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# A-90-1 9

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## A-90-1 9 ll-E-4 1

MEMORANDU

M TO : FROM : DATE : SUBJECT :
ATTENDEES : Bo bRosenstee l

Bennet t Kin g Apri l 21 , 199 2 

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# 1,._2 ^ — Fina l Meetin g Note s fo r EPA/CM AMeeting o f Octobe r 23 , 199 0 Bo bRosensteel , EPA/CP B Le s Evans , EPA/CP B Lind a Chaput , EPA/SD B Richar d Sigman , CM A Bria n Taranto , CM A A l Wehe , EPA/CEI S

John Robson , EPA/CEI S Kare n Fidler , CM

A C D . Malloch , CM A Bennet t King , Radia n
1. 0 INTRODUCTION Thi s meetin g wa s calle d t o discus s tw o informatio n request s fromEPAt o CMA . Th e tw o informatio n request s discusse d a t thi s meetin g wer e presente d i n letter s fro m EPAT o CMA : 1 ) Le s Evan s t o Kare n Fidler , Jul y2 , 1990 : reques t fo r capacity , production , an d proces s complexit yfo r proces s unit s producin g SOCM I chemicals , an d th e marke t pric e o f th e chemicals . 2 ) Bo bRosenstee l t o Richar d Sigman , Septembe r 28 , 1990 : reques t fo r answer s t o a se t o f question s abou t th e potentia l problem s i f approximatel y45 0 SOCM I chemical s ar e regulate d withi n 3 year s o f promulgatio no f th e HON . Thes e potentia l proble mconcer n th e availabilit yo f resource s t o design , manufacture , an d instal l contro l device s tha t ma yresul t Th e meetin g als o serve d a s a genera l informatio n exchang e betwee n EP Aan d CMAo n th e HO Nproject . Highlight s fro mth e meetin g ar e groupe d unde r thes e tw o headings . 2. 0 INFORMATIO NREQUEST S 2. 1 Reques t #1 : Industr yCharacteristic s fo r Variou s Chemicals . CMAexpresse d concer n ove r wha t th e informatio n fro mth e firs t reques t wil l b e use d for . Wha t aspect s o f th e rulemakin g proces s wil l thi s additiona l informatio n affec t (th e economi c analysi s o r regulator yalternativ e developmen t o r both) ? Ho wwil l i t affec tP. 3

regulatoryalternatives ? Theyals o expresse d concer n wit hth e confidentialit yo f productio n dat a an d wer e reluctan t t o provid e some data . EPAresponde d tha t additiona l dat a wil l b e use d fo r bot h aspect s o f th e rulemaking process . Fromaneconomi c viewpoint , additiona l dat a wil l improv e th e Agency' s abilit yt o selec t a subse t o f chemical s fo r detaile d economi c analysis . Froma regulatoryalternativ e developmen t viewpoint , additiona l dat a wil l increas e th e subse t o f th e SOCM I tha t ca nb e represente d i n th e Industria l Profile . Th e Industria l Profil e i s a dat a bas e tha t serve s a s th e basi s fo r estimating impact s o f variou s contro l option s o n SOCM I proces s units . Improvement s t o th e informatio ni n th e Industria l Profil e wil l improve ou r estimate s o f impact s fo r th e SOCMI . Thes e impact s playa keyrol e i nth e developmen t o f regulatoryalternatives . CM Astate d theywoul d b e unabl e t o provid e informatio n b y Novembe r 15 , 1990 . Regardless , th e EPArequeste d tha t an y availabl e informatio n b e provided . Reques t #2 : Engineering Service s an d Vendor s Tw o primarytopic s o f discussio n too k plac e i nrelatio nt o thi s informatio n request . Th e firs t involve d CMA' s preliminary response s t o th e questions . Th e second involve d CMA' s strong desir e fo r a phase d implementatio no f th e HONrule . PreliminaryCM

AResponse s t o Ouestion s CM Aexpresse d concern s tha t ther e i s likel yt o b e insufficien t availabilit yo f engineering service s an d vendo r supplie d contro l equipmen t fo r al l o f SOCM I t o compl ywithi n 3 year s i f a rul e affecting abou t 45 0 chemical s i s promulgate d i n on e action . CM A expresse d thei r willingnes s t o suppor t EP Ai n thei r analysi s o f th e potentia l shortag e o f engineering service s an d vendo r supplie d contro l equipment . EPAresponde d tha t thes e concerns , onc e theyar e supporte d b y analyses/studies , wil l b e provide d t o EPAmanagemen t fo r consideratio n i n decision s affecting thi s rulemaking . However , th e CM Awil l nee d t o provid e informatio ni f thes e concern s ar e t o b e addressed .P. 4

CM Arepresentative s sai d theywoul d lik e t o develo p an industry-wid e se t o f answer s t o th e specifi c question s i nth e second informatio n request . T o develo p suc ha n answer , th e informatio n reques t wil l b e discusse d a t a nupcoming CM Aworkgrou

p meeting . I n addition , th e CM Ai s considering sending a surveyt o some companies . Bria n Taranto , representing th e Exxo nChemica l Company , share d th e following thought s o n wha t th e problem s woul d b e lik e (som e o f thi s i s fromthei r experienc e i n meeting th e on e yea r requiremen t o n th e benzen e rule) :

force d t o bu

yequipmen t no t idea l fo r th e job , bu t tha t wa s availabl e paying premiu

mo nthei r equipmen t order s in-hous e engineering service s ar e alread ytaxe d t o th e limi t b

yth e earl yreductio n program s Exxo ni s implementing , thi s woul d onl yincreas e th e burde n limite d availabilit yo f qualifie d engineering service s contractor s limite d compan

ypersonne l t o manage/revie wengineering contractor s in-hous e safet yissue s demand fo r vendo r supplie d contro l equipment s wil l excee d th e suppl y C D . Malloc hrepresenting Monsant o share d thes e concerns : EPAexpresse d th e desir e fo r th e following additiona l informatio n t o us e i n a n analysi s concerning engineering service s an d vendors :

informatio n concerning th e existenc e o f SOCM I

smal l businesse s numbe r o f companie s tha t wil l appl yfo r th e complianc e dat e extensio n unde r th e earl yreductio n claus e o f th e CAA

A growt hi n contro l technolog yinstallation s withi n SOCM I ove r th e pas t year s name s o f engineering service s companie s an d vendor s use d b ySOCM I companie sP. 5

Phase d Implementatio n Th e CMAexpresse d thei r stron g desir e fo r a phase d implementatio n o f th e HO Nrule . CMAi s i n th e proces s o f hirin g a contracto r t o develo p sub-categorie s withi n th e SOCM I industr ytha t coul d b e use d i n concer t wit ha phase d implementation . I n addition , th e CMAinforme d EP Athe ywer e goin g t o develo p severa l potentia l phasin g approaches . Th e CMAexpresse d tw o point s arguin g agains t simultaneousl y implementin g th e HO Nrul e acros s th e entir e industry . (1 ) Give n th e languag e o f th e Clea n Ai r Ac t Amendments , th e breadt ho f th e sourc e categor ywil l significantl yinfluenc e th e determinatio n o f th e MAC T floor s (minimumacceptabl e contro l level ) fo r existin g an d ne wsources . Wit hsuc ha broa d categor y(th e entir e industr ya t once) , ho wd o yo u avoi d selectin g a MAC T (drive n bya fe wwell-controlle d sources ) tha t doesn' t over-burde n th e averag e an d perhap s majorit yo f th e source s withi n tha t sourc e category ? (2 ) Residua l ris k standar d settin g i s require d fo r th e entir e sourc e categor yi f on e sourc e withi n th e sourc e categor yexceed s on e i n on e millio n risk . Wit hsuc ha broa d sourc e category , ther e i s sur e t o b e a sourc e exceedin g th e ris k cut-off . Residua l ris k standar d settin g wil l b e require d no t onl yfo r th e sourc e exceedin g th e cut-off , bu t fo r th e res t o f SOCM I a s well . Durin g thi s discussion , EP Aaske d ho wth e Equipmen t Leak s Negotiate d Regulatio n stagin g relate s t o wha t CMAi s askin g fo r wit hth e HON . CMAreplie d tha t th e tw o d o no t shar e a simila r leve l o f impac t becaus e requirement s unde r th e Equipmen t Leak s Standar d ar e fo r peopl e an d monitors , no t contro l equipment . 3. 0 GENERA L HO NINFORMATIO N Th e HO Nschedul e i s firm , an d change s ar e no t anticipate d a t thi s time . Proposa l i s schedule d fo r Novembe r 199 1 an d promulgatio n fo r Octobe r 1992 . CMAstresse d thei r nee d t o b e kep t curren t o n EPA' s planne d proposa l dat e sinc e credi t unde r th e earl y reductio n claus e o f th e CA Aca n onl yb e achieve d i f a compan y commit s t o a reductio n pla n prio r t o proposal .P. 6

EPA' s curren t approac hfo r th e HONprogram contain s th e following elements :

—th e productio n o f al l SOCM I chemical s wil l b e affecte d unde r th e HONrul e a t th e same time (simultaneou s implementatio n acros s th e industry )

—th e same leve l o f contro l wil l b e require d fo r a give n emissio n sourc e typ e fo r al l o f SOCM I

—ne wan

d existing source s wil l likel yhav e th e same contro l technologyt o achiev e maximu mreductio no f emissions . However , thi s coul d change , especiall yfo r ne wsource s sinc e th e singl e bes t controlle d simila r sourc e withi n a sourc e categoryestablishe s th e MAC T floo r fo r ne wsources . Fo r existing sources , th e floo r i s establishe d base d o n th e stop performing 1 2 percen t o f existing sources . CM Aaske d ho wregulatoryalternative s woul d differ . Woul d i t b e b ycontro l technologyo r cut-of f (applicability ) level ? Th e EPA responde d tha t regulatoryalternative s ar e anticipate d t o diffe r b y cut-of f level . Amor e stringen t alternativ e woul d contro l mor e sources . Th e contro l technologie s t o b e use d fo r estimating emission s reduction s an d contro l cost s ar e alread yknown . Fo r Proces s Vent s an d th e contro l technologie s currentl yunde r consideratio n ar e th e same a s thos e i n th e NSP S rule s —9 8 percen t emissio n reductio n b ycombustion . Th e Agenc yi s anticipating th e us e o f 98 % combustio n fo r th e contro l o f Transfe r emissions . Fo r storag e tanks , control s includ e interna l floating roof s wit hprope r seal s an

d fitting s an

d th e us e o f condenser s wher e floating roof s ar e no t applicable . Thes e ar e th e same control s require d b y previou s NSP S an

d NESHAP regulations . I t i s anticipate d tha t stea m stripping wil l b e th e contro l technolog yfo r Wastewater . Requiremen t fo r th e Equipmen t Leak s rul e wil l b e se t b yth e negotiate d regulation .