House File 2273 HOUSE FILE BY SHOULTZ Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to mercury emissions for certain coal combustion 2 electrical generators. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 6047YH 80 5 tm/gg/14 PAG LIN 1 1 Section 1. Section 455B.131, Code 2003, is amended by 1 2 adding the following new subsections: 1 3 NEW SUBSECTION. 0A. "Affected unit" means any emissions 1 4 unit that generates electricity in the state and combusts coal 1 5 in an amount greater than ten percent of its total heat input 1 6 on a rolling twelve=month basis. 1 7 NEW SUBSECTION. 3A. "Alternative emissions limit" means a 1 8 mercury emissions limit established by the commission for an 1 9 affected unit. 1 10 NEW SUBSECTION. 4A. "Calendar quarter" means the calendar 1 11 periods each year beginning January 1 and ending March 31, 1 12 beginning April 1 and ending June 30, beginning July 1 and 1 13 ending September 30, and beginning October 1 and ending 1 14 December 31. 1 15 NEW SUBSECTION. 6A. "Fluidized bed combustion unit" means 1 16 a combustion unit in which fuel is introduced into a layer of 1 17 solid particles kept in turbulent motion by air that is forced 1 18 into the layer from below, resulting in a thorough mixing and 1 19 intimate contact of the fuel and other reactants. 1 20 NEW SUBSECTION. 6B. "Inlet conditions" means the 1 21 concentration of mercury in the flue gas exiting the 1 22 combustion source prior to application of any air pollution 1 23 control device or, in the case of a fluidized bed combustion 1 24 unit, the concentration of mercury input to the combustion 1 25 source based on representative fuel sampling and analysis, as 1 26 determined by the commission. 1 27 NEW SUBSECTION. 7A. "Mercury" means mercury and mercury 1 28 compounds in either a gaseous or particulate form. 1 29 Sec. 2. Section 455B.133, Code 2003, is amended by adding 1 30 the following new subsection: 1 31 NEW SUBSECTION. 11. On or before July 1, 2012, the 1 32 commission shall conduct a review of the mercury emissions 1 33 limits applicable to all affected units in the state. On or 1 34 after July 1, 2012, the commission may adopt rules imposing 1 35 mercury emissions limits that are more stringent than the 2 1 emissions requirements provided in section 455B.133A. 2 2 Sec. 3. NEW SECTION. 455B.133A MERCURY EMISSIONS FROM 2 3 ELECTRICITY GENERATION UNITS. 2 4 1. a. On and after July 1, 2008, the owner or operator of 2 5 an affected unit shall do one of the following as determined 2 6 by the owner or operator of the affected unit: 2 7 (1) Meet an emissions rate of equal to or less than six= 2 8 tenths pounds of mercury per one trillion British thermal 2 9 units of heat input. 2 10 (2) Meet a mercury emissions rate equal to a ninety 2 11 percent reduction of mercury from the measure inlet conditions 2 12 for the affected unit. 2 13 b. Compliance with the requirements of this subsection 2 14 shall be demonstrated in accordance with the provisions of 2 15 subsection 3. 2 16 2. a. If the owner or operator of an affected unit 2 17 properly installs and operates control technology designed to 2 18 achieve the mercury emissions rate requirement of subsection 2 19 1, and such technology fails to achieve the emissions rate, 2 20 the owner or operator shall notify the department of such 2 21 failure not later than February 2, 2009. The owner or 2 22 operator shall submit each quarterly stack test from the 2 23 affected unit to the department for evaluation and 2 24 establishment of an alternative emissions limit for the 2 25 affected unit based upon the optimized performance of the 2 26 properly installed and operated control technology. The 2 27 department shall establish an alternative emissions limit for 2 28 any such affected unit not later than April 1, 2010. 2 29 b. Upon the establishment of an alternative emissions 2 30 limit for an affected unit pursuant to paragraph "a", the 2 31 department shall incorporate the alternative emissions limit 2 32 into the air permit required under Title V of the federal 2 33 Clean Air Act for the affected unit. Thereafter, upon any 2 34 application for renewal of such permit, the department shall 2 35 conduct a review of the affected unit's alternative emissions 3 1 limit and may impose a more stringent alternative emissions 3 2 limit based upon any new data regarding the demonstrated 3 3 control capabilities of the type of control technology 3 4 installed and operated at such affected unit. 3 5 c. If the owner or operator of an affected unit properly 3 6 installs and operates control technology designed to achieve 3 7 the mercury emissions rate requirement established in 3 8 subsection 1, but the technology fails to achieve the 3 9 emissions requirement, and the owner or operator notifies the 3 10 department of such failure not later than February 1, 2009, 3 11 the owner or operator of the affected unit shall demonstrate 3 12 compliance with the requirements of subsection 1 for the 3 13 period beginning July 1, 2008, and ending on the date of the 3 14 issuance of an alternative emissions limit by operating and 3 15 maintaining the affected unit, including any associated air 3 16 pollution control equipment, in a manner consistent with good 3 17 air pollution control practices for minimization of mercury 3 18 emissions, as determined by the department. In determining 3 19 whether the owner or operator of the affected unit is 3 20 operating and maintaining the affected unit in a manner 3 21 consistent with good air pollution control practices for the 3 22 minimization of mercury emissions, the department may review 3 23 the emissions monitoring results and operating and maintenance 3 24 procedures of the affected unit and may inspect the affected 3 25 unit. 3 26 3. a. Any stack test used to demonstrate compliance with 3 27 the mercury emissions rate requirements of subsection 1 or 3 28 used in the establishment or compliance with an alternative 3 29 emissions limit shall be based on the average of the stack 3 30 tests conducted during the two most recent calendar quarters 3 31 for an affected unit and shall be conducted on a calendar 3 32 quarter basis in accordance with method 29 of the United 3 33 States environmental protection agency for the determination 3 34 of metal emissions from stationary sources, as set forth in 40 3 35 C.F.R. } 60, appendix A, as amended, or any other alternative 4 1 method approved by the United States environmental protection 4 2 agency or the department. The stack tests shall be conducted 4 3 while combusting coal or coal blends that are representative 4 4 of the coal or coal blends combusted at the affected unit 4 5 during the calendar quarter represented by the stack test. 4 6 b. If the department determines that continuous emission 4 7 monitors for mercury in flue gases are commercially available 4 8 and can perform in accordance with national institute of 4 9 technology standards, or other methodology approved by the 4 10 United States environmental protection agency, the owner or 4 11 operator of an affected unit shall properly install and 4 12 operate the continuous emission monitors and shall not be 4 13 required to conduct stack testing on a calendar quarter basis. 4 14 When reporting compliance with the mercury emissions rate 4 15 requirement of subsection 1 or 2, as applicable, the owner or 4 16 operator of an affected unit shall use an average of the 4 17 continuous emission monitor data recorded at the affected unit 4 18 during the most recent calendar quarter. 4 19 4. The owner or operator of an affected unit shall, for 4 20 each calendar quarter, report to the department the results of 4 21 any stack test or average of the continuous emission monitor 4 22 data, as applicable, used to demonstrate compliance with the 4 23 provisions of this section. The reports shall be submitted on 4 24 such forms as may be prescribed by the department. 4 25 5. The provisions of this section, when implemented by the 4 26 department, shall not suspend any underlying procedures or 4 27 requirements as set forth in this chapter. 4 28 EXPLANATION 4 29 This bill relates to mercury emissions for certain coal 4 30 combustion electrical generators. 4 31 The bill provides that, on or before July 1, 2012, the 4 32 environmental protection commission shall conduct a review of 4 33 the mercury emissions limits applicable to all affected units 4 34 in the state. The bill provides that, on or after July 1, 4 35 2012, the environmental protection commission may adopt rules 5 1 imposing mercury emissions limits that are more stringent than 5 2 the emissions requirements provided for in this bill for the 5 3 time prior to July 1, 2012. The bill provides that an 5 4 "affected unit" means any emissions unit that generates 5 5 electricity in the state and combusts coal in an amount 5 6 greater than 10 percent of its total heat input on a rolling 5 7 12=month basis. 5 8 The bill provides that, on and after July 1, 2008, the 5 9 owner or operator of an affected unit shall do one or more of 5 10 the following as determined by the owner or operator of the 5 11 affected unit: 5 12 1. Meet an emissions rate of equal to or less than six= 5 13 tenths pounds of mercury per one trillion British thermal 5 14 units of heat input. 5 15 2. Meet a mercury emissions rate equal to a 90 percent 5 16 reduction of mercury from the measure inlet conditions for the 5 17 affected unit. 5 18 The bill provides that, if the owner or operator of an 5 19 affected unit properly installs and operates control 5 20 technology designed to achieve these mercury emissions rate 5 21 requirements of the bill and such technology fails to achieve 5 22 the emissions rate, the owner or operator shall notify the 5 23 department of natural resources of such failure not later than 5 24 February 2, 2009. The bill provides that the owner or 5 25 operator shall submit each quarterly stack test from the 5 26 affected unit to the department for evaluation and 5 27 establishment of an alternative emissions limit for the 5 28 affected unit based upon the optimized performance of the 5 29 properly installed and operated control technology. The bill 5 30 provides that the department shall establish an alternative 5 31 emissions limit for any such affected unit not later than 5 32 April 1, 2010. 5 33 The bill provides that, upon the establishment of an 5 34 alternative emissions limit, the department shall incorporate 5 35 the alternative emissions limit into the air permit required 6 1 under Title V of the federal Clean Air Act for the affected 6 2 unit. The bill provides that, upon any application for 6 3 renewal of such permit, the department shall conduct a review 6 4 of the affected unit's alternative emissions limit and may 6 5 impose a more stringent alternative emissions limit. 6 6 The bill provides that, if the owner or operator of an 6 7 affected unit properly installs and operates control 6 8 technology designed to achieve the mercury emissions rate 6 9 requirements of the bill, but the technology fails to achieve 6 10 the emissions requirement, and the owner or operator notifies 6 11 the department of such failure not later than February 1, 6 12 2009, the owner or operator of the affected unit shall 6 13 demonstrate compliance with the mercury emissions rate 6 14 requirements for the period beginning July 1, 2008, and ending 6 15 on the date of the issuance of an alternative emissions limit 6 16 by operating and maintaining the affected unit, including any 6 17 associated air pollution control equipment, in a manner 6 18 consistent with good air pollution control practices for 6 19 minimization of mercury emissions, as determined by the 6 20 department. 6 21 The bill provides that any stack test used to demonstrate 6 22 compliance with the mercury emissions rate requirements of 6 23 this bill or used in the establishment or compliance with an 6 24 alternative emissions limit shall be based on the average of 6 25 the stack tests conducted during the two most recent calendar 6 26 quarters for an affected unit and shall be conducted on a 6 27 calendar quarter basis in accordance with certain federal 6 28 procedures or any other alternative method approved by the 6 29 United States environmental protection agency or the 6 30 department. 6 31 The bill provides that, if the department determines that 6 32 continuous emission monitors for mercury in flue gases are 6 33 commercially available and can perform in accordance with 6 34 national institute of technology standards, or other 6 35 methodology approved by the United States environmental 7 1 protection agency, the owner or operator of any affected unit 7 2 shall properly install and operate the continuous emission 7 3 monitors and shall not be required to conduct stack testing on 7 4 a calendar quarter basis. 7 5 The bill provides that the owner or operator of any 7 6 affected unit shall, for each calendar quarter, report to the 7 7 department the results of any stack test or average of the 7 8 continuous emission monitor data, as applicable, used to 7 9 demonstrate compliance with the provisions of the bill. 7 10 LSB 6047YH 80 7 11 tm/gg/14