MDEQ-AQD Air Toxics Rules MDEQ-AQD Air Toxics Rules Overview andOverview andRegulatory ReinventionRegulatory Reinvention

July 31, 2013July 31, 2013Robert Sills, MDEQ Air Quality Robert Sills, MDEQ Air Quality Division (AQD) Toxics Unit Division (AQD) Toxics Unit SupervisorSupervisor

Presentation OutlinePresentation Outline• Overview of the AQD’s Air Toxics RulesOverview of the AQD’s Air Toxics Rules

• Office of Regulatory Reinvention’s Office of Regulatory Reinvention’s Environmental Advisory Rules Environmental Advisory Rules Committee (ARC): nine Committee (ARC): nine recommendations for the air toxics recommendations for the air toxics programprogram

• AQD’s Air Toxics Workgroup (ATW)AQD’s Air Toxics Workgroup (ATW)

• Q & AQ & A

• DiscussionDiscussion

1. Air Toxics Rules Overview1. Air Toxics Rules Overview

OUTLINE:OUTLINE:•Overview of State and Federal programsOverview of State and Federal programs

•NREPA and Key DefinitionsNREPA and Key Definitions

•Permit To Install (PTI) New Source Review Permit To Install (PTI) New Source Review (NSR)(NSR)

•Permit ExemptionsPermit Exemptions

•Air Toxics Rules: R224-232Air Toxics Rules: R224-232

•Rule 225: Health-Based Screening Levels Rule 225: Health-Based Screening Levels (SLs) (SLs)

•Demonstrating Compliance with the SLsDemonstrating Compliance with the SLs

Michigan’s Program (Rules 224 – 232)Michigan’s Program (Rules 224 – 232)• Applies to new or modified processesApplies to new or modified processes• Control Technology Requirement Control Technology Requirement • R225 Health Risk Assessment - Screening LevelsR225 Health Risk Assessment - Screening Levels

• Screening Levels (SLs) apply to all areas with Screening Levels (SLs) apply to all areas with public access (ambient air)public access (ambient air)

• SLs are chemical-specific air concentrations SLs are chemical-specific air concentrations (ug/m3) that are health protective for inhalation, for (ug/m3) that are health protective for inhalation, for the population including sensitive subgroups.the population including sensitive subgroups.

• SLs are developed by toxicologists based upon the SLs are developed by toxicologists based upon the methodology in the AQD’s rules.methodology in the AQD’s rules.

• Specific exemptions include federally regulated Specific exemptions include federally regulated sources of emissions of 187 Hazardous Air sources of emissions of 187 Hazardous Air Pollutants (“HAPs”) that have had an EPA risk Pollutants (“HAPs”) that have had an EPA risk assessment and control technology reviewassessment and control technology review

Federal Program Federal Program (Section 112 of Clean Air Act)(Section 112 of Clean Air Act)

• Applies to new and existing sourcesApplies to new and existing sources

• List of 187 Hazardous Air Pollutants (HAPs)List of 187 Hazardous Air Pollutants (HAPs)

• Technology RequirementsTechnology Requirements• 170 specific standards developed since 1990170 specific standards developed since 1990• Case-by-Case Technology Determination for Case-by-Case Technology Determination for

sources of HAPs greater than 10 TPY of a HAP or sources of HAPs greater than 10 TPY of a HAP or 25 TPY total HAPs25 TPY total HAPs

• Health Risk AssessmentsHealth Risk Assessments• 32 source category Assessment Reviews for 32 source category Assessment Reviews for

HAPs completed since 1990HAPs completed since 1990• Remainder of categories not yet completedRemainder of categories not yet completed• Ample Margin of Safety determinationAmple Margin of Safety determination

What are Air Toxics?What are Air Toxics?State program:State program:•Toxic air contaminants (TACs) are defined as Toxic air contaminants (TACs) are defined as any substance which may be harmful at some any substance which may be harmful at some concentration and duration, excluding 41 concentration and duration, excluding 41 substances which either have national air substances which either have national air quality standards (ozone, lead, SOquality standards (ozone, lead, SO2,2, NO NO2,2, PM, PM, CO) or which are relatively nontoxic. CO) or which are relatively nontoxic.

•(Air Pollution Control Rules, Part 55 of NREPA; (Air Pollution Control Rules, Part 55 of NREPA; Rule 336.1120(f))Rule 336.1120(f))

•AQD has set health-based screening levels for AQD has set health-based screening levels for approx. 1200 TACs.approx. 1200 TACs.

Federal program: EPA CAAA of 1990 identifies Federal program: EPA CAAA of 1990 identifies 187 HAPs (chemicals or chemical groups)187 HAPs (chemicals or chemical groups)

What are some of the 1200 What are some of the 1200 TACs that are not EPA HAPs?TACs that are not EPA HAPs?

AmmoniaAmmonia

Sulfuric acidSulfuric acid

CopperCopper

Propyl bromidePropyl bromide

GasolineGasoline

2-chloro-1,3-butadiene2-chloro-1,3-butadiene

Methyl mercaptanMethyl mercaptan

Complimentary ProgramsComplimentary Programs

TechTechStdStd

HealthHealthStd for Std for HAPSHAPS

TechTechStdStd

HealthHealthStd for Std for all TACsall TACs

TechTechStdStd

HealthHealthStd forStd for

All TACsAll TACs

Federal Technology Standard, No Health Assessment

Federal Technology Standard, Federal Health Assessment Done

No Federal Technology Standard, No Federal Health Assessment

FederalFederalProgramProgram

MichiganMichiganProgramProgram

HealthHealthStd forStd for

NonNonHAPSHAPS

Air Toxics Rules: R224-232, cont’dAir Toxics Rules: R224-232, cont’dR228: Requirement for lower emission rate than required R228: Requirement for lower emission rate than required by T-BACT and SLsby T-BACT and SLs

• On a case-by-case basis, the department may On a case-by-case basis, the department may determine a lower maximum allowable emission rate determine a lower maximum allowable emission rate in order to ensure adequate protection of human in order to ensure adequate protection of human health or the environment, considering all relevant health or the environment, considering all relevant scientific information, such as atmospheric scientific information, such as atmospheric deposition, indirect routes of exposure, or additive deposition, indirect routes of exposure, or additive effects.effects.

• This authority has been used to request some This authority has been used to request some applicants to include deposition modeling or applicants to include deposition modeling or multipathway risk assessment information in their multipathway risk assessment information in their applications, and for staff to perform further applications, and for staff to perform further evaluations for the public and the decision-maker.evaluations for the public and the decision-maker.

ARC RECOMMENDATION: RESCIND R228ARC RECOMMENDATION: RESCIND R228

SL List:SL List:- includes ITSLs, IRSLs, and SRSLs- includes ITSLs, IRSLs, and SRSLs- Some chemicals have primary and - Some chemicals have primary and secondary ITSLs (with different averaging secondary ITSLs (with different averaging times)times)- Footnotes appear at end of the SL list- Footnotes appear at end of the SL list

Benchmarking Benchmarking State Air Toxics ProgramsState Air Toxics Programs

• 29 States, including Michigan, have developed 29 States, including Michigan, have developed and implemented state air toxics requirements and implemented state air toxics requirements in their air permitting programs. (21 have not, in their air permitting programs. (21 have not, including IN and IL in EPA R5)including IN and IL in EPA R5)

• State programs evaluate and regulate air State programs evaluate and regulate air toxics emissions and dispersion in their toxics emissions and dispersion in their permit reviews, based on public health permit reviews, based on public health exposure concerns. These programs are exposure concerns. These programs are intended to provide some assurance of public intended to provide some assurance of public health protection by ensuring that air health protection by ensuring that air concentrations are kept at safe levels.concentrations are kept at safe levels.

• State program details vary widely. State program details vary widely.

• ARC: be consistent with nearby statesARC: be consistent with nearby states

Permitting QuestionsPermitting Questions

From the PublicFrom the Public

Is it safe for my Is it safe for my children?children?

Would you live Would you live here?here?

From the CompaniesFrom the Companies

What are the limits What are the limits we must meet?we must meet?

Will you support Will you support our project?our project?

Both groups want certainty and assurance.Both groups want certainty and assurance.

Air Toxics Rules Defense Since 1992Air Toxics Rules Defense Since 1992• Periodic criticism of the rules by the Periodic criticism of the rules by the

regulated community: exceeds EPA regulated community: exceeds EPA regulations; chilling effect on business, regulations; chilling effect on business, jobs, economy; unlevel playing field jobs, economy; unlevel playing field with other nearby Stateswith other nearby States

• HB 4326 of 2011: “No Stricter Than HB 4326 of 2011: “No Stricter Than Federal” environmental regulation bill; Federal” environmental regulation bill; Vetoed by Gov. Snyder: pursue Vetoed by Gov. Snyder: pursue “regulatory reinvention”“regulatory reinvention”

• The Governor established the Office of The Governor established the Office of Regulatory Reinvention (ORR) in 2011Regulatory Reinvention (ORR) in 2011

ORR Environmental Advisory ORR Environmental Advisory Rules Committee (ARC)Rules Committee (ARC)• 13 members13 members• James Clift (MEC) was the environmental James Clift (MEC) was the environmental

group representativegroup representative

ORR Environmental ARC (2011)ORR Environmental ARC (2011)Air Quality Subcommittee: Air Toxics Rules Air Quality Subcommittee: Air Toxics Rules recommendations (paraphrased):recommendations (paraphrased):1.1.Rescind part of R224 (regarding a redundant control requirement)Rescind part of R224 (regarding a redundant control requirement)

2.2.Exempt from R225 small changes in TAC emissions (with <10% Exempt from R225 small changes in TAC emissions (with <10% increase in Hazard Index)increase in Hazard Index)

3.3.Exempt from R225 sources that are subject to EPA control Exempt from R225 sources that are subject to EPA control technology standardstechnology standards

4.4.Exempt from R225 “clean fuels”Exempt from R225 “clean fuels”

5.5.Exempt from R225 “pollution control projects”Exempt from R225 “pollution control projects”

6.6.Limit R225 to the EPA HAPs list (n=187)Limit R225 to the EPA HAPs list (n=187)

7.7.Make R225 screening levels consistent with nearby statesMake R225 screening levels consistent with nearby states

8.8.R225 should not be used to require stack tests as emissions R225 should not be used to require stack tests as emissions researchresearch

9.9.Rescind R228 (regarding risk assessment beyond single-chemical Rescind R228 (regarding risk assessment beyond single-chemical human health inhalation assessment)human health inhalation assessment)

AQD established the Air Toxics AQD established the Air Toxics Workgroup (ATW) to address the Workgroup (ATW) to address the ARC air toxics recommendations ARC air toxics recommendations

10 ATW members10 ATW members

•6 from industry and consulting6 from industry and consulting

•2 from environmental groups2 from environmental groups

•1 from academia1 from academia

•1 from State health dept. (MDCH)1 from State health dept. (MDCH)

Began meetings on 12/3/12Began meetings on 12/3/12

ATW Charge:ATW Charge:

““The Air Toxics Workgroup (ATW) of the Air Quality The Air Toxics Workgroup (ATW) of the Air Quality Division (AQD) will provide meaningful input to the Division (AQD) will provide meaningful input to the AQD in addressing ORR Recommendation A-1 and AQD in addressing ORR Recommendation A-1 and other air toxics rule issues as identified by the ATW other air toxics rule issues as identified by the ATW and AQD members. The ATW will help ensure that and AQD members. The ATW will help ensure that the rules are the rules are updated, streamlined, protective of updated, streamlined, protective of public health and not excessively burdensomepublic health and not excessively burdensome. . By By August 1, 2013August 1, 2013, the ATW shall have , the ATW shall have recommendations to the AQD.” (emphasis added)recommendations to the AQD.” (emphasis added)

DEQ’s initial thoughts for addressing the DEQ’s initial thoughts for addressing the issues:issues:

• Pursue solutions that are less Pursue solutions that are less burdensome, with regulatory certaintyburdensome, with regulatory certainty

• Retain a regulatory structure for public Retain a regulatory structure for public health protectionhealth protection

• Scientifically defensible rationale; Scientifically defensible rationale; transparent approachtransparent approach

• Strive to develop an ATW “consensus”Strive to develop an ATW “consensus”

• The solutions should be durable The solutions should be durable (lasting)(lasting)

Status of ATW reviewStatus of ATW reviewIssue Comments/Tentative Recommendations

1. Rescind part of R224 (control requirement that is redundant)

ATW recommends additional rule language to clarify that R224 requirements are not to be redundant with other rule requirements.

2. Exempt from R225 small changes in TACs (with <10% increase in Hazard Index)

Still under discussion. This ARC recommendation mirrors an AQD procedure in place since 1992. ATW may recommend ways to establish it in the rules, with appropriate modifications.

3. Exempt from R225 sources subject to EPA control technology standards

AQD mgmt. disagrees with this (a policy issue). ATW will likely not discuss it further or have a recommendation.

4. Exempt from R225 “clean fuels”

ATW recommends that emissions from natural gas, diesel fuel or biodiesel engines (up to 100 MMBTU) should be exempted, if they meet criteria for stack height and distance to property line (based on an AQD assessment report).

5. Exempt from R225 pollution control projects

AQD already has exemptions for pollution control “equipment”; ATW is still discussing if additional “projects” should be exempted.

Status of ATW reviewStatus of ATW reviewIssue Comments/Tentative Recommendation

6. Limit R225 to the EPA HAPs list (n=187)

ATW will likely recommend agreement with a proposed AQD methodology for a defined list (perhaps approximately 750 TACs).

7. Make R225 screening levels consistent with nearby states

ATW recommends that AQD improve consistency by a change in the SL averaging times, and, no longer using a default SL.

8. R225 should not be used to require stack tests as emissions research

ATW recommends an AQD clarification that stack testing will only be required case-by-case as warranted for compliance demonstration. AQD will post stack test results on website starting ~11/1/13.

9. Rescind R228 (risk assessments that go beyond single-chemical human health inhalation assessment)

ATW recommends that R228 is important to retain, but the rule should have added language clarifying that the assessments and determinations will be based on reasonable and appropriate site-specific information.

Proposed TAC List MethodologyProposed TAC List Methodology

Drafted Goal statement: Drafted Goal statement:

““The TAC list includes the federal HAPs list The TAC list includes the federal HAPs list and other air toxics that may be reasonably and other air toxics that may be reasonably anticipated to occur in NSR permitted air anticipated to occur in NSR permitted air emissions, and which warrant the emissions, and which warrant the evaluation of ambient air impacts in PTI evaluation of ambient air impacts in PTI applications in order to help ensure public applications in order to help ensure public health and environmental protection while health and environmental protection while promoting regulatory certainty and promoting regulatory certainty and efficiency.”efficiency.”

Proposed TAC List MethodologyProposed TAC List Methodology

““Guiding concepts”: Guiding concepts”: •List should focus on the more relevant substancesList should focus on the more relevant substances•List should be less burdensome, and provide greater List should be less burdensome, and provide greater certaintycertainty•DEQ should have a defined mechanism(s) to add to and DEQ should have a defined mechanism(s) to add to and delete from the listdelete from the list•Applicant should still identify non-TACs in proposed Applicant should still identify non-TACs in proposed emissions (Rule 203(1)(c))emissions (Rule 203(1)(c))•DEQ should retain the authority to act to protect public DEQ should retain the authority to act to protect public health (case-specific) from emissions of non-TACshealth (case-specific) from emissions of non-TACs

Approach Options ConsideredApproach Options Considered1.1. Adopt a list developed by another state / statesAdopt a list developed by another state / states

2.2. Develop a “list of lists” (e.g., TLVs, TRI, 112(r))Develop a “list of lists” (e.g., TLVs, TRI, 112(r))

3.3. List chemicals meeting specific criteria (e.g., based on List chemicals meeting specific criteria (e.g., based on hazard, potency, bioaccumulation)hazard, potency, bioaccumulation)

4.4. Develop a list based on the HAPs and the current list Develop a list based on the HAPs and the current list of TACs with SLs (n~1200), with exclusion criteriaof TACs with SLs (n~1200), with exclusion criteria

Option 4 seemed to best meet the Goal and Guiding Option 4 seemed to best meet the Goal and Guiding Principles.Principles.

The subsequent approach drafted was driven by the Goal The subsequent approach drafted was driven by the Goal and Guiding Concepts, NOT by a target “number of and Guiding Concepts, NOT by a target “number of TACs”.TACs”.

Draft TAC List Decision PointsDraft TAC List Decision Points

Draft Decision Points:Draft Decision Points:•Include all TACs regulated by AQD as carcinogens Include all TACs regulated by AQD as carcinogens •Exclude all current TACs with ITSLs based on the Exclude all current TACs with ITSLs based on the “default” value of 0.1 ug/m3.“default” value of 0.1 ug/m3.•Include noncarcinogens with ITSLs, except those with Include noncarcinogens with ITSLs, except those with relatively low potency (ITSLs above the 75relatively low potency (ITSLs above the 75thth percentile of percentile of the ITSL distribution, by averaging time)the ITSL distribution, by averaging time)•Only include the EPA HAPs if they have a SL meeting Only include the EPA HAPs if they have a SL meeting criteria #1 or #3 (or, if they have appeared in AQD’s New criteria #1 or #3 (or, if they have appeared in AQD’s New Source Review but lack a SL).Source Review but lack a SL).

The Result: approximately 750 specific TACs reasonably The Result: approximately 750 specific TACs reasonably anticipated to be emitted in MI, that are carcinogens, or anticipated to be emitted in MI, that are carcinogens, or with noncarcinogenic toxicity within the 75with noncarcinogenic toxicity within the 75thth percentile. percentile.

TAC List Certainty and FlexibilityTAC List Certainty and Flexibility

The proposed defined TAC list would provide much The proposed defined TAC list would provide much greater certainty, and be less burdensome, than the greater certainty, and be less burdensome, than the current system.current system.

The ATW has discussed that AQD should solicit public The ATW has discussed that AQD should solicit public comment on the proposed approach, including:comment on the proposed approach, including:

1.1.The proposed list, with some basic info on the basis for The proposed list, with some basic info on the basis for each listingeach listing

2.2.Availability of AQD’s detailed SL Justification documentsAvailability of AQD’s detailed SL Justification documents

3.3.A process for adding/deleting from the list (via A process for adding/deleting from the list (via rulemaking; SLOW backstop)rulemaking; SLOW backstop)

4.4.Ability for AQD to address case-by-case public health Ability for AQD to address case-by-case public health threats from non-TACs in a permit application (“fast threats from non-TACs in a permit application (“fast backstop”)backstop”)

For More Information:For More Information:

Draft ATW Discussion Paper on TAC List Draft ATW Discussion Paper on TAC List Issue (5/13/13) and other IssuesIssue (5/13/13) and other Issues

Potential List of TACs (5/13/13)Potential List of TACs (5/13/13)

……and much more:and much more:

http://www.michigan.gov/deqairhttp://www.michigan.gov/deqair

- select Air Toxics- select Air Toxics

- select Air Toxics Workgroup- select Air Toxics Workgroup

Questions or Comments?Questions or Comments?

Robert Sills, Toxics Unit Supervisor, Robert Sills, Toxics Unit Supervisor, MDEQ-AQDMDEQ-AQD

517-335-6973 517-335-6973

sillsr@michigan.govsillsr@michigan.gov