Standards of Performance for Petroleum Refineries Background Information for Final Standards Summary of Public Comments and Responses ------- This page intentionally left blank. 11 ------- Standards of Performance for Petroleum Refineries Background Information for Final Standards Summary of Public Comments and Responses Contract No. EP-D-06-118 Work Assignment No. 1-12 Project No. 06/09 U.S. Environmental Protection Agency Office of Air Quality Planning and Standards Emission Standards Division Research Triangle Park, North Carolina 27711 April 2008 in ------- iv ------- Disclaimer This report has been reviewed by the Sector Policies and Programs Division of the Office of Air Quality Planning and Standards, EPA, and approved for publication. Mention of trade names or commercial products is not intended to constitute endorsement or recommendation for use. v ------- TABLE OF CONTENTS Page Chapter 1: Summary 1 Chapter 2: Overview of Public Comments 2 Chapter 3: Definitions 6 3.1 Definition of Fuel Gas 6 3.2 Other Definition Issues 12 Chapter 4: Fuel Gas Combustion Device Standards 24 4.1 Tighter Ja Fuel Gas S02/H2S Standard 24 4.2 TRS in Fuel Gas 25 4.3 Process Heaters - NOx and S02 29 4.4 Monitoring Exemptions and Other Miscellaneous Fuel Gas Comments 34 Chapter 5: FCCU and FCU Emission Standards 39 5.1 Fluid Catalytic Cracking Units 39 5.1.1 PM Emission Limits and Opacity 39 5.1.2 NOx Emission Limit 58 5.1.3 S02 Emission Limit 60 5.1.4 CO Emissions Limit 64 5.1.5 Operating Parameter Limits 69 5.1.6 Other FCCU-related Comments 75 5.2 Fluid Coking Units 78 Chapter 6: Sulfur Recovery Plant (SRP) Standards 82 Chapter 7: Work Practice Standards 89 7.1 General 89 7.2 Flare Management 90 7.3 Flare Monitoring 99 7.4 Malfunctions of Amine Systems and SRP 101 7.5 Root Cause Analysis 103 7.6 Delayed Coking Depressurization 105 Chapter 8: Small Business Concerns 107 Chapter 9: NSPS Stringency 110 Chapter 10: Other Comments 112 vi ------- Chapter 1 SUMMARY On May 14, 2007, the U. S. Environmental Protection Agency (EPA) proposed amendments to the Standards of Performance for Petroleum Refineries (40 CFR part 60, subpart J) and separate standards of performance for new, modified, or reconstructed process units at petroleum refineries (40 CFR part 60, subpart Ja). Public comments on the proposal and EPA's proposed changes were requested when the proposal was published in the Federal Register. Comments were received from 38 sources, including petroleum refiners, industry trade associations and consultants, State and local environment and health departments, environmental groups, and other interested parties. On December 7, 2007, EPA published a Notice of Data Availability (NODA) notifying interested parties that additional information had been added to the docket for the rulemaking. Public comments on the additional data were requested at the time of publication in the Federal Register. EPA received eight comments from petroleum refiners and industry trade associations. All of the comments submitted by these 46 sources, and EPA's responses to the comments, are summarized in this document or the preamble to the final amendments and new standards. The summary and EPA's responses form part of the basis for the revisions made to the standards between proposal and promulgation. 1 ------- Chapter 2 OVERVIEW OF PUBLIC COMMENTS The public comment period following the May 14, 2007, Federal Register notice of proposed amendments to the New Source Performance Standards (NSPS) for Petroleum Refineries (40 CFR part 60, subpart J) and new proposed NSPS for petroleum refineries (40 CFR part 60, subpart Ja) lasted from May 14, 2007 to August 27, 2007. A total of 38 letters commenting on the proposed amendments and new standards for petroleum refineries were received. These letters have been placed in the docket for this rulemaking (Docket No. EPA- HQ-OAR-2007-0011). Table 1 lists the names of the persons submitting the 38 letters, their affiliations, and the recorded docket item number assigned to their correspondence (i.e., the four digits added to the end of the Docket No.). Many commenters supported the comments submitted by others. By convention, rather than identify all of the supporting commenters in each discussion of issues raised by a primary commenter, we identified the supporting commenters only in this chapter. In the remainder of this document, it is to be understood that each reference to the docket item number of a primary commenter stands for all of the supporting commenters as well. For example, Commenters 0123, 0125, 0135, 0136, 0137, 0138, 0139, 0140, 0141, 0142, 0143, 0144, 0145, 0150, 0151, 0153, 0157, 0158, 0159, 0170, and 173 supported the comments submitted by Commenter 0154. Commenters 0152 and 0155 supported the comments submitted by Commenter 0149. Commenter 0173 supported the comments submitted by Commenter 0129. Some of the comments appear to be posted in the docket twice; their comments are subsequently referred to by the first posting number assigned to the comments. Table 1 includes the secondary docket number when the comments were posted twice. The public comment period following the December 7, 2007, Federal Register notice (NODA) lasted from December 7, 2007, to January 7, 2008. Five letters commenting on the additional data were submitted. Within a month following the close of the public comment 2 ------- period, three additional comment letters were received.1 All of these letters have been placed in the docket for this rulemaking (Docket ID No. EPA-HQ-OAR-2007-0011). Table 1 includes the names of the persons submitting the eight letters, their affiliations, and the recorded docket item number assigned to their correspondence {i.e., the four digits added to the end of the Docket ID No.). Table 1. List of Commenters on the Proposed Amendments to 40 CFR Part 60, Subparts J and Ja Docket llem No. KPA-IIQ-OAU- ('ommenler and Affiliation 2007-001I- 0116 P. Kariuki, Texas Refinery Corporation, International Division, Nairobi, Kenya 0121 G. Shankle, Texas Commission on Environmental Quality (TCEQ) 0122 Anonymous Public Commenter 0123 R. Metcalf, Louisiana Mid-Continent Oil and Gas Association 0124 L. Zink, Montana Sulphur & Chemical Co 0125 R. Hermanson, BP America, Inc. L. A. Randel, Industry Professionals for Clean Air; also on behalf of Mothers for Clean Air and the Galveston-Houston Association for Smog Prevention 0126 (0126.1 and 0126.2) 0127, 0147 J.P. Broadbent, Bay Area Air Quality Management District 0128, 0134 T. Ballo, Earthjustice; also on behalf of Environmental Integrity Project and Sierra Club 0129, 0133 S.V. Allen, Gary-Williams Energy Corporation, for Ad Hoc Coalition of (0129.1, .2, & .3) Small Business Refiners 0130 B. J. Wakefield, Environmental Integrity Project and Sierra Club 0131 G. Garten, Lion Oil Company 0132 R. Smullen, HOVENSA 0135 P. Haid, HESS Corporation 0136 T. Fleming, Ohio Petroleum Council 0137 E. T. Roth, Wisconsin Petroleum Council 1 Two additional public comment letters were received over a month after the end of the public comment period, and while the information provided in these comments was considered to the extent possible, the comments are not summarized and responses are not provided in this document or the preamble to the final standards. 3 ------- .'I ltd IIQ-< )7-()() 0138 0139 0140 0141 0142 0143 0144 0145 0146 0148 0149 0150 0151 0152 0153 0154 55, 01 0156 0157 0158 0159 0161 0169 0170 0171 Coniiiicnlor siml AI'lllintion D. Garg, Valero Energy Corporation L. B. Barry, Chevron Corporation J. A. Maxwell, New Jersey Petroleum Council J. M. Griffin, American Petroleum Institute of Michigan (APIM) S. Smith, Lyondell Chemical Company M. McShane, Indiana Petroleum Council R. Ness, North Dakota Petroleum Council (Petroleum Council) G. B. Patterson, Delaware Petroleum Council A. Mirzakhalili, Delaware Department of Natural Resources and Environmental Control (DNERC) Chuck Feerick, ExxonMobil Refining and Supply Company B. Hodanbosi and Ursula Kramer, National Association of Clean Air Agencies (NACAA) D. F. Hunter, ConocoPhillips J. K. Sims, U. S. Oil and Gas Association M. Naxemi, South Coast Air Quality Management District (SCAQMD) J. Pounds, Ohio Chemistry Technology Council (OCTC) R. Chittim, American Petroleum Institute (API), National Petrochemical and Petroleum Refiners Association (NPRA), and Western States Petroleum Association (WSPA) M. Asmundson, The Northwest Clean Air Agency (NWCAA) A. Greene, CITGO Petroleum Corporation T. Parker, The Arkansas Petroleum Council (APC) D. M. Hastings, Texas Oil and Gas Association (TXOGA) Marathon Petroleum Company LLC T. K. Metrose, Tesoro Hawaii Corporation K. Comey, affiliation unknown R.A. Cade, Marathon Petroleum Company LLC B. Lane, affiliation unknown 4 ------- Docket lU'in No. KPA-IIQ-OAU- (onimcnler siml AI'lllintion 2007-001I- 0172 R. Chittim, American Petroleum Institute, also submitted on behalf of the National Petrochemical and Refiners Association 0173 C.G. Swanberg, CVR Energy, Inc. R. Chittim, American Petroleum Institute (API), National Petrochemical 0174 and Petroleum Refiners Association (NPRA), and Western States Petroleum Association (WSPA) 0175 R.A. Cade, Marathon Petroleum Company LLC 0176 K.C. Antoine, HOVENSA LLC 5 ------- Chapter 3 DEFINITIONS 3.1 Definition of Fuel Gas Comment: Commenters 0138, 0142, 0148, 0150, 0154, 0156, 0159 and 0161 supported the proposed clarifications to the definition of "fuel gas" for both subparts J and Ja and suggested that additional exclusions/clarifications be added. Commenter 0138 stated that EPA's original intent was to define refinery fuel gases as gases that are: (1) generated by a refinery process unit; (2) combusted for the purpose of energy recovery; and (3) amine treatable. Commenter 0154 recommended that EPA adopt these same three items as clarifications to the definition of "fuel gas." With respect to item 1, Commenter 0154 suggested that fuel gases should be limited to gases generated by equipment engaged in refinery processing operations and should not include gases generated by non-processing units or ancillary equipment. The commenter noted that although the definition of "fuel gas" in the rule only states that fuel gas is gas that is combusted, the background documents suggest that it was EPA's intent to cover only gases that were burned as fuels to produce useful work or heat, hence the term "fuel" gas. Commenters 0138, 0150, and 0154 recommended that EPA include in the definition of "fuel gas" that the gas be "combusted to produce useful work" similar to the definition in the National Emission Standards for Organic Hazardous Air Pollutants for Equipment Leaks (HON) (40 CFR part 63, subpart H) at 40 CFR 63.111. Commenter 0150 noted that it will be difficult and cumbersome to specifically exempt all possible streams that do not meet this definition of deriving useful work, so this simple clarification is preferable to a listing of exempt streams. Commenter 0154 suggested EPA define a heating value of 200 to 300 British thermal units per standard cubic feet (Btu/scf), depending on the hydrogen content, as a means of establishing gas that can produce useful work. Commenters 0138 and 0154 suggested that the streams that are not amenable to amine treatment should not be included in the definition of "fuel gas." 6 ------- Commenter 0138 noted that fuel gas must be limited to gases combusted as fuels; otherwise, defining "process gas" as "any gas generated by a petroleum refinery process unit, except fuel gas and process upset gas" would have no meaning. The commenter noted that the proposed rule does not include a new definition of "fuel gas," but the preamble makes clear EPA's intent to cover what should be considered "process gas." Response: We have reviewed the original NSPS background documents (Docket Item No. EPA-HQ-OAR-2007-0011-0080, 0081, and 0082). The background document for the proposed rule states that the standards apply to emissions from "process heaters, boilers, and waste gas disposal systems [i.e., flares] that burn process gas generated at the refinery." This statement is consistent with a relatively broad definition of "fuel gas" as included in subpart J, but "process gas" as defined in subpart J is specific to gas generated by a "refinery process unit." The background document for the promulgated standard also states that "Fuel gas is defined as any gas produced by a process unit within a petroleum refinery and combusted as fueT (emphasis added). The last two words in this statement of the definition of fuel gas suggest that the original focus was on gases that were used as fuel, (i.e., were combusted to produce useful heat or work). While the background information describes fuel gas as suggested by the commenter, the attention to the detail of the specific words used in a background document are far less than those used when developing the rule. Difficulties in segregating gases produced by "refinery process units" and those produced from "non-refinery process units" (e.g., is the wastewater treatment system a "refinery process unit?") and concerns about what constitutes useful work (e.g., if combustion in a flare does not produce useful heat or work, does that mean flares are not fuel gas combustion devices?) are likely to have led to the intentionally broad definition of fuel gas. Also, the definition of fuel gas combustion system included in the background document for the promulgated standards is "any equipment such as, but not limited to, process heaters, boilers, and flares used to burn gases." Thus, in the background document, fuel gas combustion devices are devices that burn any gas, so that the broad definition of fuel gas in subpart J appears to be consistent with the background information. With respect to limiting the fuel gas standards to gases that are amine treatable, there is no indication that the definition of fuel gas was ever considered to be limited to gases that are amine treatable. While the best demonstrated technology (BDT) review focused on the performance of amine treatment systems, the background information clearly indicates that post- 7 ------- combustion controls can be used so long as they meet the alternative sulfur dioxide (SO2) limit included in the original subpart J. The background document for the proposed rule states that "the proposed standards will limit sulfur dioxide emissions to the atmosphere from heaters, boilers, and flares by specifying that the fuel gas burned shall contain not more than 230 milligrams per normal cubic meter (mg/Nm3) of hydrogen sulfide, or 0.10 grains per dry standard cubic feet (gr/dscf), unless resultant combustion gases are treated in a manner equally effective in preventing the release to sulfur dioxide to the atmosphere." Similarly in the background to the promulgated standards, the document states that "Although the standard limits sulfur dioxide emissions by specifying a limit on the hydrogen sulfide content of fuel gas combusted, compliance with the standard can be achieved be removing sulfur dioxide from the combustion effluent gases instead of removing hydrogen sulfide from the fuel gas before combustion." There is no discussion in any of the background information that the fuel gas combustion standards were limited to gases that are amine treatable. Although some specific parts of the background information for subpart J suggests that fuel gas was intended to be limited to gases combusted as fuel, a more complete review of the background information supports the Agency's broad interpretation of the definition of fuel gas. If we were to limit the definition to gases combusted as fuels, then gases combusted for other reasons would not be subject to any emission standards, and would have the effect of increasing SO2 emissions. We have finalized our proposed clarifications that certain streams are not considered fuel gas and others are inherently low in sulfur and do not need to be monitored, but we do not believe we should relax the standards to the extent that the commenters suggest. We disagree with the commenter that "process gas" has no meaning if fuel gas includes all gas that is combusted. Propane produced in the refinery is a process gas. Effectively all gases generated at a refinery that are combusted and that are not a result of process upset or malfunction are, by definition, process gases. It appears that the commenter would like to define process gas as gas that is combusted, but that is not combusted as fuel. We summarily reject this idea as it would generally exclude gases combusted in flares, as these gases are arguable not fuels (not producing useful work or heat). The background information is clear that waste gas or flare gas are fuel gas combustion devices and are subject to the fuel gas standards (unless the gases combusted are process upsets gases). The definition of process gas may help to clarify that there are gas streams in the refinery that are not subject to the hydrogen sulfide (H2S) 8 ------- concentration limit; however, we agree that the definition of process gas is unnecessary and have removed it from subpart Ja. Comment: Commenter 0127 suggested that the definition of "fuel gas" should also exclude vapors that are collected and combusted to comply with wastewater provisions or marine tank vessel loading provisions in State Implementation Plan (SlP)-approved rules (for the same reasons these sources are excluded when complying with the federal rules). Commenter 0174 asserted that vapors from wastewater and marine vessel loading are not fuel gas; therefore, the commenter requested that the definition of fuel gas exclude these streams regardless of whether or not they are subject to one of the named Federal regulations. The commenter noted that the proposed definition of fuel gas does not account for sources combusting those vapors voluntarily, or to meet a State regulation or permit, or to comply with Federal regulation not included in the definition. The commenter also noted that the Bay Area Air Quality Management District flare rule (EPA-HQ-OAR-2007-0011-0162) excludes flares that exclusively handle emissions from storage, loading, and wastewater treatment systems. Commenter 0131 suggested an exclusion from the fuel gas definition for fuel gas vapors from truck and rail loading docks vented to air pollution control devices; each of the reasons EPA articulated at proposal for exempting wastewater and marine vessel loading sources are equally applicable to truck and rail loading and the exemption should be expanded to include them. Commenter 0130 disagreed with the exemptions in both subparts J and Ja for fuel gas vapors from control devices complying with 40 CFR part 60, subpart QQQ (wastewater systems) and 40 CFR part 63, subpart Y (marine vessel loading), as the effect would be to exempt the emissions from H2S concentration limits. The commenter disagreed with EPA rationale that these emissions are typically low in H2S, the streams are not cost-effective to amine treat, and loading sources are often located at the edge of the refinery so it is not economically reasonable to regulate. The commenter stated that it is technically and economically feasible to regulate the wastewater and marine vessel loading emissions. Given the hazards to human health and the environment, all sources of H2S emissions at oil refineries should be considered fuel gas and be subject to the S02 or H2S concentration limits, if it is economically and technically feasible to do so. As EPA acknowledges that variability may result in these streams exceeding the current fuel gas H2S concentration limits, the emissions should be regulated as fuel gas. The commenter stated that EPA has not explained the meaning of cost effective or economically reasonable, 9 ------- although the commenter noted that an endeavor may be economically feasible without being cost-effective. Response: It is beyond the scope of the NSPS review to evaluate each and every State regulation or SIP to determine if the combustion systems in these rules are comparable to the Federal regulations cited. If necessary, an applicability determination request can be made so that the specific State or local requirements can be fully evaluated. Comment: Commenter 0125 recommended that the following exemptions be included in the definition of "fuel gas": (1) low-BTU gas; (2) start-up hydrocarbon purges; (3) depressurizing purges and "steamout steam" for units shutting down; (4) heater tube decoking purges; (5) reformer catalyst regenerator gas; and (6) green coke calciner process gas. Commenter 0138 provided a list of 16 streams/gases that they suggested should not be defined as fuel gas. The commenter supported the clarification that monitoring is not required for exempt streams and suggested that the 16 streams listed be likewise excluded. Commenter 0154 suggested 39 streams that they believe should be exempted from the definition of "fuel gas"; Commenter 0174 added vapors from all wastewater and marine loading operations to that list. Commenter 0156 listed 10 additional streams and suggested that any stream controlled by any State or federal regulation that uses a combustion device should be exempted from the definition of fuel gas. Commenter 0154 recommended that any stream with a sulfur content and flow rate such that combustion of these gases would be below 500 pounds per day (lb/day) (the reportable quantity for S02) should be excluded from the definition of fuel gas. Commenter 0148 provided a list of five additional vent streams that are combusted for emission control that they believe should be exempted from the definition of "fuel gas." The commenter noted that the standard for miscellaneous process vents in National Emission Standards for Hazardous Air Pollutants From Petroleum Refineries (40 CFR part 63, subpart CC) (Refinery MACT I) specifically stated that there should be no overlap between Refinery MACT I and other Federal rules, and the commenter recommended that all vents subject to other NSPS or MACT standards be excluded from the fuel gas requirements in subparts J and Ja. Commenter 0146 recommended expanding the definition of "fuel gas" to include synthesis gas produced by gasification of petroleum coke produced by fluid coking operations because raw synthesis gas can potentially contain significant concentrations of H2S, up to 2 mole percent. The commenter also noted that current generation amine scrubbing technologies have 10 ------- been demonstrated to desulfurize synthesis gas to levels well below those in the proposed standard. Response: Given the numerous comments and different lists of process streams received on this issue, it is evident that providing a detailed list of every stream exempt from the definition of fuel gas is not a practical solution, nor do we think it is warranted. The streams exempted at proposal were exempted based on the costs and technical issues associated with recovering these remote, oxygen-containing gas streams and adding them into the refinery's fuel gas system. The commenters did not provide specific rationale along these same lines as why these additional gas streams should be exempted from the definition of fuel gas. The primary focus of the comments was that fuel gases should apply only to those gases that are used as fuels. Comment: Commenters 0150 and 0154 stated that vapor from sulfur pits should not be considered under the definition of "fuel gas." Response: Vapors from sulfur pits, if combusted, meet the definition of fuel gas. The real question is whether the devices that combust these gases are fuel gas combustion devices. Fuel gas combustion devices exclude the combustion of fuel gas at "facilities in which gases are combusted to produce sulfur or sulfuric acid." This means that gases combusted in the sulfur recovery plant (SRP) are not subject to the fuel gas combustion standards, but are subject to the SRP standards. At proposal, we specifically included the sulfur pit as part of the SRP, but at promulgation, we only clarified this definition for subpart Ja. We note that there is a difference in the subpart J definition of a Claus SRP and the exclusion provided by the fuel gas combustion device so that one can argue that the combustion of sulfur pit vapors at the SRP are not subject to the fuel gas combustion device standards. It is the Agency's opinion that the combustion of sulfur pit vapors is subject to the SRP standards and not the fuel gas combustion device standards. Comment: Commenter 0125 suggested that EPA specify in the definition of "fuel gas" that mixing of fuel gas with natural gas is not circumvention by use of gaseous diluents per §60.12. Response: Mixing of natural gas and refinery fuel gas as well as mixing of sweet refinery fuel gas with high-sulfur fuel gas is commonly practiced, in many cases to ensure that the resulting fuel gas has the desired properties for combustion. These practices are not considered dilution and are therefore allowed within the regulation. In our proposed amendments, we 11 ------- attempted to make it clear that the affected source is the fuel gas combustion device and that the SO2 (or alternative H2S or total reduced sulfur (TRS) limits) apply at the affected source. We do not require that each individual fuel gas stream produced in the refinery that has a concentration exceeding the alternative H2S concentration limit be treated to meet the applicable concentration limit; rather, it is the fuel gas fed to the fuel gas combustion device that must meet the concentration limit. In the final amendments, we clarified that the H2S concentration measurement can be made at a central location, after fuel gases from several sources have been mixed, which may include the addition of natural gas. 3.2 Other Definition Issues Comment: Commenters 0125, 0148, 0150 and 0154 stated that the definition of "process upset gas" should not be changed in subpart Ja; "process upset gas" should include start-up and shutdown. Not all shutdowns are planned, and not all flaring during planned shutdowns can be eliminated. It is not cost-effective (and sometimes infeasible) to eliminate flaring; the flare management plan (FMP) and general duties under §60.11(d) are sufficient to minimize the start- up and shutdown emissions. Response: We agree with the commenter that not all shutdowns are planned and that not all flaring can be eliminated from planned start-ups and shutdowns. However, we have not changed the definition of "process upset gas" from proposed subpart Ja. The final work practice standards for flares include a limit on the flare flow during normal operations and a FMP; further details on the requirements for affected flares are provided in the preamble to the final standards and later in this document. Comment: Commenter 0131 suggested the exemption for process upset gases and fuel gas released to the flare as a result of relief valve leakage and other emergency malfunctions should expressly include an exemption for fuel gas released to the flare as a result of flare gas recovery unit compressor staging because this process meets the definition of startup under subparts J and Ja. Response: The premise of the comment is incorrect. Startup is defined in the General Provisions (subpart A) to part 60 as "the setting in operation of an affectedfacility for any purpose" (emphasis added). Subparts J and Ja do not alter this definition, and the flare gas recovery unit is not an "affected facility" under subparts J or Ja. 12 ------- Comment: Commenter 0154 requested that a definition of "auxiliary" (or "supplemental") fuel be added to both subparts J and Ja and noted that monitoring of the gas mixture is not needed if the auxiliary fuel meets the fuel gas standards. Response: We acknowledge that there is no need to monitor the mixture of the fuel gas fed to a fuel gas combustion device as long as each of the individual fuel gas streams fed to the fuel gas combustion device meets the fuel gas standard. This suggests that all of the individual streams are monitored unless they are specifically exempt from monitoring as an inherently low- sulfur fuel gas. For example, if natural gas is used as an auxiliary fuel and mixed with the primary fuel gas at a given process heater, the refinery owner and operator does not need to demonstrate compliance with the standard at the process heater if the primary fuel gas meets the fuel gas standard. In this case, the mixture would certainly meet the standard. However, when the primary fuel gas does not meet the standard, questions and uncertainties arise regarding whether the fuel gas combustion device is in compliance with the standard. It could be that, with the addition of the auxiliary fuel, the fuel gas combustion device is in compliance with the standards, even though the primary fuel gas used would exceed the standard if it were the only fuel combusted. In response to this comment, we expressly allow an exemption from monitoring at the fuel gas combustion device when all gases that are mixed at the unit meet the fuel gas requirement. However, we also expressly indicate that, if the owner or operator elects this option, an exceedance occurs each time any of the individual fuel gas streams that constitute the total fuel gas fed to the combustion device exceeds the fuel gas standards. Therefore, it may be desirable for a refinery owner and operator to monitor the fuel gas as fed to the fuel gas combustion unit; however, if the owner and operator does not, they must report any exceedance of the fuel gas standard for any fuel gas streams used by the fuel gas combustion device as an exceedance for that fuel gas combustion device, regardless of the relative quantities of fuels fed to that fuel gas combustion device. Comment: Commenters 0150 and 0154 opposed the definition of "other fuel gas combustion device" and suggested maintaining the definition of "fuel gas combustion device" in subpart J. The commenters stated that the new definition is needless and confusing. Commenter 0150 suggested that, if necessary, these devices can be referred to as "fuel gas combustion devices other than process heaters" without having to add a definition. Commenter 0146 stated that the new definition is confusing because it suggests that process 13 ------- heaters are excluded and recommended rephrasing the definition of other fuel gas combustion device to include process heaters as being affected units, along with boilers and flares: "Other fuel gas combustion device means any equipment, such as process heaters boilers and flares, used to combust fuel gas. However, facilities, inclusive of process heaters, in which gases are combusted to produce sulfur or sulfuric acid, are excluded from this definition." Response: We agree that there is no real need to define "other fuel gas combustion devices." In all cases where standards apply to "other fuel gas combustion devices," the standards also apply to "process heaters." Therefore, to clarify the requirements, we have revised the proposed subpart Ja to either refer to "fuel gas combustion devices," which includes process heaters, or to refer specifically to process heaters. This revision makes the definition of fuel gas combustion devices consistent between subparts J and Ja. Comment: Commenter 0125 suggested that the following equipment be excluded from the definition of fuel gas combustion device: (1) gas-fired combustion turbines; (2) cogeneration units; (3) any incinerator installed to comply with control provisions in any 40 CFR part 60, 61, or 63 rule; (4) any internal combustion device; (5) cutting/welding torches, space heaters, and similar miscellaneous equipments; and (6) temporary equipment, such as portable flares or thermal oxidizers, used during maintenance or tank cleaning. Similarly, Commenter 0171 asked EPA to clarify whether turbines, cogeneration units, welding machines, and internal combustion engines are fuel gas combustion devices. Response: We believe fuel gases combusted in gas-fired combustion turbines, cogeneration units, or internal combustion devices should meet the fuel gas standards. That is, we clarify in this response that these units are considered fuel gas combustion devices. The definition of fuel gas combustion device is "any equipment... used to combust fuel gas." The specific listing of typical types of fuel gas combustion devices in the definition was never intended to be an exhaustive list. We anticipate that cutting/welding torches, space heaters, and similar miscellaneous equipments would use fuels that meet the fuel gas sulfur content specifications and would not combust sour refinery fuel gas. However, if these units are combusting refinery fuel gas, they should be utilizing fuel gases that are treated to meet the standard; therefore, we are not excluding them from the standard. We believe the definition of fuel gas in this final rule adequately addresses these issues without specific exclusions in the definition of fuel gas combustion device. 14 ------- Comment: Best practices at Commenter 0170's refineries include installation of a Safety Instrumentation System (SIS) on each process heater to shut down a process heater quickly and safely if there are unsafe conditions. The commenter noted that a SIS includes shutdown valves, flow meters, and sensors for pressure, temperature, and flame. The commenter stated that the system has no effect on the normal operation of the heater (e.g., firing rate or capacity, efficiency); the SIS would function as a pollution control device if a shutdown or malfunction occurs. Therefore, the commenter believes that the SIS is not part of the process heater "affected facility," and the costs of the SIS should not be considered when determining whether a project is a modification or reconstruction. The commenter requested that EPA clarify that safety systems are not part of the process heater "affected source." Response: As the SIS is integral to the safe operation of the process heater, we believe that SIS is part of the "affected facility." Comment: Commenter 0139, 0148, 0150, 0154, 0156, 0161, and 0174 objected to the expanded definition of "sulfur recovery plant" that includes all (multiple) Claus trains, tail gas units, sulfur pits, and storage tanks. Commenters 0148, 0150, 0156, and 0161 suggested the revised definition would make (unlawful) retroactive changes to subpart J, so any change in definition must be restricted to subpart Ja. Commenters 0142 and 0154 asserted that these amendments to subpart J will cause refineries to be out of compliance and are clearly "ex post facto" provisions. Commenters 0150 and 0174 noted that applicability determinations are case- and site-specific, and EPA should not expand one specific applicability determination to a broader regulatory interpretation. Commenter 0174 added that EPA previously stated that applicability determinations are not "nationally applicable" actions within the meaning of section 307(b)(1) of the Clean Air Act (CAA) (68 FR 7373). Commenter 0161 stated that the sulfur pit should not be included as part of the sulfur recovery plant (SRP) because EPA's assumption that pit gases are normally recycled to the beginning of the sulfur recovery train is incorrect. Commenter 0170 stated that changing the relevant definitions to clarify that sulfur pits are included in the definition of SRP could conflict with the consent decree requirements. Commenter 0174 noted that although Applicability Determination 0500042 states that sulfur pits should be included in the SRP in 2004, an earlier applicability determination (NR71, 1990) clearly indicates that the sulfur pits were not always considered to be included; therefore, EPA cannot call a national application of that determination 15 ------- a "clarification" to subpart J. Commenter 0170 stated that sulfur pit vents are currently adequately controlled, and they were not considered as part of the original NSPS {i.e., BDT for sulfur pits was not determined), so the change in the definition cannot be considered a clarification. Commenter 0174 agreed, noting that the documentation from the original NSPS identified vents from sulfur pits and recognized that they were uncontrolled but did not set standards for those vents. Commenter 0175 noted that at their Louisiana refinery, H2S is a regulated pollutant, and the H2S emissions from the primary and downstream pits, tanks, and loading operations combined are less than 8 tons per year (tons/yr); in addition, the refinery uses less than one-sixth of the 576 hours allowed for maintenance activities per year. If EPA does include sulfur pits as part of the SRP affected facility in subpart Ja, Commenters 0148, 0156, and 0159 recommended that EPA include a provision to perform periodic maintenance (of sulfur pit eductors and transfer piping) without facilities being out of compliance (Commenter 0148 provided example language). Commenter 0170 suggested that including sulfur pit vents as part of the SRP with a maintenance allowance for sulfur pit eductors should be provided as an alternative compliance option rather than the only standard. Commenter 0174 suggested that EPA provide 240 hours per year of control system outage for maintenance to prevent plugging. Commenters 0150 and 0156 stated that, if appropriate, sulfur pits should be a separate affected facility under subpart Ja rather than included in the definition of the SRP. Commenter 0174 stated that sulfur pit vents can only be included in subpart Ja if the BDT and other required analyses are completed and provided for public comment. Commenters 0150, 0156, and 0159 stated that the sulfur pit requirements should apply only to the primary sulfur pit and that secondary pits, downstream tanks, and loading racks should be expressly excluded, as it is not cost effective to control these downstream sources. Similarly, Commenters 0139, 0150, and 0154 urged EPA not to include sulfur storage facilities in the SRP definition until they can justify the controls via the required BDT analysis. Commenter 0175 requested that the SRP definition exclude tanks that are downstream of the first liquid sulfur drop-out point and physically separate from the SRP. Commenters 0139 and 0161 stated that EPA has previously indicated that sulfur storage tanks and loading racks exist to distribute sulfur product and are not part of the SRP (see EPA Applicability Determination Control #0500042). A cost-effectiveness evaluation would show EPA's expanded control is not justified. Commenter 0175 indicated that cost-effectiveness values for a conceptual project are 16 ------- estimated to be $150,000 per ton of H2S for a secondary tank and may increase to $2,000,000 per ton if a degassing chemical is used; the degassing chemical only reduces H2S from 7 tons/yr to less than 1 ton/yr. Commenter 0139 stated that emissions from downstream fugitive sources are de minimis, and EPA has not provided SO2 and H2S emissions data to demonstrate these fugitive sources are significant. Commenter 0139 further noted that imposing controls on sulfur storage facilities downstream of Claus trains will adversely impact some consent decree projects. Commenter 0156 provided permit limits based on actual measurements indicating that downstream storage tank emissions are 40 times smaller than the primary sulfur pits. Commenter 0175 also noted that if vapors from sulfur storage tanks are required to be returned to the Claus unit, the distance and pressure difference between the tank and the Claus unit cause safety and maintenance concerns (e.g., potential for fire, plugging of the line between the two units). Commenter 0150 stated that the definition of SRP could have unintentional consequences due to the broadness of the definition. The commenter recommended EPA clarify that Merox units, acid plants, and caustic scrubbers are not part of the SRP by including the word "elemental" to clarify that an SRP recovers "elemental" sulfur. Response: We believe the definition as currently written provides for coverage of sulfur pits. Therefore, we have decided not to amend the definition of "Claus sulfur recovery plant" to specifically include multiple process units or sulfur pits in subpart J. The definition of "sulfur recovery plant" in subpart Ja includes sulfur pits but does not include secondary sulfur storage vessels downstream of the sulfur pits. This definition reflects the Agency's current understanding of the chemistry and operation of a SRP. The Agency's position is that the sulfur pits are part of the Claus SRP because removing the elemental sulfur between Claus reactors is essential in shifting the equilibrium of the "vapor-phase catalytic reaction" towards completion. If the Claus SRP "process unit" did not include sulfur pits, it could not effectively recover sulfur. As such, the sulfur pit is an integral part of the overall process unit described in the definition of a Claus SRP. To determine whether controlling the sulfur pits is cost-effective, we performed a BDT analysis considering three options: (1) not including sulfur pits; (2) including primary sulfur pits; and (3) including all sulfur pits and secondary sulfur storage vessels. Based on the results shown in Table 2, controlling primary 17 ------- sulfur pits is cost effective for both new and modified and reconstructed SRP, but including all sulfur storage vessels is not cost-effective. Table 2. National Fifth Year Impacts of Options for Standards Considered for New, Reconstructed, and Modified Sulfur Recovery Plant Sulfur Pits Subject to 40 CFR Part 60, Subpart Ja Option Capital Cost ($1000) Total Annual Cost ($l,000/yr) Emission Reduction (tons S02/yr) Cost- effectiveness ($/ton) Incremental Cost- effectiveness ($/ton) New SRP — Baseline emissions: 31 tons S< Vyr 1 0 0 0 N/A N/A 2 660 86 54 1,600 1,600 3 1,300 170 55 3,100 63,000 Modified and F Leconstructet SRP — Baseline emissions: 280 tons SCVyr 1 0 0 0 N/A N/A 2 7,700 940 480 1,900 1,900 3 15,000 1,900 500 3,800 78,000 Based on the public comments, we are including a provision that allows the sulfur pits 240 hours per year of uncontrolled operation to perform preventative maintenance on the eductors and transfer piping. During times that the sulfur pits are not controlled, refiners have the general obligation to minimize emissions to the extent practicable, consistent with good air pollution practices. Finally, we are not specifically including "elemental" sulfur in the definition of "sulfur recovery plant" because doing so would exclude Lo-Cat units and other sulfur recovery methods that should be required to achieve the emission limits for small SRP. Comment: Commenter 0150 noted that, while EPA may consider multiple Claus trains in a given sulfur recovery plant to be a single affected source, it should not consider separate, independent sulfur recovery plants to be a single affected source. Commenter 0150 requested clarification as to whether truly independent SRP are considered together under the revised definition of SRP in the subpart Ja proposal. Commenter 0150 also suggested that, if all SRP are considered together, then completely dismantling and replacing the SRP would not trigger a modification as long as the total SO2 emissions do not increase. Commenter 0156 stated that each separate sulfur recovery unit should be considered as separate affected sources. 18 ------- Commenters 0148 and 0154 stated that multiple, independent Claus trains should be separate affected facilities. Response: Consistent with current Agency interpretation, we are clarifying in subpart Ja that multiple sulfur recovery units (SRU) or trains are part of a single SRP only when they have the same sour gas source. If the SRU receive sour gas from completely segregated sour gas treatment systems and there is no connection between the SRU, than the SRU are considered to be part of separate SRP. If there is a connection between SRU such that sour gas could be transferred from one to the other, these SRU are considered one SRP. In response to the commenter who suggested that dismantling and rebuilding an SRP would not trigger modification provisions, we note that the resulting SRP would either become subject to subpart Ja as a new SRP or a reconstructed SRP, depending on the exact situation. Comment: Commenter 0125 requested that EPA clarify that the revised definition of "sulfur recovery plant" as an affected source does not affect the customary exclusion from compliance during start-up or shutdown of a single amine stripper, Claus train, or tail gas treatment unit. EPA did not discuss or evaluate the impact of this definitional change on the affected source as it pertains to §60.2; therefore, EPA should specifically state in both subparts J and Ja that the new definition of "sulfur recovery plant" does not preclude the use of this exclusion during a start-up or shutdown of a portion of the affected facility. Response: The amine stripper is not an affected facility, and is therefore not included in the definition of a shutdown as it pertains to §60.2. In the preamble to the proposed rule, we indicated that the sulfur standards for fuel gas combustion devices and the sulfur recovery plant were to be met at all times. If one Claus train in a Claus SRP shutdown, diversion of flow to the operating Claus units and implementation of a sulfur shedding plan are considered good air pollution control practices. However, provided that the root cause analysis is conducted (presuming the shutdown event causes a release of 500 lbs/day or more of SO2), the definitions in subpart Ja do not necessarily preclude the use of this exclusion during a start-up or shutdown of a portion of the affected facility. Comment: Commenters 0148, 0150, and 0154 opposed changing the definition of any affected source to include multiple units of any kind and recommended that subpart Ja clearly state that multiple fluid catalytic cracking units (FCCU) are not one affected facility. Multiple, 19 ------- independent refinery process units, whether they are FCCU or fluid coking units (FCU), should be separate affected facilities, according to Commenters 0148 and 0154. Response: In this final rule, we are clarifying that multiple independent FCCU are separate affected sources so long as they are truly independent. If the FCCU regenerator exhaust from two separate FCCU share a common exhaust treatment unit (e.g., carbon monoxide (CO) boiler or wet scrubber), then the FCCU are not independent and considered a single affected source. Comment: Commenter 0150 requested that the definition of "fuel gas" be consistent with the definition in the HON. Commenter 0156 suggested that the original definition of FCCU in subpart J be retained in subpart Ja. Commenter 0159 objected to the proposed definition of "fluid catalytic cracking unit" in subpart Ja, which includes the control and heat recovery equipment. The definition is inconsistent with subpart J and other NSPS and National Emission Standards for Hazardous Air Pollutants for Petroleum Refineries: Catalytic Cracking Units, Catalytic Reforming Units, and Sulfur Recovery Units (40 CFR part 63, subpart UUU) (Refinery MACT II); the commenter noted that subpart J only includes the FCCU catalyst regenerator and Refinery MACT II includes only the process vents that are associated with regeneration of the catalyst such as the catalyst regeneration flue vent. The commenter stated that regulatory precedent has generally limited applicability to the FCCU components generating emissions, and the preamble did not explain why EPA expanded the definition for subpart Ja. The commenter stated that EPA stated in 1989 that limiting applicability of the sulfur oxide (SOx) standards to the regenerator of the FCCU "would lead to bringing replacement equipment under these standards sooner." At a minimum, the commenter recommended that EPA exclude the pollution control device if the affected facility is expanded for FCCU. Response: The definitions in the final subpart Ja have been developed to describe each affected source as appropriate for this subpart. The definition of the FCCU specifically included the heat recovery system (CO boiler) as this system is integral to the operation of partial combustion units. We note that including the whole FCCU as the affected source raises the 50% cost threshold for reconstruction, but it would require the refinery to consider whether any change to the FCCU is a modification or reconstruction. Comment: Commenters 0154 and 0156 suggested deleting the definition of "process gas" because it in not used in the rule and therefore is not needed. 20 ------- Response: Because the term "process gas" is not used in subpart Ja, we have not included a definition of the term in §60.101a. Although the term is not used directly in subpart J, we have not amended any definitions in subpart J, including removing terms, other than the change to the definition of fuel gas as described in the preamble to the final rule. Comment: Commenter 0154 suggested that EPA define "petroleum refinery process unit" (rather than "refinery process unit") as: "a process unit that refines petroleum products as defined in 'petroleum refinery.'" Commenter 0150 suggested that the definition of "refinery process unit" be consistent with Refinery MACT I and they requested revision of the term "petroleum refinery" to include SIC Code 2911. Commenter 0156 stated that "refinery process unit" should be defined consistent with the definition of process unit in §60.481 to stress the independence of a process unit. Response: The suggested definition of "petroleum refinery process unit" would exclude sulfur plants and amine treatment systems from the definition of refinery process units. This definitional change would help to clarify that start-up and shutdown of amine strippers or Claus SRP are not included in the definition of process upset gas. At proposal, we indicated that the process upset gas exclusion did not apply because these units did not "generate" the sour gas. This definitional change in refinery process unit would make this point more clear. However, we do not believe this is the commenter's intent, especially in view of other comments provided by this commenter. The commenter provided no compelling rationale for the requested changes, and we do not believe the commenter has thoroughly considered the ramifications of the definitional changes suggested. As such, we decided not to make the suggested changes. Comment: Commenter 0154 suggested that EPA define nitrogen oxides (NOx) as nitrogen dioxide (NO2) in §60.102a(b)(2). Response: The emission limit applies to all NOx compounds as measured by EPA Methods 7, 7A, 7C, 7D, or 7E. These methods measure total NOx concentrations as NO2. The primary NOx species (those specifically listed in these methods) are nitric oxide (NO) and NO2. We believe the specification of the test methods adequately define nitrogen oxides and that they are measures as N02. Comment: Commenter 0154 suggested that EPA define particulate matter (PM) as determined by Method 5B or 5F (consistent with subpart J). According to the commenter, Method 5 does not provide predictable, reproducible results. 21 ------- Response: The differences in Methods 5, 5B, and 5F are addressed at length in the discussion of the PM emission limits for FCCU and FCU. The term "particulate matter" is already defined in the NSPS General Provisions (40 CFR part 60, subpart A), and we do not see a need to define it differently in this subpart. Comment: Commenters 0150 and 0154 suggested that EPA delete the definition of "fuel gas producing unit." Response: This comment is addressed at length in the discussion of the work practice standards. In response to this particular comment, we note that we are deleting the definition of "fuel gas producing unit" because it is no longer necessary due to changes in the work practice standards between proposal and promulgation. Comment: Commenter 0154 suggested that EPA define "amine treatment system" and specifically state that it is not an affected facility. Response: We consider the amine treatment system to be a control system used to comply with the sulfur standards for fuel gas combustion devices (see Section 7.4 for further details). The amine treatment system is part of the fuel gas system, which has been defined in subpart Ja for purposes of clarifying when a flare has been modified (see Section 7.2 for further details). Comment: Commenter 0127 supported the revised definition of "oxidation control system" to clarify that thermal oxidizers are not "oxidation control systems." On the other hand, Commenter 0150 stated that not all oxidative and reductive control systems route the S02 or H2S to the reactor furnace or first stage reactor. Therefore, these SRP currently do not meet the proposed definition of SRP in subpart J. If EPA intended to require all SRP control systems to route emissions to the reactor furnace or first stage reactor, then these SRP will be significantly impacted by the rule. The commenter recommended no change in the definitions from those in the existing subpart J and further suggested that this change in definitions in the proposed amendments to subpart J are unlawful, as they impose substantive requirements to existing units. Response: As the definition of "oxidative control system" includes the concept that the control system is reducing emissions from the sulfur recovery plant by converting these emissions to SO2, we do not believe incinerators or thermal oxidizers qualify as an oxidative control system. We agree with the commenter that indicated that not all oxidative or reductive control systems recycle sulfur to the front of the Claus unit. For example, a LoCat system can be 22 ------- used as a tail gas treatment unit for a Claus SRP to meet the subpart J or Ja standards without recycling the sulfur to the Claus SRP. As such, the proposed amendments needlessly limit the types of tail gas treatment systems that can be used; therefore, we are not amending these definitions in the final amendments for subpart J or Ja. 23 ------- Chapter 4 FUEL GAS COMBUSTION DEVICE STANDARDS Comment: Commenter 0127 supported focusing the fuel gas combustion device standards in the proposed subpart Ja rule on SO2 rather than on H2S. The commenter noted that relatively high amounts of S02 are released due to sulfur compounds other than H2S in the fuel gas. The commenter opposed the use of an H2S or TRS limit (in lieu of the S02 limit) in §60.102a(h) and suggested that a total sulfur limit be used. Total sulfur can be continuously monitored, according to the commenter, and will include sulfur species not included in the definition of "reduced sulfur compounds." The commenter also stated that the need to monitor total sulfur will become even more important as refineries continue to use heavier crude slates. On the other hand, Commenter 0156 stated that EPA should focus the standard on H2S (or TRS, as applicable) and provide an alternative monitoring option for S02 as in subpart J. Response: The focus of the fuel gas combustion device standards is to limit the S02 emissions from the combustion of refinery fuel gas. As such, we intentionally prepared the emission limit in terms of S02. We agree that monitoring total sulfur content more directly correlates with the S02 emissions generated from the combustion of refinery fuel gas. However, based on our revised BDT analysis for removing non-H2S reduced sulfur compounds from the fuel gas, we have concluded that the TRS standard is not BDT. We do maintain the more direct S02 emissions standard in the final rule as an alternative to the H2S standard. 4.1 Tighter Ja Fuel Gas SO2/H2S Standard Comment: Commenters 0150 and 0156 stated that EPA should revise the standard to the familiar 162 parts per million by volume (ppmv) limit. Commenter 0156 stated that this is the appropriate conversion of the 230 milligrams per dry standard cubic meter (mg/dscm) emission limit because the original temperature basis was 68°F. Commenter 0154 recommended that EPA either specify the standard conditions that apply to the 0.010 grains per dry standard cubic feet (gr/dscf) H2S standard or specify that concentration values of 164 ppmv or less are in compliance 24 ------- with the standard (as 164 rounds to 160 with two significant digits). Commenter 0150 noted the effort and cost to update computer systems and title V permits for this minimal change in the emission limit (from 162 ppmv to 160 ppmv) is not justified. On the other hand, Commenter 0161 stated that EPA should explicitly revise subpart J to reflect EPA's intention that 230 mg/dscm is equivalent to 160 ppmv, not 162 ppmv. That would eliminate a great deal of debate (over just a few ppmv) on how to properly convert from the current standard to ppmv. The rule should simply be restated in terms of ppmv, which is also the terms by which it will be measured and enforced, according to Commenter 0161. Response: Standard conditions are defined in the NSPS General Provisions at 40 CFR 60.2 as being 68°F and 1 atmosphere. Using these as standard conditions, the subpart J emission limit is equivalent to 162 ppmv. We did not propose and are not finalizing any revisions to the subpart J emission limit; however, we are clarifying in this response that the subpart J emission limit is effectively 162 ppmv. We agree with the commenter that the NSPS emission limit should be provided in terms of ppmv, as these are the units by which the H2S concentration is typically determined. Therefore, in our proposed subpart Ja rule, we specified the H2S concentration in terms of a ppmv limit. We proposed an emission limit of 160 ppmv for a 3-hour standard and we intended that this limit be applied to three significant digits. However, we agree with the commenter that there is effort needed to adjust reporting output for just a few ppmv. Also, to make it clear that the concentration limit was intended to be evaluated to 3 significant digits and not allow 164 ppmv as a compliant concentration, we are revising the 3-hour standard to state expressly that the concentration limit is 162 ppmv. Comment: Commenters 0148, 0150, 0154, and 0174 recommended adding a 500 lb/day SO2 compliance option specific to flares. Response: The response to this comment is discussed in detail in Chapter 7 of this document and in the preamble to the final amendments and standards. In summary, we are not promulgating the commenter's suggested compliance option. 4.2 TRS in Fuel Gas Comment: Commenter 0148 provided an example of a treatment system installed to meet a facility-wide fuel gas standard of 40 ppmv total sulfur. The commenter estimated the capital cost of the entire system to be $150-million but estimated only the emissions of TRS 25 ------- when reporting the cost-effectiveness for treating the gas from the delayed coking unit (DCU) to be $60,000/ton SO2 reduced. The commenter also indicated that low-BTU gas from flexicoking units would need to be specially treated to achieve a total sulfur content of less than 150 ppmv. The commenter estimated the capital cost to be $61-million and the cost-effectiveness to be $20,000/ton SO2 reduced and noted that the treatment would increase energy consumption, resulting in increases in NOx, CO, and carbon dioxide (CO2) emissions. Commenter 0156 provided an estimate of $50-million (in 2007 dollars) to treat TRS down to 45 ppmv (long-term average), resulting in 142 tons/yr of SO2 reduction to demonstrate that the TRS requirement is not cost-effective (about $352,000 per ton of SO2). Response: As described in the preamble to the final rule, re-evaluated BDT for TRS based on the comments received and concluded that the TRS standard is not BDT. Comment: Commenter 0174 stated that monitoring TRS in refinery fuel gas is not technically feasible over a 425 ppmv span or the general operating range of refinery fuel gas systems. Once calibrated, flame photometric detectors are only accurate over a range of about 50 ppmv, and the TRS concentration in coking unit offgas varies by more than 50 ppmv. Calibrating multiple monitors over individual sections of the total range would be complex and operators would be unable to tell which analyzer is correct where the detector ranges overlap. These difficulties also affect the effectiveness of the suggestion that a refinery could "over treat" the H2S in other fuel gas streams. If the TRS species and concentrations in coking unit offgas cannot be determined, then it is impossible to know how much additional H2S would have to be removed as well as how much additional equipment would be needed to meet the overall TRS emission limit. Without those data, the cost-effectiveness of the proposal cannot be determined for a BDT analysis. Therefore, the commenter stated that EPA should eliminate the requirement to monitor TRS in refinery fuel gas. Response: Total sulfur monitors could be used and would eliminate the issues described by the commenter. Nonetheless, as described in the preamble to the final rule, we determined that the TRS (or a total sulfur) standard was not cost-effective and therefore not BDT. As such, we are not requiring TRS monitoring except for flares as needed to demonstrate compliance with the 500 lb/day SO2 root cause analysis. We note again that total sulfur monitors could be used for these flares if there are operational issues with the reduced sulfur monitors. 26 ------- Comment: Commenter 0156 stated that the new TRS standard would require all new continuous emission monitoring systems (CEMS) to be installed and these costs were not included in EPA's cost analysis. Response: This comment is no longer relevant as we have not promulgated a TRS standard for fuel gas systems. However, we have required TRS CEMS on newly affected flares. In our revised analysis, we included the cost of a total reduced sulfur CEMS for newly affected flare systems. Comment: Commenter 0161 stated that there should be no automatic exemption or limitation on the requirement to monitor all TRS compounds for refineries that do not combust fuel gas from coking units. According to the commenter, other process units can also produce reduced sulfur compounds. The commenter stated that the TRS monitoring requirement should be applicable to all sources, unless a refinery can demonstrate the absence (< 3 percent) of other reduced sulfur compounds, and that the exemption from TRS monitoring should be broadened and made available to all refineries who can qualify. Response: Our data indicate that non-H2S sulfur compounds are only a very small fraction of the total sulfur content of fuel gas streams produced by units other than the coking unit. The commenter provided no data to support that other gas streams contain appreciable concentrations of non-H2S sulfur compounds. Based on the data available, we cannot justify the expense of replacing all existing monitors, and we can only estimate the costs and emission reductions of reducing TRS from fuel gas generated by coking units. We are interested in determining the total amount of sulfur emissions from fuel gas combustion devices and are considering the best way to obtain accurate measurements outside of these NSPS. Comment: Commenters 0138, 0154, 0156, and 0159 stated that TRS is not defined in the proposal and it is unclear, based on the test method and monitoring requirements, what compounds are included in TRS {i.e., Method 16, and Performance Specification 5). Commenter 0159 also noted that the term "coking unit" as used in the TRS standard is not defined, leading to additional ambiguity. Response: We anticipated that essentially all of the sulfur compounds in the fuel gas would be encompassed by the four sulfur-containing compounds (H2S, methyl mercaptan, dimethyl sulfide, and dimethyl disulfide) referenced collectively as TRS in Method 16. 27 ------- However, as we are not promulgating standards for TRS, the requested definitions are not needed. Comment: Commenter 0154 stated that EPA did not establish "standards of performance" for TRS; therefore, the proposed TRS provisions do not trigger CAA section 111(d). The commenter suggested that if any TRS standard is developed, it should be applicable only to entirely new coking units. Commenter 0156 stated that EPA did not provide exposure data or health data as to why EPA included a TRS standard. Commenter 0154 suggested that, if EPA is concerned about TRS in coker fuel gas, the 20 ppmv SO2 concentration limit could be demonstrated initially and every 24 months thereafter as an alternate monitoring plan to show compliance with the fuel gas combustion standards when the fuel gas contains coker fuel gas. Response: We are not promulgating an alternative compliance option for TRS, so the response below is mainly focused the issue of triggering CAA section 111(d). The TRS concentration limit was proposed as an alternative compliance method for an SO2 emission limit; therefore, we agree that this compliance alternative would not trigger CAA section 111(d). As TRS was proposed as an indicator of the SO2 emissions generated during fuel gas combustion, we were not compelled to provide exposure or health data for TRS emissions {i.e., TRS is not emitted, SO2 is). Comment: Commenter 0161 noted that there are many challenges associated with conducting a performance evaluation of a H2S or TRS CEMS using Method 16 because of the different background matrix, which may preclude use of the direct monitoring of fuel gas. Therefore, the commenter stated that the rule should alternatively allow the performance evaluation to be conducted by measuring the SO2 concentration and oxygen (O2) content at the stack and converting back to TRS or H2S on a common basis. Response: First, we are not including TRS limits for fuel gas in the final rule. We do specifically allow direct monitoring of SO2 in the fuel gas standards, so we do not see a need to convert back to TRS or H2S concentration. For flares, we do require reduced sulfur monitors for the fuel gas to assess the 500 lb/day root cause analysis, but we specify Methods 15 or 15A rather than Method 16. 28 ------- 4.3 Process Heaters - NOx and S02 Comment: Commenter 0154 recommended that EPA either develop NOx and SO2 standards that are fuel-specific or exempt fuel gas combustion devices during periods of natural gas curtailment (i.e., when fuel oil is the only alternative). According to the commenter, non- continental U.S. refineries as well as some continental refineries do not have access to natural gas and therefore must use fuel oil in their process heaters. Commenter 0161 stated that the extension of the SO2 standards to process heaters that combust liquid fuels is grossly flawed. The cost to use low-sulfur fuels could be significant (e.g., added hydrotreatment capacity), and these costs were not accounted for in EPA's BDT assessment. The commenter recommended that fuel gas combustion devices that also burn liquid fuels be exempt from the 20 ppmv SO2 limit; the commenter noted that the fuel gas used in these units would still need to comply with the H2S /TRS concentration limits. Commenter 0154 recommended that the definition of "process heater" and "other fuel gas combustion device" exclude units firing liquid fuels so they will not be subject to the SO2 limit. Commenters 0154 and 0174 noted that the 80 ppmv NOx emission limit is not technically feasible for heaters and boilers firing either fuel oil or a combination of fuel oil and refinery gas (duel fuel). Based on vendor information, the commenters estimated that 150 ppmv NOx is achievable when firing ultra low sulfur diesel and about 250 ppmv is achievable when firing residual fuel oil. The commenter stated that it is not cost-effective to install selective catalytic reduction (SCR) or other air pollution control devices (APCD) needed to meet the 80 ppmv limit for the infrequent times that liquid fuels are fired, and EPA did not conclude that the use of SCR for NOx control was BDT. Response: Based on information received during meeting with industry representatives, we expect that most, if not all, new process heaters will be gas-fired. Gas-fired process heaters typically have lower NOx and S02 emissions than oil-fired units, especially units fired with high sulfur fuel oil. While we maintain the SO2 emissions limit, we provide the H2S fuel gas standard as an equal alternative. Also, we revised the definition of fuel gas combustion devices and made the standards specific to fuel gas combustion devices. If the process heater is using only liquid fuels, it would not meet the definition of fuel gas combustion device and would not be subject to the emission limits. If the process heater co fires liquid and gaseous fuels, the fuel gas H2S 29 ------- standard could be used to demonstrate compliance, but the NOx emissions limit would still be applicable. Comment: Commenters 0150 and 0154 suggested that process heaters are more appropriately regulated under a different NSPS because process heaters are universal process units and are not exclusive to refineries. Response: Refineries use a significant number of process heaters, more than most other industries. Additionally, process heaters are the largest contributors to the NOx emissions at a typical petroleum refinery. As such, we see no reason to delay applying NOx controls to new refinery process heaters in favor of an NSPS that does not yet and may never exist. Comment: Commenter 0154 stated that since SO2 emissions from gas turbines (40 CFR part 60, subparts GG and KKKK) and boilers (40 CFR part 60, subparts Db and Dc) are already regulated, these units should be exempt from Ja. Response: As stated previously, gas turbines and boilers are fuel gas combustion devices. Due to the specific nature and use of refinery fuel gas at petroleum refineries, we consider it appropriate to develop specific standards for these combustion devices when fired with refinery fuel gas. Similarly, due to the integrated operation of CO boilers and FCCU, specific standards in subpart J and Ja are appropriate for these units. Comment: Commenters 0154 and 0159 supported the 80 ppmv NOx emission limit but opposed the NOx CEMS requirement, especially for smaller units. Commenter 0159 stated that a NOx CEMS requirement would add $1 million to the project cost. Commenters 0148, 0154, and 0159 stated that NOx emissions from process heaters are stable over long time periods; therefore, compliance is adequately demonstrated using periodic stack tests instead of CEMS. Commenters 0148, 0150, 0154, 0156, 0159, and 0174 recommended that process heaters less than 100 million British thermal units per hour (MMBtu/hr) higher heating value be exempt from the CEMS requirement; Commenter 0174 noted that this level is consistent with the monitoring threshold in the National Emission Standards for Hazardous Air Pollutants for Industrial, Commercial, and Institutional Boilers and Process Heaters (40 CFR part 63, subpart DDDDD) (Boiler MACT) as well as many of the consent decrees. Performance tests on either an annual (Commenter 0148) or biennial (every 24 months; Commenter 0154) basis could be used to demonstrate compliance for smaller process heaters. 30 ------- Commenter 0131 suggested an increase in the size of the fuel gas combustion device on which a NOx CEMS would be placed, from > 20 MMBtu/hr to 150 MMBtu/hr, which is consistent with the consent decrees under the National Petroleum Refining Initiative. Measuring NOx emissions requires a separate CEMS on each heater/boiler and is cost prohibitive, while SO2 CEMS allow measurement of the H2S level in the entire fuel gas system using one CEMS. Response: In our evaluation of the costs for the proposed NOx emissions limit, we included the cost of NOx monitors for all process heaters. Although our cost-estimate for NOx CEMS was significantly less than $1 million dollars, we did assess the relative cost for the emission controls versus the cost for the CEMS. For smaller process heaters, the cost of the CEMS was a significant portion (up to 30 percent) of the overall compliance costs. Furthermore, available data indicate the NOx emissions for process heaters that employ low-NOx burners (LNB) and ultra low-NOx burners (ULNB) are consistent and stable. Therefore, we agree that CEMS are not cost-effective means of ensuring compliance for the smaller process heaters. Based on our evaluation of the costs, and based on public comments, we determined that process heaters with rated heating capacity of 100 MMBtu/hr or higher should install CEMS to demonstrate compliance with the NOx emission limit. For process heaters with a rated heating capacity of less than 100 MMBtu/hr, we provide an alternative biannual testing compliance option for units that have installed LNB or ULNB. Comment: Commenter 0154 stated that the capital costs for retrofitting existing process heaters is understated by EPA's cost analysis because the ULNB are larger than conventional burners. As such, some process heaters would have to be completely rebuilt in order to accommodate the larger ULNB. Response: Although ULNB may be larger than existing burners, there are a suite of control technologies that are assumed to apply to a refinery's various process heaters. Depending on the process heaters, the larger ULNB may still fit within the process heater without significant retrofit issues. In cases where ULNB retrofits are a significant issue, there are other technologies, such as exhaust gas recirculation, advanced system controls for better excess air and temperature control, selective non-catalytic reduction systems, and selective catalytic reduction systems, that are applicable for reducing the NOx emissions that do not have the same retrofit issues. Furthermore, based on discussions with industry representatives, most newly affected process heaters will be newly constructed units. There are only a few occasions 31 ------- in which a process heater would be modified. As such, only a very small percentage of newly affected process heaters would have additional retrofit costs and these costs do not impact the BDT determination. Comment: Commenter 0154 noted a discrepancy between the rule language and preamble discussion regarding the NOx emission limit being a 24-hour rolling average and a 7- day rolling average. The commenter suggested that the 7-day rolling average is appropriate and recommended that references to a 24-hour average be corrected. Response: For process heaters, a 24-hour rolling average NOx limit is appropriate. As this commenter and others mentioned, the NOx emissions from process heaters are very consistent and stable when LNB or ULNB are used. Additionally, process heaters do not have the competing mechanisms of CO control, coke-make, catalyst re-activation, and others of an FCCU that impact the NOx emissions from FCCU. Therefore, we provided a 7-day average for NOx emissions from the FCCU, but maintain the 24-hour average is appropriate for process heaters. The proposal preamble incorrectly stated that compliance is on a 7-day rolling average basis at 72 FR 27182. A 24-hour rolling average is correctly indicated in the proposal preamble at 72 FR 27194 and the proposed rule at 40 CFR 60.102a(g)(3). We have corrected the error in the summary of the requirements in the preamble to the final standards. Comment: Commenter 0131 noted that there are conflicting monitoring requirements for miscellaneous process vents under Refinery MACT I and subpart J. Refinery MACT I allows routing of miscellaneous process vents to process heater or boiler as a control device, and subparts J and Ja suggest that CEMS on the heater or boiler would be required to comply with subparts Ja and Ja fuel gas monitoring requirements. The commenter suggested that subparts J and Ja should provide an exemption from the monitoring requirements when miscellaneous process vents are being routed to a process heater or boiler for compliance with Refinery MACT I. Response: The Refinery MACT I standards were developed to regulate hazardous air pollutant (HAP) emissions. For miscellaneous process vents, the primary concern is organic HAP emissions, which are easily well-controlled by routing these emissions to process heaters and boilers. The Refinery MACT I standards do not, and in fact cannot, address emissions of SO2 because SO2 is a criteria air pollutant and not a HAP. We have provided streamlined 32 ------- procedures by which an exemption from the fuel gas monitoring requirements of individual streams can be obtained if the gases contain low concentrations of sulfur. We see no logical rationale to exclude miscellaneous process vents from the sulfur monitoring requirements provided that the process vent gases meet the definition of fuel gas and do not meet other monitoring exemptions provided in subpart J and Ja for inherently low-sulfur fuel gas. Comment: Commenter 0150 noted that the span requirement for O2 CEMS used in conjunction with NOx CEMS should be 10 percent rather than the 25 percent specified in the proposed rule. Response: In general, we anticipate that the oxygen content will be well below 10 percent in the process heaters (and other pollutant/emission sources for which an O2 correction is required), so that a 10 percent span value would be preferable. However, subpart J specifically requires a span value of 25 and we received comments on the specified 10 percent span requirement for the O2 CEMS in Refinery MACT II as initially promulgated in April 11, 2002. According to these previous comments, many O2 CEMS span checks are made with air, so that the higher span value was specifically requested. Considering these factors, we have revised the span requirements for O2 CEMS for process heaters (as well as other sources) to allow the refinery owners and operators flexibility to set the O2 span at values between 10 and 25 percent, inclusive. Comment: Commenter 0150 requested that EPA exempt any process heater subject to the Boiler MACT (if promulgated prior to promulgation of subpart Ja) from the quality assurance (QA) requirements; at a minimum, these requirements should be harmonized. The commenter requested clarification related to Performance Specification 4a with respect to dual-range analyzers. Response: As noted previously, the Boiler MACT requirements specifically address HAP, while the NSPS address criteria pollutants. As the pollutants being monitored differ, the monitoring and QA requirements are also likely to differ. We reviewed the requirements under the Boiler MACT and the primary requirement for gas-fired boilers and process heaters is a 400 ppmv CO limit. As such, we see little overlap between these rules, especially for process heaters, although some FCCU CO boilers may be subject to both requirements. This CO limit may overlap with the CO limit for certain FCCU CO boilers. The proposal for subpart Ja specifies PS 4, while the Boiler MACT specifies PS 4a. We have revised the requirements for 33 ------- CO monitoring to allow the use of either PS 4 or 4a. Furthermore, we clarify in this response that dual range analyzers are allowed and encouraged under this final rule. When dual range analyzers are used, the low range of the analyzer should meet the requirements of this final rule. Additionally, the zero and span gas checks of the low range are sufficient to satisfy the performance specifications requirements of this rule. 4.4 Monitoring Exemptions and Other Miscellaneous Fuel Gas Comments Comment: Commenters 0124, 0127, 0150, 0154, 0156, and 0159 supported the concept that streams that are "inherently low" in sulfur should not require monitoring. Commenters 0154 and 0156 suggested that "inherently low" should be the same as in EPA's guidance for alternative monitoring plans (AMP) (i.e., the average plus 3 standard deviations (o) is less than 81 ppmv). According to Commenters 0154 and 0156, the 5 ppmv maximum requirement is too stringent. Commenter 0154 also suggested a one-time demonstration if the result is less than 30 ppmv. Commenter 0124 suggested that the rule also explicitly exempt gas streams with de minimis annual sulfur flows, such as pilot gas, regardless of the sulfur concentration in the stream. Commenter 0156 requested that petitions filed under this exemption be effective immediately upon submittal rather than the date of approval. Commenter 0130 disagreed with exempting fuel gas streams inherently low in sulfur content from monitoring. Since the streams are subject to the concentration limits, monitoring is necessary to determine compliance, enforce the limit, and verify EPA's expectation that the stream will not exceed the limit. EPA has stated that without meaningful monitoring, the public, government agencies, and facility officials are unable to assess compliance. Response: The 5 ppmv H2S requirement was established because this level is significantly less than the long-term H2S concentration compliance alternative. Unlike EPA's guidance for alternative monitoring plans, the exemption provided does not rely on on-going periodic monitoring. This lower 5 ppmv concentration limit is what provides the assurance necessary to eliminate the on-going periodic monitoring. That is, setting the acceptance criteria an order of magnitude below the actual concentration limit and requiring that this level be demonstrated over 14 samples provides adequate assurance that the concentration limit is being achieved on a continuous basis. We disagree with the commenter that an acceptance criterion of 81 ppmv or a one-time demonstration of less than 30 ppmv provides an adequate level of 34 ------- compliance assurance with the long-term 60 ppmv concentration limit. If a refinery owner or operator cannot achieve the 5 ppmv limit, the refinery owner or operator may still elect to request an alternative monitoring plan following EPA's guidance. The acceptance criteria for the subpart Ja limit would be average + 3o < 30 ppmv (i.e., half the long-term concentration limit); on-going periodic monitoring would then be required, as specified in EPA's guidance, to ensure continuous compliance. Comment: Commenters 0124, 0127, and 0154 supported the monitoring exemption for fuel gases generated by process units that are intolerant of sulfur. Commenter 0159 stated that an HF alkylation process unit should be included as a unit that is "intolerant" of sulfur. Response: We reviewed data on HF alkylation process units, and we agree that this process unit should be listed as a unit that is intolerant of sulfur. Comment: Commenter 0156 requested that §60.105(b)(l)(ii) be modified to allow for the installation of a blind or valve/car-seal to isolate inherently low sulfur lines from sour gas lines, when these crossover points are used as emergency back-up only. Recordkeeping and reporting requirements to explain times when the blind or seal is opened can be used to demonstrate compliance. Response: We agree that installation of a blind or valve/car-seal to isolate inherently low sulfur lines from sour gas lines is adequate to eliminate fuel gas crossover. If the blind or seal is opened, then monitoring of the fuel gas that is being combusted is needed to demonstrate compliance with the standard. As such, the blind or seal can only be opened during times of process upset or malfunction. Comment: Commenters 0125, 0127, 0138, 0154, and 0159 supported the monitoring exemption for commercial grade products. Commenters 0138 and 0154 stated that the commercial grade product limit should be 60 ppmv (rather than 30 ppmv) since the methyl mercaptan is less volatile than liquefied petroleum gas (LPG). Commenter 0154 also suggested that direct measurement of vapor-phase concentrations with colored stain tubes is a better compliance option than the liquid phase specifications. Commenter 0125 supported the exemption for commercial grade products but requested clarification regarding whether the commercial grade product specifications relate specifically to sulfur. For example, one refinery uses a gas that does not meet the commercial grade standards for natural gas since its CO2 content exceeds the pipeline specifications, and EPA should clarify whether this refinery would 35 ------- have to monitor this gas stream even though the sulfur content does meet the pipeline specifications for natural gas. Commenter 0159 recommended that EPA specifically list commercial-grade gasoline, diesel fuel, jet fuel, LPG, and propylene as streams that are exempt from monitoring. Response: The commenters provided no data to suggest that commercial grade LPG does not typically meet a 30 ppmv sulfur limit. Based on minimum required odorant additions, it appears that methyl mercaptan concentrations should be well below the 30 ppmv sulfur limit. Additionally, the relative vapor pressure of the components in LPG does not really impact the concentration of the LPG fuel gas. LPG is only liquid under pressure; at lower pressures all of the LPG constituents will be in the gas phase when fed to the fuel gas combustion device. Additionally, the rule specifically applies to "gas streams" and it was intended that the commercial grade specification would be evaluated in the gas phase {i.e., assuming that gas stream was derived from the complete vaporization of the commercial product). We intentionally did not list specific commercial-grade products such as gasoline, diesel fuel, jet fuel, etc. because not all of these commercial grade fuels have to meet the low sulfur limits. It is sufficient to state that the commercial grade product specification for sulfur must be 30 ppmv. The commenter makes an interesting point about the high-C02 natural gas stream. To address these comments as well as to clarify our intent regarding the commercial grade exemption, we are revising the exemption paragraph as follows: "Gas streams that meet a commercial grade product specification for sulfur content of 30 ppmv or less. In the case of an LPG product specification in the pressurized liquid state, the gas phase sulfur content should be evaluated assuming complete vaporization of the LPG and sulfur containing-compounds at the product specification concentration." Comment: Commenter 0125 suggested that EPA provide streamlined alternative monitoring schemes or "mixing rules" to allow commercial supplemental fuels (natural gas, propane, or butane) to be added to fuel gas without requiring a fuel gas monitor at each location that mixing occurs. Response: We agree with the commenter. If each individual gas stream meets the concentration limit, then the mixture of gases will meet the concentration limit. Therefore, we provide explicit language in this final rule at 40 CFR 60.104a(j)(4) to allow the refinery owner or operator to demonstrate compliance on the mixture as used in the fuel gas combustion unit or by 36 ------- individual streams used in the fuel gas combustion unit. If all individual gas streams fed to a fuel gas combustion unit meet the provisions of the subpart either by direct measurement or by inherently low sulfur content provisions, then the gas mixture does not need to be measured in order to demonstrate compliance at the fuel gas combustion unit. However, if any of the individually-measured gas streams exceed the allowable concentration limit, then the owner or operator must report an exceedance for that fuel gas combustion unit. In some cases, the refinery owner or operator may avoid certain exceedance events by measuring the mixture. For example, suppose commercial grade natural gas is used to supplement refinery fuel gas at a fuel gas combustion unit. The new provision clarifies that the owner or operator may monitor only the refinery fuel gas stream and not the natural gas/fuel gas mixture to demonstrate compliance. However, if the 3-hour average refinery fuel gas stream H2S concentration exceeds 162 ppmv, then the owner or operator must report an exceedance for that fuel gas combustion unit. However, if the owner or operator monitors the fuel gas mixture entering the fuel gas combustion unit, it may be possible that the fuel gas mixture has an H2S concentration less than 162 ppmv (depending on the amount of natural gas used). Therefore, while we provide the option to monitor individual fuel gas streams, the refinery owner or operator may still want to measure the fuel gas mixture. If the refinery owner or operator elects to measure individual streams, then the owner or operator must report an exceedance for the fuel gas combustion unit if any one of the monitored streams exceeds the allowable concentration limit. Comment: Commenter 0121 recommended that the H2S monitoring exemption for low- sulfur gas streams be authorized with mandated records and testing rather than Administrator approval. Detailed piping diagrams, flow and concentration ranges, descriptions of fuel gas supply, and test data should be maintained on-site where they can be reviewed by an inspector. The facility should also be required to maintain equipment to allow sampling of the fuel entering the combustion device at any time. These records, along with the 5 ppmv maximum concentration limit, should be sufficient for a facility to determine compliance without a review. Response: We agree with the commenter and have revised the final standards to specify that if an owner or operator follows the specifications for completing an application for an exemption from monitoring the sulfur content of a low-sulfur fuel gas stream, the effective date is the date the application is submitted. 37 ------- Comment: Commenter 0154 requested clarification that "Appendix F to Part 60, Quality Assurance Procedures, is not a new requirement when compared to the existing CMS - Continuous Monitoring System - requirements." Response: We do not expect that the direct specification to Appendix F for the H2S monitoring in §60.107a(a)(2)(iii) adds additional requirements to the H2S monitoring requirements in subpart J because the NSPS General Provisions require . .if the continuous monitoring system (CMS) is used to demonstrate compliance with emission limits on a continuous basis, (the CMS is subject to) appendix F to this part, unless otherwise specified in an applicable subpart or by the Administrator." As the H2S monitoring systems in subparts J and Ja are being used to demonstrate compliance with an S02 standard, we expect that the QA requirements in Appendix F (daily calibration drift assessments and quarterly data accuracy assessments) are being performed on these continuous monitoring systems. To clarify that these assessments are required for the H2S continuous monitoring systems, we specifically indicated that the QA requirements in Appendix F are to be followed in proposed subpart Ja rule. We maintain this same language in this final rule as it is our intent that these monitors follow, at a minimum, the QA requirements in Appendix F. 38 ------- Chapter 5 FCCU AND FCU EMISSION STANDARDS 5.1 Fluid Catalytic Cracking Units 5.1.1 PM Emission Limits and Opacity Comment: Commenter 0156 noted that the 1 kg/Mg PM emission limit did not appear in either of the options under §60.102a(b). Commenter 0159 stated that, if EPA does require the 0.5 kg/Mg PM limit for modified and reconstructed units, EPA should include a conditional exemption for cases "demonstrated to the satisfaction of the Administrator that compliance with the standard is technologically or economically infeasible" similar to provisions in 40 CFR 60.283(a)(l)(iv). Response: The co-proposal language in 40 CFR 60.102a(b) did include the correct limits; the two options should have appeared as described in the preamble (72 FR 27190). As explained in the preamble to the final standards, we are promulgating a 1 kg/Mg PM emission limit for modified and reconstructed process units. Comment: Commenter 0154 suggested that, if EPA pursues a 0.5 lb/1,000 lb coke burn PM emission limit based on Method 5B or 5F, a new BDT analysis must be performed and a re- proposal of Ja is needed to allow for public review and comment. Response: The promulgated limit for new FCCU is 0.5 kg/Mg using Methods 5B and 5F, and we disagree that another proposal is necessary. Any refiner commencing construction, reconstruction or modification of a FCCU between proposal and promulgation should have planned to meet the proposed standards, which were more stringent than the promulgated limits. Therefore, no additional efforts should be needed to meet the promulgated limits. Comment: Commenters 0138, 0150, 0154, and 0159 objected to the use of Method 5 in subpart Ja. The commenters asserted that the proposed PM standards are based on very limited emissions data, which do not necessarily reflect the industry as a whole. Commenters 0150, 0154, and 0159 stated that they could not locate data for an (electrostatic precipitator) ESP- 39 ------- controlled FCCU or FCU that was tested with Method 5 and achieved the proposed 0.5 kg/Mg PM emission limit. The commenters concluded that the only basis for the proposed PM limit was the low filterable PM emissions for "Source 88." Commenter 0159 noted that "Source 88" uses a state-of-the-art best available control technology (BACT)-level wet gas scrubber (WGS) that clearly does not represent the broader population of FCCU and control scenarios. Commenters 0150 and 0154 noted that the sulfuric acid mist concentrations for "Source 88" were higher than the filterable PM for many test runs, calling into question the test method results EPA relied upon in its assessment. Commenter 0159 stated that the data set used to support the standard is insufficient, and even though the average Method 5 is only 20 percent more than Method 5B or 5F, the range is significant, with up to a 52 percent difference. Commenter 0148 cited EPA's Fine Particle Implementation Rule (72 FR 20585), in which EPA provided a transition period for developing emission limits for condensable PM2.5 until 2011, as rationale for not using EPA Method 5. Commenters 0150 and 0154 noted that early tests conducted using Method 5 exhibited high PM emission concentrations but were unsure if this was due to test method issues alone or if "changes in process operating conditions" also contributed to the difference. Commenters 0150, 0154, and 0159 suggested that EPA Method 5 is not appropriate for refineries because the sampling line temperature for EPA Method 5 is in the critical zone for sulfuric acid condensation, especially for streams with moisture content of less than 10 percent. Commenters 0150 and 0154 provided calculations of the sulfuric acid that would be captured at various sampling temperatures within the allowable range of EPA Method 5, assuming a moisture content of 5 percent. The commenters cited a 1982 memo for allowing Test Method 5B for NSPS D and Da (see also 44 FR 33580). Commenter 0156 stated that sulfuric acid in a wet gas scrubber would approximately double the amount of PM captured for EPA Method 5 versus Method 5B and expressed concerns that the condensing sulfates may cause blinding of the filters using the 250°F sampling temperature of Method 5. Commenters 0150 and 0154 also stated that EPA should not use vendor guarantees in its BDT determination but should consider the fact that no vendors provide guarantees based on EPA Method 5. Commenter 0170 provided results of a PM case study conducted on an FCCU meeting 0.8 lb/1000 lb coke burn based on Method 5F (as required by consent decree) with an ESP. The study compared filterable PM measured using Method 5F to filterable PM measured using 40 ------- Method 5 to better understand the effects of temperature and sulfate content. The results show that PM collected by Method 5 ranges from 6 to 16 percent higher than Method 5F; during one test, that range resulted in a difference in measured filterable PM emissions ranging from 0.05 to 0.1 lb/1000 lb coke burn. Commenter 0139 noted that one FCCU meets the 0.5 lb PM/1000 coke burn as determined by EPA Method 5B using a huge two-ESP system, but even this control system could not meet EPA's proposed total PM limit that includes condensable PM 100 percent of the time. The commenter also stated that the incremental cost effectiveness of going from 0.5 lb filterable PM to EPA's proposed standard would be beyond EPA's typical cost effectiveness cutoff for NSPS and that EPA must provide a cost-effectiveness analysis to justify a tighter standard based on Method 5. Commenter 0138 did not know the performance of their recently installed FCCU control systems in terms of EPA Method 5 and was, therefore, unsure if the new controls could meet the proposed PM standards. Commenter 0138 stated that "basing the PM standard of FCCU on test methods such as Method 5F that, by EPA's own admission, generates widely varying results is neither sound nor reasonable and would lead to numerous non-compliant events." The commenter also quoted EPA that "coordinating the test method with the pollutant defined by the emissions limit is critical to an effective regulation." Response: We note that the commenters did not appear to consider the PM data that were presented in the background report for South Coast Air Quality Management District (SCAQMD) Rule 1105.1 (Docket Item No. EPA-HQ-OAR-2007-0011-0031) in their critique of the data. Based on data reported in this report, we concluded an ESP could meet a 0.5 kg PM/Mg coke burn limit for filterable PM using test Method 5. The key test data are summarized in Table G-l of the report; the methods used to generate the data in Table G-l are described in Appendix E of the SCAQMD report. The recent performance test data for a wet scrubber tested using the New Jersey method (tested twice, once at 200°F and once at 250°F), similarly suggest that low levels of PM (i.e., 0.5 kg PM/Mg coke burn) can be achieved with a wet scrubber when sampling at 250°F. However, even though the data set is larger than the commenters thought, these data are relatively limited and it is difficult for us to determine if the proposed limits could be achieved by all configurations of FCCU, regardless of control device. We agree with the commenter that 41 ------- suggests that the PM test method should be based on the pollutant being controlled. We endeavor to assess the true impact of the FCCU emissions on the ambient air quality, and we are especially interested in the impacts of condensable PM. However, we note that Method 5 captures only a portion of those condensable emissions, and since the test data using Method 5 are limited, we have concluded that setting NSPS based on Method 5 is not appropriate at this time. We are continuing to develop Method 202 to measure condensable PM and will evaluate the appropriateness of including that method in future rulemaking efforts. (See the response to the next comment for additional information on Method 202). Comment: Commenters 0139, 0154, 0156, 0159, and 0174 stated that EPA should not promulgate a rule based on condensable PM as measured by Method 202 because it is not a reliable and repeatable method for measuring condensable PM from FCCU and FCU. Commenters 0138, 0150, and 0154 stated that EPA has not accounted for the present levels of condensable PM in the FCCU (sulfuric acid, poly cyclic organic matter (POM), and ammonia salts) and noted that these condensable PM would all be measured using EPA Method 202. Commenters 0150 and 0154 cited the positive bias in Method 202 due to S02 adsorption and the limited test data as reasons that condensable PM should not be included. Commenters 0138, 0154, and 0159 also noted that EPA's "average" of 0.5 kg/Mg of coke burn-off (for condensable PM) is statistically meaningless based on the data (although Commenter 0159 provided data to suggest condensable PM from one of their FCCU WGS was 0.27 kg/Mg). Commenter 0159 provided source test data for one refinery where the filterable PM by Method 5B was 0.83 kg/Mg and the total PM emissions by Method 5B and Method 202 combined was 1.1 kg/Mg. The commenters agreed to work with EPA to develop an appropriate technique for measuring condensable PM from FCCU and FCU but opposed the inclusion of condensable PM within the subpart Ja PM emission limit. Commenter 0174 noted that the API Stationary Source Emission Task Force is considering how best to characterize condensable PM emissions and will discuss their plans with EPA in the future. Commenter 0170 stated that particulate matter test methods that include condensable PM are sensitive and complex, and EPA should not include condensable PM in subpart J. The commenter provided results of a PM case study conducted on an FCCU meeting 0.8 lb/1000 lb coke burn based on Method 5F (as required by consent decree) with an ESP. The study compared condensable PM measured using Method 202 to condensable PM measured using 42 ------- conditional draft Method 20x; the study also compared the results obtained by two different contractors using Method 202 to assess the method repeatability. The results suggest that Method 20x has better data repeatability than Method 202. The commenter also stated that Method 20x appears to correct for "artifact pseudo-particulate formation of absorbed sulfates and nitrates in the impinger water train" and noted that Method 20x uses indirect cooling, which causes a controlled condensation that is more representative of atmospheric conditions than the water train used by Method 202. In addition, the commenter stated that there was significant variation between the condensable PM measured by the two different testing contractors using Method 202. Based on these results, the commenter expressed concern over how condensable PM could possibly be measured reliably enough to ensure compliance with a standard. Therefore, the commenter opposed any FCCU PM standard including condensable PM. If EPA does proceed with setting a limit on condensable PM, the commenter urged EPA not to limit the test method to Method 202 but to allow for the approval and use of other test methods that are shown to be more accurate and repeatable, such as Method 20x. Commenter 0121 agreed that it is important to consider both condensable and non- condensable (filterable) PM when evaluating the performance of new, modified, or reconstructed FCCU. The commenter noted that the Texas Commission on Environmental Quality (TCEQ) has considered total PM (filterable and condensable) in their BACT determinations for FCCU in Texas. The commenter recommended that a total PM limit (filterable and condensable) be set at 1 kg/Mg coke burn and encouraged EPA to continue to improve Method 202. Commenter 0146 recommended incorporation of EPA Reference Method 202 in conjunction with Reference Method 5. In the commenter's experience, stack test data from FCCU and FCU show that approximately 5 to 10 percent of total PM is condensable PM. Response: While we agree with the commenters on the importance of condensable PM, there are some concerns regarding the current condensable test method (Method 202). Additionally, we have limited data by which to assess the performance of the BDT with respect to condensable PM. We are currently working with stakeholders, including industry trade organizations, to develop a suitable test method for condensable PM. Once a reliable test method is developed for the condensable PM, we will obtain performance data for the industry, evaluate the condensable PM emissions from FCCU, and assess alternative PM limits that 43 ------- include condensable PM. However, we are not including a limit for condensable PM in this final rule. Comment: Commenter 0152 disagreed with EPA's assertion that a 0.15 kg/Mg coke burn limit would need an ESP with ammonia (NH3) injection and would result in a much lower total PM reduction. There is no technical justification that ESP are the only choice of control equipment to achieve this level and that NH3 injection is a must when ESP are chosen. The commenter stated that: (1) ESP manufacturers indicate ESP built to specifications do not need to rely on NH3; (2) wet scrubber manufacturers indicate they can achieve levels close to 0.15 kg/Mg coke burn; and (3) EPA is not correct in assuming condensable PM formed by NH3 injection will form condensable PM with EPA Method 5 because ammonium sulfate starts condensing below 200°F and will not be captured by EPA Method 5, which captures condensable PM between 250 and 320°F. Commenter agreed that Option 5 in Table 2 should be rejected; it results in higher PM and SO2 emissions than Option 4 because ammonia injection may increase production of condensable PM as it improves control of filterable PM. However, the commenter also stated that EPA overestimated the emission reduction for PM because EPA based reductions on both filterable and condensable PM. Response: Although it may be possible to design an ESP to meet the 0.15 kg PM/Mg coke burn emission limit without the use of ammonia injection, ammonia injection is commonly used. Our assessment of this option relied heavily on the data from the background document for the SCAQMD PM standard. Specifically, Table G-l indicates that there were three ESP that were at or below the 0.15 kg PM/Mg coke burn PM limit. Responses in Appendix K indicate that all three of these refineries were injecting ammonia at the time. The data indicate that the sulfate and condensable PM values for these units were very high (ranging from 1.82 to 4.23 kg/Mg coke burn). The one facility that did not use ammonia injection had emissions of only 0.08 kg/Mg coke burn of sulfate and condensable PM. Thus, while this facility could not meet the 0.15 kg PM/Mg coke burn limit, its total PM emissions, including sulfate and condensable PM, were a factor of 4 to 8 times lower than the units that were meeting the 0.15 kg filterable PM/Mg coke burn limit. In other words, this facility could meet a total 0.5 kg/Mg PM limit with lower emissions of total PM. This facility could reduce its filterable PM emissions by 44 ------- using ammonia injection, which would be a much more economical alternative to building additional ESP collection area, but condensable PM would likely increase. The test methods used to generate the data in Table G-l are described in Appendix E of the SCAQMD report; the filterable data represent AQMD Method 5.2, which maintains the filter portion of the probe at 200°F. As such, we expected that AQMD Method 5.2 would provide higher PM filterable concentrations than EPA Method 5. Nonetheless, five of the six ESP tested met the 0.5 kg PM/Mg coke burn limit, and three of the six ESP tested met the 0.15 kg PM/Mg coke burn limit using AQMD Method 5.2. However, upon further review, we do note that AQMD Method 5.2 does allow evaluation and subtraction of sulfate particulate, so that AQMD Method 5.2 may be more similar to Method 5F than originally considered. This certainly calls into question the achievability of the 0.15 kg/Mg PM standard when using EPA Method 5. We have no test data for any wet scrubber achieving a 0.15 kg PM/Mg coke burn limit, and there is a significant difference between achieving "levels close to" 0.15 kg PM/Mg coke burn and meeting this limit at all times. Furthermore, when we assessed the impacts of the control options at proposal, we included projected impacts on condensable PM. We considered condensable PM to be the PM collected in the impingers of "back-half' of the sampling train. As the impingers that are maintained in an ice water bath, we consider all of the ammonia sulfate as condensable PM (i.e., condensable PM is anything that condenses between the sampling train temperature (250 or 320°F) and the impinger exhaust temperature (approximately 60°F)). Based on the lack of any wet scrubbers meeting a 0.15 kg/Mg coke burn PM limit and the data presented in Table G-l, we concluded that: (1) ESP would be required to meet this limit; (2) ammonia injection would likely be used to meet this limit; and (3) this ammonia injection would likely increase the overall PM emissions from FCCU (as compared with other regulatory options being considered). The commenter provided no additional data to support that ESP as operated by refinery owners and operators are achieving this 0.15 kg/Mg coke burn PM limit without ammonia injection. We therefore maintain that this 0.15 kg/Mg coke burn PM limit based on Method 5B and 5F is not BDT. In response to Commenter 0154, we note that only by considering the impact of condensable PM can we conclude that a PM limit of 0.15 kg/Mg coke burn is not desirable; if we consider only filterable emissions, then this option appears to have more merit. Although the limits that we have analyzed and concluded to be BDT do not include condensable PM, we drew 45 ------- that conclusion by considering all PM. We strove to assess the true impact of the regulatory alternatives on the ambient air quality in our analysis, and we believe that includes acknowledging the effect of the options considered on the total PM emissions. Comment: Commenters 0150 and 0154 stated that EPA made an incorrect assertion that wet scrubbers are generally more effective than ESP in controlling condensable PM. The commenter quoted several reports noting that the removal efficiency of wet scrubbers at removing very fine PM (submicron particles) is relatively poor. Response: As condensable PM are not included in this final rule, the following response is somewhat moot and academic but is provided to address the comment received. While we recognize that wet scrubbers are not necessarily the best control system for removing fine PM, the commenters did not appear to consider the differences in operating temperatures between ESP and wet scrubbers as employed in the petroleum refining industry for FCCU control. The commenter's letter includes the following statement: "Existing particulate control systems do not effectively remove condensable aerosols because the aerosol precursors are often in the vapor state when they pass through the control device. Although the vapors usually condense in a wet scrubber, they often form ultrafine particles which are very difficult to capture" (emphasis added). That is exactly the point: ESP are expected to be ineffective on gaseous aerosols due to the hot operating temperatures; wet scrubbers generally condense these aerosols. While these condensed aerosols "often" form ultrafine PM, they do not always; some of the condensed aerosols agglomerate and are efficiently removed in the wet scrubber. Even if all of the condensed aerosols were PM fine and "difficult" to capture, this does not imply the removal efficiency is zero for the wet scrubber. However, at typical FCCU ESP operating temperatures of 500°F, these aerosols are gaseous and the ESP would be expected to have a very low, if not zero, percent removal efficiency for these gaseous aerosols. If ESP were operated at the same lower temperature as wet scrubbers, it is quite likely that they could be as or more efficient than wet scrubbers at removing this fine PM. Therefore, the context of this statement is important. We did not mean to imply that wet scrubbers were more effective at reducing condensable PM emissions in every application. However, based on the manner in which these control systems are operated in the petroleum refining industry for FCCU emission control, we maintain that FCCU wet scrubbers are expected to effect better condensable PM control than FCCU ESP. 46 ------- Furthermore, in the refining industry, ammonia is often injected upstream of the ESP to "condition" the gas stream and improve PM control. While this conditioning may improve the removal of PM that exists in the gas stream at 500°F, this practice can exacerbate the amount of condensable PM formed in the gas stream (or in the atmosphere) once the gas cools to ambient conditions. As discussed previously, the available test data suggest the condensable PM emissions from ESP that use ammonia conditioning are much higher than ESP that do not. This is another reason why wet scrubbers used to control the FCCU emissions are generally expected to have lower condensable emissions than a comparable FCCU ESP. Comment: Commenter 0161 requested clarification of whether ammonia sulfate is to be included in the determination of PM. In some cases, ammonia sulfate may have been excluded from the PM test data EPA used. The commenter noted that ammonia is often injected to help control PM (in ESP) and NOx emissions, and stated that, at the least, the mass of ammonia in the ammonia sulfate PM collected should not be included in the reportable PM emissions. Response: The final standards in subpart Ja are based on the use of Method 5B and 5F. We will consider methods to measure and reduce PM not measured by these methods at a future time. Comment: Commenter 0150 stated that an adequate BDT analysis must include a showing that, at effective cost, units can meet the proposed PM limit concurrently while meeting the new NOx limit, and that this should include a cross-section of possible operating configurations (e.g., partial-burn versus full-burn regeneration, hydrotreated feed, and other feed quality variables). Commenters 0138, 0150, and 0154 stated that EPA has not considered the increased levels of condensable PM that will result from the proposed NOx control requirements. According to the commenters, the use of SCR or selective non-catalytic reduction (SNCR) to meet the NOx limit will increase the quantities of ammonia salts. Commenter 0154 stated that an ammonia slip of 10 ppmv would increase condensable PM by approximately 0.11 kg/Mg coke burned. The commenters also noted that use of oxygen enrichment may increase sulfuric acid formation. Commenter 0159 stated that EPA failed to account for the higher PM emissions that typically result from higher SOx additive use. For all these reasons, the commenter contended that the BDT determinations are deficient. Response: In developing the revised impacts for this final rule, we accounted for cross pollutant impacts to the extent practicable. As described in additional detail regarding the FCCU 47 ------- NOx emissions limit, the NOx emission limit was selected after considering the secondary impacts {i.e., PM formation from additional electricity generation) of the various options. The commenters did not provide any additional data to assess the anticipated increase in PM emissions. Furthermore, as we are not promulgating a PM condensable standard in this final rule, we do not expect that the NOx controls will have a significant impact on the required performance of the PM control system to meet both the PM and NOx emission limits. The commenter did not provide any data by which to assess the magnitude or the validity of the claim that addition of more SOx additives will increase the PM emissions. Based on the advances in the performance of SOx additives, use of SOx additives are not expected to significantly impact PM emissions. Referring again to the Table G-l in the background document for the SCAQMD Rule 1105.1, there were three facilities that used catalyst additives (as indicated in Appendix K) and all of these three could meet a 0.5 kg/Mg filterable PM limit. Comment: Commenter 0154 stated that the PM standard should be 1 kg/Mg (not including condensable PM) because this is the limit established by the top-performing units in the Refinery MACT II standard. Response: At the time the Refinery MACT II standard was being developed, there were no refineries subject to a 0.5 kg/Mg PM emission limit, so the MACT floor was a PM limit of 1 kg/Mg coke burn for both new and existing sources. Furthermore, the Refinery MACT II standard is a HAP standard and PM was used as a surrogate for the metal HAP emissions. As sulfuric acid mist and other condensable PM are not HAP and not correlated with the metal HAP emissions, it was appropriate to use Methods 5B or 5F and not to include condensable PM in the surrogate metal HAP PM measurement. Also, due to the low concentrations of metal HAP on the PM that was emitted, it was not cost-effective to require additional metal HAP emission control. For example, assuming that the incremental cost effectiveness for a 0.5 kg/Mg PM emission limit is $5,000/ton of PM reduced, the average cost-effectiveness in terms of metal HAP reduction would be approximately $3.5-million/ton of metal HAP reduced. As the NSPS are criteria pollutant standards, it is reasonable to expect that different conclusions are reached when evaluating the cost-effectiveness of the control system based on different pollutant types and more recent performance data. Comment: Commenters 0150 and 0154 noted that there could be difficulty achieving the Performance Specification (PS)-l 1 requirements due to significant differences in condensable 48 ------- PM present in the stack at typical ESP exhaust temperatures and the cooler sampling temperatures used in EPA Method 5, making it difficult to use a PM CEMS. Response: As indicated in previous responses, we recognize that the level of condensable PM present is strongly influenced by the control device operating temperature and the PM sampling temperature. As such, we agree with the commenter that there may be significant issues in demonstrating the performance of the PM CEMS with the PS-11 requirements as proposed. In efforts address this issue and to promote the use of PM CEMS, we have modified the PS-11 requirements to allow PM demonstration using EPA Method 5, 51, or 17. Thus, if a refinery owner or operator elects to install a PM CEMS, then on-going compliance can be demonstrated using EPA Method 17 instead of EPA Method 5. Comment: Commenters 0138, 0150, 0154, and 0159 objected to the single "model plant" approach used in EPA's cost analysis. This model plant approach does not realistically consider important factors such as the inherent sulfur content of the feed, partial-burn versus full-burn regeneration, and FCCU/regenerator size. Commenters 0138, 0150, and 0154 asserted that the purchased equipment costs, which are critical to the overall cost estimates, are underestimated. Costs should not be escalated from estimates that are 20 to 30 years old; rather, new cost estimates should be solicited. Commenters 0138, 0148, 0154, 0156 and 0159 provided estimates of costs and emission reductions for several actual projects. These data indicate that EPA's costs are significantly underestimated and that the proposed standards are much less cost-effective than presented by EPA. Commenter 0154 provided data to show that actual FCCU WGS projects had cost- effectiveness values ranging from $7,000 to $50,000 per ton of PM removed (not including co- control of SO2); FCCU ESP projects ranged from $10,000 to $222,000 per ton PM removed. Commenter 0148 provided cost estimates for a new ESP that is projected to cost $300-million in 2011 and achieve only 168 tons/yr PM reduction. Commenter 0156 recently installed new WGS at a total capital cost of $100-million to meet a 0.5 kg/Mg PM emission limit based on EPA Method 5B. The commenter indicated that additional upgrades on these new scrubber systems would be needed to meet the 0.5 kg/Mg emission limit based on EPA Method 5 at a cost in excess of $50,000/ton of PM removed. Commenter 0159 estimated that costs of complying with the 0.5 kg/Mg PM limit based on EPA Method 5 would range from $43,600 to $127,000 per ton of PM removed. 49 ------- Response: As explained throughout this section, we completely recalculated the cost and emission reduction impacts of the FCCU PM and SO2 standards to consider all existing FCCU. Therefore, the commenter's concerns about the "model plant" approach should no longer be an issue. Although much of the control costs were developed using costs from old cost functions which were escalated to 2005 dollars, this is a common and accepted costing practice. Furthermore, we did solicit a wet scrubber vendor quote for the model FCCU plant in developing the proposed rule. The projected purchased equipment costs (prior to tax and shipping) escalated to 2005 dollars using our costing algorithm were within 10 percent of the vendor's free on board (FOB) estimates. This assessment verifies the appropriateness of the wet scrubber costing algorithm. In the impacts estimated for this final rule, we did increase our auxiliary equipment estimates so that our wet scrubber FOB estimates exactly match the FOB estimates provided by the vendor. In reviewing our ESP costs, we recognized that we did not include costs for ancillary equipment in our purchased equipment costs. Thus, although we generally disagree with the commenter regarding the use of escalation factors, we did conclude that the ESP costs were significantly underestimated at proposal. For this final rule, we did assess the costs of the PM emission reductions independently from (or ignoring the) SO2 emission reductions. Based on our revised equipment cost estimates and nationwide impact assessment, we determined that a 0.5 kg/Mg coke burn PM emission limit based on Method 5 would achieve nationwide emission reductions of 810 tons of PM at a cost of $23,000/ton of PM reduced for existing FCCU (compared to maintaining 1.0 kg/Mg coke burn PM emission limit based on Method 5B or 5F). For new FCCU, the proposed emission limit would achieve nationwide emission reductions of 300 tons of PM at a cost of $6,700/ton of PM reduced. For both data availability and cost reasons, we determined that the 0.5 kg/Mg coke burn PM emission limit based on Method 5 is not BDT (more details are provided in the preamble to the final standards). Comment: Commenters 0138 and 0154 indicated that EPA "did not account for deterioration of the process equipment (e.g., FCCU regenerator catalyst cyclones) and the associated PM emissions increase that typically occurs between process turnarounds." Commenter 0154 suggested that meeting the proposed limit would require more frequent turnarounds, greatly increasing the cost of the proposed rule as well as limiting energy 50 ------- production. Similarly, Commenter 0150 suggested that EPA must demonstrate the ability of units to meet the limit over the duration of the process and pollutant controls' turnaround cycle, which will strongly influence the cost-effectiveness calculation. Commenter 0159 quoted the original NSPS background document (EPA 450/2-74-003) that stated that PM emissions "generally increase about 35 percent during the run (between turnarounds. Response: We reviewed Background Information for New Source Performance Standards: Asphalt Concrete Plants, Petroleum Refineries, Storage Vessels, Secondary Lead Smelters and Refineries, Brass or Bronze Ingot Production Plants, Iron and Steel Plants, Sewage Treatment Plants; Volume 3, Promulgated Standards (Refinery NSPS BID), the 1974 background document referenced by the commenter.2 There is significant scatter in the data in Figure 4-3 on Page 32. Although the linear regression of the data suggests a slight upward slope, one could not reject the hypothesis that the slope of the line is zero. That is, the referenced background document does not irrefutably suggest that all units exhibit a deterioration in control performance. If the performance of the FCCU cyclones does deteriorate, this deterioration would result primarily in more large particles entering the WGS or ESP. These larger particles should be removed from the exhaust stream at very high efficiencies by the downstream WGS or ESP. Nonetheless, although no data are provided regarding when turnarounds occurred, the data presented in Tables G-l and G-2 of the background document for SCAQMD Rule 1105.1, especially for Facility F, appears to support this deterioration in performance. Also, FCCU run lengths have increased from approximately 2 years back in 1974 to approximately 5 years. This additional run length could further exacerbate the deterioration effect, although it is also likely that the increases in technology that afford the longer run lengths are also subject to less deterioration (else they could not sustain the additional run length). We anticipated that the maintenance and monitoring requirements of the emission control systems would prevent significant deterioration in the control system performance. However, we received several adverse comments suggesting that the operating parameters were not good indicators of performance. Consequently, we are increasing the required frequency of performance tests (for units not employing a PM CEMS) to annual demonstrations. 2 U.S. Environmental Protection Agency. 1974. Background Information for New Source Performance Standards: Asphalt Concrete Plants, Petroleum Refineries, Storage Vessels, Secondary Lead Smelters and Refineries, Brass or Bronze Ingot Production Plants, Iron and Steel Plants, Sewage Treatment Plants; Volume 3, Promulgated Standards. February 1974. EPA 450/2-74-003 (APTD-1352c). Docket ID No. EPA-HQ-OAR-2007-0011-0082. 51 ------- We also conclude that, if a refinery owner or operator anticipates that the FCCU control system is prone to deterioration, the control system can be "over" designed to meet the PM limit at the end of the run. The commenters provided no recent data to support the "deterioration in performance" theory in current FCCU operations. Subsequent tests at the wet scrubber in New Jersey indicated that performance was consistent or improved, but these were only 8 months apart. Based on the lack of additional data provided by the commenters, we maintain that the proposed PM emission limits are achievable. By requiring annual performance demonstrations, refinery owners and operators will be able to better assess their control systems' on-going performance and adjust their maintenance schedule to ensure continuous compliance with this final rule. Comment: Commenters 0138, 0154, and 0159 stated that EPA's impact analysis contains several errors and discrepancies. For example, the commenters suggested that EPA double- counted the PM2.5 fraction. Commenters 0138 and 0154 stated that EPA used electricity costs that are in 2004 dollars while all other costs are in 2005 dollars. EPA also stated that labor estimates for operating and maintenance of air pollution control devices are based on EPA's Air Pollution Control Manual, but the labor estimates provided in EPA's analysis are not consistent with the referenced manual. Additionally, Commenter 0138 stated the baseline emissions and emission reductions were qualitatively estimated from the test data rather than being statistically derived. These discrepancies raise concerns regarding the overall accuracy of the estimated impacts. Commenter 0154 stated that EPA did not provide adequate supporting documentation for key assumptions: (1) input values not referenced (e.g., PM emission factors; costs for CEMS); (2) spreadsheet calculations not provided; and (3) referenced data not applied correctly (e.g., meeting minutes indicate four new DCU; EPA assumed five). Commenters 0138 and 0154 stated that EPA overestimated the number and types of affected sources in the fifth year after promulgation. The assumption of 15 refineries' worth of processes is over-simplified and unrealistic. The proportion of new versus modified/reconstructed is unrealistic with no supporting information for the basis of the estimate. The commenters believe the number of affected sources is inflated and they believe that the inflated number of sources causes the proposed standards to appear more cost-effective than they really are. 52 ------- Response: In general the issues raised by these comments do not change the conclusions drawn from the analysis results in any way, but we recognize that these analyses are complicated and difficult to recreate. For example, the commenters alleged that the PM2.5 fraction was double-counted, which was not the case, but we acknowledge that the column labels in Appendix B of Data and Assumptions used in the Impacts Analysis for PM and SO 2 Emissions from Fluid Catalytic Cracking Units and Fluid Coking Units were not clear. There were two columns in the table used to account for filterable PM, one labeled PMIO-FIL and one labeled PM25-FIL. In the analysis, PMIO-FIL represented the PM that was between 10 and 2.5 micrometers ([j,m) and PM25-FIL represented PM that was 2.5 [j,m or less; the labels. Had PMIO-FIL actually included the PM2.5 fraction, then the PMIO-FIL emissions in tons/yr would have to be, in all cases, greater than the PM25-FIL emissions; looking at the values in Appendix B, it is apparent that the PM2.5 fraction was not double-counted. For the final analysis, every table in which these or similar column headings appear includes a footnote that explains the actual meaning of the headings. We specifically indicated that the electricity costs were in 2004 dollars because, at the time that the impact estimates were calculated for the proposed rule, average annual electricity costs were not available for 2005. Electricity and labor costs for 2006, the most recent year now available, have been included in the revised impact estimate for this final rule. Based on the relative contribution of the electricity costs, the lack of 2005 electricity costs would not have been expected to significantly change the impact estimates. Had the 2005 electricity costs been available at proposal, the revision would have increased the total annualized costs for ESP by less than 1 percent and increased the total annualized costs for wet scrubbers by less than 0.5 percent. These differences are completely in the noise of the overall costing assessment. As explained in the impacts memorandum, the labor rates themselves were taken from the May 2005 National Industry-Specific Occupational Employment and Wage Estimates published by the Bureau of Labor Statistics. What was not as clear was how those labor rates were used; the costing algorithm (including labor rates) for venturi-type wet scrubbers was developed using Handbook: Control Technologies for Hazardous Air Pollutants, which was included in the docket.3 Costs for CEMS were estimated from EPA's Cost Model.4 We 3 U.S. Environmental Protection Agency. 1991. Handbook: Control Technologies for Hazardous Air Pollutants. June 1991. EPA/625/6-91/014. Docket ID No. EPA-HQ-OAR-2007-0011-0167. 4 U.S. Environmental Protection Agency, Emissions Measurement Center. 1998. CEMS Cost Model, ver. 3.0, Build #41. http://www.epa.gov/ttn/emc/cem.html 53 ------- acknowledge that we could have included more extensive documentation for some of the values and procedures we used to develop the impacts, but most were generally documented at least minimally in the impacts memorandum or attachments or were simply unit conversions from allowed emission rates. We have made a conscious effort to correct these deficiencies for the final analyses. With respect to the number of DCU, the memorandum actually indicates that there would be six new coking units, four of which were specifically labeled in the Oil and Gas Journal as DCU and two that were not specifically designated. This agrees completely with our assumption of three new refineries' worth of units per year over the next 5 years and our process unit counts, which yields a total of six new, reconstructed, or modified coking units per year. We assumed that one of the affected units would be a fluid coking unit, leaving five affected DCU, which is in perfect agreement with the cited memorandum. Furthermore, the reported number of coking unit construction projects in the Oil and Gas Journal supports the assumptions used to estimate the number of processes impacted. The assumption that new processes units would reflect existing refinery processes was based on input from industry representatives; the number of new versus modified and reconstructed units was based on industry-reported expansion plans. Although criticizing the assumptions, the commenter provided no better basis for estimating the number of newly affected units. Comment: According to Commenters 0138 and 0154, since the consent decrees typically focused on larger refineries, the potential emission reductions will occur primarily at smaller uncontrolled sources. As the control costs associated with smaller processes do not decline as linearly with size as do emissions, the cost-effectiveness of the controls would be worse if EPA had properly accounted for the size of the uncontrolled sources, according to the commenter. Commenter 0138 stated that EPA's proposed PM standard for FCCU under subpart Ja is not cost-effective. The commenter provided site-specific engineering cost estimates to indicate that the PM controls are much less cost-effective than EPA estimates. The commenter strongly supported EPA's co-proposal that modified and reconstructed FCCU comply with the existing subpart J standards for PM (1 lb/1,000 lb coke burn using EPA Methods 5B or 5F). Response: In our assessment for the proposed rule, we attempted to account for the general consent decree requirements. As indicated previously, we completely revamped our analysis for assessing the impacts of FCCU regulatory alternatives in response to this and other 54 ------- comments. For this final rule, we used an FCCU-specific model that takes into account each specific FCCU's size, control configuration, and consent decree requirements to develop impacts for modified and reconstructed FCCU. We also revised our costing analysis for new FCCU. These revisions led us to conclude that BDT is slightly different than proposed. Modified and reconstructed units will comply with the PM emission limit currently provided in subpart J. New FCCU will comply with a PM emission limit of 0.5 kg/Mg coke burn based on Method 5B and 5F. Based on our revised analysis, this standard will reduce PM emissions nationwide by 240 tons/yr at a cost of $5,600 per ton of PM reduced. Comment: Commenters 0129, 0138, and 0154 stated that the 7 percent interest rate used in the impacts analysis is inappropriate for industry. The commenters suggested a minimum interest rate of 10 percent or even 30 to 40 percent used by industry when evaluating new projects. The commenters also suggested that the equipment lifetimes used for some controls are over-estimated. Specifically, wet scrubber lifetimes of 15 years should be used rather than 20 years and SCR catalyst lifetimes of 2 to 3 years should be used rather than 5 years. Response: We are primarily attempting to assess the cost of capital (i.e., if a loan was required). We acknowledge that interest rates vary, but the 7 percent annual interest rate is our best estimate for long-term cost of capital. As some wet scrubbers have been in service for approximately 20 years in FCCU regenerator vent service, we maintain that 20 year lifetime for wet scrubbers is warranted for this analysis. Although some operational difficulties have been observed in SCR FCCU applications, as the more experience is achieved using SCR, we anticipate 5-year catalyst lifetimes can be achieved. Nonetheless, we have revised our cost estimates for SCR to use a 2-year catalyst lifetime. Given the NOx emission limit established in this final rule, we do not anticipate any refineries using an SCR, so that this adjustment does not significantly alter the cost-effectiveness of the NOx emission controls for this final rule. Comment: Commenters 0138 and 0154 asserted that EPA underestimated the operating and maintenance labor hours and used inappropriate and out-dated (2005) labor costs that do not reflect the labor rate increases that resulted after Hurricane Katrina. Commenter 0159 also noted that price escalation after Hurricane Katrina has been significant (63 to 75 percent based on two cases cited by the commenter); therefore, they added a 30 percent escalation factor to the costs that they provided. 55 ------- Response: We reviewed labor rates for the petroleum refining industry for 2006 as published by the Bureau of Labor Statistics. While labor rates may have jumped immediately after Hurricane Katrina, this jump appears to have been temporary in nature. The nationwide average labor rates for production (SOC Code 51-0000) and maintenance (SOC Code 49-0000) workers in the petroleum and coal product manufacturing industry increased by only 3 to 4 percent from 2005 to 2006. Equipment costs were escalated using the Chemical Engineering Plant Cost Index (CEPCI); the CEPCI indicated a 6.7 percent cost increase from 2005 to 2006. Marshall and Swift provides sector-specific equipment cost indices on a quarterly basis. From second quarter 2005 to second quarter 2006, the Marshall and Swift Equipment Cost Index (MSECI) for the petroleum product industry increased by 4.9 percent. From third quarter 2005 to third quarter 2006, the MSECI for the petroleum product industry increased by 6.7 percent. Although details are lacking regarding the time period over which the commenter's price increases actually occurred, it is common for major expansion projects to take several years. We note that from 2003 to 2006, the CEPCI increased approximately 25 percent. At the time the cost analysis was developed for the proposed rule, 2005 data were the most recent annual average data available. The data now available for 2006 do not indicate a significant escalation in labor or equipment costs, as suggested by the commenters. Nonetheless, since average 2006 values are now available, we have revised our cost impacts to average 2006 dollars in response to these comments. Comment: Commenter 0154 stated that EPA did not fully consider the costs of wastewater treatment and the potential issues associated with soluble salts, such as sodium sulfate, in the WGS effluent and National Pollutant Discharge Elimination System (NPDES) discharge permit requirements. Response: We recognize that due to state and local wastewater discharge permitting issues, some significant additional costs may be incurred by some refineries related to the treatment or regeneration of wet scrubber wastewater. At proposal, we assumed that refineries faced with high wastewater disposal costs would elect to use catalyst additives and an ESP or alternate control system, such as a spray dry adsorber and/or baghouse system. Based on information provided by the commenter, the quantity of catalyst additives needed to comply with the SO2 emission limit when using high sulfur feed impacts the overall conversion efficiency of the FCCU, which greatly impacts the economics of this compliance option. However, other 56 ------- alternative compliance options are available for SO2 removal, such as spray dry adsorption, that can be used to comply with the emission limits in this final rule. We evaluated the costs of a spray dry adsorption/baghouse system to comply with the combined S02 and PM limits. The total capital costs of this system are approximately double the costs of a conventional FCCU wet scrubber (compared to a factor of 10 times higher for a regenerative wet scrubber system). The total annualized costs of the spray dry adsorption/baghouse system were also approximately double the costs of a conventional FCCU wet scrubber. While these cost increases are significant, they are relatively small compared to a installing a regenerative wet scrubber system. We specifically evaluated the costs of a regenerative wet scrubber system for the FCU because a wet scrubber is expected to be the only demonstrated control system. Comment: Commenter 0154 suggested that, since a larger wet gas scrubber is needed to meet the PM emission limit, the cost of the WGS (or at least the incremental cost of the larger WGS) should be assigned solely to PM removal. By combining the PM and SO2 emission reductions, EPA is underestimating the cost-effectiveness of the PM controls. Response: As the type and performance of the control system selected depends to a large extent on the emission limits established for both PM and SO2, we considered these factors in total when estimating the impacts of the proposed rule. Although there are still some cross- pollutant impacts, we attempted to segregate the costs of removing PM separately from SO2, in our revised impact estimates. While the incremental cost of controlling PM emissions is higher than the cost of S02 removal, the incremental PM emission reduction is still cost-effective, especially considering 83 percent of the incremental PM reduction is fine PM. Comment: Commenters 0125, 0150, 0154, and 0161 supported the elimination of the opacity requirement in subpart Ja. Commenters 0125, 0150, and 0154 requested that this change be extended to subpart J so that FCCU controlled with WGS do not need to apply for Alternative Monitoring Plans. Commenter 0125 also suggested an exclusion from opacity monitoring "during times of unusual ambient humidity, which can interfere with the proper operation of such devices." Commenter 0150 and 0161 stated that the elimination of the opacity requirement could be contingent on implementation of continuous parameter monitoring system (CPMS) or direct PM monitoring according to the requirement in either subpart Ja or Refinery MACT II. 57 ------- Commenter 0130 stated that an opacity limit is still necessary along with PM CEMS in subpart Ja. Since the total PM limit should be 0.5 kg/Mg coke burn, the opacity limit should be 15 percent, or half of the current 30 percent opacity in subpart J. Response: As wet scrubber control systems were expected to be the primary control system used to comply with the combined SO2 and PM requirements for subpart Ja and as continuous opacity monitoring system (COMS) are not appropriate for wet flue gas streams, we evaluated alternative continuous compliance options for the FCCU regenerator vent. We concluded that operating parameter monitoring along with periodic performance tests would provide as an effective means of demonstrating continuous compliance as a COMS at lower cost for dry flue gas stacks and avoid the technical issues of wet flue gas stacks. We did not modify the opacity requirements in subpart J because we anticipated existing NSPS units would have already installed a COMS or applied for and received an alternative monitoring plan. A PM CEMS is expected to be much more accurate for demonstrating compliance with the PM limit than a COMS. We did include the use of COMS for systems controlled using cyclones as no operating parameter would provide as good an indication of the performance of the control system; the actual opacity operating limit is established based on the results of the site-specific performance test. 5.1.2 NOx Emission Limit Comment: Commenter 0159 estimated the cost-effectiveness of meeting a 20 or 40 ppmv NOx limit to be in the range of $28,000 to $125,000 per ton of NOx removed. Commenter 0154 suggested that LoTOx units have limited operating experience; therefore, their performance has not been demonstrated across a range of FCCU over a long period of time, and LoTOx units should not be considered in the BDT analysis. Commenter 0174 stated that FCC regenerator rebuilds are not likely to provide significant NOx reductions beyond those achieved by catalyst additives. These rebuilds are also difficult and costly. Therefore, the commenter stated that regenerator rebuilds are not cost- effective (especially when looking at the incremental reductions beyond catalyst additives) and cannot be determined to represent BDT. According to Commenter 0146, most FCCU and FCU covered by recent consent agreements are equipped with WGS for PM and SO2 control, and these controls are compatible 58 ------- with cost-effective, demonstrated NOx controls such as LoTOx and WGS Plus technologies that achieve 85 to 95 percent reduction with cost effectiveness values of $4,000 to $7,000 per ton (estimated based on 7 percent interest rate and 15 year equipment life, but given that some units are over 50 years old, a longer equipment life could be used that would further lower the costs). Commenters 0146 and 0149 stated that FCCU and FCU are typically very large NOx-emitting sources that will remain unaddressed by other rulemaking efforts; Commenter 0146 cited rules such as electric generating unit (EGU) multi-pollutant regulation and Clean Air Interstate Rule (CAIR) and noted that FCCU and FCU will remain some of the largest NOx emitting sources in the country following the implementation of these rules to address NOx emissions from other sources. Response: With respect to costs for existing units, special APCD (such as an SCR) are not required for most (if any) FCCU to meet the proposed emission limit of 80 ppmv NOx- There are limited retrofit issues with the use of non-platinum oxidation promoters, advanced oxidation controls, LNB in CO boilers (if applicable), and SNCR. Additionally, several recent wet scrubber installations have been equipped for easy inclusion of LoTOx system, so LoTOx can also be added with minimal retrofit issues for some units. Furthermore, in estimating the impacts of the NOx emissions limit for existing units, we included a significant retrofit cost factor in our analysis to account for the added cost of installing these systems on existing units. We disagree with commenters that suggest that we should ignore the LoTOx system in our BDT analysis. We did not select any one technology as BDT; we identified a suite of potential controls that could be used in different circumstances. Initial performance evaluations showed very high removal efficiencies for the LoTOx system. While we recognize that the technology has had limited application, the available data certainly suggest that an 80 ppmv limit can be easily achieved by the system. While we may agree that we should not determine that the LoTOx system is the sole BDT, it is not logical to ignore this technology as a viable control option, especially for units with existing compatible wet scrubber control systems. In re-evaluating the impacts for FCCU NOx controls, we specifically quantified the secondary impacts of APCD. In addition to the direct PM impacts of SNCR and SCR, SCR and LoTOx units require additional electrical consumption, and we calculated the secondary PM, SO2, and NOx emission impacts of the additional electrical consumption. The cost-effectiveness when looking only at the primary NOx emissions of an emission limit of 20 ppmv was 59 ------- $5,800/ton of NOx removed for new units and $6,800/ton of NOx removed for modified and reconstructed units, and this control option had considerable secondary impacts. We also evaluated higher NOx emission limits. A control option based on an 80 ppmv NOx emission limit provided cost-effective NOx control with little to no secondary impacts. Therefore, as discussed in further detail in the preamble to the final rule, the 80 ppmv NOx emission limit was determined to be BDT. Comment: Commenter 0150 noted that the span requirement for 02 CEMS used in conjunction with NOx CEMS should be 10 percent rather than the 25 percent specified in the proposed rule. Also, the commenter requested that the QA requirement to meet Procedure 1, Appendix F be deleted in §60.105a(e)(5) because the requirement (in Appendix F) is for SO2, not NOx. Commenter 0154 noted that there is a typographical error in §60.105a(e)(5). The section refers to "SO2" several times, but it should refer to "NOx" Response: As discussed previously, we agree that a lower O2 span is acceptable and we have revised the span requirements for O2 CEMS to allow the refinery owners and operators flexibility to set the 02 span at values between 10 and 25 percent, inclusive. We disagree that Procedure 1 is not applicable; Procedure 1 is specifically applicable to NOx CEMS. However, we do acknowledge an editorial error in that §60.105a(e)(5) incorrectly referenced SO2 monitors rather than NOx monitors; the same error also appeared in §60.107a(c)(5). We have revised these paragraphs to correctly refer to NOx monitors, as originally intended. 5.1.3 SO2 Emission Limit Comment: Commenter 0159 stated that EPA grossly underestimated the costs and relied on inflated SO2 emission reductions to support the cost-effectiveness of the proposed standards. According to the commenter, EPA estimated that modified or reconstructed FCCU could meet the proposed limit with existing controls whereas the commenter estimated that four of their seven FCCU would need supplemental pollution control technology to meet the 0.5 kg/Mg PM emission limit. Also, based on Commenter 0159's non-WGS FCCU, which all meet the 50 ppmv limit, the emission reduction achieved by implementing a 25 ppmv limit is on the order of 20 tons/yr rather than 500 tons/yr. Commenter 0138 asserted that the EPA did not account for the fact that 76 percent of FCCU are subject to consent decrees and would already be meeting the proposed 25 ppmv SO2 emission limit. According to the commenter, EPA's baseline 60 ------- calculation for SO2 assumes that all modified and reconstructed units were only subject to J and not to the 25 ppmv limit typical of the consent decree requirements. Commenters 0138 and 0159 stated that the baseline S02 emissions from the 7.2 modified or reconstructed units should be 3,415 tons/yr, not 4,560 tons/yr. Response: After reviewing the proposal analyses, we acknowledge that there was an inadvertent error in the baseline SO2 emission estimates. Although we set up the baseline analysis to account for reconstructed units that are subject to consent decree requirements and are already required to meet the 25 ppmv emission limit, we applied the incorrect emission factor to these units. Although this error did significantly overestimate the proposed rule's anticipated SO2 emissions reductions from FCCU, the proposed SO2 emission limits for FCCU were still cost-effective when the error was corrected. The incremental cost-effectiveness of the more stringent SO2 limit should have been $700/ton of SO2 removed rather than the $220/ton reported in Table 4 of the preamble to the proposed rule. Regardless, this error does not affect the analysis for the final standards because the analysis used at proposal has been significantly revised in response to these and other comments. To estimate the impacts of this final rule, we used an FCCU-specific model that takes into account each specific FCCU's size, control configuration, and consent decree requirements. It is important to note that, while some FCCU with ESP meet the 50 ppmv emission limit, there are non-consent decree FCCU with ESP that do not meet that limit. Moreover, subpart J does not require that level of performance, so there are some units that have much higher emission reductions from baseline (subpart J) to the 25 ppmv SO2 emission limit imposed by this final rule. We also recognize that the actual emission reductions are subject to the size of these higher emitting units. By using the FCCU-specific assessment, we can more appropriately account for these variables. Comment: Commenters 0150, 0154 and 0159 provided data to suggest that the retrofits of existing sources are not cost effective. The average cost-effectiveness of the reported projects by Commenter 0154 was $2,400/ton, and cost-effectiveness values ranged from $70 to $l,000/ton for catalyst additives and from $500 to $8,000/ton for WGS. Commenter 0159 suggested that, if catalyst additives cannot be used, retrofitting an existing FCCU with a WGS would have costs in excess of $100,000 per ton SO2 removed. Response: Based on the majority of the costs and SO2 emission reductions submitted by the commenters, we conclude that the 50 ppmv/25 ppmv SO2 emission limits are cost-effective. 61 ------- Although higher than our estimates, an average cost-effectiveness of $2,400/ton of SO2 removed confirms our original conclusion that the tighter SO2 emission limits are BDT. While we recognize that some selected projects will have higher than average costs, the average nationwide costs by both our analysis and the data provided by the comments support the adoption of the more stringent SO2 emission limits. As all of the projects for which costs were submitted were for existing FCCU, we conclude that the tighter SO2 emission limits are BDT for modifications and reconstructions as well as for new construction. As such, we reject the co-proposed option to allow existing (modified or reconstructed) FCCU to meet only the subpart J standards {i.e., any of the three options allowed under subpart Ja). Comment: Commenters 0125 and 0171 stated that FCCU with no APCD installed should be allowed to meet the 50 ppmv compliance option currently provided in subpart J to units with a control device. Response: We agree. The direct SO2 concentration limit is easily more stringent than the other alternative compliance options based on the graph in the background document to the proposed S02 standards for FCCU, and it is more directly and continuously measured using an S02 CEMS. Comment: Commenter 0159 noted that FCCU feed hydrotreating may be an integral part of the SO2 compliance strategy. In such cases, the SO2 limit may be exceeded when the hydrotreater is down. Therefore, short-term exceptions to the 50 ppmv 7-day average SO2 limit should be provided during times of FCCU feed hydrotreater start-up, shutdown, and malfunction to avoid costly control measures, such as a redundant hydrotreater or a WGS retrofit. Facilities could prepare a Hydrotreater Outage Plan outlining FCCU SO2 minimization steps during hydrotreater outages. Response: We would like to encourage the use of hydrotreaters as a "pretreatment" option for FCCU feed streams. FCCU feed hydrotreaters can be used to effectively reduce SO2 emissions, as well as metal HAP emissions, from the FCCU regenerator with minimal secondary environmental impacts. The FCCU feed hydrotreater also generally increases the yield of the FCCU, and reduced coke make in the FCCU, both of which improve the efficiency and overall environmental performance of the refinery. However, regardless of the method chosen, the FCCU must demonstrate continuous compliance with the SO2 emission limit. Therefore, we have not provided specific provisions for FCCU that pretreat their fresh feed. 62 ------- Comment: Commenter 0154 suggested that the rule should include provisions to use either a CEMS or a CPMS to demonstrate compliance with the SO2 standard, similar to the FCCU PM compliance options. Response: As most FCCU have already installed an SO2 CEMS, the SO2 CEMS requirement has minimal additional cost implications. Furthermore, SO2 CEMS are needed to adequately demonstrate compliance with both the 7-day 50 ppmv SO2 emission limit and the annual 25 ppmv S02 emission limit. Comment: Commenters 0125, 0150, and 0154 requested that EPA include a monitoring option in subpart J §60.105(h)(6) to allow SO2 CEMS data to be used in lieu of daily Method 8 testing for demonstrating compliance with the emission standard in §60.104(b)(2). This request is commensurate with several EPA-approved alternative monitoring plans. Improved understanding of the SO2 catalyst additives demonstrates that sulfur trioxide (SO3) emissions are very small and SO2 monitoring adequately demonstrates compliance. Response: The relative fraction of SO2 and SO3 in the FCCU regenerator exhaust depends both on the combustion conditions in the FCCU regenerator and on the type of catalyst additive used. Based on data collected in the development of the original 9.8 kg/Mg emission limit, up to 60 percent of the SOx emissions could be SO3. The commenters provided no specific test data to support the assertion that the SO3 emissions are "very small" in all cases. In order to employ a higher SO2 monitoring level, the refinery owner and operator will have to develop a site-specific adjustment factor for use in converting the S02 CEMS concentration data to a total SOx concentration and this request should be made on an individual basis. Essentially, daily sampling is required following the procedures in §60.106(i) for 21 days. The 7-day average ratio of SO2 to total SOx emissions are to be calculated for each consecutive 7-day interval of the 21 day sampling period. The lowest S02 to total SOx emissions ratio is to be used to convert the 9.8 kg/Mg SOx emission limit to an SO2 emission limit for the SO2 CEMS. Comment: Commenter 0121 noted that the SO2 concentration standard is stricter for units using oxygen enrichment and requested clarification whether that was EPA's intent. Response: No, that was not our intent. We had originally considered a normalizing the allowable emissions by the process throughput. However, as the SO2 (and NOx) CEMS measure concentration directly and an emission limit that is normalized by throughput would require stack flow rate monitors as well as process throughput recordings, the direct concentration 63 ------- measurement was selected for the proposed rule. According to our calculations, a 50 ppmv SO2 emission rate for an air-supplied FCCU regenerator equates to an SO2 emission rate of 1.43 kg/Mg coke burn and a 25 ppmv S02 limit equates to 0.715 kg/Mg coke burn; we have included these alternative emission limits in the final standards. A similar issue is expected with NOx, so we have also included appropriate alternative NOx limits in terms of the coke burn rate specifically for complete combustion regenerators that use oxygen enrichment. 5.1.4 CO Emissions Limit Comment: Commenter 0154 supported the 500 ppmv CO emission limit but indicated that the standard should not be changed to 0 percent excess air. The commenter also suggested that the rule should include provisions to use either a CEMS or a CPMS to demonstrate compliance with the CO standard, similar to the FCCU PM compliance options. Commenter 0125 similarly indicated that the 0 percent excess air correction of the CO limit may be significant and that EPA did not appear to evaluate the impacts of this change. Commenters 0150, 0154, and 0159 recommended that the 1-hour averaging time for CO be increased to daily averages (midnight to midnight) because non-platinum combustion promoters used to reduce NOx are not as efficient at reducing CO, leading to increased CO emission variability. Commenter 0150 stated that the longer averaging time should also be provided in subpart J for FCCU using additive NOx control. Similarly, Commenter 0170 supported the proposed CO limit for subpart Ja but recommended that the averaging time be extended to a 24-hour rolling average. The commenter stated that the extension is needed in both subparts J and Ja to provide flexibility to minimize NOx emissions. The commenter noted that the combination of NOx catalyst additives and palladium-based CO promoters (instead of platinum-based CO promoters) greatly reduces NOx emissions but can cause greater variation in CO emissions. Two of the commenter's refineries using a Grace XNOx™ additive experienced an increase in CO and had to request a modification of the state CO limits in their permits. The commenter stated that extending the averaging time will allow process set points to be established at levels that will achieve greater NOx reductions with only occasional short-term spikes in CO concentrations that will only cause negligible increases in CO emissions. The commenter also noted that no technical justification for the 1- hour averaging period was found in the supporting documentation for the original subpart J. 64 ------- EPA stated in the preamble to the proposed subpart J amendments that limiting NOx emissions is a higher priority than limiting CO emissions, and the commenter's suggestion helps to achieve the higher priority goal. The commenter noted that the current 1-hour averaging time means an operator must make quick changes to process operating conditions if the CO spikes, which can cause longer-lasting changes to NOx levels. According to the commenter, a longer averaging time would allow an operator to make gradual process changes to bring CO under control while maintaining the NOx values at lower concentrations. Commenter 0149 recommended a limit of 300 ppmv over a 1-hour average for CO for this NSPS as this is demonstrated and achievable in consent decrees. Commenter 0130 stated that EPA should adopt the Boiler MACT CO limit for liquid and gas-fired boilers of 400 ppmv. These CO standards are clearly feasible and address the kind of criteria pollutants that the NSPS is meant to cover. Commenter 0130 disagreed with EPA's decision to retain the existing CO emissions limit of 500 ppmv because using complete combustion catalyst regeneration likely results in higher NOx emissions. EPA has not sufficiently demonstrated or explained the existence, likelihood, or extent of the trade-off of NOx emissions and has not adequately justified its failure to improve upon the existing CO limit of subpart J. Response: We acknowledge that lower CO emission limits are achievable, but we weighed the trade-off between NOx and CO emission control and determined that lower CO emission limits would not result in additional overall environmental benefit when considering the additional NOx formation. Lower CO emission concentrations are achieved by higher combustion temperatures and higher excess oxygen concentrations, exactly the combination of factors that lead to NOx formation. As discussed previously, we selected a NOx emission limit that was achievable for most FCCU using non-platinum catalyst additives and oxidation controls in part due to the secondary PM formation associated with some of the more advanced NOx emission control systems. We maintain that proper combustion control is BDT for CO emissions and an important control option in the suite of controls determined to be BDT for NOx control. Therefore, it is important to consider the impacts of the likely NOx combustion controls on the CO emissions. As the residence time of the gases within the regenerator (and/or CO boiler, if applicable) is on the order of seconds, a proper combustion control feedback loop should easily be able to 65 ------- adjust the air blower rate, oxygen enrichment rate (if used), and other process parameters to maintain proper CO control on an hourly average basis. All of the data in the technical record suggest that a 500 ppmv hourly average CO limit is achievable when using non-platinum oxidation promoters. Additionally, the commenters' statement that they had to a request a modification of their state CO limits in their permits is misleading. Both of the state permits in question had CO limits that were lower than 500 ppmv, and the permits after modifications were still more stringent than the 500 ppmv CO limit in subpart J. In fact, these refineries were still required to comply with the Refinery MACT 2 rule, which requires CO concentrations of 500 ppmv or less on a 1-hour average. No commenter has provided any data to indicate that the 500 ppmv 1-hour CO emission limit cannot be met while complying with consent decree NOx limits. The oxygen correction factor was included to minimize any air dilution effects. Most complete combustion FCCU operate with O2 concentrations of approximately 0.5 to 1.0 percent, the lower end of this range is expected to be used in most cases minimize NOx formation. Partial burn FCCU that use CO boilers typically operate at between 2 and 6 percent outlet O2 concentrations. Again, when considering the co-control of NOx, newNSPS units are expected to operate at the lower-end of this range. Therefore, the O2 correction factor is expected to be a 2 to 10 percent adjustment on the CO emission limit. Based on the available data, we maintain that proper combustion control is BDT for CO emissions and that the BDT can achieve an hourly average emission limit of 500 ppmv CO on a dry basis, corrected to 0 percent excess air, when considering the co-control of other pollutants from the FCCU. Additionally, we maintain that the 500 ppmv limit in this final rule is at least as stringent as the requirements in the Boiler MACT. For gaseous fuels, Boiler MACT requires a 400 ppmv CO limit corrected to 3 percent oxygen; an equivalent limit corrected to 0 percent oxygen is 467 ppmv. Moreover, the 400 ppmv is assessed on a 30-day average. As seen previously, this is likely to be a much less stringent standard in terms of CO emissions than a 500 ppmv hourly average limit. We note that in Boiler MACT, CO is a surrogate for organic HAP emissions. As discussed in the response to comments in the development of the Refinery MACT II, CO is only a good surrogate for organic HAP emission reduction down to a certain point. As the Boiler MACT was using CO as a surrogate for organic HAP emissions, the 400 ppmv 30-day average limit was appropriate. However, for the direct control of CO emissions, we maintain that the hourly average emission limit that has been in-place for more than two decades is most 66 ------- appropriate. We expect that the hourly average limit of 500 ppmv will ensure that a much lower CO emission limit is achieved on a longer-term (24-hour or 30-day average) basis. Therefore, simply lengthening the CO averaging time is expected to increase the overall mass emissions. As described previously in assessing BDT for NOx, we attempted to account for secondary impacts on other pollutants. We concluded that maintaining the 500 ppmv CO emission limit (rather than lowering this limit) and achieving an 80 ppmv NOx emissions limit provides the optimal environmental solution. Comment: Commenter 0154 supported the monitoring exemption for units that demonstrate average CO emissions of less than 50 ppmv. The commenter recommended that the averaging interval for the demonstration be 30 days as in subpart J; the commenter further recommended that the monitoring exemption be valid from the date of submittal rather than the data of approval (consistent with the sulfur monitoring exemptions in the consent decrees). Response: The commenter appears to interpret the requirements in subpart J differently than we do. As the CO emission limit in subpart J is an hourly average limit, the demonstration of the "average CO emissions" being less than 50 ppmv is somewhat ambiguous when a 30-day performance demonstration is required. Based on the required span of the CO CEMS when performing the 30 day demonstration, concentrations exceeding 100 ppmv may not be accurately measured. If a 30-day average was truly intended, a dual range monitor would be needed to accurately measure any short-term hourly excursions to fully verify that the 30-day average emissions were 50 ppmv or less. For example, if a unit typically averages 25 ppmv CO, it could have 18 hourly averages in 30 days that average 1000 ppmv and still meet the 50 ppmv limit averaged over the 30-day demonstration. However, a CEMS with a span of 100 ppmv cannot accurately measure these perturbations, and a demonstration of a 30-day average 50 ppmv would certainly not justify automatic approval as being compliant with the 500 ppmv hourly average CO emission limit. Through this preamble, we clarify that the averaging time of the CO emissions during the 30-day demonstration was intended to be 1-hour averages in subpart J. However, we are not revising the language for this demonstration in subpart J. In subpart J, approval of the written request for an exemption is required. This approval is needed if a small number of 1-hour average CO emissions exceed 50 ppmv dry basis over 30-days, but, to the satisfaction of the Administrator, the refinery has adequately demonstrated that the FCCU achieves an hourly average CO emission limit of 50 ppmv or less. Approval of the written 67 ------- request is also needed because no other parameter monitoring is specifically required under subpart J following the demonstration, but the Administrator may wish to subject the approval of the request upon some measure of the system to ensure the on-going performance of the combustion controls is maintained. To clarify our intent in subpart Ja, we are adding the word "hourly" preceding the . .average CO emissions.. ."in §60.105a(h)(3). Also, as we include specific CPMS requirements for demonstrating on-going performance is similar to the performance during the 30-day demonstration period, Administrator approval is not needed for this purpose. We also note that, if the hourly average CO limit of 50 ppmv or less is achieved during each and every hour over the 30-day demonstration period, Administrator approval is not necessary. Consequently, we have added paragraph (h)(3)(iii) to this section to describe that the effective data of the alternative CPMS monitoring exemption is the date of submittal for demonstrations where all hourly average CO concentrations are 50 ppmv (dry basis) or less. Comment: Commenter 0154 suggested that CO generated from firing auxiliary fuel in the CO boiler should be subtracted from the CO measured to the atmosphere in determining compliance with the FCCU CO standard because the CO boiler is not part of the affected facility under subpart J. Response: This exclusion is not necessary. First, we have defined the FCCU in subpart Ja to include the CO boiler and other systems used for waste heat recovery, so that the emissions from these activities are specifically included in the subpart Ja applicability. Second, with the auxiliary fuel is also auxiliary air, so the concentration-based CO limit already provides additional mass emissions of CO attributable to the combustion of auxiliary fuel. Finally, complete CO destruction is easier to achieve in these post-combustion systems (than in complete combustion FCCU) because the CO boiler does not have the same operating temperature constraint as in the FCCU regenerator, where catalyst activity may be lost at higher temperatures. As such, we maintain that BDT is proper combustion control of these systems and that the BDT can achieve an hourly average emission limit of 500 ppmv CO on a dry basis, corrected to 0 percent excess air. 68 ------- 5.1.5 Operating Parameter Limits Comment: Commenter 0131 requested that FCCU under subpart J be allowed to use CPMS just as units subject to subpart Ja. Response: We did not modify the opacity requirements in subpart J because we anticipated existing NSPS units would have already installed a COMS or applied and received approval for an alternative monitoring plan. Source owners or operators are already allowed by the NSPS General Provisions to request alternative monitoring procedures, such as using CPMS allowed under subpart Ja for sources subject to subpart J. Source owners or operators who wish to make such as request should follow the process given in 40 CFR 60.13(i). Comment: Commenter 0150 stated that there are too many variables affecting coke burn- off rates for the refinery owner/operator to ensure that the maximum coke burn-off rate would occur during the performance test. As such, EPA should provide a 10 percent allowance or a factor based on the ratio of the emission limit and performance test results before reporting is required in the semi-annual reports. This flexibility is also warranted because the daily coke burn-off rate does not directly correspond to the NSPS emission limit. Response: We agree with the commenter that coke make is dependent on a great number of factors, including crude type, catalyst type and additives used, feed rates, and cracking temperature and pressure. We recognize that not all of these factors are readily controlled, so it may be impossible to achieve a maximum coke burn-off rate during the initial performance test. However, the face velocity of the gas within the ESP is a direct function of coke burn rate and the performance of the ESP is strongly affected by the face velocity. As such, the coke burn-off rate is a key parameter to monitor, record, and maintain below certain levels. As indicated in §60.102a(c), we desire that the operating limits not be exceeded on an hourly average basis (we note that we failed to specify the averaging time for the coke burn-off rate in this and other sections; we have clarified this by directly specifying the averaging times in this final rule). However, an exceedance of the hourly coke-burn operating limit is not included in the definition of excess emissions in §60.105a(h) and is not reportable as an excess emission event in the semi- annual reports. Records of the coke burn-off rate are required to be kept as specified in §60.108a(c)(4), but no reporting of the coke burn-off rates is required. Comment: Commenter 0154 supported the idea that compliance with the PM emission limit can be demonstrated by either a CEMS or a CPMS. On the other hand, Commenter 0150 69 ------- stated that PM CEMS have not been adequately demonstrated on FCCU, so they do not consider PM CEMS to be a valid compliance option. Commenter 0161 stated that many refiners have had to install COMS as part of their consent decree. The facilities should only have to use a single method for determining compliance with the FCCU PM limit. Either EPA should rescind the consent decree requirement for COMS or allow facilities that have opacity monitors a means of demonstrating compliance using the existing COMS. The commenter also stated that the correlation between other parameters and the formation of PM is not proven and that surrogate indicators should only be allowed if the facility makes an equivalency determination. Response: Although PM CEMS have not been used in the petroleum refining industry, there are a limited number of PM CEMS operating at electric utilities. Through this rulemaking, we seek to encourage the use of PM CEMS, as these systems provide a more direct measure of the actual PM emissions on a continuous basis than operating limits or opacity monitors. We understand that refiners that are required to use COMS by their consent decree or State and local agencies would have somewhat duplicative monitoring provisions. However, we expect that control device operating parameters will provide a better indication of performance than a COMS for most control systems. We have included a means of establishing an opacity operating limit for FCCU equipped with a cyclone as no control device operating parameter is a better indicator of performance for this type of control device. The opacity operating limit will be determined on a site-specific basis based on the results of the initial performance test. The alternative COMS operating limit is applicable only to units meeting the limit with cyclones. For ESP, operating parameters are expected to provide a better indication of control device performance than a COMS. A COMS is not appropriate for wet scrubber stacks, and continuous bag leak detectors are preferred to COMS for baghouse control systems. We note that opacity is a condition, not a pollutant, and opacity has been used as an indicator of proper control device operation. While it may be possible for a source owner or operator to develop correlations between opacity and PM emissions, extensive performance testing - much beyond that required by PS-11 for PM CEMS - would be necessary and such testing would require many modes of source operation. If the owner or operator chooses not to use an instrumental approach such as a PM CEMS or bag leak detection system, the owner or operator could conduct a series of ongoing emissions testing, perhaps daily or weekly. 70 ------- Comment: Regarding the bag leak detection system monitoring requirements, Commenter 0150 stated that baghouses are not "demonstrated technologies" for FCCU; the commenter did not know of an FCCU that is controlled using a baghouse. The commenter asserted that other "assumptions" made in the preamble about appropriate control technologies for PM and SO2 are not, but must be, demonstrated with performance test data. Commenter 0159 (the one refiner in the US that operates a baghouse) stated that alleviating the cause of a bag leak detection system alarm within 3 hours is unreasonable and recommended that EPA remove this requirement in §60.105a(c)(3) in favor of "action-specific alleviation times to incorporated into the required site-specific monitoring plans." Response: In response to the first commenter, we note that there is a refinery that operates a baghouse control system for the FCCU vent. Baghouses are well-demonstrated control systems for other similar exhaust streams and one has been in operation at a refinery for nearly twenty years. The performance achieved by baghouse control systems in similar continuous service clearly indicates that the proposed emission limits are achievable using a baghouse control system. Nonetheless, performance data for this refinery baghouse were requested and the data received indicate that this system can meet the PM emission limit in this final rule. Given that a bag leak detection system provides a continuous signal proportional to the amount of particulate matter it sees, an alarm above a certain set point would be expected to occur instantaneously. Such quick detection of a problem would allow the source owner or operator ample time to begin correcting the problem using techniques such as compartment isolation and bag replacement or process shutdown. Comment: Commenters 0125 and 0154 requested that the hourly average operating limits for CPMS be changed to daily averages to be consistent with Refinery MACT II and to minimize short-term perturbations (e.g., during rapping events). Commenters 0150 and 0154 disagreed with setting the operating limit based on the lowest hourly average value measured over the three test runs. Instead, the commenters recommended that the operating limit be set as the average value of the three runs. According to the commenters, using the lowest hourly average would require the unit to operate below its demonstrated capacity, resulting in lost production. 71 ------- Commenter 0127 agreed that if parametric monitoring is used, limits must be placed on the parameters. The commenter requested additional clarification on the procedures used to approve a performance test and the parameters set during the test. According to the commenter, §60.104a should include procedures that ensure the permitting authority or EPA Administrator approves the parameter limits and should require the set limits to remain in-place until a subsequent performance test is conducted and new parameter limits are approved. Commenters 0148, 0150, and 0154 addressed the wet scrubber operating parameters. Commenter 0148 noted during development of Refinery MACT II, EPA agreed that a CEMS or CPMS can be problematic for WGS, and it is important that the alternative compliance options in Refinery MACT II be included in subpart Ja. The commenters noted that pressure drop is not a good indicator for jet ejector type scrubbers and suggested deleting the average pressure drop limit for non-venturi jet ejector WGS consistent with Refinery MACT II. Commenters 0150 and 0154 suggested that the liquid-to-gas ratio is not a sensitive indicator of performance in the range of 4 to 20 gallons per 1,000 actual cubic feet per minute (acfm), and above 20 gallons per 1,000 acfm, PM control efficiency can actually decrease in some types of scrubbers. The commenters suggested monitoring just the liquid recirculation rate (not the liquid-to-gas ratio). Commenter 0148 recommended that other operating parameters be consistent with those in Refinery MACT II, specifically: (1) the language for wet scrubber total liquid flow rate; (2) provisions to calculate exhaust gas flow rate; and (3) not requiring Performance Specification 3 (PS-3) for 02 monitors. In addition, Commenter 0156 stated that the CPMS in §60.102a(c)(2) for wet scrubbers should be consistent with current refinery AMP and with applicability determinations issued by EPA Region VI. According to the commenter, these provisions allow the owner/operator to multiply the average pressure drop or liquid-to-gas flow rate determined during the source test by 70 percent to develop the operating limits. This factor is needed to account for differences in these parameters at lower operating rates. Commenters 0150 and 0154 stated that CPMS operating parameters selected for ESP are incorrect. According to the commenters, the ESP used in refinery applications often have multiple fields in series; each field has its own secondary voltage. The secondary voltage in one specific field can drop without a significant change in PM emissions if the secondary voltage in the other fields remains high. The commenters also suggested that, while decreases in power input typically result in higher PM emissions for high resistivity particles, the inverse 72 ------- relationship may be observed for low resistivity particles.5 The commenters suggested that EPA should review the ESP data to determine if power input is a reasonable indicator of performance, and, if so, include only total power input as the monitoring parameter (dropping the secondary voltage monitoring requirement). Commenter 0125 considered the CPMS requirements to be overly restrictive and suggested that EPA incorporate language similar to the following: "If the daily average ESP total power input falls below the level measured in the most recent source test which demonstrated compliance with the emission limit, a source test shall be performed within 90 days at the new minimum daily average ESP total power level." Response: First, we recognize that it is difficult to achieve worst-case hourly average operating limits during the performance tests and that the operating limits are only indicators of the performance of the control device and are not direct measurements of emissions. As such, we intentionally defined excess emissions in §60.105a(h) as the 24-hour periods in which the average operating parameter exceeded the operating limit. That is, reportable exceedances are only those in which the 24-hour average operating parameter falls below the operating limit derived from the performance test. By providing a longer averaging time to determine if operating limit exceedances must be reported, we have provided a small allowance for occasional hourly excursions without having to report each hourly excursion as an excess emissions event, which addresses several of the commenter's concerns. Second, we are a bit surprised at the comments regarding using the lowest hourly average value from the performance tests as the operating limit. The proposed rule acknowledged that there are variances in the hourly operating characteristics of the control system and attempted to provide the owner or operator an appropriate level of leniency in establishing the operating parameters. At proposal, we saw no reason to further limit the range of appropriate operating parameters by averaging the other test run values in order to establish the operating limit, as long as the owner or operator selected the operating limit based on compliant test runs. For example, suppose the liquid-to-gas ratio (LGR) for a wet scrubber was 6, 8, and 10 gallons per 1,000 acfm for the three performance test runs. Assuming all of the test runs were compliant, the proposed rule would allow the operating limit to be set at an LGR of 6 gallons per 1,000 acfm rather than at 8 gallons per 1,000 acfm, which would be the average of the 3 runs. However, the final 5 Richards, J. 2000. "Control of Particulate Matter Emissions." U.S. EPA Air Pollution Training Institute Course 413, Student Manual. August 2000. 73 ------- standards include a requirement to set the operating limit as the average value of the three runs to be more consistent with the NSPS General Provisions and the public comments. The commenters also questioned the usefulness of many of the operating limits. We identified three possible continuous compliance alternatives: 1) a PM CEMS; 2) parameter operating limits; and 3) opacity monitoring. We selected parameter operating limits because PM CEMS have not been demonstrated on refinery emission sources and opacity monitors cannot be used with wet scrubber control systems. Additionally, the 30 percent opacity limit shows poor correlation with control system performance. Therefore, we selected parameter operating limits as the best means of demonstrating continuous compliance. We maintain that liquid-to-gas ratio is the most appropriate operating parameter for wet scrubbers. Additionally, establishing a minimum liquid-to-gas ratio should provide greater flexibility to the owner or operator when FCCU processing rates are reduced. We expect and require that the performance test be conducted near operating system capacity. As such, establishing a limit only for the liquid flow rate performance test would generally require higher liquid-to-gas ratios during times of lower FCCU utilization rates than the liquid-to-gas ratio operating limit. With respect to wet scrubber pressure drop, we agree that pressure drop is not a good indicator of performance for wet scrubbers using jet-ejector systems. We also realize that most FCCU wet scrubber systems employ jet-ejector or similar high pressure nozzle systems to atomize the scrubbing water whether the systems employs a venturi scrubber design or not. For nearly all FCCU wet scrubber systems, the venturi is used for mixing rather than atomization, and the operating pressure drop is not nearly as important an indicator of performance as it is in a traditional venturi scrubber. Therefore, we provided an alternative to pressure drop as an operating parameter for jet-ejector or other atomizing spray nozzles (regardless of wet scrubber type); the alternative requires owners and operators to conduct a daily check of the air or water pressure, as applicable, to the spray nozzles to ensure proper performance. We maintain that secondary voltage is an important indicator of ESP control device performance. We recognize that the secondary currents may vary in different fields of the ESP, so we clarified that the average secondary voltage for the entire system is to be used as the operating parameter, not the secondary voltage for each particular field. Also, as FCCU fines are 74 ------- expected to have high resistivity, we maintain that total power input is an appropriate operating parameter to monitor. Notwithstanding the previous paragraphs, we acknowledge that control device operating limits are only indicators of actual PM emissions performance. The refinery owner or operator may elect to install a PM CEMS is they feel the operating limits are too confining. Also, given the commenters' concerns regarding the ability of the monitored parameters to indicate performance and previous comments regarding deterioration of PM emissions performance between FCCU turnarounds (see Section 5.1.1), we have increased the frequency of PM performance testing to annually. Additionally, an annual performance demonstration for units electing operating limits is more commensurate with the quarterly and annual accuracy determination requirements for units electing to use a PM CEMS. Comment: Commenter 0159 recommended that EPA include provisions for a source- specific monitoring plan for other types of control devices (e.g., cyclones) that do not have specifically-listed control device operating parameter monitoring requirements consistent with provisions in Refinery MACT II. Response: We agree, and we have included a provision to develop a source specific monitoring plan for cyclones or other control systems for which operating parameters are not specifically provided. 5.1.6 Oth er FCCU-related Comments Comment: Commenter 0154 opposed expanding the FCCU applicability beyond the regenerator and air blower (i.e., to include the CO boiler). Response: There are two general types of FCCU, complete combustion (or complete burn) systems that fully oxidize the coke within the regenerator to CO2 and partial combustion (or partial burn) units that convert the coke to a mixture of CO and CO2, which subsequently use a CO or waste heat boiler to complete the combustion process. As the CO boiler is an integral part of the partial burn FCCU, it is reasonable to include it as part of the affected source. Furthermore, all of the data used to develop the FCCU emission limits included the contribution from the CO boiler, if present. That is, the PM and SO2 emission limits are achievable for FCCU that have CO boilers. Furthermore, for partial combustion FCCU, the CO boiler is expected to be the primary contributor to NOx emissions from the FCCU. Allowing partial combustion 75 ------- FCCU to comply with the NOx emission upstream of the CO boiler nullifies the intent of the NOx emission limits. Comment: Commenters 0154 and 0156 supported the proposed revisions to the coke burn-off equation in subpart J (and Ja). Commenter 0121 noted that the definition of K2 in Equation 2 on page 27210 (coke burn-off rate) appears to incorrectly reference "%" in the units. Commenter 0125 noted that the time period associated with the coke burn-off rate determination in §60.102a(c)(l)(ii) was not specified and suggested a 7-day average be used. Commenter 0156 stated that the definition of Qr in the coke burn-off equation should be the same as Refinery MACT II, which allows measurement prior to a precipitator. The commenter also requested that the alternative flue gas rate determination in §63.1573(a)(1) or (a)(2), as applicable, be allowed to calculate Qr. These changes will make the rules consistent and reduce permitting burden for both the agency and the refineries. Response: We agree that the units in the definition of K2 were incorrect and we have corrected the definition units in this final rule. We have also specified the time period for the coke burn-off determination. It was our intent that the coke burn-off rate be calculated hourly, using hourly average input values (flow rate and exhaust gas concentrations), and that these hourly rates would be used to calculate a daily average (calendar day) coke burn-off rate that would be recorded and maintained along with the hours of operation per calendar day as required in §60.105a(b)(3). As such, §60.102a(c)(l)(ii) specifies that the daily average coke burn-off rate must not exceed the level established during the performance test. Only the equation in §63.1573(a)(2) is applicable for determining Qr and this alternative equation was provided in the proposed rule and is also included in this final rule. The equation in §63.1573(a)(1) was provided as an alternative to a CPMS for measuring actual flow rates in the exhaust stream. We have provided this equation as an alternative to the requirement to install a CPMS to measure exhaust gas flow rate in §60.105a(b)(l)(ii). Comment: Commenter 0159 stated that, when it is unsafe to measure gas flow rate between the FCCU and CO boiler, EPA should provide an alternative monitoring option, such as their recently granted AMP. Response: Equation 3 provides a means to calculate the regenerator exhaust gas flow rate if it is difficult to measure. Unfortunately, the referenced AMP was not included in the docket submission so an evaluation of the applicability of the cited AMP to other units could not be 76 ------- determined. Individual facilities do have the right to apply for an AMP if the site-specific conditions warrant alternative monitoring procedures. Comment: Commenter 0125 indicated that the equation used to calculate the PM emission rate (Equation 1 in subpart Ja) places the unit conversion factor in the denominator whereas the corresponding equation in subpart J and Refinery MACT II has it in the numerator. The same equation should be used in all three rules. The commenter also noted that the equation uses Cpm but the definition uses Cs. Response: The unit conversion constant in proposed Equation 1 (promulgated as Equation 3) of subpart Ja is in the denominator just as it is in §60.106(b) of subpart J. There are slight differences in the units used to define the emission terms, but we did maintain consistency with the subpart J equation presentation. Consistency regarding the placement of the unit conversion term between all three rules is not important as ensuring that the value and units of K result in the correct value and units for E, which we have done in subpart Ja. We agree with the commenter that designation for the concentration of total PM was different in the equation and the definition of terms, and we have used the designation "cs" for both in the final standards. Comment: Commenter 0156 noted that there is inconsistency with the use of "0 percent excess air" and "0 percent O2"; the commenter suggested that both subparts J and Ja should consistently use the term "0 percent O2," which is used in 60.106(h)(6) and 60.104a(d)(8). Response: We attempted to consistently use to the term "0 percent excess air" as this is the phrase used in subpart J. However, the equation for correcting to "0 percent excess air" in subpart J defined the adjusted concentration, Cadj, as the "concentration adjusted to zero percent oxygen." In attempts to avoid any confusion on this matter, we defined Cadj in Equation 6 of subpart Ja to indicate that the correction to zero percent oxygen and zero percent excess air are the same. While we agree with the commenter's preference to refer to the "0 percent 02," we recognize that existing NSPS units and local permit agencies are likely to have "0 percent excess air" already in their permits, and we saw no reason to have these permits adjusted simply to revise this language. We believe that it is sufficient to indicate that, for the purposes of subparts J and Ja, these terms have the exact same meaning. 77 ------- 5.2 Fluid Coking Units Comment: Commenters 0148 and 0154 opposed the inclusion of standards for FCU altogether and recommended they be removed from subpart Ja. Commenter 0138 recommended that, if standards are developed for FCU, the FCU standards should only apply to new units and modified or reconstructed units should be exempt from these standards. On the other hand, Commenter 0130 stated that the limits for PM, SO2, and NOx in subpart Ja should apply to all new, reconstructed, and modified FCU, and the commenter objected to allowing reconstructed and modified units to meet subpart J. EPA has not justified or explained the rationale for this "do nothing" proposal. Response: At refineries that have a FCU, the FCU is often the largest emission source. The fact that there are only a few FCU in operation in the U.S. is not sufficient rationale to ignore this very large emission source. Additionally, industry representatives have indicated that it is unlikely that any new FCU will be built because DCU have found preference in the petroleum refining industry. Therefore, limiting the rule only to newly constructed FCU has the potential to be equivalent to no rule at all. FCU are a significant source of PM, SO2, and NOx emissions, and standards are needed to ensure that these sources are adequately controlled. Comment: According to Commenter 0138, one of the four existing FCU is slated for permanent shutdown; the two operated by the commenter have recently installed or are currently installing controls. Commenter 0148 operates the fourth unit, which is used to fuel a co- generation unit; the stack gases from the cogeneration boilers are treated in a limestone fluidized bed scrubber (baghouse) for SO2 and PM control and are subject to emission standard relevant for the cogeneration/power industry. Commenters 0138, 0148, and 0154 noted that under the proposed rule, this FCU would have to install controls for instances when the cogeneration unit is down (about 300 hours per year). The commenters used this facility as an example of why emission controls would not be cost-effective for PM, S02, or NOx. Response: The situation of the off-site cogeneration boilers is unique but does not justify ignoring FCU emissions, as FCU are significant emission sources. We first note that there is very little difference in a CO boiler and a cogeneration boiler. The commenters attempted to distance themselves from the relevant standards for the cogeneration/power industry, but the fact remains that the control devices used for the cogeneration boiler (in this case, a spray dry adsorber/baghouse system) are applicable to control emissions from an FCU CO boiler and can 78 ------- meet the emission limitations required by this final rule. Second, the "solution" proposed by the commenter to add a control system for 300 hours per year is not realistic and does not account for any energy savings the refinery would incur by using the energy produced by the combustion of the gases to off-set steam consumption or other energy needs. Third, the refinery in question is required by consent decree to install a wet gas scrubber on its FCCU. If this refinery anticipated a modification or reconstruction of the FCU was likely in the near future, it could consider the possibility of designing the FCCU scrubber to handle the FCU exhaust for these short time periods. The truth is, there are a variety of solutions possible, but only the worst-cost solution was provided by the commenters. Nonetheless, we developed a cost estimate specific for this refinery, based upon vendor-quoted wet scrubber cost estimates. Assuming only 300 hours of operation per year, we estimated that the total pollutant control costs for this unit would be less than $10,000 per ton of PM/SO2 reduced, which is not unreasonable for these pollutants. Consequently, we conclude that wet scrubbers to control PM and SO2 emissions from FCU are cost-effective and are, therefore, BDT. Comment: Commenter 0130 stated that although EPA's PM and S02 analyses appear to be the same for FCU and FCCU, EPA did not explain why it is considering a total PM limit for FCCU that includes condensable PM but is not considering the same for FCU. Commenter 0130 stated that any PM limit must include condensable PM, as condensable PM account for a large portion of refinery PM emissions and are some of the most hazardous PM emissions. The commenter stated that the total PM limit including both filterable and condensable PM from FCU as well as FCCU should be 0.5 kg/Mg coke burn, and EPA has not demonstrated that current BDT cannot achieve this limit. Response: We were considering including condensable PM for FCU just as we were for FCCU. However, due to unresolved issues regarding the condensable test method and therefore a lack of performance data based on such a method, we are not including limits for condensable PM in this final rule. At the time of proposal, we only had one source test for fluid coking unit. The initial data indicated that the system achieved a PM limit of 0.3 kg/Mg coke burn using EPA Method 5B. The second performance test on the same FCU/wet scrubber system 8 months later indicated that the system achieved a PM emission rate of 0.83 kg/Mg coke burn. As explained in the preamble to the final standards, we have determined that the wet scrubber controlling emissions from this 79 ------- FCU represents BDT, and the two data points for this scrubber indicate that 1.0 kg/Mg coke burn using Method 5B is achievable. Comment: Commenters 0138 and 0154 stated that the consent decrees should not be used as the basis for the proposed standards. The consent decrees were negotiated on a site- specific basis and did not consider cost-effectiveness or technical feasibility. Response: The consent decrees were not used as the sole basis for the proposed standards. The consent decrees often demonstrated that certain emission limitations were technically feasible; separate cost analyses were then conducted to assess whether or not these achievable emission limits were cost-effective and therefore BDT. Comment: Commenter 0154 requested clarification of a "basic wet scrubber" and an "enhanced wet scrubber" as used in EPA's impact analysis. Response: We received vendor quotes for two wet scrubber systems based on the rate and inlet loading of the model FCCU used at proposal. The "basic wet scrubber" is an EDV- 1000 (DuPont™ BELCO®) designed to meet a PM limit of 1.0 kg/Mg coke burn, and the "enhanced wet scrubber" is an EDV-5000 (DuPont™ BELCO®) designed to meet a PM limit of 0.5 kg/Mg coke burn. Comment: Commenter 0154 suggested that there is an inconsistency between the monitoring requirements in §63.105a(b)(2) and the definition of "fluid coking unit" in §63.101a. The commenter believed that monitoring before the CO boiler should be deleted. The commenter also suggested adding an option to monitor after the CO boiler and subtract the contribution of CO from the CO boiler from the atmospheric emissions. Response: The monitoring of CO prior to the CO boiler in §63.105a(b)(2), if needed, is used only to calculate the coke burn-off rate for compliance with the PM standards. To demonstrate compliance with the final exhaust CO emission limit for units with a CO boiler, a separate CO monitor is needed as specified in §63.105a(g). Therefore, we believe that there is no conflict between §63.105a(b)(2) and the definition of "fluid coking unit" and that no additional monitoring option is needed. Furthermore, the CO boiler does not contribute to CO emissions; it acts to reduce the CO emissions. The CO concentration in the exhaust gas entering a typical CO boiler is approximately 2 to 5 percent and the CO concentration leaving the CO boiler is required to be less than 500 ppmv (a 99 percent or greater reduction). When CO boilers are used, the CO 80 ------- CEMS installed to assess the compliance with the CO emission limit must be installed downstream of the CO boiler. Comment: Commenter 0130 noted that delayed coking units (DCU) account for 91.6 percent of the industry's coking charge capacity in 2001 to 2006, and the remaining 8.4 percent was attributed to FCU. Therefore, the commenter's recommended FCU NOx limit of 20 ppmv should also apply to new, modified, and reconstructed DCU. Response: We note that DCU do not have a direct atmospheric vent; therefore, it is not feasible to apply an emission limit to a DCU. The DCU process heaters are subject to the 40 ppmv NOx emission limit for process heaters in the final standards (assuming that the process heaters are greater than 40 MMBtu/hr). 81 ------- Chapter 6 SULFUR RECOVERY PLANT (SRP) STANDARDS Comment: Commenter 0154 supported the proposed 250 ppmv combined SO2 and reduced sulfur emission limit for SRP > 20 long tons per day (LTD) but requested that EPA retain the 300 ppmv reduced sulfur limit for units that do not emit S02. Commenter 0127 stated that the 250 ppmv SO2 standard for SRP is outdated; some SRP have been achieving SO2 limits of 50 ppmv for more than 10 years. Therefore, the commenter recommended that the NSPS limit for new SRP be set at 50 ppmv (dry basis, corrected to 0 percent excess air). Commenter 0127 also supported the 10 ppmv H2S limit for SRP but noted that lower limits have been achieved in practice. Response: The 250 ppmv limit is effectively based on an overall SRP efficiency of 99.9 percent. As described previously, we clarify in the final standards that emissions from the primary sulfur recovery pits must be included for SRP that become subject to subpart Ja. Adequate information was not provided to indicate if the SRP achieving the 50 ppmv SO2 limit is meeting that limit while including sulfur pit emissions. Furthermore, no data were provided to verify that this level of performance on a 12-hour basis (versus a longer averaging period). Based on the data available to the Administrator, the 250 ppmv total sulfur limit (or 99.9 percent sulfur recovery) is achievable for all modified, reconstructed, or new SRP. Comment: Commenter 0161 stated that the applicability threshold criteria should be based on sulfur loading rather than sulfur production because the upstream measurements are easier to make and are more accurate. The commenter suggested that the "miscellaneous correction" refining the 20 LTD cut-off should preferentially state "... except Claus plants that have never processed more than 20 long tons per day (LTD)." Additionally, the requirement to determine and record the hourly production rate and the hours of operation for each SRP should be required only for those sources that claim to be exempt from more stringent emissions standards because they process less than 20 LTD. The commenter also suggested that the time 82 ------- frame for measurement should be once per day rather than once per hour to improve accuracy when pit levels are used. Commenter 0154 suggested that the rule should include provisions to use either a CEMS or a CPMS to demonstrate compliance with the SO2 standard for SRP, similar to the FCCU PM compliance options. Commenter 0154 also suggested that the CPMS alternative to the H2S standard should be determined on a 12-hour rolling average basis like the emission limit. Response: Note that we specifically indicate in the rule that the size threshold is based on the capacity of the SRP and not its actual production. As these are new source standards, affected sources must be able to assess their applicability prior to start-up. Therefore, we reject the suggested clarification that the cut-off should preferentially state "... except Claus plants that have never processed more than 20 long tons per day (LTD)." We appreciate the comments regarding the difficulties in determining sulfur production rates, and we have revised the requirements in this final rule to eliminate most of the commenters' concerns. First, the emission limits for small SRP have been revised to be 10 times higher than the limits for large SRP. For example, if 250 ppmv S02 is assumed to be equivalent to 99.9 percent control (the level or performance assumed for a large SRP), then 2,500 ppmv SO2 should be equivalent to 99 percent control, or the level of performance required for a small SRP. The concentration emission limits can be met with a CEMS. In addition, the requirement to record the hourly production rate and the hours of operation for each SRP has been removed from the final standards. Comment: Commenter 0135 noted that the adoption of a completely different standard for small SRP appears to be based on the assumption that these are non-Claus based units; however, the commenter does operate a small Claus-based sulfur plant where the tail gas from the plant is treated by an incinerator and WGS; the FCCU regenerator tail gas is also fed through the WGS. It would be difficult to segregate the sulfur plant tail gas load from the FCCU tail gas to make an efficiency determination based on LTD of sulfur recovered. Therefore, the commenter asked that EPA specifically allow the standard to be applied to FCCU regenerator and sulfur plant tail gas combined and treated in a WGS, given the high removal efficiency of the unit. Response: It is inappropriate to grant this combined stack an emission limit of 250 ppmv. It is expected that the FCCU would provide the bulk of the total volumetric flow and a 250 ppmv 83 ------- limit would likely allow much higher SO2 emissions than a more specifically targeted compliance option, such as one based on a flow-weighted average. The configuration described by the commenter is quite unique, and it is beyond the scope of these national standards to attempt to address compliance provisions for every possible unique refinery and control system configuration. For this case, the refinery owner and operator should submit an alternative monitoring plan as allowed under §60.13(i) of the NSPS General Provisions. Alternatively, the refinery owner and operator can comply with the 50/25 ppmv S02 standard for FCCU on the combined stream; achieving that level of performance would clearly demonstrate compliance with both the FCCU and SRP emission limits. Comment: Commenter 0161 stated that the 10 ppmv H2S limit is not needed because H2S concentrations are included in the overall S02 emission limit. Commenter 0161 also stated that other reduced sulfur compounds have a higher oxidation temperature than H2S, so using H2S as surrogate indicator of tail gas incinerator efficiency for continuing operation may not be achieving the desired goal of preventing reduced sulfur compound slip. Response: In subpart J, the 10 ppmv H2S limit existed for reductive control systems even though H2S is included in the TRS measurement. With the clarification of the inclusion of sulfur pits as part of the affected source, reduced sulfur releases remain a concern. Considering all of the variations in the emission sources and controls, we maintain that limiting outlet H2S concentrations to 10 ppmv or less is needed to ensure a properly operated and maintained SRP. Furthermore, for the specific case of SRP that employ a tail gas incinerator or similar combustion device, we recognize that H2S oxidation is efficiently achieved and we allow parameter monitoring of the combustion device rather than direct H2S monitoring under this circumstance. Comment: Commenter 0161 stated that small SRP will have to convert flow from a wet to a dry basis and suggested that the moisture content as determined during the initial performance test be allowed for use to perform this conversion, as moisture content of this stream does not vary significantly. Response: We have revised the performance standard and compliance requirements for the small SRP since proposal. This comment is no longer relevant. Comment: Commenter 0161 suggested that the span range for the 02 analyzer of the SRP should be 10 percent as currently specified under subpart J because most SRP will operate at less than 5 percent excess 02. 84 ------- Response: As discussed previously, we agree that a 10 percent span is acceptable for all O2 monitoring systems and we provide flexible limits for the O2 span in this final rule. Comment: Regarding the temperature and 02 operating limits, Commenter 0161 stated that the operating limit should be the lowest level at which compliance was previously demonstrated through successful performance testing (rather than the most recent performance test). Response: As with the CPMS requirements on the FCCU, changes to control system characteristics due to equipment wear are of concern. Therefore, we require the CPMS operating parameters to be determined by the most recent performance demonstration. However, the concern for degrading control device performance is less for SRP tail gas incinerators; therefore, we only require an initial performance demonstration. Additional performance demonstrations may be requested by the State or local agency, or a refinery owner or operator may elect to conduct an additional performance demonstration for the express purpose of establishing new operating parameters. In either case, the owner or operator must determine and use the operating parameter limits established during the most recent performance demonstration because the unit could degrade over time so that the most recent performance test provides the best assessment of allowable operating parameter values needed to meet the emissions limit. Comment: Commenter 0148 recommended that the monitoring requirements associated with the SRP be consistent with those in Refinery MACT II. Specifically, many refineries have CEMS that measure H2S, COS, and CS2. The proposed regulation requires that H2S still be measured but requires that the stream be combusted to measure the S02 in the combustion products. These refiners will incur significant costs to install new CEMS that will do nothing to reduce emissions. Response: In the Refinery MACT II, we exclude H2S because it is not a HAP. However, if a source becomes subject to the Refinery NSPS, monitoring of H2S is required. Comment: Commenter 0154 stated that a compliance option is needed for oxygen- enriched SRP. As these units feed much less nitrogen into the system, their mass emissions per unit of sulfur recovery can be comparable to traditional units, but they cannot meet the 250 ppmv concentration limit. Commenter 0121 also noted that the concentration standard is stricter for units using oxygen enrichment and requested clarification if this was EPA's intent. 85 ------- Response: We acknowledge that the proposed concentration standard for SRP is not appropriate for units that use oxygen enrichment. We would like to encourage the use of oxygen enrichment, as this allows the sulfur plant to run more efficiently and more reliably. We have developed two correlation equations, one for SRP with capacities greater than 20 LTD (Equation 1 in §60.102a(f)(l)(iii)), and another for SRP with capacities of 20 LTD or less (Equation 2 in §60.102a(f)(2)(iii)). The owner or operator of an oxygen-enriched SRP can use these equations to calculate a unit-specific emission limit based on the oxygen concentration. This alternative will allow units that use oxygen enrichment a means to comply with a similar standard as units that use air. Comment: Commenters 0154 and 0156 suggested that EPA should retain the 300 ppmv TRS limit for reduction control systems. According to Commenter 0154, the rule appears to require incineration, which was not included in the cost analysis and which would result in adverse secondary air emissions. Commenter 0156 cited the 1983 review of the NSPS, which states that the 300 ppmv reduced sulfur compound (RSC) standard is roughly equivalent to BDT of 99.8 to 99.9 percent. The higher standard is needed because combustion air used to incinerate the RSC dilutes the resulting SO2 concentration. According to the commenter, lowering the RSC emission standard is arbitrary and will unfairly penalize SRP that do not use an incinerator, when EPA should instead encourage these types of systems, as incinerators consume fuel and increase PM, NOx and CO emissions. Response: We did not require incineration in the proposed rule and we did not intend to. However, it is true that because the proposed SO2 limit is provided in terms of a concentration, the use of an incinerator would effectively dilute the tail gas stream, making it easier to comply with the standard. We minimize the amount of dilution that can occur by requiring the concentration standard to be corrected to 0 percent oxygen, but some dilution does occur as a result of the combustion fuel and auxiliary air required by incinerator. Therefore, in the final subpart Ja, we have retained the limits provided to large SRP in subpart J. We have also included separate emission limits for small SRP in subpart Ja. Comment: Commenters 0154 and 0156 noted that the subpart Ja proposed standard for SRP is a combined SO2 and reduced sulfur compound (RSC) emission limit. However, the monitoring requirement is a total sulfur monitor, which is inconsistent with the emission limit. In cases of modifications or reconstructions that trigger subpart Ja, new CEMS would be 86 ------- required at significant costs but with little or no environmental benefit. The commenter suggested that the rule should specify the use of both an SO2 and an RSC CEMS rather than the total sulfur monitor. If the initial compliance demonstration indicated that RSC concentration was less than 10 ppmv, then the RSC CEM would not be required. If the initial compliance demonstration indicated that SO2 concentration was less than 10 ppmv, then the SO2 CEM would not be required. According to the commenters, this provision will allow most modified units to maintain their current CEMS. Commenter 0156 stated that total installed cost of an RSC CEMS was approximately $250,000. Commenter 0148 also expressed concern that new CEMS would be required for FLEXSORB units at costs of approximately $500,000 for no emission reductions and recommended adopting the Refinery MACT II provisions for monitoring SRP. Commenter 0161 also indicated that Method 15 should not be required when a ceramic thermal oxidizer is employed, as all sulfur compounds would be converted to SO2. Response: For reasons stated in the preamble, we maintained the form of the SRP emission limits in subpart J in subpart Ja. Therefore, these comments are no longer relevant. Comment: Commenter 0161 stated that the rule should allow for site-specific test plans to be approved by the local regulating agency when there are discrepancies caused by sulfuric acid mist between wet chemistry methods and CEMS performance demonstrations {i.e., one method may count it while the other method may not). Response: Site-specific monitoring plans may be requested under §60.13(i) of the NSPS General Provisions. Both permitting authorities and the Agency sign off on test plans as part of title V approval process. Comment: Commenter 0156 noted that there was a discrepancy between proposed §60.102a(e)(3) and §60.106a(b)(3). The emission limit in §60.102a(e)(3) is on a 12-hour rolling average basis; therefore, the excess emission report trigger in §60.106a(b)(3) should also be on a 12-hour rolling average basis. Response: We agree, and we have clarified §60.106a(b)(3) to require reporting of excess emissions for all 12-hour periods where the H2S concentration exceeds the applicable emission limit. Comment: Commenter 0154 noted that the cross-reference in §60.106a(5) [we expect that the commenter meant to indicate §60.106a(a)(5)] should reference §60.102a(e)(2) and not §60.102a(b). 87 ------- Response: The commenter is correct that the cross-reference in proposed §60.106a(a)(5) should not have referenced proposed §60.102a(b). However, because the percent recovery compliance option was removed from the final standards, proposed §60.106a(a)(5) does not appear in the final standards; therefore, there is no need to revise the incorrect reference. 88 ------- Chapter 7 WORK PRACTICE STANDARDS 7.1 General Comment: Commenter 0154 requested clarification on whether the proposed work practice standard requirements apply to existing units and whether or not the work practice standards regarding fuel gas producing units and SSM plans/root cause analysis (RCA) are intended to apply only to new units and not to modified or reconstructed units. The commenter interpreted the rule to say that the proposed DCU depressurization standard is the only work practice standard that applies to modified and reconstructed units (as well as new units). Response: All of the final work practice standards are intended to apply to new, modified, and reconstructed sources. We note that a number of these work practice standards have been revised since proposal; revisions include specifying that the affected facility for the flare management standards is the flare rather than a fuel gas producing unit. Comment: Commenter 0130 suggested that given the significant hazards to human health and the environment posed by volatile organic compound (VOC) emissions, and given that at least one refinery has enclosed its coke cutting operations, the NSPS should require enclosure of coke cutting operations. EPA has not justified or explained its rationale for a "do nothing" proposal. Response: We further investigated the enclosure for coke cutting operations. The enclosure is designed specifically to reduce PM emissions; it is not designed to be a gas-tight enclosure. There is no fan by which the emissions are routed to a central location for treatment/control. As such, the coke cutting enclosure is not expected to effect a reduction in VOC emissions. We could not identify a commercially available and proven process by which the VOC emissions from coke-cutting operations could be cost-effectively reduced. Therefore, we did not establish a VOC emission limit or work practice standard for coke-cutting operations. 89 ------- Comment: Commenter 0156 supported Option 2 recordkeeping and reporting requirements under §60.108a. Response: The only difference between Option 1 and Option 2 recordkeeping and reporting requirements is that Option 1 includes requirements for an SSM plan and RCA (consistent with the requirements of Option 1 for §60.103a) and Option 2 does not (consistent with the requirements of Option 2 for §60.103a). We note that the commenter did not object to the SSM and RCA requirements in general, rather the commenter provided comments on how to improve them. The recordkeeping and reporting requirements must be commensurate with the requirements in the other sections of the rule. The final standards include recordkeeping and reporting requirements appropriate for the final work practice standards. 7.2 Flare Management Comment: Commenters 0125 and 0171 requested that EPA clarify what constitutes the "affected facility" for a flare. Commenter 0171 asked if the knockout drum, flare gas compressor, and pilot gas system are considered part of the affected facility and noted that it does not make sense for replacement of a knockout drum to trigger NSPS applicability. Commenter 0125 suggested that the flare should include only equipment located downstream of the inlet flange to the flare knockout drum. The affected facility for a flare should not include flare gas recovery (FGR) systems, amine systems, steam assist systems, fuel gas monitoring equipment, or any upstream piping or knockout drums not directly located by the flare. Commenter 0125 suggested that EPA could make this clarification in the NSPS General Provisions. Response: The final subpart Ja standards include a definition for "flare" that means an open-flame fuel gas combustion device used for burning off unwanted gas or flammable gas and liquids. The flare includes the foundation, flare tip, structural support, burner, igniter, flare controls including air injection or steam injection systems, flame arrestors, knockout pots, piping and header systems. We also recognize that the general determination of when an affected source is considered to be modified is not easily applied to a flare. Therefore, as explained in the preamble to the final standards, we have provided clarification regarding when a flare is considered an affected source through modification. 90 ------- Comment: Commenter 0174 stated that the requirements for the FMP as proposed are "overly burdensome and unnecessarily broad." The commenter recommended that EPA limit the plan to: (1) technical information about the flare and the upstream equipment sending sulfur- containing gas to the flare; (2) a description of the refinery's plan for reducing flaring of the sulfur-containing gases; (3) plans for minimizing flaring during maintenance, startup and shutdown, fluctuations in gas quantity or quality, and recurring failure of a control device or other equipment; and (4) procedure for a RCA. Under the commenter's plan, refineries would submit a summary of the FMP (to ensure that no confidential information is released) and formal EPA approval would not be necessary (although EPA would have the right to review the full FMP and request any necessary changes). The refinery would review and update the FMP (and the summary, if necessary) each year. The refinery would report any changes to the FMP, instances when the FMP was not followed, and RCA performed (including results) in its semi- annual report. The commenter also noted that sources not subject to subpart Ja but electing to comply with the work practice requirements should be able to include these items in their subpart J periodic report to avoid duplicate reporting. Commenter 0150 noted that FMP must allow for flaring during times when there are safety concerns or it is not cost-effective to recover the fuel gas. In addition, a reasonable timeframe is needed to develop and implement the FMP. Response: In the final subpart Ja standards, the owner or operator may only send 250,000 standard cubic feet per day (scfd) of fuel gas to an affected flare during normal operations. The flare also must have an FMP that includes: (1) methods for monitoring the flow rate to flare; (2) procedures to minimize discharges to the flare system during the planned start- up or shutdown of the refinery process units that are connected directly to the affected flare; (3) procedures for conducting a root cause analysis of any process upset or malfunction that causes a discharge to the flare in excess of 500,000 scfd; (4) procedures to be taken to reduce flaring in cases of fuel gas imbalance; and (5) records to keep during times of fuel gas imbalance and other circumstances that keep the flare from meeting the 250,000 scfd flow rate limit. We note that we view the flare management requirement in the final standards as providing benefits in addition to S02 reductions (it also reduces VOC and NOx emissions and increases the overall energy efficiency of the refinery); therefore, we do not agree with the commenter that suggested limiting the applicability of the flare management practices to those gases that contain significant quantities or concentrations of sulfur. 91 ------- Comment: Commenters 0154 and 0156 supported the co-proposal of no restrictions on routine flaring at refineries that are "fuel gas rich." Additionally, Commenter 0154 suggested the term "fuel gas rich" should be changed to "periods of fuel gas imbalance" to accommodate instances when significant fuel gas consumers (e.g., catalytic reforming units) are down and the refinery temporarily produces more fuel gas than it can consume. Similarly, Commenter 0150 noted that the FMP must allow for flaring during times when the refinery is "long on fuel gas." On the other hand, Commenter 0126 did not believe an exemption for fuel gas-rich refineries was needed as that would be a very unlikely occurrence. Response: We anticipate that a FGR system will be a common method chosen to comply with the flow rate requirements when a flare is currently used on a continuous basis. For refineries that are not fuel gas-rich, recovered fuel gas offsets natural gas purchases. The cost- effectiveness of the FGR system is primarily dependent on the quantity of gas that the system can recover. Based on estimates of current flaring quantities, we anticipate that the cost- effectiveness of the FMP, including FGR systems when needed, is approximately $500 to $1,500 per ton of S02 reduced. Flare gas recovery will also reduce NOx and VOC emissions. Many refineries have already implemented similar work practices through consent decrees and local rules (BAAQMD and SCAQMD), and these requirements have had a demonstrated reduction in flaring events. Furthermore, we find that these work practices are cost-effective and are, therefore, BDT. However, FGR is not practical if there is no place in the refinery where the gases can be used. If a refinery does not purchase any natural gas and fires all on-site boilers and process heaters with fuel gas and still has excess fuel gas, then that refinery is considered fuel gas-rich. In this case, there are only two real options for the excess fuel gas: (1) either burn the excess fuel gas in an additional boiler or turbine to produce steam and/or electricity (for either on-site or off-site use, "cogeneration"); or (2) flare the excess fuel gas. Therefore, we have provided refinery owners and operators a provision to flare excess fuel gas if the refinery can demonstrate that it is producing more fuel gas than it can use. As mentioned by the commenter, being fuel gas rich on an on-going basis is rare. It is even more unlikely that the quantity of excess fuel gas is sufficient to make the cogeneration option economically viable or cost-effective. Any owner or operator of an affected flare at a refinery that has been or has the potential to be fuel gas-rich 92 ------- should use the FMP for that flare to address procedures to follow and records to keep during times of fuel gas imbalance. Comment: Commenters 0148, 0154, 0156, and 0159 stated that there should be no limit on routine flaring of gas that meets the H2S concentration limits. According to these commenters, the prohibition on "routine flaring" even for gas that meets the H2S concentration limits could also be interpreted to ban the use of sweep or purge gas that is needed for safe flare operations. Commenter 0125 recommended that flare header sweep gas and flare stack purge gas be specifically excluded from the definition of "fuel gas" or from the fuel gas monitoring requirements. Commenter 0125 also suggested that EPA provide a regulatory allowance for flaring gas during "boiler-code mandated inspections of pressure vessels in the flare gas system." Commenters 0156 and 0159 also stated that product or vessel blanketing gas should be exempt from the prohibition from flaring. Additionally, some gases, such as high hydrogen or nitrogen streams, can cause upsets of the combustion units, which would lead to increased flaring compared to the direct flaring of these gases. Therefore, flaring of these gases should be allowed. Commenter 0174 added that a requirement to eliminate "routine" flaring also conflicts with many regulations (Federal and State) that provide standards for the use of flares as a control device for HAP and VOC. Response: The final standards do not define or prohibit "routine" flaring. Instead, they require the owner or operator of an affected flare to monitor the flow rate of that flare and limit the flow to the flare to 250,000 scfd under normal conditions. Therefore, exemptions for the specific situations mentioned by the commenters are unnecessary. While we agree that sweep or purge gases are needed for safe flare operations, we disagree with the notion that there should be no restrictions on flaring sweet fuel gas unless, as noted before, the refinery is fuel gas rich. Flaring sweet fuel gas while purchasing natural gas, steam, or electricity reduces the overall efficiency of the refinery, increases the total energy consumption, and increases emissions. Sweep gases needed to ensure proper operations of the flare systems should easily fit into the 250,000 scfd limit. Flaring less than 250,000 scfd of gas that is low in sulfur content is unlikely to exceed the 500 lb/day S02 trigger for a RCA. As such, there would be little or no burden to the refinery for this low-sulfur fuel gas flaring, provided that it is not an on-going or continual event. Similarly, we believe that the once-a-year, short-term flaring episode that may be associated with a mandated boiler code inspection would not exceed 93 ------- the 500 lb/day SO2 trigger for a RCA and would not greatly burden the refinery owner or operator. However, as long as a refinery is purchasing natural gas from off-site, we see no reason to waste natural resources by continuous flare operation when FGR is generally cost- effective and provides significant environmental benefits. Finally, the change to allow 250,000 scfd flow rather than restricting "routine" flaring should allow flares to be used as control devices for other standards. If more than 250,000 scfd of gas is burned with an affected flare, the FMP should address the situation. Comment: Commenter 0154 indicated that the rule language regarding SSM plans is unclear and appears to apply to "all equipment," not just to the equipment that is an affected facility subject to subpart Ja or part of the fuel gas producing unit. Commenter 0156 stated the term "process equipment," which is used in the SSM plan requirements [§60.103a(b)], is not defined in the regulation, and the section should instead refer to "affected facilities as defined in §60.100a(a) " Additionally, amine treatment systems are not affected facilities in §60.100a(a), so they should not be included in §60.103a(b)(l). Also, Commenter 0156 suggested that the phrase "refinery process unit subject to the provisions of this subpart" in the last sentence of §60.103a(b)(l) should be replaced with the phrase "affected facility." Commenters 0138 and 0154 stated that the Administrator's authority to require changes to the SSM Plan in §60.103a(b) must be limited to changes that are consistent with the BDT (i.e., flare minimization, not flare prohibition during start-up and shutdowns). Commenter 0154 provided suggested language to §60.103a(b)(5)(i) and (ii) to limit revisions to those where the cost-effectiveness would be no greater than $2,000 per ton of pollutant reduced. Response: The final standards no longer require a SSM plan, so most of the commenters concerns should be addressed. We note that as proposed, the SSM plan was to include "a program of corrective action for malfunctioning process, air pollution control, and monitoring equipment used to comply with the requirements of this subpart." As such, it did not include "all process equipment," but only process equipment used to comply with the requirements of this subpart. In addition, we note that the proposed SSM plan was specifically intended to include amine treatment systems and other control systems used to meet the S02 standards for fuel gas combustion devices or the alternative fuel gas standards. We have included a new definition of a "fuel gas system" which is used, among other things, in the explanation of when a flare is considered to be modified. This definition specifically includes "units used to remove sulfur 94 ------- contaminants from the fuel gas (e.g., amine scrubbers)" so there should be no confusion that we intend for amine scrubbers to be considered control systems, but amine treatment systems are not an affected facility in subpart Ja.. The final standards do not specifically grant the Administrator authority to require changes to the FMP. We note that in general, we reject the idea that $2,000/ton is not cost- effective, especially for SO2 reductions when there are other collateral benefits (VOC and NOx reductions), and if the SSM plan was required in the final standards, we would reject the suggestion that changes made by the Administrator to a FMP be limited to those where the cost- effectiveness would be no greater than $2,000 per ton of pollutant reduced. Comment: Commenter 0150 suggested a voluntary program to incorporate FMP at refineries. Commenter 0154 suggested that reduction in flaring may be achieved through voluntary programs, amendments to the NSPS General Provisions, or amendments to Refinery MACT I. The commenter also suggested that FMP requirements could be added to the engineering standards for flares in the NSPS General Provisions; in a later comment letter (0174), the commenter concluded that the appropriate location for refinery flare standards is subparts J and Ja. Commenter 0154 supported enforceable plans implementing procedures for pre-planning for flare management practices during planned maintenance events and for implementing safe and reasonable prevention measures identified from a RCA. Response: We do not believe a voluntary program is appropriate because refineries will typically only voluntarily install a FGR system when the fuel gas recovery credits provide a payback of the capital expense within a year, whereas we consider these systems to be highly cost-effective even when the payback period is 10 or 15 years. We reviewed the potential to regulate flares under other subparts, but we conclude that the refinery fuel gas and flare systems are largely unique to the petroleum refining industry and that regulation of these systems in this rule is appropriate. Comment: Commenters 0148, 0150, 0154, and 0174 suggested that a 500 lb/day SO2 standard tied with an FMP requirement should be added as an alternative compliance option (to the H2S concentration limit) for flares. The commenters recommended that this alternative compliance option be provided in both subparts J and Ja and noted that it could be used as an incentive for the FMP to cover all flares. Commenter 0154 also noted that these requirements should be applicable to flares that receive process gas, fuel gas, or process upset gas; they should 95 ------- not be applicable to flares used solely as an air pollution control device, such as a flare used exclusively to control emissions from a gasoline loading rack. Commenter 0174 clarified that if the refinery elects to comply with this alternative for any flare, all flares at the refinery would need a FMP. The commenter noted that EPA could choose to set the 500 lb/day SO2 limit as a total for all flares for which the alternative compliance option is chosen (i.e., if the alternative compliance option is selected for two flares at a refinery, the total emissions from both flares would be limited to 500 lb/day). Response: The final standards include a requirement to develop and follow a FMP that includes all units tied to an affected flare. While 500 lb/day SO2 was established as the trigger for initiating a RCA, we do not believe an exemption from the fuel gas standards is warranted for emissions below this level, especially if they are on-going, routine releases, which we have already indicated should be recovered, and we see no rationale for this emission limit to be BDT. This alternative would appear to promote the use of flares for low volume gas streams that may not currently be combusted without amine treatment. Additionally, this emission limit, which translates to 90 tons/yr of potential S02 emissions, would most likely be implemented on a per fuel gas combustion device basis, so that the inclusion of this alternative could increase SO2 emissions by hundreds of tons per year per refinery. Comment: Commenter 0131 suggested an exemption from the fuel gas standard should apply to such de minimis events that are less than 500 lb of SO2 in a 24-hour period to avoid reporting of flaring events that do not result in significant emissions or exceedances of permitted limits. This exemption is consistent with the consent decrees and title V upset condition reporting and State deviation reporting requirements. Commenter 0124 recommended that EPA follow a simple flare regulation such as the one adopted by the State of Montana in its Billings/Laurel state plan. Key aspects of the plan, according to the commenter, include: (1) reporting of significant flare events (using engineering calculations, not CEMS); (2) exclusion for tracking de minimis events; and (3) limiting "routine" flaring to levels demonstrated by modeling to assure compliance with NAAQS. Due to the variation in flow rates and concentrations of fuel gas sent to a flare, CEMS capable of covering the range of flows or concentrations are either unavailable or inaccurate. Response: We reviewed the referenced state plan as well as other flare management plans, such as those implemented in South Coast and Bay Area Air Quality Management 96 ------- District. We believe that the final standards provides a balanced approach that targets reductions of major flaring occurrences, allows for safe operations of the flares, and provides a reasonable means of demonstrating continuous compliance with the final standards. Comment: According to Commenters 0138 and 0139, the consent decree requirements are largely similar to the proposed work practice standards and they will be implemented over the course of several years; the proposed standards interfere with these plans/schedules without an overall emissions benefit (compared to the reductions achieved under their consent decree requirements). The requirements and timing of any flaring minimization should be consistent with individual consent decree requirements. Otherwise, the flare minimization requirements should not become effective until 3 or 4 years after the commencement of modifications or reconstructions. Response: As noted by the commenter, the work practice standards have been well- demonstrated by refineries subject to consent decrees. We have attempted to make these requirements consistent with consent decrees, but complete consistency with each individual consent decree is impossible since the consent decree requirements are not all the same. We have determined that flare management through FMP and FGR systems is BDT. With respect to the timing of the requirements, section 111(a)(2) of the CAA states that a new source "means any stationary source or modification of which is commenced after publication of regulations (or, if earlier, proposed regulations) prescribing a standard of performance under this section which will be applicable to such source." Furthermore, section 111(b)(1)(B) states that "Standards of performance or revisions thereof shall become effective upon promulgation." Therefore, the CAA does not provide the flexibility desired by the commenter. As such, the flare management requirements are effective when a new flare is installed or an existing flare source is modified or reconstructed as defined in this rule, thereby becoming an affected source. Comment: Commenter 0126 stated that electronic steam flow controls should be BDT and manual adjustment of steam flow should not be permitted, as proper steam flow is critical to the flare combustion efficiency. In an attached report, Commenter 0126 also suggested that enclosed ground flares or thermal oxidizers are more efficient destruction technologies than elevated flares when FGR is impractical. Response: We focused on minimizing the use of flaring rather than on trying to achieve some small, and practically impossible to verify, incremental reduction in VOC emissions. 97 ------- Comment: Commenter 0159 suggested that EPA consider the application of properly engineered split range control valves to be functionally equivalent to standard pressure relief valves so that releases from these valves can be sent to the flare. Response: We disagree that split range control valves to be functionally equivalent to standard pressure relief valves, and included no specific provision for split range control valves in the final rule. Comment: Commenter 0122 requested clarification of how the flare standards apply when a refinery and chemical plant or other non-refining operations are co-located (same parent company or joint venture partners). The commenter posed the following questions: ¦ If gas generated at the chemical plant is sent to the refinery flare, is it subject to the proposed standards? ¦ If gas generated at the refinery is sent to the chemical plant flare, is it subject to the proposed standards? ¦ If refinery and chemical plant gases are mixed together, does the combined stream need to meet the emissions standard or would only the refinery fuel gases (prior to mixing) need to be monitored and to comply with the emission limit? Commenter 0125 stated that subparts J and Ja should not be applicable to flares not located at the petroleum refinery or flares associated with chemical process units, regardless of whether the chemical process unit is located at the refinery or at a separate but adjacent (contiguous) plant. Response: In this final rule, we have eliminated the fuel gas producing unit as an affected facility, and the affected facility for these specific work practice standards is the flare. When a flare at a refinery is modified, then that flare has to meet the provisions in this subpart, which focus on flare management. The gas generated at the chemical plant could be sent continuously to an affected refinery flare, as long as the total flow from the flare did not exceed the flow rate limit. The gases could also be sent to a flare header with a FGR system installed to recover the gases for use elsewhere in the refinery (or chemical plant). In the second case, the chemical plant flare would not be an affected facility, so gases sent to the chemical plant flare would not be subject to the requirements in this subpart. Regarding the third question, if the mixed fuel gas is sent to a new, modified, or reconstructed fuel gas combustion device at the refinery, then the mixed fuel gas (as used in the affected fuel combustion device) must meet the standard. 98 ------- 7.3 Flare Monitoring Comment: Commenters 0125, 0138, and 0154 suggested that operating and maintaining a properly designed FGR system is sufficient "monitoring" to ensure flares burn only exempt gases. Commenter 0125 stated that the existing FGR systems were installed due to local regulations or consent decrees, and the sizing of those systems was subject to extensive review. Therefore, Commenters 0125 and 0154 suggested that "any refinery that operates a FGR system should be exempt from any further monitoring, continuous or periodic, of its flare system." Commenter 0154 also indicated that FGR systems cannot eliminate all flaring during planned start-ups and shutdowns; therefore, a requirement to operate a FGR system should contain an exemption for process upsets (including planned start-ups and shutdowns). Commenter 0149 opposed the exemption from a monitoring requirement when FGR systems are used; the NSPS should require both FGR and monitoring of the sulfur rate and flow rate, as well as recordkeeping and reporting. The commenter urged EPA to require flare monitoring and recording plans to be submitted to permitting authorities for approval; operation monitoring and recording requirements, including type of flare, operating parameters, and specific measurement and recording of sulfur rate and flow rate; and testing and monitoring methods. EPA should use recent SCAQMD rules and the model rule developed by the Mid- Atlantic Regional Air Management Association (MARAMA) as templates for refinery flaring NSPS requirements. Commenter 0126 agreed that a monitoring exemption is not needed or appropriate for systems with FGR systems. Appropriately sensitive flow monitoring should be required to show that routine flaring is not occurring, according to the commenter. Commenter 0124 and 0154 supported a monitoring exemption for process upset gas; the exemption is necessary for the safe refinery operations. The commenters supported the exemption for process upset gases of fuel gas released to the flare as a result of relief valve leakage or emergency malfunction and supported the clarification that continuous monitoring is not required for fuel gas streams that are exempt from §60.104(a)(1) (malfunctions and relief valve leakage). Commenter 0127 stated that preamble language regarding EPA's decision not to require monitoring for flaring of process upset gases is inadequate and that the rule should specifically address the issue in §60.105. There have been several court cases challenging the need for monitoring of flares to ensure that they are only used as emergency flares; most interpretations 99 ------- suggest flare monitoring is needed to demonstrate compliance with subpart J. The regulatory text must clarify the type of monitoring, if any, that is required for these flares. The commenter also indicated that monitoring of the flares for flow and composition is needed if RCA are required (so that the facility can adequately determine if the 500 lb/day SO2 RCA threshold has been exceeded. Commenter 0130 stated that flares, including upset emissions, should be subject to continuous monitoring and reporting requirements, even if the upset emissions are not subject to the sulfur content requirements. Emission from upsets can be a major source of pollution from refineries, sometimes exceeding their total routine emissions of some pollutants. Studies have shown that wind and other factors can reduce flare combustion efficiencies, which means more pollution is actually being released rather than being destroyed. The CAA mandates continuous compliance with its pollution limits and does not provide exceptions for excess emissions. EPA's Policy Regarding Excess Emissions During Malfunctions, Startup, and Shutdown states that all periods of excess emissions must be considered violations. Commenter 0130 stated the NSPS should require continuous monitoring of flares, electronic reporting of all excess emissions within 24 hours, the reports to be publicly available within 72 hours on State websites, and the reports to include: (1) pollutants emitted; (2) amount of emissions; (3) calculation method; (4) cause of release; (5) regulatory limit; (6) amount emissions exceed limit; and (7) actions to prevent excess emissions from recurring. The NSPS should also include automatic penalties, require offset reduction in routine emissions, require facility shutdown after a certain number of excess emissions, and include excess emissions in potential to emit (PTE) calculations. Response: After consideration of these comments as well as our decision to define the flare as the affected facility for the work practice standards (instead of the fuel gas producing unit), we agree that monitoring of the flares for flow is absolutely necessary to ensure compliance with these standards. While we encourage the use of FGR systems, monitoring the flow to the flare is the only way to ensure compliance with the flare flow rate limit and ensure that the FGR system is not being overloaded as a refinery expands or debottlenecks. Additionally, we require sulfur monitoring of flare gas to demonstrate compliance with the SO2 root cause analysis trigger. 100 ------- Comment: Commenter 0150 requested clarification that when sweep gas is routed to an emergency-only flare, it is not required to be monitored if it meets one of the definitions of streams that do not require monitoring or if it is monitored elsewhere (e.g., the fuel gas system). Response: We agree that the sweep gas in these cases would not have to be monitored for sulfur content at an affected flare. We do require flow and TRS monitoring of the flare waste gas as explained above, but an H2S monitor is not needed for the sweep gas provided the sweep gas meets the definitions of streams that do not require monitoring or it has been monitored previously at a representative spot in the fuel gas system. 7.4 Malfunctions of Amine Systems and SRP Comment: Commenter 0154 disagreed with EPA's interpretation that petroleum amine treating systems and SRP are not petroleum refinery process units and therefore cannot generate process upset gas. The commenter noted that "generate" is not defined in the NSPS and asserted that the only reasonable disposition of the gases during amine unit or SRP impairment is a flare. The commenter indicated that the costs presented by EPA for the control options considered were low and stated that "most refineries have SRP much larger than the 50 LTD, some as much as 10 times larger or more." Commenters 0150 and 0154 supported EPA's determination that an SSM plan is BDT for flare minimization during malfunctions of the amine unit or SRP. Response: We consider the amine treatment system and SRP to be control systems used to comply with the fuel gas combustion device SO2 standards. When a control device on a process unit malfunctions, one cannot generally continue to operate the process unit until the control device is operational. While the amine treatment systems and SRP are not typical APCD, their primary function is emissions control. While we agree that it is better to flare the sour gas rather than emit large quantities of untreated H2S, we prefer that neither occur. Moreover, the final rule does not include the proposed SSM plan requirements so the comments are no longer relevant. Comment: Commenter 0154 suggested that the storage of lean amine would potentially require the storage of rich amine, which raises serious safety issues and, therefore, should not be considered a viable option. Commenter 0150 cited costs and safety concerns for rejecting amine storage as a viable option. 101 ------- Response: We did not require storage of rich or lean amine in the proposed rule; we only considered it as one possible action a refinery may take to minimize production losses when their sour gas control system malfunctions. The proposed refinery in Arizona includes requirements for such storage systems, so we expect that appropriate safety measures can be engineered into the tank systems. We recognize that there are several viable alternatives, and we encourage refinery owners and operators to employ a method tailored to their facility and preferences. We note that while the final standards do not require an SSM plan, we note that an upset of an amine scrubbing system or SRP is likely to cause a release of 500 lb/day SO2 from a fuel gas combustion device and require a RCA and corrective action. (If the fuel gas combustion device is an affected flare, the upset could trigger the 500,000 scfd flow rate RCA as well.) Comment: Commenter 0154 stated that an additional Claus sulfur recovery train should not be a method of controlling sour gas flaring, as an additional Claus unit is not a cost-effective option. According to the commenter's estimates, the cost-effectiveness would exceed $11,000/ton SO2. Commenter 0150 also supported EPA's conclusion that redundant SRP are not cost-effective and stated that periods of SRP maintenance must be considered in the final rule to avoid inadvertently requiring redundant SRP (the commenter referenced an NPRA paper from Sept. 17, 2006). Response: Again, we only provided examples of what a refinery could do and did not mandate a specific course of action in the proposed standards. We believe an additional Claus unit is cost-effective, especially compared to other alternatives, but again, each refinery can choose its course of action. While $11,000 per ton may be unacceptable for some pollutants, it is not entirely unacceptable for SO2 control. Additionally, the cost-effectiveness is highly dependent on the frequency and duration of upsets, which is difficult to project. If there is an extended outage, the cost-effectiveness for the additional Claus unit could be less than $ 1,000/ton. The refinery owner or operator may choose any action to minimize emissions during an upset, keeping in mind that if an upset or malfunction causes a release large enough to trigger RCA for either a flow rate or SO2, additional action may be required. Comment: Commenter 0125 stated that EPA should specifically address switching of the amine type in the fuel gas treatment (amine) system as it relates to a modification under subpart J (or subpart Ja). The commenter recommended that amine type switching be excluded from what is considered a modification of the amine system. 102 ------- Response: We do not believe the situation described by the commenter should be an issue. In subpart J, the amine system is not affected facility, so we are unclear why the definition of a modification is relevant. As stated previously, the amine system is a control system and it must operate in a manner so as to achieve the SO2 emission standard for fuel gas combustion devices or alternative fuel gas standards. Amine type switching is allowed so long as the new amine type can achieve the required SO2 emission standard for fuel gas combustion devices or the alternative fuel gas standards. 7.5 Root Cause Analysis Comment: Commenters 0126, 0127, and 0154 supported the RCA requirements for SO2 releases greater than 500 lb/day. Commenter 0154 conditioned their support of RCA on the provision that events less than this threshold are deemed compliant with the provisions of the subpart. Commenter 0130 stated that EPA has not justified the 500 lb SO2 cutoff and the threshold should be lower for a number of reasons, including the health and safety of refinery workers. EPA has not explained its rationale for casting the threshold in terms of lb/day releases, and the threshold should be one of total S02 released, not lb/day. A release less than 500 lb/day could go on for days, weeks, or years without triggering the requirement to perform a RCA. Response: The 500 lb/day RCA threshold was justified on the basis of costs in the preamble of the proposed rule. Quite simply, it is not cost-effective to perform a RCA to attempt to prevent each and every emissions event. The mass of emissions potentially reduced by investigating small releases does not justify the costs associated with the investigation. The flare management and monitoring requirements are expected to reduce long-term, on-going releases. As flow monitors are required for each affected flare, a release that lasts for a long period of time will be documented, and the refiner should be prepared to reconcile that release with the general obligation to minimize emissions where practicable. As previously explained, we reject the suggestion that all emissions less than 500 lb/day SO2 are compliant with the subpart. Comment: Commenter 0127 stated that monitoring of the flares for flow and composition is needed so that the facility can adequately determine if the 500 lb/day SO2 threshold has been exceeded. 103 ------- Response: We agree that the flow rate must be monitored. However, as discussed previously, it is very difficult and expensive to install and operate monitoring systems capable of quantifying the range of flows and composition expected from a flare. The required flow monitor is expected to serve as a means of determining when an emission event occurs but may not be appropriate to quantitatively determine high flow rates. Engineering calculations are expected to provide reasonable accurate SO2 emission estimates for the purposes of the RCA threshold. Comment: Commenter 0149 supported requiring RCA of flaring and other venting releases greater than 500,000 scfd VOC. Commenter 0126 recommended that RCA be required for hydrocarbon flaring events because: (1) flare destruction efficiency can be significantly less than 98 percent if the heating value, velocity, or steam flow to fuel gas ratio are outside of optimal operating ranges; (2) flares are significant sources of greenhouse gases (GHG); (3) VOC emissions can still be large even when the flare achieves 98 percent destruction efficiency; (4) by requiring RCA, the RCA findings will be available to EPA; and (5) EPA has had a policy of considering investigation of hydrocarbon flaring events to be "good air pollution control practices." The commenter suggested RCA threshold levels of 100 lb per day of HAP, 5,000 lb per day of VOC, or 500,000 scfd of flare gas. Commenter 0127 also suggested an RCA be conducted when the volume of gas released exceeds 500,000 scf per event (in addition to the 500 lb/day SO2 RCA threshold). In contrast, Commenter 0154 disagreed that EPA should require RCA for hydrocarbon flaring events because it is more difficult to estimate the emissions (some disagreement regarding the destruction efficiency of the flare) and the hydrocarbon releases are well-controlled with the flare. Response: As we stated in the preamble to the proposed rule, we found little direct environmental benefit from performing RCA for hydrocarbon flaring events because the flares are efficient control systems for hydrocarbons. However, we do agree that determining the cause of large releases can reduce those releases in the future. Based on our analysis, RCA of flaring events in excess of 500,000 scfd will pay for itself in reducing lost product or in offsetting natural gas purchases. Therefore, the final standards include a requirement to conduct a RCA if a flow of more than 500,000 scfd is sent to an affected flare. 104 ------- 7.6 Delayed Coking Depressurization Comment: Commenter 0156 provided examples of coker depressurization practices that use set points or timed cycles that route depressurization gas to the atmosphere at about 10 psig; the commenter estimated it would cost $12-million in capital, achieving 182 tons/yr S02 reduction, which yields a cost-effectiveness value much higher than that reported by EPA. Commenter 0176 noted that their cost to meet the proposed standard could range from $20- to $50-million and would depend on whether: (1) additional compressors would be needed; (2) pumps could operate down to 5 psig; and (3) the blowdown gases between 5 and 10 psig would need additional treatment to be useable in the fuel gas system. The commenter also stated that vents from coking units are difficult to test due to the high water content of the emissions stream, the short-term nature of the emissions, and the lack of a discrete stack to test. The commenter provided test data, protocols, and reports that detail the concerns with testing a coker vent. The data included estimates of VOC emissions for a coking unit the size of the commenter's ranging from 1.3 to 10.6 tons per year; the commenter noted that SO2 results were omitted "because of perceived significant 'low bias' in the results." Because the best case cost- effectiveness values are $9,400/ton S02 (using EPA's emission estimates) and $178,000/ton VOC, the commenter stated that EPA cannot determine that controls on coker vents is BDT. Response: While we recognize that the final standards must be technically feasible for all units, we note that the standards do not have to be requirements that that every existing unit can meet without any changes to the current operation or controls. We recognize that some existing units will become affected facilities, but this will be due to a process modification or reconstruction. When the process is being modified or reconstructed, additional piping and other equipment modifications can be made to the unit to allow depressurization down to 5 psig. Once we determine that this requirement is technically feasible, we must also demonstrate that it is cost-effective. Several of the commenters suggested that depressurization down to 10 or 20 psig should be acceptable prior to releasing the gases to the atmosphere. In our previous analysis, we assumed small quantities of VOC reductions from the assumed higher efficiency of process heaters and boilers versus flares. However, when we evaluate the cost-effectiveness of vessel depressurization down to 5 psig, assuming the baseline is depressurization down to 15 psig (the depressurization point above which a delayed coker vent is a miscellaneous process vent in Refinery MACT I ) and then venting to the atmosphere, we find the 5 psig requirement to be 105 ------- cost-effective for SO2 control (between $1,300 and 5,300/ton SO2 reduced). While the VOC reduction is minimal, based on our impact estimates for the DCU depressurization work practice standards, a 5 psig DCU vessel depressurization limit was determined to be BDT. Comment: Commenter 0154 requested that EPA provide a proposal regarding how compliance with the 5 psig cutoff would be demonstrated. The commenter also indicated that compressing the coker blowdown gases may not be cost-effective depending on the sulfur content of the gases. The commenter indicated that, in addition to compression, "additional amine adsorption and regeneration equipment and even additional sulfur train capacity may be required to handle coker blowdown gases. By the time the decoking sequence gets to the venting stage (i.e., out of the fractionator and out of the scrubber), the concentration of VOC and or sulfur species is minimal..." Commenter 0154 also asserted that the coker depressurization gas is not suitable for fuel and requested an option by which an alternate operating limit or parameter can be established when where it is "problematic to vent delayed coker gas at less than 5 psig." Response: We provided a portion of the comment verbatim because we are confused by the commenter's statement. In one sentence, the commenter suggested that there is so much additional sulfur in the additional coker depressurization gas recovered when depressurizing to 5 psig that additional sulfur recovery capacity would be needed in order to treat this incremental amount of gas; in the very next sentence, the commenter stated that the concentrations of VOC and sulfur species are minimal. Therefore; we are not entirely clear on the intent of the comment. We recognize that the cost-effectiveness of this depressurization requirement is highly dependent on a number of factors, including current depressurization set point, VOC and SO2 concentration in the vessel prior to discharge to the atmosphere or flare, and availability of adequate sulfur removal capacity to handle the additional gases. As such, there will be instances when the cost-effectiveness of the requirements for DCU depressurization (or other requirements in this final rule) may exceed some perceived cost-effectiveness threshold when evaluated for an individual unit. However, we are developing standards of performance for new units; we are not attempting to develop standards that the worst-performing existing unit can meet with status quo operations. We evaluate the total costs and total emission reductions of the control options on a nationwide basis. Based on our analysis, we conclude that coking unit vessel depressurization down to 5 psig is a cost-effective control strategy for both VOC and SO2 on a nationwide basis and is BDT. 106 ------- Chapter 8 SMALL BUSINESS CONCERNS Comment: Commenter 0129 noted there are 33 small refiners operating 41 refineries that fall within the small business definition, and EPA must observe the Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA), 5 U.S.C. §609 to ensure that the interests of small business entities receive due attention in the consideration and adoption of this agency rule. The commenter highlighted the special status of small business refiners in that: (1) small business refiners are important to the economy; (2) small business refiners have limited resources; (3) small business refiners do not enjoy economies of scale; and (4) small refiners are generally located in attainment areas, (30 of 41 small refineries, or 73 percent, are in attainment areas). Response: SBREFA requirements are triggered when there is (or is expected to be) a significant economic impact on a substantial number of small entities. While other indicators may also be used, the economic impact is typically evaluated as a ratio of the annualized regulatory costs to the annual revenue of the small entity. The number of small entities with cost-to-revenue ratios exceeding certain thresholds (typically 1 or 3 percent) is determined to assess whether there are significant economic impacts on a substantial number of small entities. As no small refineries were expected to have costs in excess of 1 percent of their revenues, no SBREFA panel was needed. However, we did evaluate the impacts for small refiners separately in many cases, including small SRP and process heaters, to reduce the burden on small refiners when possible. Comment: Commenter 0129 noted that the model refinery sizes used by EPA in its cost analysis are much larger than the average small refinery and the rule will impact many more small refiners than large refiners. The 41 small refineries have capacities that range from 2,000 to 116,000 barrels per day (BPD) with an average of 31,000 BPD, compared with EPA's model size of 143,000 BPD. The average small refiner FCCU is 20,800 BPD compared to EPA's model FCCU of 50,000 BPD. The commenter also stated that the regulatory impacts do not accurately reflect the number of small refiners that will have to install controls to meet 107 ------- subpart Ja. For FCCU and FCU, EPA assumes 76.5 percent of units are currently subject to EPA Petroleum Refinery Enforcement Initiative and these refiners will not need to install controls to meet subpart Ja; in contrast, of the 41 small refiners, only 4 refineries or 9.8 percent are subject to a consent decree. Therefore, the commenter stated, a much higher percentage of small refineries will have to install controls, which cost more on a per barrel basis than EPA estimates. In addition, small refiners that have the ultra-low sulfur diesel delayed compliance options may be installing new desulfurization capacity to meet the ultra-low standards. The commenter urged EPA to revise the impacts analysis to account for the disproportionate amount of pollution controls that will be required to be installed by small refiners. Commenter 0129 also provided costs, emission reductions, and cost-effectiveness for small refiners. The cost effectiveness for using wet scrubbers to meet the proposed PM and S02 emissions standards for FCCU at three small refiners ranged from $5,600 to $17,000 per ton, compared with EPA's estimate of $1,900 per ton for the overall industry average model. The cost effectiveness for using ULNB on process heaters at five small refiners ranged from $9,800 to $100,000 per ton compared to EPA's estimate of $1,600 per ton. In these instances, EPA has clearly underestimated the capital and operating costs and the cost effectiveness. Response: In response to these and other comments, we significantly revised our impacts estimates. For the FCCU and FCU impacts, we evaluated costs on a per unit basis so that the costs were developed based on the size of actual units. For FCCU, we directly included consent decree requirements on a FCCU-specific basis and performed a Monte Carlo analysis in which a number of randomly selected FCCU were included as affected facilities to develop our best estimate of the average cost and environmental impact of these final standards. We also developed additional model plants by which to evaluate a greater range and more accurate distribution of process heater sizes. Various technical memoranda in Docket ID EPA-HQ-OAR- 2007-0011 provide additional information. Comment: Commenter 0129 stated that EPA should not require controls for small refiners or should include less stringent controls with reasonable costs for small refiners. This is consistent with the NSPS for refineries for Claus Sulfur Recovery Units at 40 CFR 60.100(a) where existing units greater than 20 LTD are required to be controlled and where the proposed regulation has a two-tiered system based on capacity with one requirement for large units and another for small units. The commenter provided suggested cutoffs for FCCU controls for PM, 108 ------- SO2, and NOx only for FCCU units with current maximum capacity of 30,000 BPD or more and for FCU with input capacity of 20,000 BPD or more. The suggested process heater cutoff should be process heaters or boilers with a heat input of 40 MMBTU/hr or more, consistent with EPA's current policy and even the consent decrees. The sulfur recovery plant cutoff should be sulfur recovery units with a capacity of 20 LTD or more. In addition, the commenter stated that the new SO2 fuel gas limits and work practice standards for fuel gas production units should apply to refineries with crude input capacity of 100,000 BPD or more. If EPA does not elect to invoke the Small Business Advocacy Review Panel process, then EPA should use the data provided by the small refiners to provide less stringent control options commensurate with the true incremental costs to small refiners. Response: In developing the impact estimates for this final rule, we did account for actual differences in refinery sizes. Although there are economies of scale that generally make the controls for larger refineries more cost-effective than those for smaller refineries, we did not identify significant adverse costs for controlling smaller FCCU. After including additional model plants, which provided a greater range and more accurate distribution of process heater sizes, and making other revisions to the NOx control cost estimates, we agree with the commenter that it is not cost-effective to require NOx controls for process heaters less than 40 MMBtu/hr. As such, we have changed the applicability threshold of the NOx emission limits for process heaters to those process heaters with capacities greater than 40 MMBtu/hr. In addition, the final standards include a less stringent emission limit for small SRP. 109 ------- Chapter 9 NSPS STRINGENCY Comment: Commenter 0130 stated that section 111 of the CAA requires that NSPS reflect the best emission reductions which are feasible {i.e., the BDT). The NSPS must be at least as stringent as the requirements in consent decrees, whether those limits are technology- based or emissions-based, as refiners covering approximately 84 percent of refining capacity are under consent decrees. Any new NSPS provision under either subpart J or subpart Ja which is not at least as stringent as the most stringent consent decree cannot be justified by EPA. Commenter 0149 stated that considerable technological progress has occurred in the last decades and it is appropriate that EPA revise and supplement the standards. The commenter supported some of the revisions to subpart J and the addition of new subpart Ja standards and suggested that others be strengthened to reflect consent decrees. The commenter stated that section 111 of the CAA requires EPA to look "toward what may be fairly projected for the regulated future." The court decision in Portland Cement I (486 F. 2d 375 at 384 (D.C. Cir. 1973)) stated that section 111 of the CAA does not require that any cement plant currently now in existence be able to meet the proposed standards. Commenter 0142 noted that the CAA specifically requires that rules resulting from review of NSPS be both technically feasible and cost effective. Industry would expect that there would be relatively few changes in the review revisions because there have been: (1) relatively little change in the available control technology options; (2) dramatic increases in labor and material costs, including impacts from Hurricane Katrina; and (3) dramatic emissions reductions from NSPS, NESHAP, and NSR controls. Response: The evaluation of BDT must consider both the technical feasibility and the costs of the alternative emission limits. As several commenters pointed out previously, the consent decrees were not generally established using cost as a major factor. As such, some consent decrees may have lower emission limits (particularly for NOx from selected FCCU), but we found those lower limits to have unacceptably high costs, especially considering the 110 ------- increment to establishing NOx limits at higher concentrations. On the other hand, this final rule quite often establishes emission limits that are comparable to the most stringent of the consent decrees. Thus, although we cannot rely solely on the consent decree provisions as BDT, the consent decrees can often be used to confirm that the emission limits are achievable. Comment: Commenter 0142 stated that EPA has not correctly performed best demonstrated technology and cost-effectiveness calculations for subpart Ja. Response: As described in the comment responses in the specific emission sources chapters, the cost impacts were significantly revised to provide more accurate costs and cost- effectiveness estimates in our assessment of BDT. Ill ------- Chapter 10 OTHER COMMENTS Comment: Commenter 0154 requested that subpart Ja specifically state: "Notwithstanding any provision of this subpart, projects commenced due to a New Source Review Consent Decree entered into on or before May 14, 2007 are exempt from the requirements of this subpart Ja." According to the commenter, the consent decree "commenced" when it became a binding contract; therefore, these projects should not be subject to subpart Ja. Commenter 0150 concurred with this request and provided alternative regulatory text; the commenter also requested EPA publish a Federal Register notice as soon as practicable codifying this "clarification." Commenter 0139 urged EPA to include specific language in subpart Ja that modified and reconstructed FCCU are subject only to the existing subpart J requirements as follows: "Any FCCU that commences modification or reconstruction after May 14, 2007 shall be subject to the standards in 40 CFR part 60, subpart J and exempt from the provisions of this subpart." Commenter 0154 stated that any substantive proposed changes must apply only to new, modified, or reconstructed facilities after May 14, 2007; substantive new requirements cannot be applied retroactively. The commenter also noted that since no impacts or basis was included, no revisions to 40 CFR part 63, subpart UUU can be made (i.e., none of the work practice standards or new emission limits can be imposed under subpart UUU without additional rulemaking). Commenter 0131 noted that requiring subpart Ja to apply retroactively for petroleum refineries for which construction, reconstruction, or modification commenced after May 14, 2007 is a violation of due process, and regulated entities would be required to spend money to comply with subpart Ja while not knowing what the promulgated requirements will be or when the rule will be promulgated. Commenter 0130 opposed EPA's proposal that FCCU and FCU that begin modification or reconstruction remain subject to the emission limits and requirements in subpart J rather than requirements in subpart Ja. Subpart Ja should apply to all modified, reconstructed, and new FCCU and FCU, and EPA has provided no justification for exempting these sources from 112 ------- modern, current BDT. The purpose of NSPS is to attain and maintain ambient air quality by ensuring the best demonstrated emission control technologies are installed as the industry is modernized. For oil refineries, modernization comes largely from modification and reconstruction, as no new oil refinery has been constructed in 30 years. Response: The CAA section 111 does not provide the flexibility in applicability dates requested by a number of the commenters. The final standards were determined by evaluating the impacts on new sources separately from modified and reconstructed sources, and the final emission limits and work practices were established accordingly. Comment: Commenter 0154 stated that the proposed recordkeeping and reporting requirements impose a significant burden with no environmental benefit and suggested these requirements be consistent with the current subpart J. Response: We have determined that the recordkeeping and reporting requirements included in the final standards are necessary to determine compliance with the standards. Comment: Commenter 0116 stated that the proposed NSPS for refineries falls short of international community-intended goals and suggested EPA work with the Kenya government to conduct efficacy tests to select the best options for improving energy efficiency at petroleum refineries. Response: It is unclear how working with Kenya, with its one refinery, will help the Agency identify the best options for improving energy efficiency at petroleum refineries for the 150 U.S. refineries. It is also unclear what international community-intended goals the proposed NSPS is falling short of. The subpart Ja standards are generally the most stringent federal standards for petroleum refinery operations of any in the world with respect to PM, SO2, NOx and CO. The commenter appears to be confused regarding the scope of the NSPS program as authorized by the CAA. Comment: Commenter 0125 suggested the following clarifications to the applicability of subpart J and Ja standards. Subparts J and Ja should not apply to: (1) cogen plants that meet the definition of an Electric Generating Unit; (2) marine vessel loading operations not adjacent/contiguous to a refinery; (3) sulfur recovery plants not adjacent/contiguous to a refinery; and (4) green petroleum coke calciner units, regardless of whether or not they are adjacent/contiguous to a refinery. 113 ------- Response: Item 1 - the only way a cogeneration plant would be subject to J or Ja is if it is on-site at the refinery and if it burns refinery fuel gas. We see no reason why a fuel gas combustion device, regardless of its output (boiler steam or electricity), needs to burn sour fuel gas. Item 2 - we are not sure how a marine vessel loading operation not co-located at a refinery is affected by subpart J, especially since we now exclude marine vessel loading vapors for the definition of fuel gas. Item 3 - both subparts J and Ja specify that the sulfur recovery plants is an affected facility regardless of whether or not the sulfur recovery plant is located within the boundaries of the refinery. Item 4 - petroleum coke calciners generally produce a gas that is then combusted. If the calciner is at the refinery, then the generated gas meets the definition of fuel gas and the device combusting this gas is a fuel gas combustion device that would be subject to the NSPS standards if it is new, modified, or reconstructed. If the calciner is off-site, the gas would not be generated at a petroleum refinery and would not be subject to subpart J or Ja. Comment: Commenter 0125 recommended that EPA provide regulatory exemptions from emission limits for control device maintenance, stating that less emissions typically occur when bypassing the control device than during the shutdown and start-up of the associated process unit as well as safety concerns associated with start-up and shutdown events. Response: We have provided an exemption for sulfur pit maintenance; any other exemptions would need to be evaluated on a case-by-case basis. Comment: Commenter 0125 requested clarification of the applicability of Appendix F to the subpart J and Ja standards [other than those spelled out in §60.105(a)(12)]. Response: Proposed subpart Ja included a number of paragraphs specifying that the owner or operator must comply with the quality assurance requirements of procedure 1 in 40 CFR part 60, appendix F, and the final subpart Ja standards also include that requirement for most of the CEMS required for compliance. Comment: Commenter 0125 requested clarification on how emissions that may be released at multiple discharge points should be treated in calculating the long-term average; the commenter suggested a flow-weighted average be used. Response: We agree that a flow-weighted average should be used in calculating the long term average when emissions are discharged at multiple points; in fact, this is clearly specified for SRP. 114 ------- Comment: Commenter 0121 requested clarification on how compliance with the long- term (7- and 365-day) emission limits should be determined when a start-up, shutdown, or malfunction activity occurs during the averaging time. Commenters 0125 and 0161 suggested that EPA provide specific protocols for missing data in calculating the 365-day average. Commenter 0125 requested clarification regarding how much data are necessary to calculate the hourly averages of operating limits. Language regarding 75 percent of the hours, as in §63.1572(c)(3) would be helpful in §60.105a(b)(a)(i) . Response: Process upsets are exempt from the emission limit as specified in the NSPS General Provisions and should not be included in the long-term average. Comment: Commenter 0125 stated that oxygen analyzer spans should not be set within the rule but instead by the operator to match the process conditions at a specific application. Response: We have provided a range of oxygen analyzer spans, from 10 to 25 percent, in the final standards. The operator may set the span to match the process conditions as long as it is a value within that range. Comment: Commenter 0125 stated that units that operate properly at high excess air/oxygen (e.g., thermal oxidizers) are penalized by the 0 percent O2 correction, and EPA should provide equitable treatment for these types of equipment. Response: If a thermal oxidizer is operating with high excess air, the excess air acts to dilute the SO2 or NOx concentration in the vent stream. The rule does not prevent the use of higher excess air rates, but the 02 correction is needed to ensure dilution air is not used to meet the concentration emission limit. An owner operator considering a thermal oxidizer should consider whether that device will comply with the emission limits including an O2 correction in that decision. Comment: Commenter 0125 suggested that EPA grandfather existing CEMS that have been certified under federally-enforceable rules, even if the certified analyzer parameters (e.g., span) differs from those specified in subpart Ja. Commenter 0161 requested clarification of how to use CEMS data that exceed the certified span when calculating the rolling average (e.g., if the CEMS says 800 ppmv but the span is 300 ppmv, what value should be used in the rolling average calculation); the commenter indicated that EPA has established a position in numerous applicability determinations of using the maximum of the span (300 ppmv rather than 800 ppmv for the above example). 115 ------- Response: We have specified the required span for each monitor in the final standards. Equipment developed for other performance specifications may or may not be appropriate for this rule, and it should not be force fit. Sources with CEMS data outside the certified span should report CEMS out-of-control and declare their compliance status as other than continuous. Comment: Commenter 0161 requested clarification of EPA's interpretation of the April 14, 2000, letter from Judith Katz to Region 3. The April 14, 2000, interpretation suggests 12-hour rolling averages should be computed continuously {i.e., every minute), but the proposed rule suggests hourly computations. Specifically, the commenter asked if an hour used for averaging purposes begins at the top of that hour or anytime; the commenter noted that depending on EPA's interpretation, a 180-minute average might be more clear than a 3-hour average. Response: Requiring 12-hour averages every minute greatly increases the computational and data storage requirements for the refinery with little to no environmental benefit. It is extremely unlikely that a 12-hour average excursion will be "seen" when evaluating by-minute 12-hour averages and not seen when calculating using hourly averages. While the hourly averages should be calculated using the continuous data {i.e., by minute), there is no need to store these "by minute" data for 12 hours, increasing the storage needs by an order-of-magnitude. Comment: Commenter 0125 noted that the cross-reference in §60.105a(b)(3), which references §60.104a(d)(4)(vii), must be incorrect because paragraph (d)(4) only goes up to (v). Response: The commenter is correct that the reference was in error; the proposed equation for coke burn-off rate was located in §60.104a(d)(4)(iii). In the final standards, §60.105a(b)(l)(iv) correctly refers to the coke burn-off rate equation in §60.104a(d)(4)(iii). Comment: Commenter 0150 stated that North Slope Topping Plants should be expressly exempt from NSPS subpart Ja. These facilities do not have many of the affected sources covered by the rule, only a few fuel gas combustion devices. According to the commenter, it would not be cost-effective to install amine units (and SRP) for these facilities. Response: The requirements of subpart Ja would only become applicable if a unit is modified, reconstructed, or newly constructed. Subpart J has similar fuel gas standards with no exclusion, so absent subpart Ja, the North Slope Topping Plants would need to install amine units and SRP when a unit became subject to subpart J. As such, we do not see that the additional requirements imposed by subpart Ja are not cost-effective. 116 ------- Comment: Commenter 0150 stated that the compliance date for projects commencing construction between the proposal date and final promulgation date should be 3 years after promulgation with an allowance for the refinery to request an additional 2-year extension to avoid an unscheduled turnaround. Response: The CAA section 111 does not provide the flexibility requested by the commenter. Comment: Commenter 0150 stated that proposed timeframes for monitoring system installation and operation are infeasible; 365 days should be allowed for engineering, ordering, installing, and testing of monitors. At minimum, 180 days should be allowed with an allowance for an extension request. Response: A unit only becomes an affected facility when it is modified, reconstructed, or newly constructed. When those projects are being planned, the refinery has adequate time to also engineer, order, and install a monitor. In the preamble to the final standards, we addressed the situation in which a refinery makes a process change that may result in a fuel gas no longer being able to demonstrate compliance with the low sulfur exemptions; for that situation only, the owner or operator may conduct daily monitoring until a CEMS is installed for up to 180 days. We have not changed the time frames for monitoring for any other process units. Comment: Commenter 0150 suggested that, due to the deficiencies in the impact analyses, EPA should only finalize the clarifications to subpart J (after deleting any non-elective substantive requirements) and re-propose subpart Ja after consideration of the public comments. Response: We have revised our impact analysis in response to public comments. We do not see a need to re-propose. Comment: Commenter 0156 stated that only Methods 11, 15, 15a, or 16 are needed in §60.104a(j) (i.e., references to Methods 1, 2, and 3 are not needed), which would be consistent with the requirements in subpart J. Response: We disagree. Calculations contained in Methods 11, 15, 15a, or 16 rely on data obtained according to Methods 1, 2, and 3 Comment: Commenter 0156 noted that the span value for H2S in fuel gas in §60.107a(a)(2)(ii) was 425 ppmv and that the units are not consistent with subpart J. The span value in subpart J is 425 mg/dscm (which is about 300 ppmv) H2S. 117 ------- Response: The commenter is correct that subpart J does include a span of 425 mg/dscm in §60.105(a)(4)(i), and the wrong units were included in §60.107a(a)(2)(ii). The span value in subpart Ja was revised to 320 ppmv in the final rule. Comment: Commenter 0169 noted that 40 CFR 60.40b(c) (subpart Db) contains an exemption for sources that are subject to subpart J, and the commenter requested that EPA extend that exemption to subpart Ja as well. Response: Specific language currently in Db is: "Affected facilities that also meet the applicability requirements under subpart J (Standards of performance for petroleum refineries; §60.104) are subject to the PM and NOx standards under this subpart and the SO2 standards under subpart J (§60.104)." There are two specific types of boilers that are subject to Db. First, there are general fuel gas combustion devices that are only subject to S02 standards under subpart J (or Ja), and the language in subpart Db is specifically applicable to these units. Second, there are CO or waste heat boilers associated with the FCCU. These boilers are subject to the PM, NOx and SO2 limits in the final standards for subpart Ja and not those in subpart Db. 118 ------- |