1 Region 5 Enforcement Approach George Czerniak June 13, 2007 NACAA Enforcement and Compliance Workshop

2 TARGETED INVESTIGATIONS Don’t Try for Broad Coverage Don’t Affirm Compliance High Likelihood of Violation Where Correction Will Result in Significant Emission Reduction Focus on Company, Sector, Rule

3 CASE DISTRIBUTION

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6 ENVIRONMENTAL BENEFIT FROM FY 2006 CAA SETTLEMENTS Primary Environmental Benefit –Emission Reductions (142,942,912 lbs/yr) 98,828,033 lbs/yr Sulfur Dioxide 13,628,951 lbs/yr Nitrogen Oxides 10,468,625 lbs/yr Volatile Organic Compounds 9,574,790 lbs/yr Carbon Monoxide 6,946,758 lbs/yr Carbon Dioxide 2,326,870 lbs/yr PM 10 /Particulate Matter 1,158,218 lbs/yr Hazardous Air Pollutants 8,588 lbs/yr Chlorofluorocarbons 2,079 lbs/yr Lead –Federal Penalties Assessed - $4,512,447

7 PORTION OF ENVIRONMENTAL BENEFIT IN SUPPLEMENTAL ENVIRONMENTAL PROJECTS –SEP Emission Reductions (11,667,767 lbs/yr) 6,946,758 lbs/yr Carbon Dioxide 4,071,210 lbs/yr Carbon Monoxide 240,033 lbs/yr Sulfur Dioxide 233,398 lbs/yr Hazardous Air Pollutants 130,748 lbs/yr PM 10 /Particulate Matter 26,951 lbs/yr Nitrogen Oxides 15,425 lbs/yr Volatile Organic Compounds 2,079 lbs/yr Lead 1,165 lbs/yr Chlorofluorocarbons

8 TARGETING APPROACH Theory of Violation Develop Expertise Work Through Company, Sector, Rule

9 TARGETING EXAMPLES

10 ACID PRODUCTION THEORY: NSR

11 ACID PRODUCTION PLANT DIAGRAM

12 ACID PRODUCTION Remedy –Sulfuric Acid Plants Wet Gas Scrubber Double Contact Double Absorption System Capable of Meeting an Emissions Limit of 1.5 lbs/ton Mist Elimination System Capable of Meeting Sulfuric Acid Mist Emission Rates of 0.15 lbs/ton or less

13 ACID PRODUCTION Remedy (cont.) –Nitric Acid Plants Selective Catalytic Reduction (SCR) Non-Selective Catalytic Reduction (NSCR), and/or Extended Absorption System Capable of Meeting NOx Emission Limits in the Range of 0.3 to 0.6 lbs/ton

14 ACID PRODUCTION Potential Environmental Results –120,000 TPY of SO 2 –30,000 TPY of NOx Current Status –Two (2) Settlements 6 Sulfuric Acid Plants 1 Nitric Acid Plant –Reductions: 19,000 TPY SO TPY NOx Sulfuric Acid Mist Reductions –Settlement discussions continue with others

15 PETROLEUM COKE THEORY: NSR

16 PETROLEUM COKE Affected Sectors –Cement –Iron and Steel –Coal Fired Boilers –Calcining Remedy –SO 2 (Scrubbers) –NOx (SCR and SNCR) Controls Potential National Environmental Results –160,000 TPY SO 2 and NOx Reductions Current Status –One Global Negotiation in Progress, One On-going Case, Two Investigations

17 FLARING THEORY: LESS SCRUTINY FOCUS ON OPACITY

18 FLARING Proper Operation –Pilot flame must be present –Sufficiently low exit velocity –Smokeless operation Steam or air commensurate with organics –Heat Content > (300 BTU/scf)

19 FLARING Regulations –MACT General provisions 63.11(b) Polymers & Resins, HON, Pharmaceuticals, Refineries, etc. –NSPS General Provisions 60.18(b) SOCMI, Polymers, Refineries, etc. –SIP State VOC reduction requirements State permit requirements (e.g. 300 BTU)

20 FLARING Violations –Heat Content lower than 300 BTU/scf (63.11(b), 60.18(b)) –Failure to use good air pollution control practices by steam addition in excess of design parameters (63.6(e), 60.11(d)) Specified by API and Flare Manufacturer Typically near 1 lb steam/1 lb gas –Destruction Efficiency Specified in SIP (95%)

21 FLARING Remedy –Heat Content (BTU/scf) Instrument –Steam Addition Control Valve –Natural Gas Addition Control Valve –PLC So Heat Content Dictates Steam and Natural Gas Addition Rates Potential Environmental Benefits –Increase In Destruction Efficiency at the Flare –Less VOC and HAPs Emissions

22 FLARING Current Status –Batch Chemical Plant in SW Ohio 300 BTU/scf and oversteaming violations NOV issued > 560 TPY excess emissions –Batch Chemical Plant in NW Ohio 300 BTU/scf and oversteaming violations NOV issued ~ 12 TPY excess emissions –Batch Chemical Plant in SE Ohio $675,000 instrument upgrade for two flares in response to an information request < 5 TPY excess emissions

23 CEM THEORY: WRONG PERCEPTIONS

24 CEM

25 CEM

26 CEM

27 CEM

28 CEM Remedy –Continuous compliance –Fixing causes of excess emissions/CEMS downtime so they don't happen again –Injunctive relief (redesigned/new control technology to replace old/underdesigned controls) –SEPS Current Status –Seven Notices/Findings of Violation –~ 100 Facilities Being Reviewed

29 QUESTIONS