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OLD MACT

Organic Liquids Distribution Maximum Achievable Control Technology

February 3, 2004EPA's final rule was published in the Federal Register.  It was initially released by EPA five months earlier – on August 25, 2003 (see below).  The rule promulgates national emission standards for hazardous air pollutants (NESHAP) for new and existing organic liquids distribution (OLD) (non-gasoline) operations.  The compliance date for all existing affected sources, including storage terminals, refineries, crude oil pipeline stations, and various manufacturing operations, is February 5, 2007.  The rule is commonly referred to as the “OLD MACT” rule due to its requirement that the applicable emission standards reflect the use of maximum achievable control technology (MACT).

Download Final Rule (PDF)  

January 22, 2004ILTA held a workshop in New Orleans summarizing the regulatory requirements of the NESHAP for Organic Liquid Distribution (Non-Gasoline), 40 CFR 63 Subpart EEEE, as applicable to bulk liquid terminal owners and operators.  The session focused on applicability determinations, exemptions, control requirements, inspections, monitoring, testing, recordkeeping, and reporting.  Trinity Consultants, Inc. conducted the workshop, which was available at no cost to ILTA terminal member companies.  Terminal members may request documents from that workshop by clicking on this link.

August 25, 2003 EPA issued the final OLD MACT rule.  It was immediately made available to the public through EPA’s Web site, document room and other routine document distribution procedures, but it was not published in the Federal Register until February 3, 2004.  The rule reduces emissions of toxic air pollutants from facilities that distribute organic liquids other than gasoline.  Toxic air pollutants, also known as air toxics, are those pollutants known or suspected to cause cancer or other serious health and environmental problems.  Organic liquid distribution takes place at liquid terminal facilities, organic chemical manufacturing facilities, petroleum refineries, crude oil pipeline pumping and breakout stations, and other industrial facilities.  EPA estimates that the final rule will affect approximately 380 facilities that distribute organic liquids.

In general, the rule requires more stringent emission controls and work practices for storage tanks, transfer racks, other transfer operations, transport vehicles while being loaded, equipment components with the potential to leak (such as valves, pumps, fittings and sampling connections), and the filling of containers.  Fortunately, most crude oil and chemical terminals covered by the rule do not face a set of imminent compliance due dates.  Here are the deadlines: 

  1. Existing operations – For existing operations subject to the OLD MACT requirements, terminals must comply within three years from the date the rule is published in the Federal Register.  The compliance date is February 5, 2007.
  2. Floating roof tanks – An exception to the three-year deadline applies to floating roof storage tanks that do not initially meet the equipment standard for storage tanks in the final rule.  These tanks must be in compliance following their next degassing and cleaning, or by 10 years from February 3, 2004.  If the first degassing and cleaning activity occurs during the three years following the Federal Register publication date of February 3, 2004, the compliance deadline is three years after that date. 
  3. Existing facilities not initially covered – If a terminal increases its HAP emissions, or increases the potential to emit such that it becomes a major source of HAP and thus becomes subject to the OLD MACT rule, it must comply within three years after the date it becomes a major source. 
  4. New and reconstructed facilities – Emission sources from new and reconstructed operations must be in compliance with OLD MACT requirements on February 3, 2004.  New or reconstructed operations that commence construction or reconstruction after that date must comply upon startup.  Operations subject to the OLD MACT rule are defined as “new” if their construction commenced after April 2, 2002, at a site where there were no existing OLD MACT operations.  An operation subject to the OLD MACT rule is defined as “reconstructed” if it commenced operation after April 2, 2002, at a site where there was an existing OLD MACT operation.  
  5. Exceptions for new and reconstructed facilities –  (1) If an emission source in a new or reconstructed operation would not have been required to be controlled under the proposed rule but is required to be controlled under the final rule, the emission source must be in compliance by three years from February 3, 2004.  (2) If an emission source in a new or reconstructed operation would have been subject to a less stringent control requirement under the proposed rule than applies under the final rule, the emission source must be in compliance with the final rule’s requirement by three years from February 3, 2004.  In the interim, the emission source must comply with the less stringent control requirement as proposed. 

The OLD MACT rule regulates hazardous air pollutants from storage terminals, refineries, crude oil pipeline stations, and various manufacturing operations.  The rule covers all crude oils downstream of the first point of custody transfer.  It does not cover gasoline, kerosene, diesel fuel, and heavier distillate oils and fuel oils, asphalt, hazardous waste, and wastewater. 

Background Information on the Rule (May 31, 2002)

EPA’s proposed rule on national emission standards for hazardous air pollutants for non-gasoline organic liquids distribution (OLD) operations was published in the Federal Register on April 2, 2002 (67 FR 15674).  The proposed standards, to be implemented at bulk liquid storage terminals, refineries, crude oil pipeline stations, and various manufacturing facilities, would implement section 112 of the Clean Air Act.  OLD operations at plant sites will be required to meet hazardous air pollutant emission standards reflecting the application of maximum achievable control technology (MACT).

The proposed standards would affect OLD activities which, taken together, are considered to be a facility.  The regulated liquids consists of those that contain 5 percent by weight or more of any of the 69 organic hazardous air pollutant (HAP) compounds listed in Table 1 of the proposed rule, as well as all crude oil except black oil.  Examples of some of the primary pollutants emitted from OLD operations are benzene, ethylbenzene, toluene, vinyl chloride, and xylenes.  Only those OLD operations at "major source" facilities or plant sites would be regulated.

The rule will regulate the transfer of organic liquids into fixed-roof or floating roof tanks and the storage of such liquids in tanks.  The rule will also regulate the transfer of organic liquids into cargo tanks (tank trucks or railcars) at transfer racks, and the transfer of such liquids through pumps, piping, valves, and other equipment that may potentially leak.  For storage tanks, there would be two options for limitations on emissions: installation of a closed vent system and control device with a specified control efficiency; or installation of a properly constructed floating roof.  For transfer racks a vapor collection system and control device would have to be installed and continuously monitored.  A work practice standard would apply to cargo tanks loading at a controlled rack.  A work practice standard would also apply to any equipment used to handle organic liquids for at least 300 hours per year.  The standard would involve regular instrument monitoring for leaks and repair of leaking equipment.

ILTA’s Comments on the Proposed Rule

On May 31, 2002, ILTA filed comments on the proposed rule.  The comments were the product of ILTA’s OLD MACT working group, which consisted of 10 ILTA terminal member companies.  The group identified 12 issues of special concern to terminal companies, provided technical input, and assisted in the drafting of the comments.

One of the high priority issues for ILTA relates to emission controls for transfer racks operating at a low vapor pressure.  In its comments, ILTA urged EPA to modify the rule to include a vapor pressure cutoff of 1.5 psia for the applicability of controls for transfer operations.  ILTA noted that otherwise, emission controls would apply under certain conditions where there would be no need for controls.

In commenting on another high priority issue, ILTA stated that the rule should allow storage tank upgrades to be conducted the next time tanks are emptied and degassed, or within 10 years, but not within three years as proposed in the rule.  ILTA noted that emptying tanks out-of-cycle to meet the three-year deadline would produce emissions exceeding the total emission reductions ultimately resulting from the required alterations.

Download ILTA’s May 31, 2002 Comments (PDF)

 

Independent Liquid Terminals Association

1444 I Street, NW #400   Washington, DC  20005  USA

Tel: (202) 842-9200   Fax: (202) 326-8660   E-mail: info@ilta.org   Internet: www.ilta.org

 

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