1. Division of Air Quality Update on EPA Boiler MACT Rules Steve Schliesser Environmental Engineer March 2012

2. Topics to be Covered Background on EPA Boiler MACT Rules Highlights & Proposed Changes to Boiler MACT Highlights & Proposed Changes to Boiler GACT - EPA Boiler MACT and GACT Rulemaking process continues until at least May 2012 - Litigation expected after May 2012 final rule

3. Background on EPA Boiler MACT Rules Clean Air Act Requires National Emission Standards for Hazardous Air Pollutants (HAP) Develop Maximum Achievable Control Standards (MACTs) for major facilities emitting one HAP > 10 ton/yr or multiple HAPS > 25 ton/yr Develop Generally Available Control Standards (GACTs) for non-major facilities emitting one HAP < 10 ton/yr or multiple HAPS < 25 ton/yr

4. Boiler MACT Impact in North Carolina Affects 98 facilities and ~1,000 boilers All but one facility has 112(j) permit, shielding MACT compliance up to 8 yrs (2018/2019) State of NC has 2 nd highest projected impact from Boiler MACT in U.S. with cost > $1 billion

5. Boiler MACT Rulemaking Process Timetable EPA Proposed Rule in Jan 2003 EPA Promulgated Final Rule in Sept 2004 U.S. Court Vacated and Remanded Final Rule in June 2007 EPA Proposed Rule in June 2010 U.S. Court Denied EPA Time-Extension Request in Jan 2010 EPA Promulgated Final Rule in March 2011 EPA Stayed Effective Date of Final Rule in May 2011 EPA Proposed Amendments to Final Rule in Dec 2011 U.S. Court Vacated EPA Stay in Jan 2012 EPA Expects to Promulgate Final Rule by May 2012

6. Recently (Re)Proposed Boiler MACT U.S. Court vacated EPA stay in January 2012 Slight national impact, but one NC facility lost 112(j) permit since rule’s restored effective date occurred before permit was issued DAQ submitted comments on re-proposal in Feb 2012 EPA expects to finalize Boiler MACT in May 2012

7. MACT procedure sets the bar of top 12% -- for each boiler type/fuel sub-category and each HAP -- for remaining to meet Re-proposal changes offer more flexibility, less cost impact, with offsetting increases/decreases in HAP emissions Highlights of proposed changes Added new sub-categories for total of 19 New and alternative HAP emissions limits New work practice standards and provisions Modified clean gas specification for natural gas and equivalent gaseous fuels Recently (Re)Proposed Boiler MACT

8. HAP/ Fuel and/or DesignUnits Sept 2004 Final June 2010 Proposal May 2011 Final Dec 2011 Proposal Mercury - Biomass lb / Trillion Btu No limit0.9 4.63.1 - Coal 93 - Oil No limit43.526 Hydrogen chloride - Biomass lb / Million Btu No limit 0.006 0.0350.022 - Coal 0.02 - Oil 0.00090.00340.0012 Particulate - Biomass Wet Stoker lb / Million Btu 0.070.020.039 0.029 - Biomass Dry Stoker 0.32 - Coal Pulverized 0.044 - Heavy Liquid Oil No limit0.0040.0075 0.062 - Light Liquid Oil 0.0034 Synopsis of Boiler MACT Emission Standards for Existing Units

9. Recently (Re)Proposed Boiler GACT GACT procedure uses generally available (not maximum achievable) control technologies or management practices Re-proposed rule eases requirements without changing emissions, costs, or benefits Affects 300 permitted facilities and 600 boilers > 90% conduct periodic tune-ups and some perform one-time energy assessment Remaining burn coal and must meet emission limits for mercury and carbon monoxide.

10. Boiler GACT Emission and Work Practice Standards Source Category Fuel Category Heat Input, MMBtu/hr PM, lb/MMBtu/hr Mercury, lb/MMBtu/hr CO, ppm Work Practice Standard All< 10None Boiler tune-up every two years Existing Coal ≥ 10None 4.8E-6 400 @7% O 2 One time energy assessment Biomass None Boiler tune-up only Oil New Coal ≥ 10 < 300.42 4.8E-6 400 @3% O 2 No energy assessment ≥ 300.03 Biomass ≥ 10 < 300.07 None Boiler tuneup ≥ 300.03 Oil ≥ 10 < 300.03 ≥ 300.03 For more details see http://www.epa.gov/airquality/combustion/docs/20111202asboilersfs.pdfhttp://www.epa.gov/airquality/combustion/docs/20111202asboilersfs.pdf

11. Questions? Steve Schliesser Environmental Engineer 919-707-8701 Steve.Schliesser@ncdenr.gov http://www.ncair.org/