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MDEQ-AQD Air Toxics Rules Overview and Regulatory Reinvention. July 31, 2013 Robert Sills, MDEQ Air Quality Division (AQD) Toxics Unit Supervisor. Presentation Outline. Overview of the AQD’s Air Toxics Rules

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MDEQ-AQD Air Toxics Rules Overview and Regulatory Reinvention

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    1. MDEQ-AQD Air Toxics Rules Overview andRegulatory Reinvention July 31, 2013 Robert Sills, MDEQ Air Quality Division (AQD) Toxics Unit Supervisor

    2. Presentation Outline • Overview of the AQD’s Air Toxics Rules • Office of Regulatory Reinvention’s Environmental Advisory Rules Committee (ARC): nine recommendations for the air toxics program • AQD’s Air Toxics Workgroup (ATW) • Q & A • Discussion

    3. 1. Air Toxics Rules Overview OUTLINE: • Overview of State and Federal programs • NREPA and Key Definitions • Permit To Install (PTI) New Source Review (NSR) • Permit Exemptions • Air Toxics Rules: R224-232 • Rule 225: Health-Based Screening Levels (SLs) • Demonstrating Compliance with the SLs

    4. Michigan’s Program (Rules 224 – 232) • Applies to new or modified processes • Control Technology Requirement • R225 Health Risk Assessment - Screening Levels • Screening Levels (SLs) apply to all areas with public access (ambient air) • SLs are chemical-specific air concentrations (ug/m3) that are health protective for inhalation, for the population including sensitive subgroups. • SLs are developed by toxicologists based upon the methodology in the AQD’s rules. • Specific exemptions include federally regulated sources of emissions of 187 Hazardous Air Pollutants (“HAPs”) that have had an EPA risk assessment and control technology review

    5. Federal Program (Section 112 of Clean Air Act) • Applies to new and existing sources • List of 187 Hazardous Air Pollutants (HAPs) • Technology Requirements • 170 specific standards developed since 1990 • Case-by-Case Technology Determination for sources of HAPs greater than 10 TPY of a HAP or 25 TPY total HAPs • Health Risk Assessments • 32 source category Assessment Reviews for HAPs completed since 1990 • Remainder of categories not yet completed • Ample Margin of Safety determination

    6. What are Air Toxics? State program: • Toxic air contaminants (TACs) are defined as any substance which may be harmful at some concentration and duration, excluding 41 substances which either have national air quality standards (ozone, lead, SO2, NO2, PM, CO) or which are relatively nontoxic. • (Air Pollution Control Rules, Part 55 of NREPA; Rule 336.1120(f)) • AQD has set health-based screening levels for approx. 1200 TACs. Federal program: EPA CAAA of 1990 identifies 187 HAPs (chemicals or chemical groups)

    7. What are some of the 1200 TACs that are not EPA HAPs? Ammonia Sulfuric acid Copper Propyl bromide Gasoline 2-chloro-1,3-butadiene Methyl mercaptan

    8. Complimentary Programs Federal Program Michigan Program Federal Technology Standard, Federal Health Assessment Done Tech Std Health Std for HAPS Health Std for Non HAPS Federal Technology Standard, No Health Assessment Tech Std Health Std for all TACs No Federal Technology Standard, No Federal Health Assessment Tech Std Health Std for All TACs

    9. Air Toxics Rules: R224-232, cont’d R228: Requirement for lower emission rate than required by T-BACT and SLs • On a case-by-case basis, the department may determine a lower maximum allowable emission rate in order to ensure adequate protection of human health or the environment, considering all relevant scientific information, such as atmospheric deposition, indirect routes of exposure, or additive effects. • This authority has been used to request some applicants to include deposition modeling or multipathway risk assessment information in their applications, and for staff to perform further evaluations for the public and the decision-maker. ARC RECOMMENDATION: RESCIND R228

    10. SL List:- includes ITSLs, IRSLs, and SRSLs- Some chemicals have primary and secondary ITSLs (with different averaging times)- Footnotes appear at end of the SL list

    11. Benchmarking State Air Toxics Programs • 29 States, including Michigan, have developed and implemented state air toxics requirements in their air permitting programs. (21 have not, including IN and IL in EPA R5) • State programs evaluate and regulate air toxics emissions and dispersion in their permit reviews, based on public health exposure concerns. These programs are intended to provide some assurance of public health protection by ensuring that air concentrations are kept at safe levels. • State program details vary widely. • ARC: be consistent with nearby states

    12. Permitting Questions From the Public • Is it safe for my children? • Would you live here? From the Companies • What are the limits we must meet? • Will you support our project? Both groups want certainty and assurance.

    13. Air Toxics Rules Defense Since 1992 • Periodic criticism of the rules by the regulated community: exceeds EPA regulations; chilling effect on business, jobs, economy; unlevel playing field with other nearby States • HB 4326 of 2011: “No Stricter Than Federal” environmental regulation bill; Vetoed by Gov. Snyder: pursue “regulatory reinvention” • The Governor established the Office of Regulatory Reinvention (ORR) in 2011

    14. ORR Environmental Advisory Rules Committee (ARC) • 13 members • James Clift (MEC) was the environmental group representative

    15. ORR Environmental ARC (2011) Air Quality Subcommittee: Air Toxics Rules recommendations (paraphrased): Rescind part of R224 (regarding a redundant control requirement) Exempt from R225 small changes in TAC emissions (with <10% increase in Hazard Index) Exempt from R225 sources that are subject to EPA control technology standards Exempt from R225 “clean fuels” Exempt from R225 “pollution control projects” Limit R225 to the EPA HAPs list (n=187) Make R225 screening levels consistent with nearby states R225 should not be used to require stack tests as emissions research Rescind R228 (regarding risk assessment beyond single-chemical human health inhalation assessment)

    16. AQD established the Air Toxics Workgroup (ATW) to address the ARC air toxics recommendations 10 ATW members • 6 from industry and consulting • 2 from environmental groups • 1 from academia • 1 from State health dept. (MDCH) Began meetings on 12/3/12

    17. ATW Charge: “The Air Toxics Workgroup (ATW) of the Air Quality Division (AQD) will provide meaningful input to the AQD in addressing ORR Recommendation A-1 and other air toxics rule issues as identified by the ATW and AQD members. The ATW will help ensure that the rules are updated, streamlined, protective of public health and not excessively burdensome. By August 1, 2013, the ATW shall have recommendations to the AQD.” (emphasis added)

    18. DEQ’s initial thoughts for addressing the issues: • Pursue solutions that are less burdensome, with regulatory certainty • Retain a regulatory structure for public health protection • Scientifically defensible rationale; transparent approach • Strive to develop an ATW “consensus” • The solutions should be durable (lasting)

    19. Status of ATW review

    20. Status of ATW review

    21. Proposed TAC List Methodology Drafted Goal statement: “The TAC list includes the federal HAPs list and other air toxics that may be reasonably anticipated to occur in NSR permitted air emissions, and which warrant the evaluation of ambient air impacts in PTI applications in order to help ensure public health and environmental protection while promoting regulatory certainty and efficiency.”

    22. Proposed TAC List Methodology “Guiding concepts”: • List should focus on the more relevant substances • List should be less burdensome, and provide greater certainty • DEQ should have a defined mechanism(s) to add to and delete from the list • Applicant should still identify non-TACs in proposed emissions (Rule 203(1)(c)) • DEQ should retain the authority to act to protect public health (case-specific) from emissions of non-TACs

    23. Approach Options Considered Adopt a list developed by another state / states Develop a “list of lists” (e.g., TLVs, TRI, 112(r)) List chemicals meeting specific criteria (e.g., based on hazard, potency, bioaccumulation) Develop a list based on the HAPs and the current list of TACs with SLs (n~1200), with exclusion criteria Option 4 seemed to best meet the Goal and Guiding Principles. The subsequent approach drafted was driven by the Goal and Guiding Concepts, NOT by a target “number of TACs”.

    24. Draft TAC List Decision Points Draft Decision Points: • Include all TACs regulated by AQD as carcinogens • Exclude all current TACs with ITSLs based on the “default” value of 0.1 ug/m3. • Include noncarcinogens with ITSLs, except those with relatively low potency (ITSLs above the 75th percentile of the ITSL distribution, by averaging time) • Only include the EPA HAPs if they have a SL meeting criteria #1 or #3 (or, if they have appeared in AQD’s New Source Review but lack a SL). The Result: approximately 750 specific TACs reasonably anticipated to be emitted in MI, that are carcinogens, or with noncarcinogenic toxicity within the 75th percentile.

    25. TAC List Certainty and Flexibility The proposed defined TAC list would provide much greater certainty, and be less burdensome, than the current system. The ATW has discussed that AQD should solicit public comment on the proposed approach, including: The proposed list, with some basic info on the basis for each listing Availability of AQD’s detailed SL Justification documents A process for adding/deleting from the list (via rulemaking; SLOW backstop) Ability for AQD to address case-by-case public health threats from non-TACs in a permit application (“fast backstop”)

    26. For More Information: Draft ATW Discussion Paper on TAC List Issue (5/13/13) and other Issues Potential List of TACs (5/13/13) …and much more: - select Air Toxics - select Air Toxics Workgroup

    27. Questions or Comments? Robert Sills, Toxics Unit Supervisor, MDEQ-AQD 517-335-6973