NSPS Review Subpart AAA

1. NSPS ReviewSubpart AAA WESTAR Biomass Meeting for States/Locals/Tribes/EPA March 18, 2009

2. Primary Goal for Today • Hear Stakeholders’ • Interests • Concerns • Suggestions • Data?

3. NSPS Program Background • New Source Performance Standards (NSPS) are Federal regulations under section 111 of the Clean Air Act enacted in 1970. • Beginning in 1971, EPA commenced publishing ~75 NSPSs covering over 90 stationary source categories, each of which contributed significantly to air pollution that was reasonably anticipated to endanger public health or welfare. • Each NSPS must be reviewed at least every 8 years* and if appropriate, revised. * Most NSPSs are already past the 8-year review deadline

4. Process for Prioritizing NSPS reviews and Determining NSPS Revisions • Stage I Screening Factors (determines relative priority for all NSPSs) • Magnitude of emissions • Geographic location of affected sources • Number of affected sources • Effect of emissions on public health or welfare • Industry growth potential • General knowledge of advances in control technologies • Need for national rather than state-only regulation • Current litigation (and litigation susceptibility) • Stage II Screening Factors (identifies highest priority NSPSs for review considering the feasibility of controls and available program resources) • Availability/feasibility/performance of mitigation measures • Cost-effectiveness of mitigation measures • Magnitude of emissions • Quantity of emissions reductions

5. Information/Data Required to Prioritize NSPS Reviews and Revisions • Physical characteristics of the affected sources • Emissions and utilization information • Available mitigation measures, their applicability, performance, and cost • Economic information about the companies affected • Applicable non-NSPS standards • Data on permits with tighter emissions limits than the NSPS

6. Wood Stove NSPS History • 1985 EPA started development of the wood stove NSPS • July 1, 1986 Oregon State wood stove certification rule went into effect • February 18, 1987 wood stove NSPS proposed after using a regulatory negotiation process • February 26, 1988 wood stove NSPS promulgated

7. Wood Stove NSPS Review Request • April 29, 2008 WESTAR/NESCAUM joint letter to EPA requesting: • “review and revision of the current residential wood heater/ indoor wood stove NSPS to capture the broader suite of RWD (residential wood heating devices)” • “fireplaces, masonry heaters, pellet stoves, and indoor and outdoor wood boilers, furnaces, and heaters… we urge EPA to develop standards…”

8. EPA Response to Request • June 19, 2008 letters to WESTAR and NESCAUM: • “We… have started a review of the technical information that would be needed to revise the NSPS for residential wood heaters.” • June 24, 2008 Gil Wood conversations with Dan Johnson and Lisa Rector: • Both supported a phased approach with Phase 1 to tighten the NSPS emission limit, add pellet stoves, and close the loopholes. • Both agreed that allowing time for the voluntary programs to work is prudent in order to help establish better BDT (best demonstrated technology) as the technical basis for NSPS for those sources. • July 16, 2008 Greg Green discussion with Bill Becker • July 22, 2008 Gil Wood informal discussions with Dan Johnson, Lisa Rector, and others • November 3, 2008 Dan Johnson offered to host a meeting to discuss the wood stove NSPS review on March 18, 2009 in Reno. Greg Green and Peter Tsirigotis agreed provided that there were separate meetings for regulators and manufacturers to reinforce that the meetings are informative, not negotiations.

9. Most Frequent Requests: • tighten emission level • close “loopholes” • add pellet stoves • add outdoor wood boilers • revise test methods • streamline certification process • improve enforceability • make consumer-friendly

10. Approach/Tasks/Timeline: • Submit FY 09 Budget Request • Develop Contractor Work Plan • Develop Stakeholder List • Contact Key Stakeholders regarding suggestions/needs/data • Conduct initial round of separate meetings with Stakeholders [e.g., States, Locals, Tribes, Labs, Manufacturers] • Assimilate and analyze Stakeholder input …continued on next slide…

11. Approach/Tasks/Timeline continued: • Prepare Draft Review Document & Recommendations • Conduct 2nd round of Stakeholder meetings • Receive and analyze comments • Revise Review Document & Recommendations • Announce availability of Review Document • Submit FY10 budget request for NSPS revision proposal

12. Review performance data: • Combustion technology [not just U.S., but also Canada, Europe, New Zealand, etc.] • Catalysts • Equipment costs/lifetimes/cost-effectiveness • Small business impacts (e.g., Small Business Regulatory Enforcement Fairness Act panel) • Phased standards/ compliance dates?

13. Review test methods • Test methods [EPA, ASTM, Canada, Europe] • Emissions via lab tests vs. field tests, outdoors and indoors • Emissions averaging [burn rate weightings, hot start vs cold start], caps, degradation • Efficiency test methods/ data [develop Energy Star label]

14. Review applicability definitions • Size • Air-fuel ratios • Weight • Exemptions (cook stoves, coal, boilers, furnaces)

15. Pollutants • PM2.5 • Benzo(a)Pyrene? • Dioxin? • CO2, CH4?

16. Health effects • EPA human exposure study [Chapel Hill lab] • Tony Ward indoor exposure study • ORIA indoor air specifications for wood smoke • Environmental justice considerations?

17. Enforcement Perspectives?Needs? Insights? • Streamline certification process--- develop electronic system for submittals and approvals • Improve enforceability --- inspections of labs and manufacturers, random audits, monitor websites and trade show, alert foreign companies • Make consumer-friendly --- website, spreadsheet of current certifications ranked by emissions, tested efficiency, output • NSPS wood stove certification history • Lab accreditation program history • Audit program history • Recordkeeping and Reporting

18. Other devices? • Other Room Heating Devices? • Pellet stoves • Masonry Heaters • Other biomass (corn, switchgrass?) • Low-mass fireplaces,masonry fireplaces? • Other Residential Wood Heating Devices? • Outdoor Hydronic Heaters • Indoor Hydronic Heaters • Furnaces • Cook stoves, pizza ovens, chimineas? • Commercial? Institutional? • Coal?

19. Wood Smoke Potential Timeline? Your Thoughts on Priorities? • Wood Stove NSPS – 1988 • Wood Stove Changeouts – 2004, on-going • OWHH Voluntary Program Phase 1 level –started January 2007; ends March 31, 2010 • Innovative Financing for Changeouts -- 2008, on-going • Wood Stove Energy Star Scoping March 2009; Stakeholder Process for Label FY09 • Wood Stove NSPS Review FY09 • Wood Stove NSPS Revision Proposal – FY10 [tighten emission level, close loopholes, add pellet stoves] • Wood Stove NSPS Revision Promulgation FY11 • OWHH Voluntary Program Phase 2 level –start October 2008 NSPS proposal? • OHH Voluntary Program [biomass hydronic]–start October 2008NSPS proposal? • IHH Voluntary Program [indoor hydronic] – start October 2008 NSPS proposal? • Low-mass Fireplace voluntary program – Phase 1 and Phase 2 concurrently starting March 2009 SIP Guidance August 2009 NSPS proposal? • “Burn Wise” Education Campaign – Fall 2008 in NW and NE, grow in 2009 • Masonry Fireplace Voluntary Program – March 2009? NSPS proposal? • Masonry Heater Voluntary Program – March 2009? NSPS proposal? • EPA human exposure study and MT children’s exposure study – FY08/09 • Wood Smoke SIP Template • IH [hot air furnaces] Voluntary Program – September 2009? NSPS proposal? • Small Commercial & Institutional Wood Boilers – NESCAUM Model Rule Spring 2009 and EPA area source proposed rule July 2009

20. Other suggestions, questions? • Next steps?

21. Contact: Gil Wood wood.gil@epa.gov (919) 541-5272