1. Portland Cement NESHAPs & NSPS, and Related Solid Waste Combustion Rules David L. Jones Eastern Kern APCD November 4, 2011 California Desert Air Working Group

2. NESHAPs/MACT/NSPS National emission standards for hazardous air pollutants (HAPS) are called NESHAPs and are found in 40 CFR Part 61 and 40 CFR 63. Maximum achievable control technology (MACT) for a source category in a NESHAPs is the maximum degree of emission reduction EPA determines to be achievable for that category’s sources. New source performance standards (NSPS) are the emission standards EPA determines are achievable by new units in a source category and are found in 40 CFR Part 60. Major source of air toxics emits 10 tons/year or more or a single HAP or 25 tons/year of a combination of HAPS. 2

3. Rules Affecting Cement Kilns All cement facilities are subject to the existing Portland Cement NESHAP (40 CFR 63 subpart LLL) and NSPS (40 CFR 60 subpart F) and revision published Sept. 9, 2010. Cement kilns that burn hazardous waste are subject to the Hazardous Waste Combustor NESHAP (40 CFR 63 subpart EEE). Cement kilns that burn non-hazardous solid wastes as defined in the solid waste definition rule will be subject to the Commercial and Industrial Solid Waste Incinerator Units (CISWI) rule (40 CFR 60 subparts CCCC and DDDD), published Feb. 21, 2011. 3

4. Regulatory History of 40 CFR 63 subpart LLL (NESHAPs) and 40 CFR 60 subpart F (NSPS) NSPS for Portland Cement promulgated. PM emissions limits only (1971). MACT standards for Portland Cement Manufacturing. Regulated emissions for PM for major sources and Dioxins for all sources and total hydrocarbons (THC) for greenfield sources (1999). Court remanded parts of the MACT standards for Portland Cement. EPA was ordered to set standards for hydrochloric acid (HCl), mercury (Hg), and THC (2000). Final Rule implementing PCA/EPA settlement (2002). 4

5. Cement NESHAPs/NSPS History (Cont.) In response to Court’s remand, numerical emission limits for Hg and THC for new sources only. Judicial review petitions and administrative petitions were also filed and EPA agreed to reconsider the final rule (2006). Proposed NSPS amendments lowered the PM limit and added limits for SO 2 and NOx (June 2008). Proposed MACT emissions limits for HCL, Hg, THC and PM for all sources (May 2009). Revised MACT and NSPS promulgated on September 9, 2010, and effective November 8, 2010. Reconsideration petitions for some parts of 2010 action granted, other parts to proceed (May 17, 2011) 5

6. EPA’s Projections of Affected Cement Kilns 181 Portland cement kilns at 100 facilities in 2013. Amended air toxics requirements will apply to 158 of those kilns. Remaining kilns are subject to a separate regulation, for kilns that burn hazardous waste. Seven kilns will be subject to the new source performance standards. 6

7. 2010 Final Cement Rules Set MACT limits for HG, THC and PM for kilns that are major or area sources; and HCL for existing cement kilns that are not considered hazardous waste kilns. Significantly reduced the PM emissions limit for new and existing cement kilns. Regulated open clinker piles. Set separate emissions limits for kiln startup/shutdown. Added emissions limits for NOx and SO 2 to the NSPS. Required continuous monitoring for compliance. Added an affirmative defense requirement for malfunctions. Existing kilns to comply with new limits within three years (Nov. 9, 2013), new kilns must comply at startup. 7

8. Kiln MACT Limits in Rules Kiln MACT Limits Existing Source KilnsNew Source Kilns Mercury 55 pounds per million tons of clinker, avg’d over 30 days 21 pounds per million tons of clinker, avg.’d over 30 days Total Hydrocarbons24 ppmv, avg’d over 30 days Particulate Matter (toxic metals surrogate) 0.04 pounds per ton of clinker, avg.d over 30 days 0.01 pounds per ton of clinker, avg’d over 30 days Hydrochloric acid (major sources only) 3 ppmv, avg’d over 30 days Organic HAP (Alternative to THC limit) 9 ppmv*9 ppmvd* *Organic HAP based on emission tests of benzene, toluene, styrene, xylene, formaldehyde, and naphthalene to develop a site specific THC limit. 8

9. Cement NSPS Emissions Limits PollutantEmission Limits NOx1.5 lb/ton clinker, averaged over 30 days SO2 0.4 lb/ton clinker, averaged over 30 days Particulate Matter 0.01 pounds per ton of clinker, averaged over 30 days 9 EPA is requiring continuous emissions monitoring each of the three pollutants covered under this rule.

10. EPA Projected Control Technologies Mercury – Limestone wet scrubber – Activated carbon injection * – Diversion of some material collected in the main PMCD directly to the finish mill THC – Activated carbon injection * – Regenerative thermal oxidizer (may require a wet scrubber upstream for acid gas removal) * Includes a second fabric filter for carbon capture 10

11. EPA Projected Control Tech. (Con’t) PM* – Addition of membrane bags – Replacement of ESPs with fabric filters HCl and SO2 – Limestone wet scrubber – Lime Injection NOx – Selective non-catalytic reduction – Selective catalytic reduction * If a source installs an ACI system to control mercury, which would include a new fabric filter to capture the carbon, changes to the existing PMCD may not be necessary to meet the new PM limit. 11

12. EPA Projected Control Technologies Control Type Pollutants Controlled Maximum estimated control efficiency (percent) Number of projected installations c Lime injection HCl702 Limestone wet scrubber Mercury HCl Mercury –80 HCl –99.9 59-117 Activated Carbon Injection a Mercury THC/Organic HAP Mercury –90 Organic HAP -80 71-153 Regenerative Thermal Oxidizer b THC9810-21 Membrane Bags added to existing Filter PM>99.96-28 Fabric Filter PM>99.90-2 Selective NonCatalytic Reduction NOx50-607 aI ncludes a second fabric filter for carbon capture b May require a wet scrubber upstream for acid gas removal. c Based on an estimated population of about 153 kilns. Many kilns may require multiple controls. 12

13. EPA’s Estimated 2013 Emission Reductions Mercury: 16,600 pounds, a 92 percent reduction from projected 2013 emission levels Total hydrocarbons: 10,600 tons, a reduction of 83 percent; Particulate matter: 11,500 tons, a 92 percent reduction; Acid gases (measured as hydrochloric acid): 5,800 tons, a 97 percent reduction; Sulfur dioxide (SO2): 110,000 tons, a 78 percent reduction; and Nitrogen oxides (NOx): 6,600 tons, a reduction of 5 percent. 13

14. Open Clinker Storage in Rule Active clinker storage piles over 1000 feet from facility boundary are required to be: – Enclosed with a three sided barrier and roof; – Open side covered with a wind fence; and – Clinker covered at all times except as necessary for loading and unloading. Inactive clinker storage piles over 1000 feet from facility boundary may be covered with a tarp. Clinker storage piles 1000 feet or less from facility boundary must be enclosed in a building. EPA has granted reconsideration on clinker storage. 14

15. EPA Will Reconsider Some Other Issues in Cement MACT (May 17, 2011) Affirmative defense to civil penalties for exceedances occurring during malfunctions; Continuously monitored parameters for alternative THC standard; HCl limit of zero during startup for sources that do not have a CEM; Allowing sources with caustic scrubbers to comply with HCL standard during performance tests; Alternative PM Limit for sources with comingled gas streams; NSPS limit for PM for modified sources; and Monitoring for Mercury and PM during periods of startup and shutdown. 15

16. Issues EPA Denied Reconsideration Relationship between Portand Cement, Solid Waste Definition and the CISWI rules within the Cement Rule, but a separate reconsideration process for those other rules is addressing some of the issued raised; Standards during periods of startup and shutdown; Standards for Particulate Matter; Monovents (vents on top of control device instead of stack); and Emissions from crushers. 16

17. SOLID WASTE INCINERATION RULES There are two other recent regulations promulgated on Feb. 21, 2011 and effective May 20 2011 that can affect cement facilities. New Source Performance Standards for Commercial and Industrial Solid Waste Incineration (CISWI) Units (40 CFR Part 60, Subpart CCCC), and Emission Guidelines for Existing CISWI Units (40 CFR Part 60, Subpart DDDD). Identification of Non-hazardous Secondary Materials that are Solid Wastes Rule that was promulgated with CISWI. 17

18. CISWI APPLICABILITY Regulates emissions of nine pollutants from new and existing commercial and industrial solid waste incineration units. CISWI is any combustion unit at a commercial or industrial facility that combusts or has in the last 6 months combusted solid waste (including any non- hazardous secondary material). CISWIs regulated under the final rule are subcategorized as follows: – Incinerators – Small remote incinerators – Energy recovery units (the boiler that isn’t) – Waste burning kilns 18

19. Waste Burning Kilns A waste burning kiln, including any associated preheater or precalciner devices, is a kiln that is heated, in whole or in part, by combusting solid waste. Kilns that burn solid waste would be subject to requirements under CAA section 129 instead of CAA Section 112 Traditional fuels, including historically managed traditional fuels (e.g. coal, oil, natural gas) and “alternative” traditional fuels (e.g. clean cellulosic biomass) are not secondary materials and thus are not solid wastes. Many alternative fuels under consideration for use in kilns would be considered solid waste under these rules. 19

20. Identification of Non-hazardous Secondary Materials That Are Not Solid Wastes In general, non-hazardous secondary materials (NHSM) burned in combustion units are identified as solid wastes unless the material: is used as a fuel and remains within the control of the generator and it meets the legitimacy criteria; is used as an ingredient in a manufacturing process (whether by the generator or outside the control of the generator) that meets the legitimacy criteria; or has been sufficiently processed to produce a fuel or ingredient that meets the legitimacy criteria. 20

21. Non-hazardous Secondary Materials That Are Not Solid Wastes (Cont.) Scrap tires removed from vehicles and managed under an established tire collection program and resinated wood residuals that have not been discarded in the first instance and meet the legitimacy criteria when used as a fuel (by the generator or outside the control of the generator); or Through a case-by-case petition process, it has been determined that material handled outside the control of the generator has not been discarded and is indistinguishable in all relevant aspects from a fuel product. 21

22. CISWI Delay and Reconsideration May 18, 2011 - EPA publishes reconsideration of the CISWI to allow additional opportunity to comment on rules. EPA delayed the effective dates of the CISWI rule under the authority of the Administrative Procedure Act. On June 24, 2011, EPA in filing to court said it will propose standards by the end of October 2011 and issue final standards by the end of April 2012. Recent information indicates that new proposal may be in November, but may still try for the final April 2012 date. 22

23. Congress Now Considering the Cement Sector Regulatory Relief Act HR 2681 passed House by a 262-161 vote, Oct. 6, 2011. Unlikely to pass Senate, Obama promises to veto, but EPA is taking notice and should be more flexible. Provides that the following rules shall have no force or effect and shall be treated as though they had never taken effect and requires EPA to repropose. – NESHAPS from the Portland Cement Manufacturing Industry and NSPS for Portland Cement Plants; and – NSPS for New Stationary Sources and Emission Guidelines for Existing Sources: Commercial and Industrial Solid Waste Incineration Units (CISWI), and Identification of Non- Hazardous Secondary Materials That are Solid Waste, as they are applicable to the Portland cement manufacturing industry and Portland cement plants. 23

24. Other Congressional Legislation EPA Regulatory Relief Act HR 2250 Passed House 275-113, October 13, 2011. Unlikely to pass Senate, Obama promises to veto, but EPA is taking notice and should be more flexible. Provides that the following rules shall have no force or effect and shall be treated as though they had never taken effect: – NESHAPS for major sources of Industrial, Commercial, and Institutional Boilers and Process Heaters; – NSPS for area sources of Industrial, Commercial, and Institutional Boilers; – NSPS for new stationary sources and Emission Guidelines for existing sources of Commercial and Industrial Solid Waste Incineration (CISWI) Units; and – Identification of Non-Hazardous Secondary Materials that are Solid Waste. 24