundri e s, apa r t m e n t s , re s t aura n ts, h o t el s/ m o t e ls

q I n s tit u ti ons

n m ed i c a l c en t er s ( ho s p i t a l s, c lin i cs , n ur s in g h o m e s)

n edu c a t iona l ( s c hoo l s , un i v e r s i t i e s)

n m un i c ipa l buildin g s ( c ou r t ho u s e s , p ri s o n s )

n 

### A bout 85 % o f a r ea s o u r c e s a r e e s t i m ated to be s m a ll ent i t i es

78



# B oi l e r A r e a S o u r c e R u l e

- Pr o p o s e d S u b c at e g o r i es

n 

### T h r e e s u b c a t e g o r i es b a se d on d e s i g n t y pe:

q 

### Coa l

- f i r ed un i ts

n 3

, 7 00 un its

q 

### B i o m a s s -f i r e d un i ts

n 

### 11,000 un i ts

q 

### L i q u i d f ue l

- f i r e d u n i ts

n 1 6 8

, 0 00 un its9



# B oi l e r A r e a S o u r c e R u l e

- Pr o p o s e d S ta nd ar ds

n 

### E xis t i ng b i o m as s -f i r e d bo i l e rs

q P r o p o s ed e m i s s i on li m i t s on l y f o r c a r bon m o no x i d e ( CO ) ( a s s u r r o g a t e f o r P O M a n d o t h e r u r b a n o r ga n i c H AP )

– ba s ed on M A CT

q T e c h n o l o gy ba s i s

– g o od c o m bus ti on p r a c ti c es

q E m i s s i on s li m it s on ly a pp li c ab l e t o un it s w it h h e a t i n p u t c apa c iti e s 10
m il l i on B t u / ho u r o r g r ea t er

q W o r k p r a c t i c e s t an d a r d ( b i e n n i a l t une

- u p ) p r o p o se d u nd e r s e c ti o n 1 1 2 ( h ) f o r un it s w it h hea t i n p u t c a p a c iti e s l es s t han 10 m illi o n B t u / h our

q W o r k p r a c t i c e s t an d a r d ( e n e r gy a ss e ss m en t ) p r opo s ed f o r a r e a s ou r c e f a c il i ti e s hav i ng bo il e r s w it h hea t i npu t 1 0 m illi on B t u / h ou r o r g r e a t e r a s a b e y o n d

- t he

- fl oo r s t an d a rd10



# B oi l e r A r e a S o u r c e R u l e

- Pr o p o s e d S ta nd ar ds

n 

### N e w b i om ass - f i r e d bo ile rs

q P r o p o s ed e m i s s i on li m i t s f o r:

n Pa r t i c u l at e m a tter (P M ) ( a s s u r rog a t e f o r urba n m e t a l s )

– ba s e d o n GA CT

q T e c hnolog y b a s i s

– b a gho u s e

n C O (a s s u rr og a t e f or PO M a nd o t h e r u r b a n o r g a n i c HA P)

– b a s e d o n M A CT

q T e c hnolog y b a s i s

– g o od c o m b u s t i o n pr a c t i c es

q E m i s s i on s li m it s app li c ab l e t o a ll un it s , r ega r d l e ss o f s i ze

q N o w o r k p r a c ti c e s t anda r d s p r op o s ed

q N o b e y o n d

- t he

- fl oo r s t an d a r d p r o p o s ed11 

# B oi l e r A r e a S o u r c e R u l e

- Pr o p o s e d T e s t i n g

a nd M o n i t o r i n g R eq u i r e m e n ts

n 

### T es ti n g:

q 

### In i t i a l c o m p li an c e te s t s ( C O and P M)

q 

### A nnua l pe r f o r m an c e te s ts

q 

### B i enn i a l tune

- up f o r e xis t i ng bo il e r s l e ss than 10 m illi on B tu/hou r i n si ze

n 

### M o n i t o r i ng

q 

### P r o c e ss pa r a m et e r s ( o p a ci t y , p r e ss u r e d r op, f ue l , et c

. )

q 

### C O c ont i nuou s e m issi on s m on i to r i ng s y s t e m s ( C E M S ) f o r un i t s w i th heat i nput c apa ci t y o f 100 m illi on B tu/hou r o r g r e ater

n 

### C on ti n uo us C o m p li an ce

q 

### D e m on s t r ated b y m a i nta i n i n g op e r at i ng li m i t s ( p r o c e ss pa r a m ete r s)

n B a se d o n a v e r a ge s s e t du r i ng c o m p li an c e t es 

### t

# A pp

e n d ix

# E m

i s s i o n L i m i t s f o r B i o m a s s

- f i r ed A r e a S o u r ce B oi l e rs

13 S o u r ce S u b ca t e go ry P M , l b / MM B tu Hg C O, ppm

N e w B o il er B i o m ass 0

. 03 N /A 100 ( @ 7 % O 2 )

E x i s t i n g B o il er B i o m ass N /A N /A 160 ( @ 7 % O 2 )14



# B oi l e r A r e a S o u r c e R u l e ( a ll ar e a s o u r c e b oi l e r s )

- I m p a c ts

n C o s t I m p ac ts

q T o t a l ca p it a l i n v e s t m e n t ( T C I ) = $ 2

. 5 b i ll i on

n E x i s ti n g u

n it s = $ 1

. 8 b i ll i on

n N e w un i t s ( 6
, 77 9 e s ti m a t e d ) = $ 0

. 7 b i l l i on

q T o t a l a nn u a l i ze d c o s t ( T A C ) = $ 1

. 0 b i l l i on

n E x i s ti n g u

n it s = $ 0

. 7 b i ll i on

n N e w un i t s = $ 0

. 3 b i ll i on

n T e s ti n g / m o n it o r i n g T A C = $ 29 0 m i ll i on

n E n e r g y A s s e ss m e n t ( A ud it ) = $5 2 m i ll i on

n E m i ss i o n R e d

u c t i o n s ( t o n s / y e a r)

E x i s ti ng N ew M e r c u r y = 0

. 6 3 0

. 10 M e t a l s = 210 40 P M = 6
, 3 00 1
, 3 00 S O 2 = 1
, 400 150 VO C = 890 290 H C l = 120 8

# E c o n o m i c A n a l y s i s o f A r e a S o u r c e R u l e ( a ll ar e a s o u r c e b oi l e r s)

— S o c i a l C o s t s = $0

. 5 b illi on

— C on s u m e r Surpl u s l o s s o f $ 0

. 3 billi on

— D o m e st i c Pr o du c e r Surpl u s L o s s o f $0

. 3 billion

— O t h e r C oun t rie s s urpl u s G ain $ 0

. 1 b i llion

— F uel s a v i ng s a n d o t h e r c o st s no t i n c l uded i n m a r k e t m ode l n e t c o st o f $ 0

. 1 billion

— P r i c e and Q u a n tit y C h an ges

— A v er a ge N a t iona l pr i c e s f o r ind u s t ria l s e c t o r s l e s s t h a n 0

. 0 1%

— D o m e st i c Pr o du c t io n m a y f all b y l e ss t ha n 0

. 01%

— E m p l oy m en t C h a n g es

— N ear T e r m j o b l o ss e s 1

, 000

— Long- t er m e f f e ct s rang e b e t w een 1

, 0 00 j o b l o s s e s t o 3

, 00 0 j o b gai ns

— S m a ll B u s i ne ss

— SBA R Panel

— M o n e ti z e d H e a lt h B en e fits

— $1

. 0 t o $2

. 4 b ill i on ( 3 % d i s c oun t)

— $0

. 9 t o $2

. 2 b ill i on ( 7 % d i s c oun t ra t e)

— All e s t i m a t e s i n 2008$

15