Jpff iceiof Regujatply Erjf orSffflSK^Sss Protecting the Quality of Our Nation's Air EPA Targets Air Pollution From Ethanol Facilities: VOC Emissions Higher Than Previously Believed The UjaitedJStatesJBnvkonmental Protection Agency (EPA), work- ing closely with several state; agen- cies, recently determined that etha- nol facilities emit some air pollutants Assurance ;o inform ]mdj!duc|te"!:: the publican d regulated cpmrfiuhity "J about impS^^^ggg^p^t^,, enfbrceiyiefi t tesijeg, IficintMrlds, ft regulated 6i5npipjTiJy Ifftigipate ;2 and pn^l^ pa|fl|pjgj^^r^ - ^hyirppjierrf^^SffiSfflKS^ otheffl^I |gad ^^Mp^gniMftt^S action. RepW^ctmff^ayg, W^ J!3 xlisserhihattoaofthislSublicafipn';:;; are' enc^u|^;p;^gg|§C!| DoculrtffHl: Number-lHPft 3Z5-N-03-QOZ3S •' "•.~"-' in greater quantities than previously reported. These emission tests con- ducted by Minnesota, Indiana, and Il- linois sources triggered concern be- cause emissions of several criteria pollutants were much higher than per- mitted by those states and EPA. For example;, volatile organic compound (VOC) omissions were found to be approximately 10 times higher than the limits in the facilities' permits and in- cluded at least 2 previously unidenti- fied hazardous air pollutants (HAPs), acroleurand acetaldehyde. In addi- tion, a recent test conducted by an Illinois source showed that carbon monoxide (CO) emissions were even higher than the VOC emissions. This led EPA to believe that ethanol facili- ties were failing to accurately esti- - mate emissions from hundreds of pro- cess units and constructing or expand- ing other units without the installation of air pollution control technology re- quired under the Clean Air Act (CAA).; Originally, ethanol facilities were permitted with limits based on the emission characterizations of only ethanol and methanol; it was not until odor problems were identified by some state regulators that total vola- tile organic compounds (VOCs) were measured and analyzed. Industry-wide, these uncontrolled facilities are "major sources" of air pollution and are, therefore, subject to the CAA's New Source Review/Pre- vention of Significant Deterioration (NSR/PSD) requirements. In addition, certain New Source Performance Standards (NSPS) under the CAA apply. As such, the ethanol facilities should have applied for appropriate preconstruction and operating permits at the time they were constructed and they should have installed the required equipment to reduce emissions of air tr -rv . ... . fj g a material, mostcommonlyj iiaa^^ irecent years, ethanol has )gasQlme^oyvdnguieg^soh^ej production facilities caq y I^y^j|^^^J™~™~° onFage j/ Htnanol rrocess ------- Enforcement Alerti pollutants. Recent EPA Enforce- ment Settlements With Ethanol Facilities 12 Minnesota Dry Mills Once EPA determined that air emissions were not permitted, the Agency approached a number of ethanol producers to resolve these- alleged violations. During the sum- mer of 2002,12 ethanol facilities in Minnesota entered into negotiations with EPARegion 5 and the U.S. De- partment of Justice (DOJ). Consent decrees for all 12 facilities were lodged on October 2, 2002. The settlement terms for the Minnesota facilities require that every facility in- stall Best Available Control Technol- ogy (B ACT) and meet B ACT-level emission limits. As part of the settle- ment, each facility was allowed to decide whether it wanted to continue to be a major source or whether it wanted to take an emissions cap that would keep;it at "synthetic minor" source levels. Regardless of the facility's decision, the facility was re- quired to install B ACT. Of the 12 Minnesota facilities, 2 chose to re- main major Sources and will submit PSD permit applications under the terms of the consent decree. The 10 remaining facilities believe that with BACT-level controls they will be .abletojeniainundersynthetic minor. source emission thresholds. All 12 will limit their HAP emissions under \ major source levels of 10 tons per year (tpy) for each pollutant and 24 tpy combined. All 12 sources cur- rently have installed, or are in the pro- cess of installing, the required con- trol equipment. These settlements will result in emission reductions of 2,400 tpy of VOCs (includes 250 tpy of HAPs); 2,000 tpy of CO; 180 tpy nitrogen oxides (NOx); and 240 tpy particula :e matter (PM) and PM- 10. Each facility also paid a civil penalty ranging from $18,000 to $42,000. Archer Daniels Midland Archer Daniels Midland Company (ADM) is the largest producer of etha- nol in the United States supplying 50 percent of the market. ADM also pro- duces other corn products including sweeteners, starch, oil, and meal from its 7 corn mills. ADM is thought to be the largest producer of domestic veg- etable oils with 28 plants,' wKere it employs a solvent extraction process to separate oils from soybeans, sun- flowers, cottonseeds, peanuts, and canola. On April 9,2003, DOJ, along with state and local government co- plaintiffs, and EPA, announced a landmark settlement with ADM that will cover operations at 52 facilities in 16 states. The settlement is the result of an unprecedented joint fed- eral and state enforcement effort with Proper Emissions Sampling from Ethanol Facilities Industry, previous testing was typically done using EPAMethods 18 or 308. These methods are used exclusively to [quantify the emissions of specific VOCs. | Because of the complex nature of their organic compound emissions, ethanol facilities began using tests such as EPA Method 25 to quantify the emissions of all organic compounds. However, such methods only quantify the total mass of the carbon in the VOCs being emitted. Additional analysis is needed to convert that number to the total mass of VOCs being emitted. ; EPA's Headquarters, Regions 5 and 7, and the Office of Air Quality Planning and Standards, in conjunction with [companies experienced in stack testing for VOCs, created a method to quantify the average molecular weight-to- [carbon weight ratio for each dryer tested. This method, now called the Midwest Scaling Method, involves the use of [EPAMethod 18 as well as portions of National Council ofthe Paper Industry for Air and Stream Improvement (NCASI) {Methods 94.02 and 98.01. In addition, EPA simplified this method by identifying a handful of compounds deemed to have the most significant effect on the average molecular weight-to-carbon weight ratio. This ratio can be applied to the [results of tests that quantify the emissions of organic calrbon to yield the total VOC emission rate. July 2003 ------- 14 states and counties joining EPA to resolve these violations. This is the first major NSR/PSD settlement involving the grain and oilseed pro- cessing industry. Under the settle- ment, ADM will implement broad- sweeping environmental improve- ments at its facilities nationwide that will result in a total reduction of air pollutants of at least 63,000 tpy, in- cluding: 21,000 tpy of VOCs; 23,000 tpy of CO; 1 1,000 tpy of S02; 7,000 tpy of NOX; and 1,000 tpy of PM. ADM will instaUBACT-level controls onalarge number of units, shutdown some of the oldest, dirtiest units, and take stringent emission limits on other units. ADM will pay a civil penalty of $4.6 million, and implement an additional $6.3 million worth of Supplemental Environmental Projects. EPA Resolves to Noncompliance in the Ethanol Industry On June 3, 2002, EPAReglon 5 hosted a meeting for ethanol facilities _located_in EPA Regions 5, 7, and 8. In addition to owners and operators of ethanol facilities, participants in- cluded management from the air pro- gram offices of the 3 EPARegions, representatives from state program offices, an ethanol industry group, the Renewable Fuels Association, EPA's Office of Enforcement and Compli- ance Assurance, and DOJ. At the meeting, Region 5's Regional Admin- istrator Tom Skinner outlined the is- sues of concern for ethanol facilities related to the proper characterization July 2003 _________ EPA has recently settled a number of VOC emission \ cases. of emissions. The Regional Adminis- trator ialso de- scribed EPA's ap- proach for resolving violations at ethanol _ faciMe§!thajLw,ould, voluntarily ap- proach EPA soon after the meeting. Although the mes- sage was delivered in Region 5, the in- dustry-wide ap- proach was coordinated with the af- ~ - fected Regions and EPA Headquar- ters and,|as such, represented a na- tional EPAundertaking. Following that meeting, the Min- Ethanol Process/Fromip.1 - - - A Usually dedicated to producing ethanol and i - "? generally smaller than wet mills, which; ^ -EL-tuji:i~~i_ui1 .-i/i'...".1..1.*,,,;•,' L .I"! :,-,, , •" "".i,,™,;,: »iiu jmiui-a !,".• .'*,.„„ »;',,a Scally produce products in addition to • gthanol. The ethanol production process nesota settlements were the firstLnJ^brokend^nintothreemainproj settlements reached, and the settle.^^. feed preparation, fermentation,3 ment with ADM_followed shortlyO purification thereafter. EPAand the states conJF. During the fermentation process, left-*: tame to negotiate with other ethanol^g- so^s ^ generauy processed further1 facilitiesf rossthecountry. EPAwm|^product ^ to make anima] feed; ensure that environmental benefits arep^j. e^ssions can contain nitrogen ox-" achieve^by requiring that the etha- ^cartxin monoxide, particulate matter,* nolindustry come into compliancep^ a^^^y Qf VOCs such as ethanol^ with the CAA as quickly as possible,fcpetaidehyde; methanol, acrolein, acetic^ and will ensure that there is consis-fej a^Jactis; acid In addition the VOCs1 tencyandalevelplaying field acrossp|^d g^ ^^s can contajn up tQ 4(^ )ercentHAPs; It is these dryer emissions" ^tt^ehistor^ally been underestimated* ifthe ethanol industry. the ethanol industry. ------- &EPA United States Environmental Protection Agency Office of Regulatory Enforcement (2241 A) Washington, D.C. 20460 Official Business Penalty for Private Use $300 'Enforcement Alert' newsletter Assistance Resources orcementand Compliance Lffl= •*'•" "3J*""ITTJG™ T" T^SfflSaLH'ili-df-i infJT1 T' //www epa gov/compliance of Ai? and Radiation or and Inventory^Groug: tto //www e.. _ _ i Air Enforcement Division: emnt Agreemen ii7clvil7caa7aarinfs.pdf r " nnesota__^ _ to^ww\repa^ov^omp{Shce7resources'/~ crees/civil/caa/mnenergycd.pdf sP"ri\~::v-'wi"f':~-Sssff~S! » *-, ~- < ------- |