AQ_GEN_PLNG_20200903_SIP_SO2-NAAQS_Att1SOC

Attachment 1
Special Order by Consent (SOC 2017-002) Made and
Entered into Pursuant to North Carolina General Statute
143-215.110 by and between Blue Ridge Paper Products, Inc.
and the Environmental Management Commission

(This page intentionally left blank)
BEFORE THE NORTH CAROLINA
ENVIRONMENTAL MANAGEMENT COMMISSION
)
STATE OF NORTH CAROLINA )
) SPECIAL ORDER BY CONSENT
COUNTY OF HAYWOOD )
)
IN THE MA TIER OF: )
BLUE RIDGE PAPER PRODUCTS, INC. )
[FACILITY ID 4400159] )
soc 2017-002
This SPECIAL ORDER BY CONSENT ("ORDER") is made and entered into pursuant to
North Carolina General Statute 143-215.110 by and between BLUE RIDGE PAPER PRODUCTS,
INC. ("COMPANY") and the ENVIRONMENT AL MANAGEMENT COMMISSION, an agency
of the State ofNorth Carolina ("COMMISSION").
WITNESSETH:
I. The COMPANY and the COMMISSION do hereby stipulate and agree to the following:
A. The COMP ANY owns and operates a pulp and paper mill (SIC Code 2621) located
at 175 Main Street in Canton, Haywood County, North Carolina ("Facility"). The
Facility operates under Air Quality Permit Number 08961 T20 ("Permit"), which
was issued by the North Carolina Division of Air Quality ("DAQ") on June 30,
2017.
B. The United States Environmental Protection Agency ("U.S. EPA") modified the
Primary National Ambient Air Quality Standard ("NAAQS") for sulfur dioxide
("SO2") to a I-hour standard in 2010. 75 Federal Register 35520. The standard is
75 parts per billion ("ppb") and compliance is determined by measuring the 99th
percentile of 1-hour daily maximum concentrations each year and averaging those
values over three years.
C. General Condition II of the Facility's Permit addresses exceedances of ambient
standards.
32230924v2
IL Ambient Air Quality Standards fl 5A NCAC 02D .0501 (c)]
In addition to any control or manner of operation necessary to meet emission
standards specified in this permit, any source of air pollution shall be
operated with such control or in such manner that the source shall not cause
the ambient air quality standards in 15A NCAC 02D. 0400 to be exceeded at
any point beyond the premises on which the source is located. When controls
more stringent than named in the applicable emission standards in this permit
are required to prevent violation of the ambient air quality standards or are
required to create an offset, the permit shall contain a condition requiring
these controls.
D. Rule 15A NCAC 02D .0401(c) states:
(c) No facility or source of air pollution shall cause any ambient air quality
standard in this Section to be exceeded or contribute to a violation of any
ambient air quality standard in this Section except as allowed by Rules
.0531 or .0532 of this Subchapter.
E. Rule 15A NCAC 02D .0402(e) states:
(e) The one-hour primary standard is met at an ambient air quality
monitoring site when the three-year average of the annual (99th percentile)
of the daily maximum one-hour average concentrations is less than or equal
to 75 ppb, as determined in accordance with Appendix T of 40 CFR Part
50.
F. In accordance with U.S. EPA's August 21, 2015 Data Requirements Rule for the
20101-Hour SO2 PrimaryNAAQS, 80 Fed. Reg. 51052, DAQ established an SO2
monitor approximately 150 feet west of the Facility's fence line ("Monitor"), in
order to assist DAQ and U.S. EPA in determining whether ambient air surrounding
the Facility meets the new SO2 NAAQS.
G. Pursuant to a consent decree entered by the Northern District of California against
U.S. EPA in Sierra Club v. McCarthy, Case No. 13-cv-03953-SI, U.S. EPA must
determine whether the ambient air surrounding the Facility meets the new SO2
NAAQS no later than December 31, 2020.
H. 40 C.F.R. Part 63, Subpart DDDDD (the "Boiler MACT Rule") requires the
Facility to install Maximum Achievable Control Technology to reduce its
emissions of hazardous air pollutants from certain boilers at the Facility. Pursuant
to Section 112(j) of the Clean Air Act, 42 U.S.C. § 7612(j), DAQ determined that
the Facility must be in compliance with the Boiler MACT Rule no later than May
20, 2019.
I. In order to comply with the Boiler MACT Rule, the Facility has been permitted to,
and must complete the installation of approximately $50 million in planned
improvements (the "Boiler MACT Improvements"), no later than May 20, 2019.
The Boiler MACT Improvements will include the installation of two new, natural
gas-fired boilers, the installation of wet scrubbers and rebuilt electrostatic
precipitators on two additional coal-fired boilers and the permanent shutdown of
two coal-fired boilers at the conclusion of the project.
32230924v2
J. As of December 2016, the facility's three-year facility-wide SOi actual emissions
average was approximately 7,600 tons per year. While construction of the Boiler
MACT Improvements is ongoing, the Facility's actual SO2 emissions are estimated
to decrease as follows:
1. By December 31, 2017 -estimated emissions decrease of approximately
1,000 tons per year;
2. By October 31, 2018 -estimated emissions decrease of approximately
1,500 tons per year;
3. By November 30, 2018 -estimated emissions decrease of 1,500 tons per
year; and
4. By December 31, 2018 -estimated emissions decrease of 1,100 tons per
year.
J. Since required monitoring began on January 1, 2017, the Monitor has detected 1-
hour daily maximum concentrations exceeding the SO2 standard. Until the Boiler
MACT Improvements are complete, the Company and DAQ expect the Monitor
will periodically detect additional I-hour daily maximum concentrations of SO2
greater than 75 ppb.
K. An Addendum to Notice of Violation and Notice of Recommendation for
Enforcement ("NOV/NRE") was issued to the facility on June 8, 2017, for
violations of Permit General Condition II which requires compliance with I SA
NCAC 02D .0501(c). The NOV/NRE amended the March 14, 2017, NOV and
included the SO2 exceedances referenced in paragraph I.J.
L. By letter dated June 23, 2017, the COMPANY disputed that it is presently in
violation of Permit General Condition II or 15A NCAC 02D .0501(c).
M. The COMPANY commenced operation of two new, natural gas-fired boilers (225
mmBTU/hour) (the "New Gas Boilers") at the Facility during the second quarter
2017.
N. The COMPANY permanently shut down the Facility's "Big Bill" coal-fired boiler
in July 2017.
0. The COMP ANY proposes to limit emissions of SO2 after completion of the Boiler
MACT Improvements to comply with the SO2 NAAQS. The COMP ANY also
proposes to apply for a modification of its Permit to incorporate an appropriate
limit.
THEREFORE, the COMMISSION and the COMP ANY, desiring to resolve and settle the
compliance issues between them and in order to memorialize the COMPANY's commitments to
32230924v2
complete the Boiler MACT Improvements and, thereafter, to limit the Facility's emissions ofSO2,
have agreed to enter into this ORDER with the following terms and conditions:
II. The COMP ANY, desiring to operate in a safe and environmentally sound manner during
the period of this ORDER and thereafter in accordance with the rules and regulations of
the COMMISSION, does hereby agree to perform the following activities:
32230924v2
A. Improvements Milestones:
1. The COMP ANY will commence initial operation of the rebuilt electrostatic
precipitators and new wet scrubbers on the Facility's "Riley Coal Boiler" by
October 31, 2018.
2. The COMP ANY will commence initial operation of the rebuilt electrostatic
precipitators and new wet scrubbers on the Facility's ''Number 4" coal-fired
boiler by November 30, 2018.
3. The COMP ANY will permanently shut down the Facility's "Peter G" coal-fired
boiler by December 31, 2018.
4. No later than 14 days after the deadline for completing each milestone required
in Paragraph II.A, the COMP ANY shall submit a written certification to the Air
Quality Regional Supervisor, Asheville Regional Office, DAQ, stating whether
such milestone has been performed.
B. Testing and Reporting:
1. Following initial startup of the rebuilt electrostatic precipitators and wet
scrubbers on the Riley Coal Boiler, the COMPANY will operate said
precipitators and wet scrubbers in accordance with good operational and air
pollution control practices at all times. An SO2 emissions reduction source test
report will be submitted to DAQ within 180 days of "Riley Coal Boiler"
scrubber initial operation. Such report shall include SO2 mass emissions,
scrubber control efficiency, and associated operational parameters.
2. Following initial startup of the rebuilt electrostatic precipitators and wet
scrubbers on the Number 4 coal-fired boiler, the COMPANY will operate said
precipitators and wet scrubbers in accordance with good operational and air
pollution control practices at all times. An SO2 emissions reduction source test
report will be submitted to DAQ within 180 days of "No. 4" coal-fired boiler
scrubber initial operation. Such report shall include SO2 mass emissions,
scrubber control efficiency, and associated operational parameters.
3. The COMPANY will submit an SO2 emissions source test report to DAQ for
the Riley Bark Boiler, No. 10 recovery Furnace and No. 11 Recovery Furnace
at the same time as the test required in paragraph II.B.lor II.B.2, whichever is
later. The test requirement under II.B.3 can be satisfied with a test performed
and submitted at any point within 2 years prior to the II.B.1 or II.B.2 submittal.
4. The COMPANY shall submit a facility-wide SO2 emissions summary to DAQ
with the last test report required under paragraph H.B.
C. The COMP ANY shall submit a complete permit application including SO2
emission limits and modeling that will demonstrate compliance with the one hour
SO2 NAAQS by March 1, 2018. DAQ will issue a permit with SO2 emission limits
containing a compliance date no earlier than December 31, 2018.
III. The COMMISSION agrees that, except as provided in the terms and requirements of this
ORDER, the COMP ANY shall not be subject to a separate Notice of Violation or other
enforcement action related to the I-hour SO2 NAAQS or compliance with 15A N.C.A.C.
02D .0402 during the term of this ORDER.
In the event DAQ receives sufficient data from the Monitor to demonstrate the average
annual 99th percentile of 1-hour daily maximum concentrations of SO2 for the period
between January 1, 2017, up to and including, December 31, 2019 will exceed 7 5 ppb, the
COMPANY agrees to pay DAQ a stipulated penalty in the amount of $5,000.00. This
amount shall be due and payable within 30 days of the COMP ANY receiving written notice
of same from the DAQ Director. By entering into this SOC and agreeing to pay this
stipulated penalty, the COMP ANY does not concede liability for the alleged violations
described in the NOV/NRE.
In the event that the COMP ANY fails to comply with any deadline as set out in this
ORDER or fails to achieve final compliance with any applicable requirement of this
ORDER, the COMP ANY agrees that, unless excused under Paragraph IV, the COMP ANY
will pay DAQ stipulated penalties according to the following schedule:
Deadlines and Re g uirements Sti(!ulated Penalties
Failure to meet requirements in paragraph II.A. $500.00 per day for the first 5 days and
$1000.00 per day thereafter
Failure to comply with the SO2 emissions limit $500.00 per day for the first 5 days and
in the permit described in paragraph II.C. $1000.00 per day thereafter
Failure to comply with any deadline or $500.00 per day for the first 5 days and
operating requirement in Paragraph II .B or $1000.00 per day thereafter
11.C.
Any daily maximum I-hour SO2 measurement $1,000.00 per exceedance
exceeding 75 ppb at the Monitor between April
1, 2019 and the expiration of this ORDER.
32230924v2
Failure within thirty (30) days of receipt of the DAQ Director's written demand to pay
stipulated penalties will be grounds for a collection action, which the Attorney General is
hereby authorized to initiate. The only issue in such an action will be whether thirty (30)
days has elapsed.
IV. The COMPANY'S obligation to comply with the requirements set forth in this ORDER
for which a stipulated penalty may be assessed may be delayed or excused only to the
extent that noncompliance is caused by circumstances beyond control of the COMP ANY,
as determined by the DAQ Director. Failure to obtain funding will not be considered an
event beyond the COMP ANY'S control. If any such delaying event occurs, the
COMP ANY shall notify DAQ in writing within ten (10) days of encountering or
discovering the delaying event, describing in detail the event or delay, the precise cause( s)
of the event or delay, the measure(s) taken and to be taken by the COMPANY to prevent
or minimize the event or delay, and the schedule by which those measures will be
implemented. If the COMP ANY establishes good cause for its failure to comply with any
part of this ORDER, (i.e., noncompliance was caused by circumstances beyond the
control of the COMPANY), DAQ and the COMPANY jointly may stipulate and agree to
a written modification of this ORDER. Extension of any compliance date pursuant to this
Paragraph shall not extend any subsequent deadlines established in the ORDER unless
the subsequent deadline is dependent upon completion of the earlier deadline.
V. The COMPANY agrees to waive any rights it may have to seek judicial review to challenge
this ORDER or to seek a stay of enforcement of this ORDER in connection with any
judicial review of the State Implementation Plan. The COMMISSION acknowledges that
this waiver does not prohibit the COMP ANY from seeking modification of this ORDER if
any regulatory standards upon which this ORDER is based are changed subsequent to its
execution. In such cases, the COMP ANY may petition that the ORDER be modified to
reflect those regulatory changes.
VI. Any violation of Air Quality Standards not resolved by this ORDER shall subject the
COMPANY to appropriate enforcement action pursuant to N.C.G.S. §§ 143-215.114A,
143-215.114B and 215.l 14C.
VII. All notices and reports required from the COMP ANY by this ORDER shall be delivered
to:
Brendan Davey, P .E., Regional Air Quality Supervisor
N.C. Department of Environmental Quality
2090 U.S. Highway 70
Swannanoa, NC 28778
All payments required from the COMP ANY by this ORDER shall delivered to:
32230924v2
Enforcement Group -Payments
NCDEQ-DAQ
Mail Service Center 1641
Raleigh, North Carolina 27699-1641
VIII This ORDER constitutes full and final resolution and satisfaction of all matters addressed
herein and any and all claims or prospective claims that the COMMISSION has or may
have regarding the matters addressed herein, as of the date this ORDER is approved by the
COMMISSION. This ORDER shall not affect the COMP ANY'S obligation to comply with
any Federal, State, or local laws or regulations.
IX. Final approval and entry into this ORDER are subject to the requirements that the
COMMISSION give notice of proposed consent order to the public, and that the public
have at least thirty (30) days within which to comment on the ORDER.
X. Should any provision of this ORDER be declared by a court of competent jurisdiction to
be inconsistent with Federal or State law and therefore unenforceable, the remaining
provisions hereof shall remain in full force and effect.
XI. Any modifications of this ORDER must be agreed to in writing signed by both parties.
XII. Except as otherwise set forth herein, this ORDER is not and shall not be intei:preted to be
a permit or modification of an existing permit under Federal, State or local law, and shall
not be construed to waive or relieve the COMP ANY of its obligations to comply in the
future with any permit.
XIII. In the event of termination of operations and closure of the FACILITY, the COMPANY
shall notify the DIRECTOR in writing, within five (5) business days of the earlier of (i)
the date any Workers Adjustment and Retraining Notification (WARN) Act, notification,
or (ii) FACILITY closure. Receipt of said notification from the COMP ANY by the
DIRECTOR shall terminate any obligations of the COMPANY pursuant to this ORDER,
including those pertaining to stipulated penalties, and this ORDER shall become null and
void in its applicability to the COMP ANY. The COMPANY acknowledges its
responsibilities pursuant to this ORDER from the date of final approval and entry of this
ORDER, through the date of receipt by the DIRECTOR of notification of closure required
by this Paragraph or the date of expiration of this ORDER, whichever is earlier.
XIV. This ORDER is effective on execution by the COMMISSION and shall expire on
December 31, 2019 .
32230924v2
ATTESTED:
APPROVED AND ACCEPTED:
BY:
DATE:
'
32230924v2
Stephen J. Hutchins
General Manager
Blue Ridge Paper Products, Inc
DATE: 'fi?/1 1 ---7--7-+----'-----'--------