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 6560-50-P 

ENVIRONMENTAL PROTECTION AGENCY 

40 CFR Part 63 

[EPA-HQ-OAR-2010-0786; FRL- ] 

RIN 2060–AQ42 

National Emission Standards for Hazardous Air Pollutant 

Emissions: Shipbuilding and Ship Repair (Surface Coating) 

Operations; Wood Furniture Manufacturing Operations 

AGENCY: Environmental Protection Agency (EPA). 

ACTION: Proposed rule. 

SUMMARY: This action proposes how EPA will address the residual 

risk and technology reviews conducted for two industrial source 

categories regulated by two national emission standards for 

hazardous air pollutants. It also proposes to address 

provisions related to emissions during periods of startup, 

shutdown, and malfunction. 

DATES: Comments. Comments must be received on or before 

[INSERT DATE 45 DAYS FROM DATE OF PUBLICATION OF THIS PROPOSED 

RULE IN THE FEDERAL REGISTER]. Under the Paperwork Reduction 

Act, comments on the information collection provisions are best 

assured of having full effect if the Office of Management and 

Budget receives a copy of your comments on or before [INSERT 

DATE 30 DAYS FROM DATE OF PUBLICATION OF THIS PROPOSED RULE IN 

THE FEDERAL REGISTER]. 
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Public Hearing. If anyone contacts EPA requesting to speak 

at a public hearing by [INSERT DATE 10 DAYS FROM DATE OF 

PUBLICATION OF THIS PROPOSED RULE IN THE FEDERAL REGISTER], a 

public hearing will be held on [INSERT DATE 15 DAYS FROM DATE OF 

PUBLICATION OF THIS PROPOSED RULE IN THE FEDERAL REGISTER]. 

ADDRESSES: Submit your comments, identified by Docket ID Number 

EPA-HQ-OAR-2010-0786, by one of the following methods: 

• www.regulations.gov: Follow the on-line instructions for 

submitting comments. 

• E-mail: a-and-r-docket@epa.gov, Attention Docket ID Number 

EPA-HQ-OAR-2010-0786. 

• Facsimile: (202) 566-9744. Attention Docket ID Number 

EPA-HQ-OAR-2010-0786. 

• Mail: U.S. Postal Service, send comments to: EPA Docket 

Center, EPA West (Air Docket), Attention Docket ID Number 

EPA-HQ-OAR-2010-0786, U.S. Environmental Protection Agency, 

Mailcode: 2822T, 1200 Pennsylvania Ave., N.W., Washington, 

D.C. 20460. Please include a total of two copies. In 

addition, please mail a copy of your comments on the 

information collection provisions to the Office of 

Information and Regulatory Affairs, Office of Management 

and Budget (OMB), Attn: Desk Officer for EPA, 725 17th

Street, N.W., Washington, D.C. 20503. 
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• Hand Delivery: U.S. Environmental Protection Agency, EPA 

West (Air Docket), Room 3334, 1301 Constitution Ave., N.W., 

Washington, D.C. 20004. Attention Docket ID Number EPA-HQOAR-2010-0786. Such deliveries are only accepted during 

the Docket’s normal hours of operation, and special 

arrangements should be made for deliveries of boxed 

information. 

Instructions. Direct your comments to Docket ID Number 

EPA-HQ-OAR-2010-0786. EPA’s policy is that all comments 

received will be included in the public docket without change 

and may be made available on-line at www.regulations.gov, 

including any personal information provided, unless the comment 

includes information claimed to be confidential business 

information (CBI) or other information whose disclosure is 

restricted by statute. Do not submit information that you 

consider to be CBI or otherwise protected through 

www.regulations.gov or e-mail. The www.regulations.gov website 

is an “anonymous access” system, which means EPA will not know 

your identity or contact information unless you provide it in 

the body of your comment. If you send an e-mail comment 

directly to EPA without going through www.regulations.gov, your 

e-mail address will be automatically captured and included as 

part of the comment that is placed in the public docket and made 

available on the Internet. If you submit an electronic comment, 
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EPA recommends that you include your name and other contact 

information in the body of your comment and with any disk or CDROM you submit. If EPA cannot read your comment due to 

technical difficulties and cannot contact you for clarification, 

EPA may not be able to consider your comment. Electronic files 

should avoid the use of special characters, any form of 

encryption, and be free of any defects or viruses. For 

additional information about EPA’s public docket, visit the EPA 

Docket Center homepage at 

http://www.epa.gov/epahome/dockets.htm. 

Docket. The EPA has established a docket for this 

rulemaking under Docket ID Number EPA-HQ-OAR-2010-0786. All 

documents in the docket are listed in the www.regulations.gov

index. Although listed in the index, some information is not 

publicly available, e.g., CBI or other information whose 

disclosure is restricted by statute. Certain other material, 

such as copyrighted material, is not placed on the Internet and 

will be publicly available only in hard copy. Publicly 

available docket materials are available either electronically 

in www.regulations.gov or in hard copy at the EPA Docket Center, 

EPA West, Room 3334, 1301 Constitution Ave., N.W., Washington, 

D.C. The Public Reading Room is open from 8:30 a.m. to 4:30 

p.m., Monday through Friday, excluding legal holidays. The 

telephone number for the Public Reading Room is (202) 566-1744, 
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and the telephone number for the EPA Docket Center is (202) 566-

1742. 

Public Hearing. If a public hearing is held, it will begin 

at 10 a.m. on [INSERT DATE 15 DAYS FROM DATE OF PUBLICATION OF 

THIS PROPOSED RULE IN THE FEDERAL REGISTER] and will be held at 

EPA’s campus in Research Triangle Park, North Carolina, or at an 

alternate facility nearby. Persons interested in presenting 

oral testimony or inquiring as to whether a public hearing is to 

be held should contact Ms. Joan Rogers, Office of Air Quality 

Planning and Standards, Sector Policies and Programs Division, 

Natural Resources and Commerce Group (E143–01), U.S. 

Environmental Protection Agency, Research Triangle Park, North 

Carolina 27711; telephone number: (919) 541–4487. 

FOR FURTHER INFORMATION CONTACT: For questions about this 

proposed action, contact Ms. J. Kaye Whitfield, Sector Policies 

and Programs Division (E143-01), Office of Air Quality Planning 

and Standards, U.S. Environmental Protection Agency, Research 

Triangle Park, North Carolina 27711, telephone (919) 541-2509; 

facsimile number: (919) 541-3470; and e-mail address: 

whitfield.kaye@epa.gov. For specific information regarding the 

risk modeling methodology, contact Ms. Elaine Manning, Health 

and Environmental Impacts Division (C539-02), Office of Air 

Quality Planning and Standards, U.S. Environmental Protection 

Agency, Research Triangle Park, NC 27711; telephone number: 
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(919) 541–5499; facsimile number: (919) 541–0840; and e-mail 

address: manning.elaine@epa.gov. For information about the 

applicability of these two National Emissions Standards for 

Hazardous Air Pollutants (NESHAP) to a particular entity, 

contact the appropriate person listed in Table 1 to this 

preamble. 

TABLE 1--LIST OF EPA CONTACTS FOR THE NESHAP ADDRESSED IN THIS 

PROPOSED ACTION 

NESHAP for: OECA Contact1 OAQPS Contact2

Shipbuilding 

and Ship Repair 

(surface 

coating) 

Operations 

Len Lazarus, (202) 564–

6369, 

Lazarus.leonard@epa.gov

Kaye Whitfield, (919) 

541-2509, 

whitfield.kaye@epa.gov

Wood Furniture 

Manufacturing 

Operations 

Len Lazarus, (202) 564–

6369, 

Lazarus.leonard@epa.gov

Kaye Whitfield, (919) 

541-2509, 

whitfield.kaye@epa.gov

1

 OECA stands for EPA’s Office of Enforcement and Compliance 

Assurance. 

2

 OAQPS stands for EPA’s Office of Air Quality Planning and 

Standards. 

SUPPLEMENTARY INFORMATION: 

I. Preamble Acronyms and Abbreviations 

 Several acronyms and terms used to describe industrial 

processes, data inventories, and risk modeling are included in 

this preamble. While this may not be an exhaustive list, to 

ease the reading of this preamble and for reference purposes, 

the following terms and acronyms are defined here: 

ADAF Age-dependent Adjustment Factors 

AERMOD The air dispersion model used by the HEM-3 model 

AEGL Acute Exposure Guideline Levels 

ACA American Coatings Association 
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AHFA American Home Furnishings Alliance 

ANPRM Advance Notice of Proposed Rulemaking 

BACT Best Available Control Technology 

BIFMA Business and Institutional Furniture Manufacturer’s 

Association 

CalEPA California Environmental Protection Agency 

CAA Clean Air Act 

CBI Confidential Business Information 

CEEL Community Emergency Exposure Levels 

CEM Continuos Emissions Monitoring System 

CFR Code of Federal Regulations 

EJ Environmental Justice 

EPA Environmental Protection Agency 

ERPG Emergency Response Planning Guidelines 

HAP Hazardous Air Pollutants 

HI Hazard Index 

HEM-3 Human Exposure Model version 3 

HON Hazardous Organic National Emissions Standards for 

Hazardous Air Pollutants 

HQ Hazard Quotient 

IRIS Integrated Risk Information System 

KCMA Kitchen Cabinet Manufacturing Association 

Km Kilometer 

LAER Lowest Achievable Emission Rate 

LOAEL Lowest Observed Adverse Effect Level 

MACT Maximum Achievable Control Technology 

MACT Code Code within the NEI used to identify processes 

included in a source category 

MIR Maximum Individual Risk 

NAC/AEGL 

Committee National Advisory Committee for Acute Exposure 

Guideline Levels for Hazardous Substances 

NAICS North American Industry Classification System 

NAS National Academy of Sciences 

NATA National Air Toxics Assessment 

NESHAP National Emissions Standards for Hazardous Air 

Pollutants 

NEI National Emissions Inventory 

NOAEL No Observed Adverse Effects Level 

NOx Nitrous Oxide 

NRC National Research Council 

NTTAA National Technology Transfer and Advancement Act 

OAQPS EPA’s Office of Air Quality Planning and Standards 

OECA EPA’s Office of Enforcement and Compliance 

Assurance 

OMB Office of Management and Budget 

PB-HAP Hazardous air pollutants known to be persistent and 
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bio-accumulative in the environment 

POM Polycyclic Organic Matter 

PPRTV Provisional Peer Reviewed Toxicity Value 

PVA Polyvinyl Acetate 

RACT Reasonably Available Control Technology 

RBLC RACT/BACT/LAER Clearinghouse 

REL CalEPA Reference Exposure Level 

RFA Regulatory Flexibility Act 

RfC Reference Concentration 

RfD Reference Dose 

RTO Regenerative Thermal Oxidizer 

RTR Residual Risk and Technology Review 

SAB Science Advisory Board 

SBA Small Business Administration 

SCC Source Classification Codes 

SF3 2000 Census of Population and Housing Summary File 3 

SOP Standard Operating Procedures 

SSM Startup, Shutdown, and Malfunction 

TOSHI Target Organ-Specific Hazard Index 

TPY Tons Per Year 

TRIM Total Risk Integrated Modeling System 

TTN Technology Transfer Network 

UF Uncertainty Factor 

UMRA Unfunded Mandates Reform Act 

URE Unit Risk Estimate 

VOC Volatile Organic Compounds 

VOHAP Volatile Organic Hazardous Air Pollutants 

WWW Worldwide Web 

Organization of This Document. The following outline is 

provided to aid in locating information in this preamble. 

I. Preamble Acronyms and Abbreviations 

II. General Information 

A. Does this action apply to me? 

B. Where can I get a copy of this document and other related 

information? 

C. What should I consider as I prepare my comments for EPA? 

D. How is this document organized? 

III. Background 

A. What is the statutory authority for this action? 

B. How did we consider the risk results in making decisions 

for this proposal? 

C. What other actions are we addressing in this proposal? 
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IV. Analyses Performed 

A. How did we estimate risks posed by the source categories? 

B. How did we perform the technology review? 

V. Analyses Results and Proposed Decisions 

A. What are the results and proposed decisions for the 

Shipbuilding and Ship Repair (surface coating) Operations source 

category? 

B. What are the results and proposed decisions for the Wood 

Furniture Manufacturing Operations source category? 

VI. Proposed Action 

A. What actions are we proposing as a result of the technology 

reviews? 

B. What actions are we proposing as a result of the residual 

risk reviews? 

C. What other actions are we proposing? 

VII. Request for Comments 

VIII. Submitting Data Corrections 

IX. Statutory and Executive Order Reviews 

A. Executive Order 12866: Regulatory Planning and Review 

B. Paperwork Reduction Act 

C. Regulatory Flexibility Act 

D. Unfunded Mandates Reform Act 

E. Executive Order 13132: Federalism 

F. Executive Order 13175: Consultation and Coordination with 

Indian Tribal Governments 

G. Executive Order 13045: Protection of Children from 

 Environmental Health Risks and Safety Risks 

H. Executive Order 13211: Actions Concerning Regulations That 

Significantly Affect Energy Supply, Distribution, or Use 

I. National Technology Transfer and Advancement Act 

J. Executive Order 12898: Federal Actions to Address 

 Environmental Justice in Minority Populations and Low- 

 Income Populations

II. General Information 

A. Does this action apply to me?

 The regulated industrial source categories that are the 

subject of this proposal are listed in Table 2 to this preamble. 

Table 2 is not intended to be exhaustive, but rather provides a 

guide for readers regarding entities likely to be affected by 

the proposed action for the source categories listed. These 
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standards, and any changes considered in this rulemaking, would 

be directly applicable to sources as a federal program. Thus, 

federal, state, local, and tribal government entities are not 

affected by this proposed action. The regulated categories 

affected by this proposed action are shown in Table 2. 

TABLE 2--NESHAP AND INDUSTRIAL SOURCE CATEGORIES AFFECTED BY 

THIS PROPOSED ACTION 

NESHAP and Source Category NAICS code

1

MACT code

2

Shipbuilding and Ship Repair 

(surface coating) Operations 

336611 0715-2 

Wood Furniture Manufacturing 

Operations 

3371, 3372, 

3379 

0716 

1

 North American Industry Classification System 

2

 Maximum Achievable Control Technology 

B. Where can I get a copy of this document and other related 

information?

In addition to being available in the docket, an electronic 

copy of this proposal will also be available on the WWW through 

the TTN. Following signature by the EPA Administrator, a copy 

of this proposed action will be posted on the TTN’s policy and 

guidance page for newly proposed or promulgated rules at the 

following address: http://www.epa.gov/ttn/atw/rrisk/rtrpg.html. 

The TTN provides information and technology exchange in various 

areas of air pollution control. 

Additional information is available on the RTR web page at 

http://www.epa.gov/ttn/atw/rrisk/rtrpg.html. This information 
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includes source category descriptions and detailed emissions and 

other data that were used as inputs to the risk assessments. 

C. What should I consider as I prepare my comments for EPA?

Submitting CBI. Do not submit information containing CBI 

to EPA through www.regulations.gov or e-mail. Clearly mark the 

part or all of the information that you claim to be CBI. For 

CBI information on a disk or CD ROM that you mail to EPA, mark 

the outside of the disk or CD ROM as CBI and then identify 

electronically within the disk or CD ROM the specific 

information that is claimed as CBI. In addition to 1 complete 

version of the comment that includes information claimed as CBI, 

a copy of the comment that does not contain the information 

claimed as CBI must be submitted for inclusion in the public 

docket. If you submit a CD ROM or disk that does not contain 

CBI, mark the outside of the disk or CD ROM clearly that it does 

not contain CBI. Information not marked as CBI will be included 

in the public docket and EPA’s electronic public docket without 

prior notice. Information marked as CBI will not be disclosed 

except in accordance with procedures set forth in 40 CFR part 2. 

Send or deliver information identified as CBI only to the 

following address: Roberto Morales, OAQPS Document Control 

Officer (C404-02), Office of Air Quality Planning and Standards, 

U.S. Environmental Protection Agency, Research Triangle Park, 
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North Carolina 27711, Attention Docket ID Number EPA-HQ-OAR2010-0786. 

III. Background 

A. What is the statutory authority for this action? 

Section 112 of the CAA establishes a two-stage regulatory 

process to address emissions of HAP from stationary sources. In 

the first stage, after EPA has identified categories of sources 

emitting 1 or more of the HAP listed in section 112(b) of the 

CAA, section 112(d) of the CAA calls for us to promulgate NESHAP 

for those sources. “Major sources” are those that emit or have 

the potential to emit 10 TPY or more of a single HAP or 25 TPY 

or more of any combination of HAP. For major sources, these 

technology-based standards must reflect the maximum degree of 

emission reductions of HAP achievable (after considering cost, 

energy requirements, and nonair quality health and environmental 

impacts) and are commonly referred to as MACT standards. 

Maximum Achievable Control Technology standards are to 

reflect application of measures, processes, methods, systems, or 

techniques, including, but not limited to, measures which, (A) 

reduce the volume of or eliminate pollutants through process 

changes, substitution of materials or other modifications; (B) 

enclose systems or processes to eliminate emissions; (C) capture 

or treat pollutants when released from a process, stack, 
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storage, or fugitive emissions point; (D) are design, equipment, 

work practice, or operational standards (including requirements 

for operator training or certification); or (E) are a 

combination of the above. CAA section 112(d)(2)(A)-(E). The 

MACT standards may take the form of design, equipment, work 

practice, or operational standards where EPA first determines 

either that, (A) a pollutant cannot be emitted through a 

conveyance designed and constructed to emit or capture the 

pollutants, or that any requirement for, or use of, such a 

conveyance would be inconsistent with law; or (B) the 

application of measurement methodology to a particular class of 

sources is not practicable due to technological and economic 

limitations. CAA sections 112(h)(1)-(2). 

The MACT “floor” is the minimum control level allowed for 

MACT standards promulgated under CAA section 112(d)(3) and may 

not be based on cost considerations. For new sources, the MACT 

floor cannot be less stringent than the emission control that is 

achieved in practice by the best-controlled similar source. The 

MACT floors for existing sources can be less stringent than 

floors for new sources, but they cannot be less stringent than 

the average emissions limitation achieved by the best-performing 

12 percent of existing sources in the category or subcategory 

(or the best-performing 5 sources for categories or 

subcategories with fewer than 30 sources). In developing MACT 
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standards, we must also consider control options that are more 

stringent than the floor. We may establish standards more 

stringent than the floor based on the consideration of the cost 

of achieving the emissions reductions, any nonair quality health 

and environmental impacts, and energy requirements. 

The EPA is then required to review these technology-based 

standards and to revise them “as necessary (taking into 

account developments in practices, processes, and control 

technologies)” no less frequently than every 8 years, under 

CAA section 112(d)(6). In conducting this review, EPA is not 

obliged to completely recalculate the prior MACT determination. 

NRDC v. EPA, 529 F.3d 1077, 1084 (District of Columbia Circuit, 

2008). 

The second stage in standard-setting focuses on reducing 

any remaining “residual” risk according to CAA section 112(f). 

This provision requires, first, that EPA prepare a Report to

Congress discussing (among other things) methods of calculating 

the risks posed (or potentially posed) by sources after 

implementation of the MACT standards, the public health 

significance of those risks, the means and costs of controlling 

them, the actual health effects to persons in proximity of 

emitting sources, and the recommendations regarding legislation 

of such remaining risk. EPA prepared and submitted this report 

(Residual Risk Report to Congress, EPA–453/R–99–001) in March 
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1999. Congress did not act in response to the report, thereby 

triggering EPA’s obligation under CAA section 112(f)(2) to 

analyze and address residual risk. 

Section 112(f)(2)of the CAA requires us to determine, for 

source categories subject to certain MACT standards, whether the 

emissions standards provide an ample margin of safety to protect 

public health. If the MACT standards for HAP “classified as a 

known, probable, or possible human carcinogen do not reduce 

lifetime excess cancer risks to the individual most exposed to 

emissions from a source in the category or subcategory to less 

than 1-in-1 million,” EPA must promulgate residual risk 

standards for the source category (or subcategory) as necessary 

to provide an ample margin of safety to protect public health. 

In doing so, EPA may adopt standards equal to existing MACT 

standards if EPA determines that the existing standards are 

sufficiently protective. As stated in NRDC v. EPA, 529 F.3d 

1077, 1083 (D.C. Cir., 2008), “If EPA determines that the 

existing technology-based standards provide an ‘ample margin of 

safety,’ then the Agency is free to readopt those standards 

during the residual risk rulemaking.” EPA must also adopt more 

stringent standards, if necessary, to prevent an adverse 
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environmental effect,1 but must consider cost, energy, safety, 

and other relevant factors in doing so. 

Section 112(f)(2) of the CAA expressly preserves our use of 

a two-step process for developing standards to address any 

residual risk and our interpretation of “ample margin of safety” 

developed in the National Emission Standards for Hazardous Air 

Pollutants: Benzene Emissions from Maleic Anhydride Plants, 

Ethylbenzene/Styrene Plants, Benzene Storage Vessels, Benzene

Equipment Leaks, and Coke By-Product Recovery Plants (Benzene 

NESHAP) (54 FR 38044, September 14, 1989). The first step in 

this process is the determination of acceptable risk. The 

second step provides for an ample margin of safety to protect 

public health, which is the level at which the standards are set 

(unless a more stringent standard is required to prevent, taking 

into consideration costs, energy, safety, and other relevant 

factors, an adverse environmental effect). 

The terms “individual most exposed,” “acceptable level,” 

and “ample margin of safety” are not specifically defined in the 

CAA. However, CAA section 112(f)(2)(B) preserves the 

interpretation set out in the Benzene NESHAP, and the Court in 

NRDC v. EPA, concluded that EPA’s interpretation of subsection 

 

1 “Adverse environmental effect” is defined in CAA section 112(a)(7) as 

any significant and widespread adverse effect, which may be reasonably 

anticipated to wildlife, aquatic life, or natural resources, including 

adverse impacts on populations of endangered or threatened species or 

significant degradation of environmental qualities over broad areas. 
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112(f)(2) is a reasonable one. See NRDC v. EPA, 529 F.3d 1077, 

1083 (D.C. Cir., 2008) (“[S]ubsection 112(f)(2)(B) expressly 

incorporates EPA’s interpretation of the Clean Air Act from the 

Benzene standard, complete with a citation to the Federal 

Register”). See also, A Legislative History of the Clean Air 

Act Amendments of 1990, volume 1, p. 877 (Senate debate on 

Conference Report). We notified Congress in the Residual Risk 

Report to Congress that we intended to use the Benzene NESHAP 

approach in making CAA section 112(f) residual risk 

determinations (EPA–453/R–99–001, p. ES–11). 

In the Benzene NESHAP, we stated as an overall objective: 

* * * in protecting public health with an ample margin of 

safety, we strive to provide maximum feasible protection 

against risks to health from hazardous air pollutants by 

(1) protecting the greatest number of persons possible to 

an individual lifetime risk level no higher than 

approximately 1-in-1 million; and (2) limiting to no higher 

than approximately 1-in-10 thousand [i.e., 100-in-1 

million] the estimated risk that a person living near a 

facility would have if he or she were exposed to the 

maximum pollutant concentrations for 70 years. 

The Agency also stated that, “The EPA also considers 

incidence (the number of persons estimated to suffer cancer or 

other serious health effects as a result of exposure to a 
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pollutant) to be an important measure of the health risk to the 

exposed population. Incidence measures the extent of health 

risk to the exposed population as a whole, by providing an 

estimate of the occurrence of cancer or other serious health 

effects in the exposed population.” The Agency went on to 

conclude that “estimated incidence would be weighed along with 

other health risk information in judging acceptability.” As 

explained more fully in our Residual Risk Report to Congress, 

EPA does not define “rigid line[s] of acceptability,” but 

considers rather broad objectives to be weighed with a series of 

other health measures and factors (EPA–453/R–99–001, p. ES–11). 

The determination of what represents an “acceptable” risk is 

based on a judgment of “what risks are acceptable in the world 

in which we live” (Residual Risk Report to Congress, p. 178, 

quoting the Vinyl Chloride decision at 824 F.2d 1165) 

recognizing that our world is not risk-free. 

In the Benzene NESHAP, we stated that “EPA will generally 

presume that if the risk to [the maximum exposed] individual is 

no higher than approximately 1-in-10 thousand, that risk level 

is considered acceptable.” 54 FR 38045. We discussed the 

maximum individual lifetime cancer risk as being “the estimated 

risk that a person living near a plant would have if he or she 

were exposed to the maximum pollutant concentrations for 70 

years.” Id. We explained that this measure of risk “is an 
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estimate of the upper bound of risk based on conservative 

assumptions, such as continuous exposure for 24 hours per day 

for 70 years.” Id. We acknowledge that maximum individual 

lifetime cancer risk “does not necessarily reflect the true 

risk, but displays a conservative risk level which is an upperbound that is unlikely to be exceeded.” Id. 

Understanding that there are both benefits and limitations 

to using maximum individual lifetime cancer risk as a metric for 

determining acceptability, we acknowledged in the 1989 Benzene 

NESHAP that “consideration of maximum individual risk * * * must 

take into account the strengths and weaknesses of this 

measure of risk.” Id. Consequently, the presumptive risk level 

of 100-in-1 million (1-in-10 thousand) provides a benchmark for 

judging the acceptability of maximum individual lifetime cancer 

risk, but does not constitute a rigid line for making that 

determination. 

The Agency also explained in the 1989 Benzene NESHAP the 

following: “In establishing a presumption for MIR [maximum 

individual cancer risk], rather than a rigid line for 

acceptability, the Agency intends to weigh it with a series of 

other health measures and factors. These include the overall 

incidence of cancer or other serious health effects within the 

exposed population, the numbers of persons exposed within each 

individual lifetime risk range and associated incidence within, 
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typically, a 50-km exposure radius around facilities, the 

science policy assumptions and estimation uncertainties 

associated with the risk measures, weight of the scientific 

evidence for human health effects, other quantified or 

unquantified health effects, effects due to co-location of 

facilities, and co-emission of pollutants.” Id.

In some cases, these health measures and factors taken 

together may provide a more realistic description of the 

magnitude of risk in the exposed population than that provided 

by maximum individual lifetime cancer risk alone. As explained 

in the Benzene NESHAP, “[e]ven though the risks judged 

“acceptable” by EPA in the first step of the Vinyl Chloride 

inquiry are already low, the second step of the inquiry, 

determining an “ample margin of safety,” again includes 

consideration of all of the health factors, and whether to 

reduce the risks even further.” In the ample margin of safety 

decision process, the Agency again considers all of the health 

risks and other health information considered in the first step. 

Beyond that information, additional factors relating to the 

appropriate level of control will also be considered, including 

costs and economic impacts of controls, technological 

feasibility, uncertainties, and any other relevant factors. 

Considering all of these factors, the Agency will establish the 

standard at a level that provides an ample margin of safety to 
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protect the public health, as required by CAA section 112(f). 

54 FR 38046. 

B. How did we consider the risk results in making decisions

for this proposal?

As discussed in section III.A of this preamble, we apply a 

two-step process for developing standards to address residual 

risk. In the first step, EPA determines if risks are 

acceptable. This determination “considers all health 

information, including risk estimation uncertainty, and includes 

a presumptive limit on maximum individual lifetime [cancer] risk 

(MIR)2 of approximately 1-in-10 thousand [i.e., 100-in-1 

million].” 54 FR 38045. In the second step of the process, EPA 

sets the standard at a level that provides an ample margin of 

safety “in consideration of all health information, including 

the number of persons at risk levels higher than approximately 

1-in-1 million, as well as other relevant factors, including 

costs and economic impacts, technological feasibility, and other 

factors relevant to each particular decision.” Id. 

In past residual risk determinations, EPA presented a 

number of human health risk metrics associated with emissions 

from the category under review, including: the MIR; the numbers 

 

2 Although defined as “maximum individual risk,” MIR refers only to 

cancer risk. MIR, one metric for assessing cancer risk, is the 

estimated risk were an individual exposed to the maximum level of a 

pollutant for a lifetime.
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of persons in various risk ranges; cancer incidence; the maximum 

non-cancer HI; and the maximum acute non-cancer hazard (75 FR 

65068, October 21, 2010). EPA also presented and considered 

additional measures of health information to support our 

decision-making, including: estimates of “total facility” risks 

(risks from all HAP emissions from the facility at which the 

source category is located); demographic analyses (analyses of 

the distributions of HAP-related risks across different social, 

demographic, and economic groups living near the facilities); 

and estimates of the risks associated with emissions allowed by 

the MACT standards. EPA also discussed and considered risk 

estimation uncertainties. EPA is providing this same type of 

information in support of the proposed actions described in this 

Federal Register notice. 

The Agency is considering all available health information 

to inform our determinations of risk acceptability and ample 

margin of safety under CAA section 112(f). Specifically, as 

explained in the Benzene NESHAP, “the first step judgment on 

acceptability cannot be reduced to any single factor” and thus 

“[t]he Administrator believes that the acceptability of risk 

under section 112 is best judged on the basis of a broad set of 

health risk measures and information.” 54 FR 38044, 38046 (Sept. 

14, 1989). Similarly, with regard to making the ample margin of 

safety determination, as stated in the Benzene NESHAP “[I]n the 
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ample margin decision, the Agency again considers all of the 

health risk and other health information considered in the first 

step. Beyond that information, additional factors relating to 

the appropriate level of control will also be considered, 

including cost and economic impacts of controls, technological 

feasibility, uncertainties, and any other relevant factors.” 

Id.

The Agency acknowledges that flexibility is provided by the 

Benzene NESHAP regarding what factors EPA might consider in 

making determinations and how they might be weighed for each 

source category. In responding to comment on our policy under 

the Benzene NESHAP, EPA explained that: “The policy chosen by 

the Administrator permits consideration of multiple measures of 

health risk. Not only can the MIR figure be considered, but 

also incidence, the presence of non-cancer health effects, and 

the uncertainties of the risk estimates. In this way, the 

effect on the most exposed individuals can be reviewed as well 

as the impact on the general public. These factors can then be 

weighed in each individual case. This approach complies with 

the Vinyl Chloride mandate that the Administrator ascertain an 

acceptable level of risk to the public by employing [her] 

expertise to assess available data. It also complies with the 

Congressional intent behind the CAA, which did not exclude the 

use of any particular measure of public health risk from the 
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EPA's consideration with respect to CAA section 112 regulations, 

and, thereby, implicitly permits consideration of any and all 

measures of health risk which the Administrator, in [her] 

judgment, believes are appropriate to determining what will 

‘protect the public health.’” 54 FR 38057. 

For example, the level of the MIR is only one factor to be 

weighed in determining acceptability of risks. It is explained 

in the Benzene NESHAP that “an MIR of approximately 1-in-10 

thousand should ordinarily be the upper end of the range of 

acceptability. As risks increase above this benchmark, they 

become presumptively less acceptable under CAA section 112, and 

would be weighed with the other health risk measures and 

information in making an overall judgment on acceptability. Or, 

the Agency may find, in a particular case, that a risk that 

includes MIR less than the presumptively acceptable level is 

unacceptable in the light of other health risk factors.” Id. at 

38045. Similarly, with regard to the ample margin of safety 

analysis, it is stated in the Benzene NESHAP that: “...EPA 

believes the relative weight of the many factors that can be 

considered in selecting an ample margin of safety can only be 

determined for each specific source category. This occurs 

mainly because technological and economic factors (along with 

the health-related factors) vary from source category to source 

category.” Id. at 38061. 
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EPA wishes to point out that certain health information has 

not been considered in these decisions. In assessing risks to 

populations in the vicinity of the facilities in each category, 

we present estimates of risk associated with HAP emissions from 

the source category alone (source category risk estimates) and 

HAP emissions from the entire facilities at which the covered 

source categories are located (facility-wide risk estimates). 

We do not attempt to characterize the risks associated with all 

HAP emissions impacting the populations living near the sources 

in these categories. That is, at this time, we do not attempt 

to quantify those HAP risks that may be associated with other 

facility emissions mobile source emissions, natural source 

emissions, persistent environmental pollution, or atmospheric 

transformation in the vicinity of the sources in these 

categories. 

The Agency understands the potential importance of 

considering an individual’s total exposure to HAP in addition to 

considering exposure to HAP emissions from the source category 

and facility. This is particularly important when assessing 

non-cancer risks, where pollutant-specific exposure levels 

(e.g., RfC) are based on the assumption that thresholds exist 

for adverse health effects. For example, the Agency recognizes 

that, although exposures attributable to emissions from a source 

category or facility alone may not indicate the potential for 
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increased risk of adverse non-cancer health effects in a 

population, the exposures resulting from emissions from the 

facility in combination with emissions from all of the other 

sources (e.g., other facilities) to which an individual is 

exposed may be sufficient to result in increased risk of adverse 

non-cancer health effects. In May 2010, the SAB advised us “... 

that RTR assessments will be most useful to decision makers and 

communities if results are presented in the broader context of 

aggregate and cumulative risks, including background 

concentrations and contributions from other sources in the 

area.”3 

While we are interested in placing source category and 

facility-wide HAP risks in the context of total HAP risks from 

all sources combined in the vicinity of each source, we are 

concerned about the uncertainties of doing so. At this point, 

we believe that such estimates of total HAP risks will have 

significantly greater associated uncertainties than for the 

source category or facility-wide estimates, hence compounding 

the uncertainty in any such comparison. This is because we have 

 

3

 EPA’s responses to this and all other key recommendations of the 

SAB’s advisory on RTR risk assessment methodologies (which is 

available at: 

http://yosemite.epa.gov/sab/sabproduct.nsf/4AB3966E263D943A8525771F006

68381/$File/EPA-SAB-10-007-unsigned.pdf) are outlined in a memo to 

this rulemaking docket from David Guinnup entitled, EPA’s Actions in 

Response to the Key Recommendations of the SAB Review of RTR Risk 

Assessment Methodologies. 
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not conducted a detailed technical review of HAP emissions data 

for source categories and facilities that have not previously 

undergone a RTR review or are not currently undergoing such 

review. We are requesting comment on whether and how best to 

estimate and evaluate total HAP exposure in our assessments, 

and, in particular, on whether and how it might be appropriate 

to use information from EPA’s NATA to support such estimates. 

We are also seeking comment on how best to consider various 

types and scales of risk estimates when making our acceptability 

and ample margin of safety determinations under CAA section 

112(f). Additionally, we are seeking comments and 

recommendations for any other comparative measures that may be 

useful in the assessment of the distribution of HAP risks across 

potentially affected demographic groups. 

C. What other actions are we addressing in this proposal?

 We are also proposing to revise requirements in these MACT 

standards related to emissions during periods of SSM. 

 The Court vacated portions of two provisions in EPA’s CAA 

section 112 regulations governing the emissions of HAP during 

periods of SSM. Sierra Club v. EPA, 551 F.3d 1019 (D.C., 

Circuit, 2008). Specifically, the Court vacated the SSM 

exemption contained in 40 CFR 63.6(f)(1) and 40 CFR 63.6(h)(1), 

that are part of a regulation, commonly referred to as the 

“General Provisions Rule,” that EPA promulgated under section 
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112 of the CAA. When incorporated into a CAA section 112(d) 

regulations for specific source categories, these two provisions 

exempt sources from the requirement to comply with the otherwise 

applicable CAA section 112(d) emission standard during periods 

of SSM. 

We are proposing the elimination of the SSM exemption in 

both of the MACT standards addressed in this proposal. 

Consistent with Sierra Club v. EPA, EPA is proposing standards 

in these rules that apply at all times. In proposing the 

standards in these rules, EPA has taken into account startup and 

shutdown periods, and, because operations and emissions do not 

differ from normal operations during these periods, has not 

proposed different standards for these periods. We are also 

proposing several revisions to the General Provisions

Applicability table in both of the MACT standards. For example, 

we are proposing to eliminate the incorporation of the General 

Provisions’ requirement that the source develop a SSM plan. We 

are also proposing to eliminate or revise certain recordkeeping 

and reporting requirements related to the SSM exemption. EPA 

has attempted to ensure that we have not included in the 

proposed regulatory language any provisions that are 

inappropriate, unnecessary, or redundant in the absence of the 

SSM exemption. We are specifically seeking comment on whether 

there are any such provisions that we have inadvertently 
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incorporated or overlooked. 

Periods of startup, normal operations, and shutdown are all 

predictable and routine aspects of a source’s operations. 

However, by contrast, malfunction is defined as a “sudden, 

infrequent, and not reasonably preventable failure of air 

pollution control and monitoring equipment, process equipment or 

a process to operate in a normal or usual manner * * * ” (40 CFR

63.2). EPA has determined that malfunctions should not be 

viewed as a distinct operating mode and, therefore, any 

emissions that occur at such times do not need to be factored 

into development of CAA section 112(d) standards, which, once 

promulgated, apply at all times. In Mossville Environmental 

Action Now v. EPA, 370 F.3d 1232, 1242 (D.C. Cir. 2004), the 

Court upheld as reasonable standards that had factored in 

variability of emissions under all operating conditions. 

However, nothing in CAA section 112(d) or in case law requires 

that EPA anticipate and account for the innumerable types of 

potential malfunction events in setting emission standards. See 

Weyerhaeuser v. Costle, 590 F.2d 1011, 1058 (D.C. Cir. 1978), 

(“In the nature of things, no general limit, individual permit, 

or even any upset provision can anticipate all upset situations. 

After a certain point, the transgression of regulatory limits 

caused by "uncontrollable acts of third parties," such as 

strikes, sabotage, operator intoxication or insanity, and a 
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variety of other eventualities, must be a matter for the 

administrative exercise of case-by-case enforcement discretion, 

not for specification in advance by regulation.”). Further, it 

is reasonable to interpret CAA section 112(d) as not requiring 

EPA to account for malfunctions in setting emissions standards. 

For example, we note that CAA section 112 uses the concept of 

“best performing” sources in defining MACT, the level of 

stringency that major source standards must meet. Applying the 

concept of “best performing” to a source that is malfunctioning 

presents significant difficulties. The goal of best performing 

sources is to operate in such a way as to avoid malfunctions of 

their units. Moreover, even if malfunctions were considered a 

distinct operating mode, we believe it would be impracticable to 

take malfunctions into account in setting CAA section 112(d) 

standards for shipbuilding and ship repair (surface coating) 

operations and wood furniture manufacturing operations. As 

noted above, by definition, malfunctions are sudden and 

unexpected events, and it would be difficult to set a standard 

that takes into account the myriad different types of 

malfunctions that can occur across all sources in each source 

category. Malfunctions can also vary in frequency, degree, and 

duration, further complicating standard setting. 

In the event that a source fails to comply with the 

applicable CAA section 112(d) standards as a result of a 
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malfunction event, EPA would determine an appropriate response 

based on, among other things, the good faith efforts of the 

source to minimize emissions during malfunction periods, 

including preventative and corrective actions, as well as root 

cause analyses to ascertain and rectify excess emissions. EPA 

would also consider whether the source's failure to comply with 

the CAA section 112(d) standard was, in fact, “sudden, 

infrequent, not reasonably preventable” and was not instead 

“caused in part by poor maintenance or careless operation.” 40 

CFR 63.2 (definition of malfunction). 

Finally, EPA recognizes that even equipment that is 

properly designed and maintained can sometimes fail and that 

such failure can sometimes cause or contribute to an exceedance 

of the relevant emission standard. (See, e.g., State 

Implementation Plans: Policy Regarding Excessive Emissions 

During Malfunctions, Startup, and Shutdown (September 20, 1999); 

Policy on Excess Emissions During Startup, Shutdown, 

Maintenance, and Malfunctions (February 15, 1983)). EPA is, 

therefore, proposing to add to the final rule an affirmative 

defense to civil penalties for exceedances of emission limits 

that are caused by malfunctions in both of the MACT standards 

addressed in this proposal. See 40 CFR 63.1341 (defining 

“affirmative defense” to mean, in the context of an enforcement 

proceeding, a response or defense put forward by a defendant, 
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regarding which the defendant has the burden of proof, and the 

merits of which are independently and objectively evaluated in a 

judicial or administrative proceeding). We also are proposing 

other regulatory provisions to specify the elements that are 

necessary to establish this affirmative defense; a source 

subject to the Shipbuilding and Ship Repair (Surface Coating) 

Operations MACT standards must prove by a preponderance of the 

evidence that it has met all of the elements set forth in 40 CFR 

63.781(d) and a source subject to the Wood Furniture 

Manufacturing Operations MACT standards must prove by a 

preponderance of the evidence that it has met all of the 

elements set forth in 40 CFR 63.800(h). (See 40 CFR 22.24.) 

The criteria ensure that the affirmative defense is available 

only where the event that causes an exceedance of the emission 

limit meets the narrow definition of malfunction in 40 CFR 63.2 

(sudden, infrequent, not reasonably preventable and not caused 

by poor maintenance and or careless operation). The criteria 

also are designed to ensure that steps are taken to correct the 

malfunction, to minimize emissions in accordance with 40 CFR 

63.783(b)(1) for sources subject to the Shipbuilding and Ship 

Repair (Surface Coating) Operations MACT standards, or 40 CFR 

63.802(c) for sources subject to the Wood Furniture 

Manufacturing Operations MACT standards, and to prevent future 

malfunctions. In any judicial or administrative proceeding, the 
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Administrator may challenge the assertion of the affirmative 

defense and, if the respondent has not met its burden of proving 

all of the requirements in the affirmative defense, appropriate 

penalties may be assessed in accordance with section 113 of the 

CAA (see also 40 CFR 22.77). 

IV. Analyses Performed 

 As discussed above, in this notice, we are taking the 

following actions: (1) we are proposing action to address the 

RTR requirements of CAA sections 112(d)(6) and (f)(2) for both 

the Shipbuilding and Ship Repair (Surface Coating) Operations 

and the Wood Furniture Manufacturing Operations MACT standards, 

and, (2) we are proposing to revise the provisions in both of 

these MACT standards to address SSM to ensure that the SSM 

provisions are consistent with the Court decision in Sierra Club

v. EPA, 551 F. 3d 1019. In this section, we describe the 

analyses performed to support the proposed decisions for the 

RTRs for each of these source categories. 

A. How did we estimate risks posed by the source categories?

 The EPA conducted risk assessments that provided estimates 

of the MIR posed by the HAP emissions from each source in a 

category, and by each source category, the distribution of 

cancer risks within the exposed populations, cancer incidence, 

HI for chronic exposures to HAP with the potential to cause noncancer health effects, HQ for acute exposures to HAP with the 
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potential to cause non-cancer health effects, and an evaluation 

of the potential for adverse environmental effects. The risk 

assessments consisted of 7 primary steps, as discussed below. 

The docket for this rulemaking contains the following 

documents which provide more information on the risk assessment 

inputs and models: Draft Residual Risk Assessment for the Wood 

Furniture Manufacturing Operations Source Category, and Draft 

Residual Risk Assessment for the Shipbuilding and Ship Repair 

Operations Source Category. 

1. Establishing the Nature and Magnitude of Actual Emissions 

and Identifying the Emissions Release Characteristics. 

For the Shipbuilding and Ship Repair (Surface Coating) 

Operations source category, we compiled preliminary datasets 

using readily-available information, reviewed the data, and made 

changes where necessary, and shared these data with the public 

via an ANPRM. 72 FR 29287, March 29, 2007. The preliminary 

dataset was based on data in the 2002 National Emissions 

Inventory (NEI) Final Inventory, Version 1 (made publicly 

available on February 26, 2006).4 The preliminary dataset was 

updated with information received in response to the ANPRM; data 

 

4 The NEI is a database that contains information about sources that emit 

criteria air pollutants and their precursors, and HAP. The database includes 

estimates of annual air pollutant emissions from point, non-point, and mobile 

sources in the 50 States, the District of Columbia, Puerto Rico, and the 

Virgin Islands. The EPA collects this information and releases an updated 

version of the NEI database every 3 years. 
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from the 2005 NEI, when that data became available; and 

additional data gathered by EPA. The updated dataset contains 

85 facilities and was used to conduct the risk assessments and 

other analyses that form the basis for the proposed actions for 

the Shipbuilding and Ship Repair (Surface Coating) Operations 

source category. For the Wood Furniture Manufacturing 

Operations source category, we compiled preliminary datasets 

using the best data available, reviewed the data, and made 

changes where necessary. For this source category, we compiled 

the preliminary datasets using data in the 2005 NEI. After 

incorporation of changes to the dataset based on additional 

information gathered by EPA, an updated dataset was created. 

This updated dataset contains 385 facilities and was used to 

conduct the risk assessments and other analyses that form the 

basis for the proposed actions for the Wood Furniture 

Manufacturing Operations source category. 

2. Establishing the Relationship Between Actual Emissions and 

MACT-Allowable Emissions Levels. 

The available emissions data in the NEI and from other 

sources typically represent the estimates of mass of emissions 

actually emitted during the specified annual time period. These 

“actual” emission levels are often lower than the emission 

levels that a facility might be allowed to emit and still comply 

with the MACT standards. The emissions level allowed to be 
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emitted by the MACT standards is referred to as the “MACTallowable” emissions level. This represents the highest 

emissions level that could be emitted by the facility without 

violating the MACT standards. 

We discussed the use of both MACT-allowable and actual 

emissions in the final Coke Oven Batteries residual risk rule 

(70 FR 19998–19999, April 15, 2005) and in the proposed and 

final Hazardous Organic NESHAP (HON) residual risk rules (71 FR 

34428, June 14, 2006, and 71 FR 76609, December 21, 2006, 

respectively). In those previous actions, we noted that 

assessing the risks at the MACT-allowable level is inherently 

reasonable since these risks reflect the maximum level sources 

could emit and still comply with national emission standards. 

But we also explained that it is reasonable to consider actual 

emissions, where such data are available, in both steps of the 

risk analysis, in accordance with the Benzene NESHAP. (54 FR 

38044, September 14, 1989.) It is reasonable to consider actual 

emissions because sources typically seek to perform better than 

required by emission standards to provide an operational cushion 

to accommodate the variability in manufacturing processes and 

control device performance. 

As described above, the actual emissions data were compiled 

based on the NEI, information gathered from companies, 

individual facilities, industry trade associations, states, and 
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Page 37 of 176 

information received in response to the ANPRM. To estimate 

emissions at the MACT-allowable level, we developed a ratio of 

MACT-allowable to actual emissions for each emissions source 

type in each source category, based on the level of control 

required by the MACT standards compared to the level of reported 

actual emissions and available information on the level of 

control achieved by the emissions controls in use. For example, 

if there was information to suggest several facilities in the 

Shipbuilding and Ship Repair (surface coating) Operations source 

category were using coatings that contain only 1 kilogram of 

volatile HAP compounds per kilogram of coating solids (kg 

VOHAP/kg solids) while the MACT standards required coatings to 

contain no more than 2 kg VOHAP/kg solids, we would estimate 

that MACT-allowable emissions from emission points using these 

coatings could be as much as 2 times higher (VOHAP content of 2 

kg/kg solids allowed compared with VOHAP content of 1 kg/kg 

solids actually used), and the ratio of MACT-allowable to actual 

would be 2:1 for the emission points using these coatings at the 

facilities in this source category. After developing these 

ratios for each emission point type in each source category, we 

next applied these ratios on a facility-by-facility basis to the 

maximum chronic risk estimates from the inhalation risk 

assessment to obtain facility-specific maximum risk estimates 

based on MACT-allowable emissions. The estimates of MACT-
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allowable emissions for the Wood Furniture Manufacturing 

Operations and Shipbuilding and Ship Repair (Surface Coating) 

Operations source categories are described in section V of this 

preamble. 

3. Conducting Dispersion Modeling, Determining Inhalation 

Exposures, and Estimating Individual and Population Inhalation 

Risks. 

Both long-term and short-term inhalation exposure 

concentrations and health risks from each of the source 

categories addressed in this proposal were estimated using the 

HEM (Community and Sector HEM–3 version 1.1.0). The HEM–3 

performs three of the primary risk assessment activities listed 

above: (1) conducting dispersion modeling to estimate the 

concentrations of HAP in ambient air, (2) estimating long-term 

and short-term inhalation exposures to individuals residing 

within 50 km of the modeled sources, and (3) estimating 

individual and population-level inhalation risks using the 

exposure estimates and quantitative dose-response information. 

The dispersion model used by HEM–3 is AERMOD, which is one 

of EPA’s preferred models for assessing pollutant concentrations 

from industrial facilities.5 To perform the dispersion modeling 

and to develop the preliminary risk estimates, HEM–3 draws on 

 

5

 U.S. EPA. Revision to the Guideline on Air Quality Models: Adoption 

of a Preferred General Purpose (Flat and Complex Terrain) Dispersion 

Model and Other Revisions (70 FR 68218, November 9, 2005). 
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three data libraries. The first is a library of meteorological 

data, which is used for dispersion calculations. This library 

includes 1 year of hourly surface and upper air observations for 

130 meteorological stations, selected to provide coverage of the 

United States and Puerto Rico. A second library of United 

States Census Bureau census block6 internal point locations and 

populations provides the basis of human exposure calculations 

(Census, 2000). In addition, for each census block, the census 

library includes the elevation and controlling hill height, 

which are also used in dispersion calculations. A third library 

of pollutant unit risk factors and other health benchmarks is 

used to estimate health risks. These risk factors and health 

benchmarks are the latest values recommended by EPA for HAP and 

other toxic air pollutants. These values are available at 

http://www.epa.gov/ttn/atw/toxsource/summary.html and are 

discussed in more detail later in this section. 

In developing the risk assessment for chronic exposures, we 

used the estimated annual average ambient air concentration of 

each of the HAP emitted by each source for which we have 

emissions data in the source category. The air concentrations 

at each nearby census block centroid were used as a surrogate 

for the chronic inhalation exposure concentration for all the 

 

6

 A census block is generally the smallest geographic area for which 

census statistics are tabulated. 
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people who reside in that census block. We calculated the MIR 

for each facility as the cancer risk associated with a lifetime 

(70-year period) of exposure to the maximum concentration at the 

centroid of an inhabited census block. Individual cancer risks 

were calculated by multiplying the estimated lifetime exposure 

to the ambient concentration of each of the HAP (in micrograms 

per cubic meter) by its URE, which is an upper bound estimate of 

an individual’s probability of contracting cancer over a 

lifetime of exposure to a concentration of 1 microgram of the 

pollutant per cubic meter of air. For residual risk 

assessments, we generally use URE values from EPA’s IRIS. For 

carcinogenic pollutants without EPA IRIS values, we look to 

other reputable sources of cancer dose-response values, often 

using CalEPA URE values, where available. In cases where new, 

scientifically credible dose response values have been developed 

in a manner consistent with EPA guidelines and have undergone a 

peer review process similar to that used by EPA, we may use such 

dose-response values in place of, or in addition to, other 

values, if appropriate. 

We note here that 1 carcinogenic HAP with a mutagenic mode 

of action, POM is emitted by some of the facilities in these two 

categories.7 For this compound,8 the age-dependent adjustment 

7

 U.S. EPA, 2005. Performing risk assessments that include carcinogens 

described in the Supplemental Guidance as having a mutagenic mode of 
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factor (ADAF) described in EPA’s Supplemental Guidance for 

Assessing Susceptibility from Early-Life Exposure to Carcinogens9

were applied. This adjustment has the effect of increasing the 

estimated lifetime risks for this pollutant by a factor of 1.6. 

In addition, although only a small fraction of the total POM 

emissions were not reported as individual compounds, EPA 

expresses carcinogenic potency for compounds in this group in 

terms of benzo[a]pyrene equivalence, based on evidence that 

carcinogenic POM have the same mutagenic mechanism of action as 

does benzo[a]pyrene. For this reason, EPA’s Science Policy 

Council10 recommends applying the Supplemental Guidance to all 

carcinogenic polycyclic aromatic hydrocarbons for which risk 

estimates are based on relative potency. Accordingly, we have 

applied the ADAF to all unspeciated POM mixtures. 

 Incremental individual lifetime cancer risks associated 

with emissions from the source category were estimated as the 

sum of the risks for each of the carcinogenic HAP (including 

 

action. Science Policy Council Cancer Guidelines Implementation Work

Group Communication II: Memo from W.H. Farland, dated October 4, 

2005. 

8

 See the Risk Assessment for Source Categories document available in 

the docket for a list of HAP with a mutagenic mode of action. 

9

 U.S. EPA, 2005. Supplemental Guidance for Assessing Early-Life 

Exposure to Carcinogens. EPA/630/R-03/003F. 

http://www.epa.gov/ttn/atw/childrens_supplement_final.pdf. 10 U.S. EPA, 2006. Science Policy Council Cancer Guidelines 

Implementation Workgroup Communication II: Memo from W.H. Farland, 

dated June 14, 2006. 
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those classified as carcinogenic to humans, likely to be 

carcinogenic to humans, and suggestive evidence of carcinogenic 

potential11) emitted by the modeled source. Cancer incidence and 

the distribution of individual cancer risks for the population 

within 50 km of any source were also estimated for the source 

category as part of these assessments by summing individual 

risks. A distance of 50 km is consistent with both the analysis 

supporting the 1989 Benzene NESHAP (54 FR 38044) and the 

limitations of Gaussian dispersion models, including AERMOD. 

To assess risk of non-cancer health effects from chronic 

exposures, we summed the HQ for each of the HAP that affects a 

common target organ system to obtain the HI for that target 

organ system (or target organ-specific HI, TOSHI). The HQ is 

the estimated exposure divided by the chronic reference level, 

which is either the EPA RfC, defined as “an estimate (with 

uncertainty spanning perhaps an order of magnitude) of a 

continuous inhalation exposure to the human population 

(including sensitive subgroups) that is likely to be without an 

11 These classifications also coincide with the terms "known 

carcinogen, probable carcinogen, and possible carcinogen," 

respectively, which are the terms advocated in the EPA's previous 

Guidelines for Carcinogen Risk Assessment, published in 1986 (51 FR 

33992, September 24, 1986). Summing the risks of these individual 

compounds to obtain the cumulative cancer risks is an approach that 

was recommended by the EPA's SAB in their 2002 peer review of EPA's 

NATA entitled, NATA - Evaluating the National-scale Air Toxics 

Assessment 1996 Data -- an SAB Advisory, available at: 

http://yosemite.epa.gov/sab/sabproduct.nsf/214C6E915BB04E14852570CA007

A682C/$File/ecadv02001.pdf. 
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appreciable risk of deleterious effects during a lifetime,” or, 

in cases where an RfC from EPA’s IRIS data base is not 

available, EPA will utilize the following prioritized sources 

for our chronic dose-response values: 1) the US Agency for Toxic 

Substances and Disease Registry (ATSDR) minimum risk level (MRL) 

is defined as “an estimate of daily human exposure to a 

substance that is likely to be without an appreciable risk of 

adverse effects (other than cancer) over a specified duration of 

exposure”; 2) the CalEPA Chronic REL, defined as “the 

concentration level at or below which no adverse health effects 

are anticipated for a specified exposure duration;” and 3) as 

noted above, in cases where scientifically credible doseresponse values have been developed in a manner consistent with 

EPA guidelines and have undergone a peer review process similar 

to that used by EPA, we may use those dose-response values in 

place of, or in concert with other values. 

Screening estimates of acute exposures and risks were also 

evaluated for each of the HAP at the point of highest off-site 

exposure for each facility (i.e., not just the census block 

centroids) assuming that a person is located at this spot at a 

time when both the peak (hourly) emission rate and hourly 

dispersion conditions (1991 calendar year data) occur. In each 

case, acute HQ values were calculated using best available, 

short-term dose-response values. These acute dose-response 
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values include acute REL, AEGL, and ERPG for 1-hour exposure 

durations. As discussed below, we used conservative assumptions 

for emission rates, meteorology, and exposure location for our 

acute analysis. 

As described in the CalEPA’s Air Toxics Hot Spots Program 

Risk Assessment Guidelines, Part I, The Determination of Acute 

Reference Exposure Levels for Airborne Toxicants, an acute REL 

value (http://www.oehha.ca.gov/air/pdf/acuterel.pdf) is defined 

as “the concentration level at or below which no adverse health 

effects are anticipated for a specified exposure duration.” 

Acute REL values are based on the most sensitive, relevant, 

adverse health effect reported in the medical and toxicological 

literature. Acute REL values are designed to protect the most 

sensitive individuals in the population by the inclusion of 

margins of safety. Since margins of safety are incorporated to 

address data gaps and uncertainties, exceeding the acute REL 

does not automatically indicate an adverse health impact. 

Acute Exposure Guideline Levels values were derived in 

response to recommendations from the NRC. As described in 

Standing Operating Procedures (SOP) of the National Advisory 

Committee on Acute Exposure Guideline Levels for Hazardous 

Substances (http://www.epa.gov/opptintr/aegl/pubs/sop.pdf),12

 

12 National Academies of Science, 2001. Standing Operating Procedures 

for Developing Acute Exposure Levels for Hazardous Chemicals, page 2. 
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“the NRC’s previous name for acute exposure levels—community 

emergency exposure levels (CEEL)— was replaced by the term AEGL 

to reflect the broad application of these values to planning, 

response, and prevention in the community, the workplace, 

transportation, the military, and the remediation of Superfund 

sites.” This document also states that AEGL values “represent 

threshold exposure limits for the general public and are 

applicable to emergency exposures ranging from 10 minutes to 8 

hours.” The document lays out the purpose and objectives of 

AEGL by stating (page 21) that “the primary purpose of the AEGL 

program and the NAC/AEGL Committee is to develop guideline 

levels for once-in-a-lifetime, short-term exposures to airborne 

concentrations of acutely toxic, high-priority chemicals.” In 

detailing the intended application of AEGL values, the document 

states (page 31) that ”[i]t is anticipated that the AEGL values 

will be used for regulatory and nonregulatory purposes by United 

States Federal and State agencies, and possibly the 

international community in conjunction with chemical emergency 

response, planning, and prevention programs. More specifically, 

the AEGL values will be used for conducting various risk 

assessments to aid in the development of emergency preparedness 

and prevention plans, as well as real-time emergency response 

actions, for accidental chemical releases at fixed facilities 

and from transport carriers.” 
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The AEGL–1 value is then specifically defined as “the 

airborne concentration of a substance above which it is 

predicted that the general population, including susceptible 

individuals, could experience notable discomfort, irritation, or 

certain asymptomatic nonsensory effects. However, the effects 

are not disabling and are transient and reversible upon 

cessation of exposure.” The document also notes (page 3) that, 

“Airborne concentrations below AEGL–1 represent exposure levels 

that can produce mild and progressively increasing but transient 

and nondisabling odor, taste, and sensory irritation or certain 

asymptomatic, nonsensory effects.” Similarly, the document 

defines AEGL–2 values as “the airborne concentration (expressed 

as ppm or mg/m3

) of a substance above which it is predicted that 

the general population, including susceptible individuals, could 

experience irreversible or other serious, long-lasting adverse 

health effects or an impaired ability to escape.” 

Emergency Response Planning Guidelines values are derived 

for use in emergency response, as described in the American 

Industrial Hygiene Association’s document entitled, Emergency 

Response Planning Guidelines (ERPG) Procedures and 

Responsibilities

(http://www.aiha.org/1documents/committees/ERPSOPs2006.pdf), 

which states that, “Emergency Response Planning Guidelines were 

developed for emergency planning and are intended as health 
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based guideline concentrations for single exposures to 

chemicals.”13 The ERPG–1 value is defined as “the maximum 

airborne concentration below which it is believed that nearly 

all individuals could be exposed for up to 1 hour without 

experiencing other than mild transient adverse health effects or 

without perceiving a clearly defined, objectionable odor.” 

Similarly, the ERPG–2 value is defined as “the maximum airborne 

concentration below which it is believed that nearly all 

individuals could be exposed for up to 1 hour without 

experiencing or developing irreversible or other serious health 

effects or symptoms which could impair an individual’s ability 

to take protective action.” 

As can be seen from the definitions above, the AEGL and 

ERPG values include the similarly-defined severity levels 1 and 

2. For many chemicals, a severity level 1 value AEGL or ERPG 

has not been developed; in these instances, higher severity 

level AEGL–2 or ERPG–2 values are compared to our modeled 

exposure levels to screen for potential acute concerns. 

Acute REL values for 1-hour exposure durations are 

typically lower than their corresponding AEGL–1 and ERPG–1 

values. Even though their definitions are slightly different, 

AEGL–1 values are often the same as the corresponding ERPG–1 

13 ERP Committee Procedures and Responsibilities. 1 November, 2006. 

American Industrial Hygiene Association. 
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values, and AEGL–2 values are often equal to ERPG–2 values. 

Maximum HQ values from our acute screening risk assessments 

typically result when basing them on the acute REL value for a 

particular pollutant. In cases where our maximum acute HQ value 

exceeds 1, we also report the HQ value based on the next highest 

acute dose-response value (usually the AEGL–1 and/or the ERPG–1 

value). 

To develop screening estimates of acute exposures, we 

developed estimates of maximum hourly emission rates by 

multiplying the average actual annual hourly emission rates by a 

factor to cover routinely variable emissions. We chose the 

factor to use based on process knowledge and engineering 

judgment and with awareness of a Texas study of short-term 

emissions variability, which showed that most peak emission 

events, in a heavily-industrialized 4-county area (Harris, 

Galveston, Chambers, and Brazoria Counties, Texas), were less 

than twice the annual average hourly emission rate, and the 

highest peak emission event was 8.5 times the annual average 

hourly emission rate.14 This analysis is provided in Appendix 4 

of the Draft Residual Risk Assessment for Wood Furniture 

Manufacturing Operations, and Draft Residual Risk Assessment for 

Shipbuilding and Ship Repair (Surface Coating) Operations which 

 

14 See http://www.tceq.state.tx.us/compliance/field_ops/eer/index.html 

or docket to access the source of these data. 
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are available in the docket for this action. Considering this 

analysis, unless specific process knowledge or data are 

available to provide an alternate value, we apply a conservative 

screening multiplication factor of 10 to the average annual 

hourly emission rate in these acute exposure screening 

assessments. For the Shipbuilding and Ship Repair (Surface 

Coating) Operations source category, this factor of 10 was 

applied. For the Wood Furniture Manufacturing Operations source 

category, a factor of 4 was applied, based on information 

provided by industry. More information supporting the use of 

this factor for Wood Furniture Manufacturing Operations is 

presented in the memorandum, Acute Effects Factor for Wood 

Furniture Manufacturing Operations, dated October 23, 2010, 

which is available in the docket for this action. We solicit 

comment on this factor and the data used to calculate it. 

In cases where all acute HQ values from the screening step 

were less than or equal to 1, acute impacts were deemed 

negligible and no further analysis was performed. In the cases 

where an acute HQ from the screening step was greater than 1, 

additional site-specific data were considered to develop a more 

refined estimate of the potential for acute impacts of concern. 

The data refinements employed for these source categories 

consisted of using the site-specific facility layout to 

distinguish facility property from an area where the public 
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could be exposed. These refinements are discussed in the draft 

risk assessment documents, which are available in the docket, 

for each of these source categories. Ideally, we would prefer 

to have continuous measurements over time to see how the 

emissions vary by each hour over an entire year. Having a 

frequency distribution of hourly emission rates over a year 

would allow us to perform a probabilistic analysis to estimate 

potential threshold exceedances and their frequency of 

occurrence. Such an evaluation could include a more complete 

statistical treatment of the key parameters and elements adopted 

in this screening analysis. However, we recognize that having 

this level of data is rare, hence our use of the multiplier 

approach. 

4. Conducting Multi-pathway Exposure and Risk Modeling. 

The potential for significant human health risks due to 

exposures via routes other than inhalation (i.e., multi-pathway 

exposures) and the potential for adverse environmental impacts 

were evaluated in a three-step process. In the first step, we 

determined whether any facilities emitted any HAP known to be 

persistent and bio-accumulative in the environment (PB-HAP). 

There are 14 PB-HAP compounds or compound classes identified for 

this screening in EPA’s Air Toxics Risk Assessment Library

(available at http://www.epa.gov/ttn/fera/risk_atra_vol1.html). 

They are cadmium compounds, chlordane, chlorinated 
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dibenzodioxins and furans, dichlorodiphenyldichloroethylene, 

heptachlor, hexachlorobenzene, hexachlorocyclohexane, lead 

compounds, mercury compounds, methoxychlor, polychlorinated 

biphenyls, POM, toxaphene, and trifluralin. 

Since 1 or more of these PB-HAP were emitted by facilities 

in both source categories, we proceeded to the second step of 

the evaluation. In this step we determined whether the 

facility-specific emission rates of each of the emitted PB–HAP 

were large enough to create the potential for significant noninhalation risks. To facilitate this step, we have developed 

emission rate thresholds for each PB–HAP using a hypothetical 

screening exposure scenario developed for use in conjunction 

with the EPA’s TRIM.FaTE model. The hypothetical screening 

scenario was subjected to a sensitivity analysis to ensure that 

its key design parameters were established such that 

environmental media concentrations were not underestimated 

(i.e., to minimize the occurrence of false negatives, or results 

that suggest that risks might be acceptable when, in fact, 

actual risks are high), and to also minimize the occurrence of 

false positives for human health endpoints. We call this 

application of the TRIM.FaTE model TRIM-Screen. The facilityspecific emission rates of each of the PB–HAP in each source 

category were compared to the emission threshold values for each 

of the PB–HAP identified in the source category datasets. 
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For all of the facilities in the source categories 

addressed in this proposal, all of the PB-HAP emission rates 

were less than the emission threshold values. As a result of 

this, multi-pathway exposures and environmental risks were 

deemed negligible and no further analysis was performed. If the 

emission rates of the PB-HAP had been above the emission 

threshold values, the source categories would have been further 

evaluated for potential non-inhalation risks and adverse 

environmental effects in a third step through site-specific 

refined assessments using EPA’s TRIM.FaTE model. 

For further information on the multi-pathway analysis 

approach, see the residual risk documentation as referenced in 

section IV.A of this preamble. 

5. Assessing Risks Considering Emissions Control Options. 

 In addition to assessing baseline inhalation risks and 

screening for potential multi-pathway risks, where appropriate, 

we also estimated risks considering the potential emission 

reductions that would be achieved by the particular control 

options under consideration. In these cases, the expected 

emissions reductions were applied to the specific HAP and 

emissions sources in the source category dataset to develop 

corresponding estimates of risk reductions. 

6. Conducting Other Risk-Related Analyses, Including FacilityWide Assessments and Demographic Analyses. 
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a. Facility-Wide Risk. 

To put the source category risks in context, we also 

examined the risks from the entire “facility,” where the 

facility includes all HAP-emitting operations within a 

contiguous area and under common control. In other words, for 

each facility that includes 1 or more sources from 1 of the 

source categories under review, we examined the HAP emissions 

not only from the source category of interest, but also 

emissions of HAP from all other emission sources at the 

facility. The emissions data for generating these “facilitywide” risks were obtained from the 2005 NATA emissions inventory 

(available at http://www.epa.gov/ttn/atw/nata2005). We 

estimated the risks due to the inhalation of HAP that are 

emitted “facility-wide” for the populations residing within 50 

km of each facility, consistent with the methods used for the 

source category analysis described above. For these facilitywide risk analyses, the modeled source category risks were 

compared to the facility-wide risks to determine the portion of 

facility-wide risks that could be attributed to the source 

categories addressed in this proposal. We specifically examined 

the facilities associated with the highest estimates of risk and 

determined the percentage of that risk attributable to the 

source category of interest. The risk documentation available 

through the docket for this action provides all the facility-
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wide risks and the percentage of source category contribution 

for all source categories assessed. 

The methodology and the results of the facility-wide 

analyses for each source category are included in the residual 

risk documentation as referenced in section IV.A of this 

preamble, which is available in the docket for this action. 

b. Demographic Analysis. 

To examine the potential for any environmental justice (EJ) 

issues that might be associated with each source category, we 

evaluated the distributions of HAP-related cancer and non-cancer 

risks across different social, demographic, and economic groups 

within the populations living near the facilities where these 

source categories are located. The development of demographic 

analyses to inform the consideration of EJ issues in EPA 

rulemakings is an evolving science. The EPA offers the 

demographic analyses in this rulemaking to inform the 

consideration of potential EJ issues, and invites public comment 

on the approaches used and the interpretations made from the 

results, with the hope that this will support the refinement and 

improve the utility of such analyses for future rulemakings. 

For the demographic analyses, we focus on the populations 

within 50 km of any facility estimated to have exposures to HAP 

which result in cancer risks of 1-in-1 million or greater, or 

non-cancer HI of 1 or greater (based on the emissions of the 
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source category or the facility, respectively). We examine the 

distributions of those risks across various demographic groups, 

comparing the percentages of particular demographic groups to 

the total number of people in those demographic groups 

nationwide. The results, including other risk metrics, such as 

average risks for the exposed populations, are documented in 

source category-specific technical reports in the docket for 

both source categories covered in this proposal.15

The basis for the risk values used in these analyses were 

the modeling results based on actual emissions levels obtained 

from the HEM-3 model described above. The risk values for each 

census block were linked to a database of information from the 

2000 Decennial census that includes data on race and ethnicity, 

age distributions, poverty status, household incomes, and 

education level. The Census Department Landview®

 database was 

the source of the data on race and ethnicity, and the data on 

age distributions, poverty status, household incomes, and 

education level was obtained from the 2000 Census of Population 

and Housing Summary File 3 (SF3) Long Form. While race and 

ethnicity census data are available at the census block level, 

the age and income census data are only available at the census 

15 For example, the report pertaining to the Shipbuilding and Ship 

Repair (Surface Coating) Operations source category is entitled Risk 

and Technology Review – Analysis of Socio-Economic Factors for 

Populations Living Near Shipbuilding and Ship Repair (Surface Coating) 

Operations. 
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block group level (which includes an average of 26 blocks or an 

average of 1,350 people). Where census data are available at 

the block group level but not the block level, we assumed that 

all census blocks within the block group have the same 

distribution of ages and incomes as the block group. 

For each source category, we focused on those census blocks 

where source category risk results show estimated lifetime 

inhalation cancer risks above 1-in-1 million or chronic noncancer indices above 1, and determined the relative percentage 

of different racial and ethnic groups, different age groups, 

adults with and without a high school diploma, people living in 

households below the national median income, and for people 

living below the poverty line within those census blocks. The 

specific census population categories studied include: 

• Total population 

• White 

• African American (or Black) 

• Native Americans 

• Other races and multiracial 

• Hispanic or Latino 

• Children 18 years of age and under 

• Adults 19 to 64 years of age 

• Adults 65 years of age and over 

• Adults without a high school diploma 
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• Households earning under the national median income 

• People living below the poverty line 

It should be noted that these categories overlap in some 

instances, resulting in some populations being counted in more 

than 1 category (e.g., other races and multiracial and 

Hispanic). In addition, while not a specific census population 

category, we also examined risks to “Minorities,” a 

classification which is defined for these purposes as all race 

population categories except white. 

For further information about risks to the populations 

located near the facilities in these source categories, we also 

evaluated the estimated distribution of inhalation cancer and 

chronic non-cancer risks associated with the HAP emissions from 

all the emissions sources at the facility (i.e., facility-wide). 

This analysis used the facility-wide RTR modeling results and 

the census data described above. 

The methodology and the results of the demographic analyses 

for each source category are included in a source categoryspecific technical report for each of the categories, which are 

available in the docket for this action. 

7. Considering Uncertainties in Risk Assessment.

Uncertainty and the potential for bias are inherent in all 

risk assessments, including those performed for the source 

categories addressed in this proposal. Although uncertainty 
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exists, we believe the approach that we took, which used 

conservative tools and assumptions, ensures that our decisions 

are health-protective. A brief discussion of the uncertainties 

in the emissions datasets, dispersion modeling, inhalation 

exposure estimates, and dose-response relationships follows 

below. A more thorough discussion of these uncertainties is 

included in the risk assessment documentation (referenced 

earlier) available in the docket for this action. 

a. Uncertainties in the Emissions Datasets. 

Although the development of the RTR datasets involved 

quality assurance/quality control processes, the accuracy of 

emissions values will vary depending on the source of the data, 

the degree to which data are incomplete or missing, the degree 

to which assumptions made to complete the datasets are 

inaccurate, errors in estimating emissions values, and other 

factors. The emission estimates considered in this analysis 

generally are annual totals that do not reflect short-term 

fluctuations during the course of a year or variations from year 

to year. Additionally, we are aware of the potential for 

emissions from curing and gluing of parts in one or both of 

these source categories which may not be reflected in our 

emissions inventory. For example, there are no approved methods 

to estimate curing emissions, but we believe formaldehyde or 

other aldehydes could be formed during the chemical process of 
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curing of some coatings formulations. This uncertainty could 

potentially bias the risk estimates low; however, the extent of 

this bias is unknown. 

The estimates of peak hourly emission rates for the acute 

effects screening assessment were based on multiplication 

factors applied to the average annual hourly emission rates (the 

default factor of 10 was used for Shipbuilding and Ship Repair 

(Surface Coating) Operations and a factor of 4 was used for Wood 

Furniture Manufacturing Operations), which are intended to 

account for emission fluctuations due to normal facility 

operations. Additionally, although we believe that we have data 

for most facilities in these two source categories in our RTR 

dataset, our dataset may not include data for all existing 

facilities. Moreover, there are significant uncertainties with 

regard to the identification of sources as major or area in the 

NEI for these source categories. While we published an ANPRM 

for Shipbuilding and Ship Repair (Surface Coating) and received 

additional data, we did not publish an ANPRM for Wood Furniture 

Manufacturing. 

b. Uncertainties in Dispersion Modeling. 

While the analysis employed EPA’s recommended regulatory 

dispersion model, AERMOD, we recognize that there is uncertainty 

in ambient concentration estimates associated with any model, 

including AERMOD. In circumstances where we had to choose 
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between various model options, where possible, model options 

(e.g., rural/urban, plume depletion, chemistry) were selected to 

provide an overestimate of ambient air concentrations of the HAP 

rather than underestimates. However, because of practicality 

and data limitation reasons, some factors (e.g., meteorology, 

building downwash) have the potential in some situations to 

overestimate or underestimate ambient impacts. For example, 

meteorological data were taken from a single year (1991), and 

facility locations can be a significant distance from the site 

where these data were taken. Despite these uncertainties, we 

believe that at off-site locations and census block centroids, 

the approach considered in the dispersion modeling analysis 

should generally yield overestimates of ambient HAP 

concentrations. 

c. Uncertainties in Inhalation Exposure. 

The effects of human mobility on exposures were not 

included in the assessment. Specifically, short-term mobility 

and long-term mobility between census blocks in the modeling 

domain were not considered.16 As a result, this simplification 

will likely bias the assessment toward overestimating the 

highest exposures. In addition, the assessment predicted the 

chronic exposures at the centroid of each populated census block 

 

16 Short-term mobility is movement from one microenvironment to another 

over the course of hours or days. Long-term mobility is movement from 

one residence to another over the course of a lifetime. 
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as surrogates for the exposure concentrations for all people 

living in that block. Using the census block centroid to 

predict chronic exposures tends to over-predict exposures for 

people in the census block who live further from the facility, 

and under-predict exposures for people in the census block who 

live closer to the facility. Thus, using the census block 

centroid to predict chronic exposures may lead to a potential 

understatement or overstatement of the true maximum impact, but 

is an unbiased estimate of average risk and incidence. 

The assessments evaluate the cancer inhalation risks 

associated with pollutant exposures over a 70-year period, which 

is the assumed lifetime of an individual. In reality, both the 

length of time that modeled emissions sources at facilities 

actually operate (i.e., more or less than 70 years), and the 

domestic growth or decline of the modeled industry (i.e., the 

increase or decrease in the number or size of United States 

facilities), will influence the risks posed by a given source 

category. Depending on the characteristics of the industry, 

these factors will, in most cases, result in an overestimate 

both in individual risk levels and in the total estimated number 

of cancer cases. However, in rare cases, where a facility 

maintains or increases its emission levels beyond 70 years, 

residents live beyond 70 years at the same location, and the 

residents spend most of their days at that location, then the 
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risks could potentially be underestimated. Annual cancer 

incidence estimates from exposures to emissions from these 

sources would not be affected by uncertainty in the length of 

time emissions sources operate. 

The exposure estimates used in these analyses assume 

chronic exposures to ambient levels of pollutants. Because most 

people spend the majority of their time indoors, actual 

exposures may not be as high, depending on the characteristics 

of the pollutants modeled. For many of the HAP, indoor levels 

are roughly equivalent to ambient levels, but for very reactive 

pollutants or larger particles, these levels are typically 

lower. This factor has the potential to result in an 

overstatement of 25 to 30 percent of exposures.17 

In addition to the uncertainties highlighted above, there 

are several factors specific to the acute exposure assessment 

that should be highlighted. The accuracy of an acute inhalation 

exposure assessment depends on the simultaneous occurrence of 

independent factors that may vary greatly, such as hourly 

emissions rates, meteorology, and human activity patterns. In 

this assessment, we assume that individuals remain for 1 hour at 

the point of maximum ambient concentration as determined by the 

co-occurrence of peak emissions and worst-case meteorological 

17 U.S. EPA. National-Scale Air Toxics Assessment for 1996. (EPA 

453/R–01–003; January 2001; page 85.) 
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conditions. These assumptions would tend to overestimate actual 

exposures since it is unlikely that a person would be located at 

the point of maximum exposure during the time of worst-case 

impact. 

d. Uncertainties in Dose-Response Relationships. 

There are uncertainties inherent in the development of the 

dose-response values used in our risk assessments for cancer 

effects from chronic exposures and non-cancer effects from both 

chronic and acute exposures. Some uncertainties may be 

considered quantitatively, and others generally are expressed in 

qualitative terms. We note as a preface to this discussion a 

point on dose-response uncertainty that is brought out in EPA’s 

2005 Cancer Guidelines; namely, that “the primary goal of EPA 

actions is protection of human health; accordingly, as an Agency 

policy, risk assessment procedures, including default options 

that are used in the absence of scientific data to the contrary, 

should be health protective.” (EPA 2005 Cancer Guidelines, 

pages 1–7.) This is the approach followed here as summarized in 

the next several paragraphs. A complete detailed discussion of 

uncertainties and variabilities in dose-response relationships 

is given in the residual risk documentation as referenced in 

section IV.A of this preamble, which is available in the docket 

for this action. 
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Cancer URE values used in our risk assessments are those 

that have been developed to generally provide an upper bound 

estimate of risk. That is, they represent a “plausible upper 

limit to the true value of a quantity” (although this is usually 

not a true statistical confidence limit).18 In some 

circumstances, the true risk could be as low as zero; however, 

in other circumstances the risk could also be greater.19 When 

developing an upper bound estimate of risk and to provide risk 

values that do not underestimate risk, health-protective default 

approaches are generally used. To err on the side of ensuring 

adequate health-protection, EPA typically uses the upper bound 

estimates rather than lower bound or central tendency estimates 

in our risk assessments, an approach that may have limitations 

for other uses (e.g., priority-setting or expected benefits 

analysis). 

Chronic non-cancer reference (RfC and RfD) values represent 

chronic exposure levels that are intended to be healthprotective levels. Specifically, these values provide an 

estimate (with uncertainty spanning perhaps an order of 

magnitude) of daily oral exposure (RfD) or of a continuous 

inhalation exposure (RfC) to the human population (including 

 

18 IRIS glossary (http://www.epa.gov/NCEA/iris/help_gloss.htm). 19 An exception to this is the URE for benzene, which is considered to 

cover a range of values, each end of which is considered to be equally 

plausible, and which is based on maximum likelihood estimates. 
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sensitive subgroups) that is likely to be without an appreciable 

risk of deleterious effects during a lifetime. To derive values 

that are intended to be “without appreciable risk,” the 

methodology relies upon an UF approach (U.S. EPA, 1993, 1994) 

which includes consideration of both uncertainty and 

variability. When there are gaps in the available information, 

UF are applied to derive reference values that are intended to 

protect against appreciable risk of deleterious effects. The UF 

are commonly default values,20 e.g., factors of 10 or 3, used in 

the absence of compound-specific data; where data are available, 

UF may also be developed using compound-specific information. 

When data are limited, more assumptions are needed and more UF 

are used. Thus, there may be a greater tendency to overestimate 

risk in the sense that further study might support development 

of reference values that are higher (i.e., less potent) because 

 

20 According to the NRC report, Science and Judgment in Risk Assessment

(NRC, 1994) “[Default] options are generic approaches, based on 

general scientific knowledge and policy judgment, that are applied to 

various elements of the risk assessment process when the correct 

scientific model is unknown or uncertain.” The 1983 NRC report, Risk 

Assessment in the Federal Government: Managing the Process, defined 

default option as “the option chosen on the basis of risk assessment 

policy that appears to be the best choice in the absence of data to 

the contrary” (NRC, 1983a, p. 63). Therefore, default options are not 

rules that bind the Agency; rather, the Agency may depart from them in 

evaluating the risks posed by a specific substance when it believes 

this to be appropriate. In keeping with EPA’s goal of protecting 

public health and the environment, default assumptions are used to 

ensure that risk to chemicals is not underestimated (although defaults 

are not intended to overtly overestimate risk). See EPA, 2004, An 

Examination of EPA Risk Assessment Principles and Practices, 

EPA/100/B–04/001 available at: 

http://www.epa.gov/osa/pdfs/ratf-final.pdf. 
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fewer default assumptions are needed. However, for some 

pollutants, it is possible that risks may be underestimated. 

While collectively termed “UF,” these factors account for a 

number of different quantitative considerations when using 

observed animal (usually rodent) or human toxicity data in the 

development of the RfC. The UF are intended to account for: 

(1) variation in susceptibility among the members of the human 

population (i.e., inter-individual variability); (2) uncertainty 

in extrapolating from experimental animal data to humans (i.e., 

interspecies differences); (3) uncertainty in extrapolating from 

data obtained in a study with less-than-lifetime exposure (i.e., 

extrapolating from sub-chronic to chronic exposure); (4) 

uncertainty in extrapolating the observed data to obtain an 

estimate of the exposure associated with no adverse effects; and 

(5) uncertainty when the database is incomplete or there are 

problems with the applicability of available studies. Many of 

the UF used to account for variability and uncertainty in the 

development of acute reference values are quite similar to those 

developed for chronic durations, but they more often use 

individual UF values that may be less than 10. Uncertainty 

factors are applied based on chemical-specific or health effectspecific information (e.g., simple irritation effects do not 

vary appreciably between human individuals, hence a value of 3 

is typically used), or based on the purpose for the reference 
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value (see the following paragraph). The UF applied in acute 

reference value derivation include: (1) Heterogeneity among 

humans; (2) uncertainty in extrapolating from animals to humans; 

(3) uncertainty in lowest observed adverse effect (exposure) 

level to no observed adverse effect (exposure) level 

adjustments; and (4) uncertainty in accounting for an incomplete 

database on toxic effects of potential concern. Additional 

adjustments are often applied to account for uncertainty in 

extrapolation from observations at 1 exposure duration (e.g., 4 

hours) to derive an acute reference value at another exposure 

duration (e.g., 1 hour). 

Not all acute reference values are developed for the same 

purpose, and care must be taken when interpreting the results of 

an acute assessment of human health effects relative to the 

reference value or values being exceeded. Where relevant to the 

estimated exposures, the lack of short-term dose-response values 

at different levels of severity should be factored into the risk 

characterization as potential uncertainties. 

Although every effort is made to identify peer-reviewed 

reference values for cancer and non-cancer effects for all 

pollutants emitted by the sources included in this assessment, 

some hazardous air pollutants continue to have no reference 

values for cancer or chronic non-cancer or acute effects. Since 

exposures to these pollutants cannot be included in a 
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quantitative risk estimate, an understatement of risk for these 

pollutants at environmental exposure levels is possible. For a 

group of compounds that are either unspeciated or do not have 

reference values for every individual compound (e.g., glycol 

ethers), we conservatively use the most protective reference 

value to estimate risk from individual compounds in the group of 

compounds. 

Additionally, chronic reference values for several of the 

compounds included in this assessment are currently under EPA 

IRIS review, and revised assessments may determine that these 

pollutants are more or less potent than the current value. We 

may re-evaluate residual risks for the final rulemaking if, as a 

result of these reviews, a dose-response metric changes enough 

to indicate that the risk assessment supporting this notice may 

significantly understate human health risk. 

e. Uncertainties in the Multi-Pathway and Environmental Effects 

Assessment. 

 We generally assume that when exposure levels are not 

anticipated to adversely affect human health, they also are not 

anticipated to adversely affect the environment. For each 

source category, we generally rely on the site-specific levels 

of PB-HAP emissions to determine whether a full assessment of 

the multi-pathway and environmental effects is necessary. 

Because site-specific PB-HAP emission levels were so far below 
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levels which would trigger a refined assessment of multi-pathway 

impacts, we are confident that these types of impacts are 

insignificant for these source categories. 

f. Uncertainties in the Facility-Wide Risk Assessment. 

Given that the same general analytical approach and the 

same models were used to generate facility-wide risk results as 

were used to generate the source category risk results, the same 

types of uncertainties discussed above for our source category 

risk assessments apply to the facility-wide risk assessments. 

Additionally, the degree of uncertainty associated with 

facility-wide emissions and risks is likely greater because we 

generally have not conducted a thorough engineering review of 

emissions data for source categories not currently undergoing an 

RTR review. 

g. Uncertainties in the Demographic Analysis. 

Our analysis of the distribution of risks across various 

demographic groups is subject to the typical uncertainties 

associated with census data (e.g., errors in filling out and 

transcribing census forms), as well as the additional 

uncertainties associated with the extrapolation of census-block 

group data (e.g., income level and education level) down to the 

census block level. 

B. How did we perform the technology review?
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 Our technology review is focused on the identification and 

evaluation of “developments in practices, processes, and control 

technologies.” If a review of available information identifies 

such developments, then we conduct an analysis of the technical 

feasibility of requiring the implementation of these 

developments, along with the impacts (costs, emission 

reductions, risk reductions, etc.). We then make a decision on 

whether it is necessary to amend the regulation to require these 

developments. 

Based on specific knowledge of each source category, we 

began by identifying known developments in practices, processes, 

and control technologies. For the purpose of this exercise, we 

considered any of the following to be a “development”: 

• Any add-on control technology or other equipment that was 

not identified and considered during MACT development; 

• Any improvements in add-on control technology or other 

equipment (that was identified and considered during MACT 

development) that could result in significant additional 

emission reduction; 

• Any work practice or operational procedure that was not 

identified and considered during MACT development; and 

• Any process change or pollution prevention alternative that 

could be broadly applied that was not identified and 

considered during MACT development. 
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In addition to looking back at practices, processes, or 

control technologies reviewed at the time we developed the MACT 

standards, we reviewed a variety of sources of data to aid in 

our evaluation of whether there were additional practices, 

processes, or controls to consider. One of these sources of 

data was subsequent air toxics rules. Since the promulgation of 

the MACT standards for the source categories addressed in this 

proposal, EPA has developed air toxics regulations for a number 

of additional source categories. We reviewed the regulatory 

requirements and/or technical analyses associated with these 

subsequent regulatory actions to identify any practices, 

processes, and control technologies considered in these efforts 

that could possibly be applied to emission sources in the source 

categories under this current RTR review. 

We also consulted EPA’s RACT/BACT/LAER Clearinghouse 

(RBLC). The terms "RACT," "BACT," and "LAER" are acronyms for 

different program requirements under the CAA provisions 

addressing the national ambient air quality standards. Control 

technologies, classified as RACT, BACT, or LAER apply to 

stationary sources depending on whether the sources are existing 

or new, and on the size, age, and location of the facility. 

Best Available Control Technology and LAER (and sometimes RACT) 

are determined on a case-by-case basis, usually by state or 

local permitting agencies. EPA established the RBLC to provide 
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a central database of air pollution technology information 

(including technologies required in source-specific permits) to 

promote the sharing of information among permitting agencies and 

to aid in identifying future possible control technology options 

that might apply broadly to numerous sources within a category 

or apply only on a source-by-source basis. The RBLC contains 

over 5,000 air pollution control permit determinations that can 

help identify appropriate technologies to mitigate many air 

pollutant emission streams. We searched this database to 

determine whether any practices, processes, or control 

technologies are included for the types of processes used for 

emission sources (e.g., spray booths) in the source categories 

under consideration in this proposal. 

We also requested information from industry regarding 

developments in practices, processes, or control technology. 

Finally, we reviewed other information sources, such as state or 

local permitting agency databases and industry-supported 

databases. 

V. Analyses Results and Proposed Decisions 

 This section of the preamble provides background 

information on the MACT standards and source categories, the 

results of our RTR for each source category, and our proposed 

decisions concerning the SSM provisions in each MACT standard. 
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A. What are the results and proposed decisions for the 

Shipbuilding and Ship Repair (Surface Coating) Operations source 

category?

1. Overview of the source category and MACT Standards. 

 The National Emission Standards for Shipbuilding and Ship 

Repair (Surface Coating) Operations were promulgated on December 

15, 1995 (60 FR 64330) and codified at 40 CFR part 63, subpart 

II. The Shipbuilding and Ship Repair (Surface Coating) 

Operations MACT standards (i.e., Shipbuilding MACT standards) 

apply to shipbuilding and ship repair operations at any facility 

that is a major source of HAP. We estimate that there are 

approximately 85 shipbuilding and ship repair facilities 

currently subject to the Shipbuilding MACT standards. 

 The shipbuilding and ship repair industry consists of 

establishments that build, repair, repaint, convert, and alter 

ships, which are marine or fresh-water vessels used for military 

or commercial operations. In general, activities and processes 

involved in ship repair and new ship construction are relatively 

similar. Operations include fabrication of basic components from 

raw materials, welding components and parts together, painting 

and repainting, overhauls, ship conversions, and other 

alterations. Nearly all shipyards that construct new ships also 

perform ship repairs. The source category covered by this MACT 
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standard only includes the surface coating operations that occur 

at these facilities during shipbuilding and ship repair. 

 Emissions of HAP from surface coating operations at 

shipbuilding and ship repair facilities result from the 

application of coatings and the use of cleaning solvents 

containing HAP during ship repair and shipbuilding operations. 

To reduce HAP emissions, the Shipbuilding MACT standards limit 

the coatings that can be used to those with as-applied VOHAP 

content less than or equal to the applicable level specified in 

Table 2 of the rule. Table 2 contains as-applied VOHAP content 

limits of a variety of marine surface coatings categories, 

including a general use category and 22 specialty coatings 

categories. The Shipbuilding MACT standards also specify work 

practice standards that minimize evaporative emissions and 

spills from the handling, transfer, and storage of VOHAPcontaining materials such as organic thinning solvents and paint 

wastes. 

2. What data were used in our risk analyses?

We initially created a preliminary dataset for the source 

category using data in the 2002 NEI Final Inventory, Version 1 

(made publicly available on February 26, 2006). We reviewed the 

NEI dataset and made changes where necessary to ensure that the 

proper facilities were included and that the proper processes 

were allocated to the Shipbuilding and Ship Repair (Surface 
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Coating) Operations source category. We also reviewed the 

emissions and other data to identify data anomalies that could 

affect risk estimates. On March 29, 2007, we published an ANPRM 

(72 FR 29287) for the express purpose of requesting comments and 

updates to this dataset, as well as to the datasets for the 

other source categories addressed in that ANPRM. Comments 

received in response to the ANPRM were reviewed and considered, 

and we made adjustments to the dataset where we concluded the 

comments supported such adjustment. Adjustments were also made 

to the dataset to reflect updates made to the data in the 2005 

NEI and to remove emissions from the dataset that were from 

sources that are not part of the Shipbuilding and Ship Repair 

(Surface Coating) Operations source category, as determined 

through further engineering review. Based on the data 

collection and review process, we developed model input files to 

be used in the risk analysis for 71 facilities. As mentioned 

previously, there are a total of approximately 85 facilities 

subject to the Shipbuilding MACT standards. Therefore, we 

developed model input files for about 84 percent of the total 

facilities. 

Nevertheless, after the adjustments described above were 

made to the dataset, approximately 40 facilities included in our 

list of 85 facilities still had some missing or incomplete HAP 

emissions data, based on NEI and EPA’s Toxics Release Inventory 
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searches. Thus, a HAP profile was developed to populate the 

Shipbuilding and Ship Repair (Surface Coating) Operations 

dataset with representative data for these 40 facilities, using 

several assumptions and decisions. For facilities that provided 

VOC emissions data, but did not provide HAP emissions data, we 

speciated the VOC emissions into specific HAP emissions, making 

the assumption that all the VOC were HAP. The HAP profile we 

developed and applied to the VOC emissions for these facilities 

was based on the top 3 solvents reported by the other facilities 

in the source category, which accounted for more than 90 percent 

of the total HAP emissions at those facilities. This HAP 

speciation profile was: xylene (all isomers) – 78 percent; ethyl 

benzene – 15 percent; and toluene – 7 percent. 

There were also several facilities with no available 

emissions data, and we decided to assign them to 1 of 2 possible 

categories based on available information from company websites, 

operating permits, previous MACT project information, or similar 

facilities. The first category included facilities that emitted 

greater than or equal to 25 TPY of total HAP. The second 

category included facilities that emitted less than 25 TPY. 

Based on a small number of available operating permits and 

industry information collected for the original MACT rule, we 

determined which facilities belonged in each category. We then 

used the available emissions data reported for those facilities 
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to calculate average total HAP emissions for each source type. 

The average HAP emissions level for facilities in the first 

category was estimated to be about 25 TPY, and the average HAP 

emissions level for facilities in the second category was 

estimated to be 7 TPY. Thus, facilities in the first category 

with no emissions data were assigned emissions of 25 tons total 

HAP per year, and facilities in the second category with no 

emissions data were assigned emissions of 7 tons total HAP per 

year. The same default HAP solvent profile discussed above was 

used to speciate the HAP emissions for these facilities. For a 

more complete description of the default assumptions used to 

populate the dataset, see Default Emissions Assumptions for 

Shipbuilding RTR Dataset memorandum, dated August 30, 2010, 

which is available in the docket for this action. These updated 

data were used to conduct the risk assessments and other 

analyses that form the basis for this proposed action. 

 Mixed xylenes and ethyl benzene account for the majority of 

the HAP emissions from the Shipbuilding and Ship Repair (Surface 

Coating) Operations source category (approximately 855 TPY, or 

90 percent of the total HAP emissions by mass). These 

facilities also reported relatively small emissions of 33 other 

HAP. For more detail, see the memorandum in the docket for this 

action describing the risk assessment inputs and models for the 
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Shipbuilding and Ship Repair (Surface Coating) Operations source 

category. 

 We estimate that MACT-allowable emissions from this source 

category could be up to 2 times greater than the actual 

emissions for some types of coatings, based on information 

obtained for the highest usage coating categories at several 

major source facilities. However, we do not have facilityspecific information for all facilities or all coatings, and we 

request comment on this estimate. For more detail about how 

this estimate of the ratio of actual to MACT-allowable emissions 

was derived, see the Maximum Achievable Control Technology 

(MACT) Allowable Emission Estimates memorandum, dated August 5, 

2010, in the docket for this action describing the estimation of 

MACT-allowable emission levels and associated risks and impacts. 

 For the “facility-wide” risk analysis, only data from the 

draft 2005 NATA, which is a nationwide screening-level 

assessment based on the NEI, was used. 

3. What are the results of the risk assessments and analyses?

 We have conducted an inhalation risk assessment for the 

Shipbuilding and Ship Repair (Surface Coating) Operations source 

category. We have also conducted an assessment of facility-wide 

risk and performed a demographic analysis of population risks. 

Details of the risk assessments and analyses can be found in the 
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residual risk documentation referenced in section IV.A of this 

preamble, which is available in the docket for this action. 

a. Inhalation Risk Assessment Results. 

 Table A.1 provides an overall summary of the results of the 

inhalation risk assessment. 
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Table A.1. Shipbuilding and Ship Repair (Surface Coating) 

Operations Inhalation Risk Assessment Results 

Number of 

Facilities1

Maximum 

Individual 

Cancer Risk 

(in 1 million)2 Estimated 

Population 

at Risk ≥ 1-

in-1 Million 

Estimated 

Annual 

Cancer 

Incidence 

(cases 

per year) 

Maximum 

Chronic Non-cancer 

TOSHI3 Maximum Offsite Acute 

Non-cancer 

HQ4

Actual 

Emissions 

Level 

Allowable 

Emissions 

Level 

Actual 

Emissions 

Level 

Allowable 

Emissions 

Level 

85 10 20 4,000 0.003 0.5 1 HQREL = 0.1 

glycol ethers 1

 Number of facilities evaluated in the risk analysis. 

2

 Estimated maximum individual excess lifetime cancer risk. 

3

 Maximum TOSHI. The target organ with the highest TOSHI for the 

Shipbuilding and Ship Repair (Surface Coating) Operations source 

category is the reproductive system. 

4

 The maximum estimated acute exposure concentration was divided by 

available short-term dose-response values to develop an array of HQ 

values. HQ values shown use the lowest available acute dose-response 

value, which, in most cases, is the REL. See section IV.A of this 

preamble for explanation of acute dose-response values. 

 As shown in Table A.1, the results of the inhalation risk 

assessment performed using actual emissions data indicate the 

maximum lifetime individual cancer risk could be as high as 10-

in-1 million, due to ethyl benzene emissions; the maximum 

chronic non-cancer TOSHI value could be as high as 0.5, due to 

mixed xylenes emissions; and the maximum off-site acute HQ value 

could be as high as 0.1, based on the REL value for glycol 

ethers. The total estimated cancer incidence from these 

facilities based on actual emission levels is 0.003 excess 

cancer cases per year, or 1 case in every 333 years. 

 As explained above, our analysis of potential differences 

between actual emission levels and emissions allowable under the 

MACT standards indicate that MACT-allowable emission levels may 
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be up to 2 times greater than actual emission levels. 

Considering this difference, the risk results from the 

inhalation risk assessment indicate the maximum lifetime 

individual cancer risk could be as high as 20-in-1 million, and 

the maximum chronic non-cancer TOSHI value could be as high as 1 

at the MACT-allowable emissions level. 

b. Facility-wide Risk Assessment Results. 

 A facility-wide risk analysis was also conducted based on 

actual emissions levels. Table A.2 displays the results of the 

facility-wide risk assessment. 

Table A.2. Shipbuilding and Ship Repair (Surface Coating) 

Operations Facility-Wide Risk Assessment Results

Number of facilities analyzed 85 

Cancer Risk 

Estimated maximum facility-wide individual 

cancer risk (in 1 million) 200 

Number of facilities with estimated facilitywide individual cancer risk of 100-in-1 

million or more 

4 

Number of shipbuilding and ship repair 

(surface coating) operations contributing 50 

percent or more to facility-wide individual 

cancer risk of 100-in-1 million or more

0 

Number of facilities with facility-wide 

individual cancer risk of 1-in-1 million or 

more 

41 

Number of shipbuilding and ship repair 

(surface coating) operations contributing 50 

percent or more to facility-wide individual 

cancer risk of 1-in-1 million or more

15 

Chronic 

Non-cancer 

Risk

Maximum facility-wide chronic non-cancer 

TOSHI 10 

Number of facilities with facility-wide 

maximum non-cancer TOSHI of 1 or more 9 

Number of shipbuilding and ship repair 

(surface coating) operations contributing 50 0 
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percent or more to facility-wide maximum noncancer TOSHI of 1 or more

 The maximum individual cancer risk from all HAP emissions 

at any facility that contains sources subject to the 

Shipbuilding and Ship Repair MACT standards is estimated to be 

200-in-1 million based on actual emissions. Of the 85 

facilities included in this analysis, 4 have facility-wide 

maximum individual cancer risks of 100-in-1 million or greater. 

At these facilities, shipbuilding and ship repair (surface 

coating) operations account for 1 percent of the total facilitywide risk. There are 41 facilities with facility-wide maximum 

individual cancer risks of 1-in-1 million or greater. Of these 

41 facilities, 15 have shipbuilding and ship repair (surface 

coating) operations that contribute greater than 50 percent to 

the facility-wide risks. The facility-wide cancer risks at 

these 41 facilities, and at the 4 facilities with risks of 100-

in-a million or more, are primarily driven by emissions of 

hexavalent chromium from welding and abrasive blasting 

operations. However, we note that there are uncertainties in 

the amount and form of chromium emitted from these facilities. 

For many of the facilities, the emissions inventory used for the 

risk assessment included estimates for the 2main forms of 

chromium (i.e., hexavalent and trivalent chromium). However, 

for other facilities, we only had estimates of total chromium 
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emitted. For those facilities, we applied a default assumption 

that 34 percent of the total chromium emissions were hexavalent 

and 66 percent were trivalent chromium. Although, hexavalent 

chromium is toxic and is a known human carcinogen, trivalent 

chromium is less toxic and is currently “not classified as to 

its human carcinogenicity”. Therefore, the relative emissions 

of these two forms can have a significant effect on the cancer 

risk estimates. 

 The facility-wide maximum individual chronic non-cancer 

TOSHI is estimated to be 10 based on actual emissions. Of the 

85 facilities included in this analysis, 9 have facility-wide 

maximum chronic non-cancer TOSHI values of 1 or greater. Of 

these 9 facilities, none had shipbuilding and ship repair 

(surface coating) operations that contributed greater than 50 

percent to these facility-wide risks. The chronic non-cancer 

risks at these 9 facilities are primarily driven by manganese 

emissions from welding and abrasive blasting operations. 

c. Demographic Risk Analysis Results. 

 The results of the demographic analyses performed to 

investigate the distribution of cancer risks at or above 1-in-1 

million among the surrounding population are summarized in Table 

A.3 below. These results, for various demographic groups, are 

based on actual emissions levels for the population living 

within 50 km of the facilities. 
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Table A.3. Shipbuilding and Ship Repair Operations Demographic 

Risk Analysis Results 

Nationwide 

Population with cancer risk greater than 

1 in a million due to.... 

Source Category HAP 

emissions 

Facility-wide HAP 

emissions 

Total 

population 

285,000,000 4,000 392,000 

Race by percent 

White 75 54 71 

All Other Races 25 46 29 

Race by percent 

White 75 54 71 

African 

American 12 42 20 

Native American 0.9 0.4 0.6 

Other and 

Multiracial 12 4 8 

Ethnicity by percent 

Hispanic 14 3 9 

Non-Hispanic 86 97 91 

Income by percent 

Below poverty 13 24 16 

Above poverty 87 76 84 

Education by percent 

Over 25 and 

without high 

school diploma 

13 15 13 

Over 25 and 

with a high 

school diploma 

87 85 87 

 The results of the Shipbuilding and Ship Repair (Surface 

Coating) Operations source category demographic analysis 

indicate that there are approximately 4,000 people exposed to a 

cancer risk greater than 1-in-1 million due to emissions from 

the source category. Of this population, an estimated 46 

percent can be classified as a minority (listed as “All Other 

Races in the table above),” including 42 percent in the “African 
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American” demographic group, 24 percent in the “Below Poverty” 

level demographic group, and 15 percent in the “Over 25 Without 

High School Diploma” demographic group. These percentages all 

appear to be somewhat higher than the respective percentages for 

these demographic groups across the United States. The table 

also shows that there are approximately 392,000 people exposed 

to an estimated cancer risk greater than 1-in-1 million due to 

facility-wide emissions. Of this population, the results of the 

facility-wide demographic analysis indicate that the percentages 

are higher than nationwide percentages for those who could be 

classified as a “Minority,” and for those included in the 

“African American,” and “Below Poverty” level demographic 

groups. 

4. What are our proposed decisions on risk acceptability and 

ample margin of safety?

a. Risk Acceptability.

 As noted in section III.B of this preamble, we weigh all 

health risk factors and measures in our risk acceptability 

determination, including cancer risks to the individual most 

exposed, risk estimation uncertainty, and other health 

information. For the Shipbuilding and Ship Repair (Surface 

Coating) Operations source category, the risk analysis we 

performed indicates that the cancer risks to the individual most 

exposed could be as high as 10-in-1 million due to actual 
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emissions and as high as 20-in-1 million due to MACT-allowable 

emissions. These risks are considerably less than 100-in-1 

million, which is the presumptive limit of acceptability. The 

risk analysis also shows low cancer incidence (1 case in every 

333 years), no potential for adverse environmental effects or 

human health multi-pathway effects, and that chronic and acute 

non-cancer health impacts are unlikely. While our additional 

analysis of facility-wide risks showed that there are 4 

facilities with maximum facility-wide cancer risk of 100-in-1 

million or greater and 9 facilities with a maximum chronic noncancer TOSHI of 1 or more, it also showed that shipbuilding and 

ship repair (surface coating) operations did not drive these 

risks. Our additional analysis of the demographics of the 

exposed population indicates disparities in risks between 

demographic groups may exist; however, the number of people 

exposed to cancer risks of 1-in-1 million or greater due to 

emissions from the source category is relatively low (4,000). 

Considering these factors and the uncertainties discussed in 

section IV.A.7 of this preamble, we propose that the risks from 

the Shipbuilding and Ship Repair (Surface Coating) Operations 

source category are acceptable. 

b. Ample Margin of Safety.

 Although we are proposing that the risks from the 

Shipbuilding and Ship Repair (Surface Coating) Operations source 
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category are acceptable, risk estimates for some individuals in 

the exposed population are above 1-in-1 million. Consequently, 

we considered whether the MACT standard provides an ample margin 

of safety. In this analysis, we investigated available 

emissions control options that might reduce the risk associated 

with emissions from the source category and considered this 

information along with all of the health risks and other health 

information considered in the risk acceptability determination. 

 One option we considered was to require the use of marine 

coatings with lower overall HAP content or lower toxicity HAP 

content. However, data regarding the availability, use, 

performance, and emissions associated with the use of any such 

marine coatings are not available. We are soliciting comment on 

the availability of such coatings and any issues related to the 

use and performance of those coatings. 

 We also considered requiring the enclosure of some or all 

of the coating operations and requiring emissions to be routed 

to a control device, such as a regenerative thermal oxidizer. 

However, because these facilities repair and repaint ships, as 

well as perform new construction painting operations, any 

enclosures would need to be large enough to accommodate the 

entire ship or a large portion (i.e., half) of a ship at one 

time. We determined that this is not practicable or technically 

feasible in many cases, would not be cost-effective, and we are 
*** E.O. 12866 Review – Draft – Do Not Cit, Quote, or Release 

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Page 88 of 176 

not aware of any facility using an enclosure of this size. 

Additional information on the feasibility and costs of controls 

are discussed in the Technology Review section (section 5) of 

this preamble and in the memorandum Cost Analyses for Add-on 

Controls for Surface Coating Operations at Shipbuilding and Ship 

Repair Facilities, dated September 2, 2010, in the docket for 

this action. 

 In accordance with the approach established in the Benzene 

NESHAP, EPA weighed all health risk measures and information 

considered in the risk acceptability determination, along with 

the costs and economic impacts of emissions controls, 

technological feasibility, uncertainties, and other relevant 

factors, in making our ample margin of safety determination. 

Considering the health risk information, the uncertainty and 

lack of data associated with one potential risk reduction option 

identified, and the technological infeasibility of the other 

option identified, we propose that the existing MACT standards 

provide an ample margin of safety to protect public health. 

Thus, we are proposing to re-adopt the existing MACT standards 

to satisfy section 112(f) of the CAA. 

 While we are proposing that the emissions covered by the 

Shipbuilding and Ship Repair MACT standards provide an ample 

margin of safety to protect public health, the Agency is 

concerned about the estimated facility-wide risks identified 
*** E.O. 12866 Review – Draft – Do Not Cit, Quote, or Release 

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Page 89 of 176 

through these analyses. As described previously, the estimated 

cancer risks are due to emissions of chromium and are largely 

dependent on the estimates of the fraction of total chromium 

that is in the hexavalent form. Welding and abrasive blasting 

operations that occur during shipbuilding and ship repair are 

potential sources of HAP at these facilities, and could involve 

different types of metals (welding) and minerals (abrasive 

blasting and welding). Therefore, we intend to list welding and 

blasting operations that occur at shipbuilding and ship repair 

facilities as a major source category. We solicit additional 

information on the emissions from these activities, which will 

enable EPA to conduct additional analyses to inform a decision 

on the best approach to take to address these emissions after 

they are listed. Other sources of emissions at these facilities 

include surface coating of offshore oil and gas well drilling 

and production platforms, which are not included in this source 

category or covered by the MACT standards, but are subject to 

the limitations of EPA’s federal rule on Architectural and 

Industrial Maintenance Coatings. 

5. What are the results and proposed decisions from the 

technology review?

We evaluated developments in practices, processes, and 

control technologies potentially applicable to the Shipbuilding 

and Ship Repair (Surface Coating) Operations source category. 
*** E.O. 12866 Review – Draft – Do Not Cit, Quote, or Release 

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This included a search of the RBLC Clearinghouse, the California 

BACT Clearinghouse, the internet, and correspondence with state 

agencies and industry. We found an advance in add-on control 

technology since the Shipbuilding and Ship Repair MACT standards 

were originally developed in 1995, and we have determined that 

there are more stringent VOC-based coating limits for certain 

marine coating categories for shipbuilding and ship repair 

facilities in some areas of California. 

 We identified an add-on control device, a concentrator/RTO, 

recently installed (2009) at 1 shipbuilding and ship repair 

facility in California. The control device consisted of rotary 

concentrators followed by RTOs on 5large, custom-built spray 

booths to control volatile organic emissions from some of the 

coating operations. The system is capable of achieving 95 

percent control efficiency for the volatile HAP emissions 

captured by the spray booths (which are estimated to capture 90 

percent of the HAP emissions). For this type of add-on control 

to be effective, a facility must perform regular or continuous 

modular (ship sections or components) coating operations, a 

process that is normally performed at large shipyards during new 

ship construction. Due to the size of the booths required to 

handle large ship modules, a facility would also require a large 

physical land space to build or retrofit the spray booths. Such 

spray booths must be located near the final ship assembly area 
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(e.g., drydock or graving dock) to facilitate the logistics of 

moving the ship modules into place and attaching them to other 

modules. Large coating booths would not be effective at 

shipyards that perform repairs on finished vessels or during 

dockside coating, since only a small amount of the total coating 

could be applied in such spray booths. 

 Nationwide, based on recently awarded contracts for new 

ship construction, we estimate that fewer than 20 facilities 

have significant new ship construction business, are large 

enough to adopt this type of technology, and are able to 

retrofit existing spray booths. We estimate cost-effectiveness 

of the concentrator/RTO system to be $305,000 per ton of HAP, 

with an estimated industry-wide emission reduction of 48 tons of 

HAP per year (if installed at the approximately 20 facilities 

large enough to use the technology). Based on facility level 

sales, we determined that this option is not affordable. The 

cost as a percent of revenues was estimated to be 42 percent or 

greater. Additional information on the affordability of 

controls is discussed in the memorandum Affordability of Add-on 

Controls for Surface Coating Operations at Shipbuilding and Ship 

Repair Facilities, dated October 28, 2010, in the docket for 

this action. The large add-on controls also require a 

substantial amount of fuel, which produces NOx emissions, a 
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byproduct of combustion. The extra fuel use and emissions of NOX

would be negative consequences of the use of such add-on 

controls. Moreover, we believe the costs of these controls 

would be disproportionate to the emission reduction that would 

be achieved. Thus, we are proposing that it is not necessary to 

revise the existing MACT standards to require this technology 

pursuant to section 112(d)(6) of the CAA. 

 In our review of developments in practices, processes, and 

control technologies, we also identified four California air 

quality districts that have adopted more stringent VOC marine 

coating emission limits than those specified in the 1995 

Shipbuilding and Ship Repair (Surface Coating) MACT Standard. 

Based on information from major source facilities, when the 

Shipbuilding and Ship Repair MACT standards were originally 

developed, the relationship between VOC content and VOHAP 

content in marine coatings was approximately 3:1, where 

approximately 30 percent of all solvents used for painting and 

thinning were HAP solvents. For more information on the 

relationship between VOC and VOHAP, see the Background 

Information Document for the Shipbuilding and Ship Repair 

(Surface Coating) Operations proposed rule, dated February, 

1994. However, we note that the California limits are not 

uniformly applied across each coating category or in each of the 

4 districts. Furthermore, the 1995 MACT standard includes cold 
*** E.O. 12866 Review – Draft – Do Not Cit, Quote, or Release 

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weather volatile organic HAP limits such that, if the 

temperature is below 4.5°C (40°F) at the time the coating is 

applied and the source needs to thin that coating beyond the 

applicable VOHAP limit, the applicable cold-weather VOHAP limit 

may be used. Since the California limits do not have similar 

allowances for cold weather, and California generally has a more 

temperate climate than many parts of the country, the ability to 

apply coatings effectively could be compromised in areas of the 

country with colder climates if the more stringent California 

limits were required nationwide. We currently do not have data 

to determine whether these lower-VOC content coatings could be 

applied nationwide. Considering the technical feasibility 

uncertainties associated with the use of lower-HAP coatings, we 

are proposing that it is not necessary to revise the existing 

MACT standards to require lower-HAP coatings pursuant to section 

112(d)(6) of the CAA. However, we solicit comment and data on 

low-HAP marine coatings that may be available for use at these 

facilities and that could be applied at facilities nationwide. 

6. What other actions are we proposing? 

We are proposing the elimination of the SSM exemption in 

the Shipbuilding and Ship Repair (Surface Coating) MACT 

Standards. Consistent with Sierra Club v. EPA, EPA is proposing 

standards in this rule that apply at all times. We are 

proposing several revisions to subpart II. Specifically, we are 
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proposing to revise Table 1 to indicate that the requirements of 

40 CFR 63.6(e)(1)(i) of the General Provisions do not apply, 

including facilities complying with the standards by using an 

add-on control device. The 40 CFR 63.6(e)(1)(i) requires owners 

or operators to act according to the general duty to “operate 

and maintain any affected source, including associated air 

pollution control equipment and monitoring equipment, in a 

manner consistent with safety and good air pollution control 

practices for minimizing emissions.” We are separately 

proposing to incorporate this general duty to minimize into 40 

CFR 63.783(b)(1). The 40 CFR 63.6(e)(3) requires the owner or 

operator of an affected source to develop a written SSM plan. 

We are proposing to remove the SSM plan requirement. We are 

also proposing to add 40 CFR 63.786(e) to specify the conditions 

for performance tests, to revise the SSM-associated reporting 

and recordkeeping requirements in 40 CFR 63.788 to require 

reporting and recordkeeping for periods of malfunction, and to 

revise Table 1 to specify that 40 CFR 63.6 (e)(1)(i) and (ii), 

63.6(e)(3), 63.6(f)(1), 40 CFR 63.7(e)(1), 40 CFR 63.8(c)(1)(i) 

and (iii), and the last sentence of 63.8(d)(3), 40 CFR 

63.10(b)(2)(i),(ii), (iv), and (v), 40 CFR 63.10(c)(10), (11), 

and (15), and 40 CFR 63.10(d)(5) of the General Provisions do 

not apply. In addition, as explained above, we are proposing to 

add an affirmative defense to civil penalties for exceedances of 
*** E.O. 12866 Review – Draft – Do Not Cit, Quote, or Release 

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Page 95 of 176 

emission limits caused by malfunctions, as well as criteria for 

establishing the affirmative defense. 

EPA has attempted to ensure that we have not included in 

the proposed regulatory language any provisions that are 

inappropriate, unnecessary, or redundant in the absence of the 

SSM exemption. We are specifically seeking comment on whether 

there are any such provisions that we have inadvertently 

incorporated or overlooked. 

B. What are the results and proposed decisions for the Wood 

Furniture Manufacturing Operations source category? 

1. Overview of the source category and MACT Standard.

 The National Emission Standards for Wood Furniture 

Manufacturing Operations were promulgated on December 7, 1995 

(60 FR 62930) and codified at 40 CFR part 63, subpart JJ. The 

Wood Furniture Manufacturing Operations MACT standards (i.e., 

Wood Furniture MACT standards) apply to wood furniture 

manufacturing operations at any facility that is a major source 

of HAP. We estimate that there are approximately 406 wood 

furniture manufacturing facilities subject to the Wood Furniture 

Manufacturing Operations MACT standards. In some instances, 

wood furniture manufacturing operations may be located at 

facilities that also have operations regulated by the NESHAP for 

Surface Coating of Metal Furniture (40 CFR part 63, subpart 

RRRR), the NESHAP for Surface Coating of Wood Building Products 
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(40 CFR part 63, subpart QQQQ), or NESHAP for Plywood and 

Composite Wood Products (Subpart DDDD). 

The Wood Furniture Manufacturing Operations source category 

includes operations related to the production of a range of wood 

products, including wood kitchen cabinets, wood residential 

furniture, upholstered residential and office furniture, wood 

office furniture and fixtures, partitions, shelving, lockers, 

and other wood furniture not included in 1of the other 

categories listed above. 

Finishing, gluing, cleaning, and wash-off operations are 

the four processes that take place during wood furniture 

manufacturing that result in HAP emissions, and are regulated by 

the Wood Furniture Manufacturing Operations MACT standards. 

 Finishing materials include stains, basecoats, washcoats, 

glazes, fillers, sealers, highlights, enamels, and topcoats. 

All of these finishing materials may contain HAP that would be 

emitted during application. After a finishing material is 

applied, the wood substrate typically enters a flash-off area 

where the more volatile solvents in the finishing materials 

(including HAP) evaporate and the finishing material begins to 

cure. The wood substrate typically then enters an oven where 

curing of the finishing material and evaporation of the volatile 

solvents continues. 

Some of the gluing operations that occur at wood furniture 
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manufacturing facilities are part of the Wood Furniture 

Manufacturing Operations source category. The primary type of 

adhesive covered by this source category is contact adhesives. 

Cleaning activities include the use of solvents to dissolve 

resins into the coating mix and to remove dried coatings. These 

industrial solvents sometimes contain HAP which evaporate when 

the solvent is exposed to the air and subsequently discharged to 

the atmosphere via ventilation air. 

 The wash-off process uses solvent to remove cured coating. 

This process is used when finished furniture does not meet 

specifications and requires refinishing. 

Typical control options used to reduce emissions from 

finishing, cleaning, gluing, and wash-off operations are 

compliant coatings and work practices. To meet the requirements 

of the Wood Furniture MACT Standards, facilities have the option 

to use only coatings and thinners that meet the individual HAP 

content requirements by material type. This method is known as 

using compliant coatings. Another option, installing 

destructive control devices such as thermal oxidizers, is 

allowed by the Wood Furniture MACT standards as compliance 

alternatives to compliant coatings, but is not often used by the 

industry. Work practices are a requirement in the rule and 

include inspection and maintenance plans to prevent leaks as 

well as using covers on wash-off tanks. 
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2. What data were used in our risk analyses? 

 For the Wood Furniture Manufacturing Operations source 

category, we compiled preliminary datasets using data in the 

2005 NEI. We reviewed and verified these data and made changes 

where necessary. In this review and verification process, we 

contacted several facilities to verify existing information on 

emissions of several different pollutants, including speciated 

glycol ether emissions, as reported in the NEI. We obtained 

updated emissions data and process information (generally 2008 

or 2009 data), found that some plants had closed, and that 

others no longer manufacture wood furniture. For more detail, 

see the memorandum Wood Furniture Manufacturing – Updated Data 

for Modeling File, dated June 8, 2010, in the docket for this 

action. 

 In addition to contacting individual facilities, we 

consulted with 4trade associations that are heavily involved in 

wood furniture manufacturing operations. We asked KCMA, the 

AHFA, the BIFMA, and the ACA to verify existing information in 

the NEI database. Specifically, we asked the trade associations 

to verify addresses, operational status (i.e. operational or 

shut down), and whether the facilities belonged in the Wood 

Furniture Manufacturing source category. With their assistance, 

we were able to update the facility status for another 85 

facilities. For more detail, see the memo Review and
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Verification of Wood Furniture Facilities in NEI Database, dated 

October 22, 2010, in the docket for this action. 

 We also noticed there were 66 wood furniture manufacturing 

facilities in the RTR dataset that reported generic “glycol 

ether” emissions that totaled 70 TPY. Three facilities updated 

their emission profiles to “speciated glycol ethers” emissions. 

Based on the additional and updated emissions information on 

speciated glycol ethers, we created a speciation profile of 

glycol ethers and applied this speciation profile to generically 

reported “glycol ethers” emissions in the dataset. For more 

information about glycol ethers and the glycol ether speciation 

profile, see the memorandum Review of Glycol Ether Emissions 

Associated with Wood Furniture Manufacturing Source Category, 

dated October 22, 1010, in the docket for this action. 

 This updated dataset was used to conduct the risk 

assessments and other analyses that form the basis for this 

proposed action. Toluene and mixed xylenes account for the 

majority of the HAP emissions from the Wood Furniture 

Manufacturing Operations source category (approximately 3,500 

TPY and 62 percent of the total HAP emissions by mass). Lower 

levels of emissions of 68 other HAP were also reported from 

facilities in the source category. For more detail, see the 

memorandum Wood Furniture Manufacturing – Updates for Modeling 

File, dated June 8, 2010, in the docket for this action 
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describing the risk assessment inputs and models for the Wood 

Furniture Manufacturing Operations source category. 

 We estimate that MACT-allowable emissions from this source 

category could be up to 2 times greater than the actual 

emissions, as the compliant coatings used typically have lower 

HAP content than required by the Wood Furniture Manufacturing 

Standards to allow for operational and market variability. 

However, we do not have facility-specific information for all 

facilities or all coatings, and we request comment on this 

estimate. For more detail about how this estimated ratio of 

actual-to-MACT-allowable emissions estimate, see the memorandum 

Maximum Achievable Control Technology (MACT) Allowable Emission 

Estimates, dated September 9, 2010, in the docket for this 

action describing the estimation of MACT-allowable emission 

levels and associated risks and impacts. 

3. What are the results of the risk assessments and analyses?

 We have conducted an inhalation risk assessment for the 

Wood Furniture Manufacturing Operations source category. We 

have also conducted an assessment of facility-wide risks and 

performed a demographic analysis of population risks. Details 

of the risk assessments and analyses can be found in the 

residual risk documentation referenced in section IV.A of this 

preamble, which is available in the docket for this action. 
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a. Inhalation Risk Assessment Results.

 Table B.1 provides an overall summary of the inhalation 

risk assessment results for the source category. 

 

Table B.1. Wood Furniture Manufacturing Operations Inhalation 

Risk Assessment Results 

Number of 

Facilities1

Maximum 

individual 

cancer risk 

(in 1 million)2

Estimated 

Population 

at risk ≥

1-in-1 

million 

Estimated 

Annual 

cancer 

incidence 

(cases 

per year) 

Maximum 

chronic non-cancer 

TOSHI3

Maximum offsite acute noncancer HQ4

Actual 

Emissions 

Level 

Allowable 

Emissions 

Level 

Actual 

Emissions 

Level 

Allowable 

Emissions 

Level 

385 20 40 20,000 0.005 0.4 0.8 

HQREL = 10 

(propyl 

cellosolve)5

HQREL = 7 

(formaldehyde) 

 HQAEGL-1= 0.35 

(formaldehyde) 

HQREL = 2 

(toluene) 1

 Number of facilities evaluated in the risk analysis. 

2

 Estimated maximum individual excess lifetime cancer risk. 

3

 Maximum TOSHI. The target organ with the highest TOSHI for the Wood 

Furniture Manufacturing Operations source category is the nervous system. 

4

 The maximum estimated acute exposure concentration was divided by available 

short-term dose-response values to develop an array of HQ values. HQ values 

shown use the lowest available acute dose-response value, which in most cases 

is the REL. Note that the REL for EGME was used to evaluate propyl 

cellosolve. When HQ values exceed 1, we also show HQ values using the next 

lowest available acute dose-response value. See section IV.A of this 

preamble for explanation of acute dose-response values. 

5 Note the HQ value for propyl cellosolve is the maximum acute pollutant HQ of 

all speciated glycol ethers modeled. The REL for EGME was used to evaluate 

propyl cellosolve and all speciated glycol ethers that do not have an acute 

dose response value. 

 

 The inhalation risk modeling was performed using actual 

emissions data. As shown in Table B.1, the results of the 

inhalation risk assessment indicate the maximum lifetime 

individual cancer risk could be as high as 20-in-1 million due 
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to emissions of formaldehyde. The total estimated cancer 

incidence due to actual emissions from the source category is 

0.005 excess cancer cases per year, or one case in every 200 

years. The maximum chronic non-cancer TOSHI value could be as 

high as 0.4, due to emissions of hexane; and the maximum acute 

HQ value could be as high as 10 for propyl cellosolve with 

propyl cellosolve representing the maximum acute HQ among all 

the speciated glycol ethers using the REL value for EGME as a 

surrogate. We estimate that emissions of glycol ethers (mainly 

propyl cellosolve) from 8 facilities (or about 2 percent of the 

total facilities) result in maximum acute HQs greater than 1. 

Additionally, the maximum acute HQ for formaldehyde could be as 

high as 7 based on the REL value for formaldehyde. We estimate 

that emissions of formaldehyde from 11 facilities (about 3 

percent of the total facilities) result in maximum acute HQs 

greater than 1. The maximum acute level of formaldehyde did not 

exceed the 1-hour AEGL-1 for formaldehyde; the estimated maximum 

HQ using the AEGL-1 was 0.35. We also identified one facility 

with a potential to exceed the acute REL for toluene (a maximum 

estimated acute HQ of 2). Nevertheless, as described earlier in 

this preamble, the acute assessment includes conservative 

assumptions. For example, the modeling approach assumes that 

peak emissions occur at the same time as worst case 1-hour 

meteorology and that a person is located directly downwind at 
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that time. Moreover, for glycol ethers, we used the lowest 

acute REL of any of the glycol ethers with such health values 

(i.e., EGME) to assess the other glycol ethers without such 

values. Thus, overall, we believe it is unlikely that HAP 

emissions from this source category pose significant acute 

health risks. However, we still have some concerns about 

potential acute non-cancer effects, thus we are seeking comments 

and data to refine the risk assessment. Some of the specific 

information and data that we are seeking are described below. 

 As explained above, our analysis of potential differences 

between actual emission levels and emissions allowable under the 

MACT standards indicates that MACT-allowable emission levels may 

be up to two times greater than actual emission levels. 

Considering this difference, the risk results from the 

inhalation risk assessment indicate the maximum lifetime 

individual cancer risk could be as high as 40-in-1 million, and 

the maximum chronic non-cancer TOSHI value could be as high as 

0.8 at the MACT-allowable emissions level. 

The risk assessment for chronic non-cancer risks was 

performed consistent with the approach taken in previous risk 

and technology reviews for other source categories, i.e., we 

used our existing hierarchy of reference values (EPA 1999 – 

Residual Risk Report to Congress), which favors the use of an 

IRIS value when available. The use of a surrogate reference 
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value for a chemical group (e.g., glycol ethers) is part of this 

approach when only a limited number of specific chemicals in a 

chemical group have available values, and/or emissions are 

reported generically for the chemical group and not specific 

compounds. In the case of glycol ethers emissions from this 

source category, the IRIS value for ethylene glycol monomethyl 

ether, or EGME, is the lowest reference value (i.e., most health 

protective) from the preferred values for any glycol ether HAP. 

We are aware that there are Provisional Peer Reviewed 

Toxicity Values (PPRTVs) for assessing chronic noncancer 

inhalation health risks of two glycol ethers (diethylene glycol 

monobutyl ether or DGBE; and diethylene glycol monomethyl ether 

or DGME) that are emitted by this source category. PPRTVs are 

reference values, developed by EPA’s Office of Research and 

Development, for use in EPA’s Superfund Program when an 

acceptable reference value is not otherwise available, such as 

those found in EPA’s IRIS database. PPRTVs are developed using 

the same methods and guidance as IRIS but with a much shorter 

development schedule and focusing on the needs of the Superfund 

program. In contrast, IRIS values are Agency consensus values 

designed for use across multiple EPA program offices, including 

providing support for national regulatory decisions (e.g., RTR). 

At this time, EPA considers PPRTVs inappropriate for use in risk 

assessments that serve as the basis for regulatory decision-
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making under CAA section 112(f). Accordingly, EPA has not used 

them in this proposed action. 

In characterizing the potential cancer and non-cancer 

risks, it is important to consider the uncertainties related to 

the risk assessments, particularly for formaldehyde and glycol 

ethers. Some of the general uncertainties with health values 

and the modeling approach were described earlier in this 

preamble. With regard to emissions, there are various areas of 

potential uncertainty for these HAP. First, only about 23 

percent of the facilities reported glycol ether emissions and 

about half reported formaldehyde. We recognize that not all 

facilities necessarily emit these HAPs. Nevertheless, we believe 

the actual number of facilities with emissions of glycol ethers 

and formaldehyde could possibly be higher than the number we 

have in our data set. Second, most facilities reporting glycol 

ether emissions reported them generically as the class “glycol 

ethers” and not as particular species. We developed a profile to 

speciate these generic glycol ethers, which was generated from a 

composite of reported speciated glycol ethers emissions data 

from facilities across the source category; however, there is 

uncertainty regarding how representative this profile is for the 

other facilities in the source category since the profile is 

based on limited data. Additionally, as previously discussed, a 

limited number of the glycol ether compounds have non-cancer 
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reference values and therefore a surrogate value was used. For 

the acute assessment glycol ethers were assessed individually 

and not as a combined group. Third, the reported levels of 

formaldehyde in the NEI are likely derived from coatings content 

and may not account for curing or gluing that may also create 

and emit volatile HAP (e.g., formaldehyde). Recognizing that 

there is no approved method for estimating formaldehyde 

emissions from curing, this is an uncertainty that could 

possibly bias the risk estimates low, but the extent of 

underestimation, if any, is unknown. 

With regard to the acute inhalation assessment, the maximum 

acute non-cancer HQs of 7 for formaldehyde and 10 for propyl 

cellosolve were derived partly based on using an acute 

multiplier of 4 from the annual average hourly emissions. We 

realize there are uncertainties regarding this factor of 4. For 

more information on this factor see the memorandum Acute Effects 

Factor for Wood Furniture Manufacturing Operations, dated October 

23, 2010, in the docket for this action. 

Thus, because of the uncertainties described above, we 

solicit additional data and comments that would improve our 

emissions estimates. Specifically, we solicit data on glycol 

ethers (speciated to the extent known) and formaldehyde used in 

coatings at wood furniture manufacturing facilities. We solicit 

data regarding facilities that use coatings that may form 
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formaldehyde or other volatile HAPs during the curing process 

and data on HAP emissions related to gluing operations. We 

solicit comment on the emissions estimates and assumptions we 

have used in this proposal and whether there are scientifically 

credible methods to estimate curing and gluing emissions, based 

on known coatings or other methods. We also solicit comment on 

potential options for reducing the use in this source category 

of specific glycol ethers which are known to have (or are 

suspected to have) higher toxicity than other compounds in the 

class. Moreover, we request that comments include, if possible, 

the following types of data and information that might help 

reduce the uncertainties: (1) ranges of the HAP content in 

coating products and variability between product runs for 

different types of facilities; (2) ranges within the annual 

averages of VOHAP per pound of coating solids; (3) information 

regarding whether control devices are used and, if so, what types 

and at how many facilities.

c. Facility-wide Risk Assessment Results. 

 Table B.2 displays the results of the facility-wide risk 

assessment. This assessment was conducted based on actual 

emission levels. 
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Table B.2. Wood Furniture Manufacturing Operations Facility-Wide 

Risk Assessment Results 

Number of facilities analyzed 385 

Cancer Risk 

Estimated maximum facility-wide individual 

cancer risk (in 1 million) 100 

Number of facilities with estimated facilitywide individual cancer risks of 100-in-1 

million or more 

1 

Number of wood furniture manufacturing 

operations contributing 50 percent or more to 

facility-wide individual cancer risk of 100-

in-1 million or more

0 

Number of facilities with facility-wide 

individual cancer risk of 1-in-1 million or 

more 

74 

Number of wood furniture manufacturing 

operations contributing 50 percent or more to 

facility-wide individual cancer risk of 1-in1 million or more

64 

Chronic 

Non-cancer 

Risk

Maximum facility-wide chronic non-cancer 

TOSHI 3 

Number of facilities with facility-wide 

maximum non-cancer TOSHI of 1 or more 3 

Number of wood furniture manufacturing 

operations contributing 50 percent or more to 

facility-wide maximum non-cancer TOSHI of 1 

or more

0 

 The maximum individual cancer risk from all HAP emissions 

at a facility that contains sources subject to the Wood 

Furniture Manufacturing MACT standards is estimated to be 100-

in-1 million. Of the 385 facilities included in this analysis, 

1 has a facility-wide maximum individual cancer risk of 100-in-1 

million or greater. At this facility, the wood furniture 

manufacturing operations contribute approximately 1 percent to 
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these facility-wide risks. Based on the data we have, the 

emissions source driving this higher cancer risk is a boiler, 

which is subject to the proposed Boiler NESHAP (see 75 FR 32006, 

June 4, 2010) which is scheduled to be finalized in the near 

future. 

 There are 74 facilities with facility-wide maximum 

individual cancer risks of 1-in-1 million or greater. Of these 

74 facilities, 64 have wood furniture manufacturing operations 

that contribute greater than 50 percent or greater to the 

facility-wide risks. The facility-wide cancer risks at most of 

these 74 facilities are primarily driven by emissions of ethyl 

benzene from wood furniture manufacturing operations. 

 The facility-wide maximum individual chronic non-cancer 

TOSHI is estimated to be 3. Of the 385 facilities included in 

this analysis, 3 have facility-wide maximum chronic non-cancer 

TOSHI values of 1 or greater. Of these 3 facilities, no 

facility had wood furniture manufacturing operations that 

contributed greater than 50 percent or greater to these 

facility-wide risks. The chronic non-cancer risks at these 

facilities are primarily driven by emissions of manganese and 

acrolein from boilers. 

c. Demographic Risk Analysis Results.

 The results of the demographic analyses performed to 

investigate the distribution of cancer risks at or above 1-in-1 
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million to the surrounding population are summarized in Table 

B.3 below. These results, for various demographic groups, are 

based on actual emissions levels for the population living 

within 50 km of the facilities. 

Table B.3. Wood Furniture Manufacturing Operations Demographic 

Risk Analysis Results 

Population w/ cancer risk greater than 1 

in a million due to... 

Nationwide Source Category HAP 

emissions 

Facility-wide HAP 

emissions 

Total 

population 

285,000,000 20,000 26,000 

Race by percent 

White 75 63 65 

All Other Races 25 37 35 

Race by percent 

White 75 63 65 

African 

American 12 13 17 

Native American 0.9 0.7 0.6 

Other and 

Multiracial 12 23 17 

Ethnicity by percent 

Hispanic 14 34 24 

Non-Hispanic 86 66 76 

Income by percent 

Below poverty 13 16 16 

Above poverty 87 84 84 

Education by percent 

Over 25 and 

without high 

school diploma 

13 19 19 

Over 25 and 

with a high 

school diploma 

87 81 81 

 The results of the Wood Furniture Manufacturing Operations 

source category demographic analysis indicates that there are 

20,000 people exposed to a cancer risk greater than or equal to 
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1-in-1 million based HAP on emissions from the source category. 

Of this population, an estimated 37 percent can be classified as 

a minority (listed as “All Other Races” in the table above), 

including 13 percent in the “African American” demographic 

group, and 23 percent in the “Other and Multiracial” demographic 

group), 34 percent are included in the “Hispanic” demographic 

group, 16 percent are included in the “Below Poverty” level 

demographic group, and 19 percent are included in the “Over 25 

and Without High School Diploma” demographic group. These 

percentages all appear to be somewhat higher than the respective 

percentages for these demographic groups across the United 

States. The table also shows that there are approximately 

26,000 people exposed to an estimated cancer risk greater than 

or equal to 1-in-1 million based on facility-wide emissions. Of 

this population, the results of the facility-wide demographic 

analysis indicated that the percentages are higher than 

nationwide percentages for those included in the “African 

American,” “Other and Multiracial,” “Hispanic,” “Below Poverty” 

level,” and the “Over 25 and Without High School Diploma” 

demographic groups. 

4. What are our proposed decisions on risk acceptability and 

ample margin of safety?

a. Risk Acceptability. 
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 As noted in section III.B of this preamble, we weigh all 

health risk factors and measures in our risk acceptability 

determination, including cancer risks to the individual most 

exposed, risk estimation uncertainty, and other health 

information. For the Wood Furniture Manufacturing Operations 

source category, the risk analysis we performed indicates that 

the cancer risks to the individual most exposed could be as high 

as 20-in-1 million due to actual emissions and as high as 40-in1 million due to MACT-allowable emissions. These values are 

considerably less than 100-in-1 million, which is the 

presumptive limit of acceptability. The risk analysis also 

shows low cancer incidence (1 case in every 200 years), no 

potential for adverse environmental effects or human health 

multi-pathway effects, and that chronic non-cancer health 

impacts are unlikely. 

 When estimated maximum one-hour peak emissions estimates 

for speciated glycol ethers (i.e., propyl cellosolve) are 

compared to the REL for EGME (used as a surrogate for propyl 

cellosolve), the assessment indicates that a maximum acute noncancer HQ as high as 10 could occur at one facility. Eight 

facilities (or 2 percent of the total) had an estimated HQ 

greater than 1. All other facilities modeled had HQs less than 

1. Nevertheless, exposures above the REL do not necessarily 

indicate that adverse effects will occur. There are no other 
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appropriate acute reference values available for glycol ethers 

that may be used to assess acute risks for glycol ethers. 

 When estimated one-hour peak emissions estimates for 

formaldehyde are compared to the formaldehyde REL, the 

assessment indicates a maximum acute non-cancer HQ as high as 7 

could occur. Eleven facilities (or 3 percent of the total) had 

an estimated HQ greater than 1 for formaldehyde. All other 

facilities modeled had HQs less than 1. Although the REL is 

considered protective and exposures above the REL do not 

necessarily indicate that adverse effects will occur, the AEGL-1 

and ERPG-1 are levels that may be associated with mild, but 

reversible, adverse effects. The maximum acute HQ for 

formaldehyde based on an AEGL-1 or ERPG-1 value is 0.35. 

 However, we also note that between these two sets of values 

(the REL and the AEGL-1 for formaldehyde) are occupational 

guideline ceiling values for short excursions in exposure 

developed by the American Conference of Governmental Industrial 

Hygienists (ACGIH)20 and the National Institutes for Occupational 

Safety and Health (NIOSH)21. These values are designated as “not 

to be exceeded at any time” (ACGIH value of 0.37 mg/m3

) or for 

any 15 minute period in a work day (NIOSH value of 0.12 mg/m3

). 

These values indicate a potential concern for short duration 

exposures in healthy workers that are at or near the estimated 

maximum acute exposure for the general population for this 
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source category (0.39 mg/m3). Additionally, we note that this 

maximum acute exposure is close to an Air Quality Guideline 

value that was developed for Europe by the World Health 

Organization22 for 30 minute exposures (0.1 mg/m3). 

 Nevertheless, as described earlier in this preamble, the 

acute assessment includes some conservative assumptions. 

Moreover, the RELs are protective and designed to protect the 

most sensitive individuals in the population by inclusion of 

margins of safety. Therefore, overall we believe that it is 

unlikely that HAP emissions from this source category pose 

significant acute inhalation risks. However, as described 

below, we still have concerns about the potential for some acute 

non-cancer risks. 

 While our additional analysis of facility-wide risks shows 

that there is 1 facility with a maximum facility-wide cancer 

risk of 100-in-1 million and 3 facilities with a maximum chronic 

non-cancer TOSHI of 1 or more, it also shows that wood furniture 

manufacturing operations do not drive these risks. Our 

additional analysis of the demographics of the exposed 

population indicates disparities in risks between demographic 

groups may exist; however, the overall risks are not high and 

the total number of people exposed to cancer risks of 1-in-1 

million or greater due to emissions from the source category is 

relatively low (20,000). 
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 EPA has weighed the various health measures and factors and 

uncertainties discussed above and in section IV.A.7 of this 

preamble, and is proposing that the risks from the Wood 

Furniture Manufacturing Operations source category are 

acceptable. We are proposing that the risks are acceptable 

after weighing concerns about possible acute non-cancer risks, 

especially acute non-cancer risks due to formaldehyde (acute HQ 

as high as 7) and glycol ethers (acute HQ as high as 10), and 

uncertainties in the emissions data as described above. We have 

considered these HAPs further under the ample margin of safety 

analyses, as described below, and are seeking data and comments 

to help us refine the assessments. 

b. Ample Margin of Safety. 

 Although we are proposing that the risks from the Wood 

Furniture Manufacturing Operations source category are 

acceptable, risk estimates for some individuals in the exposed 

population are above 1-in-1 million, and there is some potential 

for acute non-cancer effects. Consequently, we considered 

whether the Wood Furniture MACT standards provide an ample 

margin of safety. In this analysis, we investigated available 

emissions control options that might reduce the risks associated 

with emissions from the Wood Furniture Manufacturing Operations 

source category and considered this information along with all 
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of the health risks and other health information considered in 

the risk acceptability determination. 

i. Emissions Control Options. 

 We evaluated the emissions reductions and cost associated 

with various control options for the Wood Furniture 

Manufacturing Operations source category. One option would 

require lower VOHAP content in wood furniture coatings, which we 

estimate could reduce HAP emissions from this source category by 

up to 56 TPY from the estimated baseline level of 5,900 TPY.21

The estimated capital and annualized costs for this option would 

be $12,200,000 and $2,800,000, respectively. We estimate the 

cost-effectiveness would be about $30,000 per ton of HAP 

emissions reduced. We estimate this requirement to lower VOHAP 

content from wood furniture coatings would not appreciably 

reduce the maximum lifetime individual cancer risk, the maximum 

chronic non-cancer TOSHI value, or the maximum acute non-cancer 

TOSHI value. These values would remain at about 20-in-1 million 

for the maximum lifetime individual cancer risk, 0.4 for the 

maximum chronic non-cancer TOSHI value, and 10 for the maximum 

 

21 We estimate that lower-VOHAP coatings could be applied nationwide 

for the Wood Furniture Manufacturing Operations source category 

because the coatings are applied inside buildings at the facilities 

and the external temperature is not a limiting factor. 
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acute HQ value.22 Table B.5 summarizes the nationwide costs and 

cost-effectiveness of this option. 

Table B.5. Lower VOC Coating Limits for Wood Furniture 

Manufacturing Operations – Costs and Risk Reductions 

Control 

Option 

Number 

of 

Affected 

Facilit

ies 

Emission 

Reduction 

(TPY) 

Capital 

Costs 

($milli

on) 

Annualized 

Costs ($

million/

yr) 

Costeffecttiveness

($/ton) 

Max MIR 

After 

Control 

(in 1 

million) 

Max 

TOSHI 

After 

Control

Max 

Acute 

HQ 

After 

Control

Lower 

VOC 

coating 

limits 

406 56 $12.2 $2.8 $30,000 20 0.4 10 

 Another potential emissions reduction option involving an 

RTO add-on control device was investigated but found not to be 

feasible for implementation by the majority of the facilities in 

the source category. This control technology is discussed below 

in section IV.B.5 of this preamble. 

 A third emissions reduction option is to limit formaldehyde 

emissions by restricting formaldehyde use to 400 pounds per 

rolling 12 month period, or if a control device is used, to an 

amount adjusted from 400 pounds per rolling 12 month period 

based on the overall control efficiency of the control system. 

The limit would apply to wood furniture coatings and contact 

 

22 We estimate this requirement to lower VOHAP content from wood 

furniture coatings would reduce the maximum lifetime individual cancer 

risk and the maximum chronic non-cancer TOSHI value by approximately 1 

percent. However, as the maximum individual risk values are presented 

with one significant digit due to the precision of the data used to 

estimate these values, the risk values would still be presented as 20 

for the maximum individual cancer risk, 0.4 for the maximum individual 

non-cancer TOSHI, and 10 for the maximum acute HQ value. 
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adhesives. This emissions level is currently included in Table 

5 of the Wood Furniture Manufacturing Operations MACT standards 

as part of the work practice requirement to have a Formulation 

Assessment Plan for finishing operations. The usage level 

provided in table 5 of the Wood Furniture Manufacturing 

Operations MACT standards is 0.2 tons per year. Under the 

current Wood Furniture MACT standards, if a facility’s annual 

usage of formaldehyde exceeds its baseline level, the owner or 

operator of the facility provides a written notification to the 

permitting authority describing the amount of the increase and 

explains the reasons for exceedance of the baseline level. If 

the exceedance is no more than 15% above the baseline, or if 

usage is below the level in Table 5, then no further explanation 

is required. See 40 CFR 63.803(l). This third option would 

change the formaldehyde usage level in the existing Wood 

Furniture Operations MACT standards to a limit not to be 

exceeded at any time. Based on the updated dataset described in 

section V.B.2, 39 of the 385 facilities use (and emit) more than 

400 pounds per rolling 12 month period of formaldehyde. By 

setting a usage limit of 400 pounds per rolling 12 month period, 

the formaldehyde emissions from these 39 facilities will be 

reduced from 20.125 TPY to 10.665 TPY, a 9.46 TPY or 47 percent 

reduction. 
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 As described in the risk assessment section above, we 

estimate that formaldehyde emissions from 11 facilities (about 3 

percent) result in acute HQ greater than 1, and, therefore, may 

pose the potential for acute non-cancer risks. These 11 

facilities are among the 39 facilities that use and emit 

formaldehyde in excess of 400 pounds per year. Moreover, 

formaldehyde emissions from these facilities also drive the 

maximum lifetime individual cancer risks. Therefore, reductions 

in formaldehyde emissions will reduce these risks. We estimate 

that limiting formaldehyde use to no more than 400 pounds per 

rolling 12 month period will reduce the maximum acute HQ value 

based on the REL for formaldehyde from 7 to 3, and will reduce 

the maximum lifetime individual cancer risk from 20-in-1 million 

to approximately 10-in-1 million, both based on the actual 

emissions level. 

 There are many coatings and adhesives available from 

several suppliers that contain no or low quantities of 

formaldehyde and that are approximately equivalent in cost to 

the coatings and adhesives that contain formaldehyde. Many 

facilities currently use these no- or low-formaldehyde coatings 

and adhesives. Based on our data, the wood furniture 

manufacturing operations at the facilities using more than 400 

pounds per rolling 12 month period of formaldehyde are similar 

to operations at facilities currently using less than 400 pounds 
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per rolling 12 month period of formaldehyde. Therefore, we 

believe it is feasible for the remaining facilities (including 

the 11 facilities with HQ greater than 1) to switch to coatings 

and adhesives containing no or low amounts of formaldehyde, at 

little or no extra cost, and reduce their overall usage to no 

more than 400 pounds per rolling 12 month period. However, 

facilities would also have the option to control formaldehyde 

emissions using an add-on control device. Also associated with 

this option are recordkeeping and reporting requirements for the 

formaldehyde content of finishing materials and contact 

adhesives, which are not required by the current Wood Furniture 

Operations MACT standards. 

ii. Ample Margin of Safety Evaluation

In accordance with the approach established in the Benzene 

NESHAP, EPA weighed all health risk measures and information 

considered in the risk acceptability determination, along with 

the costs and economic impacts of emissions controls, 

technological feasibility, uncertainties, and other relevant 

factors, in making our ample margin of safety determination. We 

considered all of these factors in our ample margin of safety 

decision, and concluded that the costs of the add-on control 

options analyzed are not reasonable considering the emissions 

reductions and health benefits potentially achievable with the 

controls. However, as discussed above, we believe it is 
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feasible for facilities to limit formaldehyde use to less than 

400 pounds per rolling 12 month period by using no- or lowformaldehyde coatings and adhesives. This limit on formaldehyde 

use will also result in reduced emissions. As a result, we 

propose to establish a usage limit of 400 pounds per rolling 12 

month period for formaldehyde under section 112(f) of the CAA. 

We chose this level (of 400 pounds per rolling 12 month 

period) as the proposed usage limit since it is currently used 

in the MACT standard and since limiting emissions to this level 

will lead to significant reductions in the potential acute noncancer risks and cancer risks. This limit would reduce 

formaldehyde emissions by an estimated 9.46 TPY from the 

baseline level of 20.125 TPY. The estimated maximum lifetime 

individual cancer risk would be reduced to approximately 10-in-1 

million from the baseline of 20-in-1 million, and the estimated 

maximum acute HQ would be reduced from 7 to 3, based on the REL 

for formaldehyde. We estimate that there would be either no or 

minimal additional costs associated with this option, as the 

prices of low no- or low-formaldehyde coatings and adhesives are 

approximately equal to other coating and adhesive products 

containing larger quantities of formaldehyde. We believe this 

formaldehyde limit is technically feasible for all wood 

manufacturing operations and is a cost-effective measure to 

achieve emissions and health risk reductions. Therefore, we 
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propose that with this formaldehyde limit, the Wood Furniture 

Manufacturing Operations MACT standards provide an ample margin 

of safety to protect public health. Nevertheless, we are 

seeking comments on the proposed formaldehyde limit of 400 

pounds per rolling 12 month period, and whether there may be an 

alternative level that we should consider. In addition, we are 

seeking comments and data on the cost and feasibility of using 

coatings, solvents, adhesives, and any other products covered by 

the Wood Furniture Manufacturing Operations MACT standards that 

have lower HAP content, or contain less toxic HAP. 

While we propose that the Wood Furniture Manufacturing 

Operations MACT standards revised to include the 400 pounds per 

rolling 12 month period formaldehyde limit will provide an ample 

margin of safety to protect public health, we remain concerned 

that an acute HQ of up to 10 may occur due to emissions of 

glycol ethers. The potential risk reduction options identified 

would not appreciably reduce emissions or the potential acute 

risks associated with glycol ethers. Therefore, we are seeking 

comments and data regarding the use of glycol ethers in wood 

furniture manufacturing operations. This information includes 

the quantities of coatings and adhesives used (TPY), the 

speciated glycol ethers content in these products; whether the 

use of these products is in the kitchen cabinet, business 

furniture, or home furnishings sector; and the availability and 
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feasibility of using coatings and adhesive products with a lower 

content of glycol ethers. 

5. What are our proposed decisions on the technology review?

We evaluated developments in practices, processes, and 

control technologies applicable to the Wood Furniture 

Manufacturing Operations source category. This included an 

internet search, a search of the RBLC Clearinghouse, a review of 

relevant subsequently developed regulations, and contacts with 

industry. We found 1 advance in add-on control technology since 

the Wood Furniture Manufacturing Operations MACT standards were 

promulgated, we have determined that there are more stringent 

VOC-based coatings limits for wood furniture manufacturing 

facilities in 1 area of California, and we have found that fewer 

conventional spray guns are in use. For more detail, see the 

memorandum Developments in Practices, Processes, and Control 

Technologies, dated August 24, 2010, in the docket for this 

action that describes the technology review for the Wood 

Furniture Manufacturing Operations source category. 

 With regard to add-on technology, we identified 1 facility 

in Indiana that manufactures kitchen cabinets and uses an RTO to 

control spray booth emissions from its wood furniture 

manufacturing operations. The facility coats flat panels using 

an automated process with high speed lines. We estimate costeffectiveness of the RTO system at this facility to be $20,000 
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per ton of HAP reduced. 

Nationwide, we estimate that fewer than 5 facilities 

manufacture wood furniture using automated, high speed lines, 

and could install this type of add-on control device. 

Therefore, the RTO control technology is not applicable across 

the entire wood furniture source category. The estimated 

emissions reduction, based on these 5 facilities, is 98 tons of 

HAP per year. The cost to treat low-HAP concentration, high 

volume air streams routed to the RTO is estimated to be $20,000 

per ton of HAP reduced, and is considered economically 

prohibitive when compared to the amount of emissions reduced. 

Based on per facility sales, we determined that this option is 

not affordable. The cost as a percentage of revenues was 

estimated to be 73 percent or greater. Additional information 

on the affordability of controls is discussed in the memorandum 

Affordability of Lower VOHAP Coatings and Add-on Controls for 

Wood Furniture Manufacturing Operations, dated October 28, 2010, 

in the docket for this action. The large amount of fuel 

required for this type of add-on control is considered cost 

prohibitive and the fuel produces NOx emissions, a by-product of 

combustion. Finally, facilities must have a large physical land 

space to house the RTO. For these reasons, we determined that 

the installation of an RTO on spray booths is not a viable 

option for the wood furniture manufacturing industry. For more 
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detail, see the memo Cost Analyses for Control Options, dated 

September 27, 2010, in the docket for this action that describes 

the cost analysis for the Wood Furniture Manufacturing 

Operations source category. 

In our review of developments in practices, processes, and 

control technologies, we identified the Bay Area Air Quality 

Management District in California as having adopted more 

stringent VOC coating emission limits than the volatile HAP 

coating emission limits in the Wood Furniture MACT standards. 

However, the California limits came into effect in July 2010, 

and we do not have data to demonstrate whether the facilities in 

this area have been able to achieve compliance with these limits 

or the measures they may be taking to comply with them. The 

California limits are VOC-based, and coating limits in the Wood 

Furniture MACT standard are VOHAP-based. We do not have 

information on the exact correlation between lower-VOC content 

and lower-HAP content in coatings (e.g., if lower VOC content 

leads to lower HAP content). We believe that coatings used in 

the industry average approximately 50 percent HAP and 50 percent 

non-HAP VOC, however the HAP and non-HAP VOC content varies 

between specific coating products.23 Using this assumed average 

HAP VOC content, we estimate that by adopting the California VOC 

 

23 Case Studies comparing HAP and VOC content of wood furniture 

coatings at http://www.epa.gov/ttn/atw/wood/low/casebyco.html. 
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limits, the industry-wide emission reduction would be 56 tons of 

HAP per year at a cost of $30,000 per ton of HAP reduced for the 

approximately 406 facilities in the source category. Based on 

per facility sales, we determined that this option may be 

affordable. The cost as a percentage of revenues was estimated 

to be less than 4 percent. Additional information on the 

affordability of lower VOHAP coatings is discussed in the 

memorandum Affordability of Lower VOHAP Coatings and Add-on 

Controls for Wood Furniture Manufacturing Operations, dated 

October 28, 2010, in the docket for this action. Due to the 

limited emissions reduction potential and the cost 

effectiveness, we are not proposing to require lowering the 

VOHAP content in coatings in the MACT standards. However, we 

solicit comments and data regarding lower VOHAP coatings and 

information on the types of wood furniture manufacturing coating 

operations for which they may be applicable. 

When the Wood Furniture MACT standards were promulgated, 

conventional guns were used extensively by industry. Since 

promulgation, the use of conventional guns in the wood furniture 

industry has diminished drastically, and they are now rarely 

used. We are proposing to remove the provision in the Wood 

Furniture MACT standards that allows the use of conventional air 

spray guns; thereby codifying current industry practice. This 

proposed action will prevent future increases in the use of 
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conventional spray guns, which have lower transfer efficiencies 

and higher emissions than other spray gun types. We believe 

that air assisted airless spray guns, which have transfer 

efficiencies approximately 10 percent higher than conventional 

spray guns, can be used in all cases where conventional air 

spray guns were once used. We anticipate no changes in coating 

formulation will be needed to use air assisted airless spray 

guns rather than conventional spray guns. As conventional spray 

guns are now rarely used, we do not estimate there will be any 

appreciable emission reductions as a result of this proposed 

provision. 

The associated cost of discontinuing use of conventional 

air spray guns is believed to be minimal. Overall, we do not 

believe many conventional guns are in use and need to be 

replaced. However, for the remaining conventional spray guns, 

we also estimate there to be a net cost savings by switching to 

air assisted airless spray guns. While an air assisted airless 

spray gun is estimated to cost approximately $300 more than a 

conventional spray gun, the 10 percent increase in transfer 

efficiency results in an equally lower coating use and cost 

savings. Over time, and depending upon the frequency of use, 

the amount saved in coating costs should surpass the increased 

expense of the gun. In addition, the expected life of a 

conventional spray gun is estimated to be, at most, two years. 
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The compliance period of the rule is 3 years; therefore, no air 

assisted airless guns would be required to replace a 

conventional spray gun before the end of its useful life as a 

result of the revised Wood Furniture MACT standards. For more 

details, see Impacts of Prohibiting the Use of Conventional 

Spray Guns in the Wood Furniture Manufacturing Operations Source 

Category, dated October 19, 2010 in the docket for this action. 

In summary, as a result of the technology review under 

section 112(d)(6) of the CAA, we are proposing to prohibit the 

use of conventional spray guns by facilities regulated by the 

Wood Furniture Manufacturing Operations MACT standard.

6. What other actions are we proposing?

We are proposing the elimination of the SSM exemption in 

the Wood Furniture Manufacturing Operations MACT standards. 

Consistent with Sierra Club v. EPA, EPA is proposing standards 

in this rule that apply at all times. We are proposing several 

revisions to 40 CFR part 63, subpart JJ regarding the standards 

that apply during periods of SSM. Specifically, we are 

proposing to revise Table 1 to indicate that the requirements in 

40 CFR 63.6(e)(1)(i) of the General Provisions do not apply. 

Section 63.6(e)(1)(i) requires owners or operators to act 

according to the general duty to “operate and maintain any 

affected source, including associated air pollution control 

equipment and monitoring equipment, in a manner consistent with 
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safety and good air pollution control practices for minimizing 

emissions.” We are separately proposing to incorporate this 

general duty to minimize emissions into section 63.802(c). 

Section 40 CFR 63.6(e)(3) also requires the owner or operator of 

an affected source to develop a written SSM plan. We are 

proposing to remove the SSM plan requirement. We are also 

proposing to add SSM-associated reporting and recordkeeping 

requirements in 40 CFR 63.806 and 63.807 to require reporting 

and recordkeeping for periods of malfunction, add a requirement 

in 40 CFR 63.805 to require performance tests to be performed 

under normal operating conditions, and to revise Table 1 to 

specify that 40 CFR 63.6(e)(1)(i) and (ii), 63.6(e)(3), 

63.6(f)(1), 40 CFR 63.7(e)(1), 40 CFR 63.8(c)(1)(i) and (iii), 

and the last sentence of 63.8(d)(3), 40 CFR 63.10(b)(2)(i),(ii), 

(iv), and (v), 63.10(c)(10), (11), and (15), and 63.10(d)(5) of 

the General Provisions do not apply. In addition, as explained 

above, we are proposing to add an affirmative defense to civil 

penalties for exceedances of emission limits caused by 

malfunctions, as well as criteria for establishing the 

affirmative defense in section 63.800. EPA has attempted to 

ensure that we have not included in the proposed regulatory 

language any provisions that are inappropriate, unnecessary, or 

redundant in the absence of the SSM exemption. We are 

specifically seeking comment on whether there are any such 
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provisions that we have inadvertently incorporated or 

overlooked. 

VI. Proposed Action 

A. What actions are we proposing as a result of the technology 

reviews?

For the Shipbuilding and Ship Repair (surface coating) 

Operations source category, we have determined that there have 

been no developments in practices, processes, or control 

technologies since the promulgation of the MACT standards that 

are feasible for the facilities in these source categories to 

implement at this time, and we are proposing that it is not 

necessary to revise the existing MACT requirements based on our 

CAA section 112(d)(6) review. 

For the Wood Furniture Manufacturing Operations source 

category, we are proposing to amend the rule to prohibit the use 

of conventional spray guns. 

B. What actions are we proposing as a result of the residual 

risk reviews?

 For the Shipbuilding and Ship Repair (surface coating) 

Operations source category, we propose that the MACT standards 

provide an ample margin of safety to protect public health and 

prevent adverse environmental effects. Thus, we are proposing 

to re-adopt these standards for the purpose of meeting the 

requirements of CAA section 112(f)(2). 
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 For the Wood Furniture Manufacturing Operations source 

category, to provide an ample margin of safety to protect public 

health and prevent adverse environmental effects for the purpose 

of meeting the requirements of CAA section 112(f)(2), we propose 

to limit usage of formaldehyde in coatings and contact adhesives 

to 400 pounds per rolling 12 month period, or if a control 

device is used, to 400 pounds per rolling 12 month period of 

formaldehyde taking into account the overall control efficiency 

of the control device. 

C. What other actions are we proposing? 

We propose to amend the Shipbuilding and Ship Repair 

(surface coating) Operations and Wood Furniture Manufacturing 

Operations MACT standards to remove the language that exempts 

facilities from the emissions standards that would otherwise be 

applicable during periods of SSM, and to add an affirmative 

defense to civil penalties for exceedances of emission standards 

caused by malfunctions. These changes are being made to ensure 

these rules are consistent with the court’s ruling in Sierra 

Club v. EPA, 551 F.3d 1019 (D.C. Cir. 2008). 

VII. Request for Comments 

We are soliciting comments on all aspects of this proposed 

action. All comments received during the comment period will be 

considered. In addition to general comments on the proposed 

actions, we are also interested in any additional data that may 
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help to reduce the uncertainties inherent in the risk 

assessments. We are specifically interested in receiving 

corrections to the datasets used for risk modeling. Such data 

should include supporting documentation in sufficient detail to 

allow characterization of the quality and representativeness of 

the data or information. Please see the following section for 

more information on submitting data. We are also interested in 

comments and information regarding add-on controls and any 

lower-HAP coatings available for use by these source categories 

and the types of coating activities for which they could be 

used. We are also seeking comments on the potential for lower 

HAP content in other products used in the Wood Furniture 

Production industry, including glues, resins and adhesives. 

VIII. Submitting Data Corrections 

The facility-specific data used in the source category risk 

analyses, facility-wide analyses, and demographic analyses for 

each source category subject to this action are available for 

download on the RTR Web Page at 

http://www.epa.gov/ttn/atw/rrisk/rtrpg.html. These data files 

include detailed information for each HAP emissions release 

point at each facility included in the source category and all 

other HAP emissions sources at these facilities (facility-wide 

emissions sources). However, it is important to note that the 

source category risk analysis included only those emissions 
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tagged with the MACT code associated with the source category 

subject to the risk analysis. 

If you believe the data are not representative or are 

inaccurate, please identify the data in question, provide your 

reason for concern, and provide any “improved” data that you 

have, if available. When you submit data, we request that you 

provide documentation of the basis for the revised values to 

support your suggested changes. To submit comments on the data 

downloaded from the RTR Web page, complete the following steps: 

1) Within this downloaded file, enter suggested revisions 

to the data fields appropriate for that information. The data 

fields that may be revised include the following: 

Data Element Definition 

Control Measure Are control measures in place? 

(yes or no) 

Control Measure Comment 

Select control measure from 

list provided, and briefly 

describe the control measure 

Delete Indicate here if the facility 

or record should be deleted 

Delete Comment Describes the reason for 

deletion 

Emission Calculation 

Method Code For Revised 

Emissions 

Code description of the method 

used to derive emissions. For 

example, CEM, material 

balance, stack test, etc. 

Emission Process Group 

Enter the general type of 

emission process associated 

with the specified emission 

point 
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Data Element Definition 

Fugitive Angle 

Enter release angle (clockwise 

from true North); orientation 

of the y-dimension relative to 

true North, measured positive 

for clockwise starting at 0 

degrees (maximum 89 degrees) 

Fugitive Length 

Enter dimension of the source 

in the east-west (x-) 

direction, commonly referred 

to as length (ft) 

Fugitive Width 

Enter dimension of the source 

in the north-south (y-) 

direction, commonly referred 

to as width (ft) 

Malfunction Emissions Enter total annual emissions 

due to malfunctions (TPY) 

Malfunction Emissions Max 

Hourly 

Enter maximum hourly 

malfunction emissions here 

(lb/hr) 

North American Datum 

Enter datum for 

latitude/longitude coordinates 

(NAD27 or NAD83); if left 

blank, NAD83 is assumed 

Process Comment Enter general comments about 

process sources of emissions 

REVISED Address Enter revised physical street 

address for MACT facility here 

REVISED City Enter revised city name here 

REVISED County Name Enter revised county name here 

REVISED Emission Release 

Point Type 

Enter revised Emission Release 

Point Type here 

REVISED End Date Enter revised End Date here 

REVISED Exit Gas Flow Rate Enter revised Exit Gas 

Flowrate here (ft3

/sec) 

REVISED Exit Gas 

Temperature 

Enter revised Exit Gas 

Temperature here (F) 

REVISED Exit Gas Velocity Enter revised Exit Gas 

Velocity here (ft/sec) 

REVISED Facility Category 

Code 

Enter revised Facility 

Category Code here, which 

indicates whether facility is 

a major or area source 

REVISED Facility Name Enter revised Facility Name 

here 
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Data Element Definition 

REVISED Facility Registry 

Identifier 

Enter revised Facility 

Registry Identifier here, 

which is an ID assigned by the 

EPA Facility Registry System 

REVISED HAP Emissions 

Performance Level Code 

Enter revised HAP Emissions 

Performance Level here 

REVISED Latitude Enter revised Latitude here 

(decimal degrees) 

REVISED Longitude Enter revised Longitude here 

(decimal degrees) 

REVISED MACT Code Enter revised MACT Code here 

REVISED Pollutant Code Enter revised Pollutant Code 

here 

REVISED Routine Emissions Enter revised routine 

emissions value here (TPY) 

REVISED SCC Code Enter revised SCC Code here 

REVISED Stack Diameter Enter revised Stack Diameter 

here (ft) 

REVISED Stack Height Enter revised Stack Height 

here (Ft) 

REVISED Start Date Enter revised Start Date here 

REVISED State Enter revised State here 

REVISED Tribal Code Enter revised Tribal Code here 

REVISED Zip Code Enter revised Zip Code here 

Shutdown Emissions Enter total annual emissions 

due to shutdown events (TPY) 

Shutdown Emissions Max 

Hourly 

Enter maximum hourly shutdown 

emissions here (lb/hr) 

Stack Comment Enter general comments about 

emission release points 

Startup Emissions Enter total annual emissions 

due to startup events (TPY) 

Startup Emissions Max 

Hourly 

Enter maximum hourly startup 

emissions here (lb/hr) 

Year Closed Enter date facility stopped 

operations 

2. Fill in the commenter information fields for each 

suggested revision (i.e., commenter name, commenter 

organization, commenter e-mail address, commenter phone number, 

and revision comments). 
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3. Gather documentation for any suggested emissions 

revisions (e.g., performance test reports, material balance 

calculations, etc.). 

4. Send the entire downloaded file with suggested 

revisions in Microsoft® Access format and all accompanying 

documentation to Docket ID Number EPA-HQ-OAR-2010-0786 (through 

1 of the methods described in the ADDRESSES section of this 

preamble). To expedite review of the revisions, it would also 

be helpful if you submitted a copy of your revisions to the EPA 

directly at RTR@epa.gov in addition to submitting them to the 

docket. 

5. If you are providing comments on a facility with 

multiple source categories, you need only submit 1 file for that 

facility, which should contain all suggested changes for all 

source categories at that facility. We request that all data 

revision comments be submitted in the form of updated Microsoft® 

Access files, which are provided on the 

http://www.epa.gov/ttn/atw/rrisk/rtrpg.html Web page. 

IX. Statutory and Executive Order Reviews

A. Executive Order 12866: Regulatory Planning and Review

Under Executive Order 12866 (58 FR 51735, October 4, 1993), 

this action is a significant regulatory action because it raises 

novel legal and policy issues. Accordingly, EPA submitted this 

action to the Office of Management and Budget (OMB) for review 
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under Executive Order 12866 and any changes made in response to 

OMB recommendations have been documented in the docket for this 

action. 

B. Paperwork Reduction Act

The information collection requirements in this proposed 

rule have been submitted for approval to the Office of 

Management and Budget (OMB) under the Paperwork Reduction Act, 

44 U.S.C. 3501 et seq. The Information Collection Request (ICR) 

document prepared by EPA has been assigned EPA ICR number 

1716.07. 

The proposed revisions to the SSM provisions for the 

standards being amended with today’s proposed rule will reduce 

the reporting burden associated with having to prepare and submit 

an SSM report. However, we are proposing new paperwork 

requirements to the Wood Furniture Manufacturing Operations MACT 

standards. The proposed standards would require regulated 

entities to submit reports and keep records in accordance with 

Section V.B. We are not proposing any new paperwork requirements 

for the Shipbuilding and Ship Repair (Surface Coating) 

Operations source category. 

We estimate that there are approximately 406 regulated 

entities currently subject to subpart JJ and that approximately 

150 of those entities will be subject to the proposed rule 

involving the 12-month rolling average formaldehyde limit. New 

and existing regulated entities would have no capital costs 
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associated with the information collection requirements in the 

proposed rule. 

The estimated recordkeeping and reporting burden after the 

effective date of the proposed rule is estimated to be 4,140 

labor hours at a cost of $447,741.00. This estimate includes the 

cost of reporting, including reading instructions, and 

information gathering. Recordkeeping cost estimates include 

reading instructions, planning activities, calculation of 

formaldehyde usage, and maintenance of 12-month rolling data. 

The average hours and cost per regulated entity would be 10 

hours and $1,100.00. About 406 facilities would respond per 

year. Burden is defined at 5 CFR 1320.3(b). 

An agency may not conduct or sponsor, and a person is not 

required to respond to, a collection of information unless it 

displays a currently valid OMB control number. The OMB control 

numbers for EPA's regulations in 40 CFR are listed in 40 CFR 

part 9. 

To comment on the Agency's need for this information, the 

accuracy of the provided burden estimates, and any suggested 

methods for minimizing respondent burden, EPA has established a 

public docket for this rule, which includes this ICR, under 

Docket ID number EPA-HQ-OAR-2010. Submit any comments related 

to the ICR to EPA and OMB. See ADDRESSES section at the 

beginning of this notice for where to submit comments to EPA. 
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Send comments to OMB at the Office of Information and Regulatory 

Affairs, Office of Management and Budget, 725 17th Street, NW, 

Washington, DC 20503, Attention: Desk Office for EPA. Since OMB 

is required to make a decision concerning the ICR between 30 and 

60 days after [Insert date of publication in the Federal 

Register.], a comment to OMB is best assured of having its full 

effect if OMB receives it by [Insert date 30 days after 

publication in the Federal Register.]. The final rule will 

respond to any OMB or public comments on the information 

collection requirements contained in this proposal. 

C. Regulatory Flexibility Act

The Regulatory Flexibility Act (RFA) generally requires an 

agency to prepare a regulatory flexibility analysis of any rule 

subject to notice and comment rulemaking requirements under the 

Administrative Procedure Act or any other statute unless the 

agency certifies that the rule will not have a significant 

economic impact on a substantial number of small entities. 

Small entities include small businesses, small organizations, 

and small governmental jurisdictions. For purposes of assessing 

the impacts of today’s proposed rule on small entities, small 

entity is defined as: (1) A small business that is a small 

industrial entity as defined by the Small Business 

Administration’s (SBA) regulations at 13 CFR 121.201; (2) a 

small governmental jurisdiction that is a government of a city, 
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county, town, school district or special district with a 

population of less than 50,000; and (3) a small organization 

that is any not-for-profit enterprise which is independently 

owned and operated and is not dominant in its field. 

After considering the economic impacts of today’s proposed 

rule on small entities, I certify that this action will not have 

a significant economic impact on a substantial number of small 

entities. The costs associated with the proposed requirements 

in this proposed rule (i.e., the formaldehyde emissions limit 

and conventional spray gun prohibition) are negligible as 

discussed above. 

We continue to be interested in the potential impacts of 

the proposed rule on small entities and welcome comments on 

issues related to such impacts. 

D. Unfunded Mandates Reform Act

This proposed rule does not contain a federal mandate under 

the provisions of Title II of the Unfunded Mandates Reform Act 

of 1995 (UMRA), 2 U.S.C. 1531-1538 for State, local, or tribal 

governments or the private sector. The proposed rule would not 

result in expenditures of $100 million or more for State, local, 

and tribal governments, in aggregate, or the private sector in 

any 1 year. The proposed rule imposes no enforceable duties on 

any State, local or tribal governments or the private sector. 
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Thus, this proposed rule is not subject to the requirements of 

sections 202 or 205 of the UMRA. 

This proposed rule is also not subject to the requirements 

of section 203 of UMRA because it contains no regulatory 

requirements that might significantly or uniquely affect small 

governments because it contains no requirements that apply to 

such governments nor does it impose obligations upon them. 

E. Executive Order 13132: Federalism

This proposed rule does not have federalism implications. 

It will not have substantial direct effects on the States, on 

the relationship between the national government and the States, 

or on the distribution of power and responsibilities among the 

various levels of government, as specified in Executive Order 

13132. None of the facilities subject to this action are owned 

or operated by State governments, and, because no new 

requirements are being promulgated, nothing in this proposal 

will supersede State regulations. Thus, Executive Order 13132 

does not apply to this proposed rule. 

In the spirit of Executive Order 13132, and consistent with 

EPA policy to promote communications between EPA and State and 

local governments, EPA specifically solicits comment on this 

proposed rule from State and local officials. 

F. Executive Order 13175: Consultation and Coordination with 

Indian Tribal Governments
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Subject to the Executive Order 13175 (65 FR 67249, November 

9, 2000) EPA may not issue a regulation that has tribal 

implications, that imposes substantial direct compliance costs, 

and that is not required by statute, unless the federal 

government provides the funds necessary to pay the direct 

compliance costs incurred by tribal governments, or EPA consults 

with tribal officials early in the process of developing the 

proposed regulation and develops a tribal summary impact 

statement. EPA has concluded that this proposed rule will not 

have tribal implications, as specified in Executive Order 13175. 

It will not have substantial direct effect on tribal 

governments, on the relationship between the federal government 

and Indian tribes, or on the distribution of power and 

responsibilities between the Federal government and Indian 

tribes, as specified in Executive Order 13175. Thus, Executive 

Order 13175 does not apply to this action. 

EPA specifically solicits additional comment on this 

proposed action from tribal officials. 

G. Executive Order 13045: Protection of Children from 

Environmental Health Risks and Safety Risks

This proposed rule is not subject to Executive Order 13045 

(62 FR 19885, April 23, 1997) because it is not economically 

significant as defined in Executive Order 12866, and because the 

Agency does not believe the environmental health or safety risks 
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addressed by this action present a disproportionate risk to 

children. This action would not relax the control measures on 

existing regulated sources, and EPA’s risk assessments (included 

in the docket for this proposed rule) demonstrate that the 

existing regulations with the revisions proposed in this 

proposed rule will provide an ample margin of safety to protect 

public health. 

H. Executive Order 13211: Actions Concerning Regulations That 

Significantly Affect Energy Supply, Distribution, or Use

 This action is not a “significant energy action” as defined 

under Executive Order 13211, “Actions Concerning Regulations 

That Significantly Affect Energy Supply, Distribution, or Use” 

(66 FR 28355, May 22, 2001), because it is not likely to have 

significant adverse effect on the supply, distribution, or use 

of energy. This action will not create any new requirements for 

sources in the energy supply, distribution, or use sectors. 

I. National Technology Transfer and Advancement Act

 Section 12(d) of the National Technology Transfer and 

Advancement Act of 1995 (“NTTAA”), Public Law Number 104-113, 

12(d) (15 U.S.C. 272 note) directs EPA to use voluntary 

consensus standards in its regulatory activities unless to do so 

would be inconsistent with applicable law or otherwise 

impractical. Voluntary consensus standards are technical 

standards (e.g., materials specifications, test methods, 
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sampling procedures, and business practices) that are developed 

or adopted by voluntary consensus standards bodies. The NTTAA 

directs EPA to provide Congress, through OMB, explanations when 

the Agency decides not to use available and applicable voluntary 

consensus standards. 

 This proposed rulemaking does not involve technical 

standards. Therefore, EPA is not considering the use of any 

voluntary consensus standards. 

J. Executive Order 12898: Federal Actions to Address 

Environmental Justice in Minority Populations and Low-Income 

Populations

Executive Order 12898 (59 FR 7629, February 16, 1994) 

establishes federal executive policy on EJ. Its main provision 

directs federal agencies, to the greatest extent practicable and 

permitted by law, to make EJ part of their mission by 

identifying and addressing, as appropriate, disproportionately 

high and adverse human health or environmental effects of their 

programs, policies, and activities on minority populations and 

low-income populations in the United States. 

To examine the potential for any EJ issues that might be 

associated with each source category, we evaluated the 

distributions of HAP-related cancer and non-cancer risks across 

different social, demographic, and economic groups within the 

populations living near the facilities where these source 
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categories are located. The methods used to conduct demographic 

analyses for this rule are described in section IV.A of the 

preamble for this rule. The development of demographic analyses 

to inform the consideration of EJ issues in EPA rulemakings is 

an evolving science. The EPA offers the demographic analyses in 

today’s rulemaking as examples of how such analyses might be 

developed to inform such consideration, and invites public 

comment on the approaches used and the interpretations made from 

the results, with the hope that this will support the refinement 

and improve utility of such analyses for future rulemakings. 

For the demographic analyses, we focused on the populations 

within 50 km of any facility estimated to have exposures to HAP 

which result in cancer risks of 1-in-1 million or greater, or 

non-cancer HI of 1 or greater (based on the emissions of the 

source category or the facility, respectively). We examined the 

distributions of those risks across various demographic groups, 

comparing the percentages of particular demographic groups to 

the total number of people in those demographic groups 

nationwide. The results, including other risk metrics, such as 

average risks for the exposed populations, are documented in 

source category-specific technical reports in the docket for 

both source categories covered in this proposal. 

As described in the preamble, for the Shipbuilding and Ship 

Repair (Surface Coating) Operations and Wood Furniture 
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Manufacturing Operations MACT standard source categories, we 

propose that the existing MACT standards provide an ample margin 

of safety to protect public health and prevent adverse 

environmental effects with the revisions in this proposal. Our 

analyses also show that, for these source categories, there is 

no potential for an adverse environmental effect or human health 

multi-pathway effects, and that acute and chronic non-cancer 

health impacts are unlikely. Our additional analysis of 

facility-wide risks showed that the maximum facility-wide cancer 

and noncancer risks for both source categories are within the 

range of acceptable risks. EPA has determined that although 

there may be an existing disparity in HAP risks from these 

sources between some demographic groups, the risk levels are 

generally small and no demographic group is exposed to an 

unacceptable level of risk. The proposed rule would not relax 

the control measures on sources subject to the proposed 

regulated by the rule and, therefore, would not increase risks 

to any populations exposed to these sources. 
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National Emission Standards for Hazardous Air Pollutant 

Emissions: Shipbuilding and Ship Repair (Surface Coating) 

Operations; Wood Furniture Manufacturing Operations 

--Page 147 of 176 

 

List of Subjects in 40 CFR Part 63

 Environmental protection, Air pollution control, Reporting 

and recordkeeping requirements, Volatile organic compounds. 

____________________________ 

Dated: 

____________________________ 

Lisa P. Jackson, 

Administrator. 
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For the reasons stated in the preamble, the Environmental 

Protection Agency proposes to amend title 40, chapter I of the 

Code of Federal Regulations as follows: 

PART 63-–[AMENDED] 

1. The authority citation for part 63 continues to read 

as follows: 

Authority: 42 U.S.C. 7401 et seq. 

Subpart II-–[AMENDED] 

2. Section 63.781 is amended by revising paragraph (d) to 

read as follows:

§ 63.781 Applicability. 

* * * * * 

(d) If you are authorized in accordance with 40 CFR 

63.783(c) to use an add-on control system as an alternative 

means of limiting emissions from coating operations, in response 

to an action to enforce the standards set forth in this subpart, 

you may assert an affirmative defense to a claim for civil 

penalties for exceedances of such standards that are caused by 

malfunction, as defined in 40 CFR 63.2. Appropriate penalties 

may be assessed, however, if the respondent fails to meet its 

burden of proving all the requirements in the affirmative 

defense. The affirmative defense shall not be available for 

claims for injunctive relief. 

(1) To establish the affirmative defense in any action to 
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enforce such a limit, the owners or operators of facilities must 

timely meet the notification requirements in paragraph (d)(2) of 

this section, and must prove by a preponderance of evidence 

that: 

(i) The excess emissions: 

(A) Were caused by a sudden, short, infrequent, and 

unavoidable failure of air pollution control and monitoring 

equipment, process equipment, or a process to operate in a 

normal or usual manner; and 

(B) Could not have been prevented through careful planning, 

proper design or better operation and maintenance practices; and 

(C) Did not stem from any activity or event that could have 

been foreseen and avoided, or planned for; and 

(D) Were not part of a recurring pattern indicative of 

inadequate design, operation, or maintenance; and 

(ii) Repairs were made as expeditiously as possible when 

the applicable emission limitations were being exceeded. Offshift and overtime labor were used, to the extent practicable to 

make these repairs; and 

(iii) The frequency, amount and duration of the excess 

emissions (including any bypass) were minimized to the maximum 

extent practicable during periods of such emissions; and 

(iv) If the excess emissions resulted from a bypass of 
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control equipment or a process, then the bypass was unavoidable 

to prevent loss of life, severe personal injury, or severe 

property damage; and 

(v) All possible steps were taken to minimize the impact of 

the excess emissions on ambient air quality, the environment, 

and human health; and 

(vi) All emissions monitoring and control systems were kept 

in operation if at all possible; and 

(vii) Your actions in response to the excess emissions were 

documented by properly signed, contemporaneous operating logs; 

and 

(viii) At all times, the facility was operated in a manner 

consistent with good practices for minimizing emissions; and 

(ix) The owner or operator has prepared a written root 

cause analysis to determine, correct and eliminate the primary 

causes of the malfunction and the excess emissions resulting 

from the malfunction event at issue. The analysis shall also 

specify, using best monitoring methods and engineering judgment, 

the amount of excess emissions that were the result of the 

malfunction. 

(2) Notification. The owner or operator of the facility 

experiencing an exceedance of its emission limit(s) during a 

malfunction shall notify the Administrator by telephone or 
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facsimile transmission as soon as possible, but no later than 

two business days after the initial occurrence of the 

malfunction, if it wishes to avail itself of an affirmative 

defense to civil penalties for that malfunction. The owner or 

operator seeking to assert an affirmative defense shall also 

submit a written report to the Administrator within 30 days of 

the initial occurrence of the exceedance of the standard in this 

subpart to demonstrate, with all necessary supporting 

documentation, that it has met the requirements set forth in 

paragraph (d)(1) of this section. 

* * * * * 

3. Section 63.782 is amended by adding a definition for 

“affirmative defense” to read as follows: 

§63.782 Definitions. 

* * * 

Affirmative defense means, in the context of an enforcement 

proceeding, a response or a defense put forward by a defendant, 

regarding which the defendant has the burden of proof, and the 

merits of which are independently and objectively evaluated in a 

judicial or administrative proceeding. 

* * * * * 

4. Section 63.783 is amended by redesignating paragraphs 

(b)(1) and (b)(2) as (b)(2) and (b)(3) and adding a new 
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paragraph (b)(1) to read as follows: 

§63.783 Standards. 

* * * * * 

(b) * * * 

(1) At all times the owner or operator must operate and 

maintain any affected source, including associated air pollution 

control equipment and monitoring equipment, in a manner 

consistent with safety and good air pollution control practices 

for minimizing emissions. Determination of whether such 

operation and maintenance procedures are being used will be 

based on information available to the Administrator which may 

include, but is not limited to, monitoring results, review of 

operation and maintenance procedures, review of operation and 

maintenance records, and inspection of the source. 

* * * * * 

5. Section 63.785 is amended by adding paragraph (e) to 

read as follows: 

§63.785 Compliance procedures. 

 * * * * * 

(e) Continuous compliance requirements. You must 

demonstrate continuous compliance with the emissions standards 

and operating limits by using the performance test methods and 

procedures in §63.786 for each affected source. 
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(1) General requirements. 

(i) You must monitor and collect data, and provide a site 

specific monitoring plan, as required by §§63.785, 63.786 and 

63.787. 

(ii) Except for periods of monitoring system malfunctions, 

repairs associated with monitoring system malfunctions, and 

required monitoring system quality assurance or quality control 

activities (including, as applicable, calibration checks and 

required zero and span adjustments), you must operate the 

monitoring system and collect data at all required intervals at 

all times the affected source is operating, including periods of 

malfunction. Any period for which data collection is required 

and the operation of the CEMS is not otherwise exempt and for 

which the monitoring system is out-of-control and data are not 

available for required calculations constitutes a deviation from 

the monitoring requirements. 

(iii) You may not use data recorded during monitoring 

system malfunctions, repairs associated with monitoring system 

malfunctions, or required monitoring system quality assurance or 

control activities in calculations used to report emissions or 

operating levels. A monitoring system malfunction is any 

sudden, infrequent, not reasonably preventable failure of the 

monitoring system to provide valid data. Monitoring system 
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failures that are caused in part by poor maintenance or careless 

operation are not malfunctions. The owner or operator must use 

all the data collected during all other periods in assessing the 

operation of the control device and associated control system. 

6. Section 63.786 is amended by adding paragraph (e) to 

read as follows: 

§63.786 Test methods and procedures. 

* * * * * 

(e) For add-on control systems approved for use in limiting 

emissions from coating operations pursuant to §63.783(c), 

performance tests shall be conducted under such conditions as 

the Administrator specifies to the owner or operator based on 

representative performance of the affected source for the period 

being tested. Upon request, the owner or operator shall make 

available to the Administrator such records as may be necessary 

to determine the conditions of performance tests. 

* * * * * 

7. Section 63.788 is amended by adding paragraph (b)(5) 

and revising paragraph (c) to read as follows: 

§63.788 Recordkeeping and reporting requirements. 

* * * * * 

(b) * * * 

(5) Each owner or operator that receives approval pursuant 
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to §63.783(c) to use an add-on control system to control coating 

emissions shall maintain records of the occurrence and duration 

of each malfunction of operation (i.e., process equipment) or 

the required air pollution control and monitoring equipment. 

Each owner or operator shall maintain records of actions taken 

during periods of malfunction to minimize emissions in 

accordance with §63.783(b)(1), including corrective actions to 

restore malfunctioning process and air pollution control and 

monitoring equipment to its normal or usual manner of operation. 

 (c) Reporting requirements. Before the 60th day following 

completion of each 6-month period after the compliance date 

specified in §63.784, each owner or operator of an affected 

source shall submit a report to the Administrator for each of 

the previous 6 months. The report shall include all of the 

information that must be retained pursuant to paragraphs (b)(2) 

through (3) of this section, except for that information 

specified in paragraphs (b)(2)(i) through (ii), (b)(2)(v), 

(b)(3)(i)(A), (b)(3)(ii)(A), and (b)(3)(iii)(A). If a violation 

at an affected source is detected, the owner or operator of the 

affected source shall also report the information specified in 

paragraph (b)(4) of this section for the reporting period during 

which the violation(s) occurred. To the extent possible, the 

report shall be organized according to the compliance 
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procedure(s) followed each month by the affected source. If 

there was a malfunction during the reporting period, the report 

must also include the number, duration, and a brief description 

of each malfunction which occurred during the reporting period 

and which caused or may have caused any applicable emission 

limitation to be exceeded. The report must also include a 

description of actions taken by an owner or operator during a 

malfunction of an affected source to minimize emissions in 

accordance with §63.783(b)(1), including actions taken to 

correct a malfunction. 

* * * * * 

8. Table 1 to subpart II is amended: 

a. By removing entry 63.6(e)-(f); 

b. By adding entries 63.6(e)(1)(i), 63.6(e)(1)(ii), 

63.6(e)(1)(iii); 63.6(e)(2), 63.6(e)(3), 63.6(f)(1), and 

63.6(f)(2)-(f)(3); 

c. By removing entry 63.7; 

d. By adding entries 63.7(a)-(d), 63.7(e)(1), and 

63.7(e)(2)-(e)(4); 

e. By revising entry 63.8; 

f. By removing entry 63.10(a)-(b); 

g. By adding entries 63.10(a), 63.10(b)(1), 

63.10(b)(2)(i), 63.10(b)(2)(ii), 63.10(b)(2)(iii), 
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63.10(b)(2)(iv)-(b)(2)(v), 63.10(b)(2)(vi)-(b)(2)(xiv), 

and 63.10(b)(3); 

h. By removing entries 63.10(c); 

i. By adding entries 63.10(c)(1)-(9), 63.10(c)(10)-(11), 

63.10(c)(10)-(11), 63.10(c)(12)-(14), and 63.10(c)(15); 

j. By removing entry 63.10(d); and 

k. By adding entries 63.10(d)(1)-(4) and 63.10(d)(5). 

The revisions read as follows: 

Table 1 to Subpart II of Part 63—General Provisions of 

Applicability to Subpart II 

Reference 

Applies 

to 

subpart 

II Comment 

* * * * * * * 

63.6(e)(1)(i) No. See §63.783(b)(1) for general duty 

requirement. 

63.6(e)(1)(ii) No. 

63.6(e)(1)(iii) Yes. 

63.6(e)(2) No. Section reserved. 

63.6(e)(3) No. 

63.6(f)(1) No. 

63.6(f)(2)-

(f)(3) 

No. If an alternative means of limiting 

emissions (e.g., an add-on control 

system) is used to comply with subpart II 

in accordance with §63.783(c), then this 

section does apply. 

* * * * * * * 

63.7(a)-(d) No If an alternative means of limiting 

emissions (e.g., an add-on control 
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system) is used to comply with subpart II 

in accordance with §63.783(c), then these 

sections do apply. 

63.7(e)(1) 

No If an alternative means of limiting 

emissions (e.g., an add-on control 

system) is used to comply with subpart II 

in accordance with §63.783(c), then see 

§63.786(e). 

63.7(e)(2)-

(e)(4) 

No If an alternative means of limiting 

emissions (e.g., an add-on control 

system) is used to comply with subpart II 

in accordance with §63.783(c), then these 

sections do apply. 

* * * * * * * 

63.8 No If an alternative means of limiting 

emissions (e.g., an add-on control 

system) is used to comply with subpart II 

in accordance with §63.783(c), then this 

section does apply, with the exception of 

§63.8(c)(1)(i), §63.8(c)(1)(iii), and the 

last sentence of §63.8(d)(3). 

* * * * * * * 

63.10(a) Yes 

63.10(b)(1) Yes 

63.10(b)(2)(i) No 

63.10(b)(2)(ii) No See §63.788(b)(5) for recordkeeping of 

occurrence, duration, and actions taken 

during malfunctions. 

63.10(b)(2)(iii)Yes 

63.10(b)(2)(iv)-

(b)(2)(v) 

No 

63.10(b)(2)(vi)-

(b)(2)(xiv) 

Yes 

63.10(b)(3) Yes 

63.10(c)(1)-(9) No If an alternative means of limiting 

emissions (e.g., an add-on control 

system) is used to comply with subpart II 

in accordance with §63.783(c), then these 
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sections do apply. 

63.10(c)(10)-

(11) 

No If an alternative means of limiting 

emissions (e.g., an add-on control 

system) is used to comply with subpart II 

in accordance with §63.783(c), then see 

§63.788(b)(5) for records of 

malfunctions. 

63.10(c)(12)-

(14) 

No If an alternative means of limiting 

emissions (e.g., an add-on control 

system) is used to comply with subpart II 

in accordance with §63.783(c), then these 

sections do apply. 

63.10(c)(15) No 

63.10(d)(1)-(4) Yes 

63.10(d)(5) No See §63.788(c) for reporting 

malfunctions. 

* * * * * * * 

9. Table 3 to subpart II is amended by revising entry 

“Determination of whether containers meet...” to read as follows: 

Table 3 to Subpart II of Part 63—Summary of Recordkeeping and 

Reporting Requirementsabc

Requirement 

All 

Opts. 

Option 

1 

Option 

2 

Option 

3 

Rec Rep Rec Rep Rec Rep Rec Rep

* * * * * * * 

Determination of whether containers 

meet the standards described in 

§63.783(b)(3) 

X X 

* * * * * * * 

* * * * * 

Subpart JJ-–[AMENDED] 
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10. Section 63.800 is amended by revising paragraph (c) 

and adding paragraph (h) to read as follows: 

§63.800 Applicability. 

* * * * * 

(c) This subpart does not apply to surface coating or a 

coating operation that meets any of the criteria of paragraphs 

(c)(1) through (5) of this section. 

(1) Surface coating operations that occur at research or 

laboratory facilities as defined in §63.801. 

(2) Surface coating of metal parts and products other than 

metal components of wood furniture that meets the applicability 

criteria for miscellaneous metal parts and products surface 

coating (subpart MMMM of this part). 

(3) Surface coating of plastic parts and products other 

than plastic components of wood furniture that meets the 

applicability criteria for plastic parts and products surface 

coating (subpart PPPP of this part). 

(4) Surface coating of wood building products that meets 

the applicability criteria for wood building products surface 

coating (subpart QQQQ of this part). The surface coating of wood 

furniture, including finishing, gluing, cleaning, and wash-off 

operations associated with the production of wood furniture or 

wood furniture components, and the surface coating of millwork 
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and trim associated with cabinet manufacturing remain subject to 

subpart JJ. 

(5) Surface coating of metal furniture that meets the 

applicability criteria for metal furniture surface coating 

(subpart RRRR of this part). Surface coating of metal 

components of wood furniture performed at a wood furniture or 

wood furniture component manufacturing facility remains subject 

to subpart JJ. 

* * * * * 

(h) If the owner or operator, in accordance with 40 CFR 

63.804(a), uses a control system as a means of limiting 

emissions from coating operations, in response to an action to 

enforce the standards set forth in this subpart, you may assert 

an affirmative defense to a claim for civil penalties for 

exceedances of such standards that are caused by malfunction, as 

defined in 40 CFR 63.2. Appropriate penalties may be assessed, 

however, if the respondent fails to meet its burden of proving 

all the requirements in the affirmative defense. The 

affirmative defense shall not be available for claims for 

injunctive relief. 

(1) To establish the affirmative defense in any action to 

enforce such a limit, the owner or operator of facilities must 

timely meet the notification requirements in paragraph (h)(2) of 
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this section, and must prove by a preponderance of evidence 

that: 

(i) The excess emissions: 

(A) Were caused by a sudden, short, infrequent, and 

unavoidable failure of air pollution control and monitoring 

equipment, process equipment, or a process to operate in a 

normal or usual manner; and 

(B) Could not have been prevented through careful planning, 

proper design or better operation and maintenance practices; and 

(C) Did not stem from any activity or event that could have 

been foreseen and avoided, or planned for; and 

(D) Were not part of a recurring pattern indicative of 

inadequate design, operation, or maintenance; and 

(ii) Repairs were made as expeditiously as possible when 

the applicable emission limitations were being exceeded. Offshift and overtime labor were used, to the extent practicable to 

make these repairs; and 

(iii) The frequency, amount and duration of the excess 

emissions (including any bypass) were minimized to the maximum 

extent practicable during periods of such emissions; and 

(iv) If the excess emissions resulted from a bypass of 

control equipment or a process, then the bypass was unavoidable 
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to prevent loss of life, severe personal injury, or severe 

property damage; and 

(v) All possible steps were taken to minimize the impact of 

the excess emissions on ambient air quality, the environment, 

and human health; and 

(vi) All emissions monitoring and control systems were kept 

in operation if at all possible; and 

(vii) Owner or operator actions in response to the excess 

emissions were documented by properly signed, contemporaneous 

operating logs; and 

(viii) At all times, the facility was operated in a manner 

consistent with good practices for minimizing emissions; and 

(ix) The owner or operator has prepared a written root 

cause analysis to determine, correct and eliminate the primary 

causes of the malfunction and the excess emissions resulting 

from the malfunction event at issue. The analysis shall also 

specify, using best monitoring methods and engineering judgment, 

the amount of excess emissions that were the result of the 

malfunction. 

(2) Notification. The owner or operator of the facility 

experiencing an exceedance of its emission limit(s) during a 

malfunction shall notify the Administrator by telephone or 

facsimile transmission as soon as possible, but no later than 
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two business days after the initial occurrence of the 

malfunction, if it wishes to avail itself of an affirmative 

defense to civil penalties for that malfunction. The owner or 

operator seeking to assert an affirmative defense shall also 

submit a written report to the Administrator within 30 days of 

the initial occurrence of the exceedance of the standard in this 

subpart to demonstrate, with all necessary supporting 

documentation, that it has met the requirements set forth in 

paragraph (h)(1) of this section. 

* * * * * 

11. Section 63.801 is amended by: 

a. Adding a definition for “affirmative defense” and 

revising the definition for “wood furniture” in 

paragraph (a); and 

b. Adding nomenclature, in alphabetical order, for Cf, 

Ff, Gf, Vc, and Vg to paragraph (b). 

The additions and revisions read as follows: 

§63.801 Definitions. 

(a) * * * 

Affirmative defense means, in the context of an enforcement 

proceeding, a response or a defense put forward by a defendant, 

regarding which the defendant has the burden of proof, and the 
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merits of which are independently and objectively evaluated in a 

judicial or administrative proceeding. 

* * * 

* * * 

Wood furniture means any product made of wood, a wood 

product such as rattan or wicker, or an engineered wood product 

such as particleboard that is manufactured at any facility that 

is engaged, either in part or in whole, in the manufacture of 

wood furniture or wood furniture components, including, but not 

limited to, facilities under any of the following standard 

industrial classification codes: 2434, 2511, 2512, 2517, 2519, 

2521, 2531, 2541, 2599, or 5712. 

* * * 

(b) * * * 

* * * * * 

Cf=the formaldehyde content of a finishing material (c), in 

pounds of formaldehyde per gallon of coating (lb/gal). 

* * * * * 

Ff= free formaldehyde emissions in each rolling 12-month 

period. 

* * * * * 
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Gf=the formaldehyde content of a contact adhesive (g), in 

pounds of formaldehyde per gallon of contact adhesive (lb/gal). 

* * * * * 

Vc=the volume of formaldehyde-containing finishing material 

(c), in gal. 

* * * * * 

Vg=the volume of formaldehyde-containing contact adhesive 

(g), in gal. 

* * * * * 

11. Section 63.802 is amended by adding paragraphs (a)(4), 

(b)(4), and (c) to read as follows: 

§ 63.802 Emission limits. 

 (a) * * * 

(4) Limit total free formaldehyde (Ff) emissions from 

finishing operations and contact adhesives to no more than 400 

lb per rolling 12-month period. 

* * * * *

(b) * * * 

(4) Limit total free formaldehyde (Ff) emissions from 

finishing operations and contact adhesives to no more than 400 

lb per rolling 12-month period. 

* * * * * 
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 (c) At all times, the owner or operator must operate and 

maintain any affected source, including associated air pollution 

control equipment and monitoring equipment, in a manner 

consistent with safety and good air pollution control practices 

for minimizing emissions. Determination of whether such 

operation and maintenance procedures are being used will be 

based on information available to the Administrator which may 

include, but is not limited to, monitoring results, review of 

operation and maintenance procedures, review of operation and 

maintenance records, and inspection of the source. 

* * * * * 

12. Section 63.803 is amended by removing paragraphs 

(h)(1)-(6) and revising paragraph (h) introductory text to 

read as follows: 

§63.803 Work practice standards. 

* * * * * 

(h) Application equipment requirements. Each owner or 

operator of an affected source shall not use conventional air 

spray guns. 

* * * * * 

13. Section 63.804 is amended by adding paragraphs (g)(9) 

and (h) to read as follows: 

§63.804 Compliance procedures and monitoring requirements. 
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 * * * * * 

(g) * * * 

(9) Continuous compliance requirements. You must 

demonstrate continuous compliance with the emissions standards 

and operating limits by using the performance test methods and 

procedures in §63.805 for each affected source. 

(1) General requirements. 

(i) You must monitor and collect data, and provide a site 

specific monitoring plan as required by §§63.804, 63.806 and 

63.807. 

(ii) Except for periods of monitoring system malfunctions, 

repairs associated with monitoring system malfunctions, and 

required monitoring system quality assurance or quality control 

activities (including, as applicable, calibration checks and 

required zero and span adjustments), you must operate the 

monitoring system and collect data at all required intervals at 

all times the affected source is operating, including periods of 

malfunction. Any period for which data collection is required 

and the operation of the CEMS is not otherwise exempt and for 

which the monitoring system is out-of-control and data are not 

available for required calculations constitutes a deviation from 

the monitoring requirements. 
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(iii) You may not use data recorded during monitoring 

system malfunctions, repairs associated with monitoring system 

malfunctions, or required monitoring system quality assurance or 

control activities in calculations used to report emissions or 

operating levels. A monitoring system malfunction is any 

sudden, infrequent, not reasonably preventable failure of the 

monitoring system to provide valid data. Monitoring system 

failures that are caused in part by poor maintenance or careless 

operation are not malfunctions. The owner or operator must use 

all the data collected during all other periods in assessing the 

operation of the control device and associated control system. 

(h) The owner or operator of an existing or new affected 

source subject to §63.802(a)(4) or (b)(4) shall comply with 

those provisions by using either of the methods presented in 

§63.804 (h)(1) and (h)(2). 

 (1) Calculate free formaldehyde emissions from all 

finishing materials and contact adhesives used at the facility 

using Equation 5 and maintain a value of Ff no more than 400 lb 

per rolling 12-month period. 

Ff=(Cf1Vc1 + Cf2Vc2 + * * * + CfnVcn + Gf1Vg1 + Gf2Vg2 + * * * + GfnVgn) Equation 5

(2) Use a control system with an overall control efficiency 

(R) such that the calculated value of Ff in Equation 6 is no more 

than 400 lb per rolling 12-month period. 
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Ff=(Cf1Vc1 + Cf2Vc2 + *** + CfnVcn + GfiVg1 + Gf2Vg2 + *** + GfnVgn)* (1‐R)    Equation 6

* * * * * 

14. Section 63.805 is amended by adding paragraph (a)(1) to 

read as follows: 

§63.805 Performance test methods. 

(a) * * * 

(1) Performance tests shall be conducted under such 

conditions as the Administrator specifies to the owner or 

operator based on representative performance of the affected 

source for the period being tested. Upon request, the owner or 

operator shall make available to the Administrator such records 

as may be necessary to determine the conditions of performance 

tests. 

* * * * * 

15. Section 63.806 is amended by removing paragraph (e)(4) 

and adding paragraphs (b)(4) and (k) to read as follows: 

§63.806 Recordkeeping Requirements.

(b) * * * 

(4) The free formaldehyde content, in lb/gal, as applied, 

of each finishing material and contact adhesive subject to the 

emission limits in §63.802. 

* * * * * 

(k) The owner or operator of an affected source subject to 
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this subpart shall maintain records of the occurrence and 

duration of each malfunction of operation (i.e., process 

equipment) or the air pollution control equipment and monitoring 

equipment. The owner or operator shall maintain records of 

actions taken during periods of malfunction to minimize 

emissions in accordance with §63.802(c), including corrective 

actions to restore malfunctioning process and air pollution 

control and monitoring equipment to its normal or usual manner 

of operation. 

* * * * * 

16. Section 63.807 is amended by revising paragraphs (c), 

(c)(3), and the first sentence in paragraph (d) to read as 

follows: 

§63.807 Reporting requirements. 

* * * * * 

(c) The owner or operator of an affected source 

demonstrating compliance in accordance with §63.804(g)(1), (2), 

(3), (5), (7), (8), and (h)(1) shall submit a report covering 

the previous 6 months of wood furniture manufacturing 

operations. 

* * * * * 

(3) The semiannual reports shall include the information 

required by §63.804(g) (1), (2), (3), (5), (7), (8), and (h)(1), 
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a statement of whether the affected source was in compliance or 

noncompliance, and, if the affected source was in noncompliance, 

the measures taken to bring the affected source into compliance. 

If there was a malfunction during the reporting period, the 

report shall also include the number, duration, and a brief 

description for each type of malfunction which occurred during 

the reporting period and which caused or may have caused any 

applicable emission limitation to be exceeded. The report must 

also include a description of actions taken by an owner or 

operator during a malfunction of an affected source to minimize 

emissions in accordance with §63.802(c), including actions taken 

to correct a malfunction. 

* * * * * 

 (d) The owner or operator of an affected source 

demonstrating compliance in accordance with §63.804(g)(4), (6), 

and (h)(2) of this subpart shall submit the excess emissions and 

continuous monitoring system performance report and summary 

report required by §63.10(e) of subpart A. * * * 

* * * * * 

17. Table 1 to Subpart JJ is amended: 

a. By removing entry 63.6(e)(1); 

b. By adding entries 63.6(e)(1)(i), 63.6(e)(1)(ii), 

63.6(e)(1)(iii); 
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c. By revising entries 63.6(e)(2) and (3); 

d. By removing entries 63.7 and 63.8; 

e. By adding entries 63.7(a)-(d), 63.7(e)(1), 63.7(e)(2)-

(e)(4), 63.8(a)-(b), 63.8(c)(1)(i), 63.8(c)(1)(ii), 

63.8(c)(1)(iii), 63.8(c)(2)-(d)(2), 63.8(d)(3), and 63.8(e)-(f); 

f. By removing entry 63.10(b)(2); 

g. By adding entries 63.10(b)(2)(i), 63.10(b)(2)(ii), 

63.10(b)(2)(iii), 63.10(b)(2)(iv)-(b)(2)(v), 63.10(b)(2)(vi)-

(b)(2)(xiv); 

h. By removing entry 63.10(c); 

i. By adding entries 63.10(c)(1)-(9), 63.10(c)(10)-(11), 

63.10(c)(12)-(c)(14), and 63.10(c)(15); and 

j. By revising entry 63.10(d)(5). 

The revisions read as follows: 

Table 1 to Subpart JJ of Part 63—General Provisions

Applicability to Subpart JJ 

Reference 

Applies to 

subpart JJ Comment 

* * * * * * * 

63.6(e)(1)(i) No See 63.802(c) for general duty 

requirement. 

63.6(e)(1)(ii) No 

63.6(e)(1)(iii) Yes 

63.6(e)(2) No Section reserved. 

63.6(e)(3) No 

63.6(f)(1) No 
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§63.7(a)-(d) Yes Applies only to affected sources 

using a control device to comply 

with the rule 

§63.7(e)(1) No See 63.805(a)(1). 

§63.7(e)(2)-(e)(4) Yes Applies only to affected sources 

using a control device to comply 

with the rule 

63.8(a)-(b) Yes Applies only to affected sources 

using a control device to comply 

with the rule. 

63.8(c)(1)(i) No 

63.8(c)(1)(ii) Yes Applies only to affected sources 

using a control device to comply 

with the rule. 

63.8(c)(1)(iii) No 

63.8(c)(2)-(d)(2) Yes Applies only to affected sources 

using a control device to comply 

with the rule. 

63.8(d)(3) Yes, except 

for last 

sentence 

Applies only to affected sources 

using a control device to comply 

with the rule. 

63.8(e)-(g) Yes Applies only to affected sources 

using a control device to comply 

with the rule 

* * * * * * * 

63.10(b)(2)(i) No 

63.10(b)(2)(ii) No See 63.806(k) for recordkeeping of 

occurrence and duration of 

malfunctions and recordkeeping of 

actions taken during malfunction. 

63.10(b)(2)(iii) Yes Applies only to affected sources 

using a control device to comply 
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with the rule 

63.10(b)(2)(iv)-

(b)(2)(v) 

No 

63.10(b)(2)(vi)-

(b)(2)(xiv) 

Yes Applies only to affected sources 

using a control device to comply 

with the rule 

* * * * * * * 

63.10(c)(1)-(9) Yes 

63.10(c)(10)-(11) No See 63.806(k) for recordkeeping of

malfunctions. 

63.10(c)(12)-

(c)(14) 

Yes 

63.10(c)(15) No 

* * * * * * * 

63.10(d)(5) No See 63.807(c)(3) for reporting of 

malfunctions. 

* * * * * * * 

* * * * * 

18. Table 3 to Subpart JJ is amended by adding entry (e) 

under “Finishing Operations” to read as follows:

Table 3 to Subpart JJ of Part 63—Summary of Emission 

Limits 

Emission point 

Existing 

source 

New 

source 

* * * * * * * 

(e) Achieve total free formaldehyde emissions

across all finishing operations and contact 

adhesives, lb per rolling 12-month period, as 

applied 

400 400 
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19. Table 5 to Subpart JJ is amended by removing the entry 

for “Formaldehyde.”