National Emission Standards for Hazardous Air Pollutants; Proposed Standards for Hazardous Air Pollutant Emissions From Magnetic Tape Manufacturing Operations; Proposed Rule ENVIRONMENTAL PROTECTION AGENCY

Federal RegisterMar 11, 1994

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SUMMARY: The EPA is proposing standards that would limit emissions of

hazardous air pollutants (HAP) from existing and new magnetic tape

manufacturing operations that are part of major sources. The proposed

standards implement sections 112(d) and 112(h) of the Clean Air Act as

amended in 1990 (the Act), which requires the Administrator to regulate

emissions of HAP listed in section 112(b) of the Act. The intent of the

proposed standards is to protect the public by requiring new and

existing major sources to control emissions to the level corresponding

to the maximum achievable control technology (MACT), taking into

consideration the cost of achieving such emission reductions, any non-

air quality and other air quality-related health and environmental

impacts, and energy requirements.

DATES: Comments. Comments must be received on or before April 25, 1994.

Public Hearing. A public hearing will be held, if requested, to provide

interested persons an opportunity for oral presentation of data, views,

or arguments concerning the proposed standards for the magnetic tape

manufacturing industry. If anyone contacts the EPA requesting to speak

at a public hearing by April 5, 1994, a public hearing will be held on

April 13, 1994 beginning at 10 a.m. Persons interested in attending the

hearing should notify Ms. Julia Latta at (919) 541-5578 to verify that

a hearing will occur.

ADDRESSES: Comments. Comments should be submitted (in duplicate, if

possible) to: Air and Radiation Docket and Information Center,

Attention, Docket No. A-91-31, 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 anyone contacts the EPA requesting a public

hearing, the hearing will be held at the EPA Office of Administration

Auditorium in Research Triangle Park, North Carolina. Persons wishing

to present oral testimony must contact the EPA by April 5, 1994 by

contacting Ms. Julia Latta, Standards Development Branch (MD-13), U. S.

Environmental Protection Agency, Research Triangle Park, North Carolina

27711, telephone number (919) 541-5578.

Background Information Document. The Background Information

Document (BID) for the proposed standards may be obtained from the

docket or from the U.S. EPA Library (MD-35), Research Triangle Park,

North Carolina 27711, telephone number (919) 541-2777. Please refer to,

``Hazardous Air Pollutants from Magnetic Tape Manufacturing--Background

Information for Proposed Standards,'' EPA-453/R-93-059.

Docket. Docket No. A-91-31, containing supporting information used

in developing the proposed standards, is available for public

inspection and copying between 8 a.m. and 4 p.m., Monday through

Friday, at the EPA's Air and Radiation Docket and Information Center,

Waterside Mall, room 1500, 1st Floor, 401 M Street, SW., Washington, DC

20460. Telephone (202) 260-7548. The proposed regulatory text and other

materials related to this rulemaking are available for review in the

docket. A reasonable fee may be charged for copying.

FOR FURTHER INFORMATION CONTACT: For information concerning regulatory

decisions and the proposed standards, contact Ms. Gail Lacy at (919)

541-5261, Standards Development Branch, Emissions Standards Division

(MD-13), U. S. Environmental Protection Agency, Research Triangle Park,

North Carolina 27711.

SUPPLEMENTARY INFORMATION: The information presented in this preamble

is organized as follows:

I. Summary of Proposed Standards.

A. Applicability of the Standards.

B. Actual Standards and Format of the Standards.

C. Monitoring Requirements.

D. Test Methods for Compliance.

E. Reporting and Recordkeeping Requirements.

II. List of Source Categories.

III. Background.

IV. Authority for National Emission Standards for Hazardous Air

Pollutants Decision Process.

A. Source of Authority for NESHAP Development.

B. Criteria for Development of NESHAP.

V. Summary of Environmental, Energy, Economic, and Cost Impacts.

A. Environmental Impacts.

B. Energy Impacts.

C. Economic Impacts.

D. Cost Impacts.

VI. Rationale.

A. Selection of Pollutant and Source Category for Control.

B. Selection of Emission Points.

C. Selection of Basis and Level of the Proposed Standards for

Existing Sources.

D. Selection of Basis and Level of the Proposed Standards for

New Sources.

E. Pollution Prevention Considerations.

F. Selection of Format.

G. Selection of Emission Limits, Work Practice, and Equipment

Standards.

H. Selection of Monitoring Requirements.

I. Selection of Compliance Test Methods.

J. Selection of Definition of Affected Source.

K. Selection of Reporting and Recordkeeping Requirements.

L. Applicability of the General Provisions.

VII. Administrative Requirements.

A. Public Hearing.

B. Docket.

C. Executive Order 12866.

D. Paperwork Reduction Act.

E. Regulatory Flexibility Act.

F. Miscellaneous.

G. Statutory Authority.

The proposed regulatory text is not included in this Federal

Register notice, but is available in Docket No. A-91-31 or by request

from the EPA contact persons designated earlier in this notice free of

charge. The proposed regulatory language is also available on the

Technology Transfer Network (TTN), one of EPA's electronic bulletin

boards. TTN provides information and technology exchange in various

areas of air pollution control. The service is free, except for the

cost of a phone call. Dial (919) 541-5742 for up to a 14,400 bps modem.

If more information on TTN is needed call the HELP line at (919) 541-

5384.

I. Summary of Proposed Standards

This section provides an overview of:

(1) The applicability of the standards;

(2) The format of the standards;

(3) The actual standards;

(4) The monitoring requirements;

(5) The test methods for compliance; and

(6) The reporting and recordkeeping requirements. Detailed

discussions concerning the statutory basis and the selection rationale

for the proposed standards are provided in sections IV and VI,

respectively, of this preamble.

A. Applicability of the Standards

The proposed standards apply to new and existing major sources

emitting HAP from magnetic tape manufacturing operations, according to

certain criteria. First, a source is subject to all of the provisions

of the standards if it is major, that is, if it has the potential to

emit greater than 9.1 Mg/yr (10 tons/yr) of any one HAP or 22.7 Mg/yr

(25 tons/yr) of any combination of HAP. Second, a major source actually

utilizing less than 9.1 Mg/yr (10 tons/yr) of any one HAP or 22.7 Mg/yr

(25 tons/yr) of any combination of HAP is subject only to an annual

recordkeeping and reporting requirement (Sec. 63.703(g)) of the

proposed rule. Finally, research or laboratory facilities are not

subject to the provisions of the standards unless they are collocated

with production lines.

Several solvent and particulate HAP are used in the magnetic tape

manufacturing industry. Solvent HAP used include methyl ethyl ketone

(MEK), toluene, methyl isobutyl ketone (MIBK), toluene diisocyanate,

ethylene glycol, methanol, xylenes, ethyl benzene, and acetaldehyde.

The HAP solvents that are used to the greatest extent are MEK, toluene,

and MIBK. The other HAP are used in small quantities at only a few

facilities in the source category. Chromium and cobalt, which are

particulate HAP, are also used. These are the HAP expected to be

emitted by this industry; however, the proposed standards apply to

emissions of all 189 HAP listed in section 112(b).

This standard covers HAP emission sources that result from magnetic

tape manufacturing operations. Products manufactured as a result of

these operations include video and audio tape, and computer diskettes.

Production of nonmagnetic products may require use of some of the same

equipment as is needed for magnetic products. For example, leader tape

is the tape at the beginning of an audio or video cassette that does

not contain magnetic media. Leader tape is manufactured on the same

type of equipment that is used to manufacture magnetic tape, and is

directly related to manufacturing operations. Therefore, the production

of leader tape is considered as part of magnetic tape manufacturing

operations.

Likewise, other products may be manufactured using the same

solvents and equipment that are used to coat the tape with magnetic

material. If HAP are used during their production, and the same

equipment that is used for manufacturing magnetic tape products is used

in their manufacture, the provisions of this standard apply when these

products are being manufactured.

Sources in a magnetic tape manufacturing operation that are

affected by the standards include but are not limited to:

(1) The solvent storage tanks;

(2) The mix preparation equipment;

(3) The coating operation;

(4) The waste handling devices;

(5) The particulate transfer operations;

(6) The wash sinks for cleaning removable parts;

(7) Cleaning involving the flushing of fixed lines;

(8) Wastewater treatment systems; and

(9) Condenser vents in the solvent recovery area except the vent on

a condenser that is used as the primary control device.

A description of the emission points within magnetic tape

manufacturing operations can be found in section VI.B.

B. Actual Standards and Format of the Standards

The proposed standards are expressed in terms of percent control of

HAP, as outlet concentrations of HAP, and as equipment standards for

the various emission points that comprise the magnetic tape operation.

A summary of the requirements of the proposed standards is provided in

table 1.

Table 1.--Summary of the Requirements of the Proposed Standards

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Emission point Standards

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Solvent storage tanks.............. 95-percent overall HAP control

efficiency.a, b

Mix preparation equipment.......... 95-percent overall HAP control

efficiency.a, b

Coating operation equipment........ 95-percent overall HAP control

efficiency.a, b

Waste handling devices............. 95-percent overall HAP control

efficiency.a, b

Condenser vents in solvent recovery 95-percent overall HAP control

efficiency.a, b

Wastewater treatment systems....... Remove 99 percent of the HAP in the

wastewater or achieve a total HAP

outlet concentration of 50 ppmw.

Wash sinks for cleaning removable 88-percent overall HAP control

parts. efficiency.

Particulate transfer devices....... Equipment standard--use enclosed

transfer device.

Cleaning involving the flushing of Equipment standard--use closed

fixed lines. system for flushing fixed lines or

vent open containers to a control

device.

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aThe overall control efficiency is the product of the capture efficiency

and the control efficiency.

bFor sources using incinerators as control devices an alternate emission

limit of 20 ppmv HAP is allowed.

As indicated in Table 1, the proposed standards require an overall

HAP control efficiency (the product of capture efficiency and control

efficiency) of 95 percent for solvent storage tanks, mix preparation

equipment, coating operations, waste handling devices, and condenser

vents in solvent recovery. If an incinerator is used to control these

emission points, an alternate emission limit of 20 ppmv is allowed.

For wastewater treatment systems, either 99 percent of the HAP

present in the wastewater discharge must be removed, or an outlet HAP

concentration of less than 50 parts per million by weight (ppmw) must

be achieved.

For the wash sinks, emissions must be controlled by 88 percent.

This can be achieved by maintaining a 75-percent freeboard ratio.

Alternatively, an owner or operator can control HAP emissions from wash

sinks by venting them to a 95-percent efficient control device.

Equipment standards are required to control emissions from

particulate transfer operations and the cleaning of fixed lines by

flushing.

For the transfer of particulates from the holding tanks to the

mixing area, the proposed standards require that an enclosed transfer

device as defined in Sec. 63.702 must be used to transfer particulates

containing HAP.

For the flushing of fixed lines with solutions containing HAP, the

proposed standards require that the lines be flushed using a closed

system as described in Sec. 63.702. As an alternative to using a closed

system, an owner or operator may flush the line into an open container.

However, that container must be in an enclosure (such as the type

surrounding the coater) that is vented to a control device such that

the overall control is 95 percent.

The proposed standards would require the owner or operator of an

existing magnetic tape operation to comply with these standards within

1 year after they are published in the Federal Register. Section

63.7(a)(2) of the proposed General Provisions, if promulgated, would

then allow a source 120 days after the compliance date to demonstrate

compliance through an initial performance test.\1\ The Administrator

feels that this timeframe is sufficient for existing sources to comply

with the regulation. A longer compliance timeframe is not necessary

because many of the sources in the source category have already

instituted the control techniques required to meet the proposed

standards. A shorter timeframe was not selected because the proposed

timeframe is necessary for those sources that will be required to

install new capture and/or control devices to purchase and install the

equipment.

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\1\The EPA proposed regulations for subpart A of 40 CFR Part 63

were published in the Federal Register on August 11, 1993 at 58 FR

42760. Sources covered by subpart EE will need to comply with

whatever deadlines for performing the initial performance test are

contained in subpart A, and all other applicable provisions of

subpart A, as finally promulgated.

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Owners or operators of facilities initially determined to be area

sources that become major sources are subject to the rule under the

same compliance timeframe as established for existing major sources.

That is, area sources that become major sources will have to comply

within one year of becoming a major source.

Owners or operators of new sources that commence construction after

the standards are proposed but before the standards are promulgated

will have to comply immediately upon startup, unless the promulgated

regulation is more stringent than the proposed regulation. In

accordance with Section 112(i)(2) of the Act, if the promulgated

standards are more stringent than the proposed standards, the

compliance date for sources that commence construction after proposal

but before promulgation will be 3 years after the promulgation date,

provided the owner or operator complies with the standards as proposed

until the compliance date.\2\ The owner or operator would then be

required to conduct a performance test within 120 days after the

compliance date.

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\2\Section 63.7(a)(2)(ix) of the proposed General Provisions

implements this requirement.

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All other new sources will have to comply with the proposed

standards immediately upon startup.

C. Monitoring Requirements

Monitoring is required by the proposed standards to determine

whether a magnetic tape operation is in continuous compliance.

Depending on the control system, this can be accomplished by: (1)

Continuously measuring inlet and outlet concentration and showing that

the control efficiency corresponds to that required by the standard; or

(2) Continuously measuring site-specific operating parameters, the

values of which are established by the owner or operator during the

initial compliance test. The operating parameter value is defined as

the minimum or maximum value established for a control device or

process parameter that, if achieved by itself or in combination with

one or more other operating parameter values, determines that an owner

or operator is complying with the applicable emission limitation or

standards. This type of enhanced monitoring would be required for those

emission points for which the standards are expressed as a percent

control. For equipment standards, no monitoring would be required.

However, the owner or operator is expected to install and operate the

equipment properly (for particulate transfer and flushing fixed lines).

For owners or operators complying with the proposed standards for wash

sinks by maintaining a freeboard ratio, compliance would be

demonstrated through recordkeeping (see section VI.K). A summary of the

monitoring requirements of the proposed standards is provided in table

2.

Table 2.--Proposed Enhanced Monitoring Requirements

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Control device Parameter(s) to monitor Deviation

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1. Carbon adsorber:

If used only to Perform a material balance Material balance

control (3-day rolling average) indicates control

affected comparing solvent applied efficiency is less

coating at the coater to solvent than stipulated by

operation and recovered. NESHAP.

solvent is

recovered..

Multiple beds Continuous measure of outlet Monitored outlet

on adsorber total VOC concentration if concentration is

exhaust compliance is based on greater than the

through a outlet concentration; or value established

common stack.. during the

performance test for

three consecutive

adsorption cycles.

Continuous measure of inlet Efficiency is less

and outlet total VOC than that stipulated

concentration if compliance by the NESHAP for

is based on control three consecutive

efficiency. adsorption cycles.

Adsorber has Continuous measure of outlet 3-day rolling average

individual total VOC concentration if for an adsorption

exhaust stacks compliance is based on vessel indicates an

for each of outlet concentration; or outlet concentration

multiple beds.. that is greater than

the value

established during

the performance

test.

Continuous measure of inlet 3-day rolling average

and outlet total VOC for an adsorption

concentration if compliance vessel indicates

is based on control efficiency is less

efficiency. than that stipulated

by the NESHAP.

2. Condenser:

If used only to Perform a material balance Material balance

control (3-day rolling average) indicates control

affected comparing solvent applied efficiency is less

coating at the coater to solvent than stipulated by

operation and recovered. NESHAP.

solvent is

recovered..

If used to Continuous measure of the For any 3-hour

control temperature of condenser period, the average

coating exhaust stream; or exhaust temperature

operation and is greater than the

other emission average exhaust

points.. temperature

established during

the performance

test.

Continuous measure of inlet For any 3-hour

and outlet total VOC period, the average

concentration if compliance control efficiency

is based on control is less than that

efficiency. stipulated by the

NESHAP.

3. Thermal Continuous measure of the For any 3-hour

incinerator. combustion temperature; or period, the average

combusition

temperature is less

than the average

combustion

temperature

established during

the performance

test.

Continuous measure of outlet For any 3-hour

VOC concentration if period, the average

compliance is based on outlet VOC

outlet concentration; or concentration is

greater than that

required by the

standard.

Continuous measure of inlet For any 3-hour

and outlet total VOC period, the average

concentration if compliance control efficiency

is based on control is less than that

efficiency. stipulated by the

NESHAP.

4. Catalytic Continuous measure of the For any 3-hour

incinerator. gas temperature both period, the average

upstream and downstream of gas temperature

catalyst bed; or before and after the

catalyst bed, or the

average gas

temperature

difference across

the catalyst bed, is

less than the

average temperature

established during

the performance

test.

Continuous measure of outlet For any 3-hour

VOC concentration if period, the average

compliance is based on outlet VOC

outlet concentration. concentration is

greater than that

required by the

standard.

Continuous measure of inlet For any 3-hour

and outlet total VOC period, the average

concentration if compliance control efficiency

is based on control is less than that

efficiency. stipulated by the

NESHAP.

5. Capture system.. Continuous measure of an For any 3-hour

indicator parameter (e.g. period, parameter

differential pressure). readings are outside

the value

established during

the performance

test.

6. All air Flow diversion: if bypass Presence of flow

pollution control lines that could divert detected in the

devices. flow from the control line, rupture of the

device to the atmosphere car-seal, or removal

exist, flow must be of the lock-and-key

monitored continuously or must be reported in

the line must be secured the quarterly

with a car-seal or lock-and- reporting required

key type configuration that by Sec. 63,10.

is inspected monthly. Occurrence does not

establish

noncompliance.

7. Steam strippers. Continuous measure of the For any 3-hour

steam and wastewater feed period, the average

rates. steam to fee ratio

is less than the

average value

established in the

compliance

determination.

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The operating parameter value monitoring system shall complete a

minimum of one measurement cycle (sampling, analyzing, recording) for

each successive 15-minute period in accordance with

Sec. 63.8(c)(4).3

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\3\The EPA proposed regulations for subpart A of 40 CFR Part 63

on August 11, 1993 at 58 FR 42760. Sources covered by subpart EE

will need to comply with the provisions of subpart A as finally

promulgated.

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D. Test Methods for Compliance

The product of the capture efficiency of the system and the

efficiency of the control device yields the overall efficiency of the

control system. Sources can demonstrate that the overall HAP control

efficiency required by the proposed rule is being met by: (1) Measuring

the capture and control efficiency; or

(2) Performing a liquid-liquid material balance, if a solvent

recovery device is used to control the coating operation only.

The proposed rule allows several ways to calculate the capture

efficiency. The first way to calculate the capture efficiency is to

perform a capture efficiency test in accordance with the provisions of

Sec. 63.705(c) (2) or (3). Another way to demonstrate 100-percent

capture is to meet the total enclosure criteria of Sec. 63.705(c)(4).

The capture efficiency associated with using piping or ductwork to

direct emissions from an affected emission source to a control device

is 100 percent if the requirements of Sec. 63.705(d)(1)(i) are met.

To calculate the efficiency of the control device or to measure the

outlet concentration, the proposed standards allow the use of either

the EPA Method 25A or the EPA Method 18, both of which are found in 40

CFR part 60, appendix A. The EPA Method 25A, which measures control

device efficiency for organic compounds, is the minimum test method

proposed to demonstrate initial compliance with the proposed standards.

The EPA Method 18, which can distinguish control efficiencies for

different species of HAP, is also allowed as an alternative testing

method.

In certain instances, a liquid-liquid material balance conducted in

accordance with Sec. 63.705(c)(1) is proposed to demonstrate ongoing

compliance with the proposed standards. For a solvent recovery device

that controls only the coating operation, a liquid material balance is

performed by continuously measuring solvent applied at the coater. The

overall HAP control efficiency is then calculated over a 3-day rolling

averaging period. A rolling average is the overall average of the

individual averages calculated during a given time period.

The proposed rule requires that the HAP in the wastewater discharge

from a wastewater treatment system be treated by: (1) Using a steam

stripper designed to be 99-percent efficient;

(2) Using a steam stripper such that the total HAP concentration of

the water discharged from the steam stripper is less than 50 ppmw; or

(3) Using an alternate treatment device, approved by the

Administrator, which removes 99 percent of the HAP or reduces HAP to a

concentration of less than 50 ppmw. Any alternate treatment device

should not allow HAP emissions to be merely transferred from the water

phase to the air phase in any uncontrolled manner. To demonstrate

compliance with the proposed rule, an owner or operator must provide

either engineering design calculations that show that the stripper is

designed to achieve a 99-percent removal efficiency, or sample the

wastewater discharged from the stripper using the EPA Method 305 to

show that a total HAP outlet concentration of 50 ppmw is being

achieved. The EPA Method 305 was proposed to be added to appendix A of

part 63 on December 31, 1992 (57 FR 62785). The engineering design

calculations would have to include, at a minimum, the feed rate, steam

rate, number of theoretical trays, number of actual trays, feed

composition, bottoms composition, overheads composition, and inlet feed

temperature. Owners or operators complying with the standards through

use of an alternate treatment device must identify an appropriate

compliance test and ongoing compliance monitoring plan, subject to the

approval of the Administrator.

If an owner or operator complies with the proposed standards for

wash sinks by venting the emissions to a control device, an overall HAP

control efficiency of 88 percent must be determined from the product of

the control device efficiency and the capture efficiency. Determination

of the overall HAP control efficiency is not required in situations

where: (1) The sources are existing sources that have been venting HAP

emissions from the wash sink to the control device since before March

11, 1994;

(2) The system venting HAP emissions from the wash sink to the

control device is in place before March 11, 1994; and

(3) The owner or operator continues venting the wash sink emissions

to the device.

If the owner or operator is an existing source but discontinues the

venting of the sink to the control device, a 75-percent freeboard ratio

must then be maintained.

E. Reporting and Recordkeeping Requirements

The owner or operator of any magnetic tape operation subject to

these proposed standards would be required to fulfill the reporting and

recordkeeping requirements outlined in Sec. 63.10, except as exempted

by Sec. 63.701(a)(2) of the proposed rule.4 These proposed

requirements include those associated with startup, shutdown, or

malfunctions; operation and maintenance records; compliance monitoring

system records; performance test reporting; quarterly reports of excess

emissions; and continuous monitoring system performance reports. The

quarterly reports must contain the monitored value for the periods

constituting exceedances, and a description and timing of steps taken

to address the cause of the exceedances. Owners or operators of

facilities described in Sec. 63.701(a)(2) are not subject to these

requirements of part 63, subpart A. However, such affected sources are

subject to the requirements of Sec. 63.703(g), and must record the

amount of HAP utilized annually and report that quantity to the

Administrator.

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\4\Ibid.

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In addition to the above-proposed requirements, it is proposed that

whenever solvent is added to the wash sink, the owner or operator of a

magnetic tape manufacturing operation that uses wash sinks containing

HAP to clean removable parts shall calculate and record the freeboard

ratio of each sink, if maintenance of a freeboard ratio is the chosen

compliance method. Times during which a freeboard ratio of 75 percent

or greater is not maintained is a violation of the standards and should

be noted in the aforementioned quarterly reporting.

II. List of Source Categories

Section 112 of the amended Act requires that the EPA evaluate and

control emissions of HAP. The control of HAP is achieved through

promulgation of emission standards under sections 112(d) and 112(f) and

work practice and equipment standards under section 112(h) for

categories of sources that emit HAP. On July 16, 1992, the EPA

published an initial list of major and area source categories to be

regulated (57 FR 31576). Included on that list were major sources

emitting HAP from magnetic tape manufacturing operations. Thus, the

source categories to be regulated by the proposed standards are

existing and new major sources emitting HAP from magnetic tape

manufacturing operations.

There are a total of 25 facilities that make up the magnetic tape

source category. For the purposes of estimating environmental, energy,

cost, and economic impacts, an evaluation was conducted to determine

which sources would be subject to the proposed rule. Of the 25

facilities, 14 were determined to meet the major source definition. One

of these major sources is expected to fall below the solvent usage

cutoff identified in Sec. 63.701(a)(2) and will therefore only be

subject to recordkeeping and reporting requirements. The remaining 11

sources are not expected to be major and, thus, are not expected to be

regulated by these standards.

Since 1988, 17 magnetic tape manufacturing facilities have ceased

operation. However, six new coating lines were constructed; two are

located at two new plants and the remaining four were added to four

existing facilities. No new plants are expected to be built over the

next 5 years, although the trend of adding new lines to existing

facilities is expected to continue at the same rate. Therefore, six new

lines are expected to be built over the next 5 years, an approximate

rate of one per year.

III. Background

Magnetic tape manufacturing operations have previously been

regulated by the EPA. The new source performance standards (NSPS) for

the magnetic tape manufacturing industry were promulgated on October 3,

1988 (53 FR 38892). The NSPS are national standards that limit volatile

organic compound (VOC) emissions from the coating operation and the mix

preparation steps at new magnetic tape manufacturing facilities.

The NSPS include control requirements for new coating operations

using greater than or equal to 38 cubic meters (m\3\) (10,000 gallons

[gal]) of solvent per year and for modified or reconstructed coating

operations using 370 m\3\ (98,000 gal) of solvent per year. Coating

operations that are below these solvent usages are subject only to

reporting and recordkeeping requirements.

The NSPS require new coating operations to recover or destroy 93

percent of the VOC content of the solvent applied at the coater. This

same requirement applies to any modified or reconstructed coating

operation that was achieving less than 90-percent control when it was

modified or reconstructed. However, an existing coating operation that

demonstrates an overall VOC control efficiency greater than or equal to

90 percent before modification or reconstruction is not required to add

additional controls but has to maintain an overall control level equal

to or greater than the previously demonstrated control (up to an

overall VOC control efficiency of 93 percent).

The NSPS also require new mix preparation equipment to be covered

and vented to the 95-percent efficient control device if it is

constructed concurrently with any control device other than a

condenser. For other cases, at a minimum, mix preparation equipment has

to be equipped with a cover meeting particular specifications.

Under the NSPS, sources can also comply with the rule by using

coatings that contain a maximum of 0.2 kilograms of VOC per liter of

coating solids as calculated on a weighted average basis for each

nominal 1-month period. Since the promulgation of the NSPS, no source

subject to the rule has complied by meeting this provision of the

standards.

As of the date of proposal of the NSPS (January 22, 1986), any new,

modified, or reconstructed lines in any State are subject to the NSPS.

As of March 1993, six coating lines are known to be subject to the

NSPS.

In addition to the NSPS, several State regulations that apply to

the magnetic tape manufacturing industry have been developed. Twenty-

eight States limit VOC emissions by requiring that the coatings used

contain less than 347 grams per liter (g/L) (2.9 pounds per gallon [lb/

gal]) of coating applied, excluding water. This applies to 12 operating

facilities and was recommended by a 1977 Federal control techniques

guideline (CTG) for existing stationary sources (``Control of Volatile

Organic Emissions from Existing Stationary Sources--Volume II: Surface

Coatings of Cans, Coils, Paper, Fabrics, Automobiles, and Light-Duty

Trucks,'' Document No. EPA-450/2-77-008). Based on the average VOC

content of the coatings used by the magnetic tape industry, this is

approximately equal to 83-percent control. Two States limit VOC

emissions by requiring that the coatings used contain less than 359 g/L

(3.0 lb/gal) of VOC. One facility is located in one of those States and

is therefore subject to this requirement. Five facilities in California

are subject to rules that limit the VOC content of their coatings to

either 120 g/L (1.0 lb/gal) or 264 g/L (2.2 lb/gal) of VOC, depending

upon local district regulations. All of the above coating limits can

also be met through the use of add-on controls, which is the method all

known magnetic tape facilities have chosen for compliance. Finally,

four facilities are located in ozone attainment areas regulated by the

national ambient air quality standards and are not subject to

additional control requirements at this time.

There has also been some regulation of VOC emissions from cleaning

activities in the magnetic tape industry. In California, the Bay Area

Air Quality Management District requires that owners or operators

maintain a minimum freeboard ratio in their wash sinks or vent wash

sink emissions to a control device. Four facilities are located in the

California Bay Area. Illinois requires facilities with VOC emissions

greater than 110 Mg/yr (100 tons/yr) that are located in nonattainment

areas to cover vessels during cleaning. However, there are no known

magnetic tape manufacturing sources with VOC emissions above this level

located in Illinois.

In developing today's proposed standards under the Act, the Agency

used the information gathered through its previous regulatory

activities, described above, to the greatest extent possible. The

status of the proposed standards and the basis for selecting the

regulatory alternatives were presented to the National Air Pollution

Control Techniques Advisory Committee (NAPCTAC) in November 1992 at a

meeting attended by industry, State and local regulatory agency

representatives, and representatives from environmental groups.

IV. Authority for National Emission Standards for Hazardous Air

Pollutants Decision Process

A. Source of Authority for NESHAP Development

Section 112 of the Clean Air Act gives the Environmental Protection

Agency the authority to establish national standards to reduce air

emissions from sources that emit one or more HAP. Section 112(b)

contains a list of HAP to be regulated by NESHAP. Section 112(c)

directs the Agency to use this pollutant list to develop and publish a

list of source categories for which NESHAP will be developed; this list

was published in the Federal Register on July 16, 1992 (57 FR 31576).

The Agency must list all known categories and subcategories of ``major

sources'' that emit one or more of the listed HAP. A major source is

defined in section 112(a) 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 in the aggregate,

considering controls, 10 tons per year or more of any one HAP or 25

tons per year or more of any combination of HAP.

B. Criteria for Development of NESHAP

The NESHAP are to be developed to control HAP emissions from both

new and existing sources according to the statutory directives set out

in section 112(d) of the Act. The statute requires the standards to

reflect the maximum degree of reduction in emissions of HAP that is

achievable for new or existing sources. This control level is referred

to as the ``maximum achievable control technology'' (MACT). The

selection of MACT must reflect consideration of the cost of achieving

the emission reduction, any non-air quality health and environmental

impacts, and energy requirements for control levels more stringent than

the floor (described below).

The MACT floor is the least stringent level for MACT standards. For

new sources, the standards for a source category or subcategory ``shall

not be less stringent than the emission control that is achieved in

practice by the best controlled similar source, as determined by the

Administrator'' (section 112(d)(3)). Existing source standards should

be no less stringent than the average emission limitation achieved by

the best performing 12 percent of the existing sources for categories

and subcategories with 30 or more sources or the average emission

limitation achieved by the best performing 5 sources for categories or

subcategories with fewer than 30 sources (section 112(d)(3)).

V. Summary of Environmental, Energy, Economic and Cost Impacts

A. Environmental Impacts

This section will discuss the incremental increase or decrease in

air pollution, water pollution and solid waste generation that would

result from implementing the proposed standards. Nationwide impacts are

provided for existing sources and new sources. The impacts on new

sources are based on a projected six new lines in the industry that

would be located at existing plants; no new plants are expected to be

built. The sizes of the new lines are expected to reflect the sizes of

existing lines; four are estimated to be large, one to be medium, and

one to be small. Impacts on new sources are presented on a per-line

basis in chapter 7 of the BID (see ADDRESSES). The estimated impacts on

existing and new sources are also summarized in sections VI.C and VI.D

in comparing the two regulatory alternatives considered for the

proposed standards.

1. Air Pollution Impacts

The HAP emissions from most of the emission points can be

controlled by the use of add-on control equipment such as carbon

adsorbers, condensers and incinerators. At other emission points,

equipment standards and work practice standards are proposed to limit

HAP emissions. Emissions of VOC that are both HAP and non-HAP may be

controlled in the process of meeting the requirements for HAP removal.

The quantity of those non-HAP VOC's that will be removed, however, has

not been quantified. The estimated primary and secondary air pollution

impacts that would result from implementing each alternative are

summarized below for new and existing sources.

a. Primary air pollution impacts. The immediate air pollution

impacts caused by the proposed standards would be a reduction in the

emission of solvent HAP by the source category. At baseline conditions

(i.e., the conditions that exist in the absence of NESHAP), total

solvent HAP emissions from existing sources are estimated to be 4,060

Mg/yr (4,470 tons/yr). If the proposed standards were enacted, these

emissions would drop to approximately 1,980 Mg/yr (2,170 tons/yr). This

is a total estimated HAP emission reduction of 2,080 Mg/yr (2,300 tons/

yr). The HAP emission reduction could also potentially result in a

decline in ambient VOC levels, and therefore a reduction in ozone and

photochemical smog formation. For new sources built over the next 5

years, the proposed standards are estimated to reduce solvent HAP

emissions from a baseline level of 368 Mg/yr (405 tons/yr) to a level

of 227 Mg/yr (250 tons/yr), an incremental reduction of 141 Mg/yr (155

tons/yr).

The proposed standards are also estimated to reduce HAP

particulates from existing sources by 0.27 Mg/yr (0.3 ton/yr), from an

estimated baseline level of 0.39 Mg/yr (0.43 ton/yr) to a level of

approximately 0.12 Mg/yr (0.13 ton/yr). At new sources, particulate

emissions are expected to be reduced by approximately 2 Mg/yr (2.2 ton/

yr), from a baseline level of 2.1 Mg/yr (2.3 ton/yr) to a level of 0.12

Mg/yr (0.14 ton/yr). The baseline emissions of particulate HAP are

greater for new sources than for existing sources because of

assumptions made for new sources. All new sources were assumed to use

particulate HAP, whereas particulate HAP are not used at all existing

sources. Also, some existing sources control emissions of particulate

HAP. Since the NSPS do not require control of particulate HAP, it was

assumed that new source emissions of particulate HAP would be

uncontrolled.

b. Secondary air pollution impacts. Secondary emissions of air

pollutants result from generation of the energy needed to operate the

control devices required by the proposed standards. For those

facilities that currently operate a control device, the energy

requirements of the proposed standards are incremental, i.e., in

addition to the current energy expended at a facility. The combustion

of natural gas in incinerators will result in particulate matter (PM),

nitrogen oxides (NOx), and carbon monoxide (CO) emissions. The

combustion of fuel oil in the boiler used to produce steam for the

fixed-bed carbon adsorption system will result in PM, NOx, and sulfur

oxide (SOx) emissions.

As a result of implementing the proposed standards at existing

sources, PM emissions are estimated to increase by 1.3 Mg/yr (1.4 tons/

yr), NOx emissions are estimated to increase by 4 Mg/yr (4.4 tons/yr),

SOx emissions are estimated to increase by 17 Mg/yr (19 tons/yr), and

CO emissions are estimated to increase by less than 0.01 Mg/yr (0.01

ton/yr). The magnitude of the secondary pollutants generated by the

operation of the control devices is expected to be much smaller than

the magnitude of the HAP emissions being reduced. Under the proposed

standards, 23 Mg/yr (25 tons/yr) of secondary pollutants are

anticipated but 2,080 Mg/yr (2,300 tons/yr) of HAP emissions would be

expected to be reduced. At new sources, 0.4 Mg/yr (0.5 ton/yr) of PM

emissions, 5.4 Mg/yr (6 ton/yr) of SOx emissions, and 1.3 Mg/yr (1.4

ton/yr) of NOx emissions are estimated to be generated. Secondary

pollutants projected for new sources are based on all new sources using

carbon adsorption as a control technology. As with existing sources,

secondary impacts are expected to be small compared to primary air

pollution impacts.

2. Water Pollution Impacts

The only wastewater stream generated from magnetic tape

manufacturing operations results when the carbon bed in the carbon

adsorption system becomes saturated with HAP and is desorbed with

steam. Once the steam (containing solvent) is condensed and the solvent

removed from it, the resulting water is discharged to a POTW. (See

discussion of wastewater treatment systems in section VI.B.) Because

the proposed standards require that additional HAP air emissions be

controlled over baseline conditions, more HAP may be processed through

the wastewater treatment system. Because steam will be used, a greater

quantity of water is expected to be discharged. It has been estimated

that at existing sources an additional 5,600,000 L (1,460,000 gal)

would be discharged under the proposed standards. This wastewater is

from the three major sources that are known to perform wastewater

treatment (as defined in the proposed rule) onsite. Assuming a HAP

content of 50 ppmw in the wastewater, the waterborne HAP discharged

from this source would be 0.28 Mg/yr (0.31 ton/yr). At new sources, the

wastewater discharge that would result is estimated to be 1,024,000 L/

yr (271,000 gal/yr). The associated HAP discharged in this wastewater

is estimated to be 0.05 Mg/yr (0.06 ton/yr).

3. Solid Waste Impacts

The only solid waste impacts from the add-on control systems come

from carbon adsorption units. Solid waste impacts resulting from the

proposed standards are only those impacts that are in addition to the

solid waste currently generated at a magnetic tape manufacturing

operation (i.e., incremental over baseline). It is assumed that the

control of the additional emission points at an affected source that

has an existing carbon adsorption system would not decrease the life of

the carbon bed. Thus, there are no incremental solid waste impacts from

these sources. Solid waste will result from existing sources that

require new carbon adsorption systems in order to comply with the

proposed standards. It is estimated that one existing source will add a

carbon adsorption system to meet the requirements of the proposed

standards. The annual solid waste impacts of the proposed standards

that are expected to result from the operation of the new carbon

adsorption system are estimated to be less than 0.1 Mg/yr (0.1 ton/yr).

Likewise, for new sources, solid waste impacts will only result from

the addition of small lines that are installed at a currently

uncontrolled plant. These impacts are estimated to be less than 0.01

Mg/yr (0.01 ton/yr). All of these impacts were determined under the

assumption that carbon beds have an average life of 5 years.

B. Energy Impacts

The energy impacts from the proposed standards are a result of: (1)

The additional natural gas required by those facilities currently using

incineration,

(2) The fuel necessary to produce the additional steam required by

existing carbon adsorption systems, and

(3) The additional electricity requirements associated with control

device operation as well as the operation of the ventilation fan

required for controlling particulate HAP emissions.

Under the proposed standards for existing sources, natural gas

consumption is estimated to increase by 70 GJ/yr (65 x 106 Btu/

yr), steam consumption is estimated to increase by 20,160 GJ/yr (19,125

x 106 Btu/yr), and electricity consumption is estimated to

increase by 600 GJ/yr (570 x 106 Btu/yr). The total increase in

energy requirements for existing sources would be 20,830 GJ/yr (19,760

x 106 Btu/yr). For new sources it is assumed that carbon

adsorption systems would be used because this is the type of control

device used predominantly in the industry. The increase in steam

consumption would be approximately 6,430 GJ/yr (6,100 x 106 Btu/

yr) and the increase in electricity consumption would be approximately

33 GJ/yr (31 x 106 Btu/yr).

C. Economic Impacts

The economic impact analysis estimates that only one affected

source may experience adverse economic impacts. This result should not

adversely affect the magnetic tape manufacturing industry, the economy,

competition, or any other economic concerns.

An analysis was conducted to assess the economic impacts of the

proposed regulation. Price, output, and employment impacts were

calculated on a facility-specific basis as well as on an industry-wide

basis. A worst-case scenario was used to calculate the facility-

specific impacts.

The analysis calculated price impacts on magnetic tape products

such as blank recording, audio, and computer media. The facility-

specific impact calculations indicated that in order for each facility

to recover its control costs fully, a minimum price increase of

approximately 0 percent would be required of some facilities while a

maximum price increase of approximately 5 percent would be required of

the marginal facility. Of the 13 facilities for which impacts were

calculated, 4 facilities were predicted to be required to increase

their prices by approximately 1 percent or greater.

The analysis recognized, however, that some facilities may be able

to absorb a portion of their increased costs. Therefore, an additional

analysis was conducted for the 4 facilities expected to experience

price increases of approximately 1 percent or greater. An examination

of the regulation's effect on the facilities' net income and capital

availability revealed that one facility would be significantly

impacted. This facility has been identified as a small business.

The economic analysis also examined the proposed regulation's

impact on industry output and employment. The magnetic tape industry is

expected to experience a 0.1-percent reduction in output. Assuming a

one-to-one relationship between output and employment, the industry can

also be expected to experience a similar reduction in employment.

D. Cost Impacts

For existing major sources, the proposed standards are estimated to

result in a total industry-wide capital investment of $2,263,600. This

cost includes the capital cost of control devices required to achieve

compliance with the proposed standards. The annual cost associated with

the proposed standards is $400,120/yr. This cost includes the capital

cost of control (annualized, assuming a 7-percent interest rate and a

10-year equipment life), annual compliance costs including initial

performance tests and ongoing monitoring, and annual reporting and

recordkeeping costs. The annual control cost is approximately $174,240/

yr, the annual compliance cost is approximately $115,640/yr, and the

annual reporting and recordkeeping costs are approximately $110,240/yr.

The associated cost effectiveness of the proposed standards is

estimated as $190/Mg ($170/ton). For new sources, the costs vary

depending on whether a carbon adsorber or an incinerator is the control

device used. With either system, the total capital investment of the

proposed standards is approximately $500,000. The total annual costs,

which include all of the items cited above, are estimated to be

$349,360/yr, with an associated cost effectiveness of $2,470/Mg

($2,250/ton) if a carbon adsorption system is used. To compare the

costs of various control devices, the cost analysis was also repeated

assuming incineration was used at new sources. If an incinerator is

used, the annual costs are estimated as $270,367 with an associated

cost effectiveness of $1,910/Mg/yr ($1,740/ton/yr).

VI. Rationale

This section describes the decisions made by the Administrator to

select the proposed standards.

A. Selection of Pollutant and Source Category for Control

In this section, the pollutants and source category selected for

control by the proposed standards are identified. The potential for

subcategorization and the solvent usage cutoff established for this

source category are also discussed. Finally, a discussion of area

source regulation is presented.

1. Identification of Pollutants and Source Category

Magnetic tape manufacturing operations are sources of both VOC and

particulate emissions. The specific pollutants regulated by the

proposed standards are those VOC's and particulates that are listed as

HAP in section 112(b) of the amended Act.

The solvent HAP typically used in the magnetic tape manufacturing

industry are methyl ethyl ketone (MEK), methyl isobutyl ketone (MIBK),

toluene, xylene, and ethyl benzene. These HAP are used predominantly in

the coating operations. The HAP used for cleaning are most typically

MEK and toluene. All of these HAP are also VOC's. Other non-HAP

solvents that are used in magnetic tape operations are tetrahydrofuran,

cyclohexanone, and acetone. Acetone is used only for those magnetic

tape manufacturing operations involving a paper substrate.

Particulates, which are magnetic particles containing iron, chrome,

and/or cobalt, are also used in this industry. The particulate HAP used

are those containing cobalt and chromium.

As discussed earlier, the list of source categories for which

NESHAP will be developed was published in the Federal Register on July

16, 1992 (57 FR 31576), and includes major sources performing magnetic

tape manufacturing operations. Thus, emissions of HAP from new and

existing major magnetic tape manufacturing operations are being

regulated by the proposed rulemaking.

Products that are manufactured as a result of magnetic tape

manufacturing operations include magnetic products such as audio and

video tape and computer diskettes, and non-magnetic products such as

leader tape. Leader tape is the tape at the beginning of an audio or

video cassette that does not contain magnetic media; it is manufactured

using the same methods as magnetic tape. Therefore, leader tape

production is included in the definition of magnetic tape manufacturing

operations.

There may also be some facilities in this source category that

produce multiple products, some that involve magnetic media and some

that do not. In cases where the nonmagnetic tape products are produced

using the same pieces of equipment as the magnetic tape products, and

the manufacture of nonmagnetic products uses HAP such as HAP solvent,

the Agency is proposing that the pieces of equipment being used for

both magnetic and non-magnetic products be controlled, regardless of

which product is being manufactured. The process (and hence emissions

of HAP) is essentially the same except that no magnetic particles are

added to the coating mix. The control systems would be in place and

would be applicable for both products. This regulation, therefore,

applies to all products produced at magnetic tape production facilities

(provided HAP are used in the production), regardless of whether

magnetic particles are added to the coating mix, as long as the same or

some of the same equipment is used. Equipment that coexists with

magnetic tape equipment but is never used in magnetic tape

manufacturing does not need to be controlled even if HAP are emitted.

At sources where research or laboratory facilities are collocated

with production lines, the research or laboratory facilities are

subject to the proposed standards. The close proximity of these lines

allows control of the research or laboratory facilities by production

line control devices. The mix of solvents used in research or

laboratory facilities may differ from those used on production lines,

and affect operation of the control device. Therefore, the costs to

control the variety of solvents that would be used in research or

laboratory facilities were considered in calculating control costs.

The proposed definition of research or laboratory facility is from

section 112(c)(7) of the CAA. One of the criteria in the definition is

that the facility is not engaged in the manufacture of products for

commercial sale, except in a de minimis manner. The EPA is soliciting

comments on what the sale of products in a de minimis manner would be

for the magnetic tape manufacturing industry, including if research

facilities sell any products.

The process for manufacturing magnetic and leader tape consists of

mixing the coating ingredients (magnetic particles for magnetic tape,

resins and solvents for both types of tape), conditioning the base

film, applying the coating to the base film

(either a plastic or paper substrate), orienting the magnetic particles

(magnetic tape), removing the solvents by evaporation in a drying oven,

and finishing the tape by calendering, rewinding, slitting, testing,

and packaging. Most of the HAP emissions from magnetic tape

manufacturing operations result from the coating operation, and to a

lesser degree from the ancillary activities such as solvent storage,

mix preparation, transferring solvent through piping, equipment

cleaning, treatment of solvent-laden waste material, and wastewater

treatment.

This source category was evaluated to determine if

subcategorization was appropriate. The Agency's analysis indicates that

no subcategorization is necessary. There are no distinct process

differences within the source category and no distinction between sizes

of facilities in terms of what controls are technically feasible. Both

small and large existing sources have implemented the control

technologies that form the basis for MACT.

2. Criteria for Applicability Determination

Only major sources are being regulated by the proposed standards. A

source is considered major if it has the potential to emit, considering

controls, greater than 9.1 Mg/yr (10 tons/yr) of any one HAP or 22.7

Mg/yr (25 tons/yr) of multiple HAP. (Area sources were evaluated to

determine if they should be regulated; see discussion that follows.)

One way to make the determination of whether a source is an area source

or a major source is to conduct a facility-wide material balance of

solvent and particulate HAP used at the plant. Any HAP that is not

recovered or controlled contributes to the potential HAP emissions from

a facility. It is important to note that the major source determination

is based on the total, potential HAP emitted annually inside the

fenceline of a facility, not just from magnetic tape manufacturing

operations. Potential emissions are estimated assuming operations occur

24 hours per day, 365 days per year.

For this source category, a solvent usage cutoff has also been

proposed. Major sources that use less than 9.1 Mg/yr (10 tons/yr) of

any one HAP or 22.7 Mg/yr (25 tons/yr) of multiple HAP are only subject

to an annual reporting requirement (Sec. 63.703(g) of the proposed

regulation), and are not subject to the control provisions of these

standards or to some provisions of part 63, subpart A. A solvent usage

cutoff was proposed to mitigate the impacts on some facilities in the

industry as a result of the definition of potential to emit. The

``potential to emit'' is defined in part 70 and the proposed General

Provisions to part 63 (58 FR 42760) as, ``the maximum capacity of a

stationary source to emit a pollutant under its physical and

operational design,'' and ``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.''

For the magnetic tape industry, it is conceivable that a plant

would be physically and operationally designed to operate 24 hours per

day, 365 days per year, because coating operations are continuous. This

is particularly true for those facilities whose primary products are

magnetic media and whose operations have been reported to operate on a

more or less continuous basis. Some facilities, however, may produce

magnetic tape as only one segment of their total manufacturing process.

For example, one plant is known to produce magnetic tape on a limited

basis and operate the magnetic tape coating lines for only a few days

every year, so its actual emissions are much less than 10 tons/yr of

any one HAP or 25 tons/yr of multiple HAP. It is unlikely that this

plant would begin producing magnetic tape on a continuous basis. Based

on potential to emit, however, this facility could be considered a

major source and therefore be subject to all requirements of the

proposed standard.

The cutoff value was selected so that it would not allow any major

source that actually emits more than 10 tons/yr of any one HAP or 25

tons/yr of multiple HAP to be exempt from the control requirements. The

solvent usage cutoff is equal to the major source emissions criteria

because in the absence of control, almost all of the solvent used by a

facility would be emitted. Therefore, even if a facility had no

controls in place, if the solvent usage were below the cutoff, it would

not be emitting greater than 9.1 Mg/yr of one HAP or 22.5 Mg/yr (25

tons/yr) of multiple HAP.

As discussed above, a cutoff established at this level would ensure

that all major sources are subject to the proposed control

requirements. However, once an owner or operator is subject to all

control provisions of the standards by virtue of being a major source

and exceeding the solvent usage cutoff, the usage cutoff is no longer a

basis for determining applicability to the control requirements. That

is, a subsequent reduction in HAP solvent usage alone would not be

sufficient to allow a source to avoid compliance with the proposed

controls. The reason for this is that the source would already have the

controls in place and operational. Therefore, the source should

continue to operate them according to the rule.

Based on information currently available to the EPA, only one

existing facility is a major source that would be exempt from the

proposed control requirements because its solvent usage is estimated to

remain below the proposed solvent usage cutoff. This source would still

be subject to the annual solvent usage reporting and recordkeeping

requirement required by 63.703(g).

3. Area Source Evaluation

The Act provides the Administrator with authority to regulate area

sources. An area source is defined as one that is not a major source.

In order to list a category of area sources for regulation, the

Administrator must find that the sources in a category, individually or

in aggregate, pose a threat of adverse effects to human health or the

environment, warranting regulation under section 112.

For the purpose of estimating the number of major sources, the

Agency examined each source's potential to emit, considering controls.

Many of the magnetic tape manufacturing operations already have

emissions controls in place that reduce their emissions to below the

criteria for major sources. For estimating the number of major sources,

the Agency assumed that the emission limitations would be federally

enforceable, and therefore highly controlled sources would not be

``major'' for the purposes of the magnetic tape manufacturing NESHAP.

Of the 25 known facilities in this source category, 11 are considered

to be area sources based on the Agency's estimate of their potential

HAP emissions. The data available on the area sources were evaluated to

determine whether regulation of area sources should be proposed.

Two of the area sources are research or laboratory facilities as

defined by section 112(c)(7) and as such are not subject to the

standards. (Research or laboratory facilities collocated with

production facilities are subject to the standards.) Area source 3 uses

particulate HAP only; emissions are estimated to be less than 1 pound

per year. Area source 4 uses a combination of HAP and non-HAP solvent;

because the quantity of HAP solvents used is less than the quantity of

non-HAP solvents, total HAP emissions are low, approximately 5 Mg/yr.

Area source 5 also uses a combination of HAP and non-HAP solvents in

their magnetic tape operations. At one time Area source 5 was

considered a major source, but this source has recently implemented

strict controls on cleaning solvent emissions. Based on the Agency's

estimate of the reduction in solvent emissions, this source is now

considered an area source. Area source 6 also uses HAP and non-HAP

solvents, and most of the solvents used are HAP. However, this

particular source is highly controlled and is therefore only emitting

approximately 5 Mg/yr of HAP. Area sources 7 through 11 do not use any

HAP in magnetic tape operations. Therefore, unless they switch their

operations to begin using HAP, they are not subject to the standards.

None of these sources are collocated at major sources. If any of these

area sources becomes a major source, they would have to notify the

Agency and will have 1 year from the date on which they became major

sources to install control devices to conform to the proposed standard.

As noted above, section 112(c) states that categories of area

sources emitting HAP may be listed and regulated if the Administrator

finds the sources, individually or in the aggregate, present a threat

of adverse effects to human health or the environment (see 57 FR 31576:

July 16, 1992, for further discussion of this statutory language). To

determine a threat of adverse effects, the Agency examines available

data on facilities, emissions, and health and environmental effects of

the emitted HAP. In this case, the Agency has adequate health data for

determining whether there is a likely threat of adverse effects to

humans for area sources emitting toluene and MEK. The Agency conducted

a screening analysis of sources emitting these chemicals, either alone

or in combination. Based on this analysis, the Agency does not believe

there is a threat of adverse effects from the area sources of magnetic

tape facilities that emit these two chemicals. For the remaining

emitted HAP, data required to determine the potential for adverse

effects are inadequate. As such, the Agency is unable to determine

whether there is a threat of adverse effects from area sources emitting

any other combination of HAP. The Agency may repeat the analyses of

these sources in the future, to evaluate the potential for human health

and environmental effects, if appropriate data become available. Until

such analyses are conducted, the Agency will not regulate area sources

in this rule.

B. Selection of Emission Points

The Agency examined all known HAP emission points associated with

the manufacturing of magnetic tape for potential control. They are

described below.

a. Solvent storage tanks. Small tanks are generally used to store

the solvent HAP, which may be virgin material, spent solvent from

cleaning or from off-specification mixes, or solvent from any stage of

the solvent recovery process. The tanks operate at or slightly above

atmospheric pressure. A facility typically has from 1 to 12 storage

tanks, with a total capacity ranging from 757 to 75,700 liters (L) (200

to 20,000 gallons [gal]). Storage tanks, as discussed in the proposed

rulemaking, do not refer to tanks that are part of the process (e.g.,

mix preparation equipment). The HAP emissions from storage tanks to the

air occur through working losses during tank loading or breathing

losses due to diurnal temperature changes.

b. Mix preparation equipment and particulate transfer operations.

The mix preparation usually takes place in a room or rooms separate

from the coating line. The components of the mix are first blended and

then transferred to a series of mills to disperse the aggregates of

magnetic particles without reducing particle size. The mix is

circulated and filtered in holding tanks to prevent binders from

curing, metal particles from settling out, and to remove any oversize

contaminants. The coating mix is pumped to and from the different

pieces of mix preparation equipment through closed lines. The mix

preparation equipment to be controlled by the proposed standards

includes all of the equipment used in preparing the coating mix

including mixers, holding tanks, and polishing tanks. Mills, which are

pressurized equipment used for thoroughly dispersing the aggregates of

magnetic particles without reducing particle size, are not included as

mix preparation equipment. This is because these pieces of equipment

are under pressure and, as such, no emissions are expected, nor could

they be vented to a control device.

Particulate HAP can either be transferred through closed systems or

can be manually poured through hatches in the covers of the mix

preparation equipment. A small amount of particulate HAP is emitted

while transferring particulate from the bag or storage bin to the mix

tank.

c. Coating operation. In the coater, the substrate to be used for

the magnetic or leader tape passes over a support roll while the

coating mix is applied. The thickness and amount of coating applied

vary with the product. During the coating application step, some

solvent HAP will volatilize. The amount that is emitted depends on

site-specific variables such as the coating mix composition and the

type of coater. Immediately following the coater, magnetic tape is

guided through an orientation field consisting of an electromagnet or

permanent magnet, which aligns the individual magnetic particles in the

direction of the intended recording. (Leader tape does not go through

the orientation process because magnetic particles are not used.) The

magnetic or leader tape is passed through a drying oven, where the

remaining solvents in the coating mix evaporate. It is expected that

any solvents on the coated tape that are going to evaporate will do so

by this point in the process. Therefore, there is no solvent

evaporation in subsequent steps. After drying, the finished product may

be: (1) Calendered to compact the dry coating and to smooth the

surface;

(2) Slit to the desired width; and

(3) Packaged and labelled, either in parts produced in-house or in

pre-purchased plastic casings.

d. Cleaning activities. Cleaning is a task performed differently at

each plant. Some plants may clean equipment between each batch of

coating, while others may clean only between product changes. Sometimes

virgin solvent is used once and immediately treated as a waste. At

other plants, cleaning solvent may be used several times before it is

considered ``spent.''

Four basic categories of cleaning activities have been identified

for this industry: (1) Flushing fixed lines; (2) Cleaning tanks; (3)

Cleaning fixed exterior surfaces; and (4) Cleaning miscellaneous

removable parts.

The flushing of fixed lines involves flushing solvent through fixed

lines not associated with the cleaning of a tank (e.g., the line from

the mix preparation equipment to the coater). A fixed line is one that

is stationary during normal operation but can be removed from its

original location for cleaning. Emissions can occur if the solvent used

for cleaning or collected after cleaning has occurred is exposed to the

air.

Tank cleaning may be either an open-top or closed-top process.

Open-top tank cleaning is the practice of cleaning a tank that either

has no cover or whose cover has been removed. Solvent may be added and

drained via buckets or pipes. The interior of the tank may be manually

cleaned with brushes while the solvent is in it. Closed-top tank

cleaning is the practice of cleaning a tank while using a cover that

seals the top of the tank. Solvent is added to and drained from the

tank via pipes. An automated brush inside the tank may scrub the sides

while the solvent is in the closed tank. Emissions occur when the

solvent used in the cleaning process is exposed to the air, and in a

closed system, equipment leak emissions also occur. Based on test data

from industry, emissions from both types of cleaning processes are

approximately equal.

Cleaning fixed exterior surfaces involves cleaning the surface area

of a fixed piece of equipment with rags or brushes. The solvent that is

on the rag or brush evaporates to the air. The surfaces to be cleaned

are typically on the coater. The ventilation system of the enclosure

around the coater draws these emissions to the outside air.

Cleaning removable parts involves cleaning parts that have been

moved from their normal position to a wash tank or sink containing

solvent. The solvent is volatile and thus evaporates into the air above

the sink. The sink is usually ventilated; thus emissions are discharged

to the atmosphere.

Rags used for miscellaneous cleaning activities will contain some

residual solvent and will therefore result in air emissions.

e. Waste handling devices. The two waste handling devices most

commonly used in the magnetic tape manufacturing industry are pot

stills and filter dryers. Both are devices in which solvents are

recovered from waste materials. In the pot still, liquid wastes are

pumped through closed piping into the pot still and heated to evaporate

the solvent portion of the waste. The filter dryer is used to treat

solid wastes such as filters, rags, and brushes, which are manually

placed in the dryer and heated to evaporate the solvent portion. With

both the pot still and the filter dryer, the evaporated solvent is

condensed, and the recovered liquid sent to a storage tank. Air

emissions may occur through the condenser vent.

f. Wastewater treatment. At a magnetic tape manufacturing facility,

the only significant source of wastewater that contains HAP results

from steam desorption of the carbon adsorption system beds used to

recover HAP air emissions. After the steam desorbs the carbon adsorber

bed, the solvent/water mixture is condensed and separated by gravity

into distinct solvent and water phases.

The solvent phase is distilled to separate it into its individual

components. Potential air emissions could result from residual solvents

in the water phase if it is not further treated prior to discharge to

the publicly owned treatment works (POTW). At magnetic tape

manufacturing facilities, the water phase is treated through steam

stripping to remove residual solvent. The solvent compounds recovered

through steam stripping are then purified into the individual solvent

components.

g. Condenser vents in the solvent recovery area. The solvent

recovery area is that area in a plant that contains the equipment used

to: (1) Remove HAP solvent from the air stream; (2) recover the

solvent; and (3) purify the solvent for reuse in the process. At a

magnetic tape manufacturing facility, this equipment would include the

control device (a carbon adsorption system or condenser), the

wastewater treatment system (in the case of carbon adsorbers), and

distillation units. Emissions of HAP to the air occur in the solvent

recovery area from atmospheric condenser vents, including condenser

vents on the steam stripper distillation columns and condenser vents to

condense steam from carbon adsorber regeneration. The vent on a

condenser that is used as a primary air emission control device is not

considered part of this emission point.

h. Equipment leaks. In magnetic tape manufacturing operations,

solvent is pumped through piping and process equipment as it travels to

or from storage tanks and from the mix preparation equipment to the

coater. Facilities that perform onsite solvent recovery and wastewater

treatment will also have process piping and equipment within these

areas. The volatile HAP will be emitted through leaks from equipment

such as pumps, compressors, pressure relief devices, sampling

connection systems, open-ended valves or lines, and flanges or any

other connecter in VOC service.

i. Packaging and labeling. This process occurs after the product

has been coated, rewound, and slit into the desired width (or punched

into diskettes). Whatever the final form of the product, printed

materials such as labels, boxes, and inserts are usually part of the

final package. Most facilities purchase these items preprinted. Two,

however, are known to print product identification codes on boxes. This

operation involves HAP solvents (contained in the ink) that volatilize

as the ink dries.

C. Selection of Basis and Level of the Proposed Standard for Existing

Sources

1. Selection of the Maximum Achievable Control Technology Floor

Section 112 requires the Agency to set standards for new and

existing sources of HAP emissions that represent the maximum degree of

reduction achievable, taking into consideration the cost of achieving

such emission reductions, as well as any non-air quality health and

environmental impacts and energy requirements. As discussed in section

IV.B., this level of control cannot be less stringent than the MACT

floor. For existing sources in source categories with less than 30

sources, such as this one, the MACT floor is the average emission

limitation achieved by the best performing 5 sources in the source

category.

The EPA is considering more than one interpretation of the

statutory language concerning the MACT floor for existing sources. In

the case of this standard, the EPA does not believe that the legal

interpretation would make a difference for most of these emissions

points. However, for particulate transfer operations (discussed later

in this section and also in section VI.G of this preamble), there is a

possibility that one of the five best performing sources in fact is

achieving a lower level of control and, in this case, the

interpretation of the MACT floor could make a difference. The EPA is

soliciting comment on the different legal interpretations of the

statutory language in a separate Federal Register notice, which is a

reopening of the comment period for the national emission standards for

hazardous organic air pollutants from the synthetic organic chemical

manufacturing industry. Persons wishing to comment on the legal

interpretations should refer to that rulemaking and submit comments to

docket number A-90-19. However, comments on the MACT floor analysis

that are specific to magnetic tape manufacturing operations should be

addressed to docket number A-91-31, as noted in the beginning of this

notice.

For this source category, information was gathered on all 25 of the

known sources in the source category through surveys, site visits, and

telephone calls. The MACT floor analysis included major sources and

sources that are not considered major for the purposes of the

nationwide impacts analysis. These area sources are the same as the

major sources in every way except that they are highly controlled and

thus are below the major source emission criteria. If these area

sources were uncontrolled, they would be considered major sources of

HAP emissions.

The MACT floor for this source category was determined on an

emission point-by-emission-point basis, which corresponds with the

proposed narrow definition of affected source (see section VI.J of this

preamble). Another way to establish the MACT floor, not used by the EPA

in this proposal, would be to identify a mass emission limit or mass

emission reduction percentage across the whole facility. The EPA does

not expect that there would be a large difference in the resulting MACT

floor for this industry if the latter approach were used. The MACT

floor for each of the emission points is identified below.

a. Solvent storage tanks. The highest level of control that was

found for storage tanks in this source category involved a closed vent

system, i.e., a system including piping, ductwork, etc., that is not

open to the atmosphere and that transports vapor to a control device.

The overall HAP control efficiency of this practice is 95 percent and

is the average level of control achieved by the five best performing

magnetic tape manufacturing operations in the source category. Thus,

the MACT floor for the storage tanks emission point is an overall HAP

control efficiency of 95 percent.

b. Mix preparation equipment. The highest level of control for

emissions from mix preparation equipment that was found in this source

category was to cover the equipment and vent the emissions to a control

device. Of the five best performing sources in this source category,

one achieves a control level of 98 percent. The others achieve a

control level of 95 percent. The average control level achieved by the

best performing five sources in this source category, therefore, is

approximately 96 percent. This control level does not correspond to any

particular control technique. Therefore, the MACT floor is based

instead on the median control level achieved by the five best

performing sources. This level is 95 percent; thus, the MACT floor is

an overall HAP control efficiency of 95 percent.

Particulate emissions may also result from coating mix preparation.

The MACT floor control level for this emission point is discussed in

subsection e, below.

c. Coating operation. The coating application and drying emission

points, collectively referred to as the coating operation, include

emissions that result from applying the coating mix at the coater and

drying the coated tape in the oven. The coating operation also includes

all equipment between the coater and the dryer.

The highest level of control that is used in this source category

to limit HAP emissions from coating operations is to vent emissions

through an enclosure to a control device. Existing sources in this

source category vent emissions through a total enclosure, thereby

capturing 100 percent of the emissions. The emissions are directed to a

control device. Of the five best performing sources in this source

category, one vents the emissions from the total enclosure to an

incinerator, achieving an overall HAP control efficiency of 98 percent.

The remaining four best performing sources vent the emissions from

their total enclosure to a control device that is 95-percent efficient,

achieving an overall HAP control efficiency of 95 percent. Thus, the

average control level achieved by the five best performing sources in

the source category is approximately 96 percent. Because this does not

correspond to any particular control technique, the median control

level of the five best performing sources (i.e., a 95-percent overall

HAP control efficiency) is the basis for the MACT floor. Thus, the MACT

floor for coating operations is an overall HAP control efficiency of 95

percent.

d. Waste handling devices. Both types of waste handling devices

(pot stills and filter dryers) used in this industry are equipped with

condensers to recover the solvent. The highest level of control for the

condenser vent that was found in this source category is venting

emissions from it to a control device. The overall HAP control

efficiency of this practice is 95 percent and is the average level of

control achieved by the five best performing waste handling devices.

Therefore, the MACT floor level of control is capture and control of 95

percent of HAP emissions.

e. Particulate transfer operations. To control particulate

emissions during mix preparation (when solid materials are transferred

into the mix preparation equipment), owners or operators in this source

category use an enclosed transfer device for transferring particulates

into the mix preparation equipment. An enclosed transfer device is a

system in which particulate HAP are conveyed from the storage bin to

the mix preparation equipment using equipment that completely contains

the transferred material, so that particulate HAP do not enter the

atmosphere as dust. The types of enclosed transfer devices currently

used in magnetic tape manufacturing facilities include vacuum injection

systems and bag slitter devices. The vacuum injection system draws

particulate from a storage container into an enclosed hopper. The

hopper uses gravity to feed a conveyer, which is also enclosed and

which carries the material to the mix preparation equipment. With a bag

slitting device, the bag of particulate raw material is placed into a

hopper, the hopper is closed, and an internal mechanism slits the bag

to release the particulate into an enclosed conveyer that feeds the mix

preparation equipment. Alternatively, the hopper may be located above

the mix preparation equipment and feed it directly.

Of the five best performing sources in this source category

controlling particulate emissions, four use enclosed transfer devices.

The average control level achieved by the five best performing sources

in the source category is the arithmetic average of the control

efficiency of the four enclosed transfer devices and the one without an

enclosed transfer device. Although the control efficiency associated

with an enclosed transfer device has not been quantified, the average

control level of the five best performing sources would not be

equivalent to any particular control technique. Therefore, the basis

for the MACT floor is the median level of control achieved by the best

performing five sources. The median level of control corresponds to the

use of an enclosed transfer device. Thus, the MACT floor is the use of

an enclosed transfer device for transferring HAP-containing

particulates.

f. Wash sinks for cleaning removable parts. Two methods of control

were found in the industry to control HAP emissions from wash sinks.

Both methods were considered to be equivalent by controlling HAP

emissions by approximately 88 percent. These methods were also the

highest level of control achieved in the source category. One control

technology involved venting the wash sink emissions through a hood

(capture device) to a control device that is 95-percent efficient. The

overall control efficiency is less than 95 percent because the capture

efficiency is less than 100 percent. The second control technique

involves maintaining a 75-percent freeboard ratio. A freeboard ratio is

defined as the vertical distance from the liquid surface to the top of

the wash sink divided by the smaller of the length or width of the sink

evaporative area. Maintaining a freeboard ratio limits solvent HAP

emissions because the solvent level in the sink is lower and solvent

vapors remain in the sink; they do not rise to the air above the sink.

When a freeboard ratio is maintained, the wash sink should not be

ventilated as this will draw the solvent vapors from the sink to the

air above it. An overall HAP control efficiency of approximately 88

percent is the average level of control achieved by the five best

performing sources in the source category, achieved either by venting

emissions from wash sinks to the control device or by maintaining a

freeboard ratio. Thus, the MACT floor is an overall HAP control

efficiency of 88 percent.

g. Cleaning involving the flushing of fixed lines. Five sources in

this source category flush the line between the coating operation and

the mix preparation equipment with solvent to remove any hardened

debris that may have collected. Three of the facilities use a closed

system, which has been determined to have negligible emissions. In a

closed system for flushing fixed lines, the empty line to be cleaned is

disconnected from its original location and connected to two other

containers. One is a closed container with cleaning solvent and the

other is a closed container that is empty. Solvent is flushed from the

container with cleaning solvent, through the line, and into the empty

container. The only solvent emissions are from vents located on the

containers. The two other major sources that perform this cleaning

operation flush the solvent through the line into an open container.

However, the container is in the total enclosure surrounding the

coater, which is vented to a control device capable of removing 95

percent of the VOC emissions. Emissions from these control systems have

not been quantified. However, emissions are thought to be very low,

regardless of which system is used. The average level of control

achieved by these five best performing sources is equal, achieved

either through a closed system or by venting emissions from an

enclosure (such as the one surrounding the coater) to the control

device. Thus, either of these control methods is the MACT floor.

h. Wastewater treatment systems. Facilities that use steam to

desorb the carbon beds of the carbon adsorption systems used for air

pollution control generate significant quantities of wastewater (5 to

10 million gallons per year). All three of the facilities using steam

to desorb the carbon adsorber beds use a steam stripper to remove HAP

compounds from the wastewater discharge. The wastewater is typically

preheated to its saturation temperature prior to being fed into the

stripping column. Upon contact with the steam, the volatile components

are transferred to the steam, and the steam/solvent mixture is removed

from the top of the column and cooled in a condenser. The resulting

water/solvent mixture is collected in a decanter; the solvent is sent

to distillation for purification, and the water is returned back to the

column. Clean water exits the bottom of the column. In this industry, a

total HAP outlet concentration of less than 50 ppmw in the outlet of

the stripper can be expected. Inlet concentrations to the column are

typically in the 2- to 5-percent range. Given these inlet and outlet

concentrations and the fact that the quantity of water entering and

exiting the column is equal, the removal efficiency is greater than 99

percent. The extent to which a compound is removed via steam stripping

is a direct function of its volatility. The HAP that are present in the

wastewater from magnetic tape facilities (MEK, MIBK, toluene) are very

volatile and thus highly strippable. In a properly-operated steam

stripper, 99 percent of these HAP compounds can be removed, with a

typical HAP concentration in the outlet from the steam stripper of less

than 50 ppmw. This is the highest level of control achievable and is in

practice at all three plants in the source category that perform this

operation (no other sources have this emission point). Therefore, the

MACT floor for this emission point is the use of a control device such

as a steam stripper that reduces the HAP content of the wastewater from

the separator by 99 percent prior to discharge to the POTW, or that

results in a total HAP concentration of less than 50 ppmw in the

wastewater discharge.

i. Condenser vents in the solvent recovery area. The condenser

vents in the solvent recovery area emit HAP to the atmosphere. One way

to control these emissions is to duct the emissions to the main control

device. The overall HAP control efficiency of this practice is 95

percent and is the average control level achieved by the five best

performing sources in the source category. Thus, the MACT floor for

this emission point is an overall HAP control efficiency of 95 percent.

j. Equipment leaks. In any magnetic tape manufacturing operation

there is equipment such as valves, flanges, pumps, and pressure relief

valves that are a source of HAP emissions. (See discussion of equipment

leak emissions in Section VI.B.) None of the major sources in this

source category control emissions from equipment leaks. Therefore, the

MACT floor is represented by a no-control level.

k. Exterior surface cleaning, tank cleaning, and packaging and

labeling. The Agency also evaluated other emission points that were

considered to contribute to HAP emissions from a facility. These other

emission points are packaging and labeling operations, tank cleaning,

and the cleaning of fixed exterior surfaces. Packaging and labeling

involves the printing of product identification codes on boxes. Tank

cleaning involves cleaning the inside of the coating mix tanks with

solvents, and sometimes involves scrubbing the tank. Spent solvent is

discharged to a waste holding container. Cleaning fixed exterior

surfaces usually involves wetting a rag with solvent and wiping the

item to be cleaned. All of the solvent used evaporates.

These emission points were evaluated by the Agency to determine

their emission potential and possible control strategies. Industry-wide

HAP emissions from packaging and labeling were estimated as 3.4 Mg/yr

(3.7 tons/yr), those from tank cleaning were estimated as 140 Mg/yr

(154 tons/yr), and those from exterior surface cleaning were estimated

as 95 Mg/yr (104 tons/yr). No sources in the source category that

perform these operations are controlling their emissions. Thus, the

MACT floor is represented by a no-control level.

l. Use of non-HAP solvents. Some solvents used by the area sources

in this source category are currently not listed as HAP under section

112(b), and as such are not regulated under this standard. These

solvents include tetrahydrofuran, cyclohexanone, and acetone. Acetone

is used for those magnetic tape manufacturing operations that involve

coating a magnetic strip on a paper substrate, and is not suitable for

coating that involves a plastic substrate. Currently, the Agency is

developing a methodology to assess whether non-listed chemicals should

be considered for addition to the list of hazardous air pollutants.

Tetrahydrofuran, cyclohexanone, and acetone may become candidates for

this process. Therefore, the Agency is not requiring that sources

switch operations so that these non-HAP solvents are used. However, as

the compounds are not currently listed in section 112(b), sources using

and emitting these compounds and not emitting HAP compounds at a major

source level are not subject to the proposed standards.

The proposed standards also do not preclude the use of water-based

coatings. No existing sources are known to use water-based coatings.

Therefore, they were not considered in setting the MACT floor. There

does not appear to be a strong interest in their use in the magnetic

tape manufacturing industry. Industry representatives have indicated

that changing solvent formulation would likely involve changing most of

the other coating components and the coating equipment. This would

require extensive research and development, which could take years.

Furthermore, given the fact that little work has been done in

formulating water-based coatings for use in magnetic tape manufacturing

operations, it is unlikely that water-based coatings would be

sufficient to comply with either the proposed standard or the NSPS for

this industry. (See related discussion on the selection of the format

of the standards in section VI.F.)

2. Regulatory Alternatives Considered

When determining the MACT floor for the affected source, the Agency

evaluates more stringent regulatory alternatives that may be feasible.

For this source category, two regulatory alternatives have been

evaluated. These are summarized in table 3. The first alternative is

the MACT floor, as discussed above. The additional requirements of

regulatory alternative II (RA II) include the implementation of a leak

detection and repair program to control equipment leaks and a work

practice requirement for cleaning activities.

Table 3.--Regulatory Alternatives

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

HAP emission points

-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Cleaning activities

Reg Mix preparation ------------------------------------------------------------

alt. Storage tanks equipment Coating operation Waste handling Wastewater Condenser vents Piping leaks Flushing of fixed Particulates

Housekeeping Removable parts lines

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

I..... 95 percent HAP 95 percent HAP 95 percent HAP 95 percent HAP 99 percent HAP 95 percent HAP No control........ None.............. 75% freeboard Closed system or Enclosed transfer

removed. removed. removed. removed. removal or 50 ppmw removed. ratio. vent to control. of particulates.

HAP outlet

concentration.

II.... 95 percent HAP 95 percent HAP 95 percent HAP 95 percent HAP 99 percent HAP 95 percent HAP LDAR program...... Use closed 75% freeboard Closed system or Enclosed transfer

removed. removed. removed. removed. removal or 50 ppmw removed. containers for ratio. vent to control. of particulates.

HAP outlet collecting and

concentration. dispensing

cleaning solvent.

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The LDAR program evaluated for this source category actually

involves both equipment modification and routine inspection and

monitoring. The equipment found in this source category that would be

subject to such a program includes valves, pumps, connectors, pressure

relief devices, open-ended lines, and sampling connection systems. The

program evaluated for these standards is analogous to the one required

by the negotiated regulations proposed in subpart H of the hazardous

organic NESHAP (see 57 FR 62628). Under this program, leaks from open-

ended lines, sample connections, and pressure relief valves are

eliminated through certain equipment modifications. Emission reductions

for pumps, connectors, and valves are achieved through the LDAR program

that involves monthly, annual, and quarterly inspections, respectively.

During the inspections, a portable hydrocarbon detection device is used

to determine whether the fitting is leaking. A leak is defined

differently for each piece of equipment, ranging from 500 to 10,000

ppmv hydrocarbon. The program allows for reduced monitoring frequency

if certain criteria are met. If a leak occurs, the fitting must be

repaired or replaced. Although the LDAR program is not being used in

the magnetic tape industry, the Agency considered it technically

feasible for controlling equipment leak emissions from magnetic tape

operations. The LDAR program is used in chemical manufacturing

facilities, and the same types of fittings that are present in those

facilities are present in magnetic tape operations.

The other control technique that is included in RA II is an

equipment standard to control emissions from general cleaning

activities. This work practice would require that closed containers be

used for dispensing and collecting cleaning solvent. This would prevent

solvent emissions from open containers of cleaning solvent that are

associated with cleaning operations. Some facilities in the magnetic

tape source category have reported using closed containers for

dispensing cleaning solvent. Information on the specific

characteristics of the containers was not reported, but one type of

container that is available is a spring-loaded can that delivers

solvent to a mesh surface at the top of the can only when a rag is

pressed to the mesh. Although some solvent emission reduction would be

expected from using these containers, the control level achieved by the

median of the five best performing sources is zero. Thus, this control

technique cannot be included as a MACT floor level control technique.

It is, however, considered with RA II as a control technique that is

more stringent than the floor.

As discussed in the selection of the MACT floor for existing

sources, there are sources in the industry that capture coating

operation emissions in a total enclosure and vent the emissions to an

incinerator. If the total enclosure meets the Agency's criteria and the

incinerator is properly operated, an overall efficiency of 98 percent

may be achieved. (One source that was subject to the NSPS for this

industry and operates an incinerator is estimated to achieve a 98-

percent control level.) The Agency considered whether to include a 98-

percent control requirement based on incineration as a regulatory

alternative more stringent than the MACT floor. Such an alternative may

eliminate the carbon adsorption systems and condensers currently being

used to control and recover the solvent for reuse in the coating

operation, because these systems may not be able to routinely achieve a

98-percent control efficiency. Solvent recovery is an in-process

recycling operation which, although not pollution prevention, is very

desirable (see discussion of pollution prevention in section VI.E.).

The reuse of the solvent by the industry results in a lower overall

consumption of solvent. In turn, the negative impacts from the

production of solvent are reduced. Therefore, there are both

environmental and cost benefits of solvent recovery. For these reasons,

the Agency decided not to include thermal incinerators as a separate

regulatory alternative for the magnetic tape manufacturing industry.

The Agency is interested in receiving comments on this proposed

approach.

There are other emission points at magnetic tape manufacturing

facilities that were evaluated for possible control strategies beyond

the floor. These points include packaging and labeling, cleaning of

tanks, and cleaning of fixed exterior surfaces. The packaging and

labeling emission point was evaluated to determine if non-HAP solvents

could be used. Solvent substitution was considered the only technically

feasible control technique to reduce HAP emissions from packaging and

labeling. However, after conversations with vendors who supply the inks

to industry, it was concluded that no non-HAP solvents were available.

Given the low HAP emissions from this emission point (3.4 Mg/yr total

from two sources) and the absence of any control options, it has not

been included for control in RA II.

Several control strategies were evaluated for controlling emissions

from the cleaning of tanks and fixed exterior surfaces. The first

strategy evaluated involved installing a total enclosure around the

emission source and directing emissions from the enclosure to the

existing add-on control device. This strategy was determined not to be

technically feasible because the high volume, low concentration streams

cannot be controlled by adding them to the other solvent-laden air that

is being controlled by the existing control device. A second strategy

that was evaluated involved using separate control devices particularly

suited for high volume, low concentration streams for controlling these

emission points. The Agency's analysis indicated that the cost

effectiveness of such an option would be very high, exceeding $14,500/

Mg HAP ($13,100/ton HAP) for tank cleaning. The cost effectiveness for

controlling emissions from fixed exterior surface cleaning has not been

quantified. However, it would be even higher than tank cleaning because

the capital cost of control is comparable to that for tank cleaning and

the emission reduction is even lower. (The estimate of nationwide HAP

emissions from tank cleaning is 140 Mg/yr; for exterior surfaces it is

95 Mg/yr.) Finally, the use of other cleaning agents was evaluated as a

potential control strategy. Non-HAP solvents were also determined not

to be technically feasible in all cases because the cleaning solvent

used for these emission points must be compatible with the solvents in

the coating mix. Also, as was discussed in section VI.C.1., the

substitution of the non-HAP solvents common to this industry is not

being encouraged because of the lack of data on their toxicity. The use

of soap and water was examined but was not able to clean adequately in

most cases. There is research under way that examines the use of high

pressure water to clean vessels in other industries, like the

pharmaceutical industry. There is also ongoing research to examine new

construction materials for vessels to make them easier to clean.

Although these may lead to improvements in the future, this research

was too preliminary to include in a regulatory alternative for the

magnetic tape industry. Thus, after evaluating potential control

strategies for tank cleaning and cleaning of fixed exterior surfaces,

the Agency did not include in RA II any alternative beyond the general

cleaning work practice described in the beginning of this section.

The Agency is currently developing a document describing

alternative control techniques (ACT) for controlling VOC emissions from

solvent used for cleaning operations. Some of these control techniques

may be appropriate for controlling HAP emissions. One of the techniques

evaluated in the ACT requires that a source develop a solvent

accounting system that tracks the usage and disposal of cleaning

solvent throughout a manufacturing facility. A program to test

alternative cleaning solvents may also be implemented. The results of

the ACT are not yet finalized and therefore have not been fully

evaluated in terms of their applicability to this source category.

State and local regulatory agencies that are interested in using this

system to control emissions from cleaning should notify the Agency to

keep apprised of the status of the ACT study.

3. Impacts of the Regulatory Alternatives

For each of the regulatory alternatives, environmental, energy,

cost, and economic impacts were estimated. The impacts associated with

RA I were presented in Section V. These impacts and the impacts

associated with RA II are summarized in table 4. The source of the

environmental, energy, cost, and economic impacts were also discussed

in section V. Therefore, the same discussion is not repeated here, but

impacts are briefly summarized.

Table 4.--Environmental, Energy and Cost Impacts of the Two Regulatory Alternatives on Existing Major Sources

--------------------------------------------------------------------------------------------------------------------------------------------------------

Reduction Secondary air pollution emissions, Mg/yr (ton/yr)

in -------------------------------------------------------

Reduction in particulate Incremental Incremental

solvent HAP HAP solvent HAP solid waste

Reg. Alt.a emissions in air emissions emissions in generated

from baseline, in air from PM NOx CO SOx wastewater over

Mg/yr (ton/yr) baseline, over baseline, baseline, Mg/

Mg/yr (ton/ Mg/yr (ton/yr) yr (ton/yr)

yr)

--------------------------------------------------------------------------------------------------------------------------------------------------------

I................................... 2,080 (2,300) 0.27 (0.3) 1.3 (1.4) 4.1 (4.4) a Total Annual Annual reporting and Total

Natural Steam Electricity Total capital control compliance recordkeeping annual

gas investment costs costs costs costs

I.............................. 70 (65) 20,160

(19,125) 600 (570) 20,830 (19,760) 2,263,640 174,240 115,640 110,240 400,120

II............................. 70 (65) 20,160

(19,125) 600 (570) 20,830 (19,760) 2,268,440 2,528,910 115,640 110,240 2,754,790

Difference between RA I and RA

II............................ 0 0 0 0 4,800 2,354,670 0 0 2,354,670

aFor a description of the regulatory alternatives, refer to Table 3.

a. Environmental impacts. In regard to primary air pollution

impacts, RA II would reduce solvent HAP emissions from existing major

sources by approximately 2,470 Mg/yr (2,720 tons/yr), which is an

additional decrease of 380 Mg/yr (420 tons/yr) over RA I. The

particulate HAP emission reduction for RA II is the same as it is for

RA I because RA I requires the use of the most stringent particulate

HAP control techniques available.

There are no additional secondary pollutant emissions for RA II

because the additional requirements have little or no energy impacts.

The LDAR program requires monitoring of pipe fitting emissions using an

electronic device. The use of closed containers is a work practice that

will only require the purchase of suitable containers. Likewise, there

are no additional wastewater discharges associated with RA II as

compared to RA I because there are none associated either with the LDAR

program or with the use of closed containers for dispensing and

collecting cleaning solvent. No incremental solid waste impacts are

associated with RA II.

b. Energy impacts. The energy impacts associated with RA I and RA

II are also presented in table 4. There are no additional energy

requirements associated with RA II as compared to RA I. The electricity

requirements of the electronic monitoring device required for an LDAR

program are considered negligible.

c. Cost impacts. The costs associated with RA I and RA II are

presented in table 4. The total annual cost of RA II is estimated to be

$2,754,790/yr, which includes the total annual control cost, the total

annual compliance cost, and the annual reporting and recordkeeping

cost. These two latter costs are the same as for RA I because the

compliance, reporting, and recordkeeping associated with an LDAR

program is incorporated into the LDAR annual cost. The industry-wide

cost effectiveness of RA II is approximately $1,120/Mg ($1,010/ton

HAP). The incremental cost effectiveness of RA II compared to RA I is

$6,100/Mg ($5,540/ton).

d. Economic impacts. An analysis was conducted to assess the

economic impacts associated with RA I and RA II. Price, output, and

employment impacts were evaluated on a facility-specific basis as well

as on an industry-wide basis. A worst-case scenario was used to

calculate the facility-specific impacts.

For RA I, the facility-specific impact calculations indicated that

in order for each facility to recover its control costs fully, a

minimum price increase of 0 percent would be required of some

facilities while a maximum price increase of approximately 5 percent

would be required of the marginal facility. Of the 13 facilities for

which impacts were calculated, 4 facilities were predicted to be

required to increase their prices by approximately 1 percent or

greater.

However, the analysis recognized that some facilities may be able

to absorb a portion of their increased costs. Therefore, an additional

analysis was conducted for the 4 facilities expected to experience

price increases of approximately 1 percent or greater. An examination

of the regulation's effect on the facilities' net earnings and capital

availability indicated that one facility would be significantly

impacted. This facility has been identified as a small business.

The impact that RA I would have on industry output and employment

is expected to be small. The magnetic tape industry is expected to

experience a reduction in output of approximately 0.1 percent. Assuming

a one-to-one relationship between output and employment, the industry

can also be expected to experience a similar reduction in employment.

For RA II, the facility-specific impact calculations indicated that

in order for each facility to recover its control costs fully, a

minimum price increase of approximately 0 percent would be required of

some facilities while a maximum price increase of approximately 6

percent would be required of the marginal facility. Of the 13

facilities for which impacts were calculated, 4 facilities were

predicted to be required to increase their prices by approximately 1

percent or greater. An additional analysis of RA II's impact on these

facilities' earnings, net income, and capital availability indicated

that these 4 facilities would be significantly impacted.

The economic analysis also examined the effect of RA II on industry

output and employment. The industry is expected to experience a 0.7-

percent reduction in output as a result of implementing RA II. Since a

one-to-one relationship between output and employment is assumed, the

industry is also expected to experience a similar reduction in

employment.

The results of the economic impact analysis indicate that

implementation of the proposed NESHAP should not adversely affect the

magnetic tape manufacturing industry, the economy, competition, or any

other economic concerns.

4. Selection of MACT

The Administrator is proposing that MACT for existing magnetic tape

operations be set at RA I, the MACT floor. In deciding whether to

require RA II, which is more stringent than the floor, the additional

environmental, energy, cost, and economic impacts must be evaluated.

These impacts are presented in section VI.C.3.

There are no additional secondary pollutant, wastewater, solid

waste, or energy impacts associated with RA II that would prevent the

Administrator from choosing this alternative over RA I. The

implementation of RA II would result in an additional HAP emission

reduction of approximately 385 Mg/yr (420 tons/yr). The additional

annual cost associated with this emission reduction is estimated as

$2,754,796/yr. Thus, the incremental cost effectiveness between RA I

and RA II is $6,100/Mg ($5,540/ton). The Administrator is proposing

that the costs associated with implementing RA II at magnetic tape

operations are unreasonable compared to the incremental emission

reductions that result. The primary source of emissions at a magnetic

tape manufacturing operation is associated with the coating operation,

and this emission point will be highly controlled by RA I. In fact, at

baseline conditions, industry-wide equipment leak emissions represent

10 percent of total HAP emissions, compared to 45 percent associated

with the coating operation, 19 percent associated with mix preparation,

and 17 percent associated with cleaning activities. The Administrator,

therefore, is proposing RA I as the basis of the standards for existing

sources.

D. Selection of Basis and Level of the Proposed Standard for New

Sources

1. Selection of the MACT Floor and Regulatory Alternatives

The MACT floor for new sources is based on the emission control

that is achieved in practice by the best controlled similar source. The

MACT floor for new sources is therefore the same as the MACT floor for

existing sources for each of the emission points because, as explained

in the previous section, these control technologies were the highest

level of control found in the magnetic tape industry. Likewise, the

same regulatory alternatives that were evaluated for existing sources

were evaluated for new sources.

One existing source in the industry is known to capture coating

operation emissions in a total enclosure and vent the emissions to an

incinerator. However, for the same reasons cited in section VI.C.2. in

the discussion of the regulatory alternatives considered for existing

sources, the Agency is not proposing incineration over solvent recovery

techniques as the basis for the MACT floor for new sources.

2. Impacts of the Regulatory Alternatives

Model magnetic tape operations (model lines) were created to

estimate the impacts of the regulatory alternatives on new sources. The

term model line is being used to describe a new or modified plant with

one coating line, or an existing plant that adds a new coating line. As

discussed in section II, the latter case is the one that is likely to

occur in this industry; new plants are not expected. Further, existing

plants are expected to expand capacity by adding only one coating line

at a time. A coating line by necessity has other operations such as

mixing, solvent storage, and cleaning associated with it. Therefore,

the ``model lines'' defined for this analysis include not only the

coating operation, but the ancillary operations such as mix preparation

equipment, storage tanks, waste handling devices (at larger

facilities), particulate transfer operations, and cleaning activities.

A summary of the emission points associated with model lines is

provided in Table 5. The logic is that if a coater and drying oven

(i.e., a line) were installed at a new plant or added to an existing

facility, all of the ancillary equipment would be required. For

example, at an existing plant, additional storage capacity or mix

preparation equipment may be required. This is a conservative

assumption, but one that estimates worst-case emission impacts.

Five model lines representing three sizes--small, medium, and

large--have been selected to characterize new or modified sources in

the industry. A small model line uses less than 23.5 Mg/yr (26 tons/yr)

of HAP to make applied coatings. (Applied coatings are those magnetic

coatings that are eventually applied to the base substrate at the

coater.) A medium model line uses an average of 64 Mg/yr (71 tons/yr)

of HAP to make applied coatings. A large model line uses an average of

641 Mg/yr (705 tons/yr) of HAP to make applied coatings.

The five model lines are further described as: (1) A small model

line (ML-1);

(2) A medium model line built without concurrent construction of a

solvent HAP control device (ML-2A);

(3) A medium model line built concurrently with a solvent HAP

control device (ML-2B);

(4) A large model line built without concurrent construction of a

solvent HAP control device (ML-3A); and

Table 5.--Summary of Emission Points for Model Lines

------------------------------------------------------------------------

Model line

Emission point --------------------------

Small Mediuma Largea

------------------------------------------------------------------------

Storage tanks................................ * * *

Mix preparation equipment.................... * * *

Equipment leak emissions from piping from mix * * *

room to coating operation.

Coating operation............................ * * *

Equipment leak emissions from solvent * * *

recovery operations.

Waste handling............................... * * *

Packaging/labeling........................... * * *

Cleaning activities.......................... * * *

Particulates................................. * * *

Wastewater treatment......................... * * *

Condenser vents in solvent recovery.......... * * *

------------------------------------------------------------------------

aIncludes lines that are built with and without concurrent construction

of a control device.

Note: `*' indicates emission point is included in model line.

(5) A large model line built concurrently with a solvent HAP

control device (ML-3B).

Model lines are intended to describe new sources that would be

found in the source category at baseline conditions, i.e., in the

absence of NESHAP. Because newly constructed lines are subject to the

NSPS for the industry, the baseline conditions of the model lines

incorporate control devices or methods required by the NSPS. This means

that the small line would be uncontrolled, but medium and large lines

may already be controlling their mix preparation equipment, and would

at least be controlling the coating operation (see discussion of NSPS

requirements in section III). The model line emission points that are

not controlled at baseline but that would be controlled under RA I or

RA II include storage tanks, mix preparation equipment (ML-1, ML-2A,

and ML-3A), waste handling devices, and equipment leaks.

In order to estimate the impact of the NESHAP on new sources, the

number of new sources needs to be projected. As was discussed in

section II, no new plants are expected to be built in this source

category. However, six new lines are expected to be added at existing

facilities over the next 5 years. Such situations are represented by

ML-1, ML-2A, and ML-3A (building a new line but not concurrently

constructing a control device). Because ML-2B and ML-3B are more

typical of new plants, these model lines are not used in the impact

calculations. The sizes of the new lines can also only be projected.

For the purposes of this analysis, the six new lines are projected to

have the same size mix as the existing sources in the source category.

Based on the solvent usage designations identified above, 66 percent of

the existing plants have lines that are large, 26 percent have lines

that are medium, and 8 percent have lines that are small. To estimate

impacts for new sources, this is roughly equal to four large model

lines, 1 medium model line, and 1 small model line. The impacts

discussed below incorporate this assumption. For a discussion of

impacts on a model line basis, refer to chapter 7 of the BID (see

ADDRESSES).

a. Environmental impacts. As with existing sources, the

environmental impacts of the regulatory alternatives on new sources

include primary and secondary air pollution impacts, wastewater

impacts, and solid waste impacts. All of these impacts are summarized

in table 6.

Table 6.--Impacts for New Sources

--------------------------------------------------------------------------------------------------------------------------------------------------------

HAP emission Secondary pollutant emissions, Mg/ Wastewater Energy requirements, GJ/yr

reduction yr (ton/yr) ------------------------------ (10\6\ Btu/yr)

from ------------------------------------- HAP -----------------------------

Reg. alt. baseline Mg/ Discharge emissions,

yr (tons/ PM SOx NOx 10\3\ L/yr Mg/yr (ton/ Electricity Steam

yr)a (10\3\ gal/yr) yr)b

--------------------------------------------------------------------------------------------------------------------------------------------------------

I........................................ 141 (155) 0.4 (0.5) 5.4 (6) 1.3 (1.4) 1,024 (271) 0.06(0.05) 33 (31) 6,430 (6,100)

II....................................... 194 (213) 0.4 (0.5) 5.4 (6) 1.3 (1.4) 1,024 (271) 0.06 (0.05) 33 (31) 6,430 (6,100)

--------------------------------------------------------------------------------------------------------------------------------------------------------

aThe reduction in particulate HAP emissions is the same for each alternative: 94 percent.

bThese emissions are to the wasterwater; they are not air emissions.

The HAP emission reduction achieved with RA I is estimated to be at

least 141 Mg/yr (155 tons/yr). As indicated in Table 6, RA II does not

provide any additional particulate HAP emission reduction beyond RA I

because the control requirements are the same. The additional solvent

HAP emission reduction associated with RA II (53 Mg/yr [58 tons/yr])

are from implementing the LDAR program.

Secondary pollutants (PM, NOx, and SOx) will be emitted

from model lines as a result of the combustion of fuel oil in the

boiler used to produce steam. (It is assumed that all of the model

lines use carbon adsorption systems as control devices because this is

the predominant control device used by the major sources in the

industry.) For ML-1, the fuel oil consumption is a result of a new

control device required to meet RA I and RA II. For the other model

lines, the fuel oil consumption is incremental over baseline, resulting

from controlling additional emission points. As with the existing

sources, the magnitude of the estimated quantity of secondary emissions

(7.1 Mg/yr [7.9 tons/yr]) is much less than the estimated HAP emission

reduction.

For the same reasons explained for existing sources, there will

also be incremental wastewater discharges over baseline conditions from

the model lines under RA I and RA II. Small lines are assumed to

dispose of wastewater offsite because it is unlikely that a small

operation would perform on-site wastewater treatment. Thus, there is no

discharge. The waterborne HAP emission levels presented in Table 6

assume a 50-ppmw discharge limit for HAP compounds. As indicated in

this table, the quantity of HAP discharged to the wastewater is small.

The final environmental impacts associated with the model lines are

solid waste impacts. All model lines except for the small model line

are currently assumed to use fixed-bed carbon adsorption systems to

meet the requirements of the NSPS (baseline conditions for new lines).

As with existing sources, it is assumed that the control of additional

emission points would not decrease the carbon life. Thus, there are no

solid waste impacts from medium and large lines. Overall impacts are a

result of any new small model lines.

b. Energy impacts. The estimated additional steam requirement of

new lines that would result from implementing the regulatory

alternatives are presented in table 6. This table also includes the

additional electricity requirements for new lines. As explained for

existing sources, RA I and RA II have the same energy impacts because

the higher level control options associated with RA II have no energy

requirements.

c. Cost impacts. There are some difficulties inherent in estimating

the cost of regulatory alternatives for new sources because the ``new''

sources are expected to be new coating operations and ancillary

equipment installed at existing plants. There are, therefore, many

factors that would influence the cost to meet the proposed standards.

Factors that vary from plant-to-plant include the size of the plant,

the existing level of control, the type of control device used, the

percentage of total solvent used that is HAP, the extent of magnetic

tape operations (as compared to other manufacturing operations) at a

plant, the percentage of HAP in the coating mix, and process

differences such as the type and amount of equipment in the plant

(important in assessing the appropriateness of LDAR). Some of these

factors have been accounted for in developing the model lines, but to

account for all differences among the plants in this source category

would be impossible.

Despite the difficulties in estimating the cost of regulatory

alternatives on new sources, such an analysis is necessary to determine

the extent of control that is appropriate for these sources. Therefore,

a range of the incremental cost-effectiveness values that would result

if RA II were applied instead of RA I has been estimated by

incorporating as many factors as was reasonably possible into the model

plant analysis. The range of cost-effectiveness values was calculated

to determine the range of cost impacts that may actually be encountered

in the industry. In addition to estimating the cost impacts on the

model lines previously described, costs were estimated assuming that

the models used incinerators instead of carbon adsorption systems. This

permutation accounts for the fact that some sources in the industry

(both small and large) have elected to use incineration over solvent

recovery technologies. The models are still limited in that they assume

that 100 percent of the solvent used are HAP, and that a facility is

performing only magnetic tape manufacturing operations.

If it is assumed that a carbon adsorption system is used to comply

with RA I, the total annual cost is estimated to be $349,360/yr. This

cost includes control costs, compliance costs, and reporting and

recordkeeping costs. The associated cost effectiveness is $2,470/Mg

($2,250/ton). For RA II, this cost increases to $483,080/yr, with a

cost effectiveness of $2,500/Mg ($2,270/ton). The incremental cost of

applying RA II over RA I is approximately $2,550/Mg ($2,320/ton). If an

incinerator is used to comply with RA I, the total annual cost is

estimated to be $270,367 including control, compliance, and reporting

and recordkeeping costs. The associated cost effectiveness is $1,910/Mg

($1,740/ton). Under RA II, the annual cost increases to $362,847, with

an average cost effectiveness of $2,370/Mg ($2,150/ton). When

incineration is the control technique used by model lines, the

incremental cost of applying RA II over RA I is approximately $7,590/Mg

($6,900/ton).

3. Selection of MACT

As with existing sources, in evaluating MACT for new sources the

Administrator looks at the emission reductions, costs, economic

impacts, and other environmental and energy impacts. As discussed in

the previous section, cost impacts were calculated considering that

either a carbon adsorption system or an incinerator could be used.

However, as was discussed in section VI.D.2, the environmental and

energy impacts are based on the use of a carbon adsorption system

because this type of system is the most commonly used in the industry.

Based on the environmental impact estimates calculated for existing

sources, other environmental impacts (i.e., secondary pollutants,

wastewater and solid waste) are not substantial compared to the HAP

emission reduction that is achieved with either regulatory alternative,

regardless of the control technology used. Therefore, as was the case

for existing sources, the basis of the decision to regulate new sources

with RA I or RA II is based on the cost impacts and emission

reductions.

The cost analysis indicates that, depending on the type of control

device used and the size of the plant, the incremental nationwide cost

effectiveness of applying RA II instead of RA I is approximately

$2,550/Mg if carbon adsorbers are used and $7,590/Mg if incinerators

are used. On a per-line basis, however, the incremental cost

effectiveness ranges from $2,400/Mg to almost $60,000/Mg.

The incremental cost effectiveness of applying RA II over RA I will

vary depending on the type of plant at which the new line is located.

An analysis of the estimated incremental cost effectiveness of RA II

over RA I for existing sources also indicates a wide range in values.

For some existing facilities, the incremental cost effectiveness is

low, less than $100/Mg. For others, however, it is very high, exceeding

$100,000/Mg. As was stated in Section VI.C.3, the industry-wide

incremental cost effectiveness is $6,100/Mg. The reasons for the

variation in the incremental cost effectiveness for existing sources

are not so obvious that distinct subcategories would be possible. For

example, the incremental cost effectiveness is not consistently high or

low based on the size of the facility or the type of control device

used at a plant. The quantity of HAP that is used at a plant relative

to the total solvent used affects the incremental cost effectiveness,

as does the extent of magnetic tape manufacturing operations at a

facility (i.e., other products may be manufactured). There are no clear

distinctions, however, to indicate when RA II is cost-effective and

when it is not; it is highly source-specific.

Based on the costs and emission reductions associated with RA I and

RA II, and the potentially high incremental cost effectiveness of

applying RA II over RA I, the Administrator is proposing that MACT for

new sources should be RA I, which is also the proposed MACT for

existing sources. As with existing sources, the Agency does not feel

that the additional cost of RA II is justified given the small

incremental emission reduction that results.

E. Pollution Prevention Considerations

The Pollution Prevention Act of 1990 establishes the following

environmental management hierarchy as national policy:

(1) Pollution should be prevented or reduced at the source wherever

feasible;

(2) Pollution that cannot be prevented should be recycled in an

environmentally safe manner wherever feasible;

(3) Pollution that cannot be prevented or recycled should be

treated in an environmentally safe manner wherever feasible; and

(4) Disposal or other release into the environment should be

employed only as a last resort and should be conducted in an

environmentally safe manner.

The Pollution Prevention Act considers ``source reduction'' as a

fundamental aspect of pollution prevention. Source reduction is any

practice that reduces the amount of any hazardous substance entering

the waste stream or otherwise released into the environment prior to

recycling, treatment, or disposal. Practices such as recycling, energy

recovery, treatment, and disposal are not considered pollution

prevention measures under the Pollution Prevention Act. However, as

noted above, recycling conducted in an environmentally safe manner is

still desirable.

The proposed rule contains one source reduction element and

encourages environmentally beneficial recycling. Some source reduction

is achieved by requiring that existing and new sources maintain a 75-

percent freeboard ratio in wash sinks used for cleaning removable

parts. This control technique limits emissions by requiring that a

lower level of solvent be kept in the sink. For example, a facility

previously may have filled the wash sink to capacity; now, the sink

would only be filled about one-quarter of that amount, but the same

level of cleanliness would still be achieved. Solvent emissions have

thus been reduced by reducing solvent usage. It is estimated that

solvent emissions are reduced by 88 percent compared to traditional

methods of cleaning parts in wash sinks. The extent to which usage is

reduced will vary from plant to plant; some sources may wash parts more

frequently even though the amount of solvent used during each cleaning

is reduced. The trend indicated by existing sources maintaining a

freeboard ratio, however, is that overall solvent usage will be

reduced.

Although not considered source reduction, solvent recycling is a

common practice in this industry and is further encouraged by the

proposed rule. Many facilities in this source category use solvent

recovery devices such as carbon adsorption systems or condensers to

control air emissions. The solvent controlled by these devices is

subsequently collected and distilled so that it can be reused in either

the coating or cleaning process. This is a very beneficial process both

to industry and the environment. Industry benefits because any solvent

that is recycled is profitable; it is solvent that they would otherwise

have to purchase. Also, less solvent enters the waste stream because

less solvent is used. An environmental benefit is that less consumption

of solvent by this industry means less production of solvent and the

negative environmental impacts that go along with solvent manufacturing

processes.

It has also been determined that there are negligible cross-media

impacts from the solvent recovery devices in this industry. Any

wastewater that results is treated in a steam stripper prior to

discharge to a POTW. The solvent recovered from stripping is collected,

distilled, and reused. The other secondary impacts from control

operations have been calculated and are very small compared to the HAP

emission reduction that is achieved with the devices. Finally, with

regard to carbon adsorption systems, the carbon is regenerated onsite

until its useful life is over, approximately 5 years. The amount of

carbon disposed by a large facility (worst case) is small compared to

other solid waste generators and is estimated as 8,000 pounds every 5

years. Facilities have reported that the spent carbon is a nonhazardous

solid waste that can be sent offsite for reactivation when its useful

life is over.

F. Selection of Format

The emission points to be covered by the proposed standards

include:

(1) The solvent storage tanks;

(2) The mix preparation equipment;

(3) The coating operation(s);

(4) The waste handling devices;

(5) The particulate transfer operations;

(6) The wash sinks for cleaning removable parts;

(7) Cleaning involving the flushing of fixed lines;

(8) The wastewater treatment systems; and

(9) The condenser vents in the solvent recovery area except the

vent on a condenser that is the primary air pollution control device.

The proposed standards require an overall HAP control efficiency of

95 percent for control of emissions from each of the following sources:

Solvent storage tanks, mix preparation equipment, coating operation(s),

waste handling devices, and condenser vents in solvent recovery.

Sources using incineration can alternatively meet an emission limit of

20 ppmv HAP outlet concentration. For wastewater, 99 percent of the HAP

present must be removed, or the total HAP outlet concentration must not

exceed 50 ppmw. Emissions from wash sinks must be controlled by 88

percent. Equipment standards would be required to control emissions

from particulate transfer operations and the cleaning of fixed lines by

flushing. The rationale for selecting the percent efficiency format is

provided below. The rationale for selection of the emission limit for

wastewater treatment and wash sinks, the alternative emission limit for

incinerators, and for the equipment standards are presented in section

VI.G.

There were several formats that were considered for the proposed

standards, including a concentration limit (ppm), a mass emission rate

per volume of coating or coating solids (lb/gal or lb VOC/lb solids), a

process emission rate (lb emitted/unit produced), or a percent control

efficiency. The primary reason for choosing percent reduction as the

format of the standards is the fact that this format assures a

consistent requirement for all plants and allows plants flexibility in

the method selected for emission reduction. The NSPS also use a percent

reduction format. To maintain consistency between the NSPS and NESHAP,

it is reasonable to choose the same format for the NESHAP.

A concentration format is not recommended in all cases because it

does not always result in equivalent control among all facilities. For

example, a facility with a high inlet loading to the control device

would be controlling more total emissions than a facility with a lower

inlet loading. The format of mass per unit of production (e.g., kg/m\2\

of tape coated) is not recommended because it would result in different

levels of control at different plants due to variations in coating

thickness and coating solvent content. The format of mass of emissions

per volume of coating or per mass of coating solids is also not

recommended because of the variety of coating formulations used. The

above formats are also not recommended because recent HAP emission data

are not available for this source category. As such, there is no

technical basis for establishing a value for the pounds of HAP emitted

per hour, per coating solids, or per unit produced. Also, given the

fact that this industry uses solvents that are both HAP and non-HAP and

each operation differs in the percent of solvent used that is HAP, it

would be very difficult to establish one HAP emission rate or HAP

concentration for the entire industry. Therefore, a percent reduction

format is proposed.

One undesirable aspect of the percent reduction format is that it

does not credit improvements in the coating formulation or in process

operations that could potentially be pollution prevention measures. For

example, reduction in the HAP content of the coating through the use of

water-based coatings or a reduction in the amount of HAP applied per

unit of tape manufactured would not be credited toward compliance. This

might discourage development of water-based coatings or optimization of

processes from a pollution prevention standpoint. One possible solution

to the problems inherent with a percent reduction format is to specify

a coating limit (e.g., pounds of HAP per gallon) that is an acceptable

alternative to the percent reduction proposed. The NSPS for this

industry have a similar provision; to date, no source subject to the

NSPS has complied with the rule by using a low-VOC coating. The Agency

requests comments on the feasibility of allowing a coating limit as an

equivalence to compliance with the proposed percent reduction in HAP

emissions, as well as data that would suggest the specific coating

limit that would be equivalent with the proposed MACT requirements.

G. Selection of Emission Limits, Work Practice, and Equipment Standards

The emission limit that has been selected for controlling HAP

emissions from solvent storage tanks, mix preparation equipment,

coating operation, and waste handling devices is a HAP control

efficiency of 95 percent at each emission point. In expressing the

standards for some emission points as a 95-percent control efficiency,

the Agency is relying on past tests and proven performance that

indicate the control efficiency that is achievable with certain control

devices. For example, through tests in other industries it has been

proven that well-operated and well-maintained carbon adsorption systems

and incinerators can obtain at least 95-percent removal efficiencies.

The proposed standards allow facilities using incinerators the

alternative of achieving either the 95-percent control efficiency or an

emission limit of 20 ppmv total HAP. The 20 ppmv HAP limit is based on

the Agency's study of available incinerator technology, cost, and

energy use. The dual requirement of 95 percent or 20 ppmv limit

accounts for a fall-off of incinerator efficiency at lower inlet

concentrations. The Agency believes that a 20-ppmv HAP limit could be

reached by most incinerators with moderate adjustments.

One technical issue associated with the selection of an overall HAP

control efficiency of 95 percent that was brought up by a member of the

industry is the difficulty of achieving this efficiency at low inlet

concentrations. The concern was raised with respect to a carbon

adsorber. Typically, one common control device is used to control

emissions from the various sources at a magnetic tape operation. If the

coating operation emission point is not concurrently being directed to

the control device with the emissions from other emission points such

as the mixers and storage tanks, the inlet concentration to the control

device may be very low. For example, the inlet concentration when the

coating operation is operating may be 3,000 ppmv and an outlet

concentration of 100 ppmv could be achieved (a 96.7 percent emission

reduction). If only mix preparation equipment, solvent storage tanks,

or waste handling device emissions are being vented, the inlet

concentration may only be 200 ppmv. Even if an outlet concentration of

30 ppmv is achieved, the control efficiency is only 85 percent. The EPA

has recognized this problem for incinerators and, consequently, has

included the alternative 20 ppmv HAP emission level.

However, the proposed standards do not include special provisions

for low inlet concentrations for control devices other than

incinerators. The Agency would like comments and data on this issue.

If, based on comments received at proposal, the Agency determines that

the 95-percent control efficiency standards cannot be met at low

concentrations, the Agency is considering the following possible

solutions for the promulgated standards:

(1) Allow a longer averaging time for demonstration of compliance

(e.g., the proposed monitoring requirements identify a 3-day rolling

average for carbon adsorbers; this averaging period could be increased

to allow for some fluctuation in the percent efficiency when the

coating operation is down);

(2) Specify an alternate control efficiency for periods when the

coating operation is down; or

(3) Specify an outlet concentration for those periods when the

coating operation is down.

The Agency would also like to receive comments and any data that

may indicate an appropriate averaging time, outlet concentration, or

percent removal efficiency.

Another emission point that requires a percent removal efficiency

is the wastewater treatment system; owners or operators must remove 99

percent of the HAP in wastewater discharged from the water phase of a

carbon adsorption system using steam desorption. The percent removal

efficiency is primarily based on the analysis being carried out for the

hazardous organic NESHAP (HON) for the chemical manufacturing industry.

The proposed HON rule (see 57 FR 62628) indicated that the HAP

compounds used in the magnetic tape industry (MEK, toluene, MIBK) are

readily stripped and a 99-percent removal efficiency is proposed for

those compounds. There are no specific data for magnetic tape

operations, but industry representatives have stated that wastewater

treatment operations are likely to be 99-percent efficient. The Agency

solicits comments on this efficiency. Data would be necessary to

support any suggested efficiency requirements other than 99 percent.

The proposed standards would also allow sources to comply with the

wastewater treatment provisions of the proposed regulation by treating

the wastewater discharge from the separator in a steam stripper such

that the effluent from the steam stripper has a total HAP concentration

of less than 50 ppmw. The emission limit of 50 ppmw HAP is based on

data from two facilities that operate steam strippers that are

estimated to remove at least 99 percent of the HAP compounds present.

The total HAP concentration in the effluent from their steam strippers

was reported as 20 and 40 ppmw. These concentrations are representative

of the HAP concentration in the wastewater before it is combined with

any other on-site wastewaters (such as sanitary waste). In other rules

requiring the treatment of wastewater via steam stripping, the Agency

has selected 50 ppmw as an appropriate emission limit for compounds of

similar stripability. The data support this limit as being achievable

for this source category. The available data are too limited and too

inconclusive, however, to support a lower limit. Therefore, a HAP

concentration of 50 ppmw in the water discharge is being proposed for

this standard. The Agency requests comments on this proposed limit, as

well as any data that would support an alternate limit.

The proposed standards require that HAP emissions from wash sinks

be controlled by 88 percent. This level of control can be achieved by

maintaining a 75-percent freeboard ratio. This is the freeboard ratio

maintained by facilities in the source category currently subject to

regulatory requirements on wash sinks. An alternative method of

controlling wash sink emissions is to vent them to the common control

device; this method is also thought to be 88-percent efficient. The

emission limit identified for both control technologies is based on

industry tests that compared the quantity of HAP emissions occurring

from wash sinks both before and after controls are imposed.

The other emission points that will require control under the

proposed standards include the particulate transfer operations and

cleaning that involves the flushing of fixed lines. For these emission

points, the proposed standards are expressed as equipment standards.

Although NESHAP are normally structured in terms of numerical emission

limits, alternative approaches are sometimes necessary. In some cases,

physically measuring emissions from a source may be impossible or at

least impracticable because of technological and economic limitations.

Section 112(h) authorizes the Administrator to promulgate a design,

equipment, work practice, or operational standard, or combination

thereof, in those cases where it is not feasible to prescribe or

enforce an emissions standard. For this source category, equipment

standards have been selected for the reasons described below.

The requirement for particulate transfer operations would be an

equipment standard, requiring the installation of an enclosed transfer

device to be used when transferring chromium- or cobalt-containing

particulates. The definition of an enclosed transfer device is provided

in Sec. 63.702. An emission limit or percent control efficiency is not

feasible because HAP emissions from particulate transfer cannot

reasonably be emitted through a conveyance system designed and

constructed to capture these pollutants. Therefore, it is recommended

that this emission point be regulated by an equipment standard. There

is at least one source in the industry that does not have an enclosed

transfer device but uses fabric filters to remove particulate from the

solvent-laden air being sent to the control device. The Agency

currently has no data to suggest the feasibility of, or control

efficiency associated with, such filters. The Agency is concerned that

particulate emissions would not be sufficiently captured and delivered

to the control device. The one facility using fabric filters for

control operates within a total enclosure designed to capture gaseous

emissions. The Agency is also concerned that particulate emissions

could occur during the removal of the particulate from the filters.

Therefore, the Agency is not proposing an alternative standard based on

such a system. The Agency is interested in data that show whether the

total enclosure controls particulate emissions as well as gaseous

emissions. However, the Agency specifically requests comments on the

proposed standard for not identifying as an alternate particulate

control level an overall control efficiency that could be achieved by

capturing particulates and venting them to a control device such as a

fabric filter. Data that indicate the overall control efficiency

(capture and control) of such systems would be required to support any

suggested efficiency.

For control of emissions from flushing fixed lines, the standards

would be equipment-based, requiring that the lines be flushed using a

closed system (see description in section VI.B). Alternatively, if open

tanks are used for supply and collection, the area in which they are

located would need to be vented to a control device such that the

overall efficiency is 95 percent. Every facility in the industry that

flushes fixed lines performs the operations in one of these two ways.

An emission limitation is not appropriate because the HAP from this

operation are not emitted through a conveyance system designed and

constructed to capture these pollutants.

H. Selection of Monitoring Requirements

In accordance with paragraph (3) to section 114 of the amended Act,

enhanced monitoring of stationary sources is required to determine the

compliance status of the sources, and whether compliance is continuous

or intermittent. For most of the sources subject to the proposed

standards, initial compliance is determined through the initial

compliance test, and ongoing compliance through continuous monitoring.

The Agency has proposed the parameters to be monitored for the types of

capture and control devices now used in the industry. The value of this

parameter that corresponds to compliance with the standard is set by

the owner or operator during the initial compliance test. If future

monitoring indicates that capture or control equipment is operating

outside of the range of values established during the initial

performance test, the owner or operator is out of compliance with the

standards, except as specified for malfunctions in Sec. 63.6(e)(3) of

the General Provisions.5

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\5\Ibid.

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1. Work Practice and Equipment Standards

For equipment standards, no monitoring would be required. However,

the owner or operator is expect

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