AQ_F_0800044_20120316_CMPL_DOE

NCDENR ,
North Carolina Department of Environment and Natural Resources
Division of Air Quality
Beverly Eaves Perdue Sheila C. Holman Dee Freeman
Governor Director Secretary
March 16, 2012
Dr. David Peele
President
Avoca Incorporated
Post Office Box 129
841 Avoca Farm Road
Merry Hill,NC 27957
SUBJECT:Boiler NESHAP Testing Requirements
Air Quality Permit No. 01819T38
Avoca Incorporated
Facility ID: 0800044, Merry Hill, Bertie County
Facility Classification: Title V
Dear Dr. Peele:
The DAQ has received and is responding to your letter dated March 5, 2012. In your
letter, you request 3 items: 1) Test waiver for dioxin/furan, 2) Deferral of enforcement in regards
to the sequence of events surrounding the March 21, 2011 rule actions, 3)Extension of the
testing deadline.
The DAQ is cognizant that the start-up of your facility's two biomass boilers occurred
between the March 21, 2011 Boiler MACT stay and the January 9, 2012 vacature of the stay.
The DAQ understands that your facility has had uncertainty on what provisions would apply as
well as when those rule provisions would apply. The January 9, 2012 court vacature of the May
16, 2011 EPA stay of their own rules while they reconsider, has caused your facility to react on a
shorter time frame than normal for demonstrating compliance. Due to these factors, the DAQ
states the following:
1) Test waiver for dioxin/furan
As stated in your request, the 3/21/11 rules, currently in place, require dioxin/furan testing.
EPA's proposed rules for the subject source category, would not require dioxin/furan testing.
Your request for a waiver is based on the provisions of 63.7(h)(2):
Individual performance tests may be waived upon written application to the
Administrator if, in the Administrator's judgment, the source is meeting the relevant
standard(s) on a continuous basis, or the source is being operated under an extension of
compliance, or the owner or operator has requested an extension of compliance and the
Administrator is still considering that request.
Technical Services Section
1641 Mail Service Center,Raleigh,North Carolina 27699-1641 1��One
217 West Jones Street,Raleigh,NC 27603 1 v OrthCa. ohna
Phone: [phone]/FAX [phone]/Internet: www.ncair.org Natumllff
An Equal Opportunity/Affirmative Action Employer—50%Recycled/10%Post Consumer Paper

Dr. David Peele
March 16, 2012
Page 2
The rule goes on to state in 63.7(h)(3):
Request to waive a performance test.
(i) If a request is made for an extension of compliance under 63.6 i the application for
a waiver of an initial performance test shall accompany the information required for the
request for an extension of compliance. If no extension of compliance is requested or if
the owner or operator has requested an extension of compliance and the Administrator is
still considering that request, the application for a waiver of an initial performance test
shall be submitted at least 60 days before the performance test if the site-specific test
plan under paragraph (c) of this section is not submitted.
(ii)If an application for a waiver of a subsequent performance test is made, the
application may accompany any required compliance progress report, compliance status
report, or excess emissions and continuous monitoring system performance report[such
as those required under 63.6 i 63.9 and W.10 e or specified in a relevant
standard or in the source's title V permit], but it shall be submitted at least 60 days
before the performance test if the site-specific test plan required under paragraph (c) of
this section is not submitted.
(iii)Any application for a waiver of a performance test shall include information
justifying the owner or operator's request for a waiver, such as the technical or
economic infeasibility, or the impracticality, of the affected source performing the
required test.
The DAQ, as discussed below, is not granting an extension of compliance discussed in
63.6(i). However, the DAQ will consider your submission under the performance test waiver
provisions of 63.7(h)(3)(ii).
The rule states in 63.7(h)(4):
(4)Approval of request to waive performance test. The Administrator will approve or
deny a request for a waiver of a performance test made under paragraph (h)(3) of this
section when he/she-
(i)Approves or denies an extension of compliance under 63.6 ice; or
(ii)Approves or disapproves a site-specific test plan under§63.7(c)(3); or
(iii)Makes a determination of compliance following the submission of a required
compliance status report or excess emissions and continuous monitoring systems
performance report; or
(iv)Makes a determination of suitable progress towards compliance following the
submission of a compliance progress report, whichever is applicable.
The DAQ will grant a waiver of the dioxin/furan source test under the provisions of
63.7(h)(4)(iii) once the oxygen monitor certification is complete, the CO testing has been
performed, and the compliance status of the sources relative to CO & dioxin/furan is linked to
the compliance value generated by the oxygen monitor. If the sources cannot demonstrate
compliance with the CO limit and maintain compliance of the oxygen set point, then
dioxin/furan testing may be required if the 3/21/11 rule is still in effect.

Dr. David Peele
March 16, 2012
Page 3
2) Deferral of enforcement in regards to the sequence of events surrounding the March 21,
2011 rule actions
Your request to the DAQ specifically requests a deferral of enforcement for the following
reasons:
"2c) The inability for Avoca to provide any required notifications and any other plans,
records, or reports within the time frames specified in Subparts A and DDDDD due to
the above listed actions by EPA and the court;
2d) the inability for Avoca to test within 180 days of boiler startup due to the above listed
actions of EPA and the court; and
2e) any other requirements specified within Subparts A and DDDDD that Avoca could
not have anticipated or could not have been completed within the required time frames
outlined in these rules due to the above listed EPA and court actions.
In addition to the above issues requested for coverage under the deferral of enforcement,
Avaco requests that the waiver of D/F testing also be covered under any deferral of
enforcement"
Although there is no formal tool in the federal rules, the DAQ agrees with EPA's letter dated
February 7,2012 "No Action Assurance Regarding Certain Deadlines in the March 2011
Major Source Boiler MACT Rule and the March 2011 CISWI Rule." The DAQ will take no
further action and defer enforcement on items that could not have been reasonably completed
due to the rule stay &ultimate vacature of the stay. However, a deferral of enforcement or
letter of"no action" does not equate to a statement of compliance. If the facility has missed
deadlines listed in their Title V permit, then the facility will need to include those items as
deviations in their Title V Annual Compliance Certification.
The waiver of the dioxin/furan test is separate from items covered in the EPA's "No Action"
letter. The DAQ, as indicated in item 1 above, will waive the dioxin/furan test once the other
testing and certification has been successfully completed. If the testing cannot be
successfully completed and there is no assurance of compliance, then the DAQ may require
dioxin/f Iran testing. The absence of the dioxin/furan test with no assurance of parametric
compliance may be considered a violation.
3) Extension of the testing deadline
In your letter, you request an extension of the testing deadline. 63.6(i) of the General
Provisions addresses compliance extensions. Although there are a few conditions that would
allow an extension of compliance, your situation does not meet any of those conditions.
However, considering the timing issues that have affected your facility due to the EPA stay
and eventual court vacature of the stay, the DAQ is sympathetic. In the spirit of the EPA's
"No Action" letter, the DAQ will defer enforcement on any testing deadlines provided that
the testing requirements are completed by July 7, 2012, which is 180 days from the January
9, 2012 court vacature of the EPA stay.

Dr. David Peele
March 16,2012
Page 4
If you have any other questions regarding this letter,please contact Michael Pjetraj, P.E., at 919-
707-8497.
Sincerely
(
Sheila Holman, Director
Cc: Central Files
Ec: Rob Fisher—WARO Supervisor
Michael Pjetraj —SSCB Supervisor
Don van der Vaart—Permits Chief

NCDENR ,
North Carolina Department of Environment and Natural Resources
Division of Air Quality
Beverly Eaves Perdue Sheila C. Holman Dee Freeman
Governor Director Secretary
March 16, 2012
Dr. David Peele
President
Avoca Incorporated
Post Office Box 129
841 Avoca Farm Road
Merry Hill,NC 27957
SUBJECT:Boiler NESHAP Testing Requirements
Air Quality Permit No. 01819T38
Avoca Incorporated
Facility ID: 0800044, Merry Hill, Bertie County
Facility Classification: Title V
Dear Dr. Peele:
The DAQ has received and is responding to your letter dated March 5, 2012. In your
letter, you request 3 items: 1) Test waiver for dioxin/furan, 2) Deferral of enforcement in regards
to the sequence of events surrounding the March 21, 2011 rule actions, 3)Extension of the
testing deadline.
The DAQ is cognizant that the start-up of your facility's two biomass boilers occurred
between the March 21, 2011 Boiler MACT stay and the January 9, 2012 vacature of the stay.
The DAQ understands that your facility has had uncertainty on what provisions would apply as
well as when those rule provisions would apply. The January 9, 2012 court vacature of the May
16, 2011 EPA stay of their own rules while they reconsider, has caused your facility to react on a
shorter time frame than normal for demonstrating compliance. Due to these factors, the DAQ
states the following:
1) Test waiver for dioxin/furan
As stated in your request, the 3/21/11 rules, currently in place, require dioxin/furan testing.
EPA's proposed rules for the subject source category, would not require dioxin/furan testing.
Your request for a waiver is based on the provisions of 63.7(h)(2):
Individual performance tests may be waived upon written application to the
Administrator if, in the Administrator's judgment, the source is meeting the relevant
standard(s) on a continuous basis, or the source is being operated under an extension of
compliance, or the owner or operator has requested an extension of compliance and the
Administrator is still considering that request.
Technical Services Section
1641 Mail Service Center,Raleigh,North Carolina 27699-1641 1��One
217 West Jones Street,Raleigh,NC 27603 1 v OrthCa. ohna
Phone: [phone]/FAX [phone]/Internet: www.ncair.org Natumllff
An Equal Opportunity/Affirmative Action Employer—50%Recycled/10%Post Consumer Paper

Dr. David Peele
March 16, 2012
Page 2
The rule goes on to state in 63.7(h)(3):
Request to waive a performance test.
(i) If a request is made for an extension of compliance under 63.6 i the application for
a waiver of an initial performance test shall accompany the information required for the
request for an extension of compliance. If no extension of compliance is requested or if
the owner or operator has requested an extension of compliance and the Administrator is
still considering that request, the application for a waiver of an initial performance test
shall be submitted at least 60 days before the performance test if the site-specific test
plan under paragraph (c) of this section is not submitted.
(ii)If an application for a waiver of a subsequent performance test is made, the
application may accompany any required compliance progress report, compliance status
report, or excess emissions and continuous monitoring system performance report[such
as those required under 63.6 i 63.9 and W.10 e or specified in a relevant
standard or in the source's title V permit], but it shall be submitted at least 60 days
before the performance test if the site-specific test plan required under paragraph (c) of
this section is not submitted.
(iii)Any application for a waiver of a performance test shall include information
justifying the owner or operator's request for a waiver, such as the technical or
economic infeasibility, or the impracticality, of the affected source performing the
required test.
The DAQ, as discussed below, is not granting an extension of compliance discussed in
63.6(i). However, the DAQ will consider your submission under the performance test waiver
provisions of 63.7(h)(3)(ii).
The rule states in 63.7(h)(4):
(4)Approval of request to waive performance test. The Administrator will approve or
deny a request for a waiver of a performance test made under paragraph (h)(3) of this
section when he/she-
(i)Approves or denies an extension of compliance under 63.6 ice; or
(ii)Approves or disapproves a site-specific test plan under§63.7(c)(3); or
(iii)Makes a determination of compliance following the submission of a required
compliance status report or excess emissions and continuous monitoring systems
performance report; or
(iv)Makes a determination of suitable progress towards compliance following the
submission of a compliance progress report, whichever is applicable.
The DAQ will grant a waiver of the dioxin/furan source test under the provisions of
63.7(h)(4)(iii) once the oxygen monitor certification is complete, the CO testing has been
performed, and the compliance status of the sources relative to CO & dioxin/furan is linked to
the compliance value generated by the oxygen monitor. If the sources cannot demonstrate
compliance with the CO limit and maintain compliance of the oxygen set point, then
dioxin/furan testing may be required if the 3/21/11 rule is still in effect.

Dr. David Peele
March 16, 2012
Page 3
2) Deferral of enforcement in regards to the sequence of events surrounding the March 21,
2011 rule actions
Your request to the DAQ specifically requests a deferral of enforcement for the following
reasons:
"2c) The inability for Avoca to provide any required notifications and any other plans,
records, or reports within the time frames specified in Subparts A and DDDDD due to
the above listed actions by EPA and the court;
2d) the inability for Avoca to test within 180 days of boiler startup due to the above listed
actions of EPA and the court; and
2e) any other requirements specified within Subparts A and DDDDD that Avoca could
not have anticipated or could not have been completed within the required time frames
outlined in these rules due to the above listed EPA and court actions.
In addition to the above issues requested for coverage under the deferral of enforcement,
Avaco requests that the waiver of D/F testing also be covered under any deferral of
enforcement"
Although there is no formal tool in the federal rules, the DAQ agrees with EPA's letter dated
February 7,2012 "No Action Assurance Regarding Certain Deadlines in the March 2011
Major Source Boiler MACT Rule and the March 2011 CISWI Rule." The DAQ will take no
further action and defer enforcement on items that could not have been reasonably completed
due to the rule stay &ultimate vacature of the stay. However, a deferral of enforcement or
letter of"no action" does not equate to a statement of compliance. If the facility has missed
deadlines listed in their Title V permit, then the facility will need to include those items as
deviations in their Title V Annual Compliance Certification.
The waiver of the dioxin/furan test is separate from items covered in the EPA's "No Action"
letter. The DAQ, as indicated in item 1 above, will waive the dioxin/furan test once the other
testing and certification has been successfully completed. If the testing cannot be
successfully completed and there is no assurance of compliance, then the DAQ may require
dioxin/f Iran testing. The absence of the dioxin/furan test with no assurance of parametric
compliance may be considered a violation.
3) Extension of the testing deadline
In your letter, you request an extension of the testing deadline. 63.6(i) of the General
Provisions addresses compliance extensions. Although there are a few conditions that would
allow an extension of compliance, your situation does not meet any of those conditions.
However, considering the timing issues that have affected your facility due to the EPA stay
and eventual court vacature of the stay, the DAQ is sympathetic. In the spirit of the EPA's
"No Action" letter, the DAQ will defer enforcement on any testing deadlines provided that
the testing requirements are completed by July 7, 2012, which is 180 days from the January
9, 2012 court vacature of the EPA stay.

Dr. David Peele
March 16,2012
Page 4
If you have any other questions regarding this letter,please contact Michael Pjetraj, P.E., at 919-
707-8497.
Sincerely
(
Sheila Holman, Director
Cc: Central Files
Ec: Rob Fisher—WARO Supervisor
Michael Pjetraj —SSCB Supervisor
Don van der Vaart—Permits Chief