Boiler MACT and Greenhouse Gas Permitting Update

1
Boiler MACT and Greenhouse Gas Permitting Update
Rhonda B. Thompson, P.E. Bureau of Air Quality
SC DHEC
2
Boiler Rule Applicability

• Major source
• Emits or has the potential to emit 10 tons per
  year (tpy) of any single hazardous air pollutant
  (HAP) or 25 tpy or more of any combination of HAP
• Maximum Achievable Control Technology (MACT)
  Standards
• Area Source
• Emits less than the 10/25 tpy threshold
• Generally Available Control Technology (GACT)
  Standards

3
Boiler Rules Timeline

• EPA promulgated first standards on September 13,
  2004 for major sources
• U.S. Court of Appeals vacated and remanded the
  rule on June 8, 2007
• Only a few months before the compliance date
• EPA proposed new Boiler rules on June 4, 2010
• 40 CFR Part 63, Subpart DDDDD Boiler MACT
• 40 CFR Part 63, Subpart JJJJJJ GACT (area
  source)
• 40 CFR Part 60, Subpart CCCC CISWI
• Commercial Industrial Solid Waste Incinerators

4
Boiler Rules Timeline

• EPA requested an extension in the court-ordered
  schedule for the Boiler MACT and CISWI standards
  on December 7, 2010
• The motion was seeking additional time to
  re-propose and finalize the standards (April
  2012)
• The motion was denied on January 20, 2011
• Court granted a one-month extension to February
  21, 2011

5
Boiler Rules Timeline

• EPA promulgated standards on March 21, 2011
• EPA issued a Notice of Reconsideration for the
  Boiler MACT, Area Source Boiler Rule, and CISWI
  standards on March 21, 2011
• The effective date was stayed for the Boiler MACT
  and CISWI standards on May 18, 2011
• Area Source Boiler Rule not stayed (still
  effective)

6
Boiler Rules Timeline

• EPA proposed reconsiderations of the final rule
  on December 23, 2011
• EPA proposed amendments and technical corrections
  to the Boiler MACT and Area Source Boiler Rule
• Clarify definitions, references, applicability,
  and compliance issues
• Emission limit changes (some increases, some
  decreases), more fuel subcategories (more
  compliance options), reduced testing requirements

7
Boiler Rules Timeline

• US Court of Appeals vacated the stay of the
  effective date of the Boiler MACT and CISWI on
  January 9, 2012
• Only giving facilities about 2 years to comply
• EPA response to the vacatur (letter to U.S.
  Senator Wyden)
• On track to finalize the reconsideration by
  Spring 2012
• Will not enforce the administrative notification
  requirements for new/existing boilers and
  incinerators
• Intend to reset the compliance clock to allow the
  three years to achieve compliance as provided in
  the CAA

8
Greenhouse Gases (GHG)

• GHGs are pollutants that trap heat in the
  atmosphere and are associated with climate change
• Under EPA rulemaking, GHGs are a single air
  pollutant defined as the aggregate group of the
  following 6 gases
• Carbon dioxide (CO2)
• Methane (CH4)
• Nitrous oxide (N2O)
• Sulfur hexafluoride (SF6)
• Hydrofluorocarbons (HFCs)
• Perfluorocarbons (PFCs)

9
Tailoring Rule

• May 13, 2010 EPA issued PSD and Title V GHG
  Tailoring Rule
• 100,000 TPY CO2e major source threshold
• 75,000 TYPY CO2e significant increase
• Three Phases of Implementation

10
Tailoring Rule, Phase I

• Phase I addressed permitting decisions made from
  January 2, 2011 to June 30, 2011
• Phase I applied to new sources that are otherwise
  subject to PSD for another regulated NSR
  pollutant, and
• GHG PTE is
• Equal to or greater than 75,000 TPY CO2e
• A new or modified stationary source cannot be
  major solely on the basis of its GHG emissions

11
Phase I Implementation

• No PSD Permits issued in SC
• One Synthetic Minor Permit
• Outreach
• Application Forms
• DHEC modified construction and Title V forms to
  include GHG emissions.
• Website, postcards, GHG quick estimator

12
Tailoring Rule, Phase II

• Addresses permitting decisions made from July 1,
  2011 to June 30, 2013
• Applies to new sources that have GHG PTE equal to
  or greater than 100,000 TPY CO2e
• Applies to modifications at major stationary
  sources that are equal to or greater than 75,000
  TPY CO2e
• Source CAN be major solely on basis of GHG
  emissions if it exceeds the 100,000 TPY CO2e
  threshold

13
Phase II Implementation

• One GHG PSD permit on public notice second
  application under review
• EPA Headquarters reviewing all draft
  determinations
• For TV applications (new or renewal) in-house
• Facility-wide and unit specific GHGs must be
  quantified and submitted prior to permit issuance
• For TV permits not yet expired
• Address GHGs as part of renewal application,
  and/or during a TV modification
• Any facility with GHGs gt 100,000 TPY CO2e (not
  major for another pollutant)
• Now considered a TV source
• TV application must be submitted by July 1, 2012
• OR take GHG facility-wide limits before July 1,
  2012

14
Tailoring Rule, Phase III

• July 1, 2013 to April 30, 2016
• EPA will conduct a study to determine impact of
  including smaller sources
• The study will examine whether (and how)
  facilities below 50,000 TPY should be regulated
• Study will be completed by April 2015
• EPA has set a GHG emission floor (50,000 TPY
  CO2e) below which facilities will not be subject
  to PSD or TV permitting requirements before April
  30, 2016

15
Biomass Deferral (July 1, 2011)

• EPA issued 3 year deferral
• Applies to PSD and TV
• Includes ONLY bioenergy and other biogenic source
  CO2 emissions
• During this 3 year period, EPA will examine the
  science associated with biogenic CO2 emissions
• Then determine permitting path
• Applications during this deferral
• Distinguish biogenic from other CO2
• Include non-biogenic CO2 in applications

16
What is Bioenergy?(according to rule)

• Bioenergy is carbon, hydrogen and oxygen based
• Bioenergy is derived from 5 distinct energy
  sources garbage, wood, waste, landfill gases,
  and alcohol fuels
• Includes only the biogenic fraction

17
GHGs Permitting Lessons Learned

• Lesson estimate GHG emissions for all possible
  sources
• Fuel burning - good emission factors
• Process emissions - some industries have good
  emission factors, others lacking
• Develop site-specific data (if time permits) OR
  rely on similar process factors
• Lesson address carbon sequestration and storage
  (CCS)
• EPA guidance on when CCS is considered
  available (large sources such as utilities,
  cement kilns , pure CO2 streams)
• If not considered available, discuss difficulties
  of CCS
• If considered available, CCS can be eliminated in
  Step 2 (technically infeasible) or Step 4 (other
  considerations, including economic)

18
GHGs Permitting Lessons Learned

• Lesson address process efficiency
• Identify areas where waste heat can be recovered
• Identify good combustion practices
• Discuss reasons why other process designs (e.g.,
  different boiler types, fuel switches, etc.) not
  proposed
• No sufficient to just reference redefining the
  source policy
• Explain why proposed design is integral to
  current business plan and product made
• Lesson address raw material substitution
• Are lower carbon content materials available?
• Lesson pollutant trade offs
• One design may decrease GHGs, but increase NOx
  quantify
• DOCUMENT, DOCUMENT, DOCUMENT, DOCUMENT!!

19
GHGs Permitting Electronic Resources

• http//www.epa.gov/nsr/ghgpermitting.html
• GHG permitting guidance
• General and industry specific white papers
• Links to EPA comments on draft permits
• GHG training modules

20
General GHG Electronic Resources

• http//www.epa.gov/climatechange/
• GHG Reporting Rule Guidance
• Voluntary Programs
• Regulatory Initiatives
• Frequent Questions

21

• Staff Contacts
• Mary Peyton Wall Boiler MACT/GACT
• 803-898-4064
• wallmp_at_dhec.sc.gov
• Liz Basil GHG Permitting
• 803-898-4126
• basilej_at_dhec.sc.gov