Reduce emission limits for all boilers & combustion turbines, redefine the mid-size boiler size, & allow a replacement option.
Public hearing(s) will be held at:
2:00 p.m., Feb. 8, 2010 at Department of Environmental Conservation, Region 8, Office Conference Rm., 6274 E. Avon-Lima Rd. (Rtes. 5 and 20), Avon, NY; 2:00 p.m., Feb. 9, 2010 at Department of Environmental Conservation, 625 Broadway, Public Assembly Rm. 129-B, Albany, NY; 2:00 p.m., Feb. 10, 2010 at Department of Environmental Conservation Annex, Region 2, 11-15 47th Ave., Hearing Rm. 106, Long Island City, NY
Interpreter Service:
Interpreter services will be made available to hearing impaired persons, at no charge, upon written request submitted within reasonable time prior to the scheduled public hearing. The written request must be addressed to the agency representative designated in the paragraph below.
Accessibility:
All public hearings have been scheduled at places reasonably accessible to persons with a mobility impairment.
Substance of proposed rule (Full text is posted at the following State website:www.dec.ny.gov):
The proposed Part 200 amendments will add the definitions for the terms boiler, combined cycle combustion turbine, combustion turbine, continuous emissions monitoring system (CEMS) certification protocol, continuous emissions monitoring system plan, emergency power generating stationary internal combustion engine, simple cycle combustion turbine, and very large boiler. These definitions are being included under Part 200 for consistency due to their use in multiple regulations. The proposed revisions will also add a reference in section 200.9, Table 1 under clause 227-2.6(b)(3)(i)('b') and streamline the existing reference under subparagraph 227-2.6(b)(3)(v).
The proposed Subpart 201-3 revisions will change the exemptions for "stationary or portable combustion installations" and "emergency power generating stationary internal combustion engines." In order to qualify for the exemption for stationary or portable combustion installations, the maximum rated heat input capacity limitation for such sources is being reduced from less than 20 mmBtu/hr to less than 10 mmBtu/hr. The provision exempting emergency power generating stationary internal combustion engines is being revised to reflect the change in the citation for the definition of "emergency power generating stationary internal combustion engine."
The following change to Subpart 201-3 is unrelated to the Subpart 227-2 revisions. The reference to Subpart 231-2 in the text of paragraph 201-3.1(c)(2) will be replaced by a reference to Part 231 generally. This revision is meant to align the text of paragraph 201-3.1(c)(2) with the revisions to Part 231 that became effective in early 2009.
The proposed Subpart 227-2 revisions will include the removal of several definitions (to be relocated in Part 200, as stated above) and revision of other definitions, a change in the application and permitting requirements, a change in emission limits for most boiler categories and combined cycle combustion turbines, and revisions to the compliance options.
Section 227-2.2 will be revised to remove the definitions of boiler, combined cycle combustion turbine, combustion turbine, continuous emissions monitoring system (CEMS) certification protocol, emergency power generating stationary internal combustion engine, preliminary continuous emissions monitoring system plan, simple cycle combustion turbine, and very large boiler. These definitions will be moved to Part 200 (preliminary continuous emissions monitoring system plan will be changed to continuous emissions monitoring system plan), as stated above. Also, the revisions will modify the terms mid-size boiler and small boiler. A mid-size boiler will now be defined as "a boiler with a maximum heat input capacity greater than 25 million Btu per hour and equal to or less than 100 million Btu per hour. A small boiler will now be defined as "a boiler with a maximum heat input capacity equal to or greater than one million Btu per hour and equal to or less than 25 million Btu per hour."
Section 227-2.3 will be revised to specifically require that subject facilities must submit an application for a Title V permit or permit modification (depending on the current facility status). The requirement to submit a compliance plan will be removed.
Section 227-2.4 will be revised to change the presumptive RACT emission limits for very large, large, mid-size boilers, and combined cycle combustion turbines. Also, the revisions will remove the 500-hour non-ozone season presumptive emission limit exemption for simple cycle combustion turbines. These turbines will now be required to meet the existing presumptive emission limits on an annual basis.
Section 227-2.5 will be revised to include a shutdown option for any subject emission source. The intent to shut down an emission source must be recorded as part of a permit modification prior to October 1, 2010, wherein the owner or operator commits to permanently shut down the emission source prior to December 31, 2012.
Text of proposed rule and any required statements and analyses may be obtained from:
Robert Stanton, P.E., NYSDEC, Division of Air Resources, 625 Broadway, Albany, NY 12233-3254, (518) 402-8403, email: 227ract@gw.dec.state.ny.us
Data, views or arguments may be submitted to:
Same as above.
Public comment will be received until:
February 17, 2010.
Additional matter required by statute:
Pursuant to Article 8 of the State Environmental Quality Review Act, a Short Environmental Assessment Form, a Negative Declaration and a Coastal Assessment Form have been prepared and are on file. This rule must be approved by the Environmental Board.
Summary of Regulatory Impact Statement
INTRODUCTION
The New York State Department of Environmental Conservation (Department) proposes to revise 6 NYCRR Part 200 and 6 NYCRR Subparts 201-3 and 227-2. 6 NYCRR Part 200, General provisions is being revised to include definitions that were previously only found in 6 NYCRR Subpart 227-2 but are now used in multiple Department regulations. Part 200 is also being revised to include all new citations of federal regulations. The revisions to 6 NYCRR Subpart 201-3, Exempt & Trivial Activities are being made to the emergency power generating stationary internal combustion engines exemption to cite the new location of the definition in Part 200. Also the exemption for stationary or portable combustion installations will be revised by lowing the applicability threshold to 10 million Btu per hour heat input. 6 NYCRR Subpart 227-2, Reasonably Available Control Technology (RACT) for Oxides of Nitrogen imposes RACT limits for emissions of NO from seven categories of stationary combustion installations. These RACT limits are a component of the State Implementation Plan (SIP) for New York State directed at attainment of the 1997 ozone national ambient air quality standard (NAAQS) and are expected to be part of the SIP that will be submitted with respect to the 2008 ozone NAAQS.1 In terms of pollution reductions, the revisions to Subpart 227-2 essentially entail the lowering of size thresholds for two categories of sources (to encompass greater numbers of emission sources in each category, however, this does not increase the overall number of emission sources regulated under this Subpart) and increasing the stringency of emissions limits for six of the source categories. The Department is also proposing two revisions that will allow subject sources increased flexibility in achieving compliance. All of the proposed revisions reflect the Department's latest determination of what constitutes RACT for the subject sources. This is a requirement flowing from the State's obligations under the Clean Air Act. This is not a mandate on local governments. It applies to any entity that owns or operates a subject source.
STATUTORY AUTHORITY
Federal Clean Air Act (CAA) Requirements Concerning Reasonably Available Control Technology (RACT) for NO Emissions for Purposes of the 1997 Ozone NAAQS
New York State is included in the Northeast Ozone Transport Region (OTR) established under CAA Section 184(a), and is a member of the Ozone Transport Commission (OTC) formed pursuant to CAA Sections 184(a) and 176A(b)(1). Under CAA Section 182(f), States must apply the same requirements to major stationary sources of NO as are applied to major stationary sources of volatile organic compounds (VOCs) in ozone NAAQS nonattainment areas.2 Among these requirements is the imposition of NO RACT statewide in the OTR under CAA Sections 182(b)(2)(C).
The New York State Legislature has accorded the New York State Department of Environmental Conservation (Department) the primary authority to formulate and implement the SIP. The provisions of State law treated below, taken together, clearly empower the Department to promulgate and implement the proposed rule provisions as SIP revisions.
Environmental Conservation Law (ECL) section 1-0101 declares it to be the policy of New York State to conserve, improve and protect its natural resources and environment and control air pollution in order to enhance the health, safety and welfare of the people of New York State and their overall economic and social well being.
ECL section 19-0103 declares that it is the policy of New York State to maintain a reasonable degree of purity of air resources, which shall be consistent with the public health and welfare and the public enjoyment thereof, the industrial development of the State, and to that end to require the use of all available practical and reasonable methods to prevent and control air pollution in the State.
ECL section 19-0105 declares that it is the purpose of Article 19 of the ECL to safeguard the air resources of New York State under a program which is consistent with the policy expressed in Section 19-0103 and in accordance with other provisions of Article 19.
ECL section 19-0301 declares that the Department has the power to promulgate regulations for preventing, controlling or prohibiting air pollution and shall include in such regulations provisions prescribing the degree of air pollution that may be emitted to the air by any source in any area of the State.
ECL section 19-0303 provides that the terms of any air pollution control regulation promulgated by the Department may differentiate between particular types and conditions of air pollution and air contamination sources.
ECL section 19-0305 authorizes the Department to enforce the codes, rules and regulations established in accordance with Article 19.
ECL section 19-0311 directs the Department to establish an operating permit program for sources subject to Title V of the CAA.
LEGISLATIVE OBJECTIVES
The legislative objectives underlying the above-referenced statutory authority are essentially directed toward protecting public health and the environment. By promulgating and implementing the proposed revisions to Subpart 227-2, the Department will be amending a regulation to impose more stringent emission limits on major stationary sources of NO that contribute to local and regional nonattainment of the 1997 and 2008 ozone NAAQS.
NEEDS AND BENEFITS
Ozone – Causes and Effects:
There are two types of ozone, stratospheric and ground level ozone. Ozone in the stratosphere is naturally occurring and is desirable because it shields the earth from harmful ultraviolet rays from the sun which may cause skin cancer. In contrast, ground level ozone or smog, which results from the mixing of VOCs and NO on hot sunny summer days, can harm humans and plants. The primary ozone NAAQS was established by EPA at a level that is requisite to protect the public health. In the northeastern United States, the ozone nonattainment problem is pervasive as concentrations of ozone often exceed the level of the NAAQS by mid-afternoon on a summer day. The contiguous metropolitan areas of Washington, D.C., Baltimore, Philadelphia, New York, and Hartford are designated ozone nonattainment areas.
In July 2006, EPA recognized a number of epidemiological and controlled human exposure studies that suggest that asthmatic individuals are at greater risk for a variety of ozone-related effects including increased respiratory symptoms, increased medication usage, increased doctors visits, emergency department visits, and hospital admissions; provide highly suggestive evidence that short-term ambient ozone exposure contributes to mortality; and report health effects at ozone concentrations lower than the level of the current standards, as low as 0.04 parts per million (ppm) for some highly sensitive individuals. ‘See' ‘Fact Sheet: Review of National Ambient Air Quality Standards for Ozone Second Draft Staff Paper, Human Exposure and Risk Assessments and First Draft Environmental Report', U.S. Environmental Protection Agency, July 2006.
Nonattainment Area Designations and Classifications for the 1997 and 2008 ozone NAAQS
EPA promulgated nonattainment area designations for the 1997 ozone NAAQS during April 2004. ‘See Air Quality Designations and Classifications for the 8-Hour Ozone NAAQS', 69 Fed. Reg. 23,858 (April 30, 2004) (codified at 40 CFR Sections 81.300-356) (the Designations Rule). EPA designated various areas in New York State as nonattainment and classified the areas under either Subpart 1 or Subpart 2 of Part D of Title 1 of the CAA (Part D of Title 1 sets forth the programmatic SIP requirements applicable to nonattainment areas).
Under the Designations Rule, the following areas in New York State were designated as nonattainment:
1. Jefferson County
2. Poughkeepsie (encompassing Dutchess, Putnam, and Orange counties)
3. New York City metropolitan area (encompassing Bronx, Kings, Nassau, New York, Queens, Richmond, Rockland, Suffolk, and Westchester counties)
5. Essex County (the portion of Whiteface Mountain above 1,900 feet in elevation)
6. Jamestown (Chautauqua County)
7. Rochester (encompassing Genesee, Livingston, Monroe, Ontario, Orleans, and Wayne counties)
On March 12, 2009, the Department recommended the following areas be designated nonattainment with the 2008 ozone NAAQS of 0.075 parts per million:
New York City Metropolitan Area – Bronx, Kings, Nassau, New York, Queens, Richmond, Rockland, Suffolk and Westchester counties:
Poughkeepsie-Newburgh-Kingston Metropolitan Area – Dutchess, Orange, Putnam and Ulster counties;
Albany-Schenectady-Troy-Glens Falls Metropolitan Areas – Albany, Columbia, Greene, Montgomery, Rensselaer, Saratoga, Schenectady, Schoharie, Warren and Washington counties;
Rochester Metropolitan Area – Genesee, Livingston, Ontario, Orleans, Monroe and Wayne counties;
Buffalo-Niagara Falls Metropolitan Area – Erie and Niagara counties; and,
Jamestown Metropolitan Area – Chautauqua County.
As can be seen by the above listing, ozone nonattainment is a pervasive problem that exists in areas throughout the State.
Measures Taken to Reduce Ozone:
The Department has promulgated several NO RACT regulations that apply to various other source categories throughout New York State. These categories include cement kilns (6 NYCRR Part 220), iron and steel process sources (6 NYCRR Part 216), coke oven batteries (6 NYCRR Part 214), and general process NO sources (6 NYCRR Part 214). All of these regulations will assist in bringing all areas in the State into attainment with the NAAQS for ozone. The compilation of these control programs constitutes the NO portion of the ozone NAAQS nonattainment SIP for New York State.
Through the present rule making, the Department is proposing to require stricter NO emissions limits on 766 boilers and 55 combined cycle combustion turbines of various sizes that will reduce their potential NO emissions from the current level of 225,708 tons per year down to 109,619 tons per year (based on an average 50 percent reduction). The Department projects that the actual reductions of NO will be considerably less. Based on the 2007 NO emissions data from these sources, the boilers and turbines that will be affected by this rule making emitted approximately 58,000 tons. Based on operating and compliance assumptions made by the Department, it is expected that the proposed NO RACT limitations will result in an emission reduction of 28,796 tons per year of NO or a daily reduction of 78.9 tons from 2007 levels.
COSTS
Costs to Regulated Parties and Consumers:
The cost to install RACT will vary depending on the size and fuel type of the boilers that are affected by this proposed regulation and the type of control technology used. The following table lists the average RACT costs in dollars per ton of NO reduced for very large, large, and mid-size boilers:
Gas
Gas/Oil
Distillate
Residual
Solid Fuel
Very Large
5,455
4,824
Not Applicable
Not Applicable
2,741
Large
5,463
5,500
Not Applicable
Not Applicable
4,415
Mid-size
2,617
Not Applicable
3,132
3,200
Not Applicable
The Department proposes to require owners and/or operators of all affected small boilers to conduct an annual tune-up. The average annual tune-up cost will be approximately $3,500 per ton of NO reduced. Finally, the Department proposes to require owners and/or operators of combined cycle combustion turbines to conduct a case-by-case RACT analysis. The control technologies that are now available are far more advanced than the control technologies that were considered when the Department established the presumptive RACT emissions limits in the current version of Subpart 227-2 for combined cycle combustion turbines. Currently, there are several retrofit control technologies commercially available for these turbines. This list includes selective catalytic reduction, selective non-catalytic reduction, increased water or steam injection, dry low NO technology, and other possible combustion canister modifications. Given the various ages, sizes, and types of combustion turbines that will be affected, it was not possible to determine a cost for retrofitting based on a single prescribed RACT limit. Therefore, the Department has determined that it would be better to have each individual facility conduct a case-by-case RACT analysis (this is a top down analysis that would require a facility to list then price each control technology that is technically available). The facility will apply the most stringent retrofit controls, based on the results of this analysis, which are economically feasible (on a dollars per ton of NO removed basis) for that particular combustion turbine.
Costs to State and Local Governments:
As noted earlier, this requirement flows from the State's obligations under the CAA. This is not a mandate on local governments. It applies equally to any entity that owns or operates a subject source. Some State and local entities will be affected by this proposed regulation. The Department estimates that the cost for municipally owned facilities to install NO RACT is approximately $3,774 per ton of NO reduced. The total tons of NO reduced from the 26 municipally owned facilities are projected to be 1,770 tons annually. The NO tonnage to be reduced was calculated by multiplying the percent reductions for each control technology by the current potential to emit (these potential emissions are based on currently permitted NO emission rates for the 26 facilities). Therefore, the total estimated cost of this rule revision to the subject municipal facilities will be approximately $6,679,000. The cost estimate for NO reductions from the combined cycle turbine at the Jamestown owned facility must be calculated on a case-by-case basis, so no cost estimate has been included in this analysis.
Costs to the Regulating Agency:
The authority and responsibility for implementing Subpart 227-2 lies solely with the Department. The proposed rule revisions have been developed to minimize the administrative cost burden to the Department. Each subject facility is required to have a Title V facility permit under 6 NYCRR Subpart 201-6. Permit revisions will be necessary to account for the changes to Subpart 227-2 and the revised permit conditions will be incorporated into each relevant permit by Department staff.
LOCAL GOVERNMENT MANDATES
This is not a mandate on local governments. No additional requirements beyond compliance with the proposed regulation will be put on local governments.
PAPERWORK
The proposed revisions to Subpart 227-2 will create little additional paperwork for affected facilities. Depending on the type of affected source there may be application submission requirements, minimal additional recordkeeping and reporting, and the requirement to submit testing protocols and test results.
DUPLICATION
The proposed revisions to Subpart 227-2 do not duplicate, overlap, or conflict with any other State or federal requirements.
ALTERNATIVES
The following alternative has been evaluated to address the goals set forth above:
Take no action: The "take no action" alternative is not acceptable because failure to adopt this regulation will seriously impede New York State's ability to attain the ozone NAAQS. The proposed revisions to Subpart 227-2, in combination with the implementation of other regulations (concerning NO RACT limits for cement kilns, glass manufacturing facilities, and asphalt plants), will help New York State achieve compliance with the 1997 ozone NAAQS. On February 8, 2008, the Department submitted an attainment demonstration to EPA that documents how the State will attain the 1997 ozone NAAQS. While the Department expects the Albany-Schenectady-Troy-Glens Falls, Rochester, Buffalo-Niagara Falls and Jamestown nonattainment areas to come into attainment by 2009, the Department believes that it will take until 2012 for the New York City metro and Poughkeepsie-Newburgh-Kingston nonattainment areas to achieve attainment.
FEDERAL STANDARDS
The proposed rule does not exceed any minimum federal standards.
COMPLIANCE SCHEDULE
The Department proposes to promulgate the revisions to Subpart 227-2 by December 2009. Any facility that contains a source that becomes newly subject to the regulation will be required to complete and submit an application for a permit or permit modification by no later than January 1, 2011. Any facility that is subject to new or revised control requirements under section 227-2.4 must be in compliance with the relevant requirements by July 1, 2012.
_______ 1 On July 18, 1997, EPA promulgated primary and secondary ozone NAAQS of 0.08 parts per million (ppm)(the 1997 ozone NAAQS). ‘See National Ambient Air Quality Rule for Ozone’, 62 Fed. Reg. 38,856 (July 18, 1997) (codified at 40 CFR section 50.10). The standard is attained when the 3-year average of the annual fourth-highest daily maximum 8-hour average ambient air quality ozone concentration is less than or equal to 0.08 ppm. When the standard rounding conventions are used, this standard is measured as 0.084 ppm. On March 27, 2008, EPA promulgated revised ozone NAAQS and set the new primary and secondary standards at 0.075 ppm (the 2008 ozone NAAQS). ‘See National Ambient Air Quality Standards for Ozone’, 73 Fed. Reg. 16436 (March 27, 2008) (codified at 40 CFR section 50.15). Attainment of the 2008 ozone NAAQS is determined in the same manner as with the 1997 ozone NAAQS. 2Within the OTR, any source that emits or has the potential to emit at least 50 tons per year of VOCs is considered a “major stationary source” and is subject to the requirements that are applicable to major stationary sources in moderate nonattainment areas under CAA section 184(b)(2). However, under CAA section 302, and section 182(c), (d), and (e), the emission thresholds for major stationary sources of NO in the OTC vary from 100 to 10 tons per year depending on the area’s designation and classification. For portions of the OTR that are designated as attainment or unclassifiable, or classified as moderate nonattainment, a major stationary source of NO is one that emits more than 100 tons of NO per year; in portions of the OTC classified a serious nonattainment the emissions threshold is 50 tons of NO per year.
Regulatory Flexibility Analysis
EFFECTS ON SMALL BUSINESS AND LOCAL GOVERNMENTS:
The New York State Department of Environmental Conservation (Department) proposes to revise 6 NYCRR Part 200 and 6 NYCRR Subparts 201-3 and 227-2. The proposed rulemaking will apply statewide. Small businesses are those that are independently owned, located within New York State, and that employ 100 or fewer persons. The proposed revisions to the RACT requirements of Subpart 227-2 flow from the State's obligations under the federal Clean Air Act. Therefore, the proposed revisions do not constitute a mandate on local governments. RACT requirements apply equally to every entity that owns or operates a subject source.
COMPLIANCE REQUIREMENTS:
The revisions to Part 200 and Subparts 201-3 and 227-2 do not substantially alter the current requirements for the permitting of major stationary sources in New York State. As such, the professional services that will be needed by any facility located in a rural area are not anticipated to significantly change from the type of services that are currently required to comply with NO RACT requirements. In terms of pollution reductions, the revisions to Subpart 227-2 essentially entail the lowering of size thresholds for two categories of sources (to encompass greater numbers of emission sources in each category; however, this does not increase the overall number of emission sources regulated under this Subpart) and increasing the stringency of emissions limits for six of the source categories. The Department is also proposing two revisions that will allow subject sources increased flexibility in achieving compliance.
The existing compliance options which include fuel switching, system wide averaging (this compliance option will be expanded to allow multiple owners to combined their facilities under a system wide average), and the allowance of an alternative emissions limit will also remain. The proposed regulation will include a "shut down" compliance option. This option will allow a facility to permit the shut down of any combustion source regulated by this Subpart (by a specific date). The proposed revisions will change the definitions of small boiler and mid-size boiler by expanding the size thresholds downward for both size categories of boilers (for small boilers the definition will be changed from a heat input range of greater than or equal to 20 mmBtu/hr to less than 50 mmBtu/hr to a heat input range of greater than or equal to one mmBtu/hr to less than 25 mmBtu/hr, and for mid-size boilers the definition will be changed from a heat input range of greater than or equal to 50 to less than 100 mmBtu/hr to a heat input range of greater than or equal to 25 to less than 100 mmBtu/hr). The proposed regulations will also lower the prescribed emission limits for mid-size boilers, large boilers, very large boilers, and require a case-by-case RACT analysis for combined cycle combustion turbines. The proposed revisions will also eliminate the emission limit exemption for simple cycle combustion turbines that operate for less than 500 hours per year during the non-ozone season. These turbines will be required to meet their prescribed emission limits all year long. All of the proposed revisions reflect the Department's latest determination of what constitutes RACT for the subject sources. The Department does not anticipate that any of the proposed rule revisions would adversely affect jobs or employment opportunities in the State.
PROFESSIONAL SERVICES:
The professional services for any small business or local government that is subject to Subpart 227-2 are not anticipated to significantly change from the type of services which are currently required to comply with the existing NO RACT requirements. The need for consulting engineers to address NO RACT applicability and permitting requirements and to perform compliance testing for any affected sources proposed by a small business or local government will continue to exist.
COMPLIANCE COSTS:
The cost to install RACT will vary depending on the size and fuel type of the boilers that are affected by this proposed regulation and the type of control technology used. The following table lists the average RACT costs in dollars per ton of NO reduced for very large, large, and mid-size boilers:
Gas
Gas/Oil
Distillate
Residual
Solid Fuel
Very Large
5,455
4,824
Not Applicable
Not Applicable
2,741
Large
5,463
5,500
Not Applicable
Not Applicable
4,415
Mid-size
2,617
Not Applicable
3,132
3,200
Not Applicable
The Department proposes to require owners and/or operators of all affected small boilers to conduct an annual tune-up. The average annual tune-up cost will be approximately $3,500 per ton of NO reduced. Finally, the Department proposes to require owners and/or operators of combined cycle combustion turbines to conduct a case-by-case RACT analysis. The control technologies that are now available are far more advanced than the control technologies that were considered when the Department established the presumptive RACT emissions limits in the current version of Subpart 227-2 for combined cycle combustion turbines. Currently, there are several retrofit control technologies commercially available for these turbines. This list includes selective catalytic reduction, selective non-catalytic reduction, increased water or steam injection, dry low NO technology, and other possible combustion canister modifications. Given the various ages, sizes, and types of combustion turbines that will be affected, it was not possible to determine a cost for retrofitting based on a single prescribed RACT limit. Therefore, the Department has determined that it would be better to have each individual facility conduct a case-by-case RACT analysis (this is a top down analysis that would require a facility to list then price each control technology that is technically available). The facility will apply the most stringent retrofit controls, based on the results of this analysis, which are economically feasible (on a dollars per ton of NO removed basis) for that particular combustion turbine.
MINIMIZING ADVERSE IMPACT:
The proposed rulemaking revisions as described above are not expected to create significant adverse impacts on existing small businesses or local governments. The new emission limits proposed in this regulation will also be adopted across all of the Ozone Transport Commission (OTC) states, and are required by all major sources of NO in nonattainment areas and the Ozone Transport Region under the federal Clean Air Act. Therefore, New York will be no more stringent than the other OTC states and will not create an unfair disadvantage to small businesses or local governments in New York State.
SMALL BUSINESS AND LOCAL GOVERNMENT PARTICIPATION:
The Department held a stakeholder meeting on May 31, 2008 for facilities subject to Subpart 227-2 and environmental groups. The Department gave a presentation that outlined the proposed changes and accepted comments from the stakeholders that attended the presentation (the attendees included small business owners and local governments). Based on the comments received the department made some changes to the proposed revisions to Subpart 227-2. The most significant change was to raise the proposed very large coal fired boiler limit from 0.08 pounds per million Btu (lb/mmBtu) for all firing configurations, to 0.12 lb/mmBtu for wall and tangentially fired coal boilers, and to 0.20 lb/mmBtu for cyclone fired coal boilers.
On March 9, 2009 the Department met with the Department of Public Service (DPS) to discuss the proposed changes to Subpart 227-2. DPS had two concerns, first the affect of the rule on reliability. Their second concern focused on the rules affected on local government owned utilities. The Department accepted comments from DPS and made changes to the proposed regulations based on these comments.
The Department hosted a Business Council of New York meeting on June 29, 2009. The list of attendees included both subject small business owners and local governments. During this meeting Department staff outlined the progress of the Subpart 227-2 rulemaking and answered questions of the attendees. There were no substantial comments or questions regarding the proposed revisions to Subpart 227-2 raised during this question and answer session.
Finally, small businesses and local governments will be given additional opportunities to participate in the rule making process. The proposed revisions will undergo publication of general notice in both the "Environmental Notice Bulletin" and "State Register". The Department will also hold public hearings, during the notice period, to allow those interested parties and facilities owned by small businesses and local governments a chance to comment on the proposed regulation.
ECONOMIC AND TECHNOLOGICAL FEASIBILITY:
As noted earlier, this requirement flows from the State's obligations under the CAA. This is not a mandate on local governments. It applies equally to any entity that owns or operates a subject source. Some State and local entities will be affected by this proposed regulation. Twenty-six of the affected facilities are owned by local municipalities and contain 117 affected sources that may be subdivided as: 25 small boilers; 76 mid-size boilers; six large boilers; one very large boiler; eight simple cycle combustion turbines, and one combined cycle combustion turbine. The Department estimates that the cost for municipally owned facilities to install NO RACT is approximately $3,774 per ton of NO reduced. The total tons of NO reduced from the 26 municipally owned facilities are projected to be 1,770 tons annually. The NO tonnage to be reduced was calculated by multiplying the percent reductions for each control technology by the current potential to emit (these potential emissions are based on currently permitted NO emission rates for the 26 facilities). Therefore, the total estimated cost of this rule revision to the subject municipal facilities will be approximately $6,679,000. The cost estimate for NO reductions from the combined cycle turbine at the Jamestown owned facility must be calculated on a case-by-case basis, so no cost estimate has been included in this analysis.
Rural Area Flexibility Analysis
TYPES AND ESTIMATED NUMBERS OF RURAL AREAS AFFECTED:
The New York State Department of Environmental Conservation (Department) proposes to revise 6 NYCRR Part 200 and 6 NYCRR Subparts 201-3 and 227-2. The proposed rulemaking will apply statewide and all rural areas of New York State will be affected.
Rural areas are defined as rural counties in New York State that have populations less than 200,000 people, towns in non-rural counties where the population densities are less than 150 people per square mile and villages within those towns.
COMPLIANCE REQUIREMENTS:
The revisions to Part 200 and Subparts 201-3 and 227-2 do not substantially alter the requirements for the permitting of major stationary sources which are currently in effect in New York State. As such, the professional services that will be needed by any facility located in a rural area are not anticipated to significantly change from the type of services which are currently required to comply with NO RACT requirements. In terms of pollution reductions, the revisions to Subpart 227-2 essentially entail the lowering of size thresholds for two categories of sources (to encompass greater numbers of emission sources in each category, however, this does not increase the overall number of emission sources regulated under this Subpart) and increasing the stringency of emissions limits for six of the source categories. The Department is also proposing two revisions that will allow subject sources increased flexibility in achieving compliance.
The existing compliance options which include fuel switching, system wide averaging (this compliance option will be expanded to allow multiple owners to combined their facilities under a system wide average), and the allowance of an alternative emissions limit will also remain. The proposed regulation will include a "shut down" compliance option. This option will allow a facility to permit the shut down of any combustion source regulated by this Subpart (by a specific date). The proposed revisions will change the definitions of small boiler and mid-size boiler by expanding the size thresholds downward for both size categories of boilers (for small boilers the definition will be changed from a heat input range of greater than or equal to 20 mmBtu/hr to less than 50 mmBtu/hr to a heat input range of greater than or equal to one mmBtu/hr to less than 25 mmBtu/hr, and for mid-size boilers the definition will be changed from a heat input range of greater than or equal to 50 to less than 100 mmBtu/hr to a heat input range of greater than or equal to 25 to less than 100 mmBtu/hr). The proposed regulations will also lower the prescribed emission limits for mid-size boilers, large boilers, very large boilers, and require a case-by-case RACT analysis for combined cycle combustion turbines. The proposed revisions will also eliminate the emission limit exemption for simple cycle combustion turbines that operate for less than 500 hours per year during the non-ozone season. These turbines will be required to meet their prescribed emission limits all year long. All of the proposed revisions reflect the Department's latest determination of what constitutes RACT for the subject sources. The Department does not anticipate that any of the proposed rule revisions would adversely affect jobs or employment opportunities in the State.
COSTS:
The cost to install RACT will vary depending on the size and fuel type of the boilers that are affected by this proposed regulation and the type of control technology used. The following table lists the average RACT costs (based on technologies that are at or below $5,550 per ton) in dollars per ton of NO reduced for very large, large, and mid-size boilers:
Gas
Gas/Oil
Distillate
Residual
Solid Fuel
Very Large
5,455
4,824
Not Applicable
Not Applicable
2,741
Large
5,463
5,500
Not Applicable
Not Applicable
4,415
Mid-size
2,617
Not Applicable
3,132
3,200
Not Applicable
The Department proposes to require owners and/or operators of all affected small boilers to conduct an annual tune-up. The average annual tune-up cost will be approximately $3,500 per ton of NO reduced. Finally, the Department proposes to require owners and/or operators of combined cycle combustion turbines to conduct a case-by-case RACT analysis. The control technologies that are now available are far more advanced than the control technologies that were considered when the Department established the presumptive RACT emissions limits in the current version of Subpart 227-2 for combined cycle combustion turbines. Currently, there are several retrofit control technologies commercially available for these turbines. This list includes selective catalytic reduction, selective non-catalytic reduction, increased water or steam injection, dry low NO technology, and other possible combustion canister modifications. Given the various ages, sizes, and types of combustion turbines that will be affected, it was not possible to determine a cost for retrofitting based on a single prescribed RACT limit. Therefore, the Department has determined that it would be better to have each individual facility conduct a case-by-case RACT analysis (this is a top down analysis that would require a facility to list then price each control technology that is technically available). The facility will apply the most stringent retrofit controls, based on the results of this analysis, which are economically feasible (on a dollars per ton of NO removed basis) for that particular combustion turbine.
MINIMIZING ADVERSE IMPACT:
The proposed rulemaking revisions as described above are not expected to create significant adverse impacts on existing rural areas. The new emission limits proposed in this regulation will also be adopted across all of the Ozone Transport Commission (OTC) states. Therefore, New York will be no more stringent than the other OTC states and will not create an unfair disadvantage to rural areas in New York State.
RURAL AREA PARTICIPATION:
Rural areas will be given opportunities to participate in the rule making process. The proposed revisions will undergo a publication of general notice in both the "Environmental Notice Bulletin" and "State Register". The Department will also hold public hearings, during the notice period, to allow those interested parties and facilities located in rural areas a chance to comment on the proposed regulation.
Job Impact Statement
NATURE OF IMPACT:
The New York State Department of Environmental Conservation (Department) proposes to revise 6 NYCRR Part 200 and 6 NYCRR Subparts 201-3 and 227-2. The proposed rulemaking will apply statewide. This regulation imposes RACT limits for emissions of nitrogen oxides (NO) from seven categories of stationary combustion installations. These RACT limits are a component of New York's State Implementation Plan (SIP) for attainment of the 1997 8-hour ozone national ambient air quality standard (NAAQS).1 On March 12, 2008, EPA promulgated a stricter ozone NAAQS. On March 12, 2009, the Department after analyzing measured ozone data for the years 2006 – 2008 recommended that the New York City, Poughkeepsie-Newburgh-Kingston, Albany-Schenectady-Troy-Glens Falls, Rochester, Buffalo-Niagara Falls and Jamestown metropolitan areas be designated nonattainment for the 2008 ozone NAAQS.
The revisions to Part 200 and Subparts 201-3 and 227-2 are among a series of sustained actions undertaken by New York State, in conjunction with EPA and other States, to control emissions of ozone precursors, including nitrogen oxides and VOCs, so that New York State and States in the OTR may attain the ozone NAAQS. In particular, the revisions to Subpart 227-2 will be consistent with the NO RACT regulations in other states throughout the OTR.
In terms of pollution reductions, the revisions to Subpart 227-2 essentially entail the lowering of size thresholds for two categories of sources (to encompass greater numbers of emission sources in each category, however, this does not increase the overall number of emission sources regulated under this Subpart) and increasing the stringency of emissions limits for six of the source categories. The Department is also proposing two revisions that will allow subject sources increased flexibility in achieving compliance.
The existing compliance options which include fuel switching, system wide averaging (this compliance option will be expanded to allow multiple owners to combined their facilities under a system wide average), and the allowance of an alternative emissions limit will also remain. The proposed regulation will include a "shut down" compliance option. This option will allow a facility to permit the shut down of any combustion source regulated by this Subpart (by a specific date). The proposed revisions will change the definitions of small boiler and mid-size boiler by expanding the size thresholds downward for both size categories of boilers (for small boilers the definition will be changed from a heat input range of greater than or equal to 20 mmBtu/hr to less than 50 mmBtu/hr to a heat input range of greater than or equal to one mmBtu/hr to less than 25 mmBtu/hr, and for mid-size boilers the definition will be changed from a heat input range of greater than or equal to 50 to less than 100 mmBtu/hr to a heat input range of greater than or equal to 25 to less than 100 mmBtu/hr). The proposed regulations will also lower the prescribed emission limits for mid-size boilers, large boilers, very large boilers, and require a case-by-case RACT analysis for combined cycle combustion turbines. The proposed revisions will also eliminate the emission limit exemption for simple cycle combustion turbines that operate for less than 500 hours per year during the non-ozone season. These turbines will be required to meet their prescribed emission limits all year long. All of the proposed revisions reflect the Department's latest determination of what constitutes RACT for the subject sources. The Department does not anticipate that any of the proposed rule revisions would adversely affect jobs or employment opportunities in the State.
CATEGORIES AND NUMBERS OF JOBS OR EMPLOYMENT OPPORTUNITIES AFFECTED:
Due to the nature of the proposed amendments to Subpart 227-2, as discussed above, no measurable effect on the categories or numbers of jobs, or employment opportunities in any specific category is anticipated. There will be some new jobs or employment opportunities created for consultants for RACT and permit reviews. There will also be employment opportunities created for monitoring and compliance testing. Finally, there will be employment opportunities created for air pollution control companies to install control technologies that will required for facilities to meet the proposed RACT limits.
REGIONS OF ADVERSE IMPACT:
There are no regions of the State where the proposed revisions would have a disproportionate adverse impact on jobs or employment opportunities. Also, the proposed NO RACT requirements are not being substantially changed from those that currently exist.
MINIMIZING ADVERSE IMPACT:
The proposed rulemaking revisions as described above are not expected to create significant adverse impacts on existing jobs or the promotion of the development of any significant new employment opportunities. The new emission limits proposed in this regulation will also be adopted across all of the Ozone Transport Commission (OTC) states. Therefore, New York will be no more stringent than the other OTC states and will not create an unfair disadvantage to businesses in New York State.
SELF-EMPLOYMENT OPPORTUNITIES:
The types of facilities affected by these regulatory changes are larger operations than what would typically be found in a self-employment situation. There may be an opportunity for self-employed consultants to advise facilities on how best to comply with the revised requirements or conduct monitoring and/or testing of an affected facility's sources. The proposed revisions are not expected to have any measurable negative impact on opportunities for self-employment.
______ 1 On July 18, 1997, EPA promulgated primary and secondary ozone NAAQS of 0.08 parts per million (ppm)(the 8-hour ozone NAAQS). See National Ambient Air Quality Rule for Ozone, 62 Fed. Reg. 38,856 (July 18, 1997) (codified at 40 CFR § 50.10). The standard is attained when the 3-year average of the annual fourth-highest daily maximum 8-hour average ambient air quality ozone concentrations is less that or equal to 0.08 ppm. When the standard rounding conventions are used, this standard is measured as 0.084 ppm.
