U.S. Policy Implications forU.S. Policy Implications forthe Coke & Coal Chemicals Industrythe Coke & Coal Chemicals Industry

MetCoke 2012MetCoke 2012November 14November 14--15, 201215, 2012

Pittsburgh, PennsylvaniaPittsburgh, Pennsylvania

Bruce A. SteinerBruce A. Steiner

Major IssuesMajor Issues

Climate Change LegislationClimate Change LegislationGreenhouse Gas RegulationsGreenhouse Gas RegulationsIndustrial Boiler RulesIndustrial Boiler RulesCoke Pushing, Quenching & Stack RegulationsCoke Pushing, Quenching & Stack RegulationsRevised Ambient Air Quality StandardsRevised Ambient Air Quality StandardsHH22S ListingS ListingCokemaking Residuals Recycling RegulationCokemaking Residuals Recycling RegulationAssault on Coal Chemical MarketsAssault on Coal Chemical MarketsWar on CoalWar on Coal

Climate Change & GHGsClimate Change & GHGsNo comprehensive legislation now anticipatedNo comprehensive legislation now anticipated Energy efficiency focus, increasing talk of carbon taxEnergy efficiency focus, increasing talk of carbon tax

EPA rules upheld by Court in JuneEPA rules upheld by Court in June –– appeal pendingappeal pending Endangerment findingEndangerment finding Tailoring ruleTailoring rule Permitting reqPermitting req’’tsts Motor vehicle standardsMotor vehicle standards

GHG reporting rule implementedGHG reporting rule implementedPermitting regulationsPermitting regulations New sources >100,000 tpy (as of 7/1/11)New sources >100,000 tpy (as of 7/1/11) Reaffirmed in final rule in July, plantwide applicability limitReaffirmed in final rule in July, plantwide applicability limit

Power plant new source GHG rules proposed in AprilPower plant new source GHG rules proposed in April Challenged by utilitiesChallenged by utilities

Boiler/Process Heater MACTBoiler/Process Heater MACT

Previously issued rule rePreviously issued rule re--proposed Dec 2011proposed Dec 2011Limits unattainable for coke oven gasLimits unattainable for coke oven gas--fired boilersfired boilersWould lead to natural gas firing & flaring coke gasWould lead to natural gas firing & flaring coke gas Est. $300 million/yr natural gas costsEst. $300 million/yr natural gas costs Wasted energy, greater environmental effectWasted energy, greater environmental effect

Seeking exemption of process gasSeeking exemption of process gas--fired unitsfired units Blast furnace gas already exemptBlast furnace gas already exempt Waste heat boilers already exemptWaste heat boilers already exempt At least set reqAt least set req’’ts equivalent to NGts equivalent to NG--fired unitsfired units

Final draft to OMB in May, still thereFinal draft to OMB in May, still thereFinal rule anticipated in DecemberFinal rule anticipated in December

Coke Pushing, Quenching &Coke Pushing, Quenching &Combustion Stack StdsCombustion Stack Stds

EPA initiating review of 2003 PQBS stds.EPA initiating review of 2003 PQBS stds.Basis is Clean Air Act requirements for 8Basis is Clean Air Act requirements for 8--yr residual riskyr residual riskassessment & technology reviewassessment & technology reviewFocus on individual hazardous pollutants in fugitiveFocus on individual hazardous pollutants in fugitiveemissions and mercury in stack emissionsemissions and mercury in stack emissionsConcern over how facilityConcern over how facility--wide risk to be evaluatedwide risk to be evaluatedComprehensive data request forthcomingComprehensive data request forthcomingWork on rule suspended due to EPA budget constraintsWork on rule suspended due to EPA budget constraintsCould be another 5 yrs unless deadline lawsuit broughtCould be another 5 yrs unless deadline lawsuit brought

National Ambient AirNational Ambient AirQuality StandardsQuality Standards

Standards subject to 5Standards subject to 5--yr reviewsyr reviewsConstant process of reConstant process of re--assessmentassessment Evaluation of proliferating health effects studiesEvaluation of proliferating health effects studies

Often driven by litigation, enviro petitionsOften driven by litigation, enviro petitionsTriggers state implementation plansTriggers state implementation plansTighter regulations, permitting difficultiesTighter regulations, permitting difficultiesObstacles to new sources, upgradesObstacles to new sources, upgrades

Ambient Air StandardsAmbient Air Standards

Particulate MatterParticulate Matter 2006 std remanded, re2006 std remanded, re--proposed in Juneproposed in June Lowers annual std from 15Lowers annual std from 15 μμg/mg/m33 to 12to 12--1313 Final rule by Dec 14Final rule by Dec 14

OzoneOzone 2010 proposal to lower 82010 proposal to lower 8--hr std withdrawnhr std withdrawn EPA reconsideringEPA reconsidering -- pressure to lower even furtherpressure to lower even further ReRe--proposal target late 2013, final Sept 2014proposal target late 2013, final Sept 2014

Sulfur Dioxide & Nitrogen OxidesSulfur Dioxide & Nitrogen Oxides New 1New 1--hr stds published in 2010hr stds published in 2010 –– both upheld in Julyboth upheld in July Modeling preference over monitoringModeling preference over monitoring Creates modeling problems for new/modified sourcesCreates modeling problems for new/modified sources Industry coalition & states pushing backIndustry coalition & states pushing back Gaining some traction on modeling issuesGaining some traction on modeling issues

Hydrogen Sulfide ListingHydrogen Sulfide Listing

Enviros petitioned EPA in 1999 to list HEnviros petitioned EPA in 1999 to list H22S as reportable chemicalS as reportable chemicalEPA stayed listing pending further study, but no action takenEPA stayed listing pending further study, but no action takenEnviros reopened in 2009, stay removed in Oct 2011Enviros reopened in 2009, stay removed in Oct 2011 HH22S reportable in 2013 for 2012S reportable in 2013 for 2012

Enviros also intend to sue to compel EPA to list as HAPEnviros also intend to sue to compel EPA to list as HAP Petition pending, under consideration by EPAPetition pending, under consideration by EPA Listing would trigger technologyListing would trigger technology--based regs under Clean Air Actbased regs under Clean Air Act

Of concern due to HOf concern due to H22S in coke oven gasS in coke oven gas

Coke Hazardous Residuals RecyclingCoke Hazardous Residuals Recycling

20082008 ‘‘Definition of Solid WasteDefinition of Solid Waste’’ RuleRule PremisePremise –– if not discarded, not a waste, ergo not a haz wasteif not discarded, not a waste, ergo not a haz waste Described some conditions for recycled haz mtls but not full RCRDescribed some conditions for recycled haz mtls but not full RCRAA Retained longRetained long--standing RCRA exclusions for recycling coke wastesstanding RCRA exclusions for recycling coke wastes Retained conditional exclusions for offRetained conditional exclusions for off--site recyclingsite recycling But Obama EPA reconsidered based on Sierra Club petition/lawsuitBut Obama EPA reconsidered based on Sierra Club petition/lawsuit

Proposed revision July 2011Proposed revision July 2011 Removes exclusion for offRemoves exclusion for off--site recyclingsite recycling

Subjects all 3Subjects all 3rdrd party offparty off--site processing to all RCRA regssite processing to all RCRA regs Adds new reqAdds new req’’ts /criteria for rets /criteria for re--qualifying all existing exclusionsqualifying all existing exclusions Requires each company to qualify vs. industry demonstrationRequires each company to qualify vs. industry demonstration

Final rule uncertain, postFinal rule uncertain, post--election issuance possibleelection issuance possible

Coal Chemical Market IssueCoal Chemical Market Issue

TarTar--based pavement sealant initiativesbased pavement sealant initiatives Predicated on concern for PAHs in runoffPredicated on concern for PAHs in runoff Growing pressure to ban usageGrowing pressure to ban usage Bans in placeBans in place

Austin TX , Madison WI , Washington DC, Long Island,Austin TX , Madison WI , Washington DC, Long Island,Montgomery Co. MD , MN & IL cities, Washington StateMontgomery Co. MD , MN & IL cities, Washington State

Ban legislation under considerationBan legislation under considerationMichigan, New York, San Antonio areaMichigan, New York, San Antonio area

Driven by USGS scientists & handful of environmentalDriven by USGS scientists & handful of environmentalactivists, some adverse mediaactivists, some adverse media

Pavement Coatings Technology Council taking lead to pushPavement Coatings Technology Council taking lead to pushback on several fronts but trend is troublingback on several fronts but trend is troubling

Other Policy Trends of ConcernOther Policy Trends of Concern

Greater focus on toxic pollutantsGreater focus on toxic pollutants Expanded chemical data reportingExpanded chemical data reporting Toxic Substance Control Act regs & legislative reformToxic Substance Control Act regs & legislative reform Chemical testing obligations under TSCAChemical testing obligations under TSCA

Coal industry pressures (Coal industry pressures (““War on CoalWar on Coal””)) Water quality guidance for Central Appalachian regionWater quality guidance for Central Appalachian region Coal ash standardsCoal ash standards –– hazardous or nonhazardous or non--hazardoushazardous Environmental permitting obstacles, vetoesEnvironmental permitting obstacles, vetoes Increased safety enforcement by MSHAIncreased safety enforcement by MSHA Regs discouraging coalRegs discouraging coal--based power generationbased power generation

Trade & Tax policiesTrade & Tax policies

Likely PostLikely Post--Election ActivityElection Activity

Particulate Matter air quality standardsParticulate Matter air quality standardsPower plant greenhouse gas emission standardsPower plant greenhouse gas emission standardsPower plant mercury regulationsPower plant mercury regulationsPower plant wastewater discharge standardsPower plant wastewater discharge standardsCooling water intake regulationsCooling water intake regulationsCoal ash standardsCoal ash standardsHydraulic fracturing rulesHydraulic fracturing rulesIndustrial boiler emissions standardsIndustrial boiler emissions standardsClean Water Act jurisdiction guidanceClean Water Act jurisdiction guidanceResidual materials recycling requirementsResidual materials recycling requirementsMore aggressive enforcement activityMore aggressive enforcement activity