Rule2024-09185

Supplemental Effluent Limitations Guidelines and Standards for the Steam Electric Power Generating Point Source Category

Primary source

Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.

Published
May 9, 2024
Effective
July 8, 2024

Issuing agencies

Environmental Protection Agency

Abstract

The Environmental Protection Agency (EPA or the Agency) is finalizing a Clean Water Act regulation to revise the technology-based effluent limitations guidelines and standards (ELGs) for the steam electric power generating point source category applicable to flue gas desulfurization (FGD) wastewater, bottom ash (BA) transport water and legacy wastewater at existing sources, and combustion residual leachate (CRL) at new and existing sources. Last updated in 2015 and 2020, this regulation is estimated to cost an additional $536 million to $1.1 billion dollars annually in social costs and reduce pollutant discharges by an additional approximately 660 to 672 million pounds per year.

Full Text

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[Federal Register Volume 89, Number 91 (Thursday, May 9, 2024)]
[Rules and Regulations]
[Pages 40198-40306]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-09185]



[[Page 40197]]

Vol. 89

Thursday,

No. 91

May 9, 2024

Part V





Environmental Protection Agency





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40 CFR Part 423





Supplemental Effluent Limitations Guidelines and Standards for the 
Steam Electric Power Generating Point Source Category; Final Rule

Federal Register / Vol. 89, No. 91 / Thursday, May 9, 2024 / Rules 
and Regulations

[[Page 40198]]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 423

[EPA-HQ-OW-2009-0819; FRL-8794-02-OW]
RIN 2040-AG23


Supplemental Effluent Limitations Guidelines and Standards for 
the Steam Electric Power Generating Point Source Category

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: The Environmental Protection Agency (EPA or the Agency) is 
finalizing a Clean Water Act regulation to revise the technology-based 
effluent limitations guidelines and standards (ELGs) for the steam 
electric power generating point source category applicable to flue gas 
desulfurization (FGD) wastewater, bottom ash (BA) transport water and 
legacy wastewater at existing sources, and combustion residual leachate 
(CRL) at new and existing sources. Last updated in 2015 and 2020, this 
regulation is estimated to cost an additional $536 million to $1.1 
billion dollars annually in social costs and reduce pollutant 
discharges by an additional approximately 660 to 672 million pounds per 
year.

DATES: This final rule is effective on July 8, 2024. In accordance with 
40 CFR part 23, this regulation shall be considered issued for purposes 
of judicial review at 1 p.m. Eastern time on May 23, 2024. Under 
section 509(b)(1) of the Clean Water Act (CWA), judicial review of this 
regulation can be had only by filing a petition for review in the U.S. 
Court of Appeals within 120 days after the regulation is considered 
issued for purposes of judicial review. Under section 509(b)(2), the 
requirements of this regulation may not be challenged later in civil or 
criminal proceedings brought by EPA to enforce these requirements.

ADDRESSES: The EPA has established a docket for this action under 
Docket ID No. EPA-HQ-OW-2009-0819. All documents in the docket are 
listed on the <a href="https://www.regulations.gov">https://www.regulations.gov</a> website. Although listed in 
the index, some information listed in the index is not publicly 
available, e.g., confidential business information (CBI) or other 
information whose disclosure is restricted by statute. Certain other 
material, such as copyrighted material, is not placed on the internet 
and will be publicly available only in hard copy form. Publicly 
available docket materials are available electronically through <a href="https://www.regulations.gov">https://www.regulations.gov</a>.

FOR FURTHER INFORMATION CONTACT: For technical information, contact 
Richard Benware, Engineering and Analysis Division, telephone: 202-566-
1369; email: <a href="/cdn-cgi/l/email-protection#781a1d160f190a1d560a111b10190a1c381d0819561f170e"><span class="__cf_email__" data-cfemail="a1c3c4cfd6c0d3c48fd3c8c2c9c0d3c5e1c4d1c08fc6ced7">[email&#160;protected]</span></a>. For economic information, contact 
James Covington, Water Economics Center, telephone: 202-566-1034; 
email: <a href="/cdn-cgi/l/email-protection#95f6fae3fcfbf2e1fafbbbfff4f8f0e6d5f0e5f4bbf2fae3"><span class="__cf_email__" data-cfemail="5f3c30293631382b303171353e323a2c1f3a2f3e71383029">[email&#160;protected]</span></a>.

SUPPLEMENTARY INFORMATION: 
    Preamble Acronyms and Abbreviations. The EPA uses multiple acronyms 
and terms in this preamble. To ease the reading of this preamble and 
for reference purposes, the EPA defines terms and abbreviations used in 
appendix A (although the list of abbreviations in the appendix is not 
exhaustive).
    Supporting Documentation. The rule is supported by several 
documents, including the following:
    <bullet> Technical Development Document for the Final Supplemental 
Effluent Limitations Guidelines and Standards for the Steam Electric 
Power Generating Point Source Category (TDD), Document No. 821R24004. 
This report summarizes the technical and engineering analyses 
supporting the rule. The TDD presents the EPA's updated analyses 
supporting the revisions to FGD wastewater, BA transport water, CRL, 
and legacy wastewater. The TDD includes additional data that has been 
collected since the publication of the 2015 and 2020 rules, updates to 
the industry (e.g., retirements, updates to wastewater handling), cost 
methodologies, pollutant removal estimates, non-water quality 
environmental impacts associated with updated FGD and BA methodologies, 
and calculations for the effluent limitations. In addition to the TDD, 
the Technical Development Document for the Effluent Limitations 
Guidelines and Standards for the Steam Electric Power Generating Point 
Source Category (2015 TDD, Document No. EPA-821-R-15-007) and the 
Supplemental Technical Development Document for Revisions to the 
Effluent Limitations Guidelines and Standards for the Steam Electric 
Power Generating Point Source Category (2020 Supplemental TDD, Document 
No. EPA-821-R-20-001) provide a more complete summary of the EPA's data 
collection, description of the industry, and underlying analyses 
supporting the 2015 and 2020 rules.
    <bullet> Environmental Assessment for the Final Supplemental 
Effluent Limitations Guidelines and Standards for the Steam Electric 
Power Generating Point Source Category (EA), Document No. 821R24005. 
This report summarizes the potential environmental and human health 
impacts estimated to result from implementation of the revisions to the 
2015 and 2020 rules.
    <bullet> Benefit and Cost Analysis for the Final Supplemental 
Effluent Limitations Guidelines and Standards for the Steam Electric 
Power Generating Point Source Category (BCA), Document No. 821R24006. 
This report summarizes the societal benefits and costs estimated to 
result from implementation of the revisions to the 2015 and 2020 rules.
    <bullet> Regulatory Impact Analysis for the Final Supplemental 
Effluent Limitations Guidelines and Standards for the Steam Electric 
Power Generating Point Source Category (RIA), Document No. 821R24007. 
This report presents a profile of the steam electric power generating 
industry, a summary of estimated costs and impacts associated with the 
revisions to the 2015 and 2020 rules, and an assessment of the 
potential impacts on employment and small businesses.
    <bullet> Environmental Justice Analysis for the Final Supplemental 
Effluent Limitations Guidelines and Standards for the Steam Electric 
Power Generating Point Source Category (EJA), Document No. 821R24008. 
This report presents a profile of the communities and populations 
potentially impacted by this rule, an analysis of the distribution of 
impacts in the baseline scenario and with the revisions, and a summary 
of inputs from potentially impacted communities that the EPA met with 
prior to publishing the proposed rulemaking.
    <bullet> Docket Index for the Supplemental Effluent Limitations 
Guidelines and Standards for the Steam Electric Power Generating Point 
Source Category. This document provides a list of additional memoranda, 
references, and other information the EPA relied on for the final 
revisions to the ELGs.
    Organization of this Document. The information in this preamble is 
organized as follows:

Table of Contents

I. Executive Summary
    A. Purpose of Rule
II. Public Participation
III. General Information
    A. Does this action apply to me?
    B. What action is the EPA taking?
    C. What is EPA's authority for taking this action?
    D. What are the monetized incremental costs and benefits of this 
action?
IV. Background
    A. Clean Water Act
    B. Relevant Effluent Guidelines
    C. 2015 Steam Electric Power Generation Point Source Category 
Rule
    D. 2020 Steam Electric Reconsideration Rule and Recent 
Developments

[[Page 40199]]

    E. Other Ongoing EPA Rules Impacting the Steam Electric Sector
V. Steam Electric Power Generating Industry Description
    A. General Description of Industry
    B. Current Market Conditions and Drivers in the Electricity 
Generation Sector
    C. Control and Treatment Technologies
VI. Data Collection Since the 2020 Rule
    A. Information from the Electric Utility Industry
    B. Notices of Planned Participation
    C. Information from Technology Vendors and Engineering, 
Procurement, and Construction Firms
    D. Other Data Sources
VII. Final Regulation
    A. Description of the Options
    B. Rationale for the Final Rule
    C. Subcategories
    D. Additional Rationale for the Proposed PSES and PSNS
    E. Availability Timing of New Requirements
    F. Economic Achievability
    G. Non-Water Quality Environmental Impacts
    H. Impacts on Residential Electricity Prices and Communities 
with Environmental Justice Concerns
VIII. Costs, Economic Achievability, and Other Economic Impacts
    A. Plant-Specific and Industry Total Costs
    B. Social Costs
    C. Economic Impacts
IX. Pollutant Loadings
    A. FGD Wastewater
    B. BA Transport Water
    C. CRL
    D. Legacy Wastewater
    E. Summary of Incremental Changes of Pollutant Loadings from the 
Final Rule
X. Non-Water Quality Environmental Impacts
    A. Energy Requirements
    B. Air Pollution
    C. Solid Waste Generation and Beneficial Use
    D. Changes in Water Use
XI. Environmental Assessment
    A. Introduction
    B. Updates to the Environmental Assessment Methodology
    C. Outputs from the Environmental Assessment
XII. Benefits Analysis
    A. Categories of Benefits Analyzed
    B. Quantification and Monetization of Benefits
    C. Total Monetized Benefits
    D. Additional Benefits
XIII. Environmental Justice Impacts
    A. Literature Review
    B. Proximity Analysis
    C. Community Outreach
    D. Distribution of Risks
    E. Distribution of Benefits and Costs
XIV. Regulatory Implementation
    A. Continued Implementation of Existing Limitations and 
Standards
    B. Implementation of New Limitations and Standards
    C. Reporting and Recordkeeping Requirements
    D. Site-Specific Water Quality-Based Effluent Limitations
    E. Severability
XV. Statutory and Executive Order Reviews
    A. Executive Order 12866: Regulatory Planning and Review and 
Executive Order 14094: Modernizing Regulatory Review
    B. Paperwork Reduction Act (PRA)
    C. Regulatory Flexibility Act (RFA)
    D. Unfunded Mandates Reform Act (UMRA)
    E. Executive Order 13132: Federalism
    F. Executive Order 13175: Consultation and Coordination with 
Indian Tribal Governments
    G. Executive Order 13045: Protection of Children from 
Environmental Health Risks and Safety Risks
    H. Executive Order 13211: Actions That Significantly Affect 
Energy Supply, Distribution, or Use
    I. National Technology Transfer and Advancement Act
    J. Executive Order 12898: Federal Actions to Address 
Environmental Justice in Minority Populations and Low-Income 
Populations and Executive Order 14096: Revitalizing Our Nation's 
Commitment to Environmental Justice for All
    K. Congressional Review Act (CRA)
Appendix A to the Preamble: Definitions, Acronyms, and Abbreviations 
Used in This Preamble

I. Executive Summary

A. Purpose of Rule

    The EPA is promulgating this final supplemental rule to update 
requirements that apply to wastewater discharges from steam electric 
power plants, particularly coal-fired power plants. In 2015, the EPA 
set the first Federal limitations on the levels of toxic metals in 
several of the largest sources of wastewater that can be discharged 
from power plants after last updating these regulations in 1982 (80 
Federal Register (FR) 67838; November 3, 2015) (hereinafter the ``2015 
rule''). On an annual basis, the 2015 rule was projected to reduce the 
amount of toxic metals, nutrients, and other pollutants that steam 
electric power plants are allowed to discharge by 1.4 billion pounds 
and reduce water withdrawal by 57 billion gallons. This rule was 
reconsidered in 2020 and modified in part due to changing dynamics in 
the power sector (85 FR 64650; October 13, 2020) (hereinafter the 
``2020 rule''). Steam electric power plants are increasingly aging and 
less competitive sources of electric power in many portions of the 
United States.
    Steam electric power plants, coal-fired power plants in particular, 
are subject to several environmental regulations designed to control 
(and in some cases eliminate) air, water, and land pollution over time. 
This rule, the Steam Electric Power Generating Effluent Limitations 
Guidelines and Standards--or steam electric ELGs--applies to the subset 
of the electric power industry where ``generation of electricity is the 
predominant source of revenue or principal reason for operation, and 
whose generation of electricity results primarily from a process 
utilizing fossil-type fuel (e.g., coal, oil, gas), fuel derived from 
fossil fuel (e.g., petroleum coke, synthesis gas), or nuclear fuel in 
conjunction with a thermal cycle employing the steam-water system as 
the thermodynamic medium'' (40 Code of Federal Regulations (CFR) 
423.10). The 2015 rule addressed discharges from FGD wastewater, fly 
ash (FA) transport water, BA transport water, flue gas mercury control 
(FGMC) wastewater, gasification wastewater, CRL, legacy wastewater, and 
nonchemical metal cleaning wastes. The 2020 rule modified the 2015 
requirements for FGD wastewater and BA transport water for existing 
sources only. The 2015 limitations for CRL from existing sources and 
legacy wastewater were vacated by the United States (U.S.) Court of 
Appeals for the Fifth Circuit in Southwestern Electric Power Co., et 
al. v. EPA, 920 F.3d 999 (5th Cir. 2019).
    In the years since the EPA revised the steam electric ELGs in 2015 
and 2020, new information has become available, which the EPA 
considered in finalizing this supplemental rule. For example, pilot 
testing and full-scale use of various, better performing treatment 
technologies have continued to develop, along with more data and 
information about their performance. The final supplemental rule 
updates requirements for discharges from two wastestreams addressed in 
the 2020 rule: BA transport water and FGD wastewater at existing 
sources. The final supplemental rule also replaces the court-vacated 
limitations for CRL (except for CRL discharges in one subcategory) and 
a subcategory of legacy wastewater. Finally, for the remaining CRL and 
legacy wastewaters, this rule finalizes a site-specific approach to 
developing technology-based limitations based on the permitting 
authorities' best professional judgment (BPJ), an option discussed by 
the Court in Southwestern Electric Power Co. v. EPA.

B. Summary of Final Rule

    For existing sources that discharge directly to surface water, with 
the exception of the subcategories discussed below, the final rule 
establishes the following effluent limitations based on Best Available 
Technology Economically Achievable (BAT):
    <bullet> A zero-discharge limitation for all pollutants in FGD 
wastewater, BA transport water, and CRL.

[[Page 40200]]

    <bullet> Numeric (nonzero) discharge limitations for mercury and 
arsenic in unmanaged CRL \1\ and for legacy wastewater discharged from 
surface impoundments during the closure process if those surface 
impoundments have not commenced closure under the Coal Combustion 
Residuals (CCR) regulations as of the effective date of this rule.
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    \1\ As discussed in section VII.C.5 of this document, the EPA is 
defining unmanaged CRL in this rule to mean CRL which either: (1) 
the permitting authority determines are the functional equivalent of 
a direct discharge to waters of the United States (WOTUS) through 
groundwater or (2) CRL that has leached from a waste management unit 
into the subsurface and mixed with groundwater prior to being 
captured and pumped to the surface for discharge directly to a 
WOTUS.
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    The final rule eliminates the separate, 2020 rule's less stringent 
BAT requirements for two subcategories: high-flow facilities and low-
utilization electric generating units (LUEGUs), except to the extent 
they apply to one new permanent cessation of coal combustion 
subcategory. The final rule leaves in place the existing subcategories 
for oil-fired and small (50 megawatts (MW) or less) electric generating 
units (EGUs) established in the 2015 rule. The final rule also leaves 
in place the existing subcategory for EGUs permanently ceasing the 
combustion of coal by 2028, which was established in the 2020 rule and 
amended in a 2023 direct final rule by extending the date for filing a 
Notice of Planned Participation (NOPP). See 88 FR 18440 (March 29, 
2023). Lastly, the final rule creates a new subcategory for EGUs 
permanently ceasing coal combustion by 2034. For both the existing and 
new subcategories referenced immediately above, the EPA is finalizing 
additional reporting and recordkeeping requirements and zero-discharge 
limitations applicable after EGUs cease coal combustion, as well as 
procedural requirements for affected facilities to demonstrate 
permanent cessation of coal combustion or that permanent retirement 
will occur.
    As stated above, the rule eliminates the 2020 rule subcategories 
for high flow and low utilization, except to the extent they apply to 
EGUs in the new permanent cessation of coal combustion by 2034 
subcategory. The elimination of the 2020 rule's subcategories will 
affect the one known high-flow facility (the Tennessee Valley Authority 
(TVA) Cumberland Fossil Plant) that has indicated it is planning to 
close and the two known facilities with LUEGUs (GSP Merrimack LLC and 
Indiana Municipal Power Agency (IMPA) Whitewater Valley Station), one 
of which is also expected to close. For EGUs ceasing coal combustion by 
2034, the final rule retains the 2020 rule requirements for FGD 
wastewater and BA transport water and the pre-2015 BPJ-based BAT 
requirements for CRL rather than requiring the new, more stringent 
zero-discharge requirements for these wastestreams. After the permanent 
cessation of coal combustion, however, EGUs in this subcategory must 
meet limitations on arsenic and mercury based on chemical precipitation 
for CRL.
    Where BAT limitations in this final rule are more stringent than 
previously established Best Practicable Control Technology Currently 
Available (BPT) and BAT limitations, any new limitations for direct 
dischargers do not apply until a date determined by the permitting 
authority that is as soon as possible on or after July 8, 2024, but no 
later than December 31, 2029.
    For indirect discharges (i.e., discharges to publicly owned 
treatment works (POTWs)), the final rule establishes pretreatment 
standards for existing sources that are the same as the BAT limitations 
except where limitations are for total suspended solids (TSS), a 
pollutant that does not pass through POTWs. Pretreatment standards are 
directly enforceable and apply May 9, 2027.
    While the EPA is not aware of any planned new sources that would be 
subject to the requirements of this final supplement rule, this action 
sets new source performance standards and pretreatment standards for 
discharges of CRL from new sources that are equivalent to the new BAT 
limitations--namely, zero discharge.

C. Summary of Costs and Benefits

    The EPA estimates that the final rule will cost $536 million to 
$1.1 billion per year in social costs and result in $3.2 billion per 
year in monetized benefits using a 2 percent discount rate.\2\
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    \2\ The EPA estimated the annualized value of future benefits 
and costs using a discount rate of 2 percent, following current 
Office of Management and Budget (OMB) guidance in Circular A-4 (OMB, 
2023). In appendix B of the BCA, the EPA also provides results of 
analyses performed using 3 percent and 7 percent discount rates to 
allow comparison of the final rule costs and benefits with those 
estimated at proposal, which followed the guidance applicable at the 
time the prior analysis was conducted (OMB, 2003).
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    The EPA's analysis reflects the Agency's understanding of the 
actions steam electric power plants are expected to take to meet the 
limitations and standards in the final rule, including the 
implementation of additional treatment technologies to reduce pollutant 
discharges. The EPA based its analysis on a modeled baseline that 
reflects the full implementation of the 2020 rule, the expected effects 
of announced retirements and fuel conversions, and the anticipated 
impacts of relevant final rules affecting the power sector. Not all 
costs and benefits can be fully quantified and monetized. While some 
health benefits and willingness to pay (WTP) for water quality 
improvements have been quantified and monetized, those estimates may 
not fully capture all important water-quality-related benefits. 
Furthermore, the EPA anticipates the final rule would generate 
important additional benefits that the Agency was only able to analyze 
qualitatively (e.g., improved habitat conditions for plants, 
invertebrates, fish, amphibians, and the wildlife that prey on aquatic 
organisms).
    For additional information on costs and benefits, see sections VIII 
and XII of this preamble, respectively.

II. Public Participation

    During the 60-day public comment period on the 2023 proposed 
supplemental rule (88 FR 18824, March 29, 2023) (from March 29, 2023, 
to May 30, 2023), the EPA received more than 22,000 public comment 
submissions from private citizens, industry representatives, technology 
vendors, government entities, environmental groups, and trade 
associations. The EPA also hosted two online public hearings during the 
public comment period--one on April 20, 2023, and one on April 25, 
2023. These hearings had a combined total of 196 attendees, 46 of whom 
registered to provide comment on the proposed rule. Available documents 
from each public hearing include the presentations given by the EPA and 
two transcripts (document control number (DCN) SE10469, DCN SE10469A1, 
DCN SE10470 and DCN SE10470A1).

III. General Information

A. Does this action apply to me?

    Entities potentially regulated by any final rule following this 
action include the following:

[[Page 40201]]



------------------------------------------------------------------------
                                                          North American
                                                             Industry
            Category               Example of regulated   Classification
                                          entity          System (NAICS)
                                                               Code
------------------------------------------------------------------------
Industry.......................  Electric Power                    22111
                                  Generation Facilities--
                                  Electric Power
                                  Generation.
                                 Electric Power                   221112
                                  Generation Facilities--
                                  Fossil Fuel Electric
                                  Power Generation.
------------------------------------------------------------------------

    This section is not intended to be exhaustive, but rather provides 
a guide regarding entities likely to be regulated by this final rule. 
Other types of entities that do not meet the above criteria could also 
be regulated. To determine whether a specific facility is regulated by 
this final rule, carefully examine the applicability criteria listed in 
40 CFR 423.10 and the definitions in 40 CFR 423.11. If you still have 
questions regarding the applicability of this final rule to a 
particular entity, consult the person listed for technical information 
in the preceding FOR FURTHER INFORMATION CONTACT section.

B. What action is the EPA taking?

    The Agency is revising certain BAT ELGs for existing sources in the 
steam electric power generating point source category that apply to FGD 
wastewater, BA transport water, CRL, and legacy wastewater.

C. What is EPA's authority for taking this action?

    The EPA is finalizing this rule under the authority of sections 
301, 304, 306, 307, 308, 402, and 501 of the CWA, 33 United States Code 
(U.S.C.) 1311, 1314, 1316, 1317, 1318, 1342, and 1361.

D. What are the monetized incremental costs and benefits of this 
action?

    This final rule is estimated to have social costs of $536 million 
to $1.1 billion per year and result in $3.2 billion in benefits using a 
two percent discount rate.\3\
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    \3\ See note 2.
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IV. Background

A. Clean Water Act

    Congress passed the Federal Water Pollution Control Act Amendments 
of 1972, also known as the CWA, to ``restore and maintain the chemical, 
physical, and biological integrity of the Nation's waters.'' 33 U.S.C. 
1251(a). The CWA establishes a comprehensive program for protecting our 
nation's waters. Among its core provisions, the CWA prohibits the 
discharge of pollutants from a point source to waters of the United 
States (WOTUS), except as authorized under the CWA. Under section 402 
of the CWA, discharges may be authorized through a National Pollutant 
Discharge Elimination System (NPDES) permit. The CWA also authorizes 
the EPA to establish nationally applicable, technology-based ELGs for 
discharges from different categories of point sources, such as 
industrial, commercial, and public sources.
    Furthermore, the CWA authorizes the EPA to promulgate nationally 
applicable pretreatment standards that restrict pollutant discharges 
from facilities that discharge wastewater to WOTUS indirectly through 
sewers flowing to POTWs, as outlined in CWA sections 307(b) and (c), 33 
U.S.C. 1317(b) and (c). The EPA establishes national pretreatment 
standards for those pollutants in wastewater from indirect dischargers 
that may pass through, interfere with, or are otherwise incompatible 
with POTW operations. Pretreatment standards are designed to ensure 
that wastewaters from direct and indirect industrial dischargers are 
subject to similar levels of treatment. See CWA section 301(b), 33 
U.S.C. 1311(b); Chem. Mfrs. Ass'n v. NRDC, 470 U.S. 116, 119 (1985); 
Envtl. Def. Fund v. Costle, 636 F.2d 1229, 1235 n.15 (D.C. Cir. 1980); 
Reynolds Metals Co. v. EPA, 760 F.2d 549, 553 (4th Cir. 1985); Chem. 
Mfrs. Ass'n v. EPA, 870 F.2d 177, 249 (5th Cir. 1989). In addition, 
POTWs are required to implement local treatment limitations applicable 
to their industrial indirect dischargers to satisfy any local 
requirements. See 40 CFR 403.5.
    Direct dischargers (i.e., those discharging directly from a point 
source to surface waters rather than through POTWs) must comply with 
effluent limitations in NPDES permits. Discharges that flow through 
groundwater before reaching surface waters must also comply with 
effluent limitations in NPDES permits if those discharges are the 
``functional equivalent'' of a direct discharge from a point source to 
a WOTUS. County of Maui v. Hawaii Wildlife Fund, 590 U.S. 165 (2020). 
Indirect dischargers, who discharge through POTWs, must comply with 
pretreatment standards. Technology-based effluent limitations in NPDES 
permits are derived from ELGs (CWA sections 301 and 304, 33 U.S.C. 1311 
and 1314) and new source performance standards (CWA section 306, 33 
U.S.C. 1316) promulgated by the EPA, or based on BPJ where the EPA has 
not promulgated an applicable effluent guideline or new source 
performance standard. CWA section 402(a)(1)(B), 33 U.S.C. 
1342(a)(1)(B); 40 CFR 125.3(c). Additional limitations based on water 
quality standards are also required to be included in the permit in 
certain circumstances. CWA section 301(b)(1)(C), 33 U.S.C. 
1311(b)(1)(C); 40 CFR 122.44(d). The EPA establishes ELGs by regulation 
for categories of point source dischargers, and these ELGs are based on 
the degree of control that can be achieved using various levels of 
pollution control technology.
    The EPA promulgates national ELGs for major industrial categories 
for three classes of pollutants: (1) conventional pollutants (i.e., 
TSS, oil and grease, biochemical oxygen demand (BOD<INF>5</INF>), fecal 
coliform, and pH), as outlined in CWA section 304(a)(4) and 40 CFR 
401.16; (2) toxic pollutants (e.g., toxic metals such as arsenic, 
mercury, selenium, and chromium; toxic organic pollutants such as 
benzene, benzo-a-pyrene, phenol, and naphthalene), as outlined in 
section 307(a) of the Act, 40 CFR 401.15 and 40 CFR part 423, appendix 
A; and (3) nonconventional pollutants, which are those pollutants that 
are not categorized as conventional or toxic (e.g., ammonia-N, 
phosphorus, total dissolved solids (TDS)).

B. Relevant Effluent Guidelines

    The EPA develops effluent guidelines that are technology-based 
regulations for a category of dischargers. The EPA bases these 
regulations on the performance of control and treatment technologies. 
The legislative history of CWA section 304(b), which is the heart of 
the effluent guidelines program, describes the need to press toward 
higher levels of control through research and development of new 
processes, modifications, replacement of obsolete plants and processes, 
and other improvements in technology, while also accounting for the 
cost of controls. Legislative history and case law support that the EPA 
need

[[Page 40202]]

not consider water quality impacts on individual water bodies as the 
guidelines are developed; see Statement of Senator Muskie (October 4, 
1972), reprinted in Legislative History of the Water Pollution Control 
Act Amendments of 1972, at 170. (U.S. Senate, Committee on Public 
Works, Serial No. 93-1, January 1973); see also Southwestern Elec. 
Power Co. v. EPA, 920 F.3d at 1005 (``The Administrator must require 
industry, regardless of a discharge's effect on water quality, to 
employ defined levels of technology to meet effluent limitations.'') 
(citations and internal quotations omitted).
    There are many technology-based effluent limitations (TBELs) that 
may apply to a discharger under the CWA: four types of standards 
applicable to direct dischargers, two types of standards applicable to 
indirect dischargers, and a default site-specific approach. The TBELs 
relevant to this rulemaking are described in detail below.
1. Best Practicable Control Technology Currently Available
    Traditionally, the EPA defines Best Practicable Control Technology 
(BPT) effluent limitations based on the average of the best 
performances of facilities within the industry, grouped to reflect 
various ages, sizes, processes, or other common characteristics. See 
Southwestern Elec. Power Co. v. EPA, 920 F3d at 1025. The EPA may 
promulgate BPT effluent limitations for conventional, toxic, and 
nonconventional pollutants. In specifying BPT, the EPA looks at several 
factors. The EPA considers the cost of achieving effluent reductions in 
relation to the effluent reduction benefits. The Agency also considers 
the age of equipment and facilities, the processes employed, 
engineering aspects of the control technologies, any required process 
changes, non-water quality environmental impacts (including energy 
requirements), and such other factors as the Administrator deems 
appropriate. CWA section 304(b)(1)(B), 33 U.S.C. 1314(b)(1)(B). If, 
however, existing performance is uniformly inadequate, the EPA may 
establish limitations based on higher levels of control than what is 
currently in place in an industrial category, when based on an agency 
determination that the technology is available in another category or 
subcategory and can be practicably applied.
2. Best Available Technology Economically Achievable
    BAT represents the second level of stringency for controlling 
direct discharge of toxic and nonconventional pollutants. Courts have 
referred to this as the CWA's ``gold standard'' for controlling 
discharges from existing sources. Southwestern Elec. Power Co. v. EPA, 
920 F.3d at 1003; see also Kennecott v. EPA, 780 F.2d 445, 448 (4th 
Cir. 1985) (``The BAT standard reflects the intention of Congress to 
use the latest scientific research and technology in setting effluent 
limits, pushing industries toward the goal of zero discharge as quickly 
as possible.''). In general, BAT represents the best available, 
economically achievable performance of facilities in the industrial 
subcategory or category. As the statutory phrase intends, the EPA 
considers the technological availability and the economic achievability 
when determining what level of control represents BAT. CWA section 
301(b)(2)(A), 33 U.S.C. 1311(b)(2)(A). Other statutory factors that the 
EPA considers in assessing BAT are the cost of achieving BAT effluent 
reductions, the age of equipment and facilities involved, the process 
employed, potential process changes, and non-water quality 
environmental impacts, including energy requirements, and such other 
factors as the Administrator deems appropriate. CWA section 
304(b)(2)(B), 33 U.S.C. 1314(b)(2)(B). The Agency retains considerable 
discretion in assigning the weight to be accorded these factors. 
Weyerhaeuser Co. v. Costle, 590 F.2d 1011, 1045 (D.C. Cir. 1978). The 
EPA usually determines economic achievability based on the effect the 
cost of compliance with BAT limitations has on overall industry and 
subcategory financial conditions.
    BAT reflects the highest performance in the industry and may 
reflect a higher level of performance than is currently being achieved 
based on technology transferred from a different subcategory or 
category, bench scale or pilot plant studies, or foreign plants. 
Southwestern Elec. Power Co. v. EPA, 920 F.3d at 1006; Chem. Mfrs. 
Ass'n v. EPA, 870 F.2d at 226; Nat. Res. Def. Council v. EPA, 863 F.2d 
1420, 1426 (9th Cir. 1988); American Paper Inst. v. Train, 543 F.2d 
328, 353 (D.C. Cir. 1976); American Frozen Food Inst. v. Train, 539 
F.2d 107, 132 (D.C. Cir. 1976). BAT may be based upon process changes 
or internal controls, even when these technologies are not common 
industry practice. See American Frozen Foods, 539 F.2d at 132, 140; 
Reynolds Metals Co. v. EPA, 760 F.2d at 562; California & Hawaiian 
Sugar Co. v. EPA, 553 F.2d 280, 285-88 (2nd Cir. 1977). ``In setting 
BAT, EPA uses not the average plant, but the optimally operating plant, 
the pilot plant which acts as a beacon to show what is possible.'' 
Kennecott v. EPA, 780 F.2d at 448 (citing A Legislative History of the 
Water Pollution Control Act Amendments of 1972, 93d Cong., 1st Sess. 
(Comm. Print 1973), at 798). As recently reiterated by the U.S. Court 
of Appeals for the Fifth Circuit, ``Under our precedent, a 
technological process can be deemed available for BAT purposes even if 
it is not in use at all, or if it is used in unrelated industries. Such 
an outcome is consistent with Congress'[s] intent to push pollution 
control technology.'' Southwestern Elec. Power Co. v. EPA, 920 F.3d at 
1031 (citation and internal quotations omitted); see also Am. Petroleum 
Inst. v. EPA, 858 F.2d 261, 265 (5th Cir. 1988).
3. New Source Performance Standards
    New Source Performance Standards (NSPS) reflect effluent reductions 
that are achievable based on the Best Available Demonstrated Control 
Technology (BADCT). Owners of new facilities have the opportunity to 
install the best and most efficient production processes and wastewater 
treatment technologies. As a result, NSPS should represent the most 
stringent controls attainable through the application of the BADCT for 
all pollutants (that is, conventional, nonconventional, and toxic 
pollutants). In establishing NSPS, the EPA is directed to take into 
consideration the cost of achieving the effluent reduction and any non-
water quality environmental impacts and energy requirements. CWA 
section 306(b)(1)(B), 33 U.S.C. 1316(b)(1)(B).
4. Pretreatment Standards for Existing Sources
    Section 307(b), 33 U.S.C. 1317(b), of the CWA calls for the EPA to 
issue pretreatment standards for discharges of pollutants to POTWs. 
Pretreatment standards for existing sources (PSES) are designed to 
prevent the discharge of pollutants that pass through, interfere with, 
or are otherwise incompatible with the operation of POTWs. Categorical 
pretreatment standards are technology-based and are analogous to BPT 
and BAT ELGs; thus, the Agency typically considers the same factors in 
promulgating PSES as it considers in promulgating BAT. The General 
Pretreatment Regulations, which set forth the framework for the 
implementation of categorical pretreatment standards, are found at 40 
CFR part 403. These regulations establish pretreatment standards that 
apply to all non-domestic dischargers. See 52 FR 1586 (January 14, 
1987).

[[Page 40203]]

5. Pretreatment Standards for New Sources
    Section 307(c), 33 U.S.C. 1317(c), of the Act calls for the EPA to 
promulgate Pretreatment Standards for New Sources (PSNS). Such 
pretreatment standards must prevent the discharge of any pollutant into 
a POTW that may interfere with, pass through, or may otherwise be 
incompatible with the POTW. The EPA promulgates PSNS based on BADCT for 
new sources. New indirect dischargers have the opportunity to 
incorporate into their facilities the best available demonstrated 
technologies. The Agency typically considers the same factors in 
promulgating PSNS as it considers in promulgating NSPS.
6. Best Professional Judgment
    CWA section 301 and its implementing regulation at 40 CFR 125.3(a) 
indicate that technology-based treatment requirements under section 
301(b) of the CWA represent the minimum level of control that must be 
imposed in an NPDES permit. Where EPA-promulgated effluent guidelines 
are not applicable to a non-POTW discharge, or where such EPA-
promulgated guidelines have been vacated by a court, such treatment 
requirements are established on a case-by-case basis using the permit 
writer's BPJ. Case-by-case TBELs are developed pursuant to CWA section 
402(a)(1), which authorizes the EPA Administrator to issue a permit 
that will meet either: all applicable requirements developed under the 
authority of other sections of the CWA (e.g., technology-based 
treatment standards, water quality standards, ocean discharge criteria) 
or, before taking the necessary implementing actions related to those 
requirements, ``such conditions as the Administrator determines are 
necessary to carry out the provisions of this Act.'' The regulation at 
40 CFR 125.3(c)(2) cites this section of the CWA, stating that 
technology-based treatment requirements may be imposed in a permit ``on 
a case-by-case basis under section 402(a)(1) of the Act, to the extent 
that EPA-promulgated effluent limitations are inapplicable.'' 
Furthermore, Sec.  125.3(c)(3) indicates, ``[w]here promulgated 
effluent limitations guidelines only apply to certain aspects of the 
discharger's operation, or to certain pollutants, other aspects or 
activities are subject to regulation on a case-by-case basis in order 
to carry out the provisions of the Act.'' The factors considered by the 
permit writer are the same as those that the EPA considers in 
establishing technology-based effluent limitations. See 40 CFR 
125.3(d)(1) through (3).

C. 2015 Steam Electric Power Generation Point Source Category Rule

1. 2015 Rule Requirements
    On November 3, 2015, the EPA promulgated a rule revising the 
regulations for the Steam Electric Power Generating point source 
category, 40 CFR part 423. 80 FR 67838, November 3, 2015. The rule set 
the first Federal limitations on the levels of toxic pollutants (e.g., 
arsenic) and nutrients (e.g., nitrogen) that can be discharged in the 
steam electric power generating industry's largest sources of 
wastewater, based on technology improvements in the steam electric 
power industry over the preceding three decades. Before the 2015 rule, 
regulations for the industry were last updated in 1982 and, for the 
industry's wastestreams with the largest pollutant loadings, contained 
only limitations on TSS and oil and grease.
    Over those 30 years, new technologies for generating electric power 
and the widespread implementation of air pollution controls had altered 
existing wastewater streams or created new wastewater streams at many 
steam electric facilities, particularly coal-fired facilities. 
Discharges of these wastestreams include arsenic, lead, mercury, 
selenium, chromium, and cadmium. Once in the environment, many of these 
toxic pollutants can remain there for years and continue to cause 
adverse impacts.
    The 2015 rule addressed effluent limitations and standards for 
multiple wastestreams generated by new and existing steam electric 
facilities: BA transport water, CRL, FGD wastewater, FGMC wastewater, 
FA transport water, gasification wastewater, and legacy wastewater.\4\ 
The rule required most steam electric facilities to comply with the 
effluent limitations ``as soon as possible'' after November 1, 2018, 
and no later than December 31, 2023. NPDES permitting authorities 
established particular applicability date(s) within that range for each 
facility (except for indirect dischargers) at the time they reissued 
the facility's NPDES permit.
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    \4\ These wastestreams are defined in appendix A to this 
preamble.
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    The 2015 rule was projected to reduce the amount of metals the CWA 
defines as toxic pollutants, nutrients, and other pollutants that steam 
electric facilities are allowed to discharge by 1.4 billion pounds per 
year and reduce water withdrawal by 57 billion gallons. At the time, 
the EPA estimated annual compliance costs for the final rule to be $480 
million (in 2013 dollars, discounted at 3 percent) and estimated annual 
benefits associated with the rule to be $451 to $566 million (in 2013 
dollars, discounted at 3 percent).
2. Vacatur of Limitations Applicable to CRL and Legacy Wastewater
    Seven petitions for review of the 2015 rule were filed in various 
circuit courts by the electric utility industry, environmental groups, 
and drinking water utilities. These petitions were consolidated in the 
U.S. Court of Appeals for the Fifth Circuit, Southwestern Electric 
Power Co. v. EPA, Case No. 15-60821 (5th Cir.). On March 24, 2017, the 
Utility Water Act Group submitted to the EPA an administrative petition 
for reconsideration of the 2015 rule. On April 5, 2017, the Small 
Business Administration (SBA) submitted an administrative petition for 
reconsideration of the 2015 rule.
    On August 11, 2017, then EPA Administrator Scott Pruitt announced 
his decision to conduct a rulemaking to potentially revise the new, 
more stringent BAT effluent limitations and pretreatment standards for 
existing sources in the 2015 rule that apply to FGD wastewater and BA 
transport water. The Fifth Circuit subsequently granted the EPA's 
request to sever and hold in abeyance petitioners' claims related to 
those limitations and standards, and those claims are still in 
abeyance. With respect to the remaining claims related to limitations 
applicable to legacy wastewater and CRL, the Fifth Circuit issued a 
decision on April 12, 2019, vacating those limitations as arbitrary and 
capricious under the Administrative Procedure Act and unlawful under 
the CWA, respectively. Southwestern Elec. Power Co. v. EPA, 920 F.3d 
999. In particular, the Court rejected the EPA's BAT limitations for 
each wastestream set equal to previously promulgated BPT limitations 
based on surface impoundments. In the case of legacy wastewater, the 
Court held that the EPA's record on surface impoundments did not 
support BAT limitations based on surface impoundments. Id. at 1015. In 
the case of CRL, the Court held that the EPA's setting of BAT 
limitations equal to BPT limitations was an impermissible conflation of 
the two standards, which are supposed to be progressively more 
stringent, and that the EPA's rationale was not authorized by the 
statutory factors for determining BAT. Id. at 1026. After the Court's 
decision, the EPA announced its plans to address the vacated 
limitations in a later action after the 2020 rule.

[[Page 40204]]

    In September 2017 (82 FR 43494), using notice-and-comment 
procedures, the EPA finalized a rule postponing the earliest compliance 
dates for the more stringent BAT effluent limitations and PSES for FGD 
wastewater and BA transport water in the 2015 rule, from November 1, 
2018, to November 1, 2020 (``postponement rule''). The EPA also 
withdrew a prior action it had taken to stay parts of the 2015 rule 
pursuant to section 705 of the Administrative Procedure Act, 5 U.S.C. 
705. The postponement rule received multiple legal challenges, but the 
courts did not sustain any of them.\5\
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    \5\ See Center for Biological Diversity v. EPA, No. 18-cv-00050 
(D. Ariz. filed January 20, 2018); see also Clean Water Action. v. 
EPA, No. 18-60079 (5th Cir.). On October 29, 2018, the District of 
Arizona case was dismissed upon the EPA's motion to dismiss for lack 
of jurisdiction, and on August 28, 2019, the Fifth Circuit denied 
the petition for review of the postponement rule.
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D. 2020 Steam Electric Reconsideration Rule and Recent Developments

1. 2020 Rule Requirements
    On October 13, 2020, the EPA promulgated the Steam Electric 
Reconsideration Rule (85 FR 64650). The 2020 rule revised requirements 
for FGD wastewater and BA transport water applicable to existing 
sources. Specifically, the 2020 rule made four changes to the 2015 
rule. First, the rule changed the technology basis for control of FGD 
wastewater and BA transport water. For FGD wastewater, the technology 
basis was changed from chemical precipitation plus high-hydraulic-
residence-time biological reduction to chemical precipitation plus low-
hydraulic-residence-time biological reduction. This change in the 
technology basis resulted in less stringent selenium limitations but 
more stringent mercury and nitrogen limitations. For BA transport 
water, the technology basis was changed from dry-handling or closed-
loop systems to high-recycle-rate systems, allowing for a site-specific 
purge not to exceed 10 percent of the BA transport system's volume. 
This change in technology resulted in less stringent limitations for 
all pollutants in BA transport water. Second, the 2020 rule revised the 
technology basis for the voluntary incentives program (VIP) for FGD 
wastewater from vapor compression evaporation to chemical precipitation 
plus membrane filtration. This change in the technology basis resulted 
in less stringent limitations for most pollutants but added new 
limitations for bromide and nitrogen. Third, the 2020 rule created 
three new subcategories for high-flow facilities, LUEGUs, and EGUs 
permanently ceasing coal combustion by 2028. These subcategories were 
subject to less stringent limitations: high-flow facilities were 
subject to FGD wastewater limitations based on chemical precipitation; 
LUEGUs were subject to FGD wastewater limitations based on chemical 
precipitation and BA transport water limitations based on surface 
impoundments and a best management practice (BMP) plan; and EGUs 
permanently ceasing coal combustion by 2028 were subject to FGD 
wastewater and BA transport water limitations based on surface 
impoundments. Finally, the 2020 rule required most steam electric 
facilities to comply with the revised effluent limitations ``as soon as 
possible'' after October 13, 2021, and no later than December 31, 
2025.\6\ NPDES permitting authorities established the particular 
applicability date(s) of the new limitations within that range for each 
facility (except for indirect dischargers) at the time they reissued 
the facility's NPDES permit.
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    \6\ The 2015 rule's VIP compliance date was revised to December 
31, 2028, in the 2020 rule.
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2. Fourth Circuit Court of Appeals Litigation
    Two petitions for review of the 2020 rule were timely filed by 
environmental group petitioners and consolidated in the U.S. Court of 
Appeals for the Fourth Circuit on November 19, 2020. Appalachian 
Voices, et al. v. EPA, No. 20-2187 (4th Cir.). An industry trade group 
and certain energy companies moved to intervene in the litigation, 
which the Court granted on December 3, 2020. On April 8, 2022, the 
Court granted the EPA's motion and placed the case into abeyance 
pending the completion of the current rulemaking.
3. Executive Order 13990 and Announcement of Supplemental Rule
    On January 20, 2021, President Biden issued Executive Order 13990: 
Protecting Public Health and the Environment and Restoring Science to 
Tackle the Climate Crisis. 86 FR 7037. Executive Order 13990 directed 
Federal agencies to immediately review and, as appropriate and 
consistent with applicable law, take action to address the promulgation 
of Federal regulations and other actions during the previous four years 
that conflict with the national objectives of protecting public health 
and the environment.
    On July 26, 2021, the EPA announced a new rulemaking to strengthen 
certain wastewater pollution discharge limitations for coal-fired power 
plants that use steam to generate electricity (86 FR 41801, August 3, 
2021). The EPA later clarified that, as part of its new rulemaking, it 
would be reconsidering all aspects of the 2020 rule. The EPA undertook 
an evidence-based, science-based review of the 2020 rule under 
Executive Order 13990, finding that there are opportunities to 
strengthen certain wastewater pollution discharge limitations. For 
example, the EPA discussed how treatment systems using membranes have 
advanced since the 2020 rule's promulgation and continue to rapidly 
advance as an effective option for treating a wide variety of 
industrial pollution, including pollution from steam electric power 
plants. In the announcement, the EPA also clarified that, until a new 
rule is promulgated, part 423 will continue to be implemented and 
enforced to achieve needed pollutant reductions.\7\
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    \7\ This includes both the 2020 rule and portions of the 2015 
rule which were not revised or vacated.
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4. Preliminary Effluent Guidelines Plan 15
    In September 2021, the EPA issued Preliminary Effluent Guidelines 
Program Plan 15.\8\ This document discussed the annual review of ELGs, 
rulemakings for new and existing industrial point source categories, 
and any new or existing sources receiving further analyses. Here, in 
the context of the EPA's ongoing steam electric ELG rulemaking, EPA 
noted relevant wastestreams including pointing out that the 2015 rule 
limitations for CRL and legacy wastewater had been vacated and remanded 
to the Agency. For further discussion of the vacatur and remand of the 
2015 limitations applicable to CRL and legacy wastewater, see section 
IV.D of this preamble.
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    \8\ Available online at: <a href="http://www.epa.gov/system/files/documents/2021-09/ow-prelim-elg-plan-15_508.pdf">www.epa.gov/system/files/documents/2021-09/ow-prelim-elg-plan-15_508.pdf</a>.
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E. Other Ongoing EPA Rules Impacting the Steam Electric Sector

    The EPA has recently proposed or finalized several other rules to 
protect the nation's air, land, and water from pollution resulting from 
coal-fired power plants. The EPA has primarily considered these other 
rules to support this final rulemaking in two ways. First, when 
appropriate, the EPA has included the impacts of final rules in the 
baseline of its analyses. Second, the EPA has designed this final rule 
to harmonize compliance dates, subcategories, and other aspects of 
these rules to the extent possible and appropriate under different 
statutory schemes. The following sections summarize the solid waste and

[[Page 40205]]

air rules that are most directly relevant to the electric power sector.
1. Coal Combustion Residuals Disposal Rule
    On April 17, 2015, the EPA promulgated the Disposal of Coal 
Combustion Residuals from Electric Utilities final rule (2015 CCR rule) 
(80 FR 21302). This rule finalized national regulations to provide a 
comprehensive set of requirements for the safe disposal of CCR, 
commonly referred to as coal ash, from steam electric power plants. The 
final 2015 CCR rule was the culmination of extensive study on the 
effects of coal ash on the environment and public health. The rule 
established technical requirements for CCR landfills and surface 
impoundments under subtitle D of the Resource Conservation and Recovery 
Act (RCRA), the Nation's primary law for regulating solid waste.
    These regulations established requirements for the management and 
disposal of coal ash, including requirements designed to prevent 
leaking of contaminants into groundwater, blowing of contaminants into 
the air as dust, and the catastrophic failure of coal ash surface 
impoundments. The 2015 CCR rule also set recordkeeping and reporting 
requirements, as well as requirements for each plant to establish and 
post specific information to a publicly accessible website. The rule 
also established requirements to distinguish the beneficial use of CCR 
from disposal.
    As a result of the D.C. Circuit Court decisions in Utility Solid 
Waste Activities Group v. EPA, 901 F.3d 414 (D.C. Cir. 2018) (``USWAG 
decision'' or ``USWAG''), and Waterkeeper Alliance Inc. et al. v. EPA, 
No. 18-1289 (D.C. Cir. filed March 13, 2019), the Administrator signed 
two rules: A Holistic Approach to Closure Part A: Deadline to Initiate 
Closure and Enhancing Public Access to Information (CCR Part A rule) 
(85 FR 53516, August 28, 2020) on July 29, 2020, and A Holistic 
Approach to Closure Part B: Alternate Liner Demonstration (CCR Part B 
rule) (85 FR 72506, December 14, 2020) on October 15, 2020. The EPA 
finalized five amendments to the 2015 CCR rule which are relevant to 
the management of the wastewaters covered by this ELG because these 
wastewaters have historically been co-managed with CCR in the same 
surface impoundments. First, the CCR Part A rule established a new 
deadline of April 11, 2021, for all unlined surface impoundments in 
which CCR are managed (``CCR surface impoundments''), as well as CCR 
surface impoundments that failed the location restriction for placement 
above the uppermost aquifer, to stop receiving waste and begin closure 
or retrofitting. The EPA established this date after evaluating the 
steps that owners and operators need to take for CCR surface 
impoundments to stop receiving waste and begin closure, and the 
timeframes needed for implementation. (This did not affect the ability 
of plants to install new, composite-lined CCR surface impoundments.) 
Second, the Part A rule established procedures for plants to obtain 
approval from the EPA for additional time to develop alternative 
disposal capacity to manage their wastestreams (both CCR and non-CCR) 
before they must stop receiving waste and begin closing their CCR 
surface impoundments. Third, the Part A rule changed the classification 
of compacted-soil-lined and clay-lined surface impoundments from lined 
to unlined. Fourth, the Part B rule finalized procedures potentially 
allowing a limited number of facilities to demonstrate to the EPA that, 
based on groundwater data and the design of a particular surface 
impoundment, the unit ensures there is no reasonable probability of 
adverse effects to human health and the environment. Should the EPA 
approve such a submission, these CCR surface impoundments would be 
allowed to continue to operate.
    As explained in the 2015 and 2020 ELG rules, the ELGs and CCR rules 
may affect the same EGU or activity at a plant. Therefore, when the EPA 
finalized the ELG and CCR rules in 2015, and revisions to both rules in 
2020, the Agency coordinated the ELG and CCR rules to minimize the 
complexity of implementing engineering, financial, and permitting 
activities. Likewise, the EPA considered the interaction of the two 
rules during the development of this final rule. The EPA's analytic 
baseline includes the final requirements of these rules using the most 
recent data provided under the CCR rule reporting and recordkeeping 
requirements. This is further described in Supplemental TDD, section 3. 
For more information on the CCR Part A and Part B rules, including 
information about their ongoing implementation, visit <a href="http://www.epa.gov/coalash/coal-ash-rule">www.epa.gov/coalash/coal-ash-rule</a>.
    Concurrently with the final ELG, in a separate rulemaking, the EPA 
is also finalizing regulatory requirements for inactive CCR surface 
impoundments at inactive utilities (``legacy CCR surface impoundment'' 
or ``legacy impoundment'') (FR 2024-09157 (EPA-HQ-OLEM-2020-0107; FRL-
7814-04-OLEM)). This action is being taken in response to the August 
21, 2018, opinion by the U.S. Court of Appeals for the District of 
Columbia Circuit in the USWAG decision that vacated and remanded the 
provision exempting legacy impoundments from the CCR regulations. This 
action includes adding a definition for legacy CCR surface impoundments 
and other terms relevant to this rulemaking. It also requires that 
legacy CCR surface impoundments comply with certain existing CCR 
regulations with tailored compliance deadlines.
    The EPA is also establishing requirements to address the risks from 
currently exempt solid waste management that involves the direct 
placement of CCR on the land. The EPA is extending a subset of the 
existing requirements in 40 CFR part 257, subpart D, to CCR surface 
impoundments and landfills that closed prior to the effective date of 
the 2015 CCR rule, inactive CCR landfills, and other areas where CCR is 
managed directly on the land. In this action, the EPA refers to these 
as CCR management units, or CCRMU. This rule will apply to all existing 
CCR facilities and all inactive facilities with legacy CCR surface 
impoundments subject to this final rule.
    Finally, the EPA is making a number of technical corrections to the 
existing regulations, such as correcting certain citations and 
harmonizing definitions. For further information on the CCR 
regulations, including information about the CCR Part A and Part B 
rules' ongoing implementation, visit <a href="http://www.epa.gov/coalash/coal-ash-rule">www.epa.gov/coalash/coal-ash-rule</a>.
2. Air Pollution Rules and Implementation
    The EPA is taking several actions to regulate a variety of 
conventional, hazardous, and greenhouse gas (GHG) air pollutants, 
including actions to regulate the same steam electric power plants 
subject to part 423. In light of these ongoing actions, the EPA has 
worked to consider appropriate flexibilities in this ELG rule to 
provide certainty to the regulated community while ensuring the 
statutory objectives of each program are achieved. Furthermore, to the 
extent that these actions have been published before this rule's 
signature and are already impacting steam electric power plant 
operations, the EPA has accounted for these changed operations in its 
Integrated Planning Model (IPM) modeling discussed in section VIII of 
this preamble.

[[Page 40206]]

a. The Revised Cross State Air Pollution Rule Update and the Good 
Neighbor Plan for the 2015 Ozone National Ambient Air Quality Standards
    On June 5, 2023, the EPA promulgated its final Good Neighbor Plan, 
which secures significant reductions in ozone-forming emissions of 
nitrogen oxides (NO<INF>X</INF>) from power plants and industrial 
facilities. 88 FR 36654. The Good Neighbor Plan ensures that 23 states 
meet the Clean Air Act's (CAA's) ``Good Neighbor'' requirements by 
reducing pollution that significantly contributes to problems attaining 
and maintaining EPA's health-based air quality standard for ground-
level ozone (or ``smog''), known as the 2015 Ozone National Ambient Air 
Quality Standards (NAAQS), in downwind states. Further information on 
this action is available on the EPA's website.\9\
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    \9\ See <a href="https://www.epa.gov/csapr/good-neighbor-plan-2015-ozone-naaqs">https://www.epa.gov/csapr/good-neighbor-plan-2015-ozone-naaqs</a>.
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    As of September 21, 2023, the Good Neighbor Plan's ``Group 3'' 
ozone-season NO<INF>X</INF> control program for power plants is being 
implemented in: Illinois, Indiana, Maryland, Michigan, New Jersey, New 
York, Ohio, Pennsylvania, Virginia, and Wisconsin. Pursuant to court 
orders staying the Agency's State Implementation Plan disapproval 
action in the following States, the EPA is not currently implementing 
the Good Neighbor Plan ``Group 3'' ozone-season NO<INF>X</INF> control 
program for power plants in: Alabama, Arkansas, Kentucky, Louisiana, 
Minnesota, Mississippi, Missouri, Nevada, Oklahoma, Texas, Utah, and 
West Virginia.\10\
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    \10\ Further information on EPA's response to the stay orders 
can be found online at: <a href="https://www.epa.gov/Cross-State-Air-Pollution/epa-response-judicial-stay-orders">https://www.epa.gov/Cross-State-Air-Pollution/epa-response-judicial-stay-orders</a>.
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    On January 16, 2024, the EPA signed a proposal to partially approve 
and partially disapprove State Implementation Plan submittals 
addressing interstate transport for the 2015 ozone NAAQS from Arizona, 
Iowa, Kansas, New Mexico, and Tennessee and proposed to include these 
States in the Good Neighbor Plan beginning in 2025 (89 FR 12666, 
February 16, 2024).
    On April 30, 2021, the EPA published the final Revised Cross-State 
Air Pollution Rule (CSAPR) Update (86 FR 23054), which resolved 21 
states' good neighbor obligations for the 2008 ozone NAAQS, following 
the remand of the 2016 CSAPR Update (81 FR 74504, October 26, 2016) in 
Wisconsin v. EPA, 938 F.3d 308 (D.C. Cir. 2019). Together, these two 
rules establish the Group 2 and Group 3 market-based emissions trading 
programs for 22 states in the eastern United States for emissions of 
NO<INF>X</INF> from fossil fuel-fired EGUs during the summer ozone 
season.
b. Clean Air Act section 111 Rule
    Concurrently with the final ELG, the EPA is finalizing the repeal 
of the Affordable Clean Energy Rule, establishing Best System of 
Emissions Reduction (BSER) determinations and emission guidelines for 
existing fossil fuel-fired EGUs, and establishing BSER determinations 
and accompanying standards of performance for GHG emissions from new 
and reconstructed fossil fuel-fired stationary combustion turbines and 
modified fossil fuel-fired EGUs. Specifically, for coal-fired EGUs, the 
EPA is establishing final standards based on carbon capture and 
storage/sequestration with 90 percent capture with a compliance date of 
January 1, 2032 (FR 2024-09233 (EPA-HQ-OAR-2023-0072; FRL-8536-01-
OAR)). For coal-fired EGUs retiring by January 1, 2039, the EPA is 
establishing final standards based on 40 percent natural gas co-firing 
with a compliance date of January 1, 2030.
    While four subcategories for coal-fired EGUs were proposed, the EPA 
is finalizing just the two subcategories for coal-fired EGUs as 
described in the preceding paragraph. Consistent with 40 CFR 60.24a(e) 
and the Agency's explanation in the proposal, states have the ability 
to consider, inter alia, a particular source's remaining useful life 
when applying a standard of performance to that source.\11\
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    \11\ See 88 FR 33240 (May 23, 2023) (invoking RULOF based on a 
particular coal-fired EGU's remaining useful life ``is not 
prohibited under these emission guidelines'').
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    In addition, the EPA is creating an option for states to provide 
for a compliance date extension for existing sources of up to one year 
under certain circumstances for sources that are installing control 
technologies to comply with their standards of performance. States may 
also provide, by inclusion in their state plans, a reliability 
assurance mechanism of up to one year that under limited circumstances 
would allow existing EGUs that had planned to cease operating by a 
certain date to temporarily remain available to support reliability. 
Any extensions exceeding 1-year must be addressed through a state plan 
revision. Further information about the CAA section 111 rule is 
available online at <a href="https://www.epa.gov/stationary-sources-air-pollution/greenhouse-gas-standards-and-guidelines-fossil-fuel-fired-power">https://www.epa.gov/stationary-sources-air-pollution/greenhouse-gas-standards-and-guidelines-fossil-fuel-fired-power</a>.
c. Mercury and Air Toxics Standards Rule
    On March 6, 2023 (88 FR 13956), the EPA published a final rule 
which reaffirmed that it remains appropriate and necessary to regulate 
hazardous air pollutants (HAP), including mercury, from power plants 
after considering cost. This action revoked a 2020 finding that it was 
not appropriate and necessary to regulate coal- and oil-fired power 
plants under CAA section 112, which covers toxic air pollutants. The 
EPA reviewed the 2020 finding and considered updated information on 
both the public health burden associated with HAP emissions from coal- 
and oil-fired power plants, as well as the costs associated with 
reducing those emissions under the Mercury and Air Toxics Standards 
(MATS). After weighing the public risks these emissions pose to all 
Americans (and particularly exposed and sensitive populations) against 
the costs of reducing this harmful pollution, the EPA concluded that it 
remains appropriate and necessary to regulate these emissions. This 
action ensures that coal- and oil-fired power plants continue to 
control emissions of hazardous air pollution and that the Agency 
properly interprets the CAA to protect the public from hazardous air 
emissions.
    Concurrently with the final ELG, the EPA is finalizing an update to 
the National Emission Standards for Hazardous Air Pollutants for Coal- 
and Oil-Fired Electric Utility Steam Generating Units (EGUs), commonly 
known as the Mercury and Air Toxics Standards (MATS) for power plants, 
to reflect recent developments in control technologies and the 
performance of these plants (FR 2024-0918 (EPA-HQ-OAR-2018-0794; FRL-
6716.3-02-OAR)). This final rule includes an important set of 
improvements and updates to MATS and also fulfills the EPA's 
responsibility under the Clean Air Act to periodically re-evaluate its 
standards in light of advancements in pollution control technologies to 
determine whether revisions are necessary. The improvements consist of:
    <bullet> Further limiting the emission of non-mercury HAP metals 
from existing coal-fired power plants by significantly reducing the 
emission standard for filterable particulate matter (fPM), which is 
designed to control non-mercury HAP metals. The EPA is finalizing a 
two-thirds reduction in the fPM standard; \12\
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    \12\ Also, the EPA is finalizing the removal of the low-emitting 
EGU provisions for fPM and non-mercury HAP metals.

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[[Page 40207]]

    <bullet> Tightening the emission limit for mercury for existing 
lignite-fired power plants by 70 percent; \13\
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    \13\ This level aligns with the mercury standard that other 
coal-fired power plants have been achieving under the current MATS.
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    <bullet> Strengthening emissions monitoring and compliance by 
requiring coal-and oil-fired EGUs to comply with the fPM standard using 
PM continuous emission monitoring systems (CEMS); \14\
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    \14\ PM CEMS provide regulators, the public, and facility owners 
or operators with cost-effective, accurate, and continuous emission 
measurements. This real-time, quality-assured feedback can lead to 
improved control device and power plant operation, which will reduce 
air pollutant emissions and exposure for local communities.
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    <bullet> Revising the startup requirements in MATS to assure better 
emissions performance during startup.
    Additional information on the final MATS is available on the EPA's 
website.\15\
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    \15\ See <a href="https://www.epa.gov/stationary-sources-air-pollution/mercury-and-air-toxics-standards">https://www.epa.gov/stationary-sources-air-pollution/mercury-and-air-toxics-standards</a>.
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d. National Ambient Air Quality Standards Rules for Particulate Matter
    On February 7, 2024, the EPA Administrator signed a final rule 
strengthening the National Ambient Air Quality Standards for 
Particulate Matter (PM NAAQS) to protect millions of Americans from 
harmful and costly health impacts, such as heart attacks and premature 
death (89 FR 16202, March 6, 2024). Particle or soot pollution is one 
of the most dangerous forms of air pollution, and an extensive body of 
science links it to a range of serious and in some cases deadly 
illnesses. The EPA set the level of the primary (health-based) annual 
particulate matter (PM<INF>2.5</INF>) standard at 9.0 micrograms per 
cubic meter to provide increased public health protection, consistent 
with the available health science. The EPA did not change the current 
primary and secondary (welfare-based) 24-hour PM<INF>2.5</INF> 
standards, the secondary annual PM<INF>2.5</INF> standard, and the 
primary and secondary PM<INF>10</INF> standards. The EPA also revised 
the Air Quality Index to improve public communications about the risks 
from PM<INF>2.5</INF> exposures and made changes to the monitoring 
network to enhance protection of air quality in communities 
overburdened by air pollution. More information about this action is 
available on the EPA's website.\16\
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    \16\ See <a href="https://www.epa.gov/pm-pollution/national-ambient-air-quality-standards-naaqs-pm">https://www.epa.gov/pm-pollution/national-ambient-air-quality-standards-naaqs-pm</a>.
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V. Steam Electric Power Generating Industry Description

A. General Description of Industry

    For each previous regulatory action--the 2013 proposed rule (78 FR 
34432, June 7, 2013), the 2015 final rule, the 2019 proposed rule (84 
FR 64620, November 22, 2019), the 2020 final rule, and the 2023 
proposed rule--the EPA provided general descriptions of the steam 
electric power generating industry. The Agency has continued to collect 
information and update this industry profile. The previous descriptions 
reflected the known information about the universe of steam electric 
power plants and incorporated final environmental regulations 
applicable at that time. For this rule, as described in the 
Supplemental TDD, section 3, the EPA has revised its description of the 
steam electric power generating industry (and its supporting analyses) 
to incorporate major changes such as additional retirements, fuel 
conversions, ash handling conversions, wastewater treatment updates, 
and updated information on capacity utilization.\17\ The analyses 
supporting this rule use an updated baseline that incorporates these 
changes in the industry and include the 2015 and 2020 rules' 
limitations for FGD wastewater, BA transport water, CRL, and legacy 
wastewater. The analyses then compare the effect of the new rule's 
requirements to this baseline.
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    \17\ The data presented in the general description continue to 
reflect some conditions existing in 2009.The 2010 steam electric 
industry survey remains the EPA's best available source of 
information for characterizing operations across the industry in 
cases where the EPA has not received newer information.
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    As described in the Regulatory Impact Analysis, of the 858 steam 
electric power plants in the country identified by the EPA, only those 
coal-fired power plants that discharge FGD wastewater, BA transport 
water, CRL, legacy wastewater and/or unmanaged CRL may incur compliance 
costs under this rule. The EPA estimates that 141 to 170 such plants 
may incur compliance costs under this rule, depending on the scenario 
used to model the occurrence of unmanaged CRL costs. See section 
VII.C.5 of this preamble for more information regarding subcategory for 
discharges of unmanaged CRL. See the EPA's memorandum, Changes to 
Industry Profile for Coal-Fired Generating Units for the Steam Electric 
Effluent Guidelines Final Rule (DCN SE11618), for more information 
about plant retirements, fuel conversions, ash handling conversions, 
wastewater treatment updates, and updated information on capacity 
utilization.

B. Current Market Conditions and Drivers in the Electricity Generation 
Sector

1. Inflation Reduction Act Implementation
    On August 16, 2022, President Biden signed into law the Inflation 
Reduction Act (IRA). The IRA marks the most significant action Congress 
has taken on clean energy and climate change in the nation's history. 
The IRA provides tax credits, financing programs, and other incentives, 
some of which are administered by the EPA, that will accelerate the 
transition to forms of energy that produce little or no GHG emissions 
and other water and air pollutants. As such, it includes many 
provisions that will affect the steam electric power generating 
industry, causing both direct effects through changes in the production 
of electricity and indirect effects on electricity demand and changes 
to fuel markets.
    In September 2023, the EPA published a report on the effect of the 
IRA on the electricity sector and on the economy in general.\18\ The 
report found that the IRA would lead to emission reductions from the 
electric power sector of 49 to 83 percent below 2005 levels in 2030. 
The associated shifts from fossil fuel generation would also lead to 
reductions in water and air pollution from the sector. The study also 
found that the IRA would lower economy-wide CO<INF>2</INF> emissions, 
including emissions from electricity generation and use, by 35 to 43 
percent below 2005 levels in 2030. Across the end-use sectors, the 
study found that buildings exhibit the greatest reductions from 2005 
levels of direct plus indirect CO<INF>2</INF> emissions from 
electricity, followed by industry and transportation. Though it focuses 
on changes in climate-forcing emissions (in part attributable to the 
models it uses), the study also implies important changes in the 
emissions of other pollutants throughout the economy. The EPA used IPM 
to evaluate the impacts of the final ELG relative to a baseline that 
reflects impacts from other relevant policies and environmental 
regulations that affect the power sector, including the IRA and other 
on-the-books Federal and state rules (see section VIII.C.2 of this 
preamble for more information).
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    \18\ U.S. EPA (Environmental Protection Agency). 2023. 
Electricity Sector Emissions Impacts of the Inflation Reduction Act: 
Assessment of Projected CO<INF>2</INF> Emission Reductions from 
Changes in Electricity Generation and Use. U EPA 430-R-23-004. 
Available online at: <a href="https://www.epa.gov/inflation-reduction-act/electric-sector-emissions-impacts-inflation-reduction-act">https://www.epa.gov/inflation-reduction-act/electric-sector-emissions-impacts-inflation-reduction-act</a>.

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[[Page 40208]]

2. Recent Developments in Ensuring Electric Reliability and Resource 
Adequacy
    The nature and components of the bulk power sector have been 
evolving away from older and less efficient legacy fossil generation 
(mostly coal-fired power plants) towards more decentralized, renewable 
assets and flexible gas-fired generation. Stakeholders have raised 
concerns that centralized, dispatchable power plants are coming offline 
faster than new generation can replace the reliability attributes 
associated with them. However, a combination of technology innovation, 
revised market signals from the Regional Transmission Organizations 
(RTOs) and Independent System Operators (ISOs), and reforms recently 
completed and underway by Federal Energy Regulatory Commission (FERC) 
are collectively poised to address current reliability challenges 
associated with the transition along with expected higher load growth 
and the increasing frequency of extreme weather events. EPA has 
continued to learn and engage on reliability issues, particularly as 
part of the Agency's implementation of the Joint Memorandum on 
Interagency Communication and Consultation on Electric Reliability.\19\ 
As part of this process, EPA has engaged in regular meetings with 
Department of Energy (DOE), North American Electric Reliability 
Corporation (NERC), FERC, and the various ISOs/RTOs.
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    \19\ Available online at: <a href="https://www.epa.gov/power-sector/electric-reliability-mou">https://www.epa.gov/power-sector/electric-reliability-mou</a>.
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    FERC, NERC, RTOs, and ISOs are already taking steps to ensure 
reliability during this period of asset evolution. Among FERC's actions 
to help address reliability is Order 2023, or ``Improvements to 
Generator Interconnection Procedures,'' which will help expedite 
interconnections for new assets waiting to connect to the grid. This is 
a very important development to ensure future resource adequacy because 
interconnection wait times for new energy assets entering energy 
markets have increased, which is stifling the ability of replacement 
generation to connect to the grid. FERC's final action on extreme cold 
weather preparedness will support the new peak demand hours, which have 
migrated to winter months. New reliability standards issued for 
inverter-based resources ``will help ensure reliability of the grid by 
accommodating the rapid integration of new power generation 
technologies, known as inverter-based resources (IBRs), that include 
solar photovoltaic, wind, fuel cell and battery storage resources. . . 
.'' \20\ FERC has also undertaken various transmission-related efforts, 
from inter-regional transmission capacity efforts to reconductoring and 
dynamic line rating, that would help bolster reliability by increasing 
the transmission capacity of existing lines and creating incentives for 
new, inter-regional transmission. Increasing transmission capacity can 
enhance reliability by increasing the amount of generation that can 
access the grid to help meet demand.
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    \20\ For further information about FERC actions to address IBRs, 
see <a href="https://www.ferc.gov/news-events/news/ferc-moves-protect-grid-transition-clean-energy-resources">https://www.ferc.gov/news-events/news/ferc-moves-protect-grid-transition-clean-energy-resources</a>.
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    Furthermore, there are new technologies coming online that can also 
help provide reliability attributes. The deployment of many of these 
technologies has been accelerating due to the incentives in the IRA. 
The rapid increase in energy storage deployment across the nation is an 
important part of future grid reliability, particularly as the duration 
of storage assets expands. Examples of existing and emerging storage 
resources include various types of fuel cells, batteries, pumped hydro-
electric reservoirs, and underground hydrogen caverns. Energy storage 
can help buttress reliability by storing renewable energy for dispatch 
when demand is high. Improved management of demand response assets, 
better designed electricity tariff structures, aggregation of 
distributed resources like roof-top solar panels, and integration of 
behind-the-meter battery storage can further support balancing peak 
demand on power grids. For example, programs to manage demand, which 
have shown value well before the recent energy transition, incentivize 
customers to shift their demand during periods when there is ample 
supply, which can help reduce instances when supply is tight.
    Despite these concerns, there are also existing procedures in place 
to ensure electricity system reliability and resource adequacy over 
both the short and long-term. For example, regional planning 
organizations typically have incentive or planning procedures to ensure 
that there is sufficient capacity to meet future demand such as day-
ahead reserve and capacity markets and seasonal reserve margins. 
Furthermore, the EPA understands that before a unit implements a 
retirement decision, the unit's owner will follow the processes put in 
place by the relevant RTO, balancing authority, or state regulator to 
protect electric system reliability. These processes typically include 
analysis of the potential impacts of the proposed EGU retirement on 
electrical system reliability, identification of options for mitigating 
any identified adverse impacts, and, in some cases, temporary provision 
of additional revenues to support the EGU's continued operation until 
longer-term mitigation measures can be put in place.

C. Control and Treatment Technologies

    In general, control and treatment technologies for some 
wastestreams have continued to advance since the 2015 and 2020 rules. 
Often, these advancements provide plants with additional approaches for 
complying with any effluent limitations. In some cases, these 
advancements have also decreased the associated costs of compliance. 
For this rule, the EPA incorporated updated information and evaluated 
several technologies available to control and treat FGD wastewater, BA 
transport water, CRL, and legacy wastewater generated by the steam 
electric power generating industry. See section VIII of this preamble 
for details on updated cost information.
1. FGD Wastewater
    FGD scrubber systems are used to remove sulfur dioxide from flue 
gas so it is not emitted into the air. Dry FGD systems use water in 
their operation but generally do not discharge wastewater because it 
evaporates during operation. Wet FGD systems do produce a wastewater 
stream.
    Steam electric power plants discharging FGD wastewater currently 
employ a variety of wastewater treatment technologies and operating/
management practices to reduce the pollutants associated with FGD 
wastewater discharges. The EPA identified the following types of 
treatment and handling practices for FGD wastewater:
    <bullet> Chemical precipitation. Chemicals are added as part of the 
treatment system to help remove suspended solids and dissolved solids, 
particularly metals. The precipitated solids are then removed from the 
solution by coagulation/flocculation followed by clarification and/or 
filtration. The 2015 and 2020 rules focused on a specific design that 
employs hydroxide precipitation, sulfide precipitation (organosulfide), 
and iron coprecipitation to remove suspended solids and convert soluble 
metal ions to insoluble metal hydroxides or sulfides. Chemical 
precipitation was part of the BAT technology basis for the effluent 
limitations in the 2015 and 2020 rules.
    <bullet> High-hydraulic-residence-time biological reduction (HRTR). 
The EPA

[[Page 40209]]

identified three types of biological treatment systems used to treat 
FGD wastewater: anoxic/anaerobic fixed-film bioreactors (which target 
removals of nitrogen compounds and selenium), anoxic/anaerobic 
suspended growth systems (which target removals of selenium and other 
metals), and aerobic/anaerobic sequencing batch reactors (which target 
removals of organics and nutrients). An anoxic/anaerobic fixed-film 
bioreactor designed to remove selenium and nitrogen compounds using 
high hydraulic residence times of approximately 10 to 16 hours was part 
of the BAT technology basis for the effluent limitations in the 2015 
rule.
    <bullet> Low-hydraulic-residence-time biological reduction (LRTR). 
LRTR is a biological treatment system that targets removal of selenium 
and nitrate/nitrite using fixed-film bioreactors in smaller, more 
compact reaction vessels. This system differs from the HRTR biological 
treatment system evaluated in the 2015 rule, in that the LRTR system is 
designed to operate with a shorter residence time (approximately one to 
four hours, compared to a residence time of 10 to 16 hours for HRTR) 
while still achieving significant removal of selenium and nitrate/
nitrite. LRTR was part of the BAT technology basis for the effluent 
limitations in the 2020 rule.
    <bullet> Membrane filtration. A membrane filtration system (e.g., 
microfiltration, ultrafiltration, nanofiltration, forward osmosis, 
electrodialysis reversal, or reverse osmosis (RO)) is designed 
specifically for high-TDS and high-TSS wastestreams. These systems are 
designed to minimize fouling and scaling associated with industrial 
wastewater. These systems typically use pretreatment for potential 
scaling agents (e.g., calcium, magnesium, sulfates) combined with one 
or more type of membrane technology to remove a broad array of 
particulate and dissolved pollutants from FGD wastewater. The membrane 
filtration units may also employ advanced techniques, such as vibration 
or creation of vortexes to mitigate fouling or scaling of the membrane 
surfaces. Membrane filtration can achieve zero discharge by 
recirculating permeate from an RO system back into plant operations.
    <bullet> Spray evaporation. Spray evaporation technologies, which 
include spray dry evaporators (SDEs) and other similar proprietary 
variations, evaporate water by spraying fine misted wastewater into hot 
gases. The hot gases allow the water to evaporate before contacting the 
walls of an evaporation vessel, treating wastewater across a range of 
water quality characteristics such as TDS, TSS, or scale forming 
potential. Spray evaporation technologies use a less complex treatment 
configuration than brine concentrator and crystallizer systems (see the 
description of thermal evaporation systems) to evaporate water using a 
heat source, such as a slipstream of hot flue gas or an external 
natural gas burner. Spray evaporation technologies can be used in 
combination with other volume reduction technologies, such as 
membranes, to maximize the efficiency of each process. Concentrate from 
an RO system can then be processed through the spray evaporation 
technology to achieve zero discharge by recirculating permeate from the 
RO system back into plant operations.
    <bullet> Thermal evaporation. Thermal evaporation systems use a 
falling-film evaporator (or brine concentrator), following a softening 
pretreatment step, to produce a concentrated wastewater stream and a 
distillate stream to reduce wastewater volume by 80 to 90 percent and 
reduce the discharge of pollutants. The concentrated wastewater is 
usually further processed in a crystallizer that produces a solid 
residue for landfill disposal and additional distillate that can be 
reused within the plant or discharged. These systems are designed to 
remove the broad spectrum of pollutants present in FGD wastewater to 
very low effluent concentrations.
    <bullet> Some plants operate their wet FGD systems using approaches 
that eliminate the discharge of FGD wastewater. These plants use a 
variety of operating and management practices to achieve this, 
including the following:

--Complete recycle. The FGD wastestream is allowed to recirculate. 
Particulates (e.g., precipitates and other solids) are removed and 
landfilled. Water is supplemented when needed to replace water that 
evaporated or was removed with landfilled solids. This process does not 
produce a saleable product (e.g., wallboard grade gypsum) but it does 
not need a wastewater purge stream to maintain low levels of chlorides.
--Evaporation impoundments. Some plants located in warm, dry climates 
use surface impoundments as holding basins where the FGD wastewater is 
retained until it evaporates. The evaporation rate from these 
impoundments is greater than the flow rate of the FGD wastewater and 
amount of precipitation entering the impoundments; therefore, there is 
no discharge to surface water.\21\ These impoundments must be large 
enough to accommodate extreme precipitation events to prevent 
overtopping and runoff.
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    \21\ Such impoundments must be lined based on the requirements 
in the CCR rule. This lining would significantly reduce the 
potential for a discharge through groundwater that would be the 
functional equivalent of a direct discharge to a WOTUS.
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--FA conditioning. Many plants that operate dry FA handling systems use 
the water from their FGD system in the FA handling system to suppress 
dust or improve handling and/or compaction characteristics in an on-
site landfill.
--Combination of wet and dry FGD systems. The dry FGD process involves 
atomizing and injecting wet lime slurry, which ranges from 
approximately 18 to 25 percent solids, into a spray dryer. The water 
contained in the slurry evaporates from the heat of the flue gas within 
the system, leaving a dry residue that is removed from the flue gas 
using a fabric filter (i.e., baghouse) or electrostatic precipitator.
--Underground injection. These systems dispose of wastes by injecting 
them into a permitted underground injection well as an alternative to 
discharging wastewater to surface waters.

    The EPA also collected information on other FGD wastewater 
treatment technologies, including direct contact thermal evaporators 
and ion exchange. These treatment technologies have been evaluated, in 
full- or pilot-scale, or are being developed to treat FGD wastewater. 
More information on these technologies is available in section 4.1 of 
the Supplemental TDD.
2. BA Transport Water
    BA (bottom ash) consists of heavier ash particles that are not 
entrained in the flue gas and fall to the bottom of the furnace. In 
most furnaces, the hot BA is quenched in a water-filled hopper.\22\ 
Some plants use water to transport (sluice) the BA from the hopper to 
an impoundment or dewatering bins. The water used to transport the BA 
to the impoundment or dewatering bins is usually discharged to surface 
water as overflow from the systems after the BA has settled to the 
bottom. The industry also uses the following BA handling systems that 
generate BA transport water:
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    \22\ Consistent with the 2015 and 2020 rule, EGU slag is 
considered BA.
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    <bullet> Remote mechanical drag system (MDS). These systems 
transport BA to a remote MDS using the same processes as wet-sluicing 
systems. A drag chain conveyor pulls the BA out of the water bath on an 
incline to dewater the BA. The system can be operated either as a

[[Page 40210]]

closed-loop system (part of the technology basis for the 2015 rule) or 
a high-recycle-rate system (technology basis for the 2020 rule).\23\
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    \23\ In some cases, additional treatment may be necessary to 
maintain a closed-loop system. This additional treatment could 
include polymer addition to enhance removal of suspended solids or 
membrane filtration of a slipstream to remove dissolved solids.
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    <bullet> Mobile MDS. This technology is a smaller, mobile version 
of a remote MDS with an additional clarification system. It is not 
intended to be a permanent installation, which allows facilities to 
reduce capital costs. Once in place, the system works like a remote 
MDS--the incoming water is clarified and primary separation occurs. The 
clarified water is taken from the mechanical drag system to a mobile 
clarifier and polished to a level suitable for recirculation. The 
mobile clarifier thickens the collected solids, which are then sent 
back to the mechanical drag system portion and mixed with coarse BA. 
This mixture is sent up an incline, dewatered, and disposed of.
    <bullet> Dense slurry system. These systems use a dry vacuum or 
pressure system to convey the BA to a silo (as described below for the 
``dry vacuum or pressure system''), but instead of using trucks to 
transport the BA to a landfill, the plant mixes the BA with a lower 
percentage of water compared to a wet-sluicing system and pumps the 
mixture to the landfill.
    As part of the 2020 rule and this rule, the EPA identified the 
following BA handling systems that do not, by definition or practice, 
generate BA transport water.
    <bullet> MDS. These systems are located directly underneath the 
EGU. The BA is collected in a water quench bath. A drag chain conveyor 
pulls the BA out of the water bath along an incline to dewater the BA.
    <bullet> Dry mechanical conveyor. These systems are located 
directly underneath the EGU. The system uses ambient air to cool the BA 
in the boiler and then transports the ash out from under the EGU using 
a conveyor. There is no water used in this process.
    <bullet> Dry vacuum or pressure system. These systems transport BA 
from the EGU to a dry hopper without using any water. Air is percolated 
through the ash to cool it and combust unburned carbon. Cooled ash then 
drops to a crusher and is conveyed via vacuum or pressure to an 
intermediate storage destination.
    <bullet> Vibratory belt system. These systems deposit BA on a 
vibratory conveyor trough, where the ash is air-cooled and ultimately 
moved through the conveyor deck to an intermediate storage destination 
without using any water.
    <bullet> Submerged grind conveyor. These systems are located 
directly underneath the EGU and are designed to reuse slag tanks, ash 
gates, clinker grinders, and transfer enclosures from the existing wet 
sluicing systems. The system collects BA from the discharge of each 
clinker grinder. A series of submerged drag chain conveyors transport 
and dewater the BA.
    More information on these technologies is available in section 4.2 
of the Supplemental TDD.
3. CRL
    In promulgating the 2015 rule, the EPA determined that CRL from 
landfills and impoundments includes similar types of constituents as 
FGD wastewater, albeit at potentially lower concentrations and smaller 
volumes. Based on this characterization of the wastewater and knowledge 
of treatment technologies, the EPA determined that certain treatment 
technologies identified for FGD wastewater could also be used to treat 
CRL. These technologies, described in section V.C.1 of this preamble, 
include chemical precipitation, biological treatment (including LRTR), 
membrane filtration, spray evaporation, or other thermal treatment 
options. The EPA also identified other management and reuse strategies 
from responses to the 2010 Questionnaire for the Steam Electric Power 
Generating Effluent Guidelines, or steam electric survey, which 
included using CRL from either an impoundment or landfill for moisture 
conditioning FA, dust control, or truck wash. The EPA also identified 
plants that collect CRL from impoundments and recycle it directly back 
to the impoundment.
4. Legacy Wastewater
    Legacy wastewater can be composed of FGD wastewater, BA transport 
water, FA transport water, CRL, gasification wastewater and/or FGMC 
wastewater generated before the ``as soon as possible'' date that more 
stringent effluent limitations from the 2015 or 2020 rules would apply. 
Discharges of legacy wastewater may occur through an intermediary 
source (e.g., a tank or surface impoundment) or directly into a surface 
waterbody, with the vast majority of legacy wastewater currently 
contained in surface impoundments resulting from treating the 
wastestreams listed above to the previously established BPT 
limitations. The record indicates that the following technologies can 
be applied to treat this type of legacy wastewater: chemical 
precipitation, biological treatment (including LRTR), membrane 
filtration, spray evaporation, and other thermal treatment options. 
These technologies are described in section V.C.1 of this preamble. 
Another option, which may be used in combination with other systems 
such as chemical and physical treatment, is zero valent iron (ZVI).
    <bullet> ZVI. This technology can be used to target specific 
inorganics, including selenium, arsenic, nitrate, and mercury in this 
type of legacy wastewater. The technology entails mixing influent 
wastewater with ZVI (iron in its elemental form), which reacts with 
oxyanions, metal cations, and some organic molecules in wastewater. ZVI 
causes a reduction reaction in these pollutants, after which the 
pollutants are immobilized through surface adsorption onto iron oxide 
coated on the ZVI or generated from oxidation of elemental iron. The 
coated, or spent, ZVI is separated from the wastewater with a 
clarifier. The quantity of ZVI required and number of reaction vessels 
can vary based on the composition and amount of wastewater being 
treated.
    The EPA recognizes that the characterization of legacy wastewater 
differs within the layers of a CCR impoundment as it is dewatered and 
prepared for closure. Therefore, treatment requirements may change as 
closure continues. Wastewater characteristics may also differ across 
CCR impoundments due to the different types of fuels burned at the 
plant, duration of pond operation, and ash type. Each of the treatment 
technologies identified for legacy wastewater above is applicable to 
all legacy wastewaters; treatment may require a combination of those 
technologies (e.g., chemical precipitation and membrane filtration).
    In addition, solids dewatering is necessary to dredge CCR materials 
from the impoundment. Mobile dewatering systems are typically self-
contained units on a trailer, allowing for the entire system to be 
easily moved on-site and off-site. Legacy wastewater from a holding 
area (e.g., pit, pond, collection tank) is pumped through a filter 
press to generate a filter cake and water stream. A shaker screen can 
be added to the treatment train to remove larger particles prior to the 
filter press. Furthermore, the filter press can be equipped with 
automated plate shifters to allow solids to drop from the end of the 
trailer directly into a loader or truck. The resulting wastestream may 
be further treated to meet any discharge requirements.

[[Page 40211]]

VI. Data Collection Since the 2020 Rule

A. Information from the Electric Utility Industry

1. Data Requests and Responses
    In January 2022, the EPA requested the following pollution 
treatment system performance and cost information for coal-fired power 
plants from three steam electric power companies:
    <bullet> FGD wastewater installations of the following 
technologies: thermal technology; membrane filtration technology; 
paste, solidification, or encapsulation of FGD wastewater brine; 
electrodialysis; and electrocoagulation.
    <bullet> Overflow from an MDS, a compact submerged conveyor, or 
remote MDS installations, including purge rate and management from 
remote MDS systems, as well as any pollutant concentration data to 
characterize the overflow or purge.
    <bullet> CRL treatment from on-site or off-site testing (full-, 
pilot-, or laboratory-scale).
    <bullet> On-site or off-site testing (full-, pilot-, or laboratory-
scale) and/or implementation of treatment technologies associated with 
surface impoundment dewatering treatment.
    <bullet> Costs associated with these technologies.
    In addition, after meeting with four additional power companies, 
the EPA sent each company a voluntary request inviting them to provide 
the same data described above.
    In July 2023, the EPA requested any full-, pilot-, or laboratory-
scale data associated with on-site or off-site testing or 
implementation of a recently commissioned spray dryer evaporator for 
FGD wastewater and legacy wastewater at a coal-fired power plant from 
Minnesota Power. The EPA also requested information on pretreatment or 
disposal systems necessary for continued spray dryer evaporator 
operations and any corresponding documentation (e.g., wastestreams 
generated, process flow diagram).
2. Meetings With Individual Utilities
    To gather information to support this supplemental rule, the EPA 
met with representatives from four utilities. Two of these utilities 
reached out to the EPA after the announcement of the supplemental 
rulemaking. The EPA contacted the remaining utilities due to their 
known or potential consideration of membrane filtration. At these 
meetings, the EPA discussed the operation of the utility's coal-fired 
EGUs and the treatment and management of BA transport water, FGD 
wastewater, legacy wastewater, and CRL since the 2020 rule. The EPA 
learned about updates associated with plant operations and studies at 
these plants, which were originally discussed during the 2015 and 2020 
rules.
    The objectives of these meetings were to gather general information 
about coal-fired power plant operations; pollution prevention and 
wastewater treatment system operations; ongoing pilot or laboratory 
scale study information for FGD wastewater treatment; BA system 
performance, characterization, and quantification of the overflow and 
purge from remote MDS installations; and treatment technologies and 
pilot testing associated with CRL and legacy wastewater. The EPA used 
this information to supplement the data collected in support of the 
2015 and 2020 rules.
3. Voluntary CRL Sampling
    In December 2021, the EPA invited eight steam electric power 
companies to participate in a voluntary program designed to obtain data 
to supplement the wastewater characterization data set for CRL. The EPA 
requested these data from facilities believed to have constructed new 
landfills pursuant to the 2015 CCR rule. Six power companies chose to 
participate in this program. The EPA incorporated these data into the 
CRL analytical dataset used to estimate pollutant loadings. More 
information on estimated CRL pollutant loadings is available in section 
6 of the Supplemental TDD.
4. Electric Power Research Institute Voluntary Submission
    The Electric Power Research Institute (EPRI) conducts industry-
funded studies to evaluate and demonstrate technologies that can 
potentially remove pollutants from wastestreams or eliminate 
wastestreams using zero-discharge technologies. Following the 2015 
rule, the EPA reviewed 35 EPRI reports published between 2011 and 2018 
that were voluntarily provided regarding characteristics of FGD 
wastewater, FGD wastewater treatment pilot studies, BA transport water 
characterization, BA handling practices, halogen addition rates, and 
the effect of halogen additives on FGD wastewater. For this 
supplemental rule, EPRI provided an additional 25 reports generated 
since 2018. The EPA used the information in these reports to inform 
treatment technology performance and to update methodologies for 
estimating costs and pollutant removals associated with candidate 
treatment technologies.
5. Meetings With Trade Associations
    In 2021 and 2022, the EPA met with the Edison Electric Institute 
and the American Public Power Association. These trade associations 
represent investor-owned utilities and community-owned utilities, 
respectively. They provided information and perspectives on the status 
of many utilities transitioning away from coal. The EPA also 
participated in meetings with one trade association following the 2023 
proposed rule. This association requested meetings with the EPA to 
discuss the association's public comments.

B. Notices of Planned Participation

    The 2020 rule required facilities to file a Notice of Planned 
Participation (NOPP) with their permitting authority no later than 
October 13, 2021, if the facility wished to participate in the LUEGU 
subcategory, the permanent cessation of coal combustion by 2028 
subcategory, or in the VIP. For the permanent cessation of coal 
combustion by 2028 subcategory, this filing date was extended by a 2023 
direct final rule to June 27, 2023. 88 FR 18440. While the facilities 
were not required to provide copies of the NOPPs to the Agency, the EPA 
nevertheless obtained a number of these filings. Some facilities 
provided the EPA a courtesy copy when filing with the relevant 
permitting authority. The Agency received notice of other filings when 
a state permitting authority sent new draft permits or modifications to 
the EPA for review. The EPA also asked some states for NOPPs after 
those states asked the EPA questions about the process or initiated 
discussions about specific plants. Environmental groups that collected 
some additional information about NOPPs also shared the information 
with EPA prior to the publication of the proposed rule.
    The EPA is currently aware of NOPPs covering 94 EGUs at 38 plants. 
At the time of the proposed rule, four EGUs (at two plants) requested 
participation in the LUEGU subcategory, an additional 12 EGUs (at four 
plants) requested participation in the 2020 rule VIP, and the remaining 
74 EGUs (at 33 plants) requested participation in the permanent 
cessation of coal combustion by 2028 subcategory.\24\ Following the 
2023 direct final rule, the EPA obtained one additional NOPP stating 
that two EGUs (at one plant) requested participation in the permanent 
cessation

[[Page 40212]]

of coal combustion subcategory by 2028 instead of the 2020 rule VIP. 
The EPA notes that these counts are not a comprehensive picture of 
facilities' plans for two reasons. First, the EPA was unable to obtain 
information for all plants and states. Second, even where a facility 
has filed a NOPP, under the transfer provisions of 40 CFR 
423.13(o)(1)(ii), it still retains flexibility to transfer between 
subcategories, or between a subcategory and the 2020 VIP provisions, 
until December 31, 2025.\25\ For example, the EPA made industry profile 
updates to some of the 90 EGUs with corresponding NOPPs based on public 
comments and other power company data (e.g., integrated resource 
planning reports). For further detail, the NOPPs the EPA is aware of 
have been placed in the docket along with a memorandum summarizing the 
information and providing record index numbers for locating each 
facility, entitled Changes to Industry Profile for Coal-Fired 
Generating Units for the Steam Electric Effluent Guidelines Final Rule 
(DCN SE11618).
---------------------------------------------------------------------------

    \24\ Plant Scherer filed a permanent cessation of coal 
combustion by 2028 NOPP for two EGUs and a 2020 rule VIP NOPP for 
the remaining two EGUs; thus, the plant count for the three 
groupings does not equal 38.
    \25\ The ability to transfer into the LUEGU subcategory ended on 
December 31, 2023.
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C. Information from Technology Vendors and Engineering, Procurement, 
and Construction Firms

    The EPA gathered data on the availability and effectiveness of FGD 
wastewater, BA handling, CRL, and surface impoundment dewatering 
operations and wastewater treatment technologies from technology 
vendors and engineering, procurement, and construction firms through 
presentations, conferences, meetings, and email and phone contacts. 
These collected data informed the development of the technology costs 
and pollutant removal estimates for FGD wastewater, BA transport water, 
CRL, and legacy wastewater.

D. Other Data Sources

    The EPA gathered information on steam electric generating 
facilities from the DOE's Energy Information Administration (EIA) Forms 
EIA-860 (Annual Electric Generator Report) and EIA-923 (Power Plant 
Operations Report). The EPA used the 2019, 2020, and 2021 data to 
update the industry profile, including commissioning dates, energy 
sources, capacity, net generation, operating statuses, planned 
retirement dates, ownership, and pollution controls at the EGUs. The 
EPA also referenced 2022 EIA data to support the analysis of FGD 
halogen (bromide and iodine) loads. Finally, the EPA used a 2024 EIA 
study as the basis for estimating the costs of a new coal-fired steam 
power plant.\26\
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    \26\ U.S. Energy Information Administration (2024). Capital Cost 
and Performance Characteristics for Utility-Scale Electric Power 
Generating Technologies, available at: <a href="https://www.eia.gov/analysis/studies/powerplants/capitalcost/pdf/capital_cost_AEO2025.pdf">https://www.eia.gov/analysis/studies/powerplants/capitalcost/pdf/capital_cost_AEO2025.pdf</a>.
---------------------------------------------------------------------------

    The EPA conducted literature and internet searches to gather 
information on FGD wastewater treatment technologies, including 
information on pilot studies, applications in the steam electric power 
generating industry, and implementation costs and timelines. The EPA 
also used internet searches to identify or confirm reports of planned 
facility plant and EGU retirements and reports of planned unit 
conversions to dry or closed-loop recycle ash handling systems. The EPA 
used this information to inform the industry profile and identify 
process modifications occurring in the industry.

VII. Final Regulation

A. Description of the Options

    The EPA analyzed four main regulatory options at proposal, the 
details of which were discussed in the proposed rule. See 88 FR 18824, 
18837-18838 (Mar. 29, 2023). For the final rule, the EPA evaluated 
three main regulatory options, as shown in table VII-1 of this 
preamble. Option A corresponds to the proposed regulation with 
modifications, while Options B and C would require controls that would 
achieve greater pollutant reductions. All three options include the 
same technology basis for FGD wastewater (zero-discharge systems) and 
BA transport water (dry-handling or closed-loop systems), while 
incrementally increasing controls on CRL and legacy wastewater and 
removing certain subcategories as one moves from Option A to Option C. 
Each successive option from Option A to Option C would achieve a 
greater reduction in wastewater pollutant discharges. Each 
subcategorization is described further in section VII.C of this 
preamble.
1. FGD Wastewater
    Under all three main options, the EPA would require zero discharge 
of FGD wastewater based on zero-discharge technologies and retain the 
2020 FGD wastewater limitations and standards as an interim step toward 
achievement of zero-discharge requirements. Under all three options, 
the EPA would also eliminate the BAT and PSES subcategorizations for 
high-FGD-flow facilities and LUEGUs. Options A and B would also create 
a subcategory for EGUs that will permanently cease coal combustion no 
later than December 31, 2034, and instead of zero discharge would 
require discharges from these facilities to meet the 2020 rule 
limitations as included in their CWA permit. This subcategory modifies 
the proposed early adopters subcategory and is described further in 
section VII.C of this preamble. Under Option C, the EPA would not 
finalize a subcategory for those EGUs planning to cease coal combustion 
by December 31, 2034. Note that, for all three options, the EPA would 
retain the 2020 subcategory for EGUs permanently ceasing coal 
combustion by 2028.
2. BA Transport Water
    Under all three main options, the EPA would require zero discharge 
of BA transport water based on dry-handling or closed-loop systems and 
retain the 2020 BA transport water limitations and standards as an 
interim step toward achievement of zero-discharge requirements. For all 
three options, the EPA would also eliminate the BAT and PSES 
subcategorizations for LUEGUs. Options A and B would also create a 
subcategory for EGUs that will permanently cease coal combustion no 
later than December 31, 2034, and instead would require discharges from 
these facilities to meet the 2020 rule limitations as permitted. Under 
Option C, the EPA would not finalize this subcategory. Note that, for 
all three options, the EPA would retain the 2020 subcategory for EGUs 
permanently ceasing coal combustion by 2028.
3. CRL
    Under Option A, the EPA would establish BAT limitations and PSES 
for mercury and arsenic based on chemical precipitation treatment. 
Under Options B and C, BAT limitations and PSES would be zero discharge 
and the EPA would establish BAT limitations for mercury and arsenic 
based on chemical precipitation for discharges of unmanaged CRL. 
Options A and B would also create a subcategory for EGUs that would 
permanently cease coal combustion no later than December 31, 2034; CRL 
discharges from EGUs in this subcategory would be subject to case-by-
case BPJ decision-making until permanent cessation of coal combustion, 
after which they would be subject to mercury and arsenic limitations 
based on chemical precipitation. Under Option C, the EPA would not 
finalize this subcategory.
4. Legacy Wastewater
    Under Option A, the EPA would not specify a nationwide technology 
basis for BAT/PSES applicable to legacy

[[Page 40213]]

wastewater at this time and such limitations would be derived on a 
site-specific basis by the permitting authorities, using their BPJ. 
Under Options B and C, the EPA would establish a subcategory for 
discharges of legacy wastewater discharged from surface impoundments 
commencing closure after July 8, 2024. For such discharges, the EPA 
would establish mercury and arsenic limitations based on chemical 
precipitation.

[[Page 40214]]

[GRAPHIC] [TIFF OMITTED] TR09MY24.039


[[Page 40215]]


[GRAPHIC] [TIFF OMITTED] TR09MY24.040

B. Rationale for the Final Rule

    After considering the technologies described in this preamble and 
the TDD, as well as public comments, and in light of the factors 
specified in CWA sections 301(b)(2)(A) and 304(b)(2)(B) (see section IV 
of this preamble), the EPA is establishing BAT effluent limitations 
based on the technologies described in Option B.\27\ While the EPA is 
establishing new BAT effluent limitations for FGD wastewater and BA 
transport water based on more stringent technologies than the 2020 
rule, the EPA is retaining the 2020 rule BAT effluent limitations for 
discharges before the applicability dates for new limitations on these 
wastewaters.
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    \27\ The EPA is including severability language in the final 
rule that makes clear that if any provisions of the final rule are 
reviewed and vacated by a court, it is the EPA's intent that as many 
portions of the rule remain in effect as possible.
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1. FGD Wastewater
    The EPA is identifying zero-discharge systems as the technology 
basis for establishing BAT limitations to control pollutants discharged 
in FGD wastewater.\28\ More specifically, the technology basis for BAT 
is membrane filtration systems, SDEs, and thermal evaporation systems, 
alone or in any combination, including any necessary pretreatment 
(e.g., chemical precipitation) or post-treatment (e.g., 
crystallization).\29\ Furthermore, where a permeate or distillate is 
generated from the final stage of treatment, the BAT technology basis 
uses a process wherein this water would then be recycled back into the 
plant as either FGD makeup water or EGU makeup water.\30\ After 
considering the factors specified in CWA section 304(b)(2)(B), the 
record shows that this suite of technologies is technologically 
available, is economically achievable, and has acceptable non-water 
quality environmental impacts. It is the EPA's intent that these three 
technologies considered together constitute BAT for FGD wastewater, and 
the EPA concludes that this BAT basis meets the requisite statutory 
factors. The EPA also finds, however, that each of the individual 
technologies within this suite supports a BAT determination on its own.
---------------------------------------------------------------------------

    \28\ As described in section VII.B.5 of this preamble, the EPA 
is also finalizing a definitional change to certain wastewaters, 
including FGD wastewater, that excludes discharges necessary as a 
result of high intensity, infrequent storm events, as well as 
wastewater removed from FGD wastewater treatment equipment within 
the first 120 days of decommissioning the equipment.
    \29\ While three main technologies are listed here and are used 
to evaluate costs and non-water quality environmental impacts, the 
list is not meant to exclude use of other known zero-discharge 
treatment processes, including FA fixation, direct encapsulation, or 
evaporation ponds.
    \30\ The 2020 rule finalized a carve out from the definition of 
FGD wastewater applicable to ``treated FGD wastewater permeate or 
distillate used as boiler makeup water.''
---------------------------------------------------------------------------

    In the following subsections, the EPA discusses its rationale for 
selecting three zero-discharge systems as BAT for the control of FGD 
wastewater, as well as how each individual zero-discharge technology 
supports the BAT technology basis on its own. The EPA also explains why 
it is not selecting a less stringent technology as BAT. For further 
discussion of the changes (now being finalized by the EPA) to the 
definition of FGD wastewater related to infrequent storm events and 
decommissioning wastewater, see section VII.B.5 of this preamble. For 
further discussion of the EPA's retention of the 2020 rule limitations 
as interim limitations, see section VII.C.7 of this preamble.
    a. The EPA selects zero-discharge systems as BAT for FGD 
wastewater.
    Technological availability of zero-discharge systems. At proposal, 
the EPA identified membrane filtration as a potential BAT on which to 
base zero-discharge limitations for FGD wastewater, but also solicited 
comment on several other zero-discharge technologies, such as thermal 
evaporation systems and SDEs, that the EPA thought might serve alone or 
in any combination as the BAT basis for a final rule.
    The EPA received many comments that were specific to individual 
zero-discharge technologies, including both comments supporting and 
opposed to a finding of technological availability for these individual 
technologies as part of the BAT basis. Comments supporting zero-
discharge limitations pointed to the large number of operating zero-
discharge plants and pilot studies as evidence that more than just the 
best performing plant or pilot plants are using zero-discharge systems. 
Comments opposing such a finding primarily focused on membrane 
filtration, the EPA's proposed zero-discharge technology basis under 
the preferred regulatory option. The two concerns raised most commonly 
in opposition to the finding of membrane filtration availability were, 
first, that the EPA did not collect sufficient additional information 
to alter its findings in the 2020 rule regarding this technology's 
availability and, second, that the pilot studies and foreign plants 
cited by the EPA were conducted on small FGD wastewater flows that were 
not representative of domestic industry operations. For both membrane 
filtration systems and thermal evaporation systems, commenters who 
opposed a finding of availability also questioned whether back-end 
management options were available for the associated wastes from zero-
discharge systems. To the extent it received comments suggesting that 
waste management alternatives are not available, the EPA has addressed 
these comments in the subsection discussing non-water quality 
environmental impacts, below.
    After consideration of public comments and as further discussed 
below, the EPA is basing its determination that zero-discharge systems 
are available for control of pollutants found in FGD wastewater on the 
numerous full-scale domestic and foreign installations of zero-
discharge systems to treat FGD wastewater, the large number of 
successful domestic and international pilot tests of zero-discharge 
systems on FGD wastewater, successful use of zero-discharge systems on 
other steam electric wastestreams, and the use of zero-discharge 
systems on wastestreams in many different industries besides the steam 
electric power generating industry. Alternatively, the EPA is basing 
its determination that each of the technologies that make up the suite 
of zero-discharge systems forming the BAT basis, standing alone, is 
available on the several full-scale domestic and/or

[[Page 40216]]

foreign installations of each of these technologies to treat FGD 
wastewater and/or the successful domestic and international pilot tests 
of each of these technologies on FGD wastewater. The availability of 
each technology standing alone is also supported by the successful use 
of each of these technologies on other steam electric wastestreams and/
or the use of each of these technologies on wastestreams in different 
industries besides the steam electric power generating industry. The 
weight of the evidence supports the Agency's conclusion that the suite 
of zero-discharge systems (or each of the individual technologies 
alone) are available in the industry to control FGD wastewater 
discharges, notwithstanding certain uncertainties the EPA described in 
the 2020 rule about one of the technologies that form the zero-
discharge BAT technology basis. Agencies have inherent authority to 
reconsider past decisions and to revise, replace, or repeal a decision 
to the extent permitted by law and supported by a reasoned explanation. 
FCC v. Fox Television Stations, Inc., 556 U.S. 502, 515 (2009); Motor 
Vehicle Mfrs. Ass'n v. State Farm Mutual Auto. Ins. Co., 463 U.S. 29, 
42 (1983). A finding that zero-discharge systems are available, or that 
each of the zero-discharge technologies forming the BAT basis is 
available, is also consistent with the technology-forcing nature of BAT 
as described in the legislative history and legal precedents discussing 
this provision (see section IV.B.2 of this preamble).
    Full-scale domestic zero-discharge systems. In the 2020 rule, the 
EPA rejected membrane filtration as a standalone BAT technology basis 
due in part to the lack of a single full-scale domestic installation, 
which is still the case today. In that rule, however, the EPA did not 
evaluate a technology basis that includes the three zero-discharge 
technologies that form this final rule's BAT basis.
    First, the EPA notes that 40 coal-fired power plants in the United 
States currently (as of 2024) operate wet FGD systems and manage their 
wastewater to achieve zero discharge.\31\ These plants achieve zero 
discharge using evaporation ponds, recycling of FGD wastewater, ash 
fixation, thermal evaporation systems (e.g., falling film evaporators), 
or SDEs. About 19 additional plants operated zero-discharge systems for 
FGD wastewater since 2009 but have since retired or converted fuels 
such that the FGD wastewater generation, and associated zero-discharge 
operations, have ceased. In total, more domestic facilities operate, or 
have operated, zero-discharge systems than the biological treatment 
systems used as the 2015 and 2020 rule bases.\32\ Not only are there 
more of these systems, but the systems for which the EPA has 
information have achieved continuous, long-term zero discharge.
---------------------------------------------------------------------------

    \31\ One of these 40 plants, which was already achieving zero 
discharge of its FGD wastewater, is now installing SDE. See <a href="https://www.woodplc.com/insights/articles/engineering-solutions-for-wastewater-treatment">https://www.woodplc.com/insights/articles/engineering-solutions-for-wastewater-treatment</a> (DCN SE10284).
    \32\ The EPA accounted for four plants operating biological 
treatment systems in the 2015 rule analyses (DCN SE05832) and nine 
plants in the 2020 rule analyses (DCN SE08629).
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    With respect specifically to the BAT basis identified in this final 
rule, the EPA finds that there are four U.S. coal-fired power plants 
currently operating full-scale thermal and three U.S. coal-fired power 
plants currently operating full-scale SDE systems.\33\ The full-scale 
domestic application of the technologies identified in the BAT basis 
for this final rule support the EPA's finding that the BAT technology 
basis is available, as that term is used in the CWA. It also supports a 
finding that thermal evaporation systems are technologically available 
on their own and that SDEs are technologically available on their own.
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    \33\ In the 2020 rule and 2023 proposal, the EPA has continually 
deferred to one company's representations that, contrary to 
representations from the technology vendor, its membrane filtration 
system is a long-term pilot system rather than a full-scale 
installation. This is a distinction without a difference, as the EPA 
can rely on both full-scale installations and pilot plants in 
establishing BAT limitations. Therefore, the EPA addresses this 
system in the section on pilot systems below (even though it could 
arguably be used to treat the facility's entire wastestream in the 
future).
---------------------------------------------------------------------------

    Full-scale, foreign zero-discharge systems and zero-discharge pilot 
plants. While the full-scale, domestic operation of zero-discharge 
systems is sufficient to determine availability of the BAT technology 
basis, the EPA has also identified a number of full-scale, foreign 
zero-discharge systems, as well as domestic and international pilot 
systems; these could additionally or separately support the EPA's 
conclusion that the BAT basis identified in this final rule is 
available.
    In 2020, the EPA declined to find that full-scale, foreign 
installations of membrane filtration demonstrated the availability of 
that technology, in large part because the EPA had not visited these 
systems or obtained long-term performance data on them, and thus stated 
there were uncertainties around these applications that prevented a 
finding of availability. At the time of the 2020 rule, the Agency cited 
12 foreign installations of membrane filtration systems on FGD 
wastewater.\34\ These systems began operating as early as 2015, and all 
of them were designed to operate as zero-discharge systems.\35\ 
Importantly, however, the EPA did not dispute the availability of 
thermal evaporation systems in the 2020 rule. This is consistent with 
the record, as even at the time of the 2015 rule, the EPA visited three 
thermal evaporation systems operating in Italy, obtaining relevant 
performance data on these systems, which it then used to establish BAT 
limitations for a voluntary incentive program based on such technology, 
as well as NSPS for FGD wastewater.\36\
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    \34\ ERG. 2020. Technologies for the Treatment of Flue Gas 
Desulfurization Wastewater (DCN SE09218); ERG. 2020. Notes from Call 
with DuPont (DCN SE08618); Beijing Jingneng Power. 2017. Beijing 
Jingneng Power Company, Ltd. Announcement on Unit No. 1 of the Hbei 
Shuoshou Jingyuan Thermal Power Co., Ltd. Passing Through the 168-
hours Trial Operation. November 13 (DCN SE08624); Broglio, R. 2019. 
Vendor FGD Wastewater Treatment Details--Doosan. July 15 (DCN 
SE07107); Lenntech. 2020. Lenntech Water Treatment Solutions. Flue 
Gas Desulfurization Treatment (DCN SE08622); Nanostone. 2019. China 
Huadian Jiangsu Power Jurong Power Plant FGD Wastewater Zero Liquid 
Discharge Project was Awarded the Engineering Star Award. June 27 
(DCN SE08623).
    \35\ Technologies for the Treatment of Flue Gas Desulfurization 
Wastewater, Coal Combustion Residual Leachate, and Pond Dewatering 
(DCN SE11695).
    \36\ This information was also used as the basis for the 2015 
rule NSPS for FGD wastewater.
---------------------------------------------------------------------------

    Some commenters on the 2023 proposal reiterated the EPA's 2020 rule 
findings and argued that EPA has not collected sufficient new 
information on foreign installations of membrane filtration to reverse 
its 2020 findings. EPA first notes that, for this final rule, it has 
modified its BAT basis from proposal to consist of three zero-discharge 
systems (each of which was described in the proposal). Since the 2015 
rule, EPA has collected information not just about membrane filtration 
systems abroad, but also about an additional four thermal evaporation 
systems and six SDE systems operating on FGD wastewater outside the 
United States.\37\ The EPA finds that, when combined with the site 
visits and performance data EPA obtained on the three Italian thermal 
evaporation systems as part of the 2015 rulemaking, the current record 
is more than sufficient to determine, based on full-scale, foreign 
installations, that the suite of systems forming the BAT basis in this 
rule is available as that term is used in the CWA.
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    \37\ Technologies for the Treatment of Flue Gas Desulfurization 
Wastewater, Coal Combustion Residual Leachate, and Pond Dewatering 
(DCN SE11695).

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[[Page 40217]]

    Furthermore, even looking at membrane filtration itself, as the EPA 
noted in the 2023 proposal, the foreign membrane filtration systems 
discussed in the 2020 rule have continued to successfully treat FGD 
wastewater and achieve zero discharge since 2020. Despite commenters 
arguing that this additional information is not important because it 
does not change the overall number of plants known to operate the 
technology or the number of influent and effluent concentration data 
points collected from these plants, the EPA finds that continued 
operations constitute significant new information. This is because the 
longer each zero-discharge system operates, the less probability that 
some yet unknown operational difficulty will appear and the more 
certainty the EPA has that the technology is capable of achieving long-
term zero-discharge treatment of this wastewater. Thus, foreign 
installations of the suite of technologies forming the BAT basis 
support the EPA's conclusion that the BAT basis is available as that 
term is used in the CWA. At the same time, use of thermal evaporation 
systems abroad supports a finding that thermal evaporation systems are 
technologically available on their own, use of SDEs abroad supports a 
finding that SDEs are technologically available on their own, and use 
of membrane filtration systems abroad support a finding that membrane 
filtration is technologically available on its own.
    With respect to pilot studies, the 2020 rule found that pilot 
projects on membrane filtration did not provide sufficient long-term 
concentration data on which to base a finding of availability or 
calculate limitations.\38\ Commenters on the 2023 proposal reiterated 
the EPA's 2020 rule findings and suggested that the EPA had not 
supplemented the record with enough pilot studies to reach a new 
conclusion on availability. The EPA disagrees. The Agency first notes 
that the BAT technology basis in this final rule has been updated to 
consist of three zero-discharge systems. When the 13 thermal pilot 
projects and one SDE pilot project on FGD wastewater in the record are 
combined with the 30 membrane filtration pilots on FGD wastewater 
discussed in the proposed rule (including eight pilot studies conducted 
since the 2020 rule), the EPA has significant evidence of the ability 
of this suite of systems to handle a variety of operating 
conditions.\39\ These domestic and foreign pilots have demonstrated 
success removing pollutants from FGD wastewater under a number of 
pretreatment settings, whether performed without chemical precipitation 
pretreatment, with chemical precipitation pretreatment, or following 
biological treatment.\40\ Furthermore, while some systems will not 
generate a clean permeate or distillate that needs to be handled, those 
that do will recycle this clean water source back into the plant to 
meet the final zero-discharge limitations. Thus, long-term pollutant 
removal information is no longer as relevant as it was in 2020 because 
the EPA is not calculating nonzero limitations in this final rule. 
While this discussion of pilot projects is used to support the 
availability of the BAT technology basis comprised of multiple 
technologies, the large number of successful pilot projects of membrane 
filtration and thermal evaporation systems also supports the EPA's 
finding that these individual technologies are available on their own.
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    \38\ The EPA nevertheless established limitations based on 
membrane filtration technology in the 2020 VIP.
    \39\ One of the systems is a long-term pilot project at one 
facility, which is a commercial-scale system that may have 
sufficient capacity to treat the full FGD wastestream moving 
forward. Nevertheless, because the company is still making changes 
to the operation of the plant's FGD system, has also pilot tested a 
biological treatment system, and has continued to leave the 
possibility of biological treatment for compliance open, the EPA 
defers to the company's characterization of this system as a pilot, 
rather than a domestic, full-scale installation.
    \40\ In one case, a utility conducted a successful membrane 
pilot even when there were significant failures in the performance 
of upstream pretreatment systems leading to excessive TSS 
passthrough to the membrane system.
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    In comments, one recurring criticism of the 2023 proposal was that 
conclusions about membrane filtration system availability should not be 
drawn from foreign installations and pilot plants due to their small 
FGD wastewater flow rates. While the EPA acknowledges that foreign 
installations and pilot plants may have had smaller FGD wastewater flow 
rates than some of the plants the Agency expects would use this 
technology to meet the final limitations in this rule, this does not 
weigh against the EPA considering them as evidence of the technology's 
availability because the record shows that membrane filtration systems 
can be readily modified to handle different flow rates. This same 
comment was raised as far back as the 2015 rule with respect to thermal 
evaporation systems. At that time, the EPA responded to comments on the 
scalability of zero-discharge thermal evaporation systems:

    Additionally, even if the flow rates were smaller, the fact that 
the technology can treat the FGD wastewater demonstrates that the 
system is available, and the size of the system does not matter 
because the system design can be scaled and designed to accommodate 
different flow rates.\41\
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    \41\ U.S. EPA (Environmental Protection Agency). 2015. Effluent 
Limitations Guidelines and Standards for the Steam Electric Power 
Generating Point Source Category: EPA's Response to Public Comments. 
Part 6 of 10. Page 6-40.

    The EPA has not received information since 2015 that suggests that 
technologies are no longer scalable to higher flows. With respect to 
membrane filtration scalability, in particular, the most common system 
design for operating membrane filtration technologies is to place 
modules of these systems in parallel and simply add more and more 
stacks to treat higher and higher flows. Therefore, the EPA concludes 
that use of zero-discharge systems in smaller flow rate pilots and 
full-scale foreign facilities supports the finding that the BAT 
technology basis is available; these uses also support the EPA's 
finding that each of the individual technologies forming the BAT 
technology basis are available on their own.\42\
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    \42\ It is also possible that some plants may choose to treat 
only a slipstream of FGD wastewater with a similarly small flow rate 
to keep the system closed loop.
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    Application to other wastestreams. While the record above is 
sufficient to determine that the BAT basis of several zero-discharge 
systems is available, use of the BAT basis on other wastewaters also 
supports the EPA's finding regarding its availability. In the 2020 
rule, the EPA declined to find that membrane filtration treatment of 
non-FGD wastewaters was sufficient to support a finding of 
availability. In that rule, EPA's conclusions were based on the ways in 
which each non-FGD wastewater appeared different from FGD wastewater. 
The EPA first notes that the BAT basis includes three zero-discharge 
systems, not just membrane filtration. When considering the success 
with which this suite of zero-discharge systems has operated on non-FGD 
wastewater that has similar characteristics to FGD wastewater, the EPA 
views application of these systems to such non-FGD wastewater as 
supporting EPA's conclusion that the suite of zero-discharge 
technologies identified as BAT in this rule is in fact available.
    Examining all three zero-discharge systems that constitute the 
basis for BAT, these systems are used in full-scale applications to 
other wastestreams in the steam electric power sector and other 
industrial sectors. The domestic steam electric power sector applies

[[Page 40218]]

membrane filtration and thermal evaporation systems to EGU makeup 
water,\43\ cooling tower blowdown,\44\ and ash transport water.\45\ 
Other industrial sectors with full-scale applications of membrane 
filtration, thermal evaporation, and SDE systems include the 
textiles,\46\ chemical manufacturing,\47\ mining,\48\ agriculture, \49\ 
oil and gas extraction,\50\ food and beverage,\51\ landfills,\52\ and 
automotive industries.\53\
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    \43\ EPRI (Electric Power Research Institute). 2015. State of 
Knowledge: Power Plant Wastewater Treatment--Membrane Technologies. 
August. 3002002143.
    \44\ See, e.g., Drake, M., Wise, S., Charan, N., Venkatadri, R. 
2012. ZLD Treatment of Cooling Tower Blowdown with Membranes. 
WaterWorld. December 1. Available online at: <a href="https://www.watertechonline.com/process-water/article/16211541/zld-treatment-of-cooling-tower-blowdown-with-membranes">https://www.watertechonline.com/process-water/article/16211541/zld-treatment-of-cooling-tower-blowdown-with-membranes</a> (DCN SE09089); 
ERG. 2019. Final Notes from Meeting with New Logic Research. July 
22. (DCN SE07231) ERG. 2019. Final Aquatech Meeting Notes. July 26 
(DCN SE07389).
    \45\ See, e.g., <a href="https://www.ge.com/in/sites/www.ge.com.in/files/GE_solves_ash%20pond_capacity_issue.pdf">https://www.ge.com/in/sites/www.ge.com.in/files/GE_solves_ash%20pond_capacity_issue.pdf</a> (DCN SE09090).
    \46\ ERG. 2020. Final Notes from Call with DuPont (DCN SE08618).
    \47\ ERG. 2020. Final Notes from Call with DuPont (DCN SE08618); 
U.S. EPA (Environmental Protection Agency). 2022. Notes from Vendor 
Call with Vacom on October 27, 2021. November 14 (DCN SE10367).
    \48\ ERG. 2019. Final Notes from Meeting with Pall Water. March 
5. EPA-HQ-OW-2009-0819-7613; Wolkersdorfer, C., et al. 2015. 
Intelligent mine water treatment--recent international developments. 
July 21 (DCN SE08581); U.S. EPA (Environmental Protection Agency). 
2014. Office of Superfund and Remediation and Technology Innovation. 
Reference Guide to Treatment Technologies for Mining-Influenced 
Water. EPA 542-R-14-001. March (DCN SE08582); ERG. 2019. Final 
Aquatech Meeting Notes. July 26 (DCN SE07389); U.S. EPA 
(Environmental Protection Agency). 2022. Notes from Vendor Call with 
Vacom on October 27, 2021. November 14. (DCN SE10367).
    \49\ U.S. EPA (Environmental Protection Agency). 2022. Notes 
from Meeting with BKT--April 9, 2021 (DCN SE10253).
    \50\ ERG. 2018. Final Oasys Meeting Notes. February 16 (DCN 
SE06915); ERG. 2019. Final Aquatech Meeting Notes. July 26 (DCN 
SE07389); ERG. 2019. Final Veolia Meeting Notes. August 30 (DCN 
SE07818); U.S. EPA (Environmental Protection Agency). 2022. Notes 
from Vendor Call with Purestream on October 26, 2021. November 14 
(DCN SE10366); U.S. EPA (Environmental Protection Agency). 2022. 
Notes from Vendor Call with Vacom on October 27, 2021. November 14 
(DCN SE10367).
    \51\ U.S. EPA (Environmental Protection Agency). 2022. Notes 
from Meeting with BKT--April 9, 2021 (DCN SE10253).
    \52\ ERG. 2019. Sanitized_Saltworks Vendor Meeting Notes--Final 
(DCN SE07089); U.S. EPA (Environmental Protection Agency). 2022. 
Notes from Vendor Call with Heartland on October 19, 2021. September 
26 (DCN SE10291).
    \53\ U.S. EPA (Environmental Protection Agency). 2022. Notes 
from Meeting with ProChem--April 9, 2021 (DCN SE10254).
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    Information in the record indicates that there are many 
similarities between the FGD and the non-FGD wastestreams where zero-
discharge systems have been used. In the 2020 rule record, the EPA 
discussed that cooling tower blowdown at steam electric power plants 
and desalination in oil and gas extraction were examples of where 
membrane filtration has been used in full-scale applications for 
treating high-TDS wastewaters (high-TDS being a characteristic of FGD 
wastewater); 85 FR 64664-64665. The 2020 rule record also established 
that mining wastewaters, which are high in gypsum scaling potential 
(another characteristic of FGD wastewater), have been successfully 
treated with membrane filtration applications. Finally, the 2020 rule 
record established that, despite the high variability in ash transport 
water (a third characteristic of FGD wastewater), it has been 
successfully treated with membrane filtration. This information 
indicates that membrane filtration can operate effectively on 
wastestreams that contain several characteristics of FGD wastewater, 
including high TDS, high gypsum scaling potential, and high 
variability.\54\ The similarities of other wastewaters to FGD 
wastewater are also relevant when considering the successful treatment 
by thermal evaporation systems. Thermal evaporation systems have been 
used to treat mining wastewaters, oil and gas wastewaters, and landfill 
leachate. SDE systems have been used to treat landfill leachate. Thus, 
based on the information, the use of zero-discharge systems on other 
wastestreams supports the Agency's conclusion that the BAT basis of 
zero-discharge systems is available for FGD wastewater discharges. 
These uses also support the Agency's conclusion that membrane 
filtration, thermal evaporation systems, or SDE systems are each 
available on their own.
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    \54\ Use of membrane filtration has since expanded into 
additional applications, treating wastewaters and industries beyond 
those where it was used at the time of the 2020 rule (e.g., the food 
and beverage and automotive industries).
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    For all the foregoing reasons, the EPA finds that the BAT basis of 
zero-discharge systems is technologically available for the control of 
discharges in FGD wastewater. Steam electric power plants have used 
membrane filtration systems to achieve zero discharge of FGD wastewater 
internationally for years, and they have used traditional thermal 
evaporation systems \55\ and SDEs \56\ to achieve zero discharge of FGD 
wastewater domestically and internationally for years, as even recent 
electric utility reports acknowledge.<SUP>57 58 59 60</SUP> The 
widespread use across a variety of configurations of zero-discharge 
systems, when supplemented with the successful domestic and 
international pilot tests and use of such systems on other wastewaters 
in many industries (including the steam electric power generating 
industry itself and including wastewaters with characteristics that are 
similar to the FGD wastestream), further supports EPA's conclusion that 
the suite of zero-discharge technologies identified as the BAT basis in 
this rule is available. While this is not necessary to support its 
prior availability determination, the EPA further finds that any one of 
the technologies making up the BAT basis for FGD wastewater is 
available as that term is used in the Act. For membrane filtration, 
availability is demonstrated through full-scale use of membrane 
filtration abroad and in pilot projects both domestically and abroad, 
as well as its application to other wastestreams. For thermal 
evaporation, availability is demonstrated through use of full-scale 
thermal evaporation systems domestically and abroad and pilot projects 
both domestic and abroad, as well as their application to other 
wastestreams. For SDE systems, availability is demonstrated through use 
of full-scale SDE systems domestically and abroad, as well as their use 
in at least one known pilot project and application to a non-FGD 
wastestream.
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    \55\ The Italian thermal evaporation systems discussed first in 
the 2013 proposed rule have been in operation for over a decade.
    \56\ Spray dry absorbers, effectively the same technology as the 
SDE, have been in use for decades to capture the same pollutants 
present in FGD wastewater.
    \57\ ``Proven technology (considered BAT for new sources by 
EPA). 3+ U.S. installations and 6+ European installations by 
Aquatech'' (DCN SE07206).
    \58\ DCN SE10234.
    \59\ DCN SE09998.
    \60\ EPRI (Electric Power Research Institute). 2017. Thermal 
Evaporation Technologies for Treating Power Plant Wastewater: A 
Review of Six Technologies. 000000003002011665 (DCN SE06971).
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    Reliance interests in connection with 2020 BAT technologies. 
Several commenters on the 2023 proposal criticized EPA for continuing 
to support implementation of the 2020 rule while simultaneously 
revising that rule with potentially more stringent limitations. These 
commenters stated that utilities relied upon materials announcing the 
Agency's decision to reconsider the 2020 rule and statements in the 
2023 proposal which both confirmed that utilities should continue to 
implement the 2020 rule. Thus, in reliance, utilities claimed that they 
have continued to install compliant technologies and that such reliance 
should lead the EPA to a decision not to finalize more stringent BAT 
for these wastewaters. In the

[[Page 40219]]

alternative, some commenters recommended that such facilities reliance 
on, and compliance with, the 2020 rule should lead the EPA to build in 
additional flexibility for any more stringent BAT. Suggested 
flexibilities focused on subcategorization or longer timeframes for 
cost recovery before installation of more stringent technologies.
    The EPA agrees that such reliance interests should be 
considered.\61\ The EPA disagrees, however, with commenters who 
suggested these interests mean the Agency must retain only the 2020 
limitations in all cases. First, no NPDES permittee has certainty of 
its limitations beyond its five-year NPDES permit term, as reissued 
permits must incorporate any newly promulgated technology-based 
limitations as well as potentially more stringent limitations necessary 
to achieve water quality standards. See 40 CFR 122.44(a) and (d). The 
statute is designed for both technology-based and water quality-based 
effluent limitations to be revisited in each permit and, when 
necessary, revised consistent with these provisions and in light of the 
goal of ultimately eliminating pollutant discharges from point sources 
into WOTUS. See CWA section 101, 33 U.S.C. 1251.
---------------------------------------------------------------------------

    \61\ The Supreme Court has held that, while an agency may change 
policies based upon a reasoned explanation, where a prior policy has 
engendered serious reliance interests, those interests must be taken 
into account. FCC v. Fox Television Stations, Inc., 556 U.S. at 515 
(citation omitted).
---------------------------------------------------------------------------

    Moreover, the EPA has included enough time for facilities to build 
in any reasonable reliance interest. As discussed in section VII.E of 
this preamble, the Agency is finalizing a ``no later than'' date for 
the new FGD wastewater BAT limitations of December 31, 2029. Having a 
``no later than'' date approximately five-and-a-half years following 
promulgation allows facilities to rely on permitted limitations for the 
remainder of any permit existing as of the effective date of this final 
rule.
    Third, the EPA has considered the arguments that facilities have 
unrecoverable costs, particularly for biological treatment systems that 
the final rule may render obsolete, by evaluating both the existing 
costs of the 2020 rule and the costs of this final rule together in the 
IPM analysis. As discussed in sections VII.F and VIII.C, the EPA uses 
IPM to analyze electric sector impacts.\62\ IPM shows small impacts 
across the industry and leads the EPA to the conclusion that even the 
cumulative cost of the two technologies is economically achievable 
(this concept is explained in section VII.F of this preamble). Where 
more stringent technologies are available, are economically achievable, 
and have acceptable non-water quality environmental impacts as zero-
discharge systems do here, the fact that facilities may have to spend 
more to supplement or replace existing treatment systems, even 
relatively new ones, is not a sufficient reason on its own to reject 
selection of the technology.
---------------------------------------------------------------------------

    \62\ While this modeling illustrates how the sector may comply 
with the rule, the EPA notes that the rule does not require any 
facilities to close.
---------------------------------------------------------------------------

    Lastly, to the extent that the facilities claiming to be most 
impacted by having to add treatment are those that will be permanently 
ceasing coal combustion by 2034, the EPA has created a new subcategory 
for these facilities that would allow them to continue to meet only the 
2020 BAT limitations and thereby avoid recovering the costs of two 
treatment systems (i.e., biological treatment and a zero-discharge 
system), each one designed to meet the requirements of the 2020 or 2024 
rules, over the facility's short remaining useful life. EPA anticipates 
that approximately nine EGUs may be able to avail themselves of this 
subcategory with respect to FGD wastewater.\63\
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    \63\ Additional EGUs are projected to participate in this 
subcategory for BA transport water and CRL as discussed in the 
sections below.
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    Economic achievability of zero-discharge systems. The EPA finds 
that the costs of zero-discharge systems for control of FGD wastewater 
are economically achievable. The 2020 rule cited the increased cost of 
membrane filtration as compared to the selected technology basis as a 
reason for rejecting membrane filtration \64\ but did not find that the 
costs of membrane filtration were not economically achievable at that 
time. The EPA also declined in the 2020 rule to establish BAT based on 
thermal evaporation systems, which the Agency stated were 2.4 times the 
costs of the 2020 BAT technology basis of chemical precipitation plus 
low-residence-time-reduction biological treatment and 1.04 times the 
cost of membrane filtration. The Agency said that these costs were 
unreasonably high, and it cited this finding, together with the costs 
that the industry was facing due to other EPA rules, to reject thermal 
technologies as not economically achievable.
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    \64\ While the relative costs of technologies differ from plant 
to plant, the 2020 rule acknowledged, and additional information 
obtained during the 2022 information collection confirms, that, in 
some cases, technologies such as membrane filtration may be less 
costly than biological treatment at individual plants even where, on 
average, they would be more expensive to the industry as a whole.
---------------------------------------------------------------------------

    After updating the cost analysis and IPM modeling for the final 
rule, the EPA finds that the costs of the BAT basis of zero-discharge 
systems for FGD wastewater are economically achievable for the 
industry, as discussed further below and in sections VII.F and VIII. 
Furthermore, the EPA notes that the estimates in IPM are conservative 
with respect to FGD wastewater. To the extent that costs would have 
been lower at six plants had the EPA used certain CBI costs for thermal 
evaporation systems in its primary cost analysis, the economic impacts 
modeled in IPM at these plants are overestimated.\65\
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    \65\ To the extent that cost estimates for individual 
technologies are roughly of the same magnitude as indicated in the 
primary cost analysis, these costs would not be expected to alter 
the findings on economic achievability, even if the Agency were to 
rely on any one of the zero-discharge technologies as a standalone 
BAT basis.
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    Non-water quality environmental impacts of zero-discharge systems. 
The EPA finds that the non-water quality environmental impacts of zero-
discharge systems are acceptable.
    The EPA proposed to find that the non-water quality environmental 
impacts of membrane filtration are acceptable. Specifically, the EPA 
proposed to reverse findings from the 2020 rule regarding FA use to 
encapsulate the brine generated by membrane filtration. The EPA also 
solicited comment on the non-water quality environmental impacts of 
other zero-discharge systems that might be used as a BAT technology 
basis.
    Some commenters raised concerns relating to the non-water quality 
environmental impacts of zero-discharge systems. Specifically, 
commenters expressed concerns that the EPA had incorrectly evaluated FA 
availability because it did not use the most recent EIA data (which 
demonstrates that there is not enough FA available for brine 
encapsulation), did not use proper brine generation and encapsulation 
blending rates, and did not account for the costs of lost FA sales. 
Other commenters questioned the technological availability of one 
method of handling the solid waste generated from zero-discharge 
technologies--brine encapsulation--claiming that it has not been 
demonstrated to adequately retain pollutants in a landfill and, 
furthermore, that a particular form of brine encapsulation (paste 
encapsulation) has not been demonstrated and may not satisfy current 
disposal requirements. Finally, commenters claimed that pollutants in 
encapsulated brines and unencapsulated salt crystals could be

[[Page 40220]]

remobilized in a landfill setting or could damage the landfill-liner 
system. While some comments argued these disposal issues spoke to 
availability of the zero-discharge technology, the EPA views this 
rather as a non-water quality environmental impact (solid waste 
disposal issue) that it must consider. After considering these comments 
and the record, the EPA finds that the non-water quality environmental 
impacts of zero-discharge systems are acceptable.
    With respect to comments on FA availability, the EPA agrees with 
commenters that it should evaluate the most recent EIA data, brine 
generation data, and data on encapsulation blends. Therefore, the EPA 
has updated its analysis to consider the most recent information in 
2024 Steam Electric Supplemental Final Rule: Fly Ash Analysis (DCN 
SE11692). As noted in that document, FA sold for beneficial use 
fluctuates from year-to-year, but over the last five years the amount 
sold would still be less than the amount available for sale even after 
assuming that every plant uses FA to encapsulate brine from an FGD 
wastewater and/or CRL treatment system. Thus, the EPA does not expect 
that under worst-case scenarios the use of FA to encapsulate brine 
would hamper the fly ash sales market, let alone constitute an 
unacceptable non-water quality environmental impact.
    Furthermore, the assumption that all facilities use membrane 
filtration and generate a brine for encapsulation represents a 
conservative estimate on FA usage. The EPA has updated its cost 
estimates as discussed in section VIII and section 5 of the TDD. These 
revised cost estimates consist of least-cost analysis across the 
various zero-discharge systems. Part of this update also included 
adjustments to better account for the amount of FA available for 
encapsulation, brine generation rates, and brine encapsulation blends, 
all to respond to commenters and improve the accuracy of the Agency's 
analysis. The EPA finds that the now higher costs of membrane 
filtration lead thermal and SDE systems to be a less costly option at 
many plants. This finding is consistent with cost information received 
from some companies showing that membrane filtration would not be the 
least-cost technology. As a result of this analysis selecting non-
membrane systems at a number of plants, the assumptions of FA usage 
presented above can be seen as a likely worst-case scenario. To the 
extent that FA sales would be even less hampered than the scenario 
already found to be acceptable above, it would only further support the 
Agency's conclusion that FA use in brine encapsulation has acceptable 
non-water quality environmental impacts. For a further discussion of 
EPA's revised cost estimates, see section 5 of the TDD.
    With respect to comments about potential remobilization of 
pollutants from brine encapsulation and demonstration of paste 
encapsulation; as far back as the 2015 rule, the EPA pointed to 
multiple waste-handling alternatives that were being employed by 
facilities with zero-discharge systems. Some facilities at that time 
used the brine generated by thermal systems to condition ash for 
disposal. In the 2020 rule record, the EPA discussed facilities that 
directly engage in FA fixation of the FGD wastewater for this purpose, 
skipping the volume reduction step that a membrane or thermal system 
would offer (see section 4.1.5 of the 2020 TDD, DCN SE08650). When 
commenters express concern that contaminants from encapsulated brines 
could be remobilized, these comments assume less processing than EPA 
contemplates. The commenters reference situations where FGD wastewater 
or brine are merely used to condition ash without employing the further 
pozzolanic reactions that the EPA expects to occur in the full 
encapsulation process and that EPA included in its cost estimates of 
zero discharge. Encapsulation studies demonstrate that concentrations 
of leachate pass leachate toxicity tests and are of lower concentration 
than raw FGD wastewater. Encapsulation would also result in far less 
remobilization than exiting ash conditioning practices. Furthermore, to 
the extent that the EPA considered and discussed paste encapsulation, 
it was as a potentially cost-saving alternative to these conditioning 
and encapsulation techniques that are already well-demonstrated. Thus, 
to the extent that it is a less costly solid waste management 
alternative, it only provides the promise of cost savings compared to 
the EPA's estimates, but the EPA does not rely on this particular form 
of brine encapsulation in determining that solid waste disposal issues 
as a whole have acceptable non-water quality environmental impacts.
    Even if brine encapsulation had not been adequately demonstrated as 
a solid waste handling practice, other solid waste handling 
alternatives are available. For example, facilities in the 2015 and 
2020 rule records took the brine generated from a thermal system all 
the way down to a salt crystal using a crystallizer (DCN SE11695). The 
EPA evaluated these costs in the FGD Wastewater, CRL, and Legacy 
Wastewater Zero Discharge Treatment Technologies Costs, Loadings, and 
Non-Water Quality Environmental Impacts file (DCN SE11709) as an 
alternative and found it would increase annualized costs by three 
percent. These slightly higher overall costs would still be 
economically achievable.\66\
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    \66\ Facilities could also consider deep-well injection of their 
brine. The EPA found that these costs on a nationwide basis would be 
three times the costs of encapsulation, and so are unlikely to be 
pursued by most facilities, though this too would constitute an 
alternative disposal practice available for the management of brine.
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    With respect to comments about remobilization of pollutants, the 
EPA agrees with commenters that pollutants in a landfill can be 
remobilized through percolation of rainwater through the disposed solid 
wastes. These solid wastes would include not only any encapsulated 
brines but also certain solids and salt crystals that would be disposed 
of following use of some thermal and SDE alternatives where no brine is 
generated. Here, absent the pozzolanic reactions from either ash 
conditioning or encapsulation, remobilization of pollution is more 
possible as rainfall percolates through these disposed solids. 
Nevertheless, proper landfill management is designed to reduce 
infiltration of water through a landfill and to capture leachate that 
makes it to the liner at the bottom of a landfill. The EPA received no 
comments that the facilities already generating these solids and salts 
have failed to properly operate their landfills such that contaminants 
were remobilized into the environment. Even where remobilization can 
reduce the overall effectiveness of the pollution treatment systems, as 
discussed in section VII.B.3 of this preamble, the EPA is also 
finalizing zero-discharge limitations for CRL during the life of the 
plant, unless they are discharges of unmanaged CRL.\67\ This is 
designed to further ensure that these pollutants are kept in the 
landfill to the maximum extent possible rather than remobilized and 
released into the environment.
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    \67\ Note that the EPA is finalizing zero-discharge limitations 
for CRL, except as specified in the subcategories discussed in 
sections VII.C.4 and C.5. Where lined WMUs collect and treat CRL to 
zero-discharge standards during a facility's operation, permeate and 
distillate can be used to condition CCR for disposal in these WMUs.
---------------------------------------------------------------------------

    Many of the facilities presented in the record as having zero-
discharge systems have also successfully disposed of conditioned ash or 
FGD solids in landfills for years. The record supports that a properly 
designed, installed, and maintained landfill can operate as intended. 
As the EPA learned during implementation of the CCR rule, many

[[Page 40221]]

historical CCR landfills may suffer from the lack of an adequate liner 
system. However, the Agency has no evidence that, where liners are 
properly designed, installed, and maintained, they are incompatible 
with the additional pollutants in FGD wastewater that zero-discharge 
systems would capture.\68\
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    \68\ In contrast, FGD gypsum is already removed from FGD 
wastewater before discharge and is known to loosen clay soils which 
sometimes form the base of older landfills designed without 
composite liners.
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    Finally, the EPA finds that, even to the extent that there are any 
negative non-water quality environmental impacts, the positive non-
water quality environmental impacts outweigh the negative ones. In 
particular, the EPA estimates that there are significant decreases in 
air pollution and water withdrawals \69\ as a result of this rule. 
While the rule is not being promulgated to reduce these impacts, these 
resulting non-water quality environmental impacts further support the 
Agency's conclusion that zero-discharge systems for FGD wastewater are 
BAT.
---------------------------------------------------------------------------

    \69\ Reduced water withdrawals could also lead to reduced 
impingement and entrainment.
---------------------------------------------------------------------------

    b. The EPA rejects less stringent technologies than zero-discharge 
systems as BAT for FGD wastewater.
    Except for the new permanent cessation of coal combustion by 2034 
subcategory discussed in section VII.C.4 of this preamble, and for 
discharges before the applicability dates of the new zero discharge-
requirements in this final rule, the EPA is not selecting chemical 
precipitation followed by a low hydraulic residence time biological 
treatment including ultrafiltration, as the BAT technology basis. BAT 
is the ``gold standard'' for controlling water pollution from existing 
sources, and the Supreme Court has explained that BAT must achieve 
``reasonable further progress'' toward the CWA's goal of eliminating 
pollution. See Southwestern Elec. Power Co. v. EPA, 920 F.3d at 1003, 
1006 (citing Nat'l Crushed Stone v. EPA, 449 U.S. 64, 75 (1980)). The 
record shows that the 2020 rule industrywide BAT technology basis for 
FGD wastewater removes fewer pollutants than the zero-discharge BAT 
technology basis identified in this final rule that has been found to 
be technologically available, be economically achievable and have 
acceptable non-water quality environmental impacts.\70\ Similarly, 
except for the permanent cessation of coal combustion by 2028 
subcategory discussed in section VII.C.3 of this preamble, the EPA is 
not identifying the less stringent (and previously rejected in the 2015 
and 2020 rules) technologies of surface impoundments or chemical 
precipitation, as these technologies too will remove fewer pollutants 
than the BAT technology basis in this rule.
---------------------------------------------------------------------------

    \70\ In contrast, nothing in the record or public comments 
indicates that chemical precipitation plus low hydraulic residence 
time biological reduction has ceased to be available, be 
economically achievable, and have acceptable non-water quality 
environmental impacts for discharges before the applicability dates 
of the new, more stringent limitations of this rule.
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2. BA Transport Water
    The EPA is identifying the zero-discharge systems of dry-handling 
or closed-loop systems as the technology basis for establishing BAT 
limitations to control pollutants discharged in BA transport water.\71\ 
Specifically, dry-handling systems include both waterless air-cooled 
conveyor systems and pneumatic systems, as well as under-boiler 
mechanical drag systems (e.g., submerged chain conveyors) and submerged 
grind conveyors (e.g., compact submerged conveyors), which use quench 
water to cool the ash but immediately remove the ash without generating 
BA transport water. Closed-loop systems consist of remote mechanical 
drag systems that actively sluice the ash (i.e., transport the ash with 
water) and are paired with any necessary storage tanks, chemical 
addition systems, and/or RO treatment necessary to fully recycle BA 
transport water except during high intensity, infrequent storm events 
as discussed below.\72\ The EPA finds that these technologies are 
technologically available, are economically achievable, and have 
acceptable non-water quality environmental impacts after evaluating the 
factors specified in CWA section 304(b)(2)(B).
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    \71\ As described in section VII.B.5 of this preamble, the EPA 
is also finalizing a definitional change to certain wastewaters, 
including BA transport water, that excludes discharges necessary as 
a result of high intensity, infrequent storm events, as well as 
wastewater removed from ash handling equipment within the first 120 
days of decommissioning the equipment.
    \72\ In addition to remote MDSs, non-BAT technologies include 
many dewatering bins (also known as hydrobins), and surface 
impoundments may also have the flexibility to operate as closed-loop 
systems. Like remote MDSs, the latter systems may need to install 
chemical addition systems (acid, caustic, and/or flocculants), RO 
systems, and/or additional storage tanks to operate as fully closed 
loop.
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    In the 2020 rule, the EPA rejected dry-handling or closed-loop 
systems as the BAT technology basis in favor of high-recycle-rate 
systems with a site-specific purge allowance of up to 10 percent of the 
BA transport water system's volume to address four potential purge 
needs.\73\ The EPA justified this change in BAT due to process changes 
plants were making to comply with the CCR regulations, as well as the 
additional costs of dry-handling or closed-loop systems. In the 2023 
proposal, the EPA reevaluated the four asserted purge needs relied upon 
in establishing the 2020 purge, and for each asserted purge need, the 
Agency explained why the record no longer supported that these purges 
should be part of the BAT technology basis. As a result, the EPA 
proposed returning to the dry-handling or closed-loop systems that 
served as the BAT technology basis in the 2015 rule.
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    \73\ The four asserted purge needs related to precipitation, 
maintenance, water chemistry, and water balance.
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    The EPA received comments both supporting and criticizing the 
proposed return to the BAT basis of dry-handling or closed-loop systems 
selected in the 2015 rule. Comments supporting the EPA's proposal to 
return to the 2015 BAT technology basis for BA transport water focused 
on the lack of evidence in the record of facilities with a demonstrated 
need to purge BA transport water. These comments also focused on the 
legal standard that BAT represents the best performing plant, arguing 
further that the EPA has never disputed that the best performing plant 
can achieve zero discharge. Comments opposing the return to the 2015 
rule standard reiterated the four potential purge needs discussed in 
the 2020 rule. In the alternative, these commenters asked the EPA to 
formulate flexibilities for purges that in practice might be more or 
less flexible than the site-specific 10 percent volumetric purge 
allowance arrived at in the 2020 rule.
    Commenters also responded to the EPA's solicitation about the 
potential disparity between the purges from closed-loop systems and the 
purges from under-boiler ``dry'' handling systems that still use quench 
water. These comments asked EPA not to further regulate quench water 
from under-boiler systems because the water is not used to transport 
ash and these facilities had relied on the quench water from dry-
handling systems being treated as a ``low volume waste source'' rather 
than BA transport water.
    After considering all public comments and the EPA's extensive 
record in light of the statutory factors, and as explained below, the 
EPA finds that dry-handling or closed-loop systems are available and 
economically achievable, and that they have acceptable non-water 
quality environmental impacts. Therefore, the

[[Page 40222]]

EPA is selecting dry-handling or closed-loop systems as the BAT 
technology basis for BA transport water but is retaining the 2020 rule 
limitations for discharges before the applicability dates of the new 
zero-discharge requirement.
    In the first subsection immediately below, the EPA discusses its 
rationale for selecting dry-handling or closed-loop systems as the BAT 
technology basis for BA transport water. In the following subsection, 
the EPA explains why it is not selecting less stringent technologies 
than dry-handling or closed-loop systems as the BAT technology basis 
for BA transport water. In the final subsection, the EPA discusses the 
definition of BA transport water and why, in light of the record, it 
declines to change how under-boiler ``dry'' systems with a discharge 
are regulated. For further discussion of the definitional changes to BA 
transport water that are being finalized with respect to high 
intensity, infrequent storm events, as well as decommissioning 
wastewater, see section VII.B.5 of this preamble. For further 
discussion of the EPA's retention of the 2020 rule limitations as 
interim limitations, see section VII.C.7 of this preamble.
    a. The EPA selects dry-handling or closed-loop systems as BAT for 
BA transport water.
    Technological availability of dry-handling or closed-loop systems. 
Based on the record, the EPA finds that dry-handling or closed-loop 
systems are technologically available. At the time of the 2020 rule, 
the EPA estimated that more than 75 percent of plants already employed 
dry-handling systems or wet-sluicing systems in a closed-loop manner, 
or they had announced plans to switch to such systems soon. Some of 
these systems have been in use since the 1970s, and today, most 
facilities have installed one or more such systems.\74\ The high 
percentage of plants employing these systems indicates that they are 
technologically available.
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    \74\ One vendor estimates that only seven ash conversions remain 
in the entire industry.
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    In the 2015 and 2020 rule preambles, the EPA discussed the 
widespread use of dry-handling systems for control of BA transport 
water servicing about 200 EGUs at over 100 plants. In the 2020 rule, 
the EPA also discussed advances in dry BA handling systems. 
Specifically, the Agency discussed a newer technology called submerged 
grind conveyors (one example of which is called a compact submerged 
conveyor). At the time, compact submerged conveyors were known to be 
installed and in operation at two plants. The EPA has since learned 
that an additional plant has installed compact submerged 
conveyors.<SUP>75 76</SUP> In addition to the increased use of compact 
submerged conveyors, a higher number and broader array of dry-handling 
systems are currently in place than the EPA originally forecasted. For 
example, as indicated in the 2020 rule record, one utility commented 
that it had space constraints at a facility that would preclude the 
installation of a compact submerged conveyor, and the EPA thus 
projected that this facility would employ a high recycle rate system 
under the 2020 rule. After the 2020 rule, however, that utility 
ultimately installed a different dry-handling system--which highlights 
the broad array of dry-handling options available for coal-fired power 
plants, regardless of their configuration. Even where space constraints 
may prohibit certain dry systems, a plant could use a pneumatic system, 
albeit at a somewhat greater cost. The 2020 rule record included 
information on 50 pneumatic installations from as early as 1992. Given 
that BAT is to reflect the best performing plant in the field, 
Kennecott v. EPA, 780 F.2d at 447, and that the facts in the record 
support the use of dry-handling technology to achieve zero discharge of 
BA transport water, it is likely the EPA could have selected dry-
handling systems as the sole technology basis for control of BA 
transport water. Nonetheless, as it did in the 2015 rule, the EPA is 
also identifying closed-loop systems as a BAT technology basis for 
controlling discharges of BA transport water, given that a limited 
number of plants may find that option to be more attractive due to 
space constraints and lower costs when compared to a pneumatic system.
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    \75\ Some utilities have even suggested that the discussion of 
compact submerged conveyors in the final 2020 rule preamble and 
additional compliance timeframes have led them to consider these 
newer dry systems rather than a previously contemplated high-
recycle-rate/closed-loop system.
    \76\ Final Burns & McDonnell Meeting Notes (DCN SE10248).
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    After the 2015 rule and during the 2020 rulemaking, certain 
industry representatives argued that there are challenges to operating 
a closed-loop BA handling system in a truly zero-discharge manner. They 
argued that closed-loop systems, including remote MDS and dewatering 
bins, cannot maintain fully closed-loop operations due to chemistry 
issues or water imbalances in the system, such as those that might 
occur from unexpected maintenance or large precipitation events. Even 
accounting for these issues, however, the 2020 rule did not find that 
closed-loop systems are not technologically available. Information in 
the EPA's 2020 rule record indicated that plants can operate their 
closed-loop systems to achieve zero discharge, although this could 
require some process changes and their resulting costs. Instead, the 
Agency rejected this technology as a basis for BAT based process 
changes happening at plants to comply with the CCR regulations 
(addressed further below), while also noting the additional costs over 
the 2015 rule's estimates. As explained below, the record indicates 
that closed-loop BAT handling systems are economically achievable. See 
section VIII of this preamble for a further discussion of costs 
associated with the closed-loop system technology basis.
    In the 2020 rule, the EPA discussed four potential challenges with 
maintaining closed-loop systems: (1) managing non-BA transport water 
inflows, (2) managing precipitation-related inflows, (3) managing 
unexpected maintenance events, and (4) maintaining water system 
chemistry. The 2023 proposal discussed these issues at length, 
including why EPA did not view them as a basis for rejecting zero-
discharge requirements. As explained in the proposal and further 
discussed below, based on the current record, the EPA continues to view 
none of these previously discussed challenges as providing a basis for 
rejecting closed-loop systems as not technologically available, 
although these issues may in certain circumstances require a plant to 
incur additional costs (which are found to be economically achievable) 
or to have an infrequent precipitation-related discharge (which would 
be addressed by the definitional changes the EPA is finalizing in this 
rule).
    First, in 2020, the EPA stated that managing non-BA transport water 
inflows had the potential to result in water imbalances within a 
closed-loop system. In the 2023 proposal, the EPA found that closed-
loop systems can be sized to handle additional wastestreams. The EPA 
received comments reiterating the 2020 rule findings; however, none of 
these comments provided specific data or information demonstrating that 
even one system cannot handle non-BA transport water inflows. Thus, EPA 
is maintaining its finding from proposal that a purge in response to 
water imbalance due to management of other wastestreams is not 
necessary.
    Second, in 2020, EPA stated that managing precipitation-related 
inflows had the potential to result in water imbalances in the BA 
handling system. At proposal, EPA found that precipitation-related 
inflows can be

[[Page 40223]]

adequately managed with design improvements, including the use of 
roofing where appropriate. The 2015 BAT technology basis and 2020 rule 
remote MDS technology designs included covers to avoid collecting 
precipitation, and the costs for covers were included in the associated 
cost analysis. The EPA received comments on the 2023 proposal 
reiterating the 2020 rule findings; however, none of these comments 
provided specific data or information demonstrating that even one 
system cannot handle common precipitation-related inflows.\77\ To the 
extent that a plant experiences precipitation-related inflows as a 
result of a 10-year storm event of 24-hour or longer duration (e.g., a 
10-year, 30-day storm event), the EPA is finalizing a definitional 
change discussed in section VII.B.5 of this preamble.
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    \77\ In one comment, a utility suggested that it could not 
employ roofing at its plant without jeopardizing the necessary 
cooling of the BA, but this plant did not provide any data showing 
that it could not manage this heat transfer with standard heating, 
ventilation, and air conditioning (HVAC) equipment.
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    The 2020 rule mentioned a third previously discussed challenge to 
operating a remote MDS as a closed-loop system: the possibility of 
infrequent maintenance events that might fall outside the 2015 rule 
exclusion of ``minor maintenance'' and ``leaks'' from the definition of 
BA transport water. EPRI <SUP>78 79</SUP> listed several such 
maintenance events; most were expected to occur less than annually. 
EPRI provided information about the estimated frequency and volume of 
water associated with each maintenance event; however, EPRI did not 
provide information about a specific remote MDS unable to manage these 
maintenance events with existing maintenance tanks. In the 2023 
proposal, the EPA found that maintenance could be managed within a 
closed-loop system. Furthermore, even where maintenance wastewater 
volumes are too large to be managed in existing maintenance tanks, 
utilities can, at additional cost, lease storage tanks for short-term 
maintenance where these infrequent maintenance events are foreseeable. 
Commenters did not provide any information on maintenance activities 
that would require a purge if facilities properly planned and executed 
regular operation and maintenance (O&M). Thus, the EPA is maintaining 
its finding from proposal that a purge of BA transport water for 
maintenance is not necessary.
---------------------------------------------------------------------------

    \78\ EPRI, 2018. Closed-Loop Bottom Ash Transport Water: Costs 
and Benefits to Managing Purges (DCN SE06920).
    \79\ EPRI, 2016. Guidance Document for Management of Closed-Loop 
Bottom Ash Handling Water in Compliance with the 2015 Effluent 
Limitations Guidelines (DCN SE06963).
---------------------------------------------------------------------------

    The final engineering challenge discussed in the 2020 rule record 
with respect to closed-loop systems was the need to maintain water 
system chemistry. The 2020 rule discussed potentially problematic 
system chemistries, such as extreme acidic conditions, high scaling 
potential, and the buildup of fine particulates that could clog pumps 
and other equipment. The 2015 closed-loop system BAT design basis 
included a chemical addition system to manage these system chemistries, 
as does the BAT basis in this final rule. In particular, corrosivity 
can be managed through pH adjustment, scaling can be managed with acid 
and/or antiscalants, and fines can be further settled out with polymers 
and other coagulants. EPRI has documented that some systems have gone 
slightly further, pairing the chemical addition systems with changes in 
operations, such as higher flow rates or longer contact time. Some 
commenters on the 2023 proposal suggested that systems would not be 
able to manage these chemistry problems but did not provide information 
supporting this assertion. In the absence of information, the EPA finds 
that, even assuming that the previously mentioned strategies would not 
apply at a given plant, the same slipstream of purge allowed under the 
2020 rule could be treated with RO and recycled back in as clean makeup 
water. The EPA has considered these additional costs as discussed in 
sections VII.F and VIII, and outside the additional cost (which is 
found to be economically achievable), there is no record evidence that 
this chemistry-related challenge cannot be overcome with reasonable 
steps. Therefore, this concern does not provide a basis for rejecting 
closed-loop systems as BAT.
    For all the foregoing reasons, the EPA finds that the record 
indicates that dry-handling or closed-loop systems are technologically 
available for control of discharges in BA transport water.
    Economic achievability of dry-handling or closed-loop systems. The 
EPA finds that the costs of dry-handling or closed-loop systems are 
economically achievable. In the 2020 rule, the EPA cited the costs of 
closed-loop systems as an additional basis for selecting high recycle 
rate systems. In the 2020 rule, the EPA noted that it had 
``conservatively'' estimated costs of $63 million per year based on all 
facilities using a remote MDS needing a 10 percent purge to be treated 
with RO in order to achieve complete recycle (i.e., zero discharge 
operations). The EPA never found, however, that the additional costs to 
achieve zero discharge were not economically achievable.
    The EPA's updated cost estimates demonstrate that, after including 
the costs of treating all wastestreams--including achieving zero 
discharge for BA transport water--the final rule would result in 
minimal economic impacts. (For further information, see sections VII.F 
and VIII.) After considering these results, the EPA finds that these 
additional costs are economically achievable as that term is used in 
the CWA.
    Non-water quality environmental impacts of dry-handling or closed-
loop systems. The EPA finds that the non-water quality environmental 
impacts associated with dry-handling or closed-loop systems for 
controlling BA transport water discharges are acceptable. See sections 
VII.G and X below for more details.
    Process changes associated with dry-handling or closed-loop 
systems. In the 2020 rule, the EPA also rejected dry handling or 
closed-loop systems due to process changes happening at steam electric 
facilities as they moved toward compliance with the CCR regulations. 
The EPA stated that, as plants close their surface impoundments under 
the CCR regulations, they may choose to send certain non-CCR 
wastewaters to their BA handling system. This was said to potentially 
complicate their efforts to fully close their BA handling systems due 
to increased scaling, corrosivity, or plugging of equipment. 
Alternatively, a closed-loop requirement might incentivize plants to 
discharge their non-CCR wastes rather than send them to their BA 
handling systems for control, in which case they would be subject to 
less stringent requirements governing low volume waste sources. The EPA 
also suggested that requiring limitations based on closed-loop systems 
could result in plants using their surface impoundments longer, 
assuming plants cannot build alternative storage capacity and need to 
continue to send their non-CCR wastes to unlined impoundments.
    The rationale in the 2020 rule is no longer persuasive as a reason 
to select high recycle rate systems rather than dry-handling or closed-
loop systems because the changes happening at plants under the CCR 
regulations are expected to be complete by the time the final BAT 
limitations apply to any given plant. In particular, the final rule BA 
transport water requirements will be included in NPDES permits with an 
applicability date of no later than December 31, 2029. This is over a 
decade after the

[[Page 40224]]

promulgation of the 2015 CCR rule and eight years after even the 
revised CCR surface impoundment deadline of April 11, 2021, by which 
facilities were required to cease receipt of all wastes into their 
unlined CCR surface impoundment.\80\ As of the publication of this 
rule, most facilities have already completed conversions of their 
leaking, unlined CCR surface impoundments under the CCR regulations, 
which means that they no longer rely on these unlined surface 
impoundments as part of their BA handling systems, but rather have 
installed systems to handle their BA transport water that do not rely 
on unlined CCR surface impoundments.\81\
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    \80\ 40 CFR 257.101(a)(1).
    \81\ See, e.g., <a href="https://www.epa.gov/coalash/coal-combustion-residuals-ccr-part-implementation">https://www.epa.gov/coalash/coal-combustion-residuals-ccr-part-implementation</a>.
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    Of the remaining unlined CCR surface impoundments that might exist 
following promulgation of this rule, those operating under the CCR Part 
A rule flexibility found in Sec.  257.103(f)(2) must permanently cease 
coal combustion, and as discussed below, the EPA is retaining the 
subcategory for EGUs permanently ceasing coal combustion by 2028, which 
does not require zero discharge of BA transport water. For those 
unlined CCR surface impoundments that are not permanently ceasing coal 
combustion and are required to close for cause but where alternative 
capacity is technically infeasible, there is some flexibility under the 
CCR Part A rule allowing for a maximum timeframe of October 15, 2023, 
or October 15, 2024, for the surface impoundment to cease receipt of 
waste.\82\ The 2023 and 2024 extended timeframes require EPA 
approval.\83\ Even with these extensions, the majority of facilities 
will have ceased receipt of waste in its non-compliant surface 
impoundment and completed its conversion to a CCR regulation-compliant 
BA handling method (necessary to remain in operation) within a few 
months of the effective date of this rule. Since there are no looming 
deadlines and tight timeframes under the CCR regulations that would 
justify continued flexibility, facilities with high recycle rate 
systems are free to focus on transitioning those high recycle rate 
systems to closed-loop operations.\84\ Because ash handling changes 
will no longer be compelled by the CCR regulations by the time this 
final rule is effective, the EPA concludes that there are no ``process 
change'' or non-water quality environmental impact reasons related to 
the CCR regulations that weigh against the EPA's decision to select 
dry-handling or closed-loop systems as the BAT basis for control of BA 
transport water discharges.
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    \82\ 40 CFR 257.103(f)(1)(vi).
    \83\ Further information on the implementation of these Part A 
applications is available on EPA's website at: <a href="https://www.epa.gov/coalash/coal-combustion-residuals-ccr-part-implementation">https://www.epa.gov/coalash/coal-combustion-residuals-ccr-part-implementation</a>.
    \84\ Although the EPA estimates that fully closing the loop 
would be less expensive than converting to a dry-handling system, 
nothing would preclude a facility with a high recycle rate system 
from installing one of the technologically available and 
economically achievable dry-handling systems.
---------------------------------------------------------------------------

    b. The EPA rejects less stringent technologies than dry-handling or 
closed-loop systems as BAT for BA transport water.
    Except for the new subcategory for EGUs permanently ceasing coal 
combustion by December 31, 2034, and for discharges before the 
applicability dates for the new zero-discharge requirement of this 
rule, the EPA is not establishing BAT limitations based on high recycle 
rate systems. In the 2020 rule, the EPA reversed its decision from the 
2015 rule and determined that dry-handling or closed-loop systems were 
not BAT. As a result, the EPA established a volumetric purge allowance 
(with a maximum of 10 percent of the system volume) to be determined on 
a case-by-case basis by the permitting authority, which required a 
permitting authority's BPJ analysis to determine any appropriate 
further control. As discussed above, the technological issues 
identified in the 2020 rule can be resolved, albeit at potentially 
additional costs, which the EPA finds are economically achievable. 
Furthermore, a dewatering bin or remote MDS with a purge removes fewer 
pollutants than the BAT basis of dry-handling or closed-loop systems, 
which the Agency finds is technologically available, economically 
achievable, and has acceptable non-water quality environmental 
impacts.\85\ BAT is the ``gold standard'' for controlling water 
pollution from existing sources, and the Supreme Court has explained 
that BAT must achieve ``reasonable further progress'' toward the Act's 
goal of eliminating pollution. See Southwestern Elec. Power Co. v. EPA, 
920 F.3d at 1003, 1006 (citing Nat'l Crushed Stone v. EPA, 449 U.S. at 
75). For these reasons, the EPA is not selecting high-rate-recycle 
systems as BAT.
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    \85\ In contrast, nothing in the record or public comments 
indicates that high-recycle-rate systems ceased to be available, be 
economically achievable, and have acceptable non-water quality 
environmental impacts for discharges before the applicability dates 
of the new, more stringent limitations of this rule.
---------------------------------------------------------------------------

    Except for the subcategory for EGUs permanently ceasing coal 
combustion by December 31, 2028, the EPA is also not identifying the 
less stringent (and previously rejected in the 2015 and 2020 rules) 
technology of surface impoundments as the technology basis for BAT, as 
this technology would also remove fewer pollutants than the BAT basis 
of dry-handling or closed-loop systems, which the EPA finds is 
technologically available, is economically achievable, and has 
acceptable non-water quality environmental impacts.
    c. The EPA continues to regulate discharges from some dry-handling 
BA systems as a low volume waste source.
    As previously discussed, the final BAT technology basis for BA 
transport water is dry-handling or closed-loop systems. This technology 
basis incorporates systems that operate so as to not generate BA 
transport water at all (so-called ``dry'' systems), as well as systems 
that do generate BA transport water but recycle that transport water in 
a closed-loop manner so as to achieve no discharge (so-called ``wet'' 
systems). At proposal

[…truncated; see source link]
Indexed from Federal Register on May 9, 2024.

This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.