p.1 

OAR Box 1875 

Prepped by Ollie Stewart 

Document Number: 

56) ll-F-3 

Docket Number: 

A-90-19 

Printed 12/1/200811:12:47 AM Sheet 56 of 86 
P.2 

1 

A-90-19 

ll-F-3 

Attached are materials distributed by the EPA at a meeting 

with OMB on May 19, 1992. Below is a list of attendees. 

EPA OMB 

Bruce Jordan 

Jan Meyer 

Andrew Otis 

Tom Walton 

Mike Winer 

Rick Belzer 

Troy Hillier 

Tim Hunt 
P.3 

y 1 

Hazardous Organic NESHAP (HON) 

May 1992 
P.4 

Agenda 

Background 

Approach 

SOCMI Characteristics 

The Analyses 

Regulatory Options 

Approach 

Floor & Standard 

Control Options for Process Vents 

Options Selection 

Key Considerations 

Control Decisions 

Impacts Summary 

Potential Net Benefits 
P.5 

Approach 

Generic rulemaking for all of SOCMI 

The five emission points common throughout 

SOCMI 

Same emission controls apply 

Selected 

Consistent with previous rulemakings for SOCMI 

More efficient for both industry and government 
P.6 

What is SOCMI ? 

Subset of the chemical industry 

produce chemicals derived from 11 basic 

chemicals; 

or 

produce chemicals from other industrial organic 

chemicals 

SOCMI consists of 660 industrial organic chemicals 

Unit is subject to HON if: 

produces one (or more) of ~39 9 organic 

compounds listed in rule 

o List consists of organic HAP's and SOCMI 

chemicals that are produced using organic 

HAP's 

Process is exempt if no HAP's in process 
P.7 

SOCMI Characteristics 

Plant sites include 

One to several process units 

Non-SOCMI processes such as plastics and resins 

manufacture units, refinery operations, etc. 

Wide ranges in sizes and physical characteristics within the 

same kind of emission point (and between points) 
P.8 

The Analyses 

SOCMI characterization 

(1) Industry characterization 

(2) Model emission stream development 

(3) Model assignment to product processes 

Baseline control requirements 

Applicable control requirements in State and 

Federal rules 

Specific applicability 

Calcuilto emissions, emission reductions, and control 

costs 

emissions in absence of HON 

assign control technology 

calculate costs and emission reduction 
P.9 

The Analyses 

Approach for economic analysis 

(1) cumulative cost 

- 490 chemicals in the chemical trees 

- average and higher cost analysis 

(2) detailed analysis for subset of 20 chemicals 

- price and output adjustments 

Impacts presented are for total industry control 

control of all emission points 

overstates economic impacts 

Analysis of the selected option is underway 

will provide when available 
P.10 

Regulatory Options 

Most efficient universally applicable control techniques 

based on past and current rulemakings 

widely used within SOCMI 

Regulatory issue is which streams are to be controlled; 

not what is the control 

same control efficiency required in all options 

options vary in number of streams affected 

Options were defined considering 

least cost curve 

luYnpiness of the data 

criteria in other rules 

floor analysis 
Summary of Reference Controls 

p.n 

Point Specific Control Techniques 

Emission Point 

Equipment Leaks 

Process Vents 

Storage Vessels 

Wastewater 

Transfer 

Operations 

RCT 

• Leak Detection & Repair 

• Improved Maintenance 

• Combustion 

- Flare 

- Incinerator 

- Boiler 

• Internal Floating Roof 

• External Floating Roof 

• Closed vent system w/ Controls 

• Closed transport and storage 

• Design steam stripper, and 

• Controls for stripper vents 

• Combustion 

- Flare 

- Incinerator 

- Boiler 

• Recovery 

RCE 

85-88 

98 

95 

95-98 

98 
P.12 

Floor Determination Process 

for 

Process Vents 

TRE Cost Effectiveness 

Estimates 

$184Bil/Mg 

$4/Mg 

> * • 565 vents 

477 vents 

10 % w MACT 

$1,500/Mg 

44% w MACT 
P.13 

V 

Summary of Floor Analyses 

• Process Vents 

Ranked by C/E from high to low; ranged from 

$184 billion/Mg to $4/Mg 

12% controlled at C/E <$1,500/Mg 

• 44% of vents with C/E <$1,500/Mg 

controlled by 98% device 

• 10% of vents with C/E >$1,500/Mg 

controlled by 98% device 

• Storage Vessels 

Examined model tanks in 3 groups 

For each group, ranked by vapor pressure from low 

to high (i.e., high C/E to low C/E) 

12% found: 

• 10,000 to 20,000 gallons: no vapor pressure 

• 20,000 to 40,000 gallons: 1.9 psia 

• 40,000 gallons & up: 1.9 psia 

n 
P.14 

Summary of Floor Analyses, cont'd 

Transfer Operations 

Examined model racks in 2 groups 

For each group, ranked by throughput from low to 

high (i.e., high C/E to low C/E) 

12% found 

• racks with vp < 1.5 psia: no throughput 

controlled 

• racks with vp > 1.5 psia: 0.17 MMGal/yr 

Wastewater 

Different approach used: examined percentage of 

all processes and streams controlled 

Found only 2.5% of the streams and only 5.1 % of 

processes controlled for air emissions 

• Control due to Vinyl Chloride NESHAP and 

Benzene Waste NESHAP 

12 
P.15 

Example Option Table 

Final Control Options for HON Process Vents 

Existing Sources 

Option 

1 

2 

3 

4 

5 

6 

7 

Emission 

Reductio 

n Mg/yr 

HAP 

228,190 

233,556 

236,177 

236,790 

237,047 

237,401 

237,601 

Percent 

HAP 

Reductio 

n 

91 

93 

94 

94 

95 

95 

95 

Annual 

Cost, 

$1000/y 

r 

57,114 

65,939 

73,880 

77,463 

79,659 

85,256 

106,330 

Average 

$/Mg 

250 

282 

313 

327 

336 

359 

448 

Incre. 

$/Mg 

HAP 

1,640 

3,030 

5,846 

8,550 

15,800 

105,464 

Baseline emissions are 250,664 Mg/yr of HAP. 

Floor element is Option 1. 

Option 1 -

Option 2 -

Option 3 -

Option 4 -

Option 5 -

Option 6 -

Option 7 -

control vents with c/e of <$1500/Mg. 

control v«nts with c/e of <$2000/Mg. 

<$5000/Mg. 

<$7500/Mg. 

<$10000/Mg. 

<$28,000/Mg. 

control all vents with HAP's. 

13 
P.16 

Key Considerations 

Decision criteria for selecting level beyond the floor for 

MACT standards: 

technical feasibility 

nonair quality health and environmental impacts 

cost 

energy impacts 

• Cost effectiveness (C/E) is one method of considering 

cost 

useful where have wide range in sizes of emission 

pDints 

• Range of C/E values considered: $117 to $28,000/Mg 

reflects VOC C/E decisions as well as air toxics C/E 

values 

14 
P.17 

Key Considerations, cont'd 

crude estimates of cancer benefits per Mg 

Incremental VOC C/E values (1989 $) 

SOCMI vents: Incr. $3,090/Mg [$1900/Mg 

1978$] 

Polymers and Resins: Incr. $1,400/Mg [$930/Mg 

1980$] 

Incremental air toxics C/E values (1989 $) 

Benzene NESHAP: $650 - $7,000/Mg 

Bfcnzene Waste Operations: $28,000/Mg 

Vinyl Chloride NESHAP: $1,500/Mg 

15 
P.18 

Key Considerations, cont'd 

Qualitative considerations 

HON emissions are VOC's 

- Majority of sources in nonattainment areas 

- Control will make other VOC controls 

unnecessary 

Public perception is toxics are more dangerous 

than VOC's 

Costs are consistent with benefits based on 

Benzene NESHAP and earlier HON risk assessment 

These benefit estimates do not include 

noncancer health effects 

No models exist for determining noncancer health 

benefits 

Consistency with past NSPS for same emission 

points in the category is administratively desirable 

16 
Control Requirements 

HON Existing Sources 

Emission 

Point 

Process 

Vents 

Wastewater 

Transfer 

Storage 

Small 

Storage 

Medium 

Storage 

Large 

Total 

Emission 

Reduction 

Mg/yr 

236,200 

127,000 

360 

0 

327 

8,600 

372,500 

% 

for the 

Type 

94 

87 

65 

0 

70 

87 

91 

Cost 

$ 1000/yr 

73,900 

80,400 

3,100 

0 

2,100 

* 

17,100 

176,600 

Avg. 

$/Mg 

313 

635 

8,700 

0 

6,500 

2,000 

475 

Inc. 

$/Mg. 

3,000 

3,500 

8,700* 

0 * 

6,500* 

2,500 

* denotes floor level of control 

CO 
Control Requirements 

HON New Sources 

Emission 

Point 

Process 

Vents 

Wastewater 

Transfer 

Storage 

Small 

Storage 

Medium 

Storage 

Large 

Total 

Emission 

Reduction 

Mg/yr 

45,000 

24,200 

70 

60 

60 

1,600 

71,050 

% 

for the 

Type 

95 

87 

65 

85 

70 

87 

92 

Cost 

$1000/yr 

15,200 

16,500 

600 

1,500 

395 

* 

2,600 

37,000 

Avg. 

$/Mg 

340 

690 

8,700 

24,000 

6,400 

1,600 

520 

Inc. 

$/Mg. 

340 * 

1,600 

8,700* 

24,000* 

6,400* 

730 

* denotes floor level of control 
P.21 

Sensitivity Analysis 

(Thousands of Dollars) 

VOC** and HAP Values 

Existing PV 

Floor 

Opt 2 

Opt 3* 

Opt 4 

Existing WW 

Optl 

Opt 2* 

Opt 3 

New WW 

Floor 

Opt 2* 

Opt 3 

Existing LSV 

Floor 

Opt 2 

Opt 3* 

Opt 4 

New LSV 

Floor 

Opt 2* 

Opt 3 

VOC = $250 

HAP = $0 

16000 

27000 

20000 

17000 

72000 

35000 

32000 

9800 

5500 

4900 

-3600 

-6100 

-15000 

-16000 

-1600 

-2100 

-2400 

VOC = $500 

HAP = $250 

150000 

180000 

170000 

170000 

200000 

180000 

180000 

30000 

34000 

33000 

-2800 

-3700 

-11000 

-12000 

-1300 

-1300 

-1600 

VOC = $1000 

HAP = $1000 

470000 

540000 

540000 

540000 

490000 

510000 

510000 

76000 

96000 

95000 

-660 

2300 

190 

-1200 

-640 

730 

490 

LSV = Large Storage Vessel 

**Average VOC value for both attainment and non-attainment 

areas 

17 
P.22 

Sensitivity Analysis for Existing Points 

Potential Net Benefits 

Composite Option 

Floor + 1 on WW 

Floor or Floor + 1 

Decisions 

VOC Values 

VOC = $250 

HAP = $0 

79000 

87000 

35000 

VOC = $500 

HAP = $250 

340000 

370000 

340000 

VOC = 

$1000 

HAP = $1000 

950000 

1000000 

1000000 

VOC = 

$2000 

HAP = 

$2000 

2000000 

2200000 

2300000 

18 
P.23 

Appendix A: 

Detailed Control Option Tables 
Fina l Control Options for HON Process Vents 

P.24 

Existing Sources 

Option 

1 

2 

3 

4 

5 

6 

7 

Emission 

Reduction 

Mg/yr HAP 

228,190 

233,556 

236,177 

236,790 

237,047 

237,401 

237,601 

Percent 

HAP 

Reduction 

91 

93 

94 

94 

95 

95 

95 

Annual 

Cost, 

$1000/yr 

57,114 

65,939 

73,880 

77,463 

79,659 

85,256 

106,330 

Average 

$/Mg 

250 

282 

313 

327 

336 

359 

448 

Incre. 

$/Mg HAP 

1, 640 

3,030 

5,846 

8,550 

15,800 

105,464 

Baseline emissions are 250,664 Mg/yr of HAP. 

Floor element is Option 1. 

Option 1 - control vents with c/e of <$1500/Mg. 

Option 2 - control vents with c/e of <$2000/Mg. 

Option 3 - <$5000/Mg. 

Option 4 - "* <$7500/Mg. 

Option 5 - " <$10000/Mg. 

Option 6 - <$28,000/Mg, 

Option 7 - control all vents with HAP's. 
P.25 

Final Control Options for HON Process Vents 

New Sources 

Option 

1 

2 

3 

4 

Emission 

Reduction 

Mg/yr HAP 

45,046 

45,106 

45,132 

45,144 

Percent 

HAP 

Reduction 

95 

95 

95 

95 

Annual 

Cost, 

$1000/yr 

15,206 

16,199 

17,745 

20,203 

Average 

$/Mg 

338 

359 

393 

448 

Incre. 

$/Mg 

16,550 

59,452 

205,528 

Baseline emissions are 47,626 Mg/yr HAP 

Option 1 -

Option 2 -

Option 3 -

Option 4 -

c/e <$11,000/Mg 

<$28,000/Mg 

<$100,000/Mg 

all vents with HAP's 
P.26 

Final Control Options for HON Wastewater 

Existing Sources 

Option 

1 

2 

3 

4 

5 

Emission 

Reduction 

Mg HAP/yr 

112,810 

127,000 

127,650 

129,085 

129,450 

Percent 

HAP 

Reduction 

77 

87 

83 

89 

89 

Annual 

Cost, 

$1000/yr 

30,800 

80,400 

84,600 

112,300 

177,200 

Average 

$/Mg HAP 

275 

635 

660 

870 

1,370 

Incre. 

$/Mg HAP 

3,500 

6,440 

19,390 

178,300 

Baseline emissions are 145,585 Mg/yr of HAP and 529/920 Mg/yr of 

VOC. 

Floor element is no control. 

Option 1 -

Option 2 -

Option 3 -

Option 4 -

Option 5 -

control streams >10 1pm and >1000 ppmw VHAP 

control streams >1 1pm and >500 ppmw VHAP. 

control streams >1 1pm and >200 ppmw VHAP. 

control streams >1 1pm and >100 ppmw VHAP. 

control all streams with any HAP. 
P.27 

Final Control Options for HON Wastewater 

New Sources 

Option 

1-

2 

3 

4 

Emission 

Reduction 

Mg HAP/yr 

17,790 

24,170 

24,270 

24,595 

Percent 

HAP 

Reduction 

64 

87 

88 

89 

Annual 

Cost, 

$1000/yr 

6,400 

16,500 

17,200 

33,700 

Average 

$/Mg 

360 

685 

710 

1,370 

Incre. 

$/Mg 

1,595 

6,990 

49, 980 

Baseline emissions are 27,660 Mg/yr of HAP and 100,685 Mg/yr of 

VOC. 

Floor element is Option 1, which reflects control requirements of 

Vinyl Chloride NESHAP and the Benzene Waste NESHAP. 

Option 1 -

Option 2 -

Option 3 -

Option 4 -

control streams >10 ppmw very volatile HAP. 

control streams >10 ppmw very volatile HAP and 

streams >500 ppmw volatile HAP. 

control streams >10 ppmw very volatile HAP and 

streams >200 ppmw volatile HAP. 

control all streams with any HAP. 
Final Control Options for HON Transfer 

Existing Sources 

Option 

1 

2 

Emission 

Reduction 

Mg HAP/yr 

360 

424 

Percent 

HAP 

Reduction 

65 

77 

Annual 

Cost, 

$1000/yr 

3,128 

6,521 

Average 

$/Mg 

8,690 

15,416 • 

Incre. 

$/Mg 

53,860 

Baseline emissions are 551 Mg HAP/yr. 

Floor element is Option 1. 

Option 1 -

Option 2 -

control racks loading liquid HAP's with vp > 1.5 

psia and throughput >0.17 million gallons per 

year. 

control all racks loading liquid HAP's. 
P.29 

Final Control Options for HON Transfer 

New Sources 

Option 

1 

2 

Emission 

Reduction 

Mg/yr 

68 

81 

Percent 

HAP 

Reduction 

65 

77 

Annual 

Cost, 

$1000/yr 

594 

1,239 

Average 

$/Mg 

8,690 

15,420 

Incre. 

$/Mg 

53,860 

Baseline emissions are 105 Mg HAP/yr, 

Floor element is Option 1. 

Option 1 - control racks loading liquid HAP's with vp > 1.5 

psia and throughput >0.17 million gallons per 

year. 

Option 2 - control all racks loading liquids HAP's 
P.30 

Final Control Options for HON Storage Vessels 

Existing Sources: 10,000 to 20,000 gallon capacity 

Option 

1 

2 

3 

Emission 

Reduction 

Mg HAP/yr 

53.3 

322 

359 

Percent 

HAP 

Reduction 

14 

85 

95 

Annual 

Cost, 

$1000/yr 

318 

7,736 

18,949 

Average 

$/Mg 

6,000 

23,950 

52,780 

Incre. 

$/Mg 

27,474 

311,500 

Baseline emissions are 379 Mg/yr of HAP. 

.Floor element is no control. 

Option 1 - control tanks storing HAP's with vp >ll.l-psia. 

Option 2 - control tanks storing HAP's with vp >1.9 psia. 

Option 3 - control all tanks storing HAP's. 

Existing Sources: 20,000 to 40,000 gallon capacity 

Option 

1 

2 

3 

Emission 

Redaction 

Mg HAP/yr 

327 

409 

410 

Percent 

HAP 

Reduction 

70 

88 

88.4 

Annual 

Cost, 

$1000/yr 

2,113 

4, 110 

5,670 

Average 

$/Mg HAP 

6,500 

10,050 

13,870 

Incre. 

$/Mg HAP 

24,400 

7,800, 

000 

Baseline emissions are 464 Mg/yr of HAP. 

Floor element is option 1. 

Option 1 -

Option 2 -

Option 3 -

control tanks storing HAP's with vp >1.9 psia. 

control tanks storing HAP's with vp >0.1 psia. 

control all tanks storing HAP's. 
P.31 

Final Control Options for HON Storage Vessels 

Existing Sources: 40,000 gallon capacity and greater 

Option 

1 

2 

3 

4 

" Cost deer 

Emission 

Reduction 

Mg HAP/yr 

1,700 

4,776 

8,629 

8, 644 

ease due to 

Percent 

HAP 

Reduction 

17 

4 8 

86.6 

86.8 

Annual 

Cost 

$1000/yr 

4,057 

7,290a 

17,068 

18,525 

credits from controll 

Average 

$/Mg HAP 

2,390 

1,526 

1,978 

2, 143 

ing severaJ 

Incre. 

$/Mg HAP 

1,051 1 

2,538 

97,133 

. large 

tanks 

Baseline emissions are 9964 Mg/yr of HAP. 

Floor element is Option 1. 

Option 1 - control tanks storing HAP's with vp >1.9 psia. 

Option 2 - control tanks storing HAP's with vp >0.75 psia 

Option 3 - control tanks storing HAP's with vp >0.1 psia. 

Option 4 - control all tanks storing HAP's. 
P.32 

Final Control Options for HON Storage Vessels 

New Sources: 40,000 gallon capacity and greater 

'Option 

1. 

2 

3 

Emission 

Reduction 

Mg HAP/yr 

558 

1, 640 

1,642 

Percent 

HAP 

Reduction 

29 

87 

87 

Annual 

Cost 

$1000/yr 

1,760 

2,555 

2,790 

Average 

$/Mg HAP 

3, 155 

l,558a 

1, 698 

Incre. 

$/Mg HAP 

734 

116,500 

a Cost decrease due to credits from controlling large tanks with 

vp between 0.75 and 0.1 psia. 

Baseline emissions are 1893 Mg/yr of HAP. 

Floor element is Option 1. 

Option 1 - control tanks storing HAP's with vp >0.75 psia. 

Option 2 - control tanks storing HAP's with vp >0.1 psia. 

Option 3 - control all tanks storing HAP's." 
P.33 

i 

Final Control Options for HON Storage Vessels 

New Sources: 10,000 to 20,000 gallon capacity 

Option 

1 

2 

Emission 

Reduction 

Mg HAP/yr 

61 

68 

Percent 

HAP 

Reduction 

85 

94 

Annual 

Cost, 

$1000/yr 

1,470 

3,600 

Average 

$/Mg 

24,098 

52,941 

Incre. 

$/Mg 

304,286 

Baseline emissions are 72 Mg/yr of HAP. 

Floor element is option 1. 

Option 1 - control tanks storing HAP's with vp >1.9 psia. 

Option 2 - control all tanks storing HAP's. 

New Sources: 20,000 to 40,000 gallon capacity 

Option 

1 

2 

3 

Emission 

Reduction 

Mg HAP/yr 

62 -

77.6 

77.7 

Percent 

HAP 

Reduction 

70 

-38 

88.4 

Annual 

Cost, 

$1000/yr 

395 

766 

1,060 

Average 

$/Mg HAP 

6,370 

9,870 

13,640 

Incre. 

$/Mg HAP 

23,780 

2,940, 

000 

Baseline emissions are 88 Mg/yr of HAP. 

Floor element is option 1. 

Option 1 - control tanks storing HAP's with vp >1.9 psia. 

Option 2 - control tanks storing HAP's with vp >0.1 psia. 

Option 3 - control all tanks storing HAP's.