Ferroalloy  Production
                                                                                      United States
Final Rule: Mandatory Reporting of Greenhouse Gases                              Aaencjmerrtal Pl°t9ction

Under the Mandatory Reporting of Greenhouse Gases (GHGs) rule, owners or operators of facilities that
contain ferroalloy production processes (as defined below) and that emit 25,000 metric tons or more of
GHGs per year (expressed as carbon dioxide equivalents) from ferroalloy production processes,
stationary combustion, miscellaneous use of carbonates, and other source categories (see information
sheet on General Provisions) must report emissions from ferroalloy production processes and any other
source categories located at the facility for which emission calculation methods are defined in the rule.
Owners or operators are required to collect emission data; calculate GHG emissions; and follow the
specified procedures for quality assurance, missing data, recordkeeping, and reporting.

How Is This Source Category Defined?

The ferroalloy production source category consists of any facility that uses pyrometallurgical techniques
to produce any of the following metals: ferrochromium, ferromanganese, ferromolybdenum, ferronickel,
ferrosilicon, ferrotitanium, ferrotungsten, ferrovanadium, silicomanganese, or silicon metal.

What GHGs Must Be Reported?

Ferroalloy production facilities must report the following emissions:
    •  Process carbon dioxide (CO2) emissions from each electric arc furnace (EAF) used  for any
       ferroalloy production listed in the source category definition.
    •  Process methane (CFL^ emissions from each EAF used for the production of silicon metal,
       ferrosilicon 65 percent, ferrosilicon 75 percent, or ferrosilicon 90 percent.
    •  CO2, nitrous oxide (N2O), and CFi4 emissions from each stationary combustion unit on site under
       40 CFRpart 98, subpart C (General Stationary Fuel Combustion Sources).

In addition, each facility must report GHG emissions for any other source categories for which calculation
methods are provided in other subparts of the rule. Please refer to the relevant information sheet for a
summary of the requirements for calculating and reporting emissions from other source categories.

How Must GHG Emissions Be  Calculated?

For CO2 emissions from each EAF, use one of two methods, as appropriate:
    •  EAFs with certain types of continuous emission monitoring  systems (CEMS) in place must report
       using the CEMS and following the Tier 4 methodology of 40 CFR part 98, subpart C to report
       CO2 process emissions from the EAF.
    •  For other affected EAFs, the reporter can elect to use either of two methods:
          o  Install and operate a CEMS to measure CO2 emissions according to  requirements
              specified in 40 CFR part 98, subpart C.
          o  Calculate annual CO2 emissions using a mass balance equation that includes
              measurements of the mass and carbon content of each carbon containing input (ore,
              carbon electrodes, flux, and reducing agents) and output material (product and
              nonproduct materials) for each EAF. For carbon content, use data provided by the
              material supplier or by annual analyses of three representative samples of each material.
40 CFR 98, subpart K                             1                             EPA-430-F-09-034R
September 2009

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               For mass of each material, either measure directly or calculate using process information.
               Exclude any materials that contribute less than 1 percent of the total carbon into the
               process.
    •   If CO2 process emissions from an EAF are emitted through the same stack as CO2 emissions from
       a combustion unit or process equipment that uses a CEMS and follows Tier 4 methodology to
       report CO2 emissions, then the CEMS must be used to measure and report combined emissions
       from that stack, instead of using the carbon mass balance calculation procedure.

For each EAF, the annual CH4 process emissions from the production of silicon metal,  ferrosilicon 65
percent, ferrosilicon 75 percent, or ferrosilicon 90 percent must be estimated using the annual mass of
alloy produced and the default CFI4 emission factors provided in Table K-l in the rule.

A checklist for data that must be monitored is available at:
www.epa.gov/climatechange/emissions/downloads/checklists/ferroallovproduction.pdf

What Information Must Be Reported?

In addition to the information required by the General Provisions at 40 CFR 98.3(c), the rule requires
each ferroalloy production facility to report the following information for each EAF (unless otherwise
noted):
    •   Annual facility ferroalloy product production capacity (tons).
    •   Annual production for each ferroalloy product (tons), as applicable.
    •   Total number of EAFs at facility used for production of ferroalloy products.
    •   Annual CO2 emissions (metric tons) from production of any ferroalloy product listed
       in Table K-l.
    •   Annual CFLt emissions (metric tons) from production of any ferroalloy product listed
       in Table K-l.
    •   Identification number.

If a CEMS is used to measure CO2 emissions, then the relevant information required under 40 CFR part
98,  subpart C for sources using a CEMS to measure CO2 emissions must be reported.

If a CEMS is not used to measure CO2 process emissions, and the carbon mass balance procedure is used
to determine CO2 emissions, then the following information must also be reported for each EAF:
    •   Annual material quantity for each material included for the calculation of annual process
       CO2 emissions.
    •   Annual average of the carbon content determinations for each material included for the
       calculation of annual process CO2 emissions.
    •   Method used to determine carbon content for each material.
    •   How missing data values, if any, were determined for mass of carbon containing inputs and
       outputs.

For More Information

This document is provided solely for informational purposes. It does not provide legal advice, have
legally binding effect, or expressly or implicitly create, expand, or limit any legal rights, obligations,
responsibilities, expectations, or benefits in regard to any person. The  series of information sheets is
intended to assist reporting facilities/owners in understanding key provisions of the final rule.

Visit EPA's Web site (www.epa.gov/climatechange/emissions/ghgrulemaking.html) for more
information, including the final preamble and rule, additional information sheets on specific industries,
the  schedule for training sessions, and other documents and tools. For questions that cannot be answered
through the Web site, please contact us at: ghgmrr@epa.gov.

40 CFR 98, subpart K                             2                              EPA-430-F-09-034R
September 2009

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