5191069 Environment, District Department of the - Notice of Second Proposed Rulemaking - Interstate Transport of Nitrogen Oxide (NOx) Emissions from Non-Electric Generating Unit (EGU) Sources and Proposed Revision of the District’s State ...
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DISTRICT DEPARTMENT OF THE ENVIRONMENT
NOTICE OF SECOND Proposed RULEMAKING
Interstate Transport of Nitrogen Oxide (NOx) Emissions from
Non-Electric Generating Unit (EGU) Sources and Proposed
Revision of the District’s State Implementation Plan (SIP)
The Director of the District Department of the Environment (DDOE), pursuant to the authority set forth in Sections 107(4) and 110 of the District Department of the Environment Establishment Act of 2005, effective February 15, 2006 (D.C. Law 16-51; D.C. Official Code §§ 8-151.07(4) and 8-151.10 (2013 Repl.)), and Mayor’s Order 2006-61, dated June 14, 2006, hereby gives notice of the intent to adopt the following amendments to Chapters 1 (General Rules) and 10 (Nitrogen Oxides Emissions Budget Program) of Title 20 (Environment) of the District of Columbia Municipal Regulations (DCMR). These rules shall become effective in not less than thirty (30) days from the date of publication of notice in the District of Columbia Register.
This rulemaking action proposes to regulate the interstate transport of nitrogen oxides (NOx) emissions from non-electric generating unit (EGU) sources, by repealing 20 DCMR Chapter 10 in its entirety and replacing the chapter with a source-specific NOx emissions cap. Also one definition in Chapter 1 is being amended.
The proposed regulation was first published in the D.C. Register on July 22, 2011 (58 DCR 6029; Notice ID 1293415). The comment period officially closed on August 22, 2011. Comments were received from the U.S. General Services Administration (GSA). Numerous alternatives have been explored since the rulemaking was initially proposed and the District has decided to proceed with an emissions cap during ozone season to meet federal air quality requirements.
Background
NOx is a precursor to fine particulate matter (PM2.5) and ozone, two serious threats to human health in the District. PM2.5 is associated with a number of health effects including premature mortality, aggravation of respiratory and cardiovascular disease (as indicated by increased hospital admissions, emergency room visits, absences from school or work, and restricted activity days), lung disease, decreased lung function, asthma attacks, and certain cardiovascular problems such as heart attacks and cardiac arrhythmia. 70 Fed. Reg. 25162, 25168 (May 12, 2005). Short-term (1- to 3-hour) and prolonged (6- to 8-hour) exposures to ambient ozone have been linked to a number of adverse health effects, such as irritation of the respiratory system, temporary reduced lung function, aggravated asthma symptoms, and inflammation and damage to lining of the lungs, which may lead to permanent changes in lung tissue and irreversible reductions in lung function. 70 Fed. Reg. 25162, 25169 (May 12, 2005).
The District initially addressed the interstate transport of NOx emissions by adopting the Ozone Transport Commission (OTC) NOx Budget Program. The OTC is comprised of Maine, New Hampshire, Vermont, Massachusetts, Connecticut, Rhode Island, New York, New Jersey, Pennsylvania, Maryland, Delaware, the northern counties of Virginia, and the District of Columbia (“the OTC States”). In September of 1994, the OTC states (except for Virginia) agreed to a memorandum of understanding (MOU) to achieve regional emissions reductions of NOx. By signing the MOU, states committed to developing and adopting regulations that would reduce region-wide NOx emissions in 1999 and further reduce emissions in 2003.
The United States Environmental Protection Agency (EPA) promulgated a rule on October 27, 1998, known as the “NOx SIP Call,” requiring twenty-two (22) states and the District to submit state implementation plans (SIPs) that address the regional transport of ground-level ozone. 63 Fed. Reg. 57356 (October 27, 1998). The OTC states finalized a model rule to comply with EPA’s regulation in collaboration with EPA, industry, utilities, and environmental groups. The model rule imposed seasonal limits on NOx emissions and implemented a NOx emissions cap and trade program. Title 20 DCMR §§ 1000 to 1013 incorporated requirements of the OTC’s NOx Budget Program model rule through 2003.
In 2003, EPA began to administer the NOx Budget Trading Program under the NOx SIP Call. The requirements of EPA’s NOx SIP Call[1], intended to replace the OTC NOx Budget Program model rule, are incorporated by reference in 20 DCMR § 1014. The rule was in effect through 2008.
On May 12, 2005, EPA published the Clean Air Interstate Rule (CAIR),which included a finding that twenty-eight (28) States and the District of Columbia contribute significantly to the nonattainment of National Ambient Air Quality Standards (NAAQS) for PM2.5 and/or the eight (8)-hour ozone standard. 70 Fed. Reg. 25162, 25165 (May 12, 2005). CAIR requires these states to implement controls of sulfur dioxide (SO2) and/or NOx, and includes a NOx ozone season trading program intended to phase out the NOx SIP Call cap and trade program. Id. After 2008, EPA stopped administering the NOx SIP Call trading program and required NOx SIP Call states to sunset their NOx SIP Call trading program provisions.
The District did not adopt its own CAIR regulation, so instead operates under a CAIR Federal Implementation Plan (FIP) to meet its NOx SIP Call obligations for electric generating units (EGUs).[2] The District’s SIP takes credit for CAIR reductions from two EGUs at the Pepco-Benning Road facility[3]. The facility’s EGU units were shut down in 2012 and CAIR EGU allowances remain available to the owner for trading purposes.
States with non-EGU units that participated in the NOx SIP Call are required to take regulatory action to continue to meet NOx SIP Call non-EGU emissions reduction obligations adopted in their SIPs. 40 C.F.R. § 51.905. According to EPA, this can be done by adopting control measures that either: “(A) impose a NOx mass emissions cap on each source; (B) impose a NOx emissions rate limit on each source and assume maximum operating capacity for every source for the purpose of estimating mass NOx emissions; or (C) impose any other regulatory requirement which the State has demonstrated to EPA provides equivalent or greater assurance than [options A or B] that will comply with the State’s NOx budget in the 2007 ozone season.” 40 C.F.R. § 51.121(f)(2).
Summary of Rulemaking
The District currently has one (1) source that was regulated under the NOx SIP Call but was not included in CAIR because it is not an EGU: the U.S. General Services Administration Central Heating and Refrigeration Plant (GSA CHRP). The NOx SIP Call emissions limit for this NOx source was included in the District’s SIP at approximately twenty-five (25) tons per control period[4].
This rulemaking places an overall cap on GSA’s applicable units. Although the trading provisions of the NOx SIP Call have expired, the remaining provisions are still applicable. The proposed rule also includes emissions monitoring, record-keeping, and reporting requirements, along with enforceable mechanisms from the NOx SIP Call to ensure that the sources, including new or modified units, will not exceed the total NOx budget. Finally, the definitions in 20 DCMR § 1099 are being replaced. The definition of “fossil-fuel-fired” in 20 DCMR § 199 is being amended to indicate that there is a different meaning of the term in Chapter 10.
The District also proposes to repeal the outdated NOx Budget Program provisions that pre-dated the NOx SIP Call (20 DCMR §§ 1000 through 1013), because the program ended in 2003. Additionally, the NOx SIP Call provisions of 20 DCMR § 1014 are being repealed, as the trading portions do not apply to any control period after 2008 and the remaining provisions are being retained in this proposed rulemaking.
The extension of a deadline for the cap to the ozone season of 2015[5] is intended to address GSA’s concerns about being able to comply with the cap. Once finalized, this regulation will be submitted to EPA as a SIP revision to satisfy the same portion of the District’s NOx emission reduction requirements that the NOx SIP Call once satisfied.
Title 20, ENVIRONMENT, of the DCMR, Chapter 1, GENERAL RULES, is amended as follows:
199 DEFINITIONS AND ABBREVIATIONS
By amending the definition of “Fossil-fuel-fired” to read as follows:
199.1 Fossil fuel-fired – Except as used in Chapter 10, the combustion of fossil fuel or any derivative of fossil fuel, alone or in combination with any other fuel, independent of the percentage of fossil fuel consumed in any calendar year, expressed in Million British Thermal Units (MMBtu).
By amending the abbreviation of “NO[x]” to read as follows:
199.2 NOx nitrogen oxides or oxides of nitrogen
Title 20, ENVIRONMENT, of the DCMR, Chapter 10, NITROGEN OXIDES EMISSIONS BUDGET PROGRAM, is repealed and replaced with:
CHAPTER 10 – AIR QUALITY – NON-EGU LIMITS ON NITROGEN OXIDES EMISSIONS
1000 APPLICABILITY
1000.1 Beginning on May 1, 2015, this chapter applies to any new or existing nitrogen oxides (NOx) unit.
1001 NOx EMISSIONS BUDGET AND NOx LIMIT PER SOURCE
1001.1 The total amount of NOx mass emissions from all NOx budget sources during a control period shall not exceed the maximum allowable NOx budget of twenty five (25) tons per control period, which shall be allocated as follows:
General Service Administration, Central Heating and Refrigeration Plant (GSA CHRP)
Unit #3, Unit #4, and
Unit #5 (DB, CT-1, and CT-2)
25 tons per control period
1001.2 If the emissions limit specified in § 1001.1 is different from the limit specified in any permit or regulation unrelated to this chapter, the more stringent limit shall apply.
1001.3 When an entity seeks to construct and operate a new NOx unit in the District, and the Director concludes that this unit shall be authorized to emit NOx, the NOx emissions budget for the existing NOx budget source identified in § 1001.1, shall be revised by rulemaking, based on a determination by the Director that:
(a) Justifies that the cap for each NOx budget source does not exceed what is reasonable, based on historical emissions during ozone season, operational needs, and other considerations, as relevant; and
(b) Ensures that the total sum of emissions from all NOx budget sources shall not exceed the total NOx budget in § 1001.1.
1002 EMISSIONS MONITORING
1002.1 The owner or operator of each NOx budget source shall comply with the continuous emissions monitoring system (CEMS) provisions of 40 C.F.R. Part 75, subpart H. The emissions monitoring system shall:
(a) Be installed, certified, operated, maintained, and quality assured in a manner approved by the District Department of the Environment (Department) and acceptable to the United States Environmental Protection Agency (EPA).
(b) Demonstrate whether the NOx emissions exceed the maximum allowable NOx budget or source-specific NOx emission limits specified in this chapter.
1003 RECORD-KEEPING AND REPORTING
1003.1 In addition to meeting the general reporting requirements in 20 DCMR §§ 500 and 501, the owner or operator of each NOx budget source shall retain, for a period of at least five (5) years:
(a) Information on the amount of NOx emissions from the source, such as records of all measurements, data, reports, and other information required by this chapter and the provisions of 40 C.F.R. Part 75, subpart H; and
(b) Other information that:
(1) The Director concludes will enable him or her to determine whether sources are in compliance with these regulations; and
(2) Is described in one or both of the operation permits issued pursuant to 20 DCMR §§ 200.2 or 300.1 to the NOx budget source.
1003.2 The owner or operator of each NOx budget source shall begin recording data the first hour that the NOx budget source is operating for reporting purposes.
1003.3 The information in § 1003.1 shall be submitted to the Department within thirty (30) days of the end of a control period.
1003.4 Any excess emissions shall be reported to the Department in writing within two (2) working days.
1004 EXCESS EMISSIONS
1004.1 For purposes of determining the number of days of violation, if a NOx Budget unit has excess emissions for a control period, each day in the control period (153 days) constitutes a day in violation unless the owners and operators of the unit demonstrate that a lesser number of days should be considered.
1004.1 Each ton of excess emissions shall be a separate violation.
1099 DEFINITIONS
1099.1 When used in this chapter, the following terms shall have the meanings ascribed:
Continuous emissions monitoring system or CEMS – the equipment used to sample, analyze and measure air pollutants and provide a permanent record of emissions expressed in pounds per Million British Thermal Units (lb/MMBtu) and tons per day. The following component parts shall be included in a continuous monitoring system:
(a) NOx pollutant concentration monitor;
(b) Diluent gas (oxygen or carbon dioxide) monitor;
(c) Data acquisition and handling system; and
(d) Flow monitor (where appropriate).
Control period – the period beginning May 1st of each year and ending on September 30th of the same year, inclusive.
Excess emissions – the NOx emissions, in tons, that a NOx source reports during a control period that is greater than the maximum allowable NOx emissions limit in § 1001.1 of this chapter.
Fossil fuel-fired – the combustion of fossil fuel, alone or in combination with any other fuel, where fossil fuel:
(a) Actually combusted comprises more than fifty percent (50%) of the annual heat input on a British Thermal Unit (Btu) basis during any year; or
(b) Is projected to comprise more than fifty percent (50%) of the annual heat input on a Btu basis during any year, provided that the source shall be “fossil fuel-fired” as of the date, during such year, on which the source begins combusting fossil fuel.
Heat input – the product (expressed in MMBtu/time) of the gross calorific value of the fuel (expressed in Btu/lb) and the fuel feed rate into the combustion device (expressed in fuel mass/time) and does not include the heat derived from preheated combustion air, recirculated flue gases, or exhaust from other sources.
NOx budget source – a source that includes one or more NOx budget units.
NOx budget unit – a NOx unit that is subject to the NOx budget emissions limitation under § 1001.1.
NOx unit – fossil fuel-fired stationary boiler, combustion turbine, or combined cycle system that has a maximum design heat input of greater than two hundred fifty Million British Thermal Units (250 MMBtu) per hour.
Ton – any “short” ton (two thousand pounds (2,000 lb)). For the purpose of determining compliance with the NOx budget under § 1001, total tons for a control period shall be calculated as the sum of all recorded hourly emissions (or the tonnage equivalent of the recorded hourly emissions rates) in accordance with this chapter, with any remaining fraction of a ton equal to or greater than five-tenths (0.5) ton being deemed to equal one (1) ton.
Comments on these proposed rule must be submitted, in writing, no later than thirty (30) days after the date of publication of this notice in the D.C. Register to Ms. Jessica Daniels, District Department of the Environment, Air Quality Division, 1200 First Street, NE, 5th Floor, Washington, D.C. 20002 or sent electronically to jessica.daniels@dc.gov. Comments received during the previous public comment period will be considered for this comment period and do not need to be resubmitted. Copies of the proposed rule may be obtained between the hours of 9:00 a.m. and 5:00 p.m. at the address listed above for a small fee to cover the cost of reproduction or on-line at http://ddoe.dc.gov.
The Department’s policy is that public comments, whether mailed, delivered, submitted electronically on computer disks or in paper, may be made available for public viewing on its website as the Department addresses them and without change, unless the comment contains copyrighted material, confidential business information, or other information whose disclosure is restricted by statute. When the Department identifies a comment containing copyrighted material, the Department will provide a reference to that material on the website. The copyrighted material will be available in hard copy to the public.
[1] NOx SIP Call allocations initially were based on 1995 emissions extrapolated to 2007.
[2] On August 11, 2011, EPA published a final rulemaking to replace CAIR called the Cross-State Air Pollution Rule (CSAPR). 76 Fed. Reg. 48208 (August 8, 2011). On August 21, 2012, the U.S. Court of Appeals for the District of Columbia Circuit vacated CSAPR. EME Homer City Generation, L.P. v. EPA, 696 F. 3d 7 (D.C. Cir. 2012). On April 29. 2014, the U.S. Supreme Court reversed and remanded this decision. EPA v. EME Homer City Generation L.P. 134 S. Ct. 1584 (2014).
[3] Plan to Improve Air Quality in the Washington, DC-MD-VA Region: State Implementation Plan (SIP) for 8-Hour Ozone Standard, “Moderate Area SIP”, (May 23, 2007), section 6, page 6-9.
[4] Plan to Improve Air Quality in the Washington, DC-MD-VA Region: State Implementation Plan (SIP) for 8-Hour Ozone Standard, “Moderate Area SIP”, (May 23, 2007), section 6, page 6-9.
[5] Phase II of the Clean Air Interstate Rule (CAIR) goes into effect in 2015, which is eight (8) years after CAIR replaced the NOx State Implementation Plan (SIP) Call. The date is considered a sufficient extension of time for compliance.
