Bill HarnettWESTAR Spring MeetingMarch 30, 2010

Startup, shutdown, malfunction CAMR/112(g)/112(j) CAFO Fire Policy Oil and Gas Sector Strategy

Cement NSPS/NESHAP/MACT PM2.5 Method Development

Immediately and directly affect only the standards that refer to General Provisions SSM Exemptions About 35 MACT refer only to General

Provisions and would be affected immediately

Other MACT include their own SSM provisions Still must be addressed by EPA Guidance from EPA Office of

Enforcement and Compliance Assurance—July 22, 2009

We plan to consider separate standards for startup and shutdown, if appropriate, for rules we review and revise as part of risk and technology review (RTR) or those that we must re-issue or revise through remand or vacatur.

In general, EPA anticipates no separate standards for periods of malfunction.

CAMR Vacated March 2008 Court vacated removal of power plants

from 112(c) CAIR also vacated

Vacatur restored utilities to 112(c) list of categories that require MACT standard.

Case-by-case MACT determination EPA has interpreted CAA 112(j) as applying in cases of

complete vacatur▪ Cement Kiln Recycling Coalition, et al, v. EPA 255 F3d.855

(D.C. Cir. 2001)(“Joint Motion of All Parties for Stay of Issuance of Mandate”)

On March 24, EPA proposed amendments to 112(j) rule▪ Will clarify that 112(j) applies when a MACT has been vacated

in entirety▪ Streamlines the application process, reducing it from a 2 step

process to a single application submitted from sources to states

Anticipate promulgation a year later

Limited impact on boilers since Boiler MACT under consent decree for proposal 4/2010 and promulgation 12/2010.

Overseeing the National Air Emissions Monitoring Study

Results feed further policy development

NAEMS should inform OAR in exploring various regulatory options (e.g., NSPS)

Prioritize a research agenda to address the recommendations from National Academy of Sciences

NAEMS Study Participants determine

and certify that they are not subject to ▪ any Clean Air Act

requirements ▪ CERCLA▪ EPCRA notification

requirements

If subject, participants must comply with CAA, CERCLA and EPCRA requirements

May 2010: Complete NAEMS Data Collection Summer 2010 – Summer 2011: Evaluate

NAEMS Data – Process for public involvement is being developed

Fall 2011: Publish Emissions Estimating Methodologies

Ongoing efforts: Coordinate w/ USDA and Other Stakeholders on

Control Options Evaluating the need for further regulation using

the various CAA tools in a multi-pollutant strategy framework.

The draft Fire Policy was submitted for a 90 day OMB review in early February 2010.

After OMB review, EPA will make the draft policy available for a 60 day public review and comment period.

EPA will review comments received and, where appropriate, revise and finalize the policy.

WildEarth Guardians and San Juan Citizens Alliance filed deadline suit for failure to conduct required reviews of NSPS (KKK, LLL) and NESHAP (HH,HHH) Consent Decree entered 02/04/10 Proposal deadline 01/31/11 Promulgation deadline 11/30/11 2 stakeholder meetings summer 2010

▪ Dallas▪ Denver

We intend to use this opportunity to examine the full range of operations from drilling to local distribution

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for Certain Stationary Sources

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Rethink the one-rule-at-a-time treadmill

Where it makes sense, combine rulemaking reviews and their promulgations

Use a more holistic, multipollutant approach to obtain a “whole picture” of a category

Seek opportunities for optimization and efficiency

CAA Requirements Results in Numerous Regulations on the Same Industries

Industry Group Total Area Source CTG/183(e) MACT/129Pre-1990 NESHAP NSPS

Chemical Production 75 14 18 31 1 11

Durable Goods Manufacturing 58 4 23 20   11

Metal Processes 48 16 1 15 3 12

Minerals 36 5 2 12 2 15

Agriculture and Forest Products 15 2 3 7   3

Oil and Gas Production and Distribution 15 2 5 5   3

Petroleum Refining 13   4 2 4 3

Energy and Combustion 12 1   5 1 5

Service Industries 11 2 6 2   1

Transportation Equipment 10   5 4   1

Waste Management 8     8   1

Chemical Usage 5 1 3 1    

Utilities 3     1   2

Institutions 1     1    

Transportation Infrastructure 0          

Total 310 47 70 114 11 68

MANAGEMENTConcentrates efforts on biggest reductions

Helps states move toward attainment goals

Reduces litigation and addresses backlog

Meets Clean Air Act obligations efficiently with synchronized timelines

SCIENCE AND ANALYSISEvaluates whole facility and interaction of pollutants and processes

Gathers more comprehensive emissions data

Eliminates redundancy

Quantifies co-benefitsCOSTSMay lower administrative costs for federal, state and local governments – short run effect may be an increase in costs to States as we transition

In the long run, avoids stranded costs in capital equipment for industry and provides regulatory certainty

Example of Sector Approach

Concurrently analyzed multiple regulatory requirements to evaluate control options and/or strategies and related benefits NSPS NESHAP Residual Risk NSR Regional Haze PM NAAQS Attainment

Analysis showed opportunities for environmental improvements Alignment of VOC and CO limits from NSPS with THC limit from

NESHAP Alignment of PM limit from NSPS with PM limit from NESHAP New PM limit reduces residual risk due to Chrome IV emissions SO2 reductions from existing kilns are possible as co-benefits of

HCl and Hg limits on NESHAP and can be used for NSR netting or offset purposes

SO2 and PM fine reductions are possible for new and existing kilns from the control technology used to reduce HCl and/or Hg under the NESHAP.

Estimated annual emissions reductions as a results of the multi-pollutant cement sector strategy: Mercury: reduction of 81 to 93 percent; Total hydrocarbons: reduction of 75 percent; Particulate matter: reduction of 90 to 96 percent; Hydrochloric acid: reduction of 92 to 94 percent; and Sulfur dioxide: reduction of 77 to 90 percent.

Estimated benefits range from $4.4 billion to $11 billion annually in 2013.

Filterable PM2.5

- Solid or liquid particles < 2.5 microns

- Revising Method 201A to add PM2.5 equipment

Condensable PM

- Vaporous materials condense to form sub-micron particles in ambient air

- Revising Method 202 to update and standardize method