1. April 15, 2015 Betty Gatano, P.E. Permitting Section North Carolina Division of Air Quality, Raleigh, NC (919) 707-8736

2.  MACT Development  Boiler MACT History  NC Implementation 2

3.  National Ambient Air Quality Standards (NAAQS)  State Implementation Plans (SIPs)  New Source Performance Standards (NSPS)  National Emission Standards for Hazardous Air Pollutants (NESHAPs) 3

4.  Health-based standards ◦ Set “at the level which …provides an ample margin of safety to protect the public health from such hazardous air pollutants."  Standards for seven HAPs developed ◦ Asbestos ◦ Benzene ◦ Beryllium ◦ Inorganic Arsenic ◦ Mercury ◦ Radionuclides ◦ Vinyl Chloride 4

5.  Increased the number of Hazardous Air Pollutants (HAPs) from 7 to 187  Defined major source of HAPs ◦ 10 tpy of any one HAP ◦ 25 tpy of all HAPs combined  Applied to categories of emission sources rather than to specific pollutants emitted 5

6.  Required technology-based emission standards ◦ Maximum Achievable Control Technology (MACT) Standards ◦ Best performing 12 % of emission sources  Included requirement to establish schedule ◦ 40 % of source categories in 2 years ◦ 25% of source categories in 4 years ◦ 25% of source categories in 7 years ◦ Remaining source categories in 10 years  Considers residual risk after implementation 6

7. 7 187 HAPS HAPS specified In 1990 CAAA 174 Source Categories Initially promulgated 07/16/1992 MACT Standards Best performing 12 % Per Established Schedule Initially promulgated 12/03/1993

8. 8  112(j)(2) of the CAA  112(j) triggered 18 months after missed promulgation date  Applicable facilities must apply for “Case-by- Case” MACT

9. 9  A facility-specific…  MACT standard…  For HAP…  Established by the state permitting authority…  Through a permitting action…

10. 10 JJanuary 2003 – Original rule proposed SSeptember 2004 – Original rule promulgated JJune 2007 – Rule vacated by D.C. Court JJune 2010 – Revised rule proposed MMarch 2011 – Final rule promulgated MMay 2011 – EPA issues reconsideration notice and issues stay on final rule DDecember 2011 – EPA issued “reconsidered” rule JJanuary 2012 – DC court declares stay illegal and 2011 rule becomes effective JJanuary and February 2013 – Final rule issued (again)

11. 11  Listed eighteen subcategories of boilers  Set “no controls” as MACT floor for certain boilers types including gas and oil fired units  Established health-based standard as alternative to technology based-standard for HCl and manganese

12. 12  Several groups filed petition challenging rule ◦ No controls ◦ Health based standard ◦ Treatment of small municipal utilities  DC Circuit Court vacated because of issues with CISWI definition ◦ Incinerator rule was deemed inappropriately narrow, resulting in inappropriate sources in the Boiler MACT ◦ June 2007

13.  Not clear – differing opinions  NC Attorney General’s Office policy memo February 24, 2009 ◦ Vacatur of rule equated to EPA’s failure to promulgated standard.  DAQ’s memorandum on April 9, 2009 regarding 112(j) applicability 13

14. 14  Issued letter to all Title V facilities requesting Part 1 permit application.  Part II permit application due 60 days later.  NC DAQ established guidance for facilities. ◦ http://daq.state.nc.us/permits/112j/ http://daq.state.nc.us/permits/112j/

15.  DAQ incorporated Case-by-Case Standards into Title V permits ◦ 98 facilities ◦ 2010 and 2011  Facilities must comply with the Case-by- Case MACT requirements until “switch over date” 15

16. 16  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. ◦ “[U]nder 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]

17. 17  Language currently being included in affected Title V permit renewals… ◦ The Permittee shall comply with this CAA §112(j) standard until May 19, 2019. After May 20, 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.”

18. 18  DAQ is also including MACT Subpart DDDDD conditions in permits at renewal… 40 CFR 63.56 (b) (b) If the Administrator promulgates a relevant emission standard under section 112(d) or (h) of the Act that is applicable to a source after the date a permit is issued …, the permitting authority must incorporate requirements of that standard in the title V permit upon its next renewal.

19. 19

20. 20  What if MACT DDDDD is less stringent? ◦ DAQ does not have to keep the more stringent regulation.  What if the facility becomes an area source? ◦ Boiler becomes subject to GACT 6J.