BEFORE THE ILLINOIS POLLUTION CONTROL BOARD
    IN THE MATTER OF:
    NITROGEN OXIDES EMISSIONS FROM
    VARIOUS SOURCE CATEGORIES:
    AMENDMENTS TO
    35 ILL. ADM. CODE
    PARTS
    211 AND 217
    )
    ) R08-19
    ) (Rulemaking - Air)
    )
    )
    )
    NOTICE OF FILING
    TO:
    Mr. John
    T.
    Therriault
    Assistant Clerk
    of the Board
    Illinois Pollution Control Board
    100
    w.
    Randolph Street
    Suite 11-500
    Chicago, Illinois 60601
    therriaj@ipcb.state.iLus
    (VIA
    ELECTRONIC FILING)
    Timothy Fox, Esq.
    Hearing Officer
    Illinois Pollution Control Board
    100
    W. Randolph Street
    Suite 11-500
    Chicago, Illinois 60601
    foxt@ipcb.state.iLus
    (VIA
    ELECTRONIC MAIL)
    (SEE PERSONS
    ON ATTACHED SERVICE LIST)
    PLEASE TAKE NOTICE that I have today filed with the Office
    of the Clerk of the
    Illinois Pollution Control Board POST-HEARING COMMENTS FOR THE ILLINOIS
    ENVIRONMENTAL PROTECTION AGENCY SUBMITTED BY ARCELORMITTAL
    USA, INC. a copy of which is herewith served upon you.
    Dated:
    "2, 1;).3
    I~
    Christina L. Archer
    Associate General Counsel
    ARCELORMITTAL USA, INC.
    1 South Dearborn,
    19
    th
    Floor
    Chicago, Illinois 60603
    (312) 899-3865
    Respectfully submitted,
    By:
    G\~L)~k
    Christina L. Archer
    THIS FILING SUBMITTED ON RECYCLED PAPER
    Electronic Filing - Received, Clerk's Office, March 23, 2009
    * * * * * PC # 10 * * * * *

    CERTIFICATE OF SERVICE
    I, Christina L. Archer, the undersigned, hereby certifY that I have served the attached
    POST-HEARING COMMENTS
    FOR THE ILLINOIS ENVIRONMENTAL PROTECTION
    AGENCY SUBMITTED
    BY ARCELORMITTAL USA, INC. upon:
    Mr. John T. Therriault
    Assistant Clerk of the Board
    Illinois Pollution Control Board
    100 West Randolph Street, Suite 11-500
    Chicago, Illinois 60601
    therriaj@ipcb.state.il.us
    Gina Roccaforte, Esq.
    John Kim, Esq.
    Division
    of Legal Counsel
    Illinois Environmental Protection Agency
    1021 North Grand Avenue East
    Post Office Box 19276
    Springfield, Illinois 62794-9276
    Gina.Roccaforte@illinois.gov
    John.Kim@illinois.gov
    Kathleen
    C. Bassi, Esq.
    Stephen J. Bonebrake, Esq.
    Schiff Hardin, LLP
    6600 Sears Tower
    233 South Wacker Drive
    Chicago, Illinois 60606-6473
    kbassi@schiffhardin.com
    sbonebrake@schiffhardin.com
    Mathew
    J. Dunn, Esq.
    Chief, Environmental Bureau North
    Office
    of the Attorney General
    69 West Washington Street, Suite 1800
    Chicago, Illinois 60602
    mdunn@atg.state.il.us
    by electronic mail on
    ':::'
    I
    d:)
    J '"
    q
    Timothy Fox, Esq.
    Hearing Officer
    Illinois Pollution Control Board
    100 West Randolph, Suite 11-500
    Chicago, Illinois 60601
    foxt@ipcb.state.il.us
    Katherine Hodge, Esq.
    Monica Rios, Esq.
    Hodge Dwyer
    &
    Driver
    3150 Roland Avenue
    PO Box 5776
    Springfield, Illinois 62705
    khodge@hdzlaw.com
    mrios@hdzlaw.com
    Virginia Yang. Esq.
    Deputy Legal Counsel
    Illinois Department
    of Natural Resources
    One Natural Resources Way
    Springfield, Illinois 62701-1271
    Virginia. Yang@illinois.gov
    Alec M. Davis, Esq.
    General Counsel
    Illinois Environmental Regulatory Group
    215 East Adams
    Street
    Springfield, Illinois 62701
    adavis@ierg.org
    Christina
    1.
    Archer

    BEFORE THE ILLINOIS POLLUTION CONTROL BOARD
    IN THE MATTER OF:
    NITROGEN OXIDES EMISSIONS FROM
    VARIOUS SOURCE CATEGORIES:
    AMENDMENTS TO
    35 ILL. ADM. CODE
    PARTS
    211 AND 217
    )
    ) R08-19
    ) (Rulemaking - Air)
    )
    )
    )
    POST-HEARING COMMENTS FOR THE ILLINOIS ENVIRONMENTAL
    PROTECTION AGENCY SUBMITTED BY ARCELORMITTAL USA, INC.
    These comments are respectfully submitted as a follow-up to the Pre-Filed Comments for
    the Illinois Environmental Protection Agency (Illinois EPA or Agency), filed on November 25,
    2008, by ArcelorMittal USA Inc. on behalf
    of ArcelorMittal Riverdale Inc. (ArcelorMittal), as
    additional comments following several rounds
    of hearings in this matter and based on informal
    discussions with the Agency. ArcelorMittal's Riverdale, Illinois facility has a permitted roller-
    hearth tunnel furnace equipped with ultra-low
    NOx burners (ULNBs), which processes thin cast
    steel slabs. ArcelorMittal previously demonstrated that the tunnel furnace cannot
    be considered
    as a reheat, annealing, or galvanizing furnace. At this time, ArcelorMittal reiterates that based
    on the applicability provisions provided in the proposed regulation at
    35 IAC 217.150, the tunnel
    furnace is not subject to this rulemaking. With these comments, ArcelorMittal asserts that the
    implementation
    of additional NOx controls is technologically infeasible and economically
    unreasonable.
    On March
    19, 2009, the Agency filed a Motion to Expedite with the Illinois Pollution
    Control Board (Board) requesting that the Board proceed quickly
    to First Notice in this matter
    because
    of the looming possibility of sanctions from the United States Environmental Protection
    Agency (U.S. EPA). While ArcelorMittal does wish to delay this rulemaking or have the State

    face sanctions, we can only support the legal implementation of Ozone Reasonably Available
    Control Technology (RACT) requirements that do not impose additional and unneeded burdens
    on Illinois manufacturers. Illinois and Cook County have been losing manufacturing jobs at an
    alarming rate to global competitors with less costly regulatory environments. In the current
    economic climate, it is not in the interest
    of Illinois to increase regulatory burdens. This is
    particularly true when actual monitoring data indicate that the Chicago area will achieve
    attainment to the applicable 1997 Ozone standard without imposing such burdens as proposed by
    R08-19. The Illinois EPA intends to request that U.S. EPA re-designate the Chicago area to
    attainment
    of the 1997 8-hour Ozone National Ambient Air Quality Standards (NAAQS) based
    on ambient monitoring data from 2006 through 2008. Trends in air quality monitoring data for
    Illinois and the Chicago area, plus
    "on the book" controls hold promise for the re-designation
    and maintenance of the Chicago area to attainment without installing additional NOx RACT
    controls. Our comments respectfully request Illinois EPA reconsider the economic impact and
    cost reasonableness for arbitrarily setting lower NOx emission standards, consider reducing its
    economic impact on Illinois and that the Board act prudently on such a proposal, especially in
    Chicago where the area is meeting the 1997 Ozone standards that
    R08-l9 is intended to improve.
    1.
    A review of potentially applicable NOx emission control technologies reveals
    technical infeasibility due to both operational and product quality issues. ArcelorMittal reviewed
    the Technical Support Document (TSD) for Control
    of Nitrogen Oxide Emissions from Industrial,
    Commercial, and Institutional (ICI) Boilers and Small Electric Generating Unit (EGU) Boilers,
    Process Heaters, Cement Kilns, Lime Kilns, Reheat, Annealing, and Galvanizing Furnaces used
    at Iron and Steel Plants, Glass Melting Furnaces, and Aluminum Melting Furnaces, AQPSTR 07-
    02, March 2008, prepared by Andover Technology Partners and the Illinois EPA. Appendix
    21

    of the TSD lists ten individual emission units within the steel industry that are currently applying
    NOx controls; however, none
    of these units are similar to tunnel furnaces. Changing tunnel
    furnace burner configuration or using unproven technologies has the potential to harm or
    irrepaI"ably affect slab quality, as there is no evidence to support successful continued use
    without compromise
    of product requirements.
    There are three broad categories
    of NOx emission reduction techniques: add-on or post-
    combustion controls, process controls and pre-process controls. Add-on controls treat flue gases
    to remove already formed NOx, process controls include combustion modifications which rely
    on inhibiting the formation
    of NOx in the production process, and pre-process controls
    principally focus on product (or fuel) substitution. ArcelorMittal
    is aware that other steel mills
    have attempted
    to utilize add-on controls. Although add-on controls typically provide the
    highest potential level
    of NOx reduction, they can only be applied on selective exhaust streams.
    These streams must typically consist of steady state conditions with little or no variation in
    stream characteristics (such as temperature and oxygen content). Outside
    of these ranges, the
    technologies are either ineffective or greatly compromised, sometimes resulting in the creation
    of
    . additional emissions or new air pollutants. The application of Selective Catalytic Reduction
    (SCR) technology at another steel mill furnace proved to be technically infeasible in practice.
    The application caused changes in the furnace operating characteristics, such as generation
    of
    varying back pressures, heat flows, and eddy channels, all of which negatively impacted slab
    quality. Additionally, it was also fonnd that either the SCR must be by-passed or a significant
    loss
    of NOx reduction efficiency (and dramatic increase in ammonia slip) will occur during
    different slab runs, idle times, hot-standby, start-up and shutdown, etc. Based on the reduced
    oxygen content
    of the tunnel furnace operation, exhaust temperatures, amongst other parameters,

    add-on NOx controls are not feasible for retrofit. Importantly, the Agency has already testified
    that it would be surprised
    if sources were required to install post-combustion controls to achieve
    the proposed emission limits.
    See R08-19, Transcriptfrom October 14,2008 hearing, pp. 27,
    116-117, 171.
    Process controls include Flue Gas Recirculation (FGR), low NOx burners (LNBs) and
    ULNBs. As previously stated, ArcelorMittal's tunnel furnace
    is equipped with ULNBs. FGR
    can be applied alone or in combination with other controls, but when applied with other controls
    it
    is typically used in conjunction with LNBs, not ULNBs. Due to a steel mill furnace chamber
    design and operation, FGR cannot be applied with ULNBs.
    If applied with LNBs, the NOx
    reduction efficiency is either equal to or less than the use
    of ULNBs alone. Since ULNBs are
    already used in the tunnel furnace, the application
    of the other burner and FGR options would
    not result in a reduction
    of NO x emissions.
    Pre-combustion controls mainly concern fuel switching. ArcelorMittai already fuels the
    tunnel furnace with pipeline grade natural gas, therefore, no other fuel sources for this type
    of
    operation are known to further reduce the formation ofNOx.
    2.
    Illinois EPA anticipates a NOx reduction of 60% from ArcelorMittal's tunnel
    furnace. The Agency allegedly developed this limit based on the RACT provisions which apply
    to existing sources in areas that are not attaining the NAAQS. However, as previously described
    in this rulemaking, the U.S. EPA considers emissions reductions
    of 30% to 50% sufficient to
    meet NOx RACT.
    See R08-19, Transcript from December
    9,
    2008 hearing, pp. 84-85
    (referencing
    70 Fed. Reg.
    71657,
    Hearing Exhibit
    6). Simply put, RACT is based on the
    implementation
    of "reasonable" controls. As indicated by the August 29, 2008 Pre-Filed
    Testimony
    of Robert Kaleel, Manager ofthe Air Quality Planning Section in the Bureau of Air at

    the Illinois EPA, "RACT is defmed as the lowest emission limitation that a particular source can
    meet by applying a control technique that is reasonably available considering teclmological and
    economic feasibility."
    See R08-19, Pre-Filed Testimony o/Robert Kaleel, August 29,2008, p. 2.
    The resultant emission rate by the application of RACT may be different for each source.
    However, there
    is no pollutant tonnage reduction that represents RACT, rather a control method
    application and resultant emission rate (i.e., lbslhr or
    Ibs/mmBtu)
    reduction. The ULNB
    technology that
    is typically considered to represent RACT is already in use at ArcelorMittaL
    ArcelorMittal currently utilizes Bloom Engineering Series 1430 ULNBs. Based on
    previous oral conversations between ArcelorMittal and Illinois EPA, the Agency has requested
    that ArcelorMittal pursue the installation
    of "next generation" ULNBs.
    To this effect,
    ArcelorMittal has participated in oral conversations with both Bricmont and Bloom. Bloom has
    provided information regarding burner upgrades, including
    NOx emission guarantees and cost
    estimates; however Bricmont has not guaranteed product quality aspects associated with the
    burner change.
    A review
    of the provided oral and written information indicates that
    implementation
    of a burner upgrade for the tunnel furnace is infeasible based on the
    overwhelming economic cost, the effect on the tunnel furnace operation, and the impact on
    product quality.
    3.
    Illinois EPA has established a range of cost effectiveness of $2,500 - $3,000 per
    ton
    of emissions reduced.
    See R08-19, Transcript from October
    14,
    2008 hearing, pp. 165-166,
    173-174; Transcript from February
    3,
    2009 hearing, p.
    75. In addition, the TSD states that
    "$5000IMMBtu/hr
    is towards the high end of the capital cost of combustion controls, for the
    . levels
    of NOx reduction envisioned in most cases, costs in
    $/ton
    of NOx are typically under
    $1000Iton." TSD, Section
    6.4,
    p.
    99.
    In
    the preamble to the 8-hour Ozone implementation rule

    u.s. EPA states that a cost of $160 to $1,300 (in 1994 dollars) per ton of NOx removed is
    considered reasonable for purposes of RACT (70 Fed. Reg. 71652, November 29, 2005).
    Furthermore, U.S EPA states that in the 1998 NOx SIP Call Rule they reviewed all major NOx
    source categories, and the NOx SIP Call controls cost less than $2,000 per ton
    (Id. at 71654).
    In
    light of these control cost determinations, ArcelorMittal prepared an economic analysis for the
    Agency to review, which provides the estimated cost effectiveness for burner change. The
    analysis has been developed for two separate burners models and are based on ArcelorMittal' s
    incremental cost
    of reducing NOx emissions. The analysis is attached hereto as Exhibit A.I
    Scenario 1 of the analysis for a "next generation" Bloom Series 1500 burner indicates an
    actual emissions reduction
    of 25 tons per year (tpy), with a conservative cost effectiveness of
    $22,895 per ton of NO x removed. Scenario 2 for a "next generation" Bloom Series 1550 burner
    indicates an actual emissions reduction
    of 29 tpy, with a conservative cost effectiveness of
    $39,472 per ton. For either scenario, the calculated cost effectiveness of the burner upgrade well
    exceeds the Agency's established range of $2,500 - $3,000 per ton
    of emission reduction, U.S.
    EPA's determination
    of less than $2,000 per ton and the TSD's reference of $1,000 per ton.
    Furthermore, the costs are solely estimates for materials and labor associated with the burner
    upgrade and additional furnace modifications. These estimates assume rigid customer product
    quality specifications can be satisfied and, conservatively,
    do not include yield cost impacts and
    the associated cost
    of production downtime to convert the furnaces, both which would be
    substantial.
    An
    expenditure of over $22,000 per ton of NOx controlled is unreasonable for a
    1
    As stated in previous conunents, the current, permitted emission factor for the tunnel furnace is O.171Ib/rnmBTU and the
    guaranteed emission factor as shown in Exhibit A is O.1651b/mmBTU (the difference being a safety margin). Upon receiving
    ArcelorMittal's economic analysis on March 16,2009, the Agency indicated that they would be willing to consider a revised
    emission limit
    of 0.09
    Ib/mmBTU, but stated that, due to time constraints, they could provide no additional reasoning for the
    proposed revised limit other than the alleged need to show further NOx reductions and being under the threat of sanctions from
    U.S. EPA. ArcelorMittal strongly disagrees with this arbitrary limit (which isn't based on RACT), but is committed to
    continuing to work with the Agency to demonstrate why no additional reductions are required.

    point source that contributes a meager 0.016% of the total Chicago area NOx inventory on a
    daily basis
    of 812 tons NOxiday for 2006.
    4.
    Although the estimated total cost of a burner upgrade is overwhehning, the effect
    on the operation
    of the tunnel furnace is of greater concern. Steel tunnel furnace burner designs
    are very particular to the furnace structure and slab type, so altering the burners or heat system
    can have significant effect on the slab quality. Based on Scenario
    1, burners and gas orifice
    plates would need to be removed and replaced. Primary air cycle valves would also need
    to be
    replaced for Scenario 2. Additionally, air and gas piping modifications would need to be made at
    all of the burner connections and modifications would need to be made to shell plate and
    insulation to accommodate new block sizes and shapes.
    The anticipated flame geometry with either
    of the new burner models would be slightly
    longer and smaller in diameter than the flame generated with the existing burner. When the
    flame becomes less focused, heat cannot reach the bottom
    of the slab, which may require the
    installation
    of additional burners on the bottom side of the furnace. Changes in flame geometry
    can also result in burnt roof sections and tie beams (cross-overs). Most importantly, flame length
    is related to turbulence and a specific flow pattern within the furnace. Modification of the flame
    changes the flow pattern and impedes the ability to evenly heat the slab. Gas is combusted more
    slowly with ULNBs and can result in unburned fuel contacting the slab.
    In addition, the gas pressure requirement for the new models
    is significantly higher and
    would necessitate changes
    to the
    main
    gas trains. Modification of the main gas trains has not yet
    been evaluated. Any precise physical changes to the mains, or the ability to make these changes,
    have not been evaluated; therefore the feasibility
    of these changes and the associated economic
    costs are not known.

    Conversations with the manufacturer of the tunnel furnace have revealed that retrofitting
    tunnel furnaces is extremely difficult due to the increased number
    of burners within the furnace
    and the increased surface area
    of the slab per pound of steel (due to the thin slab casting). The
    increased surface area results in the need for tighter atmospheric control and an increased focus
    on maintaining surface quality.
    Due to the continuous nature
    of the steel-making process and the lack of redundancy in
    the operation, the tunnel furnace must operate optimally at all times. As previously indicated,
    the tunnel furnace receives slabs directly from the continuous caster. Unlike a traditional caster
    which produces a slab that is stored prior
    to processing, there is no place to store the slabs and no
    way to "reheat" a slab from ambient temperature. The entire compact strip production (CSP)
    process operates as one continuous process and all sections must be operating optimally to
    produce a quality finished product. Unlike other facilities that operate tunnel furnaces, the
    Riverdale facility does not have a second tunnel furnace or shuttle furnace that can be used
    to
    divert product between furnaces; nor does the Riverdale facility have any downstream finishing
    operations (such as pickling)
    to remove scale.
    5.
    As outlined above, each of the effects on the furnace operation directly impacts
    product quality. ArcelorMittal's Riverdale facility produces both high and low carbon grades
    and carbon alloy grade steel. Many
    of these grades (including high carbon grades with up to
    0.95% carbon; carbon alloy grades with specific additions
    of chromium, nickel, molybdenum,
    and vanadium; and carbon grade steels with boron additions) are not typically produced at other
    facilities. ArcelorMittal has invested a great deal
    of time and effort in order to produce a unique
    product mix that is either breakout sensitive or ultra-light gauge. These two niches differentiate
    our facility from other steel-making facilities throughout the country.

    6.
    The Chicago Ozone monitoring and modeling data indicate attainment of the
    1997 Ozone NAAQS is imminent without additional NOx RACT emission reductions from the
    manufacturing sector. Even without factoring in regulations with future effective dates, the
    Ozone monitoring data indicates attainment to the 1997 Ozone NAAQS. Illinois EPA
    acknowledges this condition in their November 14, 2008 public notice
    of the Ozone status where
    it states, "The Illinois EPA intends to request that U.S. EPA re-designate the Chicago area to
    attainment
    of the 1997 8-hour Ozone NAAQS based on ambient monitoring data from 2006
    through 2008." NOx RACT should not be implemented
    if the Chicago area achieves attainment.
    While we recognize that Illinois EPA is obligated to submit its SIP and the NOx RACT rules to
    U.S. EPA this summer and appreciate the threat
    of sanctions, the rules should recognize the
    actual improvement in Ozone monitoring data, the modeling results and continuing improvement
    in ambient air quality trends in the Chicago area and stay on course with "on the book controls"
    as a means
    of demonstrating reasonable further progress and maintenance to the 1997 Ozone
    NAAQS. This approach is encouraged and is consistent with U.S EPA's Clean Data Policy,
    which enables reduced regulatory requirements for areas that attain the standards, but have not
    yet been re-designated as attainment. We respectfully request Illinois EPA not develop and the
    Board not adopt
    NOx RACT rules that further burden manufacturers as another means
    of
    "leapfrogging" into other SIP initiatives that have longer timelines (e.g., PM 2.5 or 2008 Ozone
    standard SIP rules) without allowing
    "on the book" controls to take hold to further improve
    ambient air quality.
    In summary, these comments are intended as a supplement to the information previously
    provided in our Pre-Filed Comments, dated November 25,
    2008 as well as follow-up to the
    several rounds
    of hearings in this matter and informal discussions with the Agency.

    ArcelorMittal asserts that operationally and functionally the tnnnel furnace cannot be compared
    to, or considered to be a reheat furnace (or even compared to other tnnnel furnace facilities for
    that matter). ArcelorMittal remains connnitted to working with the Agency throughout this
    rulemaking proceeding; however, should the Agency deem that ArcelorMittaI's tnnnel furnace
    requires regulation under the proposed rule, ArcelorMittal requests that Illinois
    EPA allow a
    case-by-case determination for the applicability
    of this rule to the tnnnel furnace. This would
    include the provision
    of a specific definition or separate category for tnnnel furnaces and
    utilization
    of the emission factor currently utilized and permitted for the tnnnel furnace at
    ArcelorMittal's Riverdale, Illinois facility, recognizing the unique nature
    of the operation and the
    advanced NOx control technologies already in use.
    In the alternative, ArcelorMittal would request the Agency's support and joint filing in an
    adjusted standard proceeding. Mr. Kaleel
    is quoted in the proceedings from the October hearings
    (specifically when talking about boilers and the possible need for SCR, but the same general
    concept applies
    to furnaces) as follows "I think an argument couId be made that if the costs for a
    particular unit greatly exceed the range
    we have in mind for RACT, the unit would qualify or at
    least we couId support an adjusted standard type
    of a proceeding."
    See R08-19, Transcript from
    October
    14,
    2008 hearing,
    p.
    128. However, given the overwhelming evidence delineated above,
    ArcelorMittal believes that it has already established that its current burner configuration meets
    RACT and
    no additional regulatory proceeding is necessary, thereby saving both the Agency and
    Pollution Control Board valuable time and resources.
    Respectfully submitted,
    ARCELORMITTAL USA, INC.
    By:
    CAv~\.J><,'J.
    ~
    Christina
    L.
    Archer

    Christina
    L.
    Archer
    Associate General Counsel
    ARCELORMITTAL USA, INC.
    1 South Dearborn, 19
    th
    Floor
    Chicago, Illinois 60603
    (312) 899-3865

    Exhibit A to Post.Hearing Comments
    ArcelorMlttal Riverdale Tunnel Furnace NOx RAeT Analysis
    Estimated Cost Effectiveness
    for Burner Change (see note below)
    3/1612009
    CALCULATION FOR THE ANNUALIZED COST PER TON
    NO~
    REMOVED BASED ON CHANGING BURNERS FROM SERIES
    1430
    TO
    1500
    (Scenario
    1)
    or to
    1550
    (Scenario
    21.
    see references and notes below.
    DirectCapilal Costs (DCC):
    Purchased EquipmentCosts:
    Equipment Costs (EC):
    Sales Tax (0.03EC):
    Total Purchased Equipment Costs (PEC)
    Installa~on
    Costs (IC), Including instrumentation,
    Freigh~
    Engineering, Startup Consultancy
    Total PurChased Equipment and Installation Cost (ICC=PEC + IC):
    Other Indirect Capital Costs (OCC)
    Lost Production:
    Total Other Indirect Capital Costs (OCC);
    Contingency (CONT, 0.20 DCC+OCC]):
    Total Capital Cos!
    (TCC"ICC+OCC+CONn:
    Annualized Capital Cos! (ACC=TCcxCFR)
    Capital Recovery Factor (CRF):
    DirectAnnual Costs (DAC):
    Operation
    (0)
    Maintenance
    (M)
    Replacement MateMals
    Utilfties
    Waste Disposal
    Chemicals
    Other
    Total DirectAnnual Costs (DAC):
    Indirect Annual Costs (lAC):
    Overhead (0.60(O+M)
    Administrative (O.OITCC)
    Property Tax
    (o.oncC)
    Insurance (0,02 TCC)
    Total Indirect Annual Costs
    MC):
    Total Annual Cost (TAC=ACC+DAC+IAC):
    Cap.rtal Recovery Faclor (CFR)
    ~
    I = 10 % - inlerest rate
    !.i1±...!r'
    (1 +
    I)n_l
    n'"
    5 years- economic equipment life
    CFR=
    0.254
    Baseline
    Existing Bumer (Bloom 1430) Emission Guarantee
    (Ib NOxIMMBtu)
    Natural Gas
    Tunnel Furnace Natural Gas Consumption with Series 1430 (Actual 2005 MMBtu)
    NO:: Emissions
    NOx Emissions
    w~h
    Series 1430 (Actual tons
    NO~jn
    2005)
    Surner Upgrade Scenarios
    Burner Series (Model)
    Burner Upgrade Emission Guarontee (Ib NOxIMMBtu)
    Natural Gas
    Tunnel Furnace Natural
    Gas Consumption (MMBtufyr)
    NOx Emissions
    NOx Emissions = EmiSSion Guarantee' NG usageJ2000 (TPY)
    Scenario
    1
    Scenario
    2
    1500
    Burner
    1550
    Burner
    $1,230,000
    $2,710,000
    $36,900
    $81,300
    $1.266,900
    $2,791,300
    $300,000
    $300,000
    $1,566,900
    $3,091,300
    $0
    SO
    $313,380
    $0
    $618,260
    "
    $I,B80,2BO
    $3,709,560
    $496,013
    $97B,573
    $0
    $0
    $0
    $0
    SO
    $0
    $0
    $0
    $0
    $0
    $0
    $0
    $0
    $0
    $0
    $0
    $0
    $0
    $18,B03
    $37,09<0
    $IB,so3
    $37,096
    $37,606
    $74,191
    $75,211
    $148.382
    $571.224
    $1,126,955
    0.165
    0.165
    514430
    514430
    42.4
    42.4
    Model 1500
    Model 1550
    0.06B
    0,054
    514430
    514430
    17.5
    13.9
    Incremental Emisslons Reduction (tonsJyr):
    25
    29
    "'(2005 NG
    usage. 0.1651b NOxIMMBtuI2000). (NG usage. emission factor for replacement burnersl2000)
    Cost-Effectiveness ($!ton):
    $22,895
    $39.472
    References;
    Reference
    (1)
    '"
    (3)
    (4)
    (5)
    see below
    (6)
    0)
    I'>
    In
    IS)
    '"
    2005 NG Usage
    calculafion
    '"
    Furnace NG
    calculation
    calculation
    Note: Vendors were unable to guarontee product quality aspects associated with a bumerchange, therefore a bumer change is technically
    infeasible for Riverdale's Tunnel Furnace, Cost information is provided for informational purposes only.
    (1)
    Bloom cost estimate (see email dated March 5, 2009 from
    Dave
    Church).
    (2)
    "EPA Pollution Control Cost Manual,
    Sixth Edftion,. EPAl45218---n2-001, January, 2002, Table 2.4, Page 2-27.
    (3)
    Conservative Cost Estimate
    (4)
    Does not include downtime for installation or product yield consequences, which could be sl,gnificanl (not included as a conservative measure)
    (5)
    From EPA "Cost-Air" spreadsheets available on.line at http://Www.epa.govlttn.
    (6)
    "EPA Pollution Control Cos! Manual, Sixth Edftion," EPN452JB.02-001, January, 2002, Section 2.5.5.B
    m
    Riverdale cost of capital
    (8)
    "Alternative Control Techniques
    Document. NOxEmisslonsfrom Iron and Steel Mills," EPAl4531R-94.065, September, 1994,
    Section 6.1.3 for costs
    of low-NOx burners applied to reheat furnaces.
    .
    (9)
    Bloom provided NOx emission guarantees for changing
    SeMes 1430 burners to Series 1500 and 1550.

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