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March 6, 2009 |
Schiff Hardin Environmental Update On March 5, 2008, the Environmental Protection Agency ("EPA") proposed to address emissions of hazardous air pollutants ("HAPs") and particulate matter ("PM") from stationary internal combustion engines used to generate electricity and power equipment at factories and other facilities. (74 Fed. Reg. 9698). Examples of regulated entities include sources using stationary internal combustion engines, including very small engines, to provide electric power generation, natural gas transmission, crude petroleum production, and natural gas production. EPA is proposing national emissions standards for hazardous air pollutants ("NESHAP") for existing stationary reciprocating internal combustion engines ("RICE") that either (1) are located at area sources1 of HAPs or (2) that have a site rating of less than or equal to 500 brake horsepower and are located at major sources of HAPs.2 In addition, EPA is proposing NESHAPs for stationary compression ignition engines that have a site rating greater than 500 brake horsepower that are located at major sources of HAPs. EPA is also proposing to amend the previously promulgated RICE NESHAP to include emissions standards during periods of startup, shutdown and malfunction. According to EPA, the proposed rule would reduce emissions of several HAPs, including formaldehyde, benzene and acrolein. The rule would require compliance during both normal operation and periods of startup and malfunction through emissions standards and the installation and operation of "aftertreatment," or emissions control devices:
In addition, stationary diesel engine operators would be required to burn ultra-low sulfur diesel fuel in engines with greater than 300 brake horsepower. Most engine operators would be required (1) to perform emissions tests to demonstrate engine performance and compliance with rule requirements, (2) to comply with management practices intended to ensure that the emissions control systems are working properly, and (3) continuously monitor and record certain operating parameters. EPA estimates the proposal would impose capital costs nationwide of approximately $528 million in 2013 and a compliance cost nationwide of $345 million in 2013. EPA will take comments on the proposal, which must be received by EPA on or before May 4, 2009. Comments should be labeled with Docket ID No. EPA-HQ-OAR-2008-0708, and may be submitted at http://www.regulations.gov, the federal electronic rulemaking portal. RECENT ENVIRONMENTAL PUBLICATIONS "Court Orders Tennessee Valley Authority to Install and Operate Pollution Controls at Power Plants Estimated to Cost $1 Billion," Environmental Update (January 16, 2009) ABOUT SCHIFF HARDIN LLP Schiff Hardin's diverse environmental practice advises clients engaged in a wide variety of industries and commercial endeavors such as electric generation, natural gas distribution and production, chemical manufacturing, auto and auto parts manufacturing, consumer goods manufacturing, real estate development and investments by financial institutions and equity investors. For more information, contact us. 1 An area source of HAP emissions is a source that is not a major source. 2 A major source of HAP emissions is a stationary source that emits or has the potential to emit any single HAP at a rate of 10 tons or more per year or any combination of HAPs at a rate of 25 tons or more per year, except that for oil and gas production facilities, major source determinations are site-specific. |