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Case-by-Case Boiler MACT: How We Ended Up Here and What’s Next April 15, 2015 Betty Gatano, P.E. Permitting Section North Carolina Division of Air Quality, Raleigh, NC (919) 707-8736

April 15, 2015 Betty Gatano, P.E. Permitting Section North Carolina Division of Air Quality, Raleigh, NC (919) 707-8736

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Page 1: April 15, 2015 Betty Gatano, P.E. Permitting Section North Carolina Division of Air Quality, Raleigh, NC (919) 707-8736

Case-by-Case Boiler MACT:How We Ended Up Here and What’s

Next

April 15, 2015

Betty Gatano, P.E.Permitting Section

North Carolina Division of Air Quality, Raleigh, NC(919) 707-8736

Page 2: April 15, 2015 Betty Gatano, P.E. Permitting Section North Carolina Division of Air Quality, Raleigh, NC (919) 707-8736

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MACT Development

Boiler MACT History

NC Implementation

Topics

Page 3: April 15, 2015 Betty Gatano, P.E. Permitting Section North Carolina Division of Air Quality, Raleigh, NC (919) 707-8736

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National Ambient Air Quality Standards (NAAQS)

State Implementation Plans (SIPs)

New Source Performance Standards (NSPS)

National Emission Standards for Hazardous Air Pollutants (NESHAPs)

Clean Air Act of 1970

Page 4: April 15, 2015 Betty Gatano, P.E. Permitting Section North Carolina Division of Air Quality, Raleigh, NC (919) 707-8736

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Health-based standards◦ Set “at the level which …provides an ample margin of

safety to protect the public health from such hazardous air pollutants."

Standards for seven HAPs developed◦ Asbestos◦ Benzene◦ Beryllium◦ Inorganic Arsenic◦ Mercury◦ Radionuclides ◦ Vinyl Chloride

Part 61 NESHAP

Page 5: April 15, 2015 Betty Gatano, P.E. Permitting Section North Carolina Division of Air Quality, Raleigh, NC (919) 707-8736

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Increased the number of Hazardous Air Pollutants (HAPs) from 7 to 187

Defined major source of HAPs◦ 10 tpy of any one HAP◦ 25 tpy of all HAPs combined

Applied to categories of emission sources rather than to specific pollutants emitted

Clean Air Act Amendments of 1990: Title III

Page 6: April 15, 2015 Betty Gatano, P.E. Permitting Section North Carolina Division of Air Quality, Raleigh, NC (919) 707-8736

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Required technology-based emission standards◦ Maximum Achievable Control Technology (MACT) Standards◦ Best performing 12 % of emission sources

Included requirement to establish schedule◦ 40 % of source categories in 2 years◦ 25% of source categories in 4 years◦ 25% of source categories in 7 years◦ Remaining source categories in 10 years

Considers residual risk after implementation

Clean Air Act Amendments of 1990: Title III

Page 7: April 15, 2015 Betty Gatano, P.E. Permitting Section North Carolina Division of Air Quality, Raleigh, NC (919) 707-8736

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MACT Development

187HAPS

HAPS specifiedIn 1990 CAAA

174 Source Categories

Initially promulgated 07/16/1992

MACT Standards

Best performing

12 %

Per EstablishedSchedule

Initially promulgated12/03/1993

Page 8: April 15, 2015 Betty Gatano, P.E. Permitting Section North Carolina Division of Air Quality, Raleigh, NC (919) 707-8736

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The MACT Hammer! 112(j)(2) of the CAA

112(j) triggered 18 months after missed promulgation date

Applicable facilities must apply for “Case-by-Case” MACT

Page 9: April 15, 2015 Betty Gatano, P.E. Permitting Section North Carolina Division of Air Quality, Raleigh, NC (919) 707-8736

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Case-by-Case MACT A facility-specific…

MACT standard…

For HAP…

Established by the state permitting authority…

Through a permitting action…

Page 10: April 15, 2015 Betty Gatano, P.E. Permitting Section North Carolina Division of Air Quality, Raleigh, NC (919) 707-8736

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History of Boiler MACT January 2003 – Original rule proposed September 2004 – Original rule promulgated June 2007 – Rule vacated by D.C. Court June 2010 – Revised rule proposed March 2011 – Final rule promulgated May 2011 – EPA issues reconsideration notice and

issues stay on final rule December 2011 – EPA issued “reconsidered” rule January 2012 – DC court declares stay illegal and

2011 rule becomes effective January and February 2013 – Final rule issued

(again)

Page 11: April 15, 2015 Betty Gatano, P.E. Permitting Section North Carolina Division of Air Quality, Raleigh, NC (919) 707-8736

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2004 Boiler MACT Rule Listed eighteen subcategories of boilers

Set “no controls” as MACT floor for certain boilers types including gas and oil fired units

Established health-based standard as alternative to technology based-standard for HCl and manganese

Page 12: April 15, 2015 Betty Gatano, P.E. Permitting Section North Carolina Division of Air Quality, Raleigh, NC (919) 707-8736

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Vacatur of Rule Several groups filed petition challenging rule

◦ No controls◦ Health based standard◦ Treatment of small municipal utilities

DC Circuit Court vacated because of issues with CISWI definition◦ Incinerator rule was deemed inappropriately narrow,

resulting in inappropriate sources in the Boiler MACT◦ June 2007

Page 13: April 15, 2015 Betty Gatano, P.E. Permitting Section North Carolina Division of Air Quality, Raleigh, NC (919) 707-8736

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Not clear – differing opinions

NC Attorney General’s Office policy memo February 24, 2009◦ Vacatur of rule equated to EPA’s failure to

promulgated standard.

DAQ’s memorandum on April 9, 2009 regarding 112(j) applicability

Did MACT Hammer Apply?

Page 14: April 15, 2015 Betty Gatano, P.E. Permitting Section North Carolina Division of Air Quality, Raleigh, NC (919) 707-8736

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North Carolina’s Approach Issued letter to all Title V facilities

requesting Part 1 permit application.

Part II permit application due 60 days later.

NC DAQ established guidance for facilities.◦ http://daq.state.nc.us/permits/112j/

Page 15: April 15, 2015 Betty Gatano, P.E. Permitting Section North Carolina Division of Air Quality, Raleigh, NC (919) 707-8736

NC DAQ’s Implementation

DAQ incorporated Case-by-Case Standards into Title V permits◦ 98 facilities◦ 2010 and 2011

Facilities must comply with the Case-by-Case MACT requirements until “switch over date”

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Page 16: April 15, 2015 Betty Gatano, P.E. Permitting Section North Carolina Division of Air Quality, Raleigh, NC (919) 707-8736

The “Switch Over” Date

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Per 40 CFR 63.56(b), the “switch over” date:◦ Must be within a reasonable period of time; and,◦ Cannot exceed 8 years from the promulgation date.

See Lisa Jackson (US EPA Administrator) letter to Sen. Kay Hagan, dated March 8, 2012.◦ “[U]nder the Clean Air Act, existing major source

boilers with [CAA §112(j) standards] in their permits would have until at least 2018 to comply with the federal air toxics standards, unless the State sets an earlier deadline.” [emphasis added]

Page 17: April 15, 2015 Betty Gatano, P.E. Permitting Section North Carolina Division of Air Quality, Raleigh, NC (919) 707-8736

The “Switch Over” Date

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Language currently being included in affected Title V permit renewals…

◦ The Permittee shall comply with this CAA §112(j) standard until May 19, 2019.  After May 20, 2019 the Permittee shall  comply with the applicable CAA § 112(d) standard for ‘‘National Emission Standards for Hazardous Air Pollutants for Industrial, Commercial, and Institutional Boilers and Process Heaters.”

Page 18: April 15, 2015 Betty Gatano, P.E. Permitting Section North Carolina Division of Air Quality, Raleigh, NC (919) 707-8736

MACT Subpart DDDDD

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DAQ is also including MACT Subpart DDDDD conditions in permits at renewal…

40 CFR 63.56 (b)(b) If the Administrator promulgates a relevant emission standard under section 112(d) or (h) of the Act that is applicable to a source after the date a permit is issued …, the permitting authority must incorporate requirements of that standard in the title V permit upon its next renewal.

Page 19: April 15, 2015 Betty Gatano, P.E. Permitting Section North Carolina Division of Air Quality, Raleigh, NC (919) 707-8736

Similar but Different…

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Case-by-Case MACT MACT Subpart DDDDD

Subcategories by Capacity and Fuel Type Subcategories by Boiler Type and Fuel Type

Emission limits:PM (filterable)Total Suspended MetalsMercuryHydrogen ChlorideCarbon Monoxide

Emission limits: PM (filterable)MercuryHydrogen ChlorideCarbon MonoxideDioxin

Work Practice Standards only:Distillate fuel oilGaseous fuel

Work Practice Standards only:Heat input less than 10 million Btu per hourGas 1 subcategoryMetal process furnace subcategory

Work practice standards also includes one-time energy assessment

Page 20: April 15, 2015 Betty Gatano, P.E. Permitting Section North Carolina Division of Air Quality, Raleigh, NC (919) 707-8736

Final Thoughts…

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What if MACT DDDDD is less stringent?◦DAQ does not have to keep the more

stringent regulation.

What if the facility becomes an area source?◦Boiler becomes subject to GACT 6J.