p.1 

OAR Box 1706 

Prepped by Ollie Stewart 

Document Number: 

47) IV-E-23 

Docket Number: 

A-98-13 

Printed 10/8/2008 10:25:09 AM Sheet 47 of 142 
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s 08/26/03 08:10 ©19199410234 PES RTP NC ®002/012 

NOTE TO DOCKET Nos. A-98-13. A-96-04. OAR-2002-OO58. OAR-2002.Q059- OAR-2Q02-

0060 

SUBJECT: May 1,2003, meeting between EPA and representatives ofthe Amerioan 

Chemistry Council and General Electric Co. 

FROM: Mike Thrift, Attorney, EPA Ofi&ce of General Counsel, Air and Radiation Law 

Office 

On May 1,2003, representatives ofthe American Chemistry Council (ACC) and the 

General Electric Company (GE) met vith EPA personnel from the Office of General Counsel 

(OGC), Office of Air and Radiation (OAR), and Office of Air Quality Planning and Standards 

(OAQPS), to discuss the continued development of EPA's maximum achievable control 

technology (MACT) program to control emissions of hazardous air pollutants under section 112 

ofthe Clean Air Act. Specifically, ACC and GE addressed five pending rulemakings regarding 

the combustion turbines, miscellaneous organics, organic liquids distribution, reciprocating 

internal combustion engines, and industrial boilers/process heaters subcategories. 

Present at the meeting were the following individuals: . 

Robert Fabricaht (EPA OGC) 

Lisa Jaeger (EPA OGC) 

Anna Wolgast (EPA OGC) 

John Spinello (EPA OGC) 

Lisa Friedman (EPA OGC) 

Patricia Embrey (EPA OGC) 

Milec Thrift (EPA OGC) 

Bill Wehrum CBPA OAR) 

Ron Shipley (ACC) 

Rasma Zvaners (ACC) 

Matt Tanzer (GE) 

Participating by conference phone were: 

Steve Fruh (OAQPS) 

Elaine Manning (OAQPS) 

Following the attached presentation entitled "The End of EPA's MACT Program" 

presented to EPA at the meeting, Mr. Shipley expressed ACC's concern that recent decisions by 

the U.S. Court of Appeals for the District of Columbia Circuit could result in EPA departing 

from its prior practice under the MACT program, particularly regarding issues related to which 

hazardous air pollutants are subjected to standards, the methodology EPA uses to set standards, 

and the treatment of small amounts of emissions of hazardous air pollutants. Mr. Shipley also 

1 
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AUG.25.2003 Ai2ZFT\ OGC-CCJ. DIVISION NO. 989 P.E/Z 

stated that ACC is concerned about recent efforts by environmental advocates to convince EPA 

to talce a "statistical approach" to setting minimum stringency standards under MACT, and to 

regulate all hazardous air pollutants emitted by subject source categories. 

Mr. Shipley then noted ACC's view that recent EPA MACT proposals do not appear to 

fully account for the recent court decisions from the D.C. Circuit, and that EPA needs to; develop 

a guiding principle to the MACT approach in light of these decisions; ensure that data, support 

regulatory theories and decisions; preserve agency discretion in setting applicability criteria; 

adequately support in the rulemaking record MACT "floor" deterrninations; and carefully 

address issues such as whether risk can be a factor in the MACT standard setting process. For 

example, on this last point, Mr. Shipley stated that ACC believes section 112(d)(4) ofthe Clean 

Air Act can be used to set alternative standards for hazardous air pollutants for which a health 

threshold has been established, even if ACC is not able to answer whether it can be used for nonthreshold carcinogens. 

Regarding recent D.C. Circuit case law, Mr. Shipley stated ACC's view that the court's 

language in National Lime Ass'n v. EPA. 233 F.3d 625 (D.C. Cir. 2000) diiecting EPA to set 

standards for all hazardous air pollutants emitted by subject sources is essentially dicta, and that 

EPA is free to rely upon a "no control" rationale, de minimis finding, or surrogate pollutant 

approach in order to ayoid setting standards for every pollutant listed in section 112(b). Mr. 

Shipley also stated that ACC believes EPA - and the court - took an incorrect approach in that 

case in addressing whether <4e minimis theory can be used to exempt sources or pollutants from 

MACT. 

In conclusion, Mr. Shipley noted that while the MACT program has been largely 

successful, the controversy now enshrouding the program puts that success at risk, and he 

stressed that as a result OGC needs TO take an enhanced role in support of OAR and OAQPS rule 

writers to ensure that EPA MACT regulations are legally defensible, 

(Attachment) 
08/26/03 08:11 ©19199410234 PES RTP NC 

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End of Program 

- MAc i "began in 1990 - HON'Qhe Ofthe first 

• ACC (CNfA) worked cooperatiwly wth^EPA to 

; ;es|a ^ 

•7 ProgrS^ 

•"7: y^-y-TT 7.' rti6se;

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• Been successM at reducing ;KtAP emissions 

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• Controversy now enshrouds the MACT program 
08/26/03 08:12 ©19199410234 PES RTP NC 

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The fcourfcHas Thrown BPA.Several Curves 

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• 

;;;:Sigr^c^^ss\ies:, 

1 ist? (^^i"b^a/ ^zw^r27) 

Court ojies^ ^(Wc^.(ClR6) 

Limitat^ns^ 

We believe;EPA ha^rnore disCTelion and 

flexibility than indicated in court decisions 

WP'\\ • ^^^'^g^;! ^ • : :0[*f 

•yyy. WryWft JWW^W^'' 

; EPA;Has;Raised Significant Issues Ovet 

Use of "I&sl^r&secl" Provisions 

Proper; iise^Ml 12^d)i(4)w 11 2(e|(9) 

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08/26/03 08:14 '19199410234 PES RTP NC 

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• Trying tp constrain EPA's autiiority to set 

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AGC:T^riiBers 

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• . Ovibr'the/nejet;year- EPA: will .'promulgate five MACT nilc 

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. RIG/Engines 

Boiler /Process'1 Heaters 

Due Aug 2003^ 

' DuCT^:;2Q03'y 

Due, Feb, 2004 

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Legal issu 

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08/26/0 3 08:1 5 '19199410234 PES RTP NC 

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cost ef fRCtiye'6ec.^l;12;S^daids: ''>'•'"•,;. ;, -J: 

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08/26/03 08:17 ©19199410234 PES RTP NC 

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T Detefmiaedj; along wi ^ OGC, that the court cases ojily: 

..." adversely i affected i'a^feW: bf i&e'MAC^s'lini'jfie-p'ipelin t • 

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• Assis^program staff in witingdeiensiblerule^ 

Ensjure adequate"; explanation;*!* receVdHco^istent'^ith' : 

f('w&;^^fe^Ular^ie 

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08/26/03 08:18 ©19199410234 PES RTP NC 

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cutoffs) 

^Historically;^ 

: categori^ I^GTistanda^. 

EPA:kasi£j£E^^^ set? { 

iissiewst^d^d^ cost-effecftye; • 

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08/26/03 08:20 ©19199410234 PES RTP NC 

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- OnlySthosepTeSent or r^sbnatly expected to Represen' 

' EPA sbiould'exarnine the: HAPs it lists in"the nreainble to1 

eacli Fiile and' decide .whether,lite standards regulate them. 

EPA needs to> explainwhen some.;£LA^ oi 

thepry, suirogate theoryj or some omer justification. 

We beHev^'t^at:MPA caii \ise surrogates as long as it can 

7 ' •• ^CojExelat e their cbntrol'tb HAP^cpritrbl. 

: MACT FLOORS 

Historically the Agency has used various means to develop 

sound and-cjefensible floor detenninations: 

regulator1 i>n data; gerierally understood leyels 

achieved by ccmtrol technology, model plant analysis! and otbei 

neihods. 

Court holdings. Some questions about EPA methods, but 

have held that' any "method is OK as )ong:as a"^casonable,' 

way ofTCflectin^ what the best peftbrmers achieve 

Court's[haveNEVER dictated what method EPA should 

use. 
08/26/03 08:21 ©19199410234 PES RTP NC 

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• EPItrie^ 

the '^pcfes^tised to ^inake the decision ?^a,VprpYicle ,• •;: 

aT^bfiaijle estimate of w 

acfieyc 

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ac&e^iiig. 

such a l the variety of sources^ okta^yaitable 

fee$t^cfe:^:^efe 

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mintmis 

De;^iiu^is:affects priorSissue 

T- Historically, EPA has used "corajnonberteel" to shape tht 

appBcabidjty7 criteria;, HAPs bfconcem,1 and floQr analy?ii^ n i 

xbhj&';smali|dr^^mcbns'equei^alsbu^x 

,:":-^ie'.:Agency hasrarely: fomalj^ef e 

Agency took erroueous position ui National Lime U. 

-7 Many- exclusions aie npt a fk-ftedby thatiposiyop ho wevt: i 

; JjtljEjgfl^ only shape: 

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08/26/03 08:23 ©19199410234 PES RTP NC 

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purpose: EPmsHbuffim^e ^iiis e ol: 

mese pn^yisioris *4|lfc: 

EEA caivtlp a lot of good witHci|| ftoskrag ,. 

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