[Federal Register Volume 59, Number 204 (Monday, October 24, 1994)] [Unknown Section] [Page 0] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 94-25741] [[Page Unknown]] [Federal Register: October 24, 1994] ----------------------------------------------------------------------- ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 63 [AD-FRL-5091-9] National Emission Standards for Hazardous Air Pollutants for Source Categories: Organic Hazardous Air Pollutants From the Synthetic Organic Chemical Manufacturing Industry and Other Processes Subject to the Negotiated Regulation for Equipment Leaks AGENCY: Environmental Protection Agency (EPA). ACTION: Proposed amendments. ----------------------------------------------------------------------- SUMMARY: This action proposes to amend the national emission standards for hazardous air pollutants (NESHAP) for the synthetic organic chemical manufacturing industry, and other processes subject to the equipment leaks rule, promulgated in the Federal Register on April 22, 1994, and on June 6, 1994. The proposal would provide for an additional time period for owners or operators to conduct any necessary administrative procedures to ensure that a given plant site is designated as an area source and, hence, can be considered exempt from the requirements of the NESHAP. During this period, compliance requirements would be deferred so long as certain conditions were met, and sources continue to operate at actual emission levels below the threshold for major sources. This action is being proposed because the compliance date for certain equipment leak requirements of the NESHAP is approaching, and because the EPA believes in view of current circumstances that these requirements should not be imposed on sources that are likely to be designated as area sources in the relatively near future. DATES: Comments. Comments must be received on or before November 23, 1994. Public Hearing. Anyone requesting a public hearing must contact the EPA no later than November 23, 1994. If a hearing is held, it will take place on December 5, 1994, beginning at 10:00 a.m. ADDRESSES: Comments. Comments should be submitted (in duplicate, if possible) to: Air Docket (LE-131), Attention Docket Number A-90-19 (see docket section below), room M1500, U.S. Environmental Protection Agency, 401 M Street, SW., Washington, DC 20460. The EPA requests that a separate copy also be sent to the contact person listed below. Public Hearing. If a public hearing is held, it will be held at the EPA's Office of Administration Auditorium, Research Triangle Park, North Carolina. Persons interested in attending the hearing or wishing to present oral testimony should notify Ms. Theresa Adkins, U.S. Environmental Protection Agency, Research Triangle Park, N.C. 27711, telephone (919) 541-5645. Docket. All information used in the development of this proposal is contained in the preamble below. However, Dockets No. A-90-19 through A-90-23, and A-89-10, containing the supporting information for the original NESHAP, is available for public inspection and copying between 8:30 a.m. and 3:30 p.m., Monday through Friday, at EPA's Air Docket Section, Waterside Mall, room M-6102, first floor, 401 M Street SW., Washington, DC 20460. A reasonable fee may be charged for copying. FOR FURTHER INFORMATION CONTACT: Mr. Tim Smith at (919) 541-4718, Emission Standards Division (MD-13), U.S. Environmental Protection Agency, Research Triangle Park, North Carolina 27711. SUPPLEMENTARY INFORMATION: I. Background On April 22, 1994 (59 FR 19402), and June 6, 1994 (59 FR 29196) the EPA promulgated in the Federal Register NESHAP for the synthetic organic chemical manufacturing industry, and for several other processes subject to the equipment leaks portion of the rule. These regulations were promulgated as subparts F, G, H and I in 40 CFR part 63, and are commonly referred to as the hazardous organic NESHAP, or the HON. Today's action amends Secs. 63.100 and 63.103 of subpart F, and Sec. 63.190 of subpart I. These sections describe the applicability requirements of the HON. One aspect of the applicability determination, pursuant to paragraphs 63.100(b)(3) and 63.190(b), is that the processing unit must be ``located at a plant site that is a major source as defined in section 112(a) of the Act.'' Section 112(a) of the Act defines a ``major source'' as ``any stationary source or group of stationary sources located within a contiguous area and under common control that emits or has the potential to emit considering controls, in the aggregate, 10 tons per year or more of any hazardous air pollutant or 25 tons per year or more of any combination of hazardous air pollutants * * *'' (emphasis added). Any stationary source that does not emit, or have the potential to emit, these quantities, is defined by the Act as an ``area source.'' (see definition in subpart A, 59 FR 12408). On March 16, 1994, the EPA promulgated, in subpart A to 40 CFR part 63 (commonly referred to as the ``general provisions'' to part 63), a definition of ``potential to emit'' as follows: ``Potential to emit'' means the maximum capacity of a stationary source to emit a pollutant under its physical and operational design. Any physical or operational limitation on the capacity of the stationary source to emit a pollutant, including air pollution control equipment and restrictions on hours of operation or on the type or amount of material combusted, stored, or processed, shall be treated as part of its design if the limitation or the effect it would have on emissions is federally enforceable.'' (emphasis added) A key aspect of the potential to emit definition is that restrictions must be federally enforceable. The subpart A general provisions define ``federally enforceable'' as follows: ``Federally enforceable'' means all limitations and conditions that are enforceable by the Administrator and citizens under the Act or that are enforceable under other statutes administered by the Administrator. Examples of federally enforceable limitations and conditions include, but are not limited to: (1) Emission standards, alternative emission standards, alternative emission limitations, and equivalent emission limitations established pursuant to section 112 of the Act as amended in 1990; (2) New source performance standards established pursuant to section 111 of the Act, and emission standards established pursuant to section 112 of the Act before it was amended in 1990; (3) All terms and conditions in a title V permit, including any provisions that limit a source's potential to emit, unless expressly designated as not federally enforceable; (4) Limitations and conditions that are part of an approved State Implementation Plan (SIP) or a Federal Implementation Plan (FIP); (5) Limitations and conditions that are part of a Federal construction permit issued under 40 CFR 52.21 or any construction permit issued under regulations approved by the EPA in accordance with 40 CFR Part 51; (6) Limitations and conditions that are part of an operating permit issued pursuant to a program approved by the EPA into a SIP as meeting the EPA's minimum criteria for Federal enforceability, including adequate notice and opportunity for EPA and public comment prior to issuance of the final permit and practicable enforceability; (7) Limitations and conditions in a State rule or program that has been approved by the EPA under subpart E of this part for the purposes of implementing and enforcing section 112; and (8) Individual consent agreements that the EPA has legal authority to create. The EPA is in the process of clarifying, through guidance and rulemaking, the administrative procedures that can be used by source owners or operators to create federally enforceable restrictions on their potential to emit. These procedures would also document when and how existing restrictions in State and local programs can be considered federally enforceable. Additionally, these procedures would enable state and local agencies to gain approval for programs and rules that can establish federally enforceable limitations on the potential to emit hazardous air pollutants. The EPA is aware of a number of instances of plant owners or operators who believe that their plants are operating under restrictions that ensure that actual emissions will be at area source emission levels. However, for many such instances, there may be additional administrative procedures that must be carried out to ensure that these restrictions are federally enforceable before applicable compliance dates. As previously noted, the Agency is in the process of providing additional clarification on the procedures by which HAP- emitting facilities may obtain federally enforceable limits to achieve area source status. Pending establishment of federally enforceable limitations on the plant site's potential to emit, owners or operators of plants with actual emissions below the major threshold (but potential emissions above the threshold) are required to comply with the equipment leak standards in subpart H. In view of current circumstances, the EPA believes that if such sources can adequately document that they are actually emitting at area source levels, and will commit to maintaining their actual emissions at area source levels pending the establishment of federally enforceable limits, that such sources should be given additional time to achieve area source status by obtaining federally enforceable limits. The purpose of today's rulemaking is to provide a deferral of HON requirements for source owners or operators who wish to make such a certification, and to establish minimum documentation requirements. Elsewhere in today's Federal Register, EPA is announcing a 3-month partial stay and reconsideration of the NESHAP for certain qualifying sources, and is proposing to extend the compliance date for sources affected by the stay in the event that additional time is needed to complete this rulemaking. This proposal should not be viewed as a precedent for other categories of sources to be regulated under section 112 because it is based on unique circumstances that exist at this time. The Agency also wishes to stress that this proposal is strictly a compliance date extension for certain qualifying sources and sets no precedents regarding how or when facilities can achieve area source status. II. Summary of and Rationale for Rule Changes A. Deferral of Requirements for Sources Making an Area Source Certification The certification and documentation process would be established by adding a new paragraph (b)(4) to Sec. 63.100, a new paragraph (f) to Sec. 63.103, and new paragraphs (b)(7) and (b)(8) to Sec. 63.190. These provisions: (1) would require that the owner and operator provide a certification that the source is operating such that its total actual annual emissions are less than 10 tons of any one HAP and less than 25 tons of multiple HAP and will continue to operate at or below this level pending the establishment of federally enforceable limits, (2) would require the owner or operator to maintain documentation of specific calculations, and (3) would allow the EPA the option of reviewing the documentation. Where, in the EPA's judgement, the source does not qualify based upon a review of the calculations, the source would be notified and would then become subject to the HON requirements within 90 days. The EPA believes that the certification and documentation process for today's deferral should be relatively straightforward. The EPA requests comment on the level of detail that should be required. In addition, the EPA requests comment on how the Agency should verify that facilities qualifying for the deferral continue to emit at area source levels during the deferral period. Today's proposal would require the owner or operator to provide updated emissions information at the Agency's request. The Agency seeks comment on what additional monitoring, recordkeeping and reporting requirements may be needed given the purposes of today's rule, and on the frequency and level of detail of such requirements. For example, the EPA is considering requiring the owner or operator to submit an annual report on plantwide emission levels of each HAP. As an alternative, EPA is considering requiring owners and operators to re-certify annually that they qualify for the exemption and to maintain documentation of the updated emissions estimates used as the basis for the re-certification. The proposed deferral would extend until April 22, 1997, that is, the date 3 years after promulgation of the HON. This would give facilities significant additional time to obtain federally enforceable restrictions that limit hazardous air pollutant emissions. The Act does not permit extension of the deadline for existing major source compliance with the requirements of the rule beyond 3 years from the date of promulgation. Sources for which federally enforceable restrictions are not in place after 3 years would be subject to any applicable requirement of the HON, including the requirements of subpart G. Proposed paragraphs 63.100(b)(4)(ii) and 63.190(b)(7)(ii) are intended to clarify that sources which have federally enforceable restrictions, such that they can be considered area sources, are not subject to the recordkeeping requirements of the proposed amendments. Although these regulatory passages are not essential, because only ``major sources'' are subject to the HON, the EPA believes that these paragraphs could eliminate any possible ambiguities that could be perceived. The EPA requests comment on these paragraphs. The EPA believes that implementation of these procedures could be delegated to State and local agencies. B. Emission Calculations The EPA does not intend for the proposal, which would require the source owner to ``maintain documentation'' of emissions, to result in protracted technical discussions between the source owner and the EPA. It is important, however, to mention a few guidelines on the nature of the proposed emission rate documentation process. For purposes of emission calculations for organic chemical manufacturing facilities, the proposed rule lists as examples the equations in Sec. 63.150 of the HON and the documentation procedures in Secs. 63.74 (c), (d) and (g) of the rule implementing the early reductions program. These procedures are similar to the procedures in EPA-450/3-91-012a, Procedures for Establishing Emissions for Early Reduction Compliance Extensions, where applicable. This document contains work sheets for providing calculations for process vents, storage tanks, equipment leaks, loading operations, and wastewater operations. For emission points in other source categories not addressed by these techniques, the EPA recommends the use of EPA- developed emission factors where available, and engineering judgement where such factors not available. The EPA emphasizes that it would not be sufficient for purposes of today's proposal for sources to merely provide a copy of plantwide totals reported to the toxic release inventory (TRI). The EPA believes that a deferral or exemption of requirements requires documentation on a point by-point basis of the parameters (operating characteristics and emission controls) used to make each calculation. In addition, the EPA wishes to emphasize that emissions from the entire plant site must be considered, not just those potentially affected by the HON. Today's amendment makes clear that the demonstration must include all emission points at the contiguous facility, including such non-HON sources as boilers, non-HON process units such as polymers and resins production facilities, cooling towers, and any other possible source of hazardous air pollutant emissions from the plant. At the same time, the EPA does not believe that the emission documentation records need to provide precise estimates for emitting sources that make a trivial contribution to the total. The EPA requests comment on whether specific language could be added to the amendments to define trivial contributors. III. Administrative Requirements A. Paperwork Reduction Act The information collection requirements of the previously promulgated NESHAP were submitted to and approved by the Office of Management and Budget (OMB). A copy of this Information Collection Request (ICR) document (OMB control number 1414.02) may be obtained from Sandy Farmer, Information Policy Branch (PM-223Y); U.S. Environmental Protection Agency; 401 M Street, SW.; Washington, DC 20460 or by calling (202) 260-2740. Today's changes to the NESHAP would have a minor impact on the information collection burden estimates made previously. The EPA estimates that there are a small number of sources (perhaps 20 to 40 plant sites) with actual emission levels that would qualify for today's proposed amendment. For these plant sites, the EPA believes there would typically be one or two chemical production units, and consequently the number of calculations would be relatively low. Additionally, the impacts would be tempered by a reduction in the burden associated with compliance with the equipment leak provisions. As a result, the EPA believes that any additional impacts would have an insignificant effect on the burden estimate, within the uncertainty of the original analysis. Therefore, the ICR has not been revised. B. Executive Order 12866 Review The HON rule promulgated on April 22, 1994 was considered ``significant'' under Executive Order 12866 and a regulatory impact analysis (RIA) was prepared. The amendments proposed today would have a very small impact on the results of the RIA. As mentioned previously, the EPA believes that on balance the change is within the uncertainty of the analysis. The impacts on emission reductions are also believed to be negligible, because the impact calculations performed in the RIA were realized based on major sources affected by the standard, and no small sources were expected to be subject to the requirements of the HON. C. Regulatory Flexibility Act The Regulatory Flexibility Act of 1980 requires the identification of potentially adverse impacts of Federal regulations upon small business entities. The Act specifically requires the completion of a Regulatory Flexibility Analysis in those instances where small business impacts are possible. Because this rulemaking imposes no adverse economic impacts, a Regulatory Flexibility Analysis has not been prepared. Pursuant to the provisions of 5 U.S.C. 605(b), I hereby certify that this rule will not have a significant economic impact on a substantial number of small business entities. List of Subjects in 40 CFR Part 63 Air pollution control, Intergovernmental relations, Reporting and recordkeeping requirements. Dated: October 11, 1994. Carol M. Browner, Administrator. For the reasons set out in the preamble, part 63 of chapter I of title 40 of the Code of Federal Regulations is proposed to be amended as follows. Title 40, chapter I, part 63, of the Code of Federal Regulations is proposed to be amended to read as follows: PART 63--NATIONAL EMISSION STANDARDS FOR HAZARDOUS AIR POLLUTANTS FOR SOURCE CATEGORIES 1. The authority citation for part 63 continues to read as follows: Authority: 42 U.S.C. 7401, 7412, 7414, 7416, and 7601. 2. Section 63.100 is amended by revising paragraph (b) introductory text and adding paragraph (b)(4) to read as follows: Sec. 63.100 Applicability and designation of source. * * * * * (b) Except as provided in paragraph (b)(4) of this section, the provisions of subparts F, G, H of this part apply to chemical manufacturing process units that meet all the criteria specified in paragraphs (b)(1), (b)(2), and (b)(3) of this section: * * * * * (4) The owner or operator of a chemical manufacturing processing unit is exempt from all requirements of subparts F, G, and H until not later than April 22, 1997 if the owner or operator certifies, in a notification to the Administrator, not later than [date 30 days after publication of the final rule] that the plant site at which the chemical manufacturing processing unit is located emits, and will continue to emit, during any 12-month period, less than 10 tons per year of any individual hazardous air pollutant, and less than 25 tons per year of any combination of hazardous air pollutants. (i) If such a determination is based on limitations and conditions that are not federally enforceable (as defined in subpart A of this part), the owner or operator shall document the basis for the determination as specified in paragraphs (b)(4)(i)(A) through (b)(4)(i)(C) and comply with the recordkeeping requirement in Sec. 63.103(f). (A) The owner or operator shall identify all HAP emission points at the plant site, including those emission points subject to and emission points not subject to subparts F, G, and H of this part; (B) The owner or operator shall calculate the amount of annual HAP emissions that have been released from each emission point, using acceptable measurement or estimating techniques for maximum operating conditions at the site. Examples of estimating procedures that are considered acceptable include the calculation procedures in Sec. 63.150 of subpart G, the early reduction demonstration procedures specified in Sec. 63.74 (c)(2), (c)(3), (d)(2), (d)(3), and (g), or, for sources to which these procedures are not available, accepted engineering practices. (C) The owner or operator shall sum the amount of annual HAP emissions from all the emission points on the plant site. If the total emissions of any one HAP are less than 10 tons per year and the total emissions of any combination of HAP are less than 25 tons per year, the plant site qualifies for the exemption described in paragraph (b)(4) of this section, provided that emissions are kept below these thresholds. (ii) If such a determination is based on limitations and conditions that are federally enforceable (as defined in subpart A of this part), the owner or operator is not subject to the recordkeeping requirement in Sec. 63.103 (f). * * * * * 3. Section 63.103 is amended by adding paragraph (f) to read as follows: Sec. 63.103 General compliance, reporting and recordkeeping requirements. * * * * * (f) To qualify for the exemption specified in Sec. 63.100(b)(4), the owner or operator shall maintain the documentation of the information required pursuant to Sec. 63.100(b)(4)(i), and documentation of any update of this information requested by the Administrator, and shall provide the documentation to the Administrator upon request. The Administrator may notify the owner or operator, after reviewing such documentation, whether, in the Administrator's judgment, the source does not qualify for the exemption specified in Sec. 63.100(b)(4). The exemption provided for in Sec. 63.100 (b)(4) will expire 90 days from the date of such notification by the Administrator. 4. Section 63.190 is amended by revising paragraph (b) introductory text and adding paragraph (b)(7) to read as follows: Sec. 63.190 Applicability and designation of source. * * * * * (b) Except as provided in paragraph (b)(7) of this section, the provisions of subparts I and H of this part apply to emissions of the designated organic hazardous air pollutants from the processes specified in paragraphs (b)(1) through (b)(6) of this section that are located at a plant site that is a major source as defined in section 112(a) of the Act. The specified processes are further defined in Sec. 63.191. * * * * * (7) The owner or operator of a process unit specified in paragraphs (b)(1) through (b)(6) of this section is exempt from all requirements of subpart I until not later than April 22, 1997, if the owner or operator certifies, in a notification to the Administrator, not later than [insert date 30 days after publication of the final rule] that the plant site at which the chemical manufacturing processing unit is located emits, and will continue to emit, during any 12-month period, less than 10 tons per year of any individual hazardous air pollutant, and less than 25 tons per year of any combination of hazardous air pollutants. (i) If such a determination is based on limitations and conditions that are not federally enforceable (as defined in subpart A of this part), the owner or operator shall document the basis for the determination as specified in paragraphs (b)(7)(i)(A) through (b)(7)(i)(C) of this section. (A) The owner or operator shall identify all HAP emission points at the plant site, including those emission points subject to and emission points not subject to subparts F, G, and H of this part; (B) The owner or operator shall calculate the amount of annual HAP emissions that have been released from each emission point, using acceptable measurement or estimating techniques for maximum operating conditions at the site. Examples of estimating procedures that are considered acceptable include the calculation procedures in Sec. 63.150 of subpart G, the early reduction demonstration procedures specified in Sec. 63.74 (c)(2), (c)(3), (d)(2), (d)(3), and (g), or, for sources not covered by these procedures, accepted engineering practices. (C) The owner or operator shall sum the amount of annual HAP emissions from all the emission points on the plant site. If the total emissions of any one HAP are less than 10 tons per year and the total emissions of any combination of HAP are less than 25 tons per year, the plant site qualifies for the exemption described in paragraph (b)(7) of this section, provided that emissions are kept below these thresholds. (ii) If such a determination is based on limitations and conditions that are federally enforceable, and the plant site is not a major source as defined in subpart A of this part), the owner or operator is not subject to the recordkeeping requirement in Sec. 63.190(8). * * * * * 5. Section 63.192 is amended by adding a new paragraph (l) to read as follows: Sec. 63.192 Standard. * * * * * (l) To qualify for the exemption specified in Sec. 63.190(b)(7), the owner or operator shall maintain the documentation of the information required pursuant to Sec. 63.190(b)(7)(i), and documentation of any update of this information requested by the Administrator, and shall provide the documentation to the Administrator upon request. The Administrator will notify the owner or operator, after reviewing such documentation, whether, in the Administrator's judgment, the source does not qualify for the exemption specified in Sec. 63.190(b)(7). The exemption provided for in Sec. 63.190(b)(7) will expire 90 days after the date of such notification by the Administrator. [FR Doc. 94-25741 Filed 10-21-94; 8:45 am] BILLING CODE 6360-50-P