Order 20 Rule 12 Application

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Order 20 Rule 12 Application Powered By Docstoc
					PA Chamber of Business and Industry
      DEP Quarterly Meeting
            September 24, 2009

                  Joyce E. Epps
         Director, Bureau of Air Quality
    PA Department of Environmental Protection
                400 Market Street
           Harrisburg, PA 17105-8468
   Boiler MACT Update
   PA CAIR Update
   CO2 and PSD Applicability
   Title V Operating Permits
    Boiler MACT Update
   On June 8, 2007, the U. S. Court of Appeals for the District of
    Columbia Circuit vacated both the Industrial, Commercial, and
    Institutional Boilers and Process Heaters (“Boiler MACT”) Rule (69
    FR 55218, Sept. 13, 2004) and the Commercial, Industrial Solid
    Waste Incinerator (CISWI) Definition Rule (70 FR 55568, Sept. 20,

   EPA issued Section 114 Information Collection Requests (ICRs) to
    collect data for the re-promulgation of Boiler MACT and CISWI

   EPA’s Phase 1 electronic survey requested available data on boiler
    and process heater design, operations, fuels, control devices, and
    emissions data from the owners/operators of approximately 3,400
    potentially affected units; responses were due to EPA by
    October 6, 2008.
    Boiler MACT Update
   In June 2009, EPA required the owners/operators of approximately
    300 combustion units to conduct Phase 2 emissions testing for
    hazardous air pollutants and surrogates under the Section 114 ICR
    to eliminate gaps in emissions test data and fuel analyses.

   At least 17 facilities in Pennsylvania received Phase 2 Section 114
    ICRs; PADEP’s source testing team should have been notified at
    least 21 days prior to the start of Phase 2 testing.

   Phase 2 test results are due to EPA by October 15, 2009.

   In a September 10, 2009 order, the DC Circuit issued an Order
    extending the deadline for the promulgation of the Boiler MACT
    and CISWI Rules until December 16, 2010, provided EPA signs a
    notice of proposed rulemaking by April 15, 2010.
    Boiler MACT Update
   On August 2009, PADEP published in the Pennsylvania
    Bulletin a notice of availability of the Part 1 and Part 2
    MACT Applications for the Boiler MACT category.

   Part 1 MACT Applications are due to PADEP and EPA
    Region III no later than September 28, 2009.

   Part 2 MACT Applications are due to PADEP and EPA
    Region III within 60 days after the submission of the
    Part 1 MACT application but no later than November 30,
      Clean Air Interstate Rule Update
   May 12, 2005 — EPA promulgated the Clean Air Interstate
    Rule (CAIR) which is designed to mitigate the interstate
    transport of NOx and SO2 emissions by 2015.
   April 28, 2006 — EPA promulgated the CAIR Federal
    Implementation Plan (FIP) to ensure timely NOx and SO2
    emission reductions.
   July 11, 2008 — the U. S. Court of Appeals for the District
    of Columbia Circuit issued an opinion vacating EPA’s
    “fundamentally flawed” CAIR.
   December 23, 2008 — the Court remanded CAIR to EPA
    for revisions consistent with the Court’s opinion.
    Clean Air Interstate Rule Update
   The remand continues CAIR in full effect and
    restores the anticipated NOx and SO2
    emission reductions.
   In July 2009, EPA indicated that a hybrid
    program of regional emissions trading and
    unit-specific performance standards for the
    CAIR Replacement Rule is being considered.
   EPA intends to issue a proposed CAIR
    Replacement Rule in March 2010.
   Final adoption of the CAIR Replacement Rule
    is expected during the spring of 2011.
    Clean Air Interstate Rule Update
   On September 2, 2009, 17 states in the Ozone Transport
    Commission and the Lake Michigan Air Directors Consortium
    (IL, IN, MI, OH and WI) submitted a joint letter to EPA
    recommending a “framework” for the CAIR Replacement Rule.
   A significantly contributing state (i.e., a state which contributes
    at least 1% to a downwind area of interest) would comply with
    a national/regional control program.
   EGU point source strategy (applicable to units ≥ 25 MW)
    Statewide Emission Budgets by 2017
      0.25 lb/MMBTU SO2

      0.11 lb/MMBTU NOx

      Previously banked emissions under the Title IV or CAIR
        programs would not be used to comply with the state-wide
        emission caps)
   EPA should work with states to establish regional emissions
    caps to the fullest extent allowed under the Clean Air Act.
     Clean Air Interstate Rule Update
   In adopting a CAIR Replacement Rule, the OTC/LADCO Framework also
    recommended that EPA make federally enforceable through appropriate

        All nitrogen oxide (NOx) and sulfur dioxide (SO2) controls to comply
         with the original CAIR Phase I program;
        Optimization of existing NOx and SO2 controls by no later than early
         Application by 2015 of low capital cost NOx controls.

   In a September 10, 2009, follow-up letter to EPA, the OTC states requested
    that EPA work with the states to develop and phase in unit-specific
    performance standards during the 2017-2025 timeframe, or earlier if EPA’s
    technical analysis demonstrates that an earlier date is reasonable.

   The LADCO states “firmly believe that it is not appropriate to include
    performance standards in the CAIR Replacement Rule.”
    PA Clean Air Interstate Rule Update
   April 12, 2008 — PA’s final-form CAIR rulemaking was published
    in the Pennsylvania Bulletin (38 Pa.B. 1705).
        This rulemaking largely incorporates EPA’s CAIR requirements by
         reference but applies an allocation methodology to CAIR NOx
         allowances to address specific PA concerns such as waste coal and
         renewable energy.

   May 23, 2008 — PADEP submitted the CAIR SIP revision to EPA
    for approval.

   September 24, 2009 — EPA published a proposed notice of
    approval of PA’s CAIR SIP revision in the Federal Register;
    comments are due on or before October 26, 2009.

   Final approval of PA’s CAIR SIP revision, will result in the
    automatic withdrawal of the Federal Implementation Plan.
PA Clean Air Interstate Rule Update
   The owners/operators of affected electric generating
    units (EGU) in PA must comply with EPA’s FIP
    through December 31, 2009.
       The 2009 ozone season NOx allowance transfer deadline is
        November 30, 2009.
       The 2009 ozone annual program NOx allowance transfer
        deadline in March 1, 2010.
   Beginning January 1, 2010, affected EGU
    owners/operators must comply with the PA CAIR
   PADEP will publish the 2010 – 2013 CAIR NOx
    allocations the Pa. Bulletin for public comment by
    October 17, 2009.
     CO2 and PSD Applicability
   December 18, 2008 -- Former EPA Administrator Stephen Johnson
    issued an interpretative memorandum concluding that carbon dioxide
    (CO2) emissions are not subject to prevention of significant
    deterioration (PSD) requirements.

   August 12, 2009 – In the Louisville Gas and Electric Company matter,
    EPA Administrator Jackson issued an “Order Responding to Issues
    Raised in April 26, 2008 and March 2, 2006 Petitions, and Denying in
    Part and Granting in Part Requests for Objection to Permit.” Footnote
    18 reads as follows:

    “Actions are under way at EPA that could, when finalized, result in
    promulgation of final standards controlling the emissions of greenhouse
    gases. In particular, EPA has announced its intention to propose a rule
    regulating greenhouse gas emissions from light-duty vehicles; that rule
    would control the emissions of greenhouse gases within the meaning of
    the Johnson memo.”
     CO2 and PSD Applicability
   On September 15, 2009, EPA and the Department of
    Transportation’s National Highway Safety Administration issued a
    proposed rule concerning light-duty vehicle greenhouse gas
    (GHG) emissions standards and corporate average fuel economy
    standards to reduce greenhouse gas emissions and improve fuel
    economy for new cars and trucks sold in the United States; final
    standards are expected in March 2010.

   A proposed rulemaking to establish CO2 permitting requirements
    is currently under review by OMB. It has been reported that EPA
    is planning to propose a 25,000 ton per year CO2 emissions
    threshold for triggering PSD requirements.

   Under the Clean Air Act (CAA), PSD applies to sources that emit
    more than 250 tons per year of a pollutant, and in some cases
    100 tons per year.
     Title V Permit Program Update
   PADEP received a total of 756 initial Title V Permit

   PADEP has issued 742 of the initial Title V Permits;
    representing an issuance rate of 98%
    of the initial applications.

   Title V Operating Permit Renewal Applications are due to
    PADEP at least six months, and not more than 18
    months, before the expiration
    date of the permit.
    Title V Permit Program Update
   PA DEP has received 688 Title V Renewal Applications.

   To date, PA DEP has renewed 575 Title V Permits,
    accounting for 83.5% of the renewal applications.

   To date, only the New Jersey Department of
    Environmental Protection (NJDEP) has filed petitions
    challenging the Title V Permit and proposed renewal for
    the Reliant Portland Generating Station in Lower Mt
    Bethel, PA.
    Title V Permit Objections by EPA
   Section 505(b)(1) of the CAA provides a 45-day period for EPA
    to review, and object to as appropriate, Title V Permits
    proposed by state permitting authorities.

   Section 505(b)(2) of the CAA authorizes any person to petition
    the EPA Administrator within 60 days after the expiration of the
    EPA review period to object to a state operating permit if EPA
    has not done so.

   The petition must be based only on objections to the permit
    that were raised with reasonable specificity during the public
    comment period provided by the state, unless the petitioner
    demonstrates that it was impracticable to raise issues during the
    comment period, or the grounds for the issues arose after this
NJDEP Requests Objections to the Portland
Generating Station Title V Permit/Renewal
   July 21, 2006 — NJDEP submitted a petition to EPA requesting that
    the EPA Administrator object to the issuance of the proposed Title V
    Permit renewal for Reliant Energy’s Portland Generating Station in
    Upper Mount Bethel Township, Northampton County. NJDEP asserted
    PSD violations and unspecified NSPS violations.

   June 20, 2007 — EPA issued a final Order denying the petition on all
    grounds. 72 FR 39414 (July 18, 2009). EPA found that NJDEP did not
    provide sufficient information to establish Reliant's NSR liability.
    Procedurally, NJDEP failed to raise certain issues during the public
    comment period.

   September 14, 2007 — the NJ Attorney General, on behalf of NJDEP,
    filed an appeal of the EPA Administrator’s Order in the U.S. Court of
    Appeals for the Third Circuit.
    NJDEP Requests Objections to the Portland
    Generating Station Title V Permit/Renewal
   September 14, 2007 — NJDEP submitted a petition for
    reconsideration with respect to EPA's denial of
    NJDEP's petition.
   September 25, 2008 — EPA denied NJDEP’s petition
    for reconsideration of the EPA Administrator’s Order.
    73 FR 64615 (October 30, 2008)
   July 22, 2009 — NJDEP filed a petition with EPA to
    reopen for cause the Title V Permit issued to the
    Portland facility.
       NJDEP asserts that Title V Permit contains a material mistake in that it fails to
        incorporate hourly heat input limits from previously issued permits.

       NJDEP also asserts that the Title V Permit fails to assure compliance with the
        particulate matter emissions limit for Portland’s coal-fired units, Units 1 and 2.
          Thank you!
On behalf of the Honorable John Hanger
   PA Department of Environmental

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