September
25,
2003
AMP­
Ohio
Meeting
Docket
OAR­
2002­
1958
Proposed
Boiler
MACT

American
Municipal
Power­
Ohio

American
Public
Power
Association

Michigan
Municipal
Electric
Association

and
other
small
towns
Concerns
For
Small
Utility
Boilers
Owned
and
Operated
by
Municipalities
September
25,
2003
AMP­
Ohio
Meeting
Docket
OAR­
2002­
1958
Boiler
MACT
Affects
Small
Municipal
Utility
Units
Boiler
MACT
Affects
Small
Municipal
Utility
Units

Boiler
MACT
affects
broad
range
of
industrial
boilers

Also
affects
<
25MW
electric
generating
units
(
EGUs)


<
25
MW
EGUs
owned
and
operated
almost
exclusively
by
municipal
utilities

Boiler
MACT
compliance
required
before
Utility
Mercury
MACT
or
Clear
Skies
affect
all
other
utilities
(
competitors)


Boiler
MACT
could
drastically
impact
33
local
communities
in
13
states
operating
63
small
utility
units
September
25,
2003
AMP­
Ohio
Meeting
Docket
OAR­
2002­
1958
Small
Electric
Units
Are
Fundamentally
Different
Small
Electric
Units
Are
Fundamentally
Different

Muni
utilities
play
critical,
unique
role:


Meeting
local
energy
needs

Relieving
transmission
congestion

Increasing
electric
system
reliability

Protecting
against
energy
price
spikes

National
electric
grid
envisioned
by
EPA
doesn't
exist

Muni
utilities
have
unique
constraints:


Legal
obligations
to
serve

Competitive
constraints
with
larger
utilities

Diseconomies
of
scale

Capital
limitations

Physical
retrofitting
constraints
September
25,
2003
AMP­
Ohio
Meeting
Docket
OAR­
2002­
1958
SmallMuni
Utility
Units
Will
Suffer
Unique
Harms
SmallMuni
Utility
Units
Will
Suffer
Unique
Harms

Baghouses
&
scrubbers
may
be
required

Costs
of
compliance
will
be
uneconomic;
most
units
expected
to
close

Timing
of
compliance
does
not
match
compliance
schedule
for
large
utility
units
(
competitors)


In
nearly
all
cases,
the
loss
of
local
generation
will
impact
local
energy
markets
and
reliability

In
some
cases,
the
loss
of
units
will
exacerbate
transmission
problems
in
"
load
pocket"
areas,
with
potential
impacts
in
regional
energy
markets

Handful
of
transmission­
blocked
units
in
the
Upper
Midwest
need
special
consideration
September
25,
2003
AMP­
Ohio
Meeting
Docket
OAR­
2002­
1958
The
Likely
Results
The
Likely
Results

Shutdown
of
critical
local
generators

Public
power
at
critical
competitive
disadvantage

Economic
impacts
on
local
communities

Energy
supply
and
reliability
crises
in
load
pockets
September
25,
2003
AMP­
Ohio
Meeting
Docket
OAR­
2002­
1958
EPA
Should
Create
A
Subcategory
EPA
Should
Create
A
Subcategory

Subcategorization
allowed
for
different
"
classes,
types,
and
sizes"
of
affected
units

Small
municipal
electric
generating
units
are
a
distinct
class,
size
and
type
of
boilers,
compared
to
other
industrial
boilers
(
even
publiclyowned


Unique
electric
market

Legal
obligation
to
serve

Cost,
economic,
competitiveness
issues

Local
government
issues

Capital
limitations

Diseconomies
of
scale

Physical
retrofitting
constraints
September
25,
2003
AMP­
Ohio
Meeting
Docket
OAR­
2002­
1958
Subcategory
Should
Be
Narrowly
Defined
Subcategory
Should
Be
Narrowly
Defined

"
'
Municipal
electric
utility
steam
generating
units'
means
any
fossil
fuel
fired
combustion
unit
of
25
MW
or
less
that
serves
a
generator
that
produces
electricity
primarily
for
the
benefit
of
the
municipal
or
county
owner/
operator
and
its
residential
customers"
September
25,
2003
AMP­
Ohio
Meeting
Docket
OAR­
2002­
1958
Rationale
for
Subcategory
Definition
Rationale
for
Subcategory
Definition

No
overlap
with
the
utility
MACT
category

Applies
to
municipal
owner/
operator
only

Applies
only
to
electricity
generated
for
the
benefit
of
its
residential
customers

Precedent
for
distinguishing
municipal
units
from
other
types
of
units

CAA
§
§
129,
169
differentiate
municipal
waste
combustors
from
other
waste
combustion
units

NSPS
differentiate
municipal
waste
combustors
from
other
waste
combustors
and
small
from
large
municipal
waste
combustors.
September
25,
2003
AMP­
Ohio
Meeting
Docket
OAR­
2002­
1958
Alternative
Approach:

Create
a
New
Category
Alternative
Approach:

Create
a
New
Category

Under
Clean
Air
Act
Section
112
(
c)(
5),
EPA
has
the
authority
to
add
to
the
list
of
source
categories
for
MACT
regulation.


The
additional
categories
are
to
be
based
on
the
same
criteria
used
to
establish
the
original
list
under
Section
112
(
c)(
1).


EPA
has
wide
discretion
to
create
categories
and
subcategories
under
Section
112(
c)(
1).
September
25,
2003
AMP­
Ohio
Meeting
Docket
OAR­
2002­
1958
MACT
Floor
Analysis
MACT
Floor
Analysis

AMP­
Ohio
conducted
subcategory
survey

Results:


0.154
lbs/
mmBTU
standard
for
PM
(
cold
side
ESPs)


No
control
for
acid
gases
and
mercury

Small
sample
size
and
large
variances
mean
small
changes
to
the
database
or
changes
in
data
analysis
result
in
large
changes
to
the
standard

No
right
way
to
analyze
the
data
September
25,
2003
AMP­
Ohio
Meeting
Docket
OAR­
2002­
1958
Conclusion
Conclusion

Small
municipal
utility
units
are
fundamentally
different
from
other
units
affected
by
Boiler
MACT

Small
municipal
utility
units
will
suffer
unique
harms
under
Boiler
MACT

EPA
can
and
should
create
a
subcategory
of
"
municipal
electric
utility
steam
generating
units"


AMP­
Ohio
survey
provides
sufficient
data
to
set
the
MACT
floor
