7
- 1 **CHAPTER 7 STATUTORY AND EXECUT**  **IVE ORDER ANALYSES 7.**  **1 Introduction**  This chapter presents discussion and analyses relating to Executive Orders and statutory requirements relevant for the final Mercury and Air Toxics Standards (MATS)
. We discuss the analysis conducted to comply with Executive Order (EO) 12866 and the Paperwork Reduction Act (PRA) as well as potential impacts to affected small entities required by the Regulatory Flexibility Act (RFA), as amended by the Small Business Regulatory Enforcement Fairness Act (SBREFA). We also describe the analysis conducted to meet the requirements of the Unfunded Mandates Reform Act of 1995 (UMRA) assessing the impact of the final rule on state, local and t ribal governments and the private sector
. In add ition, we address the requirements of EO 13132: Federalism; EO 13175: Consultation and Coordination with Indian Tribal Governments; EO 13045: Protection of Children from Environmental Health and Safety Risks; EO 13211: Actions that Significantly Affect Ene rgy Supply, Distribution, or Use; the National Technology Transfer and Advancement Act; EO 12898: Federal Actions to Address Environmental Justice in Minority Populations and Low
- Income Populations ; and the Congressional Review Act
. **7.2 Executive Order 128** **66: Regulatory P lanning and Review**  **and Executive Order 13563, Improving Regulation and Regulatory Review**  Under Executive Order (EO) 12866 (58 FR 51,735, October 4, 1993), this action is an “economically significant regulatory action” because it is likely t o have an annual effect on the economy of $100 million or more or adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, public health or safety, or state, local, or tribal governments or communities. Accordingly, the EPA submitted this action to the Office of Management and Budget (OMB) for review under E xecutive O rders 12866 and 13563 any changes in response to OMB recommendations have been documented in the docket for this action. In addition, EPA prepared this Regulatory Impact Analysis (RIA) of the potential costs and benefits associated with this action. When estimating the human health benefits and compliance costs detailed in this RIA, the EPA applied methods and assumptions c onsistent with the state
- of
-the
- science for human health impact assessment, economics and air quality analysis. The EPA applied its best professional judgment in performing this analysis and believes that these estimates provide a reasonable indication of the expected benefits and costs to th e nation of this rulemaking. This RIA describes in detail the empirical basis for the EPA’s assumptions and characterizes the7
- 2

various sources of uncertainties affecting the estimates below. In doing what is laid out abo ve in this paragraph, the EPA adheres to EO 13563, “Improving Regulation and Regulatory Review,” (76 FR 3821; January 18, 2011), which is a supplement to EO 12866. In addition to estimating costs and benefits, EO 13563 focuses on the importance of a “regul atory system [that]...promote[s] predictability and reduce[s] uncertainty” and that “identify[ies] and use[s] the best, most innovative, and least burdensome tools for achieving regulatory ends.” In addition, EO 13563 states that “[i]n developing regulatory actions and identifying appropriate approaches, each agency shall attempt to promote such coordination, simplification, and harmonization. Each agency shall also seek to identify, as appropriate, means to achieve regulatory goals that are designed to pro mote innovation.” We recognize that the utility sector faces a variety of requirements, including ones under CAA section 110(a)(2)(D) dealing with the interstate transport of emissions contributing to ozone and PM air quality problems, with coal combustion wastes, and with the implementation of CWA section 316(b). In developing today’s final rule, the EPA recognizes that it needs to approach these rulemakings in ways that allow the industry to make practical investment decisions that minimize costs in compl ying with all of the final rules, while still achieving the fundamentally important environmental and public health benefits that underlie the rulemakings. A summary of the monetized costs, benefits, and net benefits for the final rule at discount rates of 3 percent and 7 percent is the Executive Summary and Chapter 8 of this RIA . **7. 3**  **Paperwork Reduction Act** The information collection requirements in this 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 requirements are not enforceable until OMB approves them. The information requirements are based on notification, recordkeeping, and reporting requirements in the NESHAP General Provisions (40 CFR part 63, subpart A), which are mandatory for all owners and operators subject to national emission standards. These recordkeeping and reporting requirements are specifically authorized by CAA section 114 (42 U.S.C. 7414). All information submitted to the EPA pursuant to the recordkeeping and reporting requirements for which a claim of confidentiality is made is safeguarded according to Agency policies set forth in 40 CFR Part 2, subpart B. This final rule requires maintenance inspections of the cont rol devices but would not require any notifications or reports beyond those required by7
- 3

the General Provisions. The recordkeeping provisions require only the specific information needed to determine compliance. The annual monitoring, reporting, and recordkeeping burden for this collection (averaged over the first 3 years after the effective date of the standards) is estimated to be $15 8 million. This includes 698,907 labor hours per year at a total labor cost of $49 million per year, and total non
- labor cap ital costs of $108 million per year. This estimate includes initial and annual performance tests, semiannual excess emission reports, developing a monitoring plan, notifications, and recordkeeping. Initial capital expenses to purchase monitoring equipment for affected units are estimated at a cost of $231 million. This includes 504,629 labor hours at a total labor cost of $35 million for planning, selection, purchase, installation, configuration, and certification of the new systems and total non
- labor capi tal costs of $ 196 million. All burden estimates are in 2007 dollars and represent the most cost effective monitoring approach for affected facilities. An Agency may not conduct or sponsor, and a person is not required to respond to, a collection of informa tion unless it displays a currently valid OMB control number. The OMB control numbers for the EPA’s regulations are listed in 40 CFR Part 9. When this ICR is approved by OMB, the Agency will publish a technical amendment to 40 CFR Part 9 in the Federal Reg ister to display the OMB control number for the approved information collection requirements contained in this final rule. **7. 4**  **Final Regulatory Flexibility Analysis**  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 rule on small entities, small entity is defined as: (1) a small business that is an el ectric utility producing 4 billion kilowatt
- hours or less as defined by NAICS codes 221122 (fossil fuel
-fired electric utility steam generating units) and 921150 (fossil fuel
-fired electric utility steam generating units in Indian country); (2) a small governmental jurisdiction that is a government of a city, 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.7
-4

Pursuant to section 603 of the RFA, the EPA prepared an initial regulatory flexibility analysis (IRFA) for the proposed rule and convened a Small Business Advocacy Review Panel to obtain advice and recommendations of represen tatives of the regulated small entities. A detailed discussion of the Panel’s advice and recommendations is found in the Panel Report (EPA
- HQ
- OAR
- 2009
- 0234
- 2921). A summary of the Panel’s recommendations is presented at 76 FR 24975. As required by secti on 604 of the RFA, we also prepared a final regulatory flexibility analysis (FRFA) for today’s final rule. The FRFA addresses the issues raised by public comments on the IRFA, which was part of the proposal of this rule. The FRFA is summarized below and in the preamble
. **7.4.1 Reasons Why Action Is Being**  **Taken** In 2000, the EPA made a finding that it was appropriate and necessary to regulate coal
and oil
-fired electric utility steam generating units (EGUs) under Clean Air Act (CAA) section 112 and listed E GUs pursuant to CAA section 112(c). On March 29, 2005 (70 FR 15,994), the EPA published a final rule ( 2005 Action ) that removed EGUs from the list of sources for which regulation under CAA section 112 was required. That rule was published in conjunction with a rule requiring reductions in emissions of mercury from EGUs pursuant to CAA section 111 , i.e., CAMR, May 18, 2005, 70 FR 28606). The Section 112(n) Revision Rule was vacated on February 8, 2008, by the U.S. Court of Appeals for the District of Colu mbia Circuit. As a result of that vacatur, CAMR was also vacated and EGUs remain on the list of sources that must be regulated under CAA section 112. This action provides the EPA’s final NESHAP for EGUs
. **7.4.2 Statement of Objectives and Legal Basis for**  **Final Rules** MATS will protect air quality and promote public health by reducing emissions of HAP. In the December 2000 regulatory determination, the EPA made a finding that it was appropriate and necessary to regulate EGUs under CAA section 112. The Feb ruary 2008 vacatur of the 2005 Action reverted the status the rule to the December 2000 regulatory determination. CAA section 112(n)(1)(A) and the 2000 determination do not differentiate between EGUs located at major versus area sources of HAP. Thus, the NESHAP for EGUs will regulate units at both major and area sources. Major sources of HAP are those that have the potential to emit at least 10 tons per year (tpy) of any one HAP or at least 25 tpy of any combination of HAP. Area sources are any stationary sources of HAP that are not major sources.7
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**7.4.3 Summary of Issues Raised during the Public Comment Process on the IRFA** The EPA received a number of comments related to the Regulatory Flexibility Act during the public comment process. A consolidated vers ion of the comments received is reproduced below. These comments can also be found in their entirety in the response to comment document in the docket. **Comment:** Several commenters expressed concern with the SBAR panel. Some believe Small Entity Representat ives (SERs) were not provided with regulatory alternatives including descriptions of significant regulatory options, differing timetables, or simplifications of compliance and reporting requirements, and subsequently were not presented with an opportunity to respond. One commenter believes the EPA’s formal SBAR Panel notification and subsequent information provided by the EPA to the P anel did not include information on the potential impacts of the rule as required by section 609(b)(1). Additional commenters suggested that the EPA’s rulemaking schedule put pressure on the SBAR Panel through the abbreviated preparation for the Panel. Commenters also expressed concerns that the EPA did not provide participants more than cursory background information on which t o base their comments. One commenter stated that the EPA did not provide deliberative materials, including draft proposed rules or discussions of regulatory alternatives, to the SBAR P anel members. One commenter stated the SBAR Panel Report does not meet t he statutory obligation to recommend less burdensome alternatives. The commenter suggested the EPA panel members declined to make recommendations that went further than consideration or investigation of broad regulatory alternatives, with the exception of those recommendations in which the EPA rejected alternative interpretations of the CAA section 112 and relevant court cases. Two stated that the EPA did not respond to the concerns of the small business community, the SBA, or OMB, ignoring concerns express ed by the SER panelists. One commenter believes the EPA failed to convene required meetings and hearings with affected parties as required by law for small business entities. One commenter stated that the SER s’ input is very important because more than 90 percent of public power utility systems meet the definition and qualify as small businesses under the SBREFA. **Response:** The RFA requires that SBAR P anels collect advice and recommendations from SERs on the issues related to:

 the number and description of the small entities to which the proposed rule will apply;7
- 6  the projected reporting, record keeping and other compliance requirements of the proposed rule;

 duplication, overlap or conflict between the proposed rule and other federal rules; and

 alternatives to the proposed rule that accomplish the stated statutory objectives and minimize any significant economic impact on small entities. The RFA does not require a covered agency to create or assemble information for SERs or fo r the government panel members. While section 609(b)(4) requires that the government P anel members review any material the covered agency has prepared in connection with the RFA, the law does not prescribe the materials to be reviewed. The EPA's policy, as reflected in its RFA guidance, is to provide as much information as possible, given time and resource constraints, to enable an informed P anel discussion. In this rulemaking, because of a court
- ordered deadline, the EPA was unable to hold a pre
- panel meet ing but still provided SERs with the information available at the time, held a standard Panel Outreach meeting to collect verbal advice and recommendations from SERs, and provided the standard 14
- day written comment period to SERs. The EPA received substan tial input from the SERs, and the Panel report describes recommendations made by the Panel on measures the Administrator should consider that would minimize the economic impact of the proposed rule on small entities. The EPA complied with the RFA. **Comment:** One commenter requested that the EPA work with utilities such that new regulations are as flexible and cost efficient as possible. **Response:** In developing the final rule, the EPA has considered all information provided prior to, as well as in response to, the proposed rule. The EPA has endeavored to make the final regulations flexible and cost efficient while adhering to the requirements of the CAA. **Comment:** One commenter was concerned about the ability of small entities or nonprofit utilities such as thos e owned and/or operated by rural electric co

- op utilities, and municipal utilities to comply with the proposed standards within three years. The commenter believes that the EPA disregarded the SER panelists who explained that under these current economic c onditions they have constraints on their ability to raise capital for the construction of control projects and to acquire the necessary resources in order to meet a three
-year compliance deadline. Two commenters expressed concern that smaller utilities and those in rural areas will be unable to get vendors to respond to their requests for proposals, because they will be able to make more money serving larger utilities.7
- 7

**Response:** The preamble to the proposed rule (76FR 25054, May 3, 2011) provides a detailed discussion of how the EPA determined compliance times for the proposed (and final) rule. The EPA has provided pursuant to section 112(i)(3)(A) the maximum three
-year period for sources to come into compliance. Sources may also seek a one
-year extension of the compliance period from their title V permitting authority if the source needs that time to install controls. CAA section 112(i)(3)(B). If the situation described by commenters (i.e., where small entities or nonprofit utilities constraints on ability t o raise capital for construction of control projects and to acquire necessary resources) results in the source needing additional time to install controls, they would be in a position to request the one
-year extension. The EPA discusses in more detail in s ection VII of this preamble how the agency plans to address those units that are still unable to comply within the statutorily mandated period. **Comment:** Several commenters believe the EPA did not adequately consider the disproportionately large impact on s maller generating units. The commenters note the diseconomies in scale for pollution controls for such units. One commenter noted the rule will create a more serious compliance hurdle for small communities that depend on coal
-fired generation to meet their base load demand. The commenter notes that by not subcategorizing units, the EPA is dictating a fuel switch due to the disproportionately high cost on small communities. The other commenter believes the MACT and NSPS standards are unachievable by going to o far without really considering the impacts on small municipal units, as public powers is critical to communities, jobs, economic viability and electric reliability. A generating and transmissions electric cooperative which qualifies as a small entity bel ieves the rule will ultimately result in increased electricity costs to its members and will negatively impact the economies of the primarily rural areas that they serve. Another commenter believes there is no legal or factual basis for creating subcategor ies or weaker standards for state, tribal, or municipal governments or small entities that are operating obsolete units, particularly given the current market situation and applicable equitable factors. The commenter suggests both the EPA’s and SBA’s analyses focus exclusively on the effects on entities causing HAP emissions and primarily on those operating obsolete EGUs, and fail to consider either impacts on downwind businesses and governments or the positive impacts on small entities and governments owni ng and operating competing, clean and modern EGUs. **Response:** The EPA disagrees with the commenters' belief that the impacts on smaller generating units were not adequately considered when developing the rule. The EPA determined the number of potentially im pacted small entities and assessed the potential impact of the proposed action on small entities, including municipal units. A similar assessment7
- 8

was conducted in support of the final action. Specifically, the EPA estimated the incremental net annualized c ompliance cost, which is a function of the change in capital and operating costs, fuel costs, and change in revenue. The projected compliance cost was considered relative to the projected revenue from generation. Thus, the EPA's analysis accounts not only for the additional costs these entities face resulting from compliance, but also the impact of higher electricity prices. The EPA evaluated suggestions from SERs, including subcategorization recommendations. In the preamble to the proposed rule, the EPA ex plains that, normally, any basis for subcategorizing must be related to an effect on emissions, rather than some difference which does not affect emissions performance. The EPA does not see a distinction between emissions from smaller generating units vers us larger units. The EPA acknowledges the comment that there is no legal or factual basis for creating subcategories or weaker standards for state, tr ibal, or municipal governments or small entities that are operating obsolete units
. **Comment:** One commenter notes that the EPA recognizes LEEs in the rule such that they should receive less onerous monitoring requirements; however, the EPA does not recognize that small and LEEs also need and merit more flexible and achievable pollution control requirements. The commenter notes that the capital costs for emissions control at small utility units is disproportionately high due to inefficiencies in Hg removal, space constraints for control technology retrofits, and the fact that small units have fewer rate base customers across which to spread these costs. The commenter cites the Michigan Department of Environmental Quality report titled “Michigan’s Mercury Electric Utility Workgroup, Final Report on Mercury Emissions from Coal
- Fired Power Plants,” (June 2005). The commenter notes that the EPA has addressed such concerns previously, citing the RIA for the 1997 8
- hour ozone standard. The commenter also suggests smaller utility systems generally have less capital to invest in pollution control than larger, investor
- own ed systems, due to statutory inability to borrow from the private capital markets, statutory debt ceilings, limited bonding capacity, borrowing limitations related to fiscal strain posed by other, non
- environmental factors, and other limitations. **Response:** The EPA acknowledges that the rule contains reduced monitoring requirements for existing units that qualify as LEEs . Although the EPA does not believe that reduced pollution control requirements are warranted for LEEs, including small entity LEEs, we believe that flexible and achievable pollution control requirements are promoted through alternative standards, alternative compliance options, and emissions averaging as a means of demonstrating compliance with the standards for existing EGUs.7
- 9

**Co mment:**  One commenter believes that the EPA should develop more limited monitoring requirements for small EGUs. The commenter notes small entities do not possess the monetary resources, manpower, or technical expertise needed to operate cutting
- edge monitor ing techniques such as Hg CEMS and PM CEMs. The commenter notes the EPA could have identified monitoring alternatives to the SER panel for consideration. **Response:** The EPA provided monitoring alternatives to using PM CEMS, HCl CEMS, and Hg CEMS in its prop osed standards and in this final rule
. The continuous compliance alternatives are available to all affected sources, including small entities. As alternatives to the use of PM CEMS and HCl CEMS, sources are allowed to conduct additional performance testi ng. Sorbent trap monitoring is allowed in lieu of Hg CEMS. **Comment:** Several commenters believe the EPA has not sufficiently complied with the requirements of the RFA or adequately considered the impact this rulemaking would have on small entities. One co mmenter believes the EPA has not engage d in meaningful outreach and consultation with small entities and therefore recommends that the EPA seek to revise the court - ordered deadlines to which this rulemaking is subject, re
- convene the SBAR panel, prepare a new initial regulatory flexibility analysis (IRFA), and issue it for additional public comment prior to final rulemaking. The commenter believes the IRFA does not sufficiently consider impacts on small entities as identified in the SBAR Panel Report. The c ommenter believes it is not apparent that the EPA considered the recommendations of the Panel. The commenter believes the description of significant alternatives in the IRFA is almost entirely quoted from the SBAR Panel Report, which the commenter does not believe is an adequate substitute for the EPA’s own analysis of alternatives. The commenter also notes the EPA does not discuss the potential impacts of its decisions on small entities or the impacts of possible flexibilities. Where the EPA does consider regulatory alternatives in principle, the commenter believes it does not provide sufficient support for its decisions to understand on what basis the EPA rejected alternatives that may or may not have reduced burden on small entities while meeting the stat ed objectives of the rule. Additionally, the commenter notes that the EPA did not evaluate the economic or environmental impacts of significant alternatives to the proposed rule. One commenter believes that the EPA’s stated reasons for declining to specify or analyze an area source standard are inadequate under the RFA. The commenter believes the EPA must give serious consideration to regulatory alternatives that accomplish the stated objectives of the CAA while minimizing any significant economic impacts o n small entities and that the EPA has a duty to specify and analyze this option or to more clearly state its policy reasons for excluding serious consideration of a separate standard for area sources. A commenter believes7
- 10

the EPA did not fully consider the subcategorization of sources such as boilers designed to burn lignite coals versus other fossil fuels, especially in regard to non
- Hg metal and acid gas emissions. The commenter references the SBAR Panel Report suggestion provided in the preamble of the p roposed rule that the EPA consider developing an area source vs. major source distinction for the source category and the EPA’s response. Another commenter is concerned that the recommendations made by the SER participants were ignored and not discussed in the rulemaking. Specifically, the commenter notes the EPA did not discuss subcategorizing by age, type of plant, fuel, physical space constraints or useful anticipated life of the plant. Nor did the EPA establish GACT for smaller emitters to alleviate re gulatory costs and operational difficulties. A commenter believes it is likely that different numerical or work practice standards are appropriate for area sources of HAP. **Response:** The EPA disagrees with one commenter's assertion that the agency has not c omplied with the requirements of the RFA. The EPA complied with both the letter and spirit of the RFA, notwithstanding the constraints of the court
- ordered deadline . For example, the EPA notified the Chief Counsel for Advocacy of the SBA of its intent to c onvene a Panel; compiled a list of SERs for the Panel to consult with; and convened the Panel. The Panel met with SERs to collect their advice and recommendations; reviewed the EPA materials; and drafted a report of Panel findings. The EPA further disagree s with the commenter's assertion that the EPA's IRFA does not sufficiently consider impacts on small entities. The EPA's IRFA, which is included in chapter 10 of the RIA for the proposed rule, addresses the statutorily required elements of an IRFA such as, the economic impact of the proposed rule on small entities and the Panel's findings. The EPA disagrees with the comment that recommendations made by the SERs and not considered or discussed in the proposed rulemaking such as recommendations regarding sub categorization and separate GACT standards for area sources. The preamble to the proposed standards includes a detailed discussion of how the EPA determined which subcategories and sources would be regulated (76 FR 25036
- 25037, May 3, 2011). In that discu ssion, the EPA explains the rationale for its proposed subcategories based on five unit design types. In addition, the EPA acknowledges the subcategorization suggestions from the SERs and explains its reasons for not subcategorizing on those bases. The pre amble to the proposed standards also includes a discussion of the SERs' suggestion that area source EGUs be distinguished from major
- source EGUs and the EPA's reasons for not making that distinction (76 FR 25020
- 25021, May 3, 2011). The EPA also disagrees with the suggestion that the Agency pursue an extension of the timeline for final rulemaking such that the SBAR Panel can be reconvened and a new IRFA can be7
- 11

prepared and released for public comment prior to the final rulemaking. The EPA entered into a Con sent Decree to resolve litigation alleging that the EPA failed to perform a non
- discretionary duty to promulgate CAA section 112(d) standards for EGUs. American Nurses Ass’n v. EPA , 08
- 2198 (D.D.C.). That Decree required the EPA to sign the final MATS rule by November 16, 2011, unless the agency sought to extend the deadline consistent with the requirements of the modification provision of the Consent Decree. If plaintiffs in the American Nurses litigation objected to an extension request, which the EPA bel ieve s would have been likely based on their comments on the proposed rule, the Agency would have had to file a motion with the Court seeking an extension of the deadline. Consistent with governing case law, the Agency would have been required to demonstrate in its motion for extension that it was impossible to finalize the rule by the deadline provided in the Consent Decree. See Sierra Club v. Jackson , Civil Action No. 01
- 1537 (D.D.C.) (Opinion of the Court denying EPA’ s motion to extend a consent decree deadline). The EPA negotiated a 30
- day extension and was able to complete the rule by December 16, 2011; accordingly, the Agency had no basis for seeking a further extension of time. A detailed description of the change s made to the rule since proposal, including those made as a result of feedback received during the public comment process can be found in sections VI (NESHAP) and X (NSPS) in the preamble. Changes explained in the identified sections include those related to applicability; subcategorization; work practices; periods of startup, shutdown, and malfunction; initial testing and compliance; continuous compliance; and notification, recordkeeping, and reporting. **7.4.4 Description and Estimate of the Affected Small**  **Entities** For the purposes of assessing the impacts of MATS on small entities, a small entity is defined as: (1) A small business according to the Small Business Administration size standards by the North American Industry Classification System (NAICS) cat egory of the owning entity. The range of small business size standards for electric utilities is 4 billion kilowatt hours (kWh) of production or less; (2) A small government jurisdiction that is a government of a city, county, town, district, or special d istrict with a population of less than 50,000; and (3) A small organization that is any not for profit enterprise that is independently owned and operated and is not dominant in its field.7
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The EPA examined the potential economic impacts to small entities a ssociated with this rulemaking based on assumptions of how the affected entities will install control technologies in compliance with MATS. The SBREFA analysis does not examine potential indirect economic impacts associated with this rule, such as employm ent effects in industries providing fuel and pollution control equipment, or the potential effects of electricity price increases on industries and households. The EPA used Velocity Suite’s Ventyx data as a basis for identifying plant ownership and compili ng the list of potentially affected small entities. The Ventyx dataset contains detailed ownership and corporate affiliation information. The analysis focused only on those EGUs affected by the rule, which includes units burning coal, oil, petroleum coke , or coal refuse as the primary fuel, and excludes any combustion turbine units or EGUs burning natural gas. Also, because the rule does not affect combustion units with an equivalent electricity generating capacity up to 25 megawatts (MW), small entities that do not own at least one combustion unit with a capacity greater than 25 MW were removed from the dataset. For the affected units remaining, boiler and generator capacity, heat input, generation, and emissions data were aggregated by owner and then by parent company. Entities with more than 4 billion kWh of annual electricity generation were removed from the list, as were municipal owned entities serving a population greater than 50,000. For cooperatives, investor
- owned utilities, and subdivisions that generate less than 4 billion kWh of electricity annually but which may be part of a large entity, additional research on power sales, operating revenues, and other business activities was performed to make a final determination regarding size. Finall y, small entities for which the EPA’s modeling with the Integrated Planning Model (IPM) does not project generation in 2015 in the base case were omitted from the analysis because they are not projected to be operating and, thus, are not projected to face the costs of compliance with the rule. After omitting entities for the reasons above, the EPA identified a total of 82 potentially affected small entities that are affiliated with 10 2 electric generating units. **7.4.5 Compliance Cost Impacts**  This section p resents the methodology and results for estimating the impact of MATS on small entities in 2015 based on the following endpoints:

 annual economic impacts of MATS on small entities and7
- 13  ratio of small entity compliance cost impacts to revenues from electrici ty generation. 1 7.4.5.1 Methodology for Estimating Impacts of MATS on Small Entities
EPA estimate d compliance costs of MATS as follows:

C Compliance = Δ C Operating+Capital + Δ C Fuel - Δ R where C represents a component of cost as labeled, and Δ R represents the value of change in electricity generation, calculated as the difference in revenues between the base case and MATS
. Based on this formula, complianc e costs for a given small entity could either be positive or negative (i.e., cost savings) based on their compliance choices and market conditions. Under MATS, some units will forgo some level of electricity generation (and, thus, revenues) to comply and this impact will be lessened on those entities by the projected increase in electricity prices under the MATS scenario (which raises their revenues from the remainder of their sales). On the other hand, some units may increase electricity generation, and coupled with the increase in electricity prices, will see an increase in electricity revenues resulting in lower net compliance costs. If entities are able to increase revenue more than an increase in retrofit and fuel costs, ultimately they will have neg ative net compliance costs (or savings). Because this analysis evaluates the total costs as a sum of the costs associated with compliance choices as well as changes in electricity revenues, it captures savings or gains such as those described. As a resul t, what EPA describes as a cost is really more of a measure of the net economic impact of the rule on small entities
. For this analysis, EPA used unit
- level IPM parsed output s – from modeling runs conducted with EPA’s base case v4.10_MATS assumptions
– to estimate costs based on the parameters above. These impacts were then summed for each small entity, adjusting for ownership share. 2 Net impact estimates were based on the following: changes in operating and capital costs, driven mainly by retrofit instal lations or upgrades, change in fuel costs, and

1 This methodology for estimating small entity impacts has been used in recent EPA rulemakings such as the CSAPR promulgated by EPA in July, 2011. 2 Unit
- level cost impacts are adjusted for ownership shares for individual small entities, so as not to over estimate burden on each company. If an individual unit is owned by multiple small entities, total costs for that unit to meet MATS obligations are distributed across all owners based on the percentage of the unit owned by each company. Ownership percenta ge was estimated based on the Ventyx database.7
- 14

change in electricity generation revenues under MATS relative to the base case. These individual components of compliance cost were estimated as follows : (1) **Operating and capital costs:** Using the IPM parsed outputs for the base case and MATS policy case, EPA identified units that installed one or more pollution control technologies under the rule. The equations for calculating operating and capital costs were adopted from technology as sumptions used in EPA’s version of IPM (version 4.10). The model calculates the capital cost (in $/MW); the fixed operation and maintenance (O&M) cost (in $/MW

-year); and the variable O&M cost (in $/MWh). (2) **Fuel costs:** Fuel costs were estimated by mul tiplying fuel input (in million British thermal units, MMBtu) by region and fuel prices ($/MMBtu) from EPA’s modeling with IPM. The incremental fuel expenditures under MATS were then estimated by taking the difference in fuel costs between MATS and the ba se case. (3) **Value of electricity generated:** EPA estimated the value of electricity generated by multiplying the electricity generation from EPA’s IPM modeling results with the regionally
- adjusted retail electricity price ($/MWh), for all entities except those categorized as “Private” in Ventyx. For private entities, EPA used wholesale electricity price instead of retail electricity price because most of the private entities are independent power producers (IPP). IPPs sell their electricity to wholesal e purchasers and do not own transmission facilities and, thus, their revenue was estimated based on wholesale electricity prices. 7.4.5.2 Results The number of potentially affected small entities by ownership type and potential impacts of MATS are summari zed in Table 7
- 1 . All costs are presented in 200 7 dollars. EPA estimated the annualized net compliance cost to small entities to be approximately $106 million in 2015.7
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**Table 7 -**  **1. Projected Impact of**  **MATS on Small Entities**  **in 201 5** 

**EGU Ownership Type**  **Number of**

**Potentially Affected**  **Entities Number of** 

**Entities Projected to**  **Withdraw all Affected Units**  **as Uneconomic Total Net** 

**Compliance Costs (2007$**  **millions) Number of Small** 

**Entities with Compliance Cost >**  **1% of Generation Revenues**  **Number of**

**Small Entities with**  **Compliance Cost > 3% of**  **Generation Revenues**  Co
- Op 19 0
- 29 .7 9 8 IOU 8 0 33.0 7 5 Municipal 42 0 49.7 16 15 Sub
- division 9 0 44.8 4 3 Private 4 3 8.4 4 4 **Total 8**  **2 3**  **106 4** **0 3**  **5** Note s: T he total number of entities with costs greater than 1 percent or 3 percent of revenues includes only entities experiencing positive costs. About 23 of the 82 total potentially affected small entities are estimated to have cost savings under MATS (see text above for an explanation). Definitions of ownership types are based on those provided by Ventyx’s Energy Velocity. Co
- op (Cooperative): non
- profit, customer
- owned electric companies that generate and/or distribute electric power. IOU (Investor
- Owned Utility): Includes Investor Owned assets (e.g., a marketer, independent power producer, financial entity) and electric companies owned by stockholders, etc. Municipal: A municipal utility, responsible for power supply and distribution in a small region, such as a city
. Sub
- division: Political Subdivision Utility is a county, municipality, school district, hospital district, or any other political subdivision that is not classified as a municipality under state law. Private: Similar to investor
- owned, but ownership s hares are not openly traded on the stock markets. Source: ICF International analysis based on IPM modeling results EPA assessed the economic and financial impacts of the final rule using the ratio of compliance costs to the value of revenues from electricity generation, and our results focus on those entities for which this measure could be greater than 1 percent or 3 percent. Of the 8 2 small entities identified, EPA’s analysis shows 40 entities may experience complianc e costs greater than 1 percent of base generation revenues in 2015, and 35 may experience compliance costs greater than 3 percent of base revenues. 3 Also, all generating capacity at 3 small entities is projected to be uneconomic to maintain. In this anal ysis, the cost of withdrawing a unit as uneconomic is estimated as the base case profit that is forgone by not operating under the policy case. Because 3 5 of the 8 2 total entities, or more than 40 percent, are estimated to incur compliance cost greater th an 3 percent of base revenues, EPA has

3 One percent and three percent of generation revenue criteria based on: “EPA’s Action Development Process : Final Guidance for EPA Rulewriters: Regulatory Flexibility Act as amended by the Small Business Regu latory Enforcement Fairness Act.” OPEI Regulatory Development Series. November 2006. This can be found on the Internet at http://www.epa.gov/sbrefa/documents/rfaguidance11

- 00
- 06.pd f
.7
- 16

concluded that it cannot certify that there will be no SISNOSE for this rule. Results for small entities discussed here , however, do not account for the reality that electricity markets are regulated in parts of the country. Entities operating in regulated or cost
- of
- service markets should be able to recover all of their costs of compliance through rate adjustments. Note that the estimated costs for small entities are significantly lower than those estimated by EPA for the MATS proposal (which were $379 million). This is driven by a small group of units (less than 6 percent) which were projected to be uneconomic to operate under the proposal (and hence incurred lost profits due to lost electricity revenues), but are now projected to continue their operations under MATS. In addition, EPA’s modeling indicates one unit that would have operated at a low capacity factor under the base case would find it economical to increase its generation significantly under MATS to mee t electricity demand in its region. Excluding this unit, the total cost impacts across all entities would be roughly $175 million. Changes in compliance behavior for this small group of units, in particular the one unit which operates at a higher capacity factor, has a substantial impact on total costs for the entire group as their increased generation revenues offsets a la rge portion of the compliance costs. The separate components of annualized costs to small entities under MATS are summarized in Table 7
- 2. The most significant components of incremental costs to these entities are increased capital and operating costs for retrofits, followed by changes in electricity revenues (i.e., cost savings).7
- 17

**Table 7** **- 2.**  **Incremental Annualized Costs under MATS**  **Summarized by Ownership**  **Group and**

**Cost Category in 2015 (200**  **7$ millions)**  **EGU Ownership Type**  **Capital+**

**Operating Costs ($MM)**  **Fuel Costs**

**($MM) Change in** 

**Electricity Revenue ($MM)**  **Total**
A B C **=A+B -** **C** Co
- Op 161.5 86.4 277.5
- 29.7 IOU 39.3 0 6.3 33.0 Municipal 76.4 1.9 28.7 49.7 Sub
- division 73.9 2.2 31.3 44.8 Private 5.5 0
- 2.9 8.4 **Total 356**  **91 341**  **106** Note: Totals may not add due to rounding. Source: ICF International analysis based on IPM modeling results Capital and operating costs increase across all ownership types, but the direction of changes in electricity revenues vary among ownership types. All o wnership types, with the exception of private entities, experience a net gain in electricity revenues under the MATS, unlike projections from EPA’s modeling during the proposal, where only municipals benefitted from higher electricity revenues. The change in electricity revenue takes into account both the profit lost from units that do not operate under the policy case and the difference in revenue for operating units under the policy case. According to EPA’s modeling, an estimated 274 MW of capacity owne d by small entities is considered uneconomic to operate under the policy case, resulting in a net loss of $13 million (in 2007$) in profits. On the other hand, many operating units actually increase their electricity revenue due to higher electricity prices under MATS. In addition, as mentioned above, EPA’s modeling indicates one unit finds it economical to increase its capacity factor significantly under the policy case which results in significantly higher revenues offsetting the costs. **7.4.6 Descri** 

**ption of Steps to Minimize Impacts on Small Entities** Consistent with the requirements of the RFA and SBREFA, the EPA has taken steps to minimize the significant economic impact on small entities. Because this rule does not affect units with a generating c apacity of less than 25 MW, small entities that do not own at least one generating unit with a capacity greater than 25 MW are not subject to the rule. According to the EPA's analysis, among the coal
- and oil
-fired EGUs (i.e., excluding combined cycle gas turbines and gas combustion turbines) about 26 potentially small entities only own EGUs with a7
- 18

capacity less than or equal to 25 MW, and none of those entities are subject to the final rule based on the statutory definition of potentially regulated units. For units affected by the proposed rule, the EPA considered a number of comments received, both during the Small Business Advocacy Review (SBAR) Panel and the public comment period. While none of the alternatives adopted are specifically applied to small entities, the EPA believes these modifications will make compliance less onerous for all regulated units, including those owned by small entities. 7.4.6.1 Work Practice Standards Consistent with Sierra Club v. EPA, the EPA proposed numerical emission standards that would apply at all times, including during periods of startup and shutdown. After reviewing comments and other data regarding the nature of these periods of operation, t he EPA is finalizing a work practice standard for periods of start up and shut down. The EPA is also finalizing work practice standards for organic HAP from all subcategories of EGUs. The EPA has chosen to finalize work practice standards because the signi ficant majority of data for measured organic HAP emissions from EGUs are below the detection levels of the EPA test methods, and, as such, the Agency considers it impracticable to reliably measure emissions from these units. Descriptions of the work practi ce requirements for startup and shutdown, as well as organic HAP, can be found in Section VI.D
- E. of the preamble. 7.4.6.2 Continuous Compliance and Notification, Record
-keeping, and Reporting The final rule greatly simplifies the continuous compliance req uirements and provides two basic approaches for most situations: use of continuous monitoring and periodic testing. The frequency of periodic testing has been decreased from monthly in the proposal to quarterly in the final rule. In addition to simplifying compliance, the EPA believes these changes considerably reduce the overall burden associated with recordkeeping and reporting. These changes to the final rule are described in more detail in Section VI.G
- H. of the preamble. 7.4.6.3 Subcategorization The S mall Entity Representatives on the SBAR Panel were generally supportive of subcategorization and suggested a number of additional subcategories the EPA should consider when developing the final rule. While it was not practicable to adopt the proposed subca tegories, the EPA maintained the existing subcategories and split the “liquid oil
-fired units” subcategory into two individual subcategories
– contine ntal and non
- continental units.7
- 19

7.4.6.4 MACT Floor Calculations As recommended by the EPA SBAR Panel repre sentative, the EPA established the MACT floors using all the available ICR data that was received to the maximum extent possible consistent with the CAA requirements. The Agency believes this approach reasonably ensures that the emission limits selected as the MACT floors adequately represent the level of emissions actually achieved by the average of the units in the top 12 percent, considering operational variability of those units. Additionally, following proposal, the EPA reviewed and revised the procedu re intended to account for the contribution of measurement imprecision to data variability in establishing effective emissions limits. 7.4.6.5 Alternatives Not Adopted The EPA chose not to adopt several of the suggestions posed either during the SBAR Panel or public comment period. The EPA did not propose a percent reduction standard as an alternative to the concentration
- based MACT floor. The percent reduction format for Hg and other HAP emissions would not have addressed the EPA’s desire to promote, and g ive credit for, coal preparation practices that remove Hg and other HAP before firing. Also, to account for the coal preparation practices, sources would be required to track the HAP concentrations in coal from the mine to the stack, and not just before an d after the control device(s), and such an approach would be difficult to implement and enforce. Furthermore, the EPA does not believe the percent reduction standard is in line with the Court’s interpretation of the Clean Air Act section 112 requirements. Even if we believed it was appropriate to establish a percent reduction standard, we do not have the data necessary to establish percent reduction standards for HAP, as explained further in the response to comments document
. The EPA chose not to establish GACT standards for area sources for a number of reasons. The data show that similar HAP emissions and control technologies are found on both major and area sources greater than 25 MWe, and some large units are synthetic area sources. In fact, because of the significant number of well
- controlled EGUs of all sizes, we believe it would be difficult to make a distinction between MACT and GACT. Moreover, the EPA believes the standards for area source EGUs should reflect MACT, rather than GACT, because there i s no essential difference between area source and major source EGUs with respect to emissions of HAP. The EPA chose not to exercise its discretionary authority to establish health
- based emission standards for HCL and other HAP acid gases. Given the limit ations of the currently available information (e.g., the HAP mix where EGUs are located, and the cumulative impacts of7
- 20

respiratory irritants from nearby sources), the environmental effects of HCl and the other acid gas HAP, and the significant co
- benefits from reductions in criteria pollutants the EPA determined that setting a conventional MACT standard for HCl and the other acid gas HAP was the appropriate course of action. As required by section 212 of SBREFA, the EPA also is preparing a Small Entity Comp liance Guide to help small entities comply with this rule. Small entities will be able to obtain a copy of the Small Entity Compliance guide at the following Web site: http://www.epa.gov/airquality/powerplanttoxics/actions.html
. **7. 5**  **Unfunded Mandates Refor m Act (UMRA) Analysis**  Title II of the UMRA of 1995 (Public Law 104
-4)(UMRA) establishes requirements for federal agencies to assess the effects of their regulatory actions on state, local, and t ribal governments and the private sector. Under Section 202 of the UMRA, 2 U.S.C. 1532, EPA generally must prepare a written statement, including a cost
- benefit analysis, for any proposed or final rule that “ includes any Federal mandate that may result in the expenditure by State, local, and t ribal governments, in t he aggregate, or by the private sector, of $100,000,000 or more ... in any one year. ” A “ Federal mandate ” is defined under Section 421(6), 2 U.S.C. 658(6), to include a “ Federal intergovernmental mandate ” and a “ Federal private sector mandate. ” A
“ Federa l intergovernmental mandate ,” in turn, is defined to include a regulation that “would impose an enforceable duty upon State, Local, or t ribal governments, ” Section 421(5)(A)(i), 2 U.S.C. 658(5)(A)(i), except for, among other things, a duty that is “ a condi tion of Federal assistance, ” Section 421(5)(A)(i)(I). A “ Federal private sector mandate ” includes a regulation that “would impose an enforceable duty upon the private sector, ” with certain exceptions, Section 421(7)(A), 2 U.S.C. 658(7)(A). Before promulgating an EPA rule for which a written statement is needed under Section 202 of the UMRA, Section 205, 2 U.S.C. 1535, of the UMRA generally requires EPA to identify and consider a reasonable number of regulatory alternatives and adopt the least costly, most cost - effective, or least burdensome alternative that achieves the objectives of the rule. Moreover, section 205 allows EPA to adopt an alternative other than the least costly, most cost
effective or least burdensome alternative if the Admin istrator publishes an explanation why that alternative was not adopted. In a manner consistent with the intergovernmental consultation provisions of Section 204 of the UMRA, EPA carried out consultations with the governmental entities affected by this rule . EPA held meetings with states and t ribal representatives in which the Agency presented its7
- 21

plan to develop a proposal and provided opportunities for participants to provide input as part of the rulemaking process. EPA has also analyzed the economic impacts of MATS on government entities and this section presents the results of that analysis. The UMRA analysis does not examine potential indirect economic impacts associated with the rule, such as employment effects in industries providing fuel and pollutio n control equipment, or the potential effects of electricity price increases on industries and households. **7.5.1 Identification of**  **Affected Government Entities**  Using Ventyx data, EPA ident ified state
- and municipality
- owned utilities and subdivisions that would be affected by th is rule. EPA then used IPM parsed outputs (based on EPA modeling assumptions) to associate these entities with individual generating units. The analysis focused on ly on EGUs affected by MATS, which includes units burning coal, oil, petroleum coke, or waste coal as the primary fuel, and excludes any combustion turbine units. Entities that did not own at least one unit with a generating capacity of greater than 25 MW were also removed from the dataset because of their exemption from the rule. Finally, government entities for which EPA’s modeling does not project generation in 2015 under the base case were also exempted from this analysis, because they are not projecte d to operate and are thus not projected to face compliance costs with th is rule. Based on this, EPA identified 96 state, municipal , and sub
- divisions affiliated with 172 electric generating units that are potentially affected by MATS
. **7.5.2 Compliance Cos** **t Impacts** After identifying the potentially affected government entities, EPA estimated the impact of MATS in 2015 based on the following:

 total impacts of compliance on government entities and

 ratio of government entity impacts to revenues from electricity generation.

7.5.2.1 Methodology for Estimating Impacts MATS on Government Entities EPA estimate d compliance costs of MATS as follows:

C Compliance = Δ C Operating+Capital + Δ C Fuel - Δ R7
- 22

where C represents a component of cost as labeled, and Δ R represents the retail value of change in electricity generation, calculated as the difference in projected revenues between the base case and MATS
. Based on this formula, compliance costs for a give n government entity could either be positive or negative (i.e., cost savings) based on their compliance choices and market conditions. Under MATS, some units will forgo some level of electricity generation (and thus revenues) to comply and this impact wil l be lessened on those entities by the projected increase in electricity prices under MATS . On the other hand, some units may increase electricity generation, and coupled with the increase in electricity prices, will see an increase in electricity revenue s resulting in lower net compliance costs. If entities are able to increase revenue more than an increase in retrofit and fuel costs, ultimately they will have negative net compliance costs (or savings). Because this analysis evaluates the total costs as a sum of the costs associated with compliance choices as well as changes in electricity revenues, it captures savings or gains such as those described. As a result, what EPA describes as a cost is really more of a measure of the net economic impact of th e rule on government entities
. For this analysis, EPA used unit
- level data from IPM runs conducted with EPA’s modeling assumptions to estimate costs based on the parameters above. These impacts were then aggregated for each government entity, adjusting fo r ownership share. Compliance cost estimates were based on the following: changes in capital and operating costs, change in fuel costs, and change in electricity generation revenues under MATS relative to the base case. These components of compliance cost were estimated as follows : **(1) Capital and operating costs:**  Using EPA’s modeling results for the base case and the MATS policy case, EPA identified units that install control technology under this rule and the technologies installed. The equations for calcu lating operating and capital costs were adopted from EPA’s version of IPM (version 4.10_MATS). The model calculates the capital cost (in $/MW); the fixed operation and maintenance (O&M) cost (in $/MW

-year); and the variable O&M cost (in $/MWh) **(2) Fuel**  **costs:** Fuel costs were estimated by multiplying fuel input (MMBtu) by region and fuel prices ($/MMBtu) from EPA’s modeling. The change in fuel expenditures under MATS was then estimated by taking the difference in fuel costs between MATS and the base case
.7
- 23

**(3) Value of electricity generated:**  EPA estimated the value of electricity generated by multiplying the estimated electricity generation from EPA’s IPM modeling results with the regional
- adjusted retail electricity price s ($/MWh)
. 7.5.2.2 Results As wa s done for the small entities analysis, EPA assessed the economic and financial impacts of the rule using the ratio of compliance costs to the value of revenues from electricity generation, and our results focus on those entities for which this measure cou ld be greater than 1 percent or 3 percent of base revenues. EPA projects that 42 government entities will have compliance costs greater than 1 percent of base generation revenue in 201 5 and 32 may experience compliance costs greater than 3 percent of base revenues. Overall, 6 units owned by government entities are projected to be uneconomic to maintain. The separate components of the annualized costs to government entities under MATS are summarized in Table 7
- 3 below. The most significant components of incremental costs to these entities are the increased capital and operating costs, followed by increases in electricity revenues (i.e., a cost saving)
. **Table 7** **- 3.**  **Incremental Annualized Costs under MATS**  **Summarized by Ownership Group and**

**Cost Category ( 2** **00 7$**  **millions) in 2015** 
**EGU Ownership**  **Type Capital Costs +** 

**Operating Costs($MM)**  **Fuel Costs**

**($ MM) Change in** 

**Revenue ($ MM)**  **Total**
A B C =A+B
- C Sub
- Division 128.0 50.7 106.4 72.3 State 65.9 1.2 32.7 34.4 Municipal 516.3 45.4 374.3 187.4 Total **710 97**  **513 294**  Note: Totals may not add due to rounding. Definitions of ownership types are based on those provided by Ventyx’s Energy Velocity. Municipal: A municipal utility, responsible for power supply and distribution in a small region, such as a city. Sub
- division: Political Subdivision Utility is a county, municipality, school district, hospital district, or any other p olitical subdivision that is not classified as a municipality under state law. Source: ICF International analysis based on IPM modeling results The number of potentially affected government entities by ownership type and potential impacts of MATS are summarized in Table 7
-4. All costs are reported in 200 7$ millions . EPA estimated the annualized net compliance cost to government entities to be ap proximately $294 million in 2015.7
- 24

**Table 7** **- 4.**  **Summary of Potential Impacts on Government Entities under MATS**  **in 2015**

**EGU Ownership**  **Type Number of** 

**Potentially Affected**  **Entities Number of** 

**Entities Withdrawing all**  **Affected units Total Net Costs** 

**of MACT compli**  **ance ($ MM)**  **Number of**

**Government Entities with Compliance Cost**  **> 1% of Generation Revenues**  **Number of Government**

**Entities with Compliance Cost > 3% of Generation**  **Revenues** Sub
- Division 11 0 72.3 5 4 State 5 0 34.4 4 3 Municipal 80 0 187.4 33 2 5 **Total 96**  **0 294**  **42 32**  Note: The total number of entities with costs greater than 1 percent or 3 percent of revenues includes only entities experiencing positive costs. Abo ut 3 0 of the 96 total potentially affected government entities are estimated to have cost savings under the MACT policy case (see text above for an explanation). Source: ICF International analysis based on IPM modeling results Capital and operating costs increase over all ownership types. All ownership types, however, also experience a net gain in electricity revenue, mainly due to higher electricity prices under the policy case. As described in the small entity analysis, the change in electricity revenue takes into account both the profit lost from units that do not operate under the policy case and the difference in revenue for operating units under the policy case. According to EPA’s modeling, an estimated 757 MW of electri city generation is estimated to be uneconomic to operate under the policy case, accounting for about $20 million in lost profits. On the other hand, many operating units actually increase their electricity revenue due to higher electricity prices under th e MATS policy scenario
. **7. 6**  **Executive Order 13132, Federalism** Under EO 13132, the EPA may not issue an action that has federalism implications, that imposes substantial direct compliance costs, and that is not required by statute, unless the Federal gover nment provides the funds necessary to pay the direct compliance costs incurred by state and local governments, or the EPA consults with state and local officials early in the process of developing the final action. The EPA has concluded that this action ma y have federalism implications, because it may impose substantial direct compliance costs on state or local governments, and the Federal government will not provide the funds necessary to pay those costs. Accordingly, the EPA provides the following federal ism summary impact statement as required by section 6(b) of EO 13132.7
- 25

Based on estimates in the RIA, provided in the docket, the final rule may have federalism implications because the rule may impose approximately $294 million in annual direct compliance costs on an estimated 96 state or local governments. Specifically, we estimate that there are 80 municipalities, 5 states, and 11 political subdivisions (i.e., a public district with territorial boundaries embracing an area wider than a single municipality and frequently covering more than one county for the purpose of generating, transmitting and distributing electric energy) that may be directly impacted by this final rule. Responses to the EPA’s 2010 ICR were used to estimate the nationwide number of pot entially impacted state or local governments. As previously explained, this 2010 survey was submitted to all coal
- and oil
fired EGUs listed in the 2007 version of DOE/EIA’s “Annual Electric Generator Report,” and “Power Plant Operations Report.” The EPA c onsulted with state and local officials in the process of developing the rule to permit them to have meaningful and timely input into its development. The EPA met with 10 national organizations representing state and local elected officials to provide gene ral background on the rule, answer questions, and solicit input. **7. 7**  **Executive Order 13175, Consultation and Coordination with Indian Tribal Governments**  EPA has concluded that this action may have t ribal implications. The EPA offered consultation with t ri bal officials early in the regulation development process to permit them an opportunity to have meaningful and timely input
. Consultation letters were sent to 584 t ribal leaders and provided information regarding the EPA’s development of this rule and offered consultation. Three consultation meetings were held : December 7, 2010, with the Upper Sioux Community of Minnesota; December 13, 2010, with the Moapa Band of Paiutes, Forest County Potawatomi, Standing Rock Sioux Tribal Council, and Fond du La c Band of Chippewa; January 5, 2011, with the Forest County Potawatomi and a representative from the National Tribal Air Association. In these meetings, the EPA presented the authority under the CAA used to develop these rules and an overview of the indust ry and the industrial processes that have the potential for regulation. Tribes expressed concerns about the impact of EGUs on Indian country
. Specifically, they were concerned about potential Hg deposition and the impact on the water resources of the Tribe s, with particular concern about the impact on subsistence lifestyles for fishing communities, the cultural impact of impaired water quality for ceremonial purposes, and the economic impact on tourism. In light of these concerns, the T ribes expressed interest in an expedited implementation of the rule. Other concerns expressed by T ribes related to how the Agency would consider varia bility in setting the standards and the use of t ribal
- specific fish7
- 26

consumption data from the Tribes in our assessments . T hey were not supportive of using work practice standards as part of the rule and asked the Agency to consider going beyond the MACT floor to offer more protection for the t ribal communities. In addition to these consultations, the EPA also conducted outreach on this rule through presentations at the National Tribal Forum in Milwaukee, WI ; phone calls with the National Tribal Air Association ; and a webinar for Tribes on the proposed rule. The EPA specifically requested tribal data that could support the appropria te and necessary analyses and the RIA for this rule. In addition, the EPA held individual consultations with the Navajo Nation on October 12, 2011; as well as the Gila River Indian Community, Ak
- Chin Indian Community, and the Hopi Nation on October 14, 201 1. These T ribes expressed concerns about the impact of the rule on the Navajo Generating Station (NGS), the impact on the cost of the water allotted to the T ribes from the Central Arizona Project (CAP), the impact on tribal revenues from the coal mining op erations (i.e., assumptions about reduced mining if NGS were to retire one or more units) , and the impacts on employment of tribal members at both the NGS and the mine. More specific comments can be found in the docket. **7. 8**  **Protection of Children from Env ironmental Health and Safety Risks**  This final rule is subject to EO 13045 (62 FR 19885, April 23, 1997) because it is an economically significant regulatory action as defined by EO 12866, and the EPA believes that the environmental health or safety risk ad dressed by this action may have a disproportionate effect on children. Accordingly, we have evaluated the environmental health or safety effects of the standards on children. Although this final rule is based on technology performance, the standards are de signed to protect against hazards to public health with an adequate margin of safety as described in the preamble. The protection offered by this rule may be particularly important for children, especially the developing fetus. As referenced in Chapter 4 of this RIA, “Mercury and Other HAP Benefits Analysis, ” children are more vulnerable than adults to many HAP emitted by EGUs due to differential behavior patterns and physiology. These unique susceptibilities were carefully considered in a number of differe nt ways in the analyses associated with this rulemaking, and are summarized in the RIA. **7. 9**  **Statement of Energy Effects** Our analysis to comply with EO 13211 (Statement of Energy Effects) can be found in Section 3. 1 6 of this RIA.7
- 27

**7. 1**  **0 National Technology**  **Transfer and Advancement Act** Section 12(d) of the National Technology Transfer and Advancement Act (NTTAA) of 1995 (Public Law No. 104
- 113; 15 U.S.C. 272 note) directs the EPA to use voluntary consensus standards in its regulatory activities unless to do s o would be inconsistent with applicable law or otherwise impractical. Voluntary consensus standards are technical standards (e.g., materials specifications, test methods, sampling procedures, business practices) that are developed or adopted by voluntary c onsensus standards bodies. The NTTAA directs the EPA to provide Congress, through OMB, explanations when the Agency decides not to use available and applicable voluntary consensus standards. This rulemaking involves technical standards. The EPA cites the following standards in the final rule: EPA Methods 1, 2, 2A, 2C, 2F, 2G, 3A, 3B, 4, 5, 5D, 17, 19, 23, 26, 26A, 29, 30B of 40 CFR Part 60 and Method 320 of 40 CFR Part 63. Consistent with the NTTAA, the EPA conducted searches to identify voluntary consensus standards in addition to these EPA methods. No applicable voluntary consensus standards were identified for EPA Methods 2F, 2G, 5D, and 19. The search and review results have been documented and are placed in the docket for the proposed rule. The three vo luntary consensus standards described below were identified as acceptable alternatives to EPA test methods for the purposes of the final rule. The voluntary consensus standard American National Standards Institute (ANSI) / American Society of Mechanical En gineers (ASME) PTC 19
- 10
- 1981, “Flue and Exhaust Gas Analyses [Part 10, Instruments and Apparatus] ” is cited in the final rule for its manual method for measuring the O2, CO2, and CO content of exhaust gas. This part of ANSI/ASME PTC 19
- 10
- 1981 is an acceptable alternative to Method 3B. The voluntary consensus standard ASTM D6348
-03 ( Reapproved 2010), “Standards Test Method for Determination of Gaseous Compounds by Extractive Direct Interface Fourier Transform (FTIR) Spectroscopy” is acceptable as an altern ative to Method 320 and is cited in the final rule, but with several conditions: (1) The test plan preparation and implementation in the Annexes to ASTM D
- 6348
- 03, Sections A1 through A8 are mandatory; and (2) In ASTM D6348
- 03 Annex A5 (Analyte Spiking Tec hnique), the percent (%) R must be determined for each target analyte (Equation A5.5). In order for the test data to be acceptable for a compound, %R must be 70 % ≥ R ≤ 130%. If the %R value does not meet this criterion for a target compound, the test data are not acceptable for that compound and the test must be repeated for that analyte (i.e., the sampling and/or analytical procedure should be adjusted before a7
- 28

retest). The %R value for each compound must be reported in the test report, and all field meas urements must be corrected with the calculated %R value for that compound by using the following equation: Reported Result = (Measured Concentration in the Stack x 100) / % R. The voluntary consensus standard ASTM D6784
-0 2, “Standard Test Method for Eleme ntal, Oxidized, Particle
- Bound and Total Mercury in Flue Gas Generated from Coal
- Fired Stationary Sources (Ontario Hydro Method),” is an acceptable alternative to use of EPA Method 29 for Hg only or Method 30B for the purpose of conducting relative accuracy tests of mercury continuous monitoring systems under this final rule. Because of the limitations of this method in terms of total sampling volume, it is not appropriate for use in performance testing under this rule. In addition to the voluntary consensu s standards the EPA used in the final rule, the search for emissions measurement procedures identified 16 other voluntary consensus standards. The EPA determined that 14 of these 16 standards identified for measuring emissions of the HAP or surrogates subj ect to emission standards in the final rule were impractical alternatives to EPA test methods for the purposes of this final rule. Therefore, the EPA does not intend to adopt these standards for this purpose. The reasons for this determination for the 14 m ethods are discussed below, and the remaining 2 methods are discussed later in this section
. The voluntary consensus standard ASTM D3154
-00, “Standard Method for Average Velocity in a Duct (Pitot Tube Method),” is impractical as an alternative to EPA Methods 1, 2, 3B, and 4 for the purposes of this rulemaking because the standard appears to lack in quality control and quality assurance requirements. Specifically, ASTM D3154
- 00 does not include the following: (1) proof that openings of standard pitot tube have not plugged during the test; (2) if differential pressure gauges other than inclined manometers (e.g., magnehelic gauges) are used, their calibration must be checked after each test series; an d (3) the frequency and validity range for calibration of the temperature sensors. The voluntary consensus standard ASTM D3464
- 96 ( Reapproved 2001), “Standard Test Method Average Velocity in a Duct Using a Thermal Anemometer,” is impractical as an alternat ive to EPA Method 2 for the purposes of this rule primarily because applicability specifications are not clearly defined, e.g., range of gas composition, temperature limits. Also, the lack of supporting quality assurance data for the calibration procedures and specifications, and certain variability issues that are not adequately addressed by the standard limit the EPA’s ability to make a definitive comparison of the method in these areas.7
- 29

The voluntary consensus standard ISO 10780:1994, “Stationary Source Emissions– Measurement of Velocity and Volume Flowrate of Gas Streams in Ducts,” is impractical as an alternative to EPA Method 2 in this rule. The standard recommends the use of an L
- shaped pitot, which historically has not been recommended by the EPA. The EPA specifies the S
-type design which has large openings that are less likely to plug up with dust. The voluntary consensus standard, CAN/CSA Z223.2

- M86 (1999), “Method for the Continuous Measurement of Oxygen, Carbon Dioxide, Carbon Monoxide, Sulphur Dio xide, and Oxides of Nitrogen in Enclosed Combustion Flue Gas Streams,” is unacceptable as a substitute for EPA Method 3A because it does not include quantitative specifications for measurement system performance, most notably the calibration procedures and instrument performance characteristics. The instrument performance characteristics that are provided are non
mandatory and also do not provide the same level of quality assurance as the EPA methods. For example, the zero and span/calibration drift is only checked weekly, whereas the EPA methods require drift checks after each run. Two very similar voluntary consensus standards, ASTM D5835
- 95 ( Reapproved 2001), “Standard Practice for Sampling Stationary Source Emissions for Automated Determination of Gas Co ncentration,” and ISO 10396:1993, “Stationary Source Emissions: Sampling for the Automated Determination of Gas Concentrations,” are impractical alternatives to EPA Method 3A for the purposes of this final rule because they lack in detail and quality assur ance/quality control requirements. Specifically, these two standards do not include the following: (1) sensitivity of the method; (2) acceptable levels of analyzer calibration error; (3) acceptable levels of sampling system bias; (4) zero drift and calibra tion drift limits, time span, and required testing frequency; (5) a method to test the interference response of the analyzer; (6) procedures to determine the minimum sampling time per run and minimum measurement time; and (7) specifications for data record ers, in terms of resolution (all types) and recording intervals (digital and analog recorders, only). The voluntary consensus standard ISO 12039:2001, “Stationary Source Emissions
-- Determination of Carbon Monoxide, Carbon Dioxide, and Oxygen
--Automated Met hods,” is not acceptable as an alternative to EPA Method 3A. This ISO standard is similar to EPA Method 3A, but is missing some key features. In terms of sampling, the hardware required by ISO 12039:2001 does not include a 3
-way calibration valve assembly or equivalent to block the sample gas flow while calibration gases are introduced. In its calibration procedures, ISO 12039:2001 only specifies a two
- point calibration while EPA Method 3A specifies a three
- point calibration. Also, ISO 12039:2001 does not s pecify performance criteria for calibration error,7
- 30

calibration drift, or sampling system bias tests as in the EPA method, although checks of these quality control features are required by the ISO standard. The voluntary consensus standard ASTM D6522
-00, “Standard Test Method for the Determination of Nitrogen Oxides, Carbon Monoxide, and Oxygen Concentrations in Emissions from Natural Gas
- Fired Reciprocating Engines, Combustion Turbines, Boilers and Process Heaters Using Portable Analyzers” is not an accepta ble alternative to EPA Method 3A for measuring CO and O2 concentrations for this final rule as the method is designed for application to sources firing natural gas. The voluntary consensus standard ASME PTC
- 38
- 80 R85 (1985), “Determination of the Concent ration of Particulate Matter in Gas Streams,” is not acceptable as an alternative for EPA Method 5 because ASTM PTC
- 38
- 80 is not specific about equipment requirements, and instead presents the options available and the pros and cons of each option. The key specific differences between ASME PTC
- 38
- 80 and the EPA methods are that the ASME standard: (1) allows in
- stack filter placement as compared to the out
- of
- stack filter placement in EPA Methods 5 and 17; (2) allows many different types of nozzles, pitots, and filtering equipment; (3) does not specify a filter weighing protocol or a minimum allowable filter weight fluctuation as in the EPA methods; and (4) allows filter paper to be only 99 percent efficient, as compared to the 99.95 percent efficiency required by the EPA methods. The voluntary consensus standard ASTM D3685/D3685M

- 98, “Test Methods for Sampling and Determination of Particulate Matter in Stack Gases,” is similar to EPA Methods 5 and 17, but is lacking in the following areas that are needed to p roduce quality, representative particulate data: (1) requirement that the filter holder temperature should be between 120oC and 134oC, and not just “above the acid dew
- point;” (2) detailed specifications for measuring and monitoring the filter holder tempe rature during sampling; (3) procedures similar to EPA Methods 1, 2, 3, and 4, that are required by EPA Method 5; (4) technical guidance for performing the Method 5 sampling procedures, e.g., maintaining and monitoring sampling train operating temperatures, specific leak check guidelines and procedures, and use of reagent blanks for determining and subtracting background contamination; and (5) detailed equipment and/or operational requirements, e.g., component exchange leak checks, use of glass cyclones for heavy particulate loading and/or water droplets, operating under a negative stack pressure, exchanging particulate loaded filters, sampling preparation and implementation guidance, sample recovery guidance, data reduction guidance, and particulate sample c alculations input.7
- 31

The voluntary consensus standard ISO 9096:1992, “Determination of Concentration and Mass Flow Rate of Particulate Matter in Gas Carrying Ducts
- Manual Gravimetric Method,” is not acceptable as an alternative for EPA Method 5. Although s ections of ISO 9096 incorporate EPA Methods 1, 2, and 5 to some degree, this ISO standard is not equivalent to EPA Method 5 for collection of PM. The standard ISO 9096 does not provide applicable technical guidance for performing many of the integral proce dures specified in Methods 1, 2, and 5. Major performance and operational details are lacking or nonexistent and detailed quality assurance/quality control guidance for the sampling operations required to produce quality, representative particulate data (e .g., guidance for maintaining and monitoring train operating temperatures, specific leak check guidelines and procedures, and sample preparation and recovery procedures) are not provided by the standard, as in EPA Method 5. Also, details of equipment and/o r operational requirements, such as those specified in EPA Method 5, are not included in the ISO standard, e.g., stack gas moisture measurements, data reduction guidance, and particulate sample calculations. The voluntary consensus standard CAN/CSA Z223.1

- M1977, “Method for the Determination of Particulate Mass Flows in Enclosed Gas Streams,” is not acceptable as an alternative for EPA Method 5. Detailed technical procedures and quality control measures that are required in EPA Methods 1, 2, 3, and 4 are not included in CAN/CSA Z223.1. Second, CAN/CSA Z223.1 does not include the EPA Method 5 filter weighing requirement to repeat weighing every 6 hours until a constant weight is achieved. Third, EPA Method 5 requires the filter weight to be reported to the ne arest 0.1 milligram (mg), while CAN/CSA Z223.1 requires reporting only to the nearest 0.5 mg. Also, CAN/CSA Z223.1 allows the use of a standard pitot for velocity measurement when plugging of the tube opening is not expected to be a problem. The EPA Method 5 requires an S
- shaped pitot. The voluntary consensus standard EN 1911
- 1,2,3 (1998), “Stationary Source Emissions
Manual Method of Determination of HCl
- Part 1: Sampling of Gases Ratified European Text
- Part 2: Gaseous Compounds Absorption Ratified European Text
- Part 3: Adsorption Solutions Analysis and Calculation Ratified European Text,” is impractical as an alternative to EPA Methods 26 and 26A. Part 3 of this standard cannot be considered equivalent to EPA Method 26 or 26A because the sample absorbing so lution (water) would be expected to capture both HCl and chlorine gas, if present, without the ability to distinguish between the two. The EPA Methods 26 and 26A use an acidified absorbing solution to first separate HCl and chlorine gas so that they can be selectively absorbed, analyzed, and reported separately. In addition, in EN 1911 the absorption7
- 32

efficiency for chlorine gas would be expected to vary as the pH of the water changed during sampling. The voluntary consensus standard EN 13211 (1998), is not acceptable as an alternative to the Hg portion of EPA Method 29 primarily because it is not validated for use with impingers, as in the EPA method, although the method describes procedures for the use of impingers. This European standard is validated for t he use of fritted bubblers only and requires the use of a side (split) stream arrangement for isokinetic sampling because of the low sampling rate of the bubblers (up to 3 liters per minute, maximum). Also, only two bubblers (or impingers) are required by EN 13211, whereas EPA Method 29 require the use of six impingers. In addition, EN 13211 does not include many of the quality control procedures of EPA Method 29, especially for the use and calibration of temperature sensors and controllers, sampling train assembly and disassembly, and filter weighing. Two of the 16 voluntary consensus standards identified in this search were not available at the time the review was conducted for the purposes of the final rule because they are under development by a voluntary consensus body: ASME/BSR MFC 13M, “Flow Measurement by Velocity Traverse,” for EPA Method 2 (and possibly 1); and ASME/BSR MFC 12M, “Flow in Closed Conduits Using Multiport Averaging Pitot Primary Flowmeters,” for EPA Method 2. Finally, in addition to th e three voluntary consensus standards identified as acceptable alternatives to EPA methods required in the final rule, the EPA is also specifying four voluntary consensus standards in the rule for use in sampling and analysis of liquid oil samples for moisture content. These standards are: ASTM D95
- 05 (Reapproved 2010) , “Standard Test Method for Water in Petroleum Products and Bituminous Materials by Distillation”, ASTM D4006
- 11, “Standard Test Method for Water in Crude Oil by Distillation”, ASTM D4177
- 95 (Reapproved 2010) , “Standard Practice for Automatic Sampling of Petroleum and Petroleum Products, and ASTM D4057
- 06 (Reapproved 2011), “Standard Practice for Manual Sampling of Petroleum and Petroleum Products.” Table 5, section 4.1.1.5 of appendix A, and section 3.1.2 of appendix B to subpart UUUUU, 40 CFR Part 63, list the EPA testing methods included in the final rule. Under section 63.7(f) and section 63.8(f) of subpart A of the General Provisions, a source may apply to the EPA for permission to use alt ernative test methods or alternative monitoring requirements in place of any of the EPA testing methods, performance specifications, or procedures specified.7
- 33

**7. 11**  **Environmental Justice 7.**  **11 .1**  **Environmental Justice Impacts** Executive Order 12898 (59 FR 7629, February 16, 1994) establishes Federal executive policy on environmental justice . Its main provision directs Federal agencies, to the greatest extent practicable and permitted by law, to make environmental justice (EJ) pa rt 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 U.S. The EPA has determined that this final rule will not have disproportionately high and adverse human health or environmental effects on minority, low income, or indigenous populations because it increases the level of environmental protection for all affected popu lations
. This final rule establishes national emission standards for new and existing EGUs that combust coal and oil. The EPA estimates that there are approximately 1,400 units located at 575 facilities covered by this final rule. This final rule will red uce emissions of all the listed HAP that come from EGUs. This includes metals (Hg, As, Be, Cd, Cr, Pb, Mn, Ni, and Se), organics (POM, acetaldehyde, acrolein, benzene, dioxins, ethylene dichloride, formaldehyde, and PCB), and acid gases (HCl and HF). At su fficient levels of exposure, these pollutants can cause a range of health effects including cancer; irritation of the lungs, skin, and mucous membranes; effects on the central nervous system such as memory and IQ loss and learning disabilities; damage to t he kidneys; and other acute health disorders. The final rule will also result in substantial reductions of criteria pollutants such as CO, PM, and SO2. Sulfur dioxide is a precursor pollutant that is often transformed into fine PM (PM 2.5 ) in the atmosphere. Reducing direct emissions of PM 2.5 and SO2 will, as a result, reduce concentrations of PM 2.5 in the atmosphere. These reductions in PM 2.5 will provide large health benefits, such as reducing the risk of premature mortality for adults, chronic and acute bronchitis, childhood asthma attacks, and hospitalizations for other respiratory and cardiovascular diseases. (For more details on the health effects of metals, organics, and PM 2.5, please refer to Chapters 4 and 5 of this RIA .) This final rule will also h ave a small effect on electricity and natural gas prices but has the potential to affect the cost structure of the utility industry and could lead to shifts in how and where electricity is generated.7
- 34

Today’s final rule is one of a group of regulatory acti ons that the EPA will take over the next several years to respond to statutory and judicial mandates that will reduce exposure to HAP and PM 2.5, as well as to other pollutants, from EGUs and other sources. In addition, the EPA will pursue energy efficiency improvements throughout the economy, along with other Federal agencies, states and other groups. This will contribute to additional environmental and public health improvements while lowering the costs of realizing those improvements. Together, these rule s and actions will have substantial and long
-term effects on both the U.S. power industry and on communities currently breathing dirty air. Therefore, we anticipate significant interest in these actions from EJ communities, as well as many others. 7. 11 .1.1 Key EJ Aspects of the Rule This is an air toxics rule; therefore, it does not permit emissions trading among sources. Instead, this final rule will place a limit on the rates of Hg and other HAP emitted from each affected EGU. As a result, emissions of H g and other HAP such as HCl will be substantially reduced in the vast majority of states. In some states, however, there may be small increases in Hg and other HAP emissions due to shifts in electricity generation from EGUs with higher emission rates to EG Us with already low emission rates. Hydrogen chloride emissions are projected to increase at a small number of sources but that does not lead to any increased emissions at the state level. The primary risk analysis to support the finding that this final rule is both appropriate and necessary includes an analysis of the effects of Hg from EGUs on people who rely on freshwater fish they catch as a regular and frequent part of their diet. These groups are characterized as subsistence level fishing populations or fishers. A significant portion of the data in this analysis came from published studies of EJ communities where people frequently consume locally
- caught freshwater fish. These communitie s included: (1) White and black populations (including female and poor strata) surveyed in South Carolina; (2) Hispanic, Vietnamese and Laotian populations surveyed in California; and (3) Great Lakes tribal populations (Chippewa and Ojibwe) active on ceded territories around the Great Lakes. These data were used to help estimate risks to similar populations beyond the areas where the study data was collected. For example, while the Vietnamese and Laotian survey data were collected in California, given the ethnic (heritage) nature of these high fish consumption rates, we assumed that they could also be associated with members of these ethnic groups living elsewhere in the U.S. Therefore, the high
- end consumption rates referenced in the California study for th ese ethnic groups were used to model risk at watersheds elsewhere in the U.S. As a result of this approach, the specific fish consumption patterns of several different EJ groups are7
- 35

fundamental to the EPA’s assessment of both the underlying risks that make this final rule appropriate and necessary, and of the analysis of the benefits of reducing exposure to Hg and the other hazardous air pollutants. The EPA’s analysis of risks from consumption of Hg
- contaminated fish is contained in Chapter 4 of this RIA
. The effects of this final rule on the health risks from Hg and other HAP are presented in the preamble and in the RIA for this rule. 7. 11 .1.2 Potential Environmental and Public Health Impacts to Vulnerable Populations The EPA has conducted several analyses that provide additional insight on the potential effects of this rule on EJ communities. These include: (1) The socio
- economic distribution of people living close to affected EGUs who may be exposed to pollution from these sources; and (2) an analysis of the distribution of health effects expected from the reductions in PM 2.5 that will result from implementation of this final rule (‘‘co
- benefits’’). **Socio -**  **economic distribution.** As part of the analysis for this final rule, the EPA reviewed the aggregate de mographic makeup of the communities near EGUs covered by this final rule. Although this analysis gives some indication of populations that may be exposed to levels of pollution that cause concern, it does NOT identify the demographic characteristics of the most highly affected individuals or communities. EGUs usually have very tall emission stacks; this tends to disperse the pollutants emitted from these stacks fairly far from the source. In addition, several of the pollutants emitted by these sources, such as a common form of mercury and SO2, are known to travel long distances and contribute to adverse impacts on the environment and human health hundreds or even thousands of miles from where they were emitted (in the case of elemental mercury, globally). T he proximity
-to -the
- source review is included in the analysis for this final rule because some EGUs emit enough hazardous air pollutants such as Nickel or Chromium (VI) to cause elevated lifetime cancer risks greater than 1 in a million in nearby communities. In addition, the EPA’s analysis indicates that there are localized areas with elevated levels of Hg deposition around most U.S. EGUs. 4 The analysis of demographic data used proximity
-to -the
- source as a surrogate for exposure to identify those populations considered to be living near affected sources, such that they have notable exposures to current hazardous air pollutant emissions from these sources. The demographic data for this analysis were extracted from the 2000 census data which were

4 See Excess Local Deposition TSD for more detail.7
- 36

provided to the EPA by the US Census Bureau. Distributions by race are based on demographic information at the census block level, and all other demographic groups are based on the extrapolation of census block group level data to the census block level. The socio
- demographic parameters used in the analysis included the following categories: Racial (White, African American, Native American, Other or Multiracial, and All Other Races); Ethnicity (Hispanic); and Other (Number of people below the poverty line, Nu mber of people with ages between 0 and 18, Number of people greater than or equal to 65, Number of people with no high school diploma). In determining the aggregate demographic makeup of the communities near affected sources, the EPA focused on those cens us blocks within three miles of affected sources and determined the demographic composition (e.g., race, income, etc.) of these census blocks and compared them to the corresponding compositions nationally. The radius of three miles (or approximately 5 kilo meters) is consistent with other demographic analyses focused on areas around potential sources. In addition, air quality modeling experience has shown that the area within three miles of an individual source of emissions can generally be considered the ar ea with the highest ambient air levels of the primary pollutants being emitted for most sources, both in absolute terms and relative to the contribution of other sources (assuming there are other sources in the area, as is typical in urban areas). While fa cility processes and fugitive emissions may have more localized impacts, the EPA acknowledges that because of various stack heights there is the potential for dispersion beyond 3 miles. To the extent that any minority, low income, or indigenous subpopulati on is disproportionately impacted by the current emissions as a result of the proximity of their homes to these sources, that subpopulation also stands to see increased environmental and health benefit from the emissions reductions called for by this rule. The results of EPA’s demographic analysis for coal fired EGUs are shown in Ta ble 7
- 5 . The data indicate that affected sources are located in areas where the minority share of the population living within a three mile buffer is higher than the national ave rage by 12 percentage points or 48%. For these same areas, the percent of the population below the poverty line is also higher than the national average by 4 percentage points or 31%. These results are presented in more detail in the ‘‘Review of Proximity Analysis,’’ February 2011, a copy of which is available in the docket. **PM 2.5**  **(co -**  **benefits) analysis.** As mentioned above, many of the steps EGUs take to reduce their emissions of air toxics as required by this final rule will also reduce emissions of7
- 37

PM and SO2. As a result, this final rule will reduce concentrations of PM 2.5 in the atmosphere. Exposure to PM 2.5 can cause or contribute to adverse health effects, such as asthma and heart disease, that significantly affect many minority, low
- income, and tribal individuals and their communities. Fine PM (PM 2.5 ) is particularly (but not exclusively) harmful to children, the elderly, and people with existing heart and lung diseases, including asthma. Exposure can cause premature death and trigger heart attacks, asthma attacks in children and adults with asthma, chronic and acute bronchitis, and emergency room visits and hospitalizations, as well as milder illnesses that keep children home from school and adults home from work. Missing work due to illness or the ill ness of a child is a particular problem for people who have jobs that do not provide paid sick days. Low-wage employees also risk losing their jobs if they are absent too often, even if it is due to their own illness or the illness of a child or other re lative. Finally, many individuals in these communities lack access to high quality health care to treat these types of illnesses. Due to all these factors, many minority and low
- income communities are particularly susceptible to the health effects of PM 2.5 and receive a variety of benefits from reducing it. We estimate that in 2016 the annual PM related benefits of the final rule for adults include approximately 4,200 to 11,000 fewer premature mortalities, 2,800 fewer cases of chronic bronchitis, 4,800 few er non -fatal heart attacks, 2,600 fewer hospitalizations (for respiratory and cardiovascular disease combined), 3.2 million fewer days of restricted activity due to respiratory illness and approximately 540,000 fewer lost work days. We also estimate substa ntial health improvements for children in the form of 130,000 fewer asthma attacks, 3,100 fewer emergency room visits due to asthma, 6,300 fewer cases of acute bronchitis, and approximately 140,000 fewer cases of upper and lower respiratory illness. We als o examined the level of PM 2.5 mortality risks prior to the implementation of the rule according to race, income, and educational attainment. We then estimated the change in PM 2.5 mortality risk as a result of this final rule among people living in the counties with the highest (top 5 percent) PM 2.5 mortality risk in 2005. We then compared the change in risk among the people living in these ‘‘high
- risk’’ counties with people living in all other counties. In 2005, people living in the highest risk counties and in the poorest counties were estimated to be at substantially higher risk of PM 2.5 - related death than people living in the other 95 percent of counties. This was true regardl ess of race; the difference between the groups of counties for each race was large while the differences among races in both groups of counties were very small. In contrast, the analysis found that people with less than high school education were predicted to have significantly greater risk from PM 2.5 mortality than people with a greater than high school education. This was true both for the highest
- risk counties and7
- 38

for the other counties. In summary, the analysis indicates that in 2005, educational status , living in one of the poorest counties, and living in a high
- risk county are associated with higher estimated PM 2.5 mortality risk while race is not. Our analysis predicts that this final rule will likely significantly reduce the risk of PM 2.5- related premature mortality among all populations of different races living throughout the U.S. compared to both 2005 and 2016 pre
- rule (i.e., base case) levels. The analysis indicates that people living in counties with the highest rates (top 5 percent) of PM 2.5 mo rtality risk in 2005 receive the largest reduction in mortality risk after this rule takes effect. We also estimate that people living in the poorest 5 percent of the counties will experience a larger reduction in PM 2.5 mortality risk when compared to all other counties. More information can be found below in section 7.11.3
. The EPA estimates that the benefits of the final rule are likely distributed among race s, income levels, and level s of education fairly evenly, although there is insufficient data to g enerate different concentration response functions for each demographic group. However, the analysis does indicate that this final rule in conjunction with the implementation of existing or final rules (e.g., the Cross
- State Air Pollution Rule) may help reduce the disparity in risk between those in the highest
- risk counties and the other 95 percent of counties for all races and educational levels.7-39 **Table 7** **- 5**  **. Comparative Summary of the Demographics within 5 Kilometers (3 Miles) of the Affected Sources (**  **population in millions**  **) a** 

**Population White**  **African American**  **Native**

**American Othe**  **r or**

**Multiracial Minority**  **b Hispanic**  **o r**  **Latino c**  **Age**

**0 –** **17 Age** 

**65+ No High**  **School Diploma**  **Below**

**Poverty Line**  Near source total (3 mi) 13
. 9 8.78 2 .51 0.10 2 .52 5 .13 2 .86 3 .37 1 .65 2 .20 2 .43 % of near source total 63% 18% 1% 18% 37% 21% 24% 12% 16% 17% National total 285 215 35 .0 2 .49 33 .3 70 .8 39 .1 77 .4 35 .4 36 .7 37.1 % of national total 75% 12% 1% 12% 25% 14% 27% 12% 13% 13% Sources: The demographics are from the U.S. Census Bureau, 2000. Information on the facilities is from U.S. EPA. a Racial and ethnic categories overlap and cannot be summed. b The “Minority” population is the overall population (in the first row) minus white population (in the second row). c The Census Bureau defines “Hispanic or Latino” as an ethnicity rather than a racial category, Hispanics or Latinos may belong to any race.7
-40

7. 11 .1.3 Meaningful Public Participation The EPA defines ‘‘ e nvironmental j ustice’’ to include meaningful involvement of all people regardless of race, color, national origin, or income with respect to the development, im plementation, and enforcement of environmental laws, regulations, and polic i es. To promote meaningful involvement, the EPA publicized the rulemaki ng via newsletters, EJ listserve s, and the internet, including the Office of Policy’s (OP) Rulemaking Gateway Web site (http://yosemite.epa.gov/opei/RuleGate.nsf/). During the comment period, the EPA discussed the proposed rule via a conference call with communities, conducted a community
- oriented webinar on the proposed rule, and posted the webinar presentation o n - line. The EPA also held three public hearings to receive additional input on the proposal. Once this rule is finalized, affected EGUs will need to update their Title V operating permits to reflect their new emission limits, any other new applicable req uirements, and the associated monitoring and recordkeeping from this rule. The Title V permitting process provides that when most permits are reopened (for example, to incorporate new applicable requirements) or renewed , there must be opportunity for publi c review and comments. In addition, after the public review process, the EPA has an opportunity to review the proposed permit and object to its issuance if it does not meet CAA requirements. 7. 11 .1. 4 Summary This final rule strictly limits the emissions ra te of Hg and other HAP from every affected EGU . T he EPA’s analysis indicates substantial health benefits, including for vulnerable populations, from reductions in PM 2.5 . The EPA’s analysis also indicates reductions in risks for individuals, including for m embers of minority populations, who eat fish frequently from U.S. lakes and rivers and who live near affected sources. Based on all the available information, the EPA has determined that this final rule will not have disproportionately high and adverse hum an health or environmental effects on minority, low income, or indigenous populations. The EPA is providing multiple opportunities for EJ communities to both learn about and comment on this rule and welcomes their participation. **7. 11**  **.2 Analysis of High Ris** **k Sub -** **Populations** In addition to the previously described assessment of EJ impacts, EPA is providing a qualitative assessment of sub
- populations with particularly high potential risks of mercury exposure due to high rates of fish consumption
. These popula tions overlap in many cases with7
-41

traditional EJ populations and would benefit from mercury reductions resulting from this rule. This section describes the available information on consumption rates for subpopulations with high fish consumption, and shows their locations in the U.S. Because of their high rates of fish consumption, reductions in mercury occurring in waterbodies where these populations catch fish will have a larger IQ benefit for these populations relative to the general fish consuming population. Based on a detailed review of the literature, EPA identified several high
- risk sub
populations (Moya, 2004; Burger, 2002, Shilling et al., 2010, Dellinger, 2004). The analysis of potentially high
- risk groups focuses on six subpopulations:

 low
- i ncome African
-American recreational/subsistence fishers in the Southeast region 5

 low
- income white recreational/subsistence fishers in the Southeast region

 low
- income female recreational/subsistence fishers

 Hispanic subsistence fishers

 Laotian subsistence fishers

 Chippewa/Ojibwe Tribe members in the Great Lakes area These specific subpopulations were selected based on published empirical evidence of particularly high self
- caught freshwater fish consumption rates among these groups. Evidence for the first three groups is based on a study by Burger (2002), which collect ed survey data from a random sample of participants in the Palmetto Sportsmen’s Classic in Columbia, SC. Of 458 respondents, 39 were black, 415 were white, and 149 were female. The sample size for the black population is relatively small, which increases u ncertainty, particularly in higher percentile consumption rate values provided for this group. In this study, results are also split out for poor respondents (0
–20K$ annual income). These consumption rates are relatively high, particularly for the higher p ercentiles. This observation forms the basis for our decision to assess a number of the subsistence populations only for watersheds located in US Census tracts containing members of source populations below the poverty line for the white and black populati ons.

5The low
- income designation is based on Census 2000 estimates of populations living in poverty. The Southeast for purposes of this analysis comprises Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee, Virginia, and West Virginia.7
-42

Evidence for the Hispanic and Laotian groups is based on a study by Shilling et al. (2010). This study looks at subsistence fishing activity among ethnic groups associated with more urbanized areas near the Sacramento and San Joaquin rivers in the Ce ntral Valley in CA. The authors note that many of these ethnic groups relied on fishing in origin countries and bring that practice here (e.g., Cambodian, Vietnamese and Mexican). The authors also note that fish consumption rates reported here for specific ethnic groups (specifically Southeast Asian) are generally in
- line with rates seen in WA and OR studies. For the Chippewa population, we use results from a study by Dellinger (2004), which gathered data on self
- reported fish consumption rates by Tribes in the Great Lakes area. Because fishing activity is highly variable across Tribes (and closely associated with heritage cultural practices) we have not extrapolated fishing behavior outside of the areas ceded to the Tribes covered in the study (regions in t he vicinity of the Great Lakes). The terms “subsistence” and “recreational” fishing are based on the terminology used in these published studies to describe the population of interest. In general, subsistence fishers are individuals whose primary objective in fishing is to acquire food for household consumption. For recreational fishers, the primary objective is to enjoy the outdoor activity; however, fish consumption is also often an objective. **Table 7 -**  **6 .**  **Reported Distributions of Self -**  **Caught Freshwater Fi sh Consumption Rates** 

**Among Selected Potentially High**  **- Risk Subpopulations** 

**Population Self** **- Caught Freshwater Fish Consumption Rate**  **(g/day) Study**  **Sample Size**  **Mean**

**(Median) 90** **th (95**  **th )** 

**Percentile** Low
- income African
-American recreational/subsistence fishers in Southeast 39 171 (137) 446 (557) Burger (2002)

Low
- income white recreational/ subsistence fishers in Southeast 415 38.8 (15.3) 93 (129) Burger (2002)
Low
- income female recreational/ subsistence fishers 149 39.1 (11.6) 123 (173) Burger (2002) Hispanic subsistence fishers 45 25.8 (19.1) 98 a (155.9) Shilling et al. (2010) Laotian subsistence fishers 54 47.2 (17) 144.8 a (265.8) Shilling et al. (2010) Great Lakes tribal groups 822 60 (113 b ) 136.2 a (213.1) a Dellinger (2004)

a Derived values using a log
- normal distribution, based on the median and the 95 th percentile or standard deviation reported in study. b Standard deviation in parentheses, rather than median.7
-43

Using county
- level growth projections, there were an estimated 3. 09 million low
- income African Americans in census tracts that have (1) at least one HUC
- 12 within 20 miles with a mercury fish tissue concentration estimate and (2) at least 25 African
-American inhabitants living below the poverty level , and 3.56 million a re projected to reside in these areas in 2016. The geographic distribution of the expected 2016 population is shown in Figure 7
- 1 . The total low
- income (below the poverty level) White population in the southeastern states was 3.26 million for 2005 and is p rojected to be 3.58 million in 2016 . The geographic distribution of this population for 2016 is shown in Figure 7
- 2. The total modeled low
- income female population was 18.4 million for 2005 and is projected to be 20.1 million for 2016 . The geographic distribution of the population modeled for 2016 is shown in Figure 7
- 3. The total modeled Hispanic population was 19.6 million for 2005 and is projected to be 27.2 million in 2016 . The geographic distribution of the population modeled for 2016 is shown in Figure 7
-4. The total modeled Laotian population was 80,000 for 2005 and projected to be 137,500 in 2016 . The geographic distribution of the population modeled for 2016 is shown in Figure 7
- 5. The total modeled Chippewa population used to simulate the distribution of IQ loss was 23,900 for 2005 and is projected to be 29,500 for 2016 . The geographic distribution of the population modeled for 2016 is shown in Figure 7
- 6.7
-44

**Figure 7 -**  **1 .**  **Projected African**  **- American Population Below the Poverty Lev** **el by Census Tract in the Southeast for 2016** 7
-45

**Figure 7 -**  **2 .**  **Projected White**  **Population Below the Poverty Level b y Census Tract**  **in the Southeast for 2016** 7
-46

**Figure 7 -**  **3. Projected Female Population Below the Poverty Level by Census Tract for 2016** 7
-47

**Figure 7 -** **4 .**  **Modeled Hispanic Population b** **y Census Tract for 2016**7
-48

**Figure 7 -**  **5 .**  **Modeled Laotian Population b** **y Census Tract for 2016**7
-49

**Figure 7 -**  **6 .**  **Modeled Chippewa Population b** **y Census Tract in the Great Lakes A** **rea for 2016.** 

**7.1 1**  **.3 Characterizing the Distribution of**  **Health Impacts across Population s**  EPA is developing new approaches and metrics to improve its characterization of the impacts of EPA rules on different populations. This analysis reflects one such approach, which explores two principal questions regarding the distribution of PM 2.5 - related benefits resulting from the implementation of MATS: 1. What is the baseline distribution of PM 2.5- related mortality risk for adults according to the race, income and education of the population?7
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2. How does MATS change the distribution of PM 2.5 mortality risk among populations of different races
— particularly among those populations at greatest risk in the baseline? 6 In this analysis we estimated that PM 2.5 mortality risk from the modeled scenarios is not distributed equally throughout the U.S., or among populations of different levels of educational attainment — though the level of PM 2.5 mortality risk appears to be shared fairly equally among populations of different races. We estimate that the air qu ality and PM 2.5 - related mortality risk improvements achieved by MATS are relatively equally distributed among minority populations, and that the rule reduces PM 2.5 mortality risk the most among those populations at greatest risk in the 2005 baseline we sel ected for this analysis
. We note that while the methods used for this analysis have been employed in recent EPA Regulatory Impact Assessments (EPA, 2011) and are draw n from techniques described in the peer reviewed literature (Fann et al. 2011b) EPA will continue to modify these approaches based on evaluation of the methods. 7.1 1 .3.1 Methodology The methods used here to describe the distribution of PM 2.5 mortality impacts are consistent with the approach used in the proposed MATS RIA (U.S. EPA, 2011a) and the final CSAPR RIA (U.S. EPA, 2011b). As a first step, we estimate the level of PM 2.5 - related mortality risk in each county in the continental U.S. base d on 2005 air quality levels, which provides a baseline distribution of risk which we use to identify populations with initial higher and lower baseline PM 2.5- related mortality risk
. This portion of the analysis follows an approach described elsewhere (F ann et al. 2011a, Fann et al. 2011b), wherein modeled 2005 PM 2.5 levels are used to calculate the proportion of all
- cause mortality risk attributable to total PM 2.5 levels in each county in the Continental U.S. Within each county we estimate the level of a ll
- cause PM 2.5 mortality risks for adult populations as well as the level of PM 2.5 mortality risk according to the race, income and educational attainment of the population. Our approach to calculating the distribution of PM 2.5 mortality risk across the p opulation is generally consistent with the benefits analysis conducted for the modeled scenario described in Appendix 5 C with two exceptions: the PM 2.5 mortality risk coefficients used to quantify impacts and the baseline mortality rates used to calculate mortality impacts (a detailed discussion of how both the mortality risk coefficients and baseline incidence rates are used to estimate the incidence of PM 2.5- related deaths may be found in the Chapter 5 of the RIA ). We

6 In this analysis we assess the change in risk among populations of different race, income and educational attainment. As we discuss further in the methodology, we consider this last variable because of the availability of education
- modified PM 2.5 mortality risk estimates.7
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substitute risk estimates drawn from the Krewski et al. (2009) extended analysis of the ACS cohort. In particular, we applied the all
- cause mortality risk estimate random effects Cox model that controls for 44 individual and 7 ecological covariates, using average exposure levels for 1999
- 2000 over 116 U.S. cities (Krewski et al. 2009) (RR=1.06, 95% confidence intervals 1.04
— 1.08 per 10μg/m 3 increase in PM 2.5 )

. This mean relative risk estimate is identical to the Pope et al. (2002) risk estimate applied for the benefits analysis (though the sta ndard error around the mean RR estimate is slightly narrower ). Within both this and other analyses of the ACS cohort (see Krewski et al. 2000), educational attainment has been found to be inversely related to the risk of all
- cause mortality. That is, popul ations with lower levels of education (in particular, < grade 12) are more vulnerable to PM 2.5 - related mortality. Krewski and colleagues note that “ ...the level of education attainment may likely indicate the effects of complex and multifactorial socioeconom ic processes on mortality... ,” factors that we would like to account for in this EJ assessment. When estimating PM mortality impacts among populations according to level of education, we applied PM 2.5 mortality risk coefficients modified by educational attai nment: less than grade 12 (RR = 1.082, 95% confidence intervals 1.024
— 1.144 per 10 μg/m 3 change), grade 12 (RR = 1.072, 95% confidence intervals 1.020
— 1.127 per 10 μg/m 3 change), and greater than grade 12 (RR = 1.055, 95% confidence intervals 1.018
— 1.094 p er 10 μg/m 3 change). The Pope et al. (2002) study does not provide education
- stratified RR estimates. The principal reason we applied risk estimates from the Krewski et al. (2009) study was to ensure that the risk coefficients used to estimate all
- cause mo rtality risk and education
- modified mortality risk were drawn from a consistent modeling framework. The other key difference between this distributional analysis and the benefits analysis for this rule relates to the baseline mortality rates. As described in Chapter 5 of this RIA, we calculate PM 2.5 - related mortality risk relative to baseline mortality rates in each county. Traditionally, for benefits analysis, we have applied county
- level age
- and sex
- stratified baseline mortality rates when calculating mortality impacts (Abt, 2010 ). To calculate PM 2.5 impacts by race, we incorporated race
- specific (stratified by White/Black/Asian/Native American) baseline mortality rates. This approach improves our abil ity to characterize the relationship between race and PM 2.5- related mortality however, we do not have a differential concentration
response function as we do for education , and as a result, we are not able to capture the full impacts of race in modifying t he benefits associated with reductions in PM2.5 The result of this analysis is a distribution of PM 2.5 mortality risk estimates by county, stratified by each of the three population variables (race, income and educational attainment).7
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We have less confide nce in county
- level estimates of mortality than the national or even state estimates, however, the modeling down to the county level can be considered reasonable because the estimates are based on 12km air quality modeling estimates of PM 2.5, county level baseline mortality rates, and a concentration
- response function that is derived from county level data. We next identified the counties at or above the median and upper 95 th percentile of the PM 2.5 mortality risk distribution. We selected this percentile cut- off to capture the very highest levels of PM 2.5 mortality risk. The second step of the analysis was to repeat the sequence above by estimating PM 2.5 mortality risk in 2016 prior to, and after, the implementation of MATS. 7.1 1 .3.2 Results We estimated t he change in PM 2.5 mortality risk in 2016 among populations living in those counties at the upper 95 th percentile of the mortality risk in 2005
. W e then compared the change in risk among these populations living in high
- risk counties with populations livi ng in all other counties (Tables 7
- 1 7 through 7
- 9 )
. **Table 7** **- 1**  **7 .**  **Estimated Change in the Percentage of All Deaths Attributable to PM**  **2.5 Before**  **and After Implementation of MATS by 2016 for Each Populations, Stratified by Race**

**Year Race**  **Asian Black**  **Native American**  **White Among populations at greater risk**  2016 (pre
- MATS Rule) 4.3% 4.4% 4.4% 4.5% 201 6 (post
- MATS Rule) 4.1% 4.1% 4 . 2 % 4.3% **Among all other populations** 2016 (pre
- MATS Rule) 3.2% 3.1% 3.1% 3.3% 201 6 (post
- MATS Rule) 3% 2.9% 2.9% 3.1%7
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**Table 7** **- 8**  **. Estimated**  **Change in the Percentage of All Deaths Attributable to PM 2.5**  **Before**

**and After Implementation of MATS by 2016 for Each Population, Stratified by**  **Race and Poverty Level**

**Year Race**  **Asian Black**  **Native American White**  **Among populations living in counties with the largest number of individuals living below the poverty line**  2016 (pre
- MATS) 3.6% 3.5% 3.6% 3.6% 201 6 (post
- MATS) 3% 3.4% 3% 3.5% **Among all other populations** 2016 (pre
- MATS) 3.2% 3 .2% 3.2% 3.3% 201 6 (post
- MATS) 3% 2.9% 3% 3.1%

**Table 7** **- 9**  **. Estimated**  **Change in the Percentage of All Deaths Attributable to PM 2.5**  **Before**

**and After the Implementation of MATS by 2016 for Each Population, Stratified by Educational Attainment** 

**Year Race**  **< Grade 12 = Grade 12**  **> Grade 12 Among**  **populations at greater risk** 2016 (pre
- MATS) 6.2% 5.5% 4.3% 201 6 (post
- MATS) 5.9% 5.3% 4.1% **Among all other populations** 2016 (pre
- MATS) 4.5% 4% 3.1% 201 6 (post
- MATS) 4.2% 3.8% 2.9%
Table 7
- 7 , shows the estimated level of PM 2.5 mortality risk among populations of different races according to whether those populations live in counties identified as “greater risk” counties or “ all other counties. ” As described above, we define “greater risk” counties as those at or above the 95 th p ercentile of the estimated PM 2.5 mortality risk in 2005, and “ all other counties” as those with estimated PM 2.5 mortality risk below this level. The results of this7
- 54

analysis suggest that the PM 2.5 mortality risk among these populations at “greater risk” falls with implementation of the 2016 MATS. These results also suggest that all populations, irrespective of race, may receive a n estimated reduction in PM 2.5 mortality risk . However, limits to data resolution prevent us from delineating the PM 2.5 mortal ity risk according to population race with confidence. Table 7
- 8 illustrate s the estimated change in the level of PM 2.5 mortality risk among populations living in those counties that meet two criteria: (1) the county is at the upper 95 th percentile of mortality risk in 2005; (2) the county is at the upper 95 th percentile in terms of the number of individuals living below the poverty line. We also estimate the change in PM 2.5 risk among all other counties. The analysis suggests that people living in the hig hest mortality risk and poorest counties may experience a larger improvement in PM 2.5 mortality risk than those living in lower risk counties containing a smaller number of individuals living below the poverty line. Table 7
- 9 summarize s the estimated chang e in PM 2.5 mortality risk among populations who have attained three alternate levels of education
— less than high school, high school and greater than high school. As described above, we apply education
- stratified PM 2.5 mortality risk coefficients for this analysis. These results indicate that populations with less than a high school education are at higher risk of PM 2.5 mortality, irrespective of whether these populations live in
“greater risk” counties, according to the definition described above. We estim ate that with the implementation of MATS, all populations see their PM 2.5 mortality risk fall, regardless of educational attainment. **7. 12**  **Congressional Review Act** The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the Small Business Regulatory Enforcement Fairness Act of 1996, generally provides that before a rule may take effect, the agency promulgating the rule must submit a rule report, which includes a copy of the rule, to each House of the Congress and to the Comptroller General of the Uni ted States. EPA will submit a report containing this rule and other required information to the U.S. Senate, the U.S. House of Representatives, and the Comptroller General of the United States prior to publication of the rule in the Federal Register. A maj or rule cannot take effect until 60 days after it is published in the Federal Register. This action is a ‘‘major rule’’ as defined by 5 U.S.C. 804(2). This rule will be effective 60 days after publication
.7
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**7. 13**  **References** Abt Associates, Inc. 2010. Environ mental Benefit s and Mapping Program (Version 4 .0). Bethesda, MD. Prepared for U.S. Environmental Protection Agency Office of Air Quality Planning and Standards. Research Triangle Park, NC. Available on the Internet at <http://www.epa.gov/air/benmap>. Bulla rd RD, Mohai P, Wright B, Saha R, et al. Toxic Waste and Race at Twenty 1987
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- 6924.2011.01629.x. Krewski D, Jerrett M, Burnett RT, Ma R, Hughes E, Shi, Y, et al. 2009. Extended follow
- up and spatial analysis of the American Cancer Society study linking particulate air pollution and mortality. HEI Research Report, 140, Health Effects Institute, Boston, MA. Krewski, D., R.T. Burnett, M.S. Goldbert, K. Hoover, J. Siemiatycki, M. Jerrett, M. Abrahamowicz, and W.H. White. 2000. Reanalysis of the Harvard Six Cities Study and the American Cancer Society Study of Particulate Air Pollution and Mortality. Special Report to the He alth Effects Institute. Cambridge MA. July. Mennis J. “Using Geographic Information Systems to Create and Analyze Statistical Surfaces of Populations and Risk for Environmental Justice Analysis.” Social Science Quarterly, 2002;83(1):281
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Pope, C.A., III, R.T. Burnett, M.J. Thun, E.E. Calle, D. Krewski, K. Ito, and G.D. Thurston. 2002. Lung Cancer, Cardiopulmonary Mortality, and Long
-term Exposure to Fine Particulate Air Pollution. Journal of the American Medical As sociation 287:1132
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- ROM. Woods & Poole Economics, Inc. U.S. GAO (Government Accountability Office). “Demographics of People Living Near Waste Facilities.” Washington DC: Government Printing Office; 1995. U.S. Environmental Protection Agency (U.S. EPA). 201 1a . Proposed Regulatory Impact Analysis (RIA) for the Mercury and Air Toxics Rule
. Office of Air Quality Planning and Standards, Research Triangle Park, NC. January . U.S. Environmental Protection Agency (U.S. EPA). 201 1b
. Final Regulatory Impact Analysis ( RIA) for the Transport Rule
. Office of Air Quality Planning and Standards, Research Triangle Park, NC. June .