BEFORE THE ILLINOIS POLLUTION CONTROL BOARD
IN THE MATTER OF:
)
)
R06-25
PROPOSED NEW 35 ILL. ADM. CODE 225
)
(Rulemaking – Air)
CONTROL OF EMISSIONS FROM
)
LARGE COMBUSTION SOURCES (MERCURY)
)
NOTICE OF FILING
TO:
Dorothy Gunn
Gina Roccaforte, Assistant Counsel
Clerk
Charles E. Matoesian, Assistant Counsel
Illinois Pollution Control Board
John J. Kim, Managing Attorney
James R. Thompson Center
Air Regulatory Unit,
100 W. Randolph St. , Suite 11-500
Division of Legal Counsel
Chicago, Illinois 60601-3218
Illinois Environmental Protection Agency
1021 North Grand Avenue, East
Marie E. Tipsord
P.O. Box 19726
Hearing Officer
Springfield, Illinois 62794-9276
Illinois Pollution Control Board
john.kim@epa.state.il.us
James R. Thompson Center
charles.matoesian@epa.state.il.us
100 W. Randolph, 100 W. Randolph
gina.roccaforte@epa.state.il.us
Chicago, Illinois 60601-3218
tipsorm@ipcb.state.il.us
SEE ATTACHED SERVICE LIST
PLEASE TAKE NOTICE that on September 20, 2006, I the undersigned caused
to be filed electronically with the Clerk of the Illinois Pollution Control Board the
attached POST-HEARING COMMENTS, copies of which are herewith served upon you.
By:_[s]
Mary Frontczak__________________
Mary Frontczak (Reg. No. 6209264)
DATED:
September 20, 2006
ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, SEPTEMBER 20, 2006
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BEFORE THE ILLINOIS POLLUTION CONTROL BOARD
IN THE MATTER OF:
)
)
R06-25
PROPOSED NEW 35 ILL. ADM. CODE 225
)
(Rulemaking – Air)
CONTROL OF EMISSIONS FROM
)
LARGE COMBUSTION SOURCES (MERCURY)
)
PRAIRIE STATE’S POST-HEARING COMMENTS
NOW COMES Participant PRAIRIE STATE GENERATING COMPANY, LLC,
by and through its attorney, MARY FRONTCZAK, pursuant to 35 Ill. Adm. Code
§ 102108, and offers the following POST-HEARING COMMENTS in the above-
captioned proposed rule:
I.
THE PROPOSED RULE WITHOUT A TECHNOLOGY BASED
STANDARD WILL NEGATIVELY IMPACT NEW GENERATION
BURNING ILLINOIS COAL SUCH AS PRAIRIE STATE GENERATING
STATION.
A.
Technology has not been sufficiently tested on high sulfur coals (e.g., 9
lb. SO
2
/mmBtu) such as Illinois Seams 5 and 6
Illinois Seams 5 and 6 coal have sulfur content on the order of 9 lb sulfur dioxide
(SO
2
) per million Btu or approximately 4% sulfur. This is classified as a high sulfur coal.
As discussed in Prairie State’s testimony at the hearing, there is very little information on
the efficacy of mercury control technologies when high-sulfur coal is burned. Exhibit 80;
Ms. Tickner, Hearing Transcript at 456 (August 15, 2006). That testimony is supported
by the TSD and other witnesses, including those for IEPA.
See, e.g.
, TSD at 128 (“There
is currently no test data on units with sulfur levels as high as those of Illinois coals.”); Dr.
Staudt, Hearing Transcript at 73 (June 22, 2006); Mr. DePriest, Hearing Transcript at
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1230-31 (August 18, 2006). Mr. Nelson even suggested that technology may not be
commercially available for high sulfur coals:
It is commercial at least in the type of coals and the type of
systems, like perhaps not a Conesville situation, but
certainly in those types of systems that they have had
successful demonstrations on.
Hearing Transcript at 73 (June 22, 2006).
1
The control of mercury emissions at coal-fired power plants is extremely difficult
for numerous reasons including the minute amount of mercury in stack gas. To date,
short-term testing of mercury controls has occurred at only 28 coal-fired units -- those
plants comprise about 2.3% of the coal-fired units in operation in the U.S. Despite the
millions of dollars that DOE and industry have spent on this testing, DOE recently
concluded that:
while DOE is very encouraged by the results of our mercury
control technology development efforts to date,
there remain a
number of critical technical and cost issues that need to be
resolved through additional research before these technologies
can be considered commercially available for all U.S. coals and
the different coal-fired power plant configurations in operation
in the United States.
Exhibit 55 at p. 1 (emphasis in original). DOE plans to continue its mercury control
technology testing program through at least 2009. EPA reached a similar conclusion
about the state of mercury controls when it stated in the preamble of CAMR:
We do not believe that such full scale [mercury] technologies can
be developed and widely implemented within the next 5 years;
however, it is reasonable that this can be accomplished over the
next 13 years.
1
Conesville is a facility in Ohio that burns high (3 to 4%) sulfur coal.
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70 Fed. Reg. 28,619. Thus, there is no technical basis for assuming that 90% control of
mercury is achievable at all coal-fired plants. This is particularly true for mercury control
of high sulfur coals like those that will be burned by Prairie State.
Witnesses for IEPA and industry also concur that mercury removal from high
sulfur coal is difficult.
See, e.g.
, Dr. Staudt, Hearing Transcript at 73, 98 (June 22, 2006);
Mr. DePriest, Hearing Transcript at 1230 (August 18, 2006). As Dr. Staudt testified:
And let me just state, in the case of the high sulfur
situation, that is a situation that I've acknowledged is a
difficult one both in the TSD and in my testimony,
Hearting Transcript at 73 (June 22, 2006). The apparent reason is sulfur trioxide (SO
3
)
interference. Dr. Staudt Hearing Transcript at 98 (June 22, 2006); Mr. DePriest, Hearing
Transcript at 1230 (August 18, 2006).
Dr. Staudt did offer his unsupported opinion that the technology on new units will
make it possible for them to meet the proposed standards. Hearing Transcript at 156
(June 21, 2006 pm). The limited available data actually suggests otherwise. In the one
study to date on high sulfur coal at Conesville, preliminary data indicate that less than
50% mercury removal is achievable, around 30%. Exhibit 80, Attachment 3 (discussing
Conesville study). The removal efficiency was even worse when brominated carbon was
used (i.e., less than 25% mercury removal).
Id.
The experience at Conesville may not be
directly transferable to what will be achievable at Prairie State due to different control
technologies but it is the only test that is available to provide some insight into the impact
high sulfur coal will have on mercury removal. Conesvillle has an ESP and wet FGD,
while Prairie State will have an SCR, ESP, wet FGD and WESP. To Prairie State’s
knowledge, there are no data on mercury removal using all the above technology on high
sulfur coal. Such lack of knowledge is why Prairie State believes the inclusion of a
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technology-based standard is necessary. That belief appears to be shared by Dr. Staudt at
least for existing units. Hearing Transcript at 65 (June 21, 2006 pm); Hearing Transcript
at 86-87 (June 22, 2006).
B.
Guarantees are not available for 90% mercury
control at new facilities
As indicated in Prairie State’s testimony at the hearing, meaningful guarantees for
mercury removal of 90% are not readily available, especially for use with high sulfur
coals. Exhibit 80; Ms. Tickner, Hearing Transcript at 444-45, 465-69 (August 15, 2006).
Prairie State has been working with Engineering, Procurement, and Construction (EPC)
contractors for the past 3 years to determine the capabilities of the available technologies
to reduce mercury emissions. Part of that effort has included ascertaining what
guarantees are available for a new facility with respect to mercury removal.
The EPC contractors based on information from the vendors of the proposed
technologies have indicated a willingness to guarantee around 84% mercury removal for
Prairie State. Ms. Tickner, Hearing Transcript at 471 (August 15, 2006). Based on the
mercury content of the Illinois coal to be burned at Prairie State (average of 0.09 ppm and
worst case of 0.13 ppm), that removal efficiency is insufficient to meet either of the
proposed standards.
As Mr. DePriest testified, guarantees are important to a prudent company because
they “protect the owner from the investment he’s making in that particular technology.”
Mr. DePriest, Hearing Transcript at 1150 (August 18, 2006). That is precisely what the
owner of a new facility such as Prairie State is seeking from its EPC contractor —
protection from its investment in all the control technology installed to control air
emissions.
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Unlike with retrofit applications of technology where a guarantee is limited to the
equipment being installed, a new facility is looking for a guarantee from the EPC
contractor to cover the cost of the facility — on the order of $2 to 3 billion dollars — if
the control technologies do not perform as designed. The EPC contractor will wrap the
various guarantees offered by the individual technology vendors into one overall
guarantee to cover the scope of the project.
See
Excerpts from EPC Agreement
(Attachment 1). The wrap is necessary in order to get financing for the project because
lenders are unwilling to accept any risk related to the plant’s inability to operate.
See
Mr. Romaine, Hearing Transcript at 162 (June 20, 2006) (indicating risk adverse
investors as one of the reasons IEPA proposed the TTBS for new units). If an EPC
guarantee cannot be obtained, it would be because the technology is not commercially
available or proven. No one, neither banks nor equity owners, will build a $2 to 3 billion
dollar plant and
hope
the control technology works. While activated carbon vendors may
be willing to guarantee their product will achieve 90% removal (but only after they have
had an opportunity to assess its effectiveness), their limited guarantee of $ 1 to 2 million
is basically meaningless when compared to the overall cost of the facility. Moreover,
given the preliminary results at Conesville discussed above, it is doubtful that activated
carbon vendors will guarantee 90% removal on high sulfur coal.
II.
TRADING SHOULD BE ALLOWED
Prairie State is concerned that IEPA’s proposed rule creates future regulatory
uncertainties for coal-fired power plants in Illinois. For new plants, these uncertainties
are particularly problematic because they can affect the availability of capital to finance
the project. One way to eliminate much of the regulatory uncertainty from the proposed
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rule would be for IEPA to adopt EPA’s CAMR model trading rule and then layer the
Illinois-specific provisions of the proposed rule on top of the model trading rule.
CAMR imposes a hard cap on nationwide mercury emissions. From 2010 to
2017, the cap is 38 tons per year; for 2018 and thereafter, the cap is reduced to 15 tons
per year. CAMR requires that the mercury emissions from new coal-fired generating
plants must be offset by reductions somewhere else in the U.S. either as the result of a
decrease in emissions at an existing unit or by the retirement of a unit. EPA has allocated
CAMR’s nationwide cap among the states by establishing state mercury budgets based on
the heat input of the coal-fired power plants in each state during the period 1998 to 2002.
If a state opts out of the federal mercury cap-and-trade program, then CAMR mercury
budget for that state becomes a hard cap on annual emissions from that state.
2
Prairie State is concerned that at some point in the future, perhaps after 2018,
utilities in Illinois will be in compliance with the requirements of IEPA’s proposed rule
yet the total emissions for the State would exceed Illinois’ mercury budget. If that were
to happen, Illinois would have to require further mercury reductions from coal-fired
power plants in the State since plants would not be able to purchase allowances from
outside the State to show compliance with the federal limit.
3
2
In a recent set of comments on the New Mexico Environment Department’s
CAMR proposal, EPA Region 6 noted that if a state finalizes a rule with a “no trading”
provision, then “it will actually be up to [the State] to ensure and demonstrate to EPA that
you have met your State budget versus the utilities demonstrating to EPA that they have
met the allowance provided to them by the State since they are not participants in the
Federal cap-and-trade program.”
See
Attachment 2.
3
In fact, if Illinois were to allow trading, then in all likelihood coal-fired power
plants in the State would probably bank sufficient allowances to avoid needing to
purchase additional allowances in the event total Illinois emissions exceeds the state
budget.
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One way that Illinois emissions may exceed the state mercury budget is if
mercury control technologies do not perform as advertised. As discussed above, this is of
particular concern with mercury control of high sulfur coals like those to be burned by
Prairie State.
A recurring theme whenever a trading program is discussed is that “hot spots”
may be created. In the case of mercury, this claim is at the forefront of the trading
debate. A central problem with the debate about mercury “hot spots” is that the term is
rarely defined, and when it is, the definitions vary widely. Many who claim that “hot
spots” will result from a mercury cap-and-trade program fail to offer any evidence that
“hot spots” are being created by emissions from coal-fired power plants or plausible
explanations of how mercury “hot spots” would be created by a mercury trading program.
The evidence presented before the Illinois Pollution Control Board demonstrates
that a mercury cap-and-trade program will not create mercury “hot spots.” The main
modeling work on possible mercury “hot spots” presented by the IEPA is that of Dr.
Gerald Keeler. Dr. Keeler used a receptor model to attempt to identify the sources of
mercury in wet deposition he measured near Steubenville, Ohio. Dr. Keeler admitted
during questioning that receptor models cannot be used to make future predictions.
See,
e.g.
, Hearing Transcript at 204 (June 15, 2006). Thus, Dr. Keeler’s work cannot answer
the critical question of how mercury deposition changes at a given location because of the
implementation of CAMR or for that matter IEPA’s proposed rule.
The only presentation in the record that attempts to predict the future mercury
deposition that will result from various regulatory approaches is that offered by Krish
Vijayaraghavan on behalf of Dynegy and Midwest Generating. Exhibit 126. That work
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shows that the full implementation in 2020 of CAIR and CAMR will lead to less mercury
deposition in Illinois than the implementation of IEPA’s proposed rule, except for three
grid cells where increases in mercury deposition of less than 3% are predicted.
Id.
Thus,
adding EPA’s CAMR model rule to the IEPA’s proposed rule would not produce
mercury “hot spots” in Illinois, in fact, it would probably reduce mercury deposition in
the state.
For all these reasons, the proposed rule should be revised to include the CAMR
model trading rule.
III.
IEPA’S RULE HAS NOT CONSIDERED THE SIGNIFICANT
COMPLIANCE ISSUES THAT WILL ARISE IF ADOPTED AS
PROPOSED.
Currently, there are many questions about EPA’s mercury monitoring
requirements and whether available continuous emissions monitoring systems (CEMS)
can accurately measure mercury emissions, particularly at the levels necessary to
demonstrate compliance. Exhibit 132;
see, e.g.,
Mr. McRanie, Hearing Transcript at
1692 (August 22, 2006). As discussed at the hearing by Mr. McRanie, there are serious
doubts whether the currently available CEMS can accurately monitor at the level required
to show compliance with CAMR, much less the more stringent Illinois proposed rule.
See, e.g.,
Mr. McRanie, Hearing Transcript at 1753-54 (August 22, 2006). Imposing a
more stringent limit only exacerbates those concerns.
See
Mr. Romaine, Hearing
Transcript at 227 (June 19, 2006) (concurring that for a standard equal to 0.8 μg/m
3
and a
CEMS with an accuracy of plus or minus one μg/m
3
it would be impossible to determine
compliance with the standard as a practical matter).
Additionally, EPA’s mercury monitoring requirements are currently being
challenged in the D.C. Circuit. It remains to be seen whether that challenge will lead to
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revisions to EPA’s monitoring requirements but it is likely that some changes will be
made by EPA. The proposed regulations incorporate some EPA requirements by
reference but they also include specific mercury monitoring requirements. Prairie State
recommends that Illinois simply incorporate the EPA’s monitoring requirements by
reference. This will avoid a situation where monitoring requirements in Illinois are
inconsistent with the remainder of the country leading to the potential unavailability of
CEMS for facilities in Illinois.
As explained by Mr. Roberson in the attached assessment of mercury CEMS for
Prairie State (Attachment 3), mercury CEMS continue to be a work in progress. They
continue to have technical difficulties including: the sampling probe, transporting the
sample long distances, reliable and affordable calibration standards, and the lack of an
instrumental reference method (IRM) for mercury. While mercury CEMS will continue
to improve, it is important that their current limitations be considered in this rulemaking.
IV.
A TECHNOLOGY BASED STANDARD MUST BE ADOPTED IF IPCB
STANDARDS ARE MORE STRINGENT THAN CAMR.
A.
Technology Based Standard (TBS) is needed to address potential
shortfalls in technology.
There was substantial testimony during the hearings regarding the capabilities of
technology to reduce mercury emissions to the levels required by the proposed rule. One
theme that was heard throughout is the lack of long-term data. That short-coming is why
a technology-based standard is needed to bridge the gap between what technologies are
capable of achieving by 2009 versus 2018. While the short-term tests may be promising,
they are not sufficient to conclude that levels required by the proposed rule can be
sustained day in and day out over the life of the facility. As noted above, those ACI tests
cannot even be said to be promising for high sulfur bituminous coal, such as Illinois coal.
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The utility industry will undoubtedly rise to the challenge and build a better
mousetrap to meet the requirements as it has done in the past (e.g., SCR for NO
x
),
assuming those requirements are physically achievable. The real question is timing.
EPA took this into account in establishing the timing for CAMR; IEPA did not. A rule
requiring compliance in 2009 will necessarily have to be based on technology available
today given the time necessary to procure and install the technology and to get the
necessary permits in place. If that technology proves incapable of achieving the levels
required, a facility will have no option other than to shut down absent a technology based
standard as the proposed rule does not allow trading to make up for any shortfall in the
technology.
If IEPA is correct in its view that the technologies are capable of achieving 90%
removal, adopting a technology-based standard poses little impact as it would never need
to be used. However, if IEPA is incorrect, which Prairie State believes based on its
investigation into the capabilities of technology for its new units, without a technology
based standard, facilities would be required to shutdown, greatly curtail operations, or
face enforcement actions as they would have no way to comply with the requirements. A
technology-based standard would alleviate this concern and would also bridge the gap
pending the outcome of ongoing DOE studies. Moreover, IEPA’s technology expert, Dr.
Staudt, has indicated he supports the inclusion of a technology-based standard. Dr.
Staudt, Hearing Transcript at 87 (June 22, 2006).
B.
The proposed TTBS is not sufficient.
Prairie State is pleased that IEPA has proposed a temporary technology-based
standard (“TTBS”) for the reasons discussed above. However, the TTBS proposed by
IEPA needs improvement.
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First, eligibility should not be tied to the use a particular sorbent (halogenated
activated carbon).
This linkage is too restrictive and ignores new reagents and
technologies that are being developed that may be as or more effective than halogenated
activated carbon. Moreover, the preliminary data on high sulfur coal indicates that
halogenated activated carbon may be less effective than other activated carbons. Exhibit
80, Attachment 3. The rule should not require an EGU to go through an alternative
process to use other sorbents. Instead, the rule should indicate that any sorbent approved
by the Agency may be used. This would afford the Agency the ability to consider and
approve the use of other products as they become available and are proven effective
without having to modify the rule or require an EGU to go through the alternative
process. To implement this concept, Prairie State recommends replacing “halogenated
activated carbon” with
“sorbent or reagent approved by IEPA.”
Second, the TTBS should allow an optimization study to determine the optimum
injection rate such as the one included in Prairie State’s construction permit. Prairie
State’s permit includes detailed provisions for determining the optimum rate of sorbent
injection (Attachment 4). Those provisions consider all of the variables that affect
mercury removal (e.g., halogen, sulfur and mercury content of the coal; SCR catalyst
type and quantity; temperature of the flue gas passing through the air preheater; type of
particulate collection device; installation of additional downstream control devices such
as a wet electrostatic precipitator). It is unclear whether the proposed TTBS considered
such variables in arriving at the default injection rates.
The provisions in Prairie State’s permit should be acceptable as an alternative to
the default rates included in the proposed TTBS without the need for further permitting
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activities. For new facilities like Prairie State whose construction permit already includes
a provision regarding mercury control and the use of a sorbent, the TTBS should not
require a new or revised operating permit as indicated in § 225.238(b)(2) and
§ 225.238(d). A new source should be allowed to indicate in its initial Title V application
that it is applying to operate under the TTBS in accordance with its construction permit.
A new facility that incorporated provisions regarding mercury control should not have to
go through duplicative review and public participation when those provisions have
already been subject to such requirements. Prairie State has a similar concern with
respect to proposed § 225.238(e)(1)(C).
There is a significant cost associated with the default injection rate. As indicated
in Prairie State’s testimony, the cost for compliance with the TTBS at the designated
injection rate of activated carbon is $25 million per year just for the activated carbon
itself. That cost is based on a cost of $1 per pound of activated carbon (Sid Nelson,
Hearing Transcript at 116 (June 21, 2006 am) times 10 pounds per actual cubic foot (acf)
of flue gas times the Prairie State flue gas flow of 2,700,000 acfm per unit. This high
cost is not justifiable as there is currently no evidence that supports an injection rate of 10
lb/million acf.
Third, Prairie State recommends that a provision similar to § 225.234(b)(2)(D),
which allows existing units to lower the injection rate if particulate matter emissions are
adversely impacted, be included in § 225.238 for new EGUs. While new units should not
have the same particulate control device size concerns as discussed at the hearing, they
nevertheless may experience unforeseen problems given the lack of long-term experience
with how activated carbon will impact facility operations. Prairie State also recommends
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that “safety issues” be added as a basis for allowing the injection rate to be lowered. For
example, as discussed at the hearing, Presque Isle recently had a fire in their TOXECON
baghouse due to overheating the carbon in the baghouse. Dr. Staudt, Hearing Transcript
at 91 (June 21, 2006 pm).
Fourth, Prairie State does not understand the requirement, as proposed in
§ 225.238(c)(2)(A), to record the activated carbon feed rate on an hourly average basis.
There does not appear to be any rational basis for requiring a facility to average its
activated feed rate hourly. As the mercury content of the coal cannot feasibly be
monitored and recorded on an hourly average basis, knowing the injection rate on an
hourly basis will provide no useful information with respect to the facility’s mercury
control effectiveness.
Finally, there are some potential timing issues in the proposed TTBS that need to
be worked out. Under § 225.237 of the proposed rule, compliance with the mercury
standard commences on the date of the initial performance test. Application to use the
TTBS must be made at least three months before compliance with § 225.237 would have
to be demonstrated and has to be included in a Title V permit application. The initial
Title V application, however, is due within one year of commencing operation.
Theoretically, a facility would need to submit a Title V permit application to comply with
the TTBS three months after initial startup and before the compliance period is complete.
It is Prairie State’s understanding based on Mr. Romaine’s testimony at the hearing that a
Title V permit application would not have to be submitted prematurely. Mr. Romaine,
Hearing Transcript at 259-60 (June 20, 2006). Prairie State recommends the rule be
clarified on this point.
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Prairie State is providing a markup of the proposed TTBS with its recommended
changes (Attachment 5.
C.
The Proposed Multi-Pollutant Standard Could Negatively Impact
New Sources
In addition to the TTBS, IEPA in conjunction with certain utilities has proposed a
multi-pollutant standard (MPS) that addresses sulfur dioxide (SO
2
) and nitrogen oxide
(NO
x
) emissions in addition to mercury. While the proposal is directed towards existing
facilities, it may have serious consequences on new facilities within the state. The
primary concern for new facilities with the proposed MPS is the effect it will have on the
availability of SO
2
allowances for new units. As proposed, existing units must relinquish
their allocated unused allowances as a result of the MPS to IEPA, who in turn will retire
them. If the majority of existing units elect to sign up for the MPS, it will reduce the pool
of available allowances making it difficult, if not impossible, for Prairie State or any
other new unit to purchase allowances for its emissions. There is a potential solution. To
alleviate potential shortfalls in the availability of allowances, IEPA should make the
allowances relinquished to it under the MPS available to new units for purchase.
V.
CHANGES TO THE PROPOSED RULE ARE NECESSARY IF IPCB
ELECTS TO GO BEYOND CAMR.
While inclusion of the TTBS revised as suggested will address most of the
concerns Prairie State has with the proposed rule, a few issues remain.
First, Prairie State recommends that ASTM D6722-01 "Standard Test Method for
Total Mercury in Coal and Combustion Residues by Direct Combustion Analysis" to
determine mercury in coal be added to § 225.140 and § 225.202 of the proposed rule as
an acceptable method. ASTM has obtained EPA acceptance of ASTM D6722-01 as
equivalent to all other required mercury determination methods. Per ASTM, this
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acceptance is so stated in the Federal Register Volume 70 Number 209 (October 31,
2005) (40 C.F.R. Part 63).
Second, compliance should be judged at the unit level, not on a both unit level
and source level as specified in § 225.210(e) of the proposed rule. If each EGU must
meet the stack limit, then it follows that the source should be in compliance. By
requiring both the unit and source to be in compliance, Illinois is effectively assessing
two violations if a unit fails to meet the emission limit.
Proposed provision
§ 225.230(d)(3) also could result in multiple violations when only one unit may be
having compliance issues.
Finally, averaging provisions should be provided for both “existing” and “new”
units. Section 225.232 appears to apply only to “existing” units. “New” units should
also have averaging provisions since the stringency of the limits Illinois proposes to
impose on new units is the same as existing units -- 90% control.
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CERTIFICATE OF SERVICE
I, Mary Frontczak, certify that I served electronically the attached POST-HEARING
COMMENTS upon the following this 20
th
day of September, 2006:.
Dorothy Gunn
Marie E. Tipsord
Clerk
Hearing Officer
Illinois Pollution Control Board
Illinois Pollution Control Board
James R. Thompson Center
James R. Thompson Center
100 W. Randolph St. , Suite 11-500
100 W. Randolph, 100 W. Randolph
Chicago, Illinois 60601-3218
Chicago, Illinois 60601-3218
tipsorm@ipcb.state.il.us
Gina Roccaforte, Assistant Counsel
Charles E. Matoesian, Assistant Counsel
John J. Kim, Managing Attorney
Air Regulatory Unit
Division of Legal Counsel
Illinois Environmental Protection Agency
1021 North Grand Avenue, East
P.O. Box 19726
Springfield, Illinois 62794-9276
john.kim@epa.state.il.us
charles.matoesian@epa.state.il.us
gina.roccaforte@epa.state.il.us
and electronically to the persons listed on the
ATTACHED SERVICE LIST
.
_[s] Mary Frontczak__________________
DATED: September 20, 2006
Mary Frontczak
Reg. No. 6209264
Peabody Energy
701 Market Street
St. Louis, Missouri 63101-1826
(314) 342-7810
17
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SERVICE LIST
William A. Murray
Special Assistant Corporation Counsel
Office of Public Utilities
800 East Monroe
Springfield, Illinois 62757
bmurray@cwlp.com
N. Ladonna Driver
Katherine D. Hodge
Hodge Dwyer Zeman
3150 Roland Avenue, P.O. Box 5776
Springfield, Illinois 62705-5776
nldriver@hdzlaw.com
Christopher W. Newcomb
Karaganis, White & Mage, Ltd.
414 North Orleans Street, Suite 810
Chicago, Illinois 60610
cnewcomb@k-w.com
Bill S. Forcade
Katherine M. Rahill
Jenner & Block
One IBM Plaza, 40
th
Floor
Chicago, Illinois 60611
bforcade@jenner.com
krahill@jenner.com
Faith E. Bugel
Howard A. Lerner
Meleah Geertsma
Environmental Law and Policy Center
35 East Wacker Drive, Suite 1300
Chicago, Illinois 60601
fbugel@elpc.org
Keith I. Harley
Chicago Legal Clinic
205 West Monroe Street, 4
th
Floor
Chicago, Illinois 60606
kharley@kentlaw.edu
David Rieser
Jeremy R. Hojnicki
James T. Harrington
McGuire Woods LLP
77 West Wacker, Suite 4100
Chicago, Illinois 60601
drieser@mcguirewoods.com
jharrington@mcguirewoods.com
S. David Farris
Manager, Environmental, Health and
Safety
Office of Public Utilities, City of
Springfield
201 East Lake Shore Drive
Springfield, Illinois 62757
dfarris@cwlp.com
Bruce Nilles
Sierra Club
122 West Washington Avenue, Suite 830
Madison, Wisconsin 53703
bruce.nilles@sierraclub.org
18
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SERVICE LIST
(R06-25)
Sheldon A. Zabel
Kathleen C. Bassi
Stephen J. Bonebrake
Joshua R. More
Glenna L. Gilbert
Schiff Harden, LLP
6600 Sears Tower
233 South Wacker Drive
Chicago, Illinois 60606
szabel@schiffhardin.com
kbassi@schiffhardin.com
sbonebrake@schiffhardin.com
jmore@schiffhardin.com
ggilbert@schiffhardin.com
James W. Ingram
Senior Corporate Counsel
Dynegy Midwest Generation, Inc.
1000 Louisiance, Suite 5800
Houston, Texas 77002
Jim.Ingram@dynegy.com
Daniel McDevitt
General Counsel
Midwest Generation, LLC
440 South LaSalle Street, Suite 3500
Chicago, Illinois 60605
19
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•
•
EXCERPTS FROM THE
•
ENGINEERING, PROCUREMENT AND CONSTRUCTION AGREEMENT between
PRAIRIE STATE MANAGEMENT COMPANY, LLC (PSMC)
•
and
•
(Contractor)
•
dated as of [October 31], 2005
•
8.1.1.7
Environmental Compliance Guarantee. Contractor guarantees that each Unit and
the Facility shall comply with all requirements of the Permits during the entirety of the
Performance Tests including the Facility Reliability Test (the “Environmental Compliance
Guarantee”). Contractor further guarantees that each Unit and the Facility shall meet the
Environmental Compliance Guarantee at the loads with the fuels specified in Appendices C and E.
A description of certain Permit levels that adjust over time that are required to be achieved to
satisfy the Performance Guarantees are set forth in Appendix E. Article 16
LIMITATIONS OF LIABILITY
16.1 Aggregate Limitation of Contractor’s Liability
.
•
16.1.1
To the fullest extent permitted by law, the total cumulative monetary
liability of Contractor for payments in respect of Contractor’s failure to cause Mechanical
Completion to occur or failure to cause the Facility to achieve the Environmental Compliance
Guarantee or to achieve the Minimum Performance Guarantees or for violations of Applicable
Legal Requirements by Contractor, its Affiliates, Subcontractors or Personnel shall not exceed an
amount equal to the Contract Price; provided, however, that (i) the foregoing limitation shall not
limit Contractor’s liability arising out of any Claims for which Contractor has an indemnification
obligation under this Agreement, and (ii) the aggregate amount of Contractor’s liability under this
Agreement shall not be reduced by any proceeds of the insurance described in
Appendix Q
that
are received by Contractor or paid to PSMC or any Owner.
5.1
Contract Price
. As full consideration for the full and complete
performance of the Work by Contractor and Contractor’s other obligations hereunder and all
costs incurred in connection therewith, PSMC shall, subject to
Sections 5.2
and
5.3
, pay to
Contractor the firm fixed lump sum amount of $__,___,___,___.__, inclusive of all Contractor
Taxes (the
“Contract Price”
)
2.2
Work to be Performed
. Except as otherwise expressly set forth in
Article 3
as being the responsibility of PSMC, Contractor shall, in accordance with the
Agreement, perform or cause to be performed all acts or actions required or necessary in
connection with the design, engineering, permitting (with respect to Contractor Permits),
procurement, equipping, supplying, manufacturing, construction, installation, training,
commissioning, start-up, demonstration, testing, operation, care, custody and control, and
completion of the Facility (whether at the Facility Site or elsewhere) until Final Completion and
satisfaction of Contractor’s warranty obligations during the Warranty Period (collectively, the
“Work”
) all on a lump sum, turnkey, basis and in accordance with this Agreement.
•
1/3
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EPA REGION 6 COMMENTS ON NMED CAMR PROPOSAL
Regulatory Comments:
20.2.85.2
– Should the scope be changed to apply to only coal-fired electric
generating units?
20.2.85.50
- What is meant by the effective date being Nov. 17, 2006? Is this
date the date EGUs need to begin complying with the rules, or just the
approximate date that NMED expects the rule to be final?
20.2.85.7
- A definition you may want to include is "sequential use of energy" to
deal with the potential for a future cogeneration units being constructed in New
Mexico. We also encourage NMED to adopt the June 9, 2006 definition of
"electric generating unit" to include the exclusionary language on solid waste
incineration units in the definition of electric generating units. Other definitions
that should be considered for adoption include continuous emission monitoring
system (CEMS), control period, emissions, excess emissions, mercury budget
permit.
20.2.85.101 A
. - We suggest that you add a calendar year reference to the last
sentence of the paragraph......."No electric generating unit regulated under this
part shall emit a quantity of mercury greater than the number of annual mercury
allowances the electric generating unit has been allocated under 20.2.85.103
NMAC beginning in calendar year 2010.”
20.2.85.101 B
. - We suggest that you also show the state's budget in ounces for
the corresponding budget years.
20.2.85.102
- We do not believe this paragraph is needed in the rule. If the State
finalizes a rule with "no trading" provisions, the State is basically creating a State
run program that differs from EPA's regulatory approach. Therefore, it will
actually be up to New Mexico to ensure and demonstrate to EPA that you have
met your State budget versus the utilities demonstrating to EPA that they have
met the allowance provided to them by the State since they are not participants
in the Federal cap-and-trade system.
20.2.85.103
– EPA has several questions/comments:
1. Since New Mexico is considering a no-trading type program, has New
Mexico considered a larger new unit set aside in the event that new units
are built in future years, or would New Mexico redistribute the utilities
mercury allowances to accommodate a new unit?
2. Were lower allowance levels considered for the existing units to provide a
buffer for New Mexico to stay within its State mercury budget?
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3. How will NM address the possibility of an electric generating unit
exceeding its allocation of allowances? Will an enforcement action result?
EPA is concerned about the possible implications of a State with a no-
trading approach exceeding its State budget and the State should clearly
demonstrate in its Section 111(d) plan what safeguards are in place to
prevent the State from exceeding its assigned State budget.
4. What if a utility exceeds its allowance, what type of penalty and
enforceable restoration to the State’s allowance and budget system will be
made? Any potential restoration requirements need to be incorporated
into an enforceable permit for the unit.
20.2.85.104
- Would higher fees for mercury allowances provide a disincentive to
electric generating units to exceed its allocation of allowances? Has some type
of escalating fee system been considered based upon the number of allowances
needed by an EGU?
20.2.85.105
- What is the process for new units to request and receive
allowances from NMED? What if there are not enough allowances available for
the new source to start operation? We are concerned about the implications for
both existing and new units if there are not sufficient allowances for a new unit to
start operation in New Mexico, or the potential for an existing unit’s NMED
assigned allocation of allowances to be impacted without sufficient time to install
any necessary pollution controls to make room for a new unit’s emissions.
20.2.85.106
- We suggest revising the regulatory text to state: "Sources subject
to this part are required to comply with all requirements of 40 CFR Part 75
concerning determinations of mercury mass emissions."
General Comments:
- A provision requiring compliance with 60.4170(a), (b), (c), (d) is needed in the
regulations. Please note that CEMS units for existing units need to be certified
by January 1, 2009. There needs to be a definitive requirement in the State
rules for monitoring and reporting by the units.
- There are no CAMR permit requirements in the regulatory language. The
State should clearly outline the CAMR permit requirements in the regulatory text.
Does the State intend for these rules to function as a permit-by-rule type
program?
- Will NMED specify that the companies or operators that own the San Juan
power station or Escalante power stations designate an individual as mercury
designated representative to report to NMED.
- NMED should outline in the regulatory proposal what the EGUs will need to
provide NMED to demonstrate an increment of progress as discussed at 60.21
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and 60.24(e). NMED will need to ensure that it’s section 111(d) submittal
satisfies the requirements of 40 CFR part 60 – Subpart B.
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STATUS OF MERCURY
CONTINUOUS EMISSION MONITORING SYSTEMS
September 2006
Prepared for
Dianna Tickner, Vice President
Prairie State Generating Company, LLC
Prepared by
Ralph L. Roberson, P.E.
RMB Consulting & Research, Inc.
Raleigh, North Carolina
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2
REGULATORY BACKGROUND
On May 18, 2005, EPA published in the Federal Register the Clean Air Mercury Rule (CAMR)
designed to reduce mercury emissions from coal-fired electric generating units (EGUs). CAMR
creates a cap-and-trade program that will be implemented in two phases. Phase 1 caps mercury
emissions at 38 tons per year (tpy) in 2010 and phase 2 caps mercury emissions at 15 tpy in
2018. CAMR requires existing units to begin to continuously monitor mercury emissions with a
certified system no later than January 1, 2009. CAMR recognizes two options for obtaining
continuous mercury emission data: (1) sorbent trap monitoring systems and (2) mercury
continuous emission monitoring systems (CEMS).
EPA developed CAMR pursuant to the Agency’s authority under section 111(d) of the Clean Air
Act (CAA). Section 111(d) authorizes EPA to promulgate standards of performance that States
must adopt through the State Plans, which requires State rulemaking action followed by review
by EPA. If a State fails to submit a satisfactory plan, EPA has authority to prescribe a plan for
the State. States are not required to adopt and implement EPA’s proposed mercury emission
trading rule, but States are required to be in compliance with their statewide mercury emission
budgets.
The State of Illinois has proposed to opt out of the federal trading program and instead impose
unit/facility specific mercury emission limits or percent mercury removal requirements.
Specifically, the Illinois Environmental Protection Agency (IEPA) has proposed to add new
regulations to 35 Illinois Administrative Code Part 225, Control of Emissions from Large
Combustion Sources. These regulations would control mercury emissions from coal-fired EGUs
located in the state. Beginning July 1, 2009, the regulations would require existing EGUs to
meet either (1) an emission limit of 0.0080 lb Hg/GWh gross electrical output, or (2) achieve a
90 percent reduction of input mercury.
1
MERCURY MONITORING ISSUES
Mercury CEMS continue to be plagued by slower than expected development and a limited
number of viable suppliers. The potential limited number of mercury CEMS suppliers tends to
make the electric utility industry want to start the procurement process sooner rather than later.
On the other hand, reports of continued technical difficulties with mercury CEMS cause the
utility industry to want to proceed cautiously. Significant technical issues include: the sampling
probe, transporting the sample long distances, reliable and affordable calibration standards, and
the lack of an instrumental reference method (IRM) for mercury. Each of these technical issues
is discussed in more detail below. Moreover, the Illinois proposed mercury EGU rule presents
mercury monitoring challenges above and beyond those posed by EPA’s CAMR. Illinois-
specific issues are also discussed below.
1
For the purpose of this rule,
existing
EGUs are those in commercial operation on or before December 31, 2008.
Also,
input mercury
means the mass of mercury that is contained in the coal.
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3
Sampling Probes
Most of the leading Hg CEMS vendors use an inertial dilution probe. These probe assemblies
are bulky and quite complicated. To illustrate the point, a schematic of a typical inertial
sampling probe is shown in Figure 1.
2
Figure 1
Thermo Electron Inertial Mercury Probe
Dilution helps minimize the deleterious effects of acid gases and selenium on analyzer
components, especially catalytic converter systems. Dilution sampling also means the sample
will be analyzed on a wet basis, which means the Hg concentration can be simply (without need
for moisture correction) multiplied times stack volumetric flow rate to yield Hg mass emissions
(ounces per hour). However, these probes have been especially problematic on wet stacks (e.g.,
units with wet flue gas desulfurization systems) and appear to be the root cause of poor
reliability. The dilution probes withdraw a relative large volume of gas from the stack, albeit
only a small sub-sample is ultimately delivered to the analyzer. However, when the water from
the saturated flue gas is evaporated by the probe heat, scrubber solids tend to get deposited in
critical openings and bends. Also, the dilution probe’s inertial filter has also proven, at times, to
be a challenge to get the calibration gases through. This problem appears to be mitigated by
humidifying the calibration gas prior to injection.
2
Figure 1 is reproduced from a Thermo Electron brochure. The probe box is 10.5 inches wide x 18.5 inches high x
approximately 3 feet in length and weighs about 80 pounds. The fractions (i.e., 1/4 and 3/8) on the figure denote the
respective tube diameters (inches).
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4
Calibration Standards
Two forms of gas are needed for the calibration of Hg CEMS: elemental (Hg
0
) and oxidized
(Hg
+2
) mercury. The calibration gases can be generated on site for both species of mercury (Hg
0
and Hg
+2
), or supplied in compressed gas cylinders (only Hg
0
). EPA’s Part 75 rule requires
affected sources to use both Hg
0
and Hg
+2
standards, which must be NIST traceable.
3
To date,
no such NIST traceable standards exist or can be purchased. We understand from discussions
with EPA staff that NIST is close to having a protocol available to use for characterizing
vendors’ gas generators or gas cylinders. Perhaps by the end of 2006, vendors will have NIST
research grade materials (RGMs) for Hg
0
. Vendors would then follow a yet-to-be-developed
EPA protocol, using the RGMs, to mass produce either Hg gas generators or Hg calibration gas
cylinders.
RMB’s experience with Hg
0
gas cylinders has not been good. First, Hg
0
cylinder gas is very
expensive relative to the cost of SO
2
and NO
x
cylinder gases. Second, the cylinders do not last
as long as the SO
2
and NO
x
calibration gases, apparently because of the large calibration gas
volumes required to “flood the probe” for each calibration cycle. Lastly, we have actually
experienced a change in concentration during the life of a cylinder. We believe that during one
cold December night a bit of the Hg apparently condensed, lowering the effective Hg gas-phase
concentration in the cylinder. Once the cylinder returned to a more normal temperature, the
condensed Hg evaporated and, in effect, increased the cylinder concentration above the
“certified” value. For these reasons, RMB has stopped purchasing Hg cylinder gases for our Hg
CEMS Demonstration projects. The foundation of any successful CEMS program has always
been the availability of reliable and accurate calibration standards; thus, there is need for
considerable improvement in Hg calibration materials
The chemical properties of Hg
+2
compounds preclude them from being compressed into gases.
Thus, Hg
+2
gas cylinders cannot be manufactured. HoVaCal and MerCal gas generators can
produce HgCl
2
(oxidized Hg) gas. EPA and NIST are purportedly working on a traceability
protocol and ways to characterize the uncertainty for oxidized mercury gas generators.
Unfortunately, in the previously referenced conversation with EPA, Agency personnel
acknowledged that NIST is far behind schedule in developing RGMs for Hg
+2
. To date, we
believe only the HoVaCal device has been used in the field for Hg
+2
. The HoVaCal principal of
operation is based on using a high temperature evaporator (see Figure 2) to convert a liquid
HgCl
2
solution into a gas-phase mixture with nitrogen carrier gas. Using the HoVaCal is a
manual, labor-intensive process and requires considerable analytical chemistry skills because the
accuracy with which the liquid solutions are prepared basically control the accuracy of the
calibration standards.
3
See, for example, 40 C.F.R. §75.20(c) and Appendix A, §5.1.9.
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5
Figure 2
Schematic of HoVaCal Illustrating Principles of Operation
Sample Transport
This remains an area of uncertainty. At one of the EPA mercury CEMS evaluation sites, the
analyzers are located in a trailer, but the sample transport distance is less than 150 feet. At a
second mercury CEMS evaluation site, all the analyzers are located at the sampling elevation,
which is over 400 feet above grade. Unfortunately, most stack sampling locations are +300 feet
above grade but, unlike the second evaluation site, do not have adequate space to accommodate a
mercury CEMS. So, the questions are: can mercury be transported in excess of 300 feet in well-
heated (+350º F) sampling lines without losing any Hg, and if so, how maintainable are these
high technology sample lines.
Instrumental Reference Method
Historically (and CAMR is no different), EPA requires each installed CEMS to be “certified”
before the CEMS is used to collect compliance and/or allowance tracking data. The linchpin of
EPA’s CEMS certification process is the relative accuracy test audit (RATA). In simplest terms,
a RATA describes the process of collecting data with the appropriate EPA reference method and
simultaneously collecting data with the CEMS. The relative accuracy of the CEMS is then
calculated from the required minimum of nine valid paired runs. Relative accuracy is a statistic
designed to provide a measure of the systematic and random errors associated with the data from
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6
the CEMS – when compared to the EPA reference method. CAMR specifies the Ontario Hydro
Mercury (OHM) method
4
as the mercury reference method and is to be used to conduct a RATA.
The OH method is complicated and expensive to perform. Moreover, a very high level of
experience and attention to detail is required to obtain consistent results. In several field studies,
EPA contractors have consistently had difficulty achieving the required precision between paired
OH runs to be used in the RATA calculations. As stated above, CAMR requires a minimum of
nine valid paired runs for each RATA test. EPA contractors have typically conducted 12 paired
runs, but once the analysis are completed, find that less than nine runs are valid. But time is the
real enemy of the OH method. It has taken as along as 2 months to receive some of EPA’s
RATA results. Granted, this may not be indicative of the time required fo r utility companies to
receive results given the apparent EPA/EPA contractor bureaucracy. However, RMB expects
that many utility companies, which use outside laboratories for OH sample analysis, will find
that 3 to 4 weeks are required to obtain RATA results.
Clearly, there is a major need for EPA to quickly develop a mercury IRM. Without a mercury
IRM, RMB does not believe the electric utility industry has any chance of certifying mercury
CEMS in any reasonable timeframe or at any reasonable cost. One of the primary reasons utility
companies have experienced high CEMS availability and excellent CEMS accuracy under EPA’s
Acid Rain program is the advent of instrumental reference methods for SO
2
and NO
x
. RATA
results are available before the testing contractor leaves the plant. Thus, if there is a problem,
corrective action can be taken, and the RATA can be repeated – often without having to
reschedule the testing contractor. EPA is just beginning to field test the elaborate procedures
specified in the Agency’s conceptual IRM. Given the progress made to date, RMB does not
believe that EPA’s Hg IRM can be promulgated in time for the initial round of Hg CEMS
certification tests.
Mercury CEMS Accuracy
While on the subject of RATA testing, there is definitely a problem with EPA’s “alternative”
acceptance criterion. EPA’s alternative RATA criterion is if the mean reference method (RM)
concentration is less than 5.0 μg/m
3
, RATA results are acceptable if the absolute value of the
mean difference between the RM and CEMS values does not exceed 1.0 μg/m
3
.
5
While the
alternative criterion may be reasonable when the mean RM concentration is around 5 μg/m
3
, it
does not seem appropriate when the mean RM concentration is say, 1 μg/m
3
. In this example,
the potential error is effectively ±100 percent of the RM-determined emission concentration. We
believe the alternative criterion is important, but probably too lenient in its current form. The
major question is how much this “loophole” can be tightened while remaining reasonably
achievable.
4
The Ontario Hydro Mercury method is codified as ASTM D6784-02.
5
40 C.F.R., Part 75, Appendix B, Figure 2.
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7
SPECIAL CHALLENGES POSED BY ILLINOIS MERCURY PROPOSAL
States, such as Illinois, who are proposing mercury emission standards more aggressive than
CAMR are making unsupported assumptions with respect to the status of cont inuous mercury
monitoring technology. These States apparently assume that if mercury monitoring technology
is advanced enough to support EPA’s cap-and-trade program, then it is sufficient for their more
aggressive command-and-control regulations. There are at least two problems with this
assumption. First, EPA is not contending that Hg CEMS technology is 100 percent ready for
CAMR. For example, consider the following quote from a recent EPA report.
6
It is apparent through the results from each subsequent field evaluation that the
reliability and accuracy of Hg CEMS continues to improve. However, some
issues such as probe and umbilical operation continue to affect the reliability of
CEMS systems on wet stacks.
The Illinois proposed mercury rule will be impacted by the alternative RATA criterion discussed
above. RMB examined the mercury content of both eastern bituminous and western
subbituminous coals, and we observed nominal uncontrolled Hg emission concentrations in the
range of 6-10 micrograms per dry standard cubic meter (μg/dscm). Therefore, when 90%
reduction is applied as suggested by the Illinois proposed mercury rule, the expected stack
concentration will be in the 0.6-1.0 μg/dscm range. The Illinois proposed alternative Hg
emission limit of 0.0080 lb Hg/GWh gross electrical output is (assuming a gross heat rate of
approximately 9,500 Btu/kW-hr) equivalent to 0.84 lb/10
12
Btu. For coal-fired boilers, 0.84
lb/10
12
Btu converts to a flue gas concentration of approximately 0.81 microgram per wet
standard cubic meter (μg/wscm). It is important to convert the proposed Illinois Hg limit to
concentration units because many important Part 75 monitoring criteria are expressed in the units
of μg/dscm. For example, if stack gas Hg concentration is less than 5 μg/dscm during a RATA,
the continuous Hg monitoring system achieves EPA’s alterative RATA criterion if the mean
difference between the reference method and the monitor is ± 1μg/dscm. The Part 75
specification for daily calibration error checks is 5 percent of span or ± 1μg/dscm. In other
words, Part 75 permissible Hg monitoring tolerances are on the order of 1.23 (i.e., 0.81 x 1.23 =
1.0) times Illinois’ proposed Hg limit. Thus, the uncertainty of Hg measurements at the Illinois
proposed levels is, and is expected to remain, quite large. Although the proposed Hg emission
limitation is a few years away, it is too soon for IEPA to begin thinking about developing an
enforcement discretion policy, considering the likely uncertainty in the Hg monitoring data at
these very low concentrations. There is very little experience in measuring mercury emissions at
these low levels. There is a very real question whether such low mercury concentrations can be
measured reliably, accurately and precisely.
A second problem, which has already been alluded to, is that stringent Illinois Hg limit can result
in much lower and more difficult to measure Hg concentrations than will CAMR. EPA’s Part 75
monitoring requirements were designed for the SO
2
cap and trade program and as such includes
components such as missing data substitution, which are needed to accurately track emissions
during all operating hours. Some of those components may not be appropriate for tracking
6
“Mercury Emissions Monitoring Program for Coal-Fired Boilers under the Clean Air Mercury Rule Status
Report,” U.S. Environmental Protection Agency, Clean Air Markets Division, Washington, DC, February 2006.
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8
compliance with the Illinois proposed Hg emission rate limit. In particular, the missing data
substitution procedures implicit in the Illinois proposed rule are very problematic from two
different perspectives. First, although EPA’s Part 75 missing data procedures have worked well
to maintain high levels of SO
2
and NO
x
data availability, Hg CEMS technology is not as mature
as are those technologies. We expect that there will be much more missing data with the Hg
monitors and, as a result, that the punitive penalties for data substitution will be used more often.
Second, under an emission trading program, if a facility is plagued with significant missing
CEMS data, which produces emission estimates that are biased high, the facility can enter the
market and purchase additional allowances to offset the over-reporting. However, there are no
such alternatives with the Illinois proposed Hg emission standards. Moreover, EPA specifically
excludes substituted data for determining compliance with emission limits.
7
Therefore, we
strongly recommend that the IEPA develop compliance calculations that do not include
substituted data.
As previously discussed, as of today, there are no NIST traceable gas standards at all for mercury
and not likely to be any at the low levels contemplated by the Illinois proposed rule. The only
NIST traceable standards that are available are liquid standards in the oxidized mercury form,
and a special device (i.e., HoVaCal) is needed to use those standards on gas analyzers. In
addition, EPA’s current reference method for mercury (i.e., OHM Method) was not developed to
measure these low concentrations, and the method’s performance (e.g., precision, accuracy, and
bias) has never been evaluated at concentrations below approximately 3 μg/dscm. In short, there
are numerous issues associated with measuring mercury in the range of 1 μg/dscm. As the
reader should surmise, mercury CEMS have a ways to go before electric utility users can expect
to have reliable and accurate continuous measurement of mercury emissions.
CONCLUSIONS
Hg CEMS technology continues to be a “work in progress.” In addition to the EPRI Hg CEMS
Demonstration project, a number of utility companies are currently conducting their own field
evaluations of Hg CEMS from multiple vendors. Progress in operability is being reported,
although it is slow and not without setbacks. RMB is cautiously optimistic that time and market
demand will improve the quality and availability of Hg calibration materials. In the meantime,
States such as Illinois that are embarking on aggressive Hg emission regulations need to
recognize that measurement uncertainties are inherent at these low Hg concentrations.
Prevailing political considerations may drive the Hg limits quite low; however, the accuracy of
low-level Hg measurements is relatively non-partisan.
7
See, for example, §40 C.F.R. 60.49a(p)(4)(ii) – EPA’s Subpart Da emission monitoring provisions for new electric
utility steam generating units.
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ATTACHMENT 4:
DETERMINING THE SORBENT INJECTION RATE FOR CONTROL OF MERCURY EMISSIONS FROM
THE COAL-FIRED BOILERS
1.
Purpose
This attachment contains the requirements for the sorbent injection
systems for control of mercury emissions from the coal-fired boilers
if the boilers are subject to Condition 2.1.2(c)(ii)(A) and the
Permittee elects to comply with Permit Option B, i.e., use of a
control system for mercury emissions. Among other matters, this
attachment defines the process by which the applicable injection rate
of sorbent for such systems will be determined. These requirements
are included as an attachment to this permit, rather than in the body
of the permit, due to the detailed nature of the requirements and the
likelihood that these requirements will never take effect, as the
emissions of mercury from the coal-fired boiler are subject to
requirements adopted by USEPA pursuant to the Clean Air Act.
2.
General Requirements
a. The sorbent injection systems, including the selected sorbent(s)
shall be designed, constructed and maintained in accordance with
good air pollution control practices. For this purpose,
sorbent(s) shall be used, such as treated activated carbon, that
have been demonstrated to have high levels of effectiveness in
similar boiler/control device applications (or pilot tests on an
affected boiler). The systems shall have ample capacity to
handle and inject such sorbent(s), and the location, number and
type of injection ports designed for effective distribution of
sorbent in the flue gas. The Permittee shall submit a
demonstration to the Illinois EPA showing that the proposed
sorbent injection systems meet these criteria, for review and
approval by the Illinois EPA.
b. i. The sorbent injection systems shall each be operated to
inject sorbent at a rate, in lb/million Btu or lb/scf of
flue gas, that is at least at the rate that has been
determined to represent the maximum practicable degree of
removal for mercury, as previously established pursuant to
an evaluation of the effectiveness of the sorbent for
control of mercury conducted in accordance with Condition 3
or 4, below. This rate shall be maintained while coal is
being fired in the boiler, including periods of startup and
shutdown of the boiler.
ii. Notwithstanding the above, for purposes of evaluating the
performance of sorbent(s), the Permittee may operate without
the sorbent injection system in service or at low rates of
sorbent injection as necessary to (1) to prepare for the
formal evaluation of a sorbent, i.e., flushing residual
sorbent from the boiler and control train, and (2) determine
the “performance curve”, provided that the number and duration
of such operation is minimized to the extent reasonably
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necessary for this purpose. (Refer to Paragraph 5(a), below,
for the definition of the performance curve.) The Permittee
may also conduct pilot tests to confirm suitability of a
potential sorbent prior to a detailed evaluation, with prior
notification to the Illinois EPA describing such tests and the
available data indicating the suitability of the sorbent
material for effective control of mercury.
3.
Initial Evaluation of the Effectiveness of Sorbent Injection and
Establishment of the Optimum Sorbent Injection Rate
a. The Permittee shall perform an evaluation of the effectiveness of
injecting sorbent(s) for control of mercury in accordance with a
plan submitted to the Illinois EPA for review and comment.
i. The Permittee shall submit the initial plan to the Illinois
EPA no later than 180 days after initial start-up of a
boiler.
ii. The Permittee shall promptly begin this evaluation after a
boiler demonstrates compliance with all applicable short-
term emission limits as shown by emission testing and
monitoring. At this time, the Permittee shall submit an
update to the plan that describes its findings with respect
to control of mercury emissions during the shakedown of the
boilers, which highlights possible areas of interest for
this evaluation.
iii. This evaluation shall be completed and a detailed written
report submitted to the Illinois EPA within two years after
the initial startup of a boiler. This report shall include
proposed injection rate limit(s) for mercury emissions.
(See Condition 3(d)(i), below.)
iv. This deadline may be extended by the Illinois EPA for an
additional year if the Permittee submits an interim report
(1) demonstrating the need for additional data to
effectively evaluate sorbent injection and (2) includes an
interim limit for mercury injection that provides effective
control of mercury.
b. i. If the Permittee is conducting monitoring for mercury
emissions with a continuous method, the plan shall provide
for systematic review of mercury emissions as related to
variation in operation of the boiler, within the normal
range of boiler operation, including the effect of (1)
boiler load and combustion settings, including excess
oxygen, (2) operating data for the SCR system, including
the level of uncontrolled NO
x
before the SCR, as predicted
from boiler operating data, (3) operating data for the
scrubber, including pH of the scrubbant, and (4) operating
data for the wet WESP. As an alternative to reliance on
the measurements from a continuous monitoring system, the
Permittee may also supplement its monitoring with semi-
continuous monitoring, as provided below.
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ii. If the Permittee is conducting monitoring for mercury
emissions with a semi-continuous method, the sampling
periods shall be of an appropriate duration to cover a
representative selection of operation of the boiler.
c. In conjunction with such measurements of mercury emissions, the
Permittee shall sample and analyze the fuel supply to the boiler
so that representative data for the mercury content of the fuel
supply is available that correlates with emission measurements.
d. i. Unless the Permittee elects to conduct a supplementary
investigation, as provided below, the maximum practicable
degree of removal shall be injection of sorbent at a rate
that is twice the rate at the “transition point” from the
performance curve. (Refer to Paragraph 5(b), below, for
the definition of the transition point.) The sorbent
injection systems shall be operated at this rate.
ii. The Permittee may elect to conduct a supplemental
investigation of the effectiveness of injection of
sorbent(s) to determine whether effective control of
mercury, as generally required, is achieved with lower (or
higher) injection rates considering the operating rate or
other relevant operating parameters of the boilers or
control train, excluding periods of startup and shutdown of
boilers. For this purpose, the Permittee shall conduct
additional measurements and develop additional performance
curves for the control of mercury emissions for the boilers
under such operating conditions. In the report for the
evaluation, the Permittee shall explain why such operating
conditions affect the control of mercury emissions, provide
the criteria for identification of such operating
conditions, and identify the rates at which the sorbent
injection system must be operated during such conditions,
determined as twice the rate at the “transition point” on
the applicable performance curve.
4.
Subsequent Evaluation of the Effectiveness of Sorbent Injection and
Adjustment of the Optimum Sorbent Injection Rate
a. The Permittee shall repeat the evaluation described in
Condition 3, above, in the following circumstances:
i. If the initial evaluation of sorbent injection does not
demonstrate that 90 percent or more overall control of
mercury will be achieved, a new evaluation shall be
commenced two years after the initial evaluation was
completed.
ii. If the Permittee undertakes significant changes to the
mercury control system, e.g., use of a different sorbent or
changes in the location or type of injection ports, at the
conclusion of such changes.
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iii. If the Permittee undertakes significant changes to other
devices in the control train, e.g., use of a different
catalyst in the SCR or changes in the chemistry of the
scrubber which would generally act to reduce the
effectiveness of those devices in controlling or
facilitating the control of mercury emissions, at the
conclusion of such changes.
iv. If requested by the Illinois EPA for purposes of periodic
confirmation of the effectiveness of sorbent injection,
which request shall not be made more than once every five
years.
v. If the Permittee elects to perform such evaluation,
provided, however that the Permittee shall explain why such
an evaluation is being undertaken if it is less than two
years after completion of the last evaluation.
b. For the purpose of subsequent evaluation, the plan shall be
submitted to the Illinois EPA for review and approval at least 45
days before undertaking changes that trigger the need to perform
such an evaluation and the evaluation shall be completed in one
year, with opportunity for a 6-month extension.
c. As a subsequent evaluation reassesses the continuing operation of
the boilers or addresses the future operation of the boilers, the
results of the evaluation shall supersede the results of the
preceding evaluation and thereafter govern the operation of the
sorbent injection systems. For example, if the subsequent
evaluation was performed for a new sorbent material and the
boilers continue to be operated with such sorbent, operation
shall be governed by the results of the subsequent evaluation.
If the new sorbent will not continue to be used, operation shall
be governed by the results of the preceding evaluation for the
sorbent material that will be used.
5.
Definition of Terms As Related to Sorbent Injection for Control of
Mercury Emissions
For the purpose of these conditions, the following terms shall apply:
a. The “performance curve” is a graphical representation of the
effectiveness of a particular sorbent in controlling mercury
emissions, comparing the effectiveness of control with increasing
rates of sorbent injection.
A performance curve for injection of a particular sorbent
material is established by conducting a series of tests under
representative operating conditions of the boiler to measure
mercury emissions at different rates of sorbent injection
(typically starting from zero sorbent to high rates of sorbent
injection). For the purpose of presenting data, mercury
emissions and sorbent injection rates are expressed in terms of
the heat input to the boiler, in million or trillion Btu. This
accounts for any differences in the heat input during each test.
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In conjunction with these measurements of mercury emissions, the
coal supply to the boiler is analyzed for its mercury content.
This allows the effect of the sorbent to be expressed in terms of
control efficiency, calculated from the mercury emissions and the
amount of mercury present in the coal entering the boiler. This
also addresses any variation in the mercury content of the coal
supply to the boiler, so that another potential cause for
variation in emissions is directly accounted for. Otherwise,
changes in emissions due to variation in mercury content of coal
could not be accounted for and would be incorrectly assumed to be
due to changes in the rate of sorbent. The resulting data for
the relationship between control efficiency for mercury emissions
and the sorbent injection rate is then portrayed in graphical
form with a trendline that summarizes this relationship and the
performance of the particular sorbent for control of emissions.
b. The “transition point” is the theoretical point where the
extensions of two straight lines on the performance curve for a
particular sorbent, one representing the initial regime for
control of mercury emissions and the other representing the
terminal regime for control of emissions, would intersect.
Effectively, the transition portion on the performance curve
prepared from the evaluation of a particular sorbent is
simplified to a single point, the “transition point.”
In this regard, the performance curves for control of mercury
emissions for different sorbent materials and boilers show a
consistent form with two different regimes for control
effectiveness, an initial regime and a terminal regime, separated
by a transition. In the initial regime, there is a relatively
strong effect for control of mercury with injection of sorbent.
This appears on the left side of the graph, as the trendline
starts from the edge of the graph for the level of control for
mercury that is achieved without injection of any sorbent. In
the terminal regime, there is a much weaker effect for control of
mercury by additional injection of sorbent material. This
appears on the right side of the graph, as a nearly flat or flat
trendline starting from the left side of the graph. In the
transition separating the two regimes, the effect of sorbent
injection gradually shifts from one regime to the other. Such
transitions on graphs of this form are commonly referred to as
“shoulders,” given the resemblance to a human shoulder.
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Section 225.238 Temporary Technology-Based Standard for New Sources with EGUs
a)
General
1)
At a source with EGUs that previously had not had any EGUs that
commenced commercial operation before January 1, 2009, for an
EGU that meets the eligibility criteria in subsection (b) of this
Section, as an alternative to compliance with the mercury emission
standards in Section 225.237of this Subpart, the owner or operator
of the EGU may temporarily comply with the requirements of this
Section, through December 31, 2018, as further provided in
subsections (c), (d), and (e) of this Section.
2)
An EGU that is complying with the emission control requirements
of this Subpart by operating under this Section may not be
included in a compliance demonstration involving other EGUs at
the source during the period that such standard is in effect.
3)
The owner or operator of an EGU that is complying with this
Subpart by means of this Section is not excused from applicable
monitoring, recordkeeping, and reporting requirements in Sections
225.240 through 225.290 of this Subpart.
b)
Eligibility
To be eligible to operate an EGU under this Section, the following criteria
shall be met for the EGU:
1)
The EGU is subject to Best Available Control Technology (BACT)
for emissions of sulfur dioxide, nitrogen oxides and particulate
matter and is equipped and operated with the air pollution control
equipment or systems specified below, as applicable to the category
of EGU:
A)
For coal-fired boilers, injection of
halogenated activated
carbon
sorbent or other mercury control technique (e.g.,
reagent) approved by the Agency
.
B)
For an EGU firing fuel gas produced by coal gasification,
processing of the raw fuel gas prior to combustion for
removal of mercury with a system using
activated carbon
a
sorbent or other mercury control technique approved
by the Agency
.
2)
For an EGU for which injection of halogenated activated carbon
a
sorbent or other mercury control technique
is required by
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subsection (b)(1) of this Section, the owner or operator of the EGU
is injecting halogenated activated carbon
the sorbent or other
mercury control technique
in an optimum manner for control of
mercury emissions, which shall include injection of Alstrom,
Norit, Sorbent Technologies, or other halogenated activated
carbon
sorbent or other mercury control technique
that the
owner or operator of the EGU shows to have similar or better
effectiveness for control of mercury emissions, at least at the
following rates, unless other provisions for injection of
halogenated activated carbon
sorbent or other mercury control
technique
are established in a federally enforceable operating
permit issued for the EGU, with an injection system designed for
effective absorption of mercury. For this purpose, flue gas flow
rate shall be determined for the point of sorbent injection
or other
mercury control technique
(provided, however, that this flow rate
may be assumed to be identical to the stack flow rate if the gas
temperatures at the point of injection and the stack are normally
within 100º F) or may otherwise be calculated from the stack flow
rate, corrected for the difference in gas temperatures.
A)
For an EGU firing subbituminous coal, 5.0 pounds per
million actual cubic feet.
B)
For an EGU firing bituminous coal, 10.0 pounds per
million actual cubic feet.
C)
For an EGU firing a blend of subbituminous and
bituminous coal, a rate that is the weighted average of the
above rates, based on the blend of coal being fired.
D)
A rate or rates set on a unit-specific basis that are lower
than the rate specified above to the extent that the
owner or operation of the EGU demonstrates that such
rate or rates are needed so that sorbent injection or
other mercury control technique would not increase
particulate matter emissions or opacity so as to threaten
compliance with applicable regulatory requirements for
particulate matter or opacity or cause a safety issue.
c)
Compliance Requirements
1)
Emission Control Requirements
The owner or operator of an EGU that is operating pursuant to this
Section shall continue to maintain and operate the EGU to comply
with the criteria for eligibility for operation under this Section,
2
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except during an evaluation of the current sorbent, alternative
sorbents or other techniques to control mercury emissions, as
provided by subsection (e) of this Section.
2)
Monitoring and Recordkeeping Requirements
In addition to complying with all applicable reporting requirements
in Sections 225.240 through 225.290 of this Subpart, the owner or
operator of a new EGU operating pursuant to this Section shall
also:
A)
Monitor activated carbon
sorbent
feed rate to the EGU, flue
gas temperature at the point of sorbent injection
or other
mercury technique
, and exhaust gas flow rate from the
EGU, automatically recording this data and the
activated
carbon
sorbent
feed rate, in pounds per million actual cubic
feet of exhaust gas at the injection point, on an hourly
average.
B)
If a blend of bituminous and subbituminous coal is fired in
the EGU, records of the amount of each type of coal burned
and the required injection rate for injection of halogenated
activated carbon
sorbent
, on a weekly basis.
C)
If a control technique other than sorbent injection is
approved by the Agency, monitor appropriate
parameter for that control technique as specified by the
Agency.
3)
Notification and Reporting Requirements
In addition to complying with all applicable reporting requirements
in Sections 225.240 through 225.290 of this Subpart, the owner or
operator of an EGU operating pursuant to this Section shall also
submit the following notifications and reports to the Agency:
A)
Written notification prior to the month in which any of the
following events will occur: the EGU will no longer be
eligible to operate under this Section due to a change in
operation; the type of coal fired in the EGU will change;
the mercury emission standard with which the owner or
operator is attempting to comply for the EGU will change;
or operation under this Section will be terminated.
B)
Quarterly reports for the recordkeeping and monitoring
conducted pursuant to subsection (c)(2) of this Section.
3
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C)
Annual reports detailing activities conducted for the EGU
to further improve control of mercury emissions, including
the measures taken during the past year and activities
planned for the current year.
d)
Applications to Operate under the Technology-Based Standard
1)
Application Deadlines
A)
The owner or operator of an EGU that is seeking to operate
the EGU under this Section shall submit an application to
the Agency no later than three months prior to the date that
compliance with Section 225.237 of this Subpart would
otherwise have to be demonstrated.
B)
Unless the Agency finds that the EGU is not eligible to
operate under this Section or that the application for
operation under this Section does not meet the requirements
of subsection (d)(2) of this Section, the owner or operator
of the EGU is authorized to operate the EGU under this
Section beginning 60 days after receipt of the application
by the Agency.
C)
The owner or operator of an EGU operating pursuant to this
Section must reapply to operate pursuant to this Section if it
is planning a physical change to or a change in the method
of operation of the EGU, control equipment or practices for
injection of activated carbon
sorbent or other mercury
control technique
that is expected to reduce the level of
control of mercury emissions.
2)
Contents of Application
An application to operate pursuant to this Section shall be
submitted as an application for a new or revised federally
enforceable operating permit for the new EGU and include the
following:
A)
A formal request to operate pursuant to this Section
showing that the EGU is eligible to operate pursuant to this
Section and describing the reason for the request, the
measures that have been taken for control of mercury
emissions, and factors preventing more effective control of
mercury emissions from the EGU.
4
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B)
The applicable mercury emission standard in Section
225.237 with which the owner or operator of the EGU is
attempting to comply and a summary of relevant mercury
emission data for the EGU.
C)
If a unit-specific rate or rates for carbon
sorbent
injection
or other mercury control technique
are proposed
pursuant to subsection (b)(2) of this Section, detailed
information to support the proposed injection rates.
D)
An action plan describing the measures that will be taken
while operating under this Section to improve control of
mercury emissions. This plan shall address measures such
as evaluation of alternative forms or sources of
activated
carbon
sorbent or other mercury control technique
,
changes to the injection system, changes to operation of the
unit that affect the effectiveness of mercury absorption and
collection, and changes to other emission control devices.
For each measure contained in the plan, the plan shall
provide a detailed description of the specific actions that
are planned, the reason that the measure is being pursued
and the range of improvement in control of mercury that is
expected, and the factors that affect the timing for carrying
out the measure, with the current schedule for the measure.
e)
Evaluation of Alternative Control Techniques for Mercury Emissions
1)
During an evaluation of the effectiveness of the current sorbent,
alternative sorbent, or other technique to control mercury
emissions, the owner or operator of an EGU operating under this
Section need not comply with the eligibility criteria for operation
under this Section as needed to carry out an evaluation of the
practicality and effectiveness of such technique, as further
provided as follows:
A)
The owner or operator of the EGU shall conduct the
evaluation in accordance with a formal evaluation program
submitted to the Illinois EPA at least 30 days in advance.
B)
The duration and scope of the evaluation shall not exceed
the duration and scope reasonably needed to complete the
desired evaluation of the alternative control technique, as
initially addressed by the owner or operator in a support
document submitted with the evaluation program.
5
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C)
Notwithstanding 35 Ill. Adm. Code 201.146(hhh), the
owner or operator of the EGU shall obtain a construction
permit for any new or modified air pollution control
equipment to be constructed as part of the evaluation of the
alternative control technique.
D)
The owner or operator of the EGU shall submit a report to
the Illinois EPA no later than 90 days after the conclusion
of the evaluation describing the evaluation that was
conducted and providing the results of the evaluation.
2)
If the evaluation of the alternative control technique shows less
effective control of mercury emissions from the EGU than
achieved with the prior control technique, the owner or operator of
the EGU shall resume use of the prior control technique. If the
evaluation of the alternative control technique shows comparable
effectiveness, the owner or operator of the EGU may either
continue to use the alternative control technique in an optimum
manner or resume use of the prior control technique. If the
evaluation of the alternative control technique shows more
effective control of mercury emissions, the owner or operator of
the EGU shall continue to use the alternative control technique in
an optimum manner, if it continues to operate under this Section.
6
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