Multi-Emission Legislation Position Paper 3/2002

Operators of industrial boilers are heavy users of utility generated power and through their electricity prices will pay a substantial portion of the utility industry’s cost of meeting multi-emission legislation requirements.

Any additional impact on non-utility industries in order to minimize adverse economic impact should be considered, including implementation, allocation, technical feasibility, etc.
Any increased gas demand must be mitigated by reasonable emissions control requirements and policies that provide commensurate gas supplies so that industry can retain global competitiveness.

Differences between industrial and utility boilers should not be overlooked. The typical utility boiler is much larger than the average industrial boiler. As a result, industrial boilers do not enjoy the economies of scale that utility boilers do and must pay more than utilities to remove a given amount of emissions.

Multi-Emission Legislation

Multi-Emission Legislation Should Clarify and Consolidate Air Emission Requirements.

Any multi-emission program must be coordinated and coupled with existing programs and any overlap eliminated, i.e., NSR, NSPS, BART, and NESHAP.

Any comprehensive cap-and-trade program must be accompanied by substantial and appropriate reform of inconsistent regulatory approaches.

Multi-Emission Reduction Legislation Should Only Address NOx, SO2, and Mercury.

Levels of mercury control attributable to NOx and SO2 controls should first be evaluated before additional mercury controls are adopted.

CO2 should be separately addressed in a comprehensive program that could provide a balanced approach that equitably addresses the issue in the most effective manner with minimal damage to the economy.

Any Multi-Emission Initiative Should Provide a Clear Objective, Provide for Fuel Flexibility and Have Reasonable, Achievable and Cost Effective Caps.

A multi-emission control program should clearly articulate the improvements that are attributable to it over and above those already in place.

Emissions limits should not be so stringent as to directly or indirectly lead to levels of fuel switching or equipment replacement that cause the demand for natural gas to exceed the deliverable supply.

Logistics of a Multi-Emission Initiative Should Be Based on a Number of Considerations

The level of reductions of each emission must be considered in combination when determining potential environmental impact and approaches to compliance with associated costs rather than independently, since individual units will need to address all requirements at once.

Emission reduction levels and timing must be set in a manner that provides full consideration of all relevant factors such as technological capabilities, impacts on other types of emissions and on energy use, and economics that consider site specific variabilities and complexities.

Applicability of a Multi-Emission Initiative Should be Consistent with Existing Programs

The existing Acid Rain Title IV definitions of affected facilities (specifically, Clean Air Act § 402(17), (24) and (25), 42 U.S.C.S. § 7651a (2001); § 405(g)(6)(A), 42 U.S.C.S. § 7651d (2001); and § 410(d), 42 U.S.C.S. § 7651i (2001)) should continue to be used to provide consistency with existing programs. See “Position Paper” for definitions.

New and existing affected units that have undergone BACT/LAER or MACT evaluations since 1990 should be considered as meeting the reduction requirements under any multi-emission legislation for a specified period of time.

Provisions for Voluntary Opt-In Should be Provided

Opt-ins could be of use to certain sources providing that requirements are established on an equitable cost-effective basis, recognizing the inherent differences between industrial and utility units in areas of operational flexibility, high levels of required reliability, fuel flexibility and diversity, and higher control costs due to economies of scale.

NSR Clarification

NSR Clarification is Necessary to Improve Energy Efficiency and Facility Safety.

Administrative reform is needed to allow improvements in energy efficiency, and recovery of previously lost (but permitted) capacity without triggering NSR provisions. Without timely clarification, the current NSR program will continue to undermine environmental, safety, and energy security objectives.

Greater explanation of these brief points plus explanation on the difference between industrial boilers and utility boilers is provided in CIBO’s “Multi-Emission Position Paper”, February 2002.