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MATS 2015: Are Your Units Ready?

Outage Management for Power Plants

July 15, 2014

Stephanie Sebor

Topics

• Emission Limits

• Monitoring and Testing Requirements

• Startup and Shutdown Work Practice

Standards

• Tune-up Work Practice Standards

• Electronic Reporting

• Compliance Extensions

• MATS Litigation

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MATS Emission Limits

• MATS sets emission limits for three categories of pollutants:

– Hg

• All EGUs must comply with the Hg emission limit.

– Acid gases (HCl or SO2)

• Default: HCl

• May comply with SO2 emission limit if equipped with a wet or dry

FGD or DSI and an SO2 CEMS.

– Non-Hg HAP metals

• Filterable PM,

• Total non-Hg HAP metals, or

• Individual non-Hg HAP metals

• MATS emission limits must be met at all times, except during periods of startup and shutdown, during which work practice standards apply.

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MATS Emission Limits

Non-Mercury Metallic HAP Acid Gas HAP

Regulatory

Option

Filterable PM Total HAP

Metals

Individual

HAP Metals

HCl

Surrogate

SO

2

Surrogate

Mercury

Existing Non-

Lignite Units

Existing

Lignite Units

0.030 lb/MMBtu

0.30 lb/MWh

0.030 lb/MMBtu

0.30 lb/MWh

New Units

(Revised Limits)

0.090 lb/MWh

0.000050 lb/MMBtu

0. 50 lb/GWh

0.000050 lb/MMBtu

0.50 lb/GWh

0.060 lb/GWh

See Table

2 to

Subpart

UUUUU

0.0020 lb/MMBtu

0.20 lb/MMBtu

0.020 lb/MWh

0.0020 lb/MMBtu

1.5 lb/MWh

0.20 lb/MMBtu

0.020 lb/MWh

1.5 lb/MWh

See Table

1 to

Subpart

UUUUU

0.010 lb/MWh

1.0 lb/MWh

1.2 lb/TBtu

0.013 lb/GWh

4.0 lb/TBtu

0.040 lb/GWh

0.0030 lb/GWh

0.040 lb/GWh

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Monitoring and Testing Requirements

• Depending on the pollutant or surrogate selected, compliance may be demonstrated using either a CMS or stack testing

– Hg – Use either Hg CEMS or Hg sorbent trap

– SO2 – Must use SO2 CEMS

– HCl, PM and non-Hg HAP metals – Use either CEMS or quarterly stack testing

• All continuous monitoring systems must be operated during startup and shutdown.

• Each quarterly stack test must be completed within 80 to

100 calendar days after the previous test

– Can skip stack testing in quarters during which less than 168 boiler operating hours occur, but at least one test must be conducted per calendar year.

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Should I elect to demonstrate compliance using CEMS?

• EPA assumed that “EGUs should be considered to be operating normally at all times electricity is generated.”

• Variable emissions that occur after startup ends but before an EGU has reached a stable operating load will be counted by CEMS and sorbent trap monitoring systems.

– Sorbent trap monitoring systems cannot differentiate between startup/shutdown emissions and normal operation.

• Default diluent capping

– Without diluent cap values at low CO

2 or high O

2 concentrations, emission rates calculated using EPA’s Ffactor methodology will be inaccurately high, approaching infinity.

– MATS currently allows default diluent caps to be used to calculate Hg emission rates, but not for other pollutants.

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Startup and Shutdown Work Practice Standards

• EGUs must comply with work practice standards, rather than the MATS emission limits, during startup and shutdown.

• Startup ends when any of the steam from the boiler is used to generate electricity for sale over the grid or for any other purpose (including onsite use).

– Under the current definition, startup ends at 1 MW.

• Shutdown begins either when none of the steam from the boiler is used to generate electricity for sale over the grid or for any other purpose (including onsite use), or at the point of no fuel being fired in the boiler, whichever is earlier.

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Operation of Air Pollution Control Devices

• Once a unit converts to firing coal during startup, all applicable control technologies must be engaged, except dry scrubber and SCR , which may be started “appropriately to comply with relevant standards applicable during normal operation.”

– SNCRs, WFGDs, ESPs, and limestone injection systems in

CFBs must be engaged upon firing coal, regardless of temperature restrictions or manufacturers’ specifications.

• EGUs must operate all applicable control technologies while firing coal during shutdown.

No exception for SCRs, DFGDs, or any other air pollution control devices.

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Reconsideration of the SUSD Work Practice Standards

• EPA announced reconsideration of the startup and shutdown work practice standards on November 16,

2012

– Proposed to allow SNCRs and limestone injection at

CFBs to be engaged “as expeditiously as possible” after an EGU begins firing coal during startup.

• Still no exception for ESPs.

– Proposed to no longer require engagement of SCR, dry scrubber, SNCR, and limestone injection at CFBs while firing coal during shutdown.

• EPA did not finalize these changes when it finalized the new source MATS reconsideration .

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Reconsideration of the SUSD Work Practice Standards

• EPA re-opened the public comment on the startup and shutdown work practice standards reconsideration on

June 25, 2013.

• EPA’s analysis “could support defining the end of startup at coal-fired EGUs as occurring at 25 percent of nameplate capacity plus 3 hours or the start of electricity generation plus 6 hours, whichever comes first.”

Some EGUs cannot meet the MATS emission limits at EPA’s suggested end of startup, particularly CFBs, which have longer startup times.

• Over a year later, EPA has not yet finalized the proposed changes to the work practice standards.

© 2014 Winston & Strawn

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Reconsideration of the SUSD Work Practice Standards

• MATS does not address how the startup and shutdown work practice standards should apply to EGUs venting to a common stack.

– Commenters have suggested that the startup and shutdown work practice standards apply to all units venting to a common stack when any one of the units is starting up or shutting down while any other unit is in operation.

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Tune-Up Work Practice Standards

• Two parts to a MATS tune-up:

– Preventative maintenance work performed during outage

– Boiler tuning work performed while the unit is operating

• MATS does not specify how soon the boiler tuning must be completed after the preventative maintenance work is completed.

– It may be preferable to allow time between when the unit comes out of outage before conducting the boiler tuning work to allow the unit to become seasoned and normalized after the outage.

• Keep this timing in mind when scheduling initial compliance tuneup before MATS initial compliance deadline.

• EPA drafted the tune-up work practice standards with PC units in mind.

– The tune-up work practice standards contain a number of requirements that do not apply to CFB units.

© 2014 Winston & Strawn

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Electronic Reporting

• MATS requires three types of reporting: semiannual compliance reports, quarterly stack test reports, and quarterly CMS reports.

• The first semiannual compliance report will cover the period from

April 16, 2015 through December 31, 2015 and must be submitted to EPA by January 31, 2016 using the Compliance and Emissions

Data Reporting Interface (“CEDRI”).

• Quarterly stack test results must be submitted to EPA within 60 days after the date of completing each performance test using

EPA’s Electronic Reporting Tool (“ERT”).

• Quarterly Hg CEMS and sorbent trap monitoring reports must be submitted 30 days after each calendar quarter using EPA’s

Emissions Collection and Monitoring Plan System (“ECMPS”) client tool.

• PM and SO2 CEMS data must be submitted to EPA 60 days following the end of each calendar quarter using CEDRI.

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Electronic Reporting

• CEDRI does not appear to have any specific reporting format for

MATS reporting at this time.

• ECMPS does not yet support submission of Hg sorbent trap or

SO2 CEMS data.

– EPA is conducting beta testing of a MATS-friendly version of ECMPS

• Reporting stack test results, PM CEMS data, RCA/RRA data, and

RATA data will be cumbersome and time-consuming due to limitations of the CEDRI and ERT systems.

• EPA is aware of these electronic reporting issues but has not yet revised the rule to streamline electronic reporting.

© 2014 Winston & Strawn

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MATS Compliance Extensions

• One year extensions from state permitting authorities are available under § 112(i)(3)(B) where additional time is necessary for installation of controls.

– EPA stated that these one-year extensions should be broadly available .

• EPA interprets installation of controls broadly

– Installation of onsite replacement power, such as a simple cycle gas turbine.

– Running a retiring unit for reliability reasons while related units are installing pollution control upgrades

• EPA recently reported that less than ¼ of utilities have requested compliance extensions.

– Approximately 80 extensions have been granted to date.

• Deadline to submit an extension request is December 17, 2014.

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MATS Compliance Extensions

• OECA memo outlines limited circumstances under which a oneyear extension for reliability purposes may be granted in an administrative order:

– Where an EGU that otherwise would have been deactivated is required to operate in noncompliance with the MATS for an additional year, or

– Where an EGU has a delay in installation of controls due to factors beyond the control of the owner/operator and is required to run for reliability purposes, or needs to operate because another unit has had such a delay.

• Timeline for obtaining an AO has already started.

• OECA cannot issue an AO until April 16, 2015.

• OECA memo is not legally enforceable and can be withdrawn at any time.

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MATS Litigation

• D.C. Circuit upheld MATS on April 15, 2014

– Court upheld EPA’s “reasonable and necessary” determination.

– Court upheld process by which EPA established Hg emission limits.

– Court held that a separate subcategory was not required to be established for circulating fluidized bed units.

– Court held that EPA was not required to set separate standards for major sources and area sources of HAPs.

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Questions?

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Stephanie Sebor

35 W. Wacker Drive

Chicago, IL 60601

(312) 558-7341 ssebor@winston.com

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