# Joint Appendix — Nat'l Mining Ass'n v. Envtl. Prot. Agency, 135 S. Ct. 703 (2014) (No. 14-49)

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URL: https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385016_0333%3A09

## Record

- **Collection:** Supreme Court brief
- **Document type:** Joint Appendix
- **Published:** January 1, 2014

## Text

Sup = et US
AND JAN 23 206
CRIEFS Nos. 14-46, 14-47, 14-49 OFFICE OF TH' CLERK

Bu the Supreme Court of the United States

62] —
MICHIGAN, ET AL., PETTTIONERS

Vv.
ENVIRONMENTAL PROTECTION AGENCY, ET AL.

Utuiry Am REGULATORY GROUP, PETITIONER

Vv.
ENVIRONMENTAL PROTECTION AGENCY, ET AL.

NATIONAL MINING ASSOCIATION, PETITIONER

Vv.
ENVIRONMENTAL PROTECTION AGENCY, ET AL.

On Waits OF CERTIORARI
TO THE UNITED STATES COURT OF APPEALS
FOR THE DISTRICT OF COLUMBIA CIRCUIT

\

JOINT APPENDIX - VOLUME 1 OF 4

Donald B. Verrilli, Jr. Aaron D. Lindstrom
Counsel of Record oi of Record

Department of Justice O. Box 30212

Washington, DC. Lansing, = Pacey

—_— (517) 373-1124

SupremeCtBniefs@usdo}j.gov

(202) 514-2217

Petitions for Writ of Certiorari Filed July 14, 2014
Writs of Certiorari Granted November 25, 2014

Library of Congress
Law Library

Melissa Hoffer
Counsel of Record
Assistant Attorney
General
Environmental Protection
One Ashburton Place
18th Floor
Boston, MA 02130
melissa. hoffer@
state.ma.us
(617) 963-2322

Brendan K. Collins
Counsel of Record

Ballard Spahr LLP

1735 Market Street

51st Floor

Philadelphia, PA 19103

collins@ballardspahr.com

(215) 665-8500

Sean H. Donahue
Counsel of Record
Donahue & Goldberg LLP

1130 Connecticut Ave., NW

Suite 950
Washington, D.C. 20036

sean@donahuegoldberg.com

(202) 277-7085

F. William Brownell

Counsel of Record
Hunton & Williams LLP
2200 Pennsylvania Ave., NW
Washington, D.C. 20037
bbrownell@hunton.com
(202) 955-1500

Peter S. Glaser

Counsel of Record
Troutman Sanders LLP
401 Ninth Street, NW
Suite 1000
Washington, D.C. 20004
Peter.glaser@
troutmansanders.com
(202) 274-2998

TABLE OF CONTENTS

VOLUME 1 OF 4

Relevant Docket Entries

White Stallion Energy Center v. EPA

Court of Appeals

Docket No. 12-1100 1-26

ee ee ee

U.S. EPA, Mercury Study Report to Congress,
Vol. 1: Executive Summary, EPA-452/R-97-003
Docket No. EPA-HQ-OAR-2009-0234-3054
December 1997

Excerpts

Overview [pp. O-1 to O-4] 27-35

Report to Congress [pp. 1-1 to 1-3] 36-43

ee

[pp. 4-1 to 4-10] 4460

Tee eee ee ee

EPA Study of Hazardous Air Pollutant Emissions
from Electric Utility Steam Generating Units — Final
Report to Congress, Volume 1-
Docket No. EPA-HQ-OAR-2009-0234-3052
February 1998

Excerpts

Executive Summary
[pp. ES-1 to ES-29]

Utility Study Section 2.7 [p. 2-25]

Title I and Title IV,
Phase I and Phase IJ,

Compliance Strategy Impact
ee ro) 117-119
6.0 Inhalation Risk Assessment
SSS Lepper Bante rec ee Bete SS 120-131
ee en ee ee Ceo 132—134
Areas for Further Research and Analysis
a en roe 3 ab ee 135-138

69 Fed. Reg. 4652
January 30, 2004
[pp. 4657 to 4659] 139-145

70 Fed. Reg. 15994
March 29, 2005
Sections F & G

a ee NO 146-162
Coal-to-Gas Conversion TSD,
EPA-HQ-OAR-2009-0234-3065

March 4, 2011 163—166

Memo, “National Emission Standards for Hazardous
Air Pollutants (NESHAP) Beyond the Maximum
Achievable Control Technology (MACT) Floor
Analysis for Coal- and Oil-fired Electric Utility
Steam Generating EGUs”
EPA-HQ-OAR-2009-0234-2924

March 14, 2011 167-179

eee ete eee eee ee eee eT eee ee Te eee ee eee ee

National Mining Association’s Comments

Docket No. EPA-HQ-2009-0234 (NESHAP action)
and EPA-HQ-OAR-2011-0044 (NSPS)

76 Federal Register 24,976

May 3, 2011

ON |): eae Ps Sa 180-185

Connecticut Department of Energy and
Environmental Protection comments
EPA-HQ-OAR-2009-0234-20298
July 12, 2011

Excerpts
Cover letter and attachment

Pata a se ON oo eS Re 186—193

South Carolina Department of Health and
Environmental Control comments
EPA-HQ-OAR-2011-0444-5749

er 194—213

iv

Massachusetts Department of Environmental
Protection comments
EPA-HQ-OAR-2009-0234-18039

July 29, 2011

[pp. 1 to 4] 214-218

[pp. 6 to 7] 219-227

Oe ES SOE EES ES EEE EEE SHEESH OH TOSS SS OOH O OS

New England Interstate Water Pollution Control
Commission comments
EPA-HQ-OAR-2009-0234-17625

August 2, 2011 228-231

Northeast States for Coordinated Air Use
Management comments
EPA-HQ-OAR-2009-0234-17843
August 2, 2011

Excerpts
232-252

pe eel

Attachment A (table) [pp. A-1 to A-2] 253-254

VOLUME 2 OF 4

Michigan Department of Environmental Quaiity
comments, EPA-HQ-0234-2009-0234-18426
ee el 255-277

National Association of Clean Air Agencies
comments, EPA-HQOAR-2009-0234-17620
August 4, 2011

Excerpts
Cover letter and comments

ge ial ect oat ose enna 278~—305

306—320

New Jersey Department of Environmental
Protection, comments
EPAHQ-OAR-2009-0234-18444

August 4, 2011

CRUVER NES eee Oran Bee Lh iOS aed) aoe 321-323

OSS a ae 324-327

Comments of Environmental and Public Health
Groups on the National Emission Standards for
Hazardous Air Pollutants from Coal- and Oil-Fired
Electric Utility Steam Generating Units; Proposed
Rule. Docket No. EPA-HQ-OAR-2011-0044-5715
August 4, 2011

Excerpt
Chapter I [pp. I-1 to I-38] 330-382

Comments of Environmental Defense Fund on the
National Emission Standards for Hazardous Air
Pollutants From Coal-and Oil-Fired Electric Utility
Steam Generating Units, Docket No. EPA-HQ-OAR-
2009-0234-18421
August 4, 2011

Excerpt

Part I [pp. 3 to 7] 383—392

EPRI Comments on Proposed HAPs MACT Rule
EPA-HQ-2009-0234-17621
August 4, 2011

Excerpts
Specific Comments on the Environmental Fate and
Transport, Exposure and Human Health Issues, and
Risk Analyses [p. vilitox] ss
EPRI’s comprehensive sector-wide inhalation risk
assessment on all 470 coal-fired generating facilities
identified no cancer or non-cancer health risks above
regulatory risk threshold, in contrast to EPA’s 16
case studies assessment

ke ee ree. 399-411
a SS eee eee 412-418
a ee 419-422

Exelon Corporation, Comments on the National
Emission Standards for Hazardous Air Pollutants
from Coal- and Oil-Fired Electric Utility Steam
Generating Units; Proposed Rule, Docket No. EPA-
HQ-OAR-2009-0234-17648, Part 1 of 3
August 4, 2011

Excerpts
Comment 1, Sections 1.1 through 1.2

Comment 2, Sections 2.1 through 2.3
[pp. 21 to 38]

Comment 3, entire

ML } NO ce! a8 468—497
Comment 4, entire

Sy | 5 | sneer? 497-503
Comment 5

ioe OSG) Fae ee 503-532
Comment 7, Section 7.5

Ss See 532-536
Comment 7, Section 7.7

fom, OR 0 Oe 536-539

Exhibit 2, MJ Bradley & Associates LLC and
Analysis Group, “Ensuring a Clean, Modern, Electric
Generating Fleet while Maintaining Electric System
Reliability” (Aug. 2010) -— Entire report, no
attachments [pp. 1 to 24].
Exhibit 4, NESCAUM Report, “Control Technologies
to Reduce Conventional and Hazardous Air
Pollutants from Coal-Fired Power Plants” (Mar. 31,
2011) — Executive Summary

Oe TT ie

VOLUME 3 OF 4

Exelon Corporation, Comments on the National
Emission Standards for Hazardous Air Pollutants
from Coal- and Oil-Fired Electric Utility Steam
Generating Units; Proposed Rule
Docket No. EPA-HQ-OAR-2009-0234-17651
Part 2 of 3
August 4, 2011

Excerpts
Exhibit 10, MJ Bradley Report Update -— Entire
report [pp. 1 to 20]

Exhibit 11, Tierney and Cicchetti Peer Review of EEI
Report — Entire report [pp. 1 to 13] 666-685

Exelon Corporation, Comments on the National
Emission Standards for Hazardous Air Pollutants
from Coal- and Oil-Fired Electric Utility Steam
Generating Units; Proposed Rule, Docket No. EPA-
HQ-OAR-2009-0234-17650, Part 3 of 3
August 4, 2011

Excerpts
Exhibit 21 — Cicchetti Report ~— Entire report

Exhibit 23 — Environmental Health & Engineering
Inc. Report — Executive Summary and

Sections 1.0 to 3.3 [pp. 1 to 22] 755-796

VOLUME 4 OF 4

New York Department oof Environmental
Conservation comments,

EPA-HQ-OAR-2009-0234-17796
August 4, 2011
Excerpts
Cover letter 797-801

eee eee eee eee ee eee eT

eee CORE PR REE EEE He eee

Comments of the Utility Air Regulartory Group
August 4, 2011

Excerpts

Attachment 15 [pp. 6, 12, 15, 16] 807-810

eee ee eee

Letter from Dr. Deborah Swackhamer and Dr.
Stephen Roberts, Science Advisory Board to Lisa
Jackson, Administrator, U.S. EPA,
EPA-OAR-2009-0234-18487 — Text only

Sept. 29, 2011 811-814

Tee eee eee eee CeCe eee ee ee eee ee ee eee

Supplement to the Non-Hg Case Study Chronic
Inhalation Risk Assessment In Support of the
Appropriate and Necessary Finding for Coal- and
Oil-Fired Electric Generating Units
EPA-HQ-OAR-2009-0234-19912

Novembcr 2011
Excerpts
3. Chronic Inhalation Risk Assessment
i ah 815-817
i See, Tet 818
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58

Table 4-2 presents the four source categories for
which a control technology and cost analysis was
performed. The selection of a particular type of
control for the cost analysis should not be construed
to mean that the U.S. EPA has selected, or has
preference for, this technology for a given source
category. The table presents the number of facilities
in each category and the percent contribution of each
to the national inventory. Potential national mercury
reductions, potential national control costs and cost-
effectiveness estimates are also presented. These
estimates are based on the assumption that all
plants within a source category will achieve the same
reductions and incur the same costs as the model
plants used in the analysis. Because this assumption
would not be applicable in all circumstances, the
estimates of potential reductions and costs should be
used only for relative comparisons among the source
categories to give an initial indication as to where
mercury controls could provide the most emission
reduction for the least cost.

The cost of mercury control incurred by any
specific facility may be underestimated by the cost
analysis presented in this Report because of
variability inherent in the assumptions that were
made in the analyses. These assumptions include the
efficiency of the various control techniques for
reducing mercury, the amount of mercury in the flue
gas stream and other site-specific factors such as
down-time and labor costs. In addition, costs for
monitoring and recordkeeping were not included in
the cost analyses. These requirements would be
specific to a regulatory action. On the other hand,
the costs represent retrofit application of controls.

59

Installation of controls at new facilities can be

significantly less expensive than retrofitting an
existing facility.

The estimates of cost for mercury reductions also
do not illustrate two important considerations. One
is that, as presented, all of the cost of control could
mistakenly be attributed to mercury removal. As
described previously in this Report, many of these
controls achieve reductions of other pollutants as
well (e.g., acid gases, dioxin, other metals). In some
cases (e.g., the emission guidelines for MWI), the
choice of control technology or control strategy is
aimed at reducing pollutants other than mercury. In
these cases, there is a co-control benefit of mercury
reduction. The benefits of reducing other pollutants
should be considered when interpreting the mercury
control costs. Second, the technologies available for
mercury control represent’ relatively new
applications of these technologies. Thus, in the
future, it is likely that as new or emerging
technologies develop, the cost-effectiveness of control
will improve. Air pollution control and prevention
techniques are continuously under development and
improvement. There is a fairly rapid pace of
innovation in the air pollution control sector. The
demand for cleaner products and cleaner processes
that lower overall costs, combined with the necessity
for improved air and water quality, create strong
incentives for technological innovation and a growing
market for such innovations. As the demand for more
innovative, cost-effective and cost-saving
technologies increase, new technologies will move
from the research and development or pilot program
phase to commercial availability.

60

While existing technology will play a key role in
reducing mercury from some sources, emerging
technology may be more appropriate for others.
Innovations in environmental policies may also play
a key role in developing a rational management
strategy for mercury. These innovations could
include multi-media approaches, greater emphasis
on pollution prevention, regional control strategies
and optimization of co-control opportunities.

fe @ @

61

United States
Environmental! Protection

Agency

Office of Air Quality
Planning and Standards
Research Triangle Park, NC 27711

EPA-453/R-98-004a
February 1998

Air
EPA

Study of Hazardous Air Pollutant
Emissions from Electric Utility Steam
Generating Units — Final Report to
Congress

Volume 1.

[Page ES-1]
EXECUTIVE SUMMARY

ES.1 LEGISLATIVE MANDATE

In section 112(n)(1)(A) of the Clean Air Act, as
amended (the Act), Congress directs the United
States Environmenta! Protection Agency (EPA) to:

“... perform a study of the hazards to public
health reasonably anticipated to occur as a
result of emissions by electric utility steam
generating units of ... fhazardous air

62

pollutants} ... after imposition of the
requirements of this Act.”

Section 112(a)(8) of the Act defines an “electric utility
steam-generating unit” as “any fossil-fuel—fired
combustion unit of more than 25 megawatts electric
(MWe) that serves a generator that produces
electricity for sale.” A unit that cogenerates steam
and electricity and supplies more than one-third of
its potential electric output capacity and more than
25 MWe output to any utility power distribution
system for sale is also considered an electric utility
steam-generating unit (i.e., utility unit).

Section 112(n)(1)(A) also requires that:

e The EPA develop and describe alternative
control strategies for hazardous air

pollutants (HAPs) that may warrant
regulation under section 112; and

e The EPA proceed with rulemaking
activities under section 112 to control
HAP emissions from utilities if EPA finds
such regulation is appropriate and
necessary after considering the results of
the study.

ES.2 REGULATORY DE’ ERMINATION

This report does not contain a determination as
to whether or not regulations to control HAP
emissions from utility units are appropriate and

necessary. The Agency has deferred the regulatory
determination until a later date.

63

ES.3 OVERVIEW APPROACH TO COMPLETING
THE STUDY

The study included mumerous separate and
interrelated analyses. First, HAP emissions test data
were gathered from 52 utility units (i.e., boilers),
including a range of coal-. oil-, and natural gas-fired
utility units. Second, the emissions test data along
with facility specific information (e.g., boiler type,
control device, fuel usage) were used to estimate
HAP emissions from all 684 utility plants in the
United States (U.S.). Third, a screening level
hazard/risk assessment was completed to prioritize
the HAPs for further analyses. Fourth, various
priority HAPs were analyzed for inhalation and

[Page ES-2]

multipathway exposures and risks and other
potential impacts. In addition, potential control
strategies were analyzed for the priority HAPs. The

overall summary of the study is presented in Figure
ES-1.

This report presents the findings of the study.
The primary components of this report are: (1) a
description of the industry; (2) an analysis of
emissions data; (3) an assessment of hazards and
risks due to inhalation exposures to 67 HAPs; (4)
assessments of risks due to multipathway
Gnhalation plus non-inhalation) exposures to four
HAPs (radionuclides, mercury, arsenic, and dioxins);
and (5) a discussion of alternative control strategies.

The study was based primarily on two scenarios:
(1) 1990 base year emissions; and (2) 2010 emissions.
In addition, emissions for 1994 were estimated using

64

the most recent data. The 1990 scenario was chosen
since that was the year the Amendments to the Act
were passed and was the latest year for which utility
operational data were available at the time the study
was initiated. The 2010 scenario was selected to
meet the section 112(n)(1)(A) mandate to evaluate
hazards “after imposition of the requirements of the
Act.” Primarily, this meant assessing the hazards
after the acid rain program is in place. The 2010
scenario also included estimated changes in HAP
emissions resulting from projected trends in fuel
choices and projected increases in electric power
demands. However, the effects of other on-going or
potential activities that were not factored into the
2010 projections (e.g., industry restructuring, new
ozone and particulate matter [PM] standards, global
climate change programs) may result in the 2010
projections being either underestimated or
overestimated.

ES.4 EMISSIONS DATA ANALYSIS

A total of 684 utility plants (j.e., utilities) were
identified as meeting the criteria for the study in
1990 in the U.S. These utilities are fueled primarily
by coal (59 percent of total units), oil (12 percent), or
natural gas (29 percent). Many plants have two or
more units and several plants burn more than one
type of fuel (e.g., contain both coal- and oil-fired
units). In 1990, there were 426 plants that burned
coal as one of their fuels, 137 plants that burned oil,
and 267 plants that burned natural gas.

Emission estimates for the years 1990, 1994, and
2010 were based on emissions test data from 52 units
obtained from extensive emission tests by the

65

Electric Power Research Institute (EPRI, the
Department of Energy (DOE), the Northern States
Power Company, and the EPA. The testing program
was designed to test a wide range of facility types
with a variety of control scenarios; therefore, the
data are considered generally representative of the
industry. However, there are uncertainties in the
data because of the small sample sizes for specific
boiler types and control scenarios.

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[Page ES-4]

These test data provided the basis for estimating
average annual emissions for each of the 684 plants.
A total of 67 of the 188 HAPs listed in section 112 of
the Act were identified in the emissions testing
program as potentially being emitted by utilities.
Tables ES-1 and ES-2 present estimated emissions
for, respectively, a subset of priority HAPs for 1990,

1994, and 2010, and for a set of characteristic boilers
for 1994.

Although the EPA used average annual
emissions estimates in assessing long-term
exposures to individual HAPs on a national basis,
emissions test data were not available for each
utility in the U.S. Therefore, estimates for individual
plants are particularly uncertain. Based on an
uncertainty analysis, the average annual emissions
estimates are expected to be roughly within a factor
of plus or minus three of actual annual emissions.
However, even this uncertainty analysis had
limitations. For example, the uncertainty analysis
did not include data on potential upsets or unusual
operating conditions; therefore, the range of
uncertainty could be greater.

ES.5 GENERAL APPROACH TO EXPOSURE AND
RISK ASSESSMENT

Most of the risk assessment focused on
inhalation exposure. All 67 HAPs were assessed for
inhalation exposures, at least at a screening level.
For many of the 67 HAPs, inhalation exposure is
believed to be the dominant exposure pathway.
However, for HAPs that are persistent and/or
bioaccumulate, and are toxic by ingestion (or are

68

radioactive), the non-inhalation exposure pathways
could be more important. Based on a screening and
prioritization assessment, which is described below,
the EPA identified four high priority HAPs
(radionuclides, mercury, arsenic, dioxins) to assess
for noninhalation exposures. In addition, cadmium
and lead were identified as next highest priority.
Multipathway assessments are presented for
radionuclides, mercury, arsenic, and dioxins. The
other two HAPs (lead and cadmium) were examined
qualitatively for their potential for multipathway
hazards.

ES.6 SCREENING ASSESSMENT

As outlined in Figure ES-1, EPA initially
conducted a screening assessment that considered
inhalation and non-inhalation exposure routes for all
67 HAPs to identify priority HAPs for more detailed
assessment. To screen for inhalation exposures, the
EPA used the Human Exposure Model (HEM) to
model the 67 HAPs from all 684 utility plants
utilizing generally conservative assumptions (i.e.,
assumptions that are more likely to overestimate
rather than underestimate risks) to estimate
inhalation risks for maximally exposed individuals

(MEIs).

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If the MEI risk was above a minimum measure (e.g.,
exposure greater than one-tenth the inhalation
reference concentration [RfC]* or cancer risk greater
than 1 chance in 10 million), then the HAP was
chosen for more study. For non-inhalation exposures,
the 67 HAPs were prioritized by considering five
criteria: (1) persistence; (2) tendency to
bioaccumulate; (3) toxicity; (4) emissions quantity;
and (5) radioactivity.

Based on this screening assessment, a total of 14
HAPs were identified as priority. Twelve HAPs
(arsenic, beryllium, cadmium, chromium,
manganese, nickel, hydrogen chloride [HC],
hydrogen fluoride [HF], acrolein, dioxins,
formaldehyde, and radionuclides) were identified as
priority pollutants for further study based on
potential for inhalation exposures and risks. Four of
these 12 HAPs (arsenic, cadmium, dioxins, and
radionuclides) plus 2 additional HAPs (mercury and
lead) were considered priority for multipathway
exposure); of these 6 HAPs, 4 (arsenic, mercury,
dioxins, and radionuclides) were identified as the
highest priority to assess for

[Page ES-7]

multipathway exposures and risks. Overall, a total of
14 of the 67 HAPs were considered priority. The
other 53 HAPs were not evaluated beyond the
screening assessment.

@ The RC is an estimate (with uncertainty spanning perhaps
an order of magnitude) of the daily inhalation exposure of the
human population (including sensitive subgroups) that is likely
to be without appreciable risk of deleterious effects during a
lifetime.

72

ES.7 INHALATION RISK ASSESSMENT -- LOCAL
ANALYSIS

The EPA estimated inhalation exposures and
risks due to dispersion of HAP emissions within 50
kilometers (km) of each of the 684 plants (i.e., local
analysis). For 13 of the 14 priority HAPs, the HEM
was used; for radionuclides, the Clean Air Act
Assessment Package-1993 (CAP-93) model was used.
The HEM exposure modeling conducted for the
inhalation risk assessment was very similar to the
modeling conducted for the screening assessment.
The same default options and same input data were
used. However, there is one important difference. For
the inhalation risk assessment, a distinction was
made between urban and rural locations. If a plant is
located in an urban area, it was modeled using the
urban mode (i.e., dispersion is assumed to be
characteristic of emissions emitted by a facility in an
urban location where there are buildings nearby).
Dispersion of the pollutant plume in an urban area is
expected to exhibit greater turbulence because of
heat transfer and obstacles (i e., large buildings). If a
plant is located in a rural location, it was modeled
using the rural mode (i.e., dispersion is assumed to
be characteristic of a facility located in a rural
location). In the screening assessment, all plants
were modeled using the urban default because using
the urban default typically leads to more
conservative (i.e., higher) estimates of human
exposures, which is appropriate for a screening
assessment. However, using the urban and rural
distinction is believed to reflect more realistic
conditions.

73

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[Page 14-8]

14.7 AREAS FOR FURTHER RESEARCH AND
ANALYSIS

There are numerous uncertainties and data gaps
described throughout this report. This section
identifies several of the important areas in which
further research or scientific and technical work is
needed.

14.7.1 Emissions Data for Dioxins

Emissions data for dioxins were available from
only eight of the tested utility plants. Therefore,
there are greater uncertainties with the dioxin
emissions than for many of the other HAPs. All types
of utility units were not tested (e.g., there are no
data available from coal-fired units with hot-side
ESPs).

14.7.2 Speciation of Nickel and Chromium

There are significant uncertainties regarding the
forms of nickel being emitted from oil-fired utilities
and the health effects associated with those different
forms. Therefore, further research and evaluation of
the emissions to determine what forms are being
emitted and the health effects associated with those
different forms would be of value. Further evaluation
of chromium speciation is also needed.

14.7.3 Multipathway Risk Assessment
As mentioned previously, further work is needed
to study the risks due to multipathway exposure to

136

HAPs that are persistent and bioaccumulate. Arsenic
and dioxins are two HAPs identified as priority for
further multipathway assessment.

14.7.4 Long-range Transport Exposures

Uncertainties remain regarding long-range
transport of HAPs. Further modeling and evaluation
could be helpful to assess the impacts of long-range
transport of HAPs from utilities.

14.7.5 Mercury Issues

There are numerous areas regarding mercury
that may need further research, study, or evaluation.
A number of potential areas for further study include
the following:

e review the estimates of the levels of exposure to
mercury associated with subtle neurological
endpoints;

[Page 14-9]
e quantify and/or evaluate the relationship between
a change in United States mercury emissions and

the resulting change in methylmercury levels in
fish;

e evaluate actual consumption patterns and
estimates of the methylmercury exposure of the
subpopulations of concern;

e gather additional data on the mercury content of
various types of coal;

e establish improved methods for measuring
mercury concentrations in water;

137

e study the occupational, dietary, and behavioral
factors that affect mercury exposures for people
who are determined to be exposed above a
threshold of concern;

e study the public health and environmental
benefits that would be expected by reducing
mercury emissions from utilities;

e evaluate and/or research control technologies or
pollution prevention options that are available, or
will be available, that could potentially reduce
mercury emissions and what are the costs,
economic impacts, and feasibility of those options;

e evaluate how other regulations, programs, and
activities (e.g., acid rain program, electricity
restructuring, NAAQS, climate change) affect
mercury emissions;

e gather additional data on mercury emissions (e.g.,
how much is emitted from various types of utility
units, how much is divalent vs elemental
mercury, and how do factors such as control

device, fuel type, and plant configuration affect
emissions and speciation); and

e study how much mercury is emitted from natural
sources and past anthropozenic sources.

14.7.6 Projections to the Year 2010

There are. significant uncertainties and
unknowns in the emissions and misk projections
made to the year 2010 (e.g., impact of industry
restructuring; impact of State efforts to regulate
restructuring; impact of any climate change

138

initiatives). Further research and evaluation in this
area is needed.

14.7.7 Ecological Risks
The effects of HAPs on wildlife, endangered

species, and terrestrial and aquatic ecosystems were
not evaluated in this study. Although not mandated
by section 112(n)(1)(A), further evaluation of

[Page 14-10}

ecological risks due to HAP emissions would be
needed to fully evaluate the impacts of utility HAP
emissions.

14.7.8 Criteria Pollutant and Acid Rain Programs
Further evaluation is needed to assess the

impacts of the Acid Rain and Criteria Pollutant
programs (e.~, impact of revisions to the PM-fine
and ozone NAAQS; impact of Ozone Transport
Assessment Group [OTAG] activities) on HAP
emissions.

14.7.9 Short-term Emissions

A limited assessment of short-term exposures
was completed. However, further evaluation of short-
term releases, especially highend, peak releases,
could be useful to fully assess the potential impacts
to public health due to emissions of HAPs
(particularly HCl and HF) from utilities.

139

Federal Register /Vol. 69, No. 20 / Friday, January
30, 2004 / Proposed Rules

[Page 4657}

xx«*

C. What Are the Health Effects of HAP Emitted From
Coal- and Oil-Fired Utility Units?

Data collected during development of the
proposed section 112 rule show that coal- and oil-
fired Utility Units emit a wide variety of metal,
organic, and inorganic HAP, depending on the type
of fuel that is combusted. Today’s proposed rules,
both under CAA section 111 and 112, would protect
air quality and promote the public health by
reducing emissions of Hg and Ni from coal- and oil-
fired Utility Units. Exposure to Hg and Ni at
sufficiently high levels is associated with a variety of
adverse health effects. The EPA cannot currently
quantify whether, and the extent to which, the
adverse health effects occur in the populations
surrounding these facilities, and the contribution, if
any, of the facilities to those problems. However, to
the extent the adverse effects do occur, either of
today’s proposed actions would reduce emissions and
subsequent exposures. Following is a summary of the
health effects for the Hg and Ni emissions that would
be reduced by either of the proposed rules.

Mercury. Mercury is n persistent,
bioaccumulative toxic metal that exists in three
forms: elemental Hg (Hg®), inorganic Hg (Hg**)
compounds (primarily mercuric chleride), and
organic Hg compounds (primarily methylmercury).
Each form exhibits different health effects. Various

140

major sources may release elemental or inorganic
Hg; environmental methylmercury, the form of
concern for this rulemaking, is typically formed by
biological processes after Hg has precipitated from
the air and deposited into water bodies.

Mercury is toxic to humans from both the
inhalation and oral exposure routes. In the proposed
rulemaking, we focus

[Page 4658}

on oral exposure of methylmercury as it is the route
of primary interest for human _ exposures.
Methylmercury is a_ well-established human
neurotoxin although, as with many chemicals, the
scientific community is divided on the specific dose
and frequency of exposure required to elicit adverse
effects. According to the NAS, chronic low-dose
prenatal methylmercury exposure has _ been
associated with poor performance on
neurobehavioral tests in children, including those
tests that measure attention, visual-spacial ability,
verbal memory, language ability, fine motor skills,
and intelligence. Furthermore, it has _ been
hypothesized that there is an association between
methylmercury exposure and an increased risk of
coronary disease in adults; however, this hypothesis
warrants further study as the few studies currently
available present conflicting results. (NEJOM; 2002;
Yoshizawa, 2002; Guallar, 2002; Salonen, 1999;
Salonen, 1995; Bolger, 2003).

Fish consumption dominates the pathway for
human and wildlife exposure to methylmercury.
There is a great deal of variability among individuals
in fish consumption rates. Critical elements in

141

estimating methylmercury exposure and risk from
fish consumption include the species of fish
consumed, the concentrations of methylmercury in
the fish, the quantity of fish consumed, and how
frequently the fish is consumed. The typical U.S.
consumer eating a wide variety of fish from
restaurants and grocery stores is not in danger of
consuming harmful levels of methylmercury from
fish and is not advised to limit fish consumption.
Those who regularly and frequently consume large
amounts of fish, either marine or freshwater, are
more exposed. Because the developing fetus may be
the most sensitive to the effects from methylmercury,
women of child-bearing age are regarded as the
population of greatest interest. The EPA, Food and
Drug Administration, and many States have issued
fish consumption advisories to inform this population
of protective consumption levels.

The EPA’s 1997 Mercury Study RTC supports a
plausible link between anthropogenic releases of Hg
from industrial and combustion sources in the U.S.
and methylmercury in fish. However, these fish
methylmercury concentrations also result from
existing background concentrations of Hg (which
may consist of Hg from natural sources, as well as
Hg which has been re-emitted from the oceans or
soils) and deposition from the global reservoir (which
includes Hg emitted by other countries). Given the
current scientific understanding of the
environmental fate and transport of this element, it
is not possible to quantify how much of the
methylmercury in fish consumed by the U.S.
population is contributed by U.S. emissions relative
to other sources of Hg (such as natural sources and

142

reemissions from the global pool). As a result, the
relationship between Hg emission reductions from
Utility Units and methylmercury concentrations in
fish cannot be calculated in a quantitative manner
with confidence. In addition, there is uncertainty
regarding over what time period these changes
would occur. This is an area of ongoing study.

Given the present understanding of the Hg cycle,
the flux of Hg from the atmosphere to land or water
at one location is comprised of contributions from:
the natural global cycle; the cycle perturbed by
human activities; regional sources; and local sources.
Recent advances allow for a general understanding
of the global Hg cycle and the impact of the
anthropogenic sources. It is more difficult to make
accurate generalizations of the fluxes on a regional
or local scale due to the sitespecific nature of
emission and deposition processes. Similarly, it is
difficult to quantify how the water deposition of Hg
leads to an increase in fish tissue levels. This will
vary based on the specific characteristics of the
individual] lake, stream, or ocean.

As part of routine U.S. population surveillance,
the U.S. Centers for Disease Control (CDC) assessed
Hg concentrations in blood of over 1,500 women of
child-bearing age. A recent analysis of these data
reported that about 8 percent of these women of
child-bearing age have levels of Hg in their blood
that are at or above the U.S. EPA’s RfD. The CDC
also surveyed the same group of women about their
eating habits. The surveyed women reported eating
shrimp and tuna more frequently than other fish and
shellfish options. Hg concentrations in seafood may

143

be largely responsible for elevated levels of Hg in
U.S. women of child-bearing age. We have little
information about how Hg emissions from U.S.
power plants may affect Hg concentrations in
shrimp, tuna, and other marine fish. We seek
comment on this issue and in particular, any data or
other information that would allow us to better
estimate the extent to which today’s proposal would
reduce blood Hg concentrations in U.S. women.

Recent estimates (which are highly uncertain) of
annual total global Hg emissions from all sources
(natural and anthropogenic) are about 5,000 to 5,500
tons per year (tpy). Of this total, about 1,000 tpy are
estimated to be natural emissions and about 2,000
tpy are estimated to be contributions through the
natural global cycle of re-emissions of Hg associated
with past anthropogenic activity. Current
anthropogenic emissions account for the remaining
2,000 tpy. Point sources such as fuel combustion;
waste incineration; industrial processes; and metal
ore roasting, refining, and processing are the largest
point source categories on a world-wide basis. Given
the global estimates noted above, U.S. anthropogenic
Hg emissions are estimated to account for roughly 3
percent of the global total, and U.S. utilities are
estimated to account for about 1 percent of total
global emissions. (Utility RTC at 7—1 to 7-2.)

Nickel. Nickel is a natural element of the earth’s
crust; therefore, small amounts are found in food,
water, soil and air. Food is the major source of Ni
exposure. Ni is an essential element in some animal
species. Individuals may also be exposed to Ni if they
are employed in occupations involved in Ni

144

production, processing, and use, or through contact
with every day items such as Ni-containing jewelry
and stainless steel cooking and eating utensils, and
by smoking tobacco. The route of human exposure to
Ni that we are concerned with in this rulemaking is
Ni that is found in ambient air at very low levels as a
result of releases from oil-fired Utility Units. The
differing forms of Ni have varying levels of toxicity.
There is great uncertainty about the different species
of Ni emitted by Utility Units.

Respiratory effects, including a type of asthma
specific to Ni, decreased lung function and bronchitis
have been reported in humans who have been
occupationally exposed to high-levels of Ni in air.
Animal studies have reported effects on the lungs
and immune system from inhalation exposure to
soluble and insoluble Ni compounds (nickel oxide,
subsulfide, sulfate heptahydrate). Soluble Ni
compounds are more toxic to the respiratory tract
than less soluble compounds. The EPA has not
established a reference concentration (RfC)for Ni. No
information is available regarding the reproductive
or developmental effects of Ni in humans, but animal
studies have reported such effects, although a
consistent doseresponse relationship has not been
seen. Human and animal studies have reported an
increased risk of lung and nasal cancers from
exposure to Ni refinery dusts and Ni subsulfide. The
EPA has classified Ni carbonyl as a Group B2,
probable human carcinogen based on lung tumors in
animals. (see

[Page 4659]
http: //www.epa.gou/ttn/atw/hlithef/ nickel.html).

145

We ask for comment on all aspects of our
proposed revised determination that it is necessary
and appropriate to regulate Ni emissions from oil-
fired Utility Units under section 112. In particular,
we ask for comments and additional information
related to the speciation of Ni compounds directly
emitted by oil-fired Utility Units and those that may
be formed through atmospheric transformation, as
well as information on potential health effects. We
also ask commenters—especially current owners and
operators of potentially affected oil-fired units—to
provide information on the current operating status
and anticipated mode of operation in the future of
potentially affected oil-fired Utility Units, including
current control technology. To the extent possible, we
would like to have up-to-date information on fuel
use, emissions, stack parameters and other location-
specific data that would be relevant to the
assessment of emissions, dispersion, and ambient air
quality. We also ask for comment on our finding in
the Utility RTC that only 11 of 137 oilfired Utility
Units considered in the Utility RTC posed an
inhalation risk to human health greater than one in
a million (1 * 10°) and whether data exists as to
whether emissions from these plants no longer pose
such risk.

146

Federal Register /Vol. 70, No. 59 /Tuesday, March
29, 2005 /Rules and Regulations

[Page 16019}

eek *

F. Fish Tissue Levels of Methylmercury Modeled To
Result After Implementation of CAIR and CAMR

This section describes the amounts of Utility
Unit attributable Hg deposition onto watersheds
(termed HUC), as well as the Utility-attributable
methylmercury in fish tissue, all under the various
control scenarios modeled.

1. Utility-Attributable Hg Deposition Patterns

The air quality modeling shows that total Hg
deposition is not highly impacted by utility
deposition. The small size of this impact is evident
when utility emissions are, in effect, zeroed out in
the 2001 base case. The following tables summarize
impacts on total Hg deposition and Hg deposition
attributable to Utility Units.

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[Page 16019 cont.}

The median deposition level is reduced by only 8
percent when utilities emissions are zeroed out in
2001, suggesting that utilities are not a major source
of Hg deposition in most HUCs. Even so, at HUCs
with the highest deposition levels, zeroing out
utilities reduces the 99th percentile deposition level
by 16 percent, suggesting that there are relatively
larger impacts of utilities in high deposition areas.

By 2020, after implementation of CAIR,
significant reductions in deposition attributable to
utilities occurs. HUCs with high levels of utility
deposition receive a larger reduction in Utility-
attributable Hg deposition relative to HUCs with a
relatively small level of Utility-attributable
deposition. Specifically, CAIR results in a 75 percent
reduction in the 99th percentile of Utility-
attributable deposition, and a 20 percent reduction
in the 50th percentile. CAIR also shifts the
distribution of utility-attributable deposition. In the
2001 base case, 10 percent of HUCs had greater than
20 percent of deposition attributable to utilities. In
the 2020 post-CAIR base case, no HUCs had greater
than 20 percent of deposition attributable to utilities,
and 90 percent had less than 9 percent of deposition
attributable to utilities.

[Page 16020]

Additional reductions in Hg emissions due to the
CAMR requirements result in relatively small
additional shifts in the distribution of deposition.
Additional emissions reductions due to the CAMR
requirements result in a small additional reduction
in the number of HUCs with a high percentage of

149

utilityattributable emissions. (The incremental
impact of the CAMR alternative relative to the
promulgated CAMR requirements is very small.)

2. EGU-Attributable Methylmercury Fish Tissue
Levels

The following _ tables summarize the
methylmercury fish tissue levels associated with the
various Utility Unit Hg emissions scenarios. All
units refer to mg (of methylmercury) per kg (fish
tissue), or parts per million (ppm). As a frame of
reference, it should be noted that EPA’s default
water quality criterion is 0.3 mg/kg.

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a. 2001 Base case and 2001 Utility Zero-out. In
the 2001 base case, as a result of all international
and U.S. emissions, and before U.S. utilities
implement reductions from CAIR or CAMR, the 50th
percentile of the sample points had an estimated
methylmercury fish tissue concentration of 0.25
mg/kg. The 90th percentile water body had an
estimated methylmercury fish tissue concentration of
0.90 mg/kg, and the 99th percentile had 1.80 mg/kg.

The amount of methylmercury attributable solely
to utilities in the 2001 base case, which becomes
evident when utilities are zeroed out, is of course
much smaller. The 50th percentile of the sample
points had an estimated methylmercury fish tissue
concentration. attributable solely to utilities, of 0.03
mg/kg. The 90th percentile had 0.11 mg/kg, the 99th
percentile had 0.26 mg/kg, and the maximum
individual sample point had 0.85 mg/kg.

It should be recalled that EPA recommends the
water quality criterion of 0.3 mg/kg as a level that,
given fish consumption at the 90th percentile level,
would result in exposure levels below the RfD. For
present purposes, EPA does not consider the water
quality criterion of 0.3 mg/kg as a bright-line test for
evaluating fish tissue methylmercury levels
attributable to U.S. Utility Units. Rather, the
criterion serves as establishing a broad frame of
reference, that serves to place into context both the
overall methylmercury fish tissue levels (which are
attributable to methylmercury from all sources) and

the methylmercury levels attributable to Utility
Units.

152

These results indicate the relatively small
percentage of U.S. utility contribution to U.S. fish
tissue methylmercury levels.

b. 2020: Utilities With CAIR Reductions. EPA’s
modeling shows that in 2020, as a result of all
international and U.S. emissions, and with U.S.
utilities implementing reductions from CAIR (but not
CAMR), the 50th percentile of the sample points is
projected to have a methylmercury fish tissue
concentration of 0.21 mg/kg. The 90th percentile is
projected to have 0.79 mg/kg, and the 99th percentile
is projected to have 1.64 mg/kg.

The amount of methylmercury in fish
attributable solely to utilities in 2020, after
implementation of the CAIR reductions (but, again,
before CAMR), of course is smaller. The 50th
percentile of the sample points is projected to have
fish tissue concentration, attributable solely to
utilities of 0.01 mg/kg. The 90th percentile is
projected to have 0.03 mg/kg, the 99th percentile is
projected to have 0.10 mg/kg, and the maximum
individual sample point (i.e., the one with the highest
methylmercury levels) is projected to have 0.25
mg/kg.

Again, using the 0.3 mg/kg methylmercury water
quality criterion as a broad frame of reference
serving to place in context both the overall
methylmercury fish tissue levels (attributable to
methylmercury from all _ sources) and _ the
methylmercury fish tissue levels attributable to
Utility Units, it is clear that the latter levels,
following implementation of CAIR, are low.

153

c. 2020: Utilities with CAMR Controls. The
CAMR level of controls achieve further, albeit small,
reductions in methylmercury fish tissue
concentrations. Compared to the CAIR controls, the
CAMR controls would further reduce, in 2020,
methylmercury fish tissue concentrations by, in the
99th percentile, 0.01 mg/kg.

d. 2020: Utilities with Alternative CAMR
Controls. EPA evaluated, but did not adopt, a

slightly tighter level of CAMR controls. These
alternative

[Page 16021]

CAMR controls would have achieved still further,
albeit, again small, reductions in Hg deposition and
in fish tissue methylmercury levels. Compared to the
CAIR controls, these alternative CAMR controls
would reduce methylmercury fish tissue levels in
2020 by, in the 99th percentile, 0.02 mg/kg. 49

5. Overall Impact of CAIR and CAMR Controls on
Utility Unit Hg Emissions

As described in the CAIR rule, CAIR reduces
EGU Hg emissions from pre- CAIR levels by a
substantial percentage. CAMR reduces Utility Unit
Hg emissions, from CAIR levels, by 27 percent.
CAMR reduces ionic Hg emissions, those that are
most likely to result in local and regional deposition,
by 17 percent relative to CAIR levels.

49 A detailed discussion of the control alternatives we
considered and the reason for our final selection is contained in
the preamble to the final CAMR.

154

These reductions tend to occur from the largest
sources. That is, the larger the source of Hg
emissions, the more likely it is to implement CAIR or
CAMR controls, and therefore the more likely it is to
reduce its Hg emissions. More specifically, under the
cap-and-trade system, the marketplace tends to
direct controls to the largest emitters because those
emitters can achieve the most. cost-effective
reductions. Compared to smaller emitters, these
larger emitters have an incentive to implement more
stringent controls, thereby reducing their emissions
further below the level of their allowances, and
thereby generating a larger number of allowances for
sale to defray control costs. See “Proposed National
Emissions Standards for Hazardous Air Pollutants;
and in the Alternative, Proposed Standards of
Performance for New and Existing Sources: Electric
Utility Steam Generating Units,” 9 FR 4652, 4702-—
03 (Jan. 30, 2004).

G. Exposure to Utility-Attributable Methylmercury
Levels in Fish Tissue

CAIR reduces median Utilityattributable fish
tissue methylmercury levels, from pre-CAIR levels,
by 67 percent. CAIR reduces the 99th percentile
Utility-attributable fish tissue methylmercury levels,
from pre-CAIR levels, by 60 percent. CAMR reduces
median Utility-attributable fish tissue
methylmercury levels, from CAIR levels, by 12
percent. CAMR reduces the 99th percentile Utility-
attributable fish tissue methylmercury levels, from
CAIR levels, by 9 percent.

As a result of these reductions, after CAIR or
CAMR, no sample site remains in which Utility-

155

attributable, emissions cause methylmercury fish
tissue levels to exceed 0.3 mg/kg (EPA’s water
quality criterion).

Even with these reductions, although the levels
of methylmercury in fish tissues attributable to
Utility Units are small, the magnitude of
methylmercury exposure depends on consumption
levels and the sensitivity of the individual. For
purposes of assessing whether utility Hg emissions
are reasonably anticipated to result in hazards to
public health, we focused on evaluating utility
attributable methylmercury exposures for women of
childbearing age in the general U.S. population who
consume noncommercial (e.g., recreational)
freshwater fish in U.S. waterbodies.

This section describes available information as to
the consumption levels of women of child-bearing age
within the population of recreational fishers who
consume at typical levels, and within high-
consumption subpopulations; and discusses the
amounts of methylmercury that may be ingested as a
result of those consumption levels.

1. General Population

We believe that only those women of childbearing
age who consume noncommercially caught U.S.
freshwater fish have the potential for significant
exposures to utilityattributable methylmercury. As a
result, our assessment of the hazards to public
health focuses on those women.

156

2. Recreational Fishers Who Consume Fish At
Typical Levels.

a. Consumption Levels. For our analysis of
recreational freshwater fish consumption, EPA has
determined that the sport-caught fish consumption
rates for recreational freshwater fishers specified as
“recommended” in the EPA’s Exposure Factors
Handbook (mean of 8 gm/day and 95th percentile of
25 gm/day), represent the most appropriate values
for present purposes. These recommended values
were derived based on ingestion rates from four
studies conducted in Maine, Michigan, and Lake
Ontario (Ebert et al., 1992; Connelly et al., 1996;
West et al., 1989; West et al., 1993). These studies
are suitable because they included information for
annual-averaged daily intake rates for self-caught
freshwater fish by all recreational fishers including
consumers and non-consumers. The mean values
presented in these four studies ranged from 5 to 17
gm/day, while the 95th percentile values ranged from
13 to 39 gm/day. ©

The EPA “recommended values” were developed
by considering the range and spread of means and
95th percent values presented in the four studies.
EPA recognizes that use of mean and 95th percentile
consumption rates based on these four studies may
not be representative of fishing behavior in every
state and that there may be regional trends in
consumption that differ from the values used in this
analysis. However, EPA believes that these four

50 The 39 gm/day value actually represents a 96th percentile
value.

157

studies represent the best available data for
developing recreational fisher ingestion rates for
present purposes.

As a result, for today’s purposes of evaluating the
potential for health effects for consumers of
recreational freshwater fish resulting from exposure
to utility-attributable methylmercury, we consider
both the mean of 8 gm/day consumption and the 95th
percentile amount of 25 gm/day.

b. Levels of Consumption Combined with Levels
of Utility-Attributable Methylmercury in Fish
Tissue. As described above, fish tissue levels of
Utility-attributable methylmercury, for virtually all
sample points, are only a fraction of the 0.3 mg/kg
(fish tissue) water quality criterion. EPA evaluated
recreational fish consumers’ exposure to this Utility-
Attributable methylmercury by calculating the level
of exposure to this methylmercury and comparing it
to the RfD when background exposures are not
considered. For the purposes of assessing population
exposure due solely to power plants, we create an
index of daily intake (IDI).The IDI is defined as the
ratio of exposure due solely to power plants to an
exposure of 0.1 pug/kg bw/day. The IDI is defined so
that an IDI of 1 is equal to an incremental exposure
equal to the RfD level, recognizing that the RfD is an
absolute level, while the IDI is based on incremental
exposure without regard to absolute levels. Note that
an IDI value of 1 would represent an absolute
exposure greater than the RfD when background
exposures are considered.

At either the mean fish consumption rate of 8
gm/day or the 95th percentile fish consumption rate

158

of 25 gm/day for recreational fish consumers
discussed above, and using the 99th percentile
methylmercury fish tissue concentration attributable
to Utility Unit (and a typical body weight of 64 kg for
women of child-bearing age), the calculated Utility-
attributable methylmercury exposures are 0.013
pug/kg body weight per day and 0.04 pug/kg body
weight per day, respectively. Both calculated
exposures are well below the RfD of 0.1 pug/kg body
weight per day (an IDI value well below 1).

[Page 16022]

EPA uses the RfD to place ingestion levels in
context. The RfD level of methylmercury ingestion—
0.1 pug/kg body weight—should not be considered a
bright line standard above which adverse health
effects occur, but rather as an aid in establishing the
context for evaluating both overall methylmercury
ingestion (arising from methylmercury from all
sources) as well as_ Utility- Attributable
methylmercury ingestion in light of consumption
rates. Our analysis concludes that Utility Unit Hg
emissions do not cause hazards to the health of the
general public or higher fish consuming recreational
anglers.

3. High-Level Fish Consumption Sub- Populations

Although exposure to Utilityattributable
methylmercury from freshwater fish tissue is quite
low for recreational fishers generally, as just
described, EPA recognizes that certain’ sub-
populations consume higher levels of U.S. freshwater
fish. These populations may include a subset of
recreational fishers who consume large quantities of
fish, individuals who are subsistence fishers, and

159

individuals who are part of certain ethnic groups.
EPA is aware that at very high consumption levels,
even relatively small concentrations of

methylmercury in fish may result in exposures that
exceed the RfD.

However, as described in the TSD,
characterization of fish consumption rates for the
highest fish consuming subpopulations (e.g., Native
American and other ethnic populations exhibiting
subsistence-like consumption) in the context of a
larger regional or national analysis is technically
challenging. Peer reviewed study data on “these
populations is relatively limited, especially when
subjected to the criteria outlined in the TSD. Many of
the high consumption groups that have been studied
are located near the ocean and consequently have a
significant fraction of their overall exposure
comprised of saltwater fish. In addition, some of
these studies provide details on seasonal!
consumption rates, but do not integrate these rates
to provide an overall mean annual-averaged
consumption rate relevant to an RfD-based analysis.

Although many of these studies provide mean
consumption rates, few have identified specific high-
end percentile values (eg., 90th, 95th or 99th
percentile consumption rates). Instead, many
studies, including a number of non-peer reviewed
sources, cite non-specific high-end or bounding point
estimates (e.g., the range of consumption rates for
the Ojibwe submitted for the CAMR NODA). While
these point values can be used in developing high-
end bounding scenarios for evaluating risk to these
groups, they do not support populationlevel analysis

160

of exposure since they cannot be used to fit
distributions characterizing variability in fish
consumption rates across these subpopulations (as
noted above, modeling of population-level exposures
requires that distributions characterizing fish
consumption rates across a particular population be

developed).

An additional challenge in characterizing high-
level fish consumption is that care needs to be taken
in extrapolating study results from one group to
another. This reflects the fact that high-level fish
consumption is often tied to socio-cultural practices
and consequently consumption rates for a study
population cannot be easily transferred to other
groups which may have different practices (e.z.,
practices for one Native American tribe may not be
relevant to another and consequently behavior
regarding fish consumption may not be generalized).

Despite these challenges in characterizing high-
level consumption, EPA has developed recommended
subsistence-level fish consumption rates of 60 g/day
(mean) and 170 g/day (95th percentile) (EPA, 1997,
Exposure Factors Handbook). These values are based
on a study of several Native American Tribes located
along the Columbia River in Washington State.
Although these consumption rates are specific to the
tribes included in the study and reflect their
particular sociocultural practices (including
seasonality and target fish species), EPA believes
that this study does provide a_ reasonable
characterization of highconsuming subsistence-like
freshwater fishing behavior (EPA, 1997, Exposure
Factors Handbook). Therefore, in the absence of data

161

on local practices, EPA recommends that these
consumption rates be used to model high-consuming
groups in other locations. It is important to note
that, as explained above, application of these
subsistence consumption rates outside of the original
Columbia River study area could be problematic
because it would be difficult to transfer these
consumption rates to a different group that might
exhibit different fishing behavior. However, these
recommended rates can be used to model subsistence
scenarios at different locations.

Although these subsistence consumption rates
are recommended by EPA, commenters (including
NODA comments obtained for this rule), have
identified alternative consumption rates for specific
high consuming groups that are in some instances,
higher than these recommended values. For
example, a survey by the Great Lakes Indian Fish
and Wildlife Commission (GLIFWC) (as referenced
in comments to the CAMR NODA) indicates that
consumption rates by members of Ojibwe Great
Lakes tribes during fall spearing season may range
from 155.8-240.7 g/day and may range from 189.6—
292.8 g/day during the spring. EPA has reviewed
these comments and does not believe that it would be
appropriate to rely on them for purposes this
rulemaking. First, the data has not been peer
reviewed. Moreover, it is not clear from the
comments how many people consume fish at those
rates, to what extent those fish consumers are

162

women of childbearing years, and how to annualize
these seasonal sales.®!

For all the above reasons, and despite comments
indicating that some subgroups may have larger
short-term consumption rates, EPA believes that the
Columbia River-based consumption rates of between
60 g/day (mean) and 170 g/day (95th percentile) are
appropriate default values for subsistence fish
consumers.

51 As discussed below, the Ojibwe Great Lakes tribes do not
appear to be located in areas with high utility-attributable Hg
deposition.

163

Technical Support Document (TSD)
for the Transport Rule
Docket ID No. EPA-HQ-OAR-2009-0234

Coal-to-Gas Conversion (C2G)

U.S. Environmental Protection Agency
Office of Air and Radiation
March 4, 2011

Coal-to-Gas Conversions (C2G)

Section V in the preamble to the Toxics Rule
discusses coal-to-gas conversion (C2G) as a retrofit
technology option to reduce air pollutant emissions.
C2G is provided as a retrofit option to all coal boilers
larger than 25 MW in EPA’s IPM modeling of the
Toxics Rule. This retrofit option is comprehensively
modeled with explicit retrofit capital and O&M costs,
pipeline extension costs, and heat rate penalties. As
mentioned in the preamble, the C2G option was not
selected in IPM as an economic choice for coal boilers
to comply with the Toxics Rule. This TSD provides a
brief explanation of the main reasons why C2G was
not an economic choice.

The Toxics Rule requires all EGU coal boilers
larger than 25 MW to achieve significant reductions
in mercury, HCl, and total PM emissions. In addition
to the C2G conversion option, there are other retrofit
options available in IPM to reduce these emissions.
They include activated carbon injection (ACI), flue
gas desulfurization (FGD), and dry alkali sorbent
injection (DSI, any of which can individually or in
combination make a significant reduction in such
emissions.

164

Table 1 shows the calculated cost-of-electricity
(COE) based on characteristics of a representative
actual “model plant” in the Proposed Toxics Rule
policy modeling. The model plant represents a 303
MW existing coal unit. The performance and
incremental costs of the various retrofit options are
based on the parameters of actual retrofits offered to
such a unit in the IPM model.

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Note that while the combined capital cost and
O&M costs for a C2G retrofit could be less than that
of a combined retrofit with ACI and either DSI or
FGD, the greatly increased fuel costs of C2G cause
its total incremental COE ($44.5/MWh) to be
between 4 to 22 times the COE impact of the other
retrofit options available. The C2G option for this
case is therefore uneconomic under the relative fuel
cost projections in IPM modeling of the Toxics Rule.

The COE comparison allows consideration of the
relative cost-effectiveness of using C2G to obtain
beyond-the-floor reductions in the emission rates of
toxic air pollutants. For example, DSI is assumed to
achieve 90% reduction of HCl in the Toxics Rule
modeling, whereas switching the boiler to gas-fired
generation would effectively reduce 100% of previous
HCl emissions. Therefore, for each 100 tons of
uncontrolled HCl emissions, DSI would capture 90
while C2G would increase that capture further by 10
tons, which is about an 11% increase in capture —
however, the COE impact increases by 724%. For a
similar comparison on mercury, ACI is assumed to
capture 90% while C2G would effectively capture
100%, and this 11% increase in capture would be

coupled with a 2,125% increase in that unit’s COE
impact.

For these reasons, EPA does not believe it is cost-
effective to require beyond-the-floor emission
reductions from coal-to-gas fuel switching in the
Toxics Rule.

167

Date: March 14, 2011

Subject: National Emission Standards for
Hazardous Air Pollutants (NESHAP) Beyond the
Maximum Achievable Control Technology (MACT)
Floor Analysis for Coal- and Oil-fired Electric Utility
Steam Generating EGUs

From: Shelly Johnson, Stephen Boone

To: Bill Maxwell OAQPS/SPPD/ESG (D243-01) U.S.
Environmental Protection Agency Research Triangle
Park, NC 27711

Introduction

The purpose of this memorandum is to present
the data and methodology used and the results of a
beyond-the-floor (BTF) option analysis for the
NESHAP source category “Coal- and Oil-fired
Electric Utility Steam Generating Units” (referred to
in this memorandum as “EGUs’”). For the MACT
floor analysis, the EPA defined five EGU
subcategories. This memorandum presents the
estimates of the incremental pollutant emission
reduction and cost that would be achieved by
implementing a BTF option to control mercury (Hg)
emissions from existing sources in the MACT
Analysis Subcategory 2. Subcategory 2 is defined to
include new and existing EGUs designed to burn a
virgin nonagglomerating coal having a calorific value
(determined on moisture and mineral matter-free
basis) of less than 8,300 Btw/lb in an EGU with a
furnace height-to-depth ratio of 3.82 or greater. The
Hg emissions limit established as the MACT Floor

168

for Subcategory 2 is 11.0 pounds Hg per trillion
British thermal EGUs (lbs/TBtu).

The MACT floor analysis uses data collected in a
nationwide survey of EGU owners and operators
conducted by EPA in 2010 under the Information
Collection Request For National Emission Standards
For Hazardous Air Pollutants (NESHAP) for Coal-
And Ojil-Fired Electric Utility Steam Generating
Units (OMB Control No. 2060-0631). Individual EGU
operating and air emissions data reported by
respondents to the Information Collection Request
(ICR) were compiled into a Microsoft Access software
data base that serves as the data set used for this
BTF option analysis (referred to in this
memorandum as the “ICR data set”).

BTF Option Emission Limit Selection

The EPA selected a limit of 4.0 lbs Hg/TBtu for
the BTF option. This Hg limit is equivalent to the
level of emissions required under CAAA Section
112(d)(3) for mew or reconstructed Subcategory 2
units. Hg emissions data compiled from the ICR data
set indicates that this BTF option limit is equivalent
to the emission level achieved in practice (including
emissions variability) by the best controlled similar
source. The best controlled unit in Subcategory 2 is
equipped with activated carbon injection (ACID and a
fabric filter (FF). This cost analysis assumes that all
units within this subcategory will require capital
investments in fabric filters that are attributable to
the proposed MACT standard for PM (as a surrogate
for non- Hg metallic HAP). This analysis determines
the marginal capital costs attributable to the BTF

169

option requiring installation of ACI systems to
reduce Hg emissions to 4.0 lbs per trillion Btu.

BTF Option Analysis Methodology

All data used to estimate the costs that would be
incurred by the thirty EGUs within Subcategory 2
came from the data obtained from the ICR data set.
The data were analyzed in the following steps:

Step 1 — Estimated current actual annual Hg
emission rates for each existing EGU in
Subcategory 2. Subsequently, the annual
emissions reductions necessary to achieve the
MACT floor Hg emissions limit and the BTF
option Hg emissions limit were calculated for
each of these EGUs.

Step 2 — Identified the Hg emissions control
technologies already in place for each EGU using
the ICR data set.

Step 3 — Determined annualized capital and
operating costs for ACI controls from the ICR
data set.

Step 4 — Evaluated the ACI control components
that would need to be added to each EGU to meet
the MACT floor Hg emission limit. _

Step 5 — Evaluated the additional ACI control
components that would need to be added to each
EGU to meet the BTF option Hg emission limit.

Step 6 — Calculated the incremental difference
between the total Hg emissions reduction and

170

control cost for all existing EGUs in the
subcategory to achieve the BTF option Hg
emissions limit compared to the MACT floor Hg
emissions limit.

BTF Option Hg Emissions Estimates

In order to determine the emissions reductions
from the EGUs in Subcategory 2, each EGU’s current
annual Hg emissions were compared to the EGU’s
emissions at the MACT floor level and at the BTF
option level. For each EGU, an emission factor (lb
Hg/TBtu) was assigned based on EGU-specific stack
test data from the ICR or from stack test data from
the most similar EGU(s). The emission factor
assigned to each EGU was either the EGU’s provided
emission factor or an estimate of the EGU’s emission
factor based on the fuel fired, the boiler type and the
boiler’s control scheme. This emission factor was
used to calculate the EGU’s actual annual pounds of
Hg emissions. The calculation also included the
EGU’s heat input capacity (MMBtwhr) and the
EGU’s average capacity factor for the last 3 years.

Once each EGU’s current annual Hg emissions
were calculated, the annual Hg emission levels at the
MACT floor and BTF option were calculated for each
EGU based on the same EGU specific data.
Subsequently, the annual Hg reductions between
current rates and MACT floor were calculated and
those between the MACT floor and the BTF option
were calculated.

For this analysis it is assumed that an ACI
control system consists of the use of the activated
carbon injectors and delivery system in conjunction

171

with a fabric filter (FF). The analysis assumed that if
the EGU has other particulate matter (PM) controls
in place (i.e. a coldside electrostatic precipitator) a
new FF would need to be installed at the facility to
comply with the non-Hg metallic HAP standard for
PM. Therefore, each EGU was evaluated to
determine if the EGU had ACI or FF controls. The
Hg emissions control scenarios of importance for this
analysis were as follows:

1. EGU with ACI and FF (ACI + FF)
2. EGU with ACI (ACI

3. EGU with FF (FF)

4. EGU with neither control (none)

Each EGU within Subcategory 2 was classified
into one of the four Hg emissions control scenarios.
The necessary installation of additional controls for
an EGU was dependent on the EGU’s current Hg
emissions and the current controls. For EGUs
already equipped with ACI + FF, no additional
capital costs for controls were included in the cost
estimate, and the cost of any additional Hg removal
necessary to meet the Hg MACT floor or the BTF
option was calculated based on additional ACI
operating costs. For the EGUs currently with only
ACI, FF installation and operating costs were
attributed to the MACT floor for non-Hg metallic
HAP and the BTF option costs were also calculated
based on additional ACI operating costs. For EGUs
currently equipped only with FF, ACI capital and
operating costs were included in the cost estimate for
each MACT emissions level. Similarly, the cost BTF

172

option cost estimate for EGUs currently with neither
control included ACI capital and operating costs with
the cost of the FF attributed to the non-Hg metallic
HAP MACT standard.

BTF Option Control Cost Estimates

The ACI control cost values were calculated from
cost information (provided by facilities currently
operating ACI systems) in the EGU ICR data set. In
order to calculate the cost of the BTF option, an
operating cost was determined based on the amount
of Hg removed, and a capital cost based on EGU size
was determined. Overall, the ICR data set contains
122 EGUs for which any cost data on ACI controls
were reported. These EGUs were filtered to include a
total of 16 EGUs that provided capital and operating
costs and sufficient Hg emissions data to determine
the Hg removal attributable to the project. Of these

16 EGUs, only one EGU was within the Subcategory
2.

For this analysis, all 16 EGUs were used to
determine capital costs. It was assumed that the
capital cost for each control system was independent
of the amount of Hg removed. Each of these capital
costs was determined on a heat-input-capacity basis
to take into account the equipment for larger EGUs
and controls being more costly. Each EGU’s control
system capital cost was converted from the reported
base year dollars to July 2010 dollars using the
applicable Chemical Engineering Plant Cost Index
(CEPCD) factors. Then, each cost was annualized by
applying the capital recovery factor (CRF). The
assumed interest rate was 7% and the assumed

173

period was 20 years. The CRF value used for the
analysis is presented in

Table 1. The remaining capital cost value applied
was annualized dollars per heat-inputcapacity in
million British thermal units per hour ($/MMBtu/hr).
The values for each EGU’s cost were averaged for the
control scenario. Since no EGU provided capital cost
data for a FF only, the capital cost for an ACI was
subtracted from the capital cost for an ACI and FF.

The operating cost was determined solely from
the lignite facility. Since the initial Hg content
differs greatly between lignite and subbituminous
fuels and the operating cost is based on Hg removed,
it was not assumed that the data from the two fuel
types could be integrated. The operating cost was
calculated on a basis of pounds of Hg removed. This
was calculated using the final emission factor
achieved and the percent reduction. The amount of
Hg removed was calculated taking into account the
EGU’s capacity factor and heat input. Then, the
operating cost, which was provided on an annual
basis, was converted to July 2010 dollar values using
the CEPCI factors. To calculate cost per pound of Hg
removed, the annual operating cost was divided by
the pounds of Hg removed ($/lb Hg removed)
reflecting the differences between the current Hg
emission rate and the MACT floor.

BTF Option Analysis

In order to determine the marginal costs and
impacts for the BTF option Hg emissions limit, a cost
was first calculated for the subcategory to achieve
the MACT floor level. Then, an incremental cost was

174

calculated for the subcategory to reduce emissions
from the MACT floor level to the BTF option limit. If
any EGU did not meet the MACT floor, the capital
cost for the installation of any control equipment the
EGU did not already have was associated with
reaching MACT floor. In addition, the operating costs
to get the EGU from the current emission rate to the
MACT floor was multiplied by the additional pounds
of Hg to be removed.

For the marginal cost to get to the BTF limit, the
EGU was assumed to have all controls necessary for
the EGU to achieve the MACT. For example, if an
EGU was above the MACT floor and had to install
ACI to meet the Hg MACT floor, then for the BTF Hg
option, only ACI operating costs (to reduce emissions
from the Hg MACT floor to the BTF limit) would be
considered. However, if an EGU with just a FF met
the MACT floor, but not the BTF option limit, the
methodology assumed that the EGU would have to
incur costs to install ACI and the operating costs to
reach the BTF option limit. The current controls and
additional controls for MACT and BTF are displayed
on Table 5.

Using this methodology, the unit-specific
analyses were completed to determine additional
controls and operating measures, Hg emission
reductions, and the associated capital and operating
costs. The estimated cost for each EGU was
determined, and then the Hg reductions and total
costs were summed for MACT and the increment to
the BTF limit.

175

The capital costs are summarized in

Table 2. The annualized capital cost for an ACI
system was $108 per MMBtuv/hr of heat input
capacity. The annualized operating cost was
determined to be $14,867 per pound of Hg removed,
as shown in Table 3.

The specific EGU costs for MACT floor and the
BTF option are shown in Table 5. Of the 30 EGUs,
all units met the MACT floor emission level. Of the
30 EGUs, two EGUs would meet the BTF option
lhmit without any additional controls. Taking into
account the controls to be added to the EGUs for
MACT compliance, 18 EGUs are expected to add FF
to comply with the non-Hg metallic HAP standard,
20 EGUs are expected to add ACI, and 3 EGUs are
expected to incur increased operating costs
associated with the additional! activated carbon
usage required to achieve the BTF limit.

Energy impacts on Subcategory 2 due to
increased auxiliary loads on induced draft (ID) fans
and other electrical loads associated with installation
of the fabric filter are attributed to the non-Hg
metallic HAP standard. The total energy costs for
Subcategory 2 were estimated based solely on the
relatively low auxiliary loads from activated carbon
injection systems and the associated cost data for
nominally rated 500 MW units using EPA’s Coal
Utility Environmental Cost (CUECost) Model for
sorbent injection. The total annual costs of energy
usage for operation of ACI were estimated as $2,300

per year.

176

Non-air quality environmental impacts were
estimated based on the requirement to dispose of
spent activated carbon in landfills. The analysis
assumed that this material could be disposed of with
the combustion by products as non-hazardous waste.
The cost per ton of carbon disposed was estimated at
$2/ton based on information in the CueCost Model,
and the carbon usage per mass of Hg removed was
estimated based on information published by the
Center for Air Toxic Metals at the University of
North Dakota Energy & Environmental Research
Center (EERC). The total costs of the non-air
environmental impacts for Subcategory 2 were
estimated as $12,000. Non-air quality health impacts
were evaluated, but no incremental health impacts
were attributable to installation of fabric filters and
ACI, because these technologies do not expose
electric utility employees or the public to any
additional health risks above the risks attributable
to current utility operations involving compressed air
systems, confined spaces, and exposure to fly ash.

The overall additional costs for the BTF option
for Subcategory 2 are shown in Table 6. For the
subcategory to reach MACT, no additional costs are
incurred as the data displays that each unit
currently meets the MACT floor. For the existing
EGUs in Subcategory 2 to implement the BTF
option, the additional annual cost was estimated at
an additional $70,186,000 and an additional 4,040
Ib/year of Hg is removed or $17,375 per lb of Hg
removed.

177

Table 1: Capital Recovery Factor

0.07

interest rate

20

ear period

CRF= 0.

0944

Equation 1: Capital Recovery Factor

CRF =i * (1 +i)» =0.0944

(1 +i)? 1

Table 2: Annualized Capital Cost

$/(MMBtu/hr) per
ACI 108
ACI + FF 3,771
FF 3,663

Table 3: Annualized Operating Cost

$1b Hg removed per r year |

Operating

14, 867]

Table 4: Itemized Operating Costs

Energy costs

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NMA - The American Resource

THE NATIONAL MINING ASSOCIATION’S
COMMENTS ON EPA’S PROPOSED NATIONAL
EMISSIONS STANDARDS FOR HAZARDOUS
AIR POLLUTANTS FROM COAL- AND OIL-
FIRED ELECTRIC UTILITY STEAM
GENERATING UNITS AND STANDARDS OF
PERFORMANCE FOR FOSSIL-FUEL-FIRED
ELECTRIC UTILITY, INDUSTRIAL-
COMMERCIAL-INSTITUTIONAL, AND SMALL
INDUSTRIAL-COMMERCIAL-INSTITUTIONAL
STEAM GENERATING UNITS

76 Federal Register 24,976 (May 3, 2011)

Docket ID Numbers: EPA-HQ-OAR-2009-0234
(NESHAP action)
and
EPA-HQ-OAR-2011-0044 (NSPS)

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3. Many analysts have predicted higher amounts
of early coal retirements

EPA’s claim of “common-sense” rulemaking is, in
large part, intertwined with its DSI assumption. If
EPA’s unsupported assumption as to the number of
units that can install DSI as a compliance strategy is
wrong, the costs of complying with the acid gas
standard could potentially triple, as many more units
will have to install or upgrade costly scrubbing
technology. This increased cost will correspondingly
result in more retirements and higher electricity
prices as many units will not be able to absorb the
additional cost. This fact invites legitimate criticism
of the agency 10 GW retirement figure. For
example, and in addition to the below chart,5§ FBR
Capital Markets states that “...the practical
applicability of DSI remains a debatable point due to
the additional ash produced, reliability of the reagent
supply chain, lack of utility sector experience with
this technology, and the potential impact of dispatch.
More limited adoption of this technology could lift
the retirement number above 50 GW.” 59

68 It is important to note that each projection employed a
different set of assumptions to arrive at the retirement
projection — i.e. some studies analyzed the proposed rule in
isolation, while others like NERA analyzed the instant rule in
conjunction with other related CAA rules. The chart highlights
EPA's glaring need to provide a cumulative cost estimate of all
of these rules.

58 FBR Capital Markets, Mar. 25, 2011; see also Dan Eggers,
“Implications of EPA Policy,” Credit Suisse, April 26, 2011
(estimating that retirements could be as high as 100
GW)(emphasis added).

183

Table 3
Summary of Coal-Fired Retirement
Projections™
Analyst Date of /Retirement
Publication | Projection
(GW)
U.S. Energy Information jApril 2011 45-73
Administration (EIA)
INNERA Economic May 2011 48
iConsulting
iFBR Capital Markets March 2011 35-45
McIlvaine Company March 2011 31-68
Edison Electric Institute ' anuary 2011 50
EED
(The Brattle Group November 50-66
2010
North American Electric ber 2010 33-77
Reliability Corporation
(NERC)
ICF International (October 2010 75
Credit Suisse September 69
2010

6© Each individual analysis is filed contemporaneously with
these comments (Attachment 7).

184

Even using EPA’s own data it is entirely
plausible that 50 GW will be forced to reitre based on
this suite of rules. The agency's 9.9 GW retirement
figure is based on forecasting the Utility MACT rule
in isolation, rather than examining the agency’s own
base case of 25 GW gross retirements. EPA's base
case estimates 299 GW of coal generation in 2015,
which is an 18 GW decline in coal capacity from 2010
based on the implementation of CSAPR and Utility
MACT. The base case also assumes, albeit
optimistically given the inability to construct new
coal plants with the stringent new source standards,
an additional 7 GW in coal additions during this
time.

However, this entire projection is built upon full
market penetration of DSI or 56 GW. Even
assuming optimistically that the development of DSI
is even half the forecasted rate, which is reasonable
given that half of the units targeted for DSI
deployment operate without scrubbers and burn
medium or high sulfur coal, the retirement number
could easily jump to 50 GW. Nowhere in the record
does EPA engage in this sort of analytical rigor.
Rather, the agency simply assumes the best without
any factual support resulting in a flawed rule with
an inaccurate assessment of the true impacts.

4. EPA’s mistake beliefs about the current fleet
retirements
The issue of flawed retirement projections is not

confined to the DSI assumption. Another aspect of
this issue stems from Administrator Jackson's faulty

185

statements regarding the state of the current fleet.
In the proposed rule, EPA

**z*

186

Connecticut Department of
ENERGY &

ENVIRONMENTAL PROTECTION
Daniel C. Esty, Commissioner

July 12, 2011
Assistant Administrator Gina A. McCarthy
USEPA Headquarters
Ariel Rios Building

1200 Pennsylvania Avenue, N. W.

Mail Code: 6101A

Washington, DC 20460

Docket ID No. EPA-HQ-OAR-2009-0234

Re: Connecticut Department of Energy and
Environmental Protection Comments on the
Proposed Utility Air Toxics Rule

Dear Assistant Administrator McCarthy:

Thank you for taking time out of your busy schedule
to speak with me and the other OTC commissioners
at our annual meeting in June. I am very pleased by
the ambitious air pollution control agenda that you
are prepared to advance in the coming months,
which is why I am writing to you personally to
express my support for EPA’s proposed National
Emission Standards for Hazardous Air Pollutants
from Coal- and Oil-Fired Electric Utility Steam
Generating Units (76 FR 24976; May 3, 2011). The
proposal takes important steps to protect all
Americans from the toxic air emissions associated
with electricity generation, giving us cleaner air and
facilitating a shift to more efficient, modem methods

187

of electricity generation, including modem coal-fired
generation.

As you are well aware, Connecticut’s geography
makes us particularly vulnerable to emissions from
the large electric generating units in the West and
South. As you know, we have been quite unhappy
with the ongoing pollution impacts of these plants on
our citizens "We are therefore pleased to see strong
national rules that will put those plants, many of
which are older, coal-fired generating units, on an
equal environmental regulatory footing with
Connecticut's electric generators, many of which are
clean, natural gas-fired plants and subject to some of
the strictest emissions standards in the country. We
are also pleased with the release of the Cross State
Air Pollution Rule this week and look forward to
your proposal of Transport Rule 2 later this year in
hopes that these rules will take further decisive
action to level the regulatory playing field.

I am also aware of the delicate task before you as you
scrutinize the cumulative impact of these regulations
on the electric generation sector. To assist your
efforts, my technical staff has made
recommendations to make the proposal and its
implementation even better, and these suggestions
are included as an attachment hereto. As the
Connecticut Department of Environmental
Protection recently became the Connecticut
Department of Energy and _ Environmental
Protection, our combined expertise is available to
assist you to meet our shared air quality goals with
an eye to our nation’s economic revitalization. By

188

working together, I hope that we will all be able to
breathe easier.

Yours truly,
Daniel C. Esty
Daniel C. Esty
) Commissioner
DCE:mag
ec: Erich Eschmann, EPA Headquarters
Docket Administrator
Printed on Recycled Paper
79 Elm Street, Hartford, CT 06106-5127
www.ct.gov/deep

Affirmative Action/Equal Opportunity Employer

189

[Page 1)
ATTACHMENT

Technical Comments of the
Connecticut Department of Energy and
Environmental Protection on the
Proposed National Emission Standards for
Hazardous Air Pollutants from Coal- and Oil-
Fired Electric Utility Steam Generating Units

ATTACHMENT AI: Documentation for EPA Base
Case v4.10_PTox, Chapter 3, Power System
Operation Assumptions; TR2012 Base-case v4.10
1PM run; NEEDS Base Case v4.10_PTox, Mar2011

ATTACHMENT A2: CTDEEP Revisions to NEEDS
v4.10_PTox

ATTACHMENT B: 2008-2010 quarterly stack test
results for mercury at Connecticut’s coal-fired EGUs

ATTACHMENT OC: Peaking Unit Trading
Agreements and Orders

The Connecticut Department of Energy and
Environmental Protection (CTDEEP, formerly
known as Connecticut Department of Environmental
Protection or CTDEP) appreciates the opportunity to
comment on the “National Emission Standards for
Hazardous Air Pollutants From Coal- and Oil-Fired.
Electric Utility Steam Generating Units” (76 FR
24976, May 3, 2011), hereafter referred to as the
“Utility NESHAP.” CTDEEP is pleased that the U.S.
Environmental Protection Agency (EPA) has acted to
reduce mercury and other hazardous air pollutants

190

(HAPs) from electric generating units (EGUs), but
CTDEEP believes the proposal could be improved in
several respects. To that end, CTDEEP has joined
comments submitted in this docket by the National
Association of Clean Air Agencies (NACAA) and
Northeast States for Coordinated Air Use
Management (NESCAUM). In addition to the
comments presented by those two associations,
CTDEEP offers six comments on the proposal herein.
One of the six areas of comment is Connecticut-
specific comments on EPA’s base case power system
operating assumptions and the National Electric
Energy Data System (NEEDS) database used in the
EPA modeling for the NESHAP. Those details are
included in Attachments Al and A2.

I, MERCURY LIMITS

Since 2008, Connecticut General Statute §22a-199
has limited the emissions rate of mercury from coal-
fired EGUs to 0.6 Ibs/TBtu or an emissions rate
equal to a ninety percent reduction of mercury from
measured inlet concentrations. Several other
Northeast states have adopted similar requirements.
The Utility NESHAP’s mercury limits for coal-fired
EGUs range from 1.0 Ib/TBtu (1.2 Ib/TBtu as
referenced in EPA’s letter to Utility Air Regulatory
Group on 5/18/11) to 4.0 lb/TBtu, levels significantly
less stringent limits than those in the Northeast.
While CTDEEP understands that the nation’s coal-
fired EGUs include units much larger and using a
range of technologies much broader than those in
Connecticut, CTDEEP recommends that EPA
establish an achievable mercury NESIAP
standard demonstrated in practice. The

191

compliance history of CUo..necticut’s EGUs
shows that its coal-fired units comply at levels

[Page 2]

below Connecticut’s 0.6 Ibs/TBtu limitation.
Quarterly stack test data from 2009-2010 (and the
first quarter of 2011 for one of the facilities) are
provided in Attachment B.

II BETTER DEFINE THE LIMITED-USE
SUBCATEGORY
At FR 25027, EPA indicates a willingness to include:

“..a limited use-subcategory to account for
liquid oil-fired units that only operate a
limited amount of time per year on oil and
are inoperative the remainder of the year.
Such units could have specific emission
limitations, reduced monitoring requirements
(limited operation may preclude the ability to
conduct stack testing), or be held to the same
emission limitations (which could be met
through fuel sampling) as other liquid
oilfired units.”

However, EPA does not give any details, such as
specific number of hours, to describe what “limited
amount of time” means, and the phrase is open to
interpretation. EPA should define what
constitutes a “limited amount of time” and
allow for public comment when it has
established a framework. The ability of sources
to operate under a limited use-subcategory
could significantly impact compliance costs
and requirements associated with the Utility
NESHAP. Also, the breadth of a limited use

192

subcategory could influence other state
programs to address emissions from units that
operate for limited circumstances.

At page 25107 of the Utility NESHAP (40 CFR
section 63.10006(s)), the opportunity to demonstrate
compliance with the mercury, individual or total non-
mercury HAP metals, hydrochloric acid (HCl), or
hydrofluoric acid (HF) emissions limit based on fuel
analysis seems broader than the liquid oil-fired
limited use subcategory. If it is not EPA’s
intention to allow units other than liquid oil-
fired limited use units to utilize a fuel analysis
compliance mechanism, EPA should clarify the
language.

Ill. TESTING REQUIREMENTS

For states with several EGUs subject to the Utility
NESHAP, workload in observing emission tests
and/or reviewing emission test protocols could
greatly mcrease. For example, CTDEEP estimates
that implementing the testing requirements of the
Utility NESHAP could increase the workload of
CTDEEP’s emission testing staff by as much as 50%.
The emissions testing staff ensures that testing is
done in accordance with EPA methods. Given state
resource constraints, additional staff would need to
be taken from other duties to perform testing
functions. Testing without adequate quality
monitoring does not necessarily support compliance
determinations. CTDEEP recommends that EPA
consider revising the applicable monthly and
bimonthly testing requirements in Section
63.10006 to quarterly testing requirements in
order to provide a reasonable window of time

193

for sources and states to maintain quality
testing and review procedures.

It is not clear that the language at FR25107 (section
63.10006(p)) applies to low-emitting EGUs, and it is
difficult to understand how the timing set out in
section 63.10006(0) follows in section 63.10006(p).
For example, it is unclear what the term “continue to
meet” in section 63.10006(p)

194

DHEC
Promote Protect Prosper
C. Earl Hunter, Commissioner
Promoting and protecting the health of the public and
the environment

BOARD: BOARD:
Allen Amsler Kenyon Wells
Chairman

L. Clarence Batts, Jr.
Mark S. Lutz
Vice Chairman Ann B. Kirol, DDS
Steven G. Kisner John O. Hutto, Sr., MD
Secretary

SOUTH CAROLINA DEPARTMENT OF HEALTH
AND ENVIRONMENTAL CONTROL
2600 Bull Street » Columbia, SC 29201°
Phone:(803)898-3432 * www.scdhec.gov

July 20, 2011

United States Environmental Protection Agency
EPA Docket Center, EPA West (Air Docket)

Air and Radiation Docket, Mail Code 2822T
1200 Pennsylvania Avenue, N.W.

Washington, DC 20460

Attention: Docket ID No. EPA-HQ-OAR-2009-0234

Re: Federal RegisterNol. 76, No. 85/Tuesday,
May 3, 2011/Proposed Rules. National Emission
Standards for Hazardous Air Pollutants From
Coal and Oil-Fired Electric Utility Steam

195

Generating Units and Standards of
Performance for Fossil-Fuel-Fired Electric
Utility, Industrial-Commercial-Institutional,
and Small IndustrialCommercial- Institutional
Steam Generating Units

To Whom It May Concern:

Thank you for the opportunity to provide comments
on the proposed rule entitled National Emission
Standards for Hazardous’ Aijir _ Pollutants
[NESHAP]for Coal- and Oil-fired Electric Utility
Steam Generating Units and Standards of
Performance [NSPS/for Fossil-Fuel-Fired Electric
Utility, Industrial Commercial-Institutional, and
Small Industrial-Commerciallnstitutional Steam
Generating Units.! The South Carolina Department
of Health and Environmental Control (DHEC) is the
public health and environmental agency for the State
of South Carolina, and we are committed to
promoting and protecting the health of the public
and the environment for the State of South Carolina.

This letter provides comments only on the NESHAP
part of the proposed rule, commonly referred to as
the “Utility MACT.”2 DHEC generally supports
actions taken by the United States Environmental
Protection Agency (EPA) to address the hazardous
air pollutants that the Utility MACT would regulate,
but DHEC has technical concerns about the proposal.
Furthermore, DHEC is concerned with the

1 76 Fed. Reg. 24976 (May 3, 2011).

2 “MACT” refers to the maximum achievable control technology
for utilities that the proposed NESHAP would require.

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implementation of certain portions of the proposed
Utility MACT as written. The EPA has delegated
authority to implement NESHAPs to many states,
including South Carolina, and we request that the
EPA take into consideration the additional burden
the Utility MACT and other recently promulgated
rules (e.g. the Boiler MACT) pose to states’ already
strained resources. DHEC asks the EPA to develop a
rule that not only reduces air pollution but provides
for efficient implementation and enforcement by the
delegated authorities.

Mercury is one of the hazardous air pollutants that
the Utility MACT would regulate. The cumulative
contribution of past and present mercury emissions
from local, regional, and global sources affects South
Carolina. DHEC is taking action to address mercury
through the South Carolina Mercury Assessment
and Reduction Initiative.2 This initiative is a
cooperative effort to identify ways that the public,
interested groups, industry, and government can
address mercury in the environment. The initiative
relies in part on the EPA to meet its obligations
under the Clean Air Act (CAA) to promulgate lawful
standards to address mercury.

The following are comments that DHEC would like
for the EPA to consider before promulgation of the
final Utility MACT. We offer comments on emissions
averaging, the relationship between the Utility
MACT and other NESHAPs, performance testing,
definitions, and tables. Finally, we note possible

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typographical errors. If there are significant changes
to this proposed rule, we believe the EPA should
provide appropriate process and time to comment on
the changes.

ragin

The EPA proposes to require facilities choosing to
demonstrate compliance by the emission averaging
option to submit an “implementation plan” for review
and approval by the delegated authority. However,
the EPA did not provide a clear process for
implementing and enforcing this complex compliance
option. We strongly request that the EPA eliminate
the requirement for delegated authorities to approve
implementation plans and instead develop an
emission averaging certification mechanism within
the Notice of Compliance Status (NOCS). The NOCS
process is established, and states have experience
implementing it.

The EPA included an emission averaging compliance
option in the Boiler MACT. DHEC comments that
the EPA should be consistent in applying the
emission averaging compliance option for the Boiler
and Utility MACTs.

a) Emission Caps For Existing Affected
Sources Choosing To Demonstrate Compliance
By The Emission Averaging Option Cannot Be
Effectively Implemented Or Enforced. The
Emission Cap Should Be Included In The
Compliance Calculations.

We believe that the requirement to establish an
emission cap and submit an implementation plan to

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the permitting agencies for approval is problematic
as written. Because the emission cap is not used in
the initial compliance demonstration or in
demonstrating continuous compliance with the
emission averaging option, it 1s of little use.

If the intent of this option is for facilities to not
exceed the cap at any time, then the EPA should
include a demonstration methodology that shows
that a facility is not exceeding the cap in the
compliance equations in section 63.10009. If the cap
is included in the compliance equations, facilities
could certify compliance with the cap in the NOCS
and within each required semiannual report.
Additionally, if the initial and continuous compliance
measures include the emission cap, the
implementation plan will not be necessary and states
will not have to spend valuable time and resources to
approve these duplicative plans,

DHEC received several implementation plans from
facilities trying to comply with the vacated Boiler
MACT in 2007. We encountered many problems with
the approval process and received little help and
guidance from the EPA. The EPA proposed the same
approval process in the Utility MACT, disregarding
the known problems states faced in 2007 trying to
implement the emission averaging compliance option
in the vacated Boiler MACT.

b) Requirement For Delegated Agencies To
Approve Implementation Plans Is Burdensome
And Unnecessary. The EPA Should Provide
Specific Guidance And Examples On What
Constitutes An Acceptable Emission Cap.

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As stated above, the requirement to establish an
emission cap and submit an implementation plan to
the permitting agencies for approval is problematic
as written. DHEC noted this issue in our comments
for the 2010 proposed Boiler MACT. While the EPA
attempted to correct the enforceability problem
related to the emission cap in the final Boiler MACT
by requiring facilities to report the emission cap in
the NOCS (see 40 CFR 63.7545(e)(5)(i)), and certify
compliance with the cap in the compliance reports
(see 40 CFR 63.7550(c)(3)), there is no guidance or
clear process on what constitutes an acceptable and
enforceable emission cap that delegated agencies can
follow to approve the cap.

If the EPA decides that the submittal and approval
of implementation plans are necessary for the
emission averaging compliance option, DHEC
believes that the EPA should retain the authority to
approve the implementation plans.

c) The EPA Should Clarify Deadline To
Establish Emission Caps To Demonstrate
Compliance With The Emission Averaging
Option For The Emission Level Or Control
Technology.

In section 63.1 0009(c), the emission rate achieved
during the initial compliance test for the hazardous
air pollutant (“HAP”) associated with an existing
EGU in the averaging group must not exceed the
emission level that was being achieved on [THE
DATE 30 DAYS AFTER PUBLICATION OF THE
FINAL RULE IN THE FEDERAL REGISTER] or
the control technology employed during the initia]
compliance test must not be less effective for the

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HAP being averaged than the control technology on
[THE DATE 30 DAYS AFTER PUBLICATION OF
THE FINAL RULE IN THE FEDERAL REGISTER].
However, the EPA _ proposes. in _ section
63.10009(g)(2)(i) that information associated with
the applicable HAP emission level or the control
technology installed as of [DATE 60 DAYS AFTER
PUBLICATION OF THE FINAL RULE IN THE
FEDERAL REGISTER] be included in the required
emissions averaging plan. This appears to be a
contradiction in dates and the EPA should correct
this in the final rule.

d) There Are Errors In Performance Tests
Language.

In section 63.1 0009G)(2), the EPA proposes that, “If
affected units from nonaffected units vent to the
common stack, the units from nonaffected units must
be shut down or vented to a different stack during
the performance test."4 There appears to be a
grammatical error in this clause: It is unclear as to
how one can have “affected units from nonaffected
units” (emphasis added).

e) The EPA Should Clarify Requirement To
Submit An Implementation Plan For Emission
Averaging Compliance Option.

There is a contradiction in section 63.1 0009(g)(1).5
This section mandates the submittal of an
implementation plan by using the word “must.”

476 FR, at 25110.
5 Id.

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However, section 63.10009(g) seems to indicate that
submittal of the implementation plan is only
necessary “upon request."° This apparent
discrepancy should be corrected in the final rule to
avoid confusion.

f) The EPA Should Clarify Reference To
Representative Operating Conditions And
Maximum Norma! Operating Load.

Section 63.1 0009(e) requires performance tests to be
conducted at “maximum normal operating load.”’
However, section 63.10009(g)(2)(viil) requires
demonstration of compliance with each of the
applicable emission limit(s) to be achieved under
“representative operating conditions."* The EPA
needs to clarify this discrepancy and clearly define in
section 63.10042 what constitutes maximum normal
operating load oor _ representative operating
conditions.

g) The EPA Should Make Technical And
Editorial Corrections.

Section 63.10009(a) states “you may demonstrate
compliance by emission averaging among the
existing EGUs in the same subcategory, if your
averaged emissions for such EGUs are equal to or
less than the applicable emission limit”? (emphasis
added). However, section 63.10009(e)(1) states, “You

6 Id.

7 Td. at 25108.
8 Id. at 25110
8 Td. at 25108

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must use equation 1 ofthis section to demonstrate
that the PM, HF, SOz, HCl, nonHg HAP metals, or
Hg emissions from all existing units participating in
the emissions averaging option do not exceed the
emission limits in Table 2”!° (emphasis added). The
EPA needs to use the same wording in both sections
in order to avoid confusion.

h) The EPA Should Clarify Equation 1.

Section 63.10009(e)(1) requires a facility to use
Equation 1 to demonstrate compliance with PM, HF,
SO2, HCl, non-Hg HAP metals or Hg emissions, by
using the emission rate as determined during the
most recent performance test and the maximum
rated heat input capacity. Due to the variability in
reported heat input ratings for utility boilers, and
there not currently being a definition in place on
what maximum rated heat input capacity is, DHEC
asks that the EPA addresses this in the final rule
and establish a definition of what constitutes the
maximum rated heat input capacity of a utility
boiler.

r itioni F i /
Source Boiler MACT To Utility MACT And Vice
Versa |

The preamble discusses the following scenario:

[T]here will likely be some cogeneration units
that are determined to be covered under the

Boiler NESHAP. Such unit may make a
decision to increase/decrease the proportion

10 Td.

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of production output being supplied to the
electric utility grid, thus causing the unit to
meet the EGU cogeneration criteria (i.e.,
greater than one-third of its potential output
capacity and greater than 25 MWe). A unit
subject to one of the Boiler NESHAP that
increases its electricity output and meets the
definition of an EGU would be subject to the
proposed EGU NESHAP for the 6-month
period after the unit meets the EGU
definition. Assuming the unit did not meet
the definition of an EGU following that
initial occurrence, at the end of the 6- month
period it would revert back to being subject
to the Boiler NESHAP.!!

The EPA solicits comment on the extent to which
this situation might occur and whether the 6- month
period is appropriate. There are several cogeneration
units in South Carolina that could potentially follow
the above-mentioned scenario. The EPA did not
address the regulatory logistics on how this would be
implemented. We request that the EPA provide in
the final rule a clear process to demonstrate initial
and continuous compliance for cogeneration units
changing section 112 applicability. This process
needs to provide the specific period or deadline when
the cogeneration unit stops compliance with the
Boiler MACT and starts complying with the Utility
MACT and _ ~vice’ versa, include notification
requirements when changing rules, and specify
testing and NOCS deadlines.

11 Jd. at 25026.

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In addition, the EPA should address how the “once-
in-always-in” policy applies to sources subject to the
Boiler MACT that become subject to the Utility
MACT when the source meets the EGU cogeneration
criteria.

8) Transitioning F CAA Section 112 T
Section 129 And Vice Versa.

The EPA solicits comment on whether they should
include provisions similar to those included in the
final CISWI rule!? to address units that combust
different fuels at different times. Several utility
boilers in South Carolina have the potential to
combust materials that could be considered solid
waste under the proposed RCRA definition. These
are utility boilers that do not meet the exemption
under CAA section 129 (g)(1)(B) for qualifying small
power production facilities or qualifying cogeneration
facilities. DHEC recommends the EPA include
provisions similar to those included in the final
CISWI rule to address units that combust different
fuels at different times.

4) Performance Testing

a) The EPA Should Clearly Specify Testing
Conditions To Demonstrate Compliance With
Emission Limits.

12 Standards of Performance for New Stationary Sources and
Emission Guidelines for Existing Sources: Commercial and
Industrial Solid Waste Incineration Units, 76 Fed. Reg. 15704
(March 21, 2011).

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In section 63.10007, the EPA proposes that affected
sources conduct performance tests at the “maximum
normal operating load.”!3 However, this maximum
normal operating load is not defined in the proposed
rule. Facilities use different fuels depending on many
variables such as availability and cost. Fuels are also
combusted in different proportions throughout the
year. The EPA should provide a clear definition of
maximum normal operating load or representative
operating conditions in section 63.10042. The EPA
should also clearly define how a source that utilizes
more than one fuel should comply with this
requirement. Having this clearly defined is necessary
not only for determining compliance with the
emission standards, but also for adequately
approving site-specific test plans.

In addition, there appears to be an inconsistency
between the testing conditions specified in section
63.10007(c) and (f). While section 63.10007(c)
requires facilities to conduct performance tests at the
“maximum normal operating load,”'* section
63.10007(f) requires facilities to conduct performance
tests under such condition

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385016_0333%3A09. Public record. Not legal advice.
