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# OAR Box 1669 Prepped by Charmelle Mathews



### Document

Number: 

# '88lll-E-2 0 Docket Number: 

# A-98-1 3

Printed 9/23/20089:36:49AM

Sheet 88of 110P. 2

MEMORANDU M TO : Ai r

Docke t No . A-98-1 3 Organi c Liquid s Distributio n (OLD ) NESHA P ES D Projec t

No . 96/0 5 FROM : Marth aSmit h U.S . EPA/OAQPS/WCP G DATE : Septembe r 12 , 200 1 SUBJECT : Conferenc e Cal l t o Discus s Inter-Agenc y Comment s o n OL D NESHA P

Pre-Proposa l Rul e Packag e 

### OCT-1200 1 EP A AI R DOCKET

I . Purpos e Th e Offic e o f

Managemen t

an dBudge t

(OMB ) an dth e Smal l Busines s Adminstratio n (SBA ) requeste dth e opportunit y t o discus s issue s the y ha didentifie di n thei r revie w o f

th e EPA' s draf

t proposa l packag e for

th e OL D NESHAP . Th e purpos e ofthi s telephon e cal l wa s for OM B an dSB A t o presen t thei r comment s an dfor

th e EP A t o respond . II . Dat e Augus t 24 , 2001 , 9:0 0 am- 10:0 0 am III . Participant s Offic e o f Managemen t

an dBudge t Smal l Busines s Administratio n U.S . Environmenta l Protectio n Agenc y

Pacifi c Environmenta l Service s IV . Discussio n Summar y - Bryo n Alle n

- Jonatha n Pawlo w

- Keith Barnett Ken t C . Hustved t Marth aSmit

h Larry Sorrel s

- Gre g LaFla m

Marth aSmith an dLarry Sorrels , EPA , presente dabriefin g summarizin g feature s ofth e propose dOL D NESHAP , a s wel l a s it s projecte dcos t an deconomi c impact s (se e Attachmen t 1) .

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Mem o t o Docke t

A-98-1 3 Septembe r

12 , 200 1 Pag e 2

• Th e OM B an dSB A representative s the n discusse deac h o f thei r comment s i n turn , an d ' the*EP A responded , a s summarize dbelow . I Rul e applicability . Bryo n Alle n o f OM B aske dwhethe r

a n overlap o f

differen t NESHA P | regulation s migh t

occu r for an y ofth e HA P emissio n source s i n th e organi c liquid s distributio n I (OLD ) category . Fo r

example , i f

th e Miscellaneou s Organi c NESHA P (MON ) i s promulgate d arterlhTOL D NESHAP , woul dth e MO N the n appl y t o thos e MO N facilit y transfe r rack s previousl y covere db y th e OL D NESHAP ? Propose d§63.233 8 (b)(1 ) i s mean t t o avoi doverlap o f

applicabilit y o f

differen t NESHA P for th e sam e emissio n sources . Th e preambl e t o th e rul e include s adiscussio n ofthi s provisio n (i n Sectio n LA) , an dindicates tha t for tw o o r mor e potentiall y applicabl e NESHA P tha t ar e no t ye t final, th e rul e with th e earlies t complianc e dat e woul dapply . OMB/SB A suggeste dtha t th e EP A solici t

publi c commen t

i n th e preambl e o n it s propose d approac h for

thi s applicabilit y issue . Th e draf t MO N proposa l shoul dals o b e reviewe dt o determin e ho w thi s issu e i s addresse dan dit s compatibility with th e OL D NESHA P approach . Definitio n o f

sourc e for

transfe r racks . OM B wa s concerne dtha t definin g th e transfe r

rac k emissio n sourc e t o b e eac h loadin g positio n fo r atan k truc k o r railcar coul dlea dt o unintende d pressure s o n facilitie s wit h regar dt o thei r rac k utilization . A s an alternative , coul dth e entir e loadin g syste mb e define da s th e sourc e an daveragin g b e use dacros s th e source ? Thi s migh t eliminat e behaviora l distortion s whil e achievin g th e require dcontro l leve l an dpreservin g flexibility . Mr . Hustved t

an dMs . Smit

h responde dtha t

th e EP A believe s tha t

th e propose dapproac h actuall y doe s offe

r th e mos t flexibility for

source s t o consolidat e thei r contro l effort s i n fewer regulate dloadin g areas . Fo r example , man y source s may b e abl e t o pip e regulate dorgani c liquid s t o on e o r

mor e controlle dracks , whil e maintainin g othe r rack s i n an uncontrolle d conditio n for

non-regulate dliquids . Th e EP A ha s determine dtha t allowin g averagin g o f emission s i s effectiv e an dworkabl e onl y i n ver y limite dcircumstances , an dfor OL D liqui d transfe r operation s thi s woul dnot b e afeasibl e approach . Contro l cos t

estimates . SB A questione dth e cos t estimate s presente dfo

r th e flare contro l system s tha t woul db e installe da

t OL D transfe r

racks . Mr . Pawlo w sai dtha t h e ha dsee n considerabl y highe r cos t figure s for

similar contro l system s i n othe r

industries . H e aske dwhethe r th e EP A coul dd o aQ C chec k

o n it s estimates . Ms . Smith pointe dou t

tha t onl y abou t

2 0 percen t

ofth e rule' s annua l cos t

burde n i s attributabl e t o th e rac k

controls . Sh e state dtha t th e OAQP S Contro l Cos t Manua l was use dt o deriv e thes e costs , an dMr . Sorrel s provide dth e websit e wher e th e manua l coul db e found . Mr . 

# £P. 4

Mem o t o Docke t

A-98-1 3 Septembe r

12 , 200 1 Pag e 3 Pawlo w aske dwhethe r

som e facilitie s migh t

hav e additiona l cos t

elements (suc h a s lon g pipin g runs ) tha t woul dcreat e highe r

tota l costs . H e als o note dtha t th e equipmen t

leak componen t count s for whic h leak

detectio n progra mcost s wer e estimate dappeare dt o b e lo w versu s th e numbe r o f component s see n a

t chemica l plants . Mr . Hustved t pointe dout

tha t th e generall y simple r transfe r operation s i n th e OL D industr y accoun t fo r fewe r pumps , etc . t o perfor

mth e liqui dtransfers . Mr . Pawlo w aske dwhethe r th e EP A coul dsolici t

commen t o n it s projecte dcontro l cos t estimate s i n th e preamble . I n addition , h e suggeste dtha t vendor s o f

flare contro l system s b e contacte di n orde r

t o verif y tha t th e EPA' s cost s ar e realistic . Smal l busines s impacts . Mr . Sorrel s pointe dou t tha t th e projecte drul e impact s o n smal l businesse s wer e very low , an dtha t onl y tw o firms ar e estimate dt o hav e complianc e cost s tha t excee d1 percen t

o f thei r revenues . Mr . Pawlo w aske dwhethe r th e EP A coul dperfor

ma sensitivity analysi s o n thi s elasticity estimation , an dMr . Sorrel s agree dtha t suc h a n analysi s coul db e adde da s ane w appendi x t o th e Economi c Analysi s report for thi s NESHAP . Miscellaneou s comment . Mr . Alle n referre dt o atypographica l erro r tha t ha dbee n identifie dby DO T i n Tabl e 4 , ite m2 (C) , ofth e propose drule , whic h cite dite m2. B instea do f 2 . A . Th e EP A agree dt o correc t

thi s mistake . V . Actio n Item s Th e EP A agree dt o performth e followin g action s i n respons e t o th e issue s raise di n thi s phon e conference : 1 . Prepar e asensitivit y analysi s (a s ane w appendi x t o th e Economi c Analysi s report ) o n th e 1 percen t elasticit y estimate . 2 . Correc t

th e typographica l erro r

i n Tabl e 4 , ite m2 (C) , ofth e draf t propose drule . 3 . Contac t

tw o o r thre e vendor s o f

flar e contro l systems , t o obtai n a n evaluatio n ofth e EPA' s cos t estimate s for

transfe r rac k controls . 4 . Prepar e draf

t revision s t o th e preamble , solicitin g publi c commen t on : a ) th e languag e addressin g th e approac h take n fo r regulatory overlap , an db ) th e estimate dcapita l investmen t an d annua l cost s for

transfe r rac k contro l systems .