Acid Rain Program; Nitrogen Oxides Emission Reduction Program

Federal RegisterJan 19, 1996

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SUMMARY: The proposed rule would implement the second phase of the

Nitrogen Oxides Reduction Provisions in Title IV of the Clean Air Act

(``the Act'') by establishing nitrogen oxides (NOX) emission

limitations for certain coal-fired utility units and revising NOX

emission limitations for others as specified in section 407(b)(2) of

the Act. The emission limitations will reduce the serious adverse

effects of NOX emissions on human health, visibility, ecosystems,

and materials.

DATES: Comments. Comments must be received on or before March 4, 1996.

Public Hearing. A public hearing will be held in Washington, DC on

February 8, 1996, beginning at 10:00 a.m. Persons interested in

presenting oral testimony must contact Peter Tsirigotis at EPA's Acid

Rain Division, telephone number (202) 233-9133, by February 2, 1996 to

verify arrangements.

ADDRESSES: Comments should be submitted (in duplicate, if possible) to:

Air Docket Section (A-131), Attention, Docket No. A-95-28, U.S.

Environmental Protection Agency, 401 M Street, SW, Washington, DC

20460.

Public Hearing. The public hearing will be held at the

Environmental Protection Agency, 401 M Street, Washington D.C., in the

Education Center Auditorium.

Docket. Docket No. A-95-28, containing supporting information used

in developing the proposed rule, is available for public inspection and

copying between 8:30 a.m. and 3:30 p.m., Monday through Friday, at

EPA's Air Docket Section, Waterside Mall, Room 1500, 1st Floor, 401 M

Street, SW, Washington, DC 20460. A reasonable fee may be charged for

copying.

FOR FURTHER INFORMATION CONTACT: Peter Tsirigotis, at (202) 233-9133,

Source Assessment Branch, Acid Rain Division (6204J), U.S.

Environmental Protection Agency, 401 M Street, Washington, DC 20460.

SUPPLEMENTARY INFORMATION: The information in this preamble is

organized as follows:

I. RULE BACKGROUND AND SUMMARY

A. Benefits of Reducing NOX Emissions

B. Cost-Effectiveness of this Regulatory Action

II. REVISION OF PHASE II, GROUP 1 BOILER NOX PERFORMANCE

STANDARDS

A. Statutory Provision

B. Methodology

C. Feasibility of Achieving Revised Phase I Performance

Standards

D. Adverse Effects of NOX and Benefits of Reduction

E. Revised Emission Limits for Group 1 Boilers

F. Compliance Date

G. Definition of Coal-Fired Utility Unit

III. CONTROL OF NOX EMISSIONS FROM GROUP 2 BOILERS

A. Description of Group 2 Boilers

B. NOX Control Technologies for Group 2 Boilers

C. Statutory Requirements

D. Methodology for Establishing Group 2 Emission Limitations

E. Characterization of Costs

F. Emission Limits for Group 2 Boilers

G. General Issues Raised

IV. REFERENCES

V. REGULATORY REQUIREMENTS

A. Executive Order 12291

B. Paperwork Reduction Act

C. Unfunded Mandates Act

D. Regulatory Flexibility Act

E. Miscellaneous

I. Rule Background and Summary

A. Benefits of Reducing NOX Emissions

The primary purpose of the Acid Rain NOX Emission Reduction

Program is to reduce the multiple adverse effects of the oxides of

nitrogen, a family of highly reactive gaseous compounds that contribute

to air and water pollution, by substantially reducing annual emissions

from coal-fired power plants. Since the passage of the 1970 Clean Air

Act, NOX has increased by about 7%; it is the only conventional

air pollutant to show an increase nationwide.

Electric utilities are a major contributor to NOX emissions

nationwide: in 1980, they accounted for 30 percent of the total

NOX emissions and, from 1980 to 1990, their contribution rose to

32 percent of total NOX emissions. Approximately 85 percent of

electric utility NOX comes from coal-fired plants.

The NOX emissions discharged into the atmosphere from the

burning of fossil fuels consist primarily of nitric oxide (NO). Much of

the NO, however, reacts quickly to form nitrogen dioxide (NO2)

and, over longer periods of time, is transformed into other pollutants,

including ozone and fine particles. These secondary pollutants are

harmful to public health and the environment.

NO2 and airborne nitrate also degrade visibility, and when

they return to the earth through rain or snow (``wet deposition'') or

as gases, fog, or particles (``dry deposition''), they contribute to

excessive nitrogen loadings to estuaries (``eutrophication''), such as

in the Chesapeake Bay, and acidification of lakes and streams.

NO2 has been documented to cause eye irritation, either by

itself or when oxidized photochemically into peroxyacetyl nitrate

(PAN). Ozone (O3), the most abundant of the photochemical

oxidants, is a highly reactive chemical compound which can have serious

adverse effects on human health, plants, animals, and materials. Fine

particles at current ambient levels contribute to morbidity and

mortality.

B. Cost-Effectiveness of this Regulatory Action

On April 13, 1995 EPA promulgated the Acid Rain NOX rule

setting emission limits for all Phase I and Phase II dry bottom wall-

fired and tangentially fired boilers (Group 1) in the U.S. that combust

coal as a primary fuel. The regulation is expected, by the year 2000,

to nationally reduce NOX emissions by an estimated 1.54 million

tons per year. The total annual cost of this regulation to the electric

utility industry is estimated at 321 million dollars, resulting in an

overall cost-effectiveness of 208 dollars per ton of NOX removed.

The nationwide cost impact on electricity consumers is an average

increase in electricity rates of approximately 0.21 percent (EPA's

Regulatory Impact Analysis, docket item II-F-2 ).

The proposal would set lower Group 1 emission limits and establish

emission limits for several other types of coal-fired boilers (i.e.,

cyclones, cell burners, wet bottoms, vertically fired, and fluidized

bed combustors) for Phase II. The proposal would, by the year 2000,

achieve an additional reduction of 820,000 tons of NOX annually.

The annual cost for these additional reductions would be approximately

143 million dollars, at an average cost-effectiveness of 172 dollars

per ton of NOX removed. The nationwide impact on electricity rates

of this proposal is an average increase of approximately 0.07 percent,

significantly lower than the impacts resulting from the April 13, 1995

rule (see EPA's Regulatory Impact Analysis, docket item II-F-2).

This rule, when promulgated, must meet statutory criteria which

relate to cost and performance of existing installations of low

NOX burner technology (LNBT) and to estimates of cost and

performance of future

[[Page 1443]]

installations of a variety of NOX control technologies. At this

time there remain significant uncertainties regarding this information

and the best approaches for analyzing it. The information collected to

date is incomplete. Resolving these issues is one of the purposes of

soliciting public comments on this proposed rule. Information received

in the course of this rulemaking may show that no change in the

standard for tangentially fired and dry bottom wall-fired boilers may

be appropriate and that no standard for cyclones may be justifiable

under the statutory criteria.

II. Revision of Phase II, Group 1 Boiler NOX Performance

Standards

A. Statutory Provision

Section 407(b)(2) provides that:

Not later than January 1, 1997, the Administrator may revise the

applicable emission limitations for tangentially fired and dry

bottom, wall-fired boilers (other than cell burners) to be more

stringent if the Administrator determines that more effective low

NOX burner technology is available: Provided, That, no unit

that is an affected unit pursuant to section 404 and that is subject

to the requirements of [section 407] (b)(1), shall be subject to the

revised emission limitations, if any. 42 U.S.C. 76516(b)(2).

Under this provision, the Administrator may revise the applicable

NOX emission limitations for Group 1 boilers to be more stringent

if available data on the effectiveness of low NOX burner

technology shows that more stringent limitations can be achieved using

such technology. Any revised emission limitations will apply only to

Group 1 boilers that first become subject to NOX emission

limitations on or after January 1, 2000. Units with Group 1 boilers

that are subject to both SO2 and NOX emission limitations in

Phase I of the Acid Rain Program are entirely exempted from any revised

emission limitations. ``Early-election units,'' i.e., units with Group

1 boilers that are not subject to SO2 emission limitations until

Phase II but that have voluntarily become subject to the NOX

emission limitations by January 1, 1997 and demonstrate compliance with

these limitations throughout the rest of Phase I and during the period

2000-2007 are grandfathered from any revised limits until January 1,

2008, at which time any revisions will apply. 40 CFR 76.8.

Section II.B of the preamble summarizes the methodology the Agency

has used to evaluate the effectiveness of low NOX burner

technology applied to Group 1 boilers. Preamble Section II.C provides

estimates of the emission limitations (in lb/mmBtu) that a substantial

majority of units subject to any revised emission limitations can be

expected to achieve on an annual average basis. (The revised emission

limitations will hereafter be referred to as ``the Phase II, Group 1''

or ``revised Group 1'' emission limitations.) As with units subject to

the NOX emission limitations in Phase I, the designated

representative of a unit that is subject to the Phase II, Group 1

emission limitations and cannot meet the applicable emission limitation

using low NOX burner technology may seek to participate in a

NOX averaging plan with other units with the same owner or

operator or may petition for a less stringent alternative emission

limitation. The Technical Support Document, filed in Air Docket A-95-28

as item number II-A-9, contains a comprehensive description of the

methodology and results of the Agency's evaluation of the effectiveness

of Group 1 low NOX burner technology.

Preamble Section II.D addresses the benefits of reducing NOX

emissions. Finally, Section II.E concludes, based on the performance of

low NOX burners (LNBs) on Group 1 boilers and the benefits and

relative cost of reducing NOX by revising the Group 1 emission

limitations, that revised emission limitations should be adopted.

Section II.F addresses the compliance date for meeting the revised

limitations, an issue raised by the regulated utility industry.

B. Methodology

1. EPA's LNB Application Database

The Agency has developed a computerized database containing

detailed information on the characteristics and emission rates of coal-

fired units with Group 1 boilers on which low NOX burners (LNBs)

have been installed without any other NOX controls. The Department

of Energy (DOE) and Utility Air Regulatory Group (UARG), a major

industry association representing utility owners and operators, have

assisted EPA in identifying known applications of LNBs on Group 1

boilers.

EPA considered the option of including units on which LNBs have

been installed in combination with separated overfire air or other

NOX controls. EPA rejected this approach primarily because, in

many instances, the control technology vendor designed the combined

system, not the LNB component alone, to achieve the emission

performance standard. EPA also decided to exclude units on which LNBs

were installed before November 15, 1990, the date of enactment of the

Clean Air Act Amendments of 1990. Presumably, Congress was aware of

such LNB installations when it set the emission limitations in section

407 (b)(1); but the task here is to determine whether those limitations

should be revised because of the availability of more effective LNB, as

reflected in the performance of subsequent LNB installations.

The second criterion EPA used in selecting units for evaluating the

effectiveness of Group 1 LNB technology was the availability of post-

retrofit hourly emission rate data, measured by continuous emission

monitoring systems (CEMS), certified pursuant to 40 CFR part 75 (Acid

Rain Continuous Emission Monitoring Rule.) The only source of such

emission rate data has been the Acid Rain Emission Tracking System

(ETS), a computerized information system containing the quarterly

emissions reports submitted electronically by utilities under the Acid

Rain Program. For Phase I units, ETS provided hourly CEMS data on

NOX emission rates for four quarters of 1994 and the first two

quarters of 1995. In most instances, for Phase II units, ETS provided

CEMS data for the first two quarters of 1995, only. EPA solicits

comment on the appropriateness of using performance data collected by

means other than CEMS operated pursuant to 40 CFR part 75.

Using these selection criteria, EPA has compiled a database of

coal-fired units with Group 1 boilers, with LNB installations after

November 15, 1990, and for which post-retrofit hourly CEMS emission

rate data are available. This database presently consists of 24 dry

bottom wall-fired boilers (22 Phase I units, 2 Phase II units) and 9

tangentially fired boilers (6 Phase I units, 3 Phase II units). This

data set, called the ``EPA LNB Application Database,'' forms the

technical basis for EPA's evaluation of the effectiveness (percent

NOX removal) of low NOX burner technology for Group 1

boilers. EPA plans to continue this analysis as LNBs are installed on

more Phase II units and as additional quarters of hourly CEMS data from

ETS become available. Additional quarters of ETS CEMS data would be

expected to increase the size of this data set considerably since they

would include post-retrofit emission rate data for LNB installations

performed during summer and fall, 1995.

The EPA LNB Application Database contains the following information

for each boiler: nameplate capacity; firing type; pre-retrofit NOX

emission rate; source of pre-retrofit emission rate data; date of

boiler shutdown for LNB installation; date boiler resumed normal

operations after LNB installation, shakedown, and optimization; hourly

[[Page 1444]]

CEMS data from ETS for post-retrofit NOX emission rates; and

hourly data from ETS for boiler operating time and load. EPA contacted

utilities to verify the date of boiler shutdown for LNB installation

and the date the boiler resumed normal operations after post-retrofit

optimization whenever these dates could not be readily ascertained from

the hourly CEMS data and other information submitted by utilities to

EPA. The Agency solicits comment on what other data would be necessary

when assessing whether LNBs are operated in a low-NOX mode during

a certain time period (e.g., percent combustion air introduced through

close-coupled overfire air ports in tangentially fired boiler LNB

retrofits).

2. Determination of Achievable Annual Emission Limitations

Because the Acid Rain Phase I NOX Emission Reduction Program

goes into effect on January 1, 1996, units in the EPA LNB Application

Database have not been required to meet the Phase I NOX emission

rate standards in either 1994 or 1995. For every LNB retrofit there is

a period of time, immediately following the retrofit, during which

operators learn to operate the new equipment safely and in accordance

with the manufacturer's specifications. The operators then learn to

optimize NOX emissions reduction according to each utility's

compliance strategy. Performance of LNBs before optimization likely

overstates or understates the NOX reduction achievable by the

LNBs. Additionally, continued operation of LNBs to minimize NOX

emissions increases the operation and maintenance (O & M) costs of each

LNB retrofit after optimization. Therefore, even though LNB controls

are installed, the units may not be operated, throughout the entire

post-retrofit period, to sustain the NOX emission reductions the

controls were designed to achieve since this would increase O & M costs

when the NOX reductions are not yet required.

As discussed in EPA's Regulatory Impact Analysis (RIA), plants

incur both fixed and variable O & M costs when operating LNBs to lower

NOX emissions in order to meet the NOX emission limits. The

RIA assumes an annual maintenance cost increase of 1.5% of the

installed capital cost of the LNB equipment for both dry bottom wall-

fired and tangentially fired boilers and a variable cost of 0.04 mills/

kWh for dry bottom wall-fired boilers. While the incremental O & M

costs given in the RIA are estimated with respect to boiler O & M costs

prior to the technology retrofit. The sources of these incremental

costs (auxiliary fan power consumption, increased difficulty of

maintaining steam temperatures over the load range at reduced excess

air levels, higher maintenance demands), suggest that the absence of a

requirement to limit NOX emissions may result in operational

changes and higher NOX emissions. Thus, the average NOX

emission rate over the post-retrofit pre-compliance period may not be

representative of achievable LNB performance under actual compliance

conditions. On the other hand, it is reasonable to expect that

utilities operated their newly installed NOX controls for some

period of time following optimization of the equipment to simulate

compliance conditions, perhaps as a dry run or for training purposes.

It is intuitive that NOX reduction techniques which, by their

nature, create potentially damaging chemical environments inside

boilers and reduce overall plant efficiency when pushed to the highest

levels of NOX reduction performance, could be tested for several

weeks at levels which are not sustainable for longer periods of time.

According to certain utilities, there is anecdotal evidence that

initial performance levels for LNBs cannot be maintained indefinitely

on some boilers.\1\,\2\

\1\ It was reported that three tangentially fired boilers at

Duke Power Company's Allen plant could not maintain design

efficiency at full load, while meeting the existing standard of 0.45

lbNOX/mmBtu. Plant engineers are currently attemping to resolve

the problem with a slagging additive. E-mail communication from

Robert McMurray, Duke Power, to Doug Carter, USDOE, 11/7/95.

\2\ Southern Company reports that two of its Georgia Power

Company, McDonough plant tangentially fired units cannot meet their

NOX performance and plant performance guarantees at the same

time. Telecommunication between Rob Hardman, Southern Company

Services, and Doug Carter, USDOE, 11/3/95.

---------------------------------------------------------------------------

In publications and in past rulemakings, DOE and industry have

addressed what time period is sufficient for determining an achievable

emission limit for a NOX control technology over the long-term.

For example industry has stated ``that acceptable results [of long-term

performance] can be achieved with data sets of at least 51 days with

each day containing at least 18 valid hourly averages'' (see docket

items II-I-99, Advanced Tangentially-Fired Combustion Techniques for

the Reduction of Nitrogen Oxide (NOX) Emissions from Coal-Fired

Boilers; and II-I-100, Demonstration of Advanced Wall-Fired Combustion

Modifications for the Reduction of Nitrogen Oxide (NOX) Emissions

from Coal-Fired Boilers).

EPA has adopted the 52-day framework for evaluating the

effectiveness of Group 1 LNB technology. The first objective was to

identify the lowest average NOX emission rate each boiler has

sustained for at least 52 days, i.e., over a period of 1248 hours

during the post-retrofit period when the boiler was operating and valid

CEMS data was available. (Such a 1248 hour operating period is

generally longer than 52 calendar days since hours during which the

boiler did not operate, or operated for only part of the hour are

ignored, as are hours for which valid CEM data was not available.) This

period, referred to as the ``low NOX period,'' is assumed to

simulate boiler operations under compliance conditions. The next

objective was to determine whether the distribution of operating

conditions (e.g., load and excess air) during the low NOX period

is representative of actual boiler operating conditions throughout a

year. For each boiler in the database, EPA has developed histograms of

hourly average NOX emission rates as a function of load for the

low NOX period and boiler operating load patterns throughout 1994

(see docket item II-A-9). If the operating conditions in the low

NOX period are representative, EPA assumes the boiler can achieve

an annual average NOX emission rate equal to the average emission

rate recorded for the period. EPA used these histograms to estimate

``load weighted annual NOX emission rates'' based on weighted

averages of the average emission rate during the low NOX period

for each operating load level (or ``load bin'') times the number of

hours during 1994 the boiler operated within each load bin.

Some utility commenters have expressed the concern that by not

using all the recorded post-retrofit CEM data EPA is not accurately

assessing the long-term performance capabilities of LNBs. These

commenters believe that all CEM data collected after a fixed shakedown

period (30 to 90 days) for equipment optimization and operator

training, which is applied universally to all installations, should be

used for this assessment. To address this concern, EPA analyzed the CEM

data for 2 time periods: (1) a time period that would begin 30 days

after LNB installation and include all the post-retrofit data, referred

to as the ``post-retrofit period,'' and (2) a time period beginning

with the first day of the low NOX period and continuing beyond 52

days to include all available CEM data throughout the

[[Page 1445]]

entire post-retrofit period, referred to as the ``post-optimization

period.''

One of the primary advantages of using the low NOX period or

the post-optimization period, as defined above, for assessing

performance capabilities of LNBs applied to Group 1 boilers is that

they explicitly recognize the site-specific nature of the LNB equipment

optimization and operator training processes. For some units, both the

shakedown of the technology retrofit and operator training proceed

smoothly and can be completed within 30 or 60 calendar days. Whereas

for other units, particularly units combusting a range of coals and or

cycling through load pattern shifts, these processes can take much

longer. EPA finds that for dry bottom wall-fired boilers in the

database, the beginning of the low NOX period generally occurs

between 2 and 5 months after completion of the LNB retrofit. Not as

much variation is seen among the tangentially fired boilers, although

only 3 such boilers in the database have more than one quarter of post-

retrofit CEM data available.

Utility commenters have also expressed the concern that NOX

emission rate data taken before the Phase I compliance period for Acid

Rain SO2 emission limitations, which began January 1, 1995, may

not represent ``normal operating conditions.'' Specifically, in some

instances, 1994 Phase I data may not represent the current range of

coal quality characteristics being combusted by affected boilers. LNB

installations and vendor guarantees are typically tied to operating

within a specific range of coals. Moreover, EPA has learned of at least

two Phase I boilers which experienced significant increases in NOX

emissions when switching to coal for SO2 compliance purposes.

Other units at the Joppa steam plant, for example, experienced

significantly lower NOX emissions, after switching from eastern

bituminous to Powder River Basin coal. These units were dropped from

the database for the purposes of assessing LNB performance because the

measured percent reduction in NOX emissions reflects the combined

effects of the control technology retrofit and the switch to a more

reactive subbituminous coal.

To address these concerns, for each boiler in the database where

the 52-day low NOX period began in 1994, EPA has identified a 52-

day low NOX period for 1995 and compared the average NOX

emission rates for the two periods (see docket item II-A-9). Where

these analyses show a noticeable change occurred in NOX emissions

after the beginning of the Phase I SO2 compliance period, EPA

intends to investigate whether switching to low sulfur coal for

SO2 control or whether other operational parameters might explain

the difference in LNB performance. Further, EPA solicits comments from

the utilities documenting the specific circumstances where the

characteristics of coal quality and operating parameters have impacted

NOX emissions.

Also in the Group 1 technical support document (docket item II-A-

9), EPA has developed and compared average NOX emissions rates for

the following: low NOX period, low NOX period in 1995, post-

optimization period, overall post-retrofit period, and the load-

weighted annual average NOX emission rate. The document contains

statistical tests of significance on the absolute values of the

differences between these alternative ways of estimating the average

achievable NOX emission rate over the long-term. The next section

of the preamble summarizes and discusses these comparisons.

EPA has used two complementary analyses to estimate annual average

emission rates that can be sustained by LNBs installed on Phase II

units with Group 1 boilers and to develop percentile distributions of

Phase II units that can comply with various performance standards more

stringent than the Phase I standards. The two analyses are described

briefly below:

(1) Analysis 1 analyzes actual average emission rates, as

measured by CEMS data, achieved by LNBs applied to Phase I units in

Phase I and a few Phase II units to calculate the percent reduction

achievable by LNBs as a function of uncontrolled emission rate; and

(2) Analysis 2 applies the percent NOX reduction derived in

Analysis 1 to boiler-specific uncontrolled emission rates for the

population of units that will be subject to any revised NOX

emission limitations in Phase II in order to determine achievable

emission rates for the Phase II, Group 1 population.

The straightforwardness of the retrofit CEMS data analysis

(Analysis 1) is appealing in that it reflects actual boiler operating

experience. On the other hand, to the extent the Phase I population of

boilers is more difficult to retrofit and has higher baseline emission

rates and a greater proportion of tight, high furnace temperature

boilers than the Phase II population, emission rates based solely on

the retrofit CEMS data analysis will understate the achievable annual

emission limitations. Analysis 2, which uses a regression model applied

to the CEMS data to estimate the percent reduction as a function of

uncontrolled emission rates, captures differences in the two

populations of boilers.

Utilities complying with Group 1, Phase I reductions for

tangentially fired boilers had a spectrum of technologies to choose

from in addition to LNBs and some, perhaps due to other NOX

requirements such as title I of the Act, chose to go beyond LNBs in

their technology choice. As a result, DOE believes there is the

possibility that those units installing LNB were in some way different

from tangentially fired boilers in general and, therefore, existing LNB

installations may not be representative of how well LNBs will perform

on Phase II tangentially fired boilers. EPA seeks comment regarding the

representativeness of LNB installations.

Similarly, EPA is aware of no tangentially fired boiler with

uncontrolled NOX emissions exceeding 0.67 lb/mmBtu, which has been

retrofit with LNB. DOE believes that about one-fourth of the Phase II

tangentially fired boiler capacity exceeds this level of uncontrolled

emissions. EPA seeks comment on the ability of LNBs to meet the

proposed standards on boilers with uncontrolled NOX emissions

exceeding 0.67 lb/mmBtu, and requests any additional data which relates

to this issue.

C. Feasibility of Achieving Revised Phase I Performance Standards

1. Assessment Using Retrofit CEMS Data Analysis

Table 1 presents summary statistics on all known retrofit

applications of LNBs to Group 1 boilers, where LNB installation

occurred after November 15, 1990 and for which long-term post-retrofit

hourly CEMS emission rate data are available. The term ``baseline

NOX rate'' refers to the emission rate as of November 15, 1990 and

represents short-term uncontrolled NOX emissions.

[[Page 1446]]

Table 1.--Summary of the Known LNB Applications on Group 1 Boilers With CEMS Data Available

----------------------------------------------------------------------------------------------------------------

Low NOX period

No. of units Boiler size (MWe) Baseline NOX rate NOX rate (lb/

(lb/mmBtu) mmBtu)

----------------------------------------------------------------------------------------------------------------

Wall-Fired Boilers

Phase I:

Mean................................. 22 270.6 0.908 0.418

Range................................ 22 100.0-816.3 0.570-1.340 0.319-0.484

Phase II:

Mean................................. 2 267.4 0.757 0.354

Range................................ 2 254.3-280.5 0.513-1.000 0.262-0.445

Phase I & II:

Mean................................. 24 270.3 0.896 0.413

Range................................ 24 100.0-816.3 0.513-1.340 0.262-0.484

Tangentially Fired Boilers

Phase I:

Mean................................. 6 230.3 0.653 0.365

Range................................ 6 125.0-324.0 0.630-0.665 0.346-0.387

Phase II:................................

Mean................................. 3 80.5

80.0-81.6 0.514

0.478-0.587 0.325

0.304-0.363

Phase I & II:

Mean................................. 9 180.4 0.607 0.352

Range................................ 9 80.0-324.0 0.478-0.665 0.304-0.387

----------------------------------------------------------------------------------------------------------------

Tables 2 and 3 present detailed data on the 24 dry bottom wall-

fired LNB installations and the 9 tangentially fired LNB installations,

respectively. Table 2 does not include data for LNB installations that

occurred before the cutoff date of November 15, 1990 since these

installations occurred prior to the passage of the Act. Table 3 does

not include installations at the Joppa Steam plant (owned by Electric

Energy Inc.) since these units switched to Powder River Basin coal, nor

does it include installations at Lansing Smith, unit 2, (owned by Gulf

Power Co.) and Albright, unit 3 (owned by Monongahela Power Co.) since

EPA is unsure when during the post-retrofit period these units operated

with LNBs without separated overfire air. If EPA is provided

information during the comment period about when these latter two units

operated with LNBs only, EPA will add them to the database, provided

sufficient valid data is available.

EPA recognizes that the amount of compliance NOX data will be

increasing beginning January 1, 1996 as the Phase I units start

compliance reporting. EPA will carefully consider the first quarter

1996 data--subject to its timely receipt and required processing by

EPA--in preparing the final NOX rule for the Phase II units and

the Group 2 units. Therefore, it is important for quarterly 1996

emission reports to be accurate and timely submitted.

Table 2.--Known LNB Applications on Wall-Fired Boilers With CEMS Data Available

--------------------------------------------------------------------------------------------------------------------------------------------------------

Low NOX

LNB Baseline period NOX

Phase State Utility Plant Boiler ID Size (MWe) retrofit NOX rate rate (lb/

date (lb/mmBtu) mmBtu)

--------------------------------------------------------------------------------------------------------------------------------------------------------

1..... AL Alabama Power Co........... E. C. Gaston.......... 1 272.0 11/30/94 0.900 0.394

1..... AL Alabama Power Co........... E. C. Gaston.......... 2 272.0 04/07/92 .780 .394

1..... AL Alabama Power Co........... E. C. Gaston.......... 3 272.0 05/23/93 .800 .408

1..... AL Alabama Power Co........... E. C. Gaston.......... 4 244.8 05/21/94 .800 .408

1..... KY Big Rivers Electric Corp... Coleman............... C1 174.3 02/07/94 1.340 .436

1..... KY East Kentucky Power Coop Cooper................ 1 100.0 03/01/94 .900 .419

Inc.

1..... KY East Kentucky Power Coop Cooper................ 2 220.9 12/31/94 .900 .419

Inc.

1..... KY East Kentucky Power Coop HL Spurlock........... 1 305.2 04/08/93 .900 .402

Inc.

1..... FL Gulf Power Co.............. Crist................. 6 369.8 05/29/94 1.040 .462

1..... FL Gulf Power Co.............. Crist................. 7 578.0 01/02/94 1.160 .484

1..... IN Hoosier Energy REC Inc..... Frank E Ratts......... 1SG1 116.6 10/01/94 1.068 .469

1..... IN Hoosier Energy REC Inc..... Frank E Ratts......... 2SG1 116.6 07/01/94 1.090 .430

1..... KY Kentucky Utilities Co...... EW Brown.............. 1 113.6 06/16/93 1.000 .466

1..... WV Ohio Power Co.............. Mitchell.............. 1 816.3 02/01/94 .767 .455

1..... WV Ohio Power Co.............. Mitchell.............. 2 816.3 01/01/94 .767 .455

1..... PA Pennsylvania Electric Co... Shawville............. 1 125.0 12/25/93 .990 .438

1..... IN Southern Indiana Gas & Elec F B Culley............ 2 103.7 05/20/94 1.050 .348

Co.

1..... AL Tennessee Valley Authority. Colbert............... 1 200.0 05/15/94 .800 .397

1..... AL Tennessee Valley Authority. Colbert............... 2 200.0 05/15/94 .670 .397

1..... AL Tennessee Valley Authority. Colbert............... 3 200.0 12/24/91 .830 .397

1..... AL Tennessee Valley Authority. Colbert............... 4 200.0 05/15/94 .860 .397

1..... WI Wisconsin Public service Pulliam............... 8 136.0 05/15/94 .568 .319

Corp.

2..... IL Central Illinois Light Co.. Ed Edwards............ 2 280.5 01/01/93 1.000 .445

2..... NV Sierra Pacific Power Co.... North Valmy........... 1 254.3 06/01/94 .513 .262

--------------------------------------------------------------------------------------------------------------------------------------------------------

[[Page 1447]]

Table 3.--Known LNB Applications on Tangentially Fired Boilers With CEMS Data Available

--------------------------------------------------------------------------------------------------------------------------------------------------------

Low NOX

LNB Baseline period NOX

Phase State Utility Plant Boiler ID Size (MWe) retrofit NOX rate rate (lb/

date (lb/mmBtu) mmBtu)

--------------------------------------------------------------------------------------------------------------------------------------------------------

1..... GA Georgia Power Company........ McDonough, J............ 1 245.0 6/5/95 0.657 0.346

1..... GA Georgia Power Company........ McDonough, J............ 2 245.0 12/16/94 .657 .346

1..... GA Georgia Power Company........ Yates................... 4 125.0 4/1/95 .630 .387

1..... GA Georgia Power Company........ Yates................... 5 125.0 11/26/94 .650 .387

2..... NY Niagara Mohawk Power Corp.... Dunkirk................. 1 80.0 2/1/95 .478 .308

2..... NY Niagara Mohawk Power Corp.... Dunkirk................. 2 80.0 1/1/95 .478 .308

2..... NY Rochester Gas & Electric Corp Rochester 7............. 4 81.6 3/31/95 .587 .363

1..... WI Wisconsin Electric Power Co.. Oak Creek............... 7 317.6 7/15/94 .661 .362

1..... WI Wisconsin Electric Power Co.. Oak Creek............... 8 324.0 4/16/95 .665 .362

--------------------------------------------------------------------------------------------------------------------------------------------------------

Units in the same plant that have identical low NOX period

emission rates share a common stack. Under the Acid Rain CEMS Rule,

emissions discharged by units sharing a common stack may be monitored

by either a single monitor located in the stack or separate monitors

located in ducts going from the units to the stack. Similarly, units

sharing a common stack frequently have the same baseline NOX rate.

Virtually all of the baseline NOX rates in Tables 2 and 3 come

from utility-reported data provided to EPA on the Acid Rain Cost Form

for NOX Control Costs for Group 1, Phase I Boilers. Utilities used

a CEMS or an EPA Reference Method for measuring these emissions data.

The remaining baseline NOX rates come from CEMS data reported

in monitor certification review (CREV) tests (see docket item II-A-9).

These latter data represent average NOX emission rates calculated

from 9 test runs comprising the most recent relative accuracy test

audit (RATA). Each RATA test run contains about 25 minutes of CEMS

data.

Tables 4 and 5 summarize comparisons of post-retrofit average

NOX emission rates computed using alternative bases: low NOX

period, post-optimization period, low NOX period in 1995, and

overall post-retrofit period following a fixed 30-day start-up period.

EPA solicits comment on the relative merits of these alternative bases

for determining the performance of low NOX burners and in

particular, the use of a fixed 30-day, 60-day, or 90-day start-up

period, universally applied, or some other approach that reflects

stabilization of the NOX control equipment, and how to determine

the proper period using the reported hourly emissions data. Summaries

of these data are provided below.

Table 4.--Dry Bottom Wall-Fired Boilers

----------------------------------------------------------------------------------------------------------------

Low NOX period Post- Low NOX period Overall post-

Comparison of average emission rates (1994-1995 optimization (1995 data retrofit

data) period only) period

----------------------------------------------------------------------------------------------------------------

Phase I boilers................................. 0.418 0.436 0.437 0.455

Phase II boilers................................ .354 .368 .354 .385

Phase I & II boilers............................ .413 .430 .429 .449

----------------------------------------------------------------------------------------------------------------

Table 5.--Tangentially Fired Boilers

----------------------------------------------------------------------------------------------------------------

Low NOX period Post- Low NOX period Overall post-

Comparison of average emission rates (1994-1995 optimization (1995 data retrofit

data) period only) period

----------------------------------------------------------------------------------------------------------------

Phase I boilers................................. 0.365 0.373 0.365 0.375

Phase II boilers................................ .325 .327 .325 .334

Phase I & II boilers............................ .352 .358 .352 .361

----------------------------------------------------------------------------------------------------------------

For each boiler used in the retrofit CEMS data analysis, EPA has

identified the low NOX periods for both 1994 and 1995 as well as

examined a plot of daily average NOX emission rates over the

entire post-optimization period. Where these analyses show a noticeable

change occurred in NOX emissions after the beginning of the Phase

I compliance period, EPA will investigate whether switching to low

sulfur coal for SO2 control or whether other operational

parameters might explain the difference in LNB performance. EPA has

examined the relationship between the low NOX period and the post-

optimization period. The average NOX emission rates for wall-fired

boilers for the low NOX period are lower than the post-

optimization period. (No difference is observed for tangentially fired

boilers because these two time periods are essentially equivalent in

length.) Since the Phase I NOX Emission Reduction Program is not

in effect until January 1, 1996, even though LNBs are installed, the

units may not be operated to optimize NOX emissions throughout the

entire post-retrofit period since O&M costs increase when operating

LNBs to minimize NOX emissions. In addition, a literature review

indicates that through operational optimization NOX emissions can

be reduced by 10-20%. The existing wall-fired installations of LNBs do

show a difference in NOX reductions, depending on the portion of

the post-retrofit data considered. The performance of these units, and

[[Page 1448]]

therefore the data analysis period, is key to deciding whether the

statutory test of ``more effective'' LNBs have been demonstrated.

Hence, comment is solicited on defining the best approach to evaluating

this post-retrofit data. At this time, EPA has made no final decision

on the length of data analysis period.

Recent publications and comments from utility industry

representatives indicate that there is concern that 52-day periods (low

NOX periods) may not adequately capture annual dispatch patterns

and seasonal variations in demand for electrical power generation. EPA

therefore has developed estimates of ``load-weighted annual NOX

emission rates'' based on weighted averages of the average emission

rate during the low NOX period for each load bin times the number

of hours during 1994 the boiler operated within each load bin. As

summarized below, in less than half of the comparisons, the load-

weighted annual NOX emission rate is no more than 10% above the

low NOX period rate and in the remaining is at or below the low

NOX period rate.

Table 6.--Comparison of Average NOX Emission Rates

[Dry bottom wall-fired boilers]

------------------------------------------------------------------------

Load-

weighted

Low NOX annual NOX

period emission

rate

------------------------------------------------------------------------

Phase I boilers................................. 0.418 0.409

Phase II boilers................................ .354 .355

Phase I & II boilers............................ .413 .405

------------------------------------------------------------------------

Table 7.--Comparison of Average NOX Emission Rates

[Tangentially fired boilers]

------------------------------------------------------------------------

Load-

weighted

Low NOX annual NOX

period emission

rates

------------------------------------------------------------------------

Phase I boilers................................. 0.365 0.325

Phase II boiler................................. .325 .330

Phase I & II boilers............................ .352 .327

------------------------------------------------------------------------

EPA believes the load-weighted annual NOX rate estimates

address the concern over the adequacy of using 52-day periods. The data

show that the annual emission rate projected over the actual dispatch

pattern of 1994, results in approximately the same emission rate as the

low NOX period identified during the post-retrofit timeframe. EPA

compared the dispatch patterns over the low NOX period with the

actual 1994 annual dispatch pattern and found them to be similar for

most boilers. This indicates that the low NOX period dispatch

patterns were representative. Additionally, a strong generic

relationship between NOX and load was not found (see docket item

II-A-9). Moreover, the ``52-day periods'' generally span more than two

calendar months; they represent NOX emission rates averaged over

1248 sequential hours during which the boiler was operating and valid

CEMS measurements were reported. Hours for which a valid NOX

emission rate measurement is not available (e.g., hours for which

substitute data was used for the NOX emission rate), the unit was

not operating, or the unit operated for only part of the hour are not

included. Valid CEMS NOX emission data after such a gap were moved

forward and linked to the 52-day low NOX data chain until there

are 1248 hours of NOX hourly data. The Technical Support Document

contains information on the beginning and end of each of the 52-day low

NOX periods as well as the other bases used for estimating post-

retrofit average NOX emission rates.

EPA has tabulated the percentage of time each boiler's daily

average NOX emission rate, during the low NOX period, was

less than or equal to alternative performance standards more stringent

than the existing Group 1 NOX emission limitations. Consistent

with the definition of 52-day periods and with the missing data

substitution algorithms in the Acid Rain CEMS Rule, a ``daily'' average

is defined as the average of a sequential (but not necessarily

continuous) set of 24 hours of valid NOX emission rate

measurements excluding missing data results. Tables 8 and 9 show the

percentile distributions of Group 1 boilers, by type. EPA estimated the

percentage of units in the Group 1 boiler data set that during their

low NOX period in 1994 or 1995, would have complied with various

alternative performance standards more stringent than the existing

Group 1 NOX emission limitations.

Table 8.--Dry Bottom Wall-Fired Boilers

----------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------

% of Boilers Less Than or Equal to Standard for Low NOX Period

Average

----------------------------------------------------------------------------------------------------------------

NOX Performance Standard (lb/mmBtu)............ 0.47 0.46 0.45 0.44 0.43

Phase I boilers (22)........................... 95.5% 86.4% 72.7% 72.7% 63.6%

Phase II boilers (2)........................... 100.0% 100.0% 100.0% 50.0% 50.0%

Phase I & II boilers (24)...................... 95.8% 87.5% 75.0% 70.8% 62.5%

----------------------------------------------------------------------------------------------------------------

Table 9.--Tangentially Fired Boilers

----------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------

% of Boilers Less Than or Equal to Standard for Low NOX Period

Average

----------------------------------------------------------------------------------------------------------------

NOX Performance Standard (lb/mmBtu)............ 0.42 0.40 0.39 0.38 0.36

Phase I boilers (6)............................ 100.0% 100.0% 100.0% 66.7% 66.7%

Phase II boilers (3)........................... 100.0% 100.0% 100.0% 100.0% 100.0%

Phase I & II boilers (9)....................... 100.0% 100.0% 100.0% 77.8% 77.8%

----------------------------------------------------------------------------------------------------------------

Viewed collectively, the various tabulations, analyses, and plots

of actual post-retrofit CEMS data suggest to EPA that dry bottom wall-

fired boilers with LNBs and tangentially fired boilers with LNBs can

easily achieve an annual emission limitation below the current emission

limitations of 0.50 lb/mmBtu and 0.45 lb/mmBtu respectively. Estimates

of post-retrofit average NOX emission rates using different bases

(i.e., low NOX period, low NOX period in

[[Page 1449]]

1995, load-weighted annual NOX rate, and post-optimization period

average) are consistent; all of these rates are 14 percent or more

below the current emission limitation. Commenters have observed that

there is substantial uncertainty concerning the ability of Phase II

boilers to meet a lower standard if one considers: (a) units with less

than 52 days of monitoring data; (b) the lack of control technology

performance data from tangentially fired boilers with uncontrolled

emission rates higher than 0.67 lb/mmBtu; and (c) periods of

performance monitoring other than the ``low NOX period.'' Further

comment is sought on this issue.

2. Assessment Using Phase II Population Projection Analysis

Figures 1 and 2 display plots of the average NOX reduction

achieved by LNBs, derived from actual retrofit CEMS data, as a function

of the short-term uncontrolled NOX emission rate. (These plots are

based on the data in Tables 2 and 3 above.) Also shown in the figures

are the results of linear regression models EPA developed to estimate

the LNB-controlled emission rate as a function of the short-term pre-

retrofit uncontrolled emission rate. EPA has selected the short-term

uncontrolled emission rate as the baseline for these analyses because

boiler-specific measurements of this variable are available from the

CREV test data sets for almost all Phase I, Group 1 boilers and for 69

percent of Phase II, Group 1 boilers. EPA further determined that the

Phase II data set (69% of the Phase II population) adequately

represents the entire Phase II population by comparing boiler size and

age distributions (for details of this analysis, see page 3 of docket

item II-A-9).

Based on the information in Figures 1 and 2, EPA estimated the

emission rates that can be achieved by Group 1 units subject to any

revised emission limitations using LNBs. For both types of Group 1

boilers, EPA used the regression equation with boiler-specific CREV

uncontrolled emission rates to develop projections of the LNB-

controlled emission rate. For each unit, as shown by the coefficient of

correlation, R2, the regression equation accounts for about 68%

(wall-fired) and 67% (tangentially fired) of the variability observed

in the data. The regression equations result in NOX reduction

efficiency of low NOX burners applied to Group 1, Phase II boilers

with respect to uncontrolled NOX emission rate. The NOX

emission reduction percentage then typically ranges from 40 percent to

67 percent for wall-fired boilers and from 35 percent to 47 percent for

tangentially fired boilers, depending on each boiler's uncontrolled

NOX emission rate. The lower long-term average NOX reduction

is achieved by low NOX burners on boilers with lower uncontrolled

emission rates. Similarly, the higher long-term average NOX

reduction is achieved by low NOX burners on boilers with higher

uncontrolled emission rates. EPA solicits comment on the

representativeness of the reduction efficiency ranges in determining

performance of low NOX burners.

BILLING CODE 6560-50-P

[[Page 1450]]

[GRAPHIC][TIFF OMITTED]TP19JA96.000

[[Page 1451]]

[GRAPHIC][TIFF OMITTED]TP19JA96.001

BILLING CODE 6560-50-C

[[Page 1452]]

From these boiler-specific population projections, EPA has

developed percentile distributions estimating the number of Group 1

boilers (subject to any revised emission limitations) that can comply

with various alternate performance standards more stringent than the

current NOX emission limitations. The resulting distributions of

Group 1 boilers by percentile achievement for different performance

standards are shown below.

Table 10.--Percentile Achievement of Alternative Wall-Fired Boiler

Performance Standards

------------------------------------------------------------------------

Percentile Performance standard (lb/mmBtu)

------------------------------------------------------------------------

100................................ 0.465

95................................. 0.451

90................................. 0.448

85................................. 0.441

80................................. 0.434

------------------------------------------------------------------------

Table 11.--Percentile Achievement of Alternative Tangentially Fired

Boiler Performance Standards

------------------------------------------------------------------------

Percentile Performance standard (lb/mmBtu)

------------------------------------------------------------------------

100................................ 0.499

95................................. 0.401

90................................. 0.377

85................................. 0.370

80................................. 0.364

------------------------------------------------------------------------

The percentile distributions of estimated achievable annual

emission limits based on the Phase II population projection analysis

indicate that 99.5% of the Phase II dry bottom wall-fired boilers could

comply with a revised performance standard of 0.45 lb/mmBtu and 92.3%

of the Phase II tangentially fired boilers could comply with a revised

performance standard of 0.38 lb/mmBtu. These percentages indicate a

better performance than is indicated by the CEMS data analysis. To

determine why this difference exists, EPA investigated the uncontrolled

NOX emission rates of Phase I and Phase II boilers. A tabulation

of the average uncontrolled emission rates for the Phase I and Phase II

populations of Group 1 boilers shows, for both types, that Phase I

boilers have higher uncontrolled emission rates.

Table 12.\3\--Comparison of Phase I, Group 1 and Phase II, Group 1

Uncontrolled NOX Emission Rates

------------------------------------------------------------------------

Phase I Phase II

Boiler type average average Percent

NOX rate NOX rate difference

------------------------------------------------------------------------

Dry Bottom Wall-fired................... 0.963 0.744 23

Tangentially fired...................... .652 .536 18

------------------------------------------------------------------------

Hence, it is seen that Phase II boilers operate at typically lower

uncontrolled emissions rates. As a result, a greater fraction of those

boilers are expected to be able to meet a given emission target.

\3\ Based on CREV data taken from EPA's database of uncontrolled

NOX emissions, presented in Appendix A of RIA.

---------------------------------------------------------------------------

In the preceding discussion, performance data for Group 1 boilers

was based on emission data for the low NOX period, i.e., a period

of 52 days of operation as defined above. If the post-optimization

period as defined above were used to determine the performance of low

NOX burners, the applicable emission limits would be 0.46 lb/mmBtu

and 0.39 lb/mmBtu for wall-fired and tangentially fired boilers

respectively. Similarly, if the overall post-retrofit period were used,

the applicable emission limits would be 0.48 lb/mmBtu and 0.39 lb/mmBtu

for wall and tangentially fired boilers respectively by EPA's

calculation. DOE calculates an applicable emission limit of 0.50 lb/

mmBtu for wall-fired boilers using the overall post-retrofit period,

excluding 2 units considered by EPA, and using a different regression

formula than EPA (see docket item, II-D-62, Analysis of Proposed

Section 407(b)(2) NOX Rule, Department of Energy, Staff Paper,

December 14, 1995).

If the data used by DOE for the post-retrofit period, using DOE's

computations, are representative of performance of wall-fired boilers

retrofit with LNBs, then no change in the standard for such boilers

would be called for and EPA in the final rule would retain the existing

standard for such boilers. An analysis by DOE concluded that only 70%

of the affected wall-fired units could meet the proposed emission limit

of 0.45 lb/mmBtu (docket item, II-D-62, Analysis of Proposed Section

407(b)(2) NOX Rule, Department of Energy, Staff Paper, December

14, 1995). EPA seeks comment on the data and the computation used by

DOE and on whether the existing standard should be retained for wall-

fired boilers.

In the case of tangentially fired boilers, DOE reviewed performance

of tangentially fired boilers retrofit with LNBs in addition to those

considered by EPA. The emissions data for the units have only recently

been reported to EPA under part 75 and have not yet been analyzed.

DOE's analysis indicates that 90% of the affected units can meet the

current standard of 0.45 lb/mmBtu, but the proposed standard can be met

by only 40% (docket item, II-D-62, Analysis of Proposed Section

407(b)(2) NOX Rule, Department of Energy, Staff Paper, December

14, 1995). If DOE's data are representative of the actual performance

of these units, then no change in the standard for such boilers would

be appropriate and EPA in the final rule would retain the existing

standard for such boilers. EPA seeks comments on the data and on

whether the existing standard should be retained for tangentially fired

boilers.

EPA recognizes that in several instances the data on which today's

proposal is based relate to a limited number of boilers and that

analysis of the performance and cost of NOX controls could benefit

from fuller data, involving more units. For example, there are several

low NOX burner technology retrofits on tangentially fired boilers

for which the Agency does not yet have available CEM data collected in

accordance with part 75 and for which the Agency has not yet evaluated

data not reported through part 75 that recently became available.

During the comment period the Agency will have the opportunity to

examine NOX emissions data collected from these and other low

NOX burner technology installations. The Agency will also be able

to expand the hourly data examined for each boiler listed in Tables 2

and 3 above to include data collected after the second quarter of 1995.

In light of additional data that EPA may receive during the comment

period, the final rule may establish different Phase II, Group 1

NOX emission limitations than those proposed today. If the new

information is found not to justify revising the emission limitations

promulgated in Phase I, EPA will not revise them.

In light of the above discussion about new information that will be

received during the comment period, in developing the proposal the

Agency considered comment suggesting that the issuance of this proposal

should be delayed in order to obtain fuller data on which to base

determinations concerning the Phase II, Group 1 emission limitations.

However, as discussed above, title IV establishes a schedule for

issuance of and compliance

[[Page 1453]]

with the NOX emission limitations in this proposal. Section 407(b)

requires that any revision of the Group 1 emission limitations (and any

Group 2 emission limitations) be established by January 1, 1997 and

applicable in Phase II. Establishment by January 1, 1997 of the Phase

II NOX emission limitations under title IV will provide utilities

with the information that they need concerning emission requirements

for Phase II in order to fashion the most efficient strategies to

comply with the Acid Rain NOX emission reduction program. Under

the Acid Rain program, compliance strategies may include: early

election plans (where Phase II, Group 1 units elect to comply starting

in 1997 with Phase I NOX emission limitations and avoid any

revised Group 1 limitations until 2008); NOX averaging plans

(where NOX emissions of units with the same owner or operator are

controlled to various extents and averaged to meet an overall limit);

or alternative emission limitations (where a unit with controls

designed, but unable, to meet the standard emission limitation can

qualify for a less stringent limitation).

In light of the statutory deadlines under section 407 and EPA's

analysis of the presently available data, the Agency has concluded that

it has a sufficient basis for proposing revised emission limitations

for Phase II, Group 1 boilers. EPA intends to use the comment period on

the proposal to gather more data. The Agency stresses that it will

welcome, and fully consider in the final rule, any additional data

relevant to the proposed emissions limitations.

3. Conclusions

EPA proposes to find that currently available data on the

effectiveness of LNB technology on Group 1 boilers demonstrates that

``more effective LNB technology is available'' for both dry bottom

wall-fired and tangentially fired boilers under Phase II of the Acid

Rain NOX Emission Reduction Program. Projections developed by

applying CEM-based estimated percent reductions to boiler-specific

uncontrolled emission rate data for the Phase II population indicate

that over 90% of dry bottom wall-fired boilers could individually meet

a performance standard of 0.45 lb/mmBtu and over 90% of tangentially

fired boilers could individually meet a performance standard of 0.38

lb/mmBtu.

EPA has taken the approach of selecting, as the revised emission

limitations achievable by Group 1 boilers, the emission limitations

that will be achievable by 90% of the applicable boiler population.

EPA chose to base the proposed emission limitation on the emission

rate that a target of 90% of the population will be able to meet

because of the flexibility offered by two compliance options available

to all Group 1 boilers: (1) emission averaging and (2) alternative

emission limitations. Group 1 boilers that install the NOX control

technology and cannot meet the applicable emission limitation on an

individual boiler basis may average with other boilers that are below

the applicable emission limitation or may petition the permitting

authority for a more relaxed emission limit. While the Agency could

have assumed that significantly more than 10% of the boiler population

could use the averaging or alternative emission limitation option, the

Agency maintains that use of the compliance target of 90% reasonably

implements the statutory requirement that the emission limitations be

based on the degree of emission reduction ``achievable'' through

retrofit application of cost-comparable NOX control technology.

This is analogous to the approach used in setting NOX emission

limitations under section 407(b)(1) for Phase I, Group 1 boilers.

Section 407(b)(1) required that the Phase I, Group 1 emission

limitations reflect what could be ``achieved using low NOX burner

technology'' (42 U.S.C. 7651f (b)(1)), and, in adopting the presumptive

limits set forth in section 407(b)(1) (A) and (B), EPA relied on

analysis showing that ``less than 10 percent of the Group 1 units would

fail to meet the presumptive limits.'' 60 FR 18758.

Table 13.--Group 1 Boiler Statistics and Expected Results

----------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------

For Dry Bottom Wall-Fired Boilers

----------------------------------------------------------------------------------------------------------------

Alternative NOX Emission Standard (lb/mmBtu)................ 0.46 0.45 0.44 0.43

% boilers estimated to achieve standard based on Phase II

population projection method............................... 99.5% 99.5% 87.0% 80.9%

----------------------------------------------------------------------------------------------------------------

For Tangentially Fired Boilers

----------------------------------------------------------------------------------------------------------------

Alternative NOX Emission Standard (lb/mmBtu)................ 0.40 0.39 0.38 0.36

% boilers estimated to achieve standard based on Phase II

population projection method............................... 95.2% 93.1% 92.3% 80.6%

----------------------------------------------------------------------------------------------------------------

EPA has estimated that adopting the revised Group 1 performance

standards will reduce nationwide NOX emissions by an additional

200,000 tons annually beyond the annual tonnage reductions under the

existing Group 1 emission limitations. When estimating the additional

emission reductions from boilers achieving the revised performance

standards, EPA has conservatively assumed that LNBs were not applied to

any boilers with baseline emission rates at or below the applicable

revised performance standard. Thus, these boilers would not contribute

to the aggregate estimate of tons NOX removed.

D. Adverse Effects of NOX and Benefits of Reduction

Nitrogen oxides (NOX) emissions result in an unusually broad

range of detrimental effects to human health and the environment.

NOX is a primary precursor to ozone formation and therefore is a

major component in smog (oxidant air pollution). Atmospheric deposition

of nitrogen compounds contributes to the degradation of water quality

in certain areas with its ensuing ecological effects. These and other

effects, described below, caused by NOX emissions or their

transformation products can adversely affect the environment and human

health.

Reducing NOX emissions from coal-fired power plants by

revising the emission limitations for Group 1, Phase II boilers (and by

establishing emission limitations for Group 2 boilers) would be

expected to produce multiple benefits. Benefits would accrue from

reducing ozone within and transported into ozone non-attainment areas,

reducing the formation of nitrate

[[Page 1454]]

particulate matter in the air, reducing ambient levels of NO2 and

PAN gases, reducing excessive nitrogen loadings to the Chesapeake Bay

and other estuaries, reducing acid deposition and resulting

acidification of lakes and streams, and improving visibility.

1. Formation of Secondary Pollutants, Eutrophication, and Acidic

Deposition

NOX emissions, as discharged into the atmosphere from the

burning of fossil fuels, consist primarily of nitric oxide (NO). Much

of the NO, however, reacts with organic radicals to form nitrogen

dioxide (NO2) and, over longer periods of time, is transformed

into other pollutants, including ozone (O3) and nitrate fine

particles.

Water quality degradation due to excessive nutrients

(``eutrophication'') can occur when airborne nitrogen compounds fall

directly on water, particularly an estuary, or the surrounding land and

enter the water through runoff. Acidic deposition occurs when airborne

nitrate compounds, which can be transported over long distances, return

to the earth through rain or snow (``wet deposition'') or as gases,

fog, or particles (``dry deposition''). While the severity of the

damages depend on the composition or sensitivity of the receptor,

acidic deposition, according to the 1990 Amendments of the Clean Air

Act, ``represents a threat to natural resources, ecosystems,

visibility, materials, and public health.''

2. Benefits from Reducing Ozone

Ozone, which is the most abundant of the photochemical oxidants, is

formed when NOX reacts with volatile organic compounds VOCs \4\

and sunlight. Heat accelerates this process, so ozone is most severe

during the summer months. Ozone is a highly reactive chemical compound

which can have adverse effects on human health, plants, animals, and

materials. Even 6-8 hours' exposure to elevated levels of ozone can

produce decreased lung function, increased airway inflammation,

increased sensitivity to lung infection in adults and children, the

effects being most pronounced during outdoor work and exercise (see

docket item II-A-10; Krupnick and Ozkanynak, 1991; Huang, 1988; Abbey,

1993). Elevated ozone increases the risk and intensity of asthma

attacks (Wittmore and Korn, 1980; Krupnick, 1988). The Public Health

Service of the National Institutes of Health estimates that, in 1992,

12.4 million Americans had asthma (Benson, 1994).

\4\ Like NOX, volatile organic compounds (VOCs) are emitted

directly into the atmosphere from a combination of man-made sources

(burning of fossil fuels in utility and industrial boilers, motor

vehicle emissions, hydrocarbon releases from dry cleaning and other

industrial processes) and natural sources (mostly vegetation).

---------------------------------------------------------------------------

Ozone at currently occurring levels also inhibits photosynthesis in

crops, trees, and plants, which leads to reduced agricultural crop

yields, increased susceptibility to pests and disease, and economic

losses associated with noticeable leaf damage in ornamental plants.

According to the National Acid Precipitation Assessment Program

(NAPAP), ozone has been responsible for significant reductions in the

annual yields of several domestically important crops: corn, 1%;

cotton, soybeans, 7%; and alfalfa, 30% (NAPAP, 1990). Other analyses of

five-year data from the National Crop Loss Assessment Network (NCLAN)

5 corroborate this assessment (Sommerville, 1989).

\5\ NCLAN was established by EPA during the 1980s for controlled

field tests to develop dose-response relationships between ozone

concentrations and crop yield.

---------------------------------------------------------------------------

A growing body of scientific evidence indicates that reducing

NOX emissions on a regional basis is a cost-effective approach to

achieving the ozone NAAQS the most seriously polluted ozone

nonattainment areas of the Eastern U.S.6 (60 FR 45583, August 31,

1995). These areas have consistently failed to achieve this health-

based standard despite up to 20 years of applying controls to sources

of VOCs, another ozone precursor, on a localized basis (NRC, 1991).

Recent studies of the South, the Northeast Corridor, and the states

bordering Lake Michigan conclude that ozone and NOX transported

from attainment areas both within the regions and outside of the

regions contribute significantly to ozone non-attainment within the

regions (see Southern Oxidants Study, 1995; 60 FR 4217; 60 FR 45580).

Modeling performed by EPA for the Ozone Transport Region (OTR), a 12-

state region spanning the Northeast Corridor from Northern Virginia to

Maine, shows that NOX emission controls on major sources outside

the OTR, primarily power plants in the Midwest, would provide

significant incremental reductions, ranging from 12-20%, to polluted

areas inside the OTR (US EPA, 1994b). Thirty-two states, as well as

areas of Canada, were included in EPA's modeling studies of ozone

transport in the Eastern U.S. Achievement of ozone attainment in these

regions and protection from ozone-related human health and other

effects depend, in part, on reducing NOX emissions in upwind areas

of these regions. EPA notes that 77% of the Group 1, Phase II boilers,

and 89% of the Group 2 boilers are located in areas adjacent to and

east of the Mississippi River.

\6\ See Regional Ozone Modeling for Northeast Transport

(ROMNET), EPA Doc. EPA-450/4-91-002a (June 1991), and Chu, S.H.,

E.L. Meyer, W.M. Cox, R.D. Scheffe, ``The Response of Regional Ozone

to VOC and NOX Emissions Reductions: An Analysis for the

Eastern United States Based on Regional Oxidant Modeling,''

Proceedings of U.S. EPA/AWMA International Specialty Conference on

Tropospheric Ozone: Nonattainment and Design Value Issues, AWMA TR-

23, 1993.

---------------------------------------------------------------------------

3. Benefits from Reducing Particulate Matter

NOX emissions can not only transform into ozone and other

photochemical oxidant gases, they can also react with ammonia, other

constituents, and moisture in the atmosphere to form acidic and other

nitrate fine particles. Exposure to current levels of fine particles in

the air has a wide range of health and other adverse effects, ranging

from higher cleaning expenses effects on morbidity and mortality (see

Schwartz, 1994; Fairday, 1990; and US EPA, 1995b). Nitrates are

considerably smaller than 10 microns and are part of the PM10

particulate matter subclass PM2.5, called ``fine particles.''

Documented illnesses caused by exposure to fine particles, particularly

over extended periods of time, include: various respiratory diseases,

eye irritation, aggravation of existing cardiovascular disease, and

lowering the body's resistance to carcinogenesis and foreign materials.

Adverse respiratory health effects can also occur when people,

particularly individuals in sensitive subpopulations, breathe aerosols

(Thurston, 1989). Acidic aerosols include solid particles and liquid

droplets suspended in the air that are generated when NOX

transforms into nitrates. One of the benefits of additional NOX

emission reductions would be health and economic benefits associated

with reductions in the formation of nitrate fine particles.

4. Benefits from Reducing NO2

NO2 is a brownish gas that has been documented to cause eye

irritation in people, either by itself or when oxidized photochemically

in the presence of VOCs and sunlight into PAN (Schwartz et al., 1988).

Elevated levels of NO2 have also been documented to cause lower

respiratory illness (LRI) in otherwise normal children, making them

suffer from chronic cough, persistent wheezing, and/or chronic phlegm

(Neas, 1991). Persons with pre-existing chronic obstructive pulmonary

disease (COPD), estimated to be 14 million in the U.S. (U.S. Department

of Health and Human

[[Page 1455]]

Services, 1990), and asthmatics are more likely to suffer from

respiratory ailments or chronic illness (decreased lung function and

increased risk of lung infection) caused by exposure to NO2 than

the general population.

5. Water Quality Benefits

Atmospheric deposition of nitrates can be a significant factor in

the degradation of water quality and its associated health risks and

damaging ecological effects. Various forms of nitrogen have been

measured as wet and dry deposition falling on the Chesapeake Bay and

its watershed. Eutrophication, which results from excessive nitrogen

loadings, can cause adverse ecological effects. Impacts range from

nuisance algae blooms to the depletion of oxygen with resultant fish

kills. Approximately 25-40% of total nitrogen entering the Bay and

other estuaries is a result of atmospheric deposition (US EPA, 1994a).

A study of the Chesapeake Bay, performed under a Congressionally

mandated program to evaluate the effects of atmospheric deposition to

pollutant loadings in the Great Water Bodies of the U.S., determined

that the majority of airborne nitrogen compounds over the Bay are

emitted by power plants and motor vehicles (US EPA, 1994a). Reductions

in NOX emissions from power plants are substantially less

expensive to implement than alternative controls for reducing nitrogen

loadings to the Bay from point (wastewater plants) and area (farms,

animal pastures) sources. Such alternatives are presently being

considered by the States of Maryland, Pennsylvania, and Virginia, and

the District of Columbia in order to achieve a 40%-reduction in

nutrient supplies to the Bay by the year 2000, to which these

jurisdictions have committed. The average cost-effectiveness of these

other controls are: chemical addition or biological removal of nitrogen

from wastewater processing ($4,000 to over $20,000/ton nitrogen

removed) and ``management practices'' to reduce nitrogen from

fertilizers, animal waste, and other nonpoint sources ($1,000 to over

$100,000/ton of nitrogen removed) (Camacho, 1993; Shuyler, 1992). By

comparison, the average cost-effectiveness of LNB applied to Group 1

coal-fired boilers in this proposal is estimated to be $250/ton of

NOX removed, which corresponds roughly to $500/ton of nitrogen

removed. (Similarly, NOX controls applied to Group 2 coal-fired

boilers have an average cost-effectiveness of $150/ton, or roughly

$300/ton of nitrogen removed.)

6. Visibility and Acidic Deposition Benefits

Nitrogen dioxide (NO2) and nitrate particulates also

contribute to pollutant haze, which impairs visibility and can reduce

residential property values as well as revenues generated by tourism,

national parks, etc.

Atmospheric deposition of nitrogen compounds is an important

component in the acidification of lakes and streams. Recent scientific

studies indicate the amount of nitrogen that can be sequestered in

certain watersheds by biological and other processes is limited (US

EPA, 1995). As these watersheds approach nitrogen saturation, nitrates

can begin to leach into surface waters, accelerating the process of

long-term chronic acidification. Further, according to EPA's Acid

Deposition Standard Feasibility Study Report to Congress, ``both

sulfates and nitrates originating from atmospheric deposition can

contribute significantly to episodic acidification events'' (US EPA,

1995:14). Episodic acidification occurs when highly acidic water, toxic

to fish, enter lakes and streams during storm flow or snowmelt runoff,

often during spawning season in the Spring. Acidified ecosystems can

show signs of recovery, however, following reductions in acidic

deposition rates. Environmental modeling performed for EPA's Acid

Deposition Standard Feasibility Study predicts benefits to varying

degrees in watersheds where atmospheric deposition of acidic compounds

has been and will continue to be reduced (US EPA, 1995). One study

conclusion is that additional limits on nitrogen deposition would

likely produce a two-fold potential benefit by reducing acidic

deposition rates and lengthening the average time for watersheds to

reach nitrogen saturation (US EPA, 1995:56).

Efforts are currently underway to further investigate the

mechanisms by which nitrogen deposition directly impacts or works with

other pollutants to damage structural and other materials (NAPAP,

1993).

E. Revised Emission Limits for Group 1 Boilers

EPA proposes, for the following reasons, that the Administrator

should exercise her discretion under section 407(b)(2) to revise the

emission limitations for Group 1 boilers to be more stringent. As

discussed above, analysis of the performance of LNBs on Group 1 boilers

shows that more effective low NOX burner technology is available.

Group 1 boilers subject to NOX emission limitations starting on or

after January 1, 2000 are capable of achieving, with LNBs: 0.45 lb/

mmBtu for dry bottom wall-fired boilers and 0.38 lb/mmBtu for

tangentially fired boilers. Further, revision of the limitations would

result in additional NOX reductions of about 200,000 tons

annually. In light of the significant, adverse impacts of NOX

emissions on human health and the environment, these additional

reductions would be beneficial. Finally, revision of Group 1 emission

limitations would be a cost-effective way of achieving these

reductions, relative to alternative pollution control strategies.

Therefore, EPA proposes to adopt the revised Group 1 emission

limitations.

F. Compliance Date

Industry has expressed concern about the regulated utility

community's ability to begin the Phase II program on January 1, 2000,

should EPA decide to revise the Group 1 emission limitations (see

docket A-92-15, item VIII-A-1, Brief of Petitioners, July 1, 1994). No

statutory provision exists for extension of the Phase II compliance

deadline analogous to the 15-month Phase I compliance extension

authorized by section 407(d) of the Act. Since four times as many Group

1 boilers are subject to NOX emission limitations in Phase II as

are in Phase I, industry spokespersons are concerned that utilities may

have barely enough time to procure LNB technology, schedule outages,

and install and test equipment, consistent with system reliability (see

docket A-92-15, item VIII-A-1, Brief of Petitioners, July 1, 1994).

Actual experience to date in preparing for Phase I, however,

indicates the anticipated technology shortage may not materialize. EPA

has received only 9 requests for the Phase I compliance extension.

Moreover, EPA has already received several inquiries about early

election for compliance with NOX emission limitations in Phase I

by units subject to NOX emission limitations starting in Phase II.

This suggests that an adequate supply of Group 1 LNB technology is

available.

EPA solicits comments from utilities and LNB technology vendors on

their ability to meet the statutory Phase II compliance date. Comments

advocating a compliance date extension should describe specific

problematic situations associated with the procurement and/or

installation of LNB technology and differentiate between site specific

and generic industry concerns.

EPA also requests comment on the need for a compliance extension

for boilers that must meet a more stringent title I NOX limit on a

date certain after the statutory title IV Phase II

[[Page 1456]]

compliance date, and on whether there is a legal basis for such

extension.

G. Definition of Coal-Fired Utility Unit

EPA proposes to revise the definition of ``coal-fired utility

unit'' as it applies to Phase II units. Under the current provision in

Sec. 76.2, any Phase II unit for which combustion of coal (or coal-

derived fuel) is more than 50.0 percent of the unit's annual heat input

in 1995 is a ``coal-fired utility unit'' and is therefore subject to

the Acid Rain NOX emission limitation for the unit's boiler type.

However, the current definition raises the question of whether the Acid

Rain NOX emission limitations apply to a unit that is designed to

combust, and has previously combusted, coal but is shutdown for all of

1995 and resumes operation thereafter. EPA sees no basis for treating

such a unit differently from another unit that is designed to combust

coal and operates during 1995 and thereafter.

Consequently, EPA proposes to revise the ``coal-fired utility

unit'' definition to include any Phase II unit that does not combust

any fuel that results in the generation of electricity during 1995 but

has combusted in any year during 1990-1995 fuel that comprised more

than 50 percent coal and that resulted in the generation of

electricity.

III. Control of NOX Emissions From Group 2 Boilers

A. Description of Group 2 Boilers

Under section 407(b)(2) of the Act, EPA is required to establish

NOX emission limitations (on a lb/mmBtu annual average basis) for

Group 2 boilers including wet bottom wall-fired boilers, cyclones,

units applying cell burner technology, and all other types of utility

boilers not classified as dry bottom wall fired and tangentially fired

boilers, by January 1, 1997. In the following sections, information is

presented on the basic design, population, and estimated uncontrolled

NOX emissions from each of these boiler types. For details

pertaining to this information, please refer to the Group 2 technical

support document (see docket item II-A-2, Investigation of Performance

and Cost of NOX Controls as Applied to Group 2 Boilers, pp. 2-1 to

2-4) and EPA's Regulatory Impact Analysis (see docket item II-F-2).

1. Basic Designs of Group 2 Boilers

Cell Burner Boilers. These boilers are dry bottom units that

consist of arrays of two or three closely-spaced circular burners in a

vertical assembly, i.e., the cell, mounted on opposed walls of the

furnace. Furnaces equipped with cell burners fire coal, oil, and

natural gas. Generally, in these furnaces, the close spacing of

circular burners results in hotter burner zones than those in dry

bottom wall-fired furnaces equipped with circular burners that are not

clustered. As a consequence, cell burner equipped boilers have high

combustion efficiencies but typically generate high levels of NOX

emissions.

Cyclone Boilers. Cyclone boilers are wet bottom units fired on

crushed coal. In these boilers, fuel and air are burned in horizontal

water-cooled cylinders, called cyclones. The arrangement of coal

burners and secondary air ports in a cyclone results in a spinning,

high temperature flame. Relatively high furnace temperatures in a

cyclone cause conversion of ash into a molten slag. This slag collects

on the cylinder walls and then flows down the furnace walls into a slag

tank located below the furnace. As a result of high furnace

temperatures, cyclone boilers are generally characterized by high

NOX emissions. Though cyclone boilers are wet bottom boilers, they

are not included in the wet bottom category due to their unique firing

pattern as explained above.

Wet Bottom Boilers. This type of boiler includes several firing

configurations (e.g., wall fired and vertically fired) and is

characterized by wall mounted burners, similar to those in dry bottom

units. However, the furnace temperatures in these boilers are generally

higher than those in corresponding dry bottom units, thereby resulting

in furnace zones hot enough to melt the ash. Slag produced by melting

of the ash flows down and is tapped off from the bottom of the furnace.

Vertically Fired Boilers. In these boilers, conventional circular

burners or coal and air pipes are oriented downward, rather than

horizontally as in wall-fired boilers. In general, these boilers have

more complex firing and operating characteristics than wall or

tangentially fired boilers. Several vertically fired furnace designs

are in operation today, including top-fired, roof-fired and arch-fired

configurations.

In top-fired and roof-fired boilers, burners are mounted on the

roof of the furnace and combustion gases flow downward and through a

superheater located at the bottom of the furnace. In arch-fired

boilers, burners mounted on lower furnace arches generate long, looping

flames and hot combustion gases discharge up through the center.

It should be noted that the vertically fired category consists of

only dry bottom boilers. Wet bottom vertically fired boilers are

included in the wet bottom boiler category, along with wet bottom wall-

fired boilers.

Stoker Boilers. Coal-fired stoker boilers range in size from 2,000

lb/hr to approximately 500,000 lb/hr steam generation capacity.

Practical design considerations limit stoker size and maximum steam

generation rates depending upon the type of fuel being fired. The major

types of stoker boilers include spreader stokers, underfed stokers, and

overfed stokers, which reflect the differences in the manner of coal

injection into the boiler. Additional stoker types or subcategories

(including traveling or chain grate, vibrating grate, and dumping

grate) reflect different methods of removing ash from the combustion

bed surface or grate.

FBC Boilers. Fluidized-bed combustors (FBC) range in size from

industrial boilers that produce less than 50,000 lb/hr of steam up to

utility-type boilers that generate hundreds of megawatts of power. In

these boilers, crushed coal in combination with some inert material

(e.g., silica, alumina, or ash) and air is maintained in a turbulent

suspended ``fluidized'' state and combusted at relatively low furnace

temperatures. FBC designs have been classified as either bubbling or

circulating, depending on the velocity of the solids moving through the

combustor. Additionally, these boilers can be designed to operate under

atmospheric or pressurized conditions, resulting in atmospheric FBC

(AFBC) or pressurized FBC (PFBC) systems.

2. Characterization of the Group 2 Boiler Population and Uncontrolled

NOX Emissions

Table 14, shown below, exhibits the differences in boiler types

with respect to population, nameplate capacity, size, and estimated

uncontrolled NOX emissions. This table has been developed using

the information presented in the EPA Group 2 Boiler Database found in

Appendix A of the Group 2 technical support document (see docket item

II-A-2, Investigation of Performance and Cost of NOX Controls as

Applied to Group 2 Boilers). Note, however, that this table excludes

certain units that are not expected to be in operation beyond the year

2000. A listing of these units can be found in EPA's RIA (docket item

II-F-2). EPA requests comment on the data presented in this table.

[[Page 1457]]

Table 14.--Characterization of Group 2 Boilers

--------------------------------------------------------------------------------------------------------------------------------------------------------

Population Nameplate capacity Size mean range Estimated uncontrolled

------------------------------------------------------------------------------ NOX

Boiler type -------------------------

(Units) Percent (MWe) Percent (MWe) (MWe) (Tpy) Percent

--------------------------------------------------------------------------------------------------------------------------------------------------------

Cell-burner..................................... 35 16 24,060 36 690 38-1,300 668,000 38

Cyclone......................................... 88 41 27,495 41 310 33-1,150 732,000 41

Wet-bottom \7\.................................. 38 18 8,576 13 226 29-544 277,000 16

Vertically Fired \8\............................ 29 13 4,612 7 159 50-254 97,000 5

Stoker.......................................... 21 10 1,083 2 52 32-79 3,000 0

FBC............................................. 6 2 889 1 148 75-194 2,000 0

Total........................................... 217 100 66,715 100 ........... ........... 1,779,000 100

--------------------------------------------------------------------------------------------------------------------------------------------------------

B. NOX Control Technologies for Group 2 Boilers

1. Available Group 2 Boiler NOX Control Technology

\7\ NOX controls for wet bottom boilers of any firing

design have to be designed to not perturb furnace temperatures and

thereby not disturb slag tapping capability. Thus from the

standpoint of NOX control, wet bottom boilers of all firing

designs, including wall-fired and vertically fired boilers, are

grouped in one category: wet bottom boilers. The wet bottom category

in the above table includes several firing configurations, viz., 20

front wall fired, 5 opposed wall-fired, 4 arch fired, 3 turbo fired,

and 6 roof fired.

---------------------------------------------------------------------------

EPA considers a NOX combustion modification technology to be

available for a type of Group 2 boiler if there exists at least one

full-scale demonstration or commercial application of that technology

on that type of boiler. Further, if a utility has successfully applied

a combustion control technology on a full-scale boiler of that type,

then that technology is also considered to be available. EPA considers

a NOX post-combustion control technology to be available for each

type of boiler if it has been demonstrated on any full scale boiler.\9\

Because these latter controls are applied downstream of the combustion

process, they do not affect combustion and can be applied to any boiler

type.

\8\ The dry bottom, vertically fired category includes the

following designs: 5 arch fired, 12 roof fired, 3 top fired and 13

vertically fired.

\9\ The manufacturer of cyclone boilers, in a recent letter to

EPA dated October 27, 1995, stated that a significant portion of

cyclone boilers in the US cannot achieve 50% reduction in NOX

emissions using coal reburn.

---------------------------------------------------------------------------

Shown in Table 15 are full-scale NOX control retrofits that

have been installed or will be installed in the very near future in the

U.S. Using the information in this table, the following NOX

control technology and Group 2 boiler type combinations are considered

to be available.

Plug-in and non plug-in combustion controls on cell burner

boilers.

Coal reburning on cyclone boilers.

Gas reburning on cyclone boilers.

Selective non-catalytic reduction (SNCR) on all coal-fired

boilers.

Selective catalytic reduction (SCR) on all coal-fired

boilers.

Combustion controls on wet bottom and vertically fired

boilers.

Table 15.--Group 2 Boiler NOX Control Technology Demonstrations and Commercial Retrofits

----------------------------------------------------------------------------------------------------------------

Number of

full-scale Retrofit

NOX control technologies Boiler type or size range

commercial (MWe)

retrofits

----------------------------------------------------------------------------------------------------------------

Plug-In Retrofits (Low NOX Combustion Cell-Burner........................... 7 555-780

Controls).

Non Plug-In Retrofits (Combustion Controls and Cell-Burner........................... 3 630-760

Wall Replacements).

Coal Reburning................................ Cyclone............................... 1 110

Gas Reburning................................. Cyclone............................... 2 33-114

SNCR.......................................... Cyclone............................... 1 138

Wet Bottom............................ 1 321

Vertically Fired...................... 1 100

SCR........................................... Cyclone............................... 1 320

Wet Bottom............................ 1 \10\ 80

(321)

Combustion Controls........................... Wet Bottom............................ 1 217

FBC................................... 6 75-194

Vertically Fired...................... 4 100-152

----------------------------------------------------------------------------------------------------------------

Note that no NOX control demonstrations were found for stoker

boilers covered under title IV of the Act.

\10\ SCR system was installed only in one of four ducts of the

321 MWe boiler, and only one quarter of the total unit's flue gas

volume passes through the SCR system (equivalent to 80 MWe).

---------------------------------------------------------------------------

2. Description of Group 2 Boiler NOX Control Technologies

Basic descriptions of the NOX control technologies that EPA

considers available for Group 2 boilers are provided in this section.

For more details on these technologies and their applications on Group

2 boilers, please refer to the Group 2 technical support document (see

docket item II-A-2, Investigation of Performance and Cost of NOX

Controls as Applied to Group 2 Boilers, pp. 3-1 to 3-36) and 57 FR

55648-49 (November 22, 1992). Additional information can be found in

site reports written by EPA personnel who inspected certain Group 2

boilers applying NOX control technologies (see docket items II-B-1

through II-B-6).

Combustion Controls for Cell Burner Boilers. In plug-in combustion

control retrofits, all existing cells in a furnace are replaced by

either low NOX burners or by using the existing cell burner

openings to install low NOX burners in combination with overfire

air ports. To date, these controls have been applied to two-nozzle cell

burners, and their

[[Page 1458]]

installation requires no modifications to boiler pressure parts and

only minor modifications to burner piping. EPA believes that this

technology can be modified and adapted to three-nozzle cell burner

configurations.

Non plug-in combustion control retrofits have been applied to all

types of cell burner configurations. With this approach, portions of

the furnace walls containing cells are replaced by new walls containing

low NOX burners or low NOX burners with overfire air. This

technology has been applied to both two-nozzle and three-nozzle cell

burner configurations and essentially converts the cell-burner firing

arrangement to a conventional wall-fired arrangement.

Reburning. Reburning is a low NOX combustion technology in

which part of the main fuel heat input is diverted to a location above

the main burners, thus creating a secondary combustion zone called the

reburn zone. Completion or overfire air (OFA) is added above the reburn

zone to complete the burnout of the reburn fuel. The reburn fuel can be

natural gas, pulverized coal, or oil. The arrangement of injection of

reburn fuel and OFA causes the reburn zone conditions to be sub-

stoichiometric. As flue gas passes through this sub-stoichiometric

zone, part of the NOX formed in the main combustion zone is

reduced by radical fragments and converted to molecular nitrogen. The

source for these radical fragments is the combustion gas from the

secondary, or reburning, fuel fired in reburn injectors or burners.

Selective Non-catalytic Reduction (SNCR). SNCR is a post-combustion

NOX control technology that injects a reducing agent (urea,

ammonia, or cyanuric acid) into the boiler's flue gas for NOX

control. The reducing agent reacts with NOX in the flue gas to

form molecular nitrogen and water. The SNCR reactions take place in a

temperature range of 1600 to 2100 deg.F.

Selective Catalytic Reduction (SCR). SCR is a post-combustion

NOX reduction process in which ammonia is added to the flue gas,

which then passes through layers of a catalyst. The ammonia and the

NOX react on the surface of the catalyst, forming molecular

nitrogen and water. The temperature window for SCR reactions is between

575 and 750 deg.F.

Combustion Controls for Vertically Fired, Wet Bottom, and FBC

Boilers. Combustion staging concepts are currently being applied at

vertically fired boilers (see docket items II-A-2, Investigation of

Performance and Cost of NOX Controls as Applied to Group 2

Boilers, p. 3-18; II-B-4; and II-B-6). Specifically, these concepts

involve redistributing coal and primary air flows to establish a

primary fuel rich zone and redistributing secondary air flow to create

a secondary fuel rich zone. Burnout is completed by providing staged

burnout air. A combustion staging system using two levels of overfire

air is being installed in the Fall of 1995 by a utility on a wet bottom

boiler (see docket items II-A-2, Investigation of Performance and Cost

of NOX Controls as Applied to Group 2 Boilers, p. 3-18; and II-D-

30). All the FBC boilers subject to section 407(b)(2) already have

combustion controls.

C. Statutory Requirements

Section 407(b)(2) of the Act requires the Administrator to set, by

January 1, 1997, annual emission limitations for NOX for units

with Group 2 boilers, i.e., wet bottom wall-fired boilers, cyclones,

units applying cell burner technology, and ``all other types of utility

boilers''. 42 U.S.C. 7651f(b)(2). The Administrator must base these

emission limitations on

the degree of reduction achievable through the retrofit application

of the best system of continuous emission reduction, taking into

account available technology, costs, and energy and environmental

impacts; and which is comparable to the costs of nitrogen oxides

controls set pursuant to [section 407] (b)(1). Id.

Section 407(b)(2) thus provides instruction to the Administrator

for setting Group 2 emission limitations based on what reductions can

be achieved by the best continuous control technologies. First, the

costs of the control technologies on which the Administrator bases

Group 2 emission limitations must be ``comparable'' to the costs of low

NOX burner technology as applied to Group 1 boilers. The statute

does not explain what is meant by ``comparable'' costs or how ``costs''

are to be measured. These matters are left to interpretation by the

Administrator in applying section 407(b)(2). See Chevron, U.S.A. v.

NRDC, 467 U.S. 837, ____ (1984). However, the legislative history

provides some assistance in the interpretation of the comparable-cost

requirement.

As explained by the Conference Report to the Clean Air Act

Amendments of 1990,

Section 407(b)(2) is intended to incorporate a portion of the

Senate Environment and Public Works Committee Report of December 20,

1989, S. Report 101-228, that the NOX emission control

technology requirements for cyclone boilers, roof-fired boilers,

wet-bottom boilers, stoker boilers and cell burners are to reflect

the relative difficulty of controlling NOX emissions from these

boilers. Emission limitations that are promulgated under section

407(b)(2) are to be based on methods that are available for reducing

emissions from such boilers that are as cost-effective as the

application of low nitrogen oxide burner technology to dry bottom

wall-fired and tangentially-fired boilers. House Rep. No. 101-952,

101st Cong., 2d Sess. at 344 (October 26, 1990).

The relevant portion of the Senate Report, which is referenced in

the Conference Report, discusses the cost-effectiveness and difficulty

of reducing NOX emissions, explaining that the Senate bill

intended:

To compel utilities to do no more than make most cost-effective

reductions. While in past years the Committee has reported

legislation that differentiated, and eased, the requirements imposed

on cyclone boilers, here the provisions also differentiates [sic],

and eases [sic], requirements for wet bottom and stoker boilers as

well. This reflects the relative difficulty of controlling NOX

for these technologies.

* * * Also favoring the cost-effectiveness of this section is

the development of new, lower-expense technologies. Sorbent

injection and decreasing costs for selective catalytic reduction

(SCR) may lower the expense of initial NOX reductions even

further. For example SCR has long been viewed as prohibitively

expensive, but recent dramatic declines in cost have brought the

per-ton-removed price of this technology down to as low as $600,

according to recent Electric Power Research Institute metholology

followed by EPA. This is comparable to the cost of conventional

control methods like low-NOX burners and thermal de-NOX

However, the provisions in this section are not intended to mandate

use of SCR or any other specific technology. Senate Rep. No. 101-

228, 101st Cong., 1st Sess. at 332-33 (December 20, 1989).

In short, the legislative history explains that comparability of

costs is to be determined by comparing the cost-effectiveness, measured

as costs per ton of NOX removed, of NOX control technologies

on Group 2 boilers with that of low NOX burner technology on Group

1 boilers. In addition, the Senate Report, which was expressly relied

on in the Conference Report, indicates that a control technology (SCR)

with a cost-effectiveness of $600 per ton of NOX removed was

regarded as having a cost comparable to that of low NOX burner

technology. At the time the Senate Report was issued, the cost of low

NOX burner technology was thought to be about $150 to $200 per ton

of NOX removed. Id. at 470.

In addition to the cost-comparability requirement, section

407(b)(2) requires that, in setting Group 2 emission limitations, the

Administrator must ``tak[e] into account available technology, costs

and energy and environmental impacts.'' 42 U.S.C. 7651f (b)(2). While

consideration of these factors is mandated, Congress did not specify--

and thus left to the Administrator's interpretation--how to

[[Page 1459]]

balance and apply these factors. In particular, the Administrator must

decide how to evaluate the factors and what relative weight to give

each factor.

D. Methodology for Establishing Group 2 Emission Limitations

In order to meet the requirements of section 407(b)(2), EPA is

using the following methodology for establishing Group 2 emission

limitations.

First, as detailed in Section III.B, EPA has taken the approach of

determining what NOX control technologies are available for each

category of Group 2 boilers and basing Group 2 emission limitations

only on such technologies. EPA has considered a combustion control

technology available for a Group 2 boiler category only if the

technology has been demonstrated on a full-scale boiler in that

category. Because post-combustion technology is applied downstream of

combustion hardware, a post-combustion technology was considered

available for any boiler type if it has been demonstrated on any full-

scale boiler.11 Further, EPA considers only technologies for which

there is reliable cost information on which to base a determination of

whether they are of comparable cost to LNBs.

\11\ See footnote 9.

---------------------------------------------------------------------------

Second, as detailed in Section III.E, EPA evaluated each

demonstrated control technology and estimated the dollar cost per ton

of NOX removed using the control technology on each boiler in the

Group 2 population that is in the appropriate Group 2 boiler category.

EPA then compared the dollar cost per ton of NOX removed for the

entire Group 2 population to the dollar cost per ton of NOX

removed for low NOX burners applied to the entire Group 1

population. In addition, EPA compared the dollar cost per ton of

NOX removed for each Group 2 boiler category (using the

appropriate control technology) with the dollar cost of NOX

removed with low NOX burners on Group 1 boilers. For technical

reasons discussed below, EPA chose to adopt a somewhat different cost

comparison methodology than the methodology outlined in Appendix B of

the March 22, 1994 Acid Rain NOX regulations (59 FR 13538, 13578

(March 22, 1994)).

Section 407(b)(1) requires the Administrator to set emission

limitations for Group 1 boilers (i.e., dry bottom wall-fired and

tangentially fired boilers) for Phase I and Phase II based on what

emission limitations can be achieved ``using low NOX burner

technology.'' 42 U.S.C. 7651(b)(1). Only if the Administrator

determines that ``more effective low NOX burner technology is

available'' may the Group 1 emission limitations under section

407(b)(1) be revised for boilers that first become subject to Acid Rain

SO2 and NOX emission limitations in Phase II. 42 U.S.C.

7651(b)(2).

In short, the NOX emission limitations set in section

407(b)(1) based on low NOX burner technology apply to all Group 1

boilers, whether they are first subject to limitations in Phase I or

Phase II. Any revisions to these emission limitations must also be

based on low NOX burner technology. EPA concludes that the

``nitrogen oxides controls set pursuant to section 407(b)(1)'' are low

NOX burner technology applied to all Group 1 boilers. Id. EPA

therefore believes that section 407(b)(2) requires that the costs of

the control technologies used to set emission limitations for Group 2

boilers be comparable to the costs of low NOX burner technology

applied to all Group 1 boilers.

By considering only Group 1, Phase I boilers that have reported low

NOX burner technology cost information, the methodology originally

specified in Appendix B eliminates over 90% of the Group 1 boilers from

the comparative analysis. This limitation, together with other

constraints in the methodology, results in a dataset only marginally

adequate for estimating NOX control costs in a manner consistent

with the intent of section 407(b)(2). The population pertinent to the

determination, under section 407(b)(2), of Group 1 boiler NOX

control costs is all Group 1 boilers employing or projected to employ

low NOX burner technology 12 to meet the section 407(b)(1)

emission limitations. That is the population EPA has used in the

proposed rule for establishing emission limitations for Group 2

boilers.

\12\ Consistent with the Appendix B methodology, boilers

employing low NOX burner technology installed prior to passage

of the Act were not considered.

---------------------------------------------------------------------------

The Appendix B methodology also specifies using the ``average cost-

effectiveness (in annualized $/ton NOX removed) of installed low

NOX burner technology applied to Group 1, Phase I boilers'' (60 FR

18776) as the basis for identifying comparably cost-effective Group 2

control technologies for the purposes of setting emission limitations

for Group 2 boilers. EPA discovered that, for distributions with broad

ranges, an analysis based solely on measures of central tendency (e.g.,

mean, median, mode, or ``average'') always neglects important

information about the spread and shape of the distribution. Based on

the actual data that became available in late 1995, EPA has determined

that the projected cost-effectiveness of low NOX burner technology

applied to Group 1 boilers, and the projected cost-effectiveness of

NOX control technologies applied to Group 2 boilers are such

distributions. The values range from $50/ton to over $1600/ton. Thus,

restricting the comparative analysis to the comparison of a single

measure of central tendency, such as the average value of the cost-

effectiveness of low NOX burner technology applied to Group 1

boilers, results in a substantial loss of information. Therefore,

rather than simply comparing averages, a more illuminating and

statistically defensible evaluation would be based on a comparison of

ranges of cost-effectiveness and percentages of boilers in each

distribution projected to experience similar cost-effectiveness.

EPA has adopted Appendix B when determining the capital cost (in $/

kW) of low NOX burners. However, considering the serious,

unanticipated limitations in the Appendix B methodology for estimating

and comparing NOX control cost-effectiveness (in $/ton) for Group

1 and Group 2 boilers, EPA has decided to include all Group 1 boilers

in the analysis and to broaden the original concept of ``average'' to

include ranges of cost-effectiveness and percentages of boilers in each

population projected to experience similar cost-effectiveness. As a

result, EPA proposes to delete Section 3 of Appendix B from part 76 and

make limited modifications to the remaining portions of Appendix B

consistent with the approach taken in today's proposal. EPA requests

comment on whether it should delete Section 3 of Appendix B from part

76 or follow Appendix B or otherwise modify Appendix B. Further details

on the rationale for expanding the original concept of ``averaging'' to

include ranges of cost-effectiveness and percentages of boilers

projected to experience similar cost-effectiveness can be seen in the

docket item II-A-7, Draft Report, Costs of Low NOX Burner

Technology Applied to Dry Bottom Wall-Fired and Tangentially Fired

Boilers, EPA Acid Rain Division, November 30, 1995.

EPA also seeks comment on the proper interpretation of the term

``comparable to the cost'' as used in section 407(b)(2). Specifically,

EPA is seeking comment on the appropriate approach for comparing

control technology costs for Group 1 boilers and Group 2 boilers,

pursuant to this section of the Act. Such comments should include both

the format of the cost which should be addressed (e.g., capital cost,

cost per unit of power, cost-effectiveness) and the procedure for

[[Page 1460]]

calculating the cost (e.g., data sources, mathematics, unit size

constraints etc.).

Based on the above-discussed statutory language and legislative

history, EPA maintains that it is reasonable to interpret the cost-

comparability provision to require that the distribution of costs per

ton of NOX removed for the Group 2 control technologies be

similar, but not necessarily equal, to the distribution of costs per

ton of NOX removed for low NOX burners as applied to Group 1

boilers.

Third, in Section III.E, EPA estimated the change in electricity

rates for consumers resulting from cost (in mills per kilowatt-hour)

associated with application of NOX controls on Group 2 boilers.

The Agency maintains that it is reasonable to interpret the required

consideration of ``costs and energy * * * impacts'' under section

407(b)(2) to involve the determination of the resulting effect of Group

2 boiler NOX controls on electricity consumers. 42 U.S.C. 7651f

(b)(2). In order to put the energy impact in perspective, EPA

determined the average percent change in electricity rates experienced

by consumers being served by utilities using Group 2 boilers due to the

establishment of emission limitations on Group 2 boilers. This value

was then compared to the percent change in nationwide electricity rates

due to the establishment of emission limitations for LNBs on Group 1

boilers.

Fourth, in Section III.F, EPA assessed the performance of each

cost-comparable Group 2 control technology. The assessment was based on

data from industry and government sources on the size of NOX

emission reductions achievable using the control technology on the

appropriate type of Group 2 boiler. Based on this data, EPA determined

the percentage NOX emission reduction that is reasonably expected

to be achieved.

The expected performance of the control technologies was considered

in setting an emission limitation for the relevant boiler type unless

EPA determined that, where a technology's performance was expected to

be significantly inferior to that of another appropriate technology,

the less effective technology was not ``the best system of continuous

emission reduction.'' 42 U.S.C. 7651f (b)(2). EPA applied each

technology's expected reduction percentage to data on the uncontrolled

emissions of each boiler that is in the particular category of Group 2

boilers and that will be subject to the Group 2 emission limitation. It

was then determined what percentages of that boiler population will be

able to achieve, on an individual boiler basis, a given set of possible

NOX emission limitations. The emission limitation that will be

achievable by approximately 90 to 95% of the boiler population was

selected as the emission limitation for that category of Group 2

boiler.

EPA chose to base the emission limitation on the emission rate that

a target of about 95% of the population will be able to meet. This

approach is more relaxed than that used in revising the Group 1

emission limitations because there is less data available on Group 2

boiler NOX controls. The approach, however, is analogous to the

approach used in setting NOX emission limitations under section

407(b)(1) for Phase I, Group 1 boilers. The same options (averaging and

alternative emission limitations) providing compliance flexibility for

Phase I, Group 1 boilers unable to meet emission limitations on an

individual boiler basis are available for all boilers under today's

rule. EPA, however, solicits comment whether the approach being used

for setting emission limitations for Group 2 boilers should be

consistent with that being used in revising Group 1 emission

limitations.

The Agency also assessed the total amount of NOX emission

reductions that may potentially be achieved through use of each

available, cost-comparable Group 2 control technology. The change in

levels of other pollutants that may result from such reductions were

also evaluated. This is a reasonable implementation of the requirement

under section 407(b)(2) that the Administrator take account of the

environmental impact of Group 2 control technologies.

Finally, after weighing the projected performance and energy and

environmental impacts of each available cost-comparable Group 2 control

technology, EPA established NOX emission limitations for Group 2

boiler types based on the appropriate control technologies.

E. Characterization of Costs

1. Low NOX Burners Applied to Group 1 Boilers

Determination of the cost per ton of NOX removed for the Phase

I low NOX burners was based on the cost data reported to EPA by 30

Group 1 units \13\ (22 wall-fired and 8 tangentially fired boilers).

The reported capital costs ($/kW) were analyzed incorporating cost

savings due to multiple retrofits at one plant. The resulting cost

functions ($/kW vs. MWe) were then levelized and added to estimated

annual operating and maintenance costs to arrive at total levelized

costs functions (mills/kWh vs. MWe). In arriving at these total costs,

the following assumptions were used: (1) a standard capital carrying

charge of 11.5%, (2) plant life of 20 years, and (3) a standard

operation and maintenance (O&M) cost, including fixed O&M cost of 1.5%

\14\ of the installed capital cost for annual maintenance and a

variable O&M cost accounting for a 0.27% loss in thermal efficiency for

retrofit of LNB on wall-fired boilers only. Further, tons of NOX

removed were calculated for each boiler using the correlation between

NOX reduction (percent) and uncontrolled NOX emission rate

(lb/mmBtu). Finally, a cost-effectiveness equation, as a function of

uncontrolled NOX emission rate and capacity factor, was derived

for the Group 1 LNBs. Note that all cost functions were computed in

1990 dollars in order to allow comparison of Group 1 and Group 2

control costs using dollars as of the enactment of the Clean Air Act

Amendments of 1990. Details of obtaining cost-effectiveness functions

for Group 1 LNBs can be found in (see docket items II-A-11, Capital and

Annualized Costs of Low NOX Burner Technology Applied to Phase I,

Group 1 Boilers; and II-A-12, Distributions of Cost Effectiveness by

Technology) and in EPA's Regulatory Impact Analysis (see docket item

II-F-2 ) of this proposed regulation.

\13\ A utility that wishes to submit cost information to augment

EPA's analysis should use EPA Form 76B-26, titled NOX Control

Costs for Group 1, Phase I Boilers.

\14\ EPA seeks comment on its use of assuming fixed O&M cost of

1.5% or using actual data as reported.

---------------------------------------------------------------------------

The cost-effectiveness function was then applied to each boiler in

the Group 1 population that was above 0.45 lb/mmBtu, for tangentially

fired boilers, or above 0.50 lb/mmBtu, for wall-fired boilers, taking

into account each boiler's actual usage and uncontrolled NOX

emission rate. Figure 3 shows the distribution of costs that the Group

1 boiler population experiences when applying LNBs.

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2. NOX Controls Applied to Group 2 Boilers

With regard to the cost per ton of NOX removed for each Group

2 control technology, EPA used the following procedure. Models for

Group 2 boiler type/available NOX control technology combinations

were created using information obtained from site visits to Group 2

boilers applying NOX controls, a major A&E firm's boiler database,

commercial applications, and published literature. EPA seeks comment on

the accuracy of this data and requests additional data. Using

information from the above sources, capital costs were estimated for

these models. Subsequently, using the same approach and assumptions

used in the levelization of Group 1 LNB costs, cost-effectiveness

equations as a function of uncontrolled NOX emission rate and

capacity factor were obtained for each Group 2 boiler type/available

NOX control technology combination. This cost analysis used a

modified EPRI class II approach (see docket item II-A-2, Investigation

of Performance and Cost of NOX Controls as Applied to Group 2

Boilers, p. 4-3). The details of estimates of costs of Group 2 boiler

NOX controls can be found in (see docket item II-A-2,

Investigation of Performance and Cost of NOX Controls as Applied

to Group 2 Boilers, p. 4-1 to 4-40) and in EPA's RIA (see docket item

II-F-2).

The capital costs developed for each technology case reflect costs

of retrofitting these technologies under expected site conditions at

typical Group 2 boiler installations. \15\ The following steps were

taken to ensure that the retrofit nature of these costs are properly

represented:

\15\ For example, in the SCR analysis EPA assumed a catalyst

space velocity equal to 4,900 hr-1 for achieving a 50% NOX

reduction.

---------------------------------------------------------------------------

A detailed equipment list was developed for each

technology application. This list identified all major new equipment as

well as modifications required to the existing plant equipment.

In developing the various cost estimates, allowances were

made for dismantling and removal of unwanted equipment.

Contingency allowances were provided to cover cost

increases associated with uncertain site factors and to cover any

unexpected costs associated with retrofitting of large equipment.

In developing cost estimates for each technology, costs

associated with non-standard (i.e., non-essential, or special case)

modifications to the existing plant equipment were also accounted for.

As a check, the costs thus developed were also compared and ensured

to be consistent with those incurred at existing demonstration or

commercial retrofits. It is important to note that retrofits at

demonstration projects are not necessarily the easiest possible ones.

For example, as noted in docket items II-D-28: Response to questions

regarding application of selective catalytic reduction (SCR) to wet-

bottom boilers, and to Public Service of New Hampshire's Merrimack 2

unit and II-B-6: Trip Report: visit to Merrimack Unit 2, SCR Retrofit,

Merrimack Generating Station, Bow, New Hampshire, June 14, 1995, the

SCR application at Merrimack 2 required significant ductwork.

The cost-effectiveness equations for Group 2 boiler/ available

NOX control technology combinations were then applied to each

boiler of the appropriate boiler population to arrive at cost-

effectiveness distributions for Group 2 boiler NOX controls. In

performing these computations, EPA assumed that only those boilers with

NOX emission rates above the applicable emission limits would

install technology. This assumption was made in order to provide a more

realistic picture of the cost-effectiveness distributions. The details

on the procedure for obtaining cost-effectiveness distributions can be

found in EPA's RIA.

3. Comparison of Group 2 Boiler NOX Control Costs to Low NOX

Burner Costs

As discussed above, in order to determine whether NOX control

technologies as applied to Group 2 boilers are comparable in cost to

low NOX burners as applied to Group 1 boilers, EPA determined the

cost-effectiveness of each of the NOX control technologies applied

to each boiler in the respective boiler populations. In determining

each boiler/control technology cost-effectiveness distribution, EPA

used each boiler's actual usage and uncontrolled NOX emissions.

Additionally, since in today's proposal EPA is exempting cyclone

boilers below 80 MWe, the exempted boilers are excluded from the cost

effectiveness distributions. Next, the distribution of overall cost-

effectiveness for Group 2 boiler NOX controls was compared to the

distribution of overall cost-effectiveness for Group 1 LNBs (see Figure

3). Figure 4 illustrates this comparison.

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The upper and lower 10 percent of each distribution shown in Figure

4 were then excluded in order to compare each distribution without the

influence of outliers. EPA determined that the costs for LNBs applied

to Group 1 boilers (with outliers removed) ranged from $121/ton to

$1,264/ton. The Group 2 NOX control costs (with outliers removed)

ranged from $71/ton to $710/ton. These ranges, tabulated in Table 16,

indicate that, excluding outlier, Group 2 boilers applying NOX

controls will experience costs within the range of costs experienced by

Group 1 boilers applying LNBs.

Further, EPA determined the range in costs resulting from the

application of each available NOX control technology on each Group

2 boiler type and LNB application on each Group 1 boiler type

separately. Subsequently, to provide additional support for cost

comparisons, the individual Group 2 boiler/NOX control technology

cost distributions were compared to the Group 1 boilers cost

distribution. Table 16 characterizes these cost distributions and the

percentage of each Group 2 boiler type population that are expected to

experience costs within the range of costs experienced by Group 1

boilers applying LNBs.

Table 16.--Distribution of Cost-Effectiveness of NOX Controls ($/Ton NOX Removed)

----------------------------------------------------------------------------------------------------------------

Percent

boilers

10th 90th below group

Boiler/NOX control technology percentile percentile Median 1 90th

percentile

cost

----------------------------------------------------------------------------------------------------------------

Group 1/LNBs................................................ 121 1264 403 NA

Group 2/NOX Controls........................................ 71 710 207 100

Cell Burners/Plug-ins....................................... 57 179 103 100

Cell Burners/Non Plug-ins................................... 75 228 129 100

Cyclones/Coal Reburning..................................... 311 897 492 100

Cyclones/Gas Reburning...................................... 371 728 555 100

Cyclones/SCR................................................ 379 895 574 100

Cyclones/SNCR............................................... 426 854 635 100

Wet Bottoms/Combustion Controls............................. 51 148 73 100

Wet Bottoms/SNCR............................................ 356 779 458 100

Verticals/Combustion Controls............................... 126 688 196 100

Verticals/SNCR.............................................. 651 1,400 831 79

FBCs/Combustion Controls.................................... 0 0 0 100

----------------------------------------------------------------------------------------------------------------

With one exception, each Group 2 boiler/NOX control technology

combination experienced costs within the range of costs for Group 1

boilers applying LNBs. After examining the cost comparisons presented

in this section, EPA determined that the following Group 2 boiler/

NOX control technology combinations are comparable in cost to

Group 1 LNBs:

Cell burner boilers applying either plug-in or non-plug-in

combustion controls.

Cyclone boilers applying coal reburning, gas reburning,

SCR, or SNCR.

Wet bottom boilers applying combustion controls or SNCR.

Vertically fired boilers applying combustion controls.

FBC boilers applying combustion controls.

As discussed below, DOE prepared an independent analysis concerning

cyclone boilers, based on different assumptions and data than those

used by EPA (see docket item II-D-62, Analysis of Proposed Section

407(b)(2) NOX Rule, Department of Energy, Staff Paper, December

14, 1995). In this analysis, DOE data for existing applications of LNBs

were used to project compliance costs for Group 1 boilers and the

results were compared to DOE's projections of cost and performance

estimates for SCR and other technologies for controlling NOX

emissions from cyclone boilers. Based on these comparisons, DOE

concluded that both cost per unit of electricity generated and cost-

effectiveness of controls for cyclone boilers appear to be several

times that of LNBs for Group 1 boilers (see docket item II-D-62,

Analysis of Proposed Section 407(b)(2) NOX Rule, Department of

Energy, Staff Paper, December 14, 1995). EPA requests comment on this

analysis.

In its development of costs for the application of gas reburning on

cyclone boilers, EPA used a gas-coal price differential of Sec. 1.23/

mmBtu (1990 dollars). EPA believes that this price differential is

similar to recent projections for the year 2010. However, the cost of

gas reburning is very sensitive to the gas-coal price differential

assumed in the analysis. If a differential of $1.00/mmBtu were assumed,

the cost-effectiveness would range from $295 to $588 per ton NOX

removed. Similarly, if a differential of $2.00/mmBtu were assumed, the

cost-effectiveness would range from $617 to $1,200 per ton NOX

removed. EPA solicits comment on the gas-coal price differential used

in the cost analysis of gas reburning.

Although EPA has not presented gas reburning applied to wet bottom

boilers, other than cyclones, in the above analysis, EPA is soliciting

comment on whether this NOX control technology as applied to this

boiler type is comparable in cost to low NOX burner technology and

meets the requirements under section 407 (b)(2).

EPA also assessed the energy impacts of Group 2 NOX controls

by determining the average percent change in electricity rates

experienced by consumers that are served by utilities operating Group 2

boilers due to the establishment of emission limitations for Group 2

boilers. The energy impact was an estimated 0.35 % increase in

electricity rates. EPA then determined the percent change in

electricity rates that the same consumers would experience due to the

establishment of emission limitations for LNBs on Group 1 boilers. The

energy impact due to the Group 1 controls was an estimated 0.36 %

increase in electricity rates. Comparing these two values, the energy

impacts of Group 2 controls are slightly less than the energy impacts

of Group 1 LNBs. (Values were derived assuming an average cost of

generating electricity equal to 40 mills/kWh.) This factor was weighed,

along with the other factors required to be considered used section

407(b)(2), in deciding what emission limitation to establish for each

Group 2 boiler category.

[[Page 1465]]

F. Emission Limits for Group 2 Boilers

1. Cell Burner Boilers

Performance of NOX Controls. Because plug-in and non plug-in

NOX combustion controls, applied to cell-burner boilers, meet the

cost-comparability requirement, the performance of these controls is

assessed to determine what performance standards are achievable. Table

17 shows various measurements and estimates of the percentage reduction

and controlled emission rates for plug-in and non plug-in NOX

controls on cell burner boilers.

Table 17.--NOX Reduction Performance for Available NOX Controls

--------------------------------------------------------------------------------------------------------------------------------------------------------

NOX control for cell-burner boilers

---------------------------------------------------------------------------------------------------------------------

Plug-in Non plug-in

Source ---------------------------------------------------------------------------------------------------------------------

Controlled emission Controlled emission

Percent reduction rate (lb/mmBtu) Percent reduction rate (lb/mmBtu)

--------------------------------------------------------------------------------------------------------------------------------------------------------

ETS Data:

J.M. Stuart #4................ 52.............................. 0.523 16

Muskingum #5.................. 52.............................. 0.541 16

Retrofit Applications:

Muskingum #5 (585 MWe)........ >50............................. 0.59 17

Stuart #4 (605 MWe)........... >50............................. 17

Hatfield's Ferry #2 (555 MWe). 50.............................. 0.58 17

Monroe #1 (780 MWe)........... 44.............................. 0.52 17

Sammis #6 (630 MWe)........... ................................ ...................... 65 (long term)..................... 0.32-0.47

Four Corners #4 (760 MWe)..... ................................ ...................... 40-58 (>70 of MCR 18).............. 0.49 (MCR)

Brayton Point #3 (500 MWe).... ................................ ...................... 70 (target)........................ NA

DOE............................... 50.............................. NA.................... 35-70 (LNB + OFA).................. NA

EPRI.............................. 40-53........................... NA.................... NA................................. NA

UARG.............................. 44-50 (short term).............. NA.................... NA................................. NA

50 (long term)..................

--------------------------------------------------------------------------------------------------------------------------------------------------------

ETS data shown in the above table suggest that plug-in controls on

cell burner boilers can achieve 52% NOX reduction from full-load,

over the long term. Non-plug-in burners, which essentially convert the

cell burner boiler to a conventional wall-fired boiler, are expected to

reduce NOX by over 50%, as illustrated in the above table. Boilers

that retrofit this NOX control technology become conventional

wall-fired boilers and can therefore emit at NOX levels below 0.45

lb/mmBtu (see section II). However, EPA has chosen to base the NOX

emission limitations on 50% NOX reduction. This conservative

approach is taken because there are only two boilers for which ETS data

are available and because, as shown in the above table, data from all

but one of the commercial applications and the bulk of information from

industry representatives and DOE suggest that overall, 50% NOX

reduction is attainable by plug-in burners.

\16\ Best 52-day controlled NOX emission rate, determined

per methodology outlined in Section II.

\17\ Full load short-term test.

\18\ MCR is the maximum continuous rating of a boiler

---------------------------------------------------------------------------

As shown in Table 17, the controlled emission rates obtained from

ETS are lower than the rates reported in literature for Stuart Unit #4

and Muskingum River Unit #5. This is a result of ETS data being long-

term as opposed to short-term full-load data that is the source of the

values reported in literature.

Industry commenters were concerned that cell burner boilers

retrofit with plug-in burners would have problems sustaining a certain

NOX emission rate over the course of a year. EPA has been informed

by the owner/operator of Muskingum River #5 that since the beginning of

1995, the boiler switched to firing low sulfur compliance coal without

re-optimizing the coal/air feed system. This caused flame detachment at

the burner, thereby increasing the NOX emissions to

0.7 lb/mmBtu. EPA believes that once this boiler is re-

optimized for the new coal, the NOX emissions will decrease to

previous levels. The owner/operator of Stuart #4 informed EPA that this

unit's NOX emissions increased in the Fall of 1994 and decreased

again to original levels after the Winter of 1994. EPA believes this

may be a result of coal composition temporarily influencing the

NOX emissions; this condition may therefore be corrected with

boiler re-optimization.

Achievable Emission Limit. Applying the projected 50% emission

reduction to the uncontrolled emissions of each boiler in the cell-

burner population for which NOX limits are to be set under section

407(b)(2), EPA determined how many of the boilers could achieve various

NOX performance standards. The following table shows the NOX

performance standards levels achievable by between 88.9% and 100% of

that cell-burner population.

Table 18

------------------------------------------------------------------------

Number Percent

of of

boilers boilers

NOX level (lb/mmBtu) meeting meeting

NOX NOX

level level

------------------------------------------------------------------------

0.79................................................. 35 100

0.73................................................. 34 97.1

0.68................................................. 33 94.3

0.67................................................. 32 91.4

0.65................................................. 31 88.6

------------------------------------------------------------------------

Table 18 indicates that 94% of the 36 cell burner boilers can

achieve a NOX controlled emission rate of 0.68 lb/mmBtu.

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Note that the proposed emission limit is greater than the

controlled emission rates shown in Table 17. EPA has calculated the

uncontrolled emission rates of cell burner boilers to be as high as

1.57 lb/mmBtu and on average 1.02 lb/mmBtu. The boilers shown in Table

17 (JM Stuart #4 at 1.11 lb/mmBtu and Muskingum River #5 at 1.12 lb/

mmBtu), though having uncontrolled emissions above the mean emission

rate of the cell burner population, are significantly lower than the

uncontrolled emission rates of some boilers. Since, as illustrated in

Figure 5, the emission limit is based on approximately 95% of the

population meeting it, the effect of the higher emitting boilers drives

the emission limit towards the high end of the controlled emissions

distribution.

Environmental Impacts. According to EPA's Regulatory Impact

Analysis, the establishment of 0.68 lb/mmBtu as the emission limit for

cell burner boilers will result in a total NOX emissions reduction

of 284,000 tons per year. As shown in the EPA's technical support

document, these reductions will be achieved without increases in other

air pollutants such as CO or SO2. In fact, applications to date

show a decrease in particulates by as much as 50% as a result of plug-

in and non-plug-in retrofits on cell burner boilers.

Additionally, in applications to date, there have been no increases

in unburned carbon (UBC) with the application of plug-ins on cell

burner boilers. For boilers with non plug-in retrofits, an increase in

UBC has been observed. This increase is similar to, or lower than,

increases in UBC observed in dry bottom wall-fired boilers retrofitting

LNBs. Additionally, the EPA has identified vendors of technology that

lowers unburned carbon levels from boilers by optimizing the combustion

process (see docket item II-D-15). Further, one vendor provides

technology that removes unburned carbon from the flyash (see docket

item II-D-13). This process splits the flyash into two parts, one high

in carbon and one very low in carbon. The high carbon flyash can be re-

combusted in the boiler, while the low carbon flyash can be sold to

cement companies. The economic impact of installing such technologies

is negligible, compared to the benefits of selling flyash and not

needing to dispose of it.

Issues Raised. Applicable Emission Limit. EPA investigated whether

boiler operating conditions after January 1, 1995 affected the

controlled NOX emission rate, using CEM measured data submitted to

EPA's Emissions Tracking System (ETS). To date, no substantial

differences between NOX emission rates before and after January 1,

1995, have been observed. EPA believes that the utilities can receive

NOX emission guarantees for various coal types from manufacturers

of NOX control equipment. The manufacturers of control equipment

appear to design for a certain controlled NOX emission rate taking

into account various coal types.

Increased Boiler Corrosion. EPA also investigated whether the

application of combustion NOX controls on cell burner boilers

would cause corrosion or erosion of furnace walls. These impacts could

affect costs associated with such retrofits. However, major vendors of

plug-in and non plug-in combustion controls on cell burners (Babcock &

Wilcox and Riley Stoker), as well as utilities, have not found

significant corrosion and erosion problems associated with applications

of this technology to date.

Conclusions. For the following reasons, EPA concludes that 0.68 lb/

mmBtu is a reasonable emission limitation that meets the requirements

of section 407(b)(2). First, plug-in burners applied to cell burner

boilers are an available control technology that meets the cost-

comparability requirement. Second, a second available control

technology, non plug-in retrofits, also meets the cost-comparability

requirement. This technology can be applied to 3-cell configurations if

plug-ins are not effective. Because it is capable of greater NOX

reduction efficiency than plug-ins, it can meet the 0.68 lb/mmBtu

emission limit. Third, an emission limit of 0.68 lb/mmBtu is achievable

in that it can be met by 94% of the cell burner population with the

application of plug-in or non plug-in burners at a 50% NOX removal

efficiency. ETS data for two cell-burner boilers that have already

installed such controls were at or below this limit 94% of the time

they were operated. Fourth, as shown in section III.E, the energy

impact, i.e. the cost impact on electricity consumers, of using the

available control technologies to meet the recommended emission limit

is small and similar in magnitude to the energy impact of using LNBs on

Group 1 boilers. Finally, the recommended emission limit results in a

reduction of NOX emissions by approximately 284,000 tons per year

(see Regulatory Impact Analysis, docket item II-F-2) without increases

in CO, CO2, SO2, or solid waste and with potentially a 50%

decrease in particulates. As discussed in section II.D, there are

substantial human health and environmental benefits associated with the

additional NOX reductions and meeting the proposed emission

limitation is a cost-effective means of achieving such reductions.

2. Cyclone Boilers

Performance of NOX Controls. Four NOX control

technologies that are available for application to cyclone boilers meet

the cost comparability requirement: (1) Coal reburning, (2) gas

reburning, (3) SCR, and (4) SNCR. Since EPA must base the emission

limitation on the ``best system of continuous emission reduction'' per

section 407(b)(1), and as shown in the Technical Support Document, the

expected NOX removal capability of SNCR is approximately 35%,

lower than the percent reduction of the other technologies available

for cyclone boilers, EPA is not considering SNCR in establishing the

emission limitation for cyclone boilers.

Table 19 shows measurements and various estimates of the percent

reduction and controlled emission rates for coal reburning, gas

reburning, and SCR on cyclone boilers. EPA also believes that

combustion control and combustion optimization approaches may also

achieve cost-effective, significant NOX reductions. However, these

control approaches have not yet been thoroughly investigated by the

utility community.

[[Page 1468]]

Table 19.--NOX Reduction Performance for Available NOX Controls

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

NOX Control for cyclone boilers

----------------------------------------------------------------------------------------------------------------------------------------------------------------

Coal reburning SCR Gas reburning

Source ----------------------------------------------------------------------------------------------------------------------------------------------------------------

Controlled

Percent reduction Controlled emission Percent reduction emission rate Percent reduction Controlled emission rate (lb/

rate (lb/mmBtu) (lb/mmBtu) mmBtu)

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Retrofit Applications:

Nelson Dewey 2 (110 MWe)... 52.4-55.4 (MCR).............. 0.34-0.39.......... ............................. ............... ............................. ............................

Merrimack 2 (320 MWe)...... ............................. ................... 65 (target).................. NA............. ............................. ............................

Niles 1 (108 MWe).......... ............................. ................... ............................. ............... 50 (long term)............... 0.58-0.67 (approx.)

Lakeside 7 (33 MWe)........ ............................. ................... ............................. ............... 66 (long term)............... 0.344

DOE........................ 40-60 \19\................... NA................. 80-90........................ NA............. 55-65........................ NA

EPRI (based on retrofits)...... 50-55 (MCR).................. NA................. 65 (MCR, target)............. NA............. 50-60 (MCR).................. NA

UARG (based on retrofits)...... 55-60 (MCR), 33-50 (loads NA................. 65 (target).................. NA............. 40 (long term, >75% MCR), 47% NA

down to 35% MCR). (MCR).52-77 (short term,

>70% MCR).

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

EPA believes that 50% NOX reduction from full-load values can

be achieved by coal reburning and SCR 20 controls over the long

term. This represents the average of the range in performance expected

by DOE. A 50% NOX reduction is also on the conservative end of the

performance range achieved over the long term at the only demonstration

project, and is on the lower end of performance projections by utility

groups.

\19\ This range reflects use of different coal types,

specifically at Nelson Dewey 2, 55.4% NOX reduction at 110 MWe

using subbituminous coal and 35.8% NOX reduction at 60 MWe

using bituminous coal.

\20\ Of the three technologies, SCR allows the user to design

for various levels of performance ranging as high as 90% NOX

reduction. However, increases in performance are directly

proportional to increases in cost. For the purposes of this rule,

and to more accurately compare SCR with coal and gas reburning, the

NOX reduction performance of SCR is set at 50%.

---------------------------------------------------------------------------

Gas reburning is expected to reduce NOX emissions by 60%. This

value is about the average of the range of performance at the two

existing gas reburning projects and the overall range of DOE and EPRI

performance estimates. The lower reduction percentages suggested by

UARG reflect boiler operation at lower than full loads.

Some industry commenters have expressed concerns that applications

of coal or gas reburning on some cyclone boilers may not achieve 50% or

60% NOX reductions, respectively. EPA solicits comment from

vendors and utilities on the performance of these NOX control

technologies.

Additionally, information recently obtained by EPA from a utility

that attempted to optimize the combustion process in cyclone boilers,

shows that reductions in the order of 10%-20% can be achieved by

optimizing fuel and air flows to cyclones. EPA solicits comment from

vendors and utilities on the applicability of combustion modification

and optimization techniques that lower NOX emissions from cyclone

boilers.

Achievable Emission Limit. For the purposes of applying a NOX

emission limitation to cyclone boilers, EPA chose 50%, a conservative

reduction percentage considering the performance level of the three

qualifying technologies. Applying the projected 50% emission reduction

to the uncontrolled emissions of each boiler over 80 MWe in the cyclone

population for which NOX limits are to be set under section

407(b)(2), EPA determined how many of the boilers could achieve various

NOX emission levels. The following table shows the NOX

emission levels achievable by between 89.3% and 100% of the cyclone

boiler population.

Table 20

------------------------------------------------------------------------

Number Percent

of of

boilers boilers

NOX level (lb/mmBtu) meeting meeting

NOX NOX

level level

------------------------------------------------------------------------

0.98................................................. 75 100

0.97................................................. 73 97.3

0.94................................................. 70 93.3

0.86................................................. 68 90.7

0.85................................................. 67 89.3

------------------------------------------------------------------------

Table 20 indicates that 93% of the 75 cyclone boilers can achieve a

NOX controlled emissions rate of 0.94 lb/mmBtu.

BILLING CODE 6560-50-P

[[Page 1469]]

[GRAPHIC][TIFF OMITTED]TP19JA96.005

BILLING CODE 6560-50-C

[[Page 1470]]

Note that the proposed emission limit is greater than the

controlled emission rates shown in Table 19. The boilers shown in Table

19 have uncontrolled emissions significantly lower than the

uncontrolled emission rates of some boilers. Since, as illustrated in

Figure 6, the emission limit is based on approximately 95% of the

population meeting it, the effect of the higher emitting boilers drives

the emission limit towards the high end of the controlled emissions

distribution.

Environmental Impacts. According to EPA's Regulatory Impact

Analysis, the establishment of 0.94 lb/mmBtu as the emission limitation

for cyclone boilers will result in additional NOX emissions

reductions of approximately 167,000 tons

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Acid Rain Program; Nitrogen Oxides Emission Reduction Program · 61 FR 1442 | Frix