OMB EMAIL CORRESPONDENCE (2 of 4)

*Note: The final cost memo and related attachments are available separately in the CISWI docket.

From: Amy Hambrick/RTP/USEPA/US

To: "Higgins, Cortney" <Cortney_Higgins@omb.eop.gov>

Cc: David Cozzie/RTP/USEPA/US@EPA, Thomas Gillis/DC/USE PA/US@EPA

Date:

06/12/2012 01:18 PM

Subject: Re: EO 13563 Interagency Comments on CISWI rule

HI Cortney,

(1)Changes since proposal in fact sheet format

(See attached file: 5 CISWI NHSM fact sheet June 11 2012.docx)

(2) Cost Memo + Attachments (See attached file: Compliance Costs Memo_061112.do cx)(See attached file: CostMemo_Table1_ImprovementNeeded_060812.xlsx)(See attached file: CostMemo_Table2_CostsByUnit_060112.xlsx)(See attach ed file: CostMemo_Table3_CostSummary_060112.xlsx)(See attach ed file: CostMemo_Table4_ControlCostInputs_050712.xlsx)(See attached file: CostMemo_Table5_ControlCostAlgorithms_061112.xlsx)( See attached file: CostMemo_Table6_OtherCosts_050712.xlsx)(See attache d file: CostMemo_Table7_AlternativeWasteDisposal_050712.xls x)(See attached file: CostMemo_Table8_CostEffectiveness_060812.xlsx)(See attached file: CostMemo_Table9_NewSources_050712.xlsx)

(3) List of facilities

(See attached file: CISWI Facility List.docx)

(4) 2010 proposal estimated 176 units while the 201 2 draft final estimates 93 units- - what changed

The inventory has changed as a result of (a) NHSM w aste definition [this definition essentially identi fies units is burning waste and therefore subject to CISWI] (b) public comment proc ess providing updates.

(5) OMB Interagency comments: EPA can show you edit s responding in a red line version

Regards,Amy

Amy Hambrick Fuels and Incineration Group US EPA / OAQPS / Sector Policies and Programs Divis ion

Phone: 919-541-0964

"Higgins, Cortney" ---06/08/2012 05:06:39 PM---Hi A my, Attached are interagency comments under EO 1356 3 on the CISWI rule. I

will also send a redl

From: "Higgins, Cortney" <Cortney_Higgins@omb.eop.gov>

To: Amy Hambrick/RTP/USEPA/US@EPA

Cc: David Cozzie/RTP/USEPA/US@EPA, Thomas Gillis/DC/USE PA/US@EPA

Date:

06/08/2012 05:06 PM

Subject: EO 13563 Interagency Comments on CISWI rule

Hi Amy,
Attached are interagency comments under EO 13563 on the CISWI rule. I will also send a redline of the preamble on Monday.

Please let me know if you have any questions.

Thanks,
Cortney[attachment "CISWI_InteragencyCommentsunderE O13563_2012_06_07.doc" deleted by Amy Hambrick/RTP/U SEPA/US]

----- Forwarded by Amy Hambrick/RTP/USEPA/US on 06/ 11/2012 12:11 PM -----

From: "Higgins, Cortney" <Cortney_Higgins@omb.eop.gov>

To: Amy Hambrick/RTP/USEPA/US@EPA

Cc: David Cozzie/RTP/USEPA/US@EPA

Date:06/08/2012 04:11 PM

Subject: RE: CISWI rule -- list of changes from 2011 final r ule

Hi Amy,

Just a bulleted list (update) to the “proposed chan ges” listed on the second page of this FAQ would be appreciated: http://www.epa.gov/air/oaqps/combustion/docs/201112 02ciswifs.pdf

Is there a cost memo that describes the universe es timate? Do you have a list of the facilities? If so , can you send that? The proposed rule had
176 units --- can you tell me what changed?

Thanks,

Cortney

From: Amy Hambrick [mailto:Hambrick.Amy@epamail.epa.gov]

Sent: Friday, June 08, 2012 3:29 PM

To: Higgins, Cortney

Cc: David Cozzie Subject: Re: CISWI rule -- list of changes from 2011 final rule

Greetings Cortney,

Will a redline of the 2011 rule work for you? We ar e aware of 93 CISWI units.

Have a nice afternoon,

Amy

Amy Hambrick Fuels and Incineration Group US EPA / OAQPS / Sector Policies and Programs Divis ion

Phone: 919-541-0964

"Higgins, Cortney" ---06/08/2012 10:12:38 AM---Hi D ave, Do you have a table or list of the changes fro m the 2011 final rule?

From: "Higgins, Cortney" < Cortney_Higgins@omb.eop.gov > To: David Cozzie/RTP/USEPA/US@EPA, Amy Hambrick/RTP/USE PA/US@EPA

Date:

06/08/2012 10:12 AM Subject: CISWI rule -- list of changes from 2011 final rule

Hi Dave,
Do you have a table or list of the changes from the 2011 final rule?

Also, what’s the universe (number of affected sourc es) in the final rule?

I’ll be sending over interagency comments later tod ay.

Thanks,

Cortney1 FACT SHEET

COMMERCIAL AND INDUSTRIAL SOLID WASTE INCINERATION U NITS: RECONSIDERATION AND FINAL AMENDMENTS; NON-HAZARDOUS

SECONDARY MATERIALS THAT ARE SOLID WASTE: FINAL RULE

OVERVIEW OF ACTION

• On Month Date, 2012, the Environmental Protection Agency ( EPA) issued amendments to the new source performance standards (NSPS) and emission guidelines (EG) for new and existing commercial and industrial solid waste incineratio n (CISWI) units. Additionally, the agency is adding amendments and clarifications to certain aspects of the non-hazardous secondary materials that are solid waste (NHSM) final rule.

New Source Performance Standards and EG for New and Existing CIS WI Units

• In this action, EPA is revising emission limits for the waste-burning kiln and energy recovery unit subcategories to reflect updated inventories and additional data.

• EPA conducted a review of air emissions data and updated the n on-direct emissions data methodology, correcting emission limits for certain po llutants in the incinerator and small remote incinerator unit subcategories.

• EPA is revising monitoring provisions that include removing the oxygen correction requirements for carbon monoxide emission limits during pe riods of startup and shutdown and retaining full-load stack test requirements for carbon monoxide coupled with continuous oxygen monitoring.

• EPA is adding amendments and technical corrections to the final rule to provide clarification regarding definitions and applicability.

• As a result of the final amendments, emission reductio ns of metals and dioxins, acid gasses (HCl and SO 2 ), PM, NOx and CO emitted from CISWI units are expected t o increase slightly from the proposed reconsideration.

• EPA estimates that, for some units, it is more cost e ffective to use an alternative disposal option. If those units use alternative disposal options and the remainder use add-on controls, the total nationwide cost is approximately $812 million. If all 93 CISWI units currently in operation use add-on controls, the total nationwide cost for complying with the rule, as amended, is approximately $874 million per year.

• The estimated benefits associated with reduced exposure to fi ne particles are $460 to $1,100 million at a 3% discount rate in the year 2015.

• The proposed amendments do not change the intended coverage of the standards for CISWI

units.2

NHSM

• Today’s final amendments clarify and provide direction to facilities applying the legitimacy criteria and emphasize the flexibilities already embo died in the rule, while preserving the public health protections required by the Clean Air Act (CAA ).

• In particular, the agency is revising the definitions of “clean cellulosic biomass” and “contaminants” to clarify the agency’s intent, and in the case of clean biomass, is identifying specific materials that EPA believes are included within the current clean biomass definition

and would thus be considered a traditional non-waste fuel.

• The amendments also identify several NHSM as non-wast e fuels where the agency has sufficient information and knowledge that such materials are not wastes when burned in combustion units. These include (1) scrap tires that are managed under established tire collection programs; (2) resinated wood; (3) coal refuse t hat has been recovered from legacy piles and processed in the same manner as currently-genera ted coal refuse; and (4) dewatered pulp and paper sludges burned on-site at facilities that use a significant portion of materials as fuels where such dewatered sludges are managed in a manner that preserves the meaningful heating value of the materials.

• More information on the NHSM rule can be found at http://www.epa.gov/epawaste/nonhaz/define.

BACKGROUND

• A CISWI unit is any device that is used to burn solid waste a t a commercial or industrial facility. Examples of CISWI units include:

o Units designed to discard solid waste;

o Energy recovery units designed to recover heat that com bust solid waste; and

o Waste burning kilns that combust solid waste in the manufac ture of a product.

• The CISWI rule covers four CISWI subcategories:

o Incinerators;

o Energy recovery units;

o Waste burning kilns; and

o Small, remote incinerators.

• CISWI units must either comply with the emission limits in the final rule (i.e., install add-on controls to capture emissions) or use alternative wast e disposal options, such as diverting

waste to a landfill.

• On March 21, 2011, EPA promulgated its final response to the 2001 voluntary remand of the
December 1, 2000, NSPS and EG for CISWI units and the vacatur and remand of several definitions by the District of Columbia Circuit Court of Appeals in 2007. The March 21, 2011 action also included the 5-year technology review of the NSPS and EG required under section 129 of the Clean Air Act. This action also promu lgated other amendments that EPA3

believes were necessary to address air emissions from commercial and industrial solid waste

incineration units.

• On March 21, 2011, EPA published a notice initiating the recons ideration of certain aspects
of the final rule for CISWI, as well as the final rul es for area source industrial, commercial and institutional boilers and major source industrial, commercial and institutional boiler s. The final rules reflect reasonable approaches consisten t with the requirements of the Clean Air Act. However, some of the issues identified in com ments on the 2010 proposed rules raised difficult technical issues that the agency believe d would benefit from additional public involvement. In addition, the agency wanted to ensure that the public had ample opportunity to comment on changes in the final rule that were not in the proposal.

• In the March 21, 2011, notice, EPA identified seven issues aff ecting CISWI for which reconsideration should be granted and additional opportunity for public review and comment should be given. These included :

o Revision of the subcategory of energy recovery units;

o Establishment of limitations on fuel switching provisions;

o Revision of the definition of CISWI to exclude cyclonic b urn barrels;

o Inclusion of an affirmative defense provision for malfu nction events;

o Revisions to the carbon monoxide monitoring requirements;

o Establishment of a full-load stack test requirement for c arbon monoxide coupled with continuous oxygen monitoring for CISWI units; and

o Establishment of a definition of “homogeneous waste” in the CISWI rule.

• Following promulgation of the CISWI rule, the Administr ator received 17 petitions for reconsideration filed by 16 industry groups and one environmental group. In response to the petitions, EPA reconsidered and requested comment on seve ral aspects of the final NSPS and

EG for CISWI units as well as the NHSM rule. We have evaluated the issues raised and have
made amendments, based on our assessment of data submitte d and issues raised.

FOR MORE INFORMATION

• To download this reconsideration notice from EPA’s webs ite, go to Recent Actions at http://www.epa.gov/airquality/combustion.

• Today’s action and other background information are also a vailable either electronically at http://www.regulations.gov

, the EPA’s electronic public docket and comment system or in hardcopy at EPA’s Docket Center’s Public Reading Room.

o The Public Reading Room is located at EPA Headquarters, Room 3334, in the EPA West Building, 1301 Constitution Avenue, NW, Washington, DC. Hours of operation are 8:30 a.m. to 4:30 p.m., eastern standard time, Monday through Friday, excluding federal holidays.

o Visitors are required to show photographic identification, pass through a metal detector and sign the EPA visitor log. All visitor materi als will be processed4 through an X-ray machine, as well. Visitors will be provide d a badge that must be

visible at all times.

o Materials for this action can be accessed using Docket ID Number EPA-HQ-RCRA-2008-0329.

• For further information about the CISWI rule, contact M s. Toni Jones of EPA’s Office of Air Quality Planning and Standards, Sector Policies and Programs Di vision, Fuels and Incineration Group, at (919) 541-0316 or by e-mail at jones.toni @epa.gov or Ms. Amy Hambrick of the EPA’s Office of Air Quality Planning and S tandards, Sector Policies and Programs Division, Fuels and Incineration Group, at (919) 541-0964 o r by e-mail at hambrick.amy@epa.gov.

• For further information about the NHSM rule, contact Mr . George Faison of EPA’s Office of Resource Conservation and Recovery, Program Implementa tion and Information Division, at (703) 305-7652 or by e-mail at faison.george@epa.gov.Data: Facility

FacilityID

AKAlyeskaPumpStation5

AKAlyeskaPumpStation7

AKChugachElectricBeluga

AKCoeur

AKCookInletPipeline

- DriftRiver

AKEntechAlaska

AKHeclaGreensCreekJuneau

AKKuparukCentral Production

AKOITMooseCreek

AKPioneerNR

AKTeckComincoAlaskaIncRedDogMine

AKUOCCTradingBay

AKXTOEnergy

ALIPRiverdale

ALNationalCement

- Ragland

ARDomtarIndustries

ARPlantersCottonOil

CAArmtecdefense

CACAPortlandCementColton

CALehighSouthwestReddingPlant

CAWheelabratorShasta

CTPfizer

FLAscend

FLCemexMiami

GAGreat Dane Trailers

IACNHAmerica

IALafargeBuffalo

IALehighCementMasonCity

ILF&MStateBank

ILFlintHillsResources

ILPolyOne

INCovanceLabsGreenfield

INWabashNational855

KSCNHWichita

KYCooperStandard

LADeltechData: Facility

FacilityID

LAInternationalPaperRedRiverMill

LAIPMansfield

LAShellChemical

MDLehighCementUnionBridge

MDSeverstalSparrows

MEHuberEngineeredWoodLLC

MEPioneerPlastics

MILafargeMidwestAlpena

NCGlaxoSmithKline

NDCNHAmerica

NECNHAmericaGrandIsland

NJNovartis

OHWhirlpoolClyde

OKIPValliant

OKPioneerTelephone

ORGPToledo

PAAshlandNevilleIsland

PACNHAmericaNewHolland

PALafargeWhitehallPlant

PALehighCementEvansville

PALehighCementYork

PASmithKlineBeecham

SCCryovac

SCDixieNarco

SCEastmanColombia

SCIFCOSystems

SCINVISTACamdenPlant

SCINVISTASpartanburg

SCTri

- CountyPallet

TNEastman_NO_CBIDATA

TNPackagingCorpCounce

TNTempleInland2426

TNVolvoPenta

TXAshGroveMidlothian

TXBASFFreeport

TXHolcimMidlothianPlant

TXInternationalPaperQueenCityData: Facility

FacilityID

TXMadix

TXReichhold

TXSterlingChemTexasCity

UTHolcimDevilsSlide

VANewportNewsShipbuildingDryDock

VAQuadrantEPP

VATransInd

WABoeingDevelopmentalCenter

WAEmeraldKalama

WALongviewFPP

WINSPWAshland

WVDuPontWashingtonWorks