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

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.

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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]

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