Westlake Chemical Corporation Longview Operations P.O. Box 8388 Longview, TX 75607 February 16, 2016 Joyce Spencer Texas Commission on Environmental Quality – MC 205 Office of Legal Services General Law Division P.O. Box 13087 Austin, Texas 78711-3087 Re: Rule Project Number 2006-034-117-EN Proposed Rule on Chapter 117 Reformat, NOx Controls for DFW 8-Hour Ozone Attainment Demonstration, and Revisions to the Residential Water Heater Rules Dear Ms. Spencer: Westlake Longview Corporation ("Westlake"), a wholly owned subsidiary of Westlake Chemical Corporation, appreciates the opportunity to comment on the Texas Commission on Environmental Quality’s (TCEQs) proposed rulemaking on the Chapter 117 Reformat, NOx Controls for DFW 8Hour Ozone Attainment Demonstration, and Revisions to the Residential Water Heater Rules. The proposal prepared by the TCEQ provides requirements for the Northeast Texas attainment area, to be implemented prior to March 1, 2009, to help the DFW area attain the eight-hour ozone standard. These comments are structured to give the TCEQ feedback as to the feasibility of accomplishing the proposed emission reductions for Westlake's Longview, Texas site. For reasons detailed below, Westlake requests that the TCEQ remove two-cycle, lean-burn engines from the East Texas Combustion Rule for the DFW SIP (Subchapter E, Division 4). Westlake believes that imposing controls on attainment areas outside of the immediate DFW region is not technically justified. Current control technologies available for application to Westlake's existing two-cycle, lean-burn type engines, are unproven. Furthermore, even if such technologies were to be implemented, technology suppliers cannot guarantee that the emission limits for NOx, proposed by the TCEQ, can be consistently met. The costs to install control technologies or proceed with engine replacement far exceed the costs projected by the TCEQ. In addition, their potential impact on air quality in the DFW non-attainment area is not large enough to justify such expenditure in an attainment area. The compliance deadline of March 1, 2009 is unattainable because of the large number of compressor engines in this area. It would be technically infeasible for the limited number of engine manufacturers to physically install add-on controls or supply replacement engines within this limited timeframe. Westlake Chemical Response: Rule Project Number 2006-034-117-EN Page 2 of 5 Westlake offers the following comments on the proposed Chapter 117, Subchapter E, Division 4, East Texas Combustion: 1. Imposing regulations on emission sources outside of the DFW non-attainment boundaries to achieve compliance should be a last resort, and is not justified. The East Texas Combustion Rule requires owners and operators of new and existing reciprocating internal combustion engines with a horsepower rating of 50 or greater to reduce emissions of NOx to a specified rate depending on the age and type of engine. It is unreasonable to impose penalties on counties outside of the DFW region, especially when they are not even neighboring counties to the DFW region and are located downstream of prevailing winds. Therefore, they have minimal, if any, direct impact on the DFW groundlevel ozone. The Texas Commission on Environmental Quality, Chapter 117 – Control of Air Pollution from Nitrogen Compounds, Rule Project No. 2006034-117-EN, Preamble page 21 states: "The majority of NOx in the nonattainment area comes from onroad and nonroad mobile sources. Therefore, NOx reductions from sources outside of Dallas-Fort Worth eight-hour ozone nonattainment area must be made so the Dallas-Fort Worth eight-hour ozone nonattainment area can demonstrate attainment with the NAAQS for ozone." If mobile sources are the major source of ozone in the DFW region, then the first step would logically be to reduce emissions from the mobile sources. All potential source reductions within the DFW region should be fully explored before imposing controls on attainment areas outside of the DFW region. The sources owned and operated by Westlake are located over 100-miles from the DFW area and, due to prevailing weather patterns, have little to no impact on the DFW ozone levels. By the TCEQ's own analysis, reducing the NOx emissions from all the East Texas combustion units will reduce groundlevel ozone in the DFW area by only 0.2 – 0.3 ppb.1 The 0.3 ppb ozone reduction is less than 0.5% of the permitted groundlevel ozone standard and is well within the margin of error of the modeling program. Therefore, any action taken by East Texas combustion unit owners would be insignificant to the overall DFW NOx reduction effort. 2. TCEQ’s proposed control technologies are not technically feasible for Westlake's Engines. In the proposed rule TCEQ states that the control technology of NSCR with an EGR kit can be installed to meet the new emission limits it proposes for lean-burn engines.2 This statement is not technically correct. EGR, which stands for Exhaust Gas Recirculation, is an untested and unproven technology for large bore, slow speed, natural gas fueled engines (which is what Westlake owns and operates). Representatives from Cooper-Bessemer (original engine manufacturer), Wartsila, and Dresser-Rand have all communicated to Westlake that EGR technology is technically infeasible with Westlake's engines. EGR is only applicable for lean burn diesel engines, which Westlake does not own or operate. Texas Commission on Environmental Quality, Chapter 117 – Control of Air Pollution from Nitrogen Compounds, Rule Project No. 2006-034-117-EN, Preamble p. 22. 2 Texas Commission on Environmental Quality, Chapter 117 – Control of Air Pollution from Nitrogen Compounds, Rule Project No. 2006-034-117-EN, Preamble p. 160. 1 Westlake Chemical Response: Rule Project Number 2006-034-117-EN Page 3 of 5 The TCEQ also states that SCR (Selective Catalytic Reduction) is another possible control technology for lean burn engines.3 As stated earlier, Westlake met with Cooper-Bessemer (original engine manufacturer), Wartsila, and Dresser-Rand and received quotes for installing SCR type controls on the 17 engines at the Longview facility. Several concerns make this option impractical for Westlake's large bore, slow speed engines including: space constraints, marginal exhaust temperatures and short catalyst life on two-cycle engines. Additionally, none of the aforementioned technology vendors will guarantee that the performance will meet TCEQ proposed requirements. The original engine manufacturer (Cooper-Bessemer) has tried to implement SCR technology on this type of lean-burn engine, but was unsuccessful due to the low exhaust gas temperature. In a June 11, 2003 Northeast Texas Air Care (NETAC) report it states that "…retrofit with SCR equipment is not recommended as the 2-cycle design results in much higher contaminant concentrations in the exhaust, which leads to rapid destruction of the catalyst." Since EGR with NSCR as well as SCR are not viable options for Westlake's engines, the only alternatives are clean/lean burn units or replacement with electric motors. Clean/lean burn technology is a form of Low Emission Combustion (LEC) modifications as mentioned in the Texas Commission on Environmental Quality, Chapter 117 – Control of Air Pollution from Nitrogen Compounds, Rule Project No. 2006-034-117-EN, Preamble, p. 160. However, LEC modifications have never been attempted on GMX-type engines. Thirteen (13) of the seventeen (17) engines owned and operated by Westlake are GMX-type engines. Therefore, any attempt to install clean/lean burn technology on the GMX-type engines would be unprecedented. Clean/lean burn and replacement with electric motors are much more expensive than the estimates provided by the TCEQ (see next section below). 3. The costs of compliance with the East Texas Combustion Rule far exceeds the costs estimated by the TCEQ and could result in adverse economic impact to the Longview area. The actual cost to implement the improvements to the combustion sources owned and operated by Westlake is much higher than the estimates provided by the TCEQ. Westlake owns and operates seventeen (17) natural gas fueled (large-bore, slow speed) reciprocating internal combustion engines, which are of the two-cycle, lean-burn variety. Cooper-Bessemer, Dresser-Rand, Wartsila, and Enginuity have all examined Westlake's engines and have quoted cost figures of approximately $1MM per engine for clean/lean burn technology or replacement with electric motors. This results in a total cost of $17MM for just 17 engines as compared to the TCEQ's estimate of $20.5MM to $81.3MM for all 297 lean-burn engines in the Northeast Texas area.4 The estimated cost to Westlake alone is nearly equivalent to the lower range of the TCEQ cost estimate for providing controls on all 297 lean-burn engines in the entire Northeast Texas region. There are fundamental design differences between two-cycle and four-cycle engines that make the cost to achieve the same emission rate much more expensive for two-cycle engines than for fourcycle engines. These fundamental differences result in exorbitant costs that are an unfair burden to Westlake and other engine owners/operators of two-cycle engines in the East Texas region. Westlake believes that the majority of the emissions in this area result from operation of the four3 Ibidem, p. 160. Texas Commission on Environmental Quality, Chapter 117 – Control of Air Pollution from Nitrogen Compounds, Rule Project No. 2006-034-117-EN, Preamble p. 201. 4 Westlake Chemical Response: Rule Project Number 2006-034-117-EN Page 4 of 5 cycle engines which can be far more economically converted. The only two feasible options for the reduction of NOx emissions from two-cycle engines are expensive and approach costs on the order of $10,000 per ton of NOx removed. This cost far exceeds the TCEQ's estimate of less than $2,000 per ton of NOx removed. Due to the high cost of retrofitting and/or replacing existing engines, it is very likely that some of the eight reactor lines at the Polyethylene No. 1 facility operated by Westlake at the Longview plant would be shut down if the East Texas Combustion Rule is implemented as proposed. Shutting down a portion of the eight reactor lines would result in the loss of jobs, both directly and indirectly. The Polyethylene No. 1 facility employs approximately 100 people directly. In addition, the Polyethylene No.1 facility feeds product to two other operating areas on the Longview site (Polyethylene Processing and Epolene). Polyethylene Processing and Epolene employ an additional 75 people that would likely be impacted by any partial shutdown of the Polyethylene No. 1 facility. Finally, dozens of other jobs would be impacted indirectly (service groups that provide support to the Polyethylene and Epolene production areas). Since the commission's cost numbers are underestimated, the resulting conclusion regarding local employment impact is also underestimated. The Texas Commission on Environmental Quality, Chapter 117 – Control of Air Pollution from Nitrogen Compounds, Rule Project No. 2006-034-117-EN, Preamble page 201 states: "The commission has reviewed this proposed rulemaking and determined that a local employment impact statement is not required because the proposed rules do not adversely affect a local economy in a material way for the first five years that the proposed rules are in effect." As demonstrated by the above argument, this proposed rule could have very adverse affects on Westlake Longview Corporation's production facility and the surrounding community. In addition to the upfront capital cost, there is also a large cost associated with installation of the new controls. Due to the complexity of the control equipment and the congested operating area, it is estimated that each reactor line will need to be decommissioned for a period of 4 to 8 weeks to install the engine control equipment. There are 8 reactor lines in the PE No. 1 unit. This amounts to between 8 and16 months of total downtime, severely curtailing the annual production capacity and adversely affecting the economic viability of the PE No.1 unit. 4. It is technically infeasible for industry to meet the March 1, 2009 compliance deadline proposed in the TCEQ DFW SIP. The TCEQ requested comments on the technical feasibility of installing controls and the availability of control equipment by March 1, 2009.5 It is not technically feasible for the companies in the Northeast Texas area to engineer, order, install modifications and/or replace the number of engines the East Texas Combustion Rule would mandate by March 1, 2009. If this proposed rule is adopted by the TCEQ in May, 2007 then this leaves just 20 months to plan, engineer, purchase, install, and test replacement engines or control technologies to meet the new emission rates. This is an unreasonable timeframe to accomplish this task, especially considering that there are approximately 297 lean burn engines in the 39 county area that will require controls. It is not reasonable to expect that the limited number of engine manufacturers and suppliers will Texas Commission on Environmental Quality, Chapter 117 – Control of Air Pollution from Nitrogen Compounds, Rule Project No. 2006-034-117-EN, Preamble p. 5. 5 Westlake Chemical Response: Rule Project Number 2006-034-117-EN Page 5 of 5 have the ability to make the extensive modifications and/or replacements required to comply with the timing of this proposed rule. In addition, note that the new rule requires emission testing within 60 days after controls or replacement engines are installed. Since there are a limited number of testing companies available to perform these tests, it may be unreasonable to complete all the tests required in this region within that timeframe. Westlake appreciates the agency’s consideration of these comments. If there are any questions, please don't hesitate to contact either of us. Sincerely, Timothy McMeen Environmental Coordinator Longview Operations Westlake Chemical Corporation Tel: (903) 237-6093 Email: tmcmeen@westlakechemical.com Raymond E. Laplante, Jr. Manager, Longview Plant Westlake Chemical Corporation Tel. (903) 237-5021 Email: rlaplante@westlakechemical.com