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# OAR Box 1875 Prepped byOllie Stewart



### Document

Number: 

# 80 ) ll-F-2 7
Docket Number: 

# A-90-1 9

Printed 12/1/200811:12:49AM

Sheet 80of 86

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# A-90-1 9 ll-F-2 7

Note s (attached ) fro m10/21/9 2 conversatio n betwee nA
. Eckert , EPA:OGC an

d D
. Rivkin , Offic e o f the Vic e President , Counci l on Economi c Competitiveness

. AlanEckert' s note s fro mthe telephon e conversatio n wer e mad e o na typed versio no f the marku p discusse d during th e Octobe r 20 , 199 2 telephon e conversatio nwit hD
. Rivki n (Ite mNo
. II-F-26 )
. Subject : Draf t languag e fo r complementary lega l theory
.



## 1992
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E^A' s propose d rul e allow s a n averaging/approac hfo r HON

covere d portion s o f a plant , se e pp . ./EP Ai s als o solicitin g commen t o n a broade r averaging/ocham e [prepooalj , a s se t fort hbelow
. Significantly , thi s latte r averagin g schem e i s no t bein g propose d a s a n alternativ e t o th e averagin g approach , describe d above
. Rather , th e tw o approache s ar e entirel y complementary
. However , becaus e th e lega l issue s pose d byth e broade r averagin g schem e diffe r appreciabl yfro mthos e implicate d toythejmor e narro waveragin g proposal , EP Abelieve s tha t a separat e discussio no f th e forme r i s warranted
. CL- , Th e broa d averagin g alternativ e /[proposal])relie s upo na lega l theor ywhic hwoul d permi t complianc e wit n th e HO NMAC T standar d (or , fo r tha t matter , wit hanyothe r MAC T standar d t o b e develope d byEPA ) byaveragin g emission s fro mpoint s locate d anywher e withi na n entir e contiguou s facility , whic hcontain s HON-cotvere d processin g units

. Thi s alternativ e woul d differentiat e betwee nth e ter m "sourd e i na categor yo r subcategory, " use d i nSectio n112(d) , and th e ter m"source, " use d i n Sectio n112(i)

. T o begi nwith , i t i s a maxi m

o f statutor yconstructio ntha t th e us e o f differen t word s toyCongres s i n tw o differen t subsection s i s no t accidenta l an d rejflect s wel l thought-ou t Congressiona l intent

. [cit e Sutherland]

. Specifically , fo r purpose s o f establishin g emission s standard s unde r subsectio n112(d) , Congres s expecte d EP At o identif yspecifi c productio n lines , piece s o f equipment , etc. , ilocated withi nmajo r stationar ysource s o r are a sources , and t o trea t the ma s source s onl yfo r th e purpose s o f subsection s 11 2 (d)i(3 ) (A ) an d (B ) , i-_e

. , fo r th e purpose s o f determinin g wha t i s th e averag e emissio n limitatio n achieve d byth e bes t performin g twelv e percen t o f existin g source s o r averag e emissio n limitatio nachieve d byth e fiv e bes t performin g sources . Sinc e th e ter m

sourc e wa s use d i n subsectio n112(d ) fo r a distinc t an d uniqu e purpose , th e relevan t statutor ylanguag e contain s a qualifyin g se t o f word s - "i n a categor yo r subcategory " - appende d t o th e wor d "source. " Significantly , i n subsectio n112(i) , th e relevan t statutor y languag e contain s th e ter m"source " —a fac t tha t woul d allo w EP At o conclude , fo r purpose s o f subsectio n112(i) , tha t a sourc e jhiphjng f arhioy o ^ompii«nc e i s a "majo r source " whic h encompasse s a nentir e plant^C^cite^-^Fhi s readin g i s supporte d by th e fac t tha t th e definition s or—Statutor yterms , se t fort hi n subsectio n 112(a) , contai n th e traditiona l definition s o f suc h terms;a s "majo r source, " stationar ysource, " etc
. Unde r thi s ^construction , th e statutor ylanguag e "anyemission s standard , .imitation , o r regulatio npromulgate d unde r thi s [112 ] sectio n axi d applicabl e t o a source " describe s al l o f th e existin g MACJ
. standards , establishe d unde r subsectio n112(d) , an d applicabl e t o



# nt'!yjj r- Hf^a source , whic hcontain s withi n i t "source s i na categor yo r

subcategory " (i.e. , productio n lines , piece s o f equipment , etc. ) covere d b ysuc hMAC T standards
. EP Aals o note s that , i nit s "earl yreductions " rule , i t adopte d a plant-wid e definitio n o f source . £fie 5 6 F R2734 2 (Jun e 13 , 1^91 ) —a n earl yindicatio ntha t th e agenc ybelieve d tha t a n entir e contiguou s facilit ycoul d b e considere d t o b e a sourc e fo r purpose s o f qualifyin g fo r a 6 yea r extensio no f th e MAC T complianc e deadlines

. EP Ai s mindfu l o f th e fac t tha t i t ha s traditionall yenjoye d wid e latitud e i ncomin g u p wit hdivers e definition s o f th e ter m "source, " dependin g o nwha t regulator y objective s wer e implicated , and EPA' s considerabl e discretio n i n thi s are a ha s bee n affirme d b yth e courts , [cit e Chevron] , EP A solicit s commen t o n th e lega l authorit yt o adop t thi s approach , an d als o request s commen t o nimplementatio nconsiderations

. lirnde r th e broade r averagin g approach , EP Awoul d mak e n o change s i nth e wa yi t ha s identifie d categorie s an d subcategorie s o f source s i n th e HO Nan d devise d appropriat e emissio nstandard s fo r tliem , no r i n th e wa yi t woul d prescrib e futur e emissio n standard s fo r othe r emissio n categorie s o r subcategories

. Fo r complianc e purposes , however , i f a n owne r o r operato r doe s no t wis ht: o contro l a particula r HON-covere d emissio npoin t t o th e leve l 'tha t woul d resul t i n complianc e wit hth e relevan t HO N emissio n standard , th e extr a emission s fro mtha t poin t coul d b e offse t byemission s reduction s greate r tha nwha t i s require d by anystandar d the ni neffec t unde r Sectio n11 2 a t on e o r mor e othe r I emissio npoint s withi n th e entir e stationar ysource . I n addition , emission s averagin g woul d b e allowe d acros s al l th e emissio npoint s withi n th e entir e plant , includin g th e SOCM I sourc e categor ya s wel l a s point s no t ye t covere d byanyMAC T stand4rd
.

! A s such , emission s fro mproces s vents , wastewate r operations , storag e vessel s an d transfe r operation s coul d b e average d amon g themselve s o r wit hothe r emissio npoint s withi n th e entir e stationar ysource , i n orde r t o provid e a s muc h flexibilit ya s possible

. However , a distinctio nwoul d b e mad e betwee n emissio npoint s physicall ysimila r t o emissio npoint s covere d unde r th e HO No r anyothe r MAC T and al l othe r emissio n points

. Fo r th e former , t o participat e i nth e averagin g scheme , the yidus t compl ywit hwhateve r complianc e routine s hav e bee n establishe d unde r th e SOCM I HO No r othe r relevan t MACT
. Fo r th e latter , t o participat e i n averaging , th e sourc e mus t petitio n EP A t o establis ha nappropriat e complianc e routine

. T o b e sure , onc e EP Aestablishe s suc ha complianc e routin e fo r anyne wtyp e o f emissio npoint , al l simila r emissio npoint s locate d withi nany source s ca nparticipat e i nth e averaging , s o lon g a s the yus e th e EPA-approve d complianc e routine

. EP Asolicit s commen t als o o n ho wit : woul d verif yth e baselin e fo r unregulate d emissio npoints , an d hd wi t woul d structur e th e averagin g complianc e proces s t o 2 i i

cOO®©SS:S T£6/l-(KT Tassur e th e standar d a s a whol e remain s enforceable
. On e

possibilit yt o conside r woul d b e t o us e th e averag e emission s fro msuc hemissio n point s ove r som e representativ e tim e perio d a s thei r ibaselines

. commen t i s als o specificall yrequeste d o nlega l authorit yfor , an d polic yimplication s of , includin g ne wan d existin g source s i n th e sam e average . Whil e equipmen t leak s ar e include d i nSOCM I sources , the y canno t a t thi s tim e b e include d i n emission s averages . Equipmen t leaksjar e no t include d because : (1 ) th e negotiate d standar d doe s no t requir e an yfixe d performanc e level ; an d (2 ) n o practica l metho d currentl yexistsjft o verif yperformance
. Unde r thi s alternative , EP Awoul d ^Bxpeditiouslyfrf'develop method s t o assig n allowabl e emissio n level s t o particula r lea k point s o r group s o f lea k points , an d woul d similarl ydevelo p method s fo r calculatin g emission s fro memissio n point s no t regulate d byth e HON
. Th e Administrato r seek s commen t o nmean s t o verif yan d documen t th e emissio n performanc e level s achieve d fo r situation s wher e equipmen t leak s ar e include d i n a naverage . Commenter s shoul d includ e a descriptio n o f th e complianc e verificatio nprocedur e tha t woul d b e use d an d wha t dat a need s t o b e supplie d t o suppor t th e suggeste d system
. Comment s ar e als o requeste d o ntype s o f non-sd>CM l emissio n point s tha t migh t b e include d i nbroade r averages . Unde r th e broade r approach , emissio nreduction s fro m emissio npoint s no t covere d byth e HO Nwoul d b e usabl e t o generat e credits , subjec t t o th e previousl ydiscusse d limitation s an d anylimitation s adde d i nanyothe r MAC T standar d applicabl e t o th e relevan t emissio n points

. Credit s coul d b e generate d a t anytim e fro m

non-HO Nemissio n point s unti l the ybecom e subjec t t o a mAC T standard
. Whe n the ybecom e subjec t t o a MAC T standard , th e fiiture valu e o f reduction s a t thos e emissio npoint s woul d b e governe d b

yth e emissio n standard s require d byth e ne wMACT
. State d differently , th e offset s availabl e fro msuc hpoint s woul d hav e t o b e recompute d usin g th e ne wbaselin e establishe d fo r them , i Eac hfutur e MAC T standar d mus t contai na floo r calculation

. T o th e exten t tha t point s covere d bythes e late r standard s hav e alread ybee ncontrolle d fo r purpose s o f participatin g i na n averagin g scheme , tha t relate s t o th e complianc e wit ha nearlie r standard , th e floo r fo r th e late r standar d ma yb e mor e stringent

. A s futur e MAC T standard s ar e adopted , EP Awoul d attemp t t o maximiz e averagin g opportunitie s an d therefor e minimiz e complianc e delay s and costs
. EP Abelieve s tha t th e broa d averagin g scheme , describe d above \ provide s significan t polic ybenefits

. T o begi nwith , i t wouldjenabl e source s t o achiev e th e sam e environmenta l gains , a s underjth e mor e narro waveragin g proposal , bu t a t significantl y reduce d costs
. Second , establishin g MAC T standard s wit ha facility-wid e averagin g progra mcoul d resul t i nth e MAC T "floor " fo r futur e standard s bein g tighte r tha nwoul d hav e bee nth e cas e

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### i f th e emissio n point s outsid e o f th e alread ycovere d MAC T categorie s woul d hav e staye d uncontrolled
. Last , bu t no t least , EP Abrieve s tha t th e utilizatio n o f th e broad averaging scheme mayresul t i n th e discoveryo f emissio n point s withi nfacilitie s tha t otherwis e migh t hav e bee n overlooke d b yEP Aan d stat e regulators
. Severa l factor s mus t b e considere d i nimplementing thi s alternativ e approach
. First , th e averaging approac hallow s inclusio n o f point s tha t wil l b e regulate d b ysubsequen t MAC T standards
. I n calculating residua l ris k unde r sectio n 112(f) , shoul d al l point s i n th e initia l averag e b e include d i n on e ris k calculatio n eve n thoughsome o f thos e point s wil l no t b e subjec t t o th e standard s unde r 112(d ) unti l a late r date ? Second , i t woul d requir e a determinatio n o f th e permissibilit yo f allowing average s t o emi t a differen t combinatio n o f pollutant s than source s tha t mee t MAC T withou t averaging

. Thi s concer n i s alread ybeing evaluate d fo r VO C HAP s i n th e SOCM I sourc e category
. Th e alternativ e approac hmigh t furthe r complicat e thi s issu e b yadding dissimila r categorie s (e.g., ; industria l cooling towers ) emitting dissimila r pollutant s (e.g. , chromium)

. Sinc e th e HO Ncurrentl yaddresse s onl yorgani c HAPs,(significan t change s woul d b e necessaryt o accommodat e non VO C HAP controls
. T o b e sure , thi s concerncoul d b e resolve d b y limiting trading unde r th e broad averaging proposa l t o onl y organi c HAP s alread ycovere d b

ya MAC T standard , bu t emitte d anywher e withi n th e fenceline

. A s nonorgani c HAP s becom e covere d b ysubsequen t MAC T standard s EPAwill^addrop s he wt o trad o thes e

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