----- F o r wa r ded b y B r i an S h r a g e r / R T P / U S E PA

/ U S on 02 / 18 / 2011 03 : 06 PM

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F r o m: Br ian S h r age r / R T P / U SE P A

/ US

T o: " Higgi n s

, Co r t n e y " < Co r t ne y _Hi g gin s @ o m b

. eop

. go v>

C c: J i m E dd i nge r / R T P / U SEP A

/ U S @ E P A

, Ro b e r t J W a y la n d / R T P / U SE P A / US

Da t e: 02 / 14 / 2011 03 : 49 PM

S ubje c t: Re s pon s e s t o O M B 1286 6 Co mm en ts

Co r t ne y,

A t t a c hed a r e E P A r e s pon s e s t o t he s u mm a ry o f c o mm en t s do c u m en t t h a t y ou

p r o v ide d o n 2 / 7 / 2011

. I plan t o s end a r edli n e v e rs io n o f t h e p r e a m b le

and r ule t o m o rr ow

, bu t wan t ed t o ge t t h i s t o y o u f i rs t.

T h an k s!

Br ian

(S ee a t t a c hed f ile : E PA Re s p o n s e s to

B oile rs

_ E O 1 2866 I n t e r agen cy Co m m e n t s

_ F eb420 1 1

. d o c x)

### S u

m m a ry of I n t e r a g e n cy W o r k i ng C o m m en ts on D r a ft L a n g u a ge u n d er

E O 1 2 866 I n

t e r a g e n cy R ev i e w. S u b j e ct to F ur t h er P ol i cy R ev i e w.

Page 1 of 13 M a j o r R u l e P r ea m b l e

I n t e r i m F i n a l R u le

H a s EPA c on s i de r ed i ss u i ng an i n t e r i m f i n a l r u l e t o ad d r e ss i ss ue s f o r w h i c h t he y

r e c e i v ed c o m m en t on bu t ha v e n ’ t y e t a n a l yz e d o r c on s i d e r e d t ho s e c o mm en t s ? N o t e

t ha t i n an i n t e r i m f i n a l r u l e

, a l l a s pe c t s o f t h e r u l e w o u l d be e ff e c t i v e l y f i na l

, bu t i t w o u l d

a l l o w f o r c o m m en t and po ss i b l e a m en d m en t o f t he f i n a l r u l e

.

F o r i n s t an c e

, h a s EPA c on s i d e r ed i ss u i n g an i n t e r i m f i n a l r u l e w i t h a s o l i c i t a t i o n fo r

c o mm en t s on a c u t e e x po s u r e

, c u m u l a t i v e e ff e c t s

, and d a t a ne c e s s a r y t o c a l c u l a t e a

f a c il i t y

- b y

- f a c il i t y H BE L? If n o t ?

EPA R e s pon s e : W e do no t b e l i e v e a n i n t e r i m f i n a l r u l e i s a pp r o p r i a t e i n t h i s

c i r c u m s t an c e fo r s e v e r a l r ea s on s

. F i r s t, a s y o u k no w

, w e a r e r eq u i r e d b y c o u r t o r de r t o

i ss ue t he b o i l e r s r u l e s and t he C I S W I r u l e b y F eb r u a r y 2 1

. W e a r e c on c e r ned t ha t

i ss uan c e o f a n i n t e r i m f i n a l r u l e w ou l d be v i e w ed a s a c i r c u m v en t i on o f t he c o u r t ' s o r d e r

t o m ee t ou r o b l i ga t i on unde r s e c t i on 1 12 ( c )( 6 ) o f t he A c t, a nd t h e r e f o r e po s s i b l e

g r ound s f o r a c on t e m p t m o t i on f r o m t he en v i r on m en t a l pe t i t i on e r s . O u r o b l i ga t i on i s t o

i ss ue a f i n a l r u l e b y F eb r ua r y 2 1

. S t y l i ng o u r a c t i o n a s " i n t e r i m " w ou l d l i k e l y b e v i e w ed

a s i n s u f f i c i en t t o m ee t t he c ou r t o r de r

.

S e c ond

, an i n t e r i m f i n a l r u l e i s gen e r a l l y u s ed w hen t he r e i s a n e ed t o pu t i n p l a c e a

f i n a l a c t i on w hen w e do no t ha v e t i m e t o p r o v i de no t i c e a nd an opp o r t u n i t y fo r p u b l i c

c o mm en t. F o r

t ha t r ea s on

, w e i n c l u de a g oo d c au s e f i n d i n g i n t he i n t e r i m f i n a l r u l e

no t i c e e x p l a i n i n g ou r ba s i s fo r c on c l u d i n g t ha t w e ha v e good c au s e t o i ss ue an i n t e r i m

f i n a l r u l e w i t h o u t p r i o r no t i c e and opp o r t u n i t y f o r c o m m en t. H o w e v e r

, i n t h i s c a s e

, w e

d i d p r o v i d e no t i c e a nd an opp o r t u n i t y f o r c o mm en t, s o an i n t e r i m f i na l r u l e i s n o t

app r o p r i a t e

.

F i n a l l y , t h e r e i s no need t o u t il i z e a n i n t e r i m f i na l r u l e w he r e w e ha v e a n a l t e r n a t i v e

m e c han i s m t ha t a c h i e v e s t h e s a m e r e s u l t, i

. e

. , g r an t i n g r e c o n s i de r a t i on u n de r s e c t i on

307 ( d ) ( 7 ) ( B ) o f t he C l ean A i r A c t. B y g r an t i ng r e c on s i d e r a t i on

, w e i n d i c a t e t ha t w e w i l l

f u r t h e r e v a l ua t e t he r u l e s

- - o r c e r t a i n a s pe c t s o f t he r u l e s

- - t a k i ng i n t o a cc o u n t

add i t i on a l p ub li c c o m m en t s

. A l s o , t he D

. C

. D i s t r i c t C ou r t i n i t s r e c en t g r an t o f a 3 0

- da y

e x t en s i on t o i s s ue t h e f i n a l r u l e s r e c o g n i z ed o u r au t h o r i t y u n de r s e c t i on 3 0 7 ( d ) t o g r an t

r e c on s i d e r a t i on

. W e b e l i e v e t he c o u r t ' s e x p l i c i t r e f e r en c e t o t h i s au t h o r i t y m a k e s a

c on t e m p t m o t i on u n l i k e l y i f w e i ss u e f i n a l r u l e s and a t t he s a m e t i m e i n d i c a t e o u r i n t e n t

t o r e c on s i d e r

t h o s e a s p e c t s o f t h e r u l e t ha t l a c k ed s u f f i c i en t oppo r

t u n i t y fo r pu b l i c

c o mm en t.

H BEL

I n t he 2 0 04 r u l e [ 55 2 44 ] EPA s t a t ed

, “ T o i d en t i f y H AP w i t h po t e n t i a l t o c a u s e m u l t i m ed i a

and / o r en v i r on m en t a l e ff e c t s

, t he EPA ha s i d e n t i f i e d H AP w i t h s i g n i f i c an t p o t en t i a l t o

e x i s t i n t he e n v i r on m en t and t o b i o

- a cc u m u l a t e

. T h i s l i s t d oe s no t i n c l ude H C l o r

m angane s e

, w h i c h a r e t h e o n l y H AP w i t h he a l t h ba s ed c o m p li an c e a l t e r na t i v e s i n t he

### S u

m m a ry of I n t e r a g e n cy W o r k i ng C o m m en ts on D r a ft L a n g u a ge u n d er

E O 1 2 866 I n

t e r a g e n cy R ev i e w. S u b j e ct to F ur t h er P ol i cy R ev i e w.

Page 2 of 13 f i n a l r u l e

. ” EPA w en t on t o s t a t e

, “ A d d i t i on a l l y

, a sc r ee n i ng l e v e l a n a l y s i s c ondu c t ed b y

t he EPA i n d i c a t e s t ha t a c u t e i m pa c t s o f t he s e H AP f r o m i ndu s t r i a l b o i l e r f a c i l i t i e s a r e

h i g h l y u n l i k e l y

. F o r t he s e r ea s on s

, w e do n o t be l i e v e t ha t e m i ss i on s o f HC l o r

m angane s e f r o m i ndu s t r i a l b o i l e r f a c il i t i e s w il l po s e a s i g n i f i c a n t r i sk t o t he e n v i r on m en t

and f a c il i t i e s a t t e m p t i ng t o c o m p l y w i t h t h e h e a l t h ba s ed a l t e r n a t i v e s fo r t he s e H AP a r e

no t r e q u i r ed t o pe r

fo r m an e c o l o g i c a l a ss e s s m en t. ” EPA s t a t e s i n t he d r a ft f i na l r u l e

t ha t i t s c on c e r n s a b ou t e n v i r on m en t a l i m pa c t s and t he c u m u l a t i v e i m pa c t s o f a c i d g a s e s

“ w e r e no t a ss u a ged b y t he c o m m en t s r e c e i v e d

. ” C o u l d EPA p l ea s e d e sc r i be i n t he

p r ea m b l e w ha t ha s c ha n ged s i n c e 2004 t ha t l ed t o i t s r ee v a l ua t i o n o f e n v i r on m en t a l

i m pa c t s and i m pa c t s o f a c u t e e x po s u r e t o a c i d ga s e s ? C o u l d EPA a l s o e x p l a i n i n m o r e

de t a i l w h y t he i n fo r m a t i on p r o v i de d i n t he c o m m en t s f a ll s s h o r t ?

EPA R e s pon s e : N u m e r ou s r e s ea r c h s t u d i e s o v e r t he l a s t s e v e r a l de c a de s ha v e s ho w n

t ha t a t m o s phe r i c l e v e l s o f v a r i ou s a c i d s ha v e c on t r i bu t e d t o c u rr e n t l e v e l s o f

en v i r on m en t a l da m age i n an y n u m be r o f s en s i t i v e e n v i r on m en t s a c r o ss t h e U S

. M o r e

r e c en t l y

, r e s ea r c he r s i n E u r ope ha v e d e m on s t r a t ed t h a t H C l e m i ss i on s ha v e b een

r e s pon s i b l e fo r m o r e en v i r on m en t a l a c i d i f i c a t i on t han p r e v i ou s l y t houg h t. S i n c e v a r i ou s

a c i d ga s e s ( i n c l u d i ng H C l

, H F

, CL 2

, and H C N ) a r e e m i tt ed b y b o i l e r s and s i n c e b o i l e r s

a r e w i d e l y d i s t r i bu t e d a c r o ss t he U S

, i t i s c l e a r t ha t t he y m a y ha v e c on t r i bu t e d t o t h i s

da m age ( a l t h o ugh t h e e x t en t t o w h i c h i s un k n o w n )

, and t ha t a n y e ffo r t s t o r edu c e t he s e

e m i ss i on s ha v e t he p o t en t i a l t o r e v e r s e t h e s e a c i d i f i c a t i on i m pa c t s on c u rr e n t l y i m pa i r ed

en v i r on m en t s

. A l s o

, i n d u s t r i a l bo i l e r s a r e o f t e n l o c a t ed i n a r ea s w i t h o t h e r s o u r c e s o f

a c i d ga s e s

, a nd w e be li e v e i t i s a p p r o p r i a t e t o c on s i de r t he c u m u l a t i v e h ea l t h a n d

en v i r on m en t a l i m pa c t s o f b o i l e r e m i s s i on s c o m b i ned w i t h e m i ss i on s f r o m o t he r s ou r c e s

. G i v e n t h i s i n fo r m a t i on

, EPA no w be l i e v e s t h a t e ffo r t s t o r e d u c e a l l a c i d ga s a n d a c i d ga s

p r e c u r s o r e m i ss i on s m a y u l t i m a t e l y be v a l u ab l e t o w a r d r e v e r s i ng c u r r en t a c i d i f i ed

e c o sys t e m s

. W h i l e ad d i t i o n a l i n fo r m a t i on t ha t m i gh t a s s i s t u s i n qu a n t i f y i ng t h e s e

i m pa c t s w ou l d be h e l p f u l t o w a r d i n f o r m i ng u s on t he e x t en t o f b o i l e r a c i d ga s

c on t r i bu t i o n s t o t h e s e p r o b l e m a r ea s

, no a dd i t i on a l i n f o r m a t i on w a s r e c e i v e d

. A s a

r e s u l t, o u r un c e r t a i n t i e s l ead u s t o l ean p r o t e c t i v e l y t o w a r d m o r e a c i d ga s c on t r o l r a t h e r

t han l e ss

, l ea v i ng u s l e ss i n c l i n ed t o u s e o u r d i sc r e t i on t o s e t l e ss s t r i ngen t l i m i t s on

a c i d ga s e m i ss i o n s f r o m bo i l e r s

.

D oe s s e c t i on 1 12 ( d ) s pe c i f y t ha t e m i ss i on s l e v e l s m u s t be s e t o r e m i ss i on s s t and a r d s ?

A r e s t and a r d s eq u i v a l en t t o l e v e l s ? C an a s t a nda r d c o n s i s t o f a m e t hod o l og y t ha t

app li e s equ a l l y t o a l l f a c il i t i e s t ha t r e s u l t s i n e x po s u r e l e ss t han a g i v en h e a l t h

t h r e s h o l d ?

EPA R e s pon s e : S e c t i o n 112 s pe c i f i e s t h a t e m i ss i on s t an d a r d s b e e s t a b l i s h ed fo r

c a t ego r i e s o r s u b c a t eg o r i e s o f s ou r c e s

. R e c e n t c ou r t r u l i ng s h a v e m ade i t c l e a r t ha t a

e m i ss i on s s t a n da r d s m u s t be e s t a b l i s h ed fo r ea c h H AP e m i tt ed and t h a t t he s e l i m i t s

m u s t e i t he r s pe c i f

y nu m e r i c a l e m i ss i o n l i m i t s ( e

. g

., po u nd s H AP e m i tt ed pe r h ou r

, pound s H AP e m i tt ed pe r p r o d u c t p r odu c ed

, p ound s H AP e m i tt ed pe r un i t en e r g y

p r odu c e d

, e t c

. ) o r w o r k p r a c t i c e s t a n da r d s ( e

. g

., sc hed u l e d l ea k t e s t i ng a n d

m a i n t enan c e

, p e r i o d i c c l ea n i ng o f w a s t e p i l e s t o r edu c e f u g i t i v e du s t e m i ss i on s

, e t c

. )

,

### S u

m m a ry of I n t e r a g e n cy W o r k i ng C o m m en ts on D r a ft L a n g u a ge u n d er

E O 1 2 866 I n

t e r a g e n cy R ev i e w. S u b j e ct to F ur t h er P ol i cy R ev i e w.

Page 3 of 13 and t ha t t he s e m u s t ap p l y t o a l l s o u r c e s i n t h e c a t ego r y o r s u b c a t eg o r y

. E m i ss i on

s t anda r d s a r e no t e qu i v a l en t t o a m b i en t c on c en t r a t i o n l e v e l s

, w h i c h

, i n ad d i t i o n t o l e v e l s

o f H AP e m i tt ed

, a r e a c o m p l e x f un c t i on o f s t a ck he i gh t s

, s t a c k d i a m e t e r s

, s t a ck

t e m pe r a t u r e s

, and l o c a l m e t eo r o l o g i c a l t e m pe r a t u r e and w i n d f l o w pa tt e r n s

. W h i l e a

s t anda r d c o u l d t h eo r e t i c a ll y c on s i s t o f a m e t hodo l og y s u c h a s t he one s u gge s t e d

, w e do

no t ha v e enoug h e m i ss i on s da t a o n a c i d g a s e s t o c a l c u l a t e s u c h a s t a nda r d

. E v en i f

w e had s u ff i c i e n t i n fo r m a t i o n , t he i m p l e m en t a t i on and e n f o r c e m en t o f s u c h a s t and a r d

w ou l d r eq u i r e a p r o h i b i t i v e a m oun t o f m anp o w e r a t t h e s t a t e and l o c a l l e v e l

. M o r eo v e r

, EPA doe s no t b e l i e v e t h a t a p l a i n r e a d i ng o f s e c t i o n 112 s upp o r t s t he e s t a b l i s h m en t o f

an e m i ss i on s t and a r d ba s ed on t h i s t he o r e t i c a l a p p r oa c h

, s i n c e i t i s t an t a m oun t t o

de v e l o p i ng a d i ff e r en t e m i ss i on s t a n da r d f o r e a c h f a c i l i t y i n t h e c a t eg o r y

. S e c t i on 112

r eq u i r e s e s t a b l i s h m en t o f e m i ss i on s s t and a r d s " f o r e a c h c a t e go r y o r s ub c a t eg o r y " o f

s ou r c e s

, a nd o u r o n l y a u t ho r i t y t o d i s t i n gu i s h a m ong s ou r c e s i n a c a t e go r y i s t o

s ub c a t eg o r i z e ba s e d on c l a ss

, t y pe

, o r s i z e d i s t i n c t i o n s

. W e d o no t h a v e t h e au t h o r i t y

t o d i s t i ng u i s h a m ong i n d i v i du a l s o u r c e s b e y o n d t he s ub c a t eg o r i z a t i on a u t ho r i t y

.

A l s o

, a cc o r d i ng t o t he s t a t i s t i c a l da t a p r o v i de d , t he r e i s a w i de v a r i a t i on i n e x po s u r e s

t ha t w ou l d r e s u l t f r o m s i m il a r e m i ss i o n s l e v e l s o f d i ff e r en t f a c il i t i e s be c au s e o f d i ff e r en t

ph ys i c a l c on f i g u r a t i on s

. It t h e r e fo r e s ee m s po ss i b l e t ha t a n H BE L s e t on a n a t i on w i de

ba s i s w o u l d o n l y b e u s e f u l t o a s m a l l s a m p l e o f f a c i l i t i e s w i t h t h e m o s t ad v an t ageou s

ph ys i c a l c on f i g u r a t i on

. S e c t i on 1 1 2 ( d ) ( 3 ) i s v e r y s pe c i f i c a b ou t t h e m e t hodo l og y t o be

u s ed t o s e t e m i ss i on s l i m i t s gen e r a l l y

. W ha t i s t he m e t hodo l og y ( i n c l u d i n g s t a t i s t i c a l

m e t hodo l og y ) s p e c i f i ed i n 1 12 ( d )( 4 ) fo r e s t a b li s h i n g an H BE L on a na t i on w i d e ba s i s ?

EPA R e s pon s e : S e c t i o n 11 2 ( d ) ( 4 ) d oe s no t s pe c i f y a m e t hodo l o g y t o e s t a b l i s h an

H BE L

. R a t he r

, i t r e f e r s t o s e c t i on 112 ( d ) g en e r a l l y

, and s a ys w e m a y c on s i d e r an

e s t a b li s hed h e a l t h t h r e s h o l d w hen s e tt i ng e m i ss i on s s t and a r d s u n de r s e c t i on 1 1 2 ( d )

. W e b e l i e v e a r ea s on ab l e ap p r oa c h t o c on s i de r an e s t ab li s hed h e a l t h t h r e s h o l d

, i f w e

c hoo s e t o do s o

, w ou l d be t o s i m u l a t e t he a m b i e n t i m pa c t s o f ea c h s ou r c e i n t h e

c a t ego r y u s i ng c o m pu t e r m ode l s f ed w i t h s i t e

- s pe c i f i c i n f o r m a t i on o n e m i ss i on s

, s t a ck

pa r a m e t e r s

, and m e t eo r o l og y

, a nd t o de t e r m i ne t he n a t i on a l l y

- a p p l i c a b l e e m i s s i on l i m i t

w h i c h k eep s a l l s o u r c e i m pa c t s be l o w a s pe c i f i ed c on c en t r a t i on t h r e s ho l d w h i c h i s

de v e l oped c on s i de r i ng c o

- e m i tt ed p o l l u t a n t s ( e

. g

., a l l e m i tt ed a c i d ga s e s ) a l ong w i t h an y

f a c t o r s w h i c h m i gh t b e ne e ded t o en s u r e t ha t pub l i c he a l t h i s p r o t e c t ed w i t h a n a m p l e

m a r g i n o f s a f e t y

. I n t h i s c a s e

, s i n c e w e d i d n o t r e c e i v e a d d i t i on a l i n f o r m a t i on o n c oe m i tt ed a c i d ga s e m i ss i on r a t e s

, w e c o u l d no t c on f i den t l y a p p l y t h i s m e t hodo l og y t o

de v e l op a c r e d i b l e H BE L w h i c h w ou l d p r o t e c t pub l i c he a l t h f r o m a l l a c i d ga s e s f r o m a l l

c o v e r ed s o u r c e s

.

I n i t s p r o p o s a l

, EPA i n d i c a t ed i n t e r e s t i n r e c e i v i ng da t a t o de v e l o p a “ m ode l p l an t ” f o r

ea c h o f t h e s ub c a t ego r i e s , t o e na b l e d i s p e r s i o n m ode li n g

. W o u l dn ’ t t h i s ap p r oa c h

u l t i m a t e l y r eq u i r e s i t e

- s pe c i f i c t e s t i ng a nd an e l i g i b il i t y d e t e r m i na t i on ba s ed o n a c t u a l

e m i ss i on s da t a f r o m a g i v e n p l an t ?

### S u

m m a ry of I n t e r a g e n cy W o r k i ng C o m m en ts on D r a ft L a n g u a ge u n d er

E O 1 2 866 I n

t e r a g e n cy R ev i e w. S u b j e ct to F ur t h er P ol i cy R ev i e w.

Page 4 of 13 EPA R e s pon s e : EPA w a s i n t e r e s t ed i n r e c e i v i ng da t a t o w a r d m ode l p l an t de v e l op m en t

a s a m ean s o f de t e r m i n i ng w he t he r a na t i on w i de H BE L fo r a c i d g a s e s f r o m bo il e r s

m i gh t be s i gn i f i c an t l y d i f f e r en t f r o m a M A C T s t anda r d f o r t he m

. W h i l e s i t e

- s pe c i f i c da t a

on a l l f a c il i t i e s w ou l d be i de a l f o r t h i s de t e r m i na t i o n

, EPA i s a w a r e t ha t t he s i z e o f t h i s

s ou r c e c a t ego r y m a k e s i t u n l i k e l y t ha t s u c h a da t aba s e c o u l d b e ga t h e r ed b e t w een t he

p r opo s a l and t h e f i n a l r u l e

. A s s u c h

, w e pa r e d do w n t he da t a r eque s t t o b e m o r e

m anageab l e.

H a s EPA c on s i de r an H BE L fo r m angane s e

, o r t he u s e o f a T o t a l S e l e c t M e t a l s

app r oa c h f

o r m angane s e? If no t

, w h y ?

EPA R e s pon s e : EPA c on s i de r ed bu t d i d no t i n c l u d e an o p t i on f o r an H BE L fo r

m angane s e i n t h e J une 2010 p r opo s a l o r t he f i n a l r u l e

. B a s e d on a m b i en t m on i t o r i ng

e ff o r t s o v e r

t h e l a s t s e v e r a l y e a r s ( i n c l u d i ng a D e t r o i t s t ud y and a m b i en t m on i t o r i ng a t

v a r i ou s sc h o o l s a c r o ss t he c o u n t r y )

, EPA i s a w a r e o f a nu m be r o f a r ea s na t i on w i d e

w he r e a m b i en t c on c en t r a t i on s o f m angane s e c u rr en t l y e x c eed t he c h r o n i c r e f e r en c e

c on c en t r a t i on ( R f C ) fo r m angane s e

, and

, i n o r de r t o p r o t e c t pu b l i c h ea l t h w i t h a n a m p l e

m a r g i n o f s a f e t y

, EPA doe s no t w i s h t o r e l a x c on t r o l s o n m angane s e i n t he s e a r ea s

. A s

a r e s u l t, t h i s na t i o n a l s t and a r d h a s bee n c a l c u l a t e d u s i ng t he M A C T app r oa c h

.

C o s t E s t i m a t es

T he ad j u s t m en t o f s ub c a t eg o r i e s an d t he n e w e m i ss i on s l i m i t s ba s ed o n da t a r e c e i v e d

ha s l o w e r ed EPA ’ s p r o j e c t ed t o t a l c a p i t a l c o s t s b y $4

. 4 b ill i o n

, a r e du c t i on o f a l m o s t 50

pe r c en t. R ega r d i ng i n d u s t r y ’ s c l a i m t ha t t he c ap i t a l c o s t s o f t he p r opo s e d r u l e w o u l d

ha v e bee n c l o s e r t o $20 b i ll i o n , t o w ha t e x t en t ha s EPA m od i f i ed i t s c o s t e s t i m a t e s t o

r e f l e c t i ndu s t r y ’ s c o m m en t s ?

EPA R e s pon s e : T he $ 20 b ill i on e s t i m a t e p r o v i de d b y i ndu s t r y s t a k e h o l d e r s a t p r opo s a l

a ss u m e s t ha t m o s t a ff e c t ed s o u r c e s w i t h c o a l

, b i o m a ss

, l i q u i d

, and G a s 2 b o i l e r s w ou l d

i n s t a l l e v e r y t y p e o f e m i s s i on s c o n t r o l a v a i l ab l e fo r u n i t s t ha t d i d no t m ee t t he f l o o r

nu m be r( s )

. EPA ha s m ade s e v e r a l m od i f i c a t i on s t o i t s c o s t an a l y s i s t o i n c o r p o r a t e

s ugge s t i on s f r o m t he a ff e c t ed i n du s t r y

. W e h a v e i n c o r p o r a t e d i ndu s t r y s ug g e s t i on s t o

c on s i d e r o t he r s c r ubb e r t e c h n o l o g i e s a t f a c il i t i e s t ha t l a ck w a s t e w a t e r d i sc ha r ge

pe r m i t s

. T he f i n a l an a l y s i s c on s i de r s d r y i n j e c t i o n /f ab r i c f i l t e r c o m b i ned t e c hn o l o g y i n

t he s e c a s e s

. W e ha v e a l s o ad j u s t ed o u r a ss u m p t i on s t o i n c r ea s e t he n u m be r o f u n i t s

e x pe c t ed t o i n s t a l l C O c a t a l y s t t o m ee t t he C O l i m i t s

, c on s i s t e n t w i t h i ndu s t r y

c o mm en t s t ha t m an y un i t s w i l l r eq u i r e m o r e t han a t u n e

- up o r c o m bu s t i on c on t r o l s

i n s t a l l e d i n o r de r t o m ee t t he s e l i m i t s

. W e h a v e m ade s e v e r a l r e v i s i on s t o t he

r eg u l a t o r y p r o v i s i on s an d da t a s e t u s ed t o ge n e r a t e t h e c o s t i m pa c t s i n t he f i n a l r u l e

.

T he m a j o r r eg u l a t o r y p r o v i s i on s r e s u l t i ng i n a r edu c t i on i n t he c o s t e s t i m a t e s w e r e :

• C on s o l i d a t i ng t h e b i o m a ss and c o a l s ub c a t e g o r i e s i n t o a s i n g l e s o l i d f u e l

s ub c a t eg o r y fo r

f u e l

- b a s ed H AP and H AP s u r r oga t e s ( H g

, HC l

, P M )

. T h i s

### S u

m m a ry of I n t e r a g e n cy W o r k i ng C o m m en ts on D r a ft L a n g u a ge u n d er

E O 1 2 866 I n

t e r a g e n cy R ev i e w. S u b j e ct to F ur t h er P ol i cy R ev i e w.

Page 5 of 13 p r o v i s i on ha s r edu c ed t h e nu m be r o f b i o m a s s un i t s e x pe c t ed t o r eq u i r e HCl

c on t r o l i n o r d e r

t o m ee t t he e m i ss i o n l i m i t s

.

• C r ea t i ng a h y b r i d g r a t e / s u s pen s i o n c a t e g o r y f o r c o m bu s t i on b a s ed H AP and

H AP s u rr oga t e s t o ad d r e ss b o i l e r s w i t h u n i qu e de s i gn f e a t u r e s t o h a n d l e t h e

c o m bu s t i on o f f u e l s w i t h a v e r y h i gh m o i s t u r e c on t en t. T h i s i n c r ea s ed t he C O

e m i ss i on l e v e l fo r

t h i s s u b c a t e g o r y

, w h i c h r e s u l t e d i n f e w e r u n i t s n ee d i ng C O

c a t a l y s t o r a d v an c e d c o m bu s t i on c o n t r o l s i n o r de r t o m ee t t he l i m i t.

• C r ea t i ng a l i m i t ed u s e s ub c a t ego r y

. T h i s s u b c a t ego r y r e m o v e s t he c on t r o l

,

t e s t i ng an d m on i t o r i ng c o s t s fo r 134 l a r ge b o il e r s f i r i ng s o l i d and l i q u i d f u e l s t ha t

ope r a t e l e ss t ha n 876 h ou r s pe r y e a r

.

• C r ea t i ng a f u e l ga s s pe c i f i c a t i on t o a l l o w ad d i t i on a l ga s eou s f u e l s t o qu a l i f y fo r

t he ga s 1 s ub c a t e go r y

. B a s e d on t h e da t a i n t he r e c o r d

, m o s t f ue l s a r e e x pe c t ed

t o m ee t t he m e r c u r y s pe c i f i c a t i o n and w il l q u a l i f y fo r a w o r k p r a c t i c e s t a n da r d

i n s t e ad o f m ee t i n g e m i ss i on l i m i t s

. T h e nu m be r o f ga s 2 u n i t s e s t i m a t ed t o m ee t

e m i ss i on l i m i t s ha s bee n r edu c ed t o an e s t i m a t ed 71 u n i t s i n t h e f i n a l r u l e

,

c o m pa r ed w i t h an e s t i m a t ed 199 ga s 2 u n i t s i n t he p r opo s e d an a l y s i s

. T h i s i s

l i k e l y an o v e r e s t i m a t e be c au s e w e a l s o h a v e e x e m p t ed un i t s t h a t a r e pa r t o f t h e

a ff e c t ed s o u r c e o f ano t he r M A C T o r a r e u s ed t o c o m p l y w i t h ano t h e r M A C T

( p r o v i d e d t ha t 50 % o r m o r e o f t he hea t i n p u t c o m e s f r o m a M A C T r eg u l a t ed ga s

s t r ea m )

.

• R e m o v i ng t h e C O C E M S m on i t o r i ng r eq u i r e m en t f o r u n i t s w i t h a hea t i n pu t

c apa c i t y g r e a t e r t han 1 00 mm B t u / h r

, a l t hou gh t h i s c hang e i n m on i t o r i ng i s o ff s e t

i n p a r t b y O 2 p a r a m e t e r m on i t o r i ng r e q u i r e m en t.

• R e m o v i ng d up li c a t i v e m on i t o r i n g r e q u i r e m en t s fo r P M C E M S

, opa c i t y m on i t o r i ng

and bag l e a k de t e c t i on m on i t o r s

. T h e p r o p o s a l h a d i n c l ude d r e q u i r e m en t s t o

m ea s u r e m o r e t han one o f t he s e pa r a m e t e r s and t h i s d u p l i c a t i on ha s bee n

r e m o v ed f r o m t he f i n a l r u l e

.

• R edu c i ng t e s t i n g f r e quen cy f o r d i o x i n /f u r a n e m i ss i on s

. T h e f i n a l r u l e r e q u i r e s a

one

- t i m e i n i t i a l t e s t i n s t ead o f ann ua l t e s t i ng

.

T he m a j o r da t a ana l y s i s e l e m en t s r e s u l t i ng i n a r edu c t i on i n c o s t w e r e :

• A s d i sc u ss e d i n de t a i l i n t he “ H an d l i ng and P r o c e ss i n g o f C o rr e c t i o n s and N e w

D a t a i n t he EPA

I CR D a t aba s e s ( G i b s o n

, 20 1 1 )” m e m o r andu m

, s e v e r a l ne w da t a

s ub m i ss i on s a n d c o r r e c t i on s t o e x i s t i ng en t r i e s w e r e r e c e i v ed f r o m t he pub l i c

### S u

m m a ry of I n t e r a g e n cy W o r k i ng C o m m en ts on D r a ft L a n g u a ge u n d er

E O 1 2 866 I n

t e r a g e n cy R ev i e w. S u b j e ct to F ur t h er P ol i cy R ev i e w.

Page 6 of 13 c o mm en t p r o c e ss

. T h e s e ne w da t a w e r e i n c o r po r a t e d i n t o t h e r e v i s e d M A C T

f l o o r

, ba s e li ne e m i ss i o n

, an d e m i ss i on r edu c t i on an a l y s i s

.

• T he c r i t e r i a fo r c on s i d e r i ng d a t a i n t he M A C T f l o o r an a l y s i s w e r e r e v i s ed t o

r edu c e t he l o w b i a s i m pa c t f r o m t e s t s c ondu c t ed du r i n g c o

- f i r i ng c on f i gu r a t i o n s

. I n t he f i n a l r u l e

, t he t e s t had t o be f i r ed w i t h a t l ea s t 90 p e r c en t o f i t s h e a t i npu t

be l o n g i ng t o t he s a m e s ub c a t ego r y fo r e x i s t i n g s ou r c e s and 1 0 0 p e r c en t o f i t s

hea t i npu t b e l on g i n g t o t he s a m e s ub c a t ego r y fo r ne w s ou r c e s

. A t p r opo s a l

, da t a

w e r e c on s i d e r ed r e l e v an t fo r c on s i de r a t i on i n t he M A C T f l o o r an a l y s i s i f a t l ea s t

10 pe r c e n t o f i t s hea t i n pu t b e l o nged t o t he s a m e s ub c a t ego r y

. T h i s m od i f i ed t he

m a k e

- up o f t he t op p e r fo r m i ng u n i t s a n d t he r e s u l t i n g e m i ss i o n li m i t s

.

• T he C O e m i ss i on da t a an a l y s i s w a s r e v i s ed t o i n c o r p o r a t e m ea s u r e m en t e rr o r

r e s u l t i ng f r o m c a li b r a t i o n e r r o r

, sys t e m b i a s

, a nd d r i ft r eq u i r e m en t s u s i ng t he

r epo r t ed i n s t r u m en t c a l i b r a t i on s pa n a s t h e b a s i s fo r e s t i m a t i ng t h e e r r o r

. T h i s

i n c r ea s ed C O e m i ss i on l e v e l s i n s e v e r a l c a s e s

.

• S e v e r a l e l e m en t s o f t he M A C T f l oo r a n a l y s i s s t a t i s t i c a l app r oa c h w e r e c h a nged

a ft e r c on s i de r a t i on o f p u b l i c c o m m en t, w h i c h r e s u l t ed i n i n c r ea s ed e m i ss i on

l i m i t s i n s o m e c a s e s

. T he m e m o r andu m “ R e v i s ed M A C T F l o o r A n a l y s i s ( 201 1 )

f o r t he I ndu s t r i a l

, C o m m e r c i a l

, and I n s t i t u t i on a l B o i l e r s and P r o c e s s H ea t e r s

N a t i o na l E m i ss i on S t an d a r d s f o r H a z a r dou s A i r P o l l u t a n t s

– M a j o r S ou r c e ”

de t a il s t he s p e c i f i c s t a t i s t i c a l m od i f i c a t i on s t h a t w e r e m ade i n t he f i n a l a n a l y s i s

.

W e a l s o no t e t ha t t h e r e i s n o e s t i m a t e o f t he c o s t s a v i ng s t h a t w ou l d r e s u l t f r o m t he

H BE L a l t e r n a t i v e i n t h e R eg u l a t o r y I m pa c t A na l y s i s

. A b s e n t t h i s i n f o r m a t i on

, a f

a c i l i t yb y

- f a c il i t y H BE L

, a s p r o po s ed b y i ndu s t r y

, m a y s t il l r e s u l t i n s i g n i f i c a n t c o s t s a v i ng s

. C on s i s t e n t w i t h E x e c u t i v e O r d e r 13 5 63

, c o u l d EPA quan t i f y t he an t i c i p a t ed c o s t s o f t h e

d r a ft f i n a l b o i l e r M A C T w i t h a n d w i t hou t an H BE L a l t e r na t i v e ? R eg a r d l e ss o f t he

m a r g i na l i m pa c t ( bo t h c o s t s an d bene f i t s ) o f t he H BE L r e l a t i v e t o t he d r a ft f i n a l r u l e ’ s

c ho s en a l t e r na t i v e

, t h i s s up p l e m en t a l an a l y s i s m a y p r o v i de u s e f u l i n f o r m a t i on du r i n g t he

r e c on s i d e r a t i on p ha s e o f t h i s f i n a l r u l e EPA ha s c o m m i tt ed t o

.

EPA R e s pon s e : W e c anno t c o s t a f a c il i t y

- b y

- f a c il i t y H BE L be c au s e w e do no t ha v e t he

da t a t o d e r i v e s u c h f a c il i t y

- b y

- f a c il i t y l i m i t s

, l e t a l o n e c o s t o u t t he i m p l e m en t a t i o n o f a

p r og r a m t o s upp o r t t h e i r i m p l e m en t a t i o n and en f o r c e m en t. A dd i t i on a l l y

, a s e x p l a i ned

abo v e

, w e do no t b e l i e v e a f a c i l i t y

- b y

- f

a c i l i t y H BE L w ou l d be c on s i s t e n t w i t h s e c t i o n

112 ( d )

, and w e do n o t b e l i e v e i t i s ne c e ss a r y t o de v e l op a c o s t a na l ys i s fo r a n op t i o n

t ha t doe s no t c o m po r t w i t h t he l a ngua g e o f t h e A c t.

E m i ss i on s L i m i ts

### S u

m m a ry of I n t e r a g e n cy W o r k i ng C o m m en ts on D r a ft L a n g u a ge u n d er

E O 1 2 866 I n

t e r a g e n cy R ev i e w. S u b j e ct to F ur t h er P ol i cy R ev i e w.

Page 7 of 13 I s EPA s u r e t ha t t h e C O and N O x l i m i t s c an b e m e t s i m u l t ane o u s l y g i v en t h a t N O x

i n c r ea s e s w hen C O de c r ea s e s and v i c e v e r s a ? If s o

, p l e a s e de s c r i be i n m o r e de t a i l t h e

r ea s o n i n g be h i n d t h i s c on c l u s i o n

.

EPA R e s pon s e : EPA doe s no t ha v e s pe c i f i c i n f o r m a t i on on t he N O x l i m i t s and N O x

e m i ss i on s f

o r m o s t o f t he u n i t s t h a t w i l l be s u b j e c t t o t he s t and a r d

. H o w e v e r , t h e C O

l i m i t s ha v e b e en r e v i s ed an d c o m p li an c e i s b a s ed on a f u l l l oad t e s t, w h i l e p e r i od s o f

s t a r t up a nd s hu t do w n a r e s ub j e c t t o a w o r k p r a c t i c e s t and a r d

. T o t h e e x t en t t ha t u n i t s

c anno t m ee t t he C O f l oo r and m a i n t a i n N O x a t t he r e q u i r e d l e v e l

, o x i d a t i on c a t a l ys t s

c an be u s e d t o r edu c e C O w i t hou t a n i n c r e a s e i n N O x

. EPA ha s i n c l uded c o s t s fo r

t he s e c on t r o l s fo r m an y un i t s i n t he c o s t a n a l y s i s

, a l t hough da t a o n N O x r eq u i r e m en t s

w e r e no t s u f

f i c i en t t o a l l o w N O x

t o be pa r t o f t he an a l ys e s

.

E ne r g y A u d i ts

W ill f ed e r a l ag e n c i e s ha v e an o p po r t u n i t y t o c o mm en t on t he en e r g y au d i t p r o v i s i o n s

aga i n w hen t he N o t i c e o r R e c o n s i de r a t i on i s p ub l i s h ed? T he r e i s c on c e r n t ha t r e q u i r i ng

F ede r a l f a c il i t i e s t o c o m p l y w i t h t he e n e r g y au d i t p r o v i s i on o f t he r u l e i s d u p l i c a t i v e a n d

unne c e ss a r y s i n c e F ede r a l f a c il i t i e s a r e a l r ea d y s ubj e c t t o ene r g y r e d u c t i on s g o a l s

unde r E .O. 13514 and " C o m p r ehen s i v e E n e r g y and W a t e r E v a l ua t i on s " und e r t he

E ne r g y I nd e pend e n c e an d S e c u r i t y A c t f o r w h i c h D o E ha s de v e l o p ed de t a i l ed g u i d an c e

and c r i t e r i a

. S i m il a r l y

, ha s EPA c on s i d e r e d c l a r i f y i ng t h a t t he e ne r g y au d i t s r eq u i r ed b y

E I SA and E .O. 13514 w ou l d be s u f f i c i e n t f o r c o m p li an c e w i t h t h i s p r o v i s i on ?

EPA R e s pon s e : EPA ha s i n c l ud e d l ang u age t ha t au d i t s t ha t ha v e be e n c ondu c t ed i n

t he l a s t t h r ee y e a r s c an qu a l i f y a s s a t i s f

y i ng t h e ene r g y a ss e ss m en t r eq u i r e m en t i f t he y

m ee t t he f i n a l e n e r g y a s s e ss m en t r equ i r e m en t s

.

T une

- U ps

S e v e r a l r e v i e w e r s s ug g e s t ed t ha t t h e do c u m en t s p r o v i d e d t o t h e i n t e r agen cy g r o u p do

no t p r o v i d e s up p o r t fo r EPA ’ s a ss e r t i on t h a t a 1 % e ff i c i en c y r e s u l t s f r o m a t une

- up –

c an EPA p r o v i d e m o r e i n fo r m a t i on t o s u ppo r t t he 1 % e f f i c i en cy a s s u m p t i on i n c l ude d i n

t he ben e f i t s e s t i m a t e s :

T he f i r s t do c u m en t a ss e r t s a 1 t o 5 % e f f i c i e n c y ga i n i n t h e e x e c u t i v e s u m m a r y

, bu t doe s

no t p r o v i d e a ba s i s fo r t he s t a t e m en t. T h e de t a i l ed t a b l e s p r e s en t a c on f u s i ng p i c t u r e

,

s i n c e t he t i m e s i n c e l a s t t une

- up w ou l d ha v e a s i g n i f i c a n t i m pa c t on t he p r o j e c t ed f u e l

s a v i ng s and c o s t s

. N o r i s e v e r y b o i l e r r e c o m m ended fo r t une

- u p

. T he c o s t s a v i ng s f o r

annu a l t u n e

- up s a r en ’ t p r e s en t ed he r e

.

T he s e c o nd do c u m en t w a s p r odu c ed b y “ T he S u s t a i n ab l e E ne r g y A u t ho r i t y o f I r e l and

, ”

bu t i t i s n ’ t s o u r c ed e i t he r

. T he g r a p h i s p r e s e n t ed w i t hou t ad d i t i o n a l i n f o r m a t i on t o

s uppo r t i t

. A l s o p r o b l e m a t i c i s t ha t t h e do c u m en t i s s pe c i f i c a l l y a b ou t ho m e bo i l e r s ( i

. e

.,

v e r y s m a ll a nd no t s ub j e c t t o t h i s r u l e ) a n d i s l i m i t ed t o ho m e hea t i ng f u e l s o u r c e s ( i

. e

.,

no t c o a l o r b i o f u e l s )

.

### S u

m m a ry of I n t e r a g e n cy W o r k i ng C o m m en ts on D r a ft L a n g u a ge u n d er

E O 1 2 866 I n

t e r a g e n cy R ev i e w. S u b j e ct to F ur t h er P ol i cy R ev i e w.

Page 8 of 13 EPA R e s pon s e : EPA ha s p r o v i ded s e v e r a l a dd i t i o n a l r e f e r en c e s t ha t s upp o r t a 1

pe r c en t e f

f i c i en cy g a i n a s a c o n s e r v a t i v e a ss u m p t i on

.

R I A

C ha l l e n ge s i n M one t i z a t i on o f t he B ene f i t s o f R edu c t i on s i n H APs

W e a p p l aud EPA

fo r i n c l u d i ng de t a i l ed m ode li ng o f t h e M a j o r S ou r c e B o i l e r s M A C T

r u l e ’ s e s t i m a t ed r edu c t i on s i n m e r c u r y d i s po s i t i on s

, w h i c h i s a g r ea t i n i t i a l s t ep t o w a r d s

quan t i f y i ng b ene f i t s f

o r m e r c u r y r e d u c t i on s

. W e a l s o ap p l a u d EPA ’ s m o r e de t a il ed

m ode li ng

, a t t he b o i l e r- s e c t o r- l e v e l

, o f t he M a j o r S ou r c e B o i l e r s M A C T r u l e ’ s e s t i m a t ed

bene f i t s

. H o w e v e r

, t he p r ea m b l e and R I A w ou l d bene f i t f r o m a f u l l e r d i sc u s s i on

r ega r d i ng t h e d i f

f i c u l t i e s p r e v en t i n g m one t i z a t i on o f r e du c t i on s i n H AP s

, d i sc u s s i o n o f

t he qu a l i t a t i v e ben e f i t s o f r edu c i ng H AP s

, an d w h y quan t i f i e d ben e f i t s a r e r edu c t i on s i n

P M and o z one

. A t a m i n i m u m

, w e t h i n k EPA ’ s d i sc u s s i on on t h i s t o p i c c a n be i m p r o v ed

b y add r e s s i ng t he t one o f t he p r ea m b l e a n d R I A l an g uage

.

F o r e x a m p l e

, w e s ugge s t t ha t t h i s i ss ue b e a c k no w l edged e x p li c i t l y i n t he i n t r odu c t i on

, t he e x e c u t i v e s u m m a r y

, e t c

. A foo t no t e t o T a b l e 1

- 1 i s n ’ t s u f f i c i en t. T he f a c t t h a t t h i s

R I A f a i l s t o m one t i z e t he o b j e c t i v e o f t he r eg u l a t i o n i s no t no t ed e x p l i c i t l y un t i l t h e

bo tt o m o f page 7

- 1

.

EPA R e s pon s e : W e ha v e i n c l u d ed a s u m m a r y o f t he c h a ll enge s o f qua n t i f y i ng H AP

bene f i t s i n t he be n e f i t s s e c t i o n o f t h e p r e a m b l e and a f u l l d i sc u s s i on i n s e c t i on 7

. 5

. 5 o f

t he r e v i s e d R I A

. A qu a l i t a t i v e a ss e ss m en t o f t he H AP bene f i t s a r e i n c l ude d i n s e c t i on

7

. 5

. 5 o f t he R I A

.

P r e s en t a t i on o f D i r e c t B e n e f i ts

S ugge s t pu t t i n g t he H AP ben e f i t s d i sc u s s i on t ha t be g i n s on p a ge 7

- 36 up f r on t m o r e

p r o m i nen t l y

, s i n c e t h i s i s t he r ea s on t he C l ea n A i r A c t r eq u i r e s r eg u l a t i on s o f t he s e

s ou r c e s

, a nd t h i s s h o u l d t h e r e fo r e n o t be o m i t t ed

.

EPA R e s pon s e : W e ha v e a dded m o r e H AP bene f i t s i n f o r m a t i on t o t h e be g i n n i ng o f t he

bene f i t s s e c t i o n p r e a m b l e , t he e x e c u t i v e s u mm a r y o f t he R I A

, and t he b e g i n n i n g o f t h e

bene f i t s c h a p t e r o f t he R I A

. A q u a l i t a t i v e a s s e ss m en t o f t he H AP bene f i t s a r e i n c l uded

i n s e c t i on 7

. 5

. 5 o f t he R I A

.

I n t e r a c t i o n be t w een t h i s r u l e an d o t h e rs

C an EPA i n c l ude a d i sc u s s i on o f t he i n t e r a c t i o n be t w een t h i s r u l e and o t he r s t ha t

r eg u l a t e P M ? If P M i s aba t e d f r o m bo i l e r s

, d o e s t ha t m ean m o r e P M c an be e m i tt ed

f r o m o t he r s ou r c e s ? If P M ha s a l r e a d y be e n aba t ed f r o m o t he r s ou r c e s

, and a s a c obene f i t f r o m o t he r r u l e s

, d oe s t ha t m ean t he EPA ’ s s t anda r d v a l ua t i on o f P M r edu c t i on s

i s be c o m i ng o v e r s t a t ed? H a s EPA m ade an y ad j u s t m en t s t o t h i s an a l y s i s t o a c c oun t f o r

po t en t i a l d o u b l e

- c oun t i ng o f i m pa c t s ( bo t h c o s t s and b e ne f i t s ) ; f o r e x a m p l e

, b y

### S u

m m a ry of I n t e r a g e n cy W o r k i ng C o m m en ts on D r a ft L a n g u a ge u n d er

E O 1 2 866 I n

t e r a g e n cy R ev i e w. S u b j e ct to F ur t h er P ol i cy R ev i e w.

Page 9 of 13 c on s i d e r i ng w he t h e r s o m e bo i l e r s i n P M

- non a tt a i n m en t a r ea s m a y a l r ead y be o b l i g e d t o

c on t r o l P M o r p r e c u r s o r s ?

EPA R e s pon s e : W e ha v e a d ded t h i s d i sc u s s i on t o s e c t i o n 7

. 2 o f t he R I A

.

D i sc u s s i on o f EPA ’ s A na l y s i s on t he E m p l o y m en t I m pa c t s o f t he R u l es

T he R I A w ou l d b ene f i t g r ea t l y f r o m c l a r i f i ed e x po s i t i o n o f t he m e t hodo l o g y u s ed f o r

e m p l o y m en t i m pa c t s

.

I n pa r t i c u l a r

, EPA s ho u l d be c l ea r t h a t t he y a r e no t u s i n g t he m u l t i m a r k e t, pa r t i a l

equ il i b r i u m m ode l t o e s t i m a t e e m p l o y m en t e ff e c t s

. T he y a r e o n l y u s i ng pa r a m e t e r s f r o m

T a b l e III o f t h e M o r gen s t e r n e t a l pap e r ( f o r n o w . O n t he c a l l t he y m en t i one d po t e n t i a ll y

quan t i f y i ng t he i m pa c t s fo r

t he t w o o t h e r e m p l o y m en t e ff e c t s t he y li s t ed

, b u t a r e no t

add r e ss e d b y M o r gen s t e r n e t a l )

. I ’ v e m ade s o m e s ugge s t i on s i n t he r e d l i ne t e x t.

T he e m p l o y m en t e ff e c t s , fo r t he M a j o r S ou r c e r u l e

, s h o u l d m a t c h i n t h e p r ea m b l e a nd

t he R I A

. C u rr e n t l y , t he y d i ff e r

.

E m p l o y m en t i m pa c t s a r e r epo r t ed a s r ange s

, and a r e e s t i m a t ed u s i n g pa r a m e t e r s f r o m

an a c ade m i c pap e r i n t h e l i t e r a t u r e ( M o r gen s t e r n

, P i z e r

, a nd S h i h ( 200 2 ))

. T he p a pe r

,

e x a m i n i ng d a t a f r o m fou r i n d u s t r i e s

, c on c l ud e s t ha t i n c r e a s ed p o ll u t i on a b a t e m en t

e x pend i t u r e s ge n e r a l l y d o no t c a u s e a s i g n i f i c an t c han g e i n e m p l o y m en t, and i s s o

de sc r i bed i n bo t h t he p r ea m b l e and R I A . I t i s he l p f u l t ha t EPA i n c l ude s a de t a i l e d

d i sc u s s i o n o f t h e po t e n t i a l i ss ue s a s s o c i a t ed w i t h u s i n g t he pap e r and i t s l i m i t a t i on s

,

w h il e a l s o de sc r i b i ng i t s a p p r o p r i a t ene s s fo r u s e i n t h i s c on t e x t.

T he p a pe r d i v i d e s l ab o r e ff e c t s i n t o t h r ee p a r t s : a de m and e ff e c t, a c o s t e ff e c t

, and a

f a c t o r- s h i ft e ff e c t ( c h a nge s i n l a bo r

- i n t en s i t y )

. T he de m and e ff e c t i s n ega t i v e

, c o s t e f f e c t

i s po s i t i v e

, bu t t he f a c t o r- s h i f t e ff e c t c o u l d b e e i t h e r n e ga t i v e o r po s i t i v e

, dep e n d i ng

upon t h e r e l a t i v e l abo r- i n t en s i t y o f po s t -r e g u l a t i o n p r o d u c t i on t e c hn o l o g i e s

. F o r

t r an s p a r en cy a nd m e t hodo l o g i c a l c l a r i t y

, i t w o u l d be h e l p f u l t o d e sc r i be t he c a l c u l a t i o n s

f o r a l l t h r ee e f

f e c t s

, i n t h e R I A

. C u r r en t l y o n l y t he de m and e ff e c t ha s a de sc r i p t i on

. I n ad d i t i on

, be c au s e t he f i na l r u l e i n c l ude s r e q u i r e m en t s fo r w o r k p r a c t i c e s t a nda r d s

(“ t un e

- up s ”) t h a t w e r e no t i n t he p r opo s a l

, i t w ou l d be h e l p f u l t o i n c l u de d i sc u s s i o n o f

ho w t h i s c ha n ge ha s i m pa c t ed t he e m p l o y m en t e s t i m a t e s ( i f w o r k p r a c t i c e s t an d a r d s

a r e l ab o r

- i n t e n s i v e

, p r e s u m ab l y t h r ough t he f a c t o r- s h i ft e ff e c t )

, s ep a r a t e l y b y t he A r e a

S ou r c e B o il e r s M A C T r u l e ( w he r e a l l s ou r c e s a r e s ubj e c t t o w o r k p r a c t i c e s t an d a r d s )

v e r s u s t he M a j o r S ou r c e B o i l e r s M A C T r u l e ( w he r e s o m e s ou r c e s f a c e w o r k p r a c t i c e

s t anda r d s )

.

### S u

m m a ry of I n t e r a g e n cy W o r k i ng C o m m en ts on D r a ft L a n g u a ge u n d er

E O 1 2 866 I n

t e r a g e n cy R ev i e w. S u b j e ct to F ur t h er P ol i cy R ev i e w.

Page 10 of 13 It appe a r s t ha t EPA a ss u m e s e m p l o y m en t c hange s a r e p r opo r t i o n a l t o o u t pu t c hange s ;

i f t h i s i s no t t h e c a s e

, EPA s ho u l d c l a r i f y t ha t i n t he t e x t. If i t i s t h e c a s e

, t hen t h e t e x t

de sc r i b i ng t he m u l t i

- m a r k e t m ode l i n A pp e n d i x 2 i s i n c on s i s t en t w i t h t he e m p l o y m en t

e ff e c t a ss u m p t i on

. S pe c i f i c a ll y , t he f o l l o w i ng s t a t e m en t s a r e p r o b l e m a t i c :

 M ode l t i m e ho r i z o n (“ s ho r t -r u n ” )

– f i x ed p r o d u c t i on r e s ou r c e s ( e

. g

., c a p i t a l ) l ead s t o an up w a r d

- s l o p i ng

i ndu s t r y s u pp l y f un c t i on

– f i r m s c anno t a l t e r i npu t m i x e s ; t he r e i s n o s u b s t i t u t i on a m ong p r odu c t i o n

i np u t s ( c a p i t a l

, l ab o r

, en e r g y i n t e r m ed i a t e s

, a nd o t h e r i n t e r m ed i a t e s )

– p r i c e o f l a b o r ( i

. e

., w age ) i s f i x ed

I gno r i ng i n t e r m ed i a t e i npu t s ( w h i c h y ou c an b e c au s e t h e i n t e r m ed i a t e t e c hn o l og y i s

a ss u m ed Leon t i e f )

, i f c a p i t a l and w age s a r e f i x ed

, ou t pu t c an c h ange o n l y b y c h a n g i ng

l ab o r h o u r s o f e m p l o y m en t. H o w e v e r

, an y g i v en pe r c e n t c ha n ge i n e m p l o y m en t w i t h

c ap i t a l f i x ed w i l l l ead t o a s m a l l e r p e r c en t c h a nge i n ou t pu t ( depe n d i ng on t he

c ap i t a l / l abo r r a t i o o f t he i ndu s t r y )

, w h i c h i s i n c on s i s t en t w i t h t he a ss u m p t i on t ha t

e m p l o y m en t c hange s a r e p r opo r t i o n a l t o o u t p u t.

W e d o no t r e c o m m end c hang i n g t he a bo v e t e x t, s i n c e ( e x c ep t f o r t he L eon t i e f

i n t e r m ed i a t e a ss u m p t i o n ) i t de s c r i be s s t a nda r d a ss u m p t i on s fo r pa r t i a l eq u il i b r i u m

m ode l s . O ne op t i o n i s t o r ed r a ft t he t e x t de sc r i b i ng t he “ m ed i u m r un ” e m p l o y m en t

a ss u m p t i on s m o r e c a r e f u l l y . O r

, y ou c o u l d p r o v i d e “ s h o r t

- r un ” and “ m ed i u m -r un ”

e m p l o y m en t c hange e s t i m a t e s

. T he n e x t pa r ag r aph de sc r i be s ho w y ou c o u l d c a l c u l a t e

“ s ho r t r un ” e m p l o y m en t e ff e c t s c on s i s t en t w i t h t he m u l t i

- m a r k e t m ode l a ss u m p t i on s

( e ss en t i a l l y

, a s s u m i ng c a p i t a l a n d w age s a r e f i x ed )

. T he “ m ed i u m -r un ” e m p l o y m en t

c hange s y ou ’ v e a l r e ad y c a l c u l a t ed a r e an a p p r o x i m a t i on o f t h e e m p l o y m en t e ff e c t a ft e r

t he c a p i t a l s t o ck ha s h ad a f e w y ea r s t o ad j u s t.

G i v e n t he e m p l o y m en t da t a and s o m e c o m p e n s a t i on da t a f r o m B L S

, i t s ho u l d be

po ss i b l e t o e s t i m a t e t he i m p li e d w age b il l f o r e a c h o f t h e 100 s e c t o r s

. U s i n g t he s ha r e

o f t he w age b il l i n t o t a l ou t pu t

, and a ss u m i ng f i x ed w age s ( and i g n o r i ng i n t e r m ed i a t e

i np u t s )

, i t w ou l d t h e r e fo r e be p o s s i b l e t o c a l c u l a t e t he p e r c en t c hang e i n e m p l o y m en t

r eq u i r e d f o r a g i v en pe r c e n t c ha n ge i n o u t pu t.

T he c h a nge i n j ob s r a n ge fo r t he m a j o r bo i l e r r u l e r a n ge s b e t w een

- 3000 t o 60 0 0 ; t he

e s t i m a t ed c hange i n j ob s r ange f o r t h e a r e a b o i l e r r u l e r an g e s be t w een

- 1 0 00 t o 2000

. W ou l d EPA a r t i c u l a t e t he j ob c ha n ge s a ss o c i a t ed w i t h c o m p l i an c e c o s t s ? W o u l d EPA

a r t i c u l a t e t he j ob c hange s a ss o c i a t ed w i t h p r o du c t i on de c r ea s e ?

### S u

m m a ry of I n t e r a g e n cy W o r k i ng C o m m en ts on D r a ft L a n g u a ge u n d er

E O 1 2 866 I n

t e r a g e n cy R ev i e w. S u b j e ct to F ur t h er P ol i cy R ev i e w.

Page 11 of 13 A l s o

, a r e t he j ob e ff e c t s an a l yz e d ou t s i d e t he m u l t i m a r k e t ana l y s i s ? T h e m u l t i m a r k e t

ana l y s i s l i s t s t he fo l l o w i n g a ss u m p t i on s : ( 1 ) f i rm s c anno t a l t e r i n pu t m i x e s ( 4

- 2 )

, a nd ( 2 )

p r i c e o f l a b o r i s f i x ed ( 4

- 2 )

. P l ea s e e x p l a i n w he t he r t h e j ob e ff e c t s r e s u l t s a r e c on s i s t e n t

w i t h t he m u l t i m a r k e t an a l y s i s r e s u l t s

, a n d w h y

.

C hap t e r 4 s t a t e s t ha t t h e “ a n a l y s i s ’ t i m e ho r i z on i s t he i n t e r m ed i a t e r un ” ( 4

- 1 )

. B u t t he

ana l y s i s goe s o n t o s t a t e t ha t “ m u l t i m a r k e t m o de l s f o c u s o n ‘ s ho r t r un ’ t i m e ho r i z on s

. ”

P l ea s e d i s c u ss ho w

t he m u l t i m a r k e t m ode l s w e r e ad j u s t ed t o an a l yz e i n t e r m ed i a t e t i m e

ho r i z on e f

f e c t s

.

EPA R e s pon s e: T he s e i s s ue s w i l l be r e s pon d ed t o i n t h e r e v i s e d R I A

.

C o s t E s t i m a t e M e t hodo l o gy

P l ea s e p r o v i de un d i sc ou n t ed s t r ea m o f c o s t s e s t i m a t ed t o o cc u r w i t h t he r u l e s

. O v e r

ho w m an y y ea r s a r e t h e c a p i t a l c o s t s s p r e ad o v e r ?

EPA R e s pon s e : EPA p r o v i d ed t he t o t a l c a p i t a l i n v e s t m en t s t o O M B a l r ead y

, and t he

i n f o r m a t i on i s s u m m a r i z ed i n t he c o s t i m pa c t s m e m o

. T he appe nd i c e s o f t he “ R e v i s e d

M e t hodo l og y fo r E s t i m a t i ng C o n t r o l C o s t s fo r I ndu s t r i a l

, C o m m e r c i a l , I n s t i t u t i on a l

B o i l e r s a nd P r o c e s s H ea t e r s N a t i on a l E m i ss i o n S t anda r d s fo r H a z a r d o u s A i r P o l l u t an t s

– M a j o r S ou r c e ” de t a i l t h e l i f e t i m e s a ss u m ed fo r ea c h t y pe o f c a p i t a l i n v e s t m en t, w h i c h

v a r y dep e n d i ng o n t he t y pe o f eq u i p m en t.

E ne r g y A u d i t B ene f i ts

T he a ss e ss m en t s a r e p r e s en t ed a s a t op

- l i n e c o s t i n R I A s e c 3

, b u t i t ’ s no t c l e a r i n t he

R I A o f t he r e a s o n i ng f

o r a dop t i ng i t i n ad d i t i on t o t he t u ne

- u p

.

EPA R e s pon s e : T he r ea s o n i n g fo r adop t i ng t he ene r g y au d i t i s p r o v i d ed i n t h e f i n a l

p r ea m b l e

.

I m pa c t s o f R u l e s on S m a ll E n t i t i es

O ne r e v i e w e r s t a t e d t ha t i t doe s n o t ap p ea r t h a t EPA ha s de m on s t r a t ed c o m p li an c e

w i t h t he R F A

, r a i s i ng s e r i ou s c on c e r n s a bou t t he r u l e s a s a w ho l e

.

F o r t h e m a j o r s ou r c e r u l e

, EPA p r o v i de s a b r i e f s t a t e m en t r e f e r e n c i ng t h e I n i t i a l

R egu l a t o r y F l e x i b il i t y A n a l y s i s ( I R F A ) f r o m t he p r opo s e d r u l e and a c on c l u s o r y

s t a t e m en t abou t t he i m pa c t s on s m a ll e n t i t i e s

. ( S ee V III. F o f t he p r ea m b l e

. )

• T he r eq u i r e m en t s fo r a F i n a l R e gu l a t o r y F l e x i b il i t y A n a l y s i s ( F R F A ) d i ff e r f r o m

t ho s e f o r an I R F A

, s o a s i m p l e c r o s s -r e f e r en c e i s no t s u f f i c i e n t

.

### S u

m m a ry of I n t e r a g e n cy W o r k i ng C o m m en ts on D r a ft L a n g u a ge u n d er

E O 1 2 866 I n

t e r a g e n cy R ev i e w. S u b j e ct to F ur t h er P ol i cy R ev i e w.

Page 12 of 13 o EPA m u s t r e s pond t o pu b l i c c o m m en t s on t h e I R F A

, and s p e c i f i c a ll y r e s p ond t o

c o mm en t s f r o m C h i e f C oun s e l fo r A d v o c a cy

.

o A na l y s i s p r epa r ed fo r t he I R F A and t he j u s t i f i c a t i o n s fo r a l t e r n a t i v e s s e l e c t ed

w e r e ba s ed on t h e r e g u l a t o r y a l t e r na t i v e s p r e pa r ed f o r t h e p r o po s ed r u l e

. N e w

a l t e r na t i v e s und e r c on s i d e r a t i on r eq u i r e a ne w d i sc u ss i o n fo r t he F R F A

.

• EPA ha s no t p r o v i de d an e s t i m a t e o f t he n u m be r o f s m a l l en t i t i e s a ff e c t e d b y t h i s

r u l e o r e x p l a i ned w h y s u c h a n e s t i m a t e i s no t a v a i l a b l e

.

• A cc o r d i n g t o R I A T a b l e 5

- 2

, m o r e s m a ll en t i t i e s r ea c h t h e 3 % t h r e s h o l d u n de r t he

f i n a l r u l e t h an t h e p r o po s ed r u l e

, w h i c h c on t r a d i c t s t he s t a t e m en t i n t he p r ea m b l e

.

• EPA s hou l d d i r e c t t he r ead e r t o i t s de sc r i p t i o n o f s t ep s t h e ag e n cy ha s t a k en t o

m i n i m i z e t he s i g n i f i c an t e c ono m i c i m pa c t on s m a ll en t i t i e s

.

EPA R e s pon s e : EPA ha s i n c l ud e d a F R F A i n t he r e v i s e d R I A and a c o m p l e t e F R F A

d i sc u s s i o n i n t h e R F A s e c t i on o f t he f i n a l p r e a m b l e

, i n c l u d i n g r e s p on s e t o SBA

c o mm en t s

, n u m be r s o f s m a ll e n t i t i e s a ff e c t ed

, a c o r r e c t i on t o a t y po r eg a r d i ng t he

nu m be r o f un i t s m ee t i ng t he 3 % t h r e s h o l d ( t h e nu m be r ha s de c r e a s ed f r o m p r opo s a l )

, and a d i sc u s s i o n o f t h e v a r i o u s c han g e s t ha t w e r e m ade t ha t w i l l r edu c e i m pa c t s

.

F o r t h e a r e a s o u r c e r u l e

, EPA s a ys i n t he p r e a m b l e t ha t i t i s c e r t i f y i ng bu t t he R I A s a ys

EPA c anno t c e r t i f

y . It s ee m s t ha t EPA doe s no t ha v e a s u f f i c i en t f a c t u a l ba s i s upon

w h i c h t o c e r t i f

y

. EPA s hou l d p r e pa r e a F R F A t ha t ad d r e ss e s t h e s t a t u t o r y p o i n t s

, i n c l u d i n g r e s pon s e t o c o m m en t s

. T he s t a t u t o r y p o i n t s a r e s u m m a r i z ed a s f o l l o w s :

• EPA need s t o p r o v i d e an e x p l ana t i on o f i t s a s s u m p t i on s abou t c o m p l i an c e c o s t s

and r e v e nue s

.

• EPA need s t o e s t i m a t e t he nu m be r o f s m a ll e n t i t i e s a ff e c t e d

.

• A v e r age r e v enue s a r e h i g h l y m i s l ea d i ng

, a n d t ha t an y s i g n i f i c an t v a r i a t i on i n

r e v enue o r c o m p l i an c e c o s t w ou l d l e ad t o s i g n i f i c a n t e c o n o m i c e ff e c t s

.

• E v en s m a ll c han g e s i n r e v enue f o r n on

- p r o f i t s and pu b l i c i n s t i t u t i on s h a v e

s i g n i f i c a n t l y g r e a t e r i m pa c t t ha t t h e y m i gh t f o r p r i v a t e i n s t i t u t i on s

.

EPA R e s pon s e : T he R F A s e c t i on o f t he p r e a m b l e ha s been r e v i s ed t o r e f l e c t t he

r e v i s ed R I A and t he r e c en t l y p r ep a r ed F R F A

.

M e m o t i t l e d “ R e v i s e d M e t h od o l o g y f o r E s t i m a t i n g C o s t a n d E m i ss i o n s I m p ac t s

f o r I n d u s t r i a l, C o mm e r c i a l, I n s t i t u t i o n a l B o il e r s a n d P r o cess H e a t e r s N a t i o n a l

E m i ss i o n S t a n d a r d s f o r H a z a r d o u s A i r P o ll u t a n t s

– M a j o r S o u r ce

W o r k P r a c t i c e C o s t s

W e s u gge s t EPA p r o v i de a s ou r c e fo r i t s t un e

- up c o s t s

. T he w i d e r a nge o f b o i l e r s i z e s

and f u e l s m a k e s a s i ng l e nu m be r ha r d t o j u s t i f y w i t hou t m o r e e x p li c i t s uppo r t

.

O n page 7

, w e s ugge s t EPA s ho u l d r e s t a t e t h e i r ann u a l i z a t i on a ss u m p t i on s he r e a s

t he y do i n t he ne x t b u l l e t

.

### S u

m m a ry of I n t e r a g e n cy W o r k i ng C o m m en ts on D r a ft L a n g u a ge u n d er

E O 1 2 866 I n

t e r a g e n cy R ev i e w. S u b j e ct to F ur t h er P ol i cy R ev i e w.

Page 13 of 13 If t he c o s t o f t un e

- up i s r e l a t e d t o t h e a m oun t o f t i m e s i n c e t he l a s t t une

- up ( a s w ou l d

s ee m t o be t he c a s e w i t h t h e v e r y l a r ge one

- t i m e c o s t )

, u s i ng t h e an n u a l c o s t o n c e

e v e r y t w o y ea r s i n l i e u o f t h e b i en n i a l c o s t un d e r s t a t e s t he c o s t o f t he r eq u i r e m en t. It i s

no t c l ea r f r o m t he w r i t e

- up w ha t w a s done ; w e s ugge s t EPA c l a r i f y t h i s

.

T h i s do c u m en t s a ys ene r g y au d i t s a r e an an n ua l r eq u i r e m en t. T h i s s ee m s t o c on t r a d i c t

t he r u l e

.

EPA s hou l d p r o v i de s o u r c e s fo r i t s e s t i m a t e s o f ene r g y au d i t c o s t s

. ( F oo t no t e 2 i s a

s e l f -r e f e r en c e ; I s i t s u p po s ed t o be a r e f e r en c e t o s o m e t h i ng e l s e ? )

F u e l S a v i ng s I m pa c t s ( page 10)

EPA c i t e s D O E e s t i m a t e o f 10 t o 15 p e r c en t e ff i c i en c y g a i n s ( p l ea s e i n c l u de

r e f e r e n c e s )

, bu t i t i s n ’ t c l e a r t o w ha t e x t en t t h e s e g a i n s a r e i n c o r po r a t ed i n t o t he

ana l y s i s

. T h i s l e a v e s t h e i m p r e s s i on t h a t be n e f i t s a r e be i ng l e ft on t h e t a b l e w hen

, i n

f a c t, ea c h p r o c e ss i m p r o v e m en t m u s t pa ss a C / B t e s t and t h e c o s t s o f t he e n e r g y au d i t

a r e s un k

. If EPA doe s no t u s e t he r e s u l t s o f t he ene r g y au d i t t o m a k e a ss u m p t i on s

abou t t h e s e c a l c u l a t i o n s , t he y s ho u l d b e d i sc u ss ed e l s e w he r e . If EPA doe s m a k e u s e

o f t he e n e r g y a u d i t s t o m a k e a ss u m p t i on s ab o u t c o s t s a v i ng s

, t hen t he c o s t s o f t he

i m p r o v e m en t s need s t o be i n c o r po r a t ed i n t o t he c o s t e s t i m a t e s

.

T he S u s t a i n ab l e E ne r g y A u t ho r i t y o f I r e l and ’ s c ha r t ha s no s o u r c e

, b u t, i f r e li a b l e , t h e

i n f o r m a t i on p r e s en t e d s ho u l d be ap p l i e d o n l y t o ho m e bo i l e r s u s i n g r e s i d en t i a l f u e l s

,

w h i c h a r e o u t s i de t h e sc ope o f t h i s r u l e

. T he s t a t e m en t abou t 1 t o 5 pe r c en t e f f i c i e n cy i s a l s o un s up p o r t e d

. T h e do c u m en t

p r o v i ded s epa r a t e b y EPA t ha t m a k e s t h i s c l a i m doe s no t p r o v i de s u p po r t f o r i t s

a ss e r t i on

. I a l s o n o t e t h a t t h i s s u p po r t i n g do c u m en t i s fo c u s ed o n na t u r a l ga s

, o i l

, and

p r opa n e b o i l e r s

. It d o e s no t appe a r t ha t t he a u t ho r s w e r e a d d r e s s i ng b i o f u e l s o r c o a lf ue l ed b o i l e r s

.

S e c onda r y i m pa c t s ana l y s i s ( pa g e 18)

T he s e c o nd p a r ag r aph o f t h i s s e c t i o n a l s o c i t e s t he a ss u m p t i on o f a 1 % en e r g y

e ff i c i e n cy g a i n

. S e c t i on 5

. 5 a g a i n c i t e s t h e 10 t o 15 p e r c en t g a i n s

. EPA s hou l d a v o i d m en t i on o f t he s e

ga i n s i n t h i s c o n t e x t be c au s e t h e y a r e no t i n c l ud i n g t he c o s t o f i m p l e m en t i ng t h e en e r g y

aud i t r e c o m m enda t i on i n t h e i r c o s t c a l c u l a t i o n s

.

EPA R e s pon s e : A s m en t i on e d ea r l i e r

, EPA ha s p r o v i d e d ad d i t i o n a l s up p o r t i ng

do c u m en t a t i on t o O M B and w i l l r e f e r en c e t he s e m a t e r i a l s a s a p p r o p r i a t e i n t he

s uppo r t i n g m e m o r anda

. W e a r e m a k i ng t h e s ugge s t ed e d i t s i n t h e t e x t o f t he I m pa c t s

m e m o and a r e up d a t i ng t h e r e f e r en c e s w i t h a dd i t i o n a l s up p o r t f o r t h e t un e

- up c o s t s and

r e l a t ed e f

f i c i en cy g a i n s /f u e l s a v i n g s

. W e w i l l m a k e i t c l e a r t ha t ou r an a l ys e s d o no t

c oun t e m i ss i o n r e d u c t i on s f r o m t he ene r g y a s s e ss m en t

.