This Week in Review – February 21-25, 2011

(1) EPA Issues Final Area and Major Source Air Toxics Standards for Industrial Boilers (February 23, 2011) – EPA issued final rules under section 112 of the Clean Air Act to address emissions of hazardous air pollutants (HAPs) from Industrial, Commercial and Institutional Boilers located at major and area sources. The major source standard – the MACT – will also apply to process heaters. The rules – which are intended to reduce emissions of mercury, dioxin, particulate matter (as a surrogate for non-mercury metals), hydrogen chloride (as a surrogate for acid gases) and carbon monoxide (as a surrogate for non-dioxin organic air toxics) – include 15 different subcategories of boilers and process heaters and impose specific requirements for each. EPA estimates that there are over 13,000 major source boilers and 187,000 area source boilers nationally. The rules would avoid between 2,500 and 6,500 premature deaths annually. According to EPA, the rule would provide an estimated benefit of between $15 and $36 for every dollar spent, and is half the estimated cost of the proposal. EPA also estimates that the rules would create over 2,000 new jobs. Changes in the rules since the proposal include creating a solid-fuel category, instead of separate biomass and coal subcategories; allowing work-practice standards, rather than emission limits, for additional source categories, including units burning gases other than natural gas and refinery gas; and allowing work practice standards for periods of startup and shutdown. EPA decided to not allow the use of the health-based compliance alternative (risk-based exemption), that it discussed in the proposal. EPA announced that it plans to issue a notice that it will reconsider elements of the boiler rules and solicited input on other aspects of the rules that should be reconsidered as well. At the same time as the issuance of the boiler rules, EPA also issued standards for Commercial/Industrial Solid Waste Incinerators (CISWI) and Sewage Sludge and a new definition of solid waste, which could recategorize some boilers as CISWI Incinerators (see related articles below). [For further information: www.epa.gov/airquality/combustion/actions.html] (2) EPA Issues Air Toxics Standards for Commercial/Industrial Solid Waste Incinerators (February 23, 2011) – EPA issued New Source Performance Standards and emissions guidelines for emissions of hazardous air pollutants from Commercial/Industrial Solid Waste Incinerators (CISWIs) under section 129 of the Clean Air Act. CISWIs are boilers that burn non-hazardous solid wastes, not including municipal or medical solid waste incinerators. The new rule calls for

2

reductions at 85 of the 88 CISWI units in the country. It imposes emission limits for mercury, lead, cadmium, hydrogen chloride, particulate matter, carbon monoxide, dioxins/furans, nitrogen oxides and sulfur dioxide. Sources can choose to meet the emissions limits or use alternative waste-disposal options (e.g., diverting waste to landfills). EPA estimates the cost to be $218 million annually, with benefits totaling $360 million to $870 million annually. As with the boiler rules, EPA will issue a notice that it plans to reconsider some parts of the rule and solicits input on specific elements the public recommends for reconsideration. EPA also issued a new definition of solid waste, which could recategorize some boilers as CISWI (see related article below). [For further information: www.epa.gov/airquality/combustion/actions.html] (3) EPA Issues Definition of Non-Hazardous Solid Waste that Affects Boiler and CISWI Applicability (February 23, 2011) – EPA issued a new definition of “non-hazardous solid waste” under the Resource Conservation and Recovery Act that has implications for the newly announced Boiler and Commercial and Institutional Solid Waste Incinerators (CISWI) regulations that were released on the same day. EPA’s new definition expands the universe of items that can be defined as “fuels” rather than “solid waste” to include whole scrap tires, resinated wood residuals (that are transferred off-site to be used as raw materials for fuels) and abandoned coal refuse. Incinerators that burn items that are defined as “solid wastes” are subject to the more stringent CISWI rule, while those that burn “fuels” are generally subject to the Boiler rule. [For further information: www.epa.gov/airquality/combustion/actions.html] (4) Six Senators Express Concerns about Boiler Rules and Offer EPA Assistance (February 18, 2011 ) – A bipartisan group of six senators wrote to EPA Administrator Lisa Jackson to express concern over the sources that will be regulated by the upcoming Boiler MACT and offer assistance to EPA in developing a new rule. The senators, including Lamar Alexander (R-TN), Susan Collins (R-ME), James Inhofe (R-OK), Mark Warner (D-VA), Ben Nelson (D-NE) and Rob Portman (R-OH), articulated concern about boilers and their “vulnerability” to “excessive and expensive regulatory burdens.” They emphasized the importance of a final rule that includes achievable standards, protects public health and fosters economic recovery and job retention. They also expressed concern that the court’s decision not to provide a later deadline would not provide enough time for improvements to the rule. Finally, the senators offered assistance in finding a way to allow EPA to develop new rules that are achievable, protect public health and preserve the economy and jobs. [For further information: http://epw.senate.gov/public/index.cfm?FuseAction=Minority.PressReleases&ContentRecord_id=3a7ababc-802a-23ad-4de4-202ae5db0c88] (5) EPA Seeks Input on Developing a Plan for Retrospective Review of Its Regulations (February 23, 2011) – EPA is soliciting public input on the design of a plan for conducting periodic retrospective reviews of its regulations. On January 18, 2011, President Obama issued an Executive Order (EO 13563) calling on all federal agencies to conduct a ‘‘retrospective analysis of rules that may be

3

outmoded, ineffective, insufficient, or excessively burdensome and to modify, streamline, expand, or repeal them in accordance with what has been learned.’’ EPA intends to publish its retrospective review plan by late May or early June. EPA will hold a public hearing on March 14, 2011; public input is due to EPA by March 20, 2011. [For further information: 76 Federal Register 9988] (6) President’s Economic Report Highlights Clean Energy (February 23, 2011) – The annual Economic Report of the President presents the Administration’s domestic and international economic policies and provides an overview of the nation’s economic progress. In this year’s report, the Obama Administration focuses on several issues in particular: health care reform, clean energy and small businesses. In the chapter entitled Transitioning to a Clean Energy Future, the Administration states that “[i]t is increasingly clear…that existing energy supplies pose risks to national security, the environment, the climate, and the economy. To counter those risks, while recognizing the continued importance of safe, responsible oil and gas production to the economy, the Administration is committed to moving the Nation toward use of cleaner sources of energy with the potential to support new industries, exports, and high-quality jobs; to improve air quality and protect the climate; and to enhance America’s energy security and international competitiveness.” In addition to noting steps it has already taken to attain these goals – such as providing for energy investments through the Recovery Act, establishing motor vehicle greenhouse gas standards for model years 2012 through 2016 and doubling the renewable energy standard – the Administration elaborates on several of the proposals offered last month by the President in his State of the Union address, such as a federal clean energy standard for electricity; additional investments in energy efficiency; a “substantial” commitment to transportation infrastructure, including significant investment in high-speed rail and initiatives to achieve the goal of 1 million electric and hybrid vehicles on the road by 2016; and increased investments in energy research and development. [For further information: http://www.whitehouse.gov/administration/eop/cea/economic-report-of-the-President] (7) EPA Sued Over E15 Decision for MY 2001 through 2006 Vehicles (February 18, 2011) – Four organizations filed suit in the U.S. Court of Appeals for the District of Columbia Circuit challenging EPA’s January 26, 2011 decision to allow the use of E15 (gasoline fuel containing 15 percent ethanol) in model year (MY) 2001 through 2006 vehicles. The Alliance of Automotive Manufacturers, Association of Global Automakers, National Marine Manufacturers Association and Outdoor Power Equipment Institute did not, however, challenge EPA’s waiver for the use of E15 in MY 2007 and newer vehicles – a decision the agency announced last fall. [For further information: Air Web – Mobile Sources and Fuels Committee page] (8) NACAA Comments on EPA Proposed Residual Risk and Technology Review for Shipbuilding and Repair and Wood Furniture Manufacturing (February 22, 2011) – NACAA submitted comments on EPA’s proposed Residual

4

Risk and Technology Review for two source categories: Shipbuilding and Ship Repair and Wood Furniture Manufacturing. NACAA expressed concern about some elements of the residual risk assessment EPA used for both source categories, including the use of the centroid of the census block to estimate impacts, EPA’s reliance on actual instead of allowable emissions and why the agency did not consider certain factors recommended in the Environmental Justice Strategic Enforcement Assessment Tool. Specifically for Shipbuilding and Ship Repair, NACAA expressed concern that EPA based its decision that no additional controls are needed in part on a lack of data and urged the agency to gather additional information before determining that no further controls are warranted. The proposed rule was published in the Federal Register on December 21, 2010 (75 Federal Register 80220). [For further information: Air Web – Air Toxics Committee page and Top Headlines] (9) EPA Issues Air Toxics Standards for Sewage Sludge Incinerators (February 23, 2011) – EPA issued New Source Performance Standards and emissions guidelines for emissions of hazardous air pollutants from Sewage Sludge Incinerators (SSIs) under section 129 of the Clean Air Act. These units burn dewatered sewage sludge, usually at wastewater treatment facilities, and are typically either a multiple hearth or fluidized bed type of unit. The rule is expected to reduce emissions of mercury, metals and organic air toxics, including dioxins/furans and will likely affect 204 units across the country (although 115 are already meeting the new emissions limits). EPA estimates the annual cost to be $18 million and the benefits to be $21 million to $52 million by 2015. While the SSI rule was issued along with the Boiler and CISWI rules, it will not be included in the reconsideration that the agency plans for the other two rules. [For further information: [For further information: www.epa.gov/airquality/combustion/actions.html] (10) UNEP Releases Report Identifying Climate Benefits of Reducing Black Carbon and Tropospheric Ozone (February 23, 2011) – The UN Environment Program (UNEP) released a report touting the climate benefits of reducing emissions of black carbon and tropospheric ozone, including methane, a powerful greenhouse gas and also an ozone precursor. In the report, UNEP identifies a portfolio of measures that could halve the potential increase in global temperature projected for 2050. Targeting black carbon and methane can have an almost immediate climate benefit since they are short-lived in the atmosphere, as opposed to carbon dioxide. In addition to helping in the effort to stop global warming, full implementation of the identified measures could avoid 2.4 million premature deaths and the loss of 1 to 4 percent of the global production of maize, rice, soybean and wheat each year. The suggested black carbon reduction measures include the installation of diesel particulate filters, cleaner cookstoves and improved brick kilns, and for methane they include using landfill biogas as fuel, recovering and flaring natural gas from oil and natural gas production and managing livestock manure. [For further information: www.unep.org/dewa/Portals/67/pdf/Black_Carbon.pdf]

5

(11) Coral Reefs Threatened by Global Warming (February 23, 2011) – The World Resources Institute released a report on the status of coral reefs worldwide, finding that many of them are threatened by global warming, particularly by the increased acidification of oceans. Rising levels of carbon dioxide in the oceans are altering ocean chemistry and increasing the acidity of ocean water, reducing the saturation level of aragonite, a compound corals need to build their skeletons. By 2030, fewer than half the world’s reefs are projected to be in areas where levels of aragonite are ideal for coral growth, suggesting that coral growth rates could be dramatically reduced. By 2050, only about 15 percent of reefs will be in areas where aragonite levels are adequate for coral growth. In addition, if greenhouse gas emissions continue on a business-as-usual path, during the 2050s more than 95 percent of coral reefs will experience thermal stress sufficient to induce severe bleaching in most years. The combined impacts of ocean warming and acidification will push the percentage of threatened reefs to more than 90 percent by 2030. By 2050, nearly all reefs will be affected by warming and acidification and almost all reefs will be classified as threatened, assuming there is no change in local pressure on reefs. [For further information: http://www.wri.org/publication/reefs-at-risk-revisited]

The Week Ahead • EPA Public Hearing on Carbon Monoxide NAAQS Proposal, in Arlington, VA –

February 28, 2011 • House Energy and Commerce Subcommittee on Energy and Power Hearing

on EPA’s Greenhouse Gas Regulations and Their Effect on American Jobs, in Washington, DC – March 1, 2011

• EPA Residential Wood Smoke Workshop, in Salt Lake City, UT – March 1-3, 2011

• Senate Environment and Public Works Committee Hearing on EPA’s Fiscal Year 2012 Budget, in Washington, DC – March 2, 2011

• EPA GHG NSPS Listening Session for Petroleum Refinery Industry Representatives, in Washington, DC – March 4, 2011

NACAA 444 North Capitol Street, NW, Suite 307

Washington, DC 20001 Tel: (202) 624-7864/Fax: (202) 624-7863

4cleanair@4cleanair.org