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# OAR Box 1875 Prepped byOllie Stewart



### Document

Number: 

# 83 ) ll-F-3 0
Docket Number: 

# A-90-1 9

Printed 12/1/200811:12:49AM

Sheet 83 of 86

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# A-90-1 9 ll-F-3 0

DATE : Octobe r 22 , 199 2 (p.m. ) SUBJECT : Revise d Languag e fo r Complementar yLega l Theor y FROM : Ala n Eckert , EPA/OG C TO : Davi d Rivkin , Offic e o f th e Vic e Presiden t

Counci l o nEconomi c Competitivenes s
Se e attached
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## 199 2P,3

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Octobe r 22 , 1J99 2

EPA' s propose d rul e allow s a naveragin g approac hfo r HON

covere d portion s o f a plant , se e pp . . EP Ai s als o solicitin g commen t o na broade r averagin g alternative , a s iset fort hbelow
. Significantly , thi s latte r averagin g schem e li s no t bein g propose d a s a nalternativ e t o th e averagin g approach] , describe d above
. Rather , th e tw o approache s ar e entirel y complementary
. However , becaus e th e lega l issue s pose d by | th e broade r averagin g schem e diffe r appreciabl yfro mthos e implicate d byth e mor e narro waveragin g proposal , EP Abelieve s tha t a separat e discussio n o f th e forme r i s warranted
. Th e broa d averagin g alternativ e relie s upo na lega l theor y whic hwoul d permi t complianc e wit hth e HO NMAC T standar d ((or , fo r tha t matter , wit hanyothe r MAC T standar d t o b e develope d b yEPA ) byaveragin g emission s fro mpoint s locate d anywher e withi na n entir e contiguou s facility , whic hcontain s HON-covere d processin g units
. ! Thi s alternativ e woul d differentiat e betwee nth e term ! "sourc e i na categor yo r subcategory, " use d i nSectio nH2J(d ) , an d th e ter m

"source, " use d i nSectio n11 2 (i)
. T o begi nwiith , i t i s a maxi mo f statutor yconstructio ntha t th e us e o f differen t word s byCongres s i n tw o differen t subsection s i s no t acciidenta l an d reflect s wel l thought-ou t Congressiona l intent
. [cite f Sutherland]
. Specifically , fo r purpose s o f establishin g emission s standard s unde r subsectio n112(d) , Congres s expejcted EP At o identif yspecifi c productio nlines , piece s o f equipment , etc. , locate d withi n majo r stationar ysource s o r are a sources , an d t o trea t the m a s source s onl yfo r th e purpose s o f subsection s 112(d)(3)(A ) an d .B

_. i.e.
. fo r th e purpose s o f determinin g wha t i s th e averag e emissio n limitatio n achieve d byth e bes t performin g twelv e percen t o f existin g source s o r averag e emissio n limitatio nachieve d byth e fiv e bes t performin g sources . £inc e th e ter msourc e wa s use d i nsubsectio n112(d ) fo r a distinb t and uniqu e purpose , th e relevan t statutor ylanguag e contain s aj qualifyin g se t o f word s - "i n a categor yo r subcategory " - i appende d t o th e wor d "source. " Significantly , i n subsectio n112(i) , th e relevan t statutor y languag e contain s th e ter m"source " — a fac t tha t woul d ajllo w EP At o conclude , fo r purpose s o f subsectio n112(i) , tha t aj sourc e whic hmus t achiev e complianc e i s a "majo r source " whic h encompasse s a n entir e plant
. See , e.g. , Chevron
. U.S.A . Injc
. . v . NRDC . 46 7 U.S . 837(1984)
. Thi s readin g i s supporte d byth e fac t tha t th e definition s o f statutor yterms , se t fort hi nsubsectio n 11 2 (a ) , contai n th e traditiona l definition s o f suc hterm s ja s "majo r source, " stationar ysource, " etc . Unde r thi s construction , th e statutor ylanguag e "anyemission s standard , limitation , o r regulatio npromulgate d unde r thi s [112 ] sectio n10- / 22'92 » 14:2 6 ©©00 3

an d applicabl e t o a source " describe s al l o f th e existin g MAC T standards , establishe d unde r subsectio n112(d) , and applicabl e t o a source , whic hcontain s withi n i t "source s i na categor yo r subcategory" .i.e.
. productio nlines , piece s o f equipment , etc. ) covere d bysuc hMAC T standards
. EP Aals o note s that , i nit s "earl yreductions " rule , i t adopte d a plant-wid e definitio n o f source . Se e 5 6 F R2734 2 (Jun e 13 , 1991 ) —a nearl yindicatio ntha t th e agenc ybelieve d tha t a n entir e contiguou s facilit ycoul d b e considere d t o b e a soujrc e fo r purpose s o f qualifyin g fo r a 6 yea r extensio no f th e MAC T complianc e deadlines
. EP Ai s mindfu l o f th e fac t tha t i t ha s traditionall yenjoye d wid e latitud e i ncomin g u p wit hdivers e definition s o f th e ter m "source, " dependin g o nwha t regulaitory objective s wer e implicated , an d EPA' s considerabl e discretio n i n thi s are a ha s bee n affirme d byth e courts . Chevro nU.S.A . Inc. . v . NRDC . 46 7 U.S . 83 7 (1984)
. EP Asolicit s commen t o nthe j lega l authorit yt o adop t thi s approach , an d als o request s commen t o n implementatio n considerations
. Unde r th e broade r averagin g approach , EP Awoul d mak e n o change s i n th e wa yi t ha s identifie d categorie s an d subcatjegorie s o f source s i n th e HO Nan d devise d appropriat e emissio nstandard s fo r them , no r i n th e wa yi t woul d prescrib e futur e emissio n standard s fo r othe r emissio ncategorie s o r subcategories
. Fo r complianc e purposes , however , i f a n owne r o r operato r does ] no t wis ht o contro l a particula r HON-covere d emissio npoin t to i th e leve l tha t woul d resul t i ncomplianc e wit hth e relevan t HO N emissio n standard , th e extr a emission s fro mtha t poin t coul d b e offse t byemission s reduction s greate r tha nwha t i s require d b y anystandar d the n i neffec t unde r Sectio n11 2 a t on e o r mor e othe r emissio n point s withi nth e entir e stationar ysource . I n addition , emission s averagin g woul d b e allowe d acros s al l jth e emissio npoint s withi nth e entir e plant , includin g th e SOCM I sourc e categor ya s wel l a s point s no t ye t covere d byanyMJAC T standard
. A s such , emission s fro mproces s vents , wastewate r operations , storag e vessel s and transfe r operation s coul d b e average d amon g themselve s o r wit hothe r emissio npoint s wijthi n th e entir e stationar ysource , i norde r t o provid e a s muc h flexibilit ya s possible
. However , a distinctio nwoul d b e mad e betwee n emissio npoint s physicall ysimila r t o emissio npoijnt s covere d unde r th e HO No r anyothe r MAC T an d al l othe r emisjsion points
. Fo r th e former , t o participat e i nth e averagin g sjcheme , the ymus t compl ywit hwhateve r complianc e routine s hav e beje n establishe d unde r th e SOCM I HO No r othe r relevan t MACT . Fp r th e latter , t o participat e i n averaging , th e sourc e mus t petition>EP A t o establis ha n appropriat e complianc e routine
. T o b e surje , onc e EP Aestablishe s suc ha complianc e routin e fo r anyne wtype i o f emissio n point , al l simila r emissio n point s locate d within ! any source s ca nparticipat e i n th e averaging , s o lon g a s the yjuse th eP. 5

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### EPA-approve d complianc e routine
. EP Asolicit s commen t als p o n ho wi t woul d verif yth e baselin e fo r unregulate d emissio n points , an d ho wi t woul d structur e the averaging complianc e procesj s t o assur e th e standar d a s a whol e remain s enforceable
. On e ! possibilit yt o conside r woul d b e t o us e th e averag e emissiions fromsuc hemissio n point s ove r some representativ e time pejrio d a s thei r baselines
. Commen t i s als o specificall yrequeste d oi n lega l authorit yfor , an

d policyimplication s of , including newan d existing source s i n th e same average . i Whil e equipmen t leak s ar e include d i nSOCM I sources , jthe y canno t a t thi s time b e include d i nemission s averages . Equipmen t leak s ar e no t include d because : (1 ) th e negotiate d standard doe s no t requir e an

yfixed performanc e level ; an d (2 ) n o practica l metho d currentl yexist s t o verif yperformance
. Unde r this j alternative , EPAwoul d expeditiousl ydevelop method s t o aspign allowabl e emissio n level s t o particula r leak point s o r group s o f leak points , an

d woul d similarl ydevelop method s fo r calculating emission s fromemissio n point s no t regulate d b yth e HON . Th e Administrato r seek s commen t on mean s t o verif yan d documenj t th e emissio n performanc e level s achieve d fo r situation s wher e equipmen t leak s ar e include d i n anaverage . Commenter s shbul d includ e a descriptio n o f th e complianc e verificatio nprocedur e tha t woul d b e use d an d wha t dat a need s t o b e supplie d t o spppor t th e suggeste d system . Comment s ar e als o requeste d o n type s o f 

### non-SOCM I emissio n point s tha t migh t b e include d i n broade r averages . j I Unde r th e broade r approach , emissio nreduction s from, emissio n point s no t covere d b yth e HO

Nwoul d b e usabl e t o generat e credits , subjec t t o th e previousl ydiscusse d limitation s an d an ylimitation s adde d i n an yothe r MAC T standard applicabl e t o th e relevan t emissio n points
. Credit s coul d b e generate d a t an ytime fromnon-HONemissio n point s unti l theybecome subjec t t o a MAC T standard
. Whe n theybecome subjec t t o a MAC T standard , th e futur e valu e o f reduction s a t thos e emissio npoint s woul d b e governe d b

yth e emissio nstandard s require d b yth e ne wMACjT
. State d differently , th e offset s availabl e fro msuc hpoints ) woul d hav e t o b e recompute d using th e ne wbaselin e establishe d fbr them
. Eac hfutur e MAC T standard mus t contai n a floo r I calculation
. T o th e exten t tha t point s covere d b ythes e late r standard s hav e alread ybee ncontrolle d fo r purpose s o f participating i n an averaging scheme , tha t relate s t o th e complianc e wit ha n earlie r standard , th e floo r fo r th e latp r standard mayb e mor e stringent
. A s futur e MAC T standard s ^r e adopted , EPAwoul d attemp t t o maximiz e averaging opportunitie s an d therefor e minimiz e complianc e delay s an d costs . EP Abelieve s tha t th e broad averaging scheme , describe d above , provide s significan t polic ybenefits
. T o begi nwith , i t woul d enabl e source s t o achiev e th e same environmenta l gaips , a s unde r th e mor e narro waveraging proposal , bu t a t significantl yP. 6

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reduce d costs . Second , establishin g MAC T standard s wit ha , facility-wid e averagin g progra mcoul d resul t i nth e MAC T "jfloor " fo r futur e standard s bein g tighte r tha nwoul d hav e bee nth e cas e i f th e emissio n point s outsid e o f th e alread ycovere d MACT J categorie s woul d hav e staye d uncontrolled
. Last , bu t no t [least , EP Abelieve s tha t th e utilizatio no f th e broa d averagin g sbhem e ma yresul t i n th e discover yo f emissio npoint s withi nfacilitie s tha t otherwis e migh t hav e bee n overlooke d byEP Aand state j regulators
. Afacto r tha t mus t b e considere d i nimplementin g this i approac hi s tha t i t woul d requir e a determinatio no f th e permissibilit yo f allowin g average s t o emi t a differen t combinatio no f pollutant s tha nsource s tha t mee t MAC T withbu t averaging
. Thi s concer ni s alreadybein g evaluate d fo r VO p HAP s i n th e SOCM I sourc e category . Th e alternativ e approac hmigh t furthe r complicat e thi s issu e byaddin g dissimila r categorie s (e.g. , industria l coolin g towers ) emittin g dissimila r pollutant s (e.g. , chromium)
. Sinc e th e HO Ncurrentl yaddresse s onl ybrgani c HAPs , significan t change s woul d b e necessar yt o accommodat e non VO C HA P controls
. T o b e sure , thi s concer ncoul d b e resol(ved by limitin g tradin g unde r th e broa d averagin g proposa l t o onljy organi c HAP s alread ycovere d bya MAC T standard , bu t emitte d anywher e withi nth e fenceline
. A s nonorgani c HAP s becom e covere d b ysubsequen t MAC T standard s EP Awil l develo p averagin g regime s coverin g suc hpollutants
.

Th e followin glanguag e wil l b e adde dt o th e preamble / bu t no t include di nth e discussio no f the broade r averagin gapproach : Anothe r issu e tha t come s u p i n th e contex t o f th e HON | relate s t o calculatio n o f residua l ris k unde r sectio n11 2 ((f)
. EP Arequest s commen t o nwhethe r residua l ris k shoul d b e calculate d o n a plantwid e basis , o na sourc e categor ybasijs , o r o n th e basi s o f som e othe r reasonabl e alternative
.