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Boiler MACT, CISWI and Definition of Non-Hazardous Secondary Materials
October 11, 2011
American Public Power Association
Timothy Hunt
Overview
Boiler MACT concerns
Non Hazardous Secondary Material important
Cost implications
Review three part strategy –EPA, Hill and courts
2
Recent Actions
Rules published March 21 – effective May 20th
EPA reconsidering portions of rule – proposal Oct 31st
May 2011 stay of Boiler MACT and CISWI now in jeopardy
Full court press with EPA, White House, and Hill
Connecting billions in costs to thousands of jobs at risk
Legislation in House and Senate
EPA changes for all rules ???
3
Improvements from Boiler MACT Proposal
Combination Boilers – coal and biomass subcategories merged for fuel based HAPs (PM, Hg, and HCl)
higher limits for mercury and HCl, only modestly better PM
Work practices for area sources (GACT)
Work practices for startups and shutdowns
Expanded gas fired work practices to other clean gases
4
Boiler MACT Capital Costs for Forest Products for Final Rules – if most materials are fuels
5
HAP or Surrogat
e
PM/ metals
Acid gases
Carbon Monoxide (CO)
Mercury/ Dioxin*
NOx Total
Boiler MACT
(proposal cost)
$ 1.9B($2.4B)
$ 1B($2.9B)
$ 944M($502M)
$ 494M($497M)
NA $4.3B ($6.3B)
CISWI Boilers
$208M($140M)
$237M($160M)
$29M($40M)
$17M($20M)
$0M($80M)
$491M($440M
)GACT Boilers – tune-ups and energy audits only, no control costs
$0
Total Boiler Rules Cost for Forest Products $4.8B
Boiler MACT Capital Costs for Forest Products for Final Rules – if most materials are waste
6
HAP or Surrogate
PM/ metals
Acid gases
Carbon Monoxide (CO)
Mercury/ Dioxin*
NOx Total
Boiler MACT
$ 1.6B($2.4B)
$ 949M($2.9B)
$ 407M($502M)
$ 789M($497M)
NA $3.7B ($6.3B)
CISWI Boilers
$496M($140M)
$484M($160M
)
$79M($40M)
$113M($20M)
$131M($80M)
$1.3B($440M
)Add GACT Boilers burning NHSM to CISWI $1.3B
Add WP dryers burning NHSM to CISWI $663M
Total Boiler Rules Cost for Forest Products $7B
Jobs Impacts for Paper Mills
Fisher International Study
mill by mill assessment using URS cost estimates for Boiler MACT and other air rules where mill costs assigned
~20,000 direct jobs at risk at mills (Boiler MACT only)
~85,000 total jobs in communities and in value chain
Rural communities especially hard hit
7
Boiler MACT: UnachievableUnachievable biomass limits for Carbon Monoxide
Problem: Many biomass boilers cannot consistently meet CO limit
Solution: set feasible short term limits and alternative longer-term limits that reflect data variability; allow time for boiler testing
Unachievable New Source Limits
Problem: non-gas boilers can’t reliability meet Hg, HCl, and PM; discourages replacement of older boilers/modernization
Solution: test methods can’t measure at these levels so adjust limits
Unachievable limits for Dioxin
Problem: Data is below where methods can accurately measure, results are meaningless at extremely low levels (less than one ounce nationwide); limits are more stringent than any MACT; see table
Solution: Adopt work practice as law allows OR set much higher emission limits (>0.3 ng/dscm)
8
Other Boiler Issues
Health-based alternative for HCl and PM-TSM - off table at EPA
Source-based vs. HAP by HAP
Good issue in principle but not very helpful for limits
Energy Audits - Annoyance but livable
Back pedaling from proposal - no third party, no benchmarks, no obligation to implement projects
Monitoring feasibility – PM CEMS
9
NHSM: Major Concerns
Legitimacy criteria – contaminant level must be comparable to “traditional fuel” (clean biomass and fossil fuel)
Many biomass residuals would flunk; construction debris?
Implications:
Comply with CISWI – 3 times more expensive
Landfill material and replace fuel - $660 million/year
Path forward – guidance or modify rule
Greater flexibility in applying legitimacy test – “Benchmark Framework” from July Concept Paper
List of non-waste fuels?
Petition process to qualify as “fuel” 10
Administration appreciating impact of excessive regulation?
Lessens of Ozone NAAQS deferral – jobs and costs
Boiler-CISWI
Meetings to press top issues – details unclear until 10/31 NPRM
OMB outreach
AF&PA and AWC conducting CO testing – $100Ks, time limited
NHSM – press for regulatory solution
Prepare for comments – broaden list of non-waste fuels
Devil in the details – legal scrutiny
Executive Branch Strategy
11
Bipartisan and bicameral is key
HR 2250 (“EPA Regulatory Relief Act of 2011”) introduced 6/21 – expected to pass week of 10/10; White House veto threat
S. 1392 introduced on July 17 – very similar to House; 32 cosponsors; get more co-sponsors
Key provisions
Timing: Legislative stay, 15 months to revise; 5 years to comply
Boiler directives – achievable, source-based/real world boiler
NHSM directives – list of materials or discard approach
Legislative Branch Strategy
12
Boiler-CISWI
Court holding in abeyance while reconsideration is ongoing
Sierra Club challenging stay in District Court – same Judge that rejected EPA extension request asserting jurisdiction; decision very soon
NHSM
Briefing schedule not set but case proceeding slowly
If EPA modifies rule then hold in abeyance?
Judicial Branch Strategy
13
Boiler MACT Legislation Trade Group Supporters (79)
American Architectural Manufacturers Association
American Chemistry Council
American Coatings Association
American Coke & Coal Chemicals Institute
American Composites Manufacturers Association
American Fiber Manufacturers Association
American Forest & Paper Association
American Foundry Society
American Frozen Food Institute
American Home Furnishings Alliance
American Loggers Council
American Municipal Power
American Petroleum Institute
American Sugar Cane League
American Wood Council
APA - The Engineered Wood Association
Association of American Railroads
Association of Independent Corrugated Converters
Beet Sugar
Development Foundation
Biomass Power Association
Brick Industry Association
Business Roundtable
Cement Kiln Recycling Coalition
Composite Panel Association
Construction Materials Recycling Association
Corn Refiners Association
Council of Industrial Boiler Owners
Creosote Council
14
Forest Landowners Association
Forest Resources Association Inc.
Forging Industry Association
Hardwood Federation
Hardwood Manufacturers Association
Hardwood Plywood and Veneer Association
Industrial Energy Consumers of America
Industrial Fasteners Institute
Industrial Minerals Association - North America
Kitchen Cabinet Manufacturers Association
Maple Flooring Manufacturers Association
Metal Treating Institute
Metals Service Center Institute
Motor & Equipment Manufacturers Association
National Association for Surface Finishing
National Association of Manufacturers
National Association of Trailer Manufacturers
National Concrete
Masonry Association
National Council of Farmer Cooperatives
National Council of Textile Organizations
National Federation of Independent Business
National Lumber and Building Material Dealers Association
National Oilseed Processors Association
National Solid Wastes Management Association
National Spinning Company
NORA, National Oil Recyclers Association
15
Boiler MACT Trade Group Supporters (Cont’d)
North American Die Casting Association
North American Wholesale Lumber Association
Partnership for Affordable Clean Energy
Pellet Fuels Institute
Pile Driving Contractors Association
Portland Cement Association
Precision Machined Products Association
Railway Tie Association
Rubber Manufactures Association
Society of Chemical Manufacturers and Affiliates
Southeastern Lumber Manufacturers Association
Southern Forest Products Association
Southern Pressure Treaters' Association
Steel Manufacturers Association
Textile Rental Services Association
The Association for Hose & Accessories Distribution (NAHAD)
The Carpet and Rug Inst.
The International Association of Machinists and Aerospace Workers
The United Brotherhood of Carpenters and Joiners of America
Treated Wood Council
U.S. Beet Sugar Association
U.S. Chamber of Commerce
USA Rice Federation
Window and Door Manufacturers Association
Wood Machinery Manufacturers of America
16
Boiler MACT Trade Group Supporters (Cont’d)
Wrap-up
Tens of billions of dollars will translate into tens and probably hundreds of thousands of jobs – labor unions engaged
No other country is forcing these controls on such a wide swath of industries – harm competitiveness
Pushes energy policy towards natural gas which will drive up prices for everyone
Alternative rule could reduce costs and maintain benefits
17
Questions
Tim Hunt
AF&PA and American Wood Council
18
More Time is Critical for Testing
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
CO
pp
m
Day/Time
Biomass Boiler CO - 30 Day Data vs. 3-run Test Data
CO (ppm@3%O2) 30-day avg CO 3-run test CO
0.001
0.01
0.1
1
10
100
1000 Comparison of Dioxin Emission Limits in Various U.S. Regulations
Dio
xin L
imit
, ng/d
scm
@ 7
% O
2
Category 2000 Emissions, g/yr TEQBackyard barrel burning 498.5HMIWI 378MWI 83.8Coal Utility Boilers69.5Metal Smelting/Refining 43.92011 Boiler MACT data37.2Cement kilns 36Residential wood/oil comb.15.8SSI 9.6EDC/VC/PVC mfg 5.5HazWaste Incinerators 3.2
0.3 ng/dscm D/F TEQ quantitation limit
21
0 20 40 60 80 100
1
Concentration in Relative Units
Method Sensitivity Decision Points
LQLDLC
Cannot differentiatefrom background
LC
LD
LQ
Critical Level
Limit of Detection
Limit of Quantitation
Can differentiatefrom background. Low confidence in detection.
Analyte is detectable.Low confidence in quantity.
The analyte is quantifiable with aknown level of precision and bias
Analyte Concentration
Test Method Sensitivity and Achievable Limits
(All dioxin detections are here -- below the level of confidence that the number is accurate)
