UNITED STATES E :NVIRONMENTAL PROTECTION AGENC Y WASHING T ON, D.C. 204 60

Charles H. Knauss Shannon S. Broome Sandra P. Franco Bingham McCutchen LLP 2020 K Street, NW Washington D.C. 20006 Les li e A. Hul se Assistant General Counsel American Chemistry Council 1300 Wilson Boulevard Arlington, VA 22209 Gregory Scott 

# JUL 2 22009

National Petrochemical & Refine rs Association 1667 K Street, NW, Suite 700 Washington, D . C . 20006 Jan Poling American Forest 

### & Paper Association 1111 19111 Street, NW, Suite 800 Washington, 

### D.C. 20036 HarryM. Ng John P. Wagner OFFICE OF ENFORCEMENT AND CO MPLI ANCE ASSURAN CE

American Petroleum Institute 1220 L Street, NW Washington, D.C. 20005 Thomas J. Graves Alison A Keane National Paint 

### & Coatings Association , Inc. 1500 Rhode Island Avenue, NW Washington, D.C. 20005 William H. Lewis, Jr. Morgan, Lewis 

### & Bockius , LLP 1111 Pennsylvania A venue, NW Washington, D . C . 20004 Susan T. Conti A lliance ofAutomobile Manufacturers 1401 Eye Street, NW, 

### 9 111 Floor Washington, D.C. 20005 Re: Vacatur of Startup, Shutdown, and Malfunction (SSM) Exemption (40 C.F . R. 

### §§ 63 . 6(f)(l) and 63 . 6( h ) ( l)) Dear Counsel: In Sierra Club v. EPA, 551 F.3d 1019 (D . C. Ci r. 2008), the United States Court of Appeals for the District of Columbia Circuit vacated two provisions in EPA's Section 112 regulations governing the emissions of hazardous air poiJutants during periods of startu p , shutdown, and malfunction ("SSM"). Specifically , the Court vacated 40 C . F .R. 

### §§ 63.6(f)(l) and 63.6(h)(1 ), that are part of a regulation , commonly referred to as the " Ge nera l Provisions Rule," that EPA promulgated under Section 112 of the Clean Air Act. When incorporated into Clean 

### Air Act Section 112(d) 

### regulat r ions for specific source categories , these two provisions exempt sources from the requirement: to comply with the otherwise applicable Section 112( d)

I n ternet Address (URL) • h ttp:/ / www . apa.gov Racyclad!Recy c l a bl e • Printed wit h Vegeta bl e Oi l Based I nks on 100% Pos t consumer. Process Ch l orine Free Recyc l ed Paperemission standard during periods of SSM. Repre sentatives of various industries subject to Section 112(d) rules have raised conc :em s to EPA about the impact of the 

### S ie rra Cl ub decision and the potential enforcement exposUtre a source faces if it fails to comply with a Section 11 2(d) emission standard during an SSM event. The purpose ofthis letter i s to address tho s e conc erns . Until the Court issues the mandate in 

### S ie rra 

### C lub v. EPA , 40 C.F . R . 

### §§ 63 . 6(£)(1 ) and (h)(l ) re main in effect Once the mandate is sue s, 40 C .F .R. § § 63 . 6 (t) ( l ) and ( h)( I ) will become null and v oid . The vacatur will imrne:diat e ly and directly affect only the s ubset of S ection 11 2(d) rules that incorporate 40 C . F.R. 

### §§ 63 ·. 6 ( f )( l) and ( h)( I) by reference , and that contain no other regulato ry text e xempting or excu s ing compliance during SSM events. Table 1 , attached, contains a list ofthe source category mles that EPA believe s will be immediately affected once the mandate issues in 

### Sie rra 

### Club, as thes e rules do nothing more than incorporate 40 C .F . R. 

### §§ 63.6(1)(1 ) and ( hXl ) by reference and contain no other regulatory te x t ex empting or e xcusing compliance during SSM events. EPA' s initial analysis of the Section 112(d) s ource category rules indicates that the majority ofthe: rul e s include specific regulatory te xt that exempts or excuses compliance during SSM evem ts , and such regulatory text is in addition to , or in li e u of , a cross-reference to 40 C . F .R. §§ 63 . 6(fXI ) and (h)(lV 

### See Table 2 ( attached) (ident i fies the source category rules that EPA believ. es will not be impact e d when the mandate i ss ues in 

### Si e rra 

### Club ) . The vacatur doe s not have a direct impact on such source category - s pecific S S M provis ions because those provisions were not challenged and were not before the court 

### in 

### Sie rra

1 There is a great deal of variation in the s pecific regulatory text us ed in such rule s to exempt or otherwi se excuse a source from compliance with the applicable Section 11 2( d) s tandard during periods of SSM. The following example s are illustrative ofthe differentfonnulations that EPA has identified in its Section 112(d) source category rules , but are b y no means exclu s ive . 

### See, e. g., 40 C.F .R. 

### § 63 . 762(a) (" The provisions set forth in thi s subpart shall apply at all times except during startups or shutdowns, during malfunctions .. .. .") ; 40 C .F.R. 

### § 63 . 654(g)(6 ) ( " periods of excess emissions shall be identified in the Periodic Reports and shall be used to detennine compliance with the emission s tandard s . . . . (iii ) Period s of startup and s hutdown that meet the definition of§ 63 . 641 , and malfunction that meet the definition in§ 63 . 2 and periods of perfonnance testing and monitoring sy stem calibration s hall not be con s ide red periods of exce ss emis s ions .. .

**);** 40 C .F .R. 

### § 63 . 1570 (a), (b ) and (g) (contains a cross-reference to 63.6 (f)(l) and (hXl) in 63.1570 (a) and (b) , respectively , but also has regulatory text in 63.l570(g) excusing deviation s that

**o' cur**  durin g SSM . Section 6 3 . 1570(g) provide s " Consist e nt 

### with §§ 6 3. 6( e ) and 63 . 7(e) (l ), deviations that occur during a period of s tartup , shutdown, or malfunction are not violations ifyou demonstrate to the Administrator's satisfaction that you were operating in accordance with 

### § 63 . 6(e )( I ).") ; 40 C .F.R. 

### § 63.695(e )(6 )(i ) 

### (" An ex cursion i s not a violation nor doe s it count toward the number of excused excursions allowed under paragraph (e)(6)(ii) ofthis section when the excursion occurs during an y one of the following period s : (A ) During a period of startup . s hu t down . or malfunction when the affected facility is operated during such period in accordance with§ 63 . 6(e)(l)") .

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### S ierra Club. EPA recognizes , howe ver , that the legality of s uch s ource category-specific SSM provisions ma y now be called into question, and EPA intends to evaluate each of them in 

### light of the co urt 's decision. T he tables attached to this letter are based on EPA ' s initial analys is and ar

e, therefore , s ubject to change. 2 Eve n if a so urce is s ubj ect to a Section 112(d ) standard that does no more than i n c orporate by reference 40 C .F.R. §§ 63.6(f)(l) and ( h) ( I ) and contains no other regulatory text exempting or excusing compliance durin g SS M events (see Table 1) , the impact of the vacatur will vary dependin g on the source cat · egory , and ma y n o t be immediat e for sources in man y categories . E PA ' s initial evaluation ofthe subset of Section 11 2(d ) rules that do nothing more th an c ro ss-reference 4 0 C.F .R. 

### §§ 63.16(f)(l) and (h )(l) indicates that most of these rules should not present compliance issues for sources during SSM events. There are various reasons for thi s . For example, certain Section 11 2 ( d) standards can be achieved despite SSM event s becau se the performance ofpollution control equipment i s not affected by SSM eve nts_ Other Secti on 11 2(d ) standards are expressed as an average over a relatively lon g p eriod of time 

### (e.g., a yearly rolling average) and expected sta rtup and shutdown events and any malfunction s over that period are not likely to result in an exceeda nce of the sta ndard. Further , certain Section 112(d) standards impose only work practice requirements with which a so urc e should b e ab le to comply durin g SSM events . Compliance with Section 112(d) standards durin g SSM period s should al so be less problematic for tho se sources that are operating in compliance with 4 0 C.P.R. 

### § 63.6(e)(l )( I) , which requires so urces to minimize

**e~n ssions**  at all times , includin g periods of SSM . consistent with safety and goo d air pollution control practices. Sources subject to Section 

### J 12( d) standards that only cross-reference the exemption in 40 C .F.R. §§ 63.6(f)(l) and ( h)( I) of th e General Provis i ons Rule s hould, 

### in many in st ances, be able to minimize their exposure to violations of the applicable Section 112 (d ) sta ndards b y adjust ing th e ir operating practices or by adding emission contro ls or measures to reduce or eliminate excess e mi ss ions durin g SSM periods . EPA recognizes, however , that some sources sub ject to Section ll2(d) standards that onJy cross-reference the exemption in 40 C .F . R. §§ 63.6(t)(1) and (h )( l ) ofthe General Pro vis ions Rule may be unabl e to c omply wi th su ch standards dur ing SSM e vents despite their best efforts, including adh eren ce to 40 C.F . R 

### § 63.6(e)(l)(i). For a so urce that fai l s to comply with th e applicabl e Section 1 12 (d ) standards during SSM e vent s, EPA will determine an appropriate response based on , among other things , the goo d faith efforts of the so urce to minimize emiss ions during SSM period s , including preventative and co rrective actions, as well as roo t cause analyses to ascertain and rectify excess emissions. and whether the source has developed and im plemented an SSM plan to minimize s uch emi ssions. 

### See 40 C .F . R . 

### § 63.6(e)(3)(i). We intend to c l osely scrutinize any claim that a Section 1 ' l2(d) s tandard cannot be

2 Th e re are s ome Sec tion 1 J 2( d) source category rule s that do not a ppear in either table because the rules do not contain any SSM exemption. The 

### S ierra Club dec isio n has no impact on such ru l es. -3

-met during a malfunction to determine whether the event was in fact ''sudden, infrequent, not reasonably preventable" and was not instead " caused in part by poor maintenance or careless operation." 40 C.F.R. 

### § 63.2 (definition of malfunction). We encourage sources that anticipate compliance difficulties to contact EPA or the appropriate state regulatory authority. By engaging with regulators early, sources can identify their compliance concems and engage in a meaningful dialogue with EPA or the appropriate state regulatory authority about the individual circumstances presented by a particular facility, including any information on the natme and extent of the excess emissions that occurred or are expected to occur during SSM events. In appropriate cases, EPA or the state may be able to take action to resolve a source's**compliam~e** concerns. Such actions may include, for example , issuance of an Administrative Order on Consent that includes a schedule for the source to achieve compliance during SSM events . EPA is currently evaluating , ulllight of the 

### Sierra Club decision, which Section 112( d) source category standards should be revised, and of these, which should be revised on an expedited basis. As we engage in the process of evaluating and revising rules , we wilt evaluate any information that we have , and that we may receive from industry or other sources, on emissions during periods of SSM. 

### See, e.g ., Clean Air Act Section 112(d)(3)(A) (existing source standards are based on the average emission limitation achieved by the best performing 12 percent of sources ' ' for which the Administrator has emissions information' '). EPA will endeavor to promptly address concems raised with respect to specific Section 112(d) source category standards where the Agency determines that sources within a source category may have a limited abmty to comply with those standards during periods of SSM. EPA intends to give highest priority to reviewing and revising those Section 112(d) source category standards that may be difficult for sources to meet during an SSM period given the technological limitations of the processes involved.

cc : William Becker, NACAA Rich Ossias, OGC Steve Page , OAR Regional Air Division Directors Regional Air Program Managers Regional Air Enforcement Managers



### -4- Sincerely , 

# AS- -{ . ( .. ( ____ Adam M. Kushner , Director Office of Civil Enforcement

### Table 1- Section 112(d) Source Category Rules That Will Be Affected Once The Mandate Issues in Sierra Club v. EPA, 

### 551 F.3d 1019 (D.C. Cir. 2008), Vacating the Startup, Shutdown, and Malfunction Exemptions in 

### 40 C.F.R. 

### § 63.6(f)(l) and (b)(lt 

### Relevant

**Sourc€~** 

### Category Part 63 Subpart R Gasoli ne Distribution 

### s Pu lp and P aper T Halogenated Solvent Cleaners X Secondary Lead Smelting y Marine Loadin g Operations GG Aerospace Manufacturing 

### n Shipbuilding and Shi p r epair KK Printing and Publishing LL Primary Aluminum MM Combustion Sources at Pulp Mills 

### CCC Steel Pidding 

### m Flexible P olyurethane Foam Production L LL Portland Cement NNN Wool Fiberglass RRR Secondary Aluminum TIT Primary Lead 

### vvv Publicly Own ed Treatment Works XXX Ferroall(lY Production

4 This Table pre se nts the Cle:an Air Act Section 112(d) source category rules that EPA currently believes will be directly affected once the mandate issues in 

### Sie rra Club v. EPA, 551 F. 3d 1019 (D . C . C ir . 2008). The rule s identified in this Table incorporate 40 C .F . R Sections 63.6(f)(1) and (h)(l) by referen ce and contain no other regulatory text exempting or excusing co mpliance durin g startup , s hutdown or malfunction events . The information in this Table is based on EPA ' s initial analysis and i s) th erefore ) sub j ect to change .

- 5

-Table 1 (Continued)- Section 112(d ) Source Category Rules Th at Will Be Affected Once The Mandate Issues in Siern1 Club v. EPA, 551 F.Jd 1019 (D .C . C ir. 2008) , Vacating the Startup, Shutdown, and Malfunction Exemptions in 40 C. F. R. § 63.6(f)(l) and (h)(l) Relevant SourCf ! Category Part 63 Subpart AAAA M unicipal Solid Waste Landfills JJ

JJ Pape r and Ot her Web Coating RRRR M etal F urniture 

### wvv Bo a t Manu fa c tu r in g YYYYY E lectric Arc F urn aces - ar ea so urces 

### zzz:zz Iron an d Steel Foundries

- area sources EEEEEE P rimary Copper- area sources FFFFFF Secondary Copper

- area sources GGGGGG Primary .No nf e rro u s m eta ls - area sourc es Pai nt S tripping and Mjscell aneous Coati n g- area so urces LLLL LL Acry l ic/ M: odacrylic fibers

- area sources C hro miUI111 Compounds

- area sources 000000 Flexibl e P o lyurethane Foam P roduction an d Fab

- a r ea sources 

### PPPPPP Lead Acti d Batteri es - area so ur ces RRRRRR C lay cerami cs - area so ur ces TTmT Secondary Nonferro u s metals- area sources yyyyyy Ferroal1 oys Production

- area sources

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### Table 2- Section 112(d) Source Category Rules That Will No t Be Affected When the Mandate Issues in Sie.rra Club v. EPA, 

### 551 F.Jd 1019 (D.C . Cir. 2008) 5 

### Relevant

**Source:~** 

### Category Part 63 Subpart F,G,H,I Hazardous Organic NESHAP for Synthetic Orgaojc Chemical Manufactunng L Coke O ven Batteries N Chromium Electroplating 0 Etnylen(: Oxide Sterilizers 

### s Pulp andl Paper (some errussions stan dards only) 

### u Polymers and Resin s J 

## w Polymers and Res ins ll AA Phosphoric Acid Manufacturing BB Phosphate Fertilizer Production 

## cc Petroleum Refineri es DD Off-site Wast e and Recovery HH Oil and Natural Gas Production 00-YY Generic MACT (8 categories) DDD M i neral Wool 

### EEE Hazardous Waste Combustors GGG Phannac:eutical Manufacturing

s This Table presents the Clean Ai r Act Section 1 12(d) source category rules that will not be immediately affected by the v:acatur in 

### Sierra Cl ub v. EPA, 551 F.3 d 1019 (D.C . Cir. 2008). These rules contain specific regulatory text that exempts or excuses comp liance during SSM events, and such regulatory tex1t is in addition to, or in lieu of , a cross-reference to 40 

### C.F.R Sections 63 . 6(1)(1) a nd ( h) (l ) . Although these provisions will remain 

### in effect following the issuance of the mandate in 

### Sierra Club, EPA recognizes that the legality of such source category-specific SSM provisions may now be caJled into question, and EPA intends to evaluate them in light ofthe court ' s decision. -7-

### Table 2 (Continued)- Section 112(d) Source Category Rules That Will Not Be Affected When the Mandate Issues in Sierra Club v. EPA, 

### 551 F.3d 1019 (D.C. Cir. 2008) Rel evant Source Category Part 63 Subpart 

### HHH Natural Gas Tran smi ssion and Storage JJJ Po lyme r s and Res i ns IV MMM Pesticide Manufacturing 000**Polymer~;** and Resins Ill ppp Polyethe1 r Polyols 

### QQQ P rimary Copper Sme lting 

### uuu Petroleum Refinerie s IJ 

## ecce Nutritional Yeast DODD Plywoo d and Composite Wood Product s EEEE Organic ! Liquids Distr ibution FFF'F Miscellaneous Organic NESHAP 

### GGGG Vegetable Oil Extraction HHHH Wet- fom1ed Fiberglass Mat Ull Auto and Light Duty Truck Coating KKKK Metal Ca.n Coating MMMM Mi scellaneo us Metal Parts Coating NNNN Large App liances Coat ing 0000 Fab ric P rinti ng , Coating, and Dyeing pppp Plastic P;a rts Coating 

### QQQQ Wood Bui l ding Products 

### ssss M etal Coil Coating 

### uuuu Ce llulose Productio n

### Table 2 (C ontinued)-

**S•~ction** 

### 112 (d ) Source Category Rules That Will Not Be Affected When the Mandate Issu es in Sierra Club v. EPA , 

### 551 F.3d 101 9 (D.C. 

### Cir. 2008 ) 

### Relevant Sourct! Category Part 63 Subpart 

## wwww Reinforced Plastics Composites Manufacturing 

## xxxx Rubber Tire Manufacturing yyyy Gas Turlbines ZZZZ' Reciprocating I nte rn a l Combustion Engines AAAAA Lime Manufacturing BBBBB Semiconductor Manufacturing 

## ccccc Coke Ovens DDDDD Indus trial Boil ers EEEEE Iron and Steel F oundries FFFFF

**lntegrate**

**d** Iron and Steel Production GGGGG Site Remediation HHHHH Miscellaneous Coating II III Mercury Ce ll Chlor-alkali Plants JJJ.JJ B rick and Clay Manufacturing KKKKK Clay Ceramics LLLLLL Asphalt Roofing and Processing MMMMM Flexible Polyurethane Foam Fabrication NNNNN HC I Production ppppp Engine Test Cells/ Stands QQQQQ Friction Materials Manufacturing RRRRR Tacon i te Ore Production 

### sssss Refractory Products 

### -9 -

### Table 2 (Continued )- Section 112(d) Source Category Rule s That Will Not Be A ff e ct ed When th e Mand a te Is s ues in 

### Sie rra Club v. EP A , 551 F.3d 1019 (D . C. C ir . 2008 ) Relevant S oun!e Category Part 63 Subpart 

## m Primary Magnesium Pr oduction 

### BBBBBB Gaso li.J1 e Distribution

- area sources MMMMMM Ca rbon Bl ack Production -area sources 

## ssssss Glass Manufacturing

- area sources

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