Environmental Compliance 101

In 2004, the Environmental Protection Agency (EPA) released national emission standards for hazardous air pollutants (HAPs) for new and existing industrial, commercial and institutional boilers and process heaters. The standards required certain boilers and process heaters meet air pollution limits reflecting the application of maximum achievable control technology (MACT). These new rules are commonly referred to as “Boiler MACT” standards.

The 2004 standards were soon challenged and vacated by the U.S. Court of Appeals in 2007. In April 2010, EPA released a new version of the Boiler MACT standards. Following the release of the 2010 standards EPA received over 4800 comments from businesses and communities, including a significant amount of new information which could change proposed subcategories and emission limits. Based on this input, EPA made extensive revisions to the standards, and in December 2010 requested additional time to ensure the public’s input was fully addressed. However, the court denied an extension, resulting in a March 21, 2011 publication into the Federal Register. EPA determined further public review was required and in May 2011, under the authority of the Administrative Procedure Act, announced a delay of effective dates of standards for major sources. EPA currently proposes to reconsider the major source standard by the end of October 2011 and issue the final standard by April 2012. Note: EPA did not stay the effective date of the standards for boilers located at area sources.

The current Boiler MACT Standard requires facilities, based on subcategories by type of boilers and fuel used, to meet emission limits or work practice standards, meet operating limits and demonstrate initial as well as annual compliance. EPA estimates the majority of boiler and process heaters subject to this standard burn natural or refinery gas and will only be subject to the work practice standards. The remaining units, burning coal or biomass, will be required to comply with new emission limits which may additionally require an applicability assessment, initial and ongoing compliance monitoring, stack testing, permit modification, recordkeeping, training and reporting.

Below are some key facts on how the current Boiler MACT standards apply and what impact they could have.

Area Source Requirements (40 CFR Part 36 Subpart JJJJJJ) affect facilities with the potential to emit less than 10 tons per year (tpy) of any single HAP or less than 25 tpy of combined HAPs. This includes boilers burning coal, oil, biomass or non-waste materials, but not solid waste; in addition to natural gas fired boilers if they use fuel oil as a back-up. Also included are emission limits for mercury, particulate matter (as a surrogate for non-mercury metals) and carbon monoxide (as a surrogate for organic air toxics), depending on status and fuel type. Small boilers, less than 10 million British Thermal Units (BTUs) per hour (BTUs/hr), are not subject to emission limits, but are required to perform a boiler tune-up every two years.

As part of work practice standards large boilers, greater than 10 million BTUs/hr, are required to perform an energy assessment to identify energy conservation measures. As for timing for implementation, existing sources must comply with emission limits or energy assessment by March 21, 2014 and work practices standards by March 21, 2012. New sources must comply upon startup.

Major Source Requirements (40 CFR Part 36 Subpart DDDDD) affect facilities with the potential to emit greater than 10 tpy of any single HAP or greater than 25 tpy of combined HAPs. This includes boilers and process heaters burning natural gas, fuel oil, coal, biomass (e.g., wood), refinery gas or other gas to produce steam; in addition to process heaters heating raw or intermediate materials during an industrial process. These requirements contain subcategories with specific requirements. New and existing natural and refinery gas units greater than 10 million BTUs/hr are subject to annual tune-ups; units less than 10 million BTUs/hr are subject tune-ups every two years. Other affected boilers (solid fuel-fired, liquid fuel-fired and process gas-fired) are subject to limit emissions of mercury, dioxin, particulate matter, hydrogen chloride (as a surrogate for acid gases) and carbon monoxide (as a surrogate for non-dioxin organic air toxics). EPA recently stayed the effective dates for Major Sources; therefore, timing for implementation is undetermined.  

In addition to meeting emission limits, facilities with certain boilers must also demonstrate continuous compliance through annual stack testing, continuous monitoring, recordkeeping and reporting. Facilities with boilers with a heat input capacity of greater than or equal to 100 million BTUs/hr are required to install and operate a carbon monoxide continuous emissions monitor. Facilities with boilers with a heat input capacity of greater than or equal to 250 million BTUs/hr are required to install and operate a particulate matter continuous emissions monitor.

The reporting requirements include initial notification within 120 days of publication of the final rule, Notification of Compliance status within 120 days of the compliance date or within 60 days of a performance test and Annual Compliance Certification report by March 1 of each year. Recordkeeping requirements can include permits, continuous monitoring data, deviation reports, fuel use, performance test, energy assessments, tune-up documentation, stack test data and any site specific monitoring plans.

As of July 20, 2011 a bipartisan group of U.S. senators introduced a bill allowing EPA the time it needs to adequately consider the new rules. The bill would establish a clear timetable and conditions for reissuance of the regulations. Specifically, it would give EPA 15 months from the bill's date of enactment to re-propose and finalize the Boiler MACT regulations; extend compliance deadlines from three years to at least five years which would allow facilities adequate time to comply with the new standards and install necessary equipment; clarify renewable and carbon-neutral materials remain classified as fuel and not solid waste; direct EPA to ensure the new rules are achievable by “real world” boilers, process heaters and incinerators as well as impose the least burdensome regulator alternatives consistent with President Obama’s Executive Order.