Presentation for Annual SBEAP Meeting Chicago, IL May 15, 2013

1. Adjustments to the Air Toxics Standards for Area Source Boilers Summary of 2012 Adjustments to Requirements Presentation for Annual SBEAP Meeting Chicago, IL May 15, 2013

2. The Right Standards for the Right BoilersOf 1.5 million boilers located at major source and area source facilities in the U.S., less than 1% will need to meet numerical emission limits <1%(about 2,300) will need to meet numerical emission limits to minimize toxics. Most of these are larger boilers located at industrial facilities. ~197,000 covered by rules 13%(about 197,000) will need to meet work practice requirements, such as periodic tune-ups, to minimize toxics. ~1.3 million boilers not covered by rules 86% are gas-fired boilers located at area source facilities and are not covered by these rules. Many of these boilers are at places like hospitals, schools and churches.

3. Area Source BoilersAbout 183,000 regulated boilers No natural gas boilers are covered by the rule Less than 1% have emission limits Greater than 99% follow work practices Greater than 99%(about 182,400) will need to follow work practice standards to conduct biennial or 5-year tune-ups, to minimize toxics. Some will also need to perform a one-time energy assessment. Less than 1%(about 600 coal-burning boilers) will need to meet numerical emission limits to minimize toxics.

4. Key Adjustments • Adjusted certain deadlines • Revised the deadline for initial notification for existing area source boilers to no later than January 20, 2014 • Extended by two years the compliance date for existing boilers subject to the tune-up requirement such that the compliance date is March 21, 2014 (which is also the compliance date for boilers subject to emission limits and subject to the energy assessment requirement) • Adjusted emission limits • Revised Hg emission limit for new and existing large coal-fired boilers to 2.2 x 10-5 lb/MMBtu of heat • Revised CO emission limit for new and existing large coal-fired boilers to 420 ppm by volume on a dry basis corrected to 3% oxygen

5. Key Adjustments • Added to and refined the list of subcategories • Clarified that certain boilers are not part of the source categories being regulated • Residential boilers - used primarily for heat and/or hot water for dwellings containing up to four families or single unit residences that have been converted or subdivided into apartments or condos • Temporary boilers - used temporarily in place of another boiler while that unit is being replaced or repaired, generally over an operational period of less than 12 months, unless an extension is approved • Electric boilers • Electric utility steam generating units covered by 40 CFR part 63 subpart UUUUU • Revised definition for “Boiler” to clarify that process heaters are not part of the source categories being regulated

6. Key Adjustments • Added to and refined the list of subcategories (cont.) • Revised definition for “Hot water heater” to clarify that the definition includes biomass fuel and small hot water boilers (e.g., not generating steam) rated at lessthan 1.6 million Btu per hour • Added subcategories to which reduced requirements apply • Seasonal boilers • Biomass- or oil-fired boilers that undergo a shutdown of at least 7 consecutive months each 12-month period due to seasonal conditions, except for periodic testing (not to exceed a combined total of 15 days during the shutdown) • Subject to tune-up and energy assessment requirements, as applicable • No numeric emission limits • Limited-use boilers • Solid- or liquid-fired boilers with a federally enforceable average annual capacity factor of no more than 10 percent • Subject to tune-up requirements • No numeric emission limits or one-time energy assessment

7. Key Adjustments • Reduced tune-up frequency for certain boilers • Specify that tune-ups must be conducted while burning the type of fuel that provided the majority of the heat input to the boiler over the 12 months prior to the tune-up • Require tune-ups every 5 years, instead of every 2 years, for: • Seasonally-operated boilers • Limited-use boilers • Oil-fired boilers with heat input capacity of equal to or less than 5 MMBtu/hr • Boilers with oxygen trim systems • System of monitors that are used to maintain an optimum air-to-fuel ratio by setting excess air in the boiler at a desired level • Typical system includes a flue gas oxygen and/or CO monitor that provides a feedback signal to the combustion air controller

8. Key Adjustments • Reduced tune-up frequency for certain boilers (cont.) • Allow inspections of the burner and system controlling the air-to-fuel ratio to be delayed until the next scheduled unit shutdown (not to exceed 36 months and 72 months from the previous inspection, as applicable) • Allow CO measurements taken before and after tune-up adjustments to be taken using a portable CO analyzer • Specify that initial tune-ups are not required for new boilers but applicable biennial or 5-year tune-up must be conducted no later than 25 months or 61 months, respectively, after the initial startup • Specify that if the boiler is not operating on the required date for a tune-up, the tune-up must be conducted within 30 days of startup

9. Key Adjustments • Revised energy assessment provisions • Clarify that the energy assessment is limited to only those energy use systems located on-site associated with the affected boilers • Waive energy assessor approval and qualification requirements in instances where past or amended energy assessments are used • Specify that sources that operate under energy management programs compatible with ISO 50001 that include the affected boilers satisfy the energy assessment requirement • Provided compliance alternative for PM for certain oil-fired boilers • Specify that new oil-fired boilers that combust only low-sulfur oil are considered to be meeting the PM emission standard via an alternative method and are not subject to the PM emission limit (same provision as is in 40 CFR part 60 subpart Dc)

10. Key Adjustments • Reduced fuel sampling requirements • Specify that if, when demonstrating initial compliance with the Hg emission limit, the Hg constituents in the fuel or fuel mixture are measured to be equal to or less than half of the Hg emission limit, the owner or operator of that coal-fired boiler does not need to conduct further fuel analysis sampling • If the Hg constituents are greater than half of the emission limit, quarterly fuel sampling must be conducted • Reduced performance testing requirements • Specify that if, when demonstrating initial compliance with the PM emission limit, the performance test results show that the PM emissions are equal to or less than half of the PM emission limit, the owner or operator of that boiler does not need to conduct further PM emissions testing • If the PM emissions are greater than half of the emission limit, triennial performance stack testing must be conducted

11. Key Adjustments • Provided continuous compliance alternative for CO emission limit • Allow CO CEMS as compliance alternative to performance stack testing and monitoring oxygen content • Revised the averaging period for continuous parameter monitoring to a 30-day rolling average • Revised provisions for dual-fuel fired boilers • Specify that existing dual-fuel fired boilers (i.e., commenced construction or reconstruction on or before June 4, 2010) that fuel switch from gas to coal, biomass or oil after June 4, 2010 will still be considered existing sources as long as the boiler was designed to accommodate the alternate fuel • New dual-fuel fired boilers that make such a fuel switch will continue to be considered new sources

12. Key Adjustments • Revised certain notification requirements • Deadline for initial notification for existing area source boilers is now January 20, 2014 • Resubmittal of initial notification is not required if previous notification was provided, unless there has been a change in applicability • Notification of compliance status must be submitted electronically using the Compliance and Emissions Data Reporting Interface (CEDRI) on EPA’s Central Data Exchange (CDX) (www.epa.gov/cdx). • If you already submitted your Notification of Compliance Status (e.g., you already conducted your initial tune-up), you do not need to resubmit the notification. • Paper submittal of the Notification of Compliance Status will be accepted up to the time that the CEDRI form is available.

13. Key Adjustments • Revised certain notification requirements (cont.) • Specify that sources must provide notice within 30 days of the change if you have switched fuels or made a physical change to the boiler and the fuel switch or change resulted in: • the applicability of a different subcategory within subpart JJJJJJ • the boiler becoming subject to subpart JJJJJJ, or • the boiler switching out of subpart JJJJJJ due to a change to 100 percent natural gas

14. Key Adjustments • Revised certain reporting requirements • A copy of the energy assessment report must be maintained • Records of monthly fuel use by each boiler subject to an emission limit, including the type(s) of fuel and amount(s) used, must be maintained • For seasonal boilers, records of days of operation per year must be maintained • For limited-use boilers, a copy of the federally enforceable permit and records of fuel use for the days the boiler is operating must be maintained • For boilers that only conduct a biennial or 5-year tune-up and are not subject to emission or operating limits, only a biennial or 5-year Compliance Certification Report must be prepared • Reports should be prepared by March 1 of the year after the calendar year during which a tune-up is completed • Report does not have to be submitted.

15. Key Adjustments • Boiler Compliance Tools • http://www.epa.gov/boilercompliance/ includes information for Area Source Boilers: • Fact sheets • Summary brochure • Small entity compliance guide • Tune-up guide for owners and operators • Tune-up guide for technicians • Summary of energy assessment requirements • Example initial notification form • Example notification of compliance status forms • Example tune-up record and compliance certification • Electronic reporting information • Compliance assistance contacts

16. Key Adjustments • Boiler Compliance Tools (cont.) • http://www.epa.gov/ttn/atw/boiler/boilerpg.htmlincludes information on Area Source Boilers as well as Major Source Boilers: • Federal Register notices • Fact sheets • Technical support documents • Response to Comments documents • Implementation tools • DOE webpage on energy assessmenthttp://www1.eere.energy.gov/manufacturing/tech_deployment/energy_assessment.html

17. For More Information Contact: • Rule Content: Mary Johnson • 919-541-5025; johnson.mary@epa.gov • Applicability Determinations: Sara Ayres • 202-564-5391; ayres,sara@epa.gov

18. Appendix

19. Emission Limits for Area Source Boilers New and existing small (<10 MMBtu/h) coal-fired boilers, new and existing biomass-fired boilers, and new and existing oil-fired boilers are subject to a biennial tune-up requirement. New and existing seasonal boilers, limited-use boilers, oil-fired boilers with heat input capacity ≤ 5 MMBtu/h, and boilers with an oxygen trim system are subject to a 5-year tune-up requirement. Existing coal-fired, biomass-fired, or oil-fired boilers with heat input capacity ≥ 10 MMBtu/h (not including limited-use boilers) are subject to a one-time energy assessment requirement.