Outline

1. Life with a Case-by-Case Boiler MACT StandardMCIC Air Quality Workshops:Hickory – March 27, 2012Raleigh – March 29, 2012Presented by: Fern Paterson, P.E.

2. Outline • A Few Basics • What Should You Do Before Your Compliance Date? • When Do You Have to Comply with the US EPA Boiler MACT?

3. What is a Case-by-Case Boiler MACT? • A facility-specific… • Maximum achievable control technology (MACT) standard… • For hazardous air pollutants (HAP)… • Established by the state permitting authority… • Through a permitting action… • If the US EPA fails to promulgate a MACT standard in a timely manner.

4. NC DAQ’s Implementation • Per NC DOJ, the D.C. Circuit Court’s vacatur of the original Boiler MACT (promulgated in 2004) amounted to a failure to promulgate. • Before the effective date of the new Boiler MACT (5/21/2011), the NC DAQ established Case-by-Case MACT standards for existing boilers in the Title V permits of 98 facilities. • These facilities must comply with the Case-by-Case MACT in their permit, and need not comply with the EPA’s Boiler MACT until some “switch-over” date that will be established in the Title V permit upon renewal.

5. Terminology • Standard Established by NC DAQ • 112(j) Standard; or, • Case-by-Case MACT; or, • MACT Hammer. • Standard Established by US EPA • 112(d) Standard; or, • 40 CFR 63, Subpart DDDDD; or, • Federal Boiler MACT; or, • US EPA’s Boiler MACT.

6. What Should You Be Doing Now? • Read Your Permit!! • Will you be able to comply with the emissions limits? • Do your testing, monitoring, recordkeeping requirements make sense? • How Will You Demonstrate Initial Compliance? • Performance Testing or Fuel Analysis? • Fuel analysis available for individual metals (including mercury) and HCl, but not CO.

7. Do You Have a “Hybrid Suspenion Boiler”? • A subcategory of wet wood-fired biomass boilers established by US EPA in the new Boiler MACT. • Defined as “a boiler designed with air distributors to spread the fuel material over the entire width and depth of the boiler combustion zone. The drying and much of the combustion of the fuel takes place in suspension, and the combustion is completed on the grate or floor of the boiler.” • See 40 CFR 63.7575.

8. Do You Have a “Hybrid Suspenion Boiler”?

9. When Must You Comply with the US EPA’s Boiler MACT? • New/reconstructed boilers must comply upon start-up. • New boilers will not affect the existing source Case-by-Case MACT. • Upon request of the facility. • A permitting action will be required to remove the Case-by-Case MACT and include the federal Boiler MACT. • On the “switch over” date, which will be placed in your Title V permit at renewal.

10. The “Switch Over” Date • 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. • “Thus, under 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]

11. The “Switch Over” Date • Language currently being included in affected Title V permit renewals… • The Permittee shall comply with this CAA §112(j) standard until May 22, 2019.  After May 22, 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.”

12. QUESTIONS? Fern Paterson, P.E. NC DAQ, Permits Section Voice: (919) 707-8478 fern.paterson@ncdenr.gov John Evans, J.D. NC DAQ, Permits Section Voice: (919) 707-8474 john.c.evans@ncdenr.gov

13. Vacatur of the MACT Startup, Shutdown, and Malfunction (SSM) Provisions

14. What Happened? • The general provisions in 40 CFR 63, Subpart A used to exempt affected sources from having to comply with the applicable emissions limitations during SSM events provided it: • Maintained a written SSM Plan detailing foreseeable SSM events and response procedures; and, • Minimized emissions during SSM events. • The D.C. Circuit Court vacated the SSM provisions in Sierra Club v. EPA, 551 F.3d 1019 (D.C. Cir. 2008). • The Court held that the Clean Air Act required that some form of standard apply to each affected source continuously and the SSM exemption is illegal.

15. So Now What? • Most individual MACT standards include SSM provisions in the text of the rule. These Subpart-specific provisions were not vacated, and facilities may continue to rely on them for relief during SSM events. • However, “the legality of such source category-specific SSM provisions may now be called into question, and EPA intends to evaluate each of them in light of the court’s decision.” • See guidance letter from Adam Kushner (US EPA) dated July 22, 2009.

16. The Unlucky Thirty-Five • But thirty-five (35) MACT standards only referenced the vacated SSM rules in the general provisions. • Sources affected by these rule MUST comply with the emissions limitations during SSM events.

17. The Unlucky Thirty-Five

18. The Unlucky Thirty-Five

19. A Failure to Promulgate? • US EPA is working on writing or revising the SSM provisions for all MACT standards. • Same limits as during normal operations? • Alternative limits? • Alternative averaging periods? • Work practice standards? • Did US EPA’s failure to promulgate MACT standards for SSM events trigger the Case-by-Case MACT (i.e., 112(j)) provisions? • Should NC DAQ have established 112(j) standards for SSM events in affected sources’ Title V permits?

20. QUESTIONS? Fern Paterson, P.E. NC DAQ, Permits Section Voice: (919) 707-8478 fern.paterson@ncdenr.gov John Evans, J.D. NC DAQ, Permits Section Voice: (919) 707-8474 john.c.evans@ncdenr.gov