MACT rule could sideline significant biomass power development

MACT rule could sideline significant biomass power development

RICHMOND, VA, Aug. 6, 2010 (RISI) - The Environmental Protection Agency's new Boiler Maximum Achievable Control Technology (Boiler MACT) rule governing industrial energy emissions is now stalling wood energy projects already underway.

Only recently released, the proposed rule could set emission limits at levels "which are barely detectable and possibly unachievable," opponents say.

Already, at least one major ($150 million) wood energy project by a leading US forest products manufacturer has been sidelined.

Until the emerging debate is settled, "We continue with the engineering," a company contact said, but "need a clear definition," before proceeding with major spending.

Beyond new wood energy projects, the AF&PA has engaged numerous efforts to counter the EPA measure's potential impact on existing operations.

"Boiler MACT could cost the forest products industry alone over $6 billion in capital expenditures and hundreds of millions more in annual costs unless significant changes are made," said a spokesman recently.

"The EPA's current approach will cause huge job losses within the forest products industry and many others," said AF&PA President and CEO Donna Harman.

The agency sets limits for air pollutants from industrial boilers and process heaters used by a wide range of manufacturers across the country.

Recently, the Biomass Thermal Energy Council (BTEC) commented, "EPA's analysis in determining the biomass boiler emissions limits used an incomplete dataset, overestimated the health impacts of biomass combustion, and underestimated the economic impacts to small businesses and communities. "

Comments on the proposed rule are being accepted by EPA until Aug. 23. Information is available at http://www.epa.gov/airquality/combustion/actions.html.

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