MACT Rules Continue to Pressure Investment Spending, Despite Changes and Delays

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Researched by Industrial Info Resources (Sugar Land, Texas)--Since the first draft of Maximum Achievable Control Technology (MACT) rules and standards many years ago, industry and the U.S. Environmental Protection Agency (EPA) have battled over revisions and changes. Some of the most recent changes have come as the result of a settlement between the Sierra Club and the EPA about control technology regulations for many sectors of the Chemical Processing Industry (CPI). This settlement proposes that the EPA be required to revisit established standards more frequently in the future to understand how new technology can enhance or change the compliance standards.

Deadlines for the EPA to finalize revised MACT standards and requirements under this agreement will push certain proposed dates from September of this year to March 2011 for some segments of the CPI. Affected segments include marine-loading operations, polymers and resins. Other proposed deadlines for decision-making for producers of acrylic fibers, polycarbonates and other products will be delayed from 2011 to 2012, or even 2013.

What's certain is that, regardless of the dates that compliance decisions and standards are made, the CPI and related industries such as Pharmaceuticals and Pulp & Paper are growing closer to an increased level of compliance that is certain to drive large capital investments.

Process and technology changes that will be required are expected to cost industrial plant owners in these industries billions of dollars over the next several years. Many believe compliance will be at the cost of even more job losses, and considering the economic problems around the world, this could be a very real fear.

A great deal of the process changes within the CPI will come from upgrading, enhancing, or even replacing hundreds, maybe even thousands of process heaters, steam boilers and similar heat sources that are critical to the core of a chemical plant. Even for small boilers and process heaters with a capacity of less than 10,000 BTUs per hour that do not require replacement or major overhaul, new routine and periodic "tune-up" requirements will be mandatory, rather than emission limitations. In the end, these changes are going to be very costly and time-consuming and will distract from growth initiatives. Regardless of the compliance timeline, CPI plant owners are already investing millions of dollars in new tools and technology for monitoring, testing, inspection and reporting requirements.

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.