Amendment to Standards of Performance for New Stationary Sources; Small Industrial-Commercial-Institutional Steam Generating Units

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 60

[FRL-5467-8]

Amendment to Standards of Performance for New Stationary Sources;

Small Industrial-Commercial-Institutional Steam Generating Units

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final action.

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SUMMARY: Today's action promulgates revisions to the new source

performance standards (NSPS) for new, modified, and reconstructed small

industrial-commercial-institutional steam generating units (40 CFR part

60, Subpart Dc) that were proposed on November 15, 1995. The revisions

exclude certain small steam generating units, when conducting

combustion research, from the category of small steam generating units

subject to NSPS control requirements for sulfur dioxide (SO2) and

particulate matter (PM). The NSPS are issued under the authority of

section 111 of the Clean Air Act (CAA).

Following promulgation of the NSPS, litigation was filed by Babcock

and Wilcox, who repeated a concern they had expressed during the public

comment period following proposal of the NSPS. That is, they had

requested an exemption from the NSPS for steam generating units of 14.6

MW (50 million Btu/hr) heat input capacity or less used for combustion

research based on intermittent and infrequent operation.

Discussions with Babcock and Wilcox made it clear that there is a

legitimate concern regarding the ability of experimental, and sometimes

[[Page 20735]]

unpredictable, air pollution control technology to consistently meet

the NSPS. This, coupled with the fact that these steam generating units

provide valuable data on both the combustion process and methods of air

pollution control which result in improved fuel efficiency, improved

air pollution control efficiency, and less expensive air pollution

control, led the EPA to provide the exemption in an effort to encourage

combustion research.

EFFECTIVE DATE: May 8, 1996.

ADDRESSES: Docket. Docket No. A-86-02, containing information used in

developing the original NSPS and the revisions, and the comments

received during the public comment period, is available for public

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

Friday, at the U.S. Environmental Protection Agency, Air and Radiation

Docket and Information Center (6102), 401 M Street, S.W., Washington,

D.C. 20460. The docket is located at the above address in room M-1500,

Waterside Mall (ground floor). The materials are available for review

in the docket center or copies may be mailed on request from the Air

and Radiation Docket and Information Center by calling (202) 260-7548

or -7549. The FAX number for the Center is (202) 260-4000. A reasonable

fee may be charged for copying docket materials.

FOR FURTHER INFORMATION CONTACT: For information concerning specific

aspects of this action, contact Mr. Rick Copland, (919) 541-5265 , or

Mr. Fred Porter (919) 541-5251 Combustion Group, Emission Standards

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

Triangle Park, North Carolina 27711.

SUPPLEMENTARY INFORMATION: Today's rule resolves litigation in the case

of Babcock and Wilcox Company v. U.S. EPA, No. 90-1509 (D.C. Cir.) (See

60 FR 57373, November 15, 1995). The rule applies to any small steam

generating unit used for combustion research as long as the heat

generated during the conduct of such combustion research is not used

for any purpose other than preheating the combustion air for the steam

generating unit (i.e., the heat generated is released to the atmosphere

without being used for space heating, process heating, driving pumps,

preheating combustion air for other units, generating electricity, or

any other purpose).

Five comment letters were received during the public comment period

on the November 15, 1995 proposal. All five commentors supported the

proposal. One commentor suggested that the EPA extend today's rule to

large steam generating units regulated under 40 CFR Part 60, Subpart Db

and that the EPA allow the heat generated during the research activity

to be used productively. One commentor suggested that all natural gas-

fired steam generating units be exempt from the provisions of Subpart

Dc, including notification requirements. The comments did not reveal

any facilities that conduct combustion research with small steam

generating units and that also use the heat generated during periods of

combustion research for purposes other than preheating the combustion

air for the steam generating unit.

The EPA believes that today's rule already represents a significant

exercise of regulatory flexibility which does not warrant further

expansion at this time. Accordingly, the EPA believes that the

prohibition on the use of the heat generated during the conduct of

combustion research is appropriate in that it allows for the conduct of

such research without compromising the EPA's ability to enforce the

NSPS for small steam generating units (See 60 FR at 57374). Indeed,

this limitation merely reflects the existing operating practice of the

Babcock and Wilcox steam generating unit at issue (described below).

The EPA believes that this provision is also appropriate for any other

steam generating unit that conducts combustion research.

As discussed in the November 15, 1995 proposal, the EPA agreed to

revise the applicability of the SO2 and PM emission control

requirements of 40 CFR Part 60, Subpart Dc because of the limited

potential impact of combustion research on the environment: Babcock &

Wilcox Company, the petitioner which requested the revision of the

applicability of the standards of performance, operates a single small

steam generating unit occasionally (less than five percent of the

unit's operating time) to evaluate the performance of, and to develop,

unproven combustion technologies. Significantly, Babcock and Wilcox

Company also does not use the heat that the steam generating unit

produces during periods of combustion research for any purpose (such as

space heating, process heating, electric generation, etc.) other than

preheating the combustion air for the steam generating unit.

Accordingly, in order to minimize the potential for inappropriate

claims of combustion research (potentially undermining EPA's ability to

enforce the standards of performance for small steam generating units),

the EPA has conditioned the exclusion of certain limited combustion

research activities from the standards of performance on the

requirement that a steam generating unit not use the heat produced

during combustion research for purposes other than preheating the

combustion air for the steam generating unit.

The comments that recommend expanding today's rule to include large

steam generating units regulated under Subpart Db or all natural gas-

fired units are not appropriate for consideration within the scope of

this limited action. The EPA will consider these comments as well as

the comment concerning the definition of combustion research as a part

of the ongoing activity to develop and/or revise standards of

performance for industrial steam generating units under CAA sections

111 and 112.

Economic and Regulatory Impacts

Today's rule will impose no additional costs on the regulated

community or the national economy. It would reduce the costs of

compliance for some small steam generating units when conducting

combustion research by not requiring them to comply with the NSPS for

new, modified, and reconstructed small industrial-commercial-

institutional steam generating units. Accordingly, the EPA has

determined that today's rule: (1) does not constitute a ``significant

rule'' under Executive Order 12286 (the promulgation would not result

in any increase in costs or prices and would not disrupt market

competition), (2) does not constitute a substantial revision that would

require an economic impact assessment pursuant to CAA section 317, (3)

does not constitute a Federal mandate under Title II of the Unfunded

Mandates Reform Act of 1995 (UMRA), P.L. 104-4, for State, local, or

tribal governments or the private sector, (4) does not contain

regulatory requirements that might significantly or uniquely affect

small governments under Title II of UMRA, and (5) would not affect the

public reporting burden for the collection of information required, in

compliance with the Paperwork Reduction Act of 1980, under the NSPS for

small steam generating units.

Pursuant to 5 U.S.C. 605(b), the Administrator certifies that these

revisions would not have a significant impact on a substantial number

of small entities. Not only would today's rule reduce the regulatory

burden on the small steam generating units source category, but it has

previously been determined that, even without today's promulgated

revisions, the standards would not affect a substantial number of small

entities (See 55 FR 37682, September 12, 1990).

[[Page 20736]]

List of Subjects in 40 CFR Part 60

Environmental protection, Air pollution control, Intergovernmental

relations, Reporting and recordkeeping requirements.

Dated: April 30, 1996.

Carol M. Browner,

Administrator.

For the reasons set out in the preamble, title 40, chapter I of the

Code of Federal Regulations is amended as set forth below.

PART 60--STANDARDS OF PERFORMANCE FOR NEW STATIONARY SOURCES

1. The authority citation for part 60 continues to read as follows:

Authority: 42 U.S.C. 7401, 7411, 7414, 7416, 7429, and 7601.

2. Section 60.40c is amended by revising paragraph (a) and adding

paragraphs (c) and (d) to read as follows:

Sec. 60.40c Applicability and delegation of authority.

* * * * *

(a) Except as provided in paragraph (d) of this section, the

affected facility to which this subpart applies is each steam

generating unit for which construction, modification, or reconstruction

is commenced after June 9, 1989 and that has a maximum design heat

input capacity of 29 megawatts (MW) (100 million Btu per hour (Btu/hr))

or less, but greater than or equal to 2.9 MW (10 million Btu/hr).

* * * * *

(c) Steam generating units which meet the applicability

requirements in paragraph (a) of this section are not subject to the

sulfur dioxide (SO2) or particulate matter (PM) emission limits,

performance testing requirements, or monitoring requirements under this

subpart (Secs. 60.42c, 60.43c, 60.44c, 60.45c, 60.46c, or 60.47c)

during periods of combustion research, as defined in Sec. 60.41c.

(d) Any temporary change to an existing steam generating unit for

the purpose of conducting combustion research is not considered a

modification under Sec. 60.14.

3. Section 60.41c is amended by adding a new definition for

``Combustion research'' in alphabetical order to read as follows:

Sec. 60.41c Definitions.

* * * * *

Combustion research means the experimental firing of any fuel or

combination of fuels in a steam generating unit for the purpose of

conducting research and development of more efficient combustion or

more effective prevention or control of air pollutant emissions from

combustion, provided that, during these periods of research and

development, the heat generated is not used for any purpose other than

preheating combustion air for use by that steam generating unit (i.e.,

the heat generated is released to the atmosphere without being used for

space heating, process heating, driving pumps, preheating combustion

air for other units, generating electricity, or any other purpose).

* * * * *

[FR Doc. 96-11329 Filed 5-7-96; 8:45 am]

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