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April 17, 2014

EPA Issues Final Boiler MACT Rules

On February 23, 2011, following ten years of litigation, the U.S. Environmental Protection Agency (“EPA”) released scaled-back air emission rules for industrial boilers and solid waste incinerators. EPA received over 4,800 public comments after it released proposed boiler and incinerator rules in April 2010, and EPA estimates that the cost to industry to implement the scaled-back rules will be approximately $1.8 billion - half the estimated $3.6 billion cost of complying with the originally proposed rules.

The recently released final rules address hazardous air pollutant (“HAP”) emission standards for industrial, commercial and institutional boilers and process heaters (the Boiler Maximum Achievable Control Techcnology or "Boiler MACT" rule) and commercial and industrial solid waste incineration units (the “CISWI” rule). Industrial boilers and process heaters burn fuels such as natural gas, biomass, coal and oil to produce heat or electricity; CISWIs burn solid waste.

EPA issued the final rules after a federal district court last month denied EPA’s request to further postpone their issuance for an additional fifteen months, and instead extended the court-imposed deadline (originally set at December 15, 2007 and subsequently extended multiple times) for one month – to February 21, 2011. The final Boiler MACT rule affects numerous industries, including paper mills, refineries, and chemical and manufacturing plants.

The Boiler MACT rules create emission limits for mercury, particulate matter and carbon monoxide for all new coal-fired boilers with heat input greater than 10 million Btu per hour and particulate matter emission limits for new biomass and oil-fired boilers. New boilers with heat input below 10 million Btu per hour will be required to undergo a boiler tune-up every two years. For existing boilers, the new rules create emission limits for mercury and carbon monoxide only for coal-fired boilers with input greater than 10 million Btu per hour. EPA did not establish emission limits for other existing boilers. Instead, those boilers must undergo a tune-up every two years.

Industrial boilers at major sources (those facilities that emit ten or more tons per year of a single air toxic or twenty-five or more tons per year of any combination of air toxics) are subject to emission limits for five different HAPs: mercury, dioxin, particulate matter, hydrogen chloride and carbon monoxide. The only exceptions for major source boilers are for natural gas and other “clean fuel” burning boilers and those boilers with heat input capacity below 10 million Btu per hour.

The new CISWI rule sets New Source Performance Standards and emission guidelines for 88 specific commercial and industrial solid waste incineration units. The CISWI rule establishes emission limits for mercury, lead, cadmium, hydrogen chloride, particulate matter, carbon monoxide, dioxin/furans, nitrogen oxides and sulfur dioxide. The affected incinerator units must come into compliance with the new limits by February 2016, at the latest. 

The fate of this latest final rule package is uncertain, considering EPA expressed doubt that itcould issue defensible boiler and incinerator rules when it sought an additional fifteen month extension from the federal district court. However, EPA announced that it intends to begin the formal process of reconsidering these final rules, with additional details of the reconsideration process to be released in the near future.

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linda h, bochert, partner, michael best law firm
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As a partner in the firm’s Land and Resources Practice Group, Linda Bochert helps her clients establish and maintain effective working relationships with state and federal environmental regulatory agencies. She serves in various policy advisory roles to state agencies, including the Wisconsin Departments of Natural Resources, Agriculture and Revenue. Her clients benefit from her unique understanding of the workings of regulatory agencies and her ability to develop mutually beneficial solutions to regulatory issues. Ms. Bochert also co-chairs our firmwide Sustainability Initiative.

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David A. Crass agribusiness law attorney Michael best Law Firm
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David Crass is chair of the firm's Agribusiness, Food Processing and Distribution Group, a leader in the firm's Renewable Energy practice and a member of the firm’s Management Committee. Mr. Crass has served as the Managing Partner of the firm's Madison Office (2005-2008) and as chair of the firm's Land and Resources Practice Group (2003-2005). He focuses his practice primarily in the areas of environmental and energy law, climate change counseling, agricultural and food industries and renewable energy project development. Mr. Crass has represented clients in a...

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raymond r. krueger, partner, environmental law, michael best law firm
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Ray Krueger has been a part of environmental law for 30 years. He practices with the Land & Resources group, which consists of environmental, real estate, construction and land use, as well as the Renewable Energy/Climate Change and Economic Stimulus teams. He is one of the founders of the Climate Change practice. He has counseled clients, negotiated settlements, litigated cases and lectured on many different environmental subjects over the years.

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Michael P. Screnock Michael Best Friedrich LLP
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Michael Screnock is an associate in the Madison office and a member of the Land and Resources Practice Group. Drawing from a vast municipal government background, Mr. Screnock’s practice focuses primarily on land use, environmental and regulatory matters. Mr. Screnock represents clients before the Public Service Commission in matters relating to public utility ratemaking. He also represents clients before other state and federal agencies with respect to permitting, licensing and regulatory matters. Mr. Screnock’s practice also includes client representation in commercial real...

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Anna J. WIldeman Michael Best Friedrich Attorney Law Firm
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Anna Wildeman is a member of the Land and Resources Practice Group and the Agribusiness, Food Processing & Distribution Group in the Madison office. Her practice focuses on environmental, administrative and energy law, issues related to climate change, agriculture and renewable energy. Ms Wildeman has assisted both buyers and sellers in assessing environmental issues in real estate and corporate transactions and has been actively involved in securing state and local permits for a number of projects throughout Wisconsin.

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