Update: RACT 2 in Pennsylvania – Almost Here?

As reported by ALL4 in December 2013, Pennsylvania’s proposed Reasonably Available Control Technology rule (i.e., RACT 2) was approved by the Pennsylvania Environmental Quality Board (EQB) on November 17, 2013 as a proposed rulemaking for publication in the Pennsylvania Bulletin. ALL4 has been reporting the progress of the RACT 2 rule since mid-2012 (9/17/2012, 10/23/2012, and 11/7/2012) as it progressed through the labyrinth of the rulemaking process. Along the way, the RACT 2 rule has been delayed by both the Pennsylvania Air Quality Technical Advisory Committee (AQTAC) and more recently by the Pennsylvania Department of Environmental Protection (PADEP). However, based on discussions with PADEP personnel, the draft rule is expected to be published in the Pennsylvania Bulletin as a proposed rule within the next several weeks. The proposal is expected to mirror the draft rule approved by the EQB in November 2013. At this point, three (3) regional public hearings are anticipated to occur during the public comment period, and the comment period is expected to be around 60 days plus one (1) week for the public hearings.

The RACT 2 regulations will impact all major nitrogen oxides (NOX) and volatile organic compound (VOC) facilities in Pennsylvania and many of those impacts could be significant. ALL4 recommends that potentially affected facilities review and understand how the rule, as proposed, could impact their operations. Based on that review, facilities should plan on preparing comments in response to the proposal for submittal during the upcoming public comment period and begin to strategically think about compliance strategies for a final RACT 2 rule by the end of 2014. A summary of the proposed rule, based on the EQB approved version, is provided below.

RACT 2 Applicability

As previously reported, the RACT 2 requirements would apply to major NOX or VOC emitting facilities that were in existence on or before July 20, 2012 and would affect emissions units at such facilities for which no RACT requirement has been established by specific regulatory emission standards. RACT 2 requirements would also apply to facilities that become major NOX or VOC emitting facilities after July 20, 2012 as a result of a modification or the addition of a new source and would affect emissions units at such facilities for which no RACT requirement has been established. The term “has been established” pertains to specific regulatory limits that are defined in 25 Pa. Code §§129.51-129.52c, 129.54-129.69, 129.71-129.73, 129.75, 129.77, 129.101-129.107, and 129.301-129.310 (i.e., Standards for Sources). The proposed RACT 2 requirements would supersede the requirements of a RACT permit issued under 25 Pa. Code §§129.91-129.95 (i.e., case-by-case RACT), except in cases where an existing RACT permit specifies more stringent requirements. Conversely, the draft proposed RACT 2 requirements would supersede the requirements of §§129.201-129.205 (e.g., boilers, turbines, or engines in the 5-County Philadelphia region) or §§145.111-145.113 (i.e., stationary internal combustion engines), only where the proposed RACT 2 requirements are more stringent. The proposed RACT 2 rule will also specifically identify the Chapter 145 Subchapter C NOX limits as presumptive RACT for cement kilns and will require compliance with the applicable limits on a year round basis (versus ozone season compliance only as currently specified in §145.143).

RACT 2 Requirements

The proposed rule will include presumptive RACT requirements for certain combustion units and also contain defined numerical NOX RACT standards for specific sources including combustion turbines, stationary internal combustion engines, combustion units (boilers) greater than 50 million British thermal units per hour (MMBtu/hr), and cement kilns. RACT 2 also includes defined NOX RACT standards for municipal waste landfills and municipal waste combustors. The present regulatory VOC emission limits in §§129.51-129.52c, 129.54-129.69, 129.71-129.73, 75,129.77, 129.101-129.107 will be proposed as presumptive RACT 2 for VOC.

The “case-by-case” RACT option will also remain in the rule. Unit specific RACT emissions limits will be required for NOX and/or VOC sources (at major NOX and/or VOC emitting facilities) that are not subject to specific RACT emission limitations. Facilities that cannot meet the applicable presumptive RACT requirement or RACT emission limitation without installation of an air cleaning device will also have the option to propose alternative RACT emission limitations for those units through the case-by-case RACT process. All unit specific case-by-case RACT proposals would be due six (6) months after the effective date of the RACT 2 rule, with compliance for all such units required one (1) year after the effective date of the RACT 2 rule. The proposed rule will allow facilities that need to install controls to meet either the presumptive or approved alternative RACT limits to petition PADEP for an extension of compliance for up to 3 years after the effective date of the regulation.

RACT 2 Monitoring, Recordkeeping, Testing, and Compliance

Prescriptive compliance demonstration and recordkeeping requirements are specified in the proposed RACT 2 rule and address continuous emission monitoring systems (CEMS), where applicable, and emission testing requirements. Compliance demonstrations are generally required within one (1) year of rule finalization or within one (1) year of becoming a major NOX or VOC source, with provisions for waivers under certain circumstances.  Also note that applicable RACT 2 requirements will need to be incorporated into Title V operating permits.

An averaging provision is included in the rule that would allow a facility that cannot meet the applicable NOX RACT requirement or NOX RACT emission limitation to meet such requirement or limitation by averaging NOX emissions on either a facility-wide or system-wide basis using a 30-day rolling average. System-wide emissions averaging must be among sources under common control of the same owner or operator in Pennsylvania.  However, there is a trade-off for site or system emissions averaging as the 30-day rolling average cannot be greater than 90% of the sum of the NOX emissions if each individual source included in the average complied with the applicable NOX RACT requirement or emission limitation.

Stay tuned to ALL4’s blog for more updates on the proposed RACT 2 rule as it continues through the rulemaking process.  For more information about RACT 2, contact Roy Rakiewicz.

Area Source Boiler MACT Tune-Up and Energy Assessment Deadline

While Spring may be taking its time arriving throughout much of the country, the second deadline for Area Source Boiler MACT is almost here.  Nearly 6 weeks after Punxsutawney Phil saw his shadow and 10 weeks after your initial notifications (January 20, 2014), the March 21 initial compliance deadline is just around the corner with requirements for boiler tune-ups, energy assessments, fuel sampling, and emission testing as appropriate.

With the March 21st Area Source Boiler MACT compliance deadline looming, we offer up two helpful observations.  First, if you are hiding in Punxsutawney’s shadow because boiler tune-ups and energy assessments have you nervous, don’t worry.  U.S. EPA has developed important and helpful information to assist you to meet the boiler tune-up and energy assessment requirements.  For more information on energy assessments and tune-ups, visit U.S. EPA’s Boiler Tune-up Guide and Summary of Energy Assessment Requirements.  For some real-world examples and guidance, check out the February 2014 edition of 4 The Record, which discusses the energy assessment requirements in detail.  Also note that as of March 3, 2014, U.S. EPA is no longer accepting paper submittals of the Notification of Compliance Status for Energy Assessments; rather, they must now be submitted electronically via the Compliance and Emissions Data Reporting Interface (CEDRI).

Second, make certain that the fuels that you listed in your initial notification reflect “traditional fuels” as that term is defined at 40 CFR Part 241.2.  And if you listed a fuel that does not qualify as a traditional fuel, it will be very important to make certain that you can document the non-traditional fuel as a non-waste per the Non-Hazardous Secondary Material rule legitimacy criteria procedures at 40 CFR Part 241.3.  Firing a secondary material that does not have a non-waste determination has significant ramifications.  The most significant ramification is that you could find yourself subject to significant regulatory requirements under the Commercial, Industrial, Solid Waste Incineration (CISWI) rule.

Lastly, U.S. EPA recently requested a remand without vacatur for certain portions of both the Major and Area Source Boiler MACT.  While this could certainly impact emission limitations and/or compliance deadlines, the remand has not yet been granted by the court.  With the area source compliance deadline right around the corner, it appears that area sources have no choice but to comply with the rule as it exists today, unless U.S. EPA issues a No Action Assurance letter as they did around this time in 2012.

If you know where your facility stands with respect to these two issues, you will be in a much better position to enjoy Spring once it finally arrives.  For more information on the Area Source Boiler MACT or the NHSM rule contact me or Dan Holland.

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U.S. EPA Calls a Timeout on Boiler MACT!

On February 28, 2014, U.S. EPA requested a remand without vacatur of certain portions of the set of rules commonly referred to as the Boiler Maximum Achievable Control Technology (MACT) rules. U.S. EPA has also requested a similar remand of the Commercial and Industrial Solid Waste Incineration (CISWI) rules.  I know a lot of you are thinking here we go again…history repeating itself.  U.S. EPA has asked for a voluntary timeout so that it can better explain how the emissions limits were established.

U.S. EPA employed a statistical method called the upper prediction limit (UPL) to set the emission limits in the Boiler MACT and CISWI rules. This method has been called into question through a District of Columbia (D.C.) Circuit court decision in National Association of Clean Water Agencies (NACWA) v. EPA. The ruling raised questions over the UPL method to set air toxics limits when only limited data points are available. U.S. EPA wants to take a step back and justify its numerical emission limits. Specifically, U.S. EPA is seeking to remand the standards that were established with nine (9) or fewer data points for the subcategories listed in the tables below.

Major Source Standards (40 CFR Part 63, Subpart DDDDD)

N applies to New Sources
E applies to Existing Sources

Area Source Standards (40 CFR Part 63, Subpart JJJJJJ)

N applies to New Sources
E applies to Existing Sources

So, what does all this mean? Well, nothing at this particular moment. U.S. EPA has only requested this remand – it hasn’t been granted by the court yet.  What could it mean?  We could see changes to the numerical emission limits for the above subcategories, as well as changes to the compliance dates.  With the current compliance date for existing major source boilers still January 31, 2016, we don’t recommend halting your on-going Major Source Boiler MACT efforts and strategies. The timing is even more unfortunate for existing boilers subject to the Area Source Boiler MACT, since that compliance date is right around the corner. Right now, the prudent approach is to stay your course and plan to conduct your compliance program until a final action changes that schedule.  Stay tuned!!!

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Have You Heard? The GHG Reporting Rule May Be Changing for the Petroleum and Natural Gas Sector

It is a new year, a new beginning, and change is coming.  The U.S. Environmental Protection Agency (U.S. EPA) posted on their “Subpart W Rulemaking Resources” webpage a pre-publication proposal and associated fact sheet of their intent to amend the greenhouse gas (GHG) reporting program (GHGRP) for the petroleum and natural gas (NG) sector.  To improve is to change—right?  I will let you be the judge of that by providing just enough information to become acquainted with the proposal.

Background Information

The U.S. EPA published the GHG reporting rule for the petroleum and natural gas systems source category at 40 CFR Part 98, Subpart W on November 20, 2010 (Subpart W).  The proposed amendments were published in the Federal Register on March 10, 2014.  EPA is receiving comments during a 45-day period, which ends April 24, 2014.

Proposed Amendments Include:

Changes aimed to provide consistency throughout Subpart W calculation methods:

Units of Measure

Currently, GHG emissions are reported in metric tons of CO2 equivalent (CO2e)

Proposed changes:

  • GHG emissions would be reported in metric tons of GHG,
  • Reporters would use global warming potentials (GWPs) to calculate CO2e,
  • Calculation methods would allow for calculation of individual GHG emissions in metric tons.

Terms and Definitions

Onshore petroleum and natural gas production

Adds references to:

  • Engines, boilers, heaters, flares, separation and processing equipment, and maintenance and repair equipment;

Removes references to:

  • Gravity separation equipment and auxiliary non-transportation-related equipment

Sub-basin category, for onshore natural gas production

  • Amendments aimed to clarify that “tight gas reservoir rock” generally refers to tight reservoir rock formations that produce gas, and not tight reservoir rock formations that produce only oil, and that wells that produce liquids in a sub-basin from formations other than high permeability gas, shale gas, coal seam, or other tight gas reservoir rock are considered oil wells.

Changes to calculation methods and reporting requirements (not an all-inclusive listing):

  • Reporting requirements would be restructured to align with the revised calculation methods and clarify the data elements to be reported,
  • The reporting section would be reorganized by industry and source type (e.g., natural gas pneumatic device venting, acid gas removal vents, etc.),
  • Allow the use of  site-specific data on gas compositions for pneumatic device venting (for the natural gas onshore transmission compression and underground storage industry segments),
  • Make minor clarifying edits for acid gas removal vents ,
  • Revise the dehydrator vents source to account for venting to a vapor recovery system or to a flare,
  • Revise the calculation and reporting requirements for well venting from liquids unloading to allow for annualizing venting data for facilities that calculate emissions using a recording flow meter,
  • Add definitions for “reduced emissions completion” and “reduced emissions workover” for gas well completions and workovers,
  • Include a compressibility term for blowdown vents,
  • Revise the method for estimating emissions from dump valves found to not be closing properly

Other notable changes include:

  • Increase the specificity regarding how to use, treat, and report missing data for each calculation,
  • Add missing data procedures specific to facilities that are newly subject to subpart W and to newly acquire existing wells,
  • Removal of best available monitoring methods (BAMM) as an option by January 1, 2015,
  • Add confidentiality determinations for new and substantially revised reporting data elements

So What’s Next?

The EPA is planning to publish the final amendments before the end of 2014. If finalized, these amendments would become effective on January 1, 2015.  Thus, affected facilities would be required to follow the amended rule beginning with the 2015 reporting year.  The first annual reports of emissions calculated using the amended requirements would be those submitted by March 31, 2016, which would cover the 2015 reporting year. For the 2014 reporting year, reporters would continue to calculate emissions and other relevant data in accordance with the current Subpart W requirements.

If you would like to learn more about this proposed action, please contact me at (610) 933-5246 x120 or at jkleinle@all4inc.com.

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