DEPARTMENT OF NATURAL RESOURCES AND ENVIRONMENTAL CONTROL

Division of Air and Waste Management

Statutory Authority: 7 Delaware Code, Chapter 60 (7 Del.C., Ch. 60)

7 DE Admin. Code 1142

PROPOSED

REGISTER NOTICE

SAN # 2010-22

1142 Specific Emission Control Requirements

1. TITLE OF THE REGULATIONS:

7 DE Admin. Code 1142.2, Control of NOx Emissions from Industrial Boilers and Process Heaters at Petroleum Refineries

2. BRIEF SYNOPSIS OF THE SUBJECT, SUBSTANCE AND ISSUES:

The Department of Natural Resources and Environmental Control (DNREC), Division of Air Quality, will conduct a public hearing on proposed amendments to Section 2.0 of 7 DE Admin. Code 1142, “Control of NOx Emissions from Industrial Boilers and Process Heaters at Petroleum Refineries.” These amendments are based on a May 31, 2010 agreement between DNREC and the Delaware City Refining Company, LLC (“DCRC”) which states that DNREC will propose to revise Section 2.0 of 7 DE Admin. Code 1142 to provide for a facility-wide NOx emission cap compliance alternative to the existing unit specific NOx emission limitations.

In addition, DNREC will propose a document for submittal to the Environmental Protection Agency (EPA) as a State Implementation Plan (SIP) revision. This document, “Demonstration that Amendments to Section 2.0 of 7 DE Admin. Code 1142, Control of NOx Emissions from Industrial Boilers and Process Heaters at Petroleum Refineries, Do not Interfere with Any Applicable Requirement of the Clean Air Act (CAA)” demonstrates that these amendments to 7 DE Admin. Code 1142 will not interfere with attainment or maintenance of any National Ambient Air Quality Standard (NAAQS), or any other applicable requirement of the CAA.

3. POSSIBLE TERMS OF THE AGENCY ACTION:

None.

4. STATUTORY BASIS OR LEGAL AUTHORITY TO ACT:

7 DE Code, Chapter 60, Environmental Control.

5. OTHER REGULATIONS THAT MAY BE AFFECTED BY THE PROPOSAL:

None.

6. NOTICE OF PUBLIC COMMENT:

The public hearing on this proposed amendments to 7 DE Admin. Code 1142, and the associated SIP revision, will be held February 1, 2011, beginning at 6:00 p.m., in DNREC’s R&R Bldg. Auditorium, 89 Kings Highway, Dover, Delaware 19901.

7. PREPARED BY:

Ron Amirikian (302) 739-9402 December 8, 2010 Email address: ronald.amirikian@state.de.us

1142 Specific Emission Control Requirements

12/12/2001

1.0 Control of NOx Emissions from Industrial Boilers

1.1 Purpose

New Castle County and Kent County are part of the Philadelphia-Wilmington-Trenton 1-hour ozone non-attainment area. All areas of Delaware impact this non-attainment area. On December 19, 1999, the EPA identified an emission reduction “shortfall” associated with this non-attainment area. Promulgation of 1.0 of this regulation is one measure that the Department is taking to mitigate this shortfall.

In determining the applicability of 1.0 of this regulation, the Department attempted to minimize the impact on facilities that recently installed NOx controls under 7 DE Admin. Code 1112 (NOx RACT) and 7 DE Admin. Code 1137/1139 (NOx Budget Trading Program). The Department did this by regulating only large sources that, as of the effective date of 1.0 of this regulation, emitted NOX at a rate greater than the rate identified in Table 3-1 of 7 DE Admin. Code 1112, were not equipped with NOx emission control technology, and were not subject to the requirements of 7 DE Admin. Code 1139. In effect, 1.0 of this regulation regulates sources that remain high NOx emitters after the application of RACT and post RACT requirements, and that have not committed substantial capital funds to reduce NOx emissions.

1.2 Applicability

1.2.1 The provisions of 1.0 of this regulation apply to any person that owns or operates any combustion unit with a maximum heat input capacity of equal to or greater than 100 million btu per hour, except that 1.0 of this regulation shall not apply to any unit that, as of the effective date of 1.0 of this regulation:

1.2.1.1 Emits NOx at a rate equal to or less than the rate identified in Table 3-1 of DE Admin. Code 1112.

1.2.1.2 Is equipped with low NOx burner, flue gas recirculation, selective catalytic reduction, or selective non-catalytic reduction technology.

1.2.1.3 Is subject to the requirements of 7 DE Admin. Code 1139.

1.2.2 The requirements of 1.0 of this regulation are in addition to all other state and federal requirements.

1.2.3 Affected persons shall comply with the requirements of 1.3 of this regulation as soon as practicable, but no later than May 1, 2004.

1.3 Standards.

1.3.1 The NOx emission rate from any unit subject to 1.0 of this regulation shall be equal to or less than the following:

1.3.1.1 Between May 1st through September 30th of each year, inclusive: 0.10 lb/mmBTU, 24-hour calendar day average.

1.3.1.2 During all times that gaseous fuel is being fired: 0.10 lb/mmBTU, 24-hour calendar day average.

1.3.1.3 During all times not covered by 1.3.1.1 and 1.3.1.2 of this regulation: 0.25 lb/mmBTU, 24-hour calendar day average.

1.3.2 As an alternative to compliance with the requirements of 1.3.1 of this regulation, compliance may be achieved through the procurement and retirement of NOx allowances authorized for use under 7 DE Admin. Code 1139, as follows:

1.3.2.1 The actual 24-hour calendar day average NOx emission rate in pounds per million btu shall be determined for each day of unit operation, using CEMs operated in accordance with 1.4 of this regulation.

1.3.2.2 The actual heat input to each unit in million btu shall be determined for each day of unit operation, using methods proposed by the person subject to 1.0 of this regulation and acceptable to the Department.

1.3.2.3 0.10 or 0.25, as applicable and consistent with 1.3.1 of this regulation, shall be subtracted from the rate determined in 1.3.2.1 of this regulation.

1.3.2.4 To obtain the number of pounds of NOx emitted for a particular day, the emission rate determined in 1.3.2.3 of this regulation shall be multiplied by the heat input to the unit for that day determined in 1.3.2.2 of this regulation. If the emission rate determined in 1.3.2.3 of this regulation is equal to or less than zero, then the number of pounds of NOx emitted for that day shall be zero.

1.3.2.5 Not later than the 20th day of each month:

1.3.2.5.1 The number of pounds of NOx emissions calculated pursuant to 1.3.2.4 of this regulation shall be summed for each calendar month, the result shall be divided by 2000, and shall be rounded to the nearest whole ton.

1.3.2.5.2 For each ton of NOx emissions calculated pursuant to 1.3.2.5.1 of this regulation, records shall be maintained demonstrating that one NOx allowance owned by the person subject to 1.0 of this regulation is identified and available, by serial number, for retirement.

1.3.2.6 Not later than February 1 of each calendar year, the NOx allowances identified pursuant to 1.3.2.5.2 of this regulation for the previous calendar year, shall be submitted to the Department for retirement. Such submission shall detail the calculations specified in 1.3.2.1 through 1.3.2.5 of this regulation, and shall indicate the serial number of each allowance to be retired.

1.4 Monitoring Requirements. Compliance with the NOx emission standards specified in 1.0 of this regulation shall be determined based on CEM data collected in accordance with the requirements of 3.1.2 of 7 DE Admin. Code 1117 (Performance Specification 2), and in compliance with the requirements of 40 CFR, Part 60, Appendix F.

1.5 Recordkeeping and Reporting Requirements.

1.5.1 Not later than 180 days after the effective date of 1.0 of this regulation, any person subject to 1.0 of this regulation shall develop, and submit to the Department for approval, a schedule for bringing the affected emission unit or units into compliance with the requirements of 1.0 of this regulation. Such schedule shall include, at a minimum, all of the following:

1.5.1.1 The method by which compliance will be achieved

1.5.1.2 The dates by which the affected person commits to completing the following major increments of progress, as applicable:

1.5.1.2.1 Completion of engineering;

1.5.1.2.2 Submission of permit applications;

1.5.1.2.3 Awarding of contracts for construction or installation;

1.5.1.2.4 Initiation of construction;

1.5.1.2.5 Completion of construction;

1.5.1.2.6 Commencement of trial operation;

1.5.1.2.7 Initial compliance testing;

1.5.1.2.8 Submission of compliance testing reports;

1.5.1.2.9 Commencement of normal operations (in full compliance).

1.5.2 Any person subject to 1.0 of this regulation shall submit to the Department an initial compliance certification not later than May 1, 2004. The initial compliance certification shall, at a minimum, include the following information:

1.5.2.1 The name and the location of the facility.

1.5.2.2 The address and telephone number of the person responsible for the facility.

1.5.2.3 Identification of the subject source or sources.

1.5.2.4 The applicable standard.

1.5.2.5 The method of compliance.

1.5.2.6 Certification that each subject source is in compliance with the applicable standard

1.5.2.7 All records necessary for determining compliance with the standards of 1.0 of this regulation shall be maintained at the facility for a period of five years.

1.5.3 Any person subject to 1.0 of this regulation shall, for each occurrence of excess emissions, within 30 calendar days of becoming aware of such occurrence, supply the Department with the following information:

1.5.3.1 The name and location of the facility.

1.5.3.2 The subject source or sources that caused the excess emissions.

1.5.3.3 The time and date of first observation of the excess emissions.

1.5.3.4 The cause and expected duration of the excess emissions.

1.5.3.5 The estimated rate of emissions (expressed in the units of the applicable emission limitation) and the operating data and calculations used in determining the magnitude of the excess emissions.

1.5.3.6 The proposed corrective actions and schedule to correct the conditions causing the excess emissions.

1.5.4 Any person subject to 1.0 of this regulation shall maintain all information necessary to demonstrate compliance with the requirements of 1.0 of this regulation for a minimum period of five years. Such information shall be immediately made available to the Department upon verbal and written request.

11/11/2009 xx/xx/2011

2.0 Control of NOx Emissions from Industrial Boilers and Process Heaters at Petroleum Refineries

2.1 Purpose

2.1.1 The purpose of Section 2.0 of this regulation is to reduce NOXx emissions from Delaware's large industrial boilers and process heaters that are located at petroleum refineries.

2.1.2 Under the 8-hour ozone national ambient air quality standard (NAAQS), the state of Delaware is part of the Philadelphia-Wilmington-Atlantic City, PA-DE-MD-NJ moderate non-attainment area (NAA). The entire NAA, including Delaware, is required by the Clean Air Act (CAA) to attain the 8-hour ozone NAAQS by 2010. After attainment, the area must maintain compliance with the NAAQS. By implementing Section 2.0 of this regulation, NOx emission reductions from the affected boilers and heaters shall contribute to (1) attainment and maintenance of the 8-hour ozone standard, and (2) improvement of the ambient air quality, in both Delaware and the entire NAA.

2.1.3 Additionally, New Castle County of Delaware is a part of the Philadelphia-Wilmington-Camden, PA-DE-NJ NAA for the annual fine particulate matter (PM2.5) NAAQS, and is required by the CAA to attain the NAAQS by 2010. Since NOx is a significant precursor to PM2.5 formation, reducing NOx emissions will also assist in attainment and maintenance of the PM2.5 standard.

2.2 Applicability and Compliance Dates

2.2.1 Section 2.0 of this regulation applies to any industrial boiler or process heater with a maximum heat input capacity of equal to or greater than 200 million BTUs per hour (mmBTU/Hour) (except for any Fluid Catalytic Cracking Unit carbon monoxide (CO) boiler), which is operated or permitted to operate within a petroleum refinery facility on the effective date of this section July 11, 2007. This comprises the following nine (9) ten (10) units at the Delaware City refinery:

2.2.1.1 Crude Unit Vacuum Heater (Unit 21-H-2);

2.2.1.2 Crude Unit Atmospheric Heater (Unit 21-H-701);

2.2.1.3 Fluid Coking Unit Carbon Monoxide boiler (Unit 22-H-3);

2.2.1.4 Steam Methane Reformer Heater (Unit 37-H-1);

2.2.1.5 Continuous Catalyst Regenerator Reformer Heater (Unit 42-H-1,2,3);

2.2.1.6 Boiler 1 (Unit 80-1);

2.2.1.7 Boiler 2 (Unit 80-2);

2.2.1.8 Boiler 3 (Unit 80-3);

2.2.1.9 Boiler 4 (Unit 80-4).

2.2.1.10 Fluid Catalytic Cracking Unit Carbon Monoxide (CO) boiler (Unit 23-H-3).

2.2.2 The requirements of Section 2.0 of this regulation are in addition to all other state and federal requirements.

2.2.3 The following units shall be in compliance with the requirements of Section 2.0 of this regulation on and after July 11, 2007: Crude Unit Atmospheric Heater (Unit 21-H-701), Steam Methane Reformer Heater (Unit 37-H-1) and Boiler 2 (Unit 80-2).

2.2.4 The following units shall be in compliance with the requirements of Section 2.0 of this regulation as soon as practicable, but not later than:

2.2.4.1 December 31, 2008: Boiler 1 (Unit 80-1) and Crude Unit vacuum Heater (Unit 21-H-2), and Fluid Catalytic Cracking Unit CO boiler (Unit 42-H-1, 2, 3).

2.2.4.2 May 1, 2011: Boiler 3 (Unit 80-3) and Boiler 4 (Unit 80-4).

2.2.4.3 December 31, 2012: Continuous Catalyst Regenerator Reformer Heater (Unit 42-H-1, 2, 3).

2.3 Standards.

2.3.1 Except as provided for in 2.3.2 of this regulation, Tthe owner or operator of any industrial boiler or process heater identified in Section 2.2.1 of this regulation shall meet not operate except in compliance with the applicable NOx emission limitation identified in the following sections:

2.3.1.1 For the Fluid Coking Unit Carbon Monoxide boiler (Unit 22-H-3), Reserved.

2.3.1.2 For the Steam Methane Reformer (SMR) Heater (Unit 37-H-1), Reserved.

2.3.1.3 For Boiler 1 (Unit 80-1), Boiler 3 (Unit 80-3) and Boiler 4 (Unit 80-4), 0.015 lb/mmBTU, on a 24-hour rolling average basis.

2.3.1.4 For the Fluid Catalytic Cracking Unit CO boiler (Unit 23-H-3), 20 ppmvd @ 0 % O2 on a 365 day rolling average basis, and 40 ppmvd @ 0 % O2 on a 7-day rolling average basis.

2.3.1.45 For any unit not covered by 2.3.1.1, 2.3.1.2, or 2.3.1.3, or 2.3.1.4 0.04 lb/mmBTU, on a 24-hour rolling average basis.

2.3.1.56 The standards set out in 2.3 of this regulation shall not apply to the start-up and shutdown of equipment when emissions from such equipment during a start-up and shutdown are addressed in an operation permit issued pursuant to the provisions of §2 of Regulation 7 DE Admin. Code 1102.

2.3.2 As an alternative to complying with one or more of the unit specific emission limitations specified in 2.3.1 of this regulation the owner or operator of any industrial boiler or process heater identified in Section 2.2.1 of this regulation shall limit the NOx emissions, from all NOx emission sources at the facility, to equal to or less than the applicable emission cap specified in 2.3.2.1 though 2.3.2.3 of this regulation.

2.3.2.1 2,525 tons per year, evaluated over each twelve (12) consecutive month rolling period, for any twelve (12) month rolling period ending on or before January 2014.

2.3.2.2 2,225 tons per year, evaluated over each twelve (12) consecutive month rolling period, commencing with the twelve (12) month rolling period beginning on December 31, 2013 and ending on December 31, 2014.

2.3.2.3 1,650 tons per year, evaluated over each twelve (12) consecutive month rolling period, commencing with the twelve (12) month rolling period beginning on December 31, 2014 and ending on December 31, 2015.

2.4 Monitoring Compliance Requirements.

2.4.1 Compliance with the NOx emission standards specified in 2.3.1, 2.3.2, and 2.3.4 of this regulation shall be determined based on CEM data collected in accordance with the appropriate requirements set forth in 40 CFR, Part 60, Appendix B, Performance Specification 2, and the QA/QC requirements in 40 CFR Part 60, Appendix F.

2.4.2 Compliance with the facility-wide NOx emission cap specified in 2.3.2 of this regulation shall be determined not later than the last day of each month, as follows.

2.4.2.1 The mass of NOx (tons) emitted from each NOx emission source at the facility during the prior month shall be accurately determined using the methods specified in 2.4.2.1.1 through 2.4.2.1.3 of this regulation, as approved by the Department.

2.4.2.1.1 Continuous emission monitoring systems (CEMS) that meet the requirements of 2.4.1 of this regulation shall be used to determine the emission from any emission unit equipped or required to be equipped with NOx CEMS, or

2.4.2.1.2 A NOx emission factor that is based upon the results of the most recent performance testing conducted in accordance with a protocol approved by the Department shall be used to determine the emission from any unit that has conducted or that is required to conduct such performance testing, or

2.4.2.1.3 Published NOx emission factors for such source or category of sources, or any other method approvable by the Department, shall be used to determine the emission from any unit not covered by 2.4.2.1.1 or 2.4.2.1.2 of this regulation. Emission factors may be adjusted by the Department to account for the degree of uncertainty or limitations in the factors' development.

2.4.2.2 NOx emissions from each NOx emission source at the facility shall be determined for all periods of startup, shutdown or malfunction. To the extent that such emissions are not measured by CEMS during such periods of startup, shutdown or malfunction, and to the further extent that performance testing for such source did not establish emission factors for such equipment reflective of operations during periods of startup, shutdown or malfunction, then the owner or operator shall estimate such emission rates from such source during any periods of startup, shutdown or malfunction in accordance with best engineering judgment, provided however that the owner or operator must report to the Department the basis for the emission projections in such instance, and the Department may object to and modify the emission estimation methodology as it determines appropriate.

2.4.2.3 The emissions calculated in 2.4.2.1 and 2.4.2.2 of this regulation shall be summed and aggregated with the calculation results for the preceding months as provided for in 2.4.2.3.1 through 2.4.2.3.3 below.

2.4.2.3.1 For any month before January 2014, the preceding eleven (11) consecutive months shall be included.

2.4.2.3.2 For any month in calendar year 2014, only months in calendar year 2014 shall be included.

2.4.2.3.3 For any month in calendar year 2015, only months in calendar year 2015 shall be included.

2.4.2.4 Compliance shall be determined by comparing the results of the calculations in 2.4.2.3 of this regulation with the appropriate NOx emission cap specified in 2.3.2 of this regulation. Each ton of emissions calculated under 2.4.2.3 of this regulation that is above the applicable NOx emission cap specified in 2.3.2 of this regulation constitutes a violation of 2.0 of this regulation. Fractions of tons shall be rounded up to the next higher number.

2.5 Recordkeeping and Reporting Requirements

2.5.1 Not later than (insert the date that is 180 days after the effective date of this revised Section 2.0) of this regulation, any person subject to Section 2.0 of this regulation shall develop, and submit to the Department, a schedule for bringing the affected emission unit(s), identified in Section 2.2.4, facility into compliance with the requirements of Section 2.3 of this regulation. Such schedule shall include, at a minimum, all of the following:

2.5.1.1 The method by which compliance will be achieved.

2.5.1.2 For persons subject to the requirements of 2.3.1 of this regulation, Tthe dates by which the affected person plans to complete the following major increments of progress, as applicable:

2.5.1.2.1 Completion of engineering;

2.5.1.2.2 Submission of permit applications;

2.5.1.2.3 Awarding of contracts for construction and/or installation;

2.5.1.2.4 Initiation of construction;

2.5.1.2.5 Completion of construction;

2.5.1.2.6 Commencement of trial operation;

2.5.1.2.7 Initial compliance testing;

2.5.1.2.8 Submission of compliance testing reports;

2.5.1.2.9 Commencement of normal operations (in full compliance).

2.5.2 For persons subject to the requirements of 2.3.2 of this regulation, the owner or operator shall submit to the Department all of the information specified in 2.5.2.1 and 2.5.2.2 of this regulation.

2.5.2.1 The date that compliance with this regulation will begin pursuant to 2.3.2 of this regulation.

2.5.2.2 A plan for achieving NOx emission reductions consistent with the NOx caps specified in 2.3.2 of this regulation. This plan shall include the information specified in 2.5.2.2.1 and 2.5.2.2.3 of this regulation.

2.5.2.2.1 A list of the emission units at the facility that are required to be included in the facility-wide NOx cap.

2.5.2.2.2 A report of the monthly NOx emissions from the emission units identified in 2.5.2.2.1 of this regulation, for each of the twelve (12) months that precedes the date specified in 2.5.2.1 of this regulation.

2.5.2.2.3 The current expectation of NOx emission reductions to be achieved at specific individual sources, along with a statement of the anticipated control measures to be utilized and timelines for achieving such emission reductions.

2.5.23 Any person subject to Section 2.0 the requirements of 2.3.1 of this regulation shall submit to the Department an initial compliance certification by the later of the following dates, or the date the unit first operates after the following date subject to the requirements of 2.3.1: September 10, 2007 for units identified in Section 2.2.3 of this regulation and, for units identified in Section 2.2.4, by the compliance date specified in Section 2.2.4. The initial compliance certification shall include, at a minimum, all of the following information:

2.5.23.1 The name and the location of the facility;

2.5.23.2 The name, address and telephone number of the person responsible for the facility;

2.5.23.3 Identification of the subject source(s);

2.5.23.4 The applicable standard;

2.5.23.5 The method of compliance;

2.5.23.6 Certification that each subject source is in compliance with the applicable standard.

2.5.4 Any person subject to the requirements of 2.3.2 of this regulation shall submit to the Department a semi-annual report that contains all of the information specified in 2.5.4.1 through 2.5.4.5 of this regulation.

2.5.4.1 The identification of owner and operator of the facility.

2.5.4.2 The total annual NOx emissions (tons/year) from the facility based on a 12-month rolling total for each month in the reporting period recorded pursuant to 2.4.2 of this regulation.

2.5.4.3 A list of the emission units at the facility that are required to be included in the facility-wide NOx cap.

2.5.4.4 Idenfitcation of any deviation from the monitoring provisions that were approved by the Department pursuant to 2.4.2 of this regulation, and documentation of the alternate methods used to determine emissions.

2.5.4.5 A signed statement by the responsible official certifying the truth, accuracy, and completeness of the information provided in the report.

2.5.35 Any person subject to Section 2.0 of this regulation shall, for each occurrence of excess emissions above the standards of Section 2.3 of this regulation, including periods when monitoring data was not collected in accordance with procedures appored pursuant to 2.4.2.1 of this regulaiton, within thirty (30) calendar days of becoming aware of such occurrence, supply the Department with the following information:

2.5.35.1 The name and location of the facility;

2.5.35.2 The subject source(s) that caused the excess emissions;

2.5.35.3 The time and date of first observation of the excess emissions;

2.5.35.4 The cause and expected duration of the excess emissions;

2.5.35.5 The estimated rate of emissions (expressed in the units of the applicable emission limitation) and the operating data and calculations used in determining the magnitude of the excess emissions;

2.5.35.6 The proposed corrective actions and schedule to correct the conditions causing the excess emissions.

2.5.46 Any person subject to Section 2.0 of this regulation shall maintain all information necessary to determine and demonstrate compliance with the requirements of this section for a minimum period of five (5) years. Such information shall be immediately made available to the Department upon verbal and written request.

5 DE Reg. 1299 (12/01/01)

11 DE Reg. 75 (07/01/07)

12 DE Reg. 347 (09/01/08)

13 DE Reg. 670 (11/01/09)

14 DE Reg. 637 (01/01/11)