1

To: Mary Johnson and Brian Shrager, EPA/SPPD 

From: Amanda Singleton and Roy Oommen, ERG 

Date: September 20, 2010 

Re: Minutes of August 25th 2010 Meeting with USFS and USDA

Meeting Agenda 

• MACT/GACT Overview, Mary Johnson, EPA/SPPD 

• Introduction and Concerns from the U.S. Department of Agriculture and U.S. Forest Service 

(USDA/USFS) on National Biomass Initiatives, Steve Marshall, USFS

Meeting Attendees 

Mary Johnson, EPA/SPPD 

Steve Marshall, USFS 

Julie Tucker, USFS 

Lew McCreery, USFS 

Debbie Stackhouse, EPA/OID 

Jim Eddinger, EPA/SPPD 

Karen Blanchard, EPA/OID 

Robin Dunkins, EPA/SPPD 

John Averback, EPA OGC (area source lead) 

Ketan Patel, EPA/SPPD 

Brian Shrager, EPA/SPPD 

Dave Atkins, Mizzoula - USFS 

Tom Guzomba, Mizzoula – USFS 

Marcia Patton-Mallory – USFS Western Forestry Leadership Coal 

Sarah Bittleman – USDA Secretary Office 

Larry Orwith – Administrator’s Office for USDA 

Roy Oommen, ERG 

Amanda Singleton, ERG 

Ms. Johnson discussed the current schedule for the promulgation package and provided an overview of 

EPA’s obligations for maximum achievable control technology (MACT) floor and generally available 

control technologies (GACT) under section 112 of the Clean Air Act (CAA). (See attachment.) 

Steve Marshall presented concerns about the proposed area source boiler proposal as it impacts biomass 

projects. After providing background on USDA/USFS programs affecting biomass boilers, he and others 

addressed certain issues raised in comments on the proposed rules, including concerns with the limits for 

new biomass boilers and questions regarding the MACT floor approach, the testing and monitoring 

requirements, the use of CO as a surrogate, the establishment of additional subcategories and/or separate 

requirements for new smaller boilers, and the availability of data for small units. USDA/USFS provided 

no significant new information not previously provided by other commenters. Additional data may be 

forthcoming from USDA/USFS regarding various topics identified by commenters. 
MACT/GACT 101

Area Source Biomass-Fired Boilers

U.S. Environmental Protection Agency

August 25, 2010
2

Rulemaking

n National Emission Standards for Hazardous Air Pollutants 

(NESHAP) for Area Sources: Industrial, Commercial, and 

Institutional Boilers

q Being proposed as required by section 112 of the Clean Air Act

n Schedule

q Proposal signed on April 29, 2010 

n Published in the Federal Register on June 4, 2010

q 3 Public Hearings held

q Public Comment period closed on August 23, 2010

q Promulgation – December 16, 2010 (Court-ordered)
3

Overview of Section 112

n Mandates that EPA develop standards for hazardous air pollutants

(HAP) for both major and area sources

q Major source is a facility that emits or has the potential to emit 10 tons 

per year (tpy) of single HAP or 25 tpy of total HAP

q Area source is a facility that is not a major source

n States that standards are based on the maximum achievable 

control technology (MACT)

n Sets minimum stringency criteria (MACT Floor) that disregard cost 

impacts

q For existing sources:

n “The average emission limitation achieved by the best performing 12 

percent of existing sources..”

q For new sources, the MACT floor is:

n “The emission control achieved in practice by the best controlled similar 

source...”

q May set “beyond the floor” standards that consider cost impacts
Overview of Section 112

n MACT may differ for new and existing sources

n Court has ruled that “achievable” is defined in the statute as being 

“achieved in practice”

n Section 112 requires EPA to publish a list of area sources that emit 

HAP

q Listings

n 112(k) area source category list – requires EPA to list enough area source 

categories to subject 90% of the 30 listed urban HAP to standards:

q Industrial boilers

q Institutional/commercial boilers

n 112(c)(6) source category list – requires EPA to list enough major and area 

source categories to subject 90% of the 7 listed potentially bio-accumulative 

HAP to standards:

q Industrial boilers

q Institutional/commercial boilers

n Allows EPA to subcategorize based on class, type, or size of sources in 

establishing standards

4
5

Overview of Section 112

n Allows EPA to promulgate a work practice standard, in lieu of a 

numerical emission limit, if it is not feasible to enforce an emission 

standard

q Not feasible means the application of measurement methodology is not 

practicable due to technological and economic limitations

n Floors and variability

q Strict adherence to language of section 112

q For variability, may not go outside the top performing 12 percent or top 

performer

n It is the end result that matters (i.e., lowest emissions to the

atmosphere) and not how you got there (i.e., use of a specific 

control device)

n Standards are effective on promulgation

q New sources comply at start-up

q Existing sources have 3 years to come into compliance
6

Statutory Provisions for Area Sources

n Section 112(d)(5) allows for area source standards based on GACT

(Generally Available Control Technology)

q Major source standards are based on MACT

q Under GACT may consider costs and economic impacts

n Focus of standards is on the 30 Urban HAP

n EPA may exempt area sources from title V if we determine compliance 

would be impracticable, infeasible, or unnecessarily burdensome

n Section 112(c)(6) requires listed categories be subject to MACT

q Both major and area source industrial boilers and institutional/commercial 

boilers are on list of 112(c)(6) source categories (for coal, wood, and oil 

combustion)

n Mercury – all major source boilers and coal-fired area source boilers

n Polycyclic organic matter (POM) – all major and area source boilers
Background - What Sources Will The Boiler Area 

Source Rule Cover?

n Will cover an estimated 183,000 boilers at area sources at an estimated 

92,000 facilities

q The area source category only includes boilers combusting coal, biomass, or 

oil

n Industrial boilers – 14% 

n Commercial boilers – 19%

n Institutional boilers – 67%

q There are an estimated 1.3 million gas-fired boilers located at area sources 

that are not included in the source category

n Includes boilers used in

q commercial establishments

n stores/malls, laundries, apartments, restaurants, hotels/motels

q Institutions

n medical centers (hospitals, clinics, nursing homes)

n educational (schools, universities)

n municipal buildings (courthouses, prisons) 

n About 85% of area sources are estimated to be small entities

7
8

Boiler Area Source Rule - Proposed 

Subcategories

n Three subcategories based on design type:

q Coal-fired units

n 3,700 units

q Biomass-fired units

n 11,000 units

q Liquid fuel-fired units

n 168,000 units
9

Boiler Area Source Rule - Proposed 

Standards

n Existing biomass-fired boilers

q Proposed emission limits only for carbon monoxide (CO) (as surrogate 

for POM and other urban organic HAP) – based on MACT

q Technology basis – good combustion practices

q Emissions limits only applicable to units with heat input capacities 10 

million Btu/hour or greater

q Work practice standard (biennial tune-up) proposed under section 

112(h) for units with heat input capacities less than 10 million Btu/hour

q Work practice standard (energy assessment) proposed for area source 

facilities having boilers with heat input 10 million Btu/hour or greater as 

a beyond-the-floor standard
10

Boiler Area Source Rule - Proposed 

Standards

n New biomass-fired boilers

q Proposed emission limits for:

n Particulate matter (PM) (as surrogate for urban metals) – based on GACT

q Technology basis – baghouse 

n CO (as surrogate for POM and other urban organic HAP) – based on MACT

q Technology basis – good combustion practices

q Emissions limits applicable to all units, regardless of size

q No work practice standards proposed

q No beyond-the-floor standard proposed
11

Boiler Area Source Rule - Proposed Testing 

and Monitoring Requirements

n Testing:

q Initial compliance tests (CO and PM)

q Annual performance tests

q Biennial tune-up for existing boilers less than 10 million Btu/hour in 

size

n Monitoring

q Process parameters (opacity, pressure drop, fuel, etc.) 

q CO continuous emissions monitoring systems (CEMS) for units with

heat input capacity of 100 million Btu/hour or greater

n Continuous Compliance

q Demonstrated by maintaining operating limits (process parameters)

n Based on averages set during compliance test
Appendix
Emission Limits for Biomass-fired 

Area Source Boilers

13

Source Subcategory PM, lb/MMBtu Hg CO, ppm

New Boiler Biomass 0.03 N/A 100 (@ 7% O2)

Existing 

Boiler

Biomass N/A N/A 160 (@ 7% O2)
14

Boiler Area Source Rule (all area source 

boilers) - Impacts

n Cost Impacts

q Total capital investment (TCI) = $2.5 billion

n Existing units = $1.8 billion

n New units (6,779 estimated) = $0.7 billion

q Total annualized cost (TAC) = $1.0 billion

n Existing units = $0.7 billion

n New units = $0.3 billion

n Testing/monitoring TAC = $290 million

n Energy Assessment (Audit) = $52 million

n Emission Reductions (tons/year)

Existing New

Mercury = 0.63 0.10

Metals = 210 40

PM = 6,300 1,300

SO2 = 1,400 150

VOC = 890 290

HCl = 120 8
Economic Analysis of Area Source Rule 

(all area source boilers)

— Social Costs = $0.5 billion 

— Consumer Surplus loss of $0.3 billion

— Domestic Producer Surplus Loss of $0.3 billion

— Other Countries surplus Gain $0.1 billion

— Fuel savings and other costs not included in market model net cost of $0.1 billion

— Price and Quantity Changes

— Average National prices for industrial sectors less than 0.01%

— Domestic Production may fall by less than 0.01%

— Employment Changes

— Near Term job losses 1,000

— Long-term effects range between 1,000 job losses to 3,000 job gains

— Small Business

— SBAR Panel

— Monetized Health Benefits

— $1.0 to $2.4 billion (3% discount)

— $0.9 to $2.2 billion (7% discount rate)

— All estimates in 2008$

15