WESTAR Fall 2008 Business Meeting

Status of Air Toxics Program

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KEY TOPICS

Area Source MACT Mercury Residual Risk and Technology

Review

Area Source Rules – Status, Requirements, and Implementation

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Current Status

A total of 70 area source categories have been listed

Standards have been promulgated for 50 categories

20 categories remain to be addressed under March 2006 Court Order 10 source categories by December 16, 2008 10 source categories by June 15, 2009

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Area Source ProgramImplementation Priorities

States and Regions have expressed concerns regarding delegation and implementation of area source standards

We recently distributed a guidance document to assist Regions in prioritizing standards for implementation and outreach

We identified three groups of area source standards that would require different levels of implementation and compliance assistance. This is our vision for implementation.

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Group One and Two Rules

Group one: opportunity for substantial emission reductions (tpy) from individual sources”

Electric Arc Furnaces, 100 facilities, (865 PM; 52 HAP) Iron and Steel Foundries, 427 facilities, (380 PM; 14 HAP) Glass Manufacturing, 21 facilities (415 PM; 28 HAP)

Group Two: Sources that may impact attainment areas due to co-benefits of reducing criteria pollutant emissions.

Autobody, misc. coatings and paint strippers, 39000 facilities (20,900 VOC; 2900 PM; 11.4 HAP)

RICE (new engines) 773,000 engines affected by 2015 (77000-99000 NOx; 45000-56000 CO; 2000-3000 VOC; 800-1000

HAP) Gas Distribution, 14000 facilities (103000 VOC; 4900 HAP) Oil & Gas Production, 2200 facilities (16,000 VOC; 7920 HAP)

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Group Three Rules

Codify existing, effective HAP emission reduction control approaches and prevent backsliding:

Primary nonferrous prod. Primary copper smelting

Secondary copper smelting PVC and Copolymers

Carbon Black production AMF production

Wood Preserving Chromium compounds

Flexible Foam Prod. and Fabr.

Lead Acid Battery Prod.

Clay Ceramics Mfg Secondary Nonferrous Metals

Hospital Sterilizers Plating and Polishing

Nine Metal Fabr. Categories

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Remaining Categories: Bins 5 and 6

Bin 5 Final Rules December 2008: Ferroalloys Production (10 facilities) Chemical Manufacturing (450 facilities) covers processes such as

vents, cooling towers, wastewater, equipment leaks, and tanks, (9 categories in one rule)

Bin 6 Final Rules June 2009: Copper, Aluminum and Other nonferrous Foundries, (3 categories in one rule) Chemical Preparation Prepared Feeds Paint and Allied Products Asphalt Roofing

Three categories extend into 2010 for promulgation: Commercial Boilers Industrial Boilers Sewage Sludge Incineration

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Guidance/Implementation

13 brochures and 7 notification examples have been developed – can be found at:

http://www.epa.gov/ttn/atw/area/arearules.html#imp

Webcast for the Autobody rule will be held the last week of July

Collision Repair Campaign in full swing by Regions/OAQPS Website has comprehensive information on resources at:http://www.epa.gov/air/toxicair/community/collision.html

Best practices DVD with Jeff Gordon (NASCAR) as speaker will be distributed in early August

Plain language fact sheets in English and Spanish, will be developed for several rules where a good majority of workers may not understand a brochure or regulatory text.

Implementation tools are being provided by OAQPS and the Small Business Assistance Program. Responsibilities for implementation rests with the delegated authority or the Regional air toxics office.

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Title V

The majority of area source rules do not require Title V. Proof of compliance is through monitoring, recordkeeping and reporting. It is expected that states will adopt these compliance requirements via whatever mechanism they choose.

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Delegations

States have been utilizing various options on delegation: Straight delegation on rules where they

already have programs in place; Leaving responsibility for the rule with

the Region, but assisting with compliance tool development and notifications;

Not taking any role at all.

Clean Air Mercury Rule (CAMR)

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Clean Air Mercury Rule (CAMR)

On Feb. 8, D.C. Circuit Court of Appeals vacated the Section 112(n) revision rule, which removed utilities from the Section 112(c) list of source categories

Court also vacated CAMR, but did not reach the merits of challenges to CAMR

On March 14, the Court issued its mandate making the vacatur effective

On May 20, D.C. Circuit denied our petition for rehearing and also denied the industry’s petition for panel rehearing

On September 17, Utility Air Regulatory Group filed a cert petition

Department of Justice has until October 17, 2008 to file a certiorari petition before the U.S. Supreme Court if the Agency were to request a filing

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Applicability of 112(g)

The effect of the vacatur is to restore the status quo ante.

Prior to the 112(n) revision rule, and as of December 15, 2000, coal- and oil-fired EGUs were a listed source category under section 112 and section 112(g) applied.

As a result, coal- and oil-fired EGUs must obtain a 112(g) determination before beginning actual construction or reconstruction.

The phrase "begin actual construction or reconstruction" has the same meaning as the phrase "begin actual construction" in 40 CFR 51 and 52 (the NSR and PSD programs), i.e. initiation of physical on-site construction activities as set forth in those programs. (See 61 FR 68634, 68390 (Dec. 27, 1996).

Under section 112(g), no person may begin actual construction or reconstruction of a major source of HAP unless the permitting authority determines on a case-by-case basis that new source MACT requirements will be met.

Residual Risk and Technology Review

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Current Schedule for all RTR Projects

RTR Phase 2 Group 1 Final rule scheduled for Nov 1, 2008, no additional standards

RTR Phase 2 Group 2 Published the Group 2 ANPRM on March 29, 2007 Group 2A - plan to propose 5 MACT in Sept 2008, final rule by Nov 1,

2008, no additional standards Group 2B – plan to propose 3 MACT in March 2009, final rule by Sept

2009 Group 2C - plan to propose 3 MACT in Fall 2009, final rule by Spring

2010

RTR Phase 2 Group 3 Plan to publish the Group 3 ANPRM addressing 17 MACT in Feb 2009

Petroleum Refineries Published the NPRM for Petroleum Refineries on September 4, 2007,

court ordered deadline for final rule extended from Aug 2008 to Oct 2008

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Current Schedule for all RTR Projects(continued)

Halogenated Solvents Reconsideration proposal signature date is October 2, 2008,

by agreement between EPA and petitioners, monitored by DC Circuit Court

EPA scheduled to report to DC Circuit Court on Nov 3, 2008. Final rule date anticipated Summer 2009.

Dry Cleaning Published final amendments (addressed technical corrections

not related to the litigation) in July 2008. In the process of preparing court briefs but don't expect a court hearing before April 2009, outcome uncertain.

Court decision will dictate next steps. If action required, a proposal and final action could be anticipated in 2010/2011 timeframe.

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RTR Phase 2 Groups 1 and 2 MACT

Group 1 Polymers and Resins I (4 source categories) Polymers and Resins II (2 source categories) Hydrogen Fluoride Acetal Resins Group 2A Group I Polymers and Resins (5 source categories) Pharmaceuticals Production Marine Tank Vessel Loading Operations Mineral Wool Production Printing and Publishing IndustryGroup 2B Aerospace Manufacturing and Rework Facilities Natural Gas Transmission and Storage Oil and Natural Gas ProductionGroup 2C Primary Aluminum Reduction Plants Group IV Polymers and Resins ( 7 source categories) Shipbuilding Coatings

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RTR Phase 2 Group 3 MACT (Groupings based on preliminary MIR and subject to change)

Group 3A Flexible Polyurethane Foam Polycarbonates Off-Site Waste Treatment Phosphate Fertilizer/Phosphoric Acid Wood Furniture Steel Pickling

Group 3B Acrylic Modacrylic Fibers Publicly Owned Treatment Works Primary Lead Secondary Lead Chrome Electroplating (3 source categories)

Group 3C Ferroalloys Secondary Aluminum Pulp and Paper MACT I and III Pulp and Paper MACT II Wool Fiberglass Polyether Polyols

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Phase 3 RTR MACT

Portland Cement Pesticide Active Ingredients Polymers and Resins III

(Amino Resins and Phenolic Resins)

Extraction for Vegetable Oil Nutritional Yeast Boat Manufacturing Primary Magnesium Refining Hazardous Waste

Incinerators Leather Finishing Wet Formed Fiberglass Petroleum Refineries MACT II

Metal Coil Cellulose Primary Copper Tire Manufacturing Polyvinyl Chloride and

Copolymers GMACT I, II, III and IV

(Carbon Black, Cyanide, Ethylene, and Spandex)

Large Appliances Friction Products

Manufacturing Paper and Other Web

Coating

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Program Challenges Based on data in NEI which is voluntary, state driven and available

only every 3 years, ANPRM to solicit additional review and comment Lack of agreement on cancer potency values (slow IRIS process) Acute non-cancer benchmarks uncertain More analyses required due to ongoing litigation issues (i.e., HON,

SSM) Litigation/remand of MACT causes delay of RTR (i.e., P&R IV, Portland

Cement) Litigation of residual risk rules requires resources (i.e., HON, Dry

Cleaning) New issues and policies to consider, resulting in extensive comment

and review Multiple packages under development and review concurrently

Priorities More closely meet our statutory schedule Focus more on higher risk source categories

RTR Challenges and Priorities